The move follows frequent complaints by domestic traders against alleged violations of FDI norms by foreign e-commerce entities. E-tailers, however, reject such accusations by bodies representing brick-and-mortar stores. Commerce and industry minister Piyush Goyal on Friday said the government could issue a clarification on its foreign direct investment (FDI) policy for e-commerce “very shortly”. The statement comes amid reports that the government could tighten the norms that could force players like Amazon and Flipkart to restructure their existing marketing tieups. However, Goyal stressed that his ministry is not changing the FDI policy governing ecommerce but merely issuing clarifications on it, as the policy is already crystal clear. The FDI policy bars e-tailers having foreign investments from offering discounts directly or indirectly. The move follows frequent complaints by domestic traders against alleged violations of FDI norms by foreign e-commerce entities. E-tailers, however, reject such accusations by bodies representing brick-and-mortar stores. “We will also come out with the e-commerce policy and whatever clarifications… Certain instances have come to our notice where the policy is not being followed in letter and spirit, we will obviously be clarifying that very shortly,” he told reporters here. Goyal has repeatedly asked e-tailers having foreign investments to comply with the “spirit of the law”, saying the players are supposed to provide only platforms for buyer-seller transactions and not be a part of such transactions themselves. On Friday, Goyal again reiterated the need to follow existing FDI rules in both letter and spirit. He also said the consumer affairs ministry recently announced the draft ecommerce rules under the consumer protection law, and the final rules will be issued after getting stakeholders’ comments. “This is a series (of policies) which involves consumer affairs, the FDI policy, and the (rest of the) e-commerce policy. “We wanted to come with the consumer protection rules of e-commerce first because we believe that our most important stakeholder is the consumer and we wanted to make sure that consumer protection prevails over everything else,” Goyal said. As for violations of the FDI rules in e-commerce, the commerce and industry ministry had in December 2020 asked the Reserve Bank of India (RBI) and the enforcement directorate (ED) to take “necessary action” on allegations made by traders’ body CAIT against Amazon, Flipkart and Walmart relating to FDI rule violations. For their part, Amazon and Flipkart have maintained that they comply with all relevant rules. The FDI policy also disallows such online marketplaces from selling products of the companies where they hold stakes or control inventory, and also bars exclusive marketing arrangements, among others.
Source: Financial Express
He also said the government will come out with the long pending ecommerce policy and clarification to the existing FDI policy for ecommerce sector after the draft consumer protection rules for e-commerce are finalized Commerce and industry minister Piyush Goyal on Friday said the government will not change the current policy of foreign direct investment in the e-commerce sector as it has been “crystal clear” since it was announced, but added that certain clarifications would be issued shortly. He also said the government will come out with the long pending ecommerce policy and clarification to the existing FDI policy for ecommerce sector after the draft consumer protection rules for e-commerce are finalized. We are not changing any policy on e-commerce for FDI. Policy is crystal clear ever since it was first opened up, but certain instances have come to our notice, where the policy is not being followed in letter and spirit. We will obviously be clarifying that very shortly,” he said while addressing reporters. His statement comes days after he criticised US-based companies for “very blatantly” flouting India’s laws and being “arrogant.” “As regards the final e-commerce policy, we have announced the revised rules under the consumer protection act. This is a series which involves consumer affairs, FDI policy and e-commerce policy,” Goyal said, adding that this has sent a “very strong” message to the world as there used to be criticism that India’s e-commerce policy is skewed against foreign investors. “By announcing the ecommerce policy for consumer protection, we have demonstrated that our first and foremost concern is the consumer,” he said. The rules are open for public discussions till July 6. “After that, we will come out with the e-commerce policy,” Goyal said.
Source: Economic Times
MSME Minister Nitin Gadkari said the decision would make such traders eligible for finance under priority sectors classified by the Reserve Bank of India (RBI) The Union government on Friday announced fresh guidelines to include wholesale and retail trades as micro, small and medium enterprises (MSMEs) in a move that is expected to benefit as many as 25 million traders battered by the Covid-19 pandemic. MSME Minister Nitin Gadkari said the decision would make such traders eligible for finance under priority sectors classified by the Reserve Bank of India (RBI). “The government has received various representations and it has been decided to include retail and wholesale trades as MSMEs, and they are allowed to be registered on the Udyam Registration portal. However, benefits to retail and wholesale trade MSMEs are to be restricted to priority sector lending only,” according to an official release. This means that apart from getting the priority sector lending tag, these traders will not get any other benefit that small businesses otherwise get from the government. The Udyam portal provides a single-page registration, consumes less time, and simplifies the process of registering any enterprise under the MSME category. In the past, wholesale and retail trading activities were classified as MSMEs, but were excluded in 2017 as they did not cater to manufacturing activity. Currently, central schemes such as the capital subsidy scheme and SFURTI (Scheme of Fund for Regeneration of Traditional Industries) are aimed at supporting traditional industries. Traders’ associations welcomed the move. “The pandemic-affected traders will now be able to restore their businesses by obtaining necessary finances from banks, which had earlier denied the same,” said Praveen Khandelwal, secretary general, Confederation of All India Traders. A section of small businesses, however, expressed their concerns. According to Anil Bharadwaj, secretary general of Federation of Indian Micro, Small and Medium Enterprises (FISME), the concern here is once retail and wholesale traders get included in the priority sector lending category under MSMEs, bankers may prefer them to give loans in the place of small manufacturing units, thereby increasing competition for the limited funds. “Banks will always opt for less risky businesses to give their funds, and retail and wholesale trades are less risky than manufacturing, which can have an impact on the overall sector. Although the order says retail and wholesale trades will be treated as MSMEs only for priority sector lending, manufacturing MSMEs feel that once trading gets registered, they could also get preference in government procurements, etc. These concerns shouldn’t be brushed aside,” Bhardwaj said. N K Mishra, professor in the Department of Economics at Banaras Hindu University (BHU), said that in the short term, the move would definitely help businesses. “But, the concern is whether it will be broad based or those retail and wholesale traders who already have access to banking finance will corner all the benefits,” Mishra said.
Source: Business Standard
"The sum and substance of what began in March 2020 with Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) has again been extended from this March till November, and the Central government has been very proactive in responding to the challenges (caused by COVID-19)," Sitharaman said. Union Finance Minister Nirmala Sitharaman on Friday said the government has been proactive in responding to the challenges caused by COVID-19 and is also taking up reforms despite the pandemic. "The sum and substance of what began in March 2020 with Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) has again been extended from this March till November, and the Central government has been very proactive in responding to the challenges (caused by COVID-19)," Sitharaman said. Speaking to reporters, she said, "From a stage when we did not even manufacture PPE, had not enough ventilators or sufficient centres to test virology samples, we have walked a long course". "From March 2020 to June 2021, the support that needs to be given to the poorest of the poor is being extended, other than that providing stimulus for the economy is happening. Simultaneously, the Reserve Bank is also monitoring and extending credit support, but above all this, the opportunity to continue with the reforms is there," she noted. Pointing out that "as we are marking the 1991 economic liberalisation's 30th anniversary, some of the substantial reforms are being taken up by the government, the Finance Minister said the reforms have continued despite the pandemic. "Whether it was in the last tenure when you had GST and IBC (Insolvency and Bankruptcy Code) passed, or this tenure when you have agriculture Bills which have now become Acts, labour codes, mining sector reforms, reforms to financial sector, reform to distribution network of power, are all being undertaken even during the pandemic," she added. Sitharaman today concluded a twoday tour of Karnataka where she reviewed ongoing projects, interacted with industry leaders from the biotech sector, and also reviewed some of the vaccination and COVID infrastructure in the State. Responding to a question on increasing fuel prices, and whether the government was considering reducing excise duty on petrol with prices crossing Rs 100 per litre in several cities, the Minister said the duties on petrol are levied both by the Centre and the State and both would have to work together on this. "The Centre levies a fixed amount, whereas the States increase the rate as prices rise up...now as everyone is aware the per barrel price in dollar terms has gone over and above 75-76 US dollar per barrel. So this issue of fuel price is fairly layered, the Centre and State will have to work together," she said. "Even when the GST was launched, there was an enabling provision made in the constitutional amendment that as and when the council decides, it can always fix the rate and put it there in the GST. Once the GST council decides, it will just be taken on board, amendment is not required again," she further said. To a question on extending GST compensation, Sitharaman said a special GST council session would be held to decide on extending the compensation regime beyond July 2022. Regarding pending GST compensation to States, she said, "As per the discussions held in October 2020 with all the States on loss of revenue, and as a result of lack of money to pay the compensation, a formula was arrived at and based on that formula for the year 2020-21 whatever was agreed to be given through back-to-back borrowing has already been given." "The residual amount will be paid, either this year if we get better revenue or next year depending on the situation," she added. On technical glitches in the new income tax efiling portal, the FInance Minister said when the NSE 0.47 % team that has developed it came to Finance Ministry at the North Block, people from nearly eight different parts of the country voiced grievances, since then they have been sorting out the issues. "Hopefully soon, they will completely sort out. There are one or two issues on which they are working on," she added. Infosys was in 2019 awarded a contract to develop the next-generation income tax filing system to reduce processing time for returns from 63 days to one day and expedite refunds. When a reporter asked that as a Rajya Sabha member from Karnataka, there were lots of expectations from her, but people are now somewhat disappointed, Sitharaman said, "Your (reporter) view which you say is also the public view that as an MP from here I have not been able to meet the expectations I'm sorry that I'm not able to rise up to your expectations. I will try."
Source: Economic Times
Union minister Piyush Goyal said it is the highest ever merchandise exports in a quarter in the history of the nation. India’s exports during the April to June quarter in 2021 jumped to $95 billion on account of healthy growth in engineering, rice, oil meals and marine products as well as other sectors, the Union ministry for commerce and industry said on Friday. The ministry said that merchandise exports were worth $82 billion during April-June 2018-19 and $90 billion during the last quarter of 2020-21. India’s exports in June quarter 2020-21 were $51 billion. India’s exports in June 2021 was $32.46 billion. The ministry said that there was an increase of 47.34% from June 2020. Union minister Piyush Goyal said it is the highest ever merchandise exports in a quarter in the history of the nation. “Exports during April-June period are the highest ever merchandise exports in a quarter in the history of India,” the minister was quoted as saying by news agency PTI. The statement also showed that India’s imports last month reached $41.86 billion registering an increase of 96.33% compared to the same period last year when imports were $21.32 billion. India’s trade deficit stood at $9.4 billion last month. “India is thus a net importer in June 2021 with a trade deficit of USD 9.4 billion, widened by 1426.6% over trade surplus of USD 0.71 billion in June 2020 (India was net exporter in June 2020) and narrowed down by 41.26% over trade deficit of USD 16.0 billion in June 2019,” the statement said. Cashew (-44.86%), tea (-25.08%), leather and leather manufactures (-21.0%), RMG of all textiles (-18.76%), and gems and jewellery (-10.76%) were the major commodity groups of export showing negative growth in June 2021.
Source: Hindustan Times
Mechanical machinery, electronics, medical and surgical equipment, sports goods, toys and certain farm commodities are among a number of products where India has the scope to substantially raise its exports, according to an analysis by exporters’ body FIEO. Having set an ambitious goal to ship out merchandise worth $400 billion in FY22, India is firming up plans to bolster its exports of scores of key products where its share in the global market has traditionally remained paltry. Mechanical machinery, electronics, medical and surgical equipment, sports goods, toys and certain farm commodities are among a number of products where India has the scope to substantially raise its exports, according to an analysis by exporters’ body FIEO. For instance, in the electrical and electronics segments, India accounted for only 0.5% of the global supplies of $2,900 billion in the calendar year 2020. Similarly, while global imports of mechanical machinery and parts stood at $2,142 billion in 2020, India’s exports were just $18 billion, with a share of under 1%. Of course, India’s exports have risen at a faster pace than the global average in such capital and consumer goods in the last five years, it was aided by a low base. FIEO’s analysis is part of its broader exercise to devise new strategy to improve exports. Importantly, the rollout of production-linked incentive schemes for electronics products last year will help bolster our manufacturing base, which will ultimately help outbound shipments, FIEO reckons. In medical & surgical equipment, against global imports of close to $592 billion in 2020, India’s exports were only to the tune of $3.1 billion. In sports goods and toys, India’s exports stood at just $380 million, against the global supplies of $120 billion in 2020. As such, India’s exports have trailed the global average in the last five years through 2020. While global imports grew at a compounded annual growth rate (CAGR) of 3% during 2016-2020, India’s exports rose at only 2%. Of course, the outbreak of the pandemic and consequent lockdowns impacted India more adversely than most others in 2020. However, what is a matter of concern is that exports from labour-intensive sectors are losing their share in the global market. In the gems & jewellery sector, global imports in the last five years through 2020 grew by CAGR of 5%, while India’s exports contracted by a CAGR of 12%. Similarly, while the woven garment imports worldwide remained static during 2016- 2020, India’s supplies shrank by a CAGR of 8%. In the leather footwear sector, in which global imports grew by a CAGR of 1% during 2016-2020, the country’s exports contracted at a CAGR of 7%. However, in certain farm commodities, such as coffee, tea, spices, preparation of meat & fish, preparation of foods & vegetables, India’s CAGR in exports has been more than the double that of global imports between 2016 and 2020. Here the country needs to build upon what it has achieved in recent years.
Source: Financial Express
The economic partnership between India and the Association of Southeast Asian Nations (ASEAN) has continued to strengthen since the economic relationship began in 1992 and with the ASEAN-India Free Trade Agreement (AIFTA) coming into effect in 2009. The bloc has presented several opportunities for Indian manufacturers and exporters seeking long-term commitment. Total trade between India and ASEAN was valued at US$86 billion in 2020, a reduction from US$97 billion in 2018-19 due to the pandemic. However, this was an increase from the 2017 total trade value of US$59 billion, indicating an upward trajectory only arrested by the pandemic. Furthermore, according to India’s Commerce and Industry minister, IndiaASEAN trade has the potential to reach US$300 billion by 2025. ASEAN is already the world’s third most populous economy and is projected to be the fourth-largest single market by 2030, with a GDP of US$7 trillion. Furthermore, domestic consumption is expected to reach US$4 trillion and the population too will rise to 723 million from 648 million currently. Indian exports largely mirror those of ASEAN states, such as rice, electrical equipment, and clothing and accessories. However, there are still sectors where Indian exporters can potentially exploit market needs – wheat exports, the digital economy, and healthcare.
Taking advantage of AIFTA
Since its inception, both regions have made efforts to progressively eliminate trade tariffs on 80 percent of tariff lines. India has excluded 590 tariff lines from the list of tariff elimination and 489 tariff lines from the list of tariff concessions for agriculture, automotive, textiles, petrochemicals, crude and refined palm oil, tea, coffee, and pepper, among others. ASEAN has also lowered intra-regional tariffs through the Common Effective Preferential Tariff (CEPT) Scheme on exports under the FTA. This means Indian goods and raw material exporters to ASEAN are more competitive. Many industry bodies in India, however, have complained that AIFTA provides better market access for ASEAN trade into the country, but Indian businesses do not enjoy the same access to such reduced tariffs. Despite the size and potential of the ASEAN market, India still suffers from a trade deficit, which stood at US$24 billion in 2020. As such, India is keen to renegotiate the terms of AIFTA to level the trade balance.
What are the opportunities for Indian exporters? Digital economy COVID-19 has accelerated ASEAN’s adoption of its digital economy, which is expected to have a gross merchandise value of US$300 billion by 2025. With over 400 million internet users in the region, ASEAN’s digital economy presents a unique opportunity for Indian investors, especially for Indian expertise in the field of information technology (IT). The sector accounted for eight percent of India’s GDP in 2020, with exports expecting to reach US$150 billion by 2021. Online education, telecommunication, e-commerce, and telemedicine are all scalable opportunities. ASEAN recently saw one of the largest tech mergers between ride-hailing and payments giant Gojek and e-commerce leader Tokopedia, which was valued at US$18 billion. Such technology-based segments are also expanding in India with its emerging unicorns in the digital payments (Paytm), online retail (Flipkart), online education (Byjus), and raid-hailing segments (Ola). E-commerce to the driver of digital growth The pandemic has changed the purchasing behavior of ASEAN consumers, resulting in many turning to e-commerce for their basic needs. This has forced retailers and producers in the region to factor e-commerce into their operations, which was previously seen as an ‘option’ or part of an omni-channel sales strategy rather than a core business initiative. The industry is expected to reach US$172 billion by 2025 in ASEAN. Some 40 million new users came online in 2020 — compared to 100 million in the previous five years.
Healthcare
Healthcare is fast becoming a priority for ASEAN members, with many slowly committing to a universal healthcare system or national health insurance systems. Major markets such as Indonesia and the Philippines have succeeded in providing universal healthcare. Singapore, Thailand, and Malaysia provide the most advanced level of healthcare for their citizens, ranging from advanced neurological procedures to establishing specialized treatment such as heart transplants. India’s healthcare industry, particularly its multi-billion-dollar pharmaceutical industry, can become a reliable supplier of equipment, drugs, and vaccines to these markets. Furthermore, India’s healthcare sector can capture some of the 11 million global medical consumers travelling to Southeast Asia for treatment. Indonesians alone spent over US$1 billion in medical treatment abroad before the pandemic, mainly in Malaysia and Singapore.
Agriculture
Wheat consumption in ASEAN has been increasing over the decades, despite ASEAN contributing to some 54 percent of global rice exports. Rising per capita income and a growing middle-class have contributed to the increased consumption of wheat-based products. Moreover, the region’s tropical climate makes it difficult to grow the crop with many members, such as Indonesia, having close to total reliance on imports of wheat for feed and food. The country is one of the world’s largest importers of wheat, at over 11 million tons annually, which is used to make bread but noodles — Indonesia is the second-largest instant noodle market, after China.
Source: ASEAN Briefing
Terming it a "landmark decision", the associations said the move would provide required help to the retail and wholesale trade sector, which is facing tough times due to the pandemic. Inclusion of retail and wholesale trade under MSMEs is a "landmark decision" that would help them avail requisite finances from banks and financial institutions under priority sector lending, industry associations said. Earlier, on Friday, Union Minister Nitin Gadkari announced inclusion of retail and wholesale trade under MSMEs as per which they will also now get the benefit of priority sector lending under RBI guidelines. Terming it a "landmark decision", the associations said the move would provide required help to the retail and wholesale trade sector, which is facing tough times due to the pandemic. "Now under the revised guidelines, retail and wholesale trade will also benefit from priority sector lending under RBI guidelines," the MSME minister added. According to the Retailers Association ofIndia (RAI), this will give retail micro, small and medium enterprises (MSMEs) the support they need to survive, revive and thrive. "This landmark decision will have a structural impact on the sector, helping it get formalised by giving better finance options for businesses that want to get structured," an RAI statement quoted CEO Kumar Rajagopalan as saying. The Confederation of All India Traders (CAIT) said after this decision, traders will fall under the MSME category and will be able to avail requisite finances from banks and financial institutions under priority sector lending. Besides, now the traders will be enjoying several other benefits of various other government schemes which are being enjoyed by the MSME category," said CAIT National President B C Bhartia and Secretary General Praveen Khandelwal. The pandemic-affected traders will now be able to restore their businesses by obtaining necessary finances from banks which were earlier denied to them. "This step of the government will prove to be a milestone step in reviving not only the economy but even the most vibrant retail trade of India," they added. In a tweet, Gadkari on Friday said the government is committed to strengthening MSMEs and make them NSE 0.77 % of economic growth. The revised guidelines will benefit 2.5 crore retail and wholesale traders. The move would also allow them to register on Udyam portal.
Source: Economic Times
Under the freight smart cities initiative, city-level logistics committees would be formed and they will have related government departments and agencies at the local and state levels. The commerce ministry on Friday said it unveiled plans for freight smart cities to improve urban freight efficiency, and create an opportunity for reduction in the logistics costs. Under the freight smart cities initiative, city-level logistics committees would be formed and they will have related government departments and agencies at the local and state levels. These would also include the private sector from the logistics services and also users of logistics services, the ministry said in a statement. “On the freight smart city initiatives, the logistics division is working closely with GIZ (Germany) under Indo-German Development Cooperation, Rocky Mountain Institute (RMI) and RMI India. A challenge is expected to be announced to encourage the participation of cities in this initiative," it said. From the 10 cities to be identified on immediate basis, it is planned to expand the list to 75 cities in the next phase before scaling up throughout the country, including all state capitals and cities that have more than one million population. However, the list of cities to be taken up would be finalised in consultation with the state governments. Minister of State for Commerce and Industry Hardeep Singh Puri launched a website on 'Freight Smart Cities' and also released a handbook outlining 14 measures that can be taken to improve urban freight. He urged the states to identify 10 cities, to begin with, to be developed as freight smart cities and to set up institutional mechanisms for the same.
Source: Business Standard
The Federal Board of Revenue (FBR) has exempted/reduced customs duty on the import of 580 items of textile sector from July 1, 2021. According to the FBR’s budget instructions issued the Model Customs Collectorates (MCCs) here on Friday, textile is the single largest earning sector of the country. It has an overwhelming impact on the economy, contributing more than 60 percent to the country’s export. The sector covers cotton value chain, polyester value chain, man-made fibers (MMF) as well as natural fibers etc. Keeping in view the importance of the textile sector, customs duties on goods falling under around 580PCT codes have either been exempted or reduced. To boost the competitiveness of the footwear industry customs duty on inputs like uppers, buckle, shoe adhesives, phenolic resins etc falling under PCT code 6406.1000, 8308.9020, 3506.9110, 3909.4000, 3920.1000, 3920.2090, 3921.9090 and 3926.9060) has been subject to concessionary rate of 5% and outer soles and heels of rubber (PCT code 6406.2010) has been subject to 15% concessionary rate of customs duty with nil ACD and RD under Fifth Schedule for Sales Tax Registered Shoe Manufacturers subject to quota determination by IOCO; Furthermore, CD and ACD on Master batches (PCT codes 3206.4910), composite paper (PCT code 4807.0000) and Preparation of a kind used in the leather or like industry (PCT code 3403.1110) has been reduced from 20% and 7% to 16% & 4% and CD on Sealing waxes (3404.9010) and Vinyl Chloride-vinyl Acetate Copolymers (PCT code 3904.3000) may be reduced from 11% to 3% in Pakistan Customs Tariff. To incentivize poultry industry customs duty on medicaments (PCT code 3004.9099) has been reduced from 11% to 3% under Fifth Schedule and Additional Customs duty on import of all animal feed preparations/additives (PCT code 2309.9000) already listed at serial No. 20 to 30 of Part-III of Fifth Schedule has been exempted. In order to cater for the needs of the export sector, including small and medium enterprises, FBR has drafted a new and simplified Export Facilitation Scheme. To enable FBR to launch this Scheme, an amending clause i.e.” imports by persons as authorized under Export Facilitation Schemes, 2021 notified by the Federal Board of Revenue with such conditions, limitations, restrictions” has been made in PCT code 9917. After implementation of the new scheme, the existing schemes shall be phased out in next two years. Users of the new scheme will be allowed to import inputs, raw materials, components, equipment, plant and machinery without payment of Customs Duty, Sales Tax, FED and IT Withholding Tax. Moreover, they can purchase local supplies against zero-rated invoices. To provide further facilitation to the exporters availing Export Oriented Units Rules (SRO 327(I)/2008 dated 29th March 2008) and for ease of doing business, necessary amendments has been made in SRO regarding following, (i) Bond to Bond Transfer of goods through WeBOC without prior approval of the Collector may be allowed. (ii) Supply against international tenders may be treated as exports. (iii) The requirement of furnishing bank statement for two years for newly-incorporated companies is being relaxed. In order to facilitate the exporters who were using SRO 492(I)/2009 dated 13.6.2009 for temporary import of goods for subsequent exportation. The facility is being further simplified and facilities are being increased by allowing the exporters to deposit Indemnity Bond and PDC only, instead of bank guarantee or pay order which caused blockade of capital of exporters. In addition, the conditions for mandatory examination at the time of export are being abolished and clearance is being allowed to be done on Risk Management System. This will improve ease of doing business by reducing the cost and time for the exporters.
Source: Business Recorder
Pakistan’s exports to the UK saw a double-digit increase during the last fiscal year of 2020/21, crossing the two-billion-dollar mark for the first time despite Brexit uncertainties, according to the ministry of commerce on Friday. The commerce ministry announced that exports to the UK increased 33 percent to $2.025 billion during the last fiscal year compared to $1.526 billion in the preceding fiscal year, an increase of $499 million. “The UK is a very important trading partner and is the first time that our exports have crossed $2 billion mark,” Adviser to Prime Minister Commerce and Investment Razak Dawood wrote on Twitter. “I would like to commend our exporters for this remarkable accomplishment. I also commend MOC’s trade and investment officers in the UK and urge them to work harder in finding opportunities for our exporters and provide facilitation to our businessmen,” Dawood added. The growth came in the midst of coronavirus-led world transition with global economy having loosened growth pace rapidly, exerting pressures on low- and middle-income economies to tediously recover from the downfall. However, it also created opportunities on exports front for economies like Pakistan that is benefitting from diversion in export orders and utilization capacity of industries. Being a major partner in the Europe, the UK’s economic slowdown could not affect Pakistan’s economy because of its smallest market share in Britain. Even its exit from the main European Union (EU) block – that applies concessional tariffs on products coming from Pakistan under the generalised scheme of preferences (GSP) plus – didn’t lead to negative implications. Before the Brexit, exports to the UK were governed by the GSP plus scheme of the EU. Pakistan Business Council said the UK is Pakistan’s fourth largest market for exports and 85 percent of Pakistan’s exports to the UK consist of other made-up textile articles, articles of apparel, cotton and articles of leather. All these products enjoyed duty-free access to the UK under the GSP+. The UK is also Pakistan’s 15th largest source of imports. Major imports from the UK include iron and steel, machinery, electrical/electronic equipment, other made-up textile articles, and miscellaneous chemical products. Under the GSP+ scheme, 96 percent of Pakistani exports had preferential market access to the UK. A number of times, British government has assured Pakistan of continuous support despite Brexit. Unlike general perception that the Brexit would be hurtful, it hasn’t been so far.
Source: The News
The world’s biggest fashion brands are lying about what their clothes are made from in a bid to be seen as more sustainable than they actually are, a major new report has found. The report by Changing Markets Foundation found that “greenwashing is rife” at both high street and luxury brands. According to the report, brands like ASOS have been deceiving consumers. “ASOS has...been caught lying to its customers. A pair of ASOS trousers claim to be ‘monomaterial’ and therefore ‘designed to be remade’ or recycled. Yet, the product is actually a blend of 54 per cent nylon and 46 per cent polyester – a mixture impossible to recycle with current technology,” it says. The results show that 60 per cent of claims by UK and European fashion companies, including Zara, H&M are unsubstantiated and misleading consumers. The majority of green claims flouted UK Competition and Markets Authority guidelines in some way. “These guidelines set out principles which green claims should adhere to, such as the need to be accurate and to not hide relevant information from consumers,” George HardingRolls, campaign advisor at Changing Markets, tells Euronews Green. The investigation discovered that numerous fashion brands’ green claims were “ignoring these rules,” he adds. So what’s a concrete example of how brands are deceptive in their marketing? “Zalando has misled consumers by listing a pair of fake leather leggings as sustainable, despite the use of PVC – a material that contains chemicals such as phthalates which cause long term harm to health,” says Harding-Rolls. Who are the worst offenders? Two high-street brands came out on top as the most egregious offenders when it came to flouting guidelines.
• H&M - 96% claims flouting UK Competition and Markets Authority’s guidelines.
• ASOS - 89% false claims
The report also found that these four brands are the most addicted to fossil fuel-based
fibres.
• Boohoo – 85% of items contain synthetic fibres
• Walmart – 80%
• UNIQLO – 79%
• Forever 21 – 78%
Of those mentioned, no brand has thus far made a commitment to end the use of fossilfuel based fibres.
What do the experts think?
Livia Firth, co-founder and creative director at Eco-Age, is renowned for creating campaigns around environmental justice and specialises in integrating sustainability into the fashion industry. As a supporter of the Changing Markets Foundation report, she says, global brands have an “addiction to plastics” and that there is an “emptiness” to many of their sustainability claims. “There is so much greenwashing regarding circularity - a much needed business model we all need to adopt, but made nearly impossible in the fashion industry by the vast amount of synthetic fibres used,” says Firth. She continues, “we have also been working for a few months at EU level to make sure that the proposed PEF (Product Environmental Footprint) label uses the correct methodology, and we hope the EU Commission will take this groundbreaking report into consideration.”
The problem with synthetics
Synthetic fibres represent over two thirds (69 per cent) of all materials used in textiles, according to the report. This figure is expected to balloon to nearly three quarters by 2030, of which 85 per cent will be polyester, a material produced from fossil fuels such as oil and fracked gas. The production of synthetic fibres currently accounts for 1.35 per cent of global oil consumption, which exceeds the annual oil consumption of Spain and amounts to 1.29 billion barrels of oil a year. Cheap synthetic fibres are not only harmful because they go into low-quality clothing that ends up in landfill. They also perpetuate the fashion industry’s dependence on fossil-fuel extraction during a climate emergency. Microplastics also emerged as a critical blindspot for most brands. Despite the known damage they cause to human and environmental health, the vast majority of brands were found to be asleep at the wheel when it comes to microplastics, delaying meaningful action. The report urges brands to tackle their addiction to fossil fuel-derived synthetics, to commit to ambitious climate targets and invest in truly circular solutions. Consumers are encouraged to think twice about their purchases and to question the integrity of the shops they are buying from before purchasing. In response to the allegations made, an ASOS spokesperson said, "The reality is that there is no silver bullet to this challenge, and a wholesale switch from synthetic to natural fibres can create other impacts – for example, water use or land degradation - so it's important we work together as an industry to get this right. As a Textiles 2030 signatory, we're committed to collaborating with industry colleagues to find and develop system-wide solutions to build a more sustainable product mix and tackle the use of virgin synthetics."
A Boohoo Group spokesperson responded with,
“Tackling these complex issues will require collaboration, which is why we are a member of the sustainable apparel coalition and a proud signatory of the Textiles 2030 initiative. In March, we published our sustainability strategy which contains a series of measurable targets designed to reduce our environmental impact and textile waste. In May, we published our sustainability report which measures the progress we are making against the challenging targets we have set ourselves. Together, polyester and cotton account for over 80% of the fibres we use and so we are tackling these first. We are working to ensure that all of the polyester and cotton we use is either recycled or more sustainable by 2025.” A Zara spokesperson commented, "The Changing Markets report itself concludes 'Zara made the fewest claims in contravention of the guidance'. It also commented that Zara was the most comprehensive at substantiating and verifying its sustainability claims." A spokesperson from H&M said, "The report raises important challenges for the whole industry, including the use of fossilfuel based fibers for fashion products and the importance of credible sustainability claims, two areas in which we have been proactively working for many years. However, we don’t recognise ourselves in the way we are depicted in regards to misleading claims. We base all our product sustainability claims on credible third-party certification schemes for our materials to ensure sustainable sourcing and integrity."
Source: Euro News
An online conference to promote trade cooperation between Vietnam and Tunisia took place on June 30, attracting the participation of representatives from 100 businesses of the two countries operating across fields. Addressing the event, deputy head of the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency (VIETRADE) Le Hoang Tai affirmed that Vietnam is gradually becoming an important link in the global supply chain for many groups of processed and manufacturing products, farm produce, food and consumer goods. The event offers a venue for Vietnamese enterprises to introduce business cooperation opportunities and import – export prospects between the two sides, Tai said. Najeh Ben Abdessalem, Vice President of the Chamber of Commerce and Industry of Tunis capital, said the trade value between the two countries still remained limited, affirming that there is a large room for bilateral trade cooperation. Sharing Abdessalem’s view, Ghazi Yacoub from the center for export promotion of Tunisia (CEPEX) spotlighted the potential for trade cooperation between Vietnamese and Tunisian enterprises, especially in export-import. Tunisia’s import turnover averagely increases by 4.75% per year, he said. Through Tunisia, Vietnamese businesses can access markets in the Middle East and South Africa. On the contrary, Vietnam can serve as a gateway for Tunisian firms to make inroads into other ASEAN member countries. Tunisian-Vietnamese Business Council considered Hoang Duc Nhuan, Vietnamese Trade Counsellor in Algeria and Tunisia, said the two sides need to improve their legal framework through signing agreements on the promotion and protection of investment, memoranda of understanding (MoU) on trade promotion, and considering the possibility of setting up a Vietnam – Tunisia business council. According to the Vietnam General Department of Customs, the Vietnam – Tunisia trade value reached US$36.2 million in 2019. Vietnam mainly exports coffee, cashew nuts, pepper, seafood, machines, spare parts and fibre. Meanwhile, Tunisia ships seafood, chemicals, machines, plastics, textiles and animal feed, and materials to Vietnam. Nhuan emphasized the necessity to promote the role of diplomatic representative agencies, ministries and trade promotion organizations and joint committees of the two countries in supporting their business communities. Attention should be paid to helping the two sides’ enterprises get more information on cooperation opportunities. Vietnamese and Tunisian firms should also actively participate in international fairs and exhibitions, and business forums, he said. Nhuan advised Vietnamese enterprises to consider pouring more investment into and setting up joint ventures in the field of processing, manufacturing and high-value-added services in Tunisia as a foundation for entering other African markets.
Source: African Manager
