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EU gives a breather to Indian RMG sector
Mar '16
The Apparel Export Promotion Council (AEPC) has welcomed the European Union's decision to extend Generalized Scheme of Preferences for three years till 2019.

The original scheme was scheduled to end on December 31, 2016. The 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 RMG sector.

Under the extension India's RMG sector will continue to get 20 per cent tariff preference on exports to EU for the next three consecutive years. The RMG sector will benefit from this extension of trade preferences, the AEPC said in a press release.

Indian RMG exports to EU is 36 per cent of the country's total exports of readymade garments.

The removal of textile sector comes in the wake of export of more than the allotted 14.5 per cent of the threshold. China has been removed from the list of beneficiaries. Indian products with duty preference will definitively have an edge in the European market, APEC said.

“Our endeavor now is signing of FTA with EU as early as possible,” Ashok G Rajani, AEPC Chairman said (SH)

Fibre2Fashion News Desk – India

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