The EU decided to terminate the GSP of India textile

         According to India "Financial Express" reported in November 25,2013,the EU decided to terminate the GSP of India exports of textiles,chemicals,minerals,leather products and motor vehicles etc,the decision will become effective from January this year.The other more items will be terminated that is including bicycle,aircraft,spacecraft,ships etc..The Indian government will request the EU to reconsider its decision.
         If the end of the low tariff system,India's exporters will be forced to pay an additional value of 6-12%,make the products more expensive.India exports to the EU which is 17% of their totally export,from 2012-2013 it has shrunk 4% to 50 Billion USD.
         Reportedly,India Ministry of Commerce & industry will protest against the European Union since January this year to give zero tariff treatment to determine Pakistan textiles.According to the Indian government says,the move will affect the regional competitiveness of the textile industry in India.The textile industry is India's second largest create employment opportunities of the industry,second is agriculture.This will enable Pakistan clothing,accessories exports to the EU has 10% tariff advantage.
         The termination of giving India commodity specific GSP act is to redesign the system.Hope that the EU will have been integrated into the world trade advantage of developing countries out of the system,and focus on the backward countries demand.India textile exports are excluded from GSP and abroad because of its exports to the EU than the textile imports from China from 14.5%.Under EU rules,other products out of the threshold is 14.5%.

By Emily