The Indian jewellery industry is unlikely to get the full benefits of European Union?s (EU) generalised system preferences (GSP) scheme that extends for three years, from January 2009 to the end of 2011. The GSP is an autonomous trade arrange ent through which the EU provides European markets non-reciprocal preferential access to 176 developing countries and territories in the form of reduced tariffs for goods entering EU markets.
?I don?t think the industry will get the full benefits as our trade volume with EU markets is small and tariff- rates in the most EU countries are very low. In fact, our major trade partner is the United Kingdom which is not a EU member,? Sanjay Kothari Chairman, GJEPC, said on the sidelines of a pre-launch conference of the India International Jewellery Show 2008 (IIJS) event in Mumbai.
The current three-year phase of the GSP is set to expire at the end of 2008. As per the re-establishment of preferences under the new GSP scheme, India may get major benefits in sectors of jewellery, pearls, precious metals and stones. ?The total trading volume with the EU market is estimated to be around $1 billion,? Kothari added.
As a result of the re-calculation of trade data for the period 2004-06, GSP preferences will be re-established for six countries (Algeria, India, Indonesia, Russia, South Africa and Thailand) which will be implemented by a council regulation applicable for a period of three years.
Providing the details about the IIJS show, Kothari said the event would be held from August 7-11 in Mumbai and has pavilions of seven new countries including from Belgium, Thailand, Japan, Dubai, Turkey, Israel and Italy.