KARACHI, Oct 21: The US authorities have initiated a study of the competitiveness of several foreign textile and apparel suppliers, including Pakistan, in order to prepare itself for the quota phase-out by January 1, 2005.

But exporters here fear that the investigation could be used against them by the US administration for imposing punitive as well countervailing duties on their exports.

The US International Trade Commission (ITC), which is carrying out the investigation is seeking input from “all interested parties” who are exporting textile made-ups to the US.

The investigation is being carried out on the request of the United States Trade Representative (USTR) who feels that significant changes are likely to occur in the global pattern of production, trade, and consumption of textile products.

The ITC feels that it will be most helpful for the US administration to be able to anticipate the nature of these changes as much as possible, and could be useful in taking counter measures.

A message received here further indicates the ITC will also investigate factors such as competitiveness, textile and apparel consumption, production, employment and prices in major textile and apparel exporting countries, as well as their textile and apparel trade, particularly with industrial country markets.

Besides Pakistan the research will focus on over a number of other countries which have been identified as significant suppliers of textile and apparels to the US market. Mexico and other supplying countries with preferential access to the US market, such as Israel and Jordan, will also be studied.

The report, ‘Textiles and Apparel Assessment of the Competitiveness of Certain Foreign Suppliers to the US Market,’ is to remain confidential, and would be completed by middle of next year.

Exporters fear that the US study on prices, production, trade and consumption is meant to provide a tool to the US administration in the post-quota era to twist the arm of exporting country.

“These statistics could be easily used for imposing anti- dumping as well as countervailing duties to punish the country of origin,” asserted the chairman Pakistan Hosiery Manufacturers Association (PHMA) Aslam Ahmed Karsaz.

He suggested that Pakistan should also do its home work in this regard and carry out a study about the price, production, trade and consumption of textile manufacturing countries, particularly those who are exporting to US.

The Uruguay Round Agreement on textiles and clothing (ATC) entered into force with the World Trade Organization (WTO) agreements in 1995 and created special interim rules to govern trade in textiles and apparel among WTO members for 10 years.

The ATC calls for the gradual and complete elimination by January 1, 2005, of import quotas on textiles and apparel that were established by the United States and other importing countries under the Multifiber Arrangement.