The annexure F tabled by Pakistan withhold the balance of three per cent of products originating from LDCs from getting quota and duty-free access to US market. This was adopted in the final draft of the WTO’s HK declaration on the insistence of Pakistan. This would mean that US could use this space of three per cent for political pressure on LDCs including Bangladesh, Cambodia and Vietnam as their apparel exports to US have grown manifold soon after the quota-free regime started from January 1, 2005.Most of the LDCs have been giving tough time to Pakistani exporters of apparel products in the US market and their exports have shown tremendous growth owing to duty and quota free market access to US market.However, after the adoption of annexure F on the insistence of Pakistan at the last moment and before the final declaration was issued by the WTO’s secretariat at the conclusion of HK ministerial moot only 97 per of products originating from LDCs will be allowed duty and quota free access to US market up to year 2008.This means that out of total Harmonized System Codes (HS Codes) of products of tariff lines of LDCs only 97 per cent will be allowed quota and duty free access up to 2008, and the remaining 3 per cent will not fall under quota and duty free access. This will give the US a leverage to block three per cent of products, including textile products.Pakistan’s apparels compete with Bangladesh and other LDCs in 40 products in the US market and it constitutes 20 per cent of its exports. However, the annexure F will help the country to safeguard its market share in the US.Despite the fact that China and India also have big stakes in global textile market of around $300 billion but unlike Pakistan they have diversified their exports and could sustain some cuts in their market share.The rapidly growing textile and apparel industry in LDCs, Bangladesh and Cambodia and Vietnam in particular, have threatened Pakistan’s exports to US and recently some producers of textile made-up visited Bangladesh in order to relocate their industry by entering into joint ventures However, Pakistan’s success at the HK moot have saved the situation and most of the apparel producers have hailed the negotiators efforts headed by commerce minister Humayun Akhtar Khan for striking a deal at multilateral forum which could give some protection to their market against the LDCs who enjoy duty and quota free access.Chairman Pakistan Hosiery Manufacturers’ Association (PHMA) Javed Bilwani said lately value-added textile had been passing through tough time and hoped that the achievement at the HK moot would enable apparel exporters to get their due share in the US market.Bilal Mulla, chairman Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), said that by containing LDCs exports up to 97 per cent of their products line would ensure our market access to US market where our value-added products were exported the most
Date:12/22/2005
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