US textile quota on China alerts big exporters
KARACHI, May 23: Leading export houses are presently busy in mock anti-dumping exercise in order to face a situation that may arise if United States imposes punitive duty on certain fast running categories of textiles and clothing. “We have hired foreign consultants and experts to make our accounting and costing systems compatible with those of the US in order to be ready to fight and protect our interest if such measures are taken by the US Commerce Department,” a leading exporter told Dawn.
Ever since the quota free regime of the WTO started from January 1, 2005, there had been growing concern amongst importing countries that it would put thousands of jobs at stake as influx of cheap textile products from developing countries has threatened their domestic industry.
Similarly, there were growing concern amongst exporting nations that in the absence of any check and balance the developed nations would come up with heavy hand on imports from developing countries producing textiles and clothing.
The Bush administration last week re-imposed quotas on imports of eleven categories of clothing from China which sent shock waves among the textile world. Despite the fact that US has the power to set the limits on Chinese goods under an agreement that cleared the way for Beijing’s entry in the WTO in 2001, but it has equally sent a warning signals to other nations producing textiles and clothing.
Exporters feel that they would not like to be taken by surprise and have formed groups to share heavy bills to be paid to foreign consultants for making their entire book-keeping system compatible with the US and also meet the legal requirement in case anti-dumping duty was imposed.
However, most of the mock-exercise is being carried out by big exporters involved in manufacturing and exports by virtue of having composite units and are also financially sound. But even these exporters have formed groups to share the hefty fee of foreign consultants.
Nevertheless, one would like to know what would be the fate of 80 per cent exporters who are small and medium sized. These exporters are not only unaware of most of the conditions required by advanced and developed countries but even can not afford to foot the bill of such consultants.
The leading US stores like Wal Mart, JC Penny, K-Mart etc whose annual business turnover is many a time larger than Pakistan’s exports have their own set of social compliances and of course there are security requirements laid down by individual nation of the West to be met by exporters.
In the absence of any support and guidance from the government it is being feared that only leading exporters may be able to sustain the current and developing scenario where harsh and knowledge based conditions have to be met by export houses.
Exporters fear that fast running categories such as Knit Shirts (cotton) men and boys (category 338), Knitted Blouses (cotton) women and girls (cat 339), Trousers and shirts (cotton) (cat 347 and 348), Cotton and Man-made skirts (cat 342 and 642), Cotton Sheets (cat 361), Tarry and others pile towels (cat 363), Pillow casing of cotton (cat 360) are some of the categories that may face anti-dumping or countervailing duties from the US.