Pakistan Asks USA and EU to Reduce Textile Tariffs

In the aftermath of the worst flood in its history, Pakistan is once again asking theUSA and Europe to lower their import tariffs on textile goods. The most recent request comes with a new sense of urgency, however, given that 20 percent of Pakistan is underwater and nearly 20 million of its citizens have been displaced by the floodwaters.

A reduction of the tariffs would be more beneficial than aid packages when it comes to combating extremists, who thrive by recruiting the unemployed youth.
Approximately15% of cotton crop has already been destroyed by the flooding, raising fears of shortages for textile companies. It’s a harsh blow for Pakistan’s textile industry, which has suffered in recent years as China began to dominate the market through its much greater economies of scale. Textile goods generate about half of the nation’s 2010 export income, accounting for more than US$10.3 billion.