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Exports of textiles to Japan to attract zero percent duty
Jul '08
Following the implementation of the Japanese-Indonesian economic partnership agreement, Japan has agreed to implement zero percent import duties on most of the goods imported from Indonesia.

This agreement has come into effect from July 1, 2008. Textiles and footwear are two of the many products, exports of which will attract zero percent duty in Japan. This move is expected to give a fillip to the textiles and garment trade of Indonesia.

Indonesia has also reciprocated by reducing tariffs on a lot of products and more and more goods are expected to attract zero duty tariffs in a period of 3-10 years.

Indonesian exports of textiles & apparels to Japan have grown from US $344 million in 2002 to US $514 million in 2007.

Share of exports of these goods from Indonesia in to Japan is 2.9 percent compared to 76.6 percent from China but better by a wide margin than other competing countries like India, Vietnam and Thailand which have shares of 1.4, 1.2, 1.2 percent respectively.

This decision will definitely prove to be a boon to exporters of textiles and apparels who will have a fair advantage versus other rival countries and a chance to increase their market share under the agreement.

But at the same time there is also a fear of flooding of Japanese goods in to the country under the reciprocal agreement.

Fibre2fashion News Desk - India

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