Latest News | FTA Between India, Australia Can Significantly Boost Apparel Exports: AEPC
Get latest articles and stories on Latest News at LatestLY. Apparel exporters body AEPC on Monday asked the government for early conclusion of the proposed free-trade agreement (FTA) between India and Australia as it can significantly boost shipment to that country.
New Delhi Jun 1 (PTI) Apparel exporters body AEPC on Monday asked the government for early conclusion of the proposed free-trade agreement (FTA) between India and Australia as it can significantly boost shipment to that country.
In a letter to Prime Minister Narendra Modi, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that as per their estimates, India can increase additional exports of USD 500 million in the next three years, if the agreement with Australia is concluded.
"As Prime Ministers of India and Australia get ready to hold their first virtual bilateral summit on June 4, the Indian apparel exporters have requested for an early FTA, officially dubbed as the Comprehensive Economic Partnership Agreement as it would more than triple their exports to Australia in three years," he said.
An early conclusion of the pact would surely help domestic apparel exports positively, he said adding exporters are desirous of engaging with Australia in a big way.
"It is our sincere prayer and request to have an early CEPA with Australia and to include Apparels as a focus product to enter the Australian market in a large way," Sakthivel said.
Australia is the 18th largest importer of apparel with USD 6.6 billion imports in 2019, he said. Currently, China is the major supplier to Australia with 64 per cent share while India's share is 1.2 per cent with exports worth USD 206 million.
He said that Indian apparel can make faster in-roads in the Australian market.
"Australia presently has preferential agreements with our major competitors like China and Vietnam. Australia also gives GSP benefits to Bangladesh and Cambodia, resulting in a 5 per cent duty advantage for these countries vis-à-vis India," Sakthivel said adding that the bilateral discussions should also include the pact.
Further, chairman highlighted India's duty disadvantage of 9.6 per cent in the EU (European Union) market as compared to competitors like Bangladesh, Cambodia, Sri Lanka and Pakistan.
"There is an urgent need to have a level-playing field in terms of market access and margin of preference in the biggest global market for Indian apparel that is the EU. We are aware of the efforts being made by the government for resuming the EU FTA and forging new ties with the UK and USA," he said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)