Home / Knowledge / News / Textiles / Sri Lanka, China ink MoU to initiate FTA talks
Sri Lanka, China ink MoU to initiate FTA talks
18
Sep '14
Mr. Xi Jinping with Mr. Rajapaksa/c: MED (SL)
Mr. Xi Jinping with Mr. Rajapaksa/c: MED (SL)
A memorandum of understanding (MoU) on launching negotiations for free trade agreement (FTA) was among the 27 bilateral agreements and MoUs signed between Sri Lanka and China during the two-day official visit of Chinese President Xi Jinping to Sri Lanka this week.
 
The MoU on launching the negotiations for a China-Sri Lanka FTA was signed by Basil Rajapaksa, Sri Lanka’s Minister of Economic Development, and China’s Minister of Commerce Gao Hucheng.
 
Incidentally, President Xi’s visit was the first visit by a Head of State of China to Sri Lanka in 28 years. 
 
Sri Lanka’s economy is growing at 7.8 percent this year and the China-Sri Lanka FTA, once finalized, is expected to provide a more balanced and sustainable development in bilateral trade and economic cooperation between the two nations.
 
While China is the world’s largest exporter of textiles and apparel, Sri Lanka is a manufacturing hub for lingerie, T-shirts and blouses. At present, Sri Lankan exports of textiles and apparel attract duty ranging from 14 percent to 25 percent in China, and if the free-trade deal fructifies, all textile and clothing items from Sri Lanka would be able to enter the Chinese market duty-free. This would also help some of the global apparel brands that have their manufacturing facilities in Sri Lanka, according to industry analysts.
 
PVH Corp (Phillips-Van Heusen), one of the top American apparel companies with 2013 revenue of US $8 billion, is already excited about the upcoming FTA. “We are very excited about the forthcoming Lanka-China FTA—having duty free market access to China is very important for us as an apparel sourcing firm and the benefits are great. … Having a production centre in Sri Lanka with duty free access to China market is very exciting for us. This is really exciting!,” Mr. Mark Green, the executive vice president of global supply chain of the New York-based company, told Rishad Bathiudeen, Sri Lanka’s Minister of Industry and Commerce, in Colombo, last month.
 
Textiles and garment exports, which account for 45.3 percent of the total Sri Lankan exports, grew by 25 percent year-on-year to US$ 446 million in June 2014, contributing more than 50 percent to the overall growth in exports in June 2014, according to the data from the Economics Research Department of the Central Bank of Sri Lanka.
 
In January-June 2014, Sri Lanka’s textiles and garments exports surged 20.6 percent to $2.412 billion, as against exports of $2 billion made during the corresponding period of last year.
 
In 2013, Sri Lanka’s earnings from textile and garment exports grew by 13 percent year-on-year to $4.508 billion, while its value of imports declined by 9.7 percent year-on-year to $2.045 billion. (RKS)
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Jens Mahnke from Pexels

Textiles | On 22nd Oct 2018

India levies anti-dumping duty on flax yarn from China

The ministry of finance, Government of India, has imposed definitive...

US polyester yarn makers allege dumping from China, India

Textiles | On 22nd Oct 2018

US polyester yarn makers allege dumping from China, India

Two major US synthetic yarn producers—Unifi Manufacturing, Inc...

Courtesy: Donear

Textiles | On 22nd Oct 2018

Aspiring middle class shaping menswear fabric trend

The key trends shaping menswear fabric include a new middle class and ...

Interviews View All

Top executives, Fabric manufacturers

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Vikas Banduke,

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Italtex,

Italtex

Italtex is a leading studio publishing fabric trend-books since 1959....

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

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

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search