Khurram Mukhtar, Patron-in-Chief, Pakistan Textile Exporters Association (PTEA), says, despite the recent tariff adjustments, Pakistan maintains a competitive advantage over other textile-exporting nations, owing to its fully integrated supply chain, dedication to quality, and long-established trade relationships.
He emphasizes, although impactful, US actions should not be considered in isolation. The broader consequences of these tariffs will be determined by the global response, particularly concerning services offered by US companies overseas. These tariffs have the potential to set off widespread ripple effects across the global economy, he adds.
Highlighting the long-standing trade relationship between the two nations, Mukhtar notes, a significant importer of US Cotton for decades, Pakistan has been directly supporting American farmers and strengthening mutual economic ties between the two countries. The US administration needs to recognize this partnership and avoid policies that disproportionately harm Pakistan's exports, he adds.
He further points out, the elasticity assumptions commonly used in US tariff models may not accurately reflect the unique trade dynamics between the two countries. The US must take into account the real-world implications of these measures rather than depending on general assumptions.
To tackle these challenges, PTEA aims to actively engage with US trade officials and advocate for preferential market access. Simultaneously, the association aims to diversify export markets, enhance value addition, and urge the government to implement policies that support the industry.
As a gesture of goodwill and a strategic move to strengthen ties, Pakistan is prepared to give preference to key US imports such as cotton, says Mukhtar. Lowering tariffs on these essential commodities can pave the way for reciprocal measures from the US, leading to a more balanced and sustainable trade relationship, he adds
Expressing optimism, he states, PTEA aims to reach a constructive agreement with the United States Trade Representative (USTR) through mutual understanding and proactive dialogue. This will help Pakistan strengthen its trade position and further deepen economic cooperation with the US, he adds.
