Tirupur: The Apparel Export Promotion Council (Aepc) on Sunday said the central government was yet to realize the importance of signing Free Trade Agreement (FTA) with the European Union (EU) and US, or Comprehensive Economic Partnership Agreement (CEPA) with Canada and Australia.

Aepc chairman A Sakthivel said, “The absence of FTA and CEPA is one of the main hindrances to the country’s readymade garments (RMG) exporters in the international market. While we are exporting RMG worth $16.5 billion annually, our main competitors Bangladesh, Vietnam and Cambodia are exporting RMG worth around $38 billion, $28 billion and $12 billion, respectively. All the three countries have signed FTA and CEPA deals with various RMG importing countries and they are thriving in the exports.”

For instance, he said, Cambodia’s RMG exports were worth only around $3 billion a few years ago. “But now, it has tripled. Despite having required infrastructure, raw materials and skill set, we are losing orders in the international market.”

For signing FTA with EU, Sakthivel said, the country would have to compromise on free trade in automobiles and wine products. “The main talking point is on how to have such compromise in terms of our economic policy. It can be done because the textile industry is one of the self-sufficient industries in the country and it suits ‘Make in India’ bill well. Around 120 million people, including 60% women, are employed in the sector. Moreover, if FTA is signed, our RMG exports would be doubled and it would also benefit allied sectors like agriculture,” he said.

Emphasizing that signing FTA was a realistic and an inevitable solution, the Aepc chairman said “The UPA-II government had taken steps to sign FTA and taken the automobile industry into confidence. It was about to enact a law in the parliament as well. But it did not take off due to change in government. Canada had recently shown its commitment to sign CEPA with us. But the BJP-led government did not take things forward.”

He said it was important to have FTA with UK on the lines of Brexit. “Various textile bodies have urged the international buyers to push their governments to sign FTA with India. 

Because of the quality goods exported from India, many UK buyers have agreed to take up the matter with their government. An umbrella federation of nation-wide textile associations has been formed in New Delhi and we have decided to put pressure on the central government to act in favour of signing FTAs soon,” Sakthivel said.

(Bloomberg contributed this story)

Published On : 13-01-2020

Source : Times Of India