The current trade balance between the European Union and India in textiles and clothing is hugely tilted in India’s favor. The EU annually imports clothing and textiles worth over €6 billion from India while exporting just half a billion worth of these products to India. India can leverage this opportunity by entering a free trade agreement with the EU. This agreement will enable the Indian market to acquire high-quality and innovative products from the European textile and clothing companies besides solutions to reduce the environmental footprint of the textile industry.
Explore new open and efficient markets
The India-EU FTA also offers an opportunity to the Union to make its trading system more fair and sustainable, introduce new rules and environmental and social standards that are respected by all. According to Euratex, the India-EU FTA will enable textile and clothing companies to explore new open and efficient markets besides introducing effective control where necessary. It opines, the FTA will provide EU producers the same level of access to Indian market – both in terms of tariff and non-tariff barriers. European companies today face non-tariff barriers while accessing the Indian market. They have to also deal with national or state-level support programs that are more favorable for Indian companies than EU.
Aligning with India’s sustainability goals
Euratex also recommends applying level playing field to sustainability targets. It recommends aligning the India-EU FTA to EU Textile Strategy. Dirk Vantyghem, Director General opines, the FTA provides EU an opportunity to align its sustainability goals with Indian industry and create a regulatory framework for companies to compete in a free and fair environment. With around 154,000 companies employing 1.47 million workers, the EU textile and clothing industry drives local economies across many EU regions. The industry has commercialized several high added value products in growing markets around the world.
Creating a favorable environment for companies
The voice of the European textile and clothing industry, Euratex strives to create a favorable environment within the European Union for design, development, manufacture and marketing of textile and clothing products. The organization works with EU institutions and other European and international stakeholders to develop an ambitious industrial policy, effective research, innovation and skills. It also aims to ensure free and fair trade, and sustainable supply chains.