New Delhi: Pakistan's cotton industry is now worried well-nigh the growing effects of the possible trade try-on between India and America. Experts say that if there is a deal between India and America and there is a huge reduction in tariffs, then Pakistan's cotton and textile companies may squatter a big blow. This issue is rhadamanthine an important issue not only of trade but moreover of the regional economy.
Why does India-US deal stupefy Pakistan's cotton industry?
Cotton and its related industries play a major role in Pakistan's economy. Cotton is used as the vital raw material in the production of textiles like T-shirts, jeans etc. If there is a trade try-on and tariff relaxation between India and America, then Indian textiles can reach the American market at cheaper prices. This will make it difficult for Pakistani textile and cotton products to compete.
What are the concerns of Pakistan's businessmen and industrialists?
Businessmen associated with Pakistani textile industry believe that with the strengthening of trade relations between India and America, the competitive strength of Indian products will increase. He says that there is a difference in production forfeit and quality in Pakistan as compared to India. If Indian textiles wilt misogynist as cheaper and largest alternatives in the American market, Pakistan's export potential will weaken.
Is this deal once under discussion?
Talks on trade agreements between India and America have been going on for the last few months. Both countries have discussed tariff rates, trade rules and investment facilities. The US wardship has indicated that if the trade deal is successful, it will goody the industries of both countries. Although Pakistan is not a part of this conversation, its impact is moreover related as it will have a huge impact on the textile and cotton market in South Asia.
What opinion did the experts give?
Many economists believe that if India gets a special wholesomeness in the American market, then Pakistan's textile exports will be directly affected. They say the US market is huge in terms of jobs, investment and domestic production. If Pakistan is left overdue in this competition, its economy may suffer.
What did the Pakistan government say?
The Government of Pakistan has not yet given any definite response regarding this deal. However, discussions are going on among ministries and bureaucratic agencies as to what could be the countermeasures if the cotton and textile industry is unauthentic by the India-US trade deal. The government has said that it will take steps in the interest of the country's industries.
What other risks are there to Pakistan's economy?
Experts say that not only cotton and textiles but moreover agriculture, exports and foreign investment can be affected. If special concessions on agricultural products are moreover given in the US-India deal, then Pakistan will have to strengthen its agricultural competitiveness.
What are the signs ahead?
Analysts believe that if the try-on is implemented soon, Pakistan will have to quickly focus on its export policy, new markets and technology updates. It has to modernize the quality and forfeit structures of its products so that it can survive in the international market.
