A partnership with academia

Building knowledge for trade and development

Vi Digital Library - Text Preview

Potential Supply Chains in Textiles and Clothing Sector in South Asia. An Exploratory Study

Case study by Das, Abhijit, Banga, Rashmi, Kumar, Dinesh, Razzaque, M.A., Ratna, R.S., Moitra, Snighda, 2010

Download original document (English)

The main objective of this study is to identify at HS six digit codes the potential supply chains that can be formed in the T&C sector (HS Chapters 50-63) within South Asia, which will enable South Asia to lower its cost of production and improve its global competitiveness. The analysis is undertaken for the four major economies of the region,namely Bangladesh, India, Pakistan and Sri Lanka. The benefits of regional integration in developing potential supply chains in South Asia are also addressed.




1






POTENTIAL SUPPLY CHAINS IN THE
TEXTILES AND CLOTHING SECTOR


IN SOUTH ASIA


An Exploratory Study
























































COMMONWEALTH SECRETARIAT





2


UNCTAD




Established in 1964, the United Nations Conference on Trade and Development


(UNCTAD) promotes the development friendly integration of developing countries into


the world economy. UNCTAD has progressively evolved into an authoritative


knowledge-based institution whose work aims to help shape current policy debates and


thinking on development, with a particular focus on ensuring that domestic policies and


international action are mutually supportive in bringing about sustainable development.


Three key functions of UNCTAD are: (1) to function as a forum for intergovernmental


deliberations, supported by discussions with experts and exchanges of experience, aimed


at consensus building; (2) to undertake research, policy analysis and data collection for


the debates of government representatives and experts; and (3) to provide technical


assistance tailored to the specific requirements of developing countries, with special


attention to the needs of the least developed countries and of economies in transition.






Commonwealth Secretariat


Established in 1965, it is the main intergovernmental agency of the Commonwealth – a
voluntary association of 54 independent states, making up almost one-third of the world‘s
population, a quarter of the world‘s governments and one-fifth of global trade, that
support each other and work together towards shared goals in democracy and


development. With a diverse membership of advanced industrial countries, emerging


economies, middle-income countries, least developed countries (LDCs), small island


states and landlocked developing countries, the Commonwealth both reflects and is a


microcosm of the wider world. Impartial and non-ideological, the Commonwealth


Secretariat implements the decisions agreed by Commonwealth Heads of Government,


provides technical assistance and advisory services, and policy advice on development


issues. Its direct access to policymakers and other relevant stakeholders facilitates the


organisation of projects, programmes and meetings, which provide members with


opportunities to reflect on past mandates, address emerging issues of mutual interest with


renewed commitments, and to share knowledge and best practices.





3


Note


The designations employed and the presentation of the material in this publication do not


imply the expression of any opinion whatsoever on the part of the Secretariat of the


United Nations or the Commonwealth Secretariat concerning the legal status of any


country, territory, city or area, or of its authorities, or concerning the delimitation of its


frontiers or boundaries.




Material in this publication maybe freely quoted or reprinted, but acknowledgement is


requested. A copy of the publications containing the quotation or reprint should be sent to


the UNCTAD Secretariat at: Palais des Nations, CH 1211 Geneva 10, Switzerland.








DISCLAIMER




The views expressed in this publication are those of the authors and do not necessarily


reflect the views of the United Nations Secretariat, nor the Commonwealth Secretariat.




4


ACKNOWLEDGEMENT




This study was prepared jointly by UNCTAD, Commonwealth Secretariat and the


Government of India Centre for WTO Studies. It was prepared under the


UNCTAD/Government of India/United Kingdom Department for International


Development Project on ‗Strategies and Preparedness for Trade and Globalization in
India‘. The study was prepared under the supervision, in UNCTAD, of Ms. Mina
Mashayekhi, Officer-in-Charge, Division of International Trade and Goods and Services,


and Commodities and Mr. Bonapas Onguglo, Senior Economic Affairs Officer; and in


Commonwealth Secretariat, by Mr. Edwin Laurent, Economic Affairs Division. The


study was prepared by a core team consisting of Mr. Abhijit Das Deputy Project


Coordinator, UNCTAD-India Project, Ms. Rashmi Banga, Senior Economist, UNCTAD-


India Project, Mr. Dinesh Kumar, consultant, Mr. M.A. Razzaque, Economic Advisor,


Commonwealth Secretariat, Mr. R.S. Ratna, Professor, Centre for WTO Studies, and Mr.


Snigdha Moitra, Research Assistant, Centre for WTO Studies.




The preparation of the study commenced with a brainstorming session which was


organized under the UNCTAD/Government of India/UK DFID Project in Delhi in


December 2009 and was attended by experts in textiles and clothing sector from


Bangladesh, India, Pakistan and Sri Lanka. The authors are grateful to the inputs


provided on the discussed methodology by Dr. Selim Raihan (Executive Director


SANEM-Dhaka), Mr. Md. Shafiul Islam (2nd Vice President, BGMEA), Mr. D.K. Nair


(Secretary General, Confederation of Indian Textile Industry, India), Mr. Nasim Qureshi


(Additional Secretary/Director-General, Research, Development and Advisory Cell,


Ministry of Textile Industry, Pakistan), Mr Khalid Mahmood (Executive Director, Centre


for Enterprise, Trade and Development, Pakistan), Dr Safdar Sohail, Director General,


Pakistan Institute of Trade and Development and Dr Saman Kelegama (Executive


Director Institute of Policy Studies, Sri Lanka).




The initial draft of the study was presented in a regional meeting in Bangladesh and Sri


Lanka. The consultative meetings with the industry and policy makers were organised by


SANEM (Dhaka) and IPS (Colombo). The authors are grateful to all the participants of


these meetings for their comments and suggestions. They also are extremely grateful to


Professor Mustafizur Rahman, Executive Director, Centre for Policy Dialogue, Dhaka for


his support and important insights into the study.






















5




FOREWORD



We are delighted that the United Nations Conference on Trade and Development
(UNCTAD) and the Commonwealth Secretariat have effectively collaborated to
prepare this important study entitled, Potential Supply Chains in the Textiles and
Clothing Sector in South Asia: An Exploratory Study.

South-South Cooperation has been an important area of work for both UNCTAD and
the Commonwealth Secretariat. Over the years the two organisations have
implemented programmes to provide technical support and advice and facilitate
exchange of ideas amongst policymakers and other stakeholders aimed at promoting
trade and investment flows between developing countries. The importance of such
cooperation, has quite rightly recently been catapulted into prominence with the
growing significance of a number of developing countries in the global economy that
have now become important sources of trade and investment flows for other
Southern countries.

While individual nations in South Asia are amongst the world’s fastest growing
economies, as a region it is considered to be least integrated. Despite an overall
impressive output and export growth record, the intra-regional trade in South Asia
accounts for just about 5 per cent of their total merchandise trade. It is possible to
expand regional cooperation beyond trade in goods, and it is in this respect that
policymakers and civil society groups in the region have been assessing and
emphasising on greater cross-border collaboration involving services, tourism, and
infrastructure development.

However, quite interestingly and strikingly, the present study finds that even in the
case of goods trade, there exists a tremendous potential for South Asian nations to
build supply chains based on industrial units located in different countries. This
collaborative applied policy research has considered the textile and clothing sector as
a case study to understand the scope of promoting regional trade and cooperation in
South Asia. The importance of the sector for the region cannot be overstated as it
provides direct employment to more than 55 million people while generating an
export volume of over US$ 37 billion in 2008. It is the source of close to 80 per cent of
total merchandise exports of Bangladesh followed by 55 per cent in Pakistan, 45 per
cent in Sri Lanka and 12 per cent in India.

In contrast to the generally perceived notion of South Asian neighbours not having
regional complimentarity in the textile and clothing sector as they compete amongst
themselves in world markets, this study finds some significant scope to promote
unexploited intra-regional trade which can actually enhance the competitiveness of




6


regional supplies. It maps out the production and export structures in different
countries in order to identify the potential cross-border linkages.

The industry specific approach utilised in this study, which analyses highly
disaggregated export datato provide information on the regional supply chains, will be
useful to policymakers and stakeholders directly associated with the relevant sector.
The findings of this volume will also have important bearings on the policy discourse
on regional cooperation and export competitiveness in South Asia.

The present study also shows the need for similar research involving other sectors not
only in South Asia but also in other developing country regions, particularly where
regional integration and South-South cooperation is considered to be an important
route to trade-led development.

We hope the study will serve as a commendable addition to the existing body of
knowledge on strengthening the participation of developing countries in supply chains
and regional cooperation.




7



TABLE OF CONTENTS



EXECUTIVE SUMMARY ............................................................................................ 10


1. INTRODUCTION....................................................................................................... 19


2. BROAD TRENDS IN TRADE IN TEXTILES AND CLOTHING SECTOR IN


SOUTH ASIA .................................................................................................................. 22


3. BRIEF PROFILE OF TEXTILES AND CLOTHING SECTOR IN THE


REGION. ......................................................................................................................... 26
3.1 Bangladesh‘s Textile and Clothing Sector: An Overview ...................................... 26
3.2 Indian Textile and Clothing Sector: An Overview ................................................. 29


3.3 Pakistan‘s Textile and Clothing Sector: An Overview ........................................... 33
3.4 Sri Lanka‘s Textile and Clothing Sector: An Overview ......................................... 37


4. BRIEF REVIEW OF LITERATURE ....................................................................... 40


5. METHODOLOGY FOR IDENTIFYING THE POTENTIAL SUPPLY CHAINS


........................................................................................................................................... 44


6. THREE STAGE SUPPLY CHAINS: COUNTRY-WISE ...................................... 47
6.1 Participation of Bangladesh in Potential Three-Stage and Two-Stage Supply


Chains ........................................................................................................................... 51


6.2 Participation of India in Potential Three- Stage and Two-Stage Supply Chain ..... 61


6.3 Participation of Pakistan in Three-Stage and Two-Stage Supply Chain ................ 70


6.4 Participation of Sri Lanka in Three-Stage and Two-Stage Supply Chains ............. 85


7. BROAD CONCLUSIONS AND POLICY IMPLICATIONS ................................ 91
7.1 Broad Conclusions .................................................................................................. 91


7.2 Issues to Consider and Policy Implications ............................................................ 94





8


LIST OF TABLES




Table 2.1: Share of South Asia in Global Exports of Textiles and Clothing (US$ Billion)


........................................................................................................................................... 22


Table 2.2: Global Exports and Imports of Textiles and Wearing Apparels of South Asian


Countries (US$ billion) ..................................................................................................... 22


Table 2.3: Share of South Asia and ASEAN in Global Exports of Textiles and Wearing


Apparels ............................................................................................................................ 23


Table 2.4: South Asian Countries Exports of Textiles and Clothing in 2007................... 23




Table 3. 1: The Textile and Clothing Sector of Bangladesh at a Glance .......................... 26


Table 3.2: Capacity Installed under Spinning Process (2007) .......................................... 30


Table 3.3: Production of Yarns in India (Million Kilograms) .......................................... 30


Table 3.4: India‘s Global Shares in Production of Fibres ................................................. 31
Table 3.5: Capacity Installation under weaving process in India (2007) ......................... 32


Table 3.6: Production of Fabrics in India (Million Square Metres) ................................. 32


Table 3.7: Production Input Cost Ranking of Selected Asian Countries .......................... 34


Table 3.8: Supply and Distribution of Cotton in Pakistan ................................................ 35


Table 3.9: Supply and Distribution of Cotton in Pakistan: Installed Capacity (in 000) ... 35


Table 3.10: Production, Exports and Domestic Requirement of Cloth in Pakistan .......... 36


Table 3.11: Value Added in Textile and Clothing Industry in Sri Lanka (Sri Lankan


Rupees Million at current prices) ...................................................................................... 38


Table 3.12: Salary of Worker By Skill And Location in Sri Lanka (US$/Month) ........... 39
Table 4. 1: Competitiveness of South Asian Countries in textiles and Clothing from


Literature ……………………………………………………………………………43
Table 6. 1 Number of Potential Three Stage Supply Chains and Number of Potential Products of


Import and Export 48


Table 6. 2 Global and Regional Imports of Identified Inputs in Potential Supply Chains: Average


of 2005-2007 ................................................................................................................................. 50


Table 6. 3 Output and Inputs of Potential Exports and Potential Imports in the Identified Three-


Stage and Two-Stage Supply Chains for Bangladesh: (using averages of 2005-07) .................... 52


Table 6. 4 Output and Inputs of Potential Exports and Potential Imports in the Identified Three-


Stage and Two-Stage Supply Chains for India .............................................................................. 63


Table 6. 5 Output and Inputs of Potential Exports and Potential Imports in the Identified Three-


Stage and Two-Stage Supply Chains for Pakistan ........................................................................ 72


Table 6. 6 Output and Inputs of Potential Exports and Potential Imports in the Identified Three-


Stage and Two-Stage Supply Chains for Sri Lanka ...................................................................... 85




LIST OF FIGURES
Figure 2.1: Global Exports of Textiles from South Asian Countries 2004-2008 (US$ Billion) ... 24


Figure 2.2: Global Exports of Clothing from South Asian Countries 2004-2008 (US$ Billion) .. 24


Figure 2.3: Share of Textiles and Clothing in Countries Total Exports of Textiles and Clothing


Sector in South Asia: Country-Wise ............................................................................................. 24


Figure 3. 1 Growth in Spinning Capacity and Yarn & Fabric Production. 28


Figure 3. 2 Growth of Spinning, Spindles and Rotors. .................................................................. 30


Figure 5. 1 Constructed Potential Supply Chain in Textiles and clothing Sector 46





9


ABBREVIATIONS


ADB Asian Development Bank


APTMA All Pakistan Textile Mills Association


BOI Board of Investment


FDI Foreign Director Investment


GDP Gross Domestic Product


IIT Intra-industry trade


LDCs Least Developed Countries


MFA Multi-fibre Arrangement


MMFY Man-Made Filament Yarn


NTC National Textile Corporation


OBM Own Brands Model


PTS Primary Textile Sector


RMG Readymade garment


RIS Research and Information System


SAFTA South Asian Free Trade Agreement


SSIs Small Scale Industries


SMEs Small and Medium Enterprises


T&C Textiles and clothing


TCO Textile Commissioner Office


US United States


UNCTAD United Nations Conference on Trade and Development





10


EXECUTIVE SUMMARY






Background




The South Asian countries initiated a process of preferential trade liberalization with the


establishment of the South Asian Association for Regional Cooperation (SAARC) in


1985. Then, it took a decade for the region to make some concrete measures for


promoting trade through a regional agreement. The South Asian Preferential Trade


Agreement (SAPTA) came into operation in 1996 with the expectation of moving


towards a South Asian Free Trade Agreement (SAFTA), the implementation of which


eventually began in 2006.
1
Despite all this, South Asia remains a least integrated region


with the intra-member countries trade accounting for just about 5 per cent their total


trade. Many experts however do suggest that expanded regional integration beyond trade


in goods and cooperation for developing supply chains hold great promises for growth


and development in the region.




While extended cooperation involving services, infrastructure development,


transshipment, etc, have been discussed at different forums, both amongst policymakers


and trade analysts, relatively less attention has been given to understanding the potentials


for building supply sources based on industrial units located in different countries within


the region. In this backdrop that UNCTAD (through its India Project Office), the Indian


Government Centre for WTO Studies (CWS), and the Commonwealth Secretariat


decided to collaborate on a joint project to assess the prospects for developing production


linkages under South Asian regional cooperation. One salient feature of the project is


that, rather than following a very general and broad approach, it looks into industry


specific dynamics so that the research can be useful to policymakers and industries. As


such, given its importance to the region, the textiles and clothing sector has been chosen


to be the case study. The project comprises analytical research to identify the potential


supply chains, and consultation workshops with the relevant stakeholders to disseminate


and validate the findings and discuss policy implications. The findings have important


implications for understanding the prospect of increased exports from individual South


Asian countries by sourcing intermediate inputs from the region, the resultant


consequences for export competitiveness, and the scope of policy support in promoting


such supply chains.




South Asian Textile and Clothing Sector




The textiles and clothing (T&C) sector has been one of the leading manufacturing sectors


of South Asia in terms of its contribution to output, employment and trade. The sector


collectively employed over 55 million people directly and nearly 90 million indirectly in


the region in 2005. South Asia‘s share in global trade in T&C rose from 1.5 per cent in
2002 to 4.4 per cent in 2007


2
. The region‘s share in global exports of the sector increased



1
Under the proposed tariff liberalization program (TLP), SAFTA will become fully effective for non–least


developed country (LDC) member countries of SAARC by 2013 and by 2016 for LDC member countries.
2
This information is extracted from the UN-COMTRADE database.




11


from 2.2 per cent in 2002 to 7.7 per cent in 2007 with exports reaching US$ 45.7 billion


in 2007. However, its share in global imports improved only marginally from 0.8 per cent


to 1.2 per cent with imports of US$ 6.8 billion in 2007. The importance of the sector to


the region is also reflected from the share of the sector in total exports of all its major


economies. In 2007, T&C constituted around 80 per cent of total exports of Bangladesh


providing direct employment to 3 million people; 45 per cent of Sri Lanka employing


more than 1.8 million; 55 per cent of Pakistan employing more than 15 million and


around 12 per cent of India employing more than 38 million. However, with the onset of


global economic crisis, South Asia as a region has experienced a slowdown in its GDP


growth rate from 8.6 per cent in 2007 to 5.7 per cent in 2008. The growth has remained at


5.7 per cent in 2009
3
. This has resulted in 18 per cent decline in exports of T&C from


South Asia, lowering its share in global exports of T&C from 7.7 per cent to 6.1 per cent.


The T&C industry is a sector where competition is fierce and after the expiry of the


Multi-fibre Arrangement (MFA) system in 2005 the global market is yet to settle down.


South Asian countries have major rivals in every category of export items and thus


improving competitiveness in this heavily labour-intensive sector has become one of the


critical issues for export-led growth and poverty reduction efforts. The countries in South


Asia, Particularly Bangladesh, India, Pakistan and Sri Lanka, themselves compete with


one another in the global market. However, taking advantage of their current production


base, effective regional collaboration could contribute to enhancing these countries


competitiveness resulting in greater world market share of textiles and apparels.




The benefits of regional cooperation in T&C have been discussed by ADB and UNCTAD


(2008), Robbani (2004) and Tewari (2008). ADB and UNCTAD (2008) points out the


growing intra-industry trade (IIT) in the T&C sector within South Asia and the potential


to increase it further. The study estimates bilateral Grubel Lloyd index for year 1991 and


2004 and finds that IIT increased for some of the sectors within the T&C sector. These


are spinning, weaving and finished textiles; knitting mills; and manufactures of textiles


not elsewhere classified (nec). The study also estimates gains to all countries in South


Asia in the T&C sector under lowering of tariffs in SAFTA.




Research Method




The analytical work maps out the production and export structures in different South


Asian countries in order to identify the potential cross-border linkages which are


currently not being exploited. The methodology adopted for the purpose is based on a


simple logic, which is to identify those inputs used in the T&C sector, which a country


imports from outside the region, though there exists a South Asian country, which


exports globally these inputs. These are the products for which both demand and supply


exist in the region and thus could potentially form supply chains. Based on this principle


and making use of the available disaggregated trade data (at the 6-digit of Harmonised


System of trade classification), the following steps have been used to identify the


potential cross-border supply chains that are currently not being exploited.





3
World Bank, (2010).




12


First, in Step 1 export products (destined for global markets) from four major economies


in South Asia, viz. Bangladesh, India, Pakistan and Sri Lanka are identified. Only those


products are considered where a country has some significant export receipts (more than


US$ 100,000). For these final products - in Step II - all inputs used (both from within the


T&C sector as well as from other sectors) are identified and are labeled as stage I inputs.


In Step III a trade matrix is constructed for each of the Stage I inputs, showing their


imports into and exports from all the four countries. If imports of stage I inputs in a


country are greater than US$ 100,000 and South Asia as a region exports more than US$


100,000 of the input, the stage I input is identified as potential input in the supply chain.
4


Two countries in South Asia with the supply capacity for the Stage I input are identified.




Once the countries which can export the stage I inputs have been identified, in Step IV,


the primary inputs used in the production of the Stage I inputs are identified. These


primary inputs could be, for example the chemicals used in the dyes which are used as


stage I inputs in fabrics. Similar exercise (as undertaken in Step III) is then undertaken


for identifying the countries, which can export the primary inputs. Therefore, the final


supply chain consists of: (i) a final output which is exported by a country (X); (ii) Stage I


inputs which are imported by country X from other two identified countries (Y and Z);


and (iii) primary inputs which are imported by Y and Z from any two South Asian


countries. Thus, the supply chain identifies the final output to be globally exported by a


country, two countries that can provide the Stage I inputs used in production of the final


output, and two more countries which can provide primary inputs used in the production


of Stage I inputs. It should be noted that the final output to be exported may not


necessarily be clothing. It could include yarn, fabrics or other upstream products.




The methodology has been implemented using disaggregated data at the six digit level of


the Harmonised System (HS) of Trade Classification, as available in COMTRADE


database. To avoid atypical trade flows, the trade matrix for identifying the potential


exports and imports is constructed using three year averages (2005-2007). For the


selected final products, the Stage I inputs are identified by making use of an input-output


database at the comparable HS tariff lines that has been constructed by UNCTAD


(through its India Project Office).




Key Findings




Overall scope of developing regional supply chains




There are at least three different ways of analyzing potential supply chains. First, they can


be considered as the number of times a country participates in different production


stages: as an exporter of final products, exporter/importer of Stage I inputs, and


exporter/importer of primary inputs in the supply chains formed. The number of stages in


all supply chains in which each of the four major countries in South Asia participates is


reported in column 1 of Table 1. Second, supply chains can be examined by tracking the


flow of inputs leading to the export products. Under this perspective each supply chain



4
The threshold figure of US$ 100,000 is used to justify the existence of import demand and supply


capacity in the products under consideration.




13


represents a unique product-country combination for export of the final product, import


of Stage I inputs relevant to production of the final product and import of primary inputs


relevant to the production of the Stage I inputs used. Column 2 of Table 1 reports the


number of supply chains that can be formed in the region from exports of final product


from each country.




Finally, supply chains could also constitute the number of unique six-digit HS tariff lines


involved in the participation of a particular country in different production stages as an


importer of Stage I inputs needed for producing the final products and primary inputs


used in the production of Stage I inputs. Column 3 of Table 1 reports the number of


unique tariff lines each country can import from the region in the potential supply chains.


In addition to the above described three different ways of analyzing the potential supply


chains, Table 1 also reports the number of unique final products which a country can


export (column 4); inputs that may be imported as Stage I inputs from the region (column


5); and number of unique primary inputs that a country may import for production of


Stage I inputs (column 6).




Table 1: Number of Potential Three Stage Supply Chains and Number of Potential


Products of Import and Export


Number


of


Stages a


Country


participa


tes in


three-


stage


and two-


stage


Supply


Chains


(1)


Number


of


Potential


Three


Stage


Supply


Chains


formed


by


export


of Final


Product


(2)


Total


Number


of Unique


Six Digit


Tariff


Lines of


imports In


the


Potential


Three


Stage and


two-stage


Supply


Chains


(3)


Number of


Unique Six


Digit Tariff


Lines


Identified as


Potential


Final


Product for


Exports in


Three-Stage


and two-


stage


Supply


Chains


(4)


Number of


Unique Six


Digit Tariff


Lines


Identified as


Potential


Imports of


Stage I Inputs


in Three-


Stage Supply


Chains


(5)


Number


of Unique


Six Digit


Tariff


Lines


Identified


as


Potential


Imports of


Primary


Inputs in


Three-


Stage


Supply


Chains


(6)


Banglad


esh


245 109 65 15 19 47


India 1032 212 38 37 25 19


Pakistan 795 67 117 29 27 103


Sri


Lanka


418 363 36 8 34 2




Following the first criterion above India participates in maximum number of stages


(1032) in the identified supply chains followed by Pakistan (795), Bangladesh (245) and


Sri Lanka (418). From this perspective, the more diverse the range of inputs


exported/imported by a country the higher will be its participation in different stages of




14


the supply chains. In terms of the second criterion, the final product identified for global


exports forms 109 supply chains in Bangladesh, 212 in India, 67 in Pakistan and 363 in


Sri Lanka. The unusually low figure for Pakistan is attributable to the fact that the final


products exported by Pakistan are more of textile-related items than clothing. Textiles, as


compared to clothing, have lower backward linkages in terms of inputs used for


production of final products. Finally, when considered the number of unique tariff lines


that can be imported by a country in the identified potential supply chains, Bangladesh is


found to have 65 Stage I primary inputs. The corresponding figures for India, Pakistan


and Sri Lanka are respectively, 38, 36 and 117.




For Bangladesh, 15 unique tariff lines have been identified as final products for global


exports that can be manufactured using regional supply chains alone. The comparable


numbers for India turns out to be 37, for Pakistan 29 and for Sri Lanka 8. The unique first


stage inputs identified, which can be sourced within the region, are the highest for Sri


Lanka (34) closely followed by Pakistan (27) India (25) and Bangladesh (19). The


number of potential primary inputs that are used in the first stage inputs can be imported


are maximum for Pakistan (103) followed by India (19), Bangladesh (47) and Sri Lanka


(2).




Having examined the number of unique tariff lines involved in each stage of the unique


supply chains in which a country participates, the study also examined if the existing


trade flows point towards the possibility of establishing regional supply chains. The


results of this exercise have been summarized in Table 2 which presents country-wise


global and regional imports of the tariff lines identified as stage I input or primary inputs


in the potential supply chains. It is indeed interesting to find that all the four countries are


mainly sourcing their imports outside the region, although regional supply capacity


exists.




Table 2: Global and regional imports of identified inputs in potential supply chains


(average of 2005-2007)


Global


Imports


(US$'000)


Imports


from other


three


Countries


of the


Region


(US$'000)


Global


Exports of


Other


Three


Countries


in the


Region


(US$'000)


Imports


from the


Region as


per cent


of


Country’s


Global


Imports


Global Imports


of a country as


a per cent of


Global Exports


of the Region


Bangladesh 493,150 146,628 2,690,257 29.7 18.3


India 4,834,969 221,657 1,380,133 4.5 350.3


Pakistan 1,166,083 202,466 15,543,371 17.3 7.5




15


Sri Lanka 327,176 94,808 3,623,488 28.9 9.0




It is found that Bangladesh‘s global imports of the identified inputs comprise only around
18.3 per cent of region‘s exports of these inputs. For Pakistan and Sri Lanka these are
around 7.5 per cent and 9 per cent respectively. This indicates that supply capacity exists


within the region to cater to the demand for the identified inputs by the region. However,


the global imports of the identified inputs for India is around 350 per cent of the region‘s
exports, indicating that India‘s demand for the identified inputs is much more than the
region‘s capacity to export. This may be a result of diverse production structure of India
in the T&C sector, which ranges across the entire value chain. It also indicates the role


that India can play in generating demand for the inputs within the region.




The existing regional imports of the inputs compared to total import demand are found to


be very low in case of India. In the case of Bangladesh and Sri Lanka the regional


imports are around 30 per cent. India‘s regional imports are the lowest at less than 5 per
cent, indicating the potential of intra-regional trade for India. However, India‘s export
demand is significantly higher than the export capacity within the region.




Country-specific product lines for potential supply chains




The study has also identified country-specific potential supply chains with respect to


exports of final output, import of Stage I and primary inputs. It includes the details of


three-stage supply chains of the countries involved along with their demand inputs vis-à-


vis regional supply side capacity. In most of the inputs identified in the potential supply


chains for Bangladesh, its global imports are much higher than the imports from within


the region. However, the supply capacity of the region in most of these products is found


far greater more than what is globally imported by Bangladesh, indicating that the region


has a supply capacity to fulfill Bangladesh‘s demand for the inputs in the identified lines.
Out of the 65 import items that be sourced from within the region, Bangladesh has tariff


rates of more than 10 per cent in 34 items while another 12 products are in the Sensitive


List under SAFTA, implying that liberalization of these items are not being considered.




In the case of India, 38 tariff lines are identified as final products for exports in the


potential supply chain, out of which in 36 products it has more than 10 per cent tariffs. 12


out of 38 products are listed as India‘s sensitive products under SAFTA. A comparison of
India‘s sourcing of identified inputs from within and outside the region shows that in
most of the cases its global imports are much higher. For 7 out of 25 Stage I inputs,


India‘s global imports are less than the region‘s global exports, which indicates the
insufficient supply capacity of the region to fulfill India‘s demand. But, in 21 out of 25
products, India‘s regional imports are less than 10 per cent of its total global imports.
This indicates the potential of forming regional supply chains by India.




At the three-stage level, there are 67 supply chains for Pakistan. There are 27 Stage I


inputs identified, of which 23 have less than 10 per cent imports from the region. In 72


out of 103 identified primary inputs, Pakistan‘s regional imports are less than 10 per cent,
while in only 14 products Pakistan‘s global imports are more than region‘s global exports




16


indicating insufficient capacity. Out of 117 unique products identified for regional


imports by Pakistan, in 21 products the tariffs are above 10 per cent. 17 products are in


Pakistan‘s Sensitive List under SAFTA.


For Sri Lanka, 363 supply chains have been identified at the three stage level. It is found


that in 6 out of 8 final products in the identified potential supply chains, Sri Lanka‘s
exports are more than 10 per cent of total exports of South Asia. There are 34 inputs


identified as Stage I inputs that may be imported from the region. However, unlike other


countries in the region Sri Lanka is importing to a large extent from the region. Regional


import in 24 out of 34 products is greater than 10 per cent. Sri Lanka has a more open


trade regime compared to others in South Asia as none of the inputs of potential imports


from within the region has tariffs more than 10 per cent and none of the tariff lines is in


its Sensitive List under SAFTA.




While identifying the regional supply chains, an attempt was also made to assess if the


intra-regional supplies would be competitive enough to provide justification for regional


sourcing. The fact that in many cases South Asian countries were actually exporting


Stage I and primary inputs to the rest of the world seems to suggest their being globally


competitive. A comparative assessment of unit value prices of the products supplied by


South Asian countries vis-à-vis other leading global suppliers also reveal that in many of


the items the former may actually be lower-cost suppliers.




Issues to Consider and Policy Implications




The outcomes of the project as summarised above are likely to draw a lot of interest


amongst policymakers and relevant stakeholders. There are issues both directly


associated with the T&C sector and related to overall cooperation in the region that


would have important implications for promoting regional supply chains. In the following


some of these are briefly dealt with.




There could be one concern that regional supply chains would undermine the efforts of


the countries in developing their own domestic backward linkage industries. However,


the methodology devised for the analytical study rules out such a possibility. The basic


premise of the analysis is whether the countries are already importing from the rest of the


world and, if so, whether regional sourcing can replace those supplies. Therefore, if - for


example - a country is sourcing all its import requirements from its internal backward


linkage industries, there is no scope for developing regional supply chains. In other


words, since global imports exist, there was no reason to believe that regional imports


would hurt domestic industries.




It is also important to point out that the analysis has only considered regional imports that


would be used in the export-oriented sector and not for domestic consumption. As a


result, regional supply chains - at least the way they have been presented in the study -


are not any threat to domestic industry.





17


Following from the above, it is worth mentioning that the Sensitive List under SAFTA


may not be a constraint for regional supply chains. The export-oriented sectors are in


most cases procuring their raw materials from the cheapest possible global sources. Even


when the relevant domestic import competing sectors operate under the shield of tariffs


and other support measures, exporters are allowed duty-free import of raw materials or to


make use of such facilities as duty-drawback and bonded warehouse to protect their


competitiveness by getting inputs from globally efficient suppliers. From this perspective,


the Sensitive List maintained by different countries in the region should not be a problem


for allowing their exporters to source raw materials regionally. This is an issue that


deserves attention of policymakers and businesses. Notwithstanding this, inclusion of


products in Sensitive List may increase the transaction costs to the importers to some


extent. This suggests that for forming cost effective supply chains within the region,


lower tariffs on the identified inputs may be helpful.




There might be some apprehension about compromising the export sector‘s
competitiveness by using raw materials and primary inputs manufactured in the region.


Another related concern is whether the regional supply chains could lead to trade


diversions triggering welfare costs. However, as already pointed out above, South Asian


countries are exporting many of these items to the world market and they compete well


with other major global suppliers and as such the concern about undermining the


competitiveness in the export sector may not be true in a range of product lines. On the


other hand, it is important to note that the analytical study does not advocate for trade


policy-induced measures (such as tariff concessions for regional partners) for promoting


regional trade or supply chains. The South Asian T&C industry is overwhelming global


market-oriented and exporters will have to have access to raw material supplies at world


prices. Therefore, any suggestion of discriminatory tariffs on input supplies by sources is


not considered, thereby eliminating the possibility of trade diversion. Nevertheless, it


does not rule out the scope of policy interventions by South Asian countries as they can


be more ambitious in integrating their T&C industry across the region. But, this has not


been considered as part of the current study.




There are, however, other factors associated with competitiveness where regional supply


chains can actually exert beneficial effects. Unlike the traditional trade theories, there is


now robust evidence that transport cost reduce tradable volumes. Under ideal


circumstance supplies procured within the region will involve lower transport cost


improving individual South Asian countries competitiveness. With regard to the exports


of textiles and apparels most South Asian countries suffer from high ‗lead time‘ (i.e. the
time spent between the receipt of export order and delivery of the order at the importer‘s
designated port). Regional sourcing of raw materials, particularly for apparels, can


greatly help mitigate the problem.




The distribution of regional export gains could also attract attention of some observers.


As within the region some countries have larger supply capacity than others, concerns


may be raised about unequal distribution of gains from regional supply chains. However,


this argument is misconceived. According to the methodology adopted, countries are


importing intermediate inputs in order to increase their exports. If countries could not




18


experience increased export earnings, regional imports would also not rise. Also, one


should not merely focus on the distribution of regional exports; what is more important is


the growth of overall exports to the global markets.




One important caveat about the supply chain assessment however must be acknowledged.


Despite the use of highly disaggregated data, it has not been possible to take into account


the quality variations across various suppliers. There is no denying that the quality of


inputs would determine a supplier‘s catering to a particular market. In the case of
apparels in particular, many importers often provide strict specification with regard to the


inputs to be used and their preferred sources. This requirement can reduce the scope of


regional sourcing. Nevertheless, the study has provided detailed and disaggregated


product level information where potentials for developing regional supply chains exist.


Based on this, the industry stakeholders can more precisely assess any likely effects of


product heterogeneity on regional sourcing and exports.




It goes without saying that much of the existing scope of exploiting supply chains would


largely depend on the progress made on overall cooperative efforts among the South


Asian nations. The existence of bilateral political differences has affected the


advancement of regional economic cooperation. It has been found that when it comes to


regional partners, South Asian countries are more restrictive than their trade regimes with


the rest of the world. Along with tariff barriers, a plethora of non-tariff measures


seriously constrain intra-region trade and investment flows. Due to lack of political will,


the region also suffers from relatively poor state of trade facilitation and high transaction


costs associated with cross-border exchange. All this will naturally have serious


implications for promoting regional supply chains.




In conclusion, this study brings out the potential of South Asia to emerge as globally


more competitive suppliers of T&C through identified potential supply chains that can be


formed within the region. The existing trade flows in the identified three-stage and two-


stage supply chains indicate that countries in South Asia have the import demand for


inputs relevant for establishing supply chains in the T&C sector but the import demand is


met mainly from sources outside the region. However, the region has the supply capacity


for exports and in many cases there exists lower cost suppliers in the region. Many of the


identified inputs in the potential supply chains are identified as products in countries‘
SAFTA Sensitive List having tariffs greater than 10 per cent. This indicates that at the


national level each country has policy tools to form the identified supply chains and


lower its import costs from the region as compared to the world. In order to make the


potential supply chain work, the SAFTA can therefore play a very important role.




19




1. INTRODUCTION




The supply chain or value-adding chain is an old-established concept in industrial


economics and in the business studies literature, used most prominently by Michael


Porter (1985, 1990) and Gereffi and Korzeniewicz (1994). Like all uses of the chain


metaphor, its value lies in its emphasis on the sequential and inter-connected structures of


economic activities, with each link or element in the chain adding value to the process.


More recently, supply chains have been embedded in the development theory and there


has emerged a stream of literature that highlights and provides evidence of the


developmental role played by global and regional supply chains. Neil, et al (2004) argue


that economies of scale and scope within specific regions are only advantageous to those


regions - and bring about regional development - insofar as such region-specific


economies can complement the strategic needs of trans-local actors situated within global


production networks. Studies like Smith (2002) on clothing sector in Slovakia, and Nadvi


et al (2004) on Viet Nam‘s textiles and garment industry provide evidence of the
developmental role played by supply chains for these countries.




This study attempts to explore the possibility of developing regional supply chains for


South Asia in the textiles and clothing sector. The T&C sector has been one of the


leading manufacturing sectors of South Asia in terms of its contribution to output,


employment and trade. The sector collectively employed over 55 million people directly


and nearly 90 million indirectly in the region in 2005. South Asia‘s share in global trade
in T&C rose from 1.5 per cent in 2002 to 4.4 per cent in 2007


5. The region‘s share in
global exports of the sector increased from 2.2 per cent in 2002 to 7.7 per cent in 2007


with exports reaching US$ 45.7 billion in 2007.




The importance of T&C to the region is also reflected from the share of the sector in total


exports of all its major economies. In 2007, T&C constituted around 80 per cent of total


exports of Bangladesh providing direct employment to 5 million people; 45 per cent of


total exports of Sri Lanka employing more than 1.8 million; 55 per cent of total exports


of Pakistan employing more than 15 million; and around 12 per cent of total exports of


India employing more than 35 million
6
.




However, with the onset of global economic crisis, South Asia as a region experienced a


slowdown in its GDP growth rate from 8.6 per cent in 2007 to 5.7 per cent in 2008. The


growth has remained at 5.7 per cent in 2009
7
. This has resulted in 18 per cent decline in


exports of T&C from South Asia, lowering its share in global exports of T&C from 7.7


per cent in 2007 to 6.1 per cent in 2008. In contrast, the global share of China and


ASEAN in 2008 improved, with their exports growing by 7.7 per cent and 5.1 per cent


respectively.





5
Source: COMTRADE, World Integrated Solutions (WITS)


6
Tewari (2008).


7
World Bank (2010).




20


Given the fact that South Asia hosts the largest number of poor in the world and the


capacity to generate stimulus in the region is limited for most of the countries, there is a


need to improve the global competitiveness of the region, especially in sector like T&C.


The need has become even more urgent given the emerging global challenges, whether


due to reduced global demand or erosion of preferences due to increased number of free


trade agreements or withdrawal of Generalised System of Preferences-plus schemes.




One of the ways to improve regional competitiveness in T&C can be developing regional


supply chains, which will boost inter-country and intra-industry trade. The existing and


potential scope for intra-industry trade is commonly measured by Grubel-Lloyd index


based on commodity group transactions
8
. Literature suggests that cross-border production


sharing and intra-industry trade (IIT) assist participating countries to integrate more into


regional markets and may act as a catalyst to developing countries' industrialisation and


growth (Rhodas-Martini 1998 and Yeats 2000). Concentrating on IIT and strengthening


of cross-border vertical supply chains as mechanisms for integration could be an


important step in lowering the costs, while increasing the level of specialization of


countries and product differentiation within the region. Other benefits of formation of


production supply chains through IIT could be: (a) creation of a larger market for the


product, (b) a country can simultaneously reduce the number of products it produces and


increase the variety of goods available to domestic consumers; and (c) through


production of fewer varieties, a country can produce each at larger scale and thus with


higher productivity.




The potential for intra-industry trade in T&C is substantially high in South Asia. Using


the average of the period 2005-2007, the Grubel-Lloyd index in T&C for South Asia with


respect to world is estimated to be 27.3 per cent while that with respect to South Asia is


estimated to be 16.6 per cent.
9
This indicates that within the T&C sector, South Asia‘s


imports from the world are much higher than from the region. This is also indicative of a


high potential to substantially increase intra-industry trade within the region in T&C. At


present, intra-regional trade in T&C is only 3.5 per cent of South Asia‘s global trade in
this sector.




The main objective of this study is to identify at HS six digit codes the potential supply


chains that can be formed in the T&C sector (HS Chapters 50-63) within South Asia,


which will enable South Asia to lower its cost of production and improve its global


competitiveness. The analysis is undertaken for the four major economies of the region,



8
For any particular product class i, an index of the extent of intra-industry trade in the product class i


between countries A and B is given by the following ratio:



This index takes the minimum value of zero when there are no products in the same class that are both


imported and exported, and the maximum value of 100 when all trade is intra-industry (in this case Xi is


equal to Mi).
9
Two different types of trade are mainly captured in measurements of intra-industry trade index; horizontal


trade in similar products with differentiated varieties; and vertical specialisation of production that results


in trade in similar goods at different stages of production.




21


namely Bangladesh, India, Pakistan and Sri Lanka. The benefits of regional integration in


developing potential supply chains in South Asia are also addressed.




The rest of the study is organised as follows: Chapter 2 highlights the existing trends in


trade in the T&C sector in the region; Chapter 3 provides a brief profile of the T&C


sector in Bangladesh, India, Pakistan and Sri Lanka; Chapter 4 provides a brief review of


studies on production supply chains in South Asia; Chapter 5 discusses the methodology


adopted for identifying the potential supply chains and the data sources used; Chapter 6


presents country-wise potential three-stage and two-stage supply chains; and Chapter 7


concludes with some policy and practical suggestions.




22


2. BROAD TRENDS IN TRADE IN TEXTILES AND CLOTHING SECTOR IN


SOUTH ASIA




South Asia‘s global exports of textiles and clothing increased substantially from US$ 33
billion in 2004 to around US$ 46 billion in 2007. The growth of exports in South Asia in


this period improved its global export share from 7.1 per cent in 2004 to 7.7 per cent in


2007, which was almost double the share of ASEAN as seen in Table 2.1. There has also


been a rise in global imports of T&C in the region, from US$ 7.5 billion in 2004 to US$


9.2 billion in 2007. Both exports and imports experienced a drastic fall in 2008, as a


result of global economic slowdown. The share of South Asia in global exports declined


from 7.7 per cent to 6.1 per cent in 2008, while that of ASEAN improved marginally in


2008.




Table 2.1: Share of South Asia in Global Exports of Textiles and Clothing (US$


Billion)



Year GLOBAL


EXPORTS
OF
TEXTILES
AND
CLOTHING
(US$
Billion)


SOUTH
ASIA
EXPORTS
IN
TEXTILES
&
CLOTHING
(US$
Billion)


SOUTH
ASIA
IMPORTS
OF
TEXTILES
&
CLOTHING
(US$
Billion)


ASEAN
EXPORTS
OF
TEXTILES
AND
CLOTHING


SHARE OF
SOUTH
ASIA IN
EXPORTS
OF T&C


SHARE OF
ASEAN IN
EXPORTS
OF T&C


2004 459.7 32.83 7.52 26.7 7.14 4.06


2005 487.2 37.9 8.07 28.4 7.78 3.56


2006 537 42.99 8.42 31.6 8.01 3.58


2007 594 45.75 9.28 24.2 7.7 4.02


2008 604.5 36.85 7.66 25.2 6.1 4.15


Source: COMTRADE and ITCB for ASEAN


An examination of the trends of Bangladesh, India, Pakistan and Sri Lanka indicates that


exports of T&C has risen considerably, i.e., more than 30 per cent, in all countries in the


period 2003-2007. Not only exports but also imports of T&C have risen, with all the four


countries importing more than US$ 1 billion in 2007 (Table 2.2).





Table 2.2: Global Exports and Imports of Textiles and Wearing Apparels of South


Asian Countries (US$ billion)




BANGLADESH INDIA PAKISTAN SRI LANKA


Year IMPORTS EXPORTS IMPORTS EXPORTS IMPORTS EXPORTS IMPORTS EXPORTS


2003 2.58 5.51 1.93 12.50 0.74 8.30 1.48 2.59


2004 2.68 6.92 2.07 14.15 1.13 8.92 1.64 2.84


2005 2.48 7.68 2.67 17.03 1.26 10.26 1.66 2.93


2006 2.67 9.90 2.75 19.10 1.35 10.87 1.65 3.12




23


2007 2.61 10.66 3.04 20.97 1.90 10.74 1.73 3.38


2008 3.58 22.70 2.28 10.63 1.80 3.52


Source: COMTRADE




Looking at the competitiveness in T&C separately, it s found that the share of South Asia


in exports of textiles has grown much faster than its share in wearing apparels (Table


2.3). Its share in global exports of textiles increased from 5.3 per cent in 2004 to 6.5 per


cent in 2007 while its share in global exports of wearing apparels increased from 7.89 per


cent in 2002 to 7.93 per cent.




Table 2.3: Share of South Asia and ASEAN in Global Exports of Textiles and


Wearing Apparels



Year SHARE OF


SOUTH
ASIA IN
EXPORTS
OF
TEXTILES


SHARE OF
ASEAN IN
EXPORTS
OF
TEXTILES


SHARE OF
SOUTH
ASIA IN
EXPORTS
OF WAP


SHARE OF
ASEAN IN
EXPORTS
OF WAP


SHARE OF
SOUTH
ASIA IN
IMPORTS
OF
TEXTILES


SHARE OF
ASEAN IN
IMPORTS
OFTEXTILES


2004 5.35 2.74 7.89 4.7 3.85 4.91


2005 5.69 2.87 8.63 3.77 4.15 4.72


2006 6.38 2.87 8.51 3.8 4.18 4.87


2007 6.5 3 7.93 4.36 4.24 5.87


2008 6.29 3.06 5.61 4.51 3.51 6.35


Source: COMTRADE




An interesting fact to note is that there exist both demand and supply of inputs of T&C


within South Asia, with different countries specializing in production of final product and


inputs. For example, Bangladesh and Sri Lanka have higher shares in wearing apparel in


their global exports, while India and Pakistan have higher share of textiles in their global


exports (Table 2.4). This complementarity in production of final product and inputs


increases the potential for developing production supply chains for the sector within the


region.




Table 2.4: South Asian Countries Exports of Textiles and Clothing in 2007



GLOBAL


EXPORTS
IN
TEXTILES
(US$
Billion)


GLOBAL
EXPORTS
IN
CLOTHING
(US$
Billion)


SHARE IN
EXPORTS OF
TEXTILES IN
SOUTH ASIA
(percentage)


SHARE IN
EXPORTS
OF
CLOTHING
IN SOUTH
ASIA
(percentage)


SHARE IN
EXPORTS OF
T&C IN
SOUTH ASIA
(percentage)


BANGLADESH 1.34 9.32 6.48 37.20


23.32


INDIA 11.6 9.37 56.05 37.40 45.83


PAKISTAN 7.5 3.2 36.33 12.86 23.47


SRI LANKA 0.24 3.14 1.15 12.54 7.38


Source: COMTRADE




24




At country level, global exports of textiles are highest from India followed by Pakistan


and Bangladesh (Figure 2.1). Bangladesh and Sri Lanka have less than US$ 2 billion of


exports throughout the period. In terms of global exports in clothing, India has the highest


exports closely followed by Bangladesh. Pakistan and Sri Lanka exported wearing


apparels between US$ 2 to 3 billion in this period (Figure 2.2).




Figure 2.1: Global Exports of Textiles from South Asian Countries 2004-2008 (US$


Billion)


0.00


2.00


4.00


6.00


8.00


10.00


12.00


14.00


2004 2005 2006 2007


$
b


il
li


o
n


Bangladesh


India


Sri Lanka


Pakistan





Figure 2.2: Global Exports of Clothing from South Asian Countries 2004-2008 (US$


Billion)


0.00


2.00


4.00


6.00


8.00


10.00


2004 2005 2006 2007


Bangladesh


India


Sri Lanka


Pakistan





From these figures, it clearly stands out that countries within the region specialize in


different segments of the T&C sector. The share of textiles in the average global exports


of the T&C sector is high in case of Pakistan and India, which is more than 50 per cent of


the sector‘s exports. However, Bangladesh and Sri Lanka have very low share of textiles
in the exports of this sector, which is less than 20 per cent (Figure 2.3). Bangladesh and


Sri Lanka have clothing as their major sector of exports with its share crossing 80 per


cent.


Figure 2.3: Share of Textiles and Clothing in Countries Total Exports of Textiles


and Clothing Sector in South Asia: Country-Wise





25


Share of Textiles and Clothing (Average 2004-2007)


0.00


20.00


40.00


60.00


80.00


100.00


Bangladesh India Sri Lanka Pakistan


%


CLOTHING


TEXTILES












26


3. BRIEF PROFILE OF TEXTILES AND CLOTHING SECTOR IN THE
REGION.




The above trends highlight the increasing importance of the textiles and clothing sector in


each country‘s total exports and the growing competitiveness of the countries in South
Asia as each country witnesses rising exports over time. The trends also highlight the


differences in competitiveness in the sector within the region with countries specializing


in either textiles or clothing. To get a better picture of specialization of these countries, a


brief profile of the T&C sector is sketched for each of the four South Asian countries.






3.1 Bangladesh’s Textile and Clothing Sector: An Overview


The T&C sector is the largest manufacturing activity in Bangladesh. It provides direct


employment to about than 5 million people, which accounts for 45 per cent of all


industrial employment in the country. The sector contributes 10 per cent of the country‘s
GDP, 40 per cent of industrial value addition, and 78 per cent of export earnings. Major


products from this sector include basic yarn and fabrics primarily used for domestic


consumption and other materials used in export-oriented garment making (clothing


industry) such as polyester filament fabrics, man-made filament mixed fabrics, PV


fabrics, viscose filament fabrics and man-made spun yarns. Major readymade garments


exported by Bangladesh are knitted and woven shirts and blouses, trousers, skirts, shorts,


jackets, sweaters and sportswear, and other fashion apparel.




Table 3.1 provides a profile of Bangladesh‘s T&C sector. The sector can broadly be
divided into primary textile sector (PTS) and export-oriented readymade garment (RMG)


making sector. The PTS comprises spinning, weaving, specialised textile units, traditional


handloom sector and knitting and dyeing subsectors. Currently, there are now 350


spinning mills, 400 weaving firms, 310 dyeing and finishing units, and 4,500 garment


factories.




Table 3.1: The Textile and Clothing Sector of Bangladesh at a Glance




Sub-sector Number


of units


Installed machine


capacity


Production


capacity


Employment


Textile spinning 350 7.5 million spindles


(0.2 million rotors)


1,800 million


kg


400,000


Textile weaving 400 25,000


shuttleless/shuttle


loom


1,600 million


metre


80,000


Specialised textile


and power loom


1,065 23,000


shuttleless/shuttle


loom


400 million


metre


43,000


Handloom 148,342 498,000 looms 837 million


metre


1,020,000




27


Knitting, knit dyeing 2,800 17,000 knit/Dy/M 4,100 million


metre


324,000


Dyeing and finishing 310 - 1,720 million


metre


33,000


Export oriented


readymade garment


(clothing)


4,500 - 475 million


dozen


2,000,000


Other related sectors - - - 600,000
Source: Information as obtained from the Bangladesh Textiles Mills Association






Traditionally, the primary textile sector was domestic market-oriented. In the 1970s, apart


from the handloom sector, most other units in PTS – virtually all medium to large firms -
were in the public sector. While deregulation and liberalisation policies of the 1980s and


1990s led to a significant reduction in the capacity of public sector enterprises, the private


sector-led growth of PTS was still supported by pro-active policy measures, including


protection provided by imposing high tariffs and quantitative restrictions on competing


imports, and other fiscal and financial incentives. Although by the early 2000s, all


quantitative restrictions have been abolished, and tariffs have been brought down


considerably, the sector continues to enjoy significant protection.




The emergence and rapid growth of RMG sector, the export of which rose from virtually


nothing in the late 1970s, to US$ 1 billion in 1990, US$ 6 billion in 2000, and US$ 13


billion in 2009 has significantly shaped the development of the capital-intensive primary


textile sector. The rise of the RMG industry is quite striking from two perspectives. First,


traditionally many developing countries relied on the import substituting industrialization


strategy for developing their manufacturing base. In the absence of a static comparative


advantage, such a strategy calls for protecting ‗infant‘ industry by using trade policy
instruments and other support measures. Industrial units supported under import-


substitution policies, as in the case of the primary textile sector mentioned above, usually


target the readily available domestic markets before exploring foreign markets. In


contrast, Bangladesh‘s RMG industry emerged based on the demand from the foreign
markets alone, which was facilitated by the Multi-fibre Arrangement (MFA) quotas that


provided exporting opportunities for new suppliers by restricting imports into Europe and


North America from the established suppliers such as China, Hong Kong Special


Administrative Region of China, and Republic of Korea. Given its export-orientation in


nature, RMG exporters were allowed duty-free imports of raw materials and capital


goods and were also granted other fiscal and financial incentives.




The other interesting development was that the success of clothing exports gave an


opportunity for the PTS to benefit from the integration with the RMG industry. Policy


measures also helped facilitate the process. First, the Government of Bangladesh had


provided cash incentives (initially 25 per cent and subsequently reduced to 15 per cent


and then to 5 per cent before its complete discontinuation in the early 2000) for sourcing


intermediate inputs going to export products. Perhaps more importantly, the EU‘s
Generalised Systems of Preference for LDCs which granted Bangladeshi exporters duty-


free access to its market was precondition by the fulfillment of EU rules of origin that




28


strictly specified a certain stage of domestic value addition before products could qualify


for such preferential treatment. These measures have certainly enhanced the primary


textile sector‘s contributions to exports.


The changing composition of RMG exports from Bangladesh has also had important


implications for domestic PTS. Until very recently clothing exports from Bangladesh was


overwhelmingly dominated by woven garment products. The domestic fabric production


capacity, particularly the type required for woven garment export, is limited. However,


since the mid-1990s, the country had witnessed massive growth of knitwear exports,


eventually surpassing woven garments by the mid-2000s. Over time the capacity in


spinning sub-sector providing intermediate inputs for knitwear items has increased fast.


According to informed sources, currently the domestic primary textile sector meets 80-85


per cent of intermediate input requirements in export-oriented knitwear industry, while


the corresponding figure for woven garment is only 30-35 per cent.




Figure 3.1: Growth in Spinning Capacity and Yarn & Fabric Production in


Bangladesh.










Figure 3.1 shows the growth in Bangladesh‘s spinning capacity both in terms of number
of mills and spindles capacity. While the spinning units have doubled since 2000, the


spindle capacity has more than tripled. During the same period, yarn production has


increased from 272 million kilograms to 650 million kilograms, and fabric production


from 1,845 million metres to 4,225 million metres Although since 2001 the yarn and


fabric production has grown at a similar rate of about 17 per cent per annum, the export


of woven RMG sector remains critically dependent on imported fabrics.




Though both the spinning and weaving capacity has been increasing, the sectors are


constrained by one major problem that the country does not produce enough raw


materials. The primary materials used in the spinning sector are raw cotton and man-


made fibers such as viscose and polyester staple fibers and the country has to rely on


importing these materials. For example, raw cotton consumption in 2010-2011 is forecast


at 900,000 tons almost all of which will have to be imported.





29


The quality of domestically produced intermediate inputs has also been questioned.


Recently set up spinning and weaving mills are capable of supplying quality yarns and


fabrics required for the export-oriented RMG sector, but it has been found that their


prices are 10-12 per cent higher than those sourced from China and India (USDA, 2010).




Available sectoral projections show that in 2009-2010, the demand for fabrics in


Bangladesh (taking into consideration of both domestic market demand and RMG export


demand) stood at 9,115 million metres as against of domestic production of 4,225 million


metres. On the other hand, the demand for yarn is projected at 1,519 million kilograms in


comparison with the domestic supplies of 650 million kilograms. It has been estimated


that to fulfill the demand-supply gaps domestically, Bangladesh would require around


200 spinning and 217 weaving units of medium to large capacity. This shows that there


may be significant scope of exploiting regional supply chains as it is very unlikely that all


import requirements can be sourced domestically in the near future.






3.2 Indian Textile and Clothing Sector: An Overview10


The Indian Textile and Clothing sector is one of the largest and most important sector of


the Indian economy. It contributes 4 per cent to GDP, 12.5 per cent to the foreign


exchange earnings and provides more than 35 million to the employment
11


, making it the


second largest provider of jobs after agriculture. The sector also creates a large volume of


indirect employment, both in traditional industries (like production of cotton and other


natural fibers) as well as in modern industries (like textile design and fashions).




The T&C sector in India has shown a robust growth in recent years until it was affected


by the global financial crisis. During the period of 2004-2008, the sector compound


annual growth rate (CGAR) was 8 per cent and it stood among the best performers of the


manufacturing sectors in the country. On the external front, the export of the sector was


bolstered by the buoyancy in global economic growth, the abolition of MFA (since


January 2005), and rapidly growing world trade. Supply side factors such as improving


cost competitiveness, expansion of multi-fibre base, rapidly growing production capacity


of fibre, yarn and fabrics have also played crucial role in the robust performance of the


sector.




The spinning sector is by far the most efficient and technically advanced sub-sector of the


Indian T&C industry, thanks to the deregulations that was started way back in 1980s. It


holds high world ranking in terms of installed capacity. Indian spinning sector is only


second and third largest in terms of installed capacity of spindles for cotton and wool


processing, respectively (Table 3.2). Installed capacities of both spindles and rotors have


been increasing steadily over the years (Figure 3.2). Further, as much as 85 per cent of



10


Contributed by Danish A. Hashim, Director, Economic Policy & Taxation, Confederation of Indian


Industry, New Delhi and Ajay Kumar, Economist, Confederation of Indian Textile Industry, New Delhi.



11


Derived from Planning Commission‘s Employment estimates




30


the total yarn production is contributed by the organised mill sector. There is also high


presence of (43 per cent) small scale industries (SSI).




Table 3.2: Capacity Installed under Spinning Process (2007)



World Capacity


(Million)


Installed Indian


Capacity (Million


India as a


percentage of


World


India’s
Rank


1. Spindles (Cotton) 202.4 39.3 19.4 2 (China)


2. Spindles (Wool) 14.9 1 6.9 3 (China)


3. Rotors 8.7 0.6 6.9 4 (Russia)


Note: In bracket is first rank country. Source: ITMF Report, 2008






Figure 3.2: Growth of Spinning, Spindles and Rotors.




Expansions in Spinning Spindles & Rotors


37


39


41


43


2004-


05


2005-


06


2006-


07


2007-


08


2008-


09


2009-


10


Sp
in


d
le


s


300
400
500
600
700


R
o


to
rs


Spindles (Millions) Rotors (Thousands)



Source: O/o Textile Commissioner, GOI




Yarn production in India has increased at a moderate average growth rate of nearly 4.5


per cent per annum. since 2005-2006 (Table 3.3). The growth in production of man-made


filament yarn (MMFY) (5.6 per cent) has been higher than that of spun yarns (4.2 per


cent). Despite the higher growth of MMFY, spun yarn dominates the overall production


share of yarn at over 73 per cent. Within MMFY, it is the polyester filament yarn, which


leads the yarn production with a share of around 94 per cent. The yarn sector saw its


output contracting by over 3 per cent in 2008-2009 in the wake of the global financial


crisis. However, the sector experienced a sharp recovery from the crisis by recording a


growth of nearly 7 per cent during 2009-2010.




Table 3.3: Production of Yarns in India (Million Kilograms)



2005-


2006


2006-


2007


2007-


2008


2008-


2009


2009-


2010


Average


growth


rate:


2005-


2009


Production of Spun Yarn (SSI & Non- SSI)




31


COTTON 2,521 2,824 2,948 2,898 3,073 4.3


BLENDED 588 635 677 655 706 4.0


100 per cent N.C. 349 355 378 361 408 3.3


Total Spun Yarn 3,458 3,813 4,003 3,914 4,187 4.2


Production Of Man-Made Filament Yarn


Viscose Filament yarn 53.09 54 51 42 43 -6.5


Polyester Filament yarn 1,076 1,271 1,420 1,330 1,434 6.4


Nylon Filament yarn 37 32 28 28 30 -5.4


Poly propylene Filament yarn 14 13 11 15 15 2.9


Total MMF Yarn 1,179 1,370 1,509 1,416 1,522 5.6


Total Yarn 4,638 5,184 5,513 5,330 5,709 4.5


Source: Textiles Commissioner




The spinning sector enjoys strength from a very strong fibre base in the country. India


ranks high in production of all major fibres including jute, cotton, silk, polyester, viscose,


acrylic (Table 3.4). The country is the largest producer of jute fibre in the world. It is the


second largest producer of cotton, silk and cellulosic fibres, though it is placed at a long


distance from 1
st
ranker China in these cases. India has been fast catching in man-made


textiles. Even though the country has yet to travel a long distance in man-made textiles, it


is interesting to note that the largest producer of polyester in the world is an Indian


company.




Table 3.4: India’s Global Shares in Production of Fibres


Fibres Category Production –
2009 (Billion


Kilograms)


Share in


world (per


cent)


Rank


Jute (Jute, Kenaf and allied


fibres)


1.7 56 1


Cotton 5 22 2 (China-30


per cent)


Silk 0.017 13 2 (China-82


per cent)


Cellulosic Fibre/Yarns 0.33 12 2(China-45


per cent)


Synthetic Fibres/Yarns 2.4 6 2 (China-48


per cent)
Figures in brackets are per cent shares of 1


st
rank country Source : O/o Textiles Commissioner, India






India’s weaving sector is dominated by SSI and is the most fragmented sector of the
T&C industry. This is evident from the fact that SSI contributes around 80 per cent of


total fabrics and 95 per cent of total fabrics exports. Decades of restrictive government


policies favouring small-scale operations have led to certain structural weaknesses in the


sector. This sector is lagging in productivity to supply very high quality of fabrics both to




32


domestic and exports units for garmenting. India ranks first in terms of global ranking of


installed capacity of looms, whether it relates to shuttle looms or handlooms. Only in


shuttleless looms the country ranks relatively lower at number 4. The percentage of


shuttleless looms to plain looms is hardly 3 per cent compared with the world average of


16 per cent. The low presence of shuttleless looms, which ensure high-quality fabrics, is a


matter of conern for the coutnry. Nevertheless, India may contiune to enjoy high ranking


in overall size of looms for many years to come as the capacity has been expanding


consistently in the sector over the years (Table 3.5).




Table 3.5: Capacity Installation under weaving process in India (2007)



World Capacity


(Millions)


Installed Indian


Capacity


(Millions)


India as a


percentage of


World


India’s
Rank


Shuttle Looms 4.44 2.01 45.3 1


Shuttleless Looms 1.0 0.06 5 4 (China)


Handlooms 4.6 3.9 84.7 1


Total Looms 10.04 5.96 59.4 1




Fabrics production holds the high position in the value chain of the T&C sector. The


production in the weaving sector has been growing at a rate of over 4 per cent since


2005-2006. The largest production of fabric is contributed by the decentralized power


looms (61.6 per cent), followed by decentralized hosiery (21.7 per cent), handlooms (12.1


per cent), mills (3.3 per cent) and Khadi, wool, silk sector (1.4 per cent)
12


. In term of


yearly average growth, decentralized hosiery sector has grown the fastest (6 per cent)


since 2005-06, followed by decentralized power loom sector (3.9 per cent) (Table 3.6).




Table 3.6: Production of Fabrics in India (Million Square Metres)


2005-


2006


2006-


2007


2007-


2008


2008-


2009


2009-


2010


Average


growth


rate


(2005-


2009)


Mill Sector 1656 1746 1781 1796 1961 3.7


Handloom Sector 6108 6536 6947 6677 6769 2.3


Decentralized Power Loom Sector 30626 32879 34725 33648 36644 3.9


Decentralized Hosiery Sector 10418 11504 11804 12077 13623 6.0


Khadi, Wool & Silk 769 724 768 768 768 0.6


Grand Total 49577 53389 56025 54966 59765 4.1


Source: Textiles Commissioner data







12


Shares are averaged over 2005-2006 to 2009-2010.




33


The Garment sector has been the driving force for the growth of Indian T&C sector.


India‘s garment industry is characterised by a large number of independent small-scale
firms. Even in exports, scale of operation is much smaller than the internal standards. An


average Indian garment exporter has around 119 machines, compared to 698 in Hong


Kong Special Administrative Region of China and 605 in China.




3.3 Pakistan’s Textile and Clothing Sector: An Overview13




The textile and clothing sector is the most important manufacturing sector of Pakistan. It


contribute nearly 1/4
th


of industrial value addition, provides employment to about 40 per


cent of industrial labor force, consumes more than 40 per cent of banking credit to


manufacturing sectors and accounts for 8 per cent of GDP. The share of T&C in


country‘s exports is around 54 per cent.14


Pakistan is the 4
th


largest producer of raw cotton in the world and 3
rd


largest consumer of


raw cotton in the world. However, Pakistan ranks as 12
th


largest T&C exporter in the


world exports. Its ranking in textiles (yarns, fabrics, bed linen, towels and other textile


made-ups) was 10
th


in the world, with US$ 7.37 billion exports, whereas its ranking in


clothing (woven and knitted and crocheted garments) was 13
th


in the world, with US$ 3.8


billion during 2007.
15




The textile industry made an investment of about US$ 7.5 billion during the last ten years


(1999- 2009). The break up of total investment indicates that 50.2 per cent of investment


was directed in the spinning sector, followed by 17 per cent in textile processing, 15 per


cent in weaving whereas the investment in other sectors namely knitwear, made ups and


synthetic textiles were at respective rates of 7.02 per cent, 4.71 per cent and 5.76 per


cent.
16






Cost competitiveness is the key determinant for world exports. Pakistan has an advantage


of domestic raw material and robust spinning, weaving and processing capabilities.


However, its ranking on other factors of production is mixed as compared to other


regional competitors. Table 3.7 compares Pakistan, India, China, Bangladesh and


Cambodia on six cost indicators: labor cost, labor hours, electricity cost, ocean transport,


land transport and building. The hourly wage rate, labor hours and electricity cost are


lowest in Bangladesh as compared to other four countries while Pakistan ranks third. The


building cost is highest in Pakistan as compared to the other four countries.



13 Contributed by Mr. Khalid Mahmood, Executive Director,Centre for Enterprise, Trade and Development
(CETAD)


14
Pakistan Economic Survey 2009-10, Textile Policy 2010, State Bank Pakistan Annual Report 2009


15
Textile Policy 2009-2014


16
Textile Commissioner Office




34




Table 3.7: Production Input Cost Ranking of Selected Asian Countries
17





Cost Category 1 2 3 4 5


Labor cost Bangladesh Cambodia Pakistan India China


Labor hours Bangladesh China Pakistan India Cambodia


Electricity cost Bangladesh China Pakistan India Cambodia


Ocean transport


cost


China Bangladesh/Cambodia Pakistan India


Land transport


cost


Bangladesh Pakistan India China Cambodia


Building cost China Bangladesh Cambodia India Pakistan






Cotton is the principal raw material for the textile industry supplemented by synthetic


polyester staple fiber, viscose, acrylic and other fibers for final products fabrication. The


industry has increased its reliance on imports of raw cotton due to stagnant growth of


domestic raw cotton crop. Table 3.8 provides the information on the domestic production


and imports of raw cotton during the last five years in Pakistan. Mills consumption of raw


cotton increased from 2.1 million tons in 2004-2005 to 2.5 million tons in 2008-2009.


Synthetic fiber consumption increased at rapid paces as compared to raw cotton as


reflected by the share of synthetic fibers which increased from 19 per cent in 2004-2005


to 21 per cent in 2008-2009.



17


Table 3.7 and 3.8 are taken from ― Cost Competitiveness of Pakistan‘s Textiles and Apparel Industry‖,
USAID, 2009.




35


Table 3.8: Supply and Distribution of Cotton in Pakistan























Source: Textile Commissioner Office, All Pakistan Textile Mills Association (APTMA)


The Spinning Sector is the most important segment in the hierarchy of textile value chain.


At present, it is comprised of 521 textile units (50 composite units and 471 spinning


units) with 11.28 million spindles and 194 thousand rotors in operation (Table 3.9). All


Pakistan Textile Mills Association (APTMA) claims of having over 50 per cent of its


machinery with less than seven years age, thanks to over US$ 6 billion investment in the


textiles sector during 1998-2008.




Table 3.9: Supply and Distribution of Cotton in Pakistan: Installed Capacity (in


000)






Period Units Spindles


Growth


(per cent) Rotors


Growth


(per cent)


2004-05 458 10485 9.31 155 6.16


2005-06 461 10437 -0.46 155 0


2006-07 461 10513 0.73 150 -3.23


2007-08 521 11834 13 188 25


2008-09 521 11280 0.12 194 3


Source: All Pakistan Textiles Mills Limited




Spinning industry is facing numerous problems, which have hampered its


competitiveness. Interest rates have shot up since 2004-2005 to 14-16 per cent per


annum. Inflation has caused drastic price increase in the spare parts and other operational


cost. Labour wages have increased almost two folds during last five years. The industry


has also been hit hard by severe gas and electricity shortages since last over two years.




Cotton crop has been a central issue for cotton spinning industry. Cotton comprises


almost 2/3
rd


of cotton yarn product costing. Availability of sufficient cotton crop, clean


cotton, less trash contents in cotton and cotton classification/grading have been core


cotton issues of the industry over the last 15 years without much headway. Yarn


production has registered an increase despite various market related constraints since


2002-2007. The annual growth has been ranging from 3.71 per cent in 2003-2004 to


maximum 11.14 per cent during 2005-2006.


000 Bales of 375 pounds (lbs) or 170 kilograms


Years Production Imports Total


2004-2005 14,265 2,249 18,511


2005-2006 13,019 1,728 18,867


2006-2007 12,856 2,952 19,427


2007-2008 11,655 2952 18,267


2008-2009 11,819 2,659 16,885




36



The cloth production sector is very diverse in technology and economies of scale. There


are three different sub-sectors in weaving i.e., Integrated, Independent Weaving Units


and Power Loom Units. Pakistan organized mills sector is reported to have over 4,000


Air-Jet looms and 24,000 shuttleless looms.
18


There are reportedly over 300,000 power


looms installed as well. Most of cloth produced by power loom is used for Processing


Mills for textile made ups and local market consumption. Large capacity of used


shuttleless looms is now fast replacing the power looms and enjoys a significant share in


total cloth production.




Cloth produced by shuttle less and air-jet looms sector is of high quality and used in high


end of products. The bulk of cloth produced by this sector is exported. Exports of fabrics


have registered robust growth during last two decades. Table 3.10 summarise the


production of cloth and its usage by domestic market and exports. A similar trend of


usage like yarns prevails in the weaving as well, as around 75 per cent of cloth produced


is processed and consumed locally.



Table 3.10: Production, Exports and Domestic Requirement of Cloth in Pakistan




PERIOD


MILL


NON-


MILL TOTAL EXPORTS Qty. in Million


Square .Mtrs


AVAILABLE FOR


Sector Sector Production LOCAL MARKET


QUANTITY


Percentage


OF PROD. QUANTITY


per cent


OF


PROD.


2002-03 582.14 5068.38 5650.52 2005.38 35.49 3645.14 64.51


2003-04 683.39 5051.9 6833.12 2412.87 35.31 4420.25 64.69


2004-05 924.67 5556 6480.67 2751.56 42.46 3729.11 57.54


2005-06 915.26 7609 8524.26 2633.98 30.9 5890.28 69.1


2006-07 932.66 7682 8614.66 2211.74 25.67 6402.92 74.33


Figures of Non-Mill Sector are Estimated


Source : TCO






Pakistan is fairly strong in production of sheeting quality fabrics whereas its weaving


sector has not been able to develop its capability to develop similar strength in shirting


fabric. Further, its production has been concentrated into basic greige fabrics without a


worthwhile headway into more value added jacquard and yarn dyed fabrics for higher


end of shirting market. There are about 18,000 knitting machines installed in this


industry.
19






The Garment Industry provides highest value addition in textile sector. The industry


consists of small, medium and large scale units, most of them having 50 machines and


below. As per Textile Commissioner Office estimates, about 450,000 stitching machines


are installed in Pakistan‘s textiles industry.



18


Textile Commissioner Office, APTMA
19


Textile Commissioner Office




37


The bulk of the ready made garments export is in bottom wear category which includes


denim and other trouser product categories. But, Pakistan‘s share in tops is dismal due to
variety of reasons. One basic factor is lack of good quality shirting manufacturing in


Pakistan. Economy of scale is another important issue in marketing of shirting products


to leading brands of the world. Most of garment units are small and medium size. Such


fragmented capacity does not help to inspire large buyer of shirtings.




Home textile sector is a major part of value chain of processing industry which has


installed capacity of processing 4.6 billion square meters fabrics annually. Pakistan is


among the top three exporting country for home textiles. Pakistan is the largest exporting


country in the South Asian region in home textiles and other textile made ups. Pakistan


exports in home textiles and other textiles made ups (including towels) registered a


growth of 33 per cent during 2003-2008.





3.4 Sri Lanka’s Textile and Clothing Sector: An Overview20


The textiles and clothing sector contributes 6 per cent to GDP, 46 per cent to industrial


employment and nearly 40 per cent to industrial production in terms of value in Sri


Lanka. Starting with 19 firms in 1973, by 2001 the T&C industry consisted of 830 firms


and value of production of the sub-sector as a percentage of total industrial production


increased from 10 per cent in 1977 to 44 per cent in 2002
21


.




When Sri Lanka liberalized its economy in 1977, the country‘s garment industry took off
immediately, mainly as a result of quota-hopping East Asian garment exporters who were


attracted by the country‘s liberal trade regime and relocated their already well-established
garment businesses to Sri Lanka. This relocation encouraged local entrepreneurs to start


their own garment enterprises to exploit markets guaranteed by quotas, assisted by the


liberal trade regime for importation, and subsequently, incentives granted by the Board of


Investment (BOI) to selected industries
22


. Sri Lanka did not have a well-developed


export-quality textile industry base; neither did it have a base for garment industry


accessories. Thus, from the very beginning, garment production was based on imported


inputs and the value added remained low – close to 30 per cent. By about the early 1980s,
garment exports were growing rapidly and by 1986 garments accounted for the largest


share of all exports (27 per cent). By the late 1980s, garment industry in Sri Lanka was


referred to as ―glorified tailor shops‖ because, despite a decade of growth, its links with
other industries remained low and the value added remained low as before.




In 1990s, the T&C industry it grew at 18.5 per cent per annum and accounted for 43 per


cent of Sri Lanka's export revenue in 2008. Its contribution to industrial exports rose to


43 per cent. Most of the export revenue came from clothing as textiles contributed only


10 per cent of these export revenue.



20 Adopted from Saman Kelegama, ―Ready-Made Garment Industry in Sri Lanka: Preparing to Face the
Global Challenges‖, Asia-Pacific Trade and Investment Review Vol. 1, No. 1, April 2005
21


Bilesha Weeraratne (2004)
22


Saman Kelegama (2005)




38


The T&C sector has attracted large-scale investments post 1977 with the liberalisation of


the economy. Tax incentives and amendment of exchange rate regulations increased


investment from Sri Lankan rupees 205 million in 1985 to a staggering Sri Lankan rupees


2,632 million in 1993. Investment increased further post establishment of Board of


Investment in Privatization of the state owned National Textile Corporation's (NTC),


large scale Textile Mills also attracted foreign investors. Some of these privatized


ventures were subsequently converted to the Board of Investment of Sri Lanka (BOI)


Companies. Realized investment in BOI enterprises in textile and apparel increased to


US$ 417.86 million in 2002 from US$ 110 million in 1992, more than half of which


accrues to foreign investment.




According to the available data from BOI, foreign investors own close to 50 per cent of


total garment factories and account for nearly 50 per cent of total textile and garment


exports (USITC, 2004). Greater dependence on imported textile materials indicates that


Sri Lanka has a large export-oriented garment sector, but a small textile industry that has


low capacity to supply the quantity or quality of yarn and fabrics required by the garment


industry.




Value added in the T&C sector has been increasing at an average rate of 12 per cent per


annum in the period 2002-2009. However, value added in textiles has been significantly


lower than the clothing sector. In 2009, the value added by clothing sector was almost 4.5


times higher than the textiles sector (Table 3.11).


Table 3.11: Value Added in Textile and Clothing Industry in Sri Lanka (Sri Lankan


Rupees Million at current prices)




Category 2002 2003 2004 2005 2006 2007 2008 2009


Textile 12574 13340 15008 17425 19429 22885 25721 27197


Wearing


apparel 57127 60610 67082 82167 90539 104165 117075 123084


SOURCE: Central Bank of Sri Lanka




With the increase in production and investment, employment in the textile industry has


also increased. This industry provides more than 330,000 direct employment or 5 per cent


of country‘s total employment in more than 1,060 garment factories. In 2002 alone,
foreign investment in the industry resulted in creating 15,920 employment opportunities.




SMEs are an important source of employment and growth in the sector. However, unlike


bigger firms, high cost financing and the lack of collateral has discouraged investment in


technology. The competitive strength of the Sri Lankan garment industry is based on


cheap labour (Table 3.12), a literate labour force, high labour standards, investment-


friendly government policies and strategic shipping lanes.




39




Table 3.12: Salary of Worker By Skill And Location in Sri Lanka (US$/Month)




Source: UNIDO Survey, 2000


Note : Converted to US$ with 2000 average annual exchange rate.




Labour costs in Sri Lanka amount to 15 to 20 per cent of the overall cost. Many studies


point out low labour productivity in Sri Lanka. Owing to the lack of a fabric and


accessory base (lack of vertical integration), the turn-around time of Sri Lanka‘s garment
industry remains close to 90-150 days compared with the ideal international lead time of


around 60 days. This large turnaround time is an issue in the context of competitiveness,


particularly when Eastern European countries have become major suppliers of garments


to the European Union, and Mexico and Caribbean countries have become major


suppliers to the United States under preferential tariff arrangements. Moreover, this


problem is of particular concern at a time when ―just-in-time‖ delivery has become an
accepted principle and requirement in the global markets (Kelegama 2005).




40


4. BRIEF REVIEW OF LITERATURE




There exists a vast literature on regional integration in South Asia through trade, however


very few identify the potential supply chains in the region. The benefits of regional


cooperation in textiles and clothing have been discussed by ADB and UNCTAD (2008),


Robbani (2004), USITC (2004) and Tewari (2008).




ADB and UNCTAD (2008) points out the growing intra-industry trade in the T&C sector


within South Asia and the potential to increase it further. The study estimates bilateral


Grubel Lloyd index for year 1991 and 2004 and finds that IIT increased for some of the


sectors within the T&C sector. These are spinning, weaving and finished textiles; knitting


mills; and manufactures of textiles nec. The study also estimates gains to all countries in


South Asia in the T&C sector under lowering of tariffs in SAFTA.




Robbani (2004) underlines the importance of enhancing collective export


competitiveness of South Asian countries through cooperation rather than competition.


According to the study, the hourly compensation rate in all the four countries in South


Asia is among the lowest in the world. A recent study in the US shows that a plentiful


supply of low cost labour is the primary reason for sourcing by US companies from the


four countries in South Asia (USITC, 2004). Apart from the low cost of labour, the


region, as a whole, has some other competitive advantages over others. The main


advantage is the availability of raw materials. Although Bangladesh and Sri Lanka import


70 per cent and 80 per cent of their inputs respectively, India and Pakistan are net


exporters of raw materials. Textiles yarn and fabrics constitute 49.5 per cent of the total


exports of Pakistan (Gereffi, 2003), which has the third-largest installed capacity of short-


staple spindles for spun yarn in the world, after China and India. India is also the third-


largest cotton producer in the world, after China and the United States. The availability of


(cheap) raw material in the region has given a competitive advantage to the clothing


industries of not only India and Pakistan but also Bangladesh, Nepal and Sri Lanka.




Given the heterogeneity in the T&C sub-sectors across the region, there might be some


scope of regional co-operation. The T&C sub-sectors in Bangladesh, India, Pakistan and


Sri Lanka exhibit different degrees of specialisation. While firms in Pakistan specialize in


cotton textiles intermediate goods (yarn and grey fabrics), firms in Bangladesh and Sri


Lanka remain export oriented apparel producers, dependent on imported inputs such as


yarn and fabric. India has developed a highly complex sector, covering the entire value


and production chain from fibre production to garment manufacture and packaging. India


has certain unique advantages such as a wide range of fibres, both natural and man-made,


production capacities from spinning right up to apparel manufacture and cheap skilled


labour.




Firms in South Asia, generally, are not vertically integrated and are, for the most part,


independent, privately-owned and medium-size firms. (USITC 2004). To make the huge


long-term investment feasible, or to attract FDI into the sector, the region needs to be


integrated in order to enlarge the economies of scale. At least three things are necessary




41


for large investment in modernisation of the textiles sub-sector: (a) ensured supply of raw


material inputs with competitive prices, (b) necessary institutional support to integrate the


entire regional market, and (c) ensured sizeable demand for the final output. The supply


of raw material could be ensured by India and Pakistan and the demand for the final


output could be ensured by Bangladesh and Sri Lanka. This heterogeneity of resource


endowment, the differences in expertise and ensured reciprocal demand and supply


indicate that there is scope for benefit through mutual cooperation.




Tewari (2008) discusses the need for regional integration through production networks in


South Asia in the T&C sector. On the basis of analysis of trade data at the aggregate level


and structured interviews, the paper brings out the complementarities between countries


in the region and possibility of forming production network in the region in this sector.


RIS (2004) argues that the region as a whole could meet the challenge collectively if it


pursued horizontal integration, i.e., cooperation in the same or similar lines of production


and exports. Such a South Asian strategy envisages a particular South Asian country that


has gained export specialization in certain T&C product lines acting as a host for


relocated plants from other South Asian countries. In this way, the T&C sector can


become a regionally integrated sector as countries vacate certain lines of production and


gain in other lines of production according to their relative competitive advantage in the


global market. Such restructuring would promote intra-South Asian investment flows that


would be trade-creating vis-à-vis the global and regional markets. Vertical integration


from one stage of processing to another according to comparative advantage can be


considered in the subsequent phase. South Asia would thus not lose in the value-added


chain concludes the study.




In a study on exports of T&C and its cost on LDCs, Knappe (2005) suggests that firms


and countries should accelerate South-South cooperation to tap markets in other


developing countries. Moreover, increased intra-regional trade of intermediate products


improves competitiveness to exploit traditional markets in the North and to participate in


global production chains. Developing South-South trade has three dimensions: selling to


developing country markets; sourcing intermediate products for exports to developed


markets; and building relations with foreign investors. LDC businesses and governments


should consider them all. Intermediary products — fibres, fabrics and trims — are
available on world markets, but sourcing them from nearby countries can provide shorter


delivery times. Jointly responding to market requirements for the final product needs to


be the central theme of such cooperation. As it is unrealistic to assume that individual


LDCs will become vertically integrated at the national level, they can look at developing


regional and even inter-regional value chains to exploit complementarities. The study


concludes that trade in intermediate products provides a lot of scope for cooperation


between developing countries.




Magder (2005) highlights that while exporting through international supply chains was a


successful way for East Asian countries to develop their textiles and apparel industries in


the 1970s and 1980s, it is a less clear route for countries like Egypt trying to compete


today. The challenge is particularly acute given the strength of competitors like China,


and even more so in the post-MFA era. Using a supply chain model shows that




42


shortening lead times can have an impact on profits, but the effect is not substantive,


being in the range of a 0.3 per cent to 0.9 per cent increase in profits for every week of


improvement in lead times. It concludes by exploring to what extent geography, trade


preferences, and local production factors may help Egypt‘s textiles and apparel industry
carve out a role for itself in global supply chains, and provide an engine to drive


industrial upgrading throughout the country.




Gereffi (2002) uses the global commodity chains framework to explain the


transformations in production and trade networks, as well as corporate strategies, which


have altered the global apparel industry over the past decades and changed the prospects


for developing countries to enter and move up these chains. The apparel industry is


identified as a buyer-driven commodity chain that contains three types of lead firms:


retailers, marketers, and branded manufacturers. As apparel production became globally


dispersed and competition between these firms intensified, each type of lead firm


developed extensive global sourcing capabilities. While ―de-verticalizing‖ out of
production, they have fortified their activities in the high value-added design and


marketing segments of the apparel chain. In Asia, some manufacturers are integrating


forward from specification contracting to developing and selling their own brands (the


OBM role). The possibilities for integrated local industrial development are greater in


the OBM model where Asian manufacturers have developed an important form of social


capital in the guise of multifaceted and dense networks utilized in full-package supply. In


the outward-processing or production-sharing ―assembly‖ pattern, the production
networks are anchored in low-cost countries and they do not foster the kinds of local


linkages and knowledge transfers that are needed for successful upgrading strategies.




Apart from the above studies, country specific studies have also been undertaken which


have extensively discussed this issue. Kelegama (2005) emphasizes that the challenge for


Sri Lanka‘s textiles industry lies in improving its competitiveness. One strategy is to
reposition the Sri Lankan garment industry from a South Asian context and increase


competitiveness by increasing vertical integration, capturing economies of scale, focusing


on horizontal specialization, incorporating innovative designs and building a stake in


global marketing networks.




Razzaque and Raihan (2007) highlight that an important factor influencing the


competitiveness of Bangladesh is the relative cost of labour. There is an overwhelming


consensus that the cost of labour in Bangladesh's apparel industry is one of the lowest in


the world. Cross-country data on average wages of workers also support this consensus


view.




Mahmood (2009) discusses the global value chain of EU25 in the T&C sector and points


out the availability of Generalised System of Preferences-plus advantage made catalyst


difference in the export flows of Pakistan to EU 27 during 2003 and 2004. But, the year


2005 being the first non-quota year exposed the intrinsic ―strengths‖ of our T&C
industry. The most competitive sectors of spinning, weaving, bed linen and towels could


demonstrate resilience but, apparel sectors of knitwear‘s and woven could not sustain
their growth.




43




The competitiveness of the four South Asian countries in different stages of the


production supply chain in the T&C sector, as brought out in the literature, is reported in


Table 4.1.




Table 4.1: Competitiveness of South Asian Countries in Textiles and Clothing from


Literature




Country Product / level of value addition


where the country is competitive


Literature


India Cotton Chatterjee & Mohan (1993); Roy (1996);


Ramaswamy & Gereffi (1998); Bhide


(1998); Verma (2002); Chandra (1999)


Textile raw material Gereffi (2003), Robbani (2004)


Spun yarn Robbani(2004); Bhide (1998)


Short & long staple spindles, open


ended rotors


Robbani(2004)


Yarns, made-ups & some


categories of garments


Verma (2002)


Low end & low value added items Ghosh (2004)


Pakistan Spun yarn and fabrics Gereffi (2003)


Textile raw material Gereffi (2003), Robbani (2004)


Bangladesh Knit fabrics Robbani (2004)


Apparel making Robbani (2004)


Sri Lanka Garments Kelegama (2005)


Apparel making Robbani(2004)




Though there exists studies which debate and discuss the benefits of developing


production supply chains in the T&C sector in South Asia, none of the studies have, as


yet, identified at six-digit product level the supply chains that can be formed within the


region highlighting which inputs can be imported by a country and what output can be


exported. This study attempts to use product level input-output matrix and identify what


final products can be exported by the four major countries of South Asia and what inputs


can be imported from which country so as to improve the cost competitiveness of the


export of final product.




44


5. METHODOLOGY FOR IDENTIFYING THE POTENTIAL SUPPLY CHAINS


The broad trends in trade of textiles and clothing sector are indicative of the existing


demand and supply of inputs used in the sector within the region. The main aim of the


study is to identify the potential production supply chains that can be formed within the


region for improving cost competitiveness of the region as a whole. This may enable the


region to increase its share in global exports of T&C and benefit each of the countries in


the region in terms of enhanced exports, which may generate more output and


employment in the sector and enhance overall development that benefits in particular the


poor, women and youth.




The methodology adopted is based on a simple logic, which is to identify those products,


which have both demand and supply available in the region. For this purpose, those


inputs of T&C are identified, which a country imports from outside the region, though


there exists a South Asian country, which exports these inputs globally. For such inputs,


which may be from within or outside the T&C sector, both demand and supply exists in


the region. Using this logic, the following steps are undertaken to form the potential


supply chains:




Steps used to identify potential supply chains:




Step 1: Identify products for global exports in the T&C sector in four major economies in


South Asia - Bangladesh, India, Pakistan and Sri Lanka. These products fall in HS


Chapters 50 – 63. This is done by examining the global exports of each of the four
countries in each of the tariff lines at HS 6-digit level. If a country exports more than US$


100,000 of a product, the product is selected as final product for global exports in the


potential supply chain of the country concerned. The final product can be any product of


the T&C sector.




Step II: For the identified final products for global exports in each country, the inputs


used both from within the T&C sector and from other sectors are identified. This is done


by using input-output database constructed for the T&C sector by UNCTAD (through its


India Project Office). The database identifies the inputs at HS six digit codes of HS six


digit tariff lines. These inputs are labeled as stage I inputs.




Step III: After identifying the stage I inputs, which may be from T&C or other sectors, a


trade matrix is constructed for each of the input used. For the potential exports of a


country, if global imports of stage I inputs in a country is greater than US$ 100,000 and


there exists a South Asian country which exports more than US$ 100,000 of the input, the


stage I input is identified as potential input in the supply chain. This indicates that the


country exporting the final product has an import demand for the identified input and


South Asia has the capacity to supply this input. Two countries in South Asia which


export more than US$ 100,000 of the stage I input are identified. To illustrate, if a final


product is identified as a potential export product by India, then potential stage I inputs of


the final product are identified where India is globally importing more than US$ 100,000


and two other countries in South Asia are identified which are globally exporting more




45


than US$ 100,000 each and therefore have the capacity to export the stage I input to


India.




Step IV: Once the countries which can export the stage I inputs have been identified, we


identify the primary inputs used in the production of the stage I input. These primary


inputs could be, for example the chemicals used in the dyes which are used as stage I


inputs in fabrics. Similar exercise (as undertaken in Step III) is then undertaken for


identifying the countries which can export the primary inputs. Trade matrix (indicating


global exports and imports of the primary inputs) is constructed. For the country, which


can export the stage I inputs, its global imports of the primary inputs are reported. In


addition, global exports of primary inputs of the other three countries are reported. If the


global imports of a primary input is greater than US$ 100,000 the country is identified as


potential importer of the primary input. Two countries which export more than US$


100,000 of the primary input are identified. To illustrate, if Bangladesh is exporting the


final product, it may import the stage I inputs from India or Pakistan. India in turn may


import the primary inputs used in stage I inputs from Sri Lanka or Pakistan; and Pakistan


may import the primary inputs from Sri Lanka or Bangladesh.




Step V: The final supply chain consists of:




a) a final output which is exported by country X;
b) Stage I inputs which are imported by country X from other two identified


countries (Y and Z) ; and


c) Primary inputs which are imported by Y and Z from any two South Asian
countries.




The supply chain constructed for the T&C sector, based on the trade data, can be


illustrated as follows (Figure 5.1):





46


Figure 5. 1 Constructed Potential Supply Chain in Textiles and Clothing Sector


















































Using the above methodology supply chains have been identified for Bangladesh, India,


Pakistan and Sri Lanka at HS six digit codes. The trade matrix used for identifying the


potential exports and imports is constructed using three year averages (2005-2007). The


data source used for the study is COMTRADE (in World Integrated Trade Solutions). To


avoid selection of any product for which there may be exports or imports due to trans-


shipment in few years, trend from 2000-2007 in imports and exports is also examined for


each of the identified product. The products which are selected in the supply chain either


as final products or potential stage I or primary imports, which do not show consistent


trend, are deleted from the supply chains.




Thus, the supply chain identifies the final output to be globally exported by a


country, two countries that can provide the stage I inputs, which are used in


production of the final output and two other countries which can provide primary


inputs, which are used in the production of stage I inputs. It should be noted that the


final output to be exported may not necessarily be clothing. It could include yarn, fabrics


EXPORT OF
FINAL OUPUT OF


TEXTILES AND CLOTHING
TO WORLD


CTY X


IMPORT OF
Stage I INPUTS


FROM CTY I


IMPORT OF Stage I
INPUTS


FROM CTY II


IMPORT OF
PRIMARY INPUTS


FROM CTY I


IMPORT OF
PRIMARY INPUTS


FROM CTY II


IMPORT OF
PRIMARY INPUTS


FROM CTY I




IMPORT OF
PRIMARY INPUTS


FROM CTY II





47


or other upstream products. The stage I and primary inputs into yarn or fabrics are then


identified.




There is a possibility that though the capacity to supply inputs exists within South Asia,


the import may be cheaper from other countries. To consider this, the export unit values


have been reported of all South Asian countries along with the export unit values of the


major global exporter of the product to the country.




Further, for some products, only two stage supply chains could be formed. The two stage


supply chains have been identified for all the four countries along with the final output to


be exported to the world and stage I inputs to be imported. Two possible countries have


been identified from where stage I input can be imported. The export unit values of all


South Asian countries, which have global exports of more than US$100,000, indicating


some supply capacity are reported.





6. THREE STAGE SUPPLY CHAINS: COUNTRY-WISE


There are at least three different ways of analyzing potential supply chains. First, supply


chains can be analysed from the perspective of number of times a country participates in


different stages of the supply chain, either as an exporter of final product or


exporter/importer of stage I input or exporter/importer of primary inputs in the supply


chains formed. The number of stages in all supply chains in which each of the four major


countries in South Asia participates is reported in column 1 of Table 6.1.




Secondly, supply chains can be examined by tracking the flow of inputs leading to he


final exported products. For example, if a country X exports the final product (which can


be apparel, made-up, fabrics etc), it will import Stage I inputs which are used in the


production of the final products from country Y and country Y, in turn, will import


Primary inputs used in the production of Stage I inputs from country Z. To elaborate


further, two unique supply chains are formed if for exports of a particular product,


country X imports one Stage I input from country Y and country Y in turn imports two


Primary inputs from country Z for producing the Stage I input. However, there would be


four unique supply chains if country Y imports four different Primary inputs for


producing the stage I input.




In other words, under this perspective supply chains can be analysed by taking an export


product and tracking imports of its Stage I inputs and thereafter-tracing imports of


Primary inputs used in the production of Stage I inputs. It may be noted that under this


perspective each supply chain represents a unique product-country combination for


export of the final product, import of Stage I inputs relevant to production of the final


product and import of Primary inputs relevant to the production of that Stage I input.


Column 2 of Table 6 reports the number of supply chains that can be formed in the region


from exports of final product from each country. The number of supply chains based on


exports of the final products of a country that are formed should not be taken as an


indicator of that country‘s potential to integrate in regional supply chains. A better




48


indicator of this potential could be the number of times a country can participates in


different stages of all supply chains.




The third perspective examines the number of unique six-digit HS tariff lines involved in


the participation of a particular country in different stages of all the unique supply chains


as an importer, i.e., (i) as an importer of Stage I inputs linked to the final product; and (ii)


as an importer of Primary inputs linked to those Stage I inputs which can be exported by


that country. Column 3 of Table 6.1 reports the number of unique tariff lines each


country can import from the region in the potential supply chains.




Table 6.1 presents the above described three different ways of analyzing the potential


supply chains formed using the stated methodology. In addition, it also reports the


number of unique final products which a country can export (column 4); inputs that may


be imported as Stage I inputs from the region (column 5); and number of unique Primary


inputs that a country may import for production of Stage I inputs (column 6).




Table 6. 1 Number of Potential Three Stage Supply Chains and Number of Potential


Products of Import and Export


Number
of Stages


a
Country


participat


es in
three-
stage


and two-
stage
Supply
Chains


(1)


Number
of


Potential
Three
Stage


Supply
Chains
formed


by
export of


Final
Product


(2)


Total
Numbe


r of
Unique


Six


Digit
Tariff
Lines


of
import
s In
the


Potenti
al


Three
Stage
and
two-


stage
Supply


Chains
(3)


Number of
Unique Six
Digit Tariff


Lines
Identified


as
Potential


Final
Product for
Exports in


Three-
Stage and


two-stage
Supply
Chains


(4)


Number of
Unique Six
Digit Tariff


Lines
Identified as


Potential
Imports of


Stage I
Inputs in


Three-Stage
and two-


stage


Supply
Chains (5)


Number of
Unique Six
Digit Tariff


Lines
Identified as


Potential
Imports of
Primary
Inputs in


Three-Stage
Supply
Chains


(6)


Banglade
sh


245 109 65 15 19 47


India 1032 212 38 37 25 19


Pakistan 795 67 117 29 27 103


Sri Lanka 418 363 36 8 34 2






The number of stages of a country‘s participation in all supply chains i.e., (number of
times it appears in the potential supply chains either as an exporter of final product or




49


exporter/importer of stage I input or exporter/importer of primary inputs) is reported in


column 1 of Table 6.1. India participates in the maximum number of stages in the


identified supply chains, which is 1,032; followed by Pakistan-795; Sri Lanka-418; and


Bangladesh-245. From this perspective, the more diverse the range of inputs of the T&C


sector exported/imported by a country, the higher will be its participation in different


stages of the potential supply chains.




From the second perspective of export of final product, the details are reported in column


2 of Table 6.1. The final product identified for global exports forms 109 supply chains in


Bangladesh, 212 in India, 67 in Pakistan and 363 in Sri Lanka. A plausible reason for


lower number of potential supply chains formed for Pakistan is that the final products


exported by Pakistan are more of textiles than clothing. Textiles, as compared to clothing,


may have lower backward linkages in terms of inputs used for production of final


product.




From the third perspective of number of unique tariff lines that can be imported by a


country in the identified potential supply chains, Bangladesh can import 65 Stage I and


primary inputs, India 38 inputs, Sri Lanka 36 inputs and Pakistan 117 inputs. Most of the


inputs identified for Pakistan are non-textiles inputs which are used in the T&C sector.


The more number of inputs globally imported by a country, the more number of


importable inputs are identified in the potential supply chains to be formed in South Asia.




There are 15 unique T&C tariff lines identified as final product for global exports that


can form supply chains within the region for Bangladesh. For India 37 unique tariff lines


have been identified; 29 for Pakistan and 8 for Sri Lanka. It should be noted that the


potential final product need not necessarily comprise clothing but can also be raw


materials like fabrics or yarn. The unique first stage inputs identified, which can be


imported from within the region are maximum for Sri Lanka (34), closely followed by


Pakistan (27), India (25) and Bangladesh (19). The number of potential primary inputs


that are used in the first stage inputs can be imported are the maximum for Pakistan


(103), followed by Bangladesh (47), India (19) and Sri Lanka (2).




Having examined the number of unique tariff lines involved in each stage of the unique


supply chains in which a country participates, it is relevant to assess whether existing


trade flows point towards the possibility of establishing regional supply chains in T&C


sector in South Asia. Three aspects are relevant in this assessment. First, does the country


have an import demand for Stage I and Primary inputs; second, the extent to which the


import demand is met from countries within and outside the region; and third, whether


other countries in the region have the export capacity to meet the import demand. Table


6.2 presents country-wise global and regional imports of the tariff lines identified as stage


I input or primary inputs in the potential supply chains. It is interesting to note that in


respect of all the four countries, the imports of inputs are mainly from sources outside the


region, although supply capacity exists within the region.




Estimating the percentage share of a country‘s global imports of the identified inputs to
the region‘s global exports of these inputs, it is found that Bangladesh‘s global imports of




50


these identified inputs comprise only around 18 per cent of the region‘s global exports of
these inputs. For Pakistan and Sri Lanka, these are around 7.5 per cent and 9 per cent


respectively. This indicates that supply capacity exists within the region to cater to the


demand for the identified inputs by the region.




However, India‘s global imports of the identified inputs is around 350 per cent of the
region‘s global exports indicating that India‘s demand for the identified inputs is much
more than the region‘s capacity to export. This may be a result of diverse production
structure of India in the T&C sector, which ranges across the entire value chain. It also


indicates the role that India can play in generating demand for the inputs within the


region.


Table 6. 2 Global and Regional Imports of Identified Inputs in Potential Supply


Chains: Average of 2005-2007



Global


Imports


(US$'000)


Imports from


other three


Countries of the


Region


(US$'000)


Global


Exports of


Other Three


Countries in


the Region


(US$'000)


Imports


from the


Region as


per cent of


Country’s


Global


Imports


Global


Imports of


a country


as a per


cent of


Global


Exports of


the Region


Bangladesh 493,150 146,628 2,690,257 29.7 18.3


India 4,834,969 221,657 1,380,133 4.5 350.3


Pakistan 1,166,083 202,466 15,543,371 17.3 7.5


Sri Lanka 327,176 94,808 3,623,488 28.9 9.0




The existing regional imports of the inputs compared to total import demand are found to


be very low (Table 6.2). Only in the case of Bangladesh and Sri Lanka, the regional


imports are around 30 per cent. India‘s regional imports are the lowest at less than 5 per
cent, indicating the potential of intra-regional trade for India. However, India‘s export
demand is significantly higher than the export capacity within the region.




To analyse the reasons for low regional imports, country level analysis is undertaken of


the identified inputs in the supply chain along with the export unit values of the countries


in the region. Country-wise participation in supply chains is presented in the following


sections. The existing tariffs on these identified products for imports in each country are


reported along with the indication of whether the product appears in the sensitive list of


the countries.




It should be noted that the exercise undertaken to identify supply chains is not exhaustive


but is demonstrative in nature. At the country level, only those products have been




51


selected as final products for exports, where the country ranks either highest or second


highest in terms of global exports.






6.1 Participation of Bangladesh in Potential Three-Stage and Two-Stage
Supply Chains

By adopting the above methodology, three-stage supply chain, and two-stage supply


chain (where only first stage inputs have been identified) for Bangladesh has been


constructed. The unique tariff lines identified as final product for exports and inputs for


imports in two-stage or three-stage potential supply chains are presented in Table 6.3


along with Bangladesh‘s demand and the region‘s supply capacity.


Table 6.3 highlights that in most of the inputs identified in the potential supply chains,


Bangladesh‘s global imports are much higher than the imports from within the region.
The global exports of the region emphasize the region‘s capacity to meet the import
demand. It is also found that the supply capacity of the region in most of the products is


much more than what is globally imported by Bangladesh indicating that the region has a


supply capacity to fulfill Bangladesh‘s demand for the inputs.


There are 15 products identified as final products that may be exported by Bangladesh.


These are the products that have been exported by more than US$ 100,000 globally
23


by


Bangladesh, and the country ranks as the highest or second highest exporter in the region.


These products are mainly from chapter 61(Articles of apparel and clothing accessories,


knitted or crocheted) and 62 (Articles of apparel and clothing accessories, not knitted or


crocheted) and include products like women and girls suits, ensembles, jackets, blazers;


men‘s or boy‘s shirts; T-shirts, jersey, pullovers, cardigans; women‘s overcoats, capes,
cloaks; men‘s or boys‘ suits, ensembles, jackets, etc. It should be noted that there may be
many more products that Bangladesh exports to the world which value more than US$


100,000, but the identified products are those which have the potential to form supply


chains in the region. In other words, there exists a possibility of regionally importing their


stage I inputs and further in most of the cases, the primary inputs.




The final products for exports also include a few woven fabrics of silk and synthetic


filament. These products have a low share of Bangladesh in South Asia‘s exports since
the country that ranks highest (in this case India) has around 98-99 per cent share in the


region‘s exports. However, these products do show a rising trend and can be considered
as potential exports of Bangladesh.




The Stage I inputs that are used in production of the final products for global exports are


from both the T&C sector as well as from other sectors, which are non-textile. There are


13 products identified from the T&C sector that can be regionally imported by


Bangladesh since there exists a global supplier of the product in the region. In most of


these products Bangladesh is importing less than 20 per cent of its global imports from


the region, while the region‘s capacity to supply globally exists, i.e., global exports of the



23


Using average of 2005-07




52


region is much higher than Bangladesh‘s global imports. These products are raw silk;
yarn spun from silk waste; yarn of other vegetable textile fibres; synthetic filament yarn;


synthetic staple fibres; wadding of textiles materials; and quilted textile products. Only in


two products, namely raw silk and wadding of textiles materials, Bangladesh‘s global
demand is higher than the region‘s supply.


There are six non T&C products that are used as Stage I inputs in the final products


identified for global exports for Bangladesh. These are mainly synthetic organic coloring


matter; lubricating preparations; finishing agents; and diagnostic and laboratory reagents.


Except for lubricating preparations, Bangladesh imports from the region is less than 25


per cent of its total global imports, while the region‘s global exports are much higher than
Bangladesh‘s global imports, except for finishing agents. Bangladesh‘s regional imports
of lubricating preparations are around 26 per cent and that of synthetic organic coloring


matter (320415) is 36 per cent from the region. This shows the potential that exists in


term of global demand for inputs of Bangladesh, which can be met within the region,


leading to effective supply chains.




There are 47 products that have been identified as primary inputs of Stage I inputs.


Except for yarn spun from silk waste, all the products are from non T&C sector. Out of


these, regional imports of 35 products are less than 20 per cent in Bangladesh, while only


in 5 products the regional supply is insufficient compared to Bangladesh‘s global
demand. In all other products there exists a global exporter of the product in the region.




Table 6.3: Output and Inputs of Potential Exports and Potential Imports in the


Identified Three-Stage and Two-Stage Supply Chains for Bangladesh: (using


averages of 2005-07)






S.No.


Final
Output
for
Exports


Description Banglad
esh's
Average
global
Exports


(US$'00
0)


Bangladesh’s
Share in South
Asia’s Exports
(percentage)


Share of
South
Asia in
Global
Exports


(percenta
ge)


1 500720 Woven fabrics of silk or of silk


waste(OTHER WOVEN
FABRICS,CONTAINING>=85 per cent


BY WT OF SILK OROF SILK WASTE
OTHR THN NOIL SLK )


140 0.4 16.0


2 510710 Yarn of combed wool, not put up for
retail sale(YARN OF COMBED WOOL
CONTNG>=85 per cent WOOL BY WT
NOT PUT UP FOR RETAIL SALE )


250 1.0 2.0


3 540752 Woven fabrics of synthetic filament
yarn, including woven fabrics obtained
from materials of heading
5404(WOVEN FABRICS,DYED,CNTNG
BY WT>=85 per cent TEXTURED


POLYESTER FILAMENTS )


2,587 2.0 2.0


4 570500 Other carpets and other textile floor 2,982 1.0 23.0




53


coverings , whether or not made
up(OTHR CRPTS & TXTL FLR
CVRNGS,W/N MADE UP )


5 610463 Women's or girls' suits, ensembles,
jackets, blazers, dresses, skirts,
divided skirts, trousers, bib and brace
overalls, breeches and shorts (other
than swim wear), knitted or
crocheted(TROUSERS,BIB & BRACE


OVERALLS,BREECHES AND SHORTSOF
SYNTHETIC FIBRES )


6,858 42.0 1.0


6 610590 Men's or boys' shirts, knitted or
crocheted(SHIRTS OF OTHR TEXTILE
MATERIAL )


68,234 35.0 42.0


7 610910 T-shirts, singlets and other vests,


knitted or crocheted(T-SHIRTS ETC OF
COTTON )


1,698,51


0
49.0 16.0


8 610990 T-shirts, singlets and other vests,
knitted or crocheted(T-SHIRT ETC OF


OTHER TEXTILE MATERIALS )


117,701 40.0 4.0


9 611011 Jerseys, pullovers, cardigans,
waistcoats and similar articles, knitted
or crocheted(JERSEYS, PULLOVERS,
CARDIGANS ETC OF WOOL )


11,731 12.0 2.0


10 611020 Jerseys, pullovers, cardigans,
waistcoats and similar articles, knitted
or crocheted(JERSEYS ETC OF COTTON
)


222,167 46.0 3.0


11 611030 Jerseys, pullovers, cardigans,


waistcoats and similar articles, knitted
or crocheted(JERSEYS ETC OF MAN-
MADE FIBRES )


159,789 83.0 1.0


12 620212 Women's or girls' overcoats, car-coats,
capes, cloaks, anoraks (including ski-
jackets), wind-cheaters, wind-jackets


and similar articles, other than those of
heading 6204(OVERCOATS,RNCOTS
ETC &SMLR ARTCLS OF COTN )


5,006 32.0 2.0


13 620293 Women's or girls' overcoats, car-coats,
capes, cloaks, anoraks (including ski-
jackets), wind-cheaters, wind-jackets


and similar articles, other than those of
heading 6204(OTHER GARMENTS OF


MAN-MADE FIBRES OF HEADING NO.
6202 )


6,074 66.0 0.0


14 620333 Men's or boys' suits, ensembles,


jackets, blazers, trousers bib and brace
overalls, breeches and shorts (other
than swimwear)(JACKTS & BLAZERS
OF SYNTHETIC FIBRES )


133,452 63.0 13.0


15 620343 Men's or boys' suits, ensembles,
jackets, blazers, trousers bib and brace


overalls, breeches and shorts (other
than swimwear)(TROUSERS,BIB &
BRACE,OVERALLS,BREECHES &
SHORTS OF SYNTHETIC FIBRS,MEN'S
OR BOYS' )


107,366 52.0 6.0


S.No. Stage I Description Banglad Bangladesh's Global




54


Inputs
of


Imports


esh's
average


global
imports


(US$'00
0)


average
imports from


India, Pakistan
and Sri-Lanka


( per cent)


exports of
India,


Pakistan
and Sri-


Lanka
(US$'000)


1 320411 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3 to


this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(DISPERSE DYES &
PREPARATIONS BASED THEREON )


9,172 8.6 16,330


2 320415 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3 to
this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as


luminoph(VAT DYES (INCL THOSE
USABLE IN THAT STATE AS PPIGMNTS
& PREPRATIONS BASED THEREON )


5,315 35.7 33,900


3 320420 Synthetic organic coloring matter
whether or not chemically defined;


preparations as specified in Note 3 to
this Chapter based on synthetic


organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(SYNTHETIC ORGANIC
PRDCTS OF A KIND USED AS


FLUORESCENT BRIGHTENING AGENTS
)


2,873 14.0 40,846


4 340311 Lubricating preparations (including
cutting-oil preparations, bolt or nut
release preparations, anti-rust or anti-


corrosion preparations and mould
release preparations, based on
lubricants) and preparations of a kind
used for the oil or grease treatment


o(PRPNS FOR THE TRTMNT OF TXTL
MATRLS LEATHER FURSKINS/OTHER
MATERIALS CONTNG PETROLIUM


OILS/OIL OBTND FROM BITMNS
MNRLS )


1,427 26.3 1,271


5 380991 Finishing agents, dye carriers to
accelerate the dyeing or fixing of dye-
stuffs and other products and
preparations (for example, dressings


and mordants), of a kind used in the
textile, paper, leather or like
industries, not elsewhere specified or
include(PRPNS USD IN TXTL INDUSTRY
)


42,902 3.2 16,606


6 382200 Diagnostic or laboratory reagents on a 7,306 8.5 16,303




55


backing and prepared diagnostic or
laboratory reagents whether or not on
a backing, other than those of heading
3002 or 3006 certified reference


materials(COMPST
DIAGNOSTIC/LABRTRY REAGNTS EXCL
GOODS OF HDG. NO. 3002/3006 )


7 500200 Raw silk (not thrown)(RAW SILK (NOT
THROWN) )


3,598 0.0 2,604


8 500500 Yarn spun from silk waste, not put up
for retail sale(YRN SPN FRM SLK WST
NT PUT UP FR RETAL SLE )


2,031 0.0 5,867


9 510529 Wool and fine or coarse animal hair,
carded or combed (including combed


wool in fragments)(WOOL TOPS AND


OTHER COMBED WOOL )


478 78.7 24,186


10 520511 Cotton yarn (other than sewing
thread), containing 85 per cent or
more by weight of cotton, not put up


for retail sale (SNGL YRN OF UNCMBD
FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14 MTRC NO)
)


43,509 99.5 500,799


11 520942 Woven fabrics of cotton, containing 85
per cent or more by weight of cotton,


weighing more than 200 g/m2(DENIM
)


156,691 28.4 207,189


12 530890 Yarn of other vegetable textile fibres;
paper yarn(OTHER VEG TEXTL YARN )


230 0.0 953


13 540233 Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic monofilament
of less than 67 decitex(TEXTURED
YARN OF POLYESTERS )


30,725 12.7 116,748


14 550320 Synthetic staple fibres, not carded,


combed or otherwise processed for
spinning(STAPLE FIBRES OF
POLYESTER NT CRD/CMBD )


39,011 17.4 127,279


15 550410 Artificial staple fibres, not carded,
combed or otherwise processed for
spinning(VISCOSE RAYON STAPLE


FIBRES NT CRD/COMBD )


4,243 76.0 35,179


16 550620 Synthetic staple fibres, carded combed


or otherwise processed for
spinning(STAPLE FIBRS OF
POLYESTERS,CARDED/COMBED )


113 13.3 745


17 550630 Synthetic staple fibres, carded combed
or otherwise processed for
spinning(STAPLE FIBRES OF
ACRYLC/MODACRYLC,CRD/CMBD )


142 52.1 732


18 560122 Wadding of textile materials and


articles thereof; textile fibres, not
exceeding 5 mm in length (flock),
textile dust and mill neps(WADDING
OF MAN-MADE FIBRES )


704 0.0 257


19 581100 Quilted textile products in the piece,


composed of one or more layers of


textile materials assembled with


351 0.0 5,072




56


padding by stitching or otherwise,
other than embroidery of heading
5810(QUILTED TXTL PRDCTS IN THE
PIECE CMPSD OF ONE/MORE LAYERS


OF TXTL MATRLS ASSMBLD
WTHPDDNG BY STICHING ETC EXCPT
HDG 5810 )


S.No. Primary
Inputs


of
Imports


Description Banglad
esh 's


Average
global


imports
(US$
'000)


Bangladesh's
average


imports from
Pakistan, Sri


Lanka and
India


(percentage)


Global
Exports of


Pakistan,
Sri Lanka
and India


( US$ '
000)


1 250100 Salt (including table salt and denatured


salt) and pure sodium chloride,
whether or not in aqueous solution or
containing added anti-caking or free
flowing agents; Sea water(SALT (INCL
TABLE SALT & DENATRD SALT) & PURE
SODIM CHLRDE W/N AQS SOLN SEA
WTR )


2,918


83.6


34,890


2 280920 Diphosphorus pentaoxide; phosphoric
acid and polyphosphoric acids whether
or not chemically defined(PHOSPHORIC
ACID & POLYPHOSPHORIC ACIDS )


8,386


50.0


5,073


3 281000 Oxides of boron;boric acids(OXIDES OF
BORON BORIC ACIDS )


239
4.2


677


4 281511 Sodium hydroxide (caustic soda);


potassium hydroxide (caustic potash);
peroxides of sodium or
potassium(SOLID SODIUM HYDROXIDE


(CAUSTIC SODA) )


19,626


3.0


7,380


5 281512 Sodium hydroxide (caustic soda);
potassium hydroxide (caustic potash);
peroxides of sodium or
potassium(NAOH IN AQS SOLN (SODA


LYE OR LQD SODA) )


1,163


0.3


682


6 281520 Sodium hydroxide (caustic soda);
potassium hydroxide (caustic potash);
peroxides of sodium or
potassium(POTASSIUM HYPROXIDE
(CAUSTIC POTASH) )


121


2.5


2,681


7 282739 Chlorides, chloride oxides and chloride
hydroxides; bromides and bromide
oxides; iodides and iodide
oxides(OTHER CHLORIDE; NES )


347


27.1


15,667


8 283210 Sulphites; thiosulphates(SODIUM
SULPHITE )


221
3.6


1,249


9 283620 Carbonates; peroxocarbonates
(percarbonates); commercial
ammonium carbonate containing
ammonium carbamate(DISODIUM


CARBONATE )


23,345


32.8


31,534


10 283640 Carbonates; peroxocarbonates
(percarbonates); commercial
ammonium carbonate containing


ammonium carbamate(POTASSIUM


132


0.0


410




57


CARBONATES )


11 284700 Hydrogen peroxide, whether or not


solidified with urea(HYDROGEN
PEROXIDE W/N SOLIDIFIED WITH
UREA )


5,135


3.8


759


12 290330 Halogenated derivatives of
hydrocarbons(FLUORNTD,BRMNTD/IOD
INATED DERIVATIVES OF ACYCLIC


HYDROCARBONS )


247


0.0


1,028


13 290410 Sulphonated, nitrated or nitrosated
derivatives of hydrocarbons, whether
or not halogenated(DRVTVS CNTNG
ONLY SULPHO GROUPS, THEIR SALTS


AND ETHYL ESTERS )


1,440


2.8


70,667


14 290420 Sulphonated, nitrated or nitrosated
derivatives of hydrocarbons, whether
or not halogenated(DRVTVS CNTNG
ONLY NITRO/NITROSO GRPS )


540


98.3


5,175


15 290511 Acyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(SATURATED METHANOL
(METHYL ALCOHOL) )


2,225


1.5


8,791


16 290512 Acyclic alcohols and their halogenated,


sulphonated, nitrated or nitrosated
derivatives(SATURATED PROPAN-
1OL(PROPYL ALCOHOL) AND PROPAN-
2-OL (ISOPROPYL ALCOHOL) )


1,363


0.4


5,556


17 290513 Acyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated


derivatives(SATURATED BUTAN-1-
OL(N-BUTYL ALCOHOL) )


127


0.0


2,858


18 290516 Acyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(SATRTD OCTNL(OCTYL


ALCHL)& ISMRS THEREOF )


4,389


0.0


1,363


19 290629 Cyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(OTHER AROMATIC
ALCOHOL )


123


10.6


9,839


20 290711 Phenols; phenol-alcohols(PHENOL
(HYDROXYBENZENE) AND ITS SALTS )


152
6.6


4,517


21 290930 Ethers, ether-alcohols, ether-phenols,
ether-alcohol-phenols, alcohol


peroxides, ether peroxides, ketone


peroxides (whether or not chemically
defined), and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(ARMTC ETHRS & THR
HALGNTD SLPHNTD NITRATED OR
NITROSATED DERIVATIVES )


200


5.0


13,060


22 291469 Ketones and Quinones, whether or not
with other oxygen function, and their
halogenated, sulphonated, nitrated or
nitrosated derivatives(OTHER
QUINONES )


128


28.1


1,158


23 291521 Saturated acyclic monocarboxylic acids
and their anhydrides, halides,


peroxides and peroxyacids; their


4,928


51.2


11,916




58


halogenated, sulphonated, nitrated or
nitrosated derivatives(ACETIC ACID )


24 291524 Saturated acyclic monocarboxylic acids


and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated or
nitrosated derivatives(ACETIC
ANHYDRIDE )


712


2.4


897


25 291539 Saturated acyclic monocarboxylic acids
and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated or
nitrosated derivatives(OTHER ESTERS
OF ACETIC ACID )


1,005


0.6


30,360


26 291550 Saturated acyclic monocarboxylic acids


and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated or
nitrosated derivatives(PROPIONIC
ACID ITS SALTS AND ESTERS )


143


2.8


1,836


27 291631 Unsaturated acyclic monocarboxylic
acids, cyclic monocarboxylic acids,
their anhydrides, halides, peroxides
and peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(BENZOIC ACID ITS SALTS


AND ESTERS )


470


10.9


8,146


28 291735 Polycarboxylic acids, their anhydrides,
halides, peroxides and peroxyacids;


their halogenated, sulphonated,
nitrated or nitrosated
derivatives(PHTHALIC ANHYDRIDE )


3,418


12.4


70,597


29 291739 Polycarboxylic acids, their anhydrides,
halides, peroxides and peroxyacids;
their halogenated, sulphonated,
nitrated or nitrosated derivatives(OTHR
ARMTC PLYCRBOXYLC ACIDS THR


ANHYDRDS HALIDES PEROXIDES
PEROXYACDS & THR DRVTVS )


106


19.8


22,244


30 291830 Carboxylic acids with additional oxygen
function and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated or


nitrosated derivatives(CRBXYLC ACIDS
WTH ALDHYD/KETONE FNCTN BUT
WTHOUT OTHR OXYGN FNCTN THR
ANHYDRDS HALDS PEROXIDES
PEROXYACIDS & THR DRVTVS )


1,550


11.5


3,210


31 291890 Other Carboxylic Acids With Oxygen
Function, Their Anhydrides, Halides


863
17.4


4,068


32 292090 Esters of other inorganic acids of non-
metals (excluding esters of hydrogen
halides) and their salts; their
halogenated, sulphonated, nitrated or


nitrosated derivatives(OTR ESTERS OF
OTR INORGNC ACDS;THRSLTS ETC )


170


24.1


25,061


33 292119 Amine function compounds(OTHR


ACYCLIC MONOAMINES & THEIR


129
6.2


4,889




59


DEVIVATIVES SALTS THEREOF )


34 292142 Amine function compounds(ANILINE


DERIVATIVES AND THEIR SALTS )


269
0.0


46,376


35 292151 Amine function compounds(O-M-P-
PHENYLENEDIAMINE
DIAMINOTOLUENE AND THEIR DRVTVS
SALTS THEREOF )


148


90.5


19,581


36 292229 Oxygen-function amino-
compounds(OTHR AMINO-NAPTHLS &
OTHR AMINO-PHNLS THR ETHRS &
ESTRS OTHR THN THOSE CNTNG
MORE THN ONE KND OF EXYGN FNCTN
SLTS THEREOF )


1,821


1.0


34,798


37 292419 Carboxyamide-function compounds;


amide-function compounds of carbonic
acid(OTHER ACYCLIC AMIDES & THR
DRVTVS,SALTS )


502


14.5


30,126


38 292429 Carboxyamide-function compounds;


amide-function compounds of carbonic
acid(OTHR CYCLC AMIDES(INCL CYCLC
CRBAMATES) & THEIR DERIVATIVES &
SALTS THEREOF )


2,484


4.8


12,290


39 292700 Diazo-, azo- or azoxy-


compounds(DIAZO-AZO-OR AZOXY-
COMPOUNDS )


356


2.2


5,445


40 293349 Heterocyclic compounds with nitrogen
hetero-atom(s) only(OTHE CMPNDS
CNTNG IN STRUCTURE A
QUINOLINEOR ISOQUINOLINE RING


SYSTEM (W/N HYDRGNTD),NOT
FURTHER FUSED )


2,438


7.3


12,064


41 300420 Medicaments(excluding goods of
heading 3002,3005 or 3006) consisting
of mixed or unmixed products for


therapeutic or prophylactic uses, put
up in measured doses(including those
in the form of transdermal
administration systems) or in forms or
packings for(MEDICAMENTS
CONTAINING OTHER ANTIBIOTICS
AND PUT UP FOR RETAIL SALE )


4,690


65.2


406,778


42 320417 Synthetic organic coloring matter
whether or not chemically defined;


preparations as specified in Note 3 to
this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(PIGMENTS & PREPTNS
BASED THEREON )


8,474


26.5


233,734


43 340211 Organic surface-active agents (other
than soap), surface-active


preparations, washing preparations
(including auxiliary washing
preparations) and cleaning
preparations, whether or not
containing soap, other than those of


Heading 3401(ANIONIC W/N FOR RTL


5,313


5.3


24,470




60


SALE )


44 380610 Rosin and resin acids, and derivatives


thereof; rosin spirit and rosin oils; run
gums(ROSIN AND RESIN ACIDS: )


135


1.5


1,960


45 390750 Polyacetals, other polyethers and
epoxide resins, in primary forms;
polycarbonates, alkyd resins,
polyallylesters and other polyesters, in


primary forms(ALKYD RESINS )


294


11.6


1,384


46 500500 Yarn spun from silk waste, not put up
for retail sale(YRN SPN FRM SLK WST
NT PUT UP FR RETAL SLE )


2,031


0.0


5,867


47 760110 UNWROUGHT
ALUMINIUM(ALUMINIUM-NOT ALLOYED


)


29,343


45.9


300,151






Table A.1 in the Appendix reports the unique tariff lines which are identified as potential


imports of Bangladesh from the region. The Table reports the share of the Bangladesh in


global imports of the region; the top exporter of the product to Bangladesh and its share


in global imports of Bangladesh; export unit values of the top exporter and other three


countries in the region. It should be noted that the export unit values can be taken only as


indicative of the export prices of the product and may not be comparable across countries


as the quality of the product may vary. However, these do indicate the presence of


potential exporter of the product in the region.




Consultations with the industries of Bangladesh, India, Pakistan and Sri Lanka pointed


out that, though the export prices of countries may not be comparable at six-digit level,


this information of presence of suppliers of the products in the region may be useful for


the importer and can be a useful tool for formation of supply chains.




There are 65 unique products identified for regional imports by Bangladesh. 13 inputs are


from the T&C sector. Out of these 13 inputs, which are globally imported by Bangladesh,


in 10 inputs the export unit value of at least one of the supplier in the region is lower than


the export unit value of the top exporter. One of the input in which the top exporter to


Bangladesh (which is Thailand) has export unit value lower than any other supplier in the


region is Synthetic filament yarn, other than sewing thread (540233). 52 identified inputs


are from non T&C sector, out of which in 19 inputs, the export unit value of at least one


of the supplier in the region is lower than the top exporter of the product to Bangladesh.


Out of the identified 65 inputs, which Bangladesh can import regionally, 12 inputs are


included in Bangladesh‘s Sensitive List in SAFTA.













61


6.2 Participation of India in Potential Three- Stage and Two-Stage Supply
Chain


Using the same methodology, three-stage and two-stage supply chains for India have


been identified. The identified products include products for global exports; imports as


Stage I inputs; and primary inputs, which are globally exported/imported above the


threshold of US$ 100,000. These do not include all exportable products of India in T&C


sector with exports above the threshold, but includes only those exportable products,


which have the potential for forming supply chain within the region. Also, these are the


products in which India is either the highest or second highest global exporter of the


region.




The analysis shows that there are 37 products for global exports from the T&C sector,


which have the potential to form supply chains within the region (Table 6.4). These


include silk yarn; cotton yarn; woven fabrics of cotton; synthetic filament yarn; woven


fabrics of synthetic filament yarn; carpets; knitted and crocheted fabrics; women suits,


jackets, blazers, etc; t-shirts, other vests, etc; other garments; shawls, scarves, and the


like; other furnishing articles. Out of 37 products, in 36 products, India has more than 10


per cent share in global exports from the region. In 10 products, India‘s share in region‘s
global exports is more than 90 per cent. In 13 products, the South Asia region contributes


more than 10 per cent of global exports.




There are 24 products identified for imports from the region by India. These are the


products which are globally imported by India, but there exists regional suppliers who are


globally exporting more than US$ 100,000. There are 18 products from T&C and 6


products from non- textiles sector. Products under T&C include woven fabrics of silk or


silk waste; wool and yarn of wool; cotton, cotton yarn and woven fabrics of cotton;


synthetic filament yarn; synthetic staple fibres; yarn of synthetic staple fibres; wadding of


textile materials; rubber thread and cord, textile covered; quilted textile products and pile


fabrics. Some of these products are produced and exported by india as well, but some


differentiated products under the same tariff lines are being globally imported by India.


From the non T&C sector, the products, which may be imported by India from the region


are synthetic organic coloring matter, and some starches and finishing agents (from


chapter 3204, 3206, 3505 and 3809). However, only in 7 out of 25 Stage I inputs, India‘s
global imports are less than the region‘s global exports, which indicates the insufficient
supply capacity of the region to fulfill India‘s demand. But, in 21 out of 25 products,
India‘s regional imports are less than 10 per cent of its total global imports. This indicates
the potential of forming regional supply chains by India.




In the list of identified primary inputs of Stage I inputs, which India may import


regionally, there are 19 products, of which, 14 belong to the non T&C sector. In 16 out of


19 products, India imports less than 10 per cent regionally, while in only 4 products,


India‘s global imports are lower than region‘s global exports. This indicates that though
the region‘s supply capacity is limited in terms of fulfilling India‘s global demand for the
inputs, whatever the given supply capacity, only a small part of it is being tapped by


India.




62




Appendix Table A.2 reports unique tariff lines, which are identified in the potential


supply chains that India can regionally import. To assess the feasibility of regional


imports, export unit value of the top exporter of these products to India is reported along


with export unit values of three other countries of the region. There are 38 tariff lines, of


which 19 are from the T&C sector. Out of these 38 products, only in 8 products, the


export unit value of the top exporter is lower than the export unit value of the regional


exporters. In two of the products of the T&C sector (synthetic filament yarn and synthetic


staple fibres), China has lower export unit value as compared to regional exporters. This


indicates the feasibility and rationale for regional supply chains that have been identified.


However, this should be taken only indicative in nature, as the export unit values may not


be comparable at this level of aggregation.




It was also pointed out by the stakeholders that there can be many other factors like


quality, timely delivery, etc which may influence the decision to import regionally or


globally. While, this is true the fact that the regional suppliers are also global exporters,


exporting more than US$ 100,000 indicates the possibility of the regional supplier being


in a position to meet the other demands of the importer. Further, the table reports that 12


out of 38 products are listed as India‘s sensitive products under SAFTA for non LDCs.
For LDCs, 3 products are in the Sensitive List. There exists scope for India to reduce its


import unit values from within the region and make its exports more competitive.





63




Table 6.4: Output and Inputs of Potential Exports and Potential Imports in the


Identified Three-Stage and Two-Stage Supply Chains for India
S.No. Final


Output
for


Exports


Description India's
average
global


Exports
(US$'000)


Share of
India's


Exports in
SA Exports


(
percentage


)


Share of
South Asia in


world
exports


(percentage)


1 500400 Silk yarn (other than yarn spun from silk waste)
not put up for retail sale(SLK YARNS(OTHR
THN YRN SPUN FROM SLK WSTE)NT PUT
UP FOR RETAIL SALE )


1,206 99.0 0.0


2 510620 Yarn of carded wool, not put up for retail
sale(YARN OF CRDED WOOL CONTNG)


2,686 99.0 1.0


3 520300 Cotton, carded or combed(COTTON CARDED
OR COMBED )


4,587 28.0 7.0


4 520511 Cotton yarn (other than sewing thread),
containing 85 per cent or more by weight of
cotton, not put up for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14 MTRC NO) )


353,778 70.0 68.0


5 520921 Woven fabrics of cotton, containing 85 per cent
or more by weight of cotton, weighing more than
200 g/m2(BLEACHED COTON
FABRICS,PLAIN WEAVE WEIGHING MORE
THN 200 GM PER SQM )


12,313 74.0 18.0


6 520931 Woven fabrics of cotton, containing 85 per cent
or more by weight of cotton, weighing more than
200 g/m2(DYED PLAIN WEAVE COTTON
FABRICS WEGHNG MORE THAN 200 GM
PER SQM )


19,282 7.0 33.0


7 520942 Woven fabrics of cotton, containing 85 per cent
or more by weight of cotton, weighing more than
200 g/m2(DENIM )


121,929 59.0 6.0


8 540233 Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(TEXTURED YARN OF POLYESTERS )


100,183 85.0 5.0


9 540239 Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(OTHER TEXTURED YARN )


6,680 88.0 2.0


10 540320 Artifical filament yarn (other than sewing
thread), not put for retail sale, including artificial
mono filament of less than 67
decitex(ARTIFICIAL TEXTURED YARN )


1,243 25.0 20.0


11 540610 Man-made filament yarn (other than sewing
thread), put up for retail sale(SYNTHETIC
FILAMENT YARN )


2,280 62.0 4.0


12 540752 Woven fabrics of synthetic filament yarn,
including woven fabrics obtained from materials
of heading 5404(WOVEN
FABRICS,DYED,CNTNG BY WT>=85 per cent


115,097 97.0 2.0




64


TEXTURED POLYESTER FILAMENTS )


13 540754 Woven fabrics of synthetic filament yarn,
including woven fabrics obtained from materials
of heading 5404(WOVN
FABRCS,PRINTED,CNTNG BY WT>=85 per
cent TEXTURED POLYESTER FILAMENTS )


65,437 97.0 7.0


14 550941 Yarn (other than sewing thread) of synthetic
staple fibres, not put up for retail sale(SINGLE
YRN CNTNG 85 per cent OR MORE BY WT OF
OTHER SYNTHETIC STAPPLE FIBRES )


12,584 100.0 19.0


15 551030 Yarn (other than sewing thread) of artificial
staple fibres, not put up for retail sale(OTHR
YRN MXD MAINLY/SOLELY WTH COTTON )


4,155 76.0 7.0


16 551311 Woven fabrics of synthetic staple fibres,
containing less than 85 per cent by weight of
such fibres, mixed mainly or solely with cotton,
of a weight not exceeding 170g/m2(WOVEN
FABRICS OF POLYESTER STAPLE FIBRES,
PLAIN WEAVE,UNBLECHED OR BLEACHED )


4,833 12.0 6.0


17 551511 Other woven fabrics of synthetic staple
fibres(FBRCS OF POLYESTR STPL
FBRS,MXD MAINLY OR SOLELY WTH
VISCOSE RAYON STPL FBRS )


148,290 99.0 10.0


18 551513 Other woven fabrics of synthetic staple
fibres(FBRCS OF POLYESTR STPL FBRS
MXD MAINLY/ SOLELY WTH WOOL/FINE
ANIML HAIR )


28,051 100.0 5.0


19 560221 Felt, whether or not impregnated, coated,
covered or laminated(FELT,NOT
IMPREGNATED,COATED,COVERED/
LAMINATED,OF WOOL/FINE ANIMAL HAIR )


2,994 100.0 4.0


20 570259 Carpets and other textile floor coverings, woven,
not tufted or flocked, whether or not made up,
including "Kelem", "Schumacks", "Karamanie"
and similar hand-woven rugs(Of other textile
materials)


49,851 100.0 47.0


21 600621 Other knitted or crocheted fabrics(OTHR
KNITED OR CROCHETD FBRCS OF COTTON
, UNBLCHD OR BLCHD )


7,386 51.0 2.0


22 600690 Other knitted or crocheted fabrics(OTHR KNITD
OR CROCHETD FBRCS OF OTHER FIBRES )


3,294 10.0 6.0


23 610463 Women's or girls' suits, ensembles, jackets,
blazers, dresses, skirts, divided skirts, trousers,
bib and brace overalls, breeches and shorts
(other than swim wear), knitted or
crocheted(TROUSERS,BIB & BRACE
OVERALLS,BREECHES AND SHORTS OF
SYNTHETIC FIBRES )


4,455 27.0 1.0


24 610819 Women's or girls' slips, petticoats, briefs,
panties, night dresses, pyjamas, negligees,
bathrobes, dressing gowns and similar articles,
knitted or crocheted(SLIPS & PETTICOATS OF
OTHER TXTL MATRLS )


13,249 85.0 20.0


25 610831 Women's or girls' slips, petticoats, briefs, 171,183 72.0 16.0




65


panties, night dresses, pyjamas, negligees,
bathrobes, dressing gowns and similar articles,
knitted or crocheted(NIGHTDRESSES AND
PYJAMAS OF COTTON )


26 610990 T-shirts, singlets and other vests, knitted or
crocheted(T-SHIRT ETC OF OTHER TEXTILE
MATERIALS )


95,855 32.0 4.0


27 611420 Other garments, knitted or crocheted(OTHER
GARMENTS OF COTTON )


50,826 41.0 10.0


28 611430 Other garments, knitted or crocheted(OTHER
GARMENTS OF MAN-MADE FIBRES )


4,114 32.0 1.0


29 611710 Other made up clothing accessories, knitted or
crocheted; knitted or crocheted parts of
garments or of clothing
accessories(SHWL,SCRV,MUFLR,MANTLAS,V
EILS & THE LIKE )


13,259 66.0 2.0


30 620212 Women's or girls' overcoats, car-coats, capes,
cloaks, anoraks (including ski-jackets), wind-
cheaters, wind-jackets and similar articles, other
than those of heading
6204(OVERCOATS,RNCOTS ETC &SMLR
ARTCLS OF COTN )


8,354 54.0 2.0


31 620293 Women's or girls' overcoats, car-coats, capes,
cloaks, anoraks (including ski-jackets), wind-
cheaters, wind-jackets and similar articles, other
than those of heading 6204(OTHER
GARMENTS OF MAN-MADE FIBRES OF
HEADING NO. 6202 )


2,352 26.0 0.0


32 620333 Men's or boys' suits, ensembles, jackets,
blazers, trousers bib and brace overalls,
breeches and shorts (other than
swimwear)(JACKTS & BLAZERS OF
SYNTHETIC FIBRES )


35,277 17.0 13.0


33 620343 Men's or boys' suits, ensembles, jackets,
blazers, trousers bib and brace overalls,
breeches and shorts (other than
swimwear)(TROUSERS,BIB &
BRACE,OVERALLS,BREECHES & SHORTS
OF SYNTHETIC FIBRS,MEN'S OR BOYS' )


51,713 25.0 6.0


34 621143 Track suits, ski suits and swimwear; other
garments(OTHER GARMENTS OF MAN-MADE
FIBRES )


19,919 84.0 2.0


35 621490 Shawls, scarves, mufflers, mantillas, veils and
the like(SHWLS,SCRVS ETC OF OTHER TXTL
MATERIALS )


124,116 85.0 39.0


36 621790 Other made up clothing accessories; parts of
garments or of clothing accessories, other than
those of heading 62 12(PARTS OF
GARMENTS/OF CLOTHNG ACCESSORIES )


4,393 65.0 1.0


37 630492 Other furnishing articles, excluding those of
heading 9404(OTHR FRNSHNG ARTCLS OF
COTN,NT KNTD/CRCHTD )


753,504 99.0 72.0




66


S.No. Stage I
Inputs of
Imports


Description India's
average
global


imports
(US$'000)


India's
average


imports from
Bangladesh,
Pakistan and


Sri-Lanka
(


percentage)


Global
exports of
Banglades
h, Pakistan


and Sri
Lanka


(US$'000)


1 320416 Synthetic organic coloring matter whether or
not chemically defined; preparations as
specified in Note 3 to this Chapter based on
synthetic organic colouring matter; synthetic
organic products of a kind used as fluorescent
brightening agens or as luminoph(REACTIVE
DYS & PREPTNS BASED THEREON )


14,880 0.0 516


2 320417 Synthetic organic coloring matter whether or
not chemically defined; preparations as
specified in Note 3 to this Chapter based on
synthetic organic colouring matter; synthetic
organic products of a kind used as fluorescent
brightening agens or as luminoph(PIGMENTS
& PREPTNS BASED THEREON )


27,254 0.0 1,389


3 320419 Synthetic organic coloring matter whether or
not chemically defined; preparations as
specified in Note 3 to this Chapter based on
synthetic organic colouring matter; synthetic
organic products of a kind used as fluorescent
brightening agens or as luminoph(OTHR INCL
MIXR OF COLRNG MATR OF TWO OR
MORE OF SUB-HDNG 320411 TO 320419 )


23,223 0.0 105


4 320420 Synthetic organic coloring matter whether or
not chemically defined; preparations as
specified in Note 3 to this Chapter based on
synthetic organic colouring matter; synthetic
organic products of a kind used as fluorescent
brightening agens or as
luminoph(SYNTHETIC ORGANIC PRDCTS
OF A KIND USED AS FLUORESCENT
BRIGHTENING AGENTS )


13,431 0.0 186


5 320649 Other colouring matter; Preparations as
specified in Note 3 to this Chapter, other than
those of Headings3203,3204 or 3205;
Inorganic products of a kind used as
luminophores, whether or not chemically
defined(OTHR COLRNG MATR AND OTHR
PRPTNS )


12,616 0.5 966


6 350510 Dextrins and other modified starches (for
example, pregelatinised or esterified
starches); glues based on starches, or on
dextrins or other modified
starches(DEXTRINS & OTHER MODIFIED
STARCHES )


10,135 0.0 311


7 380991 Finishing agents, dye carriers to accelerate
the dyeing or fixing of dye-stuffs and other
products and preparations (for example,


37,653 0.1 1,469




67


dressings and mordants), of a kind used in the
textile, paper, leather or like industries, not
elsewhere specified or include(PRPNS USD
IN TXTL INDUSTRY )


8 500720 Woven fabrics of silk or of silk waste(OTHER
WOVEN FABRICS,CONTAINING>=85 per
cent BY WT OF SILK OROF SILK WASTE
OTHR THN NOIL SLK )


167,518 0.1 240


9 510129 Wool, not carded or combed:(OTHR
DEGRESD WOOL NT CRBNSD NOR
CRDED/CMBD )


9,025 2.6 246


10 510910 Yarn of wool or fine animal hair, put up for
retail sale(YARN OF WOOL/OF FINE ANML
HAIR CONTNG>=85 per cent BY WT OF
WOOL,PUT UP FOR RETAIL SALE )


335 0.0 220


11 520100 Cotton, not carded or combed(COTTON, NOT
CARDED OR COMBED )


123,874 39.6 110,079


12 520511 Cotton yarn (other than sewing thread),
containing 85 per cent or more by weight of
cotton, not put up for retail sale (SNGL YRN
OF UNCMBD FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14 MTRC NO) )


527 72.1 153,207


13 520942 Woven fabrics of cotton, containing 85 per
cent or more by weight of cotton, weighing
more than 200 g/m2(DENIM )


30,640 2.3 86,377


14 540233 Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(TEXTURED YARN OF
POLYESTERS )


14,325 5.9 16,649


15 540269 Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(OTHER
YARN,MULTIPLE(FOLDED)OR CABLED )


6,362 0.1 812


16 550340 Synthetic staple fibres, not carded, combed or
otherwise processed for spinning(STAPLE
FIBRS OF POLYPROPYLENE NT
CRD/CMBD )


987 1.3 301


17 550410 Artificial staple fibres, not carded, combed or
otherwise processed for spinning(VISCOSE
RAYON STAPLE FIBRES NT CRD/COMBD )


6,478 0.0 348


18 550510 Waste (including noils, yarn waste and
garnetted stock) of man-made fibres(WASTE
ETC.OF SYNTHETIC FIBRES )


13,928 0.2 248


19 550690 Synthetic staple fibres, carded combed or
otherwise processed for spinning(OTHR
SYNTHTC STAPLE
FIBRES,CARDED/COMBED )


666 0.0 3,628


20 550953 Yarn (other than sewing thread) of synthetic
staple fibres, not put up for retail sale(OTHER
YARN OF POLYSTER STAPLE FIBRS
MIXED MAINLY/SOLELY WITH COTTON )


598 34.3 17,035


21 560122 Wadding of textile materials and articles
thereof; textile fibres, not exceeding 5 mm in


1,703 9.6 364




68


S.No. Primary
Inputs of
Imports


Description India's
Average
global


imports (US$
'000)


India's
average
imports


from
Pakistan,
Sri Lanka


and
Bangladesh


(
percentage)


Global
Exports of


Pakistan, Sri
Lanka and


Bangladesh (
US$'000)


1 250100


Salt (including table salt and denatured salt)
and pure sodium chloride, whether or not in
aqueous solution or containing added anti-
caking or free flowing agents; Sea
water(SALT (INCL TABLE SALT & DENATRD
SALT) & PURE SODIM CHLRDE W/N AQS
SOLN SEA WTR ) 814 50.2 3,663


2 271019


Petroleum oils and oils obtained from
bituminous minerals, other than crude;
preparations not elsewhere specified or
included, containing by weight 70 per cent or
more of petroleum oils or of oils obtained from
bituminous minerals, these oils being the
basic cons(OTHER PETROLEUM OILS AND
OILS OBTAIND FROMBITUMINOUS
MINERALS ETC ) 2,568,650 5.1 818,158


3 291735


Polycarboxylic acids, their anhydrides,
halides, peroxides and peroxyacids; their
halogenated, sulphonated, nitrated or
nitrosated derivatives(PHTHALIC
ANHYDRIDE ) 21,275 2.5 1,684


4 300420 Medicaments(excluding goods of heading 30,599 0.0 5,470


length (flock), textile dust and mill
neps(WADDING OF MAN-MADE FIBRES )


22 560410 Rubber thread & cord, textile covered; textile
yarn, and strip and the like of heading 54 04
or 54 05, impregnated, coated, covered or
sheathed with rubber or plastics(RUBBER
THREAD ANDCORD,TEXTILE COVERED )


472 2.3 133


23 581100 Quilted textile products in the piece,
composed of one or more layers of textile
materials assembled with padding by stitching
or otherwise, other than embroidery of
heading 5810(QUILTED TXTL PRDCTS IN
THE PIECE CMPSD OF ONE/MORE
LAYERS OF TXTL MATRLS ASSMBLD
WTHPDDNG BY STICHING ETC EXCPT
HDG 5810 )


551 1.1 2,138


24 600191 Pile fabrics, including "long pile" fabrics and
terry fabrics, knitted or crocheted(OTHER
PILE FABRICS OF COTTON )


1,770 2.7 2,463


25 611780 Other made up clothing accessories, knitted
or crocheted; knitted or crocheted parts of
garments or of clothing accessories(OTHER
CLOTHNG ACCESSORIES,KNITD/CRCHTD
)


3,894 0.0 2,081




69


3002,3005 or 3006) consisting of mixed or
unmixed products for therapeutic or
prophylactic uses, put up in measured
doses(including those in the form of
transdermal administration systems) or in
forms or packings for(MEDICAMENTS
CONTAINING OTHER ANTIBIOTICS AND
PUT UP FOR RETAIL SALE )


5 310210


Mineral or chemical fertilisers,
nitrogenous(UREA WHETHER OR NOT IN
AQUEOUS SOLUTION ) 618,315 4.9 75,560


6 320417


Synthetic organic coloring matter whether or
not chemically defined; preparations as
specified in Note 3 to this Chapter based on
synthetic organic colouring matter; synthetic
organic products of a kind used as fluorescent
brightening agens or as luminoph(PIGMENTS
& PREPTNS BASED THEREON ) 27,254 0.0 1,389


7 380210


Activated carbon; activated natural mineral
products; animal black, including spent animal
black(ACTIVATED CARBON ) 10,230 1.3 22,717


8 380991


Finishing agents, dye carriers to accelerate
the dyeing or fixing of dye-stuffs and other
products and preparations (for example,
dressings and mordants), of a kind used in the
textile, paper, leather or like industries, not
elsewhere specified or include(PRPNS USD
IN TXTL INDUSTRY ) 37,653 0.1 1,469


9 390410


Polymers of vinyl chloride or of other
halogenated olefins, in primary forms(POLY
(VINYL CHLORIDE), NOT MIXED WITH
OTHR ) 255,972 0.0 8,091


10 520100
Cotton, not carded or combed(COTTON, NOT
CARDED OR COMBED ) 123,874 39.6 110,079


11 520511


Cotton yarn (other than sewing thread),
containing 85 per cent or more by weight of
cotton, not put up for retail sale (SNGL YRN
OF UNCMBD FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14 MTRC NO) ) 527 72.1 153,207


12 540233


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(TEXTURED YARN OF
POLYESTERS ) 14,325 5.9 16,649


13 690100


Bricks, blocks, tiles and other ceramic goods,
of siliceous fossil meals (for example,
kieselguhr, tripolite or diatomite or of similar
siliceous earths(BRICKS,BLOCKS ETC OF
SILICEOUS FOSSIL MEAL(KIESELGUHR
ETC)/OF SMLR SILICEOUS EARTHS ) 10,779 0.1 2,447


14 740400
Copper waste and scrap(COPPER WASTE &
SCRAP ) 366,681 1.9 31,045


15 760110
UNWROUGHT ALUMINIUM(ALUMINIUM-
NOT ALLOYED ) 140,651 0.6 873


16 283620 Carbonates; peroxocarbonates 17,008 0.0 584




70


(percarbonates); commercial ammonium
carbonate containing ammonium
carbamate(DISODIUM CARBONATE )


17 382490


Prepared binders for foundry moulds or cores;
chemical products and preparations of the
chemical or allied industries (including those
consisting of mixtures of natural products), not
elsewhere specified or included(CHEMICAL
PRODCTS NES ) 247,100 0.0 3,272


18 550320


Synthetic staple fibres, not carded, combed or
otherwise processed for spinning(STAPLE
FIBRES OF POLYESTER NT CRD/CMBD ) 24,051 0.0 5,059


19 550410


Artificial staple fibres, not carded, combed or
otherwise processed for spinning(VISCOSE
RAYON STAPLE FIBRES NT CRD/COMBD ) 6,478 0.0 348






6.3 Participation of Pakistan in Three-Stage and Two-Stage Supply Chain


Using the methodology described above, 29 products are identified in the potential


supply chain as products for final export by Pakistan (Table 6.5). These are the products


in which Pakistan appears as the top or second top exporter in the region and exports


more than US$ 100,000. These are also the products which have the potential of forming


regional supply chains. These products include cotton, cotton yarn, woven fabrics of


cotton, synthetic filament yarn, woven fabrics of synthetic filament yarn, other knitted or


crocheted fabrics, men's or boys' shirts, knitted or crocheted, other garments, knitted or


crocheted, other garments, blankets and traveling rugs and other furnishing articles. Out


of 29 products, in 22 products the share of Pakistan in the region is above 10 per cent and


in 8 products, Pakistan exports around 50 per cent or more of the region‘s total exports.


There are 27 Stage I inputs identified by the potential supply chains. Out of these 16 are


from the T&C sector. These are mainly from chapter 55 (man made staple fibres). There


are three tariff lines of chapter 52 (520100, 520300 and 520511) which Pakistan globally


imports more than US$ 100,000. One of these products, i.e., cotton yarn (other than


sewing thread), containing 85 per cent or more by weight of cotton, not put up for retail


sale (520511) is being imported mainly from the region, while 23 Stage I inputs have less


than 10 per cent imports from the region. In most of the products the region‘s global
exports are higher than Pakistan‘s global imports suggesting that there exists the supply
capacity within the region to cater to Pakistan‘s global demand for the Stage I inputs.


There are 103 primary inputs identified in the potential supply chains for Pakistan. These


primary inputs are used in Stage I inputs. Pakistan‘s global imports in each of these
inputs is greater than US$ 100,000 and the regional supply is greater than US$ 100,000.


97 of these primary inputs are from non T&C sector. The large number of these inputs for


Pakistan indicates diversity in Pakistan‘s basket of global imports. In 72 out of 103
products, Pakistan‘s regional imports are less than 10 per cent, while in only 14 products
Pakistan‘s global imports are more than region‘s global exports indicating insufficient
capacity. These include products like finishing agents, prepared binders for foundry




71


moulds or cores; artificial staple fibres, not carded, combed or otherwise processed for


spinning.




Appendix Table A.3 reports the top exporter of the inputs identified in the potential


supply chain for Pakistan, along with the export unit values of the top exporter and other


suppliers in the region. The Table also reports the existing tariffs and whether the input is


listed in Pakistan‘s sensitive list under SAFTA.


There are 117 unique products that have been identified, of which in 13 products the top


exporter to Pakistan in India. This indicates that in these 13 products regional supply


have already been initiated. In 61 products, the export unit value of the top exporter is


higher than the regional supplier. As discussed earlier, it needs to be noted that export


unit values can be used only as indicative of prices as the data at this level of dis-


aggregation may not be able to fully capture the product differentiation in terms of


quality. However, these do reflect the potential and economic rationale for establishing


supply chains in the region. In 45 products, Pakistan‘s tariffs are greater than 5 per cent
while 17 products are in the SAFTA sensitive list.





72




Table 6.5: Output and Inputs of Potential Exports and Potential Imports in the


Identified Three-Stage and Two-Stage Supply Chains for Pakistan





S.No. Final
Output


for
Exports


Description Pakistan's average
global Exports


(US$'000)


Share of
Pakistan's


Exports in SA
Exports


( percentage)


Share of
South Asia


in world
Exports


(
percentage


)


1 520300
Cotton, carded or combed(COTTON CARDED
OR COMBED ) 11,701 70 7


2 520511


Cotton yarn (other than sewing thread),
containing 85 per cent or more by weight of
cotton, not put up for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14 MTRC NO) ) 146,967 29 68


3 520921


Woven fabrics of cotton, containing 85 per cent
or more by weight of cotton, weighing more than
200 g/m2(BLEACHED COTON
FABRICS,PLAIN WEAVE WEIGHING MORE
THN 200 GM PER SQM ) 4,093 25 18


4 520942


Woven fabrics of cotton, containing 85 per cent
or more by weight of cotton, weighing more than
200 g/m2(DENIM ) 85,098 41 6


5 540233


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(TEXTURED YARN OF POLYESTERS ) 16,529 14 5


6 540239


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(OTHER TEXTURED YARN ) 672 9 2


7 540252


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(OTHR YARN OF
POLYESTERS,SINGLE,WITH A TWIST
EXCEEDING 50 TURNS/PER METRE ) 688 12 3


8 540710


Woven fabrics of synthetic filament yarn,
including woven fabrics obtained from materials
of heading 5404(WOVN FBRCS OBTND FROM
HIGH TENACITY YRN OFNYLON OR OTHR
POLYAMIDES,OR OF POLYESTERS ) 1,813 1 21


9 540754


Woven fabrics of synthetic filament yarn,
including woven fabrics obtained from materials
of heading 5404(WOVN
FABRCS,PRINTED,CNTNG BY WT>=85 per
cent TEXTURED POLYESTER FILAMENTS ) 2,346 3 7


10 540822


Woven fabrics of artificial filament yarn,
including woven fabrics obtained from materials
of heading 5405(OTHER WOVEN FABRICS
CNTNG BY WT>=85 per cent OF ARTIFICIAL 148 1 3




73


FILAMENT/STRIP/LIKE,DYED )


11 551030


Yarn (other than sewing thread) of artificial
staple fibres, not put up for retail sale(OTHR
YRN MXD MAINLY/SOLELY WTH COTTON ) 1,280 24 7


12 551311


Woven fabrics of synthetic staple fibres,
containing less than 85 per cent by weight of
such fibres, mixed mainly or solely with cotton,
of a weight not exceeding 170g/m2(WOVEN
FABRICS OF POLYESTER STAPLE FIBRES,
PLAIN WEAVE,UNBLECHED OR BLEACHED ) 36,088 88 6


13 580710


Labels, badges and similar articles of textile
materials, in the piece, in strips or cut to shape
or size not embroidered(LABELS BADGES &
THE LIKE,WOVEN ) 4,028 44 1


14 600621


Other knitted or crocheted fabrics(OTHR
KNITED OR CROCHETD FBRCS OF COTTON
, UNBLCHD OR BLCHD ) 4,750 33 2


15 600632


Other knitted or crocheted fabrics(OTHR KNITD
OR CROCHETD FBRCS OF SYN FIBRS,
DYED ) 920 59 0


16 600690
Other knitted or crocheted fabrics(OTHR KNITD
OR CROCHETD FBRCS OF OTHER FIBRES ) 26,473 82 6


17 610590


Men's or boys' shirts, knitted or
crocheted(SHIRTS OF OTHR TEXTILE
MATERIAL ) 97,784 50 42


18 611420
Other garments, knitted or crocheted(OTHER
GARMENTS OF COTTON ) 69,365 55 10


19 611430
Other garments, knitted or crocheted(OTHER
GARMENTS OF MAN-MADE FIBRES ) 6,073 47 1


20 611599


Panty hose, tights, stockings, socks and other
hosiery, including graduated compression
hosiery( for example, stockings for varicose
veins) and footwear without applied soles,
knitted or crocheted(OTHER HOSIERY OF
OTHER TEXTILE MATERIALS ) 12,180 53 11


21 611692


Gloves, mittens and mitts, knitted or
crocheted(OTHER GLOVES ETC OF COTTON
) 29,241 85 12


22 611710


Other made up clothing accessories, knitted or
crocheted; knitted or crocheted parts of
garments or of clothing
accessories(SHWL,SCRV,MUFLR,MANTLAS,V
EILS & THE LIKE ) 4,723 23 2


23 621143


Track suits, ski suits and swimwear; other
garments(OTHER GARMENTS OF MAN-MADE
FIBRES ) 2,691 11 2


24 621420


Shawls, scarves, mufflers, mantillas, veils and
the like(SHWLS,SCARVES ETC OF
WOOL/FINE ANML HAIR ) 982 2 16


25 621490


Shawls, scarves, mufflers, mantillas, veils and
the like(SHWLS,SCRVS ETC OF OTHER TXTL
MATERIALS ) 22,108 15 39


26 630140
Blankets and travelling
rugs(BLANKETS(OTHER THAN ELECTRIC 2,017 13 1




74


BLANKETS) AND TRAVELLING RUGS,OF
SYNTHETIC FIBRES )


27 630190
Blankets and travelling rugs(BLANKETS AND
TRAVELLING RUGS OF OTHR FIBRE ) 4,137 19 17


28 630492


Other furnishing articles, excluding those of
heading 9404(OTHR FRNSHNG ARTCLS OF
COTN,NT KNTD/CRCHTD ) 9,056 1 72


29 630790
Other made up articles, including dress
patterns(OTHER MADE UP ARTICLES ) 45,796 10 9


S.No
.


Stage I
Inputs
of
Import
s Description


Pakistan's
average global


imports
(US$'000)


Pakistan's
average


imports from
Bangladesh,
India and Sri


Lanka
( percentage)


Global
exports


of
Banglad


esh,
India


and Sri
Lanka


(US'000)


1 281511


Sodium hydroxide (caustic soda); potassium
hydroxide (caustic potash); peroxides of sodium
or potassium(SOLID SODIUM HYDROXIDE
(CAUSTIC SODA) ) 3,880 0.0 7,310


2 282300 Titanium oxides(TITANIUM OXIDES ) 6,158 1.1 32,397


3 320411


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(DISPERSE
DYES & PREPARATIONS BASED THEREON ) 13,730 4.7 16,415


4 320415


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(VAT DYES
(INCL THOSE USABLE IN THAT STATE AS
PPIGMNTS & PREPRATIONS BASED
THEREON ) 14,490 3.9 33,855


5 320416


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(REACTIVE
DYS & PREPTNS BASED THEREON ) 44,503 19.0 181,614


6 320417


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(PIGMENTS &
PREPTNS BASED THEREON ) 19,388 7.9 233,064


7 320420
Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in 2,508 9.8 40,714




75


Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(SYNTHETIC
ORGANIC PRDCTS OF A KIND USED AS
FLUORESCENT BRIGHTENING AGENTS )


8 320649


Other colouring matter; Preparations as
specified in Note 3 to this Chapter, other than
those of Headings3203,3204 or 3205; Inorganic
products of a kind used as luminophores,
whether or not chemically defined(OTHR
COLRNG MATR AND OTHR PRPTNS ) 2,149 4.5 9,894


9 340311


Lubricating preparations (including cutting-oil
preparations, bolt or nut release preparations,
anti-rust or anti-corrosion preparations and
mould release preparations, based on
lubricants) and preparations of a kind used for
the oil or grease treatment o(PRPNS FOR THE
TRTMNT OF TXTL MATRLS LEATHER
FURSKINS/OTHER MATERIALS CONTNG
PETROLIUM OILS/OIL OBTND FROM BITMNS
MNRLS ) 3,613 0.7 1,270


10 350510


Dextrins and other modified starches (for
example, pregelatinised or esterified starches);
glues based on starches, or on dextrins or other
modified starches(DEXTRINS & OTHER
MODIFIED STARCHES ) 1,958 2.1 9,318


11 380991


Finishing agents, dye carriers to accelerate the
dyeing or fixing of dye-stuffs and other products
and preparations (for example, dressings and
mordants), of a kind used in the textile, paper,
leather or like industries, not elsewhere
specified or include(PRPNS USD IN TXTL
INDUSTRY ) 19,224 3.0 15,847


12 510529


Wool and fine or coarse animal hair, carded or
combed (including combed wool in
fragments)(WOOL TOPS AND OTHER
COMBED WOOL ) 1,016 60.8 24,183


13 520100
Cotton, not carded or combed(COTTON, NOT
CARDED OR COMBED ) 477,043 31.1


1,027,02
8


14 520300
Cotton, carded or combed(COTTON CARDED
OR COMBED ) 2,991 3.8 4,956


15 520511


Cotton yarn (other than sewing thread),
containing 85 per cent or more by weight of
cotton, not put up for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14 MTRC NO) ) 2,075 98.3 360,019


16 540220


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(HIGH TENACITY YARN OF
POLYESTERS ) 451 3.8 14,942


17 540233


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67 61,566 0.1 100,303




76


decitex(TEXTURED YARN OF POLYESTERS )


18 540269


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(OTHER
YARN,MULTIPLE(FOLDED)OR CABLED ) 1,710 1.1 4,107


19 550130
Synthetic filament tow(SYNTHTC FILAMNT
TOW,ACRYLIC/MODACRYLIC ) 9,292 0.0 3,523


20 550320


Synthetic staple fibres, not carded, combed or
otherwise processed for spinning(STAPLE
FIBRES OF POLYESTER NT CRD/CMBD ) 61,873 0.0 122,227


21 550410


Artificial staple fibres, not carded, combed or
otherwise processed for spinning(VISCOSE
RAYON STAPLE FIBRES NT CRD/COMBD ) 46,658 5.6 34,837


22 550510


Waste (including noils, yarn waste and
garnetted stock) of man-made fibres(WASTE
ETC.OF SYNTHETIC FIBRES ) 1,144 0.0 6,071


23 550620


Synthetic staple fibres, carded combed or
otherwise processed for spinning(STAPLE
FIBRS OF POLYESTERS,CARDED/COMBED ) 1,306 0.0 690


24 550630


Synthetic staple fibres, carded combed or
otherwise processed for spinning(STAPLE
FIBRES OF
ACRYLC/MODACRYLC,CRD/CMBD ) 542 0.4 498


25 550953


Yarn (other than sewing thread) of synthetic
staple fibres, not put up for retail sale(OTHER
YARN OF POLYSTER STAPLE FIBRS MIXED
MAINLY/SOLELY WITH COTTON ) 179 7.3 53,336


26 560410


Rubber thread & cord, textile covered; textile
yarn, and strip and the like of heading 54 04 or
54 05, impregnated, coated, covered or
sheathed with rubber or plastics(RUBBER
THREAD ANDCORD,TEXTILE COVERED ) 651 0.5 358


27 600191


Pile fabrics, including "long pile" fabrics and
terry fabrics, knitted or crocheted(OTHER PILE
FABRICS OF COTTON ) 642 0.0 9,365


S.No
.


Primar
y
Inputs
of
Import
s Description


Pakistan 's
Average global


imports (US$
'000)


Pakistan's
average


imports from
Bangladesh,


Sri Lanka and
India


(percentage)


Global
Exports


of
Banglad
esh, Sri


Lanka
and


India (
US$'
000)


1 250100


Salt (including table salt and denatured salt) and
pure sodium chloride, whether or not in aqueous
solution or containing added anti-caking or free
flowing agents; Sea water(SALT (INCL TABLE
SALT & DENATRD SALT) & PURE SODIM
CHLRDE W/N AQS SOLN SEA WTR ) 226 7.1 31,521


2 250300
Sulphur of all kinds, other than sub-limited
sulphur, precipated sulphur and collodial 1,053 0.0 11,523




77


sulphur(SULPHUR OF ALL KNDS OTHR THN
SUBLIMED SULPHUR PCPTD SULPHUR &
COLLOIDAL SULPHUR )


3 260700
Lead ores and concentrates(LEAD ORES &
CONCENTRATES ) 173 0.0 57,161


4 271019


Petroleum oils and oils obtained from
bituminous minerals, other than crude;
preparations not elsewhere specified or
included, containing by weight 70 per cent or
more of petroleum oils or of oils obtained from
bituminous minerals, these oils being the basic
cons(OTHER PETROLEUM OILS AND OILS
OBTAIND FROMBITUMINOUS MINERALS
ETC ) 97,779 7.7


11,715,6
08


5 280200


Sulphur, sublimed or precipitated; colloidal
sulphur(SULPHUR SUBLIMD/PRECPTATED
COLLDL SULPHUR ) 1,284 0.2 12,461


6 280540


Alkali or alkaline-earth metals; rare-earth
metals, scandium and yttrium, whether or not
intermixed or interalloyed; mercury(MERCURY ) 151 0.0 112


7 281000
Oxides of boron;boric acids(OXIDES OF
BORON BORIC ACIDS ) 541 0.0 674


8 281119


Other inorganic acids and other in-organic
oxygen compounds of non-metals(OTHER
INORGANIC ACIDS ) 190 12.6 2,648


9 281511


Sodium hydroxide (caustic soda); potassium
hydroxide (caustic potash); peroxides of sodium
or potassium(SOLID SODIUM HYDROXIDE
(CAUSTIC SODA) ) 3,880 0.0 7,310


10 281520


Sodium hydroxide (caustic soda); potassium
hydroxide (caustic potash); peroxides of sodium
or potassium(POTASSIUM HYPROXIDE
(CAUSTIC POTASH) ) 443 3.4 2,676


11 282410
Lead oxides; red lead and orange lead(LEAD
MONOXIDE (LITHARGE,MASSICOT) ) 112 0.0 276


12 282580


Hydrazine and hydroxylamine and their
inorganic salts; other inorganic bases; other
metal oxides, hydroxides and
peroxides(ANTIMONY OXIDES ) 599 0.0 2,051


13 282710


Chlorides, chloride oxides and chloride
hydroxides; bromides and bromide oxides;
iodides and iodide oxides(AMMONIUM
CHLORIDE ) 139 0.0 916


14 282731


Chlorides, chloride oxides and chloride
hydroxides; bromides and bromide oxides;
iodides and iodide oxides(CHLORIDES OF
MAGNESIUM ) 144 2.1 386


15 282739


Chlorides, chloride oxides and chloride
hydroxides; bromides and bromide oxides;
iodides and iodide oxides(OTHER CHLORIDE;
NES ) 956 19.5 15,651


16 283110
Dithionites and sulphoxylates(DITHONITES
AND SULPHOXYLATES OF SODIUM ) 4,437 17.2 5,129


17 283210 Sulphites; thiosulphates(SODIUM SULPHITE ) 878 13.3 1,234




78


18 283311
Sulphates; alums; peroxosulphates
(persulphates)(DISODIUM SULPHATE ) 1,827 0.2 482


19 283319
Sulphates; alums; peroxosulphates
(persulphates)(OTHER SODIUM SULPHATES ) 327 3.7 2,091


20 283325
Sulphates; alums; peroxosulphates
(persulphates)(COPPER SULPHATE ) 440 0.0 827


21 283410 Nitrites; nitrates(NITRITES ) 153 0.0 1,013


22 283525


Phosphinates (hypophosphites), phosphonates
(phosphites), phosphates and polyphosphates
whether or not chemically defined(CALCIUM
HYDROGENORTHO PHOSPHATE
("DICALCIUM PHOSPHATE") ) 2,866 0.5 1,181


23 283529


Phosphinates (hypophosphites), phosphonates
(phosphites), phosphates and polyphosphates
whether or not chemically defined(OTHER
PHOSPHATES ) 461 1.3 724


24 283630


Carbonates; peroxocarbonates (percarbonates);
commercial ammonium carbonate containing
ammonium carbamate(SODIUM HYDROGEN
CARBONATE (SODIUM BICARBONATE) ) 1,599 0.5 2,285


25 283640


Carbonates; peroxocarbonates (percarbonates);
commercial ammonium carbonate containing
ammonium carbamate(POTASSIUM
CARBONATES ) 872 0.0 410


26 283650


Carbonates; peroxocarbonates (percarbonates);
commercial ammonium carbonate containing
ammonium carbamate(CALCIUM CARBONATE
) 1,440 0.6 2,749


27 283699


Carbonates; peroxocarbonates (percarbonates);
commercial ammonium carbonate containing
ammonium carbamate(OTHER CARBONATES
PERCARBONATES ) 4,337 0.1 1,904


28 284290


Other salts of inorganic acids or
peroxoacids,(including aluminosilicates whether
or not chemically defined), other than
azides(OTHR SALTS OF INORGANIC
ACIDS/PEROXOACIDS ) 101 1.0 581


29 284700


Hydrogen peroxide, whether or not solidified
with urea(HYDROGEN PEROXIDE W/N
SOLIDIFIED WITH UREA ) 16,225 0.0 736


30 290241 Cyclic hydrocarbons(O-XYLENE ) 16,726 56.8 145,447


31 290290
Cyclic hydrocarbons(OTHER CYCLIC
HYDROCARBONS ) 1,447 0.8 28,534


32 290410


Sulphonated, nitrated or nitrosated derivatives
of hydrocarbons, whether or not
halogenated(DRVTVS CNTNG ONLY SULPHO
GROUPS, THEIR SALTS AND ETHYL
ESTERS ) 2,114 80.0 70,667


33 290420


Sulphonated, nitrated or nitrosated derivatives
of hydrocarbons, whether or not
halogenated(DRVTVS CNTNG ONLY
NITRO/NITROSO GRPS ) 503 10.1 5,175


34 290490
Sulphonated, nitrated or nitrosated derivatives
of hydrocarbons, whether or not 375 19.5 24,633




79


halogenated(OTHR SULPHONTD
NITRTD/NITRSTD DRVTVS )


35 290511


Acyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(SATURATED METHANOL
(METHYL ALCOHOL) ) 10,706 0.0 8,698


36 290512


Acyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(SATURATED PROPAN-
1OL(PROPYL ALCOHOL) AND PROPAN-2-OL
(ISOPROPYL ALCOHOL) ) 3,449 0.1 5,556


37 290513


Acyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(SATURATED BUTAN-1-OL(N-
BUTYL ALCOHOL) ) 378 0.5 2,858


38 290516


Acyclic alcohols and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(SATRTD OCTNL(OCTYL ALCHL)&
ISMRS THEREOF ) 1,647 0.0 1,363


39 290711
Phenols; phenol-alcohols(PHENOL
(HYDROXYBENZENE) AND ITS SALTS ) 3,339 0.0 4,517


40 290715
Phenols; phenol-alcohols(NAPHTHOLS AND
THEIR SALTS ) 222 18.5 1,881


41 290729
Phenols; phenol-alcohols(OTHER
POLYPHENOLS ) 316 32.3 38,112


42 290810
Halogenated Derivatives of Phenols or Phenol-
alcohols, Their Salts 266 2.6 2,679


43 291300


Halogenated, sulphonated, nitrated or nitrosated
derivatives of products of heading
2912(HALGNTD SLPHNTD NITRTD/NITRSTD
DRVTVS OF PRODUCTS OF HEADING NO.
2912 ) 143 0.0 3,284


44 291421


Ketones and Quinones, whether or not with
other oxygen function, and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(CAMPHOR ) 110 2.7 537


45 291469


Ketones and Quinones, whether or not with
other oxygen function, and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(OTHER QUINONES ) 390 3.8 1,158


46 291470


Ketones and Quinones, whether or not with
other oxygen function, and their halogenated,
sulphonated, nitrated or nitrosated
derivatives(HALGNTD,SULPHNTD,NITRTD/NIT
ROSTD DRVTVS OF KETOKES AND
QUINONES ) 130 0.8 12,093


47 291511


Saturated acyclic monocarboxylic acids and
their anhydrides, halides, peroxides and
peroxyacids; their halogenated, sulphonated,
nitrated or nitrosated derivatives(FORMIC ACID
) 2,621 1.8 250


48 291521


Saturated acyclic monocarboxylic acids and
their anhydrides, halides, peroxides and
peroxyacids; their halogenated, sulphonated,
nitrated or nitrosated derivatives(ACETIC ACID 15,708 0.1 11,916




80


)


49 291522 Sodium Acetate 179 22.3 1,564


50 291524


Saturated acyclic monocarboxylic acids and
their anhydrides, halides, peroxides and
peroxyacids; their halogenated, sulphonated,
nitrated or nitrosated derivatives(ACETIC
ANHYDRIDE ) 276 8.7 897


51 291539


Saturated acyclic monocarboxylic acids and
their anhydrides, halides, peroxides and
peroxyacids; their halogenated, sulphonated,
nitrated or nitrosated derivatives(OTHER
ESTERS OF ACETIC ACID ) 2,062 1.1 30,362


52 291590


Saturated acyclic monocarboxylic acids and
their anhydrides, halides, peroxides and
peroxyacids; their halogenated, sulphonated,
nitrated or nitrosated derivatives(OTHR
SATRTD ACYLC,MNOCRBOXYLC ACDS &
THR ANHYDRDS,HALDS,PEROXDS,PEROXY
ACIDS & THR HALGNTD SLPHNTD NITRTD &
NITRSTD DRVTVS ) 2,447 11.2 15,285


53 291639


Unsaturated acyclic monocarboxylic acids,
cyclic monocarboxylic acids, their anhydrides,
halides, peroxides and peroxyacids; their
halogenated, sulphonated, nitrated or nitrosated
derivatives(OTHR ARMTC MONOCRBOXYLC
ACDS,THR ANHYDRDS
HALIDES,PEROXIDES,PEROXYACIDS & THR
DRVTVS ) 3,618 0.2 4,831


54 291719


Polycarboxylic acids, their anhydrides, halides,
peroxides and peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(OTHR ACYLC PLYCRBOXYLC
ACDS THR ANHYDRDS
HALIDES,PEROXIDES,PEROXYACDS & THR
DRVTVS ) 576 42.7 11,184


55 291735


Polycarboxylic acids, their anhydrides, halides,
peroxides and peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(PHTHALIC ANHYDRIDE ) 3,897 24.3 68,914


56 291739


Polycarboxylic acids, their anhydrides, halides,
peroxides and peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(OTHR ARMTC PLYCRBOXYLC
ACIDS THR ANHYDRDS HALIDES
PEROXIDES PEROXYACDS & THR DRVTVS ) 4,002 3.3 22,227


57 291830


Carboxylic acids with additional oxygen function
and their anhydrides, halides, peroxides and
peroxyacids; their halogenated, sulphonated,
nitrated or nitrosated derivatives(CRBXYLC
ACIDS WTH ALDHYD/KETONE FNCTN BUT
WTHOUT OTHR OXYGN FNCTN THR
ANHYDRDS HALDS PEROXIDES
PEROXYACIDS & THR DRVTVS ) 1,462 13.5 3,210


58 292111
Amine function compounds(MTHYLAMINE DI-
OR TRIMTHYL AMINE & THR SLTS ) 192 56.8 8,656




81


59 292119


Amine function compounds(OTHR ACYCLIC
MONOAMINES & THEIR DEVIVATIVES
SALTS THEREOF ) 507 7.3 4,888


60 292121


Amine function
compounds(ETHYLENEDIAMINE AND ITS
SALTS ) 357 0.0 421


61 292130


Amine function compounds(CYCLANIC
CYCLENIC/CYCLOTRPNC MONO-OR
POLYAMINS & THR DRVTVS; SLTS
THEREOF ) 382 0.3 1,702


62 292141
Amine function compounds(ANILINE AND ITS
SALTS ) 234 45.7 26,017


63 292142
Amine function compounds(ANILINE
DERIVATIVES AND THEIR SALTS ) 812 22.4 46,376


64 292143
Amine function compounds(TOLUIDINES AND
THEIR DRVTVS SLTS THEREOF ) 339 43.4 15,725


65 292145


Amine function compounds(1-
NAPHTHYLAMINE 2-NAPHTHYLAMINE AND
THEIR DERIVATIVES ; SALTS THEREOF ) 1,471 15.2 11,397


66 292149
Amine function compounds(OTHR ARMTC
MONO AMNS & THR DRVTVS AND SLTS ) 3,690 2.7 12,237


67 292151


Amine function compounds(O-M-P-
PHENYLENEDIAMINE DIAMINOTOLUENE
AND THEIR DRVTVS SALTS THEREOF ) 943 20.8 19,581


68 292211


Oxygen-function amino-
compounds(MONOETHANOLAMINE AND ITS
SALTS ) 787 0.1 1,310


69 292212


Oxygen-function amino-
compounds(DIETHANOLAMINE AND ITS
SALTS ) 736 2.4 886


70 292221


Oxygen-function amino-
compounds(AMNOHYDRXYNPHTHLENESLPH
NC ACDS & THR SLTS ) 4,166 42.0 41,154


71 292229


Oxygen-function amino-compounds(OTHR
AMINO-NAPTHLS & OTHR AMINO-PHNLS
THR ETHRS & ESTRS OTHR THN THOSE
CNTNG MORE THN ONE KND OF EXYGN
FNCTN SLTS THEREOF ) 2,598 8.1 34,796


72 292429


Carboxyamide-function compounds; amide-
function compounds of carbonic acid(OTHR
CYCLC AMIDES(INCL CYCLC CRBAMATES)
& THEIR DERIVATIVES & SALTS THEREOF ) 8,728 3.5 12,282


73 292700
Diazo-, azo- or azoxy- compounds(DIAZO-AZO-
OR AZOXY-COMPOUNDS ) 2,761 3.2 5,445


74 293090
Organo-sulphur compounds(OTHER ORGANO-
SULPHUR COMPOUNDS ) 9,540 0.6 13,026


75 293319


Heterocyclic compounds with nitrogen hetero-
atom(s) only(OTHR HTRCYCLC CMPNDS
CNTNG AN UNFUSED PYRZL RING (W/N
HYDRGNTD) IN THE STRUCTURE ) 1,374 26.3 22,053


76 293331
Heterocyclic compounds with nitrogen hetero-
atom(s) only(PYRIDINE AND ITS SALTS ) 154 30.5 56,791


77 293339
Heterocyclic compounds with nitrogen hetero-
atom(s) only(OTHR CMPNDS CNTNG AN 11,970 5.8 45,197




82


UNFUSED PYRDN RING(W/N HYDRGNTD) IN
THE STRUCTURE )


78 293369


Heterocyclic compounds with nitrogen hetero-
atom(s) only(OTHR CMPNDS CNTNG AN
UNFUSED TRIAZINE RING(W/N
HYDROGENATED) IN THE STRUCTURE ) 1,790 1.2 5,795


79 293500 Sulphonamides(SULPHONAMIDES ) 8,091 9.9 45,138


80 320300


Colouring matter of vegetable or animal origin
(including dyeing extracts but excluding animal
black), whether or not chemically defined;
preparations as specified in Note 3 to this
Chapter based on colouring matter of vegetable
or animal origin(COLRNG MATR OF
VEGTBL/ANML ORGN(INCL DYNG EXTRCT
EXCL ANML BLCK) W/N CMCLY DFND ) 2,745 89.8 5,267


81 320411


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(DISPERSE
DYES & PREPARATIONS BASED THEREON ) 13,730 4.7 16,415


82 320412


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(ACID DYS
W/N PREMETALSD & PRPTNS BASED
THERON MORDNT DYS & PRPTNS BASED
THRON ) 7,770 46.6 121,701


83 320413


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(BASIC DYES
AND PRE PARATIONS BASED THEREON ) 4,023 24.5 23,546


84 320415


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(VAT DYES
(INCL THOSE USABLE IN THAT STATE AS
PPIGMNTS & PREPRATIONS BASED
THEREON ) 14,490 3.9 33,855


85 320416


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(REACTIVE
DYS & PREPTNS BASED THEREON ) 44,503 19.0 181,614


86 320417 Synthetic organic coloring matter whether or not 19,388 7.9 233,064




83


chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(PIGMENTS &
PREPTNS BASED THEREON )


87 320419


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(OTHR INCL
MIXR OF COLRNG MATR OF TWO OR MORE
OF SUB-HDNG 320411 TO 320419 ) 10,401 7.0 75,406


88 320490


Synthetic organic coloring matter whether or not
chemically defined; preparations as specified in
Note 3 to this Chapter based on synthetic
organic colouring matter; synthetic organic
products of a kind used as fluorescent
brightening agens or as luminoph(OTHR
SYNTHETIC ORGANIC COLORNG MATTER ) 492 29.1 22,358


89 340219


Organic surface-active agents (other than
soap), surface-active preparations, washing
preparations (including auxiliary washing
preparations) and cleaning preparations,
whether or not containing soap, other than
those of Heading 3401(OTHR ORNGC SRFCE-
ACTV AGNTS W/N FOR RTL SL ) 2,530 1.2 6,820


90 350510


Dextrins and other modified starches (for
example, pregelatinised or esterified starches);
glues based on starches, or on dextrins or other
modified starches(DEXTRINS & OTHER
MODIFIED STARCHES ) 1,958 2.1 9,318


91 380210


Activated carbon; activated natural mineral
products; animal black, including spent animal
black(ACTIVATED CARBON ) 1,488 3.8 38,665


92 380400


Residual lyes for the manufacture of wood pulp,
whether or not concentrated, desugared or
chemically treated, including lignin sulphonates,
but excluding tall oil of Heading 3803(RSDUL
LYES FROM MNFCTR OF WOOD PULP-W/N
CNCNTRTD,DESUGRD/CHMCLY TRTD,INCL
LIGNIN SLPHNTS-BUT EXCL TALL OIL OF
HDG 3803 ) 856 0.0 241


93 380991


Finishing agents, dye carriers to accelerate the
dyeing or fixing of dye-stuffs and other products
and preparations (for example, dressings and
mordants), of a kind used in the textile, paper,
leather or like industries, not elsewhere
specified or include(PRPNS USD IN TXTL
INDUSTRY ) 19,224 3.0 15,847


94 381512


Reaction initiators, reaction accelerators and
catalytic preparations, not elsewhere specified
or included(SUPPRTD CATALYSTS WTH
PRCUS MTL/ITS CMPNDS ) 2,921 0.1 8,187




84


95 382490


Prepared binders for foundry moulds or cores;
chemical products and preparations of the
chemical or allied industries (including those
consisting of mixtures of natural products), not
elsewhere specified or included(CHEMICAL
PRODCTS NES ) 50,777 1.7 47,372


96 520100
Cotton, not carded or combed(COTTON, NOT
CARDED OR COMBED ) 477,043 31.1


1,027,02
8


97 520511


Cotton yarn (other than sewing thread),
containing 85 per cent or more by weight of
cotton, not put up for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14 MTRC NO) ) 2,075 98.3 360,019


98 540233


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(TEXTURED YARN OF POLYESTERS ) 61,566 0.1 100,303


99 540269


Synthetic filament yarn (other than sewing
thread), not put up for retail sale, including
synthetic monofilament of less than 67
decitex(OTHER
YARN,MULTIPLE(FOLDED)OR CABLED ) 1,710 1.1 4,107


100 550320


Synthetic staple fibres, not carded, combed or
otherwise processed for spinning(STAPLE
FIBRES OF POLYESTER NT CRD/CMBD ) 61,873 0.0 122,227


101 550410


Artificial staple fibres, not carded, combed or
otherwise processed for spinning(VISCOSE
RAYON STAPLE FIBRES NT CRD/COMBD ) 46,658 5.6 34,837


102 690100


Bricks, blocks, tiles and other ceramic goods, of
siliceous fossil meals (for example, kieselguhr,
tripolite or diatomite or of similar siliceous
earths(BRICKS,BLOCKS ETC OF SILICEOUS
FOSSIL MEAL(KIESELGUHR ETC)/OF SMLR
SILICEOUS EARTHS ) 633 1.4 3,891


103 790310 Zinc dust, powders and flakes(ZINC DUST ) 225 0.0 8,067



















85


6.4 Participation of Sri Lanka in Three-Stage and Two-Stage Supply Chains




The three and two stage potential supply chains identify 8 products of Sri Lanka for final


export, which have the potential of forming regional supply chains (Table 6.6). These are


the products where Sri Lanka is the highest or second highest global exporter in the


region. These are also the products where Sri Lanka is exporting more than US$ 100,000


and the regional exports are more than US$ 100,000. The products are mainly from


chapters 61 (Articles of Apparel and Clothing Accessories, knitted or crocheted) and


chapter 62 (Articles of Apparel and Clothing Accessories, not knitted or crocheted).




There are 34 inputs identified as Stage I inputs that may be imported from the region; of


these 28 inputs are from the T&C sector. These are mainly Cotton, not carded or combed;


Cotton yarn; Woven fabrics of cotton; and Synthetic filament yarn. However, unlike


other countries in the region Sri Lanka is importing to a large extent from the region.


Regional imports in 24 out of 34 products is greater than 10 per cent. Sri Lanka‘s
regional imports of Cotton, not carded or combed (520100) is less than 3 per cent, while


the region has high global exports of cotton, not carded or combed. For some tariff lines


in woven fabrics, the regional supply capacity is limited as Sri Lanka‘s global imports are
much higher than the region‘s global exports.


There are 36 unique products that Sri Lanka can import regionally in either two stage or


three stage identified supply chains. These products are listed in Table A.4 in the


Appendix. The Table reports the top exporter of the product to Sri Lanka along with the


export unit values of the top exporter and other three suppliers in the region. It needs to


be reiterated that the export unit values are indicative in nature and may not reflect the


true differences in the prices as quality differences may not be captured at six-digit dis-


aggregation. Except for synthetic filament yarn (540220), which Sri Lanka is importing


from the Republic of Korea, in all other products the export unit value of one of the three


suppliers in the region is lower than the export unit value of the top exporter to Sri Lanka.


None of the identified inputs are in Sri Lanka‘s sensitive list in SAFTA. This is indicative
of the existing potential for regional imports for Sri Lanka.


Table 6.6: Output and Inputs of Potential Exports and Potential Imports in the


Identified Three-Stage and Two-Stage Supply Chains for Sri Lanka

S.No. Final


Output
for


Exports


Description Sri Lanka's
Average
Global


Exports
(US$ '000)


Share of Sri
Lanka's in


South Asia's
Exports


( percentage)


Share of
South Asia in


Global
Exports


( percentage)


1 600632


Other knitted or crocheted
fabrics(OTHR KNITD OR
CROCHETD FBRCS OF SYN
FIBRS, DYED ) 487 31 0


2 610819


Women's or girls' slips, petticoats,
briefs, panties, night dresses,
pyjamas, negligees, bathrobes,
dressing gowns and similar articles, 1,733 11 20




86


knitted or crocheted(SLIPS &
PETTICOATS OF OTHER TXTL
MATRLS )


3 610831


Women's or girls' slips, petticoats,
briefs, panties, night dresses,
pyjamas, negligees, bathrobes,
dressing gowns and similar articles,
knitted or
crocheted(NIGHTDRESSES AND
PYJAMAS OF COTTON ) 30,537 13 16


4 611420


Other garments, knitted or
crocheted(OTHER GARMENTS OF
COTTON ) 1,776 1 10


5 611519


Panty hose, tights, stockings, socks
and other hosiery, including
graduated compression hosiery( for
example, stockings for varicose
veins) and footwear without applied
soles, knitted or crocheted(PANTY
HOSE & TIGHTS OF OTHR TXTL
MATRLS ) 7,509 55 3


6 611599


Panty hose, tights, stockings, socks
and other hosiery, including
graduated compression hosiery( for
example, stockings for varicose
veins) and footwear without applied
soles, knitted or crocheted(OTHER
HOSIERY OF OTHER TEXTILE
MATERIALS ) 4,231 18 11


7 611692


Gloves, mittens and mitts, knitted or
crocheted(OTHER GLOVES ETC OF
COTTON ) 2,872 8 12


8 621790


Other made up clothing accessories;
parts of garments or of clothing
accessories, other than those of
heading 62 12(PARTS OF
GARMENTS/OF CLOTHNG
ACCESSORIES ) 1,673 25 1


S.No.


Stage I
Inputs


of
Imports Description


Sri
Lanka 's
Average


global
imports


(US$
'000)


Sri Lanka's
average
imports


from
Pakistan,


Bangladesh
and India


(
percentage)


Global
Exports of
Pakistan,


Bangladesh
and India (


US$'000)


1 320411


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3 to
this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(DISPERSE DYES & 1,169 9.2 16,442




87


PREPARATIONS BASED THEREON
)


2 320415


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3 to
this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(VAT DYES (INCL THOSE
USABLE IN THAT STATE AS
PPIGMNTS & PREPRATIONS
BASED THEREON ) 596 30.7 33,900


3 320416


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3 to
this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(REACTIVE DYS &
PREPTNS BASED THEREON ) 7,419 2.3 182,124


4 320419


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3 to
this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(OTHR INCL MIXR OF
COLRNG MATR OF TWO OR MORE
OF SUB-HDNG 320411 TO 320419 ) 1,111 43.6 75,501


5 320420


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3 to
this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(SYNTHETIC ORGANIC
PRDCTS OF A KIND USED AS
FLUORESCENT BRIGHTENING
AGENTS ) 888 23.5 40,866


6 380991


Finishing agents, dye carriers to
accelerate the dyeing or fixing of dye-
stuffs and other products and
preparations (for example, dressings
and mordants), of a kind used in the
textile, paper, leather or like
industries, not elsewhere specified or
include(PRPNS USD IN TXTL
INDUSTRY ) 10,230 10.6 16,087


7 520100


Cotton, not carded or
combed(COTTON, NOT CARDED
OR COMBED ) 2,532 2.5 1,088,919




88


8 520511


Cotton yarn (other than sewing
thread), containing 85 per cent or
more by weight of cotton, not put up
for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG 714.29
DCTX/MORE(NT EXCDNG 14
MTRC NO) ) 18,852 99.7 506,932


9 520811


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRCS CONTNG>=85
per cent BY WT OF COTN,
UNBLEACHED PLAIN WEAVE
WEIGING <=100 G/M2 ) 12,175 94.7 182,534


10 520812


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRCS CONTNG
>=85 per cent BY WT OF COTN
UNBLEACHD PLAINWEAVE
WEIGING > 100 G/M2 ) 5,710 45.8 74,334


11 520813


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS
CONTNG>=85 per cent BY WT OF
COTN UNBLCHD 3/4 THRED TWILL
INCL CROSS TWILL WEIGHNG
NOT MORE THN 200 GM PER SQM
) 797 84.3 25,719


12 520819


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(OTHER COTN FABRICS
UNBLEACHED CONTNG 85 per cent
OR MORE BY WT OF COTN
WEING<=200 GM PERSQM ) 18,806 95.1 382,207


13 520821


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(BLECHD PLAIN WEAVE
WEIGNG <=100 G/M2 ) 4,290 66.9 48,597


14 520822


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS CONTNG
>=85 per cent BY WT OF COTTON
BLEACHD PLAIN WEAVE WEIGNG
> 100 G/M2 ) 2,628 15.0 12,501


15 520823


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS
CONTNG>=85 per cent BY WT OF
COTN BLECHD,3/4 THREAD TWILL 860 36.1 4,425




89


INCL CROSS TWILL WEIGHING
NOT MORE THN 200 GM PER SQM
)


16 520829


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(OTHER COTTON
FABRICS,BLEACHED CONTNG 85
per cent OR MORE BY WT OF
COTTON WEING NOT MORE THAN
200 GM PER SQM ) 10,404 47.4 74,404


17 520831


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS CONTNG
>=85 per centBY WT OF COTN
DYED PLAIN WEAVE
WEIGNG<=100 G/M2 ) 14,917 41.3 66,860


18 520832


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS
CONTNG>=85 per cent BY WT OF
COTN DYED,PLAIN WEAVE
WEIGHNG >=100 G/M2 ) 29,853 4.91 17,283


19 520833


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS
CONTNG>=85 per cent BY WT OF
COTN, DYED,3/4 THRED TWILL
INCL CROSS TWILL, WEIGHING
NOT MORE THN 200 G/M2 ) 10,147 5.6 4,829


20 520839


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(OTHER COTON
FABRICS,DYED CONTNG 85 per
cent OR MORE BY WT OF COTTON
WEIGNG NOT MORE THN 200 GM
PER SQM ) 15,592 44.9 53,491


21 520841


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS CONTNG
>=85 per cent BY WT OF COTN
PLAIN WEAVE, WEIGHING NOT
MORE THAN 100 GMPER SQM OF
YARN OF DIFFERENT COLOURS ) 2,362 56.1 6,202


22 520842


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS CONTNG
>=85 per cent BY WT OF COTN
PLAIN WEAVE, WEIGHING MORE 45,208 3.9 13,120




90


THAN 100 GM PER SQM OF YARN
OF DIFFERENT COLOURS )


23 520843


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS COMTMG>85
per cent BY WT OF COTN 3-
THREAD/4-THREAD TWILL IMCL
CROSS TWILL OF YARN OF DIFF
CLRS WEIGHNG <=200 GSM ) 5,230 26.0 7,003


24 520849


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(OTHER COTN FABRICS OF
YARN OF DIFFERENT COLOUR
WITH COTN CONTENT MORE THN
85 per cent WEIGHNG NOT MORE
THN 200 GM PER SQM ) 4,357 1.3 6,850


25 520851


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS CONTNG
>=85 per cent BY WT OF COTN
PRINTED PLAIN WEAVE WEIGNG
<=100 G PER SQM ) 8,179 46.2 74,211


26 520852


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS CONTNG
>=85 per cent BY WT COTN
PRINTED,PLAIN WEAVE
WEIGHING >100 G/M2 ) 13,535 21.3 41,862


27 520853


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(COTN FABRICS CONTNG
>=85 per cent BY WT OF COTN
PRINTED 3/4-THREAD TWILL,INCL
CROSS TWILL WEITHING NOT
MORE THN 200 GM PER SQM ) 490 33.2 4,800


28 520859


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing not more than 200
g/m2(OTHR COTN FABRICS
CONTNG>=85 per cent BY WT OF
COTN,PRNTD,WEIGHING 200 G/M2
) 7,258 34.0 110,264


29 540220


Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic
monofilament of less than 67
decitex(HIGH TENACITY YARN OF
POLYESTERS ) 2,160 1.7 14,888


30 540233
Synthetic filament yarn (other than
sewing thread), not put up for retail 6,767 23.5 116,796




91


sale, including synthetic
monofilament of less than 67
decitex(TEXTURED YARN OF
POLYESTERS )


31 540269


Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic
monofilament of less than 67
decitex(OTHER
YARN,MULTIPLE(FOLDED)OR
CABLED ) 776 13.7 4,819


32 550320


Synthetic staple fibres, not carded,
combed or otherwise processed for
spinning(STAPLE FIBRES OF
POLYESTER NT CRD/CMBD ) 1,314 1.1 127,274


33 550953


Yarn (other than sewing thread) of
synthetic staple fibres, not put up for
retail sale(OTHER YARN OF
POLYSTER STAPLE FIBRS MIXED
MAINLY/SOLELY WITH COTTON ) 2,646 33.11 70,150


34 560410


Rubber thread & cord, textile
covered; textile yarn, and strip and
the like of heading 54 04 or 54 05,
impregnated, coated, covered or
sheathed with rubber or
plastics(RUBBER THREAD
ANDCORD,TEXTILE COVERED ) 2,066 0.05 355


S.No.


Primary
Inputs


of
Imports Description


Sri-
lanka's


average
global


imports
(US$'000)


Global
exports of


Bangladesh,
Pakistan
and India


(US$'000)


1 310210


Mineral or chemical fertilisers,
nitrogenous(UREA WHETHER OR
NOT IN AQUEOUS SOLUTION ) 39,462 0.03 76,073


2 740400
Copper waste and scrap(COPPER
WASTE & SCRAP ) 16,390 4.6 40,865






7. BROAD CONCLUSIONS AND POLICY IMPLICATIONS

7.1 Broad Conclusions


The textiles and clothing sector is a leading sector in terms of trade and employment in


all major South Asian countries. It constitutes more than 40 per cent of total regional


exports and provides employment to more than 10 million people in most of the


countries. The steady rise in exports of this sector from South Asia was arrested by the


global economic crisis of 2008 and the sector‘s exports declined by 18 per cent reducing
its share in global exports from 7.7 per cent in 2007 to 6 per cent in 2009. The


competitive pressures on the sector in the region are further growing not only due to


reduced global demand but also due to erosion of preferences because of increased




92


number of free trade agreements, withdrawal of Generalised System of Preferences-plus


schemes and other policy related developments. This makes it important to improve the


cost competitiveness of the sector in the region so that all countries are able to respond


positively to the existing and forthcoming global challenges. One of the ways of


increasing regional competitiveness is the formation of production supply chains in the


region whereby each country exports the products in which it is competitive and imports


the inputs from the countries, which have cost advantage within the region.




In this context, the main aim of the study is to identify the potential production supply


chains that can be formed within the region in the T&C sector so as to improve cost


competitiveness of the region as a whole. This may enable the region to increase its share


in global exports of T&C and benefit each of the countries in the region in terms of


enhanced exports, output, and employment in the sector. The study finds that the


potential for intra-industry trade in T&C is substantially high in South Asia. Using the


average of the period 2005-2007, the Grubel-Lloyd index in T&C for South Asia with


respect to world is estimated to be 27.3 per cent while that with South Asia is estimated


to be 16.6 per cent This indicates that in the T&C sector, South Asia‘s intra-industry
trade with world is much higher than with the region.




What is interesting is that within South Asia, there exists both demand and supply of


inputs of the T&C sector within the region as different countries specialize in different


segments of the sector. Bangladesh and Sri Lanka have higher shares in clothing in their


exports, while Pakistan has higher share of textiles in its exports. India, on the other hand,


produces and exports across the value chain. In order to identify the potential supply


chains in this sector, the methodology adopted is based on a simple logic, which is to


identify those inputs used in the T&C sector, which a country imports globally but not


from South Asia, though there exists a South Asian country which globally exports these


inputs. For such inputs, which may be from within or outside the sector, both demand and


supply exists in the region.




Using the input-output database constructed by UNCTAD (through its India Project


Office) for the T&C sector (which identifies the inputs of each of the six-digit HS codes),


the analysis is undertaken at HS six digit level for chapters 50-63. For each of the four


countries, the final product for global exports is identified. The criterion used is existing


exports of more than US$ 100,000 (using average exports of 2005-2007). For the


identified final products for exports, the stage I inputs are identified which are globally


imported by the country (more than US$ 100,000). Two South Asian country which


globally export this input by more than US$ 100,000 are identified. Using the same


criterion, the study identifies the primary inputs to stage I inputs and identifies the


potential exporters and importers of these inputs forming a potential supply chain.




The number of stages of identified potential three-stage supply chains in which a country


may participate are 1,032 for India; 795 for Pakistan; 418 for Sri Lanka.; and 245 for


Bangladesh These three-stage potential supply chains are formed for the global export of


identified final output. There are 37 unique T&C tariff lines identified as final product for


export in the potential supply chain for India; 29 for Pakistan; 15 for Bangladesh; and 8




93


for Sri Lanka. It should be noted that the potential final output need not necessarily


comprise clothing and can also be raw materials like fabrics or yarn. The unique Stage I


inputs identified, which can be imported from within the region are maximum for Sri


Lanka (34), closely followed by Pakistan (27), India (25) and Bangladesh (19). The


number of unique primary inputs that are used in the first stage inputs can be imported


are maximum for Pakistan (103), followed by India (19), Bangladesh (47) and Sri Lanka


(2). These inputs comprise of both T&C and non textiles inputs like chemicals, etc. In


addition the study also identifies two-stage supply chains, where the information of


primary inputs used in Stage I inputs is not available.




The existing trade flows in the identified three-stage and two-stage supply chains indicate


that countries in South Asia have the import demand for inputs relevant for establishing


supply chains in the T&C sector but the import demand is met mainly from sources


outside the region, although the region has the supply capacity for exports. Estimating the


percentage share of country‘s global imports of the identified inputs to region‘s exports
of these inputs, it is seen that Bangladesh‘s global imports of these identified inputs
comprise only around 18 per cent of region‘s exports of these inputs. For Sri Lanka and
Pakistan, these are around 9 per cent and 7.5 per cent respectively. This indicates that


there exists the supply capacity within the region to cater to the demand for the identified


inputs by the region. However, India‘s global imports of the identified inputs is around
350 per cent of the region‘s exports indicating that India‘s demand for the identified
inputs is much more than the region‘s capacity to export.


One of the plausible constraints to the formation of the identified potential supply chain


could be the availability of lower cost inputs from other global suppliers. To take this into


account, the export unit values of each of the major South Asian country along with the


major global supplier of the product is reported. The study shows that in many of the


products identified as inputs in the potential supply chain which can be imported from


within the region, countries within the region have lower export unit values as compared


to the major global suppliers of the product. In spite of existence of a lowest cost exporter


in the region, the global imports in all countries of many of the identified inputs are


higher than the regional imports.




Many of the identified inputs in the potential supply chains are identified as products in


countries‘ SAFTA Sensitive List having tariffs greater than 5 per cent. This indicates that
at the national level each country has policy tools to form the identified supply chains and


lower its import unit values from the region as compared to the world. In order to make


the potential supply chain work, SAFTA can play a very important role. The lowering of


tariffs and removal of the identified products of imports from a country‘s sensitive list
under SAFTA can help in not only improving the cost competitiveness of a country‘s
imports, but will also make its exports more competitive globally.




It is found that out of 13 inputs from the T&C sector which are globally imported by


Bangladesh, in 12 inputs the export unit value of at least one of the supplier in the region


is lower than the export unit value of the top exporter. For India, out of 38 potential


inputs of imports from within the region, all tariff lines have import tariffs more than 5




94


per cent and 12 tariff lines are in India‘s Sensitive List under SAFTA. In Pakistan, out of
117 potential inputs of imports from within the region, in 43 inputs the export unit value


of atleast one of the supplier in the region is lower than the export unit value of the top


exporter. All tariff lines have import tariffs 5 per cent or more and 17 tariff lines are in


Pakistan‘s Sensitive List under SAFTA. For Sri Lanka, out of 36 potential inputs of
imports from within the region, in 35 products, the export unit value of at least one of the


supplier in the region is lower than the export unit value of the top exporter. However,


none of the tariff lines have import tariffs more than 5 per cent and none of the tariff lines


are in Sri Lanka‘s Sensitive List under SAFTA.


7.2 Issues to Consider and Policy Implications


The above analysis brings to the forefront an important conclusion -- despite the


existence of high potential for formation of regional supply chains in the T&C sector in


South Asia, market forces on their own have not been successful in developing these


supply chains. Intra-regional trade still remains very low and complementarities in the


region have been ignored in favour of competition, which has denied the countries in the


region the opportunities of lowering the cost of production of their global exports.




Regional supply chains, if put in place, offers not only reduction in costs of production


but also the advantages of reaping economies of scale as well as lowering the lead time in


global deliveries. However, the formation of supply chains may give rise to an important


concern, which is that these may undermine the efforts of the countries in developing


their own domestic backward linkage industries. In order to address this concern, the


methodology devised for this analytical study is such that it rules out such a possibility.


The basic premise of the analysis is whether the countries are already importing from the


rest of the world and, if so, whether regional sourcing can replace those supplies.


Therefore, if for example, a country is sourcing all its import requirements from its


internal backward linkage industries, there is no scope for developing regional supply


chains. In other words, since global imports exist, there was no reason to believe that


regional imports would hurt domestic industries.




It is also important to point out that the analysis has only considered regional imports for


being used in the export-oriented sector and not for domestic consumption. As a result,


regional supply chains - at least the way they have been presented in the study - are not


any threat to domestic industry.




Following from the above, it is worth mentioning that the Sensitive List under SAFTA


may not be a constraint for regional supply chains. The export-oriented sectors are in


most cases procuring their raw materials from the cheapest possible global sources. Even


when the relevant domestic import competing sectors operate under the shield of tariffs


and other support measures, exporters are allowed duty-free import of raw materials or to


make use of such facilities as duty-drawback and bonded warehouse to protect their


competitiveness by getting inputs from globally efficient suppliers. From this perspective,


the Sensitive List maintained by different countries in the region should not be a problem


for allowing their exporters to source raw materials regionally. This is an issue that


deserves attention of policymakers and businesses.




95




There might be some apprehension about compromising the export sector‘s
competitiveness by using raw materials and primary inputs manufactured in the region.


Another related concern is whether the regional supply chains could lead to trade


diversions triggering welfare costs. However, as already pointed out above, South Asian


countries are exporting many of these items to the world market and they compete well


with other major global suppliers and as such the concern about undermining the


competitiveness in the export sector may not be true in a range of product lines. On the


other hand, it is important to note that the analytical study does not advocate for trade


policy-induced measures (such as tariff concessions for regional partners) for promoting


regional trade or supply chains. The South Asian T&C industry is overwhelming global


market-oriented and exporters will have to have access to raw material supplies at world


prices. Therefore, any suggestion of discriminatory tariffs on input supplies by sources is


not considered, thereby eliminating the possibility of trade diversion. Nevertheless, it


does not rule out the scope of policy interventions by South Asian countries as they can


be more ambitious in integrating their T&C industry across the region. This however has


not been considered as a part of the current study.




There are, however, other factors associated with competitiveness where regional supply


chains can actually exert beneficial effects. Unlike the traditional trade theories, there is


now robust evidence that transport cost reduce tradable volumes. Under ideal


circumstance, supplies procured within the region will involve lower transport cost


improving individual South Asian countries competitiveness. With regard to the exports


of textiles and apparels, most South Asian countries suffer from high ‗lead time‘ (i.e. the
time spent between the receipt of export order and delivery of the order at the importer‘s
designated port). Regional sourcing of raw materials, particularly for apparels, can


greatly help mitigate the problem.




The distribution of regional export gains could also attract attention of some observers.


As within the region some countries have larger supply capacity than others, concerns


may be raised about unequal distribution of gains from regional supply chains. However,


this argument is misconceived. According to the methodology adopted, countries are


importing intermediate inputs in order to increase their exports. If countries could not


experience increased export earnings, regional imports would also not rise. Also, one


should not merely focus on the distribution of regional exports; what is more important is


the growth of overall exports to the global markets.




One important caveat about the supply chain assessment however must be acknowledged.


Despite the use of highly disaggregated data, it has not been possible to take into account


the quality variations across various suppliers. There is no denying that the quality of


inputs would determine a supplier‘s catering to a particular market. In the case of
apparels in particular, many importers often provide strict specification with regard to the


inputs to be used and their preferred sources. This somewhat can reduce the scope of


regional sourcing. Nevertheless, the study has provided detailed and disaggregated


product level information where potentials for developing regional supply chains exist.




96


Based on this, the industry stakeholders can more precisely assess any likely effects of


product heterogeneity on regional sourcing and exports.




It goes without saying that much of the existing scope of exploiting supply chains would


largely depend on the progress made on overall cooperative efforts among the South


Asian nations. The existence of bilateral political differences has affected the


advancement of regional economic cooperation. It has been found that when it comes to


regional partners, South Asian countries are more restrictive than their trade regimes with


the rest of the world. Along with tariff barriers, a plethora of non-tariff measures limit


seriously constrain intra-region trade and investment flows. Due to lack of political will,


the region also suffers from relatively poor state of trade facilitation and high transaction


costs associated with cross-border exchange. All this will naturally have serious


implications for promoting regional supply chains.




Nevertheless, the study identifies inputs in which the countries global exports and also


have a potential to export, but they may not be the least cost supplier in the region. There


is a need to develop the potential of these products within the country to increase the


supply capacity and competitiveness of the countries. Apart from high tariffs and


inclusion of products in countries‘ Sensitive Lists, other reasons for lack of supply chains
in this sector in the region could be existence of non-tariff barriers. Stakeholder


consultations are needed for identifying the specific non-tariff barriers designed in a


manner to impede imports from within the region, which lowers the possibility of


formation of supply chains. The importance of trade facilitation for improving the


competence and competitiveness of the region in forming supply chains and emerging as


more cost competitive supplier needs urgent attention.




To conclude, the study brings out the potential of South Asia to emerge as globally more


competitive supplier of textiles and clothing through identified potential supply chains


that can be formed within the region. However, there is a need for policy intervention in


terms of detailed examination of sensitive lists of each country under SAFTA; a re-look


on the tariffs under SAFTA for the identified products; the removal of non-tariff barriers;


and emphasis on trade facilitation.




***




97


References





ADB and UNCTAD (2008). Quantification of Benefits from Economic Cooperation in South Asia


Macmillan.


Bhide S. (1998). ―India's Textile Trade: Marrakesh and Beyond‖, in Economic and Political
Weekly, Vol. 33, No. 21 (May 23-29, 1998), pp. 1226-1227.


Bilesha Weeraratne,(2004).,Textile and Apparel industry in Sri Lanka.


Central Bank of Sri Lanka. 2007, 2008 and 2009 Annual Reports.


Chandra P. (1999). ―Competing through Capabilities: Strategies for Global Competitiveness of
Indian Textile Industry‖, in Economic and Political Weekly, Vol. 34, No. 9 (Feb. 27 -
Mar. 5, 1999), pp. M17-M24.


Gereffi G. (2002). ―Prospects for Industrial Upgrading by Developing Countries in the Global
Apparel Commodity Chain‖ in International Journal of Business and Society 3, 1
(January): 27-60.


Gereffi G. (2003). ―The International Competitiveness of Asian Economies in the Apparel
Commodity Chain‖ ERD Working Paper No. 5, Asian Development Bank.


Gereffi G and Korzeniewicz M (1994). ―Commodity Chains and Global Capitalism‖.
Ghosh S.K. (2004) ―Apparel Exports in Post-MFA Regime‖ in Economic and Political Weekly,


Vol. 39, No. 17 (Apr. 24-30, 2004), pp. 1645-1648.


Kelegama S. (2005). ―Ready-Made Garment Industry in Sri Lanka: Preparing to Face the Global
Challenges‖ in Asia-Pacific Trade and Investment Review Vol. 1, No. 1, April 2005.


Kelegama, Saman and Ratnakar Adhikari (2002). ―Regional Integration in the WTO Era: South
Asia a Crossroads‖, Discussion Paper, vol. 85. SAWTEE, Kathmandu and CUTS, Jaipur.


Knappe M. (2005). ―Exporting Textiles & Clothing: What‘s the Cost for LDCs?‘ in International
Trade Forum Issue 1/2005, International Trade Centre.


Magder (2004). ―Egypt after the Multi-Fiber Arrangement: Global Apparel and Textile Supply
Chains as a Route for Industrial Upgrading‖, Peterson Institute Working Paper Series
number WP05-8.


Mahmood, K. (2009). ―The Impact of Loss of GSP Plus on Pakistan‘s Exports of Textiles and
Clothing to EU 27‖ , report submitted to PITAD.
Nadvi, K. and Thoburn, J. (2004). ―Vietnam in the global garment and textile value chain:


impacts of firms and workers‖ in Journal of International Development, vol. 16, No. 1:
111-12


Neil M Coe, Martin Hess, Henry Wai-chung Yeungt, Peter Dicken and Jeffrey Hendersont, 2004.


―Globalizing' Regional Development: A Global Production Networks Perspective,
Transactions of the Institute of British Geographers‖, New Series, Vol. 29, No. 4, pp.
468-484


Porter M (1985). Competitive Advantage: Creating and Sustaining Superior Performance.


Porter M (1990). The Competitive Advantage of Nations.




Princess Ventura (2004). Is Sri Lanka Ready for the Removal of Textile and Clothing Export


Quotas?, South Asia Poverty Reduction and Economic Management Unit.


Ram Upendra Das (2004).―Industrial Restructuring and Export Competitiveness of the Textiles
and Clothing Sector in SAARC in the context of MFA Phase-out‖, RIS Discussion
papers.


Ramaswamy K. V. and Gereffi G. (1998). ―India's Apparel Sector in the Global Economy:
Catching up or Falling Behind‖ in Economic and Political Weekly, Vol. 33, No. 3 (Jan.
17-23, 1998), pp. 122-130.




98


Ranjith Tennekoon (2000). Labour Issues In The Textile And Clothing Industry: A Sri Lankan


Perspective, International Labour Office Geneva.


Razzaque, A. and Raihan, S. (2007). Venturing into a Quota-Free Regime: The Ready-made


Garment Industry in Bangladesh. Pathak Samabesh, Dhaka.


Robbani G. (2004). Enhancing Collective Export Competitiveness on Textiles and Clothing: A


Study of Select South Asian Countries. CUTS, Jaipur.


Roy T. (1996). ―Market Resurgence, Deregulation, and Industrial Response: Indian Cotton
Textiles in 1990s‖ in Economic and Political Weekly, Vol. 31, No. 21 (May 25, 1996),
pp. M31-M41.


Rodas-Martini, Pablo(1988). ―Intra-Industry Trade and Revealed Comparative Advantage in the
Central American Common Market‖ in World Development, Vol. 26, No. 2, pp. 337-344.


Smith, A. (2003). ―Power relations, industrial clusters and regional transformations: pan-
European integration and outward processing in the Slovak clothing industry‖ in
Economic Geography, 79: 17-40.


Tewari M, (2008). Deepening Intraregional Trade and Investment in South Asia: The Case of the


Textiles and Clothing Industry. ICRIER, New Delhi Working Papers 213.


USITC, (2004). Textiles and Apparel: Assessment of the Competitiveness of Certain Foreign


Suppliers to the U.S. Market.


Verma S. (2002). ―Export Competitiveness of Indian Textile and Garment Industry‘, Indian
Council For Research on International Economic Relations Working Paper No. 94,


November 2002


Yeats, A. 2000. What can be expected from African regional trade arrangements? Some


empirical evidence. Washington DC: International Trade Division, The World Bank.


World Bank, (2010). Global Economic Prospects.










***











































99















































100


APPENDIX






TABLE A.1: Export Unit Values of Inputs Identified for Imports in Potential Supply Chains for Bangladesh




S.No. Tariff line Description Share of
Banglades
h's Global
Imports to
South
Asia's
Global
Exports
(percentag
e)


Top
Exporter to
Banglades
h in 2007


Share of
top
exporter in
Banglades
h's Global
imports
(2007)
(percentag
e)


Top
Exporter


Export unit
value


India's
Expor
t unit
value


Pakistan
's Export


unit
value


Sri-
Lanka'


s
Expor
t unit
value


Banglad
esh's
Tariff
2007


Banglades
h’s


Sensitive
list under


SAFTA


1 510529


Wool and fine or coarse animal hair,
carded or combed (including
combed wool in fragments)(WOOL
TOPS AND OTHER COMBED
WOOL ) 1.98 Malaysia 50.47 8.43 8.37 5


2 520511


Cotton yarn (other than sewing
thread), containing 85 per cent or
more by weight of cotton, not put up
for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG
714.29 DCTX/MORE(NT EXCDNG
14 MTRC NO) ) 8.69 India 94.75 2.71 2.71 2.00 12


3 520942


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing more than 200
g/m2(DENIM ) 75.63 China 37.81 4.55 4.55 4.55 25 SL


4 530890


Yarn of other vegetable textile
fibres; paper yarn(OTHER VEG
TEXTL YARN ) 24.13 China 69.40 3.47 1.99 12


5 550320


Synthetic staple fibres, not carded,
combed or otherwise processed for
spinning(STAPLE FIBRES OF 30.65


Taiwan,
China 27.21 1.44 1.31 1.34 0




101


POLYESTER NT CRD/CMBD )


6 550410


Artificial staple fibres, not carded,
combed or otherwise processed for
spinning(VISCOSE RAYON
STAPLE FIBRES NT CRD/COMBD
) 12.06 India 89.03 2.27 2.27 1.79 0


7 550620


Synthetic staple fibres, carded
combed or otherwise processed for
spinning(STAPLE FIBRS OF
POLYESTERS,CARDED/COMBED
) 15.17 Thailand 50.43 1.18 1.13 1.58 0


8 550630


Synthetic staple fibres, carded
combed or otherwise processed for
spinning(STAPLE FIBRES OF
ACRYLC/MODACRYLC,CRD/CMB
D ) 19.40 India 75.74 2.18 2.18 1.62 0


9 560122


Wadding of textile materials and
articles thereof; textile fibres, not
exceeding 5 mm in length (flock),
textile dust and mill
neps(WADDING OF MAN-MADE
FIBRES ) 273.93


Europea
n Union 38.88 8.49 2.91 25


10 581100


Quilted textile products in the piece,
composed of one or more layers of
textile materials assembled with
padding by stitching or otherwise,
other than embroidery of heading
5810(QUILTED TXTL PRDCTS IN
THE PIECE CMPSD OF
ONE/MORE LAYERS OF TXTL
MATRLS ASSMBLD WTHPDDNG
BY STICHING ETC EXCPT HDG
5810 ) 6.92 China 38.74 4.39 10.83 3.97 16.77 25 SL


11 500200
Raw silk (not thrown)(RAW SILK
(NOT THROWN) ) 138.17 China 100.00 24.51 29.37 12 SL


12 500500 Yarn spun from silk waste, not put 34.62 China 100.00 21.11 27.47 12




102


up for retail sale(YRN SPN FRM
SLK WST NT PUT UP FR RETAL
SLE )


13 540233


Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic
monofilament of less than 67
decitex(TEXTURED YARN OF
POLYESTERS ) 26.32 Thailand 36.90 1.75 1.86 2.23 25 SL


14 250100


Salt (including table salt and
denatured salt) and pure sodium
chloride, whether or not in aqueous
solution or containing added anti-
caking or free flowing agents; Sea
water(SALT (INCL TABLE SALT &
DENATRD SALT) & PURE SODIM
CHLRDE W/N AQS SOLN SEA
WTR ) 8.36 India 77.24 0.02 0.02 0.07 6.93 18.43 SL


15 280920


Diphosphorus pentaoxide;
phosphoric acid and polyphosphoric
acids whether or not chemically
defined(PHOSPHORIC ACID &
POLYPHOSPHORIC ACIDS ) 165.31 Morocco 50.17 0.47 0.30 12


16 281511


Sodium hydroxide (caustic soda);
potassium hydroxide (caustic
potash); peroxides of sodium or
potassium(SOLID SODIUM
HYDROXIDE (CAUSTIC SODA) ) 265.93 China 92.28 0.33 0.41 0.32 25 SL


17 282739


Chlorides, chloride oxides and
chloride hydroxides; bromides and
bromide oxides; iodides and iodide
oxides(OTHER CHLORIDE; NES ) 2.21 Japan 47.40 4.78 3.03 12


18 283640


Carbonates; peroxocarbonates
(percarbonates); commercial
ammonium carbonate containing
ammonium 32.20


Korea,
Rep. 44.97 0.56 0.23 12




103


carbamate(POTASSIUM
CARBONATES )


19 290410


Sulphonated, nitrated or nitrosated
derivatives of hydrocarbons,
whether or not
halogenated(DRVTVS CNTNG
ONLY SULPHO GROUPS, THEIR
SALTS AND ETHYL ESTERS ) 2.04


Singapor
e 55.04 6.30 2.99 8.5


20 291735


Polycarboxylic acids, their
anhydrides, halides, peroxides and
peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(PHTHALIC
ANHYDRIDE ) 4.84


Korea,
Rep. 95.14 1.21 1.30 0.98 5


21 291739


Polycarboxylic acids, their
anhydrides, halides, peroxides and
peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(OTHR ARMTC
PLYCRBOXYLC ACIDS THR
ANHYDRDS HALIDES
PEROXIDES PEROXYACDS &
THR DRVTVS ) 0.48 China 71.39 2.66 2.58 25


22 292090


Esters of other inorganic acids of
non-metals (excluding esters of
hydrogen halides) and their salts;
their halogenated, sulphonated,
nitrated or nitrosated
derivatives(OTR ESTERS OF OTR
INORGNC ACDS;THRSLTS ETC ) 0.68


United
States 35.43 4.35 0.86 8.5


23 292119


Amine function compounds(OTHR
ACYCLIC MONOAMINES & THEIR
DEVIVATIVES SALTS THEREOF ) 2.64


Europea
n Union 50.39 2.99 2.76 5


24 292151


Amine function compounds(O-M-P-
PHENYLENEDIAMINE
DIAMINOTOLUENE AND THEIR 0.76 India 83.24 4.46 4.46 5




104


DRVTVS SALTS THEREOF )


25 292429


Carboxyamide-function compounds;
amide-function compounds of
carbonic acid(OTHR CYCLC
AMIDES(INCL CYCLC
CRBAMATES) & THEIR
DERIVATIVES & SALTS
THEREOF ) 20.21 China 87.44 5.20 4.94 5


26 300420


Medicaments(excluding goods of
heading 3002,3005 or 3006)
consisting of mixed or unmixed
products for therapeutic or
prophylactic uses, put up in
measured doses(including those in
the form of transdermal
administration systems) or in forms
or packings for(MEDICAMENTS
CONTAINING OTHER
ANTIBIOTICS AND PUT UP FOR
RETAIL SALE ) 1.15 India 68.36 38.81 38.81 8.92 5 SL


27 320417


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(PIGMENTS & PREPTNS
BASED THEREON ) 3.63 China 29.76 5.11 6.20 4.44 3.14 5


28 320420


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as 7.03


Korea,
Rep. 35.32 3.60 2.78 1.43 5




105


luminoph(SYNTHETIC ORGANIC
PRDCTS OF A KIND USED AS
FLUORESCENT BRIGHTENING
AGENTS )


29 340311


Lubricating preparations (including
cutting-oil preparations, bolt or nut
release preparations, anti-rust or
anti-corrosion preparations and
mould release preparations, based
on lubricants) and preparations of a
kind used for the oil or grease
treatment o(PRPNS FOR THE
TRTMNT OF TXTL MATRLS
LEATHER FURSKINS/OTHER
MATERIALS CONTNG
PETROLIUM OILS/OIL OBTND
FROM BITMNS MNRLS ) 112.27


Europea
n Union 32.68 1.94 1.35 5


30 382200


Diagnostic or laboratory reagents
on a backing and prepared
diagnostic or laboratory reagents
whether or not on a backing, other
than those of heading 3002 or 3006
certified reference
materials(COMPST
DIAGNOSTIC/LABRTRY
REAGNTS EXCL GOODS OF
HDG. NO. 3002/3006 ) 44.81


Europea
n Union 40.43 60.34 34.99 5


31 390750


Polyacetals, other polyethers and
epoxide resins, in primary forms;
polycarbonates, alkyd resins,
polyallylesters and other polyesters,
in primary forms(ALKYD RESINS ) 21.24 Malaysia 60.79 1.49 1.22 5


32 760110


UNWROUGHT
ALUMINIUM(ALUMINIUM-NOT
ALLOYED ) 9.78


Singapor
e 50.29 3.32 2.75 2.57 5


33 281000
Oxides of boron;boric
acids(OXIDES OF BORON BORIC 35.30


United
States 71.39 0.50 0.96 12




106


ACIDS )


34 281512


Sodium hydroxide (caustic soda);
potassium hydroxide (caustic
potash); peroxides of sodium or
potassium(NAOH IN AQS SOLN
(SODA LYE OR LQD SODA) ) 170.53 China 96.77 0.19 0.32 25 SL


35 281520


Sodium hydroxide (caustic soda);
potassium hydroxide (caustic
potash); peroxides of sodium or
potassium(POTASSIUM
HYPROXIDE (CAUSTIC POTASH)
) 4.51 China 53.43 0.57 0.8 25


36 283210
Sulphites; thiosulphates(SODIUM
SULPHITE ) 17.69 China 47.99 0.26 0.89 12


37 283620


Carbonates; peroxocarbonates
(percarbonates); commercial
ammonium carbonate containing
ammonium carbamate(DISODIUM
CARBONATE ) 74.03 China 66.98 0.17 0.2 0.3 5 SL


38 284700


Hydrogen peroxide, whether or not
solidified with urea(HYDROGEN
PEROXIDE W/N SOLIDIFIED
WITH UREA ) 676.55


Korea,
Rep. 43.16 0.39 0.41 12 SL


39 290330


Halogenated derivatives of
hydrocarbons(FLUORNTD,BRMNT
D/IODINATED DERIVATIVES OF
ACYCLIC HYDROCARBONS ) 24.03


Europea
n Union 38.68 6.56 8.17 12


40 290420


Sulphonated, nitrated or nitrosated
derivatives of hydrocarbons,
whether or not
halogenated(DRVTVS CNTNG
ONLY NITRO/NITROSO GRPS ) 10.43 China 55.18 1.57 2.6 12


41 290511


Acyclic alcohols and their
halogenated, sulphonated, nitrated
or nitrosated
derivatives(SATURATED 25.31


Singapor
e 71.73 0.43 0.9 12




107


METHANOL (METHYL ALCOHOL)
)


42 290512


Acyclic alcohols and their
halogenated, sulphonated, nitrated
or nitrosated
derivatives(SATURATED PROPAN-
1OL(PROPYL ALCOHOL) AND
PROPAN-2-OL (ISOPROPYL
ALCOHOL) ) 24.53


Singapor
e 70.46 1.11 1.12 12


43 290513


Acyclic alcohols and their
halogenated, sulphonated, nitrated
or nitrosated
derivatives(SATURATED BUTAN-
1-OL(N-BUTYL ALCOHOL) ) 4.44


Singapor
e 87.36 1.34 1.99 12


44 290516


Acyclic alcohols and their
halogenated, sulphonated, nitrated
or nitrosated derivatives(SATRTD
OCTNL(OCTYL ALCHL)& ISMRS
THEREOF ) 322.01 Malaysia 66.91 1.55 3.2 12


45 290629


Cyclic alcohols and their
halogenated, sulphonated, nitrated
or nitrosated derivatives(OTHER
AROMATIC ALCOHOL ) 1.25 China 46.55 5.62 6.65 12


46 290711


Phenols; phenol-alcohols(PHENOL
(HYDROXYBENZENE) AND ITS
SALTS ) 3.37


Korea,
Rep. 72.33 1.31 2.59 5


47 290930


Ethers, ether-alcohols, ether-
phenols, ether-alcohol-phenols,
alcohol peroxides, ether peroxides,
ketone peroxides (whether or not
chemically defined), and their
halogenated, sulphonated, nitrated
or nitrosated derivatives(ARMTC
ETHRS & THR HALGNTD
SLPHNTD NITRATED OR
NITROSATED DERIVATIVES ) 1.53 China 89.87 6.61 7.16 5




108


48 291469


Ketones and Quinones, whether or
not with other oxygen function, and
their halogenated, sulphonated,
nitrated or nitrosated
derivatives(OTHER QUINONES ) 11.05 China 84.14 7.79 11.66 12


49 291521


Saturated acyclic monocarboxylic
acids and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated
or nitrosated derivatives(ACETIC
ACID ) 41.36


Taiwan,
China 45.34 0.65 0.89 25


50 291524


Saturated acyclic monocarboxylic
acids and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated
or nitrosated derivatives(ACETIC
ANHYDRIDE ) 79.38


Singapor
e 58.09 1.13 1.2 12


51 291539


Saturated acyclic monocarboxylic
acids and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated
or nitrosated derivatives(OTHER
ESTERS OF ACETIC ACID ) 3.31


United
Kingdom 47.16 2.02 3.68 12


52 291550


Saturated acyclic monocarboxylic
acids and their anhydrides, halides,
peroxides and peroxyacids; their
halogenated, sulphonated, nitrated
or nitrosated
derivatives(PROPIONIC ACID ITS
SALTS AND ESTERS ) 7.79 China 58.77 1.41 19.9 8.5


53 291631


Unsaturated acyclic monocarboxylic
acids, cyclic monocarboxylic acids,
their anhydrides, halides, peroxides
and peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(BENZOIC ACID ITS
SALTS AND ESTERS ) 5.77 China 73.74 1.57 7.19 5




109


54 291830


Carboxylic acids with additional
oxygen function and their
anhydrides, halides, peroxides and
peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(CRBXYLC ACIDS WTH
ALDHYD/KETONE FNCTN BUT
WTHOUT OTHR OXYGN FNCTN
THR ANHYDRDS HALDS
PEROXIDES PEROXYACIDS &
THR DRVTVS ) 48.29 China 70.11 6.15 19.27 12


55 291890


Other Carboxylic Acids With
Oxygen Function, Their Anhydrides,
Halides 21.21 China 55.50 6.86 9.65 5


56 292142


Amine function
compounds(ANILINE
DERIVATIVES AND THEIR SALTS
) 0.58 China 99.32 2.31 2.54 5


57 292229


Oxygen-function amino-
compounds(OTHR AMINO-
NAPTHLS & OTHR AMINO-PHNLS
THR ETHRS & ESTRS OTHR THN
THOSE CNTNG MORE THN ONE
KND OF EXYGN FNCTN SLTS
THEREOF ) 5.23 China 75.20 2.95 6.01 8.5


58 292419


Carboxyamide-function compounds;
amide-function compounds of
carbonic acid(OTHER ACYCLIC
AMIDES & THR DRVTVS,SALTS ) 1.67


Europea
n Union 90.21 2.52 3.45 5


59 292700


Diazo-, azo- or azoxy-
compounds(DIAZO-AZO-OR
AZOXY-COMPOUNDS ) 6.54 China 78.37 2.05 4.58 12


60 293349


Heterocyclic compounds with
nitrogen hetero-atom(s) only(OTHE
CMPNDS CNTNG IN STRUCTURE
A QUINOLINEOR ISOQUINOLINE 20.21 China 79.98 7.73 21.81 5




110


RING SYSTEM (W/N
HYDRGNTD),NOT FURTHER
FUSED )


61 320411


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(DISPERSE DYES &
PREPARATIONS BASED
THEREON ) 56.17 China 34.04 3.31 5.08 5


62 320415


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(VAT DYES (INCL THOSE
USABLE IN THAT STATE AS
PPIGMNTS & PREPRATIONS
BASED THEREON ) 15.68 China 53.36 5.00 15.93 5


63 340211


Organic surface-active agents
(other than soap), surface-active
preparations, washing preparations
(including auxiliary washing
preparations) and cleaning
preparations, whether or not
containing soap, other than those of
Heading 3401(ANIONIC W/N FOR
RTL SALE ) 21.71


Korea,
Rep. 38.75 1.17 1.28 18.5 SL


64 380610


Rosin and resin acids, and
derivatives thereof; rosin spirit and
rosin oils; run gums(ROSIN AND
RESIN ACIDS: ) 6.89 Vietnam 67.08 1.10 1.44 25




111






65 380991


Finishing agents, dye carriers to
accelerate the dyeing or fixing of
dye-stuffs and other products and
preparations (for example,
dressings and mordants), of a kind
used in the textile, paper, leather or
like industries, not elsewhere
specified or include(PRPNS USD IN
TXTL INDUSTRY ) 258.35


Taiwan,
China 23.34 1.51 1.93 1.85 1.58 5 SL




112


TABLE A.2: Export Unit Values of Inputs Identified for Imports in Potential Supply Chains for India



S.No. Tariff line Description Share of


India's
Global
Imports to
South
Asia's
Global
Exports
(percentag
e)


Top
Exporter to
India in
2007


Share of
top
exporter
in India's
Global
imports
(2007)
(percent
age)


Exp UV of Top
Exporter


Bangl
adesh'
s
Expor
t unit
value


Pakistan
's Export
unit
value


Sri-
Lanka'
s
Expor
t unit
value


India's
Tariff
2007


India’s
Sensitive
list under


SAFTA


1 510129


Wool, not carded or combed:(OTHR
DEGRESD WOOL NT CRBNSD
NOR CRDED/CMBD ) 3668.70 Turkey 42.02 1.42 0.84 15


2 510910


Yarn of wool or fine animal hair, put
up for retail sale(YARN OF
WOOL/OF FINE ANML HAIR
CONTNG>=85 per centBY WT OF
WOOL,PUT UP FOR RETAIL SALE
) 152.27


Europea
n Union 66.00 36.19 26.1 12.5


3 520100


Cotton, not carded or
combed(COTTON, NOT CARDED
OR COMBED ) 112.53


Banglade
sh 59.94 1.30 1.30 1.11 10 SL


4 520511


Cotton yarn (other than sewing
thread), containing 85 per cent or
more by weight of cotton, not put up
for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG
714.29 DCTX/MORE(NT EXCDNG
14 MTRC NO) ) 0.34 Pakistan 60.61 2.00 2.19 2.00 12.5 SL


5 520942


Woven fabrics of cotton, containing
85 per cent or more by weight of
cotton, weighing more than 200
g/m2(DENIM ) 35.47


Europea
n Union 44.06 10.30 3.08 4.55 12.5


6 540269


Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic 783.50 China 73.35 4.20 3.13 12.5




113


monofilament of less than 67
decitex(OTHER
YARN,MULTIPLE(FOLDED)OR
CABLED )


7 550410


Artificial staple fibres, not carded,
combed or otherwise processed for
spinning(VISCOSE RAYON
STAPLE FIBRES NT CRD/COMBD
) 1861.49 China 92.05 2.28 1.79 12.5


8 550510


Waste (including noils, yarn waste
and garnetted stock) of man-made
fibres(WASTE ETC.OF
SYNTHETIC FIBRES ) 5616.13


Europea
n Union 43.43 0.98 1.91 0.48 12.5


9 550690


Synthetic staple fibres, carded
combed or otherwise processed for
spinning(OTHR SYNTHTC STAPLE
FIBRES,CARDED/COMBED ) 18.36


Europea
n Union 80.12 5.43 1.18 12.5


10 550953


Yarn (other than sewing thread) of
synthetic staple fibres, not put up
for retail sale(OTHER YARN OF
POLYSTER STAPLE FIBRS
MIXED MAINLY/SOLELY WITH
COTTON ) 3.51 Vietnam 43.93 2.51 2.16 12.5


11 560122


Wadding of textile materials and
articles thereof; textile fibres, not
exceeding 5 mm in length (flock),
textile dust and mill
neps(WADDING OF MAN-MADE
FIBRES ) 467.86


Europea
n Union 48.76 8.49 3.45 2.91 12.5


12 581100


Quilted textile products in the piece,
composed of one or more layers of
textile materials assembled with
padding by stitching or otherwise,
other than embroidery of heading
5810(QUILTED TXTL PRDCTS IN
THE PIECE CMPSD OF 25.77


Europea
n Union 63.58 16.80 3.37 3.97 16.77 12.5




114


ONE/MORE LAYERS OF TXTL
MATRLS ASSMBLD WTHPDDNG
BY STICHING ETC EXCPT HDG
5810 )


13 600191


Pile fabrics, including "long pile"
fabrics and terry fabrics, knitted or
crocheted(OTHER PILE FABRICS
OF COTTON ) 71.86 China 78.02 7.84 4.05 12.5 SL


14 611780


Other made up clothing
accessories, knitted or crocheted;
knitted or crocheted parts of
garments or of clothing
accessories(OTHER CLOTHNG
ACCESSORIES,KNITD/CRCHTD ) 187.12


Singapor
e 38.63 33.84 5.8 28.96 16.77 12.5 SL


15 500720


Woven fabrics of silk or of silk
waste(OTHER WOVEN
FABRICS,CONTAINING>=85 per
cent BY WT OF SILK OROF SILK
WASTE OTHR THN NOIL SLK ) 69799.17 China 98.73 119.63 12.5 SL


16 540233


Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic
monofilament of less than 67
decitex(TEXTURED YARN OF
POLYESTERS ) 86.04 China 53.11 1.70 2.23 12.5


17 550320


Synthetic staple fibres, not carded,
combed or otherwise processed for
spinning(STAPLE FIBRES OF
POLYESTER NT CRD/CMBD ) 475.41 China 61.65 1.15 1.34 12.5


18 550340


Synthetic staple fibres, not carded,
combed or otherwise processed for
spinning(STAPLE FIBRS OF
POLYPROPYLENE NT
CRD/CMBD ) 327.91


Saudi
Arabia 45.62 2.10 12.5


19 560410
Rubber thread & cord, textile
covered; textile yarn, and strip and 354.89


Europea
n Union 60.89 8.48 12.5




115


the like of heading 54 04 or 54 05,
impregnated, coated, covered or
sheathed with rubber or
plastics(RUBBER THREAD
ANDCORD,TEXTILE COVERED )


20 250100


Salt (including table salt and
denatured salt) and pure sodium
chloride, whether or not in aqueous
solution or containing added anti-
caking or free flowing agents; Sea
water(SALT (INCL TABLE SALT &
DENATRD SALT) & PURE SODIM
CHLRDE W/N AQS SOLN SEA
WTR ) 22.22 Pakistan 56.22 0.07 0.07 6.93 12.5


21 271019


Petroleum oils and oils obtained
from bituminous minerals, other
than crude; preparations not
elsewhere specified or included,
containing by weight 70 per cent or
more of petroleum oils or of oils
obtained from bituminous minerals,
these oils being the basic
cons(OTHER PETROLEUM OILS
AND OILS OBTAIND
FROMBITUMINOUS MINERALS
ETC ) 313.96


Singapor
e 37.16 0.55 0.27 0.61 1.6 10 SL


22 291735


Polycarboxylic acids, their
anhydrides, halides, peroxides and
peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated
derivatives(PHTHALIC
ANHYDRIDE ) 1263.36


Korea,
Rep. 57.51 1.21 0.98 12.5


23 300420
Medicaments(excluding goods of
heading 3002,3005 or 3006) 559.40


Europea
n Union 52.53 124.94 10.1 8.92 12.5 SL




116


consisting of mixed or unmixed
products for therapeutic or
prophylactic uses, put up in
measured doses(including those in
the form of transdermal
administration systems) or in forms
or packings for(MEDICAMENTS
CONTAINING OTHER
ANTIBIOTICS AND PUT UP FOR
RETAIL SALE )


24 310210


Mineral or chemical fertilisers,
nitrogenous(UREA WHETHER OR
NOT IN AQUEOUS SOLUTION ) 818.31 China 44.46 0.28 0.2 12.5


25 320416


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(REACTIVE DYS &
PREPTNS BASED THEREON ) 2883.72


Singapor
e 30.33 8.04 3.2 12.5 SL


26 320417


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(PIGMENTS & PREPTNS
BASED THEREON ) 1962.13 China 34.84 5.11 4.44 3.14 12.5 SL


27 320420


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as 7220.97


Switzerla
nd 41.39 4.07 1.43 12.5




117


fluorescent brightening agens or as
luminoph(SYNTHETIC ORGANIC
PRDCTS OF A KIND USED AS
FLUORESCENT BRIGHTENING
AGENTS )


28 320649


Other colouring matter;
Preparations as specified in Note 3
to this Chapter, other than those of
Headings3203,3204 or 3205;
Inorganic products of a kind used
as luminophores, whether or not
chemically defined(OTHR COLRNG
MATR AND OTHR PRPTNS ) 1306.00


Europea
n Union 29.06 4.81 2.55 0.56 12.5 SL


29 350510


Dextrins and other modified
starches (for example,
pregelatinised or esterified
starches); glues based on starches,
or on dextrins or other modified
starches(DEXTRINS & OTHER
MODIFIED STARCHES ) 3258.84


Europea
n Union 49.67 1.06 0.81 50 SL


30 380210


Activated carbon; activated natural
mineral products; animal black,
including spent animal
black(ACTIVATED CARBON ) 45.03


Europea
n Union 57.50 3.13 1.23 12.5


31 380991


Finishing agents, dye carriers to
accelerate the dyeing or fixing of
dye-stuffs and other products and
preparations (for example,
dressings and mordants), of a kind
used in the textile, paper, leather or
like industries, not elsewhere
specified or include(PRPNS USD IN
TXTL INDUSTRY ) 2563.17


Singapor
e 45.47 6.03 1.85 1.58 12.5


32 382490


Prepared binders for foundry
moulds or cores; chemical products
and preparations of the chemical or
allied industries (including those 7551.96


Europea
n Union 55.29 2.97 1.7 12.5




118


consisting of mixtures of natural
products), not elsewhere specified
or included(CHEMICAL PRODCTS
NES )


33 690100


Bricks, blocks, tiles and other
ceramic goods, of siliceous fossil
meals (for example, kieselguhr,
tripolite or diatomite or of similar
siliceous earths(BRICKS,BLOCKS
ETC OF SILICEOUS FOSSIL
MEAL(KIESELGUHR ETC)/OF
SMLR SILICEOUS EARTHS ) 440.50 China 65.49 0.22 0.58 0.09 12.5


34 740400
Copper waste and scrap(COPPER
WASTE & SCRAP ) 1181.13


Europea
n Union 48.21 2.96 5.42 1.08 5.48 12.5


35 760110


UNWROUGHT
ALUMINIUM(ALUMINIUM-NOT
ALLOYED ) 16111.23


South
Africa 75.32 2.60 2.57 12.5


36 283620


Carbonates; peroxocarbonates
(percarbonates); commercial
ammonium carbonate containing
ammonium carbamate(DISODIUM
CARBONATE ) 2912.33


Europea
n Union 66.97 0.17 0.3 12.5


37 320419


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or as
luminoph(OTHR INCL MIXR OF
COLRNG MATR OF TWO OR
MORE OF SUB-HDNG 320411 TO
320419 ) 22117.14 China 40.01 1.72 12.5 SL


38 390410


Polymers of vinyl chloride or of
other halogenated olefins, in
primary forms(POLY (VINYL 3163.66 China 53.58 0.88 0.9 12.5




119


CHLORIDE), NOT MIXED WITH
OTHR )




TABLE A.3: Export Unit Values of Inputs Identified for Imports in Potential Supply Chains for Pakistan





S.No. Tariff line Description Share of


Pakistan's
Global


Imports to
South
Asia's
Global


Exports
(percenta


ge)


Top
Exporter to
Pakistan in


2007


Share of
top


exporter
in


Pakistan
's Global
imports


(2007)
(percent


age)


Top Exporter
Export unit


value


Banglad
esh's


Export
unit


value


India's
Export


unit
value


Sri-
Lank


a's
Expo


rt
unit
valu


e


Pakistan
's Tariff


2007


Sensitive
list


1 510529 Wool and fine or coarse animal hair,
carded or combed (including


combed wool in fragments)(WOOL
TOPS AND OTHER COMBED


WOOL )


4.20 India 54.26 8.37 8.37 5


2 520100 Cotton, not carded or
combed(COTTON, NOT CARDED


OR COMBED )


46.45 India 42.14 1.33 1.30 1.33 5


3 520511 Cotton yarn (other than sewing
thread), containing 85 per cent or


more by weight of cotton, not put up
for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG


714.29 DCTX/MORE(NT EXCDNG
14 MTRC NO) )


0.58 India 91.39 2.71 2.19 2.71 5


4 540269 Synthetic filament yarn (other than
sewing thread), not put up for retail


sale, including synthetic
monofilament of less than 67


decitex(OTHER
YARN,MULTIPLE(FOLDED)OR


41.64 China 71.37 4.20 3.19 10




120


CABLED )


5 550510 Waste (including noils, yarn waste
and garnetted stock) of man-made


fibres(WASTE ETC.OF
SYNTHETIC FIBRES )


18.84 European
Union


89.01 0.98 1.91 0.71 10


6 550620 Synthetic staple fibres, carded
combed or otherwise processed for


spinning(STAPLE FIBRS OF
POLYESTERS,CARDED/COMBED


)


189.28 China 84.07 1.56 1.13 10


7 550630 Synthetic staple fibres, carded
combed or otherwise processed for


spinning(STAPLE FIBRES OF
ACRYLC/MODACRYLC,CRD/CMB


D )


108.84 European
Union


100.14 2.92 2.18 10


8 550953 Yarn (other than sewing thread) of
synthetic staple fibres, not put up
for retail sale(OTHER YARN OF


POLYSTER STAPLE FIBRS
MIXED MAINLY/SOLELY WITH


COTTON )


0.34 United
Arab


Emirates


70.36 2.66 2.35 10


9 600191 Pile fabrics, including "long pile"
fabrics and terry fabrics, knitted or
crocheted(OTHER PILE FABRICS


OF COTTON )


6.86 China 100.00 7.84 4.05 3.02 25


10 520300 Cotton, carded or
combed(COTTON CARDED OR


COMBED )


60.35 Tanzania 32.01 0.94 1.85 1.40 5


11 540220 Synthetic filament yarn (other than
sewing thread), not put up for retail


sale, including synthetic
monofilament of less than 67


decitex(HIGH TENACITY YARN OF
POLYESTERS )


3.02 Saudi
Arabia


72.58 2.54 3.09 8.29 10


12 540233 Synthetic filament yarn (other than
sewing thread), not put up for retail


61.38 China 55.72 1.70 1.86 10




121


sale, including synthetic
monofilament of less than 67


decitex(TEXTURED YARN OF
POLYESTERS )


13 550130 Synthetic filament tow(SYNTHTC
FILAMNT


TOW,ACRYLIC/MODACRYLIC )


263.75 Russian
Federatio


n


42.83 1.88 2.85 10


14 550320 Synthetic staple fibres, not carded,
combed or otherwise processed for


spinning(STAPLE FIBRES OF
POLYESTER NT CRD/CMBD )


50.62 China 76.47 1.15 1.31 10


15 550410 Artificial staple fibres, not carded,
combed or otherwise processed for


spinning(VISCOSE RAYON
STAPLE FIBRES NT CRD/COMBD


)


133.93 Taiwan,
China


57.07 2.21 2.27 5


16 560410 Rubber thread & cord, textile
covered; textile yarn, and strip and
the like of heading 54 04 or 54 05,


impregnated, coated, covered or
sheathed with rubber or


plastics(RUBBER THREAD
ANDCORD,TEXTILE COVERED )


181.84 China 37.00 2.42 4.42 10


17 250100 Salt (including table salt and
denatured salt) and pure sodium


chloride, whether or not in aqueous
solution or containing added anti-


caking or free flowing agents; Sea
water(SALT (INCL TABLE SALT &
DENATRD SALT) & PURE SODIM


CHLRDE W/N AQS SOLN SEA
WTR )


0.72 European
Union


65.15 0.09 0.02 6.93 20


18 260700 Lead ores and concentrates(LEAD
ORES & CONCENTRATES )


0.30 Morocco 86.81 1.68 0.09 5


19 271019 Petroleum oils and oils obtained
from bituminous minerals, other


0.83 Singapore 38.09 0.55 0.27 0.59 1.60 14




122


than crude; preparations not
elsewhere specified or included,


containing by weight 70 per cent or
more of petroleum oils or of oils


obtained from bituminous minerals,
these oils being the basic


cons(OTHER PETROLEUM OILS
AND OILS OBTAIND


FROMBITUMINOUS MINERALS
ETC )


20 280540 Alkali or alkaline-earth metals; rare-
earth metals, scandium and yttrium,


whether or not intermixed or
interalloyed; mercury(MERCURY )


134.82 European
Union


100.08 16.31 7.65 5


21 281119 Other inorganic acids and other in-
organic oxygen compounds of non-


metals(OTHER INORGANIC
ACIDS )


7.18 European
Union


49.84 2.62 1.22 10


22 282300 Titanium oxides(TITANIUM
OXIDES )


19.01 European
Union


73.87 2.61 1.20 5


23 282580 Hydrazine and hydroxylamine and
their inorganic salts; other inorganic


bases; other metal oxides,
hydroxides and


peroxides(ANTIMONY OXIDES )


29.21 Japan 100.00 7.22 5.46 5


24 282739 Chlorides, chloride oxides and
chloride hydroxides; bromides and
bromide oxides; iodides and iodide
oxides(OTHER CHLORIDE; NES )


6.11 India 23.84 3.03 3.03 5


25 283325 Sulphates; alums; peroxosulphates
(persulphates)(COPPER


SULPHATE )


53.20 China 62.11 1.92 1.75 5


26 283630 Carbonates; peroxocarbonates
(percarbonates); commercial


ammonium carbonate containing
ammonium carbamate(SODIUM


69.98 China 65.57 0.15 0.17 20 SL




123


HYDROGEN CARBONATE
(SODIUM BICARBONATE) )


27 283640 Carbonates; peroxocarbonates
(percarbonates); commercial


ammonium carbonate containing
ammonium


carbamate(POTASSIUM
CARBONATES )


212.68 Thailand 58.49 0.55 0.23 5


28 290241 Cyclic hydrocarbons(O-XYLENE ) 11.50 India 85.02 1.05 1.05 5


29 290290 Cyclic hydrocarbons(OTHER
CYCLIC HYDROCARBONS )


5.07 China 83.36 5.64 2.26 10


30 290410 Sulphonated, nitrated or nitrosated
derivatives of hydrocarbons,


whether or not
halogenated(DRVTVS CNTNG


ONLY SULPHO GROUPS, THEIR
SALTS AND ETHYL ESTERS )


2.99 India 71.89 2.99 2.99 8


31 290490 Sulphonated, nitrated or nitrosated
derivatives of hydrocarbons,


whether or not halogenated(OTHR
SULPHONTD NITRTD/NITRSTD


DRVTVS )


1.52 China 56.93 2.13 2.09 5


32 290512 Acyclic alcohols and their
halogenated, sulphonated, nitrated


or nitrosated
derivatives(SATURATED PROPAN-


1OL(PROPYL ALCOHOL) AND
PROPAN-2-OL (ISOPROPYL


ALCOHOL) )


62.08 Taiwan,
China


58.91 1.12 1.12 5


33 290729 Phenols; phenol-alcohols(OTHER
POLYPHENOLS )


0.83 India 51.21 6.77 6.77 5


34 291300 Halogenated, sulphonated, nitrated
or nitrosated derivatives of products


of heading 2912(HALGNTD
SLPHNTD NITRTD/NITRSTD
DRVTVS OF PRODUCTS OF


4.35 Singapore 61.24 2.97 1.83 5




124


HEADING NO. 2912 )


35 291421 Ketones and Quinones, whether or
not with other oxygen function, and


their halogenated, sulphonated,
nitrated or nitrosated


derivatives(CAMPHOR )


20.48 China 93.82 2.14 1.98 5


36 291470 Ketones and Quinones, whether or
not with other oxygen function, and


their halogenated, sulphonated,
nitrated or nitrosated


derivatives(HALGNTD,SULPHNTD,
NITRTD/NITROSTD DRVTVS OF


KETOKES AND QUINONES )


1.08 European
Union


41.95 24.99 9.77 5


37 291524 Saturated acyclic monocarboxylic
acids and their anhydrides, halides,


peroxides and peroxyacids; their
halogenated, sulphonated, nitrated


or nitrosated derivatives(ACETIC
ANHYDRIDE )


30.77 India 40.11 1.20 1.20 10


38 291639 Unsaturated acyclic monocarboxylic
acids, cyclic monocarboxylic acids,
their anhydrides, halides, peroxides
and peroxyacids; their halogenated,


sulphonated, nitrated or nitrosated
derivatives(OTHR ARMTC


MONOCRBOXYLC ACDS,THR
ANHYDRDS


HALIDES,PEROXIDES,PEROXYA
CIDS & THR DRVTVS )


74.89 European
Union


43.66 15.21 7.77 12 SL


39 291719 Polycarboxylic acids, their
anhydrides, halides, peroxides and


peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated


derivatives(OTHR ACYLC
PLYCRBOXYLC ACDS THR


ANHYDRDS


5.15 India 32.73 1.76 1.76 5




125


HALIDES,PEROXIDES,PEROXYA
CDS & THR DRVTVS )


40 292111 Amine function
compounds(MTHYLAMINE DI-OR
TRIMTHYL AMINE & THR SLTS )


2.22 India 96.34 3.36 3.36 5


41 292119 Amine function compounds(OTHR
ACYCLIC MONOAMINES & THEIR
DEVIVATIVES SALTS THEREOF )


10.37 European
Union


60.07 2.99 2.76 5


42 292121 Amine function
compounds(ETHYLENEDIAMINE


AND ITS SALTS )


84.80 China 99.34 2.15 1.57 5


43 292130 Amine function
compounds(CYCLANIC


CYCLENIC/CYCLOTRPNC MONO-
OR POLYAMINS & THR DRVTVS;


SLTS THEREOF )


22.44 China 47.94 9.03 6.95 5


44 292143 Amine function
compounds(TOLUIDINES AND


THEIR DRVTVS SLTS THEREOF )


2.16 China 67.37 3.35 2.60 5


45 292149 Amine function compounds(OTHR
ARMTC MONO AMNS & THR


DRVTVS AND SLTS )


30.15 China 67.88 4.99 3.84 5


46 292429 Carboxyamide-function compounds;
amide-function compounds of
carbonic acid(OTHR CYCLC


AMIDES(INCL CYCLC
CRBAMATES) & THEIR
DERIVATIVES & SALTS


THEREOF )


71.06 China 56.61 5.20 4.94 9 SL


47 293331 Heterocyclic compounds with
nitrogen hetero-atom(s)


only(PYRIDINE AND ITS SALTS )


0.27 India 63.93 5.23 5.23 5


48 293339 Heterocyclic compounds with
nitrogen hetero-atom(s) only(OTHR


CMPNDS CNTNG AN UNFUSED
PYRDN RING(W/N HYDRGNTD)


26.48 European
Union


56.80 54.99 20.16 13.09 8




126


IN THE STRUCTURE )


49 293500 Sulphonamides(SULPHONAMIDES
)


17.93 European
Union


46.78 146.84 57.96 8.91 14 SL


50 320300 Colouring matter of vegetable or
animal origin (including dyeing
extracts but excluding animal


black), whether or not chemically
defined; preparations as specified in


Note 3 to this Chapter based on
colouring matter of vegetable or


animal origin(COLRNG MATR OF
VEGTBL/ANML ORGN(INCL
DYNG EXTRCT EXCL ANML
BLCK) W/N CMCLY DFND )


52.12 India 83.99 0.95 0.95 23


51 320412 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(ACID DYS W/N


PREMETALSD & PRPTNS BASED
THERON MORDNT DYS &
PRPTNS BASED THRON )


6.38 India 50.33 4.40 4.40 15 SL


52 320413 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(BASIC DYES AND PRE
PARATIONS BASED THEREON )


17.09 China 48.58 4.39 3.69 5


53 320416 Synthetic organic coloring matter
whether or not chemically defined;


24.50 Korea,
Rep.


30.87 4.69 3.80 15 SL




127


preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(REACTIVE DYS &


PREPTNS BASED THEREON )


54 320417 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(PIGMENTS & PREPTNS


BASED THEREON )


8.32 China 47.38 5.11 6.20 3.14 15 SL


55 320490 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(OTHR SYNTHETIC


ORGANIC COLORNG MATTER )


2.20 China 48.34 5.20 4.37 20 SL


56 320649 Other colouring matter;
Preparations as specified in Note 3
to this Chapter, other than those of


Headings3203,3204 or 3205;
Inorganic products of a kind used
as luminophores, whether or not


chemically defined(OTHR COLRNG
MATR AND OTHR PRPTNS )


21.72 European
Union


24.87 4.81 1.64 0.56 10


57 340219 Organic surface-active agents
(other than soap), surface-active


preparations, washing preparations
(including auxiliary washing


37.10 China 58.96 1.30 1.16 1.26 10




128


preparations) and cleaning
preparations, whether or not


containing soap, other than those of
Heading 3401(OTHR ORNGC


SRFCE-ACTV AGNTS W/N FOR
RTL SL )


58 340311 Lubricating preparations (including
cutting-oil preparations, bolt or nut


release preparations, anti-rust or
anti-corrosion preparations and


mould release preparations, based
on lubricants) and preparations of a


kind used for the oil or grease
treatment o(PRPNS FOR THE


TRTMNT OF TXTL MATRLS
LEATHER FURSKINS/OTHER


MATERIALS CONTNG
PETROLIUM OILS/OIL OBTND


FROM BITMNS MNRLS )


284.49 European
Union


54.51 1.94 1.35 20 SL


59 350510 Dextrins and other modified
starches (for example,


pregelatinised or esterified
starches); glues based on starches,


or on dextrins or other modified
starches(DEXTRINS & OTHER


MODIFIED STARCHES )


21.01 European
Union


46.84 1.06 0.66 17 SL


60 380991 Finishing agents, dye carriers to
accelerate the dyeing or fixing of


dye-stuffs and other products and
preparations (for example,


dressings and mordants), of a kind
used in the textile, paper, leather or


like industries, not elsewhere
specified or include(PRPNS USD IN


TXTL INDUSTRY )


121.31 European
Union


44.60 2.59 1.93 1.58 15 SL


61 381512 Reaction initiators, reaction
accelerators and catalytic


35.68 United
States


54.99 48.87 24.52 5




129


preparations, not elsewhere
specified or included(SUPPRTD


CATALYSTS WTH PRCUS
MTL/ITS CMPNDS )


62 382490 Prepared binders for foundry
moulds or cores; chemical products
and preparations of the chemical or


allied industries (including those
consisting of mixtures of natural


products), not elsewhere specified
or included(CHEMICAL PRODCTS


NES )


107.19 European
Union


64.37 2.97 1.19 8


63 690100 Bricks, blocks, tiles and other
ceramic goods, of siliceous fossil


meals (for example, kieselguhr,
tripolite or diatomite or of similar


siliceous earths(BRICKS,BLOCKS
ETC OF SILICEOUS FOSSIL


MEAL(KIESELGUHR ETC)/OF
SMLR SILICEOUS EARTHS )


16.27 China 71.46 0.22 0.58 0.10 25


64 250300 Sulphur of all kinds, other than sub-
limited sulphur, precipated sulphur


and collodial sulphur(SULPHUR OF
ALL KNDS OTHR THN SUBLIMED


SULPHUR PCPTD SULPHUR &
COLLOIDAL SULPHUR )


9.14 Saudi
Arabia


52.76 0.09 0.32 5


65 280200 Sulphur, sublimed or precipitated;
colloidal sulphur(SULPHUR


SUBLIMD/PRECPTATED COLLDL
SULPHUR )


10.30 Korea,
Rep.


79.37 0.42 1.11 5


66 281000 Oxides of boron;boric
acids(OXIDES OF BORON BORIC


ACIDS )


80.27 United
States


53.54 0.50 0.96 10


67 281511 Sodium hydroxide (caustic soda);
potassium hydroxide (caustic


potash); peroxides of sodium or


53.08 China 38.67 0.33 0.41 25 SL




130


potassium(SOLID SODIUM
HYDROXIDE (CAUSTIC SODA) )


68 281520 Sodium hydroxide (caustic soda);
potassium hydroxide (caustic


potash); peroxides of sodium or
potassium(POTASSIUM


HYPROXIDE (CAUSTIC POTASH)
)


16.55 Korea,
Rep.


48.51 0.59 0.80 5


69 282410 Lead oxides; red lead and orange
lead(LEAD MONOXIDE


(LITHARGE,MASSICOT) )


40.58 China 85.81 2.34 2.45 5


70 282710 Chlorides, chloride oxides and
chloride hydroxides; bromides and
bromide oxides; iodides and iodide
oxides(AMMONIUM CHLORIDE )


15.17 China 40.44 0.11 0.36 5


71 282731 Chlorides, chloride oxides and
chloride hydroxides; bromides and
bromide oxides; iodides and iodide


oxides(CHLORIDES OF
MAGNESIUM )


37.31 China 74.20 0.11 0.40 5


72 283110 Dithionites and
sulphoxylates(DITHONITES AND


SULPHOXYLATES OF SODIUM )


86.51 China 77.74 0.69 1.42 5


73 283210 Sulphites; thiosulphates(SODIUM
SULPHITE )


71.15 Thailand 48.08 0.35 0.89 5


74 283311 Sulphates; alums; peroxosulphates
(persulphates)(DISODIUM


SULPHATE )


379.05 China 98.75 0.07 0.15 15


75 283319 Sulphates; alums; peroxosulphates
(persulphates)(OTHER SODIUM


SULPHATES )


15.64 China 40.01 0.17 0.25 10


76 283410 Nitrites; nitrates(NITRITES ) 15.10 China 64.79 0.33 0.72 5


77 283525 Phosphinates (hypophosphites),
phosphonates (phosphites),


phosphates and polyphosphates
whether or not chemically


242.68 China 94.27 0.32 1.19 5




131


defined(CALCIUM
HYDROGENORTHO PHOSPHATE


("DICALCIUM PHOSPHATE") )


78 283529 Phosphinates (hypophosphites),
phosphonates (phosphites),


phosphates and polyphosphates
whether or not chemically


defined(OTHER PHOSPHATES )


63.67 Saudi
Arabia


59.48 0.70 2.05 5


79 283650 Carbonates; peroxocarbonates
(percarbonates); commercial


ammonium carbonate containing
ammonium carbamate(CALCIUM


CARBONATE )


52.38 Jordan 29.82 0.08 0.32 10


80 283699 Carbonates; peroxocarbonates
(percarbonates); commercial


ammonium carbonate containing
ammonium carbamate(OTHER


CARBONATES
PERCARBONATES )


227.78 Kenya 55.12 0.18 1.37 5


81 284290 Other salts of inorganic acids or
peroxoacids,(including


aluminosilicates whether or not
chemically defined), other than


azides(OTHR SALTS OF
INORGANIC


ACIDS/PEROXOACIDS )


17.38 European
Union


56.95 1.54 1.93 5


82 284700 Hydrogen peroxide, whether or not
solidified with urea(HYDROGEN


PEROXIDE W/N SOLIDIFIED
WITH UREA )


2204.48 Korea,
Rep.


43.48 0.39 0.41 5


83 290420 Sulphonated, nitrated or nitrosated
derivatives of hydrocarbons,


whether or not
halogenated(DRVTVS CNTNG


ONLY NITRO/NITROSO GRPS )


9.72 Oman 73.10 1.86 2.60 5


84 290511 Acyclic alcohols and their 123.09 Saudi 91.77 0.22 0.90 5




132


halogenated, sulphonated, nitrated
or nitrosated


derivatives(SATURATED
METHANOL (METHYL ALCOHOL)


)


Arabia


85 290513 Acyclic alcohols and their
halogenated, sulphonated, nitrated


or nitrosated
derivatives(SATURATED BUTAN-


1-OL(N-BUTYL ALCOHOL) )


13.23 Malaysia 87.13 1.39 1.99 5


86 290516 Acyclic alcohols and their
halogenated, sulphonated, nitrated
or nitrosated derivatives(SATRTD
OCTNL(OCTYL ALCHL)& ISMRS


THEREOF )


120.84 Malaysia 98.96 1.55 3.20 5


87 290711 Phenols; phenol-alcohols(PHENOL
(HYDROXYBENZENE) AND ITS


SALTS )


73.92 Korea,
Rep.


52.74 1.31 2.59 5


88 290715 Phenols; phenol-
alcohols(NAPHTHOLS AND THEIR


SALTS )


11.80 China 85.86 2.82 4.35 5


89 290810 Halogenated Derivatives of Phenols
or Phenol-alcohols, Their Salts


9.93 China 81.47 2.67 3.18 5


90 291469 Ketones and Quinones, whether or
not with other oxygen function, and


their halogenated, sulphonated,
nitrated or nitrosated


derivatives(OTHER QUINONES )


33.68 China 88.89 7.79 11.66 5


91 291511 Saturated acyclic monocarboxylic
acids and their anhydrides, halides,


peroxides and peroxyacids; their
halogenated, sulphonated, nitrated
or nitrosated derivatives(FORMIC


ACID )


1048.40 China 81.14 0.61 2.07 25 SL


92 291521 Saturated acyclic monocarboxylic
acids and their anhydrides, halides,


131.82 Malaysia 72.52 0.55 0.89 25 SL




133


peroxides and peroxyacids; their
halogenated, sulphonated, nitrated


or nitrosated derivatives(ACETIC
ACID )


93 291522 Sodium Acetate 11.45 Taiwan,
China


100.00 0.38 0.50 5


94 291539 Saturated acyclic monocarboxylic
acids and their anhydrides, halides,


peroxides and peroxyacids; their
halogenated, sulphonated, nitrated


or nitrosated derivatives(OTHER
ESTERS OF ACETIC ACID )


6.79 Japan 35.51 3.38 3.68 5


95 291590 Saturated acyclic monocarboxylic
acids and their anhydrides, halides,


peroxides and peroxyacids; their
halogenated, sulphonated, nitrated


or nitrosated derivatives(OTHR
SATRTD ACYLC,MNOCRBOXYLC


ACDS & THR
ANHYDRDS,HALDS,PEROXDS,PE


ROXY ACIDS & THR HALGNTD
SLPHNTD NITRTD & NITRSTD


DRVTVS )


16.01 Singapore 23.62 4.79 5.20 5


96 291735 Polycarboxylic acids, their
anhydrides, halides, peroxides and


peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated


derivatives(PHTHALIC
ANHYDRIDE )


5.65 Korea,
Rep.


71.90 1.21 1.30 10 SL


97 291739 Polycarboxylic acids, their
anhydrides, halides, peroxides and


peroxyacids; their halogenated,
sulphonated, nitrated or nitrosated


derivatives(OTHR ARMTC
PLYCRBOXYLC ACIDS THR


ANHYDRDS HALIDES
PEROXIDES PEROXYACDS &


18.01 Japan 94.95 2.20 2.58 5




134


THR DRVTVS )


98 291830 Carboxylic acids with additional
oxygen function and their


anhydrides, halides, peroxides and
peroxyacids; their halogenated,


sulphonated, nitrated or nitrosated
derivatives(CRBXYLC ACIDS WTH


ALDHYD/KETONE FNCTN BUT
WTHOUT OTHR OXYGN FNCTN


THR ANHYDRDS HALDS
PEROXIDES PEROXYACIDS &


THR DRVTVS )


45.55 European
Union


38.05 6.47 19.27 5


99 292141 Amine function
compounds(ANILINE AND ITS


SALTS )


0.90 China 61.36 1.29 2.86 5


100 292142 Amine function
compounds(ANILINE


DERIVATIVES AND THEIR SALTS
)


1.75 China 78.34 2.31 2.54 5


101 292145 Amine function compounds(1-
NAPHTHYLAMINE 2-


NAPHTHYLAMINE AND THEIR
DERIVATIVES ; SALTS THEREOF


)


12.91 China 48.80 3.11 5.43 5


102 292151 Amine function compounds(O-M-P-
PHENYLENEDIAMINE


DIAMINOTOLUENE AND THEIR
DRVTVS SALTS THEREOF )


4.82 European
Union


48.82 4.26 4.46 5


103 292211 Oxygen-function amino-
compounds(MONOETHANOLAMIN


E AND ITS SALTS )


60.08 European
Union


67.74 1.79 2.27 5


104 292212 Oxygen-function amino-
compounds(DIETHANOLAMINE


AND ITS SALTS )


83.07 European
Union


84.19 1.48 2.58 5


105 292221 Oxygen-function amino-
compounds(AMNOHYDRXYNPHT


10.12 China 53.86 4.89 5.88 5




135


HLENESLPHNC ACDS & THR
SLTS )


106 292229 Oxygen-function amino-
compounds(OTHR AMINO-


NAPTHLS & OTHR AMINO-PHNLS
THR ETHRS & ESTRS OTHR THN
THOSE CNTNG MORE THN ONE


KND OF EXYGN FNCTN SLTS
THEREOF )


7.47 China 84.49 2.95 6.01 5


107 292700 Diazo-, azo- or azoxy-
compounds(DIAZO-AZO-OR


AZOXY-COMPOUNDS )


50.71 China 57.49 2.05 4.58 5


108 293090 Organo-sulphur
compounds(OTHER ORGANO-


SULPHUR COMPOUNDS )


73.24 China 62.38 2.72 11.36 5


109 293319 Heterocyclic compounds with
nitrogen hetero-atom(s) only(OTHR
HTRCYCLC CMPNDS CNTNG AN


UNFUSED PYRZL RING (W/N
HYDRGNTD) IN THE STRUCTURE


)


6.23 China 66.24 9.31 11.08 5


110 293369 Heterocyclic compounds with
nitrogen hetero-atom(s) only(OTHR


CMPNDS CNTNG AN UNFUSED
TRIAZINE RING(W/N


HYDROGENATED) IN THE
STRUCTURE )


30.89 China 41.07 1.77 16.28 5


111 320411 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(DISPERSE DYES &


PREPARATIONS BASED


83.64 China 77.06 3.31 10.72 5.08 15 SL




136


THEREON )


112 320415 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(VAT DYES (INCL THOSE


USABLE IN THAT STATE AS
PPIGMNTS & PREPRATIONS


BASED THEREON )


42.80 European
Union


48.02 5.11 15.93 5


113 320419 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(OTHR INCL MIXR OF


COLRNG MATR OF TWO OR
MORE OF SUB-HDNG 320411 TO


320419 )


13.79 China 61.35 1.72 5.71 5


114 320420 Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as


fluorescent brightening agens or as
luminoph(SYNTHETIC ORGANIC


PRDCTS OF A KIND USED AS
FLUORESCENT BRIGHTENING


AGENTS )


6.16 China 54.46 1.99 2.78 20 SL


115 380210 Activated carbon; activated natural
mineral products; animal black,


3.85 China 39.74 0.77 1.08 1.23 10




137


including spent animal
black(ACTIVATED CARBON )


116 380400 Residual lyes for the manufacture of
wood pulp, whether or not


concentrated, desugared or
chemically treated, including lignin


sulphonates, but excluding tall oil of
Heading 3803(RSDUL LYES FROM


MNFCTR OF WOOD PULP-W/N
CNCNTRTD,DESUGRD/CHMCLY


TRTD,INCL LIGNIN SLPHNTS-
BUT EXCL TALL OIL OF HDG


3803 )


355.19 Russian
Federatio


n


72.02 0.14 1.28 5


117 790310 Zinc dust, powders and flakes(ZINC
DUST )


2.79 South
Africa


74.79 4.18 4.24 5













138


TABLE A.4: Export Unit Values of Inputs Identified for Imports in Potential Supply Chains for Sri Lanka



S.No. Tariff line Description Share


of Sri
Lanka's
Global
Imports
to South
Asia's
Global
Exports
(percent
age)


Top Exporter
to Sri Lanka
in 2007


Share of
top
exporter
in Sri
Lanka's
Global
imports
(2007)
(percent
age)


Top Exporter
Export unit
value


India's
Export
unit
value


Pakist
an's
Expor
t unit
value


Banglad
esh's
Export
unit
value


Sri
Lanka's
Tariff
2007


Sensitive
list


1 520100


Cotton, not carded or
combed(COTTON, NOT CARDED
OR COMBED ) 0.23


United
States 82.13 1.41 1.33 1.11 1.30 0.0


2 520511


Cotton yarn (other than sewing
thread), containing 85 per cent or
more by weight of cotton, not put
up for retail sale (SNGL YRN OF
UNCMBD FBRS MEASURNG
714.29 DCTX/MORE(NT
EXCDNG 14 MTRC NO) ) 3.72 India 96.19 2.71 2.71 2.00 2.19 0.0


3 520811


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRCS CONTNG>=85 per cent
BY WT OF COTN, UNBLEACHED
PLAIN WEAVE WEIGING <=100
G/M2 ) 6.67 India 84.90 14.42 14.42 14.42 3.98 0.0


4 520812


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRCS CONTNG >=85 per cent
BY WT OF COTN UNBLEACHD
PLAINWEAVE WEIGING > 100 7.68 Thailand 29.70 4.35 3.48 3.48 3.08 0.0




139


G/M2 )


5 520813


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG>=85 per cent
BY WT OF COTN UNBLCHD 3/4
THRED TWILL INCL CROSS
TWILL WEIGHNG NOT MORE
THN 200 GM PER SQM ) 3.10 Pakistan 79.58 4.80 4.80 4.80 2.52 0.0


6 520819


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(OTHER
COTN FABRICS UNBLEACHED
CONTNG 85 per cent OR MORE
BY WT OF COTN WEING<=200
GM PERSQM ) 4.92 Pakistan 84.53 8.69 8.69 8.69 2.99 0.0


7 520821


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(BLECHD
PLAIN WEAVE WEIGNG <=100
G/M2 ) 8.83 China 43.10 18.12 18.12 18.12 8.19 0.0


8 520822


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG >=85 per cent
BY WT OF COTTON BLEACHD
PLAIN WEAVE WEIGNG > 100
G/M2 ) 21.02 China 50.78 8.81 8.81 8.81 12.35 0.0


9 520823


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN 19.44 China 67.42 14.41 14.41 14.41 0.0




140


FABRICS CONTNG>=85 per cent
BY WT OF COTN BLECHD,3/4
THREAD TWILL INCL CROSS
TWILL WEIGHING NOT MORE
THN 200 GM PER SQM )


10 520829


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(OTHER
COTTON FABRICS,BLEACHED
CONTNG 85 per cent OR MORE
BY WT OF COTTON WEING NOT
MORE THAN 200 GM PER SQM ) 13.98


European
Union 52.70 30.49 19.88 19.88 2.38 0.0


11 520831


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG >=85 per
centBY WT OF COTN DYED
PLAIN WEAVE WEIGNG<=100
G/M2 ) 22.31 China 42.32 22.70 22.70 22.70 0.0


12 520832


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG>=85 per cent
BY WT OF COTN DYED,PLAIN
WEAVE WEIGHNG >=100 G/M2 ) 172.73 China 40.25 11.87 11.87 11.87 9.34 0.0


13 520833


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG>=85 per cent
BY WT OF COTN, DYED,3/4
THRED TWILL INCL CROSS
TWILL, WEIGHING NOT MORE
THN 200 G/M2 ) 210.13


Hong
Kong,
China 68.11 7.05 15.25 15.25 4.82 0.0




141


14 520839


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(OTHER
COTON FABRICS,DYED
CONTNG 85 per cent OR MORE
BY WT OF COTTON WEIGNG
NOT MORE THN 200 GM PER
SQM ) 29.15 Pakistan 56.98 17.04 17.04 17.04 3.55 0.0


15 520841


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG >=85 per cent
BY WT OF COTN PLAIN WEAVE,
WEIGHING NOT MORE THAN
100 GMPER SQM OF YARN OF
DIFFERENT COLOURS ) 38.08 India 54.68 42.63 42.63 42.63 5.69 0.0


16 520842


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG >=85 per cent
BY WT OF COTN PLAIN WEAVE,
WEIGHING MORE THAN 100 GM
PER SQM OF YARN OF
DIFFERENT COLOURS ) 344.57 China 66.03 22.14 22.14 22.14 22.14 0.0


17 520843


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS COMTMG>85 per cent
BY WT OF COTN 3-THREAD/4-
THREAD TWILL IMCL CROSS
TWILL OF YARN OF DIFF CLRS
WEIGHNG <=200 GSM ) 74.68 China 42.74 31.85 31.85 31.85 0.0




142


18 520849


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(OTHER
COTN FABRICS OF YARN OF
DIFFERENT COLOUR WITH
COTN CONTENT MORE THN 85
per cent WEIGHNG NOT MORE
THN 200 GM PER SQM ) 63.61 China 70.62 25.09 25.09 25.09 9.58 0.0


19 520851


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG >=85 per cent
BY WT OF COTN PRINTED
PLAIN WEAVE WEIGNG <=100 G
PER SQM ) 11.02 India 50.27 32.04 32.04 32.04 0.0


20 520852


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG >=85 per cent
BY WT COTN PRINTED,PLAIN
WEAVE WEIGHING >100 G/M2 ) 32.33 China 38.68 11.70 11.70 11.70 0.0


21 520853


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(COTN
FABRICS CONTNG >=85 per cent
BY WT OF COTN PRINTED 3/4-
THREAD TWILL,INCL CROSS
TWILL WEITHING NOT MORE
THN 200 GM PER SQM ) 10.21 Pakistan 92.47 12.19 12.19 12.19


22 520859


Woven fabrics of cotton,
containing 85 per cent or more by
weight of cotton, weighing not
more than 200 g/m2(OTHR COTN 6.58 Pakistan 46.91 14.63 14.63 14.63 0.0




143


FABRICS CONTNG>=85 per cent
BY WT OF
COTN,PRNTD,WEIGHING 200
G/M2 )


23 540233


Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic
monofilament of less than 67
decitex(TEXTURED YARN OF
POLYESTERS ) 5.79


Taiwan,
China 26.03 2.04 1.86 2.23 0.0


24 540269


Synthetic filament yarn (other than
sewing thread), not put up for retail
sale, including synthetic
monofilament of less than 67
decitex(OTHER
YARN,MULTIPLE(FOLDED)OR
CABLED ) 16.10 China 66.77 4.20 3.19 3.13 0.0


25 550320


Synthetic staple fibres, not carded,
combed or otherwise processed
for spinning(STAPLE FIBRES OF
POLYESTER NT CRD/CMBD ) 1.03


Taiwan,
China 44.85 1.44 1.31 1.34 0.0


26 550953


Yarn (other than sewing thread) of
synthetic staple fibres, not put up
for retail sale(OTHER YARN OF
POLYSTER STAPLE FIBRS
MIXED MAINLY/SOLELY WITH
COTTON ) 3.77 Thailand 29.72 2.37 2.35 2.16 0.0


27 560410


Rubber thread & cord, textile
covered; textile yarn, and strip and
the like of heading 54 04 or 54 05,
impregnated, coated, covered or
sheathed with rubber or
plastics(RUBBER THREAD
ANDCORD,TEXTILE COVERED ) 581.97


Taiwan,
China 39.32 6.17 4.42 0.0


28 540220
Synthetic filament yarn (other than
sewing thread), not put up for retail 14.51


Korea,
Rep. 35.16 2.24 3.09 0.0




144


sale, including synthetic
monofilament of less than 67
decitex(HIGH TENACITY YARN
OF POLYESTERS )


29 310210


Mineral or chemical fertilisers,
nitrogenous(UREA WHETHER OR
NOT IN AQUEOUS SOLUTION ) 51.87 Qatar 42.76 0.31 1.02 0.20 2.5


30 320411


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or
as luminoph(DISPERSE DYES &
PREPARATIONS BASED
THEREON ) 7.11 Singapore 69.24 8.61 5.08 10.72 0.0


31 320415


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or
as luminoph(VAT DYES (INCL
THOSE USABLE IN THAT STATE
AS PPIGMNTS & PREPRATIONS
BASED THEREON ) 1.76 India 54.22 15.93 15.93 0.0


32 320416


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or
as luminoph(REACTIVE DYS &
PREPTNS BASED THEREON ) 4.07 Singapore 58.30 8.04 3.80 3.20 0.0




145


33 320419


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or
as luminoph(OTHR INCL MIXR
OF COLRNG MATR OF TWO OR
MORE OF SUB-HDNG 320411
TO 320419 ) 1.47 India 48.54 5.71 5.71 0.0


34 320420


Synthetic organic coloring matter
whether or not chemically defined;
preparations as specified in Note 3
to this Chapter based on synthetic
organic colouring matter; synthetic
organic products of a kind used as
fluorescent brightening agens or
as luminoph(SYNTHETIC
ORGANIC PRDCTS OF A KIND
USED AS FLUORESCENT
BRIGHTENING AGENTS ) 2.17 Singapore 63.60 7.21 2.78 1.43 0.0


35 380991


Finishing agents, dye carriers to
accelerate the dyeing or fixing of
dye-stuffs and other products and
preparations (for example,
dressings and mordants), of a kind
used in the textile, paper, leather
or like industries, not elsewhere
specified or include(PRPNS USD
IN TXTL INDUSTRY ) 63.59


European
Union 29.60 2.59 1.93 1.85 2.5


36 740400
Copper waste and scrap(COPPER
WASTE & SCRAP ) 40.11 Morocco 52.03 6.25 5.81 1.08 5.42 2.5









146

















Login