TEA appeals PM to resume stalled negotiations with EU to have FTA

Dr. A. Sakthivel, President, TEA has made an appeal to the Prime Minister Narendra Modi to resume the stalled negotiation with EU to have FTA on urgent basis, as implementation of FTA with EU will help to double the garment exports to EU in next three years and create more employment. It is to be noted that this garment sector has exported RMG worth US $ 16.82 Billion in 2014 – 15 and out of this, US $ 7.16 Billion value of garment was destined to European Union and is still having the potential to enhance exports in European Union once the level playing field is provided to the sector.

The EU is a traditional market for Indian garment exporters and out of total garment exports from the country, the share of EU is 43%. Sakthivel observed that as the neighbouring countries like China and Bangladesh are facing issues – surge in cost of manufacturing of garments to increase in wages and power cost – thus further push in trading with the EU will help the sector.

TEA Chief has also made a requisition to Nirmala Sitharaman, Minister of Commerce and Industry to restore the negotiations and expedite the process for the benefit of garment sector.