The US delegation, during its recent visit, has conveyed to the government of Pakistan that legislation to abolish tariff on textiles is underway, which would enable Pakistan's textile sector to export its products to the US market without paying duties.

The officials of the US AID and US's Special Representative to Pakistan and Afghanistan Richard Holbrooke shared this information after the conclusion of an address delivered by the US Secretary of State Hillary Clinton. They said the legislation on abolishing the 16 percent tariff on Pakistani textiles was discussed in the Senate's standing committee on foreign affairs.

In committee meetings, US senators consulted with the representatives of the US trade bodies to totally waive off duty on Pakistani textiles. They expressed hope the Obama administration would succeed in convincing them. Senior US officials have pledged to work for a greater market access to the Pakistani textile products in the United States of America and to advance bilateral trade and economic ties, they said.

Meanwhile, a senior official of the textile ministry said the granting of greater access to the US and European markets through abolition of tariffs are likely to result in an increase in Pakistani exports of $8 to $10 billion. This means Pakistan's total textile export has the potential to grow from $10.6 to $20.6 billion by the year 2015, the official said.

Pakistan is paying about 16 to 20 percent duty on value-added export to the US market, and 13 percent to the European market. However, if Pakistani textile is allowed free access to these markets like the one that is allowed to India, China and Bangladesh, then Pakistan's textile exports could be enhanced by $8 to $10 billion, the official added.

He said the early finalisation of reconstruction opportunity zones (ROZs) legislation is aimed to create jobs and enhance economic development in the tribal areas bordering Afghanistan, which would benefit Pakistan as well.

United States Trade Representative (USTR) of Textiles Gail Strickler recently held a meeting with Pakistan's textile delegation to the US and assured them the USTR would make every effort to help Pakistani manufacturers in facilitating their exports and improving the quality of their products.

While the Deputy USTR Paul Jones said the improving market access for Pakistani products was part of the strategic dialogue between the US and Pakistan. A better economic co-operation and development would iron out wrinkles caused by the trust deficit between the two countries.