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Trade News

Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.


Indian apparel manufacturers eye

Tuesday, October 10, 2017 > 11:00:32


Indian apparel manufacturers are eyeing export opportunities in Canada following a claim that the country's clothing and textile industry offers a huge opportunity for Indian exporters who can "fill the gaps" in the Canadian market including its FTA partners.

The claim comes in the wake of the second edition of the Apparel Textile Sourcing Canada (ATSC) show, which saw a 67% spike in visitor numbers this year, compared to last.

According to ATSC director John Banker, the country offers Indian apparel manufacturers "huge scope" for expansion.

"Apparel trade data of Canada shows that exporters of India have a huge scope for expansion and growth to fill the gaps in the Canadian Market including its FTA partners," Banker explains. "Canada's FTA with the United States, Mexico, Chile, Costa Rica and Honduras contain tariff preference level (TPL) provisions for certain textile and apparel goods being imported or exported within the respective free trade zones."

TPL-eligible goods are goods that do not meet the requirements of the FTA Rules of Origin but can still receive the same preferential tariff treatment as goods from the country of origin, up to a negotiated quantity.

Banker adds the total value of apparel production in Canada continues to decrease while apparel imports continue to rise. Since 2011, apparel imports have increased by CAD3.4bn (US$2.71bn) or 8.3% annually, on average, to total CAD12.5bn in 2015.

Dr Anurag Sinha and Sandeep Keshari of North American Brands Group, concur. "There are huge opportunities for Indian exporters; the apparel and textiles exports from India to Canada, is slated to double by 2020."

The Toronto-based international apparel and textile sourcing event, which made its début last year, included 300 local and international exhibits, three full days of seminars, panels and sessions by industry, government and fashion leaders, business matchmaking services, and a fashion runway event showcasing Canadian student and international exhibitor designs.

Along with the hike in visitor numbers, the show expanded by 50% on last year with participating countries including India, China, Bangladesh, Pakistan, US, UK, Canada, Turkey, Jordan, Switzerland, Vietnam, and Nepal.

Of the visitors to the show's second event, 45% were looking for apparel, 32% for accessories and 23% for textiles.

Indian participants attracted interest from brands including Canadian women's wear retailer Aritzia, fashion and footwear retailer Le Chateau, Walmart-Canada, Jockey-Canada, Canadian apparel manufacturer Gildan, and Canada Goose.

Other Trade and Development News

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