According to an article published by Pakistan’s Dawn newspaper on October 26, it commented on the possible impact of the TPP on Pakistan’s industry and exports. The article believes that the TPP will provide lower tariffs for Vietnam, Peru, Mexico and other countries, and Pakistan’s exports to the United States, especially textile exports, will face major challenges.
Textiles are one of Pakistan’s few value-added export commodities, and its main export destinations are the European Union and the United States. Currently, the United States’ garment imports are as high as US$83 billion, and Pakistan’s exports to the United States are approximately US$1.45 billion. With the implementation of the TPP, Vietnam, Malaysia, Peru, Mexico and other countries will receive more preferential tariffs for exports to the United States, which will pose a great challenge to Pakistan’s textile industry.
The article believes that the WTO is intended to provide a platform for fair competition for various countries around the world, but its exemption clauses regarding free trade areas seriously affect the concept of “most favored nation treatment”. With the signing of more and more regional and bilateral free trade agreements, trade competition between countries is no longer equal. Although the TPP is still about two years away from actual implementation (it needs approval from each country’s legislative bodies), the Pakistani government should seriously consider the impact of similar free trade agreements on industry and exports and formulate countermeasures as soon as possible. TPP textile exports to Pakistan
