KARACHI, Feb 16: Commerce Minister Abdul Razak Dawood on Saturday expressed his dissatisfaction on the economic package offered by the US to Pakistan and said it had proved to be much lower than expected.
Addressing a hurriedly called press conference on his return from the US at the Export Promotion Bureau head office, the minister seemed to be much disturbed about the outcome of the negotiations.
What has been offered by the US negotiators in the economic package and towards market access, Razak Dawood said, was not at all significant despite “our hectic efforts and several visits paid by me and the secretary commerce in the post-Sept 11 incident.”
During the course of negotiations, he said, three major demands, including quota enhancement, flexibility and suspension of customs duty on textile imports from Pakistan were raised before the US authorities.
Instead of accepting these demands, Dawood said, the US had only offered 8 per cent swing or shift in fast moving textile categories, but in real term this could in no way be taken as an enhancement in the quota.
On the contrary, the minister said the US had offered 15 per cent quota increase in 14 slow moving categories, which carried no significance as far as exports are concerned.
The minister, who looked quite upset on the outcome of the negotiations, said only two ‘hot cake’ or fast moving categories were increased by 8 per cent against “our expectation of 50 per cent.”
Responding to a question, Razak Dawood said the additional quota and market access was likely to have a total impact of around $143 million, but was not ready to reply whether the package has been signed or not.
However, he said negotiations were still going on, but again was unable to answer whether the economic package announced by the US was presently applicable or not.
The minister did not agree with a newsman, who asked him that the offer from China for a join venture in textiles came up for discussion in the US or any objection raised by negotiators.
At the conclusion of the press conference the minister handed over a copy of a document regarding the US proposal for textile benefits for Pakistan.
a) Quota increases of 15 per cent to be built into the 2002 base level and special swing of 25 pre cent for CY2002-2004 (in addition to the swing already in the bilateral agreement) for the following categories:
1) C.331pt/631pt (woven gloves); 2) C.334/634 (men’s and boy’s other coats); 3) C.335/635 (women’s and girls’ coats); 4) C.341/ 641 (women’s and girls’ woven blouses); 5) C.351/651 (pajamas and other nightwear); 6) C.638/9 (man-made fibrer knit shirts and blouses); 7) C.647/8 (man-made fiber trousers).
b) Special swing for CY2002-2004 (in addition to the swing already in the bilateral agreement) for the following categories:
1) 8 per cent C.338 (men’s and boys’ cotton knit shirts), C.339 (women’s and girls’ cotton knit blouses) and C.347/8 (cotton trousers).
2) 25 per cent C.340/640 (men’s and boys’ woven shirts), C.352/652 (underwear).
c) The special swing described above shall be taken only from textile categories (non-apparel) with quotas in the bilateral agreement.