Apparel Online Bangladesh Magazine May'17 | Page 34

BEYOND BD APPAREL RESOURCES NEWSLETTERS FACEBOOK FRIENDS To subscribe, send us an email at [email protected] Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ Pakistan gets GSP Plus status European Union, which has been an important trading bloc for Pakistan, has given Generalised Scheme of Preferences (GSP) Plus status to the country till 2023. This will allow Pakistan to boost its exports to the region. The EU accounted for 12.8 per cent of Pakistan’s total trade in 2015 and absorbed 23.7 per cent of Pakistan’s exports. More than 80 per cent of Pakistan’s exports to the EU consist of textile and clothing. Pakistan’s imports from the bloc mainly consist of machinery and transport equipment as well as chemicals. “Almost 72 per cent of Pakistan’s exports to the EU go to the UK, Germany, Spain, the Netherlands and Italy,” informed Lahore Chamber of Commerce and Industry (LCCI) President Abdul Basit. Pakistan is mulling opportunities of market penetration in other countries like Greece, Slovenia and Ireland. The enhanced trade preferences under GSP Plus are of particular importance to Pakistan’s textile and clothing industry. Vietnam to benefit from RCEP membership According to Vu Duc Giang, Chairman of Vietnam Textile and Apparel Association (VITAS), Vietnam is negotiating for the Regional Comprehensive Economic Partnership (RCEP), which may bring innumerable benefits to the country’s garment and textile sector in terms of cost, market scale, and supply of materials. The local Bao Cong Thuong (Industry and Trade News) online newspaper quoted Giang as remarking that the RCEP membership will be a huge boost for Vietnamese garment and textile industry as the country will not have to bear many trade barriers. The RCEP covers 16 countries, including 10 members of the Association of the Southeast Asian Nations and their regional trading partners of India, Japan, China, South Korea, Australia and New Zealand. Giang predicts that the garment and textile exports from Vietnam would experience a growth of 13-14 per cent in 2017, compared to 9.2 per cent in 2016. He, however, adds that the deeper the integration is, the fiercer the competition will be, and thereby urges local companies to enhance management to ensure providing products with more competitive price, excellent quality and shorter delivery time. 34 Apparel Online Bangladesh | MAY 2017 | www.apparelresources.com Indian apparel exporters divided on FTA with UK/EU Indian textile and apparel industry has been for a long time looking to have a Free Trade Agreement (FTA) with the EU, but now after Brexit it is being said that India should prefer to have FTA with the UK because discussion with the EU is taking a lot of time. Negotiations have now started with the UK and the deal will take effect when the island nation exits the EU. Britain will work for a “future FTA” with India, one of its key investment and trading partners, British Chancellor of the exchequer Philip Hammond said after a three-and-a-half-hour marathon meeting with Indian Finance Minister Arun Jaitley. He was addressing the 9th India-UK Economic & Financial Dialogue in New Delhi. Apparel Resources talked to various Indian apparel exporters regarding this and most of them prefer to have FTA with the UK as things are not moving with the US. However, few exporters still prefer to have things finalized with the EU… Sudhir Dhingra, CMD, Orient Craft, Gurgaon (Haryana) says, “In today’s world where Brexit is happening and Trump is in the power in the US, India has a great opportunity to negotiate beneficial trade agreements on bilateral basis, with all our importing partners particularly in UK, US and Europe. These countries need India to sell their merchandise and gain market share in Indian market, which must be used as a tool to the advantage of Indian garment industry. This is the only way Indian garment industry will grow and millions of jobs created, which India is in dire need of.” Arun Jain, Director of Jain Shawls, Ludhiana (Punjab) shares: “India should avoid this agreement with the UK as it will affect our relations with the EU. India should only concentrate on the EU, and put more efforts to do these kinds of agreements as it is a more potential market for us.” Ramesh Verma, President, Diamond Exports, Panipat (Harya