Press Release

GSP Status of USA to be availed maximum, Khalid Tawab

(Karachi P.R. 1st Oct, 2016) Shaikh Khalid Tawab, Sr. Vice President FPCCI has drawn the attention of the Government towards the under-utilization of GSP status of USA by Pakistan that shall expire in December 2017. He emphasized that exporters of jewellery, carpets, and certain agricultural products including mangoes, chemicals, minerals, some manufacturing items and marble sectors should avail this scheme and exports their products to USA. Currently Pakistan exports approximately $ 200 million worth of goods under the GSP scheme while Pakistan’s total export to USA is US $3.063 billion wherein the share of exports through GSP is just 5.7%, which is very low.

He elaborated that US GSP programme provides duty free access for approximately 3500 products and duty concession access of many products to USA. He further added that the GSP does not include Pakistan’s core textile and leather products exports. He also requested the trade mission of USA in Pakistan to provide guideline and educate Pakistani exporters for proper utilization of the GSP status.

He also urged the US trade mission in Pakistan to provide better market access to Pakistani products in the US market, specially textiles and leather as economy of Pakistan has suffered tremendous loss due to war on terror. He added that textile which has 85% share in total exports to USA is facing high tariff rate in USA. It is true that Pakistan’s textile exports to USA has increased after abolishing the quota, but this has not brought any significant benefit to Pakistan, he added. At present, Pakistan is paying in between 10 percent to 25 percent duty on certain textile products in USA which is very high and facing tough competition with Vietnam, Indonesia, and Bangladesh due to duty free access of textile. Textile and leather products are our premier exports; he urged the government to convince US authorities to include these products in the programme. Pakistan needs trade because it is an engine of economic growth and helps in alleviating poverty and reducing unemployment, he added.

Maher Alam Khan
Acting Secretary General