ITF ini­tia­tive, Re­port on Com­pe­ti­tion Anal­y­sis and Way For­ward for FTAs

Apparel Online - - Industry Live -

Free Trade Agree­ments (FTAs) with core mar­kets is a long pend­ing de­mand of the ap­parel ex­porters in the coun­try and var­i­ous as­so­ci­a­tions are putting their ef­forts for the same. The In­dian Tex­preneurs Fed­er­a­tion (ITF), a lead­ing tex­tile en­trepreneurs’ as­so­ci­a­tion has come for­ward with a re­port on Com­pe­ti­tion Anal­y­sis and Way For­ward for FTAs. ITF re­cently or­gan­ised an event in Coim­bat­ore to put forth this re­port. Ke­shav Chan­dra, Joint Sec­re­tary, Union Min­istry of Com­merce & In­dus­try and Aditi Das Rout, Trade Ad­vi­sor, Union Min­istry of Tex­tiles were the chief guests and guest of hon­our at the event, re­spec­tively.

In­ter­na­tional trade firm, GNBC, Mum­bai helped in cre­at­ing the re­port, that marked out var­i­ous chal­lenges and ob­sta­cles faced by the ex­port sec­tor and the way to move for­ward. ITF elab­o­rated that In­dia’s ex­ports of cloth­ing and tex­tile de­clined sig­nif­i­cantly last year. The as­so­ci­a­tion urged the Govern­ment and stake­hold­ers to se­ri­ously look into this down­fall. The de­cline was due to dif­fer­ent known and un­known rea­sons like in­fra­struc­ture, high trans­ac­tion costs and oth­ers. It is im­por­tant to men­tion here that the na­tion’s ex­port of cloth­ing and tex­tile cov­ered by chap­ters 61, 62 and 63 wit­nessed a dip of 23.21 per cent, 31.64 per cent and 18.99 per cent, re­spec­tively dur­ing the pre­vi­ous year. There are var­i­ous FTAs across the world, due to which FTA mem­ber coun­tries en­joy tar­iff ad­van­tages and not ev­ery­one is aware of this fact, which is why a study was un­der­taken to un­der­stand where the coun­try’s tex­tile and cloth­ing in­dus­try faces dif­fi­cul­ties and how this can be over­come. The ITF re­port also men­tioned the non-tar­iff bar­ri­ers em­ployed in this sec­tor and its im­pact on the trade. Re­port­edly, the con­tri­bu­tion of the top 20 ex­port­ing coun­tries is over 85 per cent of the en­tire World Ex­ports. Though In­dia finds a place in the top 10 of the same, its con­tri­bu­tion is less com­pared to its neigh­bour­ing coun­tries like Viet­nam and Bangladesh. The ma­jor con­trib­u­tors and In­dia’s com­peti­tors are China, Bangladesh, Viet­nam, Cam­bo­dia, Pak­istan and Turkey. Bangladesh and Cam­bo­dia, be­ing LDCs (Less De­vel­oped Coun­tries) have tar­iff ad­van­tage in De­vel­oped and De­vel­op­ing coun­tries due to Duty-Free-Quo­taFree Treat­ment pro­vided to them. It is also be­ing re­ported that In­dia has tar­iff dis­ad­van­tage rang­ing in be­tween 1 per cent to 40 per cent in al­most all top im­port­ing coun­tries such as US, EU, Canada, China, Aus­tralia, Switzer­land, GCC Coun­tries, Israel and Chile.

Ke­shav Chan­dra (fourth from left), Joint Sec­re­tary, Min­istry of Com­merce and In­dus­try, and Aditi Das Rout (third from right), Trade Ad­vi­sor, Union Min­istry of Tex­tiles along with ITF team, re­leas­ing the re­port

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