The US is being reminded of Pakistan’s non-NATO ally status, a reliable and staunch partner in the fight against terrorism and the implications of suspension of shipment and exports of textile products may render hundreds and thousands jobless. .
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The EPB has stopped, from November 13, the shipment of textile products of six or seven ‘hot categories’ for fear of embargo promulgations from the US authorities. This suspension has created almost a riot-like situation among the exporters of bed sheets and pillow who invested pretty big amount in the Bureau sponsored auction but are now left in wilderness. .
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Since then many options are being explored to resolve this crisis that could linger on in 2005 and hurt almost $400 million Pakistan’s export to the US. In a recent move, the commerce ministry has finally approached Pakistan’s economic minister in Washington Embassy urging him to “fully use all the resources and influence at your disposal to try to get these concessions from the US side.” “We are fully aware of the dim chances” is a blunt and straight acknowledgement in an official communication from the commerce ministry to Mr Ashraf, Pakistan’s Economic Minister in the Washington embassy. .
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Pakistan desperately wants 4 to 5 per cent adjustment in textile quotas or “even lower if they insist” from the US authorities for the clearance of the textile products that fall within categories 369S, 666S, 666P, 360, 361, 347 and potentially in 338. .
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“At least clear the goods that would reach US before December 31 up to 3 to 4 per cent excess in only seven categories” is the other alternative concession that is being sought by Pakistan from the Americans. .
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Officials in the Commerce Ministry say that the problem of excess shipment in six or seven hot categories was lingering on for last several years and at least for last two years there was a fear of export ceilings of six or seven ‘hot’ categories being busted. .
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In the previous years, the export ceilings of the individual exporters were adjusted in the subsequent year from their share of quotas, which put a cover on the aggregate quota of a particular ceiling. But this year, being the final year of textile export quota, there is a fear that US may demand a close scrutiny and monitoring even after the quota restrictions will be lifted from January 1 next. Till then, the US may impose a restriction on shipment of textile products which are mainly bed sheets and pillows and a few other goods. The officials say that they were trying to rectify the situation for last two years to avoid the situation where many exporters will have their share of quotas available but would be unable to make shipment because of embargo on the aggregate ceilings. But the officials are certain that despite their pleadings the “US authorities particularly CITA or other relevant departments may not budge an inch.” .
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The Bureau informed the Commerce Ministry last week that visas have been stopped in the seven categories. The Ministry was informed of the anxiety of the exporters who have balances in their category passbooks and are processing orders for shipment before the expiry of the year 2004. .
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“If visas are not issued to them, they are in danger of losing not only their orders but also their customers,” the Commerce ministry was plainly told. And if the EPB issues visa for these categories where excess flows have been shown, the US authorities may put an embargo, which will bring a bad name to Pakistan. .
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The exporters proposed that whoever is being deprived of shipment in the year 2004 may be allowed air shipment after January 1 next year for which the government should offer subsidy to the extent of price differential in air and sea shipment or a straight 50 per cent subsidy on air freight. The Quota Supervisory Council is understood to have accepted this proposal and has conveyed it to the Commerce Ministry. .
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Source: dawn.com
Date:11/26/2004
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