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Indonesian exporters delighted over US withdrawal from TPP
Jan '17
The withdrawal of the US from the Trans Pacific Partnership (TPP) trade agreement has delighted the Indonesian textile and apparel exporters, as they will now have a level playing vis-à-vis those countries in the TPP pact. US President had earlier last week decided to withdraw from the TPP agreement, which offered preferential duty rates to member states.

Indonesia’s neighbours like Malaysia and Malaysia used to enjoy a preferential import duty in shipments to the US, on account of being TPP member countries, while Indonesian textiles were subjected to 10 per cent import duty.

A leading Indonesian daily quoted the chairman of Indonesian Textile Association (API) Ade Sudrajat as saying that the decision of the US to withdraw from TPP will benefit the country’s textile exports, as the country will now be able to compete at the same price points, as export from other countries to the US.

As against, exporting around 36 per cent of overall Indonesian textile and apparel exports to the US last year, API now expects that figure to rise to 39 per cent or $4.8 billion this year. (AR)

Fibre2Fashion News Desk – India

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