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The Minister of Textiles, Shri Shankersinh Vaghela has emphasized the need for mutual cooperation and understanding between India and Pakistan for facing the challenges posed to the textile industry of both the countries. He said this when a twelve-member business delegation from Pakistan Textiles Exporters Association (PTEA) led by Mr. Ahmad Kamal called on him here today. The Minister said that mutual cooperation is needed more in view of the abolition of the Agreement of Textiles and Clothing from 1st January 2005. He emphasized that we need to have a common strategy for competing in textile sector in the international market. India has been a votary of mutual cooperation among neighbouring countries. India has accorded MFN treatment to Pakistan, whereas Pakistan has given MFN status only in respect of 32 Harmonised System (HS) lines pertaining to textiles sector. He pointed out to the delegation that there is a need for giving MFN treatment to import of all the products from India by Pakistan. Recently, during discussions with Pakistan for exchange of tariff concession under 4th Round of South Asia Free Trade Agreement (SAFTA) held in Kathmandu, India and Pakistan have agreed to exchange 10% tariff concessions on 47 tariff lines belonging to Chapter-52 all relating to yarn. India has already notified 10% tariff concessions to Pakistan while Pakistan has yet to reciprocate the same. There is a need for reciprocity from both sides. He said that we will consider providing assistance to the Pakistani textile industry for imports of dyes, chemicals and textile machinery. Shri Vaghela further emphasized the need for having healthy competition among the textile industry of both the countries. He also emphasized that in view of globalisation, there is a need for more liberal visas from both the countries.
The delegation expressed their happiness to be in India. The Chairman echoed the views expressed by Shri Vaghela that in view of the post quota scenario, there are lot of possibilities of mutual cooperation and expansion of bilateral trade in textile sector. The delegation was specially exploring the possibilities of import of textile machinery, dyes, chemicals and exports of made-ups. Presently, Pakistan is importing dyes, chemicals and textile machinery from China and in future they would like to import these items from India. The delegation informed that recently Pakistan Government has formed a new textile ministry on the pattern of India and one of their past Chairman has become the Textile Minister, Pakistan. In view of opening of global market, India and Pakistan should also open their markets for the mutual benefit. At present there are certain tariff and non-tariff barriers on both sides. The business community faces the problem of logistics for free movement of goods at present. There are certain import restrictions on our borders, which the Government of both the countries need to address. Visa rules needs to be made simpler for free movement of goods and exporters. The delegation emphasized that they will also request Pakistan Government for addressing the genuine problems of Indian industry. There is a need to have more business-to-business interaction for increase in mutual trade.
The delegation also emphasized that the commitments/agreements of the Government need to be implemented in both letter and spirit. There is a need to form committee consisting of representatives of private sector and Government for addressing the problems of the textile industry. In order to keep pace with the other countries of the world, SAFTA Agreement needs to be strengthened. The delegation on behalf of Pakistani Textile Minister also invited Shri Shankersinh Vaghela to visit Pakistan.
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