Textile exporters issue emergency call over EU, US tariff changes

Pakistani value‑added textile exporters have asked the federal government to declare an export emergency and hold urgent consultations after new tariff developments in the European Union and United States raised concerns over market access and competition.

In a letter to the prime minister, Muhammad Babar Khan, chairman of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA), said the proposed EU‑India Free Trade Agreement and recent U.S. tariff cuts on Indian goods “risk undercutting Pakistan’s textile exports” at a time when local producers are facing heightened production costs.

PHMA represents more than 1,200 exporters in the hosiery and knitwear sectors, which contribute about $6 billion annually to the country’s export earnings, according to the letter.

The association noted Pakistan currently exports value‑added textiles to the EU duty‑free under the Generalised Scheme of Preferences (GSP) Plus programme, conditional on adherence to 27 international conventions. In contrast, the EU‑India FTA would give Indian products similar tariff access without the same compliance requirements, creating “tariff parity” that could disadvantage Pakistani producers.

The letter also flagged changes in U.S. trade policy. Khan said the U.S. has “reduced tariffs on Indian exports, including textiles, from 50 percent to around 18 percent,” a move described as “highly alarming” for Pakistani exporters seeking to retain market share.

PHMA’s appeal calls for swift governmental action to address these external pressures on Pakistan’s export sector and to support efforts to sustain global competitiveness.