Pakistan Alarmed by EU-India FTA: Exporters Warn of Vanishing Textile Advantage
World
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Moneycontrol•30-01-2026, 13:23
Pakistan Alarmed by EU-India FTA: Exporters Warn of Vanishing Textile Advantage
- •Pakistan is reviewing the implications of the newly signed EU-India Free Trade Agreement (FTA), fearing it will erode its competitive edge in the European market.
- •The EU-India FTA grants Indian exporters tariff-free access to the EU, potentially neutralizing Pakistan's long-standing advantage under the EU’s GSP+ scheme.
- •Pakistani textile exporters, including APTMA, warn that India's duty-free access on 100% of its textile and apparel tariff lines fundamentally changes the competitive dynamic.
- •Concerns are heightened by Pakistan's higher domestic production costs, particularly electricity tariffs, which are 25-30% higher than regional competitors.
- •Former commerce minister Gohar Ejaz warned that $9 billion in exports to the EU and 10 million jobs are at risk, urging urgent action to cut costs and restore competitiveness.
Why It Matters: Pakistan fears significant economic fallout from the EU-India FTA, especially for its textile exports.
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