Garment cos call for FTAs with EU, UK, US, Australia
Readymade garments exporters have asked the government to expedite free trade agreements with high potential markets such as the EU, the UK, the US, Australia and Canada which could lead to exports doubling in three yearsâ€™ time.
The Apparel Export Promotion Council (AEPC) has urged the Centre to expedite free trade agreements (FTA) with high potential markets such as the European Union, UK, US, Australia and Canada which could lead to exports doubling in three years’ time.
AEPC chairman, A Sakthivel said that Indiaâ€™s principal export markets, including the US, the UK and Europe, were badly impacted due to the pandemic. Seeking a review of India’s trade pacts with these countries, Sakthivel pointed out the recently, Vietnam, too, concluded a FTA with the EU and most competitors were leveraging such FTAs in a big way to enhance their cost competitiveness. An important area that can supplement your efforts in this direction is improving export competitiveness through a comprehensive review of Indiaâ€™s trade agreements, through a fast-tracked mechanism, with EU, UK, US, Australia and Canada.
Also read: Euratex presents Covid-19 recovery strategy for textile
The Council pointed out that Indian apparel exports have a duty disadvantage of 9.6 per cent in the EU market as compared to competitors like Bangladesh, Cambodia, Sri Lanka and Pakistan. Most of these countries get duty concessions under schemes such as Generalised System of Preferences.
Also read: Planning for revival in textile industry
“There is an urgent need to have a level playing field in terms of market access and margin of preference in our biggest global market and to rectify the distortion that we are suffering,” Sakthivel said.
An FTA with the US, which has a 27 per cent share in Indiaâ€™s total garments exports, may have a significant impact on Indiaâ€™s apparel exports to the country as on certain items like MMF-based apparel, which India is promoting, there is a peak tariff of 28 per cent. The council also sought CEPA with Canada and Australia.