Preferential Trading Agreements entered into by the United States and the European Union with some of their trading partners could pose a major threat to India's textiles exports, government officials said.

"With the signing of PTAs, the tariff advantage shifts in favour of exporters from the partner country, making exports from country like India uncompetitive," sources told PTI.

Although the lifting of quotas in 2005 would give a big push to Indian exports, initially, the situation might not remain the same beyond two-three years as by then PTAs would have created a disparity in tariff levels to India's disadvantage.

"The tariff disadvantage with regard to synthetic garments in the EU was about 10 per cent and 31 per cent in the US," sources said, but added Indian textiles exports were competing very well despite this disadvantage.

However, a country like Turkey, which has a PTA with the EU has already begun to beat India on 'denim'.

They said Indian industry would have to gear up to meet these challenges as more PTAs were scheduled to be signed over the next two-three years.

Some of the CIS (Commonwealth of Independent States) countries are working towards integration with the EU, which will give them advantage over India due to proximity and tariff benefits.