AAFA gives warning of threat to trade with Pakistan
The American Apparel and Footwear Association (AAFA) has said that US companies could stop placing orders in Pakistan unless the US and Pakistan governments act quickly to ensure trade can continue with the country during the current situation. Pakistan is the fourth-largest supplier of apparel and textiles to the US with exports amounting to $1.9 billion each year.
The AAFA, which represents around 700 US apparel and footwear companies, has asked the US government that duty on goods from Pakistan be reduced or eliminated, quotas be abolished and customs be streamlined to stop delays. The organisation also urges the Pakistan government to insure goods while in Pakistan, guarantee the safety of US personnel stationed in the country and to stop subsidising the industry, a practice which the AAFA claims distorts the market and makes it more difficult for US firms to do business there.
AAFA president Kevin Burke said "Currently the perceived risks of doing business in Pakistan outweigh the perceived benefits." He added that the actions recommended by the AAFA should take place: "literally within days and weeks – in order that companies will not lose revenues immediately on goods currently in play and that US companies will continue to place orders in Pakistan."