Home / Knowledge / News / Apparel/Garments / 'Fiscal Cliff' may impact textile & apparel exports to US
'Fiscal Cliff' may impact textile & apparel exports to US
12
Nov '12
Mr. Shahzad Salim
Mr. Shahzad Salim
Barrack Obama has been re-elected to a second-term as the President of the largest global economy - the US, which is also the biggest buyer of textile and apparels in the world. However the biggest worry on the mind of an expert from Pakistan is on how the new House and Senate will address the challenge of a large fiscal deficit.

According to Mr Shahzad Salim – Former Central Chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), “If they do not come to an agreement on tackling the issue, automatic cuts come in to effect. These could mean a 4 percent cut in the annual budget of the US”.

If the US administration does not tackle the issue, an automatic budget cut also called the ‘Fiscal Cliff’ will come in to effect. “This will mean a budget cut of 4 percent or a whopping US $607 billion in 2013”, says the Congressional Budget Office (CBO). These cuts will also apply for subsequent years.

This is the figure, which mainly worries Mr Salim. He says, “The cuts will be immediate and stringent, which could have a big impact on global exports of textiles and apparel, since the government also spends a large amount of money on both these goods”.

“I can only hope that these automatic cuts donot come into effect as it will have a catastrophic impact on not just the textile and apparel sector, but all industrial sectors across the globe”, he wound up by saying.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search