In order to protect the UK manufacturing sector from unfair competition, safeguard the UK’s trading relationships with other nations under the Developing Countries Trading Scheme (DCTS), including with Bangladesh and Pakistan, and make sure that the FTA is significant and advantageous for the UK fashion and textile industry, the London-based UK Fashion and Textile Association (UKFT) has been collaborating closely with the UK Government.
After the UK-EU CEPA deal, this will be the largest trade agreement the UK has ever ratified and implemented. The agreement’s full wording is anticipated to be made public shortly, and UKFT will give members a thorough briefing so they can get ready for its implementation. In the upcoming weeks, UKFT will release a separate study on the Indian market in addition to the several projects it is now working on to promote fashion and textile exports to India.
Indian rates on 90% of tariff lines will be cut for UK retailers, importers, and consumers, with 85% of these lines becoming completely tariff-free in ten years. As the UK liberalises tariffs, consumers and retailers may soon see more options and lower prices on a variety of goods, including apparel and footwear.
India, which is expected to become the third largest economy in the world in three years, offers UK fashion and textile exporters a competitive advantage over foreign rivals when they enter this massive market. India has committed to working with the UK on a single, efficient trade portal, publishing customs procedures in English, and releasing products as soon as feasible after they arrive at customs.
In order to match India’s difficult price points, many UK firms have discovered that they must now manufacture locally. UKFT will confirm this as soon as the full treaty text is available. UKFT is aware that the agreement allows for flexible Rules of Origin (ROO) for commodities sold by UK companies, similar to those signed with Australia and New Zealand. Other trade restrictions will also be lowered in addition to tariffs, while it is unclear if all non-tariff trade restrictions, including Quality Control Orders, would be eliminated.
UKFT CEO Adam Mansell welcomed the FTA saying that it has the capacity to provide several opportunities to the British fashion and textile industry. However, he also cautioned that they needed to be mindful of the challenges as Indian exports to the UK already vastly outstrip the UK’s more modest exports and this is likely to continue. He added that the UKFT is already working on a number of activities in the market to help UK fashion and textile businesses.
