The Free Trade Agreement with Malaysia does not promise any immediate benefits to the local export sector largely because the Malaysia does not allow duty free access to its markets.
Since Malaysia is a member of the ASEAN, it is obliged to impose a 7.5 percent duty on imports of textile and clothing.
This means that Pakistan exports to Malaysia will not receive any special privileges for its entry into the South East Asian territory.
In an exclusive interview with Fibre2fashion, Mr Akber Sheikh, Chairman Media Committee of All Pakistan Textile Mills Association (APTMA) stated, “Preferential trade agreements are a part of the dynamic process and according to WTO agreement requirements, should gradually open up all sectors of economy to enhance trade, making sure that these agreements do not become tools of trade diversion. Pakistan-Malaysia preferential trade agreement will evolve along the same lines. APTMA has participated in the negotiation process and is in sync with aims and objectives of the agreement.”
Mr Sheikh further confided that “APTMA hopes for the textile industry to gain both short and long term benefits from this agreement. Pakistan textile industry has comparative and competitive advantages in home textiles, knitwear, socks, denim etc, when compared to ASEAN countries."
He adds, "Pakistan can also undertake joint manufacturing with Malaysia and other ASEAN countries for fine count MMF products. Synergies of business will be discovered with increased interaction between the industries of the two countries.”
To meet their objectives, the Trade Development Authority of Pakistan (TDAP) has instigated a research to explore the export potential of Pakistan by categorizing items for export to Malaysia.
Fibre2fashion News Desk-India
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