Textile Raw Material Price 2016-02-25
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
974.35 |
USD/Ton |
0% |
2/25/2016 |
|
VSF |
2009.98 |
USD/Ton |
0.15% |
2/25/2016 |
|
ASF |
1911.17 |
USD/Ton |
0% |
2/25/2016 |
|
Polyester POY |
985.08 |
USD/Ton |
0.47% |
2/25/2016 |
|
Nylon FDY |
2206.08 |
USD/Ton |
0% |
2/25/2016 |
|
40D Spandex |
4825.80 |
USD/Ton |
0% |
2/25/2016 |
|
Nylon DTY |
1164.32 |
USD/Ton |
0% |
2/25/2016 |
|
Viscose Long Filament |
2022.24 |
USD/Ton |
0% |
2/25/2016 |
|
Polyester DTY |
2095.01 |
USD/Ton |
0% |
2/25/2016 |
|
Nylon POY |
1054.78 |
USD/Ton |
0.15% |
2/25/2016 |
|
Acrylic Top 3D |
2466.52 |
USD/Ton |
0% |
2/25/2016 |
|
Polyester FDY |
5708.23 |
USD/Ton |
0% |
2/25/2016 |
|
30S Spun Rayon Yarn |
2726.96 |
USD/Ton |
0% |
2/25/2016 |
|
32S Polyester Yarn |
1577.96 |
USD/Ton |
0% |
2/25/2016 |
|
45S T/C Yarn |
2451.20 |
USD/Ton |
0% |
2/25/2016 |
|
45S Polyester Yarn |
2880.16 |
USD/Ton |
0.53% |
2/25/2016 |
|
T/C Yarn 65/35 32S |
2420.56 |
USD/Ton |
0% |
2/25/2016 |
|
40S Rayon Yarn |
1731.16 |
USD/Ton |
0% |
2/25/2016 |
|
T/R Yarn 65/35 32S |
2114.16 |
USD/Ton |
0% |
2/25/2016 |
|
10S Denim Fabric |
1.07 |
USD/Meter |
0% |
2/25/2016 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
2/25/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
2/25/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
2/25/2016 |
|
45S T/C Fabric |
0.74 |
USD/Meter |
0% |
2/25/2016 |
Source : Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15320 USD dtd. 25/01/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The textile industry, which is the country's second largest employer after agriculture, contributes nearly 14 per cent to industrial production and 4 per cent to the GDP has pitched for incentives such as lowering excise duty on man-made fibre and filament by half and changes in labour laws in the budget for next financial year. The textiles industry has demanded better market access to major markets like the US and EU via trade pacts to help realize its untapped potential. Confederation of Indian Textile Industry (CITI) Secretary General Binoy Job said that the textile sector can provide jobs to unskilled labourers and women as well, even in rural areas, if government provides support in the form of higher market access, changes in labour laws and opportunities to scale up. CITI said in its pre-budget memorandum that by halving the excise duty from 12 percent to 6 percent would certainly reduce the tax burden on MMF reducing its cost to the weaver.
In India cotton consumption dominates with 65 percent and Man-made Fibre and Filament (MMF) at 35 per cent. The main reasons for lower consumption of MMF in India is higher cost which could be as a result of manufacturing cost, excise duty and oligopolistic market situation. The need for reduction in excise duty is established and therefore it should be given serious consideration. Further, as there is no much access to major markets like the US and European Union, to address this issue, Government should conclude free trade agreement with EU at the earliest and put in place a similar arrangement with US. Government should also bring substantial changes in labour laws and make them more flexible. It will give the textile industry an opportunity to scale up. The Union Budget for 2016-17 will be presented on February 29.
SOURCE: Yarns&Fibers
Dye industries operating in Faridabad has demanded that the government should provide them a dedicated textile park with a common treatment plant (CTP) having sufficient water supply in response to the notice received from the National Green Tribunal (NGT) as illegal. The directions of NGT came while hearing a petition filed by two Faridabad residents who alleged that over 150 jeans dyeing industries in the district were running without the consent of the Haryana Pollution Control Board (HPCB). They claimed that the dyeing industries were directly discharging effluents into drains without any treatment and have also not installed any effluent treatment plant in their premises. The Executive Director of Faridabad Industries Association (FIA) Col. S Kapoor said that dye industries are ready to move if Government allocates a dedicated textile park to the industry with a centralised treatment plant. He recalled that 25 years back Supreme Court ordered to shift dye industries from Delhi to Faridabad. The industries were allotted a dedicated land and at that time there were no residential areas around that. He further added after urbanization, residential areas came up near to the industries and that was when the problems started. He demanded that the textile park should be allotted to them near Faridabad because the entire business of the industries is in Delhi-NCR. If they are forced to go far, their supply line would spread and they won’t remain competitive. FIA hopes that the Government would identify a dedicated place for them this year
SOURCE: Yarns&Fibers
The Indian rupee dropped to an intra-day low of 68.785 against the dollar on Thursday, edging closer to the all-time low of 68.85 it hit in end-August 2013, before closing the session at 68.71. Currency dealers said the central bank had intervened in the market. The rupee hit its all-time low following the contagion in August 2013 after the US Federal Reserve said it would consider tapering its bond purchase programme. Equities too were under pressure and the Sensex slipped below the 23,000-point mark, losing 0.49% to close at 22,976. The broader Nifty dropped below 7,000, giving up 0.69% to close at 6,970.60 points, the lowest close since early May 2014. The rupee has been under pressure with foreign portfolio investors (FPIs) continuing to pull out from the equity market — in 2016 they have sold close to $2.4 billion worth of stocks. Moreover, in the last four sessions, FPIs have sold bonds worth $770.5 million, data from Bloomberg showed.
Jayesh Mehta, MD and country treasurer, Bank of America, pointed out that the sell-off in the bond markets is more noticeable because fresh inflows have dried up. “This sell-off appears more prominent as the fresh inflows have stagnated. Old buyers are still sitting on losses as the currency has depreciated due to global reasons while bond yields have not come off due to the lack of sufficient permanent liquidity in the local system,” Mehta indicated. MV Srinivasan, vice-president, south operations at Mecklai Financial Services, said that the Indian currency’s depreciation on Thursday was led by FPI outflows, possibly sales in the debt market. “The central bank seems to have intervened today at 68.74 levels to the dollar. However, the intervention has not been very aggressive because of which the currency has stayed at lower levels during the day,” Srinivasan said.
Meanwhile, the onshore forwards are also at levels comparable with the lows of late August 2013 with the one-month forward hitting 69.15 level and the three-month forward hitting 69.98 on Thursday. The rupee non-deliverable forward (NDF) market has also seen momentum with the one-month NDF trending at 69.28 and the three-month NDF touching 70 levels as on Thursday evening. The yield on the 10-year benchmark government bonds closed five basis points up at 7.86% on Thursday even as the old benchmark G-sec continues to remain above the 8% mark, according to data from the NDS-OM platform of the Reserve Bank of India. While a shortage of liquidity has been cause for concern over the last few weeks due to a combination of demand-supply mismatch in debt securities, the RBI on Thursday announced Rs 12,000 crore of open market operations (OMO). “The market is not expecting a cooling-off of yields in the near term with additional supply of government securities set to hit the market and no signs of any open market operation purchases by the central bank. As a result, foreign investors want to keep away from putting in fresh funds in this rising yield trajectory,” said a banker on condition of anonymity.
SOURCE: The Financial Express
Rail Budget 2016: Even as freight earnings are set to fall short by over Rs 10,000 crore to stand at Rs 1,11,853 crore in the current financial year, railway minister Suresh Prabhu hinted at a possible downward revision of the rates in the days to come to regain the lost ground in the freight market by boosting volumes. The railway minister’s strategy includes expanding the freight basket, facilitate faster transportation, create necessary infrastructure and rationalise tariff. The freight revenue target for 2016-17 has been fixed at Rs 1,17,933 crore, down from the budgetary estimates of Rs 1,21,423 crore for the current fiscal. “Indian Railways typically has focused on increasing revenues through tariff hikes. We want to change that and challenge our conventional thinking on freight policies to win back our share in the transportation sector,” Prabhu said in his speech. He added that the current tariff structure of Indian Railways has led to outpricing of services in the freight market. A review of tariff policy will be undertaken to evolve a competitive rate structure vis a vis other modes, permit multi-point loading/unloading and apply differentiated tariffs to increase utilisation of alternate routes, Prabhu said in his speech.
With the current demand crunch afflicting the economy, Prabhu did not foresee much growth in traffic for the next fiscal, having projected loading target at 1,157 MT for FY17 compared to the projected 1,107 MT for the current fiscal. Prabhu expects revenue from all principal commodities to grow though marginally. Handling coal will fetch Rs 53,685-crore revenue compared to the projected Rs 52,055 crore in the current fiscal. Similarly, revenue from iron ore transportation, he expects, to go up to Rs 6,967 crore from Rs 6,593 crore a year earlier. Cement would fetch another Rs 500 crore to the current financial year’s estimate of Rs 9,400 crore. Instead of depending hugely upon 10 bulk commodities including coal, iron ore and others that account for 88% of the freight basket, the railway minister wants to look beyond and tap the untapped freight sources like automobiles. He also announced three freight corridors. Plans are afoot to set up rail-side logistics parks and warehousing to facilitate transportation though the PPP mode and to provide last mile connectivity for freight business. Prabhu also said country’s first rail auto hub will be inauguaretd soon in Chennai to attract automobile traffic. Key customer managers will also be appointed to liaison with the major freight stakeholders.
Industry is happy. Hindalco managing director D Bhattacharya said,” The railway budget is customer-centric, both for the passengers and the industry. It is seeking to enhance the competitiveness of railways for goods traffic through announcements of review of the freight tariff structure, direct long term freight negotiations with key partners, container trains with time-table and focus on improving connectivity to ports and speed of freight movement — a win-win for the industry and the railways.” Ficci president Harshavardhan Neotia said initiatives towards developing an integrated railway network, greater emphasis on dedicated freight corridors and improving port connectivity as well as north-east connectivity would go a long way in expanding the freight business. Assocham president Sunil Kanoria said though there have been slippages in the revenue target in the current fiscal, it has got more to do with the overall economic slowdown, more so in sectors like coal, steel, iron ore etc which have been worst hit but have been the major revenue sources for the Railways.
SOURCE: The Financial Express
Regional Comprehensive Economic Partnership (RCEP) negotiations have faced increasing pressure after conclusion of the Trans-Pacific Partnership Agreement (TPP). RCEP was launched by ten ASEAN countries, which covers 16 countries including China, Japan, Republic of Korea, Australia, New Zealand and India to boost free trade by reducing tariffs. As an emerging country and economic growth engine, India holds a significant position for RCEP. For India, the TPP has excessive trade liberalization measures, along with stiff economic constraints and a high-entry threshold. But the RCEP is more flexible and India has good reasons to favor RCEP participation. New Delhi can expand global trade share and boost national economic growth. New Delhi hopes to increase commodities and services exports to 900 billion US dollars in the 2019-2020 financial year; a rise from 465.9 billion US dollars in the 2013-2014 financial year; lifting its global export share from 2% to 3.5%. Since India offers advantages in the fields of information and communication technology, medical treatment, education and more, RCEP could bring greater trade preferences and increase global market share.
New Delhi can promote its strategic and economic position. The Asian-Pacific region is one of the most vibrant areas in bilateral and multilateral free trade agreement negotiations. The TPP, led by the US, and RCEP, led by China, cover 12 countries and 16 countries respectively, accounting for 40% and 30% of economic aggregate of the world. If RCEP gets signed, it will be the largest free trade zone in the world with more than 3 billion people participating. Development of the regional free trade mechanism is vital to the new trade system. If India opposes any regional free trade mechanism, it will probably be excluded from the new Asian-Pacific trade system, which doesn't conform with India's pursuit of a major power position. India has engaged in a "moving eastward" policy. In recent years, New Delhi has upgraded its "looking eastward" policy to "moving eastward," and paid more attention to its political and economic relations with ASEAN. RCEP would advance the "moving eastward" policy. Additionally, New Delhi fears the TPP would negatively impact its exports, but RCEP can enlarge India's economy.
Currently, India has put forward three different tariff preferences during RCEP negotiations. India offered a 42.5% bilateral tariff concession to Australia, New Zealand and China, which have not signed free trade agreements with New Delhi. For those which have signed free trade agreements, India offered a 65% tariff concession to Japan and Republic of Korea, 80% tariff concession to ASEAN. Additionally, 65% tariff concession to ASEAN will take effect immediately, and the rest 15% will be completed in the next 10 years. New Delhi hopes to gain more preferential policies and market access in the field of IT (international technology). Since India's degree of trade freedom is low, the openness will bring high pressure. Nevertheless, RCEP participation will do more good than harm.
The 11th round of RCEP negotiations was held on Feb.14-19 in Bandar Seri Begawan, capital of Brunei. Negotiations had consisted of four group meetings: primary meeting and cargo trade, service trade, investment and rule of origin. Negotiations had focused on market access talks and text discussions in terms of cargo, service and investment, and the 2016 negotiation plan. The 12th round of negotiations will be held on April 22-29 in Perth, Australia.
SOURCE: The CCTV English
India should shed its "long-standing bias against China" and avoid divisions among the five-member BRICS bloc specially in the backdrop of US attempts to rewrite international rules, a Chinese media report said today. "India should focus on how to improve solidarity within BRICS, especially to overcome its long-standing bias against China due to historical reasons. New Delhi believes that Beijing should reflect on why it is always misunderstood by its neighbouring countries. But India also needs reflection," an article in the state-run Global Times said today. "Currently, divisions in monetary policy are particularly sharp among major economies. After the Federal Reserve Board raised interest rates, emerging economies including BRICS are seeing capital outflows. Meanwhile, geopolitical competition in the Middle East and Europe, as well as rising terrorism threats, is influencing the world economy, to which BRICS is not immune," it said.
India which took over the BRICS -- Brazil, Russia, India, China and South Africa -- Presidency is scheduled to host the summit of the bloc later this year which is likely to be attended by Chinese President Xi Jinping. Today's article came ahead of the G20 Finance Ministers meeting starting in Shanghai tomorrow. Additional Finance Secretary Dinesh Sharma and RBI Governor Raghuram Rajan were scheduled to attend the meeting. The BRICS New Development Bank (NDB) headed by eminent Indian banker K V Kamath which is headquartered in Shanghai is set to sign a headquarter agreement with China on Saturday. "The US attempt to write the rules has placed BRICS in a disadvantageous situation. The Trans-Pacific Partnership (TPP) was officially signed in Auckland this month, with no BRICS member yet included," it said.
Prime Minister Narendra Modi has said that during its presidency, India will strive to come up with responsive, inclusive, collective solutions, the article said. "Modi proposed 10 steps at the Ufa conference for boosting cooperation, including a BRICS trade fair, a railway research centre, audit institution cooperation, a digital initiative, an agricultural research centre and a film festival. India is making concrete efforts to enhance BRICS cooperation," it said. "Yet Modi should have come up with more constructive suggestions for global governance. India's economic growth remains the fastest among the BRICS members. As the chair of this year's summit, New Delhi should not only show its strong economic vitality, attract foreign investments, enhance its national strength, but also present itself as a major power on the multilateral occasion," it said. "Apart from holding the pen in writing global financial system reforms and trade system construction, India should play a constructive role in regional and international affairs," it said.
SOURCE: The Economic Times
The Comprehensive Economic Cooperation Agreement (CECA) between India and Australia is likely to be finalised in the next six months, a senior official said today. "The CECA is under negotiation at the moment. We expect it to be concluded in the next six months. This is an important agreement for India and Australia," Amanda Hodges, Senior Trade Commissioner of Australian Trade Commission, said at a media briefing here. The talks for CECA, or Free Trade Agreement ( FTA), between India and Australia started in 2011 to boost bilateral trade and investment. Both sides were expecting to conclude negotiations by December last year, but there were differences in areas like duty cut on dairy products and wines. Several rounds of negotiations have been completed for liberalising trade and services regime, besides removing non-tariff barriers and encouraging investments.
Replying to a query, Hodges said at the moment, six of the top Indian IT companies have made significant investments in Australia. She said Indian IT firms have an opportunity to partner with Australian research institutions and technology companies for process improvements and developing new products. "Several Indian IT companies are already exploring opportunities to invest in Australian startups, commercialise Australian research and integrate novel Australian IT solutions into their supply chain," she said. Australian government's National Innovation and Science Agenda is in the process of establishing "landing pads" in some global innovation hubs.
Landing pads are operational physical spaces in which Australian market-ready startups can access entrepreneurial talent, mentors, investors and a wider-connected network of innovation hubs. She said two landing pads have been established, one each in San Francisco and Tel Aviv. However, Hodges did not spell out clearly whether a landing pad will be established in India.
SOURCE: The Economic Times
South Korean port city of Pohang which houses global steel giant Pohang Steel Company or POSCO is keen to promote economic and investment ties with India including in the steel sector. A high-level business delegation from Pohang led by its Mayor Lee Kang-deok visited India this month to hold discussions both in Delhi and Mumbai (where the delegation was also part of the Make in India week). In Delhi Kang-deok met Steel and Mines Minister Narendra Singh Tomar who invited South Korean firms from Pohang to invest in India taking advantage of schemes launched by the Modi government.
During that meeting, Tomar highlighted some of the Modi government's initiatives such as 'Make in India' and 'Digital India' and "invited South Korea to invest in India and partner by knowledge exchange and technology transfer. It is understood that the Minister explained in detail how the government is improving ease of doing business in India. The issue of investments by POSCO in India also came up for discussions. The talking points included status of Finex-based integrated steel plant proposed to be set up by POSCO (world's fourth largest steel maker) and SAIL; collaboration in R&D and energy efficient, green technologies and waste utilisation; supply of iron ore by NMDC from its mines to the steel mills in the Republic of Korea or South Korea.
Discussions were also held on developing value added products/special steels with collaborative arrangements from steel majors in Korea and design of Slag Granulation Plant (SGP) to introduce the technology in existing steel plants in India. Talking to ET amid his meetings Mayor Lee Kang-deok said, "This is my first visit to India. The country is witnessing fast growth and there are huge opportunities here which South Korean companies can take advantage. POSCO has one of the world's best steel technologies. POSCO is also using FINEX technology." He also invited Indian investments in Pohang besides seeking more Indian students to POSTECH (Pohang University of Science and Technology). It may be pointed out that POHANG mayor took special efforts to celebrate India's Republic Day in 2016. This was Republic Day celebration, the first in any city of South Korea outside Seoul.
SOURCE: The Economic Times
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$ 31.01 per barrel (bbl) on 25.02.2016. This was higher than the price of US$ 30.06 per bbl on previous publishing day of 24.02.2016.
In rupee terms, the price of Indian Basket increased to Rs 2127.01 per bbl on 25.02.2016 as compared to Rs 2061.21 per bbl on 24.02.2016. Rupee closed weaker at Rs 68.60 per US$ on 25.02.2016 as against Rs 68.57 per US$ on 24.02.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 25, 2016 (Previous trading day i.e. 24.02.2016) |
Pricing Fortnight for 16.02.2016 (28 Jan to 11 Feb, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
31.01 (30.06) |
30.05 |
|
(Rs/bbl |
2127.01 (2061.21) |
2040.70 |
|
|
Exchange Rate |
(Rs/$) |
68.60 (68.57) |
67.91 |
SOURCE: PIB
The price of cotton in the international market is now the lowest since August 2009. “This is mainly due to the threat that China (till now a big importer) might offload its reserve cotton in the global markets,” said Prerana Desai, vice-president at Edelweiss Integrated Commodity Management. Cotton futures on the Intercontinental Exchange are down 16 per cent from last July. This would make further export by India unviable. So far this cotton year, India has exported 4.4 million bales (170 kg each). The Cotton Advisory Board was expecting seven mn bales of export this year. At present, export is taking place to Pakistan and Bangladesh. With falling global prices and farmers holding huge stock, and expecting higher demand due to a lower crop, offloading has begun, say trade sources. Prices in the local market have fallen to Rs 33,400 a candy (356 kg) or Rs 9,364 a quintal. Edelweiss, the financial consultancy, expects the downside to Indian prices would be limited. For, at lower prices, demand from exporters and millers will increase.
SOURCE: The Business Standard
Europe's Textile and Clothing Information Centre or CITH has said that the European Union's textile and clothing exporters gained an additional 3.6 per cent market share in third countries. On the imports side, the EU imports rose 9.6 per cent in value terms, due to sharp increases from Asian countries. But imports from the Mediterranean area (Turkey, Egypt, Morocco, and Tunisia) achieved a modest growth or even decreased over the period. The 2015 evolution impacted the overall trade balance of the EU-28 with a deficit widening by 14 per cent which included 29 per cent for textiles and 13 per cent for clothing, CITH said in a report.
Textiles' sales to the US, EU's top market, recorded a growth of 16 per cent, thanks to a favorable exchange rate. Moreover, among the EU top10 customers, moderate expansion was recorded by Hong Kong and China (7 per cent and 6 per cent respectively). On the contrary, exports to Russia fell 27 per cent and exports to Ukraine slipped 1 per cent) on the back of depressed economy in those markets. Clothing exports to its main consumers indicated a higher growth rates than for textiles. Data shows a noticeable growth in the US, Hong Kong, South Korea, Canada and China (with rates between 19 per cent and 22 per cent), which made the US the second largest EU customer and China, the sixth. Exports to the Saudi Arabian and Mexican markets also experienced a significant expansion at 17 per cent and 15 per cent respectively. Clothing exports to Russia and Ukraine declined due to political turmoil.
Textile imports from EU top 20 suppliers were all up, except from Egypt, Thailand and Australia. Among the main suppliers, the US witnessed the highest growth with 16 per cent, followed by China, Pakistan and Vietnam with 11 per cent. Clothing imports coming from most Asian countries recorded double digit growth rates. The top supplier, China, recorded a 6 per cent increase over 2014 with 30 billion of clothing articles sold to the EU market. In second place, Bangladesh recorded a 24 per cent increase in apparel sales to EU members over 2014. Strong imports' upturns were also observed from Cambodia (31 per cent), Vietnam (26 per cent), Hong Kong (25 per cent) and the US (26 per cent). With a 79 per cent increase, Myanmar is now ranking 17th in the top-20 EU's clothing suppliers, the CITH report said. - See more at:
SOURCE: Fibre2fashion
According to CoStar, a commercial real estate research company, the company paid $12.49 million, in a deal that reflects the strong demand for industrial space in the meadowlands. The warehouse was built by Sitex Group, a New York-based owner of industrial real estate. Sitex bought the 7.5-acre property, which formerly held an office building, in 2013 for just under $1 million, according to public records. With North Jersey’s office market languishing, Sitex decided to demolish the office building and built the warehouse. Online shopping has boosted companies’ appetite for warehouse space — especially close to New York City — as consumers expect quick deliveries.
According to broker Tom Vetter, they will continue to see quick absorption of new, quality industrial assets within the meadowlands submarket due to very little land available for development, its close proximity to New York City and the emergence of e-commerce. Sitex is becoming more active in new construction, and has plans for two other warehouse projects in Bergen County — in Ridgefield and Mahwah.
SOURCE: Yarns&Fibers
The government reiterates that Malaysia’s membership in the Trans-Pacific Partnership (TPP) agreement was based on its own term. International Trade and Industry Ministry (Miti) Minister Datuk Seri Mustapa Mohamed said it did not allow foreign interference in its administration and policy-making process. Mustapa assured that the agreement will safeguard Malaysia's liberty and sovereignty, rubbishing claims that it was a form of Western colonialism. Malaysia, he said, will still be able to amend and draft law without any foreign power intervention. "Three most pertinent terms accepted were, firstly; land issues where state governments will still have the autonomy on deciding their terms on land in the state. "Further, Bumiputera policies should be uphold where they should be given priority in terms of licence and permit issuance. "And the subsidy programmes for Bumiputera should be continued without any restrictions," he said at the Ministry of Information, Communication and Culture building, here today. He added that Malaysia will also restrict any western values if found to be against religious teaching. This included pornography sites under the term agreed. As part of his tour across the country to help the public to understand TPPA better, Mustapa had met with some 600 staff at the ministry and delivered details of TPPA.
SOURCE: The New Straits Times Online
2015 was the year that most Malaysians referred as ‘The Year of Price Hike’. This is because the price of most goods and services surged because of the implementation of the 6% Goods and Services Tax (GST), in addition to the increment of toll fares and public transport fares late last year. To most Malaysians, ‘Vision 2020’ and the status of a developed nation, are still far from reach. Earlier this year, the Trans-Pacific Partnership (TPP) was tabled and approved by the Malaysian Parliament. On the 4th of February 2016, the Minister of International Trade and Industry (MITI), Mustapa Mohamed, led the Malaysian delegation and signed the TPP in Auckland, New Zealand. There were protests, not only from the people in New Zealand, where the agreement was signed but also in Malaysia and around the globe. In Malaysia, thousands gathered for the anti-TPP rally at Dataran Merdeka, Kuala Lumpur, where many other historical demonstrations took place. Most of the concerns were involving the Bumiputera rights, public access to affordable drugs, state-owned enterprises, and the increase in the cost of living. In spite of such, the Malaysian government took proactive measures to educate the public by releasing e-books regarding the TPP, in addition to a summary of reports made by PricewaterhouseCoopers and the Institute of Strategic and International Studies (ISIS) on the content of the agreement. The Malaysian government took the stance of signing the TPP because of the potential it has to propel the nation towards a brighter future.
An attractive country for foreign investments
Currently, Malaysia’s direct investments overseas totalled to RM522 billion (approx. US$124 billion) worldwide while foreign direct investment (FDI) in Malaysia totalled up to RM477 billion (approx. US$113.27 billion). Sixty percent of the FDI came from the TPP member countries. Furthermore, the ‘Doing Business Index’ states that Malaysia is in 18th place out of 189 countries. This clearly shows that the Malaysian economy has the advantage of attracting new investors to the country. On top of that, more FDI in the local economy means that there would be further job creation, higher pay for the local workers (which most of them are skilled workers) and this will result in positive multiplier effects, thus catalysing growth within the economy.
However, the questions remain as to whether local firms are good enough or well protected enough to fight potential entry of MNCs, which have greater economic advantages in production and technology. Has the government done everything they can to insulate the impact of these giant MNCs penetrating into the Malaysian economy? Are the local firms prepared to pay a higher wage to prevent top talents from being stolen by these MNCs? If all the answers are no, then, the result would be damaging to the local economy will be subdued by the MNCs and becoming dependent on foreign firms, without having their own globally competitive local companies.
Opening up to a sizeable market
On paper, Malaysia will gain access to 800 million people with a combined GDP of US$27.5 trillion. According to a report from the Peterson Institute of Economics, Malaysia stands to gain US$41.7 billion increase in exports and US$26.3 billion in income gains by 2025 if it stays on the TPPA track. This shows great promise for the Malaysian economy as local firms are now able to export their goods to a bigger market. Moreover, the removal of import tariffs among the member countries will greatly benefit the local industries such as Electrical & Electronics (E&E) industry. For example, in the E&E industry, the current export value of the TPP market is RM103.29 billion (approx. US$24.53 billion) and with the removal of import tariffs up to 100% from the present import tariffs of 0.4% – 20%, depending on nations, the impact would be significant for the economy, with the E&E industry contributing 24.5% to the manufacturing sector in the Malaysia’s Gross Domestic Product (GDP).
However, it is worth thinking that the import tariffs on foreign goods outside of Malaysia will be removed too and now those foreign goods can be accessed and bought for cheaper than before. For example, in the automobile industry, the 200% import tariff imposed on foreign cars would have to be abolished and local car producer like Proton would have to compete with foreign car manufacturers on the same playing field. Nevertheless, there are still positive outcomes, as the consumers would be able to purchase foreign cars cheaper and, therefore, increasing consumer welfare. For Proton, they might have to change their management style, or they will have to be more efficient in their production methods, for them to compete equally.
In a nutshell, the Trans-Pacific Partnership will significantly help the Malaysian economy to develop into a larger and stronger economy as well as the stepping stone for the local economy to prepare itself for future FTAs such as ASEAN Economic Community (AEC) and Regional Comprehensive Economic Partnership (RCEP). These agreements will play important roles in shaping the Malaysian economy for future challenges, domestically and globally. The time has come for Malaysia to realise its potential. The path had been chosen, and now, we shall all see what the future holds for this young and promising country.
SOURCE: The Market Mogul
Several top White House officials emphasized the urgent need to obtain congressional approval of the the pending Trans-Pacific Partnership trade deal, arguing Wednesday that delaying the deal will damage the U.S. economy. "We're committed to keeping all the options on the table in terms of timing to maximize the chances of securing the support for TPP but at the same time delay is costly," said Jeff Zients, director of the National Economic Council during a conference leading up to President Barack Obama's signing of a customs trade enforcement measure. However, critics warn that if approved, the real cost of the deal would be felt by U.S. workers. A recent report carried out by researchers from Tufts University, concluded that 450,000 American jobs would be lost under the TPP.
Despite these concerns, President Obama confirmed Wednesday that his administration would send the agreement to Congress for a vote “at some point this year." The TPP pact was formally signed Feb. 4 in New Zealand. However, key members in the U.S. Congress have stated that they do not expect the TPP to be considered until after the presidential elections. “Once we’ve set up trade rules, people have to abide by them," Obama said on Wednesday. “Overall, this is an example of smart trade policy in the 21st century," he said about referring to the proposed trade deal.
The 12-country trade agreement includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. The international trade deal has been widely condemned for privileging corporate profits over international public interests.
SOURCE: The Telesur
Its not often that two former generals-turned-presidents meet on the sidelines of an international conference. Yet this is exactly what happened when former major general and incumbent Nigerian president Muhammadu Buhari met in Cairo with former field marshal and Egyptian president Abdel Fattah el-Sisi. The two gathered in Sharm el Sheikh alongside several other African heads of state and some 1,500 participants, to honor the opening of the business and investment forum “Africa 2016”. A lofty affair, the forum had one main objective in mind: uniting the African continent by tearing down trade barriers between its 54 countries.
At the end of two days in the luxurious Egyptian resort, participants agreed to breathe new life into last year’s landmark tripartite deal between COMESA (Common Market for Eastern and Southern Africa, 19 countries), SADC (Southern African Development Community, 15 countries) and the EAC (East African Community, 5 countries) to form Africa’s biggest trading block. Encompassing 620 million consumers spread across 26 countries and with a combined GDP of $1,2 trillion, the (yet) unnamed free trade area would serve to increase intra-African trade, from its current nadir of 13% and un-peg the continent from its reliance on capricious commodity exports. That the Africa forum also served as a good PR stunt for an increasingly isolated el-Sisi came in second.
Hands were shook, backs were slapped and generous amounts of champagne and macaroons were downed by the conference-goers in what is Egypt’s biggest play to date to rekindle its African roots, put on hiatus after Nasser’s death in 1970. Since the start of his presidency, el-Sisi pivoted to Africa in a bid to jumpstart Egypt’s revolution-battered economy by drawing to his side African leaders. Somersaulting from the country’s long-standing pan-Arabist slant, el-Sisi positioned himself as an African leader with sufficient clout and will to bring together the continent’s economies. Whatever el-Sisi’s ulterior motives, the approach is registering some notable successes. Gabon’s Ali Bongo Ondimba, accompanied by his chief of staff, Maixent Accrombessi, walked away from the conference with a slew of cooperation agreements and memorandums of understanding in political consultation, education, health, and pharmaceutical industries. In the course of their bilateral meeting, the two parties agreed to capitalize on their respective economic strengths and bolster bilateral ties to their full potential. Currently, Gabon only imports some $14 million every year from Egypt, but the trade balance is expected to increase following el-Sisi’s calls for more intra-African investment.
Egypt’s choice of partnering up with Gabon is not haphazard. In recent years, Ali Bongo has sought to carve out a leading role for his country in south-south cooperation and has made overtures from Morocco in North Africa to Djibouti on the very tip of the Horn of Africa. Africa has been registering one of the highest growth rates in the world, averaging 5% across the past decade. Building trust, economic ties, lifting trade barriers and lowering tariffs are requisites for more investment – the lynchpin to unlocking Africa’s economic potential. Looking beyond diplomatic clout, Nigeria, from its enviable status as Africa’s largest economy, can play a complementary role. While political leaders can huff and puff, reaping the benefits of the future intra-African free trade agreement can only come by bringing the private sector on board. And while Egypt can mobilize its clout, Nigeria’s dynamic private sector and big market can act as the engine of growth within the upcoming FTA.
Taking a walk down the memory lane, a nostalgic Buhari reminisced that in the course of his army service he had received military training in Egypt and praised Cairo’s military support during Nigeria’s civil war between 1967 and 1970 – a war that, ironically, was ignited by the successful 1966 coup d’etat against General Aguiyi Ironsi where a young lieutenant Buhari was one of the plotters. Today, the two generals have the opportunity to shine in a different light, if they and the 24 other African nations succeed in pushing forward the ambitious agenda of building a shared economic space.
SOURCE: The Africa Times
Citing the United States' "significant" victory at the WTO against India's "localisation" policies in the solar industry, President Barack Obama has said the US will not allow other countries engaged in practices that disadvantage its workers and firms. "We can't have other countries engaged in practices that disadvantage American workers and American businesses. One of the things I am very proud of is that we have ramped up enforcement of our trade laws to protect American workers and American businesses like never before," Obama said at the signing ceremony of the trade facilitation and trade enforcement act of 2015. "In areas like steel, for example, we have brought more cases than we had in the previous decade. We have brought more cases before the World Trade Organisation, the WTO, than any other administration. The ones that we have brought, we have won. In fact, we just won a case against India this week," said the US President. The US won the ruling against India at the World Trade Organisation yesterday after challenging the rules on the origin of solar cells and solar modules used in India's national solar power programme.
Ruling against India, the WTO said the government's power purchase agreements with solar firms were "inconsistent" with international norms. The US had filed a complaint before the global trade body alleging discrimination against American firms. The White House described the WTO ruling as a significant victory. "This represents a significant victory for the rapid deployment of solar energy across the world, but also for clean jobs right here in America," White House Press Secretary, Josh Earnest, told reporters. Obama said trade is a major topic of debate in the US and around the world. "One area where there should be no debate is that once we have set up trade rules, people have to abide by them," he said.
SOURCE: The Economic Times
Ambassador of Cuba to Pakistan Gabriel Tiel Capote during his first interaction with business community at the Islamabad Chamber of Commerce and Industry on Wednesday said that the two country Pakistan and Cuba have good potential to promote mutual cooperation in many areas and that his country was keen to enhance trade relations with Pakistan. The envoy said Pakistan could export textiles, fabrics, rice, surgical instruments, leather and sports goods to Cuba while Cuba could export its biotechnological and pharmaceutical products to Pakistan. The ambassador further said that Cuba had opened Mariel Port in 2014 situated in its north western region and created an economic development zone around this port to attract foreign companies in the fields of electronics, chemicals, computers, biotechnology and pharmacy. He said Pakistani investors should explore investment opportunities in the said economic zone in Cuba. Cuba also organizes Havana International Fair every year, which would held in November this year and it was a good opportunity for Pakistani businessmen to participate in the fair to showcase their products as well as identify opportunities for further expanding bilateral trade. He suggested that ICCI should form a delegation of specific sectors for Cuba to explore business matchmakings and assured that his Embassy would facilitate in connecting its members with right counterparts in Cuba.
ICCI President Atif Ikram Sheikh said that bilateral trade between Pakistan and Cuba was just $5.6 million in 2015, which was not encouraging by any standard. He said that both countries should facilitate frequent exchange of trade delegations and focus on promoting connectivity between their private sectors to identify new avenues of mutual collaboration.
SOURCE: Yarns&Fibers
