The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 5 FEBRUARY, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-02-04

Item

Price

Unit

Fluctuation

Date

PSF

933.22

USD/Ton

0%

2/4/2016

VSF

1889.24

USD/Ton

0%

2/4/2016

ASF

1896.08

USD/Ton

0%

2/4/2016

Polyester POY

952.22

USD/Ton

0%

2/4/2016

Nylon FDY

2188.66

USD/Ton

0%

2/4/2016

40D Spandex

4787.69

USD/Ton

0%

2/4/2016

Nylon DTY

5663.15

USD/Ton

0%

2/4/2016

Viscose Long Filament

1124.73

USD/Ton

0%

2/4/2016

Polyester DTY

2036.67

USD/Ton

0%

2/4/2016

Nylon POY

2078.46

USD/Ton

0%

2/4/2016

Acrylic Top 3D

1025.93

USD/Ton

0%

2/4/2016

Polyester FDY

2462.24

USD/Ton

0%

2/4/2016

30S Spun Rayon Yarn

2644.63

USD/Ton

0%

2/4/2016

32S Polyester Yarn

1535.10

USD/Ton

0%

2/4/2016

45S T/C Yarn

2431.84

USD/Ton

0%

2/4/2016

45S Polyester Yarn

2097.46

USD/Ton

0%

2/4/2016

T/C Yarn 65/35 32S

2796.62

USD/Ton

0%

2/4/2016

40S Rayon Yarn

2416.64

USD/Ton

0%

2/4/2016

T/R Yarn 65/35 32S

1702.29

USD/Ton

0%

2/4/2016

10S Denim Fabric

1.06

USD/Meter

0%

2/4/2016

32S Twill Fabric

0.89

USD/Meter

0%

2/4/2016

40S Combed Poplin

0.97

USD/Meter

0%

2/4/2016

30S Rayon Fabric

0.71

USD/Meter

0%

2/4/2016

45S T/C Fabric

0.73

USD/Meter

0%

2/4/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15199 USD dtd. 04/02/2016)

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

Exports need more than a lower rupee

For more than a year, India’s exports have been falling steadily and in the current financial year the total value of our exports is expected to be $270 billion, far below than the $310.5 billion in the last fiscal. Thus our current target of doubling exports by 2019-20 will be missed. This fall in exports is despite the fact that in 2015 global exports grew by 2.5 per cent over the previous year. Therefore, fall in demand in markets of our interest only partially explains this fall. No single measure, such as exchange rate adjustment, will reverse this trend. We need to implement a three-pronged strategy. This entails: providing short-term incentives for restoring our exports to traditional markets, medium-term measures to improve our competitiveness and explore new markets, and long-term convergence of trade policy and domestic reform measures, to penetrate into global value chains.

Incentives matter

While some experts say we should do away with incentives and provide improved infrastructure to our exports, incentives do matter in the short run. Because, almost 60 per cent of our exporters are micro, small and medium-sized, and trade incentives are a critical part of their bottom line. What kind of incentives are to be provided to them? While in the current trade policy various incentives are clubbed together under one scheme, which is good for their operations, many of our exporters are unaware of how to avail them. This is particularly true for exporters from the MSME sector who are located in small towns. Most of them feel that accessing incentives for exports is not cost-effective. We need to provide sector-specific incentives, targeting MSME exporters and their clusters in particular. This will help restore their confidence in the system and will provide them the much needed boost to secure their traditional markets. During the remaining part of this fiscal and in the next fiscal, the government should work with export promotion bodies and States to reach out to clusters for making export promotion schemes more effective and targeted to traditional markets.

Improve competitiveness

According to the latest estimate of the World Economic Forum’s Global Competitiveness Report 2015-16, ending five years of decline India jumped 16 places to the 55th position. While this is laudable, many of our competitors in Asia-Pacific such as China, Malaysia, Thailand, Philippines are doing much better. India is experiencing tough competition from ASEAN countries in our traditional markets. This is expected to intensify as all of them are in the top half of the Global Competitiveness Index. Despite this improvement in competitiveness index, as compared to our rivals, our real effective exchange rate is still high and that is why we are getting bottomed-out at the consumer end. We need to improve our competitiveness by creating world class trade-related infrastructure at our borders and behind-the-borders, and by reducing information asymmetry at the users’ end. While our companies are investing to improve their productivity, they are faced with high cost of capital and other inputs and high transaction costs of getting goods from factory to port. Domestic reforms are needed in all input markets to reduce this cost. The government has to work in tandem with States and incentivise them to create world-class infrastructure in trade corridors and ports to reduce business transaction costs.

Coupled with this, India should explore new markets through free trade agreements. Other than quickly concluding our current FTA negotiations with Australia, Canada, European Union, European Free Trade Area and the Regional Comprehensive Economic Partnership of Asia and the Pacific, we should immediately start negotiations with the Eurasian Economic Community, the regional economic communities in Africa such as the East African Community, and the Pacific Alliance and conclude them quickly over the next two to three years. The trouble is that we continue to negotiate for ever, without an end date in mind. Our exports to these markets are far below potential. India is in a position to negotiate asymmetrical agreements with many of these groups as there are complementarities between their demands and our supplies. In the medium-term, this policy will help Indian exporters improve their competitiveness through business certainty.

Global value chains

According to the latest data released by the World Trade Organisation and the OECD, in 2011, India’s backward participation in global value chains was 24 per cent, while forward participation was 19.1 per cent. This means that as compared to domestic content there is greater use of foreign content in India’s export. At a sectoral level, India’s manufactured exports contain more foreign value content while the share of domestic value content is higher in services.

In future, global value chains will get more and more aligned with harmonisation of standards and other regulations determining trade. It is expected that the standards of regulations as in the US-led Trans-Pacific Partnership and the Transatlantic Trade & Investment Partnership will set the benchmark, which will gradually creep into the WTO. India should take all necessary domestic reform measures over the next five to ten years to improve its standards and other regulations to the level set by these mega regional agreements. Moreover, India should make full use of the “produced exclusively” rules of origin criteria as proposed in the RCEP negotiation. This will help Indian companies to create linkages with the value chains developed by Asean countries and other major players in Asia-Pacific such as Australia, China, Japan and South Korea. In sum, along with an effective exchange rate management policy, all these measures will help India in developing a transformative trade policy and will help us balancing our negotiating strength with our share in global exports. We should not treat trade as a residual activity but consider it as a key to our future growth. If we cannot do it over the next 10 years, we will miss the bus again as we did in 1970s.

SOURCE: The Hindu Business Line

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China’s slowdown affecting the Indian exports

The problem with simplistic arguments is that they invariably either remain speculative at best, or fail to make a point altogether. A classic example of this was the speculation that was fuelled last summer in the backdrop of the Chinese currency being devalued and stocks tumbling the world over. Considerable debates and discussions at that time featured in the Indian media, almost all of them drawing the conclusion that India would make the best of China's declining state of affairs, and forge ahead of its neighbour. Nine months later, the truth is far away from the speculative fiction that was being doled out from the television studios day in and out. Such discussions would have well attracted eyeballs among the general public, but those in the know remained circumspect—both among economists as well as industry leaders.

It is important to understand why no such thing has happened, certainly as yet: global economics is hardly about linear arithmetic equations, which is why such emotional predictions go hopelessly wrong and eventually do not make a positive contribution towards the debate. If India has not been able to make a killing, it is for two reasons: first, the importance of China as an economic monolith cannot be wished away; and second, the slowdown is global in nature, and not specific to China alone. In any case, the two are inextricably linked, whether one likes it or not. The continuous slump in India's exports over the same period bears testimony to both contentions.

A look at the trade signs and exchange rates: The numbers have not been encouraging for a while. India's exports during December 2015 were valued at $22,297.48 million (Rs 148,491.18 crore) which was 14.75 per cent lower in dollar terms (9.53 per cent lower in rupee terms) than the $26,154.46 million (Rs 164,127.08 crore) during the same month the previous year. According to the commerce ministry, the cumulative value of exports for the period April-December 2015 was $196,603.94 million (Rs 12,73,322.99 crore)—a drop of 18.06 per cent in dollar terms and 12.67 per cent in rupee terms from $239,928.91 million (Rs 14,58,094.40 crore) over the same period a year earlier. The Federation of Indian Export Organisations (FIEO), which looked at the figures closely, pointed out that jute manufacturing with 135 per cent and handicrafts (handmade carpets only) with 27 per cent were some of the high growth sectors amid the gloomy scenario. Apparel exports too had shown some positive growth during the month.

SOURCE: Fibre2fashion

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Potential in India is unlimited: Canada's Ontario province Minister

Betting for immense possibilities between India and Canada, Minister of Ontario province Michael Chan today said that 'sky is the limit' when it comes to engagements between the two countries. Chan noted that other than United States, which is its neighbour, Canada, Ontario (province) in particular, would like to focus on India to improve relations, including trade. "...in particular, we (Ontario province) want to focus (in) India. Because, India, look, I have been here four days. This is my first trip. The potential I see (in India) is unlimited. Sky is not tall enough for those potential. Everything is kind of like, we can do this, we can do that. "I just mentioned about education and agriculture. It was not in our mind before we started our trip. Landing here, we got two more sectors to focus-Education and agriculture. I think this (India) is one country to go to...," he told PTI. The minister was here as part of the Ontario Business Mission to India. The Ontario delegation has held business meets in the national capital Delhi and other cities in the last few days. The trade between Ontario and India stands at over USD two billion, Chan added.

SOURCE: The Economic Times

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Australia hopeful of securing free-trade agreement with India: Minister

Australia is hopeful of securing a free-trade agreement with India "sometime this year", trade and investment minister said today after the country signed the historic Trans Pacific Partnership Agreement with 11 other nations. Andrew Robb, with his counterparts from 11 other nations signed the Trans Pacific Partnership Agreement (TPP) deal in Auckland in New Zealand. He said the agreement brings 'enormous promise' across both traditional areas of trade and investment and so-called 21st century areas like e-commerce and increasingly important global value chains. "The tariff cuts will deliver material gains for our exporters across the board and place downward pressure on the cost of imported goods for households and businesses, but the benefits that will flow from the creation of a more seamless trading environment are not well understood," Robb said. The minister expressed hope of securing a free trade agreement (FTA) with India 'sometimes this year', a local TV channel reported. He said "there are some quite sensitive issues but we are making good progress," the report said.

According to a feasibility study conducted by both the countries jointly, the comprehensive FTA is likely to result in India gaining between 0.15 and 1.14 per cent of its GDP, while Australia would end up with the gains between 0.23 and 1.17 per cent of its GDP. The two-way trade between India and Australia stood at $12.12 billion in 2014-15. India's foreign investment into Australia is worth $11 billion. While, Australia has invested only $649.37 million during April 2000 and January 2015 in India. Robb further said the TPP would see the elimination of 98 per cent of tariffs among the 12 states. "The embrace of paperless trading, streamlined customs procedures and trading rules, assistance for SMEs, more seamless data flows and greater flexibility with data storage, are all features of the TPP," he added. The agreement also contains provisions to help stimulate new investment and as experience shows, when you deepen trading relations increased investment inevitably follows, he said. The US-led TPP agreement sets in place common rules for labour, the environment and for the first time in a trade treaty, rules to combat bribery and corruption. It will also ensure private companies and businesses are able to effectively compete against State Owned Enterprises.

SOURCE: The Economic Times

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GST may be delayed further as parties get poll-ready

The government announced the schedule of Parliament’s Budget session on Thursday with a hope of getting crucial Bills related to goods and services tax, bankruptcy, and real estate regulation cleared. But the Opposition parties appeared unrelenting as the session coincides with the elections in five states — West Bengal, Tamil Nadu, Kerala, Assam and Puducherry. At the India Investment Summit on Thursday, Finance Minister Arun Jaitley expressed hope that the Opposition will “see reason” to ensure the passage of the goods and services tax (GST) constitution amendment Bill in the coming session. Jaitley said a joint committee of Parliament, which is examining the details of the bankruptcy and insolvency Bill, is expected to submit its report by the first week of March and the Bill might be passed in the Budget session itself. However, until and unless either of the two sides bows down for the sake of legislative reforms, the upcoming session might be unproductive like the previous two because the Opposition commands a majority in the Rajya Sabha.

The Cabinet Committee on Political Affairs (CCPA) on Thursday met to finalise the dates for the presentation of the Railway Budget (February 25), tabling of the Economic Survey (February 26) and presentation of the General Budget (February 29). The President’s address to the joint sitting of Parliament will be on February 23, the first day of the session. The first part of the session will end on March 16, with over a month-long recess from March 17 to April 24. The Houses will meet again from April 25 to May 13. In total, the session meant for financial business of the government will see 31 sittings over 81 days.

Parliamentary Affairs Minister M Venkaiah Naidu said he was optimistic that GST, real estate regulation, and bankruptcy Bills will be passed during the session. He claimed to be in touch with the Congress and other “friendly” Opposition parties. He said the government has already discussed the three points of disagreement on GST with the Congress. Naidu had met Congress President Sonia Gandhi after the Winter session in early January. However, sources in Congress said there has been no effort by the government to build bridges after the Winter session washout. The imposition of President’s Rule in Arunachal Pradesh is a sore point with the Congress. Also, all Opposition parties are preparing to corner the government on its “insensitive response” to the death of Dalit scholar Rohith Vemula. Congress Vice-President Rahul Gandhi had visited the Hyderabad Central University twice to express solidarity with the protesting students. The Congress and other opposition parties also complain of the government’s “misuse” of investigative agencies like the Central Bureau of Investigation and Enforcement Directorate.

Senior ministers met leaders of all political parties to explore whether there was any demand to curtail the session in view of the forthcoming state polls. The five states are scheduled to vote for a new government between the first week of April and first week of May. Both sides were unanimous in their support for a full session. Several members of the Parliament will be busy campaigning for the state polls and their attendance in the House is likely to be intermittent. In 2011, the month-long Budget session recess had been done away with because of the elections in these states. The then government had decided not to send the Finance Bill to the Standing Committees. The recess is the time given to department-related standing committees to examine the Budget proposals of different ministries and departments.

The assembly election dates are likely to be announced by first week of March. Communist Party of India (Marxist) chief and Rajya Sabha MP Sitaram Yechury said every year government should come out with a calendar of Parliament sittings so that there is no confusion. “The Election Commission will then decide the dates for elections knowing when Parliament is sitting. The Prime Minister will also know about the sittings and will remain in the House and not be abroad,” Yechury said.

SOURCE: The Business Standard

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Global Crude oil price of Indian Basket was US$ 31.66 per bbl on 04.02.2016 

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 31.66 per barrel (bbl) on 04.02.2016. This was higher than the price of US$ 30.16 per bbl on previous publishing day of 03.02.2016.

In rupee terms, the price of Indian Basket increased to Rs 2147.13 per bbl on 04.02.2016 as compared to Rs 2056.24 per bbl on 03.02.2016. Rupee closed stronger at Rs 67.81 per US$ on 04.02.2016 as against Rs 68.18 per US$ on 03.02.2016. The table below gives details in this regard:

Particulars

Unit

Price on February 04, 2016 (Previous trading day i.e. 03.02.2016)

Pricing Fortnight for 01.02.2016

(14 Jan to 27 Jan, 2016)

Crude Oil (Indian Basket)

($/bbl)

31.66             (30.16)

26.05

(Rs/bbl

2147.13         (2056.24)

1763.06

Exchange Rate

(Rs/$)

67.81             (68.18)

67.68

SOURCE: PIB

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Innovation, tech to boost Colombian textiles

Colombia's quality, innovation and expertise are some of the key attributes that have kept the textile industry growing at a dynamic pace over the last ten years. Household linens, t-shirts and shapewear were some of the main products exported during 2015 to the U.S. This helped position the country as one of the best manufacturers in the western hemisphere, holding productions for major international brands such as Victoria's Secret, Levi & Strauss Co., Nautica, Inditex, Eddie Bauer, Polo Ralph Lauren, Timberland, Tommy Hilfiger, among many others. Colombia's 10 Free Trade Agreements have helped it strengthen its position as a trade ally for many countries and manufacturers, especially for US companies wanting to penetrate the Latin market. Between January and November 2015 close to 2,028 Colombian textile companies exported their products, recording a historic number of trade transactions between Colombia and the US, ProColombia, the Colombian Government Trade Bureau in charge of promoting exports, foreign direct investment and international tourism said in a press release. Sales accounted for 36 per cent of the total textile exports in 2015. “This share is expected to continue to grow as more innovative fabrics and technologies are being developed by Colombian suppliers as well as trade advantages with the US continue to grow with zero per cent duties, short lead times, and flexible productions,” said Maria Claudia Lacouture, President of ProColombia.

Colombia's textile industry is globally recognized for producing raw materials, functional finishes and accessories. Also for developing new natural and elastic fiber fabrics such as antibacterial coffee-based fabrics, fire-resistant buttons made of retardant additives, sun protection t-shirts, textiles with vitamin E and slimming capsules, anti-humidity shape-wear or body-shaping swimwear. According to ProColombia, these innovative products, which aim to protect the customers' health as well as the environment wellbeing, match the international buyers' current demands. Colombia's textile innovation will be on display at Magic, the world's largest fashion marketplace held every February and August in Las Vegas. For Colombian textile industry, it will be part of a strategic promotion plan created by ProColombia to facilitate business opportunities for Colombian suppliers with American buyers, the release said.

SOURCE: Fibre2fashion

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The Textiles Industry in the United States

The U.S. textile industry is one of the more important employers in the manufacturing sector, with 232,000 workers, representing 2 percent of the U.S. manufacturing workforce. The United States is a globally competitive manufacturer of textiles, including textile raw materials, yarns, fabrics, apparel and home furnishings, and other textile finished products. Our strength is in cotton, manmade fibers, and a wide variety of yarns and fabrics, including those for apparel and industrial end-uses. Textile industry workers are highly skilled and the industry is technologically advanced, with investments of $1.6 billion in total capital expenditures in 2013. In recent years, U.S. textile companies have focused on retooling their businesses, finding more effective work processes, investing in niche products and markets, and controlling costs. The industry is globally competitive, ranking fourth in global export value behind China, India, and Germany. U.S. exports of textiles increased by 45 percent between 2009 and 2014, to $18.3 billion.

SOURCE: The News Portal

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Malaysia gets off the block to ratify TPP

Malaysia's eagerness for the Trans Pacific Partnership deal became apparent almost a week before the formal signing of the agreement in Auckland, New Zealand today. The Malaysian Parliament approved the country's participation in the 12-nation trade bloc on January 27 with 127 votes in favour of the agreement, while 84 voted against. A day later the Senate also gave its approval for the country to sign and ratify the trade deal. International Trade and Industry Minister Mustapa Mohamed signed the landmark trade pact on behalf of Malaysia in Auckland today. He said the textile, electrical and electronics, palm oil and rubber industries were also among sectors that were keen to exploit opportunities arising from an expanded market and lower tariffs under the new pact. “We believe market access is very important for Malaysia especially with countries we don't have free trade agreements such as the US, Canada, Mexico and Peru. Market access is indeed one of the reasons we are in the TPP,” he said at a joint press conference with 11 other signatories to the deal. The US-led trade deal is aimed at spurring trade in the Pacific region. Signatories include Brunei, Chile, New Zealand, Singapore, Australia, Canada, Malaysia, Japan, Mexico, Peru, the United States and Vietnam. The 12 countries have two years to ratify the agreement before it comes into force in 2018.

SOURCE: Fibre2fashion

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Cut in power tariff for industry: APTMA for translating PM's commitment into action

Tariq Saud, Chairman All Pakistan Textile Mills Association (APTMA), has said the Prime Minister's commitment to the business community of reducing power tariff for industry by Rs 3 per Kwh is not being implemented in its true spirit, resultantly it would not restore viability of the industry. "The ECC announced to adjust the tariff reduction against the Fuel Price Adjustment effective from 1st January, resultantly the total tariff remains at Rs 12 per Kwh net of fuel adjustment instead of Rs 9 per Kwh being paid by the regional competitors," he said. Furthermore, he said, the federal government has also not honoured its assurance of supplying natural gas at Rs 600 per MMBTU this year to the Punjab-based textile industry. The chairman APTMA said that both the finance minister and petroleum minister had assured of supplying RLNG at $9 dollar per MMBTU during this winter. "But this commitment has also not been fulfilled by the government," he added. "As many as 120 out of 240 mills have closed down their operations in Punjab due to an unviable energy price," he deplored. The government has billed the RLNG at Rs 1122.88/MMBTU to the Textile Industry for the current fortnight. Prior to it, the SNGPL has charged the industry at Rs 1058.55 and Rs 1120.74 per MMBTU for earlier two bills, he said. Tariq said that Pakistan would not achieve growth target if the government failed to facilitate the textile industry in its just demand for a regionally competitive energy pricing and refund of all taxes on exports. "How will the industry operate if the commitment made by the highest office with the industry is not honoured," he questioned. He has urged Prime Minister Nawaz Sharif to take stock of the situation and direct the ministries concerned to implement his announcement in true spirit and save the textile industry from a total collapse, particularly in Punjab.

Reiterating minimum agenda for the restoration of viability and growth of industry and exports, he appealed to the prime minister for immediate implementation of announcement of reducing electricity tariff effective from 1st January, 2016 by Rs 3/KWh through slashing the surcharges levied on the base tariff, to bring tariff for industry at Rs 9/KWH which is at par with the region. In addition, he demanded the withdrawal of GIDC from the Textile Industry completely to save the export oriented textile industry of the country. The chairman APTMA demanded the immediate payment of all pending refunds to the industry accumulated on account of sales tax, income tax, customs & textile policy initiatives "Actions for zero rating of exports by providing DLTL @ 5% against export of Yarns, Fabrics, Made-ups and Garments and safeguard to the domestic industry from dumped/subsidised import of synthetic yarns and fabrics meant for domestic consumption are also required to take on urgent basis," he demanded.

SOURCE: The Business Recorder

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Hong Kong eyes strengthening business ties with India

Pushing for an investment promotion agreement, Hong Kong today called for strengthening business ties with India and boosting bilateral trade. "India is Hong Kong's seventh-largest trading partner globally, with bilateral trade of USD 23.7 billion last year. We are looking at strengthening business ties with India and increase trade manifold," Hong Kong Trade Development Council (HKTDC) Executive Director Margaret Fong told reporters here. Hong Kong and India enjoy strong ties formed over more than 150 years of business and cultural links, Fong said. In 2015, India was Hong Kong's fourth-largest export market with shipments expanding 8.1 per cent y-o-y to USD 13.1 billion. On the other hand, India was Hong Kong's ninth-largest source of imports in 2015, amounting to USD 10.6 billion, said Fong, who is leading a business delegation to India.

HKTDC, the global marketing arm for Hong Kong-based manufacturers, traders and service providers, has a proven track record in helping Indian businesses expand into new markets using the special administrative region's platform, Fong added. "With India's tremendous economic potential, trade and investment between Hong Kong and India are expected to expand continuously in the coming years. "The Investment Promotion and Protection Agreement (IPPA) will further strengthen the economic and investment ties between the two places, bringing mutual economic benefits," Hong Kong Special Administration Region Chief Executive C Y Leung said in a statement. "Hong Kong and India will launch negotiations on an IPPA," Leung added. Many Indian companies have established offices in Hong Kong. As of June 2015, there were 12 Indian companies with regional headquarters in Hong Kong, 15 with regional and 37 with local offices. The range of businesses include trading, banking, IT and logistics. Leading Indian companies with operations in Hong Kong include Bank of India, UCO Bank, Jet Airways, Infosys and Tata Group.

SOURCE: The Economic Times

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Trans-Pacific Partnership trade deal signed

The Trans-Pacific Partnership (TPP), one of the world's biggest multinational trade deals, was signed by 12 member nations on Thursday in New Zealand, but the massive trade pact will still require years of tough negotiations before it becomes a reality. The TPP, a deal which will cover 40 per cent of the world economy, has already taken five years of negotiations to reach Thursday's signing stage. The signing is "an important step" but the agreement "is still just a piece of paper, or rather over 16,000 pieces of paper until it actually comes into force," said New Zealand Prime Minister John Key at the ceremony in Auckland. The TPP will now undergo a two-year ratification period in which at least six countries - that account for 85 per cent of the combined gross domestic production of the 12 TPP nations - must approve the final text for the deal to be implemented. The 12 nations include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam. Given their size, both the US and Japan would need to ratify the deal, which will set common standards on issues ranging from workers' rights to intellectual property protection in 12 Pacific nations. Opposition from many US Democrats and some Republicans could mean a vote on the TPP is unlikely before President Barack Obama, a supporter of the TPP, leaves office early in 2017.

Hailing the signing of one of the biggest multinational trade deals in history, Obama said the TPP would bolster US leadership abroad and give it an advantage over other leading economies like China. "TPP will bolster our leadership abroad and support good jobs here at home," he said. "Right now, the rules of global trade too often undermine our values and put our workers and businesses at a disadvantage. TPP will change that. It eliminates more than 18,000 taxes that various countries put on Made in America products," Obama said. "It promotes a free and open internet and prevents unfair laws that restrict the free flow of data and information. It includes the strongest labour standards and environmental commitments in history - and, unlike in past agreements, these standards are fully enforceable," he said. "TPP allows America - and not countries like China - to write the rules of the road in the 21st century, which is especially important in a region as dynamic as the Asia-Pacific." Obama asked lawmakers to enact the deal into law as soon as possible so that the American economy can immediately start benefiting from the tens of billions of dollars in new export opportunities. "We should get TPP done this year and give more American workers the shot at success they deserve and help more American businesses compete and win around the world," Obama said.

US Trade Representative Michael Froman has said the current administration is doing everything in its power to move the deal and on Thursday told reporters he was confident the deal would get the necessary support in Congress. In Japan, the resignation of Economics Minister Akira Amari - Japan's main TPP negotiator - may make it more difficult to sell the deal in Japan. There is wide spread grassroots opposition to the TPP in many countries. Opponents have criticised the secrecy surrounding TPP talks, raised concerns about reduced access to things like affordable medicines, and a clause which allows foreign investors the right to sue if they feel their profits have been impacted by a law or policy in the host country. In New Zealand on Thursday more than 1,000 protesters caused traffic disruptions in and around Auckland and police said a large number of police have been deployed. Chile's Foreign Minister Heraldo Munoz predicted "robust democratic discussion" in his South American nation.

Australian Trade Minister Andrew Robb said the agreement would be tabled next week in parliament. Opposition to the deal in Australia has been building, but Robb was confident it would be approved, despite the government not control the Senate. Canada's new government signed the deal on Thursday, but Trade Minister Chrystia Freeland has said "signing does not equal ratifying." She emphasised that the government committed itself to a wide-ranging consultation on the TPP during its election campaign and that process was currently underway. Secretary of the Economy for Mexico, Illdefonso Guajardo, said the TPP would be voted on before the end of 2016, while Malaysia said the deal had already been approved, although some legislative changes were still needed.

SOURCE: The Business Standard

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