Swaziland'S Textile Exports Will Meet The "EU Tax Exemption" Treatment.

The textile industry in Swaziland, a landlocked country in southeastern Africa, is seeking to establish an economic cooperation agreement with the European Union, which will allow foreign entry products to be duty-free.

It is reported that Swaziland is applying for EU assistance and hopes that the EU can immediately pass the economic cooperation agreement.

The European Commission for the development of Africa has revealed that once the economic cooperation agreement is ratified, the countries in the agreement will immediately benefit from the exchange of goods on the border.

The European Union's decision to assist the Swaziland accord will hold a seminar in Mbabane, capital of Swaziland.

This seminar will discuss the future of member states in the agreement.

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Since Swaziland was excluded from the US aid list in January 2015, the domestic textile industry has been greatly affected. The signing of this agreement is undoubtedly a timely relief for Swaziland's textile industry.

Through this agreement,

It will become more competitive and attractive to investors, because investors can enter the EU market through investment in Swaziland.

The agreement will open 9600 categories of products to the European Union, and all these products are duty-free.

It is worth mentioning that the agreement is a permanent trade agreement.

Since Swaziland was excluded from the US aid list in January 2015, the domestic textile industry has been greatly affected by the signing of the agreement for Swaziland.

There is no doubt that it will be timely.

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In the absence of a sharp decline in raw material prices, it may force some suppliers to try to increase the price of their goods shipped to the EU to maintain their profitability.

It is inevitable that such a price increase will lead to an increase in unit price and may lead to further reductions in imports by importers.

Perhaps, suppliers may choose to shift their focus to other more profitable markets, such as the United States.

Under such circumstances, the EU textile and garment industry may reduce pressure from imports, which may provide some opportunities for EU enterprises to replace local imports with local products.

However, in recent years, losses in the European Union industry are unlikely to have enough capacity to absorb demand for such goods.

Therefore, the main benefits of reducing import pressure may be pferred to neighboring countries that trade in euros, have relatively low labor costs, and have maintained a large number of manufacturing capabilities.

In this case, the beneficiaries may be included in the Mediterranean coastal countries, especially Turkey.

According to Ruan Deshun, President of Vietnam leather, footwear and luggage Association, exports of Vietnamese footwear, bags and umbrellas in 2015 were nearly 15 billion dollars, up 16% over the same period last year, of which exports to the Chinese market increased by nearly 50%.

Ruan de Shun said that the target of Vietnam's footwear exports in 2016 was 17 billion US dollars, up 16-20% over the same period last year, because Vietnam signed a free trade agreement with the European Union and South Korea.

In the first two months of 2016, the EU Court announced that the anti-dumping provisions against certain leather footwear imports in Vietnam were partially invalid, which reduced the resistance of Vietnam's footwear exports to the European Union.

Vietnam is ranked fourth in the world in terms of footwear exports, ranking behind China, India and Brazil, but only after China and Italy in terms of export volume.

According to Ruan Deshun, Vietnam's exports to traditional markets increased in 2015, except for China, its exports to the United States increased by over 25% and the EU growth exceeded 10%.

Previously, the EU was the largest consumer area of Vietnamese footwear, but in 2015, the United States for the first time became the largest importing area, with an import volume of nearly US $5 billion.