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WTO Implications for Engr. Akber Sheikh

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Presentation on theme: "WTO Implications for Engr. Akber Sheikh"— Presentation transcript:

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3 WTO Implications for Engr. Akber Sheikh

4 WTO ISSUES -TEXTILE TRADE INTEGRATION(2004) -LOWERING OF TARIFFS -EXPIRY OF TRIMS CONCESSIONS(2004) -TRADE REMEDY ACTIONS -TECHNICAL BARRIERS TO TRADE -ENVIRONMENT -REGIONAL/PREFERENTIAL TRADE AGREEMENTS -SINGAPOREAN ISSUES

5 BUSINESS ADVOCACY & TRADE DIPLOMACY -DOHA ROUND -RTAs -TIFA -THE CHINA FACTOR

6 THE INFORMATION GAP - DOHA ROUND -TRADE REMEDY DEFENCE -TRADE REMEDY COMPLAINTS -DISPUTE SETTLEMENT -RTAs -COMPLIANCE DATES & PLANNING -IMPLEMENTATION ISSUES -MFN STATUS -TEXTILE QUOTAS

7 COMPETIVENESS ISSUES - HUMAN RESOURCE DEVELOPMENT -EFFICIENT INFRASTRUCTURE UTILITIES.PORTS.DRAINAGE & EFFLUENT TREATMENT.SALES TAX.INVESTMEN IRRITANTS -TRUE ZERO RATING OF EXPORTS -INPUT COSTS

8 RECOMMENDATIONS - EFFECTIVE INFORMATIONS DISSEMINATION MECHANISM -EFFECTIVE BUSINESS ADVOCACY FORUM -ECONOMIC RESEARCH UNIT -TRADE REMEDY ACTION COMMITTEE -TRADE DISPUTE SETTLEMENT BODY COMMITTEE -IMPLEMENTATION & COMPLIANCE COMMITTEES

9 Textile Sector Problems, Issues and Recommendations

10 Cotton Balance Sheet Consumption of 500,000 spindles in unorganized sector is not accounted for. Source: TCO

11 Cotton Stock to Use Ratio Pakistan despite being 4th largest producer of cotton, has an extremely low stock of cotton reserves, i-e only 13% of its consumptions. Lowest in comparison to its competitive countries Source: USDA

12 The projected demand of fibers in the world is estimated by studies to reach 84,850,000 metric tons by the year MMF would take 67.7 % share of this demand and the rest of 32.3% would be filled by all natural fibers. Source: Asian Textile Journal

13 Textile spinning industry, which was once bench- marked as one bale per spindle per year, is now consuming more than 1.3 bales per spindle. Source: APTMA

14 Investment plan recommended Source: APTMA

15 ------THE CHINA FACTOR USA TEXTILE IMPORTS S.#Country % Charge 1World China P Mexico Canada Pakistan Kor Rep India China T Thailand

16 US TEXTILE IMPORTS FROM PAKISTAN S.#Product % Charge 1Total MFA Apparel MFA Non-Apparel MFA Yarns Fabrics Made Ups/Misc Cotton Products Cotton Apparel Cot. Non-apparel

17 US TEXTILE IMPORTS FROM BANGLADESH S.#Product % Charge 1Total MFA Apparel MFA Non-Apparel MFA Yarns Fabrics Made Ups/Misc Cotton Products Cotton Apparel Cot. Non-apparel

18 US TEXTILE IMPORTS FROM CHINA S.# Cot. Non-apparel Cotton Apparel Cotton Products Made Ups/Misc Fabrics Yarns Non-Apparel MFA Apparel MFA Total MFA % Charge Product

19 US TEXTILE IMPORTS FROM MEXICO S.# Cot. Non-apparel Cotton Apparel Cotton Products Made Ups/Misc Fabrics Yarns Non-Apparel MFA Apparel MFA Total MFA % Charge Product

20 US TEXTILE IMPORTS FROM INDIA S.# Cot. Non-apparel Cotton Apparel Cotton Products Made Ups/Misc Fabrics Yarns Non-Apparel MFA Apparel MFA Total MFA % Charge Product

21 ATMI Analyzed Chinese Growth into US Market in all 29 Apparel categories removed from quota control on January 01, 2002 KEY POINT: First time the China competing head to head without quotas with everyone else – Vietnam, Bangladesh, India, Mexico…..

22 29 INTEGRATEDCATEGORIES CHINESE SHARE BY DOLLAR Apparel Percent Change Cotton17%28%65% Man-made Fiber13%22%69% Wool Apparel11%9%-18% Vegetable Fiber27%53%96% Mixed6%26%333% Total15%31%106%

23 29 INTEGRATED CATEGORIES CHINESE SHARE BY VOLUME Apparel Percent Change Cotton11%28%155% Man-made Fiber8%24%200% Wool Apparel11%12%9% Vegetable Fiber20%54%160% Mixed3%27%200% Total9%31%244%

24 PROJECTED EXPORT LOSSES TO CHINA (POST 2005) S.#Country/RegionLoss $ Mil. 1CBI6279 2Mexico5423 3India2623 4EU2477 5Hong Kong2285 6Canada1861 7Honduras1763 8Korea, South1620

25 S.#Country/RegionLoss $ Mil. 9Pakistan Indonesia Turkey Dominican Republic Taiwan Guatemala Philippines Italy Thailand Bangladesh El Salvador1015

26 29 INTEGRATED CATEGORIES Average Price Per Square Meter Pre and Post Quota Removal Country Change China$ 5.79$ % Rest of World $ 3.55$ %

27 29 INTEGRATED CATEGORIES Average Price Per Square Meter Pre and Post Quota Removal Country Change China Rest of World 1,4391,

28 29 INTEGRATED CATEGORIES Average Price Per Square Meter Pre and Post Quota Removal Country Change China$ 824$ 1, Rest of World $ 5,104$ 4,

29 ATMI has requested safeguard actions using new China WTO safeguard provisions. No action has been taken yet. US Imports from China in sensitive categories have gone up an average of 600 percent over the past year! China Growth: Sensitive Categories

30 China increased its exports by a RECORD 2.8 billion square meters. 96% of Chinas increase was in quota de-controlled categories.

31 Why is China Unbeatable? According to ATMI OVER 50 % OF CHINAS TEXTILE SECTOR IS STATE – OWNED AND SUBSIDISED VAT REFUND REGIME IS A HIDDEN SUBSIDY CHINAS CURRENCY IS UNDERVALUED.$500 BILLION IN NON-PERFORMING LOANS HAS A SUBSIDY EFFECT CHINAS TEXTILE INDUSTRY IS INDULGING IN PREDATORY DUMPING IS IT TRUE ?

32 WHAT IS OUR FUTURE

33 ????????


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