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Related Keywords: and material supply., country will not have to bear many trade barriers, create huge impetus for Vietnamese garment, if comes into force, in terms of cost, market scale, RCEP, Regional Comprehensive Economic Partnership, textile sector, The RCEP covers sixteen countries, to bring in numerous benefits, Vietnam is joining negotiations

Vietnam is joining negotiations for the Regional Comprehensive Economic Partnership (RCEP). The RCEP, if comes into force, will create huge impetus for Vietnamese garment, textile sector as the country will not have to bear many trade barriers.

The RCEP covers 16 countries, including 10 members of the Association of the Southeast Asian Nations and their regional trading partners of China, Japan, South Korea, Australia, New Zealand and India.

Related Keywords: alternative export market, focused trad policy supply, improve export market access from China under RCEP, Indian Texpreneurs Federation, moving up value chain, natural trhreat for Indian textile industry, RCEP, reduction of Chinese import, relocating to Vietnam, textile industry can touch export target, Transpacific Trade Partnership

The Transpacific Trade Partnership (TTP) is a natural threat for the Indian textile industry as exporters from TPP member countries (of which India is not a member) tend to get preferential access to the US market, but textile industry of India can still touch the export target of $300 billion by 2025 with focused trade policy supply and by moving up the value chain, according to the secretary of Indian Texpreneurs Federation (ITF) D Prabhu.

Related Keywords: await the full text of the TPP, duty disadvantage at home, expand outside India, hurt exports of textile items to Vietnam, Indian textile and garment companies, moving to select TPP countries, potential risk of investment and employment, RCEP, shift base to Vietnam, TPP, yarn-forward rule

The Indian textile and garment companies facing duty disadvantage at home, some have already prompted to expand outside India in recent years. Moreover, with the recently negotiated Trans-Pacific Partnership (TPP), some more the Indian companies may shift their base to Vietnam to grab the advantage of duty-free access to the US and other TPP markets, like they did some years ago to Bangladesh to take the benefit of duty in exports as well as low labour costs, according to analysts.

Related Keywords: APEC, between TPP members, DBS, diversion of service trade, global trade, improved market access, might erode India's market share, Negotiations on-going with the ASEAN, RCEP, Singapore banking group, tariff reductions, TTP agreement

The Trans-Pacific Partnership (TPP) which includes a group of 12 countries, led by the US reaching a tentative agreement earlier this week, concern is whether improved market access, tariff reductions and diversion of service trade between the TPP members, as and when it becomes effective, might erode India's market share. However, real impact is likely to be smaller as the TPP is likely to take years to implement.