ISLAMABAD, May 3: In the second year after the phasing out of the agreement on textiles and clothing, Bangladesh leaves behind all South Asian textile producing countries in grabbing maximum market share in the two major markets of US and a 25 member bloc of European Union, says a WTO report.
China's exports continued to gain market share in all major developed import markets despite restrictions introduced in 2005. Some smaller suppliers—Egypt, Morocco and Cambodia also expanded their textiles and clothing exports even faster than China and the share of least-developed countries in imports of the US and the EU increased sharply in 2006.
According to the WTO report on World Trade in the year 2006, Bangladesh exports to both US and EU rose by 22pc and 34 per cent in the eleventh month period (Jan 2006 to Nov 2006) because of preferential market access in both the leading markets. The growth in export of textile and clothing products to Canada was also higher than other South Asian countries, which stood at 19pc during the period under review.
Contrary to this, Pakistan's exports to both the leading market of the US and EU increased by 12 per cent in the second period of the post quota regime.
Pakistan export of textile products rose by nine per cent to Canadian market as this market was also steadily captured by the least developed countries, particularly Bangladesh, because of having zero customs duty on exports.
Ironically, Pakistani exporters are losing Japanese market in the post quota regime. It is clear from the facts that exports to Japan declined by 7 per cent. Pakistan exports yarn and fabric to Japan. No action is seemed to have been taken in re-capturing this lucrative market.
Sri Lankan exports to EU countries were up by 24 per cent during the period under review because of generalised system of preferences plus scheme — zero rate of duty.
Colombo recorded a 12 per cent increase in its share to Japanese market. However, exports to US recorded a nominal growth of two per cent with no export of Canada during the period under review.
India recorded a growth of eight percent and 13 per cent in exports to the US and EU. While India performed better by one per cent as compared to Pakistan in case of exports to EU.
The higher growth in Indian exports to EU were because of higher export of Indian garments and bed-linen as Pakistani bed-linen attracts anti-dumping duty in the EU market.
Still Indian products are more competitive though Pakistan textile products also enjoy some preferential duty besides offering the lowest unit price in EU as compared to other South Asian countries.
India recorded 16 per cent hike in textile exports to Japan compared with a seven per cent decline in Pakistan's exports. India was able to capture some of the textile market in Japan which was previously with Pakistan.
