Administration's Valentine to Pakistan a Slap to American Textile Industry

 

BOSTON, February 15--The Northern Textile Association today denounced a deal, made February 14 by the Bush Administration, granting Pakistan a half billion dollars in textile quota concessions. "This give-away fails to keep the promises this Administration made to the textile industry," said NTA president Karl Spilhaus. In December, when seeking votes for Trade Promotion Authority, Commerce Secretary Don Evans assured the congressional textile caucus that, "In developing any proposal for assistance to Pakistan, the Administration is committed to working with the Congress to minimize the impact on the U.S. textile and apparel industry."

"The domestic U.S. textile industry is in crisis, we have lose 68,000 jobs in the past year and over 100 plants have closed," said Spilhaus. The special benefit granted Pakistan--a 25% increase in apparel quotas--goes well beyond anything the U.S. has given to any country that is not partner to a free trade agreement with the U.S. It is a total betrayal of the Administration's promise, also made in Secretary's Evans' December letter to not accelerate the quota phase out schedule agreed to in the Uruguay Round of trade talks.

The Northern Textile Association further maintains that such extraordinary treatment is unwarranted. U.S. government data demonstrate that Pakistan's textile and apparel exports have not been damaged by the U.S. war on terrorism. In fact, not only did Pakistan's textile/apparel exports to the U.S. increase during 2001 by ten percent their shipments to the U.S. have actually grown by two percent since September 11. Pakistan's performance in the U.S. textile/apparel market was remarkable in light of the fact that the U.S. market has undergone a severe contraction. The contraction in the U.S. market has been so dramatic that not only have domestic producers lost market share, but virtually every other low-cost supplier, including China and India, saw a drop-off in shipments last year. Yet Pakistan managed to grow their exports to the U.S. last year in this sector.

The Northern Textile Association represents producers of fiber, yarn, and fabric, as well as dyers, printers, and finishers of fabric have domestic U.S. production in over 20 states. NTA is based in Boston, Massachusetts and was founded in 1854.

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