From the Desk of Chairman

Aqeel_Ahmed

Chairman Column

Revival of global imports

As per latest available data of International Trade Centre, Geneva, the global import of leather, leather products and footwear had increased from USD 189.61 billion in 2017 to USD 199.35 billion in 2018, growing by 5.14%.

Prior to this, the Global import of leather, leather products and footwear had decreased from USD 192.79 billion in 2014 to USD 183.32 billion in 2015 and to USD 179.47 billion in 2016.

Though global imports grew by CAGR of 0.64% only during the five year period from 2014 to 2018, the growth has been 5.14% during 2018 when compared to 2017. This shows the revival of growth in imports, which is a good sign. Hence, even assuming a moderate 2% annual growth, global import of leather, leather products and footwear are expected to reach USD 220.09 billion in 2023.

USA has levied 25% additional tariff on Chinese products (leather goods , leather garments, saddlery items etc.,  under Chapter 42) and also on finished leather . China too has levied additional duty for USA is at different levels of 25% , 20%, 10% and 5%, which is applicable for items including finished leather, leather products and footwear also.

These developments in global trade offers us opportunity not only to strengthen our bilateral trade ties both with USA and China but also achieve our envisaged export growth of 9% to 10% per annum.

Meetings

I had the opportunity to take part in three important meetings convened in New Delhi recently. These include Board of Trade and Council for Trade Promotion and Development, June 6, 2019, New Delhi ; Pre- Budget Consultation meeting, June 11, 2019, New Delhi  and Meeting convened by DGFT, June 18, 2019.

In these meetings, I highlighted the potential for increasing exports of leather, leather products and footwear sector and stated that the sector has the potential to achieve 10% annual growth in exports by enhancing its market share in not only the traditional markets of Europe and USA but also potential markets  In order to achieve the significant growth levels and also protect the domestic industry manufacturing value added products, I requested certain additional support measures like implementing Rebate of State and Central Levies scheme for leather,  leather products and footwear sector , reduction of GST for footwear and inputs used in making footwear, additional support measures to penetrate US market, removal of animal quarantine clearance for all types of finished and crust leathers etc.,

Marketing efforts

In the coming month upto December 2019, CLE will be continuing its marketing campaign. These include organizing BSMs in Chile (Oct. 14-15, 2019), Peru (Oct. 17-18, 2019), India Leather Days, Germany (Nov. 27-28,2019) and BSM in New York (Dec. 4 & 5, 2019) . Besides this, a Reverse Buyer Seller Meet will also be organized in Kolkata during Sept. 27-28, 2019 coinciding with the India Leather & Accessories Fair in Kolkata.  The circular for RBSM, Delhi will be issued to members shortly.

As regards fair participation, CLE will be participating in Shoes and Leather, Vietnam, July 10-12, 2019; Spoga, Cologna, Germany, Sept. 1-3,2019; Mosshoes/MOSPEL Fair, Moscow, Russia, Sept. 10-13, 2019 ; MICAM – The Shoe Event, Italy (Sept. 15-18, 2019) ; Leathertech Bangladesh, Oct. 31- Nov. 2, 2019 and Footwear and Leather Show, Australia, Nov. 12-14, 2019 under Market Access Initiative Scheme (MAIS).

Besides, CLE has will also be participating in Global Village 2019-2020, Dubai (29th October, 2019 to 4th April, 2020) ; Sourcing @ Magic” & the “Foot Sourcing @ Magic” at Las Vegas, USA (August 11-14, 2019) on self – financing basis. Further, CLE is organizing  Visit of Leather Industry Delegation to Ethiopia, Kenya and Uganda ( July 21-27, 2019) and to Guatemala (August 6-7, 2019).

 

With best wishes

P.R. Aqeel Ahmed
Chairman