October 14, 2001	Sunday	Rajab 26, 1422

KARACHI, Oct 13: The US textile industry has strongly opposed Pakistan’s move to get duty and quota free access to textile products, fearing it would cripple the domestic industry, sources in touch with the US Department of Commerce told Dawn on telephone.

The US government has been working on several propositions for providing economic assistance including a $600-million aid package for Pakistan.

The package is likely to be made public by US Secretary of State Colin Powell during his scheduled visit to Pakistan on Monday, as part of administration efforts to shore up support for military action against Afghanistan and Osama bin Laden, a key suspect in the Sept 11 attacks, sources said.

The textile concessions are expected to be part of the package which may include easing of quota restrictions on Pakistan’s textile exports to the US, sources said.

Consequently, the American Textile Manufacturers Association (ATMI) has taken strong exception over the issue and cautioned the Commerce Department that it will hit the domestic industry which was passing one of the worst crises. More than 100 units have been shut and over 60,000 jobs loss had been reported so far, sources from Washington said.

In its resentment note, the ATMI has suggested to the State Department that instead of making textile trade a central component of the aid package, such measures should be taken which could help Pakistan to get rid of debt burden to give fiscal spread to its economy.

However, looking at fast moving developments, the ATMI has indicated to the US administration that new duty-free entry for hand-knotted and hand-hooked floor coverings from Pakistan would be acceptable.

But this proposition may not be acceptable to Pakistan which has been looking for total withdrawal of quota and tariff restrictions over its textile products, sources added.

In this connection, minister for commerce Abdul Razak Dawood along with hand picked businessmen last week, made a special visit to Washington to take up the matter with the US Department of Commerce.

The concessions acceptable to ATMI under the economic package to Pakistan’s textile products are being estimated not more than $100 million a year and the US textile industry would not also oppose moratorium on any new textile quotas, sources said.

Meanwhile, commerce minister Abdul Razak Dawood is presently in Singapore and is expected back by Monday after attending a trade fair.

Official version from Islamabad is yet to be made known about the out come of negotiation with the US government over the removal of quota and tariff reduction on textile products from Pakistan.