The commerce ministry on Tuesday notified tariff rate quota (TRQ) for certain items including pineapples, tunas, beer made from malt, rum and procedure for imports of those goods under India-Mauritius free trade agreement. The India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA), a kind of free-trade pact, came into effect from April 1. The pact covers 310 export items for India, including food and beverages, agricultural products, textile and textile articles, base metals, electricals and electronic items, plastics and chemicals, and wood. Mauritius benefits from preferential market access into India for its 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel. "TRQ for items...on India-Mauritius CECPA and procedure for such imports is notified," the Directorate General of Foreign Trade (DGFT) said in a public notice. Items that are permitted under TRQ under the pact include pineapples (1,000 tonnes at 30 per cent duty), lichi (250 tonnes at 10 per cent duty), tunas (7,000 tonnes at zero duty), and beer made from malt (20 lakh litres at 25 per cent duty), rum (1.5 million litres at zero duty). The DGFT said all applications must accompany a pre-purchase agreement from one of the eligible exporters of specified items in Mauritius. "At the time of clearance of the import consignment, the importer in India must produce a certificate of origin issued by concerned authorities in Mauritius," it said adding that the year in respect of these imports will be from April to March 31. Allocation will be made equally among the eligible applicant subject to the quantity applied.
Source: Times of India
The prime objective of the scheme is to make manufacturing in India globally-competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies The Union Cabinet is likely to approve on Wednesday a production linked incentive (PLI) scheme for man-made fibre segment and technical textiles with a financial outlay of Rs 10,683 crore over five years to boost domestic manufacturing and exports from the sector, an official said. The proposal is expected to come up before the Union Cabinet meeting on Wednesday, the official added. The Cabinet had earlier approved PLI schemes in 13 key sectors for enhancing India's manufacturing capabilities and exports. After the approval, the textiles ministry would come with detailed guidelines of the scheme for these sectors. The prime objective of the scheme is to make manufacturing in India globally-competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies. It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially. It will also help Indian firms to grow into global champions. India's export of man-made fibre (MMF) garments constitutes only 10 per cent of its total apparel exports, which was about USD 16 billion in 2019-20. Former President of Federation of Indian Export Organisations (FIEO), S K Saraf, said that both MMF and the technical textiles sectors need support from the government because at present their exports' share in the world market is low. "PLI will help in boosting manufacturing and exports. This push is required," Saraf said. Sharing similar views, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that the council has requested the government for the PLI scheme for both these segments as it would help in increasing India's share in world trade. "India is doing 80 per cent cotton and 20 per cent MMF, while the world is doing is other way round. We need to promote these sectors and PLI is a welcoming step in that direction," he said.
Source: Business Standard
“We have submitted a proposal before the government to cover SEZs and EOUs too under the new RoDTEP scheme,” said EPCES chairman Bhuvnesh Seth, adding that the government has assured that a committee is being set up to look at the issue. The Export Promotion Council for EOUs and SEZs (EPCES) on Tuesday sought the benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to be extended to special economic zones and also urged the government to allow them to sell goods in the domestic tariff area. “We have submitted a proposal before the government to cover SEZs and EOUs too under the new RoDTEP scheme,” said EPCES chairman Bhuvnesh Seth, adding that the government has assured that a committee is being set up to look at the issue. The scheme was notified for 8,555 products including employment-generating marine, agriculture, leather, and gems and jewellery sectors in August and aims to refund exporters duties and taxes such as VAT on fuel used in transportation, Mandi tax and duty on electricity used during manufacturing, that were so far not being refunded. On the issue of sales to DTA, Seth said the goods can be sold on duty foregone basis rather than the present arrangement of payment of full customs duties. At present, SEZs are allowed to sell their products in the domestic market but after payment of customs duty. The council has also sought that SEZ units be allowed to do job work for DTA units, grant of infrastructure status to get to priority lending at cheaper rates, simplification of norms for de-notification of zones and exit processes and flexibility of utilization of nonprocessing areas by developers for creation of social infrastructure. EPCES expects exports from SEZs to touch Rs 8 lakh crore in FY22 from Rs 7.55 lakh crore in the previous fiscal. As on August 31, there were 379 notified SEZs of which 267 are operational and 5,559 approved units.
Source: Economic Times
The ministry said the amended rule provides that electronic records submitted through registered account of the taxpayers in the income tax department's portal shall be deemed to have been authenticated by the taxpayer by electronic verification code (EVC). The finance ministry on Tuesday said electronic records submitted through registered account of taxpayers in the income tax portal shall be deemed to have been authenticated by the taxpayer by electronic verification code (EVC). The Central Board of Direct Taxes (CBDT) amended income tax rules on Monday to ease authentication of records submitted in faceless assessment proceeding. The ministry said the amended rule provides that electronic records submitted through registered account of the taxpayers in the income tax department's portal shall be deemed to have been authenticated by the taxpayer by electronic verification code (EVC). "Therefore, where a person submits an electronic record by logging into his registered account in designated portal of the income tax department, it shall be deemed that the electronic record has been authenticated by EVC...," it said. The ministry said this simplified process would also be available to companies, or tax audit cases and they are mandatorily required to authenticate the electronic records by digital signature. "In order to provide the benefit of the simplified process of authentication by EVC to these persons (such as companies, tax audit cases, etc.) , it has been decided to extend the simplified process of authentication by EVC to these persons also," the ministry added. Hence, assessees who are mandatorily required to authenticate electronic records by digital signature shall be deemed to have authenticated the electronic records when they submit the record through their registered account in the Income tax department's portal. Legislative amendments in this regard would be brought in due course.
Source: Economic Times
Industry players also indicate that following the China Plus One strategy, there is at least a 20 per cent shift of exports from that country to India Despite container shortage and a shipping crisis capsizing the sector, India’s textile industry has managed to weave a revival story. It is in a sweet spot, largely because of the China Plus One policy of European and US apparel brands, and the ban on Chinese cotton by the US. Based on the latest available data, the export of ready-made garments (RMG) of all textiles increased 67 per cent during the first five months of the current fiscal year, showing signs of recovery. From April-August this fiscal year, revenue from RMG exports was seen at $6.02 billion, up from $3.6.
Source: Business Standard
Going by the US sign-ups, they often drive the rich country’s agenda on IPRs, digital trade and re-manufacturing A US government report has reignited the debate if free trade agreements (FTAs) are worth it, after all. The report, The Economic Impact of Trade Agreements, was released by the United States International Trade Commission (USITC) in June. US Congress commissioned it. The report says that the trade agreements signed by the US had only a small positive impact on the US economy, trade, and jobs. Using 2017 as the base year, the report estimated a 0.5 per cent ($88.8 billion) increase in real GDP, a 0.3 per cent (485,000) increase in jobs, and slight growth in trade. The findings provide insights for countries currently negotiating more than a hundred FTAs. The US has 14 FTAs in force with 20 countries. But it does not have FTAs with major economies like the EU, China, Japan or ASEAN. The share of FTA partners in the US merchandise exports is 43 per cent. The share becomes less than 13 per cent if trade with neighbours Mexico and Canada under the North American FTA (NAFTA) is excluded. Low duties and complicated rules have increased trade costs and lowered FTA utilisation. Average import duties in the US are 3.7 per cent. Its FTA partners like Singapore allow duty-free imports of all products from all countries. Israel also allows duty-free import of over 60 per cent of products. Elimination of such low duties under an FTA gives little price advantage to exporting firms. Complicated FTA Rules of Origin take away even this little advantage. Rules of Origin define conditions when a product becomes eligible for FTA concessions. The US has negotiated many complicated Rules of Origin to protect its industry. Consider the export of a car from Mexico or Canada to the US under the USMCA (United States-Mexico-Canada Agreement). The carmaker must source at least 70 per cent of the steel and aluminium used from North America, pay factory workers wages exceeding $16 per hour. The car must use fewer imported parts to ensure at least 62.5 per cent local value-addition. The imported content cannot exceed 25 per cent after five years. The rules are also strict for apparel. Under NAFTA, apparel-makers must use fabric and yarn made in the region. For most other US FTAs, the yarn forward rule applies. This means apparel makers must import yarn which must be woven into cloth for making the apparel. The US uses FTAs to push its global trade agenda on intellectual property, e-commerce, old machinery, etc. The WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) outlines the minimum IPR standards members must follow. The US pushes its FTA partners to take onerous TRIPS Plus obligations to ensure greater IPR protection for its pharma and technology firms. The report says that the effects of such provisions are ambiguous. This contradicts most academic writings that say TRIPS has spurred trade in IPR-intensive sectors and TRIPS Plus provisions fare better. On e-commerce, WTO members have agreed to charge no import duty on products transmitted electronically for the time being. It is a big issue at the WTO. The US FTAs include provisions to ensure partners do not renege from the promise at the WTO at a later date. A big battle awaits the issue of disposal of outdated or old gadgets and machinery. Such products are ‘re-manufactured’ and pushed for sale in developing countries. Fearing the import of old technology, many countries have banned the import of such goods. At least 12 of the US FTAs contain provisions prohibiting partner countries from imposing such bans. Many of the US FTAs include provisions requiring domestic policy changes in the partner countries. The US FTA with Korea restricts the support provided by the Korean government to pharmaceutical and medical devices. Technical barriers With average import duties already low, the US uses FTAs to harmonise standards and address technical barriers to trade. It also uses FTAs to drive its global agenda on IPRs, digital trade and re-manufacturing. But only the US can dictate terms. For all other countries negotiating FTAs, here are two pointers. One, the outcome is dependent on the choice of the partner country. To understand, let us divide world trade in manufactured goods into two broad groups. Medium- to hightech goods account for 70 per cent of world trade, and labour-intensive goods like shirts and shoes account for the remaining 30 per cent. Developed countries charge zero or low import duties on most medium- to high-tech goods. And high duties on shirts and shoes, manufactured by poor/developing countries. Now, what would happen when a poor country enters into an FTA with a developed country is easy to guess. The poor country gets preferential access for its shirts and shoes in the developed country. In return, it has to remove duty on most products. The poor country gets additional market access in 30 per cent of products while the rich nation would get additional market access in 100 per cent of products. The resulting zero duty imports may disrupt any domestic programme to enhance manufacturing in medium- to high-tech sectors. Two, appropriate MFN (most favoured nation) duty level is vital for trade. Consider, X, a country with high MFN import duty and a large market, enters into an FTA with Y. This may tempt countries like China to manufacture in Y to export to X. Half the world trade happens at zero MFN Customs duty, and the FTAs account for less than a quarter of world trade. To grow trade and attract investments, countries must reduce MFN tariffs on critical inputs and lower the cost of inputs. The American study is a reminder that FTAs are just one of the many instruments for promoting trade. The writer is an Indian Trade Service officer.
Source: The Hindu Businessline
Goyal who is the union minister of consumer affairs, food and public distribution and textiles, replaced former union minister Suresh Prabhu as the sherpa for the meet The government on Tuesday appointed commerce and industry minister Piyush Goyal as India's Sherpa for the G20. Goyal who is the union minister of consumer affairs, food and public distribution and textiles, replaced former union minister Suresh Prabhu as the sherpa for the meet. According to the ministry of external affairs, India will hold the G20 presidency from 1 December 2022. G20 is a major international grouping that brings together 19 of the world’s major economies and the European Union, with its members accounting for more than 80 per cent of global GDP, 75 per cent of global trade and 60 per cent of the global population. Prime Minister Modi has been leading India’s representation at G20 Summits since 2014. The next G20 Summit is scheduled for 30-31 October 2021 under the Italian Presidency. "India has been a member of the G20 since its inception in 1999. India will be holding the G20 Presidency from 1 December 2022 and will convene the G20 Leaders’ Summit in 2023 for the first time. India will be part of the G20 Troika (preceding, current, and incoming G20 Presidencies) from 1 December 2021 till 30 November 2024," an official statement said.
Source: Business Standard
Of course, Lankan importers haven’t yet defaulted on payments but such issues will surface soon if the forex crisis there isn’t stemmed swiftly, Indian exporters fear. Even as the turmoil in Afghanistan continues to worry Indian exporters, a worsening foreign exchange crisis in Sri Lanka — a larger market with imports of $3.5 billion from this country in FY21 — has multiplied their challenges. Exporters that FE spoke to said they could soon represent to the government to explore various options to address any payment issue that may emerge from the Sri Lankan crisis. These options include a temporary mechanism under which Lankan importers may be allowed to pay up in their local currency. This can then be used by Indian importers to buy merchandise from the island nation, some of the exporters said. However, the problem with such a plan is that India has a decent trade surplus ($2.9 billion in FY21) with Sri Lanka, an official source said. Of course, Lankan importers haven’t yet defaulted on payments but such issues will surface soon if the forex crisis there isn’t stemmed swiftly, Indian exporters fear. “Sri Lankan importers have the ability to pay in their domestic currency but not in dollar,” said Raja M Shanmugham, managing director of garment firm Warshaw International and president of the Tirupur Exporters’ Association. Another option could be to provide some sort of a line of credit (in Indian rupee) to Sri Lanka to enable it to pay for the goods. Ajay Sahai, director general and chief executive at apex exporters’ body FIEO, said the exporters and the government will have to hammer out a solution to this emerging challenge fast. The Sri Lankan economy — which depends heavily on tourism and exports of commercial crops like tea — was battered by the pandemic, as travel restrictions hit tourism. Its GDP contracted by a record 3.6% in 2020 and its foreign exchange reserves plunged by over a half in one year through July to just $2.8 billion. This has led to a 9% depreciation of the Sri Lankan rupee against the dollar over the past one year, making imports more expensive. The island nation is heavily dependent on New Delhi for the supply of a broad range of goods. These include mineral fuel, pharmaceuticals, steel, textiles (mainly fabric and yarn), food products and automobiles. In the first quarter of this fiscal, India shipped out goods worth $1.1 billion to Sri Lanka, up 106% from a year before, albeit on a sharplycontracted base. But its imports from the tiny neighbour stood at $266 million in the June quarter, up 208%, again on a favourable base. Meanwhile, the exporters said supplies to Afghanistan have stopped and prospects of trade with Kabul now hinges on whether New Delhi is going to recognise any government formed by the Taliban. Payments of `700-1,000 crore are stuck since the Taliban takeover of Kabul, they added. India’s exports to Afghanistan dropped 17% last fiscal to $826 million, mainly due to the pandemic. In the first quarter of FY22, the exports jumped 79% to $216 million, aided by a favourable base. The Islamic nation mainly sources food and pharmaceutical products, textiles and garments from this country. India has set an ambitious $400-billion export target for FY22, buoyed by impressive growth so far this fiscal. Outbound shipments in the first five months of this fiscal rose to $164 billion, recording a jump of 67% year on year and 23% from the pre-pandemic (same period in FY20) level. Although Sri Lanka and Afghanistan are still small markets for India, expeditious resolution of any trade issues with these countries will help those, especially small businesses, that are supplying to these nations.
Source: Financial Express
In the last five trading sessions, textile stocks such as Indo Count Industries Ltd, Welspun India Ltd, KPR Mills Ltd and Vardhaman Textiles Ltd, among others, have rallied 10-15%. Shares of textile companies are hogging the limelight . In the last five trading sessions, textile stocks such as Indo Count Industries Ltd, Welspun India Ltd, KPR Mills Ltd and Vardhaman Textiles Ltd, among others, have rallied 10-15%. Recently, textile minister Piyush Goyal said a proposed ₹10,683-crore production-linked incentive scheme for technical textiles and man-made fibre products will be approved by the Cabinet soon. This is expected to bolster domestic manufacturing as well as exports. But this is not the only factor driving optimism towards this sector, which was hit hard by the pandemic. Analysts say India is well placed to benefit from the adoption of the ‘China + 1’ strategy. Under this initiative, global manufacturers have started shifting manufacturing operations from China to alternate sourcing destinations, in an attempt to de-risk their supply chain. "India stands out as a suitable ‘+ 1’ destination due to abundance of raw materials (produces 25% of the world’s cotton), cheaper labour, improving ‘ease of doing business’ and strong manufacturing infrastructure with presence across the value chain," said analysts at Edelweiss Securities Ltd in a report dated 2 September. "This trend is more pronounced now owing to the US Senate passing a bill banning China’s Xinjiang Cotton (20% of the world’s cotton). With retailers across developed countries hesitant to source cotton from China’s Xinjiang region, orders are now being rerouted to India owing to which India is seeing a rise in its market share," added the report. Indian textile players have been witnessing higher export orders and are aggressively adding capacities across spinning, processing and garment manufacturing. Sharing a similar view, analysts at JM Financial Institutional Securities Ltd said, "We believe structural uptick in home textile demand owing to increased ‘work-from-home’ period, higher emphasis on health & hygiene driven by pandemic, duty reimbursement by GOI and market share gain on China+1 theme will drive earnings trajectory going forward." The domestic brokerage house further added that its channel checks suggest healthy order book for exporters, given the sharp recovery in US/EU markets. "Spread between Yarn and cotton prices continue to remain high and should enable yarn producers to report strong earnings for 2QFY22," said the report.
Source: Live Mint
Amazon Global Selling lowers the entry barrier for motivated Indian MSMEs to expand their business and launch their brands globally, from anywhere in India. Amazon India has signed a Memorandum of Understanding (MoU) with the Industries and Mines Department, Government of Gujarat, to help drive e-commerce exports from the state. As part of the MoU, Amazon will train and onboard MSMEs (micro, small and medium enterprises) from the state on Amazon Global Selling, enabling them to sell their unique Made in India products to millions of Amazon customers across over 200 countries and territories. Amazon Global Selling lowers the entry barrier for motivated Indian MSMEs to expand their business and launch their brands globally, from anywhere in India. With this program, homegrown businesses get instant access to global markets from Day 1, benefiting from Amazon’s distribution capabilities and global footprint to scale rapidly and build sustainable exports businesses. Abhijit Kamra, director, global trade, Amazon India said the Amazon Global Selling program has already enabled more than 70,000 Indian exporters to cross $3 billion in cumulative exports, showcasing millions of Made in India products to customers across the world. “The program is witnessing tremendous momentum with increasing interest from exporters across India,” said Kamra. “We remain committed towards making exports easy for Indian businesses and empower them to tap into their true potential.” Amazon will conduct training, webinars and on-boarding workshops for exporters from key MSME clusters like Ahmedabad, Vadodara, Surat, Bharuch and Rajkot. The workshops will focus on sharing expertise and providing training to MSMEs about B2C e-commerce exports and selling to over 300 million people worldwide through Amazon's 17 foreign marketplaces. These courses are designed to provide MSMEs with the knowledge and tools they need to launch their brands and expand their businesses internationally using Amazon Global Selling. Vijay Rupani, Chief Minister of Gujarat said Gujarat has a vibrant gems and jewellery, apparels and textiles and handicraft sector which is held together by lakhs of MSMEs. He said one of the key priorities of the government has been to boost exports from Gujarat. “Through this partnership with Amazon, we aim to empower lakhs of MSMEs in Gujarat to embrace e-commerce exports,” said Rupani. “It will help them leverage Amazon’s global presence to showcase their products to customers across the world. MSMEs taking their local products to global customers will play a critical role in supporting the local economy and display the strength of the state’s manufacturing and innovation prowess.” In January 2020, Amazon made three important commitments to India – digitally enabling 10 million MSMEs in India, enabling exports worth $10 billion and creating 1 million new jobs – by 2025. However, the Confederation of All India Traders (CAIT), which represents 70 million traders has strongly criticized Gujarat Chief Minister Vijay Rupani for the act of Gujarat Government entering an MOU with Amazon to take help of Amazon to boost its exports through Amazon Global selling . CAIT said besides the traders of Gujarat, the traders across the country felt cheated at the hands of Gujarat Government for shaking hands with a known law offender company. CAIT said it will oppose such MOU and will take decision at a meeting of National Trade Leaders to be held on 9th September 2021. The conference will be attended by trade leaders from all States, for finalising a strategy for a national campaign ‘Halla Bol on E-Commerce.’ CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal while strongly criticising the Gujarat Government alleged that the Union Government's statutory bodies Competition Commission of India and Enforcement Directorate are conducting investigation against Amazon for indulging into anti-competitive practices and violation of e-commerce rules as also violation of FEMA (Foreign Exchange Management Act). But the Gujarat Government is shaking hands with Amazon for boosting sales of its products. Bhartia and Khandelwal said that this act of Gujarat Government is leading to make products of Gujarat captivate at the hands of Amazon. “Does Gujarat Chief Minister know the on-ground operations of Amazon or before taking such a decision, has he gone through various charges levelled against Amazon. Has he consulted the Union Government before taking such a decision,” alleged Bhartia and Khandelwal. Bhartia and Khandelwal said that they will raise this issue with BJP President J.P.Nadda and Union Commerce Minister Piyush Goyal and apprise them with the political consequences of this act of Gujarat Government.
Source: Business Standard
Fitch Ratings has kept India’s sovereign rating unchanged at BBB- with a negative outlook owing to a rise in public debt ratio and uncertainty on debt trajectory. The rating remains unchanged from April this year. Fitch Ratings has kept India’s sovereign rating unchanged at BBB- with a negative outlook owing to a rise in public debt ratio and uncertainty on debt trajectory. The rating remains unchanged from April this year. “Negative trigger (is) failure to reduce the fiscal deficit to a level consistent with putting government debt/GDP on a downward trajectory,” analysts at the agency said at the Global Sovereign Conference 2021 Tuesday. The agency noted reforms announced by the Indian government including the production-linked incentives scheme to attract foreign direct investment, privatisation, the national monetisation pipeline and reforms for the labour and agriculture sectors. Analysts cautioned that the debt burden for the government could rise if fiscal measures announced in 2020 were to be gradually removed. The agency had in April forecast a 12.8% recovery in GDP in fiscal year ending March 2022 (FY22), moderating to 5.8% in FY23, from an estimated contraction of 7.5% in FY21. It had also flagged increasing downside risk to the outlook from the surge in Covid-19 cases.
Source: Economic Times
Bangladeshi investors will get tax exemption and duty free facilities if they invest in Uzbekistan, Sardor Umurzakov, deputy prime minister of Uzbekistan, said on Monday. Bangladeshi businesses will also get policy supports for joint ventures, Umurzakov added. Umurzakov offered the benefits to Bangladesh at a view exchange meeting between the leaders of FBCCI, the top business association of Bangladesh, and the representatives of business community of Uzbekistan at the International Trade Centre in Tashkent. Umurzakov also assured of offering easy visa facilities to the investors and tourists from Bangladesh. Attending the meeting, Salman F Rahman, private industry and investment affairs advisers to the prime minister, said it is high time the two countries enhanced the bilateral trade between them. Salman F Rahman also said there are many textile products that are not being produced in Bangladesh but Uzbekistan is producing, hinting at scopes of cooperation in textile sector. Moreover, as Bangladesh imports fabric and raw materials to make garment items, Uzbekistan can take the advantage, Salman F Rahman added. Highlighting Bangladesh’s success over the past decade, the adviser said Bangladesh has had a steady climb in the rankings of progresses in South Asia. On behalf of the FBCCI, Bangladeshi investors discussed the possibility to accelerate investment and cooperation in six sectors -- pharmaceuticals, IT, textile, construction agriculture, and ceramics.
Source: The Independent
Industry official says surge came on back of forthcoming Christmas season Exports of home textile, men’s garments, cotton fabric, jerseys, T-shirts, rice, fruits and vegetables increased in August 2021 compared to the corresponding month of 2020, announced Adviser to Prime Minister on Commerce Abdul Razak Dawood. “However, exports of surgical instruments, fish and fish products, cement, tents and canvas, wood and articles of wood decreased during the same period,” he said in a tweet on Monday. “In terms of geographical area, exports to the US, China, the UK, the Netherlands, Germany and Spain increased while those to Afghanistan, Denmark, South Korea, Indonesia, Singapore and the Czech Republic decreased during August 2021 as compared to August 2020.” The adviser added that exports of services increased 6.4% to $483 million during July 2021 against $454 million during July 2020. Union of Small and Medium Enterprises (UNISAME) President Zulfikar Thaver told The Express Tribune that exports of a few textile items had surged owing to the forthcoming Christmas season. He elaborated that foreign businessmen placed orders for the Christmas season from July-November every year, which helped lift exports. One major factor which caused a decrease in exports of canvas, tarpaulins and tents, cement and other commodities was the exorbitant increase in freight cost. “In addition, the local demand for cement has soared because of government’s measures aimed at supporting home financing,” he pointed out. He was of the view that the uptrend in imports would continue until Pakistan curtailed inward shipments of food items, luxury goods and cars. Just like mobile phones, Pakistan should manufacture solar panels locally and enhance auto parts production, which fell in recent years, he demanded. Medicines are being imported in massive quantities, therefore, it is important for the government to extend complete support to the pharmaceutical sector to enable it to increase production of superior types of medicines and medical equipment in Pakistan. “We need to increase exports of items with GI (Geographical Indication) tag, traditional and non-traditional goods,” he emphasised. “A strategy is needed in this regard.” Arif Habib Limited economist Sana Tawfik said that the uptick in trade deficit during August was primarily due to the increase in imports of goods. Although the breakdown of import data was awaited, she was of the view that the import growth was led mainly by machinery, petroleum and food categories. “There may be one-off items as well, such as higher vaccine imports,” the analyst said. Pakistan Businesses Forum Vice President Ahmad Jawad stated that Pakistan recorded its highest-ever trade deficit of $4.2 billion in August 2021, an increase of 144% over previous year. He underlined that the country imported merchandise worth billions of dollars every month but it could not bear such a high outflow of foreign exchange. He stressed that a modest recovery was needed in Pakistani rupee and the State Bank of Pakistan should take notice of the situation. “It is clear that the SBP is using exchange rate depreciation as a tool to make imports expensive but so far this mechanism has failed to arrest the rise in imports,” he said.
Source: Tribune
The Pakistan Yarn Merchants Association (PYMA) has appealed Prime Minister Imran Khan to take measures for reducing the cost of production of value-added textile industry, in view of the shortage of cotton, cotton yarn and the skyrocketing prices and allow dutyfree import of cotton and cotton yarn from Turkey, India and Uzbekistan by land to help exporters compete in the ongoing price race in international markets. In an appeal to the prime minister, Hanif Lakhany, vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and senior vice chairman of Pakistan Yarn Merchants Association (PYMA), Farhan Ashrafi, vice chairman of PYMA and convener FPCCI’s Central Standing Committee on Yarn Trading, said that the valueadded sector in the country is facing immense difficulties due to the shortage and price of cotton and cotton yarn, which are at record levels, as cotton yarn is not available to these export industries even at high prices as per the production demand. “If this situation continues, not only will it be difficult to fulfil export orders, but Pakistani exporters will also lose the ability to compete in [the] global markets, which could have a negative impact on the country’s exports, so the government should seriously consider PYMAs proposal in the best interest of the country’s economy,” they feared. The PYMA office-bearers said the exporters in the value-added sector are reluctant to accept new orders due to difficulties in procuring basic raw materials due to which these orders can be transferred to other countries. Lakhany and Ashrafi appealed to Prime Minister Imran Khan to assist exporters in fulfilling old export orders on time, and taking new orders, while also issuing directives to allow duty-free import of cotton, cotton yarn from Turkey, India and Uzbekistan by land. This will not only reduce the import period of raw materials but will also help reduce the cost of freight charges.
Source: Bol News
The Analysis and Control Laboratory was approved to assist in preventing fraudulent products from being imported. Under the leadership of Minister of Industry Moulay Elalamy, the Ministry approved the Analysis and Control Laboratory (ACLAB) as a legitimate quality inspector at Morocco’s import zones. Ministry officials announced the approval in Official Bulletin No. 7017 at the end of August. According to the bulletin, ACLAB will operate in the Mohammedia industrial zone and will be charged with textiles, clothing, kitchen utensils, tableware, cleaning equipment, and diapers. The company’s period of authority will last for five years. Other companies previously authorized to conduct inspections include Applus Formento, Bureau Veritas, TUV Rheinland, SGS Maroc, and Intertek Labtest. In June of 2020, Morocco initiated a more stringent protocol to inspect imported products. The country aims to prevent products with questionable quality and safety standards from reaching Moroccan consumers. In response to the opposition of several product importers, Minister Elalamy declared at a meeting of the Committee on Productive Sector that he was “at war with junk entering Morocco,” and asserted that “the health and safety of our fellow citizens are not negotiable.” Morocco has recently installed several new protocols to facilitate the importation of goods entering into the country. Officials from several ministries are currently working in tandem to ensure a faster and safer importation process. In addition to hiring independent quality assurance companies, Rabat is also working with global partners to ensure compliance with Morocco’s new quality standards.
Source: Morocco World News
A sector alliance that was formed to tackle issues relating to microplastics has completed the next phase of its project to develop a harmonized industry standard for the supply chain. The Cross Industry Agreement (CIA) has revealed the results of a fiber fragmentation trial that has been carried out in advance of establishing a CEN Standard (from the European Committee for Standardization). Once confirmed, the standard will also become an ISO standard under the Vienna Agreement, providing apparel manufacturers and policy makers with a vital tool as part of wider work to reduce microfibre shedding into the environment. In 2018, five industry organizations agreed to join forces to proactively tackle the issue of microplastics, and signed the Cross Industry Agreement. The initial signatories were European industry associations that represent the European and global value chains of garments and their associated maintenance – the International Association for Soaps, Detergents and Maintenance Products (A.I.S.E.), European Man-Made Fibres Association (CIRFS), European Outdoor Group (EOG), EURATEX the European apparel and textile industry confederation, and the Federation of the European Sporting goods Industry (FESI). Together, the five organisations understood that the very first step to enable global action around the topic, was to agree a harmonised test method which would allow the collection and comparison of globally generated data, to aid the identification of solutions. Details of what the CIA involves can be found at https://euratex.eu/cia. The microfibre shedding test method was developed thanks to the joint efforts and cooperation of experts from 28 European, American and Asian organizations; the result was handed over to CEN in 2020. Since then, representatives from the CIA have been working with CEN to fine tune details in order to meet the requirements for a CEN Standard. To verify the reproducibility of the method, the partners have carried out a round robin trial (RRT)[1] to determine if the method could be replicated in different laboratories and produce similar results. 10 organisations participated in the RRT, which was co-ordinated by the CIA, sending fabric samples to all of the laboratories involved and then collecting and analysing the data. The results from the RRT show statistically significant consistency, both within and between participating laboratories, which demonstrates that the method is both repeatable in the same setting and reproducible in other laboratories. The CIA has submitted the results of the RRT to CEN, with the intention that the CEN Standard is confirmed in the near future. Once that has happened, it will be promoted throughout the apparel industry and will become a key tool for researchers, businesses and governments as they accelerate efforts to reduce microfibre shedding associated with garment production. Jan Robinson, scientific and regulatory affairs director at A.I.S.E., commented: “A.I.S.E. is delighted to see the harmonized method developed by the Cross Industry Agreement progressing towards a European standard. This will provide a robust and recognised basis for a wide range of research, to characterize microplastic releases from textiles and to test potential solutions from industry partners on all sides.” Frédéric Van Houte, director general of CIRFS, adds: “The standardized test method will be a major step forward. Not only will it help to correctly assess microplastics shedding from textiles, but it will also allow the industry to explore measures to reduce it.” Dr. Katy Stevens, head of CSR and sustainability at the EOG, added: “A standardised test method has for a long time been the missing puzzle piece that has prevented significant progress in this area. We are delighted that the standard will soon be available to enable the industry to progress in both understanding, and mitigating the shedding of microfibres from textiles.” Mauro Scalia, director sustainable businesses at EURATEX, commented: “With the Cross Industry Agreement, industry and researchers have now accomplished a lot to shed light on microplastic release from textiles. EURATEX looks forward for the next phase: we need to find feasible and enforceable solutions to tackle such a global issue and use sustainable textiles in the EU.” Jérome Pero, secretary general of FESI, commented: “Our members have been impatiently waiting for a standardized test method for microplastics shedding from textiles which will shed light on microplastics emissions. Thanks to the efficient and collaborative efforts of the Cross Industry Agreement and the research community this will soon become a reality, allowing companies and policy makers to make relevant choices to ultimately tackle microplastics emissions.
Source: Textile World
The pickup came despite disruptions at China's second-largest port last month due to fresh virus outbreaks, which caused congestion and pushed up shipping costs China’s export growth unexpectedly surged in August as suppliers likely boosted orders ahead of the year-end shopping season, offsetting any port disruptions due to fresh outbreaks of the delta virus. Exports rose 25.6% in dollar terms from a year earlier to a record $294.3 billion, more than $10 billion above any previous month. Imports grew 33.1% to $236 billion, also the highest level ever, leaving a trade surplus of $58.3 billion for the month, the customs administration said Tuesday. The pickup came despite disruptions at China’s second-largest port last month due to fresh virus outbreaks, which caused congestion and pushed up shipping costs. Global demand remained resilient, especially from the U.S. and Europe, as retailers probably brought forward their Christmas shopping orders. “The hot season for Christmas came earlier than previous years,” said Xing Zhaopeng, senior China strategist at Australia and New Zealand Banking Group Ltd. in Shanghai. New products from Apple Inc. created demand, while delta virus outbreaks in Southeast Asia probably caused orders to be diverted to China, he said. “It will remain strong before November,” he said. The top three exports by value were electronics, high-tech products, and clothing and clothing accessories, while the top imports were electronics and high-tech products, the data showed. What Bloomberg Economics Says... The strength likely reflects robust external demand as well as diverted orders from Coviddisrupted rival exporters. Looking ahead, though, export growth could cool in the fourth quarter as weaker new export orders hit shipments and the year-earlier base becomes less favorable. -- Eric Zhu, China economist Signs of a slowdown are starting to emerge globally as Covid cases rise, and officials in China have warned of weaker export growth for the rest of the year as risks build. Manufacturing surveys last week showed a contraction in new export orders for a fourth consecutive month in August, which may signal a slowdown in the future. Beyond trade, the economy is taking a knock from a plunge in services activity related to Covid restrictions, a tightening in property curbs and lower infrastructure spending. China’s effective control of virus cases may have led suppliers to divert orders from other Asian countries, which are battling delta outbreaks and struggling to keep manufacturing operations going. That advantage could ease though once the pandemic is contained elsewhere. “A possible reason for strong exports is that given the logistics bottlenecks, exporters brought forward shipments for the coming Thanksgiving & Christmas season,” said Michelle Lam, Greater China economist at Societe Generale SA in Hong Kong. She expects trade to slow down given the contraction in the PMI export orders and the loss in momentum in U.S. consumption. The Meishan terminal at Ningbo port was shut for two weeks in August to contain a virus outbreak there, and even though it was reopened late in the month, it will likely take a while for congestion at the port to ease. China’s continued export strength should provide some support to the economy amid a slowdown in domestic demand after tighter restrictions on the country’s real estate sector and a slower pace of sales of local government special bonds, which are mainly earmarked for infrastructure construction. Policy makers have vowed to ramp up financial support for small businesses and pledged better use of local government bonds as the economy shows further signs of a slowdown. The People’s Bank of China will provide 300 billion yuan ($46.4 billion) of low-cost funding to banks so they can lend to small and medium-sized companies, China’s State Council said last week. It also pledged to “reinforce its policy options,” improving the ability to cope with challenges to ensure a stable economy and employment. “This data may ease the worry about a more abrupt and sharper slowdown in the third quarter although they reinforced the uneven recovery momentum,” said Liu Peiqian, China economist at Natwest Markets in Singapore. “We maintain our view that targeted easing are preferred policy options, such as relending, targeted liquidity operations as well as targeted fiscal easing, and we do not expect any benchmark rate cut in 2021.”
Source: Business Standard
A multipurpose material that can sense strain and temperature and harvest energy from temperature gradients has been developed by researchers in the UK and the Netherlands. The new material, which could be used to create smart human-machine interfaces and health monitoring devices, was created by Emiliano Bilotti, and collaborators at Queen Mary University of London, Imperial College London, Eindhoven University of Technology, and Loughborough University. Current wearable sensors typically have limited mechanical flexibility or require a stiff battery to work. In this research, Bilotti and colleagues have discovered that commercially available Lycra yarns, a flexible material commonly used in textiles, can be modified to show thermoelectricity and strain sensitivity. This is done by adding the conductive copolymer poly(3,4-ethylenedioxythiophene) polystyrene sulfonate (PEDOT:PSS). Using the new material, the team developed a device that can operate in three different modes to sense strain, measure temperature differences or harvest energy. The strain sensitivity can be useful for creating gloves that track hand movements and the thermoelectric property of the material could be used to power such a glove by harvesting energy from the difference between body temperature and the surrounding ambient temperature.
Low-cost fabrication
The Lycra yarns are given strain sensitivity and thermoelectric properties by immersing them in a solution containing PEDOT:PSS. Upon evaporation of the solvent, the conductive copolymer attaches to the surface of the Lycra yarns, conferring electrical conductivity on the material. The researchers noticed that, by applying a high strain on the coated fibres, they could induce the formation of cracks across the surface of the PEDOT:PSS coating. These cracks increase the total surface area of the yarns, and provide the strain sensitivity. This is because they create interconnected patches of the conductive copolymer, which separate with the application of a strain. Increasing the separation between the isolated patches decreases the electrical conductivity of the material, allowing it to be used as a strain sensor. As a result, the material exhibits a large change in resistance even when the sensors are deformed using a low strain of 1%. However, the team found that the thermoelectric properties of the coated yarns are not influenced by strain or the cracks– which do not interfere with the ability of the sensor to measure temperature differences.
Relative temperature
Since the temperature sensitivity of the yarns is based on thermoelectricity, they are not able to sense absolute temperature values. Instead, the material can measure temperature differences as small as 7 oC. This could be used to measure the relative temperature of the human body with respect to the surrounding environment. In addition, the temperature gradients generate a voltage difference due to the thermoelectric effect, which can be used to create electric power. As a proof of concept, the researchers sewed the yarns onto a glove, and used them to sense the temperature of an object relative to that of the hand. Due to the small temperature differences between a human hand and the environment (around 10 oC), the team calculate that a glove containing 1800 strands of yarn could power the necessary electronics for its practical use. The material could also be used to measure the strain of the glove. This would be useful for creating self-powered wearable devices where, for example, the hand position and its temperature could be measured autonomously.
Source: Physics World
