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This is an archive article published on July 21, 2003

EU’s trade disputes up textile export to USA

Thanks to the ongoing trade disputes with the European Union (EU) and quota related tangles in the bed linen case, Indian exporters of cotto...

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Thanks to the ongoing trade disputes with the European Union (EU) and quota related tangles in the bed linen case, Indian exporters of cotton made-ups, including bed linens, are increasingly shifting their attention to the USA.

The overall demand for the quotas for cotton made-ups have been rising substantially compared to the quotas available. Exports to quota countries during the six-month period to June 2003 were higher at $676.82 million against $574.20 million in the same period last year, thereby recording an increase of 17.87 per cent. Despite losing the anti-dumping issue against Indian bed linen last year, EU has now initiated investigations against eight bed linen exporting companies including Bombay Dyeing and others. This has prompted the exporters of these articles to shift their attention to the US where there are no quota and WTO related trade disputes.

According to Textile Export Promotion Council (Texproci) Executive Director Siddhartha Rajagopal, “the bed linen exports to USA have shot up considerably over the past one year, more so because of the rising trade related disputes”. This can be seen from around 60 per cent jump in exports of cotton made-ups during the five months to May 2003.

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