The All Pakistan Textile Mills Association (APTMA) has called on the government to urgently initiate trade negotiations with the United States to secure preferential market access for Pakistan’s textile exports, warning of rising competitive pressure in global markets.
⚠️ Rising Competition in Global Textile Trade
APTMA highlighted that Pakistan is increasingly at a disadvantage as key competitors secure better trade terms:
- India: ~18% tariff arrangement with the U.S.
- Bangladesh: zero-tariff access for garments made from U.S. cotton
- European Union–India: Finalized Free Trade Agreement (FTA)
- Pakistan: Facing ~19% tariffs in the U.S. market
👉 These developments are narrowing Pakistan’s competitive edge in its largest export destination
📉 Challenges Facing Pakistan’s Textile Sector
APTMA emphasized that the sector is already under significant pressure due to:
- High energy costs
- Expensive raw materials
- Highest interest rates in the region
- Heavy taxation burden
- Overall difficult business environment
👉 Combined with tariff disadvantages, these factors could further reduce Pakistan’s global market share
🇺🇸 Strategic Importance of the U.S. Market
The United States remains Pakistan’s largest textile export market, making preferential access critical.
👉 Without improved trade terms, Pakistan risks:
- Losing orders to competitors
- Reduced export volumes
- Declining foreign exchange earnings
💡 APTMA’s Proposed Solution
APTMA has suggested a mutually beneficial trade arrangement:
- Pakistan to seek tariff concessions from the U.S.
- In return, increase imports of U.S. cotton
- Focus on textile exports made from American cotton
👉 This model mirrors Bangladesh’s approach and could create a win-win trade framework
🏛️ Policy Action Recommended
APTMA has urged the Ministry of Commerce Pakistan to:
- Initiate formal trade negotiations with the U.S.
- Pursue preferential tariff arrangements
- Strengthen bilateral trade relations
The proposal has also been shared with the U.S. Embassy in Pakistan to build diplomatic support.
🔮 Outlook
Short-Term:
- Pressure on government to engage in trade talks
- Continued competitive stress in export markets
Medium-Term:
- Potential for tariff relief if negotiations succeed
- Increased reliance on U.S. cotton-based exports
🔚 Conclusion
APTMA’s call highlights a growing urgency for Pakistan to secure preferential access to the U.S. market amid increasing global competition. With rivals gaining tariff advantages and domestic cost pressures rising, proactive trade negotiations could play a crucial role in protecting Pakistan’s textile export base. The proposed strategy of linking tariff concessions with increased U.S. cotton imports offers a practical pathway toward strengthening bilateral trade and maintaining competitiveness.
The Agri-Crop editorial team comprises commodity market analysts, rice trade specialists, and agriculture industry professionals based in Pakistan. We track daily price movements, export data, and policy developments across Pakistan’s key agricultural sectors.
