India has called for action to curb nontariff barriers, address trade distortions caused by non-market economies, and restore a strong dispute settlement mechanism at the WTO, Commerce and Industry Minister Piyush Goyal said on Wednesday. The minister also pitched for strengthening the current consensus-based approach at the World Trade Organisation (WTO), the special and differential treatment given to less developed countries and developing countries and bringing back focus on issues that have already been finalised and mandated at previous ministerial meetings. "India made a strong pitch for addressing non-tariff barriers that certain countries use to deprive others of market access, take necessary action against non-market economies, ensure that we have a strong dispute settlement mechanism at the WTO so that finality can be brought and discipline can be maintained," Goyal told reporters here.
The minister made these remarks in a meeting of about 25 ministers of WTO member countries, including Australia, Singapore, France and Nigeria. WTO Director General Ngozi Okonjo-Iweala also participated in the meeting. This mini-ministerial informal gathering was called by Australia ahead of the 14th ministerial conference, scheduled in Cameroon in March next year. It was held on the margins of the OECD (Organisation for Economic Co-operation and Development) Ministerial Council Meeting here.
The WTO deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. It is a Geneva-based 166-member body. Since 2009, the WTO's dispute settlement mechanism has not been functioning properly as the US has stalled appointments of members in the appellate body. On earlier occasions, India has pressed for a two-tier dispute resolution system at the WTO. "All in all, the shared concerns of all the ministers were placed before the gathering today, and we have all resolved to collectively work to strengthen the working of the WTO, to ensure the core principles are respected and work towards global good and global growth in trade," he said.
He added that it was agreed upon by the member nations to make an effort to bring back the mojo into the organisation as all countries recognise the importance of multilateralism. The other tracks which came up for discussion include resolving agri issues, including finding a permanent solution to the issues of public stockholding for food grains. "There is the track on finding solutions to address the concerns of overfishing and indiscriminate fishing that is leading to depletion of fish stocks, there are concerns about several JSIs (joint statement initiatives) (or) pluri-laterals, which some countries believe should be brought within the multi-lateral framework," he said. On the China-led proposal for an investmentfacilitation pact, he said, issues that have been mandated at the WTO should get priority and should be the first issues to be resolved. Issues going beyond trade (like this proposal) should not be brought into it as it would create further differences between member countries, he added. India is against this proposal. Whether any member raised the issue of MPIA (multi party interim appeal arbitration arrangement), the minister said only one or two members spoke about that. "But there does not seem to be very much consensus or any traction to that idea. I have not heard of any cases resolved through MPIA," he said. The MPIA is being pushed by certain members. It is an alternative mechanism to resolve WTO disputes that are appealed by a country in the absence of a functional WTO Appellate Body. Whether the WTO is facing an existential crisis, he said that one should not jump to the conclusion that an existential crisis has been created. "Challenges will come and situations will arise, we have to address such challenges, face these situations and within the ambit of the WTO framework," he said, adding "the WTO now is about 30 years old, what we need to do is work with an open mind and unlock possibilities".
Source: The Economic Times
Piyush Goyal asked businesses to identify areas of trade where the two sides can help each other in crossing the Rubicon of regulation. "Indian businesses are foxed navigating between the EU regulations and individual regulations in member countries," Goyal said while addressing businesses of India and France.
Source: The Economic Times
The Russia-Ukraine conflict escalation poses a significant threat to the global economy, potentially impacting energy prices and overall growth. Trade policy uncertainties, particularly US tariffs, are already affecting consumer and business confidence, leading to downgraded growth forecasts and increased inflation risks. Despite global headwinds, India remains a growth champion due to strong investment, consumption, and continued reform momentum.
Source: The Economic Times
Finance Minister Nirmala Sitharaman urged the Directorate of Revenue Intelligence (DRI) to target major players and uncover systemic risks amid evolving geopolitical and trade challenges. She emphasized the importance of a robust intelligence network for fraud detection to ensure fair trade practices. Sitharaman also advocated for deeper integration of technology and inter-agency coordination to combat smuggling and narcotics effectively.
Source: The Economic Times
Union Minister for Commerce and Industry Piyush Goyal met with Israel's Minister of Economy Nir Barkat in Paris on Tuesday (local time). The discussions focused on diversifying the trade basket, fostering innovation, and strengthening cooperation in high-tech and emerging sectors. In a post shared on X, Piyush Goyal stated, "Excellent meeting with Israel's Minister of Economy and Industry, @NirBarkat, in Paris. Our discussions focused on diversifying our trade basket, fostering innovation, and strengthening cooperation in high-tech and emerging sectors, paving the way for the next phase of our partnership."
Goyal addressed the India-France Business Conference, highlighting the 'India Opportunity', driven by a skilled and talented workforce and the government's commitment to ease of doing business, and how it offers promising avenues for French firms.
During the interaction, Goyal encouraged companies from India and France to collaborate by building on shared interests and leveraging each other's competencies. He emphasised that deeper engagement between the businesses of the two nations will play a key role in strengthening the strategic partnership between India and France.
In a post on X, Goyal stated, "It was a pleasure to address the India-France Business Conference, which brought together several Indian and French companies. Highlighted the 'India Opportunity', driven by a skilled & talented workforce and the government's commitment to ease of doing business, and how it offers promising avenues for French companies. Encouraged companies from both sides to collaborate by building on shared interests and leveraging each other's competencies. Deeper engagement between our businesses will play a significant role in further strengthening the India-France strategic partnership."
Source: Business Standard
Commerce and Industry Minister Piyush Goyal on Tuesday held a meeting with Singapore's Deputy Prime Minister Gan Kim Yong and discussed ways to boost economic ties and huge opportunities in the Indian shipping sector. Goyal is here on an official visit to meet French leaders and businesses to host trade and investments between the two countries. In the last three-days, the minister has held a series of meetings with top CEOs and ministers, including International Energy Agency ED Fatih Birol, Nigeria's trade minister Jumoke Oduwole, French minister of economy and finance Eric Lombard, automotive supplier company Valeo Group CEO Christophe Perilat, and L'Oreal Groupe CEO Nicolas Hieronimus and highlighted huge investment opportunities in India. Goyal, in a post on X, said that he held a meeting with Gan Kim Yong, Singapore's Deputy Prime Minister and Minister for Trade and Industry. "Discussed enhancing our bilateral trade & investment ties. Also, highlighted the tremendous opportunities India offers across various sectors, especially in the shipping sector," he said. Discussions on the shipping sector assume significance as India is key to promote growth in this segment, as it will help boost trade and cut transportation costs for businesses. Indian exporters faced several challenges during the Red Sea crisis, with freight rates surging sharply due to high charges imposed by foreign shipping lines. The Union Budget has placed strong impetus to realise the huge potential of India's shipping sector. The Budget proposed to set up the Maritime Development Fund (MDF) to support India's Maritime sector by providing financial assistance, via equity or debt securities. This fund will directly benefit financing for ship acquisition. It aims at boosting Indian flagged ships' share in the global cargo volume up to 20 per cent by 2047. Further, the indigenous fleet will reduce the dependability of foreign ships, improve the Balance of Payment and secure the Strategic interests of the country. By 2030, MDF is aiming at generating up to Rs 1.5 lakh crore investment in the shipping sector.
Source: Business Standard
About 100 garment and textile exporters from different textile clusters in the country will put up stalls at Texpo 2025, an exhibition focusing on sustainability, to be held in Germany from September 16 to 18. Organised by the Tirupur Exporters and Manufacturers Association (TEAMA) and Texpo Global Projects, the event is supported by the Tamil Nadu government and will have nearly 30 exhibitors from Tiruppur.
There are plans to have a similar expo in the US too. The exhibitors will be supported to go online with their products for business to business opportunities. Buyers will be identified in Germany and they will participate in the buyer-seller meet to be held during the three days in Germany. The organisers have tied up with multiple international agencies who will help prepare samples for the buyers, etc. The focus will be on sustainability, circular economy, innovation. The sellers will be certified manufacturers, the organisers said. A roadshow was held in Tiruppur recently and similar meetings will be held in Karur, Surat, Ludhiana, etc.
Source: The Hindu
The Chinese Enterprises Association in Bangladesh (CEAB) and the China Chamber of Commerce for Import and Export of Textiles (CCCT) recently signed a memorandum of understanding (MoU) in Dhaka aimed at enhancing bilateral cooperation in the textile and apparel sector. The aim is to create a long-term framework for cooperation that will drive the development of the textile and apparel industries in both the countries. The agreement focuses on joint exhibitions, trade promotion and advancing sustainable innovation in textile manufacturing, a CEAB statement said. The signing ceremony coincided with the official visit of a high-level delegation from China to Bangladesh at the invitation of the Bangladesh Investment Development Authority (BIDA), domestic media outlets in Bangladesh reported. CEAB’s textile and garment branch president Ge Zhenyu and CCCT vice chairman Zhang Xi'an signed the MoU.
Source: Fibre2fashion
KARACHI: Key stakeholders in Pakistan’s textile sector have jointly urged the government to immediately abolish the 18 per cent general sales tax (GST) on locally produced cotton, yarn and fabric, or else impose it equally on imported yarn and fabric, warning that the current policy is severely damaging the domestic industry.
Addressing a joint press conference at the All Pakistan Textile Mills Association (APTMA) House in Karachi on Tuesday, Central Chairperson APTMA Kamran Arshad was joined by Chairperson of the Karachi Cotton Association (KCA) Khuwaja Zubair; Mahesh Kumar, a representative of the Pakistan Cotton Ginners Association (PCGA); Convenor of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Cotton Committee Sham Lal; and other industry leaders including former APTMA central chairperson Asif Inam and Yain Siddik.
The speakers condemned the policy of applying 18 per cent GST on local supplies while maintaining zero-rating on imported inputs, calling it “an anti-Pakistan policy that is bleeding the economy from within”.
While the sales tax on local cotton and yarn is technically refundable, the group pointed out that refund processing is riddled with delays, underpayments, and bureaucratic inefficiencies. “Only 60-70 per cent of refunds are processed, and the rest have been stuck in manual systems for 4-5 years,” they claimed. Small and medium enterprises (SMEs), in particular, face significant disadvantages due to these delays.
The textile industry leaders insisted that they are not opposed to exports but are demanding a level playing field. They argued that the EFS, intended to boost exports, has instead led to an increase in imports of cotton and yarn. “Exporters are now overwhelmingly preferring imported inputs, sidelining local suppliers,” they said.
Providing data to support their claims, the speakers noted that imports of cotton, yarn, and greige fabric surged by $1.5 billion -- from $2.19 billion in FY24 to $3.64 billion in FY25 -- while textile export growth during the same period stood at only $1.4 billion. As a result, net textile exports are expected to fall from $14 billion to $13.6 billion.
The speakers also sounded the alarm on the broader impact of the policy on Pakistan’s textile ecosystem. They reported that more than 120 spinning mills and 800 ginning factories have already shut down, with loom closures triggering protests by workers on the streets of Faisalabad. “This is not just about factories -- it is about livelihoods,” they stressed.
They highlighted that the cotton economy supports between $2 billion and $3 billion in rural incomes, particularly for women involved in cotton picking. The imposition of 18 per cent GST on cottonseed and cottonseed cake -- which they said is unheard of anywhere else in the world -- is pushing farmers’ incomes below sustainability levels and disproportionately affecting the poorest.
The group further claimed that the current policy framework is costing Pakistan as much as $1.5-2 billion in potential net foreign exchange earnings. “Instead of generating local value, we are borrowing expensive loans to pay for avoidable imports,” they warned.
With cotton being Pakistan’s primary import from the US, the speakers noted that Washington has indicated a willingness to export up to 1.5 million bales to Pakistan. US President Donald Trump has also extended an invitation to a Pakistani trade delegation, proposing to double or even triple cotton exports to the country. “But to absorb such volumes, Pakistan needs a viable and operational spinning industry,” they cautioned.
The group urged the government to restore the EFS to its June 2024 status, reinstating zero-rating for local supplies. “We have held meetings with the finance minister, FBR leadership, and even IMF representatives. However, the IMF has so far refused to support the restoration of zero-rating,” they said.
Source: The News PK
