November 18, 2020
1 min read

Apparel Exporters Seek Special Pre FTA Deal With UK

Apparel Export Promotion Council (AEPC) Chairman A. Sakthivel, has urged the government to strike a pre-FTA preferential trade deal to remove the tariff disadvantage faced by Indian apparels in the UK.

In a letter to Commerce and Industry Minister Piyush Goyal, the APEC Chairman wrote: “It has been learnt that after the implementation of Brexit in January 2021, 47 Least Developed Countries (LDCs), including Bangladesh will continue to enjoy preferential trade benefits after the UK’s departure from the EU. This will be a continuation of the disadvantage to Indian apparels in the important and potential market of the UK.”

Noting that India has been losing out to its competitors in the UK, the industry body has requested the government to initiate discussions for an early trade pact for apparels in the run-up to FTA.

The AEPC had earlier requested to fast-track the negotiations to enter into a Free Trade Agreement (FTA) with the UK to boost apparel exports.

The Chairman said that the apparel exports to the UK, which is India’s third largest export destination after the US and the UAE, have been facing a tariff disadvantage of 9.6 per cent as against countries like Bangladesh due to the EU’s Generalised Scheme of Preferences (GSP), which the UK plans to continue offering to the 47 LDCs.

“It’s not a matter of LDCs. The point is that Bangladesh is equally competitive now and their exports have grown at 11.7 per cent CAGR during 2009-18, when our exports stagnated at 0.5 per cent,” he said.

Sakthivel added that Bangladesh exported apparels worth $40.4 billion whereas India exported apparels worth $16.5 billion in 2019.

“It’s a labour intensive sector and we need to ask for a special consideration in our bilateral relations with the UK.”

According to the exporters’ body, India’s readymade garments exports to the UK fell 0.8 per cent to $1,606 million in 2019 from $1,619 million in 2018, reducing the UK’s share in India’s exports to 9.7 per cent from 10.3 per cent.

Also Read: Biden Team Seeks Better Ties With India

Also Read: Indian Banks’ NPLs near FY14 levels: Report

Previous Story

MediaTek Acquires Intel’s Power Management Chip Wing

Next Story

Vaccine is side effect free: Pfizer

Latest from Business

RBI Holds Rates, Boosts Outlook

One of the most significant announcements was the upward revision of India’s GDP growth forecast for FY 2025–26—from 6.5% to 6.8% In a move reflecting cautious optimism, the Reserve Bank of India

Nykaa Expands Global Footprint with UK Debut

To commemorate this significant global debut, Nykaa’s leadership hosted an exclusive soiree at the George Club in Mayfair, London Nykaa, India’s leading beauty and lifestyle destination, is set to make a grand

Nothing’s CMF Goes Indian with $100M JV

Company has announced a $100 million joint venture with Indian electronics manufacturer Optiemus Infracom Limited….reports Asian Lite News Smartphone maker Nothing has spun off its budget sub-brand CMF into an independent subsidiary,

Airbnb Boosts India Economy

Among international guests, the largest inbound sources were the United States, United Kingdom, Canada, and Australia Hospitality giant Airbnb made a significant impact on India’s economy in 2024, contributing Rs 113 billion

Rupee, Markets Gain Amid Trade Optimism

Emerging market currencies, including the rupee, have gained support amid softening in the dollar. Reports suggesting that the US economy is on the verge of a recession have contributed to the greenback’s
Go toTop