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Published 18 Nov, 2010 08:13am

Pakistani must seek initial EU concessions: PDMEA

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.

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