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Canada's GPT withdrawal to hamper India's knit exports

Canada will withdraw duty benefits to Indian garment imports after January 2015. But Tirupur garment exporters hope Canada continues with the General Preferential Tariff scheme. Canada wants to discontinue the GPT to 72 countries, including India. It took this decision after these 72 countries were classified as high income or upper middle income countries by the World Bank for two consecutive years or have had a share equal to or greater than one per cent of world exports for two consecutive years.  

India's competing countries like Pakistan and Vietnam continue to get duty benefits under GPT. Vietnam, which was exporting less than India, has now increased its exports two times and is also showing a steady growth rate, whereas India's exports have come down by 31 per cent. Tirupur exporters feel once the normal customs duty of 18 per cent is imposed for their knitwear garments in Canada, they will lose competitiveness and the market for knitwear garments will go out of their hands.

So they want the Indian government to request Canada to continue with GPT after January 2015. They also feel the time is right to make efforts to sign a free trade agreement with Canada mainly to recapture and increase exports to Canada.

 
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