READY-MADE GARMENTS SECTOR GETS A BREATHER AMID EU’S TARIFF SUSPENSION

By Swarnali Goswami (TNI Kolkata) ~ Edited By R. Subrata (TNI Siliguri)

Webdesk, TNI Kolkata, 17th March, 2016: The European Union recently announced its scheme of generalized tariff preferences for the next three years from 2017-19. Indian Ready Made Garments sector continues to enjoy its position of being a beneficiary under the current scheme which has affected the textile sector through the removal of this tariff preference. The removal of textile sector comes in the wake of export of more than the allotted 14.5% of the threshold. AEPC, the apex body of apparel exporters expressed its happiness at the continuation of the 20% tariff preference to Indian imports. The move is of significance since China has been removed from the list of beneficiaries. With EU being one of the biggest markets for Indian RMG products; the tariff preference news is a big relief to Indian exporters. With China’s absence in the preference list; Indian products will gain a new edge in new markets and an upsurge is expected in the trade growth. Section 11 (b) of the EU GSP provides for trade preferences for the Ready-Made Garments sector. In the recent suspension spree undertaken by the European Union, the sector escaped narrowly whereas the Indian textile sector mentioned u/s 11 (a) bore the brunt. As of now the trade preferences which India enjoys with the EU under the Generalized Scheme of Preferences was coming to an end on December 31, 2016, has been extended for a period of three years from 2017-19. Under this extension, India’s RMG sector will continue to get 20% tariff preference on exports to EU for three consecutive years. RMG sector will be highly benefited from this extension of trade preferences. Also, with the on-going talks of FTA between India and EU, the extension news is a positive sign and they are hopeful that the talks will materialize soon. Mr. Ashok G Rajani, Chairman AEPC said that “Our endeavor now is signing of FTA with EU as early as possible.”

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