A positive resolution to the US imposition of high tariffs on Indian exports is likely in three weeks, said A Sakthivel, vice-chairman of Apparel Export Promotion Council (AEPC), in Tiruppur.
He also said the central government is working to sign a Free-Trade Agreement (FTA) with the European Union. Speaking to reporters on Saturday evening, Sakthivel said, “I have been instructing the industry from the beginning not to be perturbed over the US tariff hike. Exporters can expect good news from the US in three weeks as parleys with the US have already commenced by the government.”
The high tariffs have hit the US people hard. Americans are now forced to pay $15 for Indian knitwear which they had previously bought for $10. The US buyers prefer India. Soon we will be free from this danger, he further said. “We export knitwear worth Rs 15,000 crore from Tiruppur to the US. The tariff hike may have affected exports of at least Rs 2,000 crore so far. But this will not be for long,” he added.
Regarding the prospects of an FTA with the EU, Sakthivel said: “An FTA has already been signed between India and the UK. It will come into effect in two months. At present, the central government is working to sign a free-trade agreement (FTA) with the European Union. If an FTA is reached, orders going to our competing countries will come our way. This will further increase our exports.”
The upcoming 52nd India International Knit Fair (IKFA) in Tiruppur will give a fillip to the Tiruppur export sector in the current scenario, he said. The fair will be held from September 17 to 19 in coordination with AEPC and Tiruppur Exporters’ Association. Tiruppur Exporters’ Association president KM Subramanian, general secretary N Thirukkumaran and others were present.
News Courtesy: Msn