Home / Knowledge / News / Textiles / Exporters to face non-tariff barriers in EU countries - FICCI
Exporters to face non-tariff barriers in EU countries - FICCI
01
Aug '09
Notwithstanding the European Union's (EU) long-term attractiveness to Indian business as a market with immense promise, ground-level feedback received by FICCI reveals that corporates are up against protectionism by way of agriculture subsidies and Non Tariff Barriers (NTBs) on services exports.

A FICCI Survey on 'India-EU Trade Relations' on the post-recession experience of Indian exporters doing business with the EU reveals that exporters are facing the adverse impact of the huge amount of subsidies enjoyed by EU farmers through free seeds and fertilizers and a freight subsidy to producers. In addition, exporters face cumbersome quality testing which increases the cost and time dimension of Indian companies. In particular, many mid-sized India pharma companies have been severely hit due to the recent seizure of shipments at transit ports located in the EU.

The respondents to the FICCI Survey felt that the main impediment in the expansion of services to the EU were visa and consular issues, non-clarity of taxation and cross border transaction laws as applicable to Indian service providers.

Specifically in the IT sector, companies face difficulties in obtaining work permits for their professionals. Besides, issue of work permits is time consuming. Delays are rarely appreciated by clients in the EU who sign tight and time-bound contracts and expect timely delivery.

Difficulties are still being experienced by exporters in obtaining visas/work permits for spouses of IT professionals travelling to the EU. Moreover, work permits are still being issued for a particular city only in some of the EU countries such as Germany. Currently, the UK government issues visas only for 6 months, while a period of two years would be reasonable considering the repeated time and resource commitment in applying for visas. (Non-recognition of Indian qualifications in many EU countries is a further hindrance to the growth of trade in services.

Another major issue being faced by IT companies with business in more than one EU constituent is that of movement of personnel between branches within Europe. Many a time, flexibility is required for efficient execution of projects. The current rules require the procurement of a separate work permit each time, involving elaborate bureaucratic procedures.

The FICCI Survey reveals that exporters doing business with more than one EU country are not able to reap economies of scale by producing in bulk for both markets. This is because the EU countries follow different standards domestically. A further complication is that products complying with UK standards and supplied from India to other EU countries like Germany are not accepted whereas the same product complying with same UK standards and supplied through UK to Germany are accepted and vice versa.

The Survey covered four broad aspects: Perception of the EU as a trade partner; Issues of concern with the EU;Reaction to the proposed India-EU FTA; and the; and Future plans of business expansion with the EU.


Must ReadView All

Last-minute changes in USMCA keeps lid on e-com

Textiles | On 18th Oct 2018

Last-minute changes in USMCA keeps lid on e-com

Eleventh hour changes to a new trade deal torpedoed US hopes of...

Courtesy: Haggar

Apparel/Garments | On 18th Oct 2018

Haggar uses Repreve fibre made of recycled water bottles

Haggar, a US based apparel brand established in 1926, has recycled...

Revenue from RIL petrochemicals soars 56.2% in Q2FY19

Textiles | On 18th Oct 2018

Revenue from RIL petrochemicals soars 56.2% in Q2FY19

The revenue from the petrochemicals segment of Reliance Industries...

Interviews View All

Anvita Mehra, Confidential Couture

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

C Kamatchisundaram, Voltas

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

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

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Igor Chapurin, Chapurin

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

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