Independent research & practical ideas for global prosperity

Getting Real on Trade with Pakistan: Duty-Free Market Access as Development Policy - Working Paper 241

Kimberly Ann Elliott, assisted by Caroline Decker

02/11/2011

The combination of relatively high American barriers to trade in textiles and apparel and the importance of the sector to the Pakistani economy make increased market access a potentially powerful tool of U.S. policy. Unfortunately, recent proposals to extend duty-free market access for Pakistani exports restrict the product and geographic coverage so severely that they would be meaningless in practice.

Related Content

CGD Note: Stimulating Pakistani Exports and Job Creation

CGD Brief: The Challenge of Aid in Pakistan: Is Cash on Delivery Part of the Solution?

Moreover, the analysis in this paper suggests that the concerns about job loss in the U.S. textile industry from broader coverage are exaggerated. A serious trade package for Pakistan would expand the geographic coverage to allow duty-free imports from all of Pakistan, expand the product coverage for clothing, and cover all other Pakistani exports as well.

Preview