Global textile industry reshaped by FTAs, tariffs: Dr. Amit Lath

04 Aug '23

2 min read

Pic: Shutterstock/voy ager

Insights

Dr. Amit Lath, CEO of Polish textile firm Sharda Group, revealed in an interview with Fibre2Fashion that FTAs and tariffs have reshaped the textile industry.
By easing cross-border movement and reducing tariffs, complex global supply chains have emerged, enhancing cost-efficiency.
However, geopolitical dynamics and trade policy changes present challenges.

The global textile industry has been significantly reshaped by international trade agreements and tariffs, according to Dr. Amit Lath, CEO and managing partner of Polish textile company Sharda Group. In a recent interview with Fibre2Fashion, Dr. Lath elaborated on how trade agreements, such as free trade agreements (FTAs) and regional pacts, have eased the cross-border movement of textiles by lowering tariffs and trade barriers. This has led to the creation of complex global supply chains, with companies sourcing materials from various countries to cut costs and capitalise on comparative advantages.

“This fragmentation of production processes has accelerated production and enabled cost efficiencies. Furthermore, trade agreements have enhanced the competitiveness of textiles by creating more equitable conditions for manufacturers across countries. Lower tariffs and improved market access allow exporters to compete more effectively in international markets and expand their customer bases,” Dr. Lath told F2F.

However, the global landscape is not without its challenges. Dr. Lath warned that geopolitical dynamics and changes in trade policies might disrupt supply chains, and companies must stay adaptable and responsive to mitigate such risks. “Compliance with rules of origin and trade regulations is also critical for accessing preferential treatment, impacting supply chain decisions and competitiveness,” he added.

Dr. Lath also stressed on the importance of innovation and product differentiation as crucial strategies to maintain a competitive edge and global brand recognition in the face of these challenges and opportunities.

Click here to read the full interview.

ALCHEMPro News Desk (NB)

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