With the announcement from Trump to quit from TPP agreement, the situation may be better for Indian apparel exporting, especially to USA.
According to clauses in TPP agreement, the apparel import duty from Vietnam to USA will be charged free. In this condition, more and more apparel manufacturers are planning to move factories to Vietnam. As a result, Vietnam may take the place of India to be the 3rd biggest apparel exporting country in the world.
In comparison, the Indian apparel exporting to USA has taken the proportion of 30% of its overall exporting. And the cotton textile import duty is collected from 14% to 32%. The high import tax is obviously the obstacle to India’s apparel exporting. Trump’s attitude to TPP may influence the potential benefits to new investors in Vietnam, which will also decrease the potential treats to India’s apparel exporting.
Quoted from www.sewworld.com, and translated by Shanghai Estop Machinery Co., Ltd
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