China, Korea and Taiwan likely to be immune to TPP

16 Apr '15

3 min read

Historically, SMEs have generally been unable to fully utilise FTA provisions due to their small size, as they lack the necessary resources (legal and human capital) to handle the numerous requirements of different FTAs. For instance, countries sign FTAs of varying strengths with different countries, resulting in numerous conditions being attached to a single tariff line. While some countries, like Singapore, have mechanisms to help SMEs tackle these challenges (such as providing legal expertise and resources), most countries do not. As such, SMEs have been steadily underrepresented in international trade, the report said.

The BMI report says Vietnam is poised to be one of the biggest beneficiaries of the TPP due to its prominence in the textiles manufacturing sector. However, lower tariffs for Vietnam will have a negative impact on other Asian nations such as Sri Lanka, Bangladesh and Pakistan that are major textile manufacturers as well.

BMI has predicted that Bangladesh, Sri Lanka and Pakistan will lose most from the TPP. Sri Lanka and Bangladesh are currently Vietnam’s closest competitors for the lucrative US textile market, while Pakistan also faces additional competition from Mexico and Peru (both of which already have existing FTAs with the US). (SH)

Fibre2fashion News Desk - India

More Textiles News - Asia...