September 20, 2002	Friday	Rajab 12, 1423

WASHINGTON, Sept 19: A congressional committee on Wednesday approved a bill that would provide Pakistan a small reward for its help in the US war on terrorism by eliminating duties on imports of certain hand-made rugs.

The House of Representatives Ways and Means Committee approved the miscellaneous trade bill on a voice vote.

The bill would make the rugs eligible for duty-free treatment under the US Generalized System of Preferences programme. Pakistan would be the primary beneficiary, although Turkey, Nepal, Egypt and Morocco could also see increased sales as a result of the move, congressional aides said.

Committee staff estimated the value of the trade benefit at about $35 million over five years.

In February the Bush administration announced $142 million in textile trade benefits for Pakistan.

That was far short of the more than $1 billion in concessions Pakistani President Pervez Musharraf had sought.

Pakistan’s bid for reduced tariffs on an assortment of textile goods ran into opposition from US producers, who said a surge in imports from Asia had already cost the industry tens of thousands of jobs.

However, the American Textile Manufacturers Institute has said they would not object to duty-free access for the hand-made rugs because there are no US producers.

Ways and Means Committee Chairman Rep. Bill Thomas, a California Republican, hopes for a full House vote on the trade bill as early as next week, a committee aide said.

In addition to the Pakistan provision, the legislation would suspend US duties on a long list of mostly complex chemical products.

The Senate must also act on the legislation before it could be sent to President George W. Bush for his signature.—Reuters