Textile sector urges Canada for duty-free access

26 Apr '10

2 min read

To compete for an equal treatment under the Generalised Preferential Tax (GPT) system, against their rival nations, Singapore and South Korea, the Taiwan Textile Federation (TTF) has urged their government to lodge a complaint with the Canadian government for the same.

Although Canada commenced implementation of the GPT system in 1974, Taiwan has been paying higher taxes, when exporting textiles to the nation, as it is placed under the Most Favoured Nation (MFN) system.

Last year, in September, most of the textile-related organisations and TTF together, had requested, Scott Fraser, Executive Director of the Canadian Trade Office in Taipei to act on Taiwan's request and include it under the GPT system.

According to TTF, between MFN and GPT the differential touches almost 3.51 percent, which is unfavourable for textile exports from Taiwan to Canada, as compared to China and South Korea.

More so, Canada has been waiving off duties on textiles imported from Bangladesh and Cambodia, if these countries utilise yarns and fabrics produced by the GPT-regulated nations, thereby forcing Bangladesh and Cambodia to purchase raw materials from China and South Korea, which has further turned disadvantageous for Taiwan.

Since 2002, when Taiwan joined the World Trade Organisations (WTO), it has been urging the Canadian government to include it under the GPT system.

Fibre2Fashion News Desk - India

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