EU Textile And Garment Industry Opposes Exemption From Entry Into Pakistan Textile Garments

In more than two years, the EU textile and

They have been opposed to unilateral political decisions. They believe that this decision will destroy the overall economic interests of Europe and benefit one of their most feared competitors.

In 2010, the European Union's decision motive was to provide support for Pakistan, and EURATEX accused them of being completely outdated or meaningless under the current economic and financial crisis in Europe.

Referring to the European Parliament's vote on Pakistan's duty free imports this Thursday, EURATEX chairman Alberto Paccanelli said: "we are confident that when making the decision, members of the parliament will consider the severe economic situation facing Europe, especially the risk that some European countries may be more negatively affected by Pakistan's increased exports to Europe."

To create 1 million 800 thousand direct job opportunities for Europe, we must not underestimate the risk of increased unemployment in Pakistan.

In addition, Pakistan's textile and garment industry has benefited from strong financial assistance from the local government, and no additional help is needed to expand the European market share.

Referring to the 2009-2014 year Pakistan textile policy, Alberto Paccanelli said: "our competitors in Pakistan get wide support from the government in the form of tax rebates, export tax rebates reach 40% of FOB, loans reduce interest rates, social security taxes are paid, and there are stimulus plans that have created large export companies."

He said, we remember that Pakistan is the fourth largest textile supplier country in the European Union, benefiting from the dominant position of the market. Some products have been duty-free into the EU market. Some of Pakistan's exports account for more than 80% of the EU's imports.

In addition, Pakistan's exports to the EU continued to grow steadily over the years. In 2005, the EU's import value from Pakistan was 2 million 217 thousand euros, reaching 3 million 222 thousand and 500 euros by 2011.

In fact, the average price of Pakistan is lower than that of its main competitors, which is one of the reasons for Pakistan's enviable performance.

Since the problem was first proposed two years ago, EURATEX said there was no economic or even humanitarian reason for allowing Pakistan products to be tax-free into the EU market.

Mr. Paccanelli wrote to the European Parliament: "Pakistan's textile and garment industry has strong competitiveness. The leading exporters of European exports are the most advanced companies. They benefit from the huge financial support provided by the government, up to 200 million euros, far higher than the average level of SMEs in Europe.

The beneficiaries of tax-free exports to Europe are these companies, not the victims of the floods in 2010. "

EURATEX hopes that when the members of the European Parliament consider the interests of the EU textile and garment industry and workers and reject the tax exemption proposal, they will not benefit from economic or humanitarian considerations.

EURATEX has a turnover of 179 billion euros, with 1 billion 834 million workers and 146 companies.