Textiles Post Quota

2005 and beyond : the Quota-Free Era INDIA TO BENIFIT

EU will implement new GSP package from 1 January 2006
24 June 2005 - The European Union yesterday announced that its new Generalised System of Preferences (GSP) will be effective from 1 January 2006. India will continue benefiting from GSP treatment and associated tariff reductions. Sri Lanka could enjoy a duty-free access from 1 July, thanks to an anticipated treatment under the new "GSP-plus" provision. Following EU's delay in implementing the new GSP, China gets a relief until the end of the year before losing preferential treatment.

China's companies could rapidly face a shortage in quotas for several categories of exports to the European Union, including 4 (knit shirts) and 6 (men's trousers). Exporters that will not get necessary quotas in the coming weeks will not be allowed shipping their products to the European Union, as a result of the just concluded bilateral agreement

Further to the recent successful outcome of negotiations between the EU and China to limit textile and apparel exports, some EU textile firms are now worried by Indian exports. India disputes EU concerns stating it is not a threat, but certain EU member states are still pushing for excluding India from GSP benefits.

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