Home / Knowledge / News / Textiles / Indonesian textile sector awaits EFTA deal
Indonesian textile sector awaits EFTA deal
23
Jan '16
As Indonesia struggles to come out of a stubborn economic slowdown, the country's textile industry is hoping a free-trade agreement with four non-EU countries will give local garment and footwear manufacturers greater access to the European market.

Indonesian Textile Association (API) chairman Ade Sudrajat said that the agreements with Switzerland, Norway, Iceland and Liechtenstein, collectively known as the European Free Trade Association (EFTA), could also provide access to other European countries as well, a leading Indonesian newspaper has reported.

“While the countries are small in size and population, their per-capita income is relatively high … and there's a chance for an agreement between the EFTA and the EU that will ease the flow of our products,” he said.

According to Ade, Indonesian textile products are currently subject to import tariffs between 11 and 30 per cent in the four countries. Reducing tariffs to zero per cent would make Indonesian goods more competitive.

Ade also said that EFTA markets holds great potential for Indonesian textile products because of fashion trends in those countries through the four seasons of the year.

Indonesian Footwear Association (Aprisindo) chairman Eddy Widjanarko said while an agreement with the EFTA would definitely help increase shoe exports to the four countries, an exponential increase is unlikely, the newspaper reported.

Footwear and apparel are among Indonesia's foremost export goods to the EFTA countries. Indonesian footwear exports to the EFTA countries more than doubled from $46.87 million in 2010 to $93.26 million in 2014, when they accounted for almost 18 per cent of total Indonesian exports to the four countries, according to EFTA data. Woven and knitted apparel contributed a further 20 per cent of Indonesian exports to EFTA countries.

While the textile and footwear industry wait for the FTAs, Mahmud Syaltout, an international trade law and policy expert with the University of Indonesia (UI), has argued that the government needed to aim for a wider partnership with the EFTA countries, as trade links were “already good”.

He said the government could lobby for more investment from the four countries, transfer of technology and greater involvement in the global value chain.

The Indonesian government would resume trade talks with the EFTA countries this year and seek for lower tariffs on processed agricultural goods as well as bigger investment in various sectors. (SH)

Fibre2Fashion News Desk - India


Must ReadView All

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Mike Hoffman
Gildan Activewear SRL

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

July 2017

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

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X