NATIONAL

• Trade Ministers to meet next week ahead of India-Africa Summit
• India’s apparel exports to touch $18 bn this year: Study
• Falling exports
• The TPP - a wake-up call for India

INTERNATIONAL

• Taiwan and China should join hands to enter TPP
• Philippines textile and apparel industries likely to revive by joining TTP
• The 19th Taipei innovate textile application show 2015 to start tomorrow
• World Textile Summit to take place during ITMA 2015

Textile Raw Material Price 2015-10-18

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15717 USD dtd. 18/10/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Trade Ministers to meet next week ahead of India-Africa Summit

Trade ministers from several African nations will converge here for the India Africa Trade Ministers' Meeting (IATMM) on October 23 in the run-up to the India-Africa Summit to discuss ways to bolster trade ties with India and fast-track regional agreements.  Representatives from 54 African nations, including heads of state of some 40 countries, and the powerful African Union are expected to participate in the four-day summit beginning October 26.  "Prior to the forum summit, the Ministry of Commerce and Industry is organising the 4th IATMM, which hopes to see the participation from across the African continent. This will provide us an opportunity to take stock of our trade relations and explore the possibilities of taking our engagements to the next level," a senior Commerce Ministry official said.  "Trade ministers of 53 countries have been extended invitations to participate in the 4th IATMM, along with the Commissioner for Trade and Industry, African Union Commission, and Secretary Generals/Heads of 8 RECs in Africa," he added.

The eight Regional Economic Communities (RECs) include Arab Maghreb Union (UMA), Southern Africa Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA) and Economic Community of West African States (ECOWAS).  Stronger trade ties, particularly in oil and gas sector, strengthening maritime cooperation and lifting the overall engagement to a new high will be on top of the agenda.  India's current trade with Africa stands at around USD 75 billion and it has granted some USD 7.4 billion for various developmental and capacity building projects in the past four years. India has implemented a total of 137 projects in 41 African countries during the said period.  The summit will see participation of over 400 business delegates from Africa, besides all major Indian chambers of commerce.

A number of African countries, including Tanzania, Sudan, Mozambique, Kenya and Uganda, have huge oil and gas reserves and India wants to invest in the sector to fuel its economic growth. Having a solid partnership in exploiting the blue economy will be another major focus.  Blue economy is marine-based economic development that results in overall improvement in human well-being and social equity.  During the 1st IATMM held on May 21, 2011, in Addis Ababa, it was decided that trade ministers of India and Africa will meet prior to the Africa-India Forum Summit and the India-Africa Trade Ministers Dialogue will be an annual fixture to be held alternately in India and one of the African countries.

SOURCE: The Economic Times

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India’s apparel exports to touch $18 bn this year: Study

Apparel exports for 2015 are likely to increase to $18 billion and to $20 billion in 2016 as against $16.5 billion in 2014, a study said. According to a report from investment information and credit rating agency ICRA, the growth in India's apparel exports is supported by the expectations of increase in the global apparel trade and partly due to benefits of depreciated Indian rupee. "However depreciated rupee is unlikely to remain as a sustainable advantage in long-term as India's market share in world's trade has not significantly changed despite depreciation of Indian rupee during last three years," it said in a statement.

India's share in the global apparel trade has remained modest with a share of just four percent last year which has increased only marginally from a share of three percent in 2004. The report said while China, Bangladesh and Vietnam were able to realize the benefits of the new trade arrangement (WTO's agreement on textile and clothing) thereby increasing their share in global apparel trade substantially, India's share had remained modest. "China is the largest apparel exporter on account of the largest global capacities across the textile value chain; however, the share of India had remained modest despite India being amongst the largest producer of cotton and man-made fibre and having the second largest capacity for spinning and weaving," it said. It said fragmented nature of the weaving, processing and garmenting industries with low levels of modernization, higher cost of production, modest share of non-cotton apparel and reliance on imported machineries across the textile chain have been the key factors which had constrained growth in India's apparel exports. The benefits of the government's flagship programme for textile sector upgradation - Technology Upgradation Fund Scheme (TUFS) - has been largely availed by the spinning sector with downstream sectors (weaving, processing and garmenting) witnessing limited participation. "The government's earlier policy of reserving the weaving and apparel sectors for the small scale units which had specified cap on investments in plant and machinery had been one of the reasons for the fragmented nature of the industry," said the report. However with revision in TUFS in October 2013 which focus on investments in downstream sectors, there have been increased investments there. As per the findings, the domestic apparel market has grown at a mean annual growth rate of 10 percent over the last five years. "With growth in the economy and rising income levels, and is expected to maintain the growth rate over the medium term," it said.

SOURCE: The SME Times

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Falling exports

The September numbers for merchandise trade add to the overall gloominess about India's exports performance. Ten months have gone by with continuous year-on-year declines in exports. Of course, imports have also declined, which has prevented the balance of trade and, through it, the current account deficit, from widening. In September 2015, exports were $21.8 billion, almost 25 per cent below their value in September 2014. This took the cumulative exports during the first half of 2015-16 to $133 billion, 17.6 per cent below exports in the corresponding period of last year. Imports in September were also down by about 25 per cent, while for the first half, they were down by about 14 per cent. Consequently, the trade deficit for September was $10.5 billion, about $ 4 billion less than in 2014, while for the first half, it was about $68 billion, an estimated $4.7 billion lower than in the same period last year.

It is important to recognise that India's performance is not unique; China is experiencing a similar persistent decline and global trade volumes are also showing a decline. To some extent, the global fall in trade can be explained by the sharp decline in commodity prices, which has particularly impacted large commodity exporters. But, it is also the case that other exports have fallen. In such a scenario, every country, particularly the ones that are most dependent on exports, is going to fight aggressively to retain, if not expand, its market share in a sluggish global environment. While India is not among those countries whose growth process can be completely undermined by an export slowdown, there is no question that, both at the macro and micro levels, the persistence of the decline could do serious damage. At the macro level, all drivers of demand are required to contribute to sustain and accelerate growth. At this point, domestic consumption and government expenditure are the only two contributing factors. Without investment and exports also chipping in, the room for accelerating growth is unquestionably limited. At the micro level, several sectors, with many of them relatively labour-intensive, are significantly dependent on exports for their volumes of business. A persistent slowdown will have an adverse impact on production and employment levels.

In the larger global and domestic context, this is a problem. It needs to be addressed on two fronts. One, efforts need to be made to revive exports growth by removing all roadblocks. This is a simple extension of the ease of doing business approach that the government is taking to revive investment, but it takes on special urgency in the case of exports because India risks falling behind other countries in the race and this will be very difficult ground to make up. The long-term dimension of this strategy is the imperative that India should not be excluded from large export markets in the ongoing restructuring of the world trade order. Two, India's great advantage in a situation of global stagnation is the potential that its domestic market offers. The weaker global prospects become, the greater is the pressure to stimulate domestic drivers of growth. Reviving private sector investment, in turn, requires a concerted push on infrastructure, structural reforms and the costs of and access to funds. While there are positive signs on some of these, several weak links continue to be a hindrance.

SOURCE: The Business Standard

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The TPP - a wake-up call for India

The timing of the conclusion of the Trans-Pacific Partnership on October 4 coincides with a continuous slump in export growth in India which will definitely be a major deterrent to India's high and sustained growth ambitions. India's next-generation trade reforms should be linked to the changed global trade landscape, which integrates goods, services and technology to connect with a world dominated by global value chains (GVCs). This linkage to GVCs will boost our exports of goods and services and FDI; raise GDP growth and sustain it; and create jobs (through SMEs and labour-intensive professional services) to make growth inclusive. We don't need a sole focus on manufacturing since it is linked to services and technology. We are in the world of tasks - not goods. The WTO "silo" approach on agriculture, manufacturing, and services do not really fit into this new trade landscape. This is going to be a world of mega-regionals, with the TPP leading the way.

To link to the TPP's GVCs covering over 40 per cent of the global economy, we need to be better placed to first reduce the massive trade transactions costs in India through trade facilitation and logistical facilitation reforms. Along with it the business environment has to make doing business a breeze. This will allow SMEs to link to global supply chains (43 per cent of jobs in the emerging countries comes from SMEs). This ease of doing business will also encourage a larger flow of efficiency-seeking FDI with the aim of making India a competitive hub in the supply chain process. This will create jobs and make inclusive growth real. We still have some way to go in trade facilitation reforms, and India has slipped by two places in the latest World Bank's Doing Business rankings to 142 out of 189 countries.

The WTO trade facilitation agreement is necessary for trade facilitation, but not sufficient. It focuses just on at-the-border issues, but ignores behind-the-border (logistics and regulatory) issues and across-the-border issues that plague India. Behind-the-border transaction costs are largely dependent on India's poor logistics capacity. Logistics reforms that impact transactions costs behind the border include: transport infrastructure such as road, rail, ports, and airports; reliable communications and technology infrastructure; and quality logistics services such as transport operators. Quality logistics behind the border allows for efficient and reliable movement of goods and services throughout the country, which translates into lower transaction costs (as well as greater SME market access by removing costly barriers). For example, the WTO estimates that the doubling of a country's paved roads can boost trade by as much as 13 per cent. While logistics is a key driver of internal (or behind-the-border) transactions costs, other policies will also have a significant impact, including introduction of a first-rate goods and services tax which will unify the Indian market. This will sharply reduce the massive truck waiting time at state borders.

Across-the-border issues we need to focus on are standards harmonisation, business mobility and creation of the trade information and e-business infrastructure. The last item calls for effective public-private partnerships to help businesses, especially SMEs, connect to global markets. All these policies along with the highest trade policy standards in goods and services, competition policy, public sector reforms, IPR, labour and environment standards will facilitate the development of GVCs, and seamless trade enhancing efficiency, and supporting cross-border integration, as well as opening domestic markets. The TPP will also promote innovation, productivity and competitiveness by addressing the new issue of development of the digital economy which is a major focus of the prime minister.

With the recent signing of the TPP deal in Atlanta by the trade ministers of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam, we will soon have in place, after this deal is approved in the national legislatures, and along with the TTIP, the largest and most diversified global value chain in the world. Countries that want to be major trade players must conform to the gold standards of TPP in the stipulated trade policy areas, which are all WTO++. In fact, there will soon be a scramble for joining the TPP in the next round. Several Asean countries are busy preparing to join - Korea, the Philippines, Thailand, and Indonesia. Even China is fully geared up to conform to the TPP's standards.

India has no choice but to ensure that it is not left out of this large group that constitutes its major trading partners. Just reliance on non-TPP/TTIP countries is not an option. According to a recent study by the Peterson Institute, Indian exports will gain $500 billion a year by being an active member of TPP, which will also allow it to benefit from TTIP. We need to ensure that very soon we are a member of APEC, which is a requirement for joining TPP, and simultaneously work towards meeting the trade standards of TPP. This is indeed a wakeup call for India. India's regionalism efforts so far were largely uncoordinated and FTAs were put into motion with modest success. India also invested a lot of negotiating energy in FTAs with industrialised economies like Japan and the EU. These agreements follow the old 20th-century model of trade negotiating strategy, i.e. a focus on tariffs and trying to keep the sectors that are most sensitive (or have the most lobbying power) out of the tariff reduction schedule. Deeper engagement on technical standards and related barriers, trade facilitation, or on the regulatory aspects of services market access - the issues that define effective market access in this integrated global economy - are not a part of such agreements.

Given the current global scenario, it would make sense for India to look to a deeper regionalism that incorporates the 21st-century trade negotiating mandate. TPP clearly sets the model for that. Membership of TPP however is not automatic. India will have to fulfill the strict requirements of elimination of tariffs and other barriers to trade and investment, a WTO++ IPR regime and the other behind- and across-the-border issue enumerated earlier. Labour and environment policies are also on the agenda, though how far these will be enforced is not yet clear. Given the diversity of membership in TPP, the same rules obviously will not apply to all countries. Also, India does need to move swiftly on most of these policies on its own, to fulfill its objective of becoming a major global player. It is high time that India develops a bold and well-focused 21st century trade strategy to regain its lost export momentum. The TPP gold standards should be seen as a window of opportunity for helping to achieve that.

SOURCE: The Business Standard

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Taiwan and China should join hands to enter TPP

China has expressed its intention to join the Trans-Pacific Partnership (TPP) after the trade bloc's 12 countries concluded negotiations on the common market's parameters on Oct. 5. This will pose a tough challenge to Taiwan, which has consistently stated its strong interest to join the TPP. Because the TPP features requirements beyond standard WTO rules, Taiwan should prepare for negotiations on those issues to join the pact to avoid being marginalized from regional economic integration. In recent years, there has been a competition between two major trade agreements — the TPP and the China-led Regional Comprehensive Economic Partnership (RCEP) — that are both aimed at promoting economic integration in the Asia Pacific region.

The RCEP is still under negotiation and is unlikely to be concluded this year, while the TPP has been agreed to. For Asia-Pacific countries left out of the TPP, the trade and investment that may be diverted from their economies because of the deal could cause further harm to their domestic economies amid a global economic downturn. Because the United States and Japan are members of the TPP, Taiwan's participation in the trade deal would mean it had in effect signed free trade agreements with two of the world's biggest economies. On the other hand, China's efforts to push the establishment of the RCEP to offset the impact of its absence from the TPP have hit a snag due to leaks of the negotiating texts of the proposed deal.

China is aggressively promoting its Belt and Road initiative and has launched the Asian Infrastructure Investment Bank with the aim of connecting the Asia-Pacific economic circle in the east and the European economic circle in the west. It still needs, however, to respond to the establishment of the TPP, whose aim is to liberalize trade in the Asia-Pacific region. Compared with China, Taiwan has an even more pressing need to participate in the TPP given that all 12 TPP members are important trade partners, account for 32.8% of the country's exports. In addition, if Taiwan makes inadequate efforts to sign more free trade agreements with other countries, it would remain exposed to high tariffs, eroding its export competitiveness and hurting its export-oriented economy. Therefore, there is an imminent need to participate in regional economic integration by joining the TPP and RCEP. While both Taiwan and China are located in the Asia-Pacific region, they did not join TPP negotiations. As China has now expressed its interest in participating in the TPP, Taiwan's membership would help the two sides transform and upgrade their economies and promote sustainable development.

SOURCE: The Want China Times

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Philippines textile and apparel industries likely to revive by joining TTP

In the Philippines, even among business leaders there is still very little appreciation of Trans Pacific Partnership (TPP) for its beneficial effects on the Philippine economy. For instance, some claim that the contents of the TPP Agreement are a secret. The TTP is envisioned to be similar to the European Common Market. The goal is to eliminate trade barriers especially tariffs and quotas among countries in the Asia Pacific region. The first batch of signatories included Australia, Brunei, Canada Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam. Although the Philippines is not in the first batch, Foreign Affairs Secretary Albert del Rosario stated, two months ago, in a round table discussion, that the Philippines had begun preliminary negotiations to join the second batch of TPP countries. Trade Secretary Gregory Domingo has also said that Philippines want to join the TPP.

The first batch of TPP has four ASEAN members – Brunei, Malaysia, Singapore, and Vietnam. In a recent Bloomberg report, it said that the biggest beneficiary of the TPP would be Vietnam because it would have the lowest wage policy compared to the other member-nations. Once the Philippines joins, this nation will certainly be one of the biggest beneficiaries of this new Common Market. There is a possibility that joining the TPP might result in the Philippines being flooded with duty free American made products. Textiles and apparel are among the product categories that will be duty free. The major textile and apparel countries – China, Bangladesh, Cambodia – are not going to join the TPP. This presents a golden opportunity for the Philippines to revive its textile and apparel industries. Since China is organizing its own Common Market, the manufacturing hub of the TPP will be Vietnam and, hopefully, the Philippines. However, Indonesia is also expected to join and is also another potential hub.

The United States is interested in joining because the TPP will open up new markets for its service industries. This will present potential competition for local companies in the financial and professional services. However, this also presents new opportunities for the Philippines. The 12 countries now in the TPP account for 40% of the world economy. The next batch of nations will include South Korea, Indonesia, Taiwan and the Philippines. The TPP will create the most powerful and wealthiest economic region in the world. The Philippines must join the Trans Pacific Partnership, among Filipino companies, there will be winners and losers. But for the nation as a whole, joining the TPP will mean more jobs, faster economic growth and reduction in poverty.

SOURCE: Yarns&Fibers

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The 19th Taipei innovate textile application show 2015 to start tomorrow

The 19th Taipei Innovate Textile Application Show (TITAS 2015) the only professional textile trade show held in Taiwan, as well as the most important innovative textile exhibition in Asia to start tomorrow. This year's TITAS is all about fashion, function and sustainability, with the focus on functional textiles for apparel, upholstery and industrial uses, recycled and sustainable textiles of low carbon footprint and fashion textiles forecasting F/W 2016/17 trend.

German Apparel Company SympaTex a leading global supplier of high tech protective workwear including footwear and other accessories is set to exhibit its specialized outdoor wear at TITAs. SympaTex manufactures its products using recycled membranes. Its 100-percent waterproof and windproof materials allow climate control using dynamic heat insulation, including a layer of 3D foam dots that provide increased functionality as spacers to the skin. The membrane of SympaTex products is 100-percent recyclable and PTFE and PFC free while containing no fluorine compounds. The use of PTSE in production, which provides resistance against flammability, has been scrutinized in recent years over worries it could be a culprit in health problems. The company cooperates with well-known brands in Europe, including Hugo Boss, Vaude and Halti. It is also partners with several Asian brands such as Kailas, OneWay, Kolping and Taiwan's St. Malo. Its products are widely used by security services, including military, police and firefighting forces. Another 400 exhibitors with more than760 booths from all over the world to gather in the professional trade show TITAS 2015 and 20,000 visitors will be attending the innovative textiles trade show which will be held from Oct. 19 to 21 at Taipei's Nangang Exhibition Hall.

SOURCE: Yarns&Fibers

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World Textile Summit to take place during ITMA 2015

The World Textile Summit 2015 a unique one-day event that brings together the world's most influential textile business leaders to debate issues of strategic importance to the global industry will be taking place on 13 November during ITMA 2015 in Milan, Italy and co-located at the fairgrounds. The Summit will be an opportunity for textile business leaders to share and discuss their own direct experiences, with several presenting short case studies and engaging in audience debate on topics that include, the investment case for green technology and value creation from the use of sustainable materials. The event will seek to answer sustainability question that matter to the industry’s strategic decision makers and respond to the questions What return should I expect from capital investment in resource efficient technologies; How do one establish and monitor a sustainable supply chain; What are the market opportunities that arise from a strategy based on clean production and sustainable materials; how to manage the risks to corporate reputation.

Vivek Tandon, Co-founder, Aloe Group will set out why strong sustainability credentials can help a business to attract investment from capital markets.  Aloe states that its mission is to develop hard-asset based companies, which provide proven technological solutions to environmental and social challenges – especially those experienced by the high growth markets of Asia and it bases its approach on the UN Global Compact. Its investments include India's Polygenta, which makes filament yarns from recycled PET bottles. Sustainability as a key factor in differentiating brands and companies Paula Oliveira, Director, Interbrand will explore how companies can differentiate themselves from their competitors through their commitment to sustainability and build a unique identity that will attract customers. Her advice comes against the background of a recent survey of CEOs by the United Nations Global Compact on sustainability, which revealed that 'brand trust and reputation' were their top reasons for taking action on sustainability. However, others have warned of the temptation of 'greenwashing', which can undermine trust, and stress that sustainability must be about driving substantial and authentic change. The event is sponsored by leading textile-machinery companies and environmental standards bodies including SPGPrints, MS Italy, bluesign technologies, Oeko-Tex, Reggiani, and Oerlikon. Supporting partners include the Sustainable Apparel Coalition, The Textile Institute and the Better Cotton Initiative.

SOURCE: Yarns&Fibers

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