Lifting of EU’S anti dumping duty on Pakistani bed linen, a ray of hope for the industry

The month of March has brought renewed hope for the textile industry of Pakistan. On the 5th of March, the anti dumping duty on Pakistani bedwear imposed by the European Union in 2004 was finally lifted. The EC slapped an anti-dumping duty of 13.1 percent in early 2004, but following the protest of Pakistani exporters, the European Commission immediately announced a partial review. In the first closure of the review, the duty was brought down to 9.9 percent, which was further cut down to 7.6 percent in second review. While on May 6, 2006, the duty was reduced to 5.8 percent and finally removed on 5th March 2009.

In the last five years Pakistan has lost a significant share of bed linen market estimated to be more than $300 million in Europe as a result of the anti-dumping duty which made Pakistani home textiles uncompetitive. This was a strong and flourishing sub sector of Pakistan’s textile industry where huge investments in wider width weaving and processing took place in the last fifteen years. It was a niche Pakistan had established for itself which was compromised as a result of anti dumping duty. The removal of anti dumping duty should therefore make Pakistani exports of bed linen more attractive giving a much needed boost to Pakistan’s textile exports to the European market.

In January, Pakistan’s participation at Heimtextil, the most important trade show for home textiles indicated significant surge in interest by European buyers in anticipation of the removal of anti dumping duty. This is the opportunity Pakistani home textiles manufacturers should grasp immediately to gain back the market they have lost in the last five years. Unfortunately the task has been made very difficult due to problems faced by the industry, foremost being the high cost of production and energy shortage. However, It is encouraging to note that TDAP is planning trade delegations who will be sent to Western Europe to assess the ground situation in EU and to explore better opportunities for the bed wear exports.

6th Textile Asia Exhibition held at a difficult juncture for the textile industry

The 6th Textile Asia Exhibition organized by Ecommerce Gateway is scheduled to be held from 5th to 8th April 2009. More than 320 brands of textile machinery, accessories dyes and chemicals will be on exhibit at the show either directly or through through local representatives.

Textile Asia is taking place when the global recession has adversely affected the exports of Pakistani textiles has put a hold on the investment decisions in textiles. The situation was further aggravated due to the unstable political situation and signs of growing country wide unrest and the worsening law and order situation. However, there are signs that the recovery may be sooner than expected after the restoration of the judges and the compromise of the political parties which had severely impaired the economic activity in the country. This is supported by a buoyant Stock Exchange after a phase of constant decline in 2008.

This exhibition is being held at a time when the textile industry needs to focus on its inherent strengths to gain better market share of global textile market. By using the most appropriate technology and efficient production Pakistan can regain and retain its competitive advantage. One of the highlights of the exhibition is the German ZSK 56 head multihead embroidery machine which has been imported for the Textile Asia exhibition. It is pertinent to note that the embroidery sub sector caters primarily to the domestic market and the market for quality embroidered fabrics and garments in Pakistan is quite strong. Display of such cutting edge technology will make a visit to Textile Asia worthwhile. Our readers are also invited to visit PTJ booth at Textile Asia 2009 and collect a free copy of our Textile Asia 2009 show review.