Home / Knowledge / News / Textiles / Peru-Mexico FTA may hurt Indian cotton yarn exports
Peru-Mexico FTA may hurt Indian cotton yarn exports
17
Feb '12
The Peru-Mexico free trade agreement (FTA) that came into force this month is likely to harm cotton yarn exports from India to Peru.

Currently, around 80 percent of Peruvian cotton yarn imports are from India. In 2011, Peru imported US$ 81.389 million worth of Indian cotton yarn, while its imports of cotton yarn from other countries amounted to US$ 15.976 million, according to the data prepared by the Textile Committee of Peru's National Society of Industries.

Peruvian cotton yarn imports from India have increased from a mere US$ 1.672 million in 2004 to about US$ 84.779 million in 2010. In comparison, Peru's cotton yarn imports from other countries have shown a marginal increase to US$ 8.367 million in 2010 from US$ 7.996 million in 2004.

Under the Peru-Mexico FTA, duty-free export facility will not be available for Peruvian textile and clothing items that are made using raw materials imported from third countries like India. The yarn forward rule, however, has some exceptions in certain types of elastomeric filament yarns.

To export textiles and clothing items to Mexico at zero-duty, all the textile inputs have to be made in Peru or Mexico. This principle is likely to negatively impact Indian yarn exports to Peru in view of its high volume.

Peru has FTA's in place with other countries such as the US, Canada, Chile, South Korea, Japan, Mexico and the Mercosur region. All these FTA's impose heavy penalty for using yarns from third countries.

Fibre2fashion News Desk - India


Must ReadView All

India's garment exports up 24.93% in September 2017

Textiles | On 16th Oct 2017

India's garment exports up 24.93% in September 2017

The exports of readymade garments from India in September 2017 was...

Low GST rate on zari will generate jobs for women: SRTEPC

Textiles | On 16th Oct 2017

Low GST rate on zari will generate jobs for women: SRTEPC

There will be a rise in the employment for women with the slash in...

Consumers may suffer if no assurance to EU workers in UK

Apparel/Garments | On 16th Oct 2017

Consumers may suffer if no assurance to EU workers in UK

Consumers may suffer if the British Government does not quickly offer ...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Steve Cole
Xerium Technologies

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Karan Arora
Karan Arora

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

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

October 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
76.9%
No
13.8%
Skip
9.2%

Total Votes: 65

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
61.5%
No
27.7%
Skip
10.8%

Total Votes: 65

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
84.6%
No
10.8%
Skip
4.6%

Total Votes: 65

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
73.8%
No
12.3%
Skip
13.8%

Total Votes: 65


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