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

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Suresh Patel
Sidwin Fabric

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

February 2018

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
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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