EU, US tariff changes trigger export emergency call

Exporters of the value-added textile sector have demanded the declaration of an export emergency and the convening of an urgent consultative meeting, citing growing threats to Pakistani value-added apparel and textile exports in the European Union and United States markets. The demand was conveyed in a letter sent to the prime minister by Muhammad Babar Khan, Chairman of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA).

The letter said PHMA represents over 1,200 exporting units engaged in hosiery and knitwear manufacturing, with the sector contributing about $6 billion annually to Pakistan’s exports. It stated that the proposed EU–India Free Trade Agreement and additional US tariffs have created new challenges for the industry at a time when Pakistani exporters are already facing historically high production costs and are increasingly unable to compete on price in global markets.

It noted that Pakistan currently enjoys zero-duty access to the EU under the GSP Plus scheme, which is subject to strict compliance with 27 international conventions. In contrast, India’s preferential access under the proposed EU-India FTA would not be linked to similar obligations. As a result, tariff parity would inflict structural damage on Pakistan’s value-added textile sector.

The letter described recent developments in US-India trade policy as highly alarming for Pakistan’s exports. The US hasrecently reduced tariffs on Indian exports, including textiles, from 50% to around 18%.