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WTO Implications for

This text discusses the implications of WTO on Pakistan's textile trade integration, lowering of tariffs, trade remedy actions, technical barriers to trade, regional/preferential trade agreements, and the impact of China in the industry. It also addresses issues related to competitiveness, human resource development, and the need for effective business advocacy and economic research.

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WTO Implications for

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  1. WTO Implications for Pakistan Indusry Engr. Akber Sheikh akbers@yahoo.com

  2. WTO ISSUES -TEXTILE TRADE INTEGRATION(2004) -LOWERING OF TARIFFS -EXPIRY OF TRIMS CONCESSIONS(2004) -TRADE REMEDY ACTIONS -TECHNICAL BARRIERS TO TRADE -ENVIRONMENT -REGIONAL/PREFERENTIAL TRADE AGREEMENTS -SINGAPOREAN ISSUES

  3. -DOHA ROUND -RTA’s -TIFA -THE CHINA FACTOR BUSINESS ADVOCACY & TRADE DIPLOMACY

  4. -DOHA ROUND -TRADE REMEDY DEFENCE -TRADE REMEDY COMPLAINTS -DISPUTE SETTLEMENT -RTA’s -COMPLIANCE DATES & PLANNING -IMPLEMENTATION ISSUES -MFN STATUS -TEXTILE QUOTAS THE INFORMATION GAP

  5. COMPETIVENESS ISSUES -HUMAN RESOURCE DEVELOPMENT -EFFICIENT INFRASTRUCTURE UTILITIES .PORTS .DRAINAGE & EFFLUENT TREATMENT .SALES TAX .INVESTMEN IRRITANTS -TRUE ZERO RATING OF EXPORTS -INPUT COSTS

  6. RECOMMENDATIONS -EFFECTIVE INFORMATIONS DISSEMINATION MECHANISM -EFFECTIVE BUSINESS ADVOCACY FORUM -ECONOMIC RESEARCH UNIT -TRADE REMEDY ACTION COMMITTEE -TRADE DISPUTE SETTLEMENT BODY COMMITTEE -IMPLEMENTATION & COMPLIANCE COMMITTEES

  7. Textile SectorProblems, Issues and Recommendations

  8. Cotton Balance Sheet • Consumption of 500,000 spindles in unorganized sector is not accounted for. Source: TCO

  9. Cotton Stock to Use Ratio • Pakistan despite being 4th largest producer of cotton, has an extremely low stock of cotton reserves, i-e only 13% of its consumptions. Lowest in comparison to its competitive countries Source: USDA

  10. The projected demand of fibers in the world is estimated by studies to reach 84,850,000 metric tons by the year 2010. MMF would take 67.7 % share of this demand and the rest of 32.3% would be filled by all natural fibers . Source: Asian Textile Journal

  11. Textile spinning industry, which was once bench- marked as one bale per spindle per year, is now consuming more than 1.3 bales per spindle. Source: APTMA

  12. Investment plan recommended Source: APTMA

  13. ------THE CHINA FACTOR------ USA TEXTILE IMPORTS

  14. US TEXTILE IMPORTSFROM PAKISTAN

  15. US TEXTILE IMPORTS FROM BANGLADESH

  16. S.# Product 2001 2002 % Charge 1 Total MFA 2210.674 4963.116 101.24 2 Apparel MFA 975.980 1564.963 77.53 3 Non-Apparel MFA 1234.695 3398.153 111.99 4 Yarns 21.624 31.594 3.81 5 Fabrics 331.065 612.630 12.72 6 Made Ups/Misc. 882.006 2753.929 146.20 7 Cotton Products 943.623 1841.353 58.83 8 Cotton Apparel 342.832 653.218 77.19 9 Cot. Non-apparel 600.791 1188.134 49.86 US TEXTILE IMPORTSFROM CHINA

  17. S.# Product 2001 2002 % Charge 1 Total MFA 4289.934 4335.089 -9.93 2 Apparel MFA 2290.142 2157.196 -4.95 3 Non-Apparel MFA 1999.793 2177.893 -14.73 4 Yarns 603.373 566.304 -5.27 5 Fabrics 443.132 569.980 -16.62 6 Made Ups/Misc. 953.287 1041.608 -19.59 7 Cotton Products 1557.260 1518.082 -4.51 8 Cotton Apparel 1145.007 1123.144 -3.52 9 Cot. Non-apparel 412.253 394.939 -6.96 US TEXTILE IMPORTSFROM MEXICO

  18. S.# Product 2001 2002 % Charge 1 Total MFA 1250.245 1544.604 16.48 2 Apparel MFA 402.811 508.715 16.28 3 Non-Apparel MFA 847.434 1035.889 16.60 4 Yarns 12.525 23.633 40.34 5 Fabrics 151.196 169.754 9.63 6 Made Ups/Misc. 683.713 842.502 17.41 7 Cotton Products 1031.137 1207.780 7.44 8 Cotton Apparel 250.102 338.751 17.36 9 Cot. Non-apparel 781.035 869.029 2.98 US TEXTILE IMPORTSFROM INDIA

  19. ATMI Analyzed Chinese Growth into US Market in all 29 Apparel categories removed from quota control onJanuary 01, 2002 • KEY POINT: First time the China competing head to head withoutquotas with everyone else – Vietnam,Bangladesh, India, Mexico…..

  20. 29 INTEGRATEDCATEGORIESCHINESE SHARE BY DOLLAR

  21. 29 INTEGRATED CATEGORIESCHINESE SHARE BY VOLUME

  22. PROJECTED EXPORT LOSSES TO CHINA (POST 2005)

  23. 29 INTEGRATED CATEGORIESAverage Price Per Square MeterPre and Post Quota Removal

  24. 29 INTEGRATED CATEGORIESAverage Price Per Square MeterPre and Post Quota Removal

  25. 29 INTEGRATED CATEGORIESAverage Price Per Square MeterPre and Post Quota Removal

  26. China Growth:Sensitive Categories • ATMI has requested safeguard actions using new China WTO safeguard provisions. • No action has been taken yet. • US Imports from China in sensitive categories have gone up an average of 600 percent over the past year!

  27. China increased its exports by a RECORD 2.8 billion square meters. 96% of China’s increase was in quota de-controlled categories.

  28. Why is China Unbeatable?According to ATMI • OVER 50 % OF CHINA’S TEXTILE SECTOR IS STATE – OWNED AND SUBSIDISED • VAT REFUND REGIME IS A HIDDEN SUBSIDY • CHINA’S CURRENCY IS UNDERVALUED • .$500 BILLION IN NON-PERFORMING LOANS HAS A SUBSIDY EFFECT • CHINA’S TEXTILE INDUSTRY IS INDULGING IN PREDATORY DUMPING • IS IT TRUE ?

  29. WHAT IS OUR FUTURE

  30. ????

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