960417

$20m worth bedsheets

exports to lost due to

inept deal at TMB moot

KHALID ABBAS SAIF

FAISALABAD: Export potential worth 20 million dollars in bedsheets shipments to USA has been lost due to inept and unskilful handling by Pakistani negotiating delegation at Geneva during meeting with Textile Monitoring Board (TMB) of World Trade Organisation.

This was disclosed by cloth exporters and powerloom owners in a survey, which was conducted by Business Recorder.

Elaborating, they said, exports of bedsheets and pillow covers to USA were exempt from quota restraint in 1995. Resultantly the exports of bedsheets increased both quantitywise and valuewise. There was 150 percent increase in quantity from 1.8 million kg in 1994 to 4.5 million kg in 1995. Similarly valuewise additional foreign exchange of 22 million dollars was earned for the country on this single item in one year, when the value rose form 10 million dollars in 1994 to 32 million dollars in 1995. Exports of bedsheets were poised to rise to 53 million dollars at the prevalent momentum and to 71 million dollars in 1997, they opined.

But due to inept and unskilful handling of negotiation with USA at Geneva on March 22, 1996, this item has been brought under quota restraint, they stated.

Consequently, they mentioned, that a fast growing export item which was not only fetching substantial foreign exchange for the country but was also proving helpful for the revival of textile industry in the country and was providing employment to millions of workers and entrepreneurs of powerloom dyeing, bleaching and printing units and stitching and packing material units which are labour intensive in nature, have been blocked.

Cloth exporters questioned the authority of Pakistani delegation to enter into a deal with the US authorities particularly when the delegation had gone to settle the circumvention charges at Trade Monitoring Board, Geneva, and were not expected to enter into agreement about quota restraints with the US team. They further pointed out, the restraint agreement is thrice detrimental to our exports. Firstly, by accepting the base level of 3.6 million kgs, the fast growing export item has been locked, Secondly, by accepting 6 percent annual growth rate benefit of increased swing available under bilateral agreement have been lost and Thirdly by accepting without reservation US rules of origin.

Powerloom owners have solicited immediate intervention by Prime Minister Benazir in the matter and has requested the concerned authorities not to ratify the agreement which was detrimental to the interests of the country.