KARACHI, June 5: Exporters see the United States move to enter into free trade agreements (FTAs) with several regional countries as direct threat to Pakistani textile and garment exports.

The US and Bahrain have recently finalized their negotiations for entering into FTA. If the pact was signed, it would be the third US free trade agreement with an Arab country - after Jordan and Morocco - and the first in the Gulf region.

Textile and garment exporters were perturbed that despite the fact that Pakistan was being a front line state in war against terrorism with the US, but it was being denied any economic benefit.

There was growing fear among exporters of textile and garments that ultimately the country would be left behind as a raw material source and there would be export of yarn and raw cotton only.

According to reports that the US would enter into same agreements with other Gulf Cooperation Council (GCC) states including Qatar, Kuwait and eventually Saudi Arabia.

"How the US administration accepts that Pakistan would be all fine without job opportunities because FTA with regional countries will directly damage Pakistan's interest," former chairman Pakistan Hosiery Manufacturers Association (PHMA) Aslam Karsaz said.

In similar developments the US recently concluded the first round of free trade agreement negotiations with Colombia, Ecuador, and Peru. The negotiators from both the sides expect positive outcome in the coming rounds.

"Many of our buyers have already started looking for new sources and leading world brand names Wal Mart, Gap, Sara Lee etc., are buying from Bahrain," Mr Karsaz maintained.

He further said that the day was not far that even our Pakistan industry would start relocating or shifting to such countries where opportunities exist. But the question is, he said, where our youth will go, joblessness will further deteriorate law and order situation in the country, he added.

Tahir Aziz, chairman Pakistan Ready-made Garments Manufacturers and Exporters Association (PRGMEA), said that our garment industry was already witnessing decline in its exports and signing of such agreements between the Unites States - the biggest market of the world - and other countries the entire balance will go against Pakistan.

He further said that the FTA with Bahrain and for that matter any other country would ensure that it remains on the international garment map for a longer time. Furthermore, he said the FTA would allow the existing units to invest into expanding their manufacturing base thereby creating more jobs.

Above all, Mr Aziz said, it will help Bahrain to attract ventures from international companies to set up manufacturing operations in the kingdom.

A number of exporters who were contacted by Dawn over telephone simply raised one question, "What benefit the country did get by taking difficult decision with regard to war against terrorism and Afghan war?" All these developments have not only damaged our social fabric but inflicted enormous economic loss.

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