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Country lures Chinese leather goods manufacturers to invest
16
Dec '08
Baigou city, in Hebei Province of China is fondly called the “City of Bags”, since it is considered a hub for the Chinese leather industry, other than the footwear industry particularly leather handbags and purses.

Now the Sri Lankan government is targeting the city for investments in the country. The Sri Lankan embassy in China has initiated a programme in Baigou to promote the Sri Lankan leather industry.

One of the incentives offered is the benefit of the GSP+ scheme of the European Union which entails access of products from Sri Lanka to the countries of the EU at zero duty. Incidentally the EU has slapped a 19.4 percent anti-dumping duty on Chinese products.

The government has also announced a zero percent duty on import of machinery and raw materials needed to manufacture the leather goods. Apart from that they are also citing the free trade treaties they have signed with the two big markets in the neighborhood; India and Pakistan.

Fibre2fashion News Desk - India

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