KARACHI, Oct 8: Minister for Commerce Abdul Razak Dawood on Tuesday said there was no truth that the European Union (EU) was planning to withdraw tariff concessions given on our exports to its member states.

“It certainly shocked me when I was informed about the news and I immediately rang the EU headquarters at Brussels, but there was clear-cut reply that no such move was planned,” the minister maintained.

He said Indians blew a balloon but there is nothing to worry about as the EU gave us these concessions on some basis and in case they want to withdraw there are certain procedures they (EU) will have to follow.

This was stated by the minister for commerce during his visit to APTMA where he held a meeting with its members and gave a review of last three year’s performance of the present government.

However, the minister expressed his concern over the trade talks with the US and said, “we are worried about bedlinen and garments exports to US in particular but still we are holding talks with Washington and trying to pursue our case more forcefully.

He advised the APTMA members to try to promote clean cotton by paying a little more cost to growers who have to make extra efforts in its production. In the long run, he said it will be beneficial for the industry which will be able to fetch higher price for its good quality products, it may be cotton yarn or finished textile product.

He also tried to encourage the spinners to support growers of Balochistan particularly when their cotton fibre is par excellence. Dawood said they should also set up textile units in the province particularly in Nasirabad.

Similarly, he said the NWFP is also following in foot steps of Balochistan where cotton is now being cultivated. The minister said that he had directed the TCP to pick up entire cotton grown in the NWFP.

While appreciating the spinning industry’s contribution towards exports and providing of jobs has cautioned the APTMA members that within next five to ten years their presence will fade away as apparel industry is fast taking their place.

He lauded the performance of bedwear industry and said, “if I am asked to give time I will select the bedwear industry which has made tremendous job in attaining quality products and high exports.”

Undoubtedly, he said, out of Rs40 billion investment in textile industry the major chunk of Rs24 billion had been made by spinning industry but the minister said that he had strong feeling that spinners’ days are numbered.

Responding to issues raised by the APTMA chairman Anjum M Saleem the minister agreed that the sales tax system is damaging the industry as well as exports and assured that he would take up the matter with relevant authorities.

There was general complain about Section 73 and the participants demand re-thinking about its existing law.

Referring to another point raised by APTMA chief, the minister said that the government supported the polyester fibre manufactures so that they could develop and become strong enough to compete in the world market. Now they have started to export which is a good sign.