In order to boost exports, Apparel Export Promotion Council (AEPC) has urged the commerce ministry to start negotiations for a preferential trade agreement with the UK. AEPC Chairman A Sakthivel said that the agreement would help in removing the customs duty disadvantages faced by domestic players in the UK.
Under a preferential trade pact, two countries significantly reduce or eliminate customs duties on certain numbers of goods to promote trade ties. AEPC Chairman also said that India has been losing out to its competitors in the UK and hence request to initiate discussions for an early trade pact.
As per the chairman, apparel exports to UK, which is India's third largest export destination after the US and UAE, have been facing a tariff disadvantage of 9.6 per cent as against countries like Bangladesh due to the EU's Generalised Scheme of Preferences (GSP), which the UK plans to continue offering to the LDCs.