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WASHINGTON (October 5, 2001) - The Pakistani Government is seeking a temporary suspension of apparel and textile tariffs and quotas in return for its support in the fight against terrorism.

Pakistan's Commerce Minister Abdul Razaq Dawood told a delegation of apparel and textile retailers, importers, manufacturers and trade associations Thursday that he has asked the Bush Administration for those concessions.

Dawood is seeking temporary suspension of tariffs and quotas through 2004 and hopes to have an answer in the next few weeks, he said in an interview after the meeting. Addressing a group of about 50 executives and industry representatives at the Pakistani Embassy, Dawood used the forum to allay fears about instability in his country, shipping delays and security.

Executives from The Warnaco Group, Kmart, Federated Department Stores and most of the major lobbying/trade associations took part in Thursday's meeting with the minister. The biggest surprise attendee was Michael Hutchinson, acting chair of the Committee for the Implementation of Textile Agreements, who normally works behind the scenes to carry out trade policy.

"We have emphasized the urgency of the situation," Dawood said. "Pakistan has come out very strongly in support of the U.S. and we are having at this moment some problems -- nothing substantial -- but if the U.S. government wants to continue a long-term economic relationship with Pakistan, the best way to get that is through [temporarily suspending] tariffs and quotas."

Under the Uruguay Round of global trade talks, quotas will be phased out by Dec. 31, 2004. "When the quotas are gone, we can discuss the overall long-term issues and the way the U.S. wants to do it," he said.

Dawood has spent the past week meeting with high-level officials, including Donald Evans, secretary of commerce, Robert Zoellick, U.S. trade representative, and Alan P. Larson, undersecretary of state for economic, business and agricultural affairs.

The ultimate decision on concessions to Pakistan will, of course, be made by the Bush Administration, but many agencies such as the Department of Commerce, Office of the U.S. Trade Representative and State Department, are gathering information to make a final recommendation to the President.

"Textiles are Pakistan's biggest export product," said Dawood. "We have a textile vision for 2005 and we are looking at how to make the industry internationally competitive."

The apparel and textile industry in Pakistan employs 2.5 million people. The country is the number-one supplier to the U.S. of cotton yarn imports, cotton fabric and cotton home furnishings, according to Commerce Department figures. The total annual value of Pakistan's textile and apparel exports to the U.S. is $1.9 billion, which makes it the fourth-largest supplier.

Importers, manufacturers and retailers have called on the Bush Administration to offer short- and long-term concessions to companies sourcing in Pakistan and other countries in the region as the U.S. continues its military buildup in the wake of the nation's worst terrorist attacks on Sept. 11.

Among the concerns they raised with the Pakistani minister were shipping delays of up to 10 days, war risk premiums of up to $300 per load and negative anti-American media images in Pakistan.

"We produce 12,000 dozen units a week in Pakistan and we are having serious problems with airlift capacity," said Michael Gale, in-house lobbyist for Warnaco. "We hope Pakistan and the U.S. government can resolve this problem in weeks, not months," he said, noting that all U.S. companies are currently making buying decisions on spring and summer merchandise.

Gale said it normally takes four days to ship an order from Pakistan to the U.S. but it is currently taking 11-15 days. Undersecretary Larson assured the group that steps are being taken quickly to address shipping problems.

"I think that the primary issue that has been raised with me with the greatest urgency is the issue of transportation," Larson said. "I am becoming increasingly confident every hour I work on this, that it is something that is very susceptible to a fairly quick resolution and that is what we are focusing on the hardest."

Larson told the group that some air carriers delivering humanitarian aid and other suppliers are leaving Pakistan empty and could likely be used to transport apparel and textiles back to the U.S.

He also noted that he held discussions with two U.S. airline industry associations Wednesday and informed their members about the opportunities.

"It's not the business of the U.S. government, typically, to be a matchmaker but this is a situation where everyone understands there is some alarm. Still, Larson, in an interview before the meeting, made it clear that he, at least, is not focused on long-term concessions such as quota elimination or tariff reductions. Dawood assured the delegation that the four main ports in Pakistan are some 2,000 kilometers from the border with Afghanistan.

Many executives were also concerned about anti-American sentiments in Pakistan that have been portrayed on television and in newspapers around the world. "What can be done to make consumers know that it is patriotic to buy goods made in Pakistan, especially when they are seeing people there burn the American Flag?" asked one executive.

An executive who works for a company acting as middleman between Pakistani factories and U.S. retailers and placing orders in Pakistan for retailers such as Abercrombie & Fitch, said one company had recently canceled a $1 million order.

She and others said it is very important to publish an open letter in U.S. papers stating that it is important for retailers and consumers to support Pakistan.

"Consumers will make the ultimate decisions," she said. "They will predict where the product is sourced and everyone will be affected