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Related Keywords: accounts industrial output, export earnings, export of readymade garments and made-ups, increase dependency on US markets, Indian textile and clothing sector, post-Brexit turmoil in Europe, provides livelihood support, the US most important export market, TPP hurt Indian trade, Transpacific Partnership Pact, Yarn forward rule

Textile and clothing sector accounts for roughly 5 percent of India’s GDP, 15 percent of its industrial output and export earnings and provides livelihood support to 55-60 million people directly or indirectly. With India not a party to the Transpacific Partnership Pact (TPP) comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the US. TPP will hurt India’s trade with its most important export market — the US.

Related Keywords: apply to signatory countries, fabric produced from yarn, fiber manufacturing operations, involves twelve countries, made by TPP country, PSF, qualify duty free status, starting up or expanding, Trade agreement, Trans Pacific Partnership, under negotiation, United States led, US Trade Representative, Vietnamese companies, Yarn forward rule

United States led trade agreement Trans-Pacific Partnership (TPP) which involves twelve countries, is presently under negotiation. A key part of the proposed TPP is a rule known as “yarn forward” which would require that only fabric produced from yarn made by a TPP country would qualify for the trade agreement’s duty-free status. The rule is intended to ensure that the trade benefits of the TPP only apply to signatory countries rather than outside players such as China. However, the rule also likely to have major effects on signatory countries, such as Vietnam.

Related Keywords: lost RM5 billion, Malaysia, Malaysian textiles and clothing, textile trade balance, TPP agreemet, TPPA partners, yarn cost, Yarn forward rule

Malaysia being warned by group against the trade deal that with the signing of the Trans Pacific Partnership Agreement (TPPA) by year-end, it could stand to lose RM5 billion annually with the faster increase in imports than its exports.

The TPPA is a free trade agreement involving 11 countries namely Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

Bantah TPPA chairman, Mohd Nizam Mahshar, said that the bigger imports would result in an unfavourable trade balance with a net loss on the country.

Related Keywords: US textile industry, Yarn forward rule

The United States has become an increasingly attractive option for textile manufacturers, the key driver for surge in foreign direct investment is the success of U.S. trade policy in the textile sector. The Yarn-Forward rule has helped the U.S. textile industry become the third largest exporter of textile products in the world. U.S. textile exports have grown dramatically, from $12.7 billion in 2003 to $17.9 billion in 2013, a 40.6% increase over that period.