Trade Policy Updates (From 30th July to 04th August 2018)
1) GST Council allowed input credit, to reduce effective rate on fabric to 5%.
Synthetic textile manufacturers are planning to cut the prices of their products by at least 5% from August following the government’s decision to reduce the effective GST (goods and services tax) rate on its raw materials by 7% from July 27.
2) Cotton sector leaders from the US want Bangladesh to lift the old fumigation rules on the import of US cotton as the process imposes an additional cost burden on the importers and spinners and results in increased lead time.
3) Indicating a u-turn in their trade relations, the United States and the European Union have agreed to launch a new phase in their relationship, including working together toward zero tariffs.
4) The Cabotage rules have been relaxed for movement of cotton from Gujarat to Tamil Nadu.
5) Industry bodies from Taiwan and Myanmar recently signed two memoranda of understanding (MoUs) including garments and textiles.
Technology transfer from Taiwanese firms is the priority as Myanmar plans to expand its manufacturing capacity in export-oriented sectors like garments and textiles.