APTMA Warns of Textile Export Collapse; Seeks Duty-Free US Access for American Cotton Products. -

Pakistan’s textile industry is facing a critical turning point as regional competitors gain a significant edge in global markets. On February 11, 2026, the All Pakistan Textile Mills Association (APTMA) formally urged the Federal Minister for Commerce, Jam Kamal Khan, to secure preferential trade terms with the United States to prevent a “serious and immediate threat” to the sector’s survival.

The Growing Competitive Gap

APTMA highlighted that recent trade deals secured by regional rivals have placed Pakistani exporters at a severe disadvantage:

India’s Edge: India has negotiated a 18% tariff with the US (compared to Pakistan’s 19%) and recently concluded a Free Trade Agreement (FTA) with the European Union.
Bangladesh’s Advantage: Bangladesh has secured zero-tariff access to the US market for garments and made-ups specifically manufactured using American cotton.
The Cost Crisis: Pakistani mills are already struggling with the region’s highest energy and input costs, elevated interest rates, and heavy taxation, making it nearly impossible to compete on price.

APTMA’s Proposed “Win-Win” Solution

To counter this, the association has proposed a reciprocal trade arrangement with the United States:

Duty-Free Entry: Pakistan should seek duty-free access for textile products made using U.S. cotton.
Mutual Benefit: Such a deal would support Pakistan’s export growth while simultaneously increasing the sales of American cotton to Pakistan.
Diplomatic Push: APTMA has already approached the American Embassy with this proposal and is urging the government to initiate formal high-level diplomatic negotiations.