Page 20 - October-November-2018

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Indonesian textile industry

targets exports of $14 bn

The Indonesian textile and apparel industry is textile and clothing merchandise to Australia would
hopeful of meeting an export target of $14 billion by be abolished when a an agreement is signed later
the end of this year with an exports figure of $7.74 this year. Both sides proclaimed the substantive
bn for January-July 2018. The completion of the conclusion of negotiations on IA-CEPA on the 31st
Indonesia-Australia comprehensive economic of August of the current year.
cooperation agreement (IA-CEPA) can facilitate to
boost exports. Additionally, Indonesia is attempting to nail down a
free trade agreement (FTA) with the European
Interacting with representatives of a hundred Union and also the United States. The export value
medium as well as small textile industries at
Bandung in West Java recently, Mr Hartarto of the country’s textile industry was $12.58 billion in
mentioned the import duty tariff on Indonesian 2017, up 6pc over the previous year.

Pakistan and India trade potential

stands at $37bn: World Bank

According to the World Bank, the bilateral trade smaller sensitive list is applied to Sri Lanka by India.
potential between India and Pakistan is $37 bn
without any artificial barriers compared to the actual Items on the Indian sensitive list can be imported at
$2 bn. In the report “A Glass Half Full” by the World most-favored-nation tariffs from any SAFTA country,
Bank, it was stated that continuous political tensions including Pakistan, because India accorded Pakistan
and lack of trade relations between the both the countries most-favored-nation status in 1996.
have hindered cooperation efforts in South Asia.
In addition, the preferential access granted by
Highlighting the factors behind lack of trade, the Pakistan on 82.1 pc of tariff lines under SAFTA is
report pointed out that Pakistan has a long list of 936 partially blocked in the case of India because
items (almost 17.9 pc of tariff lines) that applies to Pakistan maintains a negative list comprising 1,209
imports from all SAFTA (South Asian Free Trade items that cannot be imported from India. In practice,
Area) countries. many of these items are exported from India to
Pakistan through third countries, usually the United
Meanwhile, India contains a sensitive list of 25 items Arab Emirates.
(0.5 pc of tariff lines, which are only goods such as
alcohol, firearms, and so forth). However, it has a The report also stated that the application of
way longer list of 614 items (almost 11.7 pc of tariff non-tariff measures (NTMs), that is, policy measures
lines) for Sri Lank and Pakistan but that only other than tariff has created another barrier to
effectively is applicable only to Pakistan because a bilateral trade.

October/November 2018