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Adjustment in textile categories 6, 9, 20 allowed: EU rejects Pakistan request for exceptional quota

KARACHI (February 09 2003) : The European Union (EU) has allowed adjustment in textile quota category 6, 9, and 20 against over shipment in these categories by Pakistani exporters during 2002.

The textile industry sources said here on Saturday, the EU has deducted 4,000 tonnes in these categories from the Pakistani quota in the year 2003.

They said that according to information received from the EU, the request of Pakistan for the grant of exceptional quota in these categories has not been accepted.

It may be noted that Pakistan has requested the EU to allow exceptional flexibilities in the categories of (6) shorts/ trousers, 9 (towels) and 20 (bed linen) due to over-shipment in these categories.

Meanwhile, the Directorate of Textile Quota Management (TQM) of Export Promotion Bureau (EPB) has announced the availability of routine flexibilities in textile quota in bilateral agreement with USA, EU, Canada and Turkey.

The flexibility quota is available under a built-in mechanism in bilateral trade agreement with these countries.

“It has nothing to do with the flexibility quota which we are seeking from these countries under exceptional flexibility to settle over-shipment,” an official of TQM said.

The TQM will allow 7 percent intra-category transfer in 12 categories against the surrender of equivalent quantity of other categories in the European Union and Turkey.<br>
For the USA, a swing up to 7 percent will be allowed against surrender of equivalent quantity from any category. In addition, a special swing of 25 percent in the following categories:

Category 331/631, 334/634, 335/635, 340/640, 341/641, 351/651, 352/652, 647/648, 636/39.

Similarly, an additional swing of 8 percent in category 338, 339, 347/348 will also be allowed.

However, exporters can avail an option of surrendering quota as per usual practice in donor categories.

For Canada, a 7 percent each transfer in categories of Group-I and Group-II will be allowed.

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