EDITORIAL

It is intriguing to learn, from a newspaper report, that a large number of export consignments of textile goods could not be airlifted to the United States, by failing to meet the deadline of December 31, 2004, which had been lately fixed by the Export Promotion Bureau (EPB) to facilitate them, as a special gesture.
This has been attributed, strangely enough, to roadblocks raised on the eve of the New Year, thus, hampering smooth flow of traffic. This is stated to have caused long delays in trucks loaded with containers in reaching Quaid-e-Azam International Airport terminal. It has been pointed out that EPB, through public notice issued on December 23, had fixed this deadline to help exporters of those categories, which came under US Customs, availing of the freight subsidy. It has been also recalled that in absence of reconciliation of quotas by the EPB, a large number of exporters were still holding valid quotas in their Category Passbooks (CPB). But the US customs, in the middle of November 2004, had to impose embargo due to over shipments in most of the fast running categories.
Moreover, following hue and cry from exporters because of prolonged indecision by EPB, on the intervention of Ministry of Commerce, it was eventually decided that exporters who could not avail of their quotas would be given airfreight subsidy for shipments made between January 1 and 20, 2005. However, the exporters, for reasons not specified, are reported to have requested the Ministry of Commerce to extend the date for another couple of days, which had been turned down. In the meantime, City Government, seemingly, in its bid to guard against any untoward incident, besides taking other necessary measures on the New Year eve, erected barricades, which hampered the smooth flow of vehicular traffic, particularly of heavy and loaded trucks with containers.
This has been stated the reason a large number of export consignments could not reach before mid-night of December 31, 2004, and EPB officials debarred all such loads from being cleared and accepted for airlifting. Reference, in this regard, has also been made to a complaint voiced by the Chairman, Pakistan Hosiery Manufacturers Association, that export goods worth millions of dollars could not be exported because of EPB officials not taking a prudent decision of allowing even containers, which had entered the airport premises.
As a result of this, he is reported to have pointed out, exporters alone would not suffer, but it will also cost the national exchequer too. Whatever the actual cause of this evidently sordid development, it will serve as a sad commentary on the manner in which even issues of such a vital importance are usually dealt with. More so, because the occasion has coincided with the end of the textile quota, which has its own importance for Pakistan, that figures prominently among the world's textile exporting countries. It will be recalled that, lauding the Textiles Monitoring Body (TMB), at its last meeting, in December, WTO Director General, elaborated upon its satisfactory performance, made a pointed reference to the prospects following 1 January 2005, when the Agreement on Textiles and Clothing (ATC) and all restrictions thereunder were seen as standing terminated, thereby, marking a milestone in development of international trade relations, by putting an end to a special, and discriminatory regime, lasting over 40 years. With full and timely implementation of the ATC, he said, trade in textile and clothing products would cease to be subject to this regime, qualifying for governance, instead, by the general rules of the multilateral trading system. Hence the completion of the integration process under the ATC would not only contribute to increasing trading opportunities, but also to be of major systemic importance.
For as he convincingly explained, ATC had been part of the broader package of the outcome of the Uruguay Round. It has often been said that this broader package represents a very delicate balance among its constituting elements. According to him, ATC has been perceived by several members, in particular, by exporting developing countries and territories, as one of the most important results, if not the most important for them. It will be noted that he rightly observed there had hardly been any Ministerial Conference of the WTO when matters relating to the implementation of the ATC did not prop up. More to it, he recalled that, on several occasions, different aspects of ATC implementation were raised in various WTO fora, in particular, in the General Council and in the Council for Trade in Goods. Again, referring to recent reaffirmation of their commitment to the full and timely implementation of the Agreement, he said it proved also the ability of the WTO system to "deliver" according to the established schedule, contributing thereby to further strengthening the solidity and credibility of the multilateral trading system.
All in all, the elimination of the trade-distorting quantitative restrictions that were still in place were seen as being beneficial for the global economy in terms of increased market access opportunities, efficiency gains and consumer welfare. Viewed in this perspective, unfortunate it will appear to be the textile quota quandary over this unwelcome incident.