October 17, 2006	Tuesday	Ramazan 23, 1427

ISLAMABAD, Oct 16: Pakistan’s trade surplus with the United States dropped by $47.5 million in the first eight months of the current calendar year over the corresponding period last year, despite reassurance by President Bush of further opening US markets for Pakistani goods and the ongoing efforts to reach a free trade agreement (FTA) with the world’s sole super power.

The trade surplus with the US came down to $1.27 billion in January-August 2006 from $1.318 billion in the same period last year, statistics of the US Census Bureau show.

Sources at the commerce ministry said that things seemed to be not improving for Pakistan, as the vital issue of FTA was not taken up with the US authorities during the recent visit of Gen Pervez Musharraf to the United States.

They said the Generalised System of Preference (GSP), which the US had offered to Pakistan, was also expiring in the next two months and Pakistan would have to mount diplomatic efforts to make the US Congress extend the agreement for another year.

From January to August this year, Pakistan exported goods worth $2.454 billion to the US, mostly textile, textile products and apparel, while it imported goods worth $1.183 billion from the US during this period.

In August alone, the US had a negative trade balance worth $226 million with Pakistan. But keeping in view its long standing association with the US and its present role in the war on terror, Pakistan is still far behind and is on seventh position in the list of 25 countries from which the US imports textiles, textile products and apparel as its top trading partners.

Pakistan is even behind Bangladesh -– on number sixth in the list -– which exported textiles products worth $306.6 million to the US markets in August this year as compared to Pakistan’s $295.2 million.

In July, Pakistan exported textile products worth 320 million to the US that saw a 7.9 per cent decrease in August.

China has topped the list by exporting textile products worth $3.5 billion to the US in August, followed by Mexico with $626.5 million at number two and India with $383.1 million at number three.