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

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Aditi Somani
Aditi Somani

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

Yash P. Kotak
Bombay Hemp Company

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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