Hit by US tariffs, Panipat textile exporters EU-phoric over ‘mother of all trade deals’

Chandigarh: The India–EU trade deal, inked on Tuesday, has brought a smile to the faces of export houses and allied industries in the textile and handloom hub of Panipat. Under the latest trade pact, textiles and apparel exports from India will enjoy zero customs duty in the EU, removing earlier tariffs of up to 12% and boosting competitiveness. Hundreds of export houses had been left in the lurch after suffering losses due to higher tariffs imposed by the US over the past six months. These tariffs sharply reduced Panipat's textile exports—from an annual turnover of around Rs 18,000 crore to just Rs 5,000 crore—largely limited to the execution of old orders and pending commitments placed before the tariff hikes."The US was a major export market for our handloom products, blankets and home décor items. The India–EU pact is expected to encourage new trade linkages in textiles. We are hopeful of relief through lower tariffs on both imports and exports, which will give a fresh direction to exporters," said Vidhu Paliwal, general secretary of the Exporters Association of Panipat.Nitin Arora, president of the Panipat Dyers' Association, said exporters were now hopeful of greater facilitation from the Centre and the Haryana government to tap EU markets. "As ancillaries to export houses, this development gives us new hope. Until now, we were in a fix," Arora said.Arora and Paliwal, who submitted memorandums to Haryana chief minister Nayab Saini last week, reiterated their demand for the appointment of a nodal officer for export houses in Panipat. "While the government is supportive of exports, a nodal officer would help streamline procedures, especially in the wake of this new treaty," Paliwal said.Industries beyond Panipat are also optimistic. The shoe and leather complex in Bahadurgarh, along with the automotive and apparel sectors in Faridabad and Gurugram, are expecting the trade deal to provide a significant boost to their businesses.MSID:: 127710043 413 |