Home / Knowledge / News / Textiles / Textile units at receiving end of new EU RoO
Textile units at receiving end of new EU RoO
05
Apr '11
European Union's new rules of origin (RoO) have badly hit the textile mill owners in Bangladesh, as the new rules permit garment exporters to procure fabrics from other countries, while turning a blind eye to the fabric output of the around 1,300 domestic textile units in the country.

The new RoO of the EU which came into effect from January 1, 2011 has granted duty-free access to the clothing exporters to the 27 member-EU nations, even if they buy fabric from other countries.

The earlier RoO for years together served as a protective cover for the domestic textile industry, as it necessitated, garment exporters to source major part of the fabrics from the local textile units, if they wished to enjoy the duty-free access to the EU, the world's biggest apparel market.

Thus, it is being alleged by the textile millers that the new RoO have hard hit their businesses, as most of the RMG producers, source fabrics from foreign countries, overlooking domestic textile units.

Further, though the larger firms have been able to withstand the impact of the new rules, it has affected to a great extent, the hundreds of thousands of small units, which enjoyed protection under the earlier rules.

It is only now; after three months, of the new rules becoming effective that, its effects on the country's primary textile industry, has started becoming apparent.

Further, wherein due to liberalisation of EU rules, several small and medium scale firms are already finding it difficult to survive, ongoing issues like gas and power crunch and rising prices of cotton are adding to their miseries.

Over the last 20 years, textile units, particularly export-oriented units have grown robustly, as the previous EU rules which remained in effect from 1990s to December 2010, compelled the garment producers to source majority of the fabrics from domestic markets, and thus served as the single most vital catalyst to the growth of Bangladeshi textile sector.

Also, in many of the instances, the rules were the sole reason, for which several investors established their plants in the country. But now, owing to the new rules, garment manufacturers from Bangladesh have started sourcing fabrics from other countries like China, India, Turkey, Pakistan, etc.

The domestic primary textile mills last year churned out around 2,000 million metres of woven fabrics and 1,700 million kg of cotton yarn.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 22nd Mar 2017

Amazon India introduces 'A-Z GST Guide' programme

Amazon India has introduced a programme called 'A-Z GST Guide' to...

Textiles | On 22nd Mar 2017

Dyeing textiles with bacteria

As an alternative to toxic synthetic dyes, scientists are exploring...

Courtesy: BCG

Apparel/Garments | On 22nd Mar 2017

Consumption in India to touch $4 trillion by 2025: Report

Consumption in India is likely to triple to $4 trillion by 2025 as...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silke Brand-Kirsch
Schlegel und Partner

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Robert Brunner
Devereux

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search