How is it that India’s textiles and apparel exports get adversely affected in the 28-member European Union, United States and China? The reason is not far. It is the duty disadvantage faced by India vis-à-vis its competitors. EU’s Generalised System of Preferences (GSP) is applied discriminately. Pakistan and Bangladesh receive duty-free access in the EU because the former is a GSP beneficiary, while the latter is a least-developed-country (LDC). The GSP benefits are also made available to Turkey (an EU member), which also enjoys logistic advantage due to proximity to the EU.

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