Indonesian Textile Producers Cheer US Withdrawal From TPP

Indonesian Textile Producers Cheer US Withdrawal From TPP


Jakarta — Indonesian textile and garment producers look forward to a level playing field in the United States after President Donald Trump decided to withdraw from the Trans Pacific Partnership trade pact, a representative of thr local textile business association said. The Southeast Asian nation now expects to export US$4.8 billion worth of textiles and garments to the U.S. this year, accounting for 39 percent of the archipelago’s total ¬†textile and garment exports, according to the Indonesian Textile Association, or API. ¬†Last year the U.S. accounted for only 36 percent of the country’s total textile and garment exports. ¬†“The U.S.’ decision to quit the Trans Pacific Partnership pact will benefit our textile industry. We can now compete with at the same price point as the other textile exporters,” said API Chairman Ade Sudrajat said early this week. Neighboring countries such as Vietnam ¬†and Malaysia used to enjoy an import duty leeway for being a TPP member country, while Indonesian textile products are subject to 10 percent import duty when entering the U.S. market, said Ade. ¬†“President Trump’s decision to withdraw from the TPP should work in our favor. ¬†We can now compete on a level playing field,” he said. Signs for increase for U.S. textile orders have already surfaced with local producers reporting more U.S. buyers have inquired about products and pricing. “In terms of enthusiasm, things are already a lot better than last year,” Ade said. U.S. market picking up should also help counter the drawback Indonesian textile producers are experiencing in the European Union markets, Ade said. ¬†There, Indonesia has face stiff competition from Vietnam, which gets an import duty of 0 percent ¬†under EU’s preferential treatment for its low and middle income partners. ¬†Indonesia, as a member of G20, is no longer deemed as middle income country and has to pay 12.5 percent import duty, Ade said. Indonesia and EU are negotiating on a bilateral trade agreement that will address this import duty issue. “We expect negotiations with the EU could be completed quickly,” Ade said.

Source: thejakartaglobe