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EURATEX welcomes India's lifting of cotton yarn export restrictions
Apr '11
The decision of the Indian Government to lift the restrictions on Exports of Cotton Yarn as of 1rst of April- is welcomed by the EU Textile and Clothing Industry.

The President of EURATEX - European Apparel and Textile Confederation, Mr. Alberto Paccanelli, recalled “The imposition in December 2010 of a quota of 720.000kg to Exports of Cotton Yarns by the Indian Government created an extremely difficult market situation with raising prices, lack of availability and severe disturbances in the T&C supply chain in the EU” and add “This decision by the Indian Authorities is a positive sign given to the market and we hope it will contribute to alleviate the pressure and speculation that we have been witnessing in these last months”.

The imposition of this Export Restriction by Indian Authorities, along with the one on Cotton Fibre, was poisoning our business relations with India and casting a shadow on the EU- India FTA negotiations in Textiles and Clothing. In the views of EURATEX President “The lifting of the restrictions on Cotton Yarn is a positive step taken by India and we hope that in the near future the restrictions on Exports of Cotton Fibre will also be lifted. In this way we can solve two of the major problems affecting currently the trade negotiations in our sector”.

This positive outcome is the result of the strong engagement and coordinated efforts of EURATEX and its members in cooperation with the Commission- DG Trade and the EU Delegation in India. In this occasion Mr. Paccanelli said “I am very satisfied with the outcome because as President of EURATEX I want to work for the companies, solving concrete problems and improving the business environment in our sector. I think this is a good example of a coordinated approach between EURATEX, its members and the Commission in solving a problem that was affecting very badly our companies in their day-to-day business”.

EURATEX defends that all Export Restrictions, being in the form of Quotas or Export Duties, should be banned as they are an obstacle to a free and sustainable trade environment. To achieve this objective rules in bilateral as well as in multilateral agreements should be strengthen.

EURATEX - European Apparel and Textile Confederation

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