Official trade data released by the US Trade Department reveals that in South Asia Pakistan is the main beneficiary of the decline in Indian apparel exports to the US. Other South Asian countries saw a decline in exports to the US apparel market. Indian apparel exports increased by 17.75 per cent in value and 13.71 per cent in volume during the first half of 2006, but declined by 1.67 per cent in value, though increasing by 4.37 per cent in volume in the first half of 2007. . . Bangladesh’s growth in the US market also suffered as its exports value wise declined from 26 per cent in first half of 2006 to 14 per cent during the corresponding period of 2007. Sri Lanka recorded a negative growth in value by 0.88 per cent in the first half of 2007 compared with the similar period of the preceding year when the growth was 2.67 per cent. . . Pakistan’s apparel exports to the US increased in value by 12.88 per cent in value and 21.01 per cent in volume in the first half of 2006. In the first half of 2007, its apparel exports to the US increased by 10.88 per cent in value and 5.07 per cent in volume. This is a healthy and welcome trend as this depicts increase in unit value of Pakistani apparel. . . The US trade statistics further reveal that if 2005 apparel exports are considered 100, then the exports from India were 118 per cent in value and 114 per cent in volume in the first half of 2006. That showed higher value addition during that period. In 2007 during the same period the value of exports was 116 per cent of 2005 level while the volume increased to 119 per cent depicting decline in per unit value. . . In Pakistan’s case the increase was 113 per cent in 2006 that was lower than India, but in the first half of 2007 the increase in exports was 125 per cent when 2005 exports were benchmarked as 100 per cent. . . The main impediment in this regard is the low value addition of Pakistani apparel when compared with the value addition achieved by India, Sri Lanka and Bangladesh. The average per square meter price of Indian apparel exported to the US was $3.63 in the first half of 2007 that was the highest among all South Asian countries, though it was lower than the rate charged by the Indians during the corresponding period of 2006 when it was recorded at $3.85 per square meter. Pakistan received $1.94 per square meter for the apparel exported in 2006 that increased to $2.05 per square meter in the first half of 2007. This means that Pakistani apparel fetch 45 per cent less rate on each square meter of apparel exported to the US than India. . . The data released by the US Trade Department on apparel imports during the first half of the current calendar year reveals that apparel imports from China surged by 43 per cent compared with the imports recorded during the corresponding period of 2006. Vietnam recoded an increase of 22 per cent, Indonesia 51 per cent and Cambodia 55 per cent. Pakistan’s performance looks encouraging when seen in the context of decline suffered by countries having duty-free access to US apparel market. . . This is significant that countries benefiting from a duty-free access to the US market are also suffering. Imports from Central American countries are retreating or only slightly rising. Even shipments from Jordan are declining, although very generous rules of origin allow using Asian fabrics. With a similar benefit offered to Egypt, imports from this country only rose two percent in volume terms in the first half. . . Source: thenews.com.pk/
Date:8/22/2007
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