Donald Trump and Pakistan News: The historic trade deal between India and the US and the agreement with the European Union (EU) have deprived Pakistan of sleep. The major reduction in tariffs on Indian products by US President Donald Trump has cast a shadow over Pakistan’s export sector, especially the textile industry.
Pakistani experts worry: India’s dominance in the global market will increase
Ehsanul Haque, chairman of Pakistan’s ‘Cotton Ginners Forum’, has warned that if the Pakistani government does not bring immediate policies for the cotton and textile industry, there will be a huge decline in exports. Due to the Free Trade Agreement (FTA) between India and the European Union, import duty on Indian products has become zero, while the US has also reduced tariffs on Indian goods to the range of 18-25%. In comparison, Pakistani products are still facing a 19% tariff in the US, due to which India will be ahead in price competition.
‘Mother of All Deals’ to Double India’s Exports
The deal between India and the European Union is being called the ‘Mother of All Deals’. According to Union Minister Piyush Goyal, 99% of India’s exports will get duty-free entry into the European Union from the first day of implementation of this agreement. This is likely to double India’s exports in the next five years. India is already in a trade surplus with Europe, which will now become stronger.
Pakistan’s demand: Reduce production costs
Pakistani industrialists have demanded from the government that production costs in the country be brought to the level of neighboring countries (India). There has also been a demand to declare long-pending refunds or adjust them against super tax liability. If the government delays in bringing policies, the cost difference at the regional level will increase and Pakistan may lose its market at the international level.
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