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Clothing producers bank on Govt to bail them out
04
Mar '10
Ever since Canada opened its borders to free trade of goods, the garment sector in Canada is going through a tough period. Their only hope lies in the budget to be announced today, in which they expect the government to announce provisions to boost the domestic clothing industry.

Among the wish-list is that the federal government will reduce duties on raw materials imported for manufacturing clothing. The industry has shed 55 percent of jobs ever since the government reduced import duties for garments and accessories imported from overseas markets.

Recently GAP, an iconic US retailer had renewed its faith in Canadian apparel producers by renewing its contract with three suppliers due to faster lead times and quality of products provided by the Canadian manufacturers when compared to Asian manufacturers.

The only stumbling block are the high duties charged by the government on import of raw materials like fabrics, where the tariffs are as high as 14 percent on fabric imported from overseas, which makes these manufacturers uncompetitive in a market where duties are low for finished goods.

Fibre2fashion News Desk - India


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