Daily Times

ISLAMABAD: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senior Vice President Shaikh Khalid Tawab has drawn the government’s attention towards underutilisation of GSP status of USA by Pakistan, which would expire in December 2017.

He emphasised that the exporters of jewellery, carpets, agricultural products, chemicals, minerals and marble should avail this scheme and export their products to USA. Currently, he said, Pakistan exported approximately $200 million worth of goods under the GSP scheme while the country’s total export to USA stood at $3.063 billion wherein the share of exports through GSP was just 5.7 percent, which was very low.

He elaborated that the US GSP programme provided duty free access for approximately 3,500 products and duty concession access on many products to USA. He said that GSP does not include Pakistan’s core textile and leather products’ exports and requested the trade mission of USA in Pakistan to provide guideline and educate Pakistani exporters for proper utilisation of the GSP status.

He urged the US trade mission in Pakistan to provide better market access to Pakistani products in the US market, especially textiles and leather, as economy of Pakistan has suffered a tremendous loss due to war on terror. He added that textile, which enjoyed 85 percent share in total exports to USA, was facing high tariff rate in USA. “It is true that Pakistan’s textile exports to USA has increased after abolishing the quota, but this has not brought any significant benefit to Pakistan,” he added.

At present, he said, Pakistan was paying in between 10 percent to 25 percent duty on certain textile products in USA, which was very high and facing tough competition with Vietnam, Indonesia, and Bangladesh due to duty free access of textile. He said textile and leather products were our premier exports, urging the government to convince US authorities to include these products in the programme. “Pakistan needs trade because it is an engine of economic growth and helps in alleviating poverty and reducing unemployment,” he added.