NCPA


Policy Issues

NCPA Publications

Both Sides

Editorial Opinions

Audio/Visual


NATIONAL CENTER FOR POLICY ANALYSIS
HOME / DONATE / ONE LEVEL UP / ABOUT NCPA / CONTACT US
Textile Industry Protection
Daily Policy Digest

Trade Issues / Tariffs and Other Trade Barriers

Friday, March 08, 2002
Since he signed on as America's key ally in the war against terrorism, Pakistani President Pervez Musharraf has asked only one favor: suspension of U.S. tariffs and quotas on Pakistani textiles. Last month he got his answer: no.

Instead, the administration consented to a bureaucratic sleight of hand that would let Pakistan borrow unused quotas of American imports such as wool gloves. The offer was worth $140 million, one-tenth of the value of Musharraf's initial request. Others, however, have been more generous.

  • Turkey raised quotas for Pakistan in October and the European Union (EU) lifted all tariffs, despite cries from its textile industry.
  • Pakistani exports to the EU are up 43 percent, giving them a much-needed economic boost.
  • But far from countering terror with trade, the U.S. has actually reduced its imports from Pakistan since 9-11.
  • Pakistani textile exports to the U.S. -- 80 percent of its total U.S. exports -- dropped 40 percent, costing 48,000 jobs.
Instead of helping Pakistan recover, analysts say, the Bush Administration kowtowed to the U.S. textile lobby, which supports protectionist tariffs and quotas. During the last six months, the industry has lobbied against tariff-lowering requests from Turkey, Uzbekistan and Tajikistan -- all key allies in the war on terrorism.

In other words, observers note, the protectionist lobby of a dying industry has become the opponent of American foreign policy. However, like the U.S. steel industry, domestic textiles are declining -- 124 plants closed or made extensive layoffs last year.

Source: Franklin Foer, "Fabric Softener," New Republic, March 4 and 11, 2002.

For more on Tariffs and Other Trade Barriers
http://www.ncpa.org/iss/tra
12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
601 Pennsylvania Ave. NW, Suite 900 South Building - Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
Copyright © 2002 National Center for Policy Analysis - All rights reserved.