The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 14 MARCH, 2016

NATIONAL

 

INTERNATIONAL

 

 

Textile Raw Material Price 2016-03-13

Item

Price

Unit

Fluctuation

Date

PSF

1104.04

USD/Ton

0.56%

3/13/2016

VSF

2084.89

USD/Ton

0.52%

3/13/2016

ASF

1920.90

USD/Ton

0%

3/13/2016

Polyester POY

1108.66

USD/Ton

0%

3/13/2016

Nylon FDY

2248.11

USD/Ton

0%

3/13/2016

40D Spandex

4542.41

USD/Ton

0%

3/13/2016

Nylon DTY

2040.24

USD/Ton

0%

3/13/2016

Viscose Long Filament

2105.68

USD/Ton

0%

3/13/2016

Polyester DTY

1185.65

USD/Ton

0%

3/13/2016

Nylon POY

2486.78

USD/Ton

0.31%

3/13/2016

Acrylic Top 3D

5738.83

USD/Ton

0%

3/13/2016

Polyester FDY

1285.73

USD/Ton

0%

3/13/2016

30S Spun Rayon Yarn

2771.64

USD/Ton

0%

3/13/2016

32S Polyester Yarn

1755.37

USD/Ton

0%

3/13/2016

45S T/C Yarn

2463.68

USD/Ton

0%

3/13/2016

45S Polyester Yarn

2925.62

USD/Ton

0%

3/13/2016

T/C Yarn 65/35 32S

2448.28

USD/Ton

0.63%

3/13/2016

40S Rayon Yarn

1847.76

USD/Ton

0%

3/13/2016

T/R Yarn 65/35 32S

2124.92

USD/Ton

0%

3/13/2016

10S Denim Fabric

1.08

USD/Meter

0%

3/13/2016

32S Twill Fabric

0.90

USD/Meter

0%

3/13/2016

40S Combed Poplin

0.98

USD/Meter

0%

3/13/2016

30S Rayon Fabric

0.72

USD/Meter

0%

3/13/2016

45S T/C Fabric

0.74

USD/Meter

0%

3/13/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15398 USD dtd.13/03/2016)

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

 

Govt urged to speed up FTAs to give boost to textile exports

Indian textile sector is at big disadvantage compared to Bangladesh and Vietnam as it does not have FTAs with U.S., Canada dn Europe. Least developed countries are exporting at zero duty while India’s exports are subject to 10 to 14 percent duty. Hence, the Textile Ministry has urged the government to expedite Free Trade Agreements (FTAs) with the U.S. and European Union to help double exports, said its Secretary Rashmi Verma. Ms. Verma further added that it is on labour and wages cost that were are not able to compete with Bangladesh and Vietnam. As far as quality and branding is concern, they are on par with them. However, they want to have balanced duty structure. FTAs will give a big boost. Currently, exports stand at Rs.2.5 lakh crore and the vision is to double it in the next 10 years. But there are few challenges that put India at competitive disadvantage, Ms. Verma said.

According to Union Development Commissioner (Handlooms), Alok Kumar, they are hopeful of achieving the target as most of the export happens in the last four-five months. During the current fiscal, they might be one of the few sectors to hit the target. The target for 2015-16 is pegged at $47.5 billion.

SOURCE: Yarns&Fibers

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Korea to help establish Technical Textiles Center Faisalabad

Korea has shown interest to help establish Technical Textile Center at the National University of Textiles Faisalabad for which she is willing to provide Rs 600 million in technical assistance, machines, equipments and manpower training. An official source said the government would have to provide only Rs 60 million to functionalise the center at the NTU Faisalabad. The funding is likely to be provided at the start of next fiscal year. The project will help initiate and establish the emerging field of technical textiles industry in Pakistan. Technical textiles is an emerging area of high value addition. Pakistan will have to make concerted efforts to get share in the world market. This requires lots of investment in the research and development. The government still has to develop a proper strategy for the promotion of technical textiles in the country. The proposed center can become a hub for excellence to impart training, develop skills of human resource, and provide relevant information in fields like geotech, meditech and sportech. The Korea International Cooperation Agency (KOICA) will provide equipment to the center. Korea has already assured to provide latest equipment worth Rs 300 million during this year, the source said. The establishment of the center will help development of value-added and quality products chain in the country.

SOURCE: Yarns&Fibers

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India needs to export rapidly to grow 8-10%: CEA Subramanian

While the government gives concerted push to manufacturing to revive economic growth through the Make in India campaign, chief economic adviser Arvind Subramanian asserted on Saturday that India will have to focus on exports in services sector to grow at 8-10 per cent. “It is possible to harness the Make in India campaign but instead of growth being led just by manufacturing, it has to be through a combination of manufacturing and services,” said Subramanian at the Advancing Asia conference co-hosted by the International Monetary Fund and India. “We can have a uniquely Indian model, which is export-led but not just focused on manufacturing,” he said. The BJP-led government in some cases has even resorted to trade protectionism, including minimum import price, anti-dumping and safeguard duty on steel, to support domestic industry. “India can’t deviate from the historical experience and grow at eight per cent without rapid exports and just depending on domestic demand,” said Subramanian.

India’s merchandise exports fell for the 14th straight month in January on account of persistent weakness in the global demand and low commodity prices, including oil. January exports fell 13.6 per cent year on year, while imports shrank 11.01 per cent, according to data released by the ministry of commerce and industry. On macroeconomic stability, Subramanian said the government is taking a number of steps to accelerate growth and states are competing with each other, which has added to the dynamism of the Indian economy. Subramanian also raised concern over recent comments by Donald Trump, the Republican Party’s frontrunner for the US presidential elections on scrapping the H1B Visa. “His comments are very worrying about our model of growth,” Subramanian said. Subramanian also suggested that China should move from a surplus to a current account deficit economy to facilitate the current growth model. “China needs to become a current account deficit country to partly facilitate trade led model of growth for other countries and not just India,” he said. On China slowdown, Subramanian said there was a need for a coordinated fiscal response at the global level to address it. “The puzzle is not China slowing down, the puzzle is why it didn’t slowdown earlier,” he added.

SOURCE: The Business Standard

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India seeks Mexican participation in Make-in-India, Digital India programme

India and Mexico today discussed ways to enhance cooperation in key areas of trade and energy with External Affairs Minister Sushma Swaraj inviting Mexican participation in government's flagship programmes such as Make-in-India and Digital India. Swaraj and her Mexican counterpart Claudia Ruiz Massieu Salinas also talked about ways and means of elevating the special relationship between the two countries and agreed to schedule the next meeting of the Joint Commission in Mexico in the second half of 2016. The visiting dignitary had called on Prime Minister Narendra Modi yesterday.

Acknowledging that the present bilateral trade volume of $6.5 billion was low, Swaraj sought Mexican participation in the flagship programmes such as Make-in-India, Digital India, Skill India and Smart Cities, the MEA Spokesperson said in a release. The two Ministers also discussed cooperation in a number of areas including oil and gas (India is the third largest purchaser of crude oil from Mexico), renewable energy, urban planning and the housing sector. Swaraj also mentioned that India would like Mexico's participation in ensuring value addition and greater use of technology in our agriculture and agro-processing sectors. The External Affairs Minister also conveyed government's interest in providing launch facilities for Mexican micro and nano satellites. "Both sides shared their perspective on increasing engagement with the diaspora (Mexico has a 35 million diaspora in the US alone). They also exchanged views on cooperation on issues relating to women's empowerment," the Spokesperson said. The Mexican Foreign Minister renewed the invitation extended by the Mexican President Enrique Pena Nieto for Modi to visit Mexico in the near future.

SOURCE: The Economic Times

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India, Mexico need to look at tourist, business visa relaxation: Commerce Secretary

India and Mexico need to look at ways to relax visa norms for businessmen and tourists to enhance economic ties between the two countries, Commerce Secretary Rita Teaotia has said. "We need to look at the liberalisation of visa norms between the two countries to facilitate the movement of both business visitors and tourists. It could be reciprocal or it could be one way," Teaotia said a CII event here. Noting that huge trade opportunities exist in both countries, she said: "The current trade figure of $6.2 billion is just a fraction of what we can do". Officials of the commerce department are likely to visit Mexico in the coming months for a high level working group and the visit would focus on ways to enhance trade and investment ties between the two countries. The group on trade investment and economic cooperation was set up in 2007 and met last in 2012. She said if the countries do not work on the visa issues then it would make it difficult for industry and tourists to move to each other countries. "Mexico is the largest silver producer and fourth largest gold producer and we have an insatiable hunger for both," Teaotia said and suggested the two countries doing direct trade in precious metals and minerals. She added in sectors like tourism, services, pharmaceuticals, petroleum and automobiles, both sides can enhance cooperation.

SOURCE: The Economic Times

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Trans-Pacific trade deal puts India in a spot

With the signing of the Trans Pacific Partnership (TPP) agreement, one of the biggest and most significant trade deals in recent times, there is widespread speculation on how the TPP will affect India. The majority view is that this deal would adversely affect India’s trade and welfare.Experts say it would be increasingly difficult for India to export to the majority TPP partners even if it becomes a part of RCEP. Most significantly, the TPP may isolate India from being a significant export partner with the US, with whom it enjoys a preferential access.

Cost-benefit analysis

 India’s total trade with TPP countries has increased over time, reaching $152 billion in 2014, with $78 billion exports and around $74 billion imports, making a trade surplus with these countries. But the trade diversion during the post-TPP situation would adversely affect India’s exports to these countries by an estimated $190 million annually. The highest market loss would be in the US ($94 million), followed by Malaysia ($36 million), Mexico, Japan and Vietnam. If India keeps out of the TPP, the trade diversion will hit the textile sector the most, along with organic chemicals, iron and steel, vehicles other than railway or tramway, tobacco products, footwear, gaiters and the likes. In the US market, textile products would incur the highest market loss for the Indian exporter, by an estimated $56 million annually, followed by organic chemicals ($5.5 million), nuclear reactors, boilers, machinery and mechanical products ($5 million).  On the contrary, if it joins the group, India’s exports would rise by around $5.3 billion annually as against the rise in import by $10.4 billion leaving a net deficit in balance of trade of $5.1 billion. India will experience the highest trade deficit with the Japan followed by Australia, Singapore and Malaysia.

On the other hand, India is likely to experience a trade surplus with countries like Vietnam, Mexico, Peru and Chile, if it joins the bloc. Hence, the cost of participating in the TPP is much higher than not participating in the bloc. Yet India not becoming a party to the agreement is a right choice at this stage. Currently, India has signed or is in the process of signing a number of bilateral and regional Free Trade Agreements (FTAs) including the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), South Asian FTA (SAFTA), Indo Asean FTA, etc. Whether these FTAs will result in gains to the country or not is still an issue for discussion. At present, India enjoys FTAs with only three countries amongst the present TPP signatories.   There is an increased likelihood that with US at the helm of the affairs, this could eventually limit India’s trade prospects with these Pacific Rim countries.

TPP can be avoided

India needs to expedite ongoing free trade negotiations on a priority basis. It needs to identify the countries where it can enter into new trade agreements, both bilateral and multilateral, along with the new investment destinations, particularly in manufacturing. Strong coordination amongst TPP parties may increase their capacity to influence WTO outcomes and weaken India’s capacity to affect WTO outcome. To prevent such a scenario, the negotiations on RCEP should be accelerated as this could serve as a potential alternative to the present TPP in terms of the trade and prospects. India also needs to watch the changing policy and regulatory regime of the present TPP countries and explore the policy space it enjoys with respect to many of the restrictive provisions of TPP.  The restrictive investor-state dispute settlement can be completely avoided making it easier for India to invest in these countries without signing-in on obligations. Other existing domestic regulations with respect to intellectual property rights, government procurement, IT etc. can be maintained. With 40 per cent of the global economy tied with the present TPP, India should mark it as a beginning for reaching out to the rest of the world with aggressive policy measures and reform agendas.

SOURCE: The Hindu Business Line

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Asian economies led by India to be major growth driver: IMF chief Christine Lagarde

IMF chief Christine Lagarde today said Asian economies led by India will be a major growth driver in the years to come and better representation of large emerging nations in the multi-lateral institution has transformed it from “my IMF to our IMF.” International Monetary Fund (IMF) has recently ratified quota reforms giving more voting powers to emerging nations including India and also included Chinese currency Renminibi in the Special Drawing Rights (SDR) basket along with four other global currencies. “It is clear to us that… (it is) Asia where growth is originating and going to come from India and in the years to come,” she said at the Advancing Asia Conference.

Asia is a vibrant region with large and growing population, she said, adding, “the reform to transform” that was mentioned by Prime Minister Narendra Modi yesterday is a clear sign that India is on the move using the backbone of digital innovation. With regard to quota reforms, Lagarde said the large emerging market economies are now in the top 10 list of members including India. “It is embedded in the new basket of currency that determines the value of SDR which now includes the Renminbi along with four other currencies and it is making the IMF ‘our institution’ from ‘my institution’,” she said. IMF was earlier largely dominated by developed economies but with recent quota reforms, emerging market economies have got better say in the functioning of the Washington-based funding agency. The 3-day Advancing Asia conference also dwelled on unconventional monetary policy adopted by advanced countries to push growth in their country. There is a need to examine the issue of spillover effect of unconventional monetary policy in view of the interconnectedness of global economies, she said. “The interconnectedness…the relationship that is sometimes fruitful, sometimes full of hazards between advanced and emerging market economies… and (monetary policies) how we can actually help each other rather than hurt each other,” she said. “Clearly there has been a lot of talk about spillover, spillbacks, impact of monetary policy decision made elsewhere, the volatility induced asset price modification — all of that have been taken into account by us as an institution in the three dimension that we operate in order to be extremely relevant and tailored to the needs of members. “We need to adopt and adjust our approach both in terms of lending and capacity building to specific needs of the region, countries that are very interconnected together and that exposed to decision made outside their jurisdictions,” she added. At the end of the three-day conference, IMF had meeting with finance ministers and central bank governors of Asian region. Praising the Aadhaar platform for targetted delivery of subsidies, Lagarde said the system that is being put in place in India is going to have massive ramifications in terms of benefits. “It is going to help in cleaning up system…I think there would be lot to be learnt from its implementation which is going to affect revenue generation. We are going to learn from that,” she said.

SOURCE: The Financial Express

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GST Bill might be passed in April: FM

Finance Minister Arun Jaitley on Sunday said he was hopeful that the much-delayed Constitution amendment Bill on goods and services tax (GST) would be passed in the second half of Parliament's Budget session, in April. He also expressed hope for the bankruptcy and insolvency Bill. In the first half of the Budget session, the key Aadhaar and Real Estate Regulation Bills were passed. Jaitley said the GST and bankruptcy Bills would give a major push to India's reform process, in an otherwise weak global economic weather. "The current session of Parliament has already seen a landmark legislation passed two days ago. And I do hope to see another two being passed in the second part of the session," he said at the end of the three-day Advancing Asia Conference, co-hosted by India and the International Monetary Fund.

The GST and bankruptcy Bills are among key reforms for India, the progress of which is being keenly watched by the global investors. The constitution amendment Bill for GST has already been passed by the Lok Sabha and is pending ratification by the Rajya Sabha, where the ruling National Democratic Alliance does not have a majority. After it is approved by the Rajya Sabha, the legislation needs to be ratified by at least half the 29 states. The second half of the Budget session will begin on April 20. Once the bankruptcy and insolvency Bills is approved, Jaitley said, "It will give a major fillip or push to our reform process."

Exhibiting determination to move on the reform path, India can provide a significant growth to the world, he said. The GST Bill is proposed to usher in a unified indirect tax regime, which will subsume various taxes like excise, service tax, value added tax, sales tax, and octroi, at both the state and the Centre levels. "We are trying to have special emphasis now, both in terms of legislative changes and resources being put to strengthen the banking system. I do feel the next few months are going to be extremely important in bringing about structural change," the minister said. Stating India has its own share of problems, Jaitley said there was increased determination in the country to face the challenges and accelerate the pace of reforms, so as to continue to grow. "Our growth model is based on concerns to eradicate poverty," he said.

SOURCE: The Business Standard

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Tainan firm leads Taiwan textile industry makeover

Everest Textile Co. Ltd of Taiwan's Tainan City is leading the way in transforming the country's textile sector through industry 4.0 innovation while cementing the country's top-tier position in the global functional fabric supply chain. A long-term supplier to international sportswear giants like Adidas, Nike and Under Armour, Everest Textile has championed intelligent automation since 2014. This approach reflects company President Roger Yeh's firm belief in the value of business innovation, Taiwan's official website Taiwan Today said. “We are the first smart textile firm in Asia employing big data, cloud computing and smart networking technology to re-engineer operations,” Yeh said. This $10.59 million root-and-branch upgrade should raise Everest's production efficiency by 30 per cent while eliminating 30 per cent of manual labor processes by year-end. “We expect to fully recover our capital outlay in 18 months,” Yeh added.

In addition to quantifiable benefits, Yeh said his smart factory in southern Taiwan is turning out a new breed of employees adept in the latest automation technologies. This is opposed to traditional textile mills using foreign workers for routine tasks such as operating equipment and maintenance. “These advantages will ensure we remain at the head of the pack in the highly lucrative functional fabric sector and differentiate ourselves from competitors, especially those from mainland China.”

Responsible environmental practices are another important plank in Everest's business model, Yeh said. “All private sector outfits should commit themselves to protecting the environment and playing a part in safeguarding our planet's future.” Following the company's decision in 2007 to adopt energy saving measures and convert manufacturing facilities into green buildings, Yeh said annual energy consumption dropped 27 per cent. By sharing Everest's experiences with other local textile firms aspiring to ride the industry 4.0 wave, Yeh remains confident the sector can continue to enjoy global competitiveness on the strength of superior business know-how and product quality. “More importantly, Taiwan firms are committed to working with their clients for the best solutions,” he said. “Such a farsighted business approach makes us stand head and shoulders above the rest.”  

SOURCE: Fibre2fashion

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Pakistan to abolish VAT on textiles

Pakistani Commerce Minister Khurram Dastagir Khan, has said that in order to encourage the textile sector, the value added tax (VAT) would become zero from July 1, 2016. The minister's comments came during an interaction with reporters after inaugurating the 15th Textile Asia 2016 Exhibition in Karachi recently. He also that the export of Pakistani readymade garments has increased in the international market and so have the prices due to quality products substantiated with value addition in the products. Khurram Dastagir said Pakistan's biggest textile and garment machinery trade fair, Textile Asia would be beneficial for the local textile industry and would enhance the country's exports. He said that the display of the modern machinery will also benefit the textile sector and those associated with the industry would also be able to boost their capacity. The exhibition was jointly organized by the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and Ecommerce Gateway Pakistan. More than 550 international brands displayed their products in the exhibition.

SOURCE: Fibre2fashion

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Uganda's Textile Industry slowed down due to delayed policy

A decade ago, Uganda produced 254,000 bales of cotton annually, each weighing 185kg. About 10 percent of Uganda's annual cotton output is processed locally and 90 percent of its cotton as lint (primary form) is exported as value addition continues to elude the industry due to the delayed National Textile Policy. The country has more than 38 cotton lint exporters with some ginning. The policy was formulated in 2009, debated and passed, but it is yet to be implemented. The efforts to revive textile industry have slowed down leading to the loss of about Ush500 billion ($149.4 million) annually, in the form of exports of unprocessed cotton. Samuel Ssenkungu, director in charge of the department of Trade, Industry and Co-operatives at the Ministry of Trade, said that the lack of funds is hindering the policy's implementation. The biggest challenge is transferring the policy recommendations to respective ministries during the budgetary formulation process. The policy, for example, requires all government primary schools to buy uniforms produced in the country. But this has not happened, added Mr Ssenkungu. The lack of value addition means the country earns far less revenue than it would otherwise get. Whereas a kilogramme of exported cotton fetches approximately $1, a twofold piece of cloth made from the same quantity of lint can fetch at least $8. This is in addition to other benefits from the industry such as job creation. Consequently, whereas Uganda earned $46.9 million from the 254,000 bales of cotton produced annually a decade ago, the same cotton would generate about $375. 9 million today, exported in processed form.

The National Textile Policy notes that with an East African population of 120 million people, the region has a market potential for 820 million metres of cloth per annum, generating about Ush1.4 trillion ($415 million). Uganda's cotton farmers also have a market potential of 400 million people in the Common Market for Eastern and Southern Africa (Comesa) which the country is part of. Comesa requires some 2.4 billion metres of clothes per annum, at an average per capita consumption of six metres. Other trading regimes that Uganda is part of are the East African Customs Union, the Economic Partnership Agreement (EPA) with the European Union, the Africa Growth and Opportunity Act (Agoa), and the Everything-but-Arms (EBA) initiative which guarantee broad market access. Such market sizes would be significant in attracting investors. Agoa and EPA duty- and quota-free access to the US and the EU has been constrained by Uganda's inability to produce internationally acceptable standards of fabric.

SOURCE: Yarns&Fibers

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Dutch Govt ensure sustainable garment production and textile supply chain

The Dutch government with a broad coalition of industry organizations, trade unions, civil society organizations have tabled an agreement to achieve practical improvements in and ensure the sustainability of the international garment and textile supply chain. For example, they want to address problems such as dangerous working conditions and environmental pollution. The next steps in this process will be to secure funding of the agreement and have it signed – in June – by at least 35 companies in the sector, who together represent at least 30 percent of sales in the Netherlands. The parties to the agreement will then also sign it. The agreement has been drafted under the guidance of the Social and Economic Council of the Netherlands (SER). Dutch Minister of Foreign Trade and Development Cooperation, Lilianne Ploumen, said that this widely supported agreement, enterprises and civil-society organizations are taking a great step forward in combating malpractices in the garment and textile industry in developing countries.

Together, they will endeavour to improve working conditions in these countries and make the manufacturing process more environmentally friendly. This is very good news for all those people who are still working excessively long days in dangerous conditions for very low pay. It’s also good news for the industry as a whole and for the consumer: everyone will be better off as a result. They have agreed to work together on the following issues in garment and textile production in countries such as Bangladesh, India, Pakistan and Turkey: protection from discrimination; protection from child labour; protection from forced labour, meaningful dialogue with independent employee representatives, achieving a living wage, safe conditions and a healthier environment for employees; reducing adverse environmental impact by saving on raw materials and creating a circular economy; reducing the amount of water, energy and chemicals used; reducing chemical waste and waste water; and prevention of animal suffering.

According to SER, the agreement offers the parties “a wealth of opportunities to work together on objectives that are hard to achieve individually, such as living wages, stronger trade unions and the reduction of excessively long working days. For example, participating enterprises will be identifying the issues that affect their suppliers at all stages of the chain and will draw up an annual improvement plan with specific objectives for a period of three to five years. The quality and ambition of the improvement plans will be assessed. The participating trade unions and civil society organizations will support the joint improvement plans with their knowledge and expertise and will involve their local partners in the implementation process. The Dutch government will try to reach agreements with governments in production countries about reinforcing their health and safety inspectorate. If local partners believe that their rights have been breached, they can take their case to a complaints committee, whose rulings will be binding. Each year, the parties will issue a joint report on their activities under the agreement and the results achieved. From the third year onwards, the individual participating enterprises will also be communicating publicly on their own account. The creation of the text of the agreement is a major intermediate step in an intensive joint consultation process under the guidance of the SER. SER chair Mariëtte Hamer said that by signing this agreement, these parties are committing themselves jointly for the first time to making the sector sustainable. This is a breakthrough and a suitable follow-up to our advisory report from 2014.

In its advisory report on agreements on international responsible business conduct, the SER called for sectors and enterprises to take the initiative to enter into agreements on international responsible business conduct with the government, trade unions and civil-society organizations. This creates a new tool for actually addressing risks of breaches of human rights and environmental damage in the supply chain. The broad coalition is made up of the industry organizations VGT, Modint and Inretail, the trade unions FNV and CNV, the Dutch government and the civil society organisations Solidaridad, UNICEF Nederland, India Committee of the Netherlands, the Dutch Stop Child Labour Coalition and Four Paws Netherlands.

SOURCE: Yarns&Fibers

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Confederation of Zimbabwe Industries (CZI) signs trade agreement with Turkish industrial association to boost trade

The two associations, Confederation of Zimbabwe Industries (CZI) and Turkish industrial association has signed a collaboration agreement with an aim to boost trade and business linkages between them. Speaking at a round table economic briefing organised by CZI in Bulawayo on Wednesday, CZI president Busisa Moyo said that the agreement will allow local companies to do business with Turkey with minimal hurdles. Moyo further added that the agreement would help companies in the textile industry to boost their businesses through exports and accessing raw materials from Turkey. The biggest challenge the country have right now is a polarised environment, the political environment, in particular, that’s affecting business at a time when the situation is precarious, Moyo said. Captains of industry who were present at the meeting called for the speedy operationalisation of the National Competitiveness Commission, the establishment of special economic zones and fine tuning of the new labour regulations. They suggested adoption of internal devaluation approach to tame costs of production and setting up an acceptable minimum wage.  They also discussed strategies to curb imports and reverse the trade deficit, currently estimated at $3,3 billion annually. National Blanket general manager Freedom Dube who was present at the meeting expressed interest in the agreement.

SOURCE: Yarns&Fibers

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