India has been traditionally focusing on Cotton textiles whereas the global mill fibre consumption is moving towards Manmade fibre (MMF). Recognizing the potential for growth and employment in MMF sector, the Production Linked Incentive (PLI) Scheme for Textiles has been formulated with an approved outlay of Rs 10683 crore over a five year period, to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country. The objective is to enable Textile sector to achieve size and scale and to become competitive. Increased availability of MMF and MMF yarn will contribute to the overall Growth in textile industry using mixed fibre/yarn. The scheme guidelines are under formulation. Proposals shall be invited once the scheme guidelines are notified. Investment by the Government in the handloom sector is through funding to the eligible handloom agencies/weavers etc. in the form of grants-in-aid for implementation of following handloom schemes (Central Sector Schemes) for development, promotion and modernization of weaving and to increase production in the handloom sector and welfare of handloom weavers across the country: - 1. National Handloom Development Programme (NHDP); 2. Raw Material Supply Scheme(RMSS) Under the above schemes, financial assistance is provided for raw materials, Common infrastructure development, marketing of handloom products in domestic/overseas markets, loans at concessional rates, etc. To promote marketing of handloom products, Handloom Export Promotion Council (HEPC) has been organizing International Fairs in virtual mode. During the year 2020- 21, 12 handloom fairs were organized in virtual mode. Besides, domestic marketing events were also organized in different parts of the country for the weavers to market and sell their products. This information was given by the Minister of State for Textiles Smt. Darshana Jardoshin a written reply in the Rajya Sabha today.
Source: PIB
The Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles Shri Piyush Goyal chaired an interaction with the captains of Indian industry and heads of Export Promotion Councils in Mumbai today, to discuss certain opportunities for Indian businesses to expand their global footprint by leveraging the business platforms and infrastructure offered by UAE. DP World, a leading smart logistics provider owned fully by the Government of UAE, presented the market expansion opportunities it offers to Indian businesses and exporters. The firm is setting up India Mart Traders Market, a dedicated market for Indian businesses which would enable traders and manufacturers to trade with the UAE local market and regional market. The potential offered by Dubai’s Jebel Ali Free Zone (Jafza), one of the world’s leading free trade zones, was also presented to the Indian industry. Speaking about the immediate UAE opportunity presented by DP World and the Government of UAE, Shri Goyal said “We are looking for this to become a $10 billion opportunity for India and to also showcase Brand India on the global stage.” Industry representatives welcomed the initiative and offered their ideas and suggestions to leverage its potential. Shri Goyal added that our goal is to become the No. 1 Trading Partner of UAE. The Minister said, “UAE is a gateway to Gulf Cooperation Council and all of Africa". The Minister welcomed Group Chairman & CEO, DP World, Sultan Ahmed Bin Sulayem for coming up with solutions such as provision of low-cost finance for Indian businesses. Shri Goyal said that the goodwill built by Prime Minister Shri Narendra Modi and Crown Prince H.H. Sheikh Mohamed bin Zayed Al Nahyan are helping us have bigger ambitions. The Minister thanked the exporters for participating in the deliberations to create a roadmap for expanding Indian exports not only to UAE but also using UAE as a springboard, to expand exports to GCC and other markets in Africa and elsewhere. The union minister shared the highly favourable outcomes which can be expected from the India-UAE Free Trade Agreement, which is in the advanced stages of negotiation and finalization. “There is a lot of good news coming up, across several sectors, as we negotiate and finalize the FTA with the UAE.”
Source: PIB
• DP World is setting up India Mart Traders Market, a dedicated market for Indian businesses which would enable traders and manufacturers to trade with the UAE local market and regional market India proposes to finalise its free trade agreement (FTA) with UAE soon to further strengthen bilateral trading ties with the gulf nation. Union minister for commerce & industry, consumer affairs, food & public distribution and textiles Piyush Goyal said that highly favourable outcomes can be expected from the India-UAE Free Trade Agreement, which is in the advanced stages of negotiation and finalization. “There is a lot of good news coming up, across several sectors, as we negotiate and finalize the FTA with the UAE," the minister said during an interaction with the captains of Indian industry and heads of export promotion councils in Mumbai on Saturday. The meeting was organized to discuss opportunities for Indian businesses to expand their global footprint by leveraging the business platforms and infrastructure offered by UAE. During the meeting, DP World, a leading smart logistics provider-owned fully by the Government of UAE, presented the market expansion opportunities it offers to Indian businesses and exporters. The firm is setting up India Mart Traders Market, a dedicated market for Indian businesses which would enable traders and manufacturers to trade with the UAE local market and regional market. The potential offered by Dubai’s Jebel Ali Free Zone (Jafza), one of the world’s leading free trade zones, was also presented to the Indian industry. Speaking about the immediate UAE opportunity presented by DP World and the Government of UAE, Goyal said, “We are looking for this to become a $10 billion opportunity for India and also showcase Brand India on the global stage." He added that India’s goal is to become the No. 1 trading partner of the UAE. “UAE is a gateway to Gulf Cooperation Council and all of Africa," the minister said. The minister also welcomed group chairman & chief executive officer of DP World Sultan Ahmed Bin Sulayem for coming up with solutions such as the provision of low-cost finance for Indian businesses. The minister thanked the exporters for participating in the deliberations to create a roadmap for expanding Indian exports not only to UAE but also using UAE as a springboard, to expand exports to GCC and other markets in Africa and elsewhere. The minister shared three examples reflecting India-UAE friendship. “For the first time ever, UAE allotted land for India to set up a temple. This is remarkable as UAE is celebrating 50th year of its formation and India is celebrating its 75th year of Independence. Secondly, UAE has committed $100 billion for investment and infrastructure creation in India. And thirdly, the UAE-India FTA will be India’s fastest negotiated FTA and the fastest-negotiated Comprehensive Economic Partnership Agreement (CEPA) ever between two nations, which also gives the maximum opportunity to India," he said.
Source: Live Mint
He was speaking at the 94th Annual Convention of industry body Ficci Commerce Minister Piyush Goyal on Friday exuded confidence that negotiations for a free trade agreement between India and the UK would be launched next month and with Canada by March-April. He was speaking at the 94th Annual Convention of industry body Ficci here. Goyal said he will be in Mumbai on Saturday and engaging with exporters and the retail industry to examine the benefits of the free trade pact with the UAE. "Along with that we are looking at other engagements with the UAE, which will be announced shortly, but we are still working to see whether we can have something like a large India Mart in Dubai where a huge number of stores can come up to display Indian products, a huge amount of warehousing can be picked up at affordable prices," he added. The minister said such a mart will help Indian exporters to increase their presence all across Africa, the Middle East and other parts of the world. He said India is in discussions with other countries and regions too for free trade pacts. "So, we are looking at new ideas along with the FTA with the UAE. We are also simultaneously in discussion with Australia...UK, we launch possibly next month. Canada we may launch by about March or April," he said. Goyal, who also holds the textiles portfolio, said a "trillion-dollar opportunity" is waiting for the textiles industry, which is the largest job-creating sector in the country after farming. The proposed FTA between India and UK is expected to unlock extraordinary business opportunities and generate jobs. Goyal said most of the industries in the country are doing reasonably well, but still, there are few sectors that are under stress. He also said a USD 400 billion of merchandise exports in the current fiscal looks to be a reality.
Source: Business Standard
The occasion was the visit of Vuong Dinh Hue, President of the National Assembly of Vietnam. As many as 12 MOUs were exchanged on Friday between Vietnamese and Indian enterprises in the fields of public health, provision of pharmaceutical materials, drug and vaccine production, oil and gas, information technology and technology transfer, education, and tourism The occasion was the visit of Vuong Dinh Hue, President of the National Assembly of Vietnam. He attended the “Vietnam India Business Forum” on December 17, 2021, organized by the Embassy of Vietnam and the Confederation of Indian Industry. India and Vietnam have shared a long-standing traditional relationship that has been cultivated by leaders from both countries. They established Diplomatic Relations in 1972, which over time evolved into a Strategic Partnership in 2007 and further into a Comprehensive Strategic Partnership in 2016. Trade and investment cooperation has been one of the main pillars of bilateral relations between these two nations. In terms of investment, India has over 315 active projects in Vietnam with a total investment capital of nearly $ 1 billion ranking 26th out of 141 countries and territories investing in Vietnam. The capital mainly focuses on the processing and manufacturing industries (accounting for 54.5%). In terms of trade, the two-way turnover in the first 10 months of 2021 reached nearly $ 11 billion, up by nearly 40% y-o-y and surpassed the total trade turnover of 2020. India is currently amongst the top 10 biggest trading partners of Vietnam while Vietnam is India's fourth-largest trading partner in ASEAN. Trade and investment cooperation between Vietnam and India has achieved positive results in recent years, but it is still modest and not commensurate with the potential and advantages of both sides. The economies of the two countries have many similarities, which can support and complement each other for mutual development. Specifically, India can become a supplier of input materials, for Vietnam in industries such as textiles and garments, shoes and leather, and machine manufacturing; at the same time, creating more favorable conditions for Vietnamese products, such as consumer goods, electronics, agricultural and aquatic products, wood products, rubber, to penetrate deeply into the Indian market. Besides, Vietnam also offers a wide scope for cooperation and mutual support in the fields of textiles and garments, high-tech agriculture, biotechnology, pharmaceuticals, information technology, energy, infrastructure, and mining.
Source: Economic Times
Ministry of Textiles had initiated a major intervention namely, Technology Upgradation Fund Scheme (TUFS) in 1999 as a credit linked subsidy scheme intended for modernization and technology upgradation of the textile industry in the country. The scheme has been implemented in various versions and the ongoing version of Amended TUFS (ATUFS) to be implemented upto March, 2022 was launched in 2016 with upper ceiling of subsidy for individual entity (Rs.30 crore for Garmenting, Technical Textiles and Rs.20 crore for other segments), to ensure better targeting of MSME units. In addition, schemes such as National Technical Textile Mission (NTTM), Powertex India, Integrated Processing Development Scheme (IPDS), Scheme for Integrated Textile Parks (SITP), Scheme for Incubation in Apparel manufacturing (SIAM), Pradhan Mantri Mega Integrated Textile Region & Apparel Park (PM-MITRA), sectoral schemes for traditional sectors viz. silk, jute, handloom and handicraft etc. have been launched to support the textile industry to achieve technology advancement, innovation and modern infrastructure. The initiatives of the Government has helped in increasing textile manufacturing by building the modern manufacturing infrastructure, upgradation of technology, fostering innovation, enhancing skills and traditional strengths in the textile sector including small businesses. This information was given by the Minister of State for Textiles Smt. Darshana Jardosh in a written reply in the Rajya Sabha today.
Source: PIB
Expectations of positive growth in the country's exports are also backed up by the outlook of the World Trade Organisation which predicts a 4.7 per cent expansion in the global merchandise trade volume in 2022. After staging a strong recovery from COVID-induced slowdown in 2021, India's exports are likely to extend the growth story to the New Year also on increased demand in the global markets, boost in domestic manufacturing due to production-linked incentive schemes and implementation of some interim trade pacts. Expectations of positive growth in the country's exports are also backed up by the outlook of the World Trade Organisation (WTO) which predicts a 4.7 per cent expansion in the global merchandise trade volume in 2022. Exporters believe that the outbound shipments would cross USD 400 billion mark in this fiscal going by the current momentum and may reach USD 475 billion in 2022-23. However, the growth and global demand will also depend on whether the countries would be able to contain Covid-19 and the new variant Omicron through massive vaccination worldwide, they suggest. According to a Reserve Bank of India survey, released in September, exports of software services, including services delivered by foreign affiliates of Indian companies, stood at USD 148.3 billion in the fiscal year to March 31, 2021. This is more than USD 145.3 billion the world's top oil exporter, Saudi Arabia expects from oil sales in 2021. With the largest engineering population in the world, the software export story was seeded about four decades ago and has huge potential to go up further. But software exports are just a part of India's export-led growth story which is gaining momentum. Commerce Secretary BVR Subrahmanyam said that the world respects India as a trusted global business partner now and the country's exports are growing in regions including the Middle East, Arica and South American nations, besides India's traditional destinations. "An intense review and monitoring at macro and geographical levels are helping to find new areas of trading relationships. Various measures to improve ease of doing business, incentivisation schemes like PLIs, rationalisation of duties is facilitating the trade like never before," he told PTI. To boost exports, the government has taken several measures such as notifying RoDTEP (Remissions of Duties and Taxes on Exported Products) rates, and releasing Rs 56,027 crore against pending tax refunds of exporters and steps to promote ease of doing business, the secretary added. Subrahmanyam said that a series of measures by the central government and the resilience of Indian exporters have helped in registering record growth in exports so far. According to another senior official, the Department of Commerce is working on the new Foreign Trade Policy (FTP) and aggressively negotiating Free Trade Agreements (FTAs) with key trading partners including the UAE, the UK and Australia and these measures would help in registering record growth in exports in "next year as well". The centre has implemented a series of steps to promote exports of both goods and services and that includes the introduction of RoDTEP and Rebate of State and Central Levies and Taxes (RoSCTL) Schemes, the launch of Common Digital Platform for Certificate of Origin to facilitate trade and increase FTA utilization by exporters, promoting districts as export hubs by identifying products with export potential in each district and addressing bottlenecks, and promoting ease of doing business. The recently introduced PLI schemes will also support growth in the New Year, particularly in mobile, electronics and drugs and pharma sectors as incremental production will push additional exports as well. According to Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai, much will depend on whether "we would be able to contain Covid-19 through massive vaccination across the globe and be able to create required capacity of new variants and supply-side challenges at this point of time, "we would like to be a little conservative and will aim for an export of USD 460-475 billion in 2022-23," he said. Sahai added that while the demand side of exports should be taken care of by the industry, industry and the government should work together to address the supply side challenges. "An increase in the prices of inputs, skyrocketing freight and delays in shipments and payments have resulted in the need for additional credit. Unfortunately, additional credit requires additional collateral as well by the banks. The government may consider giving a push to container manufacturing in the country as we require a large number of containers for inland coastal shipping," he suggested. Since January this year, exports are mostly recording double-digit growth on account of a low base. In 2020, exports were hit hard by the impact of the Covid-19 pandemic. Rising imports of gold and crude oil have pushed the country's imports and widened the trade deficit (difference between exports and imports). The trade deficit touched a record USD 23.27 billion in November. Leading exporter and founder chairman of Technocraft Industries India Sharad Kumar Saraf said that as the Indian economy is reviving at a faster pace, imports are rising. "Exports will do better in 2022 on account of health demand in global markets, Customers who have moved out from China are looking at India. Schemes like PLI will start yielding fruits from the new year," Saraf said. Ludhianabased Hand Tools Association President S C Ralhan also said that exports would do good in the new year, but the government should take immediate steps in containing rising shipping rates and raw material prices. Promoting exports helps a country create jobs, boost manufacturing and earn more foreign exchange.
Source: Economic Times
Since Telangana also has diverse industries like pharmaceutical, auto components industry, spices, mines and minerals, textiles and apparels, horticulture etc. A high-level delegation led by Gujarat Revenue Minister Rajendra Trivedi held a roadshow in here on Friday as part of the forthcoming 10th edition of Vibrant Gujarat Global Summit (VGGS) 2022 in January. Addressing a packed hall of dignitaries, the Minister said the country has registered remarkable socio-economic development under the leadership of Prime Minister Narendra Modi and evolved into a dynamic country with a strong standing across the world. ''Since Telangana also has diverse industries like pharmaceutical, auto components industry, spices, mines and minerals, textiles and apparels, horticulture etc. and some of the leading industrialists have established their manufacturing units in the State, I would take this opportunity to invite the industrial leaders across all the sectors to invest and expand their business in our State and avail the benefits and incentives being offered by the Government of Gujarat,'' Trivedi said. The Summit is scheduled to be held from January 10 to 12, 2022. The Minister was accompanied by Kamal Dayani, Additional Chief Secretary, Revenue Department and P Swaroop, Commissioner, Land Reforms and other senior State officials from Gujarat.
Source: Dev Discourse
The Federation of Indian Export Organisations (FIEO) has sought Indian companies to build a shipping line amid rising freight costs and the country’s high dependence on global shipping companies. In its pre-budget meeting with finance minister Nirmala Sitharaman on Friday, the apex body of exporters said that Indian shipping lines have a “very minor share” in India’s global trade. “Since the Shipping Corporation of India is being disinvested, we need to encourage large Indian entities to build an Indian shipping line of global repute,” said A Sakthivel, president, FIEO. The federation said that such shipping lines, even if it gets 25% of the total business, can save $30-40 billion annually and also reduce India’s dependence on foreign shipping lines. “The tax advantage availed by shipping lines in some countries may be considered to encourage them to register such ships in India,” FIEO said. Sakthivel said that India’s outward remittance on account of transport services is increasing year after year. “We remitted around $65 billion as transport services in 2020 and looking into abnormal increases in the freight in 2021, the figure is likely to cross $100 billion,” he said. As per the federation, the outgo on transport services will increase to $150-200 billion when the country is looking to increase its international trade to $2 trillion in an economy of $5 trillion. The container manufacturing requires a special kind of steel which provides a competitive edge to China which manufactures over 80% of global containers. We need to encourage domestic manufacturing of the containers by providing fiscal benefits to the container manufacturing in the country. Tax support FIEO also pushed for “Double Tax Deduction Scheme for Internationalizations” to allow exporters to deduct against their taxable income, twice the qualifying expenses incurred for approved overseas activities including market preparation, market exploration, market promotion and market presence. “A ceiling of $5,00,000 may be put under the scheme so that the investment and tax deduction are limited,” FIEO suggested, citing the example of Singapore which is providing a similar facility to its SME units for aggressive marketing. On services, FIEO said that the sector is not getting any support as benefits under the Service Exports from India Scheme are also no longer available, and the travel and tourism sector has been hit heavily due to pandemic and needs to be given encouragement. Mode-2 of services (service provided to a foreign national in India paid in free foreign currency) have neither been FIEO also sought restoration of the facility for import of trimming and embellishments as MSME exporters source most of their raw material from the domestic market and import only small lots of trimmings and embellishments.
Source: Economic Times
MoU is aimed to launch multiple manufacturing projects across a 100 acre land in Bhilwara New projects would create employment to over 10,000 people across the state Sangam India Ltd. (SIL), one of India’s foremost producers of PV dyed yarn and seamless apparel, has announced that it has signed a Memorandum of Understanding (MoU) with the Department of Industries Commerce, Government of Rajasthan, by its newly formed wholly owned subsidiary Sangam Venture Limited. The MoU would aim at an investment to the extent of INR 1,521 crores from Sangam (India) Limited and wholly owned subsidiary Sangam Ventures Limited to setup multiple manufacturing units focussing on Spinning, Weaving, Garments, Knitting and Processing over 100 acres of land in Bhilwara district of Rajasthan. Speaking on this occasion Dr. S.N. Modani, Managing Director & CEO, Sangam India Limited said, “We are extremely proud to be closely associated with the Government of Rajasthan on this important collaboration. The textile sector of India needs a major impetus, especially after the turbulent times faced by the industry during the Covid-19 pandemic. With this MoU, Sangam India is charting out an aggressive expansion strategy over the course of next 2 years, starting with launching multiple manufacturing projects in Bhilwara, which would generate direct/indirect employment over 10,000 people. This investment of INR 1,521 crores would be funded through a combination of internal accruals, raising fresh equity and debts via financial institutions.” Sangam India had recently announced an expansion plan of INR 137.25 crores to increase the existing capacity of their cotton yarn business by 47% and knitted fabric business by 28%. Sangam India’s revenue has grown more than double from INR 311 crores in Q2 FY 21 to INR 635 crores in Q2 FY22 with an increase of 104% as per YoY comparison. The company had also raised INR 102.60 crores by issuing up to 57,00,000 (Fifty Seven Lacs) warrants convertible into Equity Shares(s) of the Company of the face value of Rs.10/- each aggregating up to 102.60 Crore to the promoters group and Smt. Madhuri Madhusudan Kela.
Source: Sustainability Textiles
Union Minister of State for Textiles and Railways, Smt Darshana Vikram Jardosh today attended one-year celebrations of the Bodoland Territorial Region Council ( BTR) at Kokrajhar. Smt Jardosh in her address said that Bodoland is a beautiful region, rich with natural resources and a strong and intellectual social tradition, apart from being one of the most peaceful borders of the Indian Sub-Continent. The Chief Minister of Assam Dr. Himanta Biswa Sarma also graced the occasion. Smt. Jardosh paid floral tribute to the statue of Bodofa Upendra Nath Brahma during her visit to Kokrajhar. Smt Jardosh was also present at the inauguration ceremony of the Information Technology Park at Kokrajhar in BTR. Speaking on the occasion, Chief Minister Dr. Sarma said that the new government in BTR has completed a glorious one year- the year which was full of challenges. However, notwithstanding the challenges, the government with its commitment has gained a new momentum towards progress, he said. Referring to the historic Bodo Peace Accord signed in presence of Prime Minister Narendra Modi and Home Minister Amit Shah, Dr. Sarma said that the Accord ushered in a new era of peace in the BTR. The Chief Minister along with Union Minister of State Smt Jardosh inaugurated Bodoland Textile Mission and Bodoland Silk Mission. An MoU was also signed between the Central Silk Board and the Assam Forest and Environment Department. This MoU will support forest based families in frontier forest area of Assam who earn their living by rearing silkworms. It will also provide proper assistance in providing new livelihood opportunities to them. Mr. Rajat Ranjan Okhandiyar, Member Secretary, and Forest Head of the Assam Forest and Environment Department, Mrs. Alka Bhagav presented the MoU. Minister of Health and Family Welfare Keshab Mahanta, BTC Chief Promod Bodo also spoke on the occasion. Minister for Housing and Urban Affairs Ashok Singhal, Minister for WPT&BC U.G. Brahma, Deputy Chief BTC Gobinda Basumatary and a host of other dignitaries were present on the occasion.
Source: PIB
KTR writes to Union Textiles Minister Piyush Goyal Telangana government has urged the Centre to drop its plan to hike the GST on textiles and handlooms from 5 to 12% from January 1 because the sector is going through a tough phase due to the impact of pandemic. In a letter to Union Textiles Minister Piyush Goyal, Industries Minister K.T. Rama Rao observed that taxes were never levied on handlooms in the country’s history. The Centre’s move to impose 5% tax initially was strongly opposed by textiles and handlooms sector across the country. The latest decision to impose additional 7% cent GST on the handlooms would leave the sector crippled, he said. Telangana produces world class handlooms and weavers are worried lot due to the Centre’s decision, he observed. The Minister also said almost 80% of units in the sector were in micro, small and medium enterprises segment. Fixing the rate at 12% for fabrics and garments would hit the powerloom and handloom weavers. It will have a cascading effect on common public due to higher prices, he said. India has the advantage of millions of skilled people working in eco-friendly processes, natural fibres and handmade garments. By hiking GST, the country will be driving them out of employment when it should actually be investing in them and target international market. Mr. Rao said the new generation is not attracted to handlooms sector anymore because of low profitability and critical conditions. The families dependent on handlooms had shrunk from 43.3 lakh in 2011 to 30.44 lakh presently. Nearly 25% of families left the industry and if the trend continues, the handloom sector could become extinct in a few years, he warned. The latest figures show that 70% of handloom weavers are SC, ST, BC and OBCs. Almost 72% of them are women and 77% did not go beyond school education. Therefore, they are not expected to be aware of tax issues and critical conditions of the industry. The income of 67% of families is less than ₹5,000 and 26% of families earn less than ₹10,000. On the whole, as much as 93% of families earn less than ₹10,000. Therefore, it is not wise to hike taxes on products produced by them, he said.
Source: The Hindu
The United Kingdom recently signed a trade agreement with Australia, its first ‘from scratch’ since leaving the European Union (EU), creating new work and travel opportunities. The deal was ‘agreed in principle’ by Prime Minister Boris Johnson and his Australian counterpart Scott Morrison in London in June, and negotiators have now finalised all chapters of the agreement. The final deal was signed in a virtual ceremony by UK international trade secretary AnneMarie Trevelyan and will now be laid in the UK parliament for scrutiny. The deal is expected to unlock £10.4 billion of additional trade, boosting the UK economy and increasing wages across the country, while eliminating tariffs on most UK exports, an official release from the UK government said. he agreement establishes clear and transparent rules that ensure fair treatment for UK investors, greater legal certainty to prohibit discriminatory treatment and reduces the risks associated with investment decisions. It provides UK investors with broader and deeper market access than Australia has ever guaranteed before, making it easier to invest across the economy while restricting limitations on business activity and reducing ‘investor-unfriendly’ performance requirements. It gives UK and Australian firms guaranteed access to each other’s government procurement markets and will allow young people to work and travel in Australia for up to three years at a time, removing previous visa conditions. UK businesses and professionals will have guaranteed certainty of access, helping to make long-term business decisions around the movement of personnel, bidding for and accepting new contracts, and advertising their services in Australia. The deal removes tariffs on UK exports, making it cheaper for Australian importers to sell iconic British products like cars, Scotch whisky and UK fashion.
Source: Fibre2 Fashion
RCEP takes effect on Jan 1 and will likely transform global economy against all odds Jan 1 might bring glad tidings to people for a variety of reasons, but for business executives such as Wang Zhengbo, president of Guangxi TWT Supply Chain Management Co Ltd, the coming New Year's Day will unveil a happy breakthrough. On that day, the Regional Comprehensive Economic Partnership agreement will take effect in 10 signatory members out of the total 15, potentially transforming the global economy and fortunes of companies like TWT Supply Chain. The company, based in Nanning, Guangxi Zhuang autonomous region, trades in agricultural products. It focuses on markets in the footprint of the Association of Southeast Asian Nations. For TWT Supply Chain, closer ties between China and ASEAN under the RCEP framework would mean further reduction in trade costs and expansion of trade items. What's more, overall business prospects will likely get increasingly brighter. The free trade agreement or FTA, signed by 15 Asia-Pacific economies including China, South Korea and Japan, and all 10 member states of ASEAN in November last year, has created the world's largest free trade bloc. The 10 countries where the FTA will take effect on Jan 1 are Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia. The RCEP region has a population of around 2.27 billion, or about one-third of global population. Combined GDP of the 15 members was $26 trillion in 2019, and exports totaled $5.2 trillion, or 30 percent of global exports, according to China's Ministry of Commerce. The RCEP agreement once in force is expected to further integrate the massive regional market, thanks to trade and investment facilitation and liberalization measures, analysts and business executives said. That will not only lead to increased trade and investment activities in the region but usher in a new wave of growth impetus, which could aid the world economic recovery from the impact of the COVID-19 pandemic, and ward off ill-effects of rising protectionism and the anti-globalization sentiment, they said. "The RCEP will spread the rule of trade law more deeply in the Asia-Pacific," said Stephen Jacobi, executive director of the New Zealand International Business Forum, in an email to China Daily. "Enterprises and workers will benefit from better market access and better trade rules. Some economies will be linked by free trade arrangements they have not had before. Other provisions will ensure trade can be done more easily and less expensively," said Jacobi. He is also serving as executive director of the Asia-Pacific Economic Cooperation Business Advisory Council for the period from December 2020 to this year-end, to coincide with New Zealand's chairmanship of Asia-Pacific Economic Cooperation or APEC. "That will help ensure goods and services can flow more freely across supply chains in the region. In this way, increased trade can contribute to increased economic growth and assist the pandemic recovery," he said. Da Hongfei, CEO of Onchain, a Shanghai-based blockchain technology startup, said the firm expects to increase its business presence by expanding to more RCEP members starting from Singapore, where the company has already located its first branch for the ASEAN region. "As soon as our new business model in Singapore matures, we will extend it to more countries," Da said, adding the implementation of the RCEP agreement will bring enterprises more opportunities and resources. "Thanks to reduced tariff levels, easier market access and improved regulatory environment, enterprises will have not only broader market access and cheaper raw materials but, more importantly, wider options for talent and technology," he said. According to Wei Jianguo, vice-chairman of the Beijing-based China Center for International Economic Exchanges, the free trade bloc formed by the RCEP agreement will become the most diversified economic bloc in the world with its signatory members currently at different stages of development, following different political systems and having diverse social structures. "The RCEP agreement, reached at a difficult time with challenges from COVID-19 and the anti-globalization sentiment, is expected to drive a new round of economic globalization by promoting free trade," Wei said. "The implementation of the agreement will also accelerate the movement of global industrial technologies, capital and talents to Japan, South Korea, ASEAN, and most importantly, to China," he said. According to the agreement, more than 90 percent of the trade in goods will be eventually tariff-free over 20 years once it comes into effect. China has promised to completely open up 86 to 90 percent of goods. It has also promised zero-tariff treatment would make up about 90 percent of all tariffed items for the 10 ASEAN member states, as well as Australia and New Zealand. Apart from Laos, Cambodia and Myanmar, other countries mentioned above have promised similar or easier access to zero-tariff treatment for China. Besides, while FTAs among countries in the region mainly cover trade in goods, the RCEP agreement extends into trade in services, investment and the alignment of members' domestic rules with the agreement. According to Wei, the cumulative rules of origin is a striking achievement of the RCEP, which uses accumulated regional value to determine the origin of a product in the region, and therefore makes it easier for products to enjoy zero tariffs. "The RCEP is expected to further expand the regional industrial and supply chains, and help the members build mutually beneficial industrial and supply chain partnerships, as well as stabilize the chains," Wei said. The RCEP members are expected to set high-level Customs rules, inspection and quarantine norms, as well as technical standards. Through these rules, the RCEP agreement can significantly lower the cost of trade in the region, enhance the competitiveness of products, create more business opportunities for enterprises, and provide more choices and benefits to consumers, he said. Jacobi, executive director of the NZIBF, said although New Zealand already has highquality FTAs with all the RCEP economies, including China, and the immediate trade gains are therefore unlikely to be big, the country will still benefit from market access improvements in some economies and the improvement in trade rules. One thing of particular interest is that frozen goods from New Zealand will be cleared more quickly through Customs, which will help the exports of perishable food products, he said. Sun Shunli, Party secretary and chairman of Beijing-based China Construction Second Bureau Installation Engineering Co Ltd, is also confident of the company's business prospects in the RCEP region. The company entered the Southeast Asian market as early as 2008.Thanks to the fastgrowing market demand, its accumulative contract value totaled 2.2 billion yuan ($345.6 million), with eight projects now under construction. "There is great cooperation potential between China and Southeast Asian countries in the construction sector, considering the vigorous local market demand, and Chinese enterprises' advantages in technology and resources," Sun said. Da of Onchain said he believes globalization will be furthered by the RCEP agreement, and applications of technologies like the internet of things, 5G, artificial intelligence and blockchain will also be accelerated to inject more growth impetus into regional and global economy. Progress in blockchain technology applications, specifically, will significantly reduce trade and commerce costs related to information transmission and verification, as well as facilitate economic growth with such blockchain-powered digitalization of assets, he said. According to a recent report by the Hainan province-based China Institute for Reform and Development, the RCEP agreement is expected to create additional growth for exports, foreign investment stock and GDP in member countries by 10.4 percent, 2.6 percent, and 1.8 percent, respectively, by 2025, compared with the baseline. The report also said the RCEP agreement will boost the global GDP growth by an average annual increase of $186 billion. Jacobi said the RCEP agreement also shows to the world that trade liberalization is possible even amid challenging times. "Protectionism should never be the response to the pandemic or any other crisis. Economies need to work together, as they did most recently at APEC, to trade our way out of crisis and into recovery," he said.
Source: China Daily
Vietnamese businesses need to cooperate closer with partners in order to boost exports to Brazil in the last month of 2021 as the American market’s import and export activities have recorded a stable growth, according to the Vietnam Trade Office in Brazil. Vietnamese businesses need to cooperate closer with partners in order to boost exports to Brazil in the last month of 2021 as the American market’s import and export activities have recorded a stable growth, according to the Vietnam Trade Office in Brazil. Two-way trade between Vietnam and Brazil hit 5.74 billion USD in the last 11 months, up nearly 36.8 percent year-on-year, with Vietnam's exports to Brazil valued at 2.04 billion USD, up 24.7 percent year-on-year. Sharp increases were seen in the shipment to Brazil of items such as iron and steel, furniture products, computers, electronic products, bamboo and rattan products, sedge carpets, vehicles and spare parts, technical fabrics, rubber, textile fibers, aquatic products, textile raw materials, footwear, rubber products, and bags. Vu Ba Phu, director of Vietnam Trade Promotion Agency of the Ministry of Industry and Trade (MoIT), said although the COVID-19 pandemic has had a negative impact on the economy, trade between Vietnam and Brazil has grown, so businesses of the two sides still have many opportunities to improve trade turnover in the coming time. According to deputy head of the European-American Market Department of the MoIT Vo Hong Anh, the value of exports to Brazil has been improved with an increasingly diverse range of trade commodities such as mobile phones, electronic equipment, iron and steel, footwear, chemicals, agricultural products, and processed foods, and raw materials for livestock feeds and some other production industries.
Source: Vietnam plus
The program, launched by a Dutch agency, is forecasted to generate 4 million in capital gain and create 2 800 jobs within Morocco’s textile industry. The Moroccan Association for Textile Manufacturing (AMITH) signed on December 16 a deal with the Netherlands’ Agency for Promoting Imports from Developing Countries (CBI). Signed in Casablanca, the agreement aims to support 35 textile businesses and help them expand their operations in central and northern Europe. The ambitious program, dubbed “CBI-Morocco Apparel & Textile Program,” is projected to help Moroccan businesses operating in the textile industry gradually increase their presence in European markets through increased imports over a period of five years, said Juliette Van Iperen, the head of the program. The five-year program aims to create networking channels between Moroccan textile suppliers and European textile retailers. The 35 textile businesses chosen for the program will go through a rigorous candidacy process based on expertise and their Corporate Social Responsibility (CSR). Clothing and textile are a primary importing sector in Morocco. With a value bordering MAD 38 billion ($ 3.9 billion), textile and clothing exports made up 15% of Morocco’s industrial GDP in 2018. The textile sector is of strategic importance to Morocco’s efforts to emerge as an industrial and exporting hub. While Spain and France remain Morocco’s major trading partners, the North African country is now redirecting its marketing efforts worldwide, attracting investments and cultivating partnerships with major actors in the automobile and aeronautical sector established in Morocco. Morocco’s latest global marketing campaign, “Morocco Now,” showcases the country's intensive efforts to become a continental leader and a gateway to African markets. In addition to its marketing efforts, Morocco established in recent years major industrial zones and enacted major infrastructure projects to enhance the attractiveness of the country as an investment destination.
Source: Morocco World News
Swiss textile machinery companies have adopted innovations and automation to bring reliability and efficiency, ultimately saving costs to produce the right quality every time. They are already specialised in many of these disciplines, with machinery for fabric inspection and presentation, labelling and tracking, and folding and packaging. The wider picture with automation will prepare companies for the IoT and Industry 4.0, as per the Swiss Textile Machinery association. Talking about its member companies, the association said that they have the technology to inspire a new vision at the post-production segment of the textile manufacturing processes. The Swiss company Maag Brothers is a leading supplier of high-end machines for quality assurance in the final make-up processes, specifically fabric inspection, plating/folding, selvedge printing and packaging. Maag reports on a practical example from a mill in India which recognised the potential of automation. An analysis at the customer’s mill identified the main goals as modernisation of the workflow at quality control and packing processes. Maag’s new system covers tasks from fabric inspection to dispatch, and offers transparent and easily adjustable processes with real-time process control. It is a digital solution, resulting in a slim organisation, paperless, and the basis for further optimisation towards Industry 4.0 to exploit its full potential. The customer’s own calculation showed a ROI for the installation at less than three years – along with a reduction in manpower and savings in fabric costs for shade samples. Swiss company Norsel is an expert in grey fabric labelling systems, for piece tracking through all textile processes. High-quality label printing and proper sealing on all kind of fabrics ensure readability and sustainability after dyehouse processes such as mercerising, high temperature dyeing and even hot calendering. No roll mix-up during dyeing, easy sorting of fabric rolls and rapid delivery make processes in the mill much more efficient. Using RFID codes lifts fabric inventory control to the highest level, with all information readily transferred to a database and integrated through any ERP software. It is a foolproof way to avoid the risk of human errors from hand-written notes on grey fabrics and article sheets, by opting for reliable, secure and forward-looking solutions, the association said in a press release. Swiss producer Polytex continuously refines its solutions, underlining its leading position in sample making equipment. Fully-automatic high-performance sample production lines are designed to satisfy the highest expectations. Fully-automatic lines or robotic machines set the standards for quality and performance. Even the most demanding clients can achieve their goals with impeccable samples, quickly and efficiently made, for flawless collections that are sure to impress. Customers of Espritech trust this Swiss producer of automated folding machinery to provide the final touch of class to home textiles and apparel products before they go on display. The folding systems are generally large mechatronic devices, loaded with latest technologies in mechanics, electronics, sensors and pneumatics. “Textile producers are amazed how folding machines solve the tricky task of reliably handling chaotically behaving materials. They see process optimisation potential and the impact. We observe a slow but continuous change of mindset installing sophisticated technology even in the last steps of textile finishing,” said Philipp Rueedi, CFO at Espritech. The advantages of automation in mills with high-volume production are obvious: consistent quality, increased efficiency, waste reduction in some cases, as well as significant medium-term cost reductions in every case. That description focuses on the aims of modern mills in low-cost markets. But producers in Europe and USA could reach out for more. For them, automation could be a game-changer, offering unique new opportunities. Reshoring is a growing trend now. It shows great potential and is definitely driven by sustainability and changes in consumer mindsets. “We believe that the time is right – the machines and solutions certainly are – to push automation also to the very end of the production line, replacing intensive manual work and take the chance for reshoring. The current situation is kind of a transition time which is expected to last for a couple more years in the textile industry,” says Rueedi. He adds that any investments in these prime markets pay off much faster because of higher labour costs. Innovation transformed through automation can do much more than simply replacing the nimble fingers of humans. It also enables new business models, guaranteeing prosperous future business, alongside greater job security. Swiss Textile Machinery members are ready to take customers towards this promising future.
Source: Fibre2 Fashion
