Home / Knowledge / News / Apparel/Garments / End of GSP+ deal to affect apparel firm's profit margins
End of GSP+ deal to affect apparel firm's profit margins
08
Jul '10
End of duty-free access to Europe, owing to end of the trade deal, will not create an upheaval for the apparel industry, although, it might pinch the already thin profit margins, informed an industry official.

A Sukumaran, Chairman of the Joint Apparel Association Forum said that, the industry was finding ways to tone down the loss of GSP+ deal, when it comes to an end in August.

In addition, under the GSP+ trade deal, only one-third of the exports get qualified, while the remaining two-thirds are unaffected by the loss of the deal, continued Sukumaran.

Hence, end of GSP+ deal would not imply as a disaster for the garment industry, although, it might affect it in some way such as the industry experiencing a slump in the exports, thereby, lessening employment. But going by the current dearth in workforce in the apparel industry, absorption of about 25,000 people can also take place, informed Sukumaran.

EU countries decided to lift the GSP+ privileged trade benefits from Sri Lanka, owing to EU Commission naming it as, 'vital shortcoming', on the issue of human rights. Hence, Sukumaran said that, it is most likely that, the garment exports, which are Sri Lanka's key industrial export, might come down by 10-15 percent this year, reaching US $2.7-2.8 billion, as compared to last year.

With the end of the GSP+ trade deal, exporters from Sri Lanka will lose duty free entry to EU markets and an import duty of 9.6 percent will be levied on their deliveries.

However, Sri Lankan exporters are now of the thought that, while EU buyers might agree to pay the import duty or share the same with domestic producers, others might disagree and explore different nations for their requirements.

Although, work is underway to safeguard the thin profit margins, apparel industry will be unable to lessen their costs by 9 percent, as the economic nitty-gritty is functioning against them.

Fibre2Fashion News Desk - India


Must ReadView All

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

American Merchant to invest $19.9 mn to start Bristol plant

Textiles | On 15th Dec 2017

American Merchant to invest $19.9 mn to start Bristol plant

American Merchant, Inc., a subsidiary of Merchant House International ...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search