Access to US markets delayed by one year
ISLAMABAD:
The project of providing Pakistani products access to markets in the United States via the construction of Reconstruction Opportunity Zones (ROZs) has been delayed for one year.
Sources said that the US Senate has expressed reservations over the construction of these zones and delayed approval for a year, pending the introduction of stricter labour laws.
The Senate has instructed the concerned authorities to implement stringent labour laws in these zones to ensure that trained labour is used to manufacture products. Authorities have also been directed to make sure that child labour is not used in these zones.
It is estimated that the US offers a $100 billion market for the goods manufactured in the rest of the world. According to the agreement signed between the two countries, Pakistan has been promised a big share in this market for goods originating from ROZs. The import of these products will be completely duty-free.
Sources explained that the US has given 130 countries of the world, including Pakistan, access to its market via the General Preference System (GPS). The GPS, however, does not include Pakistani textile products.
Pakistan and the US had reached an agreement that labour laws applicable to the GPS will also apply to the ROZs.
It has been learnt that since amendments are being made to the GPS, the US has informed Pakistan that access for products made in ROZs on zero-duty to US markets has been delayed by one year.
In the first phase, five ROZs will be established, two in Khyber-Pakhtunkhwa, two in Balochistan and one in Azad Jammu and Kashmir.
Published in The Express Tribune, August 1st, 2010.
The project of providing Pakistani products access to markets in the United States via the construction of Reconstruction Opportunity Zones (ROZs) has been delayed for one year.
Sources said that the US Senate has expressed reservations over the construction of these zones and delayed approval for a year, pending the introduction of stricter labour laws.
The Senate has instructed the concerned authorities to implement stringent labour laws in these zones to ensure that trained labour is used to manufacture products. Authorities have also been directed to make sure that child labour is not used in these zones.
It is estimated that the US offers a $100 billion market for the goods manufactured in the rest of the world. According to the agreement signed between the two countries, Pakistan has been promised a big share in this market for goods originating from ROZs. The import of these products will be completely duty-free.
Sources explained that the US has given 130 countries of the world, including Pakistan, access to its market via the General Preference System (GPS). The GPS, however, does not include Pakistani textile products.
Pakistan and the US had reached an agreement that labour laws applicable to the GPS will also apply to the ROZs.
It has been learnt that since amendments are being made to the GPS, the US has informed Pakistan that access for products made in ROZs on zero-duty to US markets has been delayed by one year.
In the first phase, five ROZs will be established, two in Khyber-Pakhtunkhwa, two in Balochistan and one in Azad Jammu and Kashmir.
Published in The Express Tribune, August 1st, 2010.