Ready-Made Garments Sector Gets a Breather Amid EU’s Tariff Suspension
- The Indian Ready-Made Garment Sector continues to enjoy 20% tariff preference for the next three years from 2017-19
- With China being removed from the list of beneficiaries; the Indian Products with duty preference will definitively have an edge in the European market.
- The exports to EU in RMG sector from India is 36% of the total exports of RMG
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 removal of this tariff preference. Section 11 (b) of the EU GSP provides for trade preferences for the Ready-Made Garments sector. 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.
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. China has been removed from the list of beneficiaries.
Mr. Ashok G Rajani, Chairman AEPC said that, “Our endeavor now is signing of FTA with EU as early as possible.”