Canadas decision to slap a 20 per cent import duty on Indian ready-made garments and permit duty-free access to these items coming from Bangladesh from January 1, 2003 will escalate costs and thereby, adversely affect Indian exports. The Canadian buyers have also suspended sampling and ordering of garments from Indian suppliers for the next season beginning with the new year, according to the Apparel Export Promotion Council (AEPC).

The council apprehends that some of the orders finalised by the Indian exporters would also be badly hit.

Indias major textile export items to Canada include jackets, ladies co-ordinate dresses, trousers and shirts, pyjamas and night dresses, baby wear, bath robes, shorts and other outer garments. During the first quarter of the current fiscal, 16.9 million pieces of ready-made garments, valued at $48.5 million, were exported to Canada compared with 70.6 million pieces, valued at $220.8 million, during 2001-02 (April-March) as certified by AEPC.