Lanka-China FTA will boost apparel exports

A US $8 billion global apparel giant, one of the world's largest shirt makers, has reportedly shown keen interest in the Lanka-China FTA to be signed soon. "Having duty free market access to China is important for us as an apparel sourcing firm and the benefits are great," Executive Vice President, Global Supply Chain of New York's PVH Corporation, Mark Green told Industry and Commerce Minister Rishad Bathiudeen when he met him in Colombo recently.

"Things are going well with PVH. Recently we opened an office at the WTC and reached US $80 million in business with Sri Lanka," he said.

"Since we acquired the global brand Calvin Klein, the intimate apparel product line has become important in our turnover. We are exploring the possibility of working with Lankan apparel makers MAS, Brandix Jinadasa, and Hirdramani Group - they are our biggest suppliers," the Vice President said.

"We want to grow our business here further. Sri Lanka produces quality apparel, particularly intimate apparel," Green said.

"We source from around the world and Sri Lankan apparel is a role model for other countries to study and follow - because when you look at what you have done in intimate apparel, its remarkable. The lean manufacturing model which MAS started is probably one of the best in the world," he said.

"Sri Lanka is also considered to be a world expert in apparel manufacturing - in compliance record, CSR and sustainability such as carbon neutral factories.

Compared to other apparel producers in the region, Sri Lanka is way ahead and should be credited for that. PVH is seen as an American corporate but we are in fact global in nature," Green said.

"We are excited about the forthcoming Lanka-China FTA - having duty-free market access to China is important for us as an apparel sourcing firm and the benefits are great. This is even more important for us since we have considerable income from Asia - 30% of our turnover from Calvin Klein brand alone originates in Asia," he said.

The New York Stock Exchange listed PVH Corp (or Phillips-Van Heusen) is one of the largest lifestyle apparel companies in the world. Most of its brands are virtual household names.

PVH has 2,035 stores across the world, 1,025 of which are in Europe. PVH's 2013 revenue projection stands at US $8 billion. Minister Bathiudeen said, "The Sri Lanka-China FTA would create great opportunities for both countries. We have concluded joint feasibility studies. We have started the second round of negotiations. One of the items we hope to make duty-free may be apparel."

"We hope to sign the free trade pact during the forthcoming visit of the Chinese Premier to Sri Lanka.

There is no doubt that the historic agreement would be a great opportunity not only for PVH but many such multinationals which want to leverage our strategic hub position," he said.

According to Department of Commerce sources, bilateral trade between Sri Lanka and China grew by 15.2% in 2013 to US $3.08 billion compared to US $ 2.67 billion in 2012. Sri Lanka's exports to China in 2013 rose by 12.49% to US $122 million compared US $108.12 million in 2012. China is within the first 20 export destinations for Sri Lankan products.