Knitwear exporters have appealed to the Prime Minister Narendra Modi to conclude the Comprehensive Economic Partnership Agreement (CEPA) during his visit to Canada later this month.
“Canada is a promising market for knitwear exports. The total knitwear garments exports to Canada stood at ₹680 crore in 2013-14 and in knitwear exports ranking Canada stands in the 11{+t}{+h} position. The same ranking has been witnessed in the first nine months of the current financial year with a record value of ₹502 crore.”
“Competition though has become intense. With competing countries such as Bangladesh and Cambodia, in view of their classification as least developed countries, enjoying preferential treatment in tariff, India is losing the race.
“Vietnam’s export to Canada for instance, was far below our volumes in 2009. It has now doubled and growing steadily. Our exports to Canada, on the other hand, have slipped by 31 per cent between 2009 and now.”
“It is expected to fall further with withdrawal of the GPT (General Preferential Tariff) entitlement to 72 countries, including India, effective from January 2015,” A Sakthivel, President, Tirupur Exporters’ Association said.
“The decision was taken by Canada after these countries were classified as “high income” or “upper middle income” countries by the World Bank for two consecutive years considering that they have had a share of equal to or greater than one percent of world exports for two consecutive years”.
Voicing doubt about India’s survival in the huge Canada market, Sakthivel said “expediting CEPA will help enhance knitwear exports to Canada.”