Page 10 - TEXtalks October/November 2021

10

Textile and Apparel Policy 2020-25

to be presented in ECC for approval

The ministry of commerce is set to present the textiles and apparel industry at $20 billion for the
five-year Textile and Apparel Policy 2020-25 in the current fiscal year.
Economic Coordination Committee (ECC) of the
Cabinet for approval. The new Textile and Apparel The main objectives of the proposed policy are to
Policy government would give cash subsidies and leverage the advantage of a complete textiles and
would provide gas and electricity at lower rates to apparel supply chain by encouraging value-addition
enhance the production of the textile sector. The at each stage of processes, especially in the finished
support for the textile sector runs in billions of products, to restore the profitability of cotton farmers
rupees, especially under the head of subsiding utility by increasing yield, improving quality, and
costs. An official of the ministry of commerce decreasing cost of production, and strengthening the
informed that government would provide electricity Man-Made Fibre (MMF) sector to make this chain
and gas at regionally competitive rates throughout export-oriented as well as supporting textiles and
the policy years to the export-oriented sectors. The apparel value-chain for not only baseline monitoring
government has fixed the exports target for the reports (BMR), but also new capacities.

No GSP Status: China

moving towards becoming

a mature economy

According to the General Administration of Customs recent announcement does not respond to these
of China (GACC), which recently, in a statement, countries' recent decision to revoke China's GSP
applauded the move as the country is 'graduating' status, rather a retiring of a service that is no longer
from the generalized system of preferences program required for these countries.
and is moving towards becoming a mature economy.
Starting December 1, 27 European Union (EU) GSP is a preferential tariff system that reduces tariffs
nations, the United Kingdom, Canada, Turkey, on certain imports from developing countries (the
Ukraine, and Liechtenstein, will no longer grant China 'beneficiary country'). The system is non-reciprocal,
this treatment, leaving the nation eligible for GSP which means that the beneficiary country does not
trade benefits from only three countries—Norway, have to grant the developed country (the 'donor
New Zealand and Australia. Therefore, the GACC's country') the same tariff reductions.

October/November 2021