"The EU has reduced the concession period from 3 to 2 years following pressure from the local European textile industry." — File Photo

KARACHI: Pakistan Denim Manufacturers and Exporters Association (PDMEA) have urged the government to send a team to European Union (EU) for explaining the concerns of Pakistani exporters arising out of recent EU proposal on duty concession.

In a statement, chairman PDMEA Shahid Soorti said that Pakistan should also visit European Apparel and Textile Confederation and all other relevant people in this regard.

He said that EU has now set up much tougher restrictions on 75 items initially approved for Pakistan duty free. It has made it far less effective and beneficial.

The EU has reduced the concession period from 3 to 2 years following pressure from the local European textile industry and 3rd year after reassessment.

They have further set up restriction with just 20 per cent growth allowed in a year or we lose duty free status on some of the top items in list of 75 items where we were expecting serious growth like women jeans, fabrics, towels, socks, etc, he added.

Soorti pointed out that it is very much likely that we will be able to surpass this 20 per cent growth in 6-8 months of first year and lose our duty free status as the manufacturers of respective field of garments, towels, etc. will be concentrating on particular duty free items in list of 75 items for example the woven garment manufacturer and their foreign buyer both will be concentrating to buy more women jeans than men jeans due to duty free, etc.

He said that Pakistan should insist that EU must stick to initial proposal of 75 items without any restriction and for 3 years and not accept anything less.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

X post facto
Updated 19 Apr, 2024

X post facto

Our decision-makers should realise the harm they are causing.
Insufficient inquiry
19 Apr, 2024

Insufficient inquiry

UNLESS the state is honest about the mistakes its functionaries have made, we will be doomed to repeat our follies....
Melting glaciers
19 Apr, 2024

Melting glaciers

AFTER several rain-related deaths in KP in recent days, the Provincial Disaster Management Authority has sprung into...
IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...