Lighten War’s Toll on Pakistan

The United States must nurture and strengthen its global alliance against terrorism and ensure that this force endures for the long struggle ahead.

We have achieved a great deal in a short time, in part by making it clear that the U.S. will support those joining the cause. The economic stability of these countries is important to U.S. strategy.

We have demonstrated our flexibility in adjusting existing policies to account for new demands. As secretary of Defense, I strongly supported imposing economic sanctions on India and Pakistan after their 1998 nuclear tests. I also believe, however, that the quick lifting of these sanctions in the aftermath of Sept. 11 was the right thing to do.

We must examine other policies with the same eye. Benefits awarded to those who share our commitment to the war against terrorism must not be offset by costs imposed on those same countries because they are on the front lines.

Pakistan is the best case in point. Textiles are more than 60% of Pakistan’s exports. Pakistan’s capacity to produce textiles has remained intact despite the disruptions caused by the country’s courageous support for the U.S. and despite its front-line geography.

But its export of these goods has dropped by more than 40% since Sept. 11, in part because of canceled flights in and out of Pakistan, hikes in freight and insurance charges and lost orders from the United States and Europe, where businesses perceive a riskier trading environment.

Pakistan stands to lose $2 billion in this fiscal year alone because of a drop in foreign trade--serious for a country with an economic output of $60 billion. It amounts to a kind of terror tax that will weigh most heavily on those who can least afford it.

The health of export industries is critical to the well-being of millions of Pakistanis. Their welfare, in turn, is crucial to the stability of the government in Pakistan. More broadly, their welfare and that of people like them throughout the developing world is surely the strongest bulwark against violent extremism, which thrives on poverty, despair and disenfranchisement.

Moderates must have something to show for their moderation. A courageous government must have something to show for its courage. Citizens of a country taking immense risks on behalf of the international alliance against terrorism must see that the alliance will stand with them too.

What could be more damaging to the cause the U.S. shares with like-minded governments throughout the world than to have the countries most at risk for their support of the United States suffer this terror tax as well?

What can we do about it? The administration as well as key members of Congress are reviewing trade relationships with supportive states in the war against terrorism. Those reviews should be accelerated.

The European Union has announced the removal of tariffs on clothing exports from Pakistan and is taking steps to allow more textile and clothing imports from that country into EU marketplaces. The U.S. should follow the EU’s example.

Just as there is no treasury large enough to compensate all those in the United States who have suffered terrible losses from the events of Sept. 11, so too it is impossible to fully compensate friendly countries for the losses they may sustain in the months and years of the campaign against terrorism.

But we should try to alleviate the suffering these countries face as a result of their cooperation with us. Where adjustments in U.S. policies could make a real difference, we can and should make the necessary changes.