Abstract:
Apparel export industry is the
most significant and dynamic contributor for
Sri Lankan economy. Sri Lanka is among the
top apparel producing countries in the world
relative to its population. Brazil is one of the
countries which is identified as most
important with this trade with Sri Lanka.
This study specially point outs to identify the
opportunities in the Brazil market for Sri
Lanka apparel exports, especially considering
to the HS code 61 and 62 export items. This
study is carried out to verify the requirement
of identifying opportunities in the Brazil
market in Sri Lankan apparel exports.
The required secondary data were extracted
from the ITC calculations based on UN
COMTRADE statistics. Further, HS code 61
and HS code 62 product items were selected
in this study. Descriptive data analysis
method was used in this study. It is found
that the Brazilians perceive international
clothing as very high quality and
sophisticated. The countries like Sri Lanka
who export to Brazil may have to adapt their
clothing selection to the Brazilian culture,
demands and needs. The main competitive
factors were found to be quality, design,
customer service and price. While brand
names still play only a minor role in the
home textile sector. Brazilians are interested
in high quality and are willing to pay higher
prices for such products.
The main barrier for the Sri Lankan apparel
exporters is the high tariff rates imposed by
Brazil. Sri Lanka has also not offered any
tariff preferences on imported products. Our
products are always charged the highest
prevailing tariff rate compared to tariff
applicable for other countries. Sri Lanka
experiences a high tariff rate of 35% for the
products. Sri Lankan products have become
less competitive in Brazil market due to nonexistence
of trade agreements with Brazil.
Hence, it is emphasized that we should work
closely with relevant agencies such as the Sri
Lanka High Commission in Brazil to solve
the prevailing issues related to exports and to
start discussing the possibility of a bilateral
trade agreement with Brazil.
