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March 1, 2003 Saturday Zul Hijjah 27, 1423





US offers $30bn textile package to Turkey



By Parvaiz Ishfaq Rana


KARACHI, Feb 28: The US has offered $30 billion package of textile trade concessions to Turkey in return for allowing the US troops to attack Iraq from its soil.

According to a message received here on Friday from Washington by exporters of textiles to US markets, the package is now awaiting rectification from the Turkish parliament.

If approved by the Turkish parliament, the package would enable the US military to kit its troops out in apparel ‘made in Turkey,’ over-riding for one year. Certain “Buy American” provisions that it has been previously a staple of Pentagon sourcing seems to have been compromised, the message maintained. In addition, Turkey would be allowed to increase its duty- free exports of clothing above the present quota, but only for goods made with American yarn and fabric.

However, there is strong resistance from the US textile industry, which is reported to be outraged over the package of textile trade concessions offered to Turkey.

Turkey is keen to grab the opportunity and look into ways and means to overcome local opposition to a war with Iraq and greater access to the US textile market was one of the key negotiating terms during its discussions over the stationing of US troops.

The Bush administration is also taking a big risk as it expects domestic political backlash if it grants too many textile trade concessions to allies such as Turkey and Pakistan, the report maintained. And there are concerns that countries such as Mexico and Chile will demand similar concessions in return for crucial UN Security Council votes.

The chairman, Pakistan Bedwear Exporters Association (PBEA), Aziz L Jamal, expressing his views over the development, said that this is not the first time that Turkey has managed to extract full economic advantage from developed countries. Turkey has been paid for siding with the US against the war on terror, he added.

He further said that Pakistan, on the other hand, missed the bus twice. First opportunity came across during the Zia regime and the second opportunity arose during President Musharraf’s military regime but unfortunately, it failed miserably to get a fair reward as an ally against the war on terror.

The market access agreement signed by Pakistan with the US was an eyewash and since getting market access in non-performing categories, the exports in those categories have in fact gone down drastically, Aziz Jamal lamented.

The deal, Turkey has just singed and only awaits for the rectification from their parliament, he said includes market access in textiles.

Despite the fact that the deal is facing a lot of opposition from the textile manufacturers within the US and their strong lobby and support with the legislators, the US administration is adamant to go ahead with the deal.

When Pakistan was demanding market access, PBEA chief said, the US administration declined such requests on the pretext that they are facing strong opposition from their domestic industry.






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