Home / Knowledge / News / Textiles / TPP offers opportunities to Canadian retailers
TPP offers opportunities to Canadian retailers
22
Jun '16
A report by multinational law firm Dentons says the Trans-Pacific Partnership (TPP) offers Canadian retailers exciting new opportunities.

The 12-nation TPP offers the Canadian textile industry expanded and preferential access to many strategic global markets. To the extent that Canadian textile and apparel retailers and producers are able to organize their operations in such a way as to work within the TPP's new textile and apparel rules of origin, they will have the opportunity to take advantage of significant reductions in the rates of duty with which they contend when importing products into Canada, the report says.

The agreement is Canada's first free trade agreement that contains a chapter specifically dedicated to textiles and apparel. According to Global Affairs Canada, the TPP's textile and apparel rules of origin will provide Canadian producers more flexibility in sourcing options, opening up Canada's access to trade with the other member states.

The TPP reduces and eliminates tariffs associated with trading textiles and apparel between member states. Taking advantage of the TPP's preferential tariff treatment by trading with other member states could result in significant cost savings for retailers and producers in Canada. The specific rates of preferential tariff treatment, including the base rates of duty applicable to each item and the timeline for tariff elimination, can be found in each member state's Tariff Elimination Schedule.

Generally, for an end product to qualify for preferential tariff treatment, it must originate within the TPP region in accordance with the Agreement's rules of origin. As a general rule, an end product must be comprised of yarns and fabrics from the TPP region to qualify as originating within the TPP region. This requirement is often referred to as the “yarn forward” rule.

However, the TPP also provides a degree of flexibility with respect to the yarn forward rule. Article 2 of Annex 4-A outlines that an end product qualifies as originating if it is produced entirely in the territory of one or more TPP parties using non-originating materials that have undergone the production process requirements or changes in tariff classifications specified in the Annex, and the end product otherwise satisfies the rule of origin requirements set out in Chapters 3 and 4 of the TPP.

Additionally, the Short Supply List, found in the TPP provides its members with an exemption to the yarn forward rule in situations where producers

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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
January 2017

January 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