The Apparel Export Promotion Council (AEPC) has appealed to the Centre to enter into a preferential trade agreement with the United Kingodm who face tariff disadvantage in that country.
Council chairman A. Sakthivel has said in a press release that, “It has been learnt that after the implementation of Brexit in January 2021, 47 Least Developed Countries (LDCs), including Bangladesh, will continue to enjoy preferential trade benefits in the UK. This will be a continuation of the disadvantage to Indian apparels in the important and potential market of the UK. India has been losing out to its competitors in the UK and hence we request to initiate discussions for an early trade pact for apparels in the run-up to FTA,” he said.
The AEPC had earlier requested the Central Government to fast track negotiations to enter into a Free Trade Agreement with the UK to boost apparel exports.
Apparel exports to the UK, which is India’s third largest export destination after the United States and west Asian countries, have been facing a tariff disadvantage of 9.6 % as against countries such as Bangladesh due to the European Union’s Generalised Scheme of Preferences (GSP). It is learnt that the UK plans to continue offering it to 47 LDCs.
India’s ready made garments exports to the UK fell 0.8 % to $ 1,606 million in 2019 from $ 1,619 million in 2018, cutting the UK’s share in India’s exports to 9.7% from 10.3%, he added.
