At the State committee meeting of the Tamil Nadu Visaithari Thozhilalar Sammelanam held at Pallipalayam, on Thursday, a resolution was adopted to improve the financial position of the societies and the powerloom weavers. They has urged the state government to take steps for setting up textile parks in all the districts as it will immensely benefit in getting reasonable price for the textile and boost the sale of textiles manufactured by power loom societies. The textile parks will enable in bringing the buyers within and outside the State under one roof.
Another resolution said that the power loom industry was undergoing a crisis because of the rise in the production cost and drop in the exports. The power looms in Tirupur, Coimbatore, and Erode districts were not functioning for the last few months. This has badly hit the livelihood of a large number of power loom workers. The State Government should take immediate steps to protect the industry and the interest of the workers involved in it.
Due to the availability of foreign cotton and yarn, the local traders could not market theirs. This has led to a glut in the cotton and yarn market, the meeting said and hence urged the Centre to suspend the import of cotton and yarn with immediate effect. The meeting demanded the government to fix a minimum wages of Rs. 15,000 a month for the power loom workers. It also put forward its demand to the State Government to allot solar power backed green houses to the power loom workers too.
SOURCE: Yarns&Fibers
Reflecting a slowing economy, India's growth rate declined to 7 per cent in the first quarter of 2015-16 even as the core sector output sputtered to a three-month low of 1.1 per cent in July. The fiscal deficit hitting almost 70 per cent of the Budget Estimate deepened the gloom. Yet, India remained a rare bright spot in the world economy, doing better than trouble spots such as Brazil, Russia and South Africa. The first quarter GDP growth was higher than the 6.7 per cent recorded in the same quarter last fiscal but lower than the 7.5 per cent recorded in January-March quarter this year.
Govt upbeat
The Modi-led Government is hopeful that the economy will grow near the 8 per cent level for the entire fiscal, although the Reserve Bank of India and international rating agencies such as Moody’s do not share this optimism. Despite ample evidence of stress in the industrial sector and a disappointing agricultural performance, the economy’s growth came on the back of a strong performance in the construction and services sector, official data released by CSO on Monday showed. The new way of measuring GDP also helped despite gross value added (GVA) for the quarter under review coming in lower at 7.1 per cent against 7.4 per cent in the same quarter last year. The robust 17 per cent increase in tax collections in April-June quarter and a tight lid on subsidy helped boost the overall growth performance.
The Central Statistics Office had in February this year changed the way GDP is measured by adopting the concept of GVA and expanding the universe of companies taken up for calculation of economic growth. To compute the GDP, taxes are added to GVA and subsidies are netted out. For investors worried about emerging market economies, the latest growth number should provide some cheer. This is especially so when seen in the backdrop of fears around the cooling Chinese economy and the related global stock market turbulence witnessed last week. Monday also saw the government release two important data sets — core sector performance for July and fiscal deficit data for the April-July period.
Other data
The fiscal deficit for April-July 2015 stood at Rs. 3.85-lakh crore, or 69.3 per cent of the Budget Estimate. In the first four months last fiscal, the fiscal deficit level was at 61.2 per cent of the Budget Estimate. The eight core industries’ output growth for July came in at 1.1 per cent, much lower than 3 per cent growth seen in June this year and 4.1 per cent in July last year. The July output performance was weighed down by a weak showing in the coal and steel sectors, although fertilisers and electricity bucked the trend to record robust growth. The eight core industries — coal, cement, steel, refinery products, electricity, crude oil, natural gas and fertilisers — account for 38 per cent of the Index of Industrial Production.
SOURCE: The Hindu Business Line
The Chinese economy is likely to replace the United States of America as the world's superpower by 2030, said Arvind Subramanian, the country's chief economic advisor, here on Monday. He said the recent slowdown in the Chinese economy was unlikely to disturb that country's economic ascendancy."I am not surprised that China is slowing down… the richer you are the slower you grow," he said. Subramanian was speaking at a lecture titled 'Eclipse: Living in the shadows of China's economic dominance', organised by the Institute of Chinese Studies. He reasoned that China's rich resources, political will and a deep desire for stability would ensure that the Chinese economy returns to stability.
Earlier last month, the Chinese stock-markets registered sharp fall after the Chinese government devalued its currency, following slowdown in exports and low gross domestic product or GDP growth. Subramanian argued even if China's economy grew at five per cent annually, it would still overtake the US as the world's dominant power.Subramanian saw the genesis of the present slowdown among three factors: First, he argued that the slowdown could be due to the fear of a bubble in the Chinese economy due to 'a real build-up in real-estate and credit sector'. However, he said the Chinese had enough foreign reserves to contain any bubble burst.
Second, he argued the fall in growth could also be explained as a result of 'reshaping' of the Chinese economy: A shift from manufacturing towards services, and from investment to consumption. Lastly, Subramanian said slowdown was likely, if the Chinese government was to reform its political system to make it more liberal.The CEA also made a strong pitch for renminbi's entry into the International Monetary Fund's Special Drawing Rights (SDR). "We have an unambiguous interest in the renminbi becoming a part of the international basket… Because as the Chinese currency becomes more international, China will have to open up its economy and it will be able to less manipulate its currency. So we have a strong stake in China's country getting internationalised."
SOURCE: The Business Standard
A business forum for opening up new opportunities for trade and commerce between India and the Middle East will be held here in November, it has been announced. The Arab-India Economic Forum (AIEF) would be organised in strategic partnership with the Consulate General of India in Dubai on November 16 and 17. AIEF hopes to focus on growth sectors, address policy frameworks and guidelines to attract Arab investors and industrialists in addition to being a strong platform for Indian businesses aiming to explore the potential of the Middle East market, the UAE's state-run WAM news agency said. The Forum will also bring together political and business leaders from the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, Jordan, Egypt and India to discuss strategies and solutions for investor challenges in India due to taxation and policy related issues as well as ways the government can assist in creating a conducive business environment for investors.
India has launched various programmes that seek to help it develop through all-inclusive growth, technology, innovation, good governance and people's participation. AIEF is expected to provide a critical platform for introducing India under the Prime Minister Narendra Modi government to the Middle-East community, highlighting the latest trends and developments in renewable energy, innovation and digital India.
SOURCE: The Economic Times
To speed up the conclusion of the Comprehensive Economic Cooperation Agreement, India and Australia will hold another round of negotiations on September 21. Both are yet to reach a consensus on agricultural issues and services trade.After the meeting of the chief negotiators, commerce and industries minister Nirmala Sitharaman is expected to hold a round of negotiations with counterpart Andrew Robb in New Delhi at a later date.Both sides have been meeting almost every month to further the talks started in 2011, based on the mandate given by prime ministers Narendra Modi and Tony Abbott.
According to India, it will not be able to give Australia much access to its dairy market.Australia has demanded duty-free access to India’s dairy market.It has also asked greater access to Indian markets for its wine and meat products.India has been demanding greater access for its professionals into Australia. This requires a relaxed business visa regime and signing of mutual recognition agreements (MRAs).
Australia has recently signed a free trade agreement with China, where it has offered massive rate reduction on a wide range of products.It believes it can “offer more” to India if the latter also agrees to “open up,” according to a senior Australian official.Bilateral trade between Australia and India stands at around $15 billion. However, Australia-China trade has reached $160 billion last year.Australia has the largest pool of funds at over $2.6 trillion under management in Asia which it intends to invest around the world. India is also seeking a portion of this, which is the third largest worldwide.
A mutually beneficial CECA has the potential to facilitate the flow of this money.According to Robb, concluding the CECA with India by the set deadline of December 2015 is presently his “number one priority.” Both sides have also vowed to achieve bilateral trade worth $40 billion in goods by 2020.
SOURCE: The Business Standard
Australia has slashed duty on Pakistani products mainly textile products by 50 per cent - from 10 percent to five percent - in response to concerted efforts of incumbent government especially the Commerce Ministry. This was disclosed by Commerce Minister Engineer Khurram Dastgir Khan in an exclusive chat with this correspondent at his office in the Commerce Ministry after a meeting with the Australian High Commissioner. "Pakistan's textile, clothing and footwear will be the beneficiary of the reduction in the duty by the Australian Government," he added.
According to the Commerce Minister, duty has been slashed on 226 tariff lines of which only eight are non-textile items and remaining 218 are related to textile sector - 63 are home textile. "Australia has slashed duty on items of Pakistan's interests and expertise. We have conveyed thankfulness on behalf of Government of Pakistan," he continued. Replying to a question, Commerce Minister said the Commerce Ministry would now chalk out a plan aimed at facilitating Pakistani textile sector entrepreneurs with Australian buyers. "We are preparing our plans prior to the visit of Prime Minister Nawaz Sharif to Australia early next year," he maintained.
Commerce Minister further stated that an Australian trade mission will visit Pakistan in October 2015 to review the current state of the bilateral trade relationship. Australia supports Commerce Ministry particularly through the World Bank on regional connectively issues especially Pakistan's relationship with Afghanistan and Central Asia. "We have requested Australia to also include Iran in regional connectivity agenda to which they were quite positive," he further said. Trade between Pakistan and Australia was roughly around $550 million in 2013-14 and trade balance is almost same for the two countries. Pakistan is exporting textile, leather, cotton etc. Australia has also allowed import of Pakistani mangoes. Presently, Pakistan is seeking Australian government's co-operation in agriculture and to facilitate access of Pakistani dates and Kinnows to the Australian market.
SOURCE: The Business Recorder
Pakistan's Commerce Minister Khurram Dastgir Khan has claimed that his government is making some serious and well-planned efforts to increase value-addition in the textile sector to attract more shares in the regional and international markets, according to media reports in the country. Addressing the inaugural ceremony of the Pakistan Readymade Garments Manufacturers and Exporters Association's (PRGMEA) three-day international Textile Asia Exhibition at Lahore Expo, said while exports of value-added garment registered a significant growth, exports of low-valued textile products, like cotton, yarn and gray fabric declined. “Pakistan's exports of readymade garments grew 10.05 per cent to $2.101 billion in 2014-15 from $1.909 billion, despite the internal and external challenges,” he said. “I want every staple length of our cotton and yarn be transformed into cloth and garments for exports. Value addition is needed in entire chain of textile sector. It is blessing in disguise that low value textile products export has decreased, giving us opportunity to convert it into high value,” he said.
PRGMEA central chairman Ijaz Khokhar said the exhibition is aimed at focusing the immense buying and selling potential of textile and garment machinery, accessories, raw material supplies, chemicals and allied services under one roof. PRGMEA vice chairman Malik Naseer reiterated that billions of rupees of textile exporters are blocked in sales tax and customs rebate and other schemes introduced in the textile policy for 2009-14.
SOURCE: Fibre2fashion
The generalised system of preference (GSP) is a preferential tariff system which provides for a formal system of exemption from the more general rules of the World Trade Organisation (WTO). Specifically, it's a system of exemption from the most-favoured-nation (MFN) principle that obliges WTO member-countries to treat the imports of all other WTO members in the way they treat the imports of their 'most-favoured' trading partner. In essence, MFN requires WTO member-countries to treat imports coming from all other members equally, that is, by imposing equal tariffs on them, etc. GSP exempts WTO member-countries from MFN status for the purpose of lowering tariffs for the least developed countries (LDCs), without also lowering tariffs for the rich countries. The GSP was established to promote exports of low-income countries to industrialised ones in order to support their economic growth and development. However, the designs of these schemes are rather complex and the aspect of GSP has been found to be controversial.
US GSP promotes sustainable development in beneficiary countries by helping these to increase and diversify their trade with the United States. The programme provides additional benefits for products from least developed countries. According to a US Chamber of Commerce study, moving GSP imports from the docks to US consumers, farmers, and manufacturers supports tens of thousands of jobs in the US. It also boosts American competitiveness by reducing costs of imported inputs used by US companies to manufacture goods in the country. GSP is especially important to US small businesses, many of which rely on the programme's duty savings to be competitive. In addition to promoting economic opportunity in developing countries, the GSP programme also supports progress by beneficiary countries in affording workers' rights to their people, in enforcing intellectual property rights, and in supporting the rule of law.
The United States instituted GSP on January 01, 1976 as a means of promoting growth in the developing countries through preferential access of their exports to US market. It provides for duty-free entry into the US for some 5,000 products of 122 countries. The value of GSP exports stood at around $20 billion in 2012. The largest beneficiaries are India, Thailand, Brazil and Indonesia. The US administration has renewed the GSP facility for the developing and least developed countries of the world after it suspended it for the last two years on expiry of the earlier legislation. But surprisingly, Bangladesh is the only country along with Russia which was excluded from the list of 122 beneficiary countries for duty-free market access of their exports to the USA when the announcement of its renewal hit the global capitals. The US Congress recently made new legislation for GSP facility and the Obama administration has put it back on track on July 29 with retrospective effect from the date of suspension two years ago.
Bangladesh was entitled to enjoying GSP facility from 1980 although its major exports to the USA, including ready-made garments, remained excluded from the benefit, denying the real business opportunity that Bangladesh could harvest under the concessional trade access. The US suspended GSP facility to Bangladesh after the Rana Plaza disaster in 2013. The exclusion of Bangladesh resulted mainly from its apparent failure to fulfill all of the 16 conditions that the Obama administration had laid out when it revoked the privilege two years ago on grounds of poor workplace safety and labour rights The beneficiaries of the new scheme include all South Asian countries such as India, Pakistan, Nepal, Sri Lanka, Bhutan and Afghanistan. Only Bangladesh remains excluded. It would pour in a damper on the country's attempts to expand export basket and reduce its reliance on garments. Suspending Bangladesh from the GSP programme would also increase US duties on an array of products the country exports to the United States, such as tobacco, sporting equipment, porcelain china, plastic products and a small quantity of textile products.
The negative impact of the US GSP removal is speculated to be a warning for future trade between Bangladesh and the United States including the prospect of retaining the MFN status which benefits Bangladesh's economic growth. According to the Bangladesh Economic Review (2014), during the last three years there was no significant foreign direct investment inflow from the US to Bangladesh. In such circumstances, the repeated attempts of the Bangladesh government to regain the US GSP are crucial for the country's continued economic growth.
Bangladesh cares deeply about retaining GSP benefit because of the country's extremely narrow and fragile export basket, link between trade performance and human development and social stability, and most importantly seeking negotiation as an early-stage industrialising nation. Bangladesh's export sector is extremely narrow in terms of both size of market and diversity of export items. The US is Bangladesh's single largest export destination that accounts for more than a quarter of Bangladesh's exports. More than 95 per cent of the export earnings from the US, worth more than$ 4.5 billion, come from just one single item which is garment. Given this excessive dependence on one single item, Bangladesh remains extremely serious about adding new items to its export basket. Herein lies the essentiality and significance of the US GSP.
More importantly, Bangladesh's image as a trade partner of the US is tainted. This may discourage US and other foreign investors, new and old, from venturing into Bangladesh, which may have a moderate effect on the prospect of future export growth of the country, particularly in US market. The biggest short-run fear for the country is a similar action adopted by the European Union (EU). The EU had previously threatened to remove preferential access of Bangladeshi RMG products in EU market if the government did not take measures to improve the working condition in factories. Bangladesh RMG export to EU grew to about $11.37 billion as of June 2012. Hence, such an action will be devastating for the country's RMG sector which exported products worth $19 billion dollar in the last fiscal year and employs about 4.5 million people at the bottom of the population pyramid, 80 per cent of whom are women. Thus, there will be increasing pressure on the government to improve working conditions as the EU will be closely observing Bangladesh. Several European importers have already come forward to help the country in improving safety features of RMG factories, which is a good sign for the country. The protection of workers' interest is not just a GSP issue. This is essential for modernising employment practices in Bangladesh in line with good international practices; the convergence of interests with the GSP is a win-win situation.
Some economists advised the government to improve the political-level understanding with the US, avoid games of blaming others, integrated inter-ministerial coordination efforts, direct and continuous contact with the governments of Bangladesh and the US, as they take actions on workers' rights and safety, implementing the commitments and suggestions by the US, the EU and other development partners' action plan, easing obstacles to investment, strengthening negotiation skills and bargaining power and quality of economic diplomacy. The sooner the country fulfils all the conditions, the better it is not only for gaining the GSP but also for ensuring rights of the workers as well as image- building and reputation of Bangladesh.
Looking forward, Bangladesh needs to develop strong policies to improve domestic competitiveness. With highly favourable endowment of labour, Bangladesh has a huge comparative advantage in labour-intensive manufacturing. Focusing on investment, infrastructure, land availability and labour skills is the main policy challenge. Apart from education and training, converting labour to a productive and committed workforce will also require strong social policies to protect the welfare of the workers. This long-term development challenge, rather than access to GSP, provides the imperative for adopting appropriate employment policies for workers.
Bangladesh as a small country cannot influence the political decision of the US. The US GSP is not a political issue; it is an economic and technical issue where Bangladesh's active participation along with good relations with the US is more essential to retain the GSP benefits to become a middle income country by 2021 as soon as possible and without delay.
SOURCE: The Financial Express Bangladesh
Esther Mseteka, Lusaka government says the formation of a national World Trade Organisation (WTO) and Technical Barriers to Trade (TBT) consultative committee will enhance good communication between stakeholders responsible for the implementation of technical regulations, standards and conformity assessments. Ministry of Commerce, Trade and Industry director of industry Tobias Mulimbika said Government is committed to promoting better trade practices which are internationally acceptable. He said this when he officiated at the WTO -TBT national consultative committee workshop last week, which was facilitated by the United States Agency for International Development (USAID) trade hub southern Africa. “I wish to reiterate Government’s commitment to the formation of an effective committee. This will enhance the operations of the WTO-TBT national enquiry point at Zambia Bureau of Standards (ZABS), resulting in making concrete recommendations to Government on matters affecting international trade. “The TBT agreement, therefore, is aimed at ensuring that technical regulations, standards, testing and certification procedures do not create unnecessary obstacles to trade. The deal will help distinguish legitimate standards and technical regulations from protectionist measures,” Mr Mulimbika said. He said Zambia does not have TBT consultative committees which discuss and make recommendations on matters related to international trade such as difficulties faced by small and medium-sized enterprises (SMEs) in exporting their products due to technical regulations in some countries.
Mr Mulimbika said there is need to develop standards that can be applied on a non-discriminatory basis based on relevant international values and guidelines, where appropriate. “In Zambia, we do not have this committee. Other WTO-TBT member states have TBT consultative committees which discuss and make recommendations on matters related to international trade such as difficulties faced by SMEs in exporting their products due to technical regulations in some countries,” he said.
SOURCE: The Daily Mail Zambia
Getting exhibitors on board is always considered a milestone, but at the International Textile Fair, it is a milestone crossed often. ITF have landed a cluster of prominent exhibitors that force you to sit up and take notice, as much at the meritorious line-up as at the regularity of the announcements. As the fair draws closer, the exhibitors –just like the excitement and anticipation- keeps on increasing.
The ITF will be held in Dubai, but its specter will resonate across the globe. With exhibitors hailing from virtually every continent, the fair has truly become a global phenomenon. Now in its third edition, the fair will once again serve as a crossroads for textile companies and fashion houses from around the world. For a roster that already includes the crème de la crème of the textile industry, ITF has been relentless in its pursuit of achieving textile versatility; signing a spate of exhibitors from Central Asia (Lebanon, Singapore) to Oriental colonies (Singapore, Hong Kong). ITF received immediate acknowledgement from the textile community not only in Dubai, but across the world; 96 exhibitors from across five continents stand testimony to that. TEXMAS, the textile merchants group that represents 800 Dubai textile traders, have also been vocal in their support of the ITF.
The omnium-gatherum at the fair is, in itself, a sight to behold. One will find exquisite Italian velvet at one stall, and motif laden Turkish satin at the other. Keynote speakers from London, Dubai, and France will be in attendance at ITF, speaking on topics as diverse as sustainability in fashion (reducing environmental impact of the industry), to the emerging swimwear market in the Middle East. The fair might be just a few weeks away, but that hasn’t hampered companies from rekindling their association with ITF. Chh America Inc., Bombardo S.A, Mass Intimates Pvt. Ltd, E.U Design and 3D Concept International are just a few names from the slew of new exhibitors to be partaking at ITF. The voluminous media coverage of the fair is another highlight of ITF, with media channels across Europe, Asia, and the Australian subcontinent promulgating ITF to innumerable readers across the globe.
ITF provides a fulfilling experience not only for the visitors, but for the exhibitors too. Taroni Silks Co. (Italy) is one of the frequent exhibitors at the ITF, and according to them, rightly so. “We were very happy with our first fair, as we found many interesting new clients and also representation. We decided it was opportune to build on top of that and continue our path to growth in this market.” The media coverage of ITF is just as expansive as the list of exhibitors; with prominent media partners from across the world. NZ Apparel (New Zealand), Expomap (Russia), Eye of Riyadh (Saudi Arabia) are just a few of the media partners that broadcast ITF across continents. As the build-up to the fair gains momentum, it is already discernible that the upcoming edition of ITF, like its predecessors, will be a memorable one.
SOURCE: Yarns&Fibers
