The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 27 OCTOBER, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-10-26

Item

Price

Unit

Fluctuation

Date

PSF

1077.23

USD/Ton

0.59%

10/26/2015

VSF

2291.28

USD/Ton

0%

10/26/2015

ASF

2292.85

USD/Ton

0%

10/26/2015

Polyester POY

1016.69

USD/Ton

0.78%

10/26/2015

Nylon FDY

2531.89

USD/Ton

0%

10/26/2015

40D Spandex

5425.47

USD/Ton

0%

10/26/2015

Nylon DTY

2358.90

USD/Ton

0%

10/26/2015

Viscose Long Filament

2480.78

USD/Ton

0%

10/26/2015

Polyester DTY

1081.16

USD/Ton

0.36%

10/26/2015

Nylon POY

2767.78

USD/Ton

0%

10/26/2015

Acrylic Top 3D

5862.65

USD/Ton

0%

10/26/2015

Polyester FDY

1281.67

USD/Ton

0%

10/26/2015

30S Spun Rayon Yarn

2862.13

USD/Ton

0%

10/26/2015

32S Polyester Yarn

1745.59

USD/Ton

0%

10/26/2015

45S T/C Yarn

2704.87

USD/Ton

0%

10/26/2015

45S Polyester Yarn

3019.39

USD/Ton

0.52%

10/26/2015

T/C Yarn 65/35 32S

2594.79

USD/Ton

0%

10/26/2015

40S Rayon Yarn

1902.85

USD/Ton

0%

10/26/2015

T/R Yarn 65/35 32S

2311.72

USD/Ton

0%

10/26/2015

10S Denim Fabric

1.10

USD/Meter

0%

10/26/2015

32S Twill Fabric

0.93

USD/Meter

0%

10/26/2015

40S Combed Poplin

1.01

USD/Meter

0%

10/26/2015

30S Rayon Fabric

0.75

USD/Meter

0%

10/26/2015

45S T/C Fabric

0.75

USD/Meter

0%

10/26/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15726 USD dtd. 26/10/2015)

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

 

India takes fresh guard to boost trade and economic ties

The slowdown in China provides India another opportunity to make deep inroads into the African continent, strengthen business and economic ties.  The India-Africa summit will be a perfect setting for business communities from India and African nations to explore areas of cooperation and provide a roadmap to their governments.  Economic and trade relations between India and Africa have been on the slow track despite several Indian companies having a presence in the continent. The current trade is estimated around $75 billion. Experts say there is potential for this to go past $100 billion. But Commerce and Industry Minister Nirmala Sitharaman is cautious not to cite a number. More than 165 Indian companies invested in Africa between January 2003 and July 2015 in telecom, infrastructure, pharmaceuticals, healthcare and elsewhere.

India official says deeper cooperation in agriculture and agro-processing, engineering, textiles, leather and pharmaceuticals would have a positive impact on food security, raise health standards and create jobs in Africa and India. Food processing is a key area identified by both sides. Tourism too holds promise.  "There is clear intention that we will participate in African manufacturing and they'll do whatever they can do to Make in India," says Rajan Bharti Mittal, vice chairman of Bharti Enterprises.  Several African countries have high growth and are keen to engage with India.  Others would want Indian expertise in various sectors to speed up economic expansion. "There's been growing interest in many African countries to do more business with the East and that includes India and China... Africa is opening to everybody who wants to do business," says Zimbabwe trade minister Mike Bimha.  He detailed steps African countries are taking to make it easier for businesses to set up shop and ensure the policy environment helps ties to grow between private sectors. "We are open to whoever wants to do business with us. We want more and more of business to be driven by the private sector," Bimha says.  But there are issues to be addressed for smoother trade ties. Connectivity, banking links and security issues must be resolved. Trade experts say India needs to reorient strategy to boost ties.  "For the Africa-India trade potential to be realised, India must adopt an investment-led approach. We should support our African partners in development projects and handhold them in executing these efficiently," says Biswajit Dhar, professor at JNU.

SOURCE: The Economic Times

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Importers and exporters required to use digital signatures from January 1: CPEC

Importers and exporters will from January 1 have to mandatorily use digital signatures to file documents, the Central Board of Excise and Customs, the apex indirect taxes body, has said. "With effect from 1.01.2016, all importers and exporters using the services of Customs Brokers for formalities under Customs Act, 1962, will be required to mandatorily file custom documents under the digital signature certificates," it said in a circular to field officials. Further, wherever the customs process documents are digitally signed, the customs will not insist on the user to physically sign the said documents, it said.  However, the above does not apply to importers or exporters desirous of filing Bill of Entry or shipping Bill individually. They may have the option of filing declarations or documents without using digital signature.

SOURCE: The Economic Times

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‘Duties should boost manufacturing, not imports’

The BRICS Business Council was established in March 2013 during the BRICS Heads of State Summit in Durban. The council, comprising 25 prominent entrepreneurs from Brazil, Russia, India, China and South Africa, is seen as one of the vital mechanisms of BRICS cooperation. Apollo Tyres Chairman Onkar S Kanwar, who is also Chairman of the BRICS Business Council (India), shared his views with BusinessLine , via e-mail, on the current state of business ties within the group.

What is your assessment of India’s role in BRICS?

India has been playing a very constructive role within BRICS. The idea of a BRICS Development Bank (now called New Development Bank or NDB) was mooted at the summit meeting in Delhi in 2012. India’s commitment to BRICS flows from the highest political levels, and the main reason for this, as Prime Minister Narendra Modi noted at Fortaleza, Brazil, is that “for the first time, it brings together a group of nations on the parameter of ‘future potential, rather than existing prosperity or shared identities. The very idea of BRICS is thus forward-looking”.

How can India play a leading role in improving intra-BRICS ties?

In 2012, intra-BRICS trade totalled $281 billion and, in 2014, it rose to $297 billion. While this is an encouraging trend, intra-BRICS trade is still less than 5 per cent of BRICS countries’ total global trade. Given the various complementarities that we have in this grouping, there is a lot of scope to scale up. We have drawn up a set of recommendations for the government to facilitate greater trade flows. We have suggested promotion of trade in local currencies to encourage intra-BRICS trade. We would also like our government to consider putting in place a long-term, multiple-entry visa regime for entrepreneurs from BRICS nations. South Africa has already moved in this direction. Likewise, there is a need to facilitate greater interaction amongst entrepreneurs. Modi’s suggestion for India to host the first BRICS Trade Fair and Exhibition next year is excellent. Some other areas where we would want government support include harmonisation of technical standards across BRICS for exports and imports, as well as closer cooperation amongst customs authorities for better trade facilitation.

Do you think the recent currency adjustments by China will impact India’s export competitiveness?

The current adjustment in China has to be looked from two perspectives. First, the impact vis-à-vis the Indian rupee. Over the past six months, the rupee has depreciated over 5 per cent. Thus, exports remain competitive against Chinese exports. However, it is the second factor that will play spoilsport to our export competiveness and domestic manufacturing. China has a large capacity in most sectors, and if their economy does not have the demand, they will sell it somewhere in some form or the other. Coupled with the devaluation of the Chinese currency and the slowdown, this will certainly impact India’s export competitiveness. Indian manufacturers are already complaining of non-market prices of China’s exports to India.

What policy intervention is needed to improve India’s trade competitiveness?

Companies in India have the potential to become the best and compete with global players. However, this cannot happen in isolation. The government and all political parties must play a constructive role to make the right policy intervention to provide a level playing field to all companies in India. Duties have to be set in a manner that encourages domestic manufacturing, not make imports of finished goods more attractive. Labour laws must be realistic and facilitative towards those who wish to invest. The government should aim at ensuring adequate facilities in terms of land, basic infrastructure like roads, and basic services like access to finance, education and healthcare.

What are your views on initiatives, such as Make in India, and steps to ease ‘doing business’ in India?

Make in India could not have come at a better time. India can be the ideal manufacturing destination riding on a strong domestic market, a young working population and a low-cost destination. Steps are certainly being taken to improve the ease of doing business. I see things moving at the high level and hope the trickle-down effect happens soon. Else, it will lose momentum.

What can be done to enhance business ties within BRICS?

One of the key points that merits attention is availability of information on business opportunities and regulatory environment across BRICS. For large companies and groups, this may not be an issue, but we must remember that SMEs may require support. Within the BRICS Business Council, we have tied up with the Fudan University in China and support the ‘BRICS Information Sharing and Exchanging Platform’. Through this portal, we hope to plug some of the information gaps and make businesses aware of the upcoming opportunities.

Your take on the BRICS Bank or NDB?

The launch of NDB is a milestone and shows that BRICS as a grouping is also capable of setting up global institutions. We are looking forward to its guiding principles and feel the institution must, on priority, support projects that promote intra-regional connectivity, use of renewable energy and focus on skill development. NDB must help BRICS governments prepare a pipeline of bankable projects to address development priorities and put some seed money in these. It should also enhance its risk prevention mechanism by establishing reserve funds and improving reserve structures, and create effective guarantee mode for project financing. Members of the BRICS Business Council would like the NDB to foster regional value chains in manufacturing.

SOURCE: The Hindu Business Line

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India-Tamil Nadu textile & garment sector increases use of solar energy

In order to meet their own power consumption needs owing to its advantages, several spinning mills and garment units in the southern Indian state of Tamil Nadu have set up solar panels on their rooftops, according to a textile association. Solar rooftop panels are also being set up by spinning mills and garment units to be ready in case the state government decides to implement the Solar Purchase Obligation Regulation. Tamil Nadu government had announced a Solar Policy in 2012 stating that every high-tension consumer should fulfill solar purchase obligation to the extent of six per cent of the consumption, to which Tamil Nadu Electricity Regulatory Commission (TNERC) agreed quoting Section 108 of the Electricity Act and passed the Solar Purchase Obligation Regulation. This act was, however, questioned by the industry associations, and Appellate Tribunal for Electricity (APTEL) made it clear that Section 108 of the Electricity Act need not be made mandatory. But the APTEL order has been challenged in the Supreme Court, and the matter is still pending. “A large number of garment units and some spinning mills have installed rooftop solar plants to fulfill the obligation if it comes at any point of time,” Dr K Selvaraju, secretary general, The Southern India Mills' Association told Fibre2Fahsion.com. “There is a vast area at the rooftops of factories and the solar energy technology has improved a lot, making it advantageous for the mills to avail this technology. The investment per megawatt (MW) has reduced by 5.5 per cent to 6 per cent. The plant load factor has also improved with the tracking system, so as to harvest more amount of solar energy,” he said. Some investors have even come forward for Build-Operate-Transfer (BoT) mode (a form of project financing), so that it is advantageous for the textile mills to avail benefits of solar energy, he informed.

SOURCE: The Global Textiles

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Raymond - Strike at Chhindwara Textile Plant

Raymond Ltd has informed BSE that the workmen of the Company''s Chhindwara Textile Plant have gone on strike due to unreasonable and unlawful bonus demands. The said strike has been declared illegal by the concerned Labour Authorities. The Management is in dialogue with the workers and is trying to resolve the situation. Further note that the Company’s Vapi and Jalgaon Textile Plants continue with their normal operations and the Company does not expect the said strike at the Chhindwara Textile Unit to impact the availability of the finished products in the market place.

SOURCE: The Moneycontrol

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Indian businesses urged to invest in Bangladeshi weaving sector

Indian delegation that is in Dhaka looking for investment opportunities in the textile sector has been urged to invest in the Bangladeshi weaving sector as there is an opportunity for growth said Fazlul Hoque, vice-president of Bangladesh Textile Mills Association who led the Bangladeshi team at a discussion with the leaders of the Confederation of Indian Industry (CII) at the BTMA office in Dhaka. Another reason is that spinners are able to supply 90 percent of the yarn needed for the knitting sector, while weavers can meet only 40 percent of the demand for fabric in the garment sector due to inadequate production capacity. The garment sector would be benefitted if Indian entrepreneurs set up weaving factories in Bangladesh, as the local businesses have to import fabrics at present, which is time consuming, Hoque added.

The Indian delegation lead by CII, has 7,900 registered members from both the public and private sectors, is the apex trade body in the Indian industrial sector. The CII delegation also expressed interest in exporting cotton to Bangladesh. India supplies 35 percent of Bangladesh's total demand for cotton in a year. The prices of cotton have declined significantly worldwide due to stockpiling in China, the largest cotton consumer in the world.

SOURCE: Yarns&Fibers

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India hosts biggest Africa summit; plays catch up with China

India hosts its biggest-ever Africa summit this week as Prime Minister Narendra Modi seeks to challenge China's dominance on a continent that is blessed with vast natural resources and has the world's fastest-growing population. New Delhi wants to project its soft power and historical ties to Africa, in contrast to China's focus on resource extraction and capital investment that has sparked a backlash in some countries against Beijing's mercantilist expansion. Of the 54 countries invited, the hosts expect more than 40 to be represented by their heads of state and government who, after a series of ministerial meetings, will hold a full summit on Thursday.

India's trading ties with Africa date back to antiquity and both found common cause in the struggle against colonial rule. Yet India's influence faded over the course of the Cold War as it withdrew into non-aligned isolation. Now Modi, self-styled chief salesman of a "Make in India" export drive, wants to capitalise on an economic slowdown in China to highlight India as an alternative partner for trade and investment. "India is the fastest-growing major economy. Africa is experiencing rapid growth too," Modi told African journalists on the eve of the summit.

Although India's headline economic growth has overtaken China's, its economy is one-fifth the size and it lacks the financial heft to challenge Beijing in a head-to-head contest for the African market. "We can't match the Chinese in terms of resources - but any engagement we do with the Africans at least gives them a choice," said C. Raja Mohan, a foreign policy commentator at the Observer Research Foundation in New Delhi. The India-Africa Forum Summit is the third of its kind and, since the first was held in 2008, two-way annual trade has more than doubled to $72 billion. That lags trade between China and Africa, which has exploded to $200 billion as the world's No.2 economy sucks in oil, coal and metals to feed its industrial machine. The world's largest democracy has been criticised by human rights groups for inviting Omar al-Bashir, the president of oil-rich Sudan wanted by the International Criminal Court on charges of war crimes, crimes against humanity and genocide in Darfur.

EXPLOITATION AND EXTRACTION

For India, business comes first. State-run oil company ONGC, which has fields in Sudan and South Sudan, is on the hunt to buy $12 billion in foreign assets over the next three years and has identified Africa as an investment target. India is also in talks with South Africa to buy coal mines producing up to 90 million tonnes of coking coal each year to feed its growing steel industry. South Africa is already a major coal supplier to India. Still, India wants its involvement in Africa to be less transactional than China's, seeking a development partnership for two regions that account for a third of the world's people, but seven in 10 of those living in poverty. "Our partnership is not focused on an exploitative or extraction point of view, but is one that focuses on Africa's needs and India's strengths," said Vikas Swarup, spokesman for the Indian Ministry of External Affairs.

Trade ministers from India and Africa are looking to make common cause at a World Trade Organization ministerial meeting in Nairobi next month, Commerce Minister Nirmala Sitharaman said. Although India dropped its veto against a WTO deal to streamline customs procedures a year ago, it remains uneasy over Western pressure on food stockpiling it says is vital to ensure its 1.25 billion people don't go hungry. "India and Africa are on the same page," Sitharaman told reporters.

SOURCE: The Economic Times

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Global crude oil price of Indian Basket was US$ 44.71 per bbl on 26.10.2015

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 44.71 per barrel (bbl) on 26.10.2015. This was lower than the price of US$ 45.02 per bbl on previous publishing day of 23.10.2015.

In rupee terms, the price of Indian Basket decreased to Rs 2904.42 per bbl on 26.10.2015 as compared to Rs 2921.21 per bbl on 23.10.2015. Rupee closed weaker at Rs 64.96 per US$ on 26.10.2015 as against Rs 64.88 per US$ on 23.10.2015. The table below gives details in this regard: 

Particulars

Unit

Price on October 26, 2015 (Previous trading day i.e. 23.10.2015)

Pricing Fortnight for 16.10.2015

(Sep 29 to Oct 13, 2015)

Crude Oil (Indian Basket)

($/bbl)

44.71              (45.02)

47.70

(Rs/bbl

2904.42         (2921.21)

3115.29

Exchange Rate

(Rs/$)

64.96            (64.88)

65.31

 

SOURCE: PIB

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Vietnam prepares to meet investment inflows post-TPP

After the successful negotiation of the recently concluded 12-nation Trans-Pacific Partnership (TPP) agreement, Vietnam's Ministry of Planning and Investment is anticipating a boom in textile and garment industrial zones in many cities and provinces across the country, as per Vietnamese media reports. In order to benefit from lower duties to countries like the US and Japan that Vietnamese products are likely to enjoy once the agreement is implemented, various cities and provinces in Vietnam have announced plans to open and expand textile and garment industrial zones. For example, Ho Chi Minh City recently announced the opening of over 6 new industrial zones with an area of 2,000 hectares to meet future investments in the textile and garment sector. Likewise, the southern provinces of Long An and Dong Nai are also making plans for construction of industrial zones. International investors in the textile and garment sectors are demanding land on lease in these areas to set up production plants. As per Economic Zone Management Board, the province of Long An, has received over 100 investment proposals in textile, weaving, dyeing, and footwear sectors. The ministry expects the development of the industrial zones to boost the country's economy and use of domestic materials for production to cut Vietnam's trade deficit. It also stressed on meeting the standards of environment regulation and technology during the construction of textile and garment industrial zones in order to take complete advantage of TPP.

SOURCE: Fibre2fashion

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Depreciation of Euro increases EU textile prices

The average price of EU textile and clothing imports jumped 14.2 percent during the first quarter of 2015, says the latest issue of Textile Outlook International from Textiles Intelligence. The value of the euro had depreciated by 18.9 percent in the second half of 2014, leading to EU product price increases—the average price of clothing imports alone increased by 17.8 percent. Importers responded by reducing EU textile imports by 0.6 percent and clothing imports by 3.7 percent. While these cuts seem small, they took place before the full impact of euro depreciation emerged. The situation isn’t likely to improve anytime soon; the euro is forecast to depreciate against the U.S. dollar by 21.3 percent by the end of 2015.

SOURCE: The Specialty Fabrics Review

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Bangladesh impervious to TPP, says minister

Bangladesh Commerce Minister Tofail Ahmed told the Bangladesh Economist's Forum that the Trans-Pacific Partnership (TPP) agreement would not have any impact on the country's economy, especially on export of readymade garments (RMG), according to newspaper reports.The minister's statement came at the discussion meeting at the second conference of Bangladesh Economist's Forum (BEF)-2015, as some evolving adversities, including possible impact of a new bloc led by the US, came up for a close scrutiny."Bangladesh is the second-largest RMG-exporting country. The TPP will not affect the export of RMG, as the participants in TPP have very little share of Bangladesh export except the USA, which also denies duty-free access," Ahmed.

Twelve Pacific Rim countries signed the TPP agreement on October 5 in Atlanta to boost trade and business among themselves.Economists and businessmen feared that it might affect Bangladesh trade and business as a number of Bangladesh's competitors, especially in apparel sector, are on the TPP bandwagon.But the commerce minister ruled out the possibility of any such fallout as most of the TPP members do not have any significant stake in world RMG sector, excepting Vietnam.At the discussion, Bangladeshi experts highlighted the urgency of strengthening country's institutional capacity, both economic and political, alongside good governance for sustainable economic growth amidst latest developments on the external front. Although the Commerce Minister claimed that despite various limitations, Bangladesh has achieved significant progress in many sectors than its neighbours such as India and Pakistan, the speakers focused on tenuous pillars of such spontaneous advances in various sectors are based on and called for urgent steps for building and bolstering the institutions."You cannot ensure proper development without strengthening the government institutions and establishing good governance," said Prof Wahiduddin Mahmud while making his suggestions.

Prof Mahmud, a former caretaker government adviser, identified tax-GDP ratio and education as two major weak areas where the government should give more attention and called for making government institutions more transparent and accountable. The annual budget has problem with revenue shortfall and optimistic ADP falling short due to implementation problem, the noted economist observed. Bangladesh Bank governor Dr Atiur Rahman also stressed the need for strengthening the institutional capacities of government institutions, free from undue external influences. "Public institutions like monetary, financial and capital market regulators have suffered much from external undue influence denying them free hand in decisions on licensing, regulation and supervision of financial markets and institutions," he said. "Management efficiency in SOEs has remained abysmal, eroding accountability and entailing enormous drain on public resources," the governor told the meet.

SOURCE: Fibre2fashion

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Faisalabad Chamber of Commerce and Industry (FCCI) seeks special bailout package for Pakistan textile sector

President Faisalabad Chamber of Commerce and Industry (FCCI) Chaudhary Muhammad Nawaz has demanded special bailout package for the value-added textile sector to offset the ill impacts of 10 percent duty on the imports of yarn. In a meeting with the representatives of value-added textile sector, he said that the sector is the only sub sector of textile chain that is not only creating maximum job opportunities but was also contributing in a big way to earn foreign exchange. He said that despite of energy crisis, non-payment of refund claims and complicated tax matters, this sector has given an excellent performance with three percent increase in its export during first quarter of this fiscal. On the other hand, all other sub-sectors of textile recorded 22 to 23 percent decline in its exports. He said the government has given a special package to the spinners but the value-added sector has been over burdened by levying 10 percent duty on the imports of yarn. He expressed concern over unilateral decision of imposing duty without any consultation with the value-added sector and said that the entire textile sector has been put into trouble to save only spinners. He said the government should withdraw this regulatory duty before the start of protestation by value-added sector. He also demanded a bailout package for this sector so that it could overcome the ill impacts of energy crisis etc and improve its overall performance.

Continuing Chaudhary Muhammad Nawaz said that internal rift in the textile sector is only due to the non-availability of textile minister for the last six to seven months. There is no one available to protect the legitimate interest of the entire textile chain in the federal cabinet. He said that non-availability of this minister is not only problematic for the textile sector but would also create problems for the government. He particularity lauded the contribution of former textile ministers from Faisalabad and said that Chaudhary Mushtaq Ali Cheema and Rana Farooq exploited their capabilities to safeguard the interests of this important segment of national economy. He demanded of the Prime Minister to immediately appoint a full time textile minister from amongst the MNAs of the Faisalabad which is known as textile capital of Pakistan.

SOURCE: The Business Recorder

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WRAP targets textile waste reductions across Europe

A new initiative launched has been launched by WRAP to reduce the carbon, water and waste footprints of the textiles industries across 11 European countries. In partnership with the London Waste and Recycling Board (LWARB), WRAP's European Clothing Action Plan (ECAP) has received a €3.6m fund from the European Union’s environmental financial support instrument, EU Life. It aims to divert over 90,000 tonnes of clothing away from landfill each year in Europe by 2019.

WRAP chief executive Liz Goodwin said: “Finding more sustainable ways to work with textiles is an area set to deliver huge benefits – both economic and environmental. "To be leading on a project of this magnitude is something I am very excited about, and applying tried and tested approaches such as voluntary agreements and consumer campaigns across Europe, will really take our expertise to the next level. I look forward watching this initiative progress”. Denmark, Finland, Germany, Italy, Netherlands, Norway, Poland, Romania, Spain, Sweden and the UK are all signed up to ECAP, with plans to expand into Asia.

The project, based on the principles of WRAP’s Sustainable Clothing Action Plan (SCAP) in the UK, will promote ambitious targets revolved around producing closed loop production cycles from brands, retailers, manufacturers and charities, which ensures that less clothing is sent to landfill. ECAP will also task retailers with encouraging consumers to buy less clothing. The plan will also promote resource efficiency and growth in the sector. Commenting on the initiative, Jonas Eder-Hansen, development director of the Danish Fashion Institute, said: “Up to 80% of a garment’s environmental impact is decided in the design phase. Only few designers and product developers realise their potential to create sustainable change through their decision. "As part of ECAP, DAFI is excited to create an online learning platform for designers and product developers to fulfil their potential and design for longevity. The results will build on DAFI’s long tradition for working with designers through its Fashion Source library of eco and innovative materials.”

Resource Revolution

Earlier this year, WRAP named the textile sector alongside food & drink and electronics as areas that account for 25% of the UK’s carbon footprint; 80% of its water footprint and 40% of UK household waste. To revolutionise these sectors, WRAP unveiled details of its strategic plan for the next five years, with an aim to "create the step-change needed to meet the demands of future generations". Last week, edie reported that clothing giants including H&M, Nike and Adidas had launched a new initiative to improve working conditions in clothing manufacturing across the world. The project aims to streamline the auditing process for manufacturers which will allow brands to reinvest the new savings into in improving social welfare for workers. H&M has stood out in the sector’s sustainability progress. The company recently launched a new closed-loop recycled denim range, while in August it announced a new €1m grant for pioneering ideas which close the loop on discarded clothing.

SOURCE: The Edie

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Pakistan Senate body worried over declining textile exports

Chairman of Pakistan's Senate Standing Committee on Textile, Senator Mohsin Aziz has expressed concern over declining textile export of the country and asked the government to take pragmatic measures to overcome the situation, according to media reports. “The Government should be worried about the declining of textile exports of the country,” Aziz said in a press statement. He said that “given the GSP+ status granted by EU states, the Pakistani government should have ensured that the country's exports' increased by at least $2 billion whereas the exports are actually below the level of 2009-10.” The chairman said the textile exports have shown a sharp decline and even compared to last year's figure which was not satisfactory and this year's drop of 14 per cent is very alarming. Aziz hailed the government's recent step of announcing a 10 per cent import duty on yarn, saying this would stop the dumping of Indian yarn and clothes and improve local sales.

The Chairman echoed views of textile producers and exporters saying that high cost of business especially due to high electricity and gas prices have rendered Pakistani textile exports uncompetitive in the world market and forced the closure of mills which have rendered thousands of workers jobless. The Pakistan Tehreei-e-Insaf Senator said that there is dire need to reduce gas prices and also Gas Infrastructure Development Cess (GIDC), which has been increased by around 40 per cent, leaving the textile industry on the verge of collapse. He regretted that the government has not taken into consideration the recommendations proposed by textile committee to improve the current situation.Aziz's concerns are almost identical to that of the APTMA which has been voicing its concerns regularly.

SOURCE: Fibre2fashion

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WTO sees up to $3.6 trillion boost to trade from deal to cut red tape

The benefits of a treaty that will cut red tape at borders and standardise customs procedures are much larger than previously thought and could add $3.6 trillion to annual global exports, the World Trade Organization (WTO) said in a report on Monday. The WTO's trade facilitation agreement (TFA), struck at a ministerial conference in Bali in December 2013, will do more to boost trade than if all the world's import tariffs were removed, cutting costs 9.6 to 23.1 percent, the WTO calculated. "You could say that it's global trade's equivalent of the shift from dial-up internet to broadband," said WTO Director-General Roberto Azevedo. Once the new rules come into effect, which Azevedo hoped would happen by the end of 2016, it will cut waiting times at customs, lessen the potential for corruption and hasten foreign direct investment into weaker economies.

The TFA had previously been expected to add $400 billion to $1 trillion to trade, according to various economic studies. Many trade experts had shied from using the upper end of those forecasts, but the WTO's own research found they were on the low side. "Overall, the simulations confirm that the trade gains from speedy and comprehensive implementation of the TFA are likely to be in the trillion dollar range, contributing up to almost one per cent to annual GDP growth in some countries," the report said.  

The agreement, which was created in December 2013, will come into force when two-thirds of WTO members have ratified it. Fifty have ratified it so far, out of 161 current WTO members. The report used two main models for estimating the gains from the agreement: a "computable general equilibrium" (CGE) simulation - which makes assumptions about "what if" certain barriers are removed - and a "gravity model", based on historical evidence of removal of trade barriers.

The CGE model predicts exports will rise by at least $750 billion to well over $1 trillion per year, adding 0.34 to 0.54 percentage points to annual global economic growth, it said. Gravity model estimates put the annual export gains at $1.1 trillion to $3.6 trillion, the report said. It did not estimate the impact on GDP under the gravity model.

SOURCE: The Economic Times

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