NEW DELHI: The Apparel export promotion Council (AEPC) has urged the commerce ministry to take measures to establish a preferential trade agreement with the United Kingdom that would help in removing the customs duty disadvantages faced by Indian textile players in the market and also boost exports from the sector to the UK market.
“It has been learnt that after the implementation of Brexit (Britain’s exit from the European Union bloc) in January 2021, 47 Least Developed Countries (LDCs) including Bangladesh will continue to enjoy preferential trade benefits after the UK’s departure from the EU.This will be a continuation of the disadvantage to Indian apparels in the important and potential market of the UK,” (AEPC) Chairman A Sakthivel wrote in his letter to Union commerce and industry minister Piyush Goyal.
He added that India has been losing out to its competitors in the UK and measures should be taken to initiate discussions for an early trade pact to enter into a Free Trade Agreement(FTA) with the UK. The agreement, if implemented, would help in removing the tariff disadvantage faced by Indian apparels in the UK market.
The chairman added that apparel exports to UK, which is India’s third largest export destination after the US and UAE, have been facing a tariff disadvantage of 9.6 per cent against countries like Bangladesh due to the EU’s Generalised Scheme of Preferences (GSP), which the UK plans to continue offering to the 47 LDCs. “It’s not a matter of LDCs. The point is that Bangladesh is equally competitive now and their exports have grown at 11.7 per cent CAGR during 2009-18, when our exports stagnated,” he said.