Under the scheme, only the debtor gets to trigger its own bankruptcy process. It is designed to yield a faster resolution, cost less and reduce litigation often triggered by defaulting promoters to retain control of their firms, analysts have said. Finance Minister Nirmala Sitharaman on Monday introduced a Bill to replace an ordinance on the Insolvency and Bankruptcy Code (IBC), which provides for the so-called pre-pack resolution scheme for micro, small and medium enterprises (MSMEs). Under the scheme, only the debtor gets to trigger its own bankruptcy process. It is designed to yield a faster resolution, cost less and reduce litigation often triggered by defaulting promoters to retain control of their firms, analysts have said. The ordinance was promulgated on April 4, days after the lifting of the one-year suspension of insolvency proceedings against Covid-related defaults. The IBC (Amendment) Bill, 2021, is modelled after the report of a panel headed by Insolvency and Bankruptcy Board of India (IBBI) chairman MS Sahoo. To file for pre-pack insolvency, the MSME debtor will require the approval of unrelated financial creditors accounting for at least 66% of dues. Honest promoters will be allowed to submit the base plan for resolution, which will then be put to competitive bidding through a Swiss challenge. However, in cases where operational creditors are not required to take a haircut, the promoter’s plan, backed by financial creditors with at least 66% of voting power, can be presented before the National Company Law Tribunal (NCLT) for clearance. Importantly, promoters will continue to run the MSMEs, unlike in the CIRP, where the resolution professional gets to run the affairs with guidance from financial creditors. The time limit for resolution has also been drastically reduced. Pre-pack resolution plans have to be submitted in only 90 days and the NCLT will have another 30 days to approve them. The IBC currently stipulates a maximum of 270 days for the completion of the entire CIRP. The disposal of a pre-pack application has been given priority over the CIRP application for the same stressed MSME under Sections 7, 9 and 10 of the IBC, subject to certain conditions. However, in case of already pending CIRP applications, NCLT will need to dispose of them before considering the pre-pack application for relevant debtors, analysts have said. According to IBBI data, 1,723 cases were in the resolution process as of March 2021. Since MSMEs typically account for the largest chunk of these cases, the pre-pack scheme will help them resolve stress better and faster, according to analysts. Rajiv Chandak, partner at Deloitte India, said lenders are now awaiting similar provisions for larger corporations. “Pre-packaged insolvency can help in resolving stress early and cut resolution time for companies staring at default.” Anoop Rawat, partner (insolvency & bankruptcy) at Shardul Amarchand Mangaldas, said pre-pack insolvency is a fast-track process that envisages identification of a resolution plan prior to the admission of the process by the NCLT.
Source: Financial Express
The Factoring Regulation (Amendment) Bill, 2020, seeks to broaden the participation of entities in the factoring business, thus expanding the avenues of working capital credit to even small businesses. It also relaxes restrictive provisions in the extant law and empowers the central bank to come out with norms for better oversight of the $6-billion factoring market. The amendments to the factoring law approved by the Lok Sabha on Monday will bolster cash flow to micro, small and medium businesses (MSMEs), Finance Minister Nirmala Sitharaman said. The Factoring Regulation (Amendment) Bill, 2020, seeks to broaden the participation of entities in the factoring business, thus expanding the avenues of working capital credit to even small businesses. It also relaxes restrictive provisions in the extant law and empowers the central bank to come out with norms for better oversight of the $6-billion factoring market. Sitharaman said the amendments are in sync with the UK Sinha panel recommendations. The Bill has already passed through the scrutiny of the standing committee on finance, and the government has also accepted their suggestions, she said. The Bill, which was cleared without a proper discussion amid a din in the Lok Sabha, had been listed since last week. But discussions on the amendments couldn’t take place due to frequent disruptions in House proceedings. The new Bill seeks to allow all non-banking financial companies (NBFCs), instead of a select few, to engage in the factoring business. Factoring is essentially a transaction where an entity (like an MSME) sells its receivables (dues from a customer) to a third party (a ‘factor’ like a bank or NBFC) for immediate funds. It often helps a firm satiate its immediate working capital requirement. Many MSMEs, whose payments against supplies are stuck, participate in the factoring business with receivables. Despite growth in recent years, the factoring market accounts for only 0.2% of India’s GDP, way behind comparable developing economies such as Brazil (4.1%) and China (3.2%), according to a report of the parliamentary standing committee on finance, which reviewed the Bill. The factoring market worldwide is projected to reach $ 9.2 trillion by 2025. In India, factoring credit makes up for only 2.6% of total formal MSME loans, way below 11.2% in China. Moreover, only 10% of the total receivable market is currently covered under a formal bill discounting mechanism. The factoring Bill also seeks to amend the definitions of “assignment”, “factoring business” and “receivables”, to bring them in sync with international definitions, and to insert a new definition of “Trade Receivables Discounting System”. The House panel, in its report submitted in February, had stressed the need for the RBI to build sufficient regulatory resources to ensure effective supervision of factoring activities now that a large number of players may take part in such businesses.
Source: Financial Express
Government has taken a number initiatives for providing financial assistance to the Micro, Small and Medium Enterprises (MSMEs) to cope with the financial impact of the COVID-19 pandemic which inter-alia include measures such as :
In view of the challenges faced by taxpayers due to the outbreak of Novel Corona Virus (COVID-19), the Government of India has taken several taxation related measures for the industries including MSMEs which inter-alia include measures such as :-
This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in the Rajya Sabha.
Source: PIB
Blinken is on a two-day visit to India and arrived in New Delhi on Tuesday. This is his first visit to the country as secretary of state India and the US will on Wednesday hold bilateral discussions and focus on wide-ranging issues including security, trade and investment, Indo-Pacific engagement as well as health care. US Secretary of State Antony Blinken will meet External Affairs Minister S Jaishankar. The meeting will be followed by another one with Prime Minister Narendra Modi at the latter’s residence in New Delhi. Blinken is on a two-day visit to India and arrived in New Delhi on Tuesday. This is his first visit to the country as secretary of state. On Tuesday, the US State Department issued a fact sheet, ‘India, US : Deepening our Strategic Partnership’, that focused on five broad areas — deepening India-US partnership, the Indo-Pacific front and center, deterring adversaries and defending interests, combating the Covid-19 pandemic, and tackling the climate crisis. “Secretary Blinken will meet with Prime Minister Narendra Modi and External Affairs Minister Dr S Jaishankar to discuss a wide range of issues, including continued cooperation on Covid-19 response efforts, Indo-Pacific engagement, shared regional security interests, shared democratic values, and addressing the climate crisis,” an official statement released by the office of the spokesperson. According to a PTI report, the implications of the withdrawal of American forces from Afghanistan and the need for sustained pressure on Pakistan on terror financing and safe havens will be discussed. There will be a focus on deepening engagement under the framework of the Quad with the possibility of a foreign ministerial meeting of the grouping expected to take place later this year. India is expected to press for gradually resuming international travel while maintaining health protocols, especially for easing the mobility of students, professionals, and business travellers, besides humanitarian cases, the news agency said. According to the Ministry of External Affairs, discussions will focus on regional and global issues of mutual interest, including recovery from the pandemic, the Indo-Pacific region, Afghanistan, and cooperation in the UN. “Visit is an opportunity to continue the bilateral dialogue and bolster the India-US global strategic partnership. Both sides will review the robust and multifaceted bilateral relations,” the MEA had said last week. As far as vaccines are concerned, India is expected to push for consistent supply of raw material required to manufacture vaccines. Apart from that, the status of the US’s intent to send shipments of vaccine could be discussed.
Source: Business Standard
The panel has recommended that the government should immediately come out with a larger economic package “aimed at bolstering demand, investment, exports and employment generation” to help the economy, including MSMEs, to recover from the fallout of Covid-19. A parliamentary panel has said the stimulus package announced by the government was inadequate to help small businesses in the pandemic-hit economy and batted for more measures, particularly for micro, small and medium enterprises (MSMEs). It has recommended that the government should immediately come out with a larger economic package “aimed at bolstering demand, investment, exports and employment generation” to help the economy, including MSMEs, to recover from the fallout of Covid19. “The measures adopted were more of loan offering and long-term measures instead of improving the cash flow to generate demand as immediate relief,” the parliamentary standing committee on industry said in its report on Tuesday. “The stimulus package announced by government last year could not percolate down properly to the lower levels of MSME sector,” it said. “The committee feels that extra efforts need to be taken on this front.” It suggested that a new National Employment Policy may be considered along with exploring the feasibility of establishing a National Electronic Employment Exchange and building a skill-based database to provide employment to skilled manpower in their area of expertise. The maximum impact of the pandemic was felt on the gem and jewellery, leather, man-made yarn and fibres sectors, the report said. As these are highly labour-intensive sectors, employment prospects in these sectors were also badly affected by the lockdowns imposed on account of Covid-19. Besides, the maximum impact of the pandemic was felt on lodging, tourism, airlines, retail sector, steel, apparel, and automotive sectors, it said. “It is estimated that almost 25% of MSME loans could slip into default as several MSMEs are finding it tough to draw working capital from banks,” the report said, quoting industry associations. The committee recommended that the government should provide incentives to attract more MSMEs to register themselves on the Udyam Portal, which currently is a burden for MSMEs as it increases the number of compliances. Citing the perennial issue of delayed payments to MSMEs, the committee has recommended that strict provisions against delayed payments need to be put in place to ensure timely release of payments by central public sector enterprises (CPSEs), which will immensely help MSMEs to meet their working capital or credit requirements.
Source: Economic Times
"Foreign Company is defined under Section 2 (42) of the Companies Act, 2013 (the Act) as any company or body corporate incorporated outside India which (a) has a place of business in India by itself or through an agent, physically or thorough electronic mode and (b) conducts any business activity in India in any other manner," the minister said. As many as 78 foreign companies were registered in the country under the companies law in the last financial year, according to official data. In 2019-20, a total of 124 foreign companies were registered in India. The count was at 118 in 2018-19. The data was provided by Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply to Rajya Sabha on Tuesday. "Foreign Company is defined under Section 2 (42) of the Companies Act, 2013 (the Act) as any company or body corporate incorporated outside India which (a) has a place of business in India by itself or through an agent, physically or thorough electronic mode and (b) conducts any business activity in India in any other manner," the minister said. To a query on whether certain foreign companies /entities are conducting online activities without getting themselves registered, Singh said no such complaint against any unregistered foreign company has been received. In a separate written reply, the minister said the government has undertaken a special drive for identification and striking off of shell companies. While noting that there is no definition of the term 'shell company' under the Companies Act, 2013, he said, "it normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose such as tax evasion, money laundering, obscuring ownership, benami properties etc". The Special Task Force set up by the government to look into the issue of shell companies has among other things recommended the use of certain red flag indicators as alerts for identification of such companies. During the period from 2018 to June 2021, a total of 2,38,223 companies were struck off from the official records under Section 248 of the Act. Under Section 248, a company can be struck off from the official records subject to certain conditions. These include instances where the Registrar of Companies has a reasonable cause to believe that companies are not carrying on any business or operation for two immediately preceding financial years and have not made any application within such period for obtaining dormant company status. To a query on whether it is a fact that the government has recognised the land rights as human rights, Singh said that as per inputs provided by the home ministry, there is no document in custody which shows that land rights has been recognised as human rights. "As per Section 2(d) of the Protection of Human Rights Act, 1993, 'human rights' means the rights relating to life, liberty, equality and dignity of the individual guaranteed by the Constitution of India or embodied in the international covenants and enforceable by courts in India," he added.
Source: Economic Times
Govt must lower tariff protections for domestic manufacturers to spur them to become globally competitive As this newspaper recently reported, India’s average applied import tariff fell to 15% in 2020 from 17.6% in the previous year. That may not seem like much in absolute terms, but it is the biggest annual fall in a decade. That said, the rate itself is higher than the 13.5% that prevailed in 2014. The country’s trade-weighted average tariff—total customs revenue as percentage of overall import value— eased for a second straight year, to 7% in 2019 from 10.3% in 2018, the lowest level since 2014, as per the latest World Trade Organisation (WTO) data. While successive governments, over the years, have attempted to bring down duties, in reality, they have been loth to do so; local producers have lobbied hard to keep tariffs elevated in order to protect their businesses. That’s despite a clutch of economists, including former CEA, Arvind Subramanian and former NITI Aayog vice-chairperson Arvind Panagariya, arguing in favour of an open economy that would help boost the country’s export, creating jobs in large numbers. India needs to break out of the import substitution trap before it can become an export powerhouse. After all, one of the objectives of having a strong export base is to be able to import those goods that the country cannot produce efficiently enough, without creating a big trade deficit. Unfortunately, though this government too prefers to look inwards and stay protectionist. The government is now working on a comprehensive review of the numerous exemptions on customs duties—some 400 of them—and hopes to have a new duty structure by October. The exercise is important, given the many anomalies. However, in the past, revenue considerations have almost always overwhelmed the need to have a duty structure that is free of distortions. Also, this government has made no secret of the fact that it wants to promote manufacturing locally; going by the enormous delays in disbursing refunds to exporters, it would appear that boosting exports is almost an afterthought. FM Nirmala Sitharaman said in her FY21 Budget speech that the focus of the rejigging exercise needs to be easy access to raw materials and exports of value-added products so as to promote local manufacturing and enable India to become part of the global supplychain. The point is the country’s manufacturers must want to be part of this supply-chain rather than only wanting to cater for the local markets. Given governments continue to pander to local manufacturers—by keeping import duties elevated—there is little reason for them to aspire to become exporters. A protectionist approach keeps industry from building scale and leaves it globally uncompetitive. What is needed is a plan to boost exports—not necessarily by incentivising them through schemes like MEIS or SEIS which are in conflict with multilateral trade rules—but by ensuring that the tax content in exports is expunged, the infrastructure is top-class and the labour laws are flexible. Moreover, import duties—for components and raw materials—need to be zero or low and stay that way. This would allow manufacturers to become efficient and compete in the world markets. As Biswajit Dhar, professor, JNU, wrote in these pages, successive governments have remained focused on trade liberalisation but have largely ignored the need to work towards improving the competitiveness of domestic enterprises. Unless there is a low and stable tariff regime, companies will not be encouraged to think global and invest for the long term. And until that happens, India cannot become part of the global supply-chain.
Source: Financial Express
Tamil Nadu should come out with a separate export policy, said A. Sakthivel, chairman of Apparel Export Promotion Council and Federation of Indian Export Organsiations. In a memorandum to Chief Minister M.K. Stalin, he said that with ₹2.10 lakh crore worth exports, Tamil Nadu accounted for 10 % of total exports from India in 2019-2020. In a move to give an impetus to exports, the State should form an Export Promotion Board and have a separate export policy. Currently, Indian garment exports are mostly limited to cotton fibre-based products. This fulfils the need of overseas buyers for three months only. To acquire business throughout the year, the textile units in the State should maximise production of synthetic fibre garments/apparels. Considering the potential in this sector, the State should have an exclusive park to develop synthetic fabrics and garments. MMF segment and technical textiles are included among the 10 key sectors in the Production Linked Incentive Scheme announced by the Union government. The units coming up in the park can leverage on the benefits from the scheme too. The Government of India has announced a scheme of Mega Investment Textiles Parks (MITRA) and Tamil Nadu can set up parks for synthetic garments, garment accessories and textile machinery under the scheme. The two sea ports in Tamil Nadu one should be upgraded to accommodate mother vessels, he said.
Source: The Hindu
The ongoing version of the scheme i.e. Amended TUFS (ATUFS) launched in January 2016 aims to augment investment, productivity, quality, employment, exports alongwith import substitution. Minister of State for Textiles, Darshana Jardosh has informed that with a view to catalyze technology upgradation and modernization in textile industry in the country to make it globally competitive, Ministry of Textiles is implementing Technology Upgradation Fund Scheme (TUFS) since 1999. The ongoing version of the scheme i.e. Amended TUFS (ATUFS) launched in January 2016 aims to augment investment, productivity, quality, employment, exports alongwith import substitution. The Government has approved Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) for all export goods excluding garments and made-ups with effect from January 1, 2021 to boost exports and for making them globally competitive. Under this scheme, embedded Central, State and local duties/taxes are refunded to the exporters. On July 14, 2021 the Government has decided to continue Rebate of State and Central Taxes and Levies (RoSCTL) Scheme w.e.f January 1, 2021 till March 31, 2024 for textile exporteRsof Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from RoDTEP scheme for these chapters. One-time capital investment subsidy (CIS) is provided under ATUFS for eligible investment on benchmark machinery. Rates of CIS provided to various segments along with ceiling under ATUFS are as follows:
Source: India Infoline
Successive governments have remained focused on trade liberalisation but have largely ignored the need to improve the competitiveness of domestic enterprises Almost three decades ago, Narasimha Rao and Manmohan Singh took the bold decision to usher in trade and investment liberalisation, undertaking India’s rapid integration with the global economy. Providing a strong rationale for the government’s decision embrace an open-door policy, Singh argued, “Time has come to expose Indian industry to competition from abroad in a phased manner.” For the Rao government, ushering in trade liberalisation was a priority, since, within a month of taking over, the government introduced changes in import and export policies, aimed at reduction of import licensing, vigorous export promotion and optimal import compression. There was hardly any doubt that India was an enthusiastic participant in the process of global integration. Three decades later, how can the country’s rendezvous with trade reforms be assessed, both in terms of the trajectory India had followed for market opening and the outcomes of this process? More importantly, what are the factors that have contributed to shaping the outcomes? In keeping with the early pronouncements, the government adopted what was then termed as the ‘big bang’ approach, involving steep reductions in import tariffs. By 1992, India’s simple average tariffs were reduced by nearly a third from the 1990 levels, but its trade-weighted tariffs fell by nearly half, to 28%. The Raja Chelliah committee on tax reforms, established in 1991, suggested that the trade-weighted import tariffs should be reduced to 25% by 1995-96. The government went beyond this target, reducing average trade-weighted tariffs to 23.6% in 1996. However, the simple average of tariffs was considerably higher, at 38.7%. The tariff reduction process went cold in the second-half of the 1990s, and, consequently, trade-weighted tariffs remained unchanged by the year 2000, while simple average of tariffs declined marginally to 33.7%. This was the scenario despite the fact that, in 1997, then-finance minister P Chidambaram tried to provide momentum to the trade liberalisation agenda by announcing that around the turn of the millennium India would achieve the average levels of tariffs prevalent in ASEAN countries, which were already close to single-digit in some countries. It may be mentioned here that though India’s average import tariffs did not decline to single-digits by 2000, the government of the day took an important step towards realising this objective. This it did by endorsing the Information Technology Agreement of the WTO, and agreeing to eliminate tariffs on a range of electronic products from the turn of the millennium. The tariff reduction sequence was put back on track in 2002, and by 2008, India’s trade weighted tariff was brought down to 6%. During this period, simple average tariff was reduced from nearly 34% to 12%, and it remained around this level until 2017, after which the tariff reduction process was reversed. Lowering of tariffs notwithstanding, India’s trade liberalisation was never a smooth affair. Tariffs could not be lowered for several important manufacturing industries like automobiles, and average tariffs on agricultural products never came down below 34%. Further, during the Doha Round of negotiations at the WTO, India adopted an agnostic view regarding trade liberalisation, a view that was endorsed by successive governments, irrespective of their political affiliations. Concurrently, however, India has been engaged in negotiating FTAs in its efforts to forge strategic partnerships. But, in the recent years, the officialdom has questioned these agreements, suggesting that trade liberalisation via FTAs have not favoured India. It was this scepticism that explains India’s withdrawal from the RCEP trade deal. Why has India emerged a reluctant liberaliser after the enthusiastic endorsement of trade liberalisation three decades ago? The answer is declining global competitiveness of Indian enterprises in several key manufacturing industries, and of course in agriculture. While unveiling the trade liberalisation agenda, Singh had emphasised the need to increase the efficiency and international competitiveness of domestic entities, as did his successors, but, unfortunately, a coherent strategy was never put in place to realise this objective. Under Singh’s prime-ministership, attention was paid, for the first time, to finding ways to improve the languishing manufacturing sector. The government unveiled the National Manufacturing Policy in 2011, which set the target to increase the share of manufacturing in GDP to 25% within a decade. The NDA government also set a similar target under ‘Make in India’, but the sector’s share remains stagnant, at around 17%. There is no doubt a major limitation of India’s trade liberalisation agenda has caused this situation. Successive governments have remained focused on trade liberalisation but have largely ignored the need to work towards improving competitiveness of domestic enterprises. Thus, while the policymakers have consistently aspired to make the economy as open as those of the ASEAN members, they ignored the fact that proactive governments in these countries had lent support for strengthening manufacturing—critical investments in both physical and human infrastructure and building vibrant innovation systems were the focus areas. In India, there has been discussion aplenty on the importance of these forms of support, but in terms of delivery, it has been like ‘Waiting for Godot’.
Source: Financial Express
The UK government recently launched a consultation on new trading rules that will help countries out of poverty and help British businesses and consumers at the same time. The proposed Developing Countries Trading Scheme (DCTS) aims at boosting free and fair trade with developing nations, supporting jobs and growth across the globe and at home, an official press release said. The proposed scheme would apply to 70 qualifying countries at present and include improvements like lower tariffs and simpler rules of origin requirements for countries exporting to the United Kingdom. The scheme will allow countries to diversify their exports and grow their economies, while British households and businesses benefit from lower prices and more choice. he United Kingdom currently operates a similar scheme rolled over from the European Union (EU), but as an independent trading nation can now take a simpler, more generous, pro-growth approach to trading with developing countries. The scheme will also help lower costs for UK businesses, leading to lower prices for consumers across a range of everyday products, by reducing tariffs on imports from low income and lower middle-income countries.
Source: Fibre2fashion
Vietnam Railways (VNR) has added a new rail freight link from Vietnam to Belgium, with the first train departing from Yen Vien station in Hanoi on July 20 and expected to arrive at Liege City in Belgium. Lorries will then carry the containers to Rotterdam city in The Netherlands. The train carried 23 containers with goods like textile, leather and footwear. The estimated time for the journey is 25 to 27 days. The train will stop at Zhenzhou city of China’s Henan province and connect to the Asia-Europe train to reach its destination. This is the first container freight train operated by the Rail Transport and Trade Joint Stock Company (RATRACO) in conjunction with transport firms from other countries providing logistics services to customers from Vietnam to target destination. Currently, VNR is providing freight train services between Vietnam and China and transiting to Russia, Europe, ASEAN and Central Asian countries. The firm provides full logistics services to customers, according to a news agency report. It is expected that the second train will depart from Yen Vien station on July 27 carrying electronic products and the third one on August 3.
Source: Fibre2Fashion
Bangladesh's success stories need to be promoted in the global arena and CNN will help reach the global audience Bangladesh Foreign Trade Institute (BFTI), a wing of the Commerce Ministry, has tied up with CNN International Commercial (CNNIC), the US-based news channel’s commercial wing, to promote “Made in Bangladesh” products globally. According to a statement, both the organizations signed a non-financial understanding on Wednesday to promote different export sectors of Bangladesh on the CNN network. Achieving the export-oriented growth strategy through public-private collaboration is one of the targets of the deal signed between the bodies. Bangladesh has shown resilience and kept the country's economy moving forward even as the world economy was hit by the Covid-19 pandemic, BFTI said in a statement. Bangladesh's success stories need to be promoted in the global arena and campaigns themed "Made in Bangladesh" will help reach the global audience of CNN, according to the statement. The BFTI will implement the campaign under the direct supervision of a steering committee formed by the Commerce Ministry. This campaign coordination and fund management will be executed by Spellbound Communications Limited, the local facilitation agency of CNN in the name of Spellbound Leo Burnett, the BFTI said. Under the 'Made in Bangladesh' campaign, CNN will develop and execute TVC, Blueprint Bespoke Editorial, Promo, Vignettes and a "Made in Bangladesh" theme week. CNN will also promote five potential export sectors as well as 10 leading export-oriented organisations within the selected sectors. BFTI chief executive officer (in-charge) Md Obaidul Azam and CNNIC director (sales) Abhijeet Dhar signed the instrument on behalf of their respective sides at BFTI office at Karwanbazar in Dhaka. As per the deal, CNN will produce television advertisements, promotional audio visuals and prepare a themed week of 'Made in Bangladesh' and others to campaign for Bangladeshi exports. The Spellbound Communications Limited, the local representative of the CNN, and the BFTI will work together to make the digital campaign a success.
Source: Dhaka Tribune
Indonesia can intensify trade relations with the UK by improving the ease of doing business (EODB) and reducing trade barriers, Head of the Research Center for Indonesian Policy Studies (CIPS) Felippa Ann Amanta stated. "(This was done) in order to be able to compete with other developing countries," Amanta noted in a press release in Jakarta on Tuesday. Amanta remarked that trade relations between Indonesia and the UK can be boosted by utilizing the Developing Country Trading Scheme (DCTS) and the Joint Economic and Trade Committee (JETCO) that was mutually agreed upon. The Developing Countries Trade Scheme, or DCTS, recently launched by the UK after Brexit, boosts the prospects of Indonesia, which had inked the JETCO with the UK, to bolster trade between both nations. The JETCO, which was formed on the recommendation of the Joint Trade Review (JTR) of the two countries, aims to open up opportunities for trade cooperation through enhancing bilateral relations and identifying potential sectors and their obstacles. Citing the Trade Ministry’s data, Amanta pointed to the still low level of trade between Indonesia and the UK. In 2019, Indonesia's exports to the UK were valued at US$1.8 billion, while imports from the UK reached US$965 million. UK's total imports and exports during the same year reportedly reached 692.5 billion dollars and 468 billion dollars, respectively. The Indonesia-UK trade was cumulatively valued at US$2.2 billion in 2020. Amanta believes that Indonesia had huge opportunities to export textile products, footwear, palm oil, forestry products, electronics, rubber, processed foods, shrimp, handicrafts, fish, essential oils, chocolate, and coffee to the UK market. Moreover, Amanta pointed to Indonesia having extensively imported steel, machinery and automotive, basic chemicals, textiles, other chemical goods, electronics, pharmaceutical products, plastics, processed aluminum, and cosmetics. "However, this opportunity to increase exports is accompanied by challenges with the existence of tariff and non-tariff barriers in Indonesian trade regulations and sustainability issues that are closely related to the Good Agricultural Practice (GAP) followed by local farmers," according to Amanta. The CIPS head researcher found protectionist barriers as one of the reasons behind investors’ reluctance to invest in Indonesia Amanta noted that the Job Creation Law and Presidential Regulation (Perpres) 10 of 2021 should be evaluated by the Ministry of Investment in order to remove overlapping regulations at the ministry and regional government levels, as they are often pose obstacles to investment licensing.
Source: Antara News
The Bangladesh Textile Mills Association has started collecting detailed information of the workers and employees of the sector to bring them under the Covid vaccination programme on a priority basis. The government has already started the vaccination programme among the readymade garment workers on priority basis. The BTMA on Monday asked its member mills to provide detailed information, including name and number of national ID card, of their workers and employees in a prescribed form to the trade body by August 3. Earlier, the trade body on July 13 had sent a letter to the health ministry and requested it to bring all the workers and employees of textile mills under vaccination programme considering them as the frontliners amid the pandemic. After getting the BTMA letter, the health ministry asked the director general of the Department of Health to take necessary steps to vaccinate the workers and employees of the sector. BTMA president Mohammad Ali Khokon in his letter to the health ministry said that the government set export earnings target at $51 billion for the current financial year 2021- 22 and the achievement of the target would depend on the performance of apparel and textile sectors. He, however, informed the ministry that the age of the most of the employees and workers of the textile sector were 18-35 years. ‘We have got positive response from the government about the Covid vaccine for the textile mills workers and we have requested all the members to provide the information of their workers and employees to the trade body by August 3,’ BTMA additional director Mansur Ahmed told New Age on Tuesday. The Department of Health is very positive in this regard and they want to calculate the approximate doses of vaccine for the textile mills workers, he said. Mansur hoped that the employees and workers of textile mills would get vaccine on priority basis shortly. According to data, there are 1,521 member mills under the BTMA registration across the country but many of them have remained out of operations.
Source: New Age
