Identifier
Created
Classification
Origin
07ISLAMABAD2980
2007-07-10 01:29:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Islamabad
Cable title:  

PAKISTAN RAISES CONCERNS OVER PROPOSED ROZ LEGISLATION

Tags:  EAID ECON EIND ELAB ETRD PK 
pdf how-to read a cable
VZCZCXRO7537
RR RUEHDBU RUEHLH RUEHPW
DE RUEHIL #2980 1910129
ZNR UUUUU ZZH
R 100129Z JUL 07
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC 0315
INFO RUEHKP/AMCONSUL KARACHI 6638
RUEHLH/AMCONSUL LAHORE 2814
RUEHPW/AMCONSUL PESHAWAR 1232
RUEHAH/AMEMBASSY ASHGABAT 2711
RUEHTA/AMEMBASSY ASTANA 0247
RUEHEK/AMEMBASSY BISHKEK 4301
RUEHLM/AMEMBASSY COLOMBO 1405
RUEHKA/AMEMBASSY DHAKA 2171
RUEHDBU/AMEMBASSY DUSHANBE
RUEHBUL/AMEMBASSY KABUL 7296
RUEHKT/AMEMBASSY KATHMANDU 8578
RUEHNE/AMEMBASSY NEW DELHI 1319
RUEHNT/AMEMBASSY TASHKENT 3456
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS ISLAMABAD 002980 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB/TPP/BTA/ANA MBGOODMAN
USTR FOR DHARTWICK
USAID FOR ANE MWARD

E.O. 12958: N/A
TAGS: EAID ECON EIND ELAB ETRD PK
SUBJECT: PAKISTAN RAISES CONCERNS OVER PROPOSED ROZ LEGISLATION

UNCLAS ISLAMABAD 002980

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB/TPP/BTA/ANA MBGOODMAN
USTR FOR DHARTWICK
USAID FOR ANE MWARD

E.O. 12958: N/A
TAGS: EAID ECON EIND ELAB ETRD PK
SUBJECT: PAKISTAN RAISES CONCERNS OVER PROPOSED ROZ LEGISLATION


1. (SBU) Summary: On July 9, EconCouns met with Jamshid Khan,
Joint Secretary and Raheela Tajwar, Deputy Secretary in the Ministry
of Commerce in the Ministry of Commerce to discuss Pakistan's
concerns over proposed ROZ legislation. Some concerns were resolved
by discussing the wording in the document; however, the textile
issue continues to be raised by Pakistan. End Summary.


2. (SBU) On July 9, EconCouns met with Jamshid Khan and Raheela
Tajwar from the Ministry of Commerce to discuss the proposed ROZ
legislation. Khan was concerned about eligibility requirements
mentioned in the document, as well as designations. EconCouns
pointed to the language in the document under "Eligibility" that
states, "... or are making continual progress toward
establishing..." to reassure Khan that Pakistan did not have to have
all legislation in place before the ROZs could be established.
Similarly, EconCouns highlighted the wording, "...could take the
following into account..." under the "Designation" section to ease
concerns over which areas in Pakistan would qualify for ROZ
designation.


3. (SBU) Textile limitations continued to be a big concern to Khan
and Tajwar, specifically categories 338 and 339 (Knit Shirts and
Blouses). Tajwar pointed out only five to six of the 50 items in
those categories were permitted to be exported under the ROZ
agreement. Khan stated that Pakistan's expertise was in textile
production, and that if textile manufacturers were not permitted a
greater range of exports, they would not relocate to a ROZ because
the cost would not be worth the benefit, and the ROZ concept would
not be successful. Khan pointed out the idea of the ROZ is to
combat terrorism, so the legislation should not be focused on things
such as rules of origin. He stated that the MOU Pakistan has with
China would keep Chinese textiles out of the ROZs.


4. (SBU) Comment: As expected, the textile issue has raised its
head once again. While the Pakistanis state they understand the
political sensitivities involved with this issue in the U.S., they
are still insistent that a broader range of textiles be permitted in
the ROZs. Post has emphasized the need for a broad range of
non-textile products to be included to encourage expansion of
businesses already operating in the FATA and other potential ROZ
locations. End Comment.

Patterson