Interviews
Withdrawal of US GSP will hit Jewelry sector - GJEPC
25 May '07
2 min read
Gems and jewellery exporters are concerned that duty-free access to the US market may soon be eliminated.
Industry has already argued its side at the US House of Representatives saying that withdrawing trade concessions for jewelry sector of India and Thailand was unfair. They believe that this move by the US will make way for China to strengthen its position and weaken Indian industry.
Talking to Fibre2fashion, Sanjay Kothari, Chairman, Gems & Jewellery Export Promotion Council (GJEPC), said, “India is working towards US GSP issue and we have made adequate representations. If the benefit is withdrawn then it will affect Indian exports. We are yet to gauge the extent to which the exports will be affected. The business will go out to China which is detrimental.”
He further added, “Indian Gem & Jewellery Export Industry is now exploring new markets such as CIS, Japan, Africa and so on. So that dependence on US is reduced and industry will not be affected if the benefit is withdrawn.”
Last month, US had informed that the government would not extend the benefit scheme, known as the generalized system of preferences (GSP) for jewellery from India.
Under the new criteria, the administration can eliminate benefits when annual imports of goods from a country surpass the $1.87 billion or comprise 75 percent of total US imports of that product. Since, India had crossed $2 billion in 2006, it did not qualify for the benefit scheme which was revamped last year.
Industry has already argued its side at the US House of Representatives saying that withdrawing trade concessions for jewelry sector of India and Thailand was unfair. They believe that this move by the US will make way for China to strengthen its position and weaken Indian industry.
Talking to Fibre2fashion, Sanjay Kothari, Chairman, Gems & Jewellery Export Promotion Council (GJEPC), said, “India is working towards US GSP issue and we have made adequate representations. If the benefit is withdrawn then it will affect Indian exports. We are yet to gauge the extent to which the exports will be affected. The business will go out to China which is detrimental.”
He further added, “Indian Gem & Jewellery Export Industry is now exploring new markets such as CIS, Japan, Africa and so on. So that dependence on US is reduced and industry will not be affected if the benefit is withdrawn.”
Last month, US had informed that the government would not extend the benefit scheme, known as the generalized system of preferences (GSP) for jewellery from India.
Under the new criteria, the administration can eliminate benefits when annual imports of goods from a country surpass the $1.87 billion or comprise 75 percent of total US imports of that product. Since, India had crossed $2 billion in 2006, it did not qualify for the benefit scheme which was revamped last year.
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