The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal chaired a meeting focused on the revamping and fortification of the Department of Commerce to make it future ready. The strengthening of the department is expected to facilitate the creation of the ecosystem necessary to achieve the target of USD 2 Trillion exports by 2027. Speaking at the meeting, Shri Piyush Goyal called for the consistent strengthening of the Directorate General of Foreign Trade (DGFT) and other organizations and bodies that promote investment and trade. He opined that constant monitoring of exports was crucial in ensuring the achievement of targets on time. It may be noted that there are several emerging opportunities in global trade owing to shifts in global trade dynamics like rapid growth of services and disruptive potential of climate change. There is thus an imminent need to proactively develop exports and build India’s brand in global trade. The revamping of the Commerce Department is aimed at further building on its strategic direction and aspirations for the next decade. There is also a need for scaling up and reengineering the operation model with enhanced 'new-age' capabilities and to move from inherent traditional roles to new roles. The revamped Department to have a more coherent trade promotion strategy with clear targets and execution accountabilities. There will be a Strengthened negotiation ecosystem with right expertise and robust end-to-end processes with clearly defined focus areas and institutions. It aspires to achieve an optimal mix of talent with specialists and generalists sourced from across private and government sectors. The Department will have an agile setup responsive to market opportunities and exporter needs via interlinkages across bodies. There will also be synergized branding for India across all domains highlighting clear priority areas. To this end, a project was undertaken to design a future ready Department of Commerce. Certain key recommendations were made by the project. A dedicated 'Trade Promotion Body' to drive overall promotion strategy, export targets and execution is proposed to be set up. A stronger active role for missions in Trade Promotion for market intel, leads generation & localized research has been envisaged. Strengthening Negotiations via multi-skilled negotiation teams and separation between bilateral and WTO negotiations has been envisioned. It has also been proposed to set up a 'Trade Remedies Review Committee' Including Ministry of Commerce and Industry, Ministry of Finance and line ministries for transparency in investigations outcomes. Centralization and digitization of trade facilitation processes has been recommended to drive ease of compliance and scheme administration. Rehauling data and analytics ecosystem via centralized data management and embedded analytics capabilities in Department of Commerce has been proposed. A concerted push to strengthen Brand India and re-enforces trade priorities is in the works. The meeting was attended by Shri BVR Subrahmanyam, Secretary, Department of Commerce, Shri Amitabh Kant, CEO, NITI Aayog, Ms. Rachna Shah, Additional Secretary, Shri Santosh Kumar Sarangi, Director General, DGFT, Shri Prashant Kumar Singh, CEO, GeM, Shri Anant Swarup, Joint Secretary, Shri Darpan Jain, Joint Secretary, Shri Manish Chadha, Joint Secretary and other officials.
Source: PIB
India will gain greater, duty-free market access in many labour-intensive sectors, such as gems & jewellery, textiles & garments, leather and farm products. Similarly, it will have market acess in pharmaceuticals and engineering goods, among others. India clinched its first free trade agreement (FTA) in over a decade on Friday, as it signed the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, with both the sides pledging to boost bilateral trade to $100 billion in five years, from about $60 billion now. India will gain greater, duty-free market access in many labour-intensive sectors, such as gems & jewellery, textiles & garments, leather and farm products. Similarly, it will have market acess in pharmaceuticals and engineering goods, among others. Similarly, the UAE will have easier access India’s metal, minerals and petroleum sectors. About 90% of India’s goods exports to the UAE are likely to be covered by the FTA. It will help create about a million jobs in India. The CEPA was signed by commerce and industry minister Piyush Goyal and UAE’s minister of economy Abdulla bin Touq Al Marri at a virtual summit attended by Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan. Both the sides will now initiate due processes of ratification in the coming weeks. “Both nations are entering a golden era of economic & trade cooperation with the signing of India-UAE CEPA,” Goyal tweeted after the agreement was signed. “Sky is the limit for our trade & economic ties as we commit to building a shared future & enhancing the prosperity of our people,” he said. India had identified more than 1,000 products across sectors, including gems & jewellery, textiles & garments, leather, spices, engineering goods, chemicals and poultry, where it wanted duty concessions from the UAE under the FTA. Both the sides started formal negotiations from September 23 last year. While the UAE, India’s third-largest export destination, currently imposes a 5% duty on textiles & garments and jewellery, certain steel products are taxed at 10%. These three segments alone made up 34% of India’s $16.7-billion exports to the UAE last fiscal and 43% in the pre-pandemic year of FY20. For its part, Abu Dhabi, too, has sought duty concession across broad range of products, including in food items such as dates and confectionary. The FTA envisages several partnerships across sectors. It proposes investment zone in India for UAE firms and a dedicated India Mart in Jebel Ali Free Zone. Both the sides pledge to create opportunities for Indian investors in advanced industrial technology zones in Abu Dhabi, with focus on logistics, pharma, medical devices, agri, steel and aluminium. The UAE will also support India’s energy needs and ensure affordable supplies. To boost cooperation in climate actions, both the sides agreed to set up a joint hydrogen task force to scale up technologies. India has also agreed to set up an IIT in the UAE. Earlier this week, Gem and Jewellery Export Promotion Council chairman Colin Shah said the proposed FTA will help drive up India’s gem and jewellery exports to the UAE to as much as $10 billion by FY23 from just $1.2 billion in FY21 (when the shipments were hit by the pandemic). The UAE accounts for 80% of India’s plain gold jewellery exports and 20% of its studded jewellery shipments. Abu Dhabi is also a gateway to the entire West Asian region, Shah said. The negotiations with the UAE are a part of India’s broader strategy to forge “fair and balanced” trade agreements with key economies and revamp existing pacts to boost trade. The move gained traction after India pulled out of the China-dominated RCEP talks in November 2019. India is also engaged in talks with Australia, the UK and the EU for FTAs.
Source: Financial Express
The possibility of opening a textile park in Bhagalpur is increasing. The Additional Chief Secretary of Industries Department has asked Bhagalpur DM to provide 1000 acres of undisputed land for this project. After receiving the letter of the Additional Chief Secretary, now land is being searched in all the 16 circles of the district. The Revenue Department has asked all the Circle Officers to send the report related to the undisputed land soon. If 1000 acres of land is not received, then there is a danger of returning the project. In the Union Budget for the financial year 2021-22, it was announced to open seven PMMitra (PM Mega Integrated Textile Sector and Apparel) parks. After the notification was issued by the Ministry of Textiles on October 21, 2021 for setting up of Mitra Parks, the land related proposals were sought to the respective states. Due to the third wave of Corona, this letter remained in the file. Now the restrictions are over, then again the search for land for PM Mitra Park started. Spinning, weaving, dyeing and garment manufacturing will be done at one place The park is to be built through Public Private Partnership (PPP) mode. In this, 51 percent of the amount is to be spent by the state and 49 percent by the central government. With the opening of the park, one lakh direct and two lakh indirect jobs will be created. From spinning, weaving, dyeing-printing to garment manufacturing will be done at one place. This will also reduce the logistics cost of the integrated textile value chain industry. Being a silk city, Bhagalpur got an opportunity in the form of a park. Departmental officials said that the state government has put Bhagalpur on the first priority for the establishment of this park. The reason for this is that the manufacture of garments from silk and handloom fabrics is being done here for a long time. Annual turnover of about 500 crores has been done here. In such a situation, with the construction of the park, there will be an increase in business as well as employment. A letter has come from the Industries Department demanding 1000 acres of land to open a textile park. All the COs have been asked to submit the report of such a large plot. After receiving the report, the proposal will be sent to the Industries Department. Rajesh Jha Raja, ADM.
Source: Live Hindustan
India's gross domestic product (GDP) is likely to grow at 5.8% in the third quarter of fiscal 2022 from October to December, says Ecowrap- SBI's research report. The country's gross domestic product (GDP) is likely to grow at 5.8 per cent in the third quarter of fiscal 2022, according to an SBI's research report- Ecowrap. The country's economy expanded by 8.4 per cent in the second quarter of 2021-22, to cross pre-pandemic levels. However, the GDP growth in July-September period was slower than the 20.1 per cent expansion in the previous quarter. The National Statistical Office (NSO) will declare the GDP estimates for Q3 FY 2021- 22 on February 28. "As per SBI Nowcasting Model, the forecasted GDP growth for Q3 FY22 would be 5.8 per cent, with a downward bias. The full year (FY22) GDP growth is now revised downwards to 8.8 per cent from our earlier estimate of 9.3 per cent," the report said on Friday. The Nowcasting Model is based on 41 high frequency indicators associated with industry activity, service activity, and global economy. The real GDP will be around Rs 2.35 lakh crore more / 1.6 per cent higher than the FY20 real GDP of Rs 145.69 lakh crore, the report said. The report said the recovery in domestic economic activity is yet to be broad-based, as private consumption remained below pre-pandemic levels. The high frequency indicators suggest some weakening of demand in Q3 also continuing to January 2022, reflecting the drag on contact-intensive services. Rural demand indicators, say two-wheeler and tractor sales, continued to decline since August 2021. Amongst the urban demand indicators, consumer durables and passenger vehicle sales contracted in Q3, while domestic air traffic weakened in the wake of Omicron variant spread. Investment activity though, is displaying a traction in pick up, with merchandise exports remaining buoyant, it said. The report said this slower growth momentum reconfirms recent assertion that incipient growth recovery needs to be supported by accommodative policy longer than anticipated. "We thus expect liquidity normalization may be delayed. This could have a further softening impact on government securities (G-sec) yields from current 6.7 per cent towards around 6.55 per cent or so," the report said. The report suggested that the government can offer livelihood loans, say up to Rs 50,000 to rural poor. This loan may be given on the premise that interest-servicing alone will keep the loan standard with subsequent loan renewal linked to successful repayment record, it said. "If the government were to bear, say, 3 per cent interest subsidy, on a portfolio of Rs 50,000 crore, the outlay would be only Rs 1,500 crore during 2022-23. And these loans will also act as a big consumption booster at subsistent levels," it said. The additional advantage of these micro livelihood loans is that they will help the banking system prepare a comprehensive database and credit history of marginal borrowers that can be further leveraged to create new credit-worthy borrowing classes, the report said. The present overdraft facility for PMJDY accounts in the banking system, in existence for sometime can be streamlined and tech enriched with a central nodal agency/bank to monitor and promote the scheme meaningfully, it said. The report further said that given the significant success of vaccination in the third wave in rural pockets, the livelihood loans can be the silver bullet catapulting the broader economy to unprecedented highs.
Source: Business Standard
The Budget 2022 for the education and skilling sector rightly focused on expanding reach, improving quality education, building capacity, and strengthening the digital skill ecosystem. Further, to brainstorm and discuss ways for effective implementation of initiatives announced in the Budget, the Ministry of Skill Development and Entrepreneurship (MSDE) and the Ministry of Education, along with other ministries, is organising a session in Skill India webinar themed- ‘Towards Fostering Stronger Industry-Skill Linkage,’ on Monday, February 21, 2022 from 12:15 PM to 2:15 PM. The webinar will be attended by the government officials, industry experts and representatives of key associations. The session is a part of a series of seminars being inaugurated by the Prime Minister Shri Narendra Modi. He will be addressing the first webinar themed on ‘ Digital University: Making World Class Higher Education Accessible for All. The Skill India webinar will be co-chaired by Shri Arvind Singh, Secretary, Ministry of Tourism, Shri Rajesh Aggarwal, Secretary, MSDE, and Shri Anurag Jain, Secretary, DPIIT. The panellists for the session are Shri N.S Kalsi, Chairman, National Council for Vocational Education & Training (NCVET); Shri Amber Dubey, Joint Secretary, Ministry of Civil Aviation and Shri Manish Sabharwal, Vice Chairman, Teamlease Services. The session will be moderated by Mr. Ved Mani Tiwari, COO, National Skill Development Corporation (NSDC). During the session, broader aspects on strengthening the skill ecosystem by enhancing digital skills will be discussed. The panellists will share their views on the recent announcements made by our finance minister in the Budget 2022 including deliberations on DESH stack that aims to empower citizens to skill, reskill or upskill themselves through digital training. Further, the session will cover aspects of successful implementation of National Skill Qualification Framework (NSQF) targeted to fulfil the dynamic industry needs, expansion of emerging technologies and training through Drone Shakti scheme, helping increase domestic manufacturing and creating employment. The facets related to PM Gati Shakti programme will also be discussed during the discourse. The session will also put spotlight on sectors like Tourism and Logistics.
The participating ministries and departments in the webinar are- The Department of Higher Education under the Ministry of Education (MoE), Dept. of School Education and Literacy, Ministry of Skill Development & Entrepreneurship (MSDE), Ministry of Electronics and Information Technology, Ministry of Housing and Urban Affairs, Ministry of Civil Aviation, Dept. of Promotion of Industry & Internal Trade, Dept. of Telecom, Bhaskaracharya National Institute for Space Applications and Geoinformatics (BISAG-N), Ministry of Tourism, Dept of Economic Affairs, Academia and Ministry of Information and Broadcasting.
Source: PIB
The Services Export Promotion Council is working on a new incentive scheme for select sectors wherein the benefits for exports range from 3-10% unlike the SEIS, which provided duty credit scrips to exporters at the rate of 3-5% of the net foreign exchange earned. "We are working on sector-wise benefits for 12 champion sectors and will soon submit them to the government," said Sunil H Talati, chairman, Services Export Promotion Council. Exporters of service have suggested a 10% incentive rate for Covid-19 hit sectors such as hospitality, aviation and tourism, under a new scheme to replace the Services Export from India Scheme (SEIS). The Services Export Promotion Council is working on a new incentive scheme for select sectors wherein the benefits for exports range from 3-10% unlike the SEIS, which provided duty credit scrips to exporters at the rate of 3-5% of the net foreign exchange earned. "We are working on sector-wise benefits for 12 champion sectors and will soon submit them to the government," said Sunil H Talati, chairman, Services Export Promotion Council. The government had last year released ₹10,002 crore to clear the pending services export incentive dues. Last year, the council had proposed a Duty Remission on Export of Services Scheme to refund taxes to services exporters wherein small and micro exporters would be eligible for a 7% incentive while the large ones would get 4%. As per the council, the higher sops - on which it is currently working - will also enable Indian service providers to face competition from the Philippines, Cambodia, East and South African countries as they provide services at a cheaper rate. "There is a 20% price difference between the salaries given by Indian and South African service providers such as accounting and booking keeping," Talati said. The proposal for higher sops comes after the government last September imposed a limit on the total entitlement under the SEIS for shipments made during 2019-20 at ₹5 crore per exporter.
Source: Economic Times
Subrahmanyam Synopsis To protect sensitive sectors, India has kept certain segments out of the ambit of this agreement. These include dairy, fruits, vegetables, cereals, tea, coffee, sugar, food preparation, tobacco, petroleum waxes, coke, dyes, soaps, natural rubber, tyres, footwear, processed marbles, toys, plastics, scrap of aluminium and copper, medical devices, TV pictures, auto and auto components and sectors under the PLI scheme. New Delhi: Commerce secretary BVR Subrahmanyam on Saturday said areas where India's manufacturing is growing and sectors wherein the government has rolled out production-linked incentive (PLI) schemes have been put on the negative list in the trade pact with the United Arab Emirates (UAE). To protect sensitive sectors, India has kept certain segments out of the ambit of this agreement. These include dairy, fruits, vegetables, cereals, tea, coffee, sugar, food preparation, tobacco, petroleum waxes, coke, dyes, soaps, natural rubber, tyres, footwear, processed marbles, toys, plastics, scrap of aluminium and copper, medical devices, TV pictures, auto and auto components and sectors under the PLI scheme. India and the UAE on Friday signed a comprehensive economic partnership agreement (CEPA), under which a number of domestic goods will get zero duty access to the UAE market. The pact may come into force in April or May. Subrahmanyam also said the domestic jewellery sector would get an export boost as it would get duty free access there. The gold market here as India would give duty concessions on import of up to 200 tonnes. India has agreed to concessional import duties on gold imports of up to 200 tonnes per year. The country imported about 70 tonnes of gold from the UAE in FY21. "We are a major importer of gold. India imports about 800 tonnes of gold every year. In this particular agreement, we have given them (UAE) a TRQ (tariff rate quota) of 200 tonnes where the tariff (or import duty) in perpetuity will be 1% less than whatever is the tariff charged for the rest of the world," the secretary said in a briefing. "Therefore, the UAE has a 1% price advantage in gold bars. That 1% tariff difference means those 200 tonnes will be diverted to the UAE," he said, adding that the biggest gain for India is "that we get zero duty access" to the UAE market for domestic jewellery. There was a 5% duty on jewellery and now "it's gone to zero" so the gem and jewellery sector is "gung-ho", according to Subrahmanyam. TRQ is a quota for a volume of imports that can enter a country at specified tariffs. After the quota is reached, a higher tariff applies on additional imports. TRQ would also be there for copper, polyethylene and The agreement also has a chapter on digital trade which, the secretary said, has been included for the first time in a trade agreement signed by India and it shows that India is ready to talk on this bilaterally. "There will be a lot of harmonisation in regulatory standards on how you manage digital trade between India and UAE... We (India) are discussing digital trade or e-commerce with the EU Australia, the UK and Canada," he said.
Source: Economic Times
Commerce & industry minister Piyush Goyal on Sunday chaired a meeting focused on “the revamping and fortification” of the department. The government is planning to restructure the department of commerce in a bid to create the necessary eco-system to take advantage of growing global demand for industrial commodities, and realise the lofty goods and services export goal of $2 trillion by 2027- 28. It will also hire trade specialists, including from the private sector, wherever required. Commerce & industry minister Piyush Goyal on Sunday chaired a meeting focused on “the revamping and fortification” of the department. Merchandise and services exports are targeted to rise to $640 billion in FY22 from about $495 billion in the last fiscal, when the pandemic caused massive supply disruptions. Experts handling a project, undertaken to design a “future-ready” commerce department, have suggested that a dedicated trade promotion body be set up to drive overall promotion strategy, export targets and execution. A stronger active role for overseas missions in trade promotion, market intelligence, leads generation and localised research has been envisaged. The commerce ministry has decided to further bolster the teams tasked with negotiations on trade matters. Separate teams of specialists may be appointed to handle bilateral and multilateral (WTO) talks. A trade remedies review committee, including representatives from the ministries of commerce, industry, finance and other line ministries, will be set up for transparency in investigations outcomes. Data and analytics ecosystem through centralised data management and embedded analytics capabilities will be strengthened in the commerce department. A concerted strategy to bolster Brand India and re-enforce trade priorities is also being worked out. The revamped commerce department will have a more coherent trade promotion strategy, with clear targets and execution accountabilities. “There will be a strengthened negotiation ecosystem with right expertise and robust endto-end processes with clearly defined focus areas and institutions. It aspires to achieve an optimal mix of talent with specialists and generalists sourced from across private and government sectors. The department will have an agile setup responsive to market opportunities and exporter needs via interlinkages across bodies,” the commerce ministry said.
Source: Financial Express
Adviser to the Prime Minister on Commerce, Textile, Industry and Production, and Investment Abdul Razak Dawood has said trade with India is the need of the hour and beneficial to both countries. Also, Russia wanted to do investment in the field of construction and lay pipelines in Pakistan, he said on Sunday. “As far as the ministry of commerce is concerned, its position is to do trade with India. And my stance is that we should do trade with India and it should be opened now,” Mr Dawood said in an interaction with media at an exhibition on engineering and healthcare organised by the Trade Development Authority of Pakistan. “The trade with India is very beneficial to all, especially Pakistan. And I support it,” he added. About the exports to Afghanistan, the advisor said his ministry had increased the number of exporting items to Afghanistan (in Pakistan rupee) to 17. “Still various businessmen are contacting me to include their articles / items in this list as they also want to export their goods to Afghanistan in Pak rupee,” he claimed. Talking about the trade relations with Russia, Mr Dawood said Pakistan’s exports to Russia and the countries bordering it (central Asia) and others required immediate attention and growth. “So we need to open this trade. And that is why we are going there,” he said, adding that Russia wanted to work in Pakistan in the fields of laying pipelines, constructions etc. As for exports, he said the textile exports would reach Rs21 billion target in FY 2021-22 ending on June 30. The next year’s textile exports target is Rs27 billion. But the country should diversify its exports since its products range is squeezed. “Our major export destinations are Europe, North America (especially the USA) and China. But our range of products needs to be increased. And I think, our engineering and healthcare-related goods can be added in the list of exports,” he said. He admitted skyrocketing prices and their adverse impact on the common people. “I agree with you on this issue. But this issue will persist due to imports of oil, raw material, machinery and other goods,” Mr Dawood said.
Source: Dawn
Federation of Indian Export Organisations (FIEO) President A Sakthivel said that the pact will be beneficial to Indian exports particularly for the labour-intensive sectors like agriculture and processed food including meat and marine products, gems and jewellery, apparel and textiles, leather and footwears. Implementation of the comprehensive free trade agreement between India and the UAE would help boost the country's exports and creation of lakhs of jobs, according to exporters. Welcoming the signing of the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates (UAE) on Friday, Apparel Export Promotion Council (AEPC) Chairman Narendra Goenka said that it will further strengthen India's dominant position in the UAE. "With India supplying USD 1,515 million of apparel to the UAE as against its total imports of USD 3,517 million, Indian apparel exports contribute a decent share of 43 per cent. The trade pact would result in a drop of 5 per cent import duty for Indian readymade garments. This will further strengthen the dominant position of Indian apparels in the UAE," Goenka said. He added that Indian apparel exports to the UAE also cater to the needs of Saudi Arabia, Kuwait, Bahrain, Oman and the UK. Federation of Indian Export Organisations (FIEO) President A Sakthivel said that the pact will be beneficial to Indian exports particularly for the labour-intensive sectors like agriculture and processed food including meat and marine products, gems and jewellery, apparel and textiles, leather and footwear. "Having a large Indian diaspora, the UAE consumes a large quantity of Indian cereals, fruits and vegetables, tea, spices, sugar, etc. Indian companies will gain in services like travel & tourism, transportation, IT and ITES and construction services," he said. Sharing similar views, Vikramjit Sahney, Chair of India-Arab Council, said that the pact is set to reduce tariffs for 80 per cent of goods and gives zero duty access to 90 per cent of India's exports to UAE. "Annual bilateral trade should increase from the current level of USD 60 billion to USD 100 billion and would augment. "India giving tariff concessions to UAE on gold and UAE eliminating tariffs on Indian jewellery will augment exports. The UAE investment in India will increase manifold especially in health, infrastructure and renewable energy," he added. Council for Leather Exports Chairman Sanjay Leekha said that the UAE is one of the key markets for the sector and it would also give access to certain EU countries and Africa. "The pact would help in boosting exports and creating jobs," Leekha said. Plastics Export Promotion Council of India (PLEXCONCIL) chairman Arvind Goenka said that currently India's annual imports of plastic raw materials are USD 14 billion and imports from the UAE are USD 800 million, so trade for plastics between India and the UAE is poised for a multifold growth due to this pact besides creation of about 2 lakh jobs in the sector. "India's MSME industry will be the main beneficiary. Availability of cheaper raw materials as preferential import duty being offered by India will empower them to compete against cheap imports of finished plastic goods. Preferential access to the UAE market, as lower import duty is being offered for value added plastics and further access to WANA and CIS countries, will increase plastics exports by at least 300 per cent by 2023-24," Goenka said. Founder chairman of TechnocraftIndustries India Sharad Kumar Saraf said the agreement has the potential of adding at least USD 2 billion in India's exports. "It will also strengthen our ties with the UAE . Indian diaspora in the UAE will play a vital role in Indo UAE trade," he added. FIEO Vice President Khalid Khan too said that the pact will help boost bilateral trade between both the countries. "It will benefit both goods and services. 90 per cent goods exports will have duty-free access to the UAE which is the biggest trading partner after the US and China and getaway to the Middle East and African countries," Khan said. Kolkata-based marine exporter Yogesh Gupta said that this is a historic event paving the way for larger economic ties and the trust between India and the UAE. "It will have a long term effect on diplomatic relations as well. A move in the right direction," he said. India and the UAE on Friday signed the trade pact after concluding negotiations in a short time of 88 days. The pact aims to take the two-way commerce to the USD 100 billion mark in over five years and create about 10 lakh jobs in sectors such as apparel, plastic, leather and pharma.
Source: Economic Times
Textile, Garment and Tailoring Workers of Nigeria tasks government on reviving Textile Industry. Nigeria needs to create an enabling environment to attract investors to its textile industry. The National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) has highlighted the country’s need for an enabling environment in order to attract investors to its textile industry. The President of the association, Mr John Adaji, who also is Co-Chair, Industrial Global Union, Sub-Saharan Africa Region, made the plea in an interaction with Voice of Nigeria in Lagos State, South-west Nigeria. Adaji said that government must intensify efforts to stop importation of foreign fabrics to encourage citizens patronize locally made fabrics. Mr John Adaji, President of the National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN). “We commend President Buhari; he signed Executive Order 003 to compel government institutions to patronize local products. Of course it will be signed, it will pass, but we must walk our talk. “Our cry is that we have government institutions that use these clothes: Army, Navy, Air Force, Police, Immigration, Customs, Unity Schools, Youth Service Corps. “If all those clothes are produced in Nigeria, used by them, I can bet you, fifty percent of these closed down factories will come back. “The negative impact of China, India, these are where they make use of child labour. “They can produce all rubbish and dump it to any country and they continue to push it with the aid of bad guys in Nigeria, who aid them. “Go to Kano, you will see, in trucks they come in, you see Customs accompanying those trucks. “In 2016, they discovered from three ware houses forty-one billion Naira worth of goods in imported fabrics. “…As if they would be seized, but they were later released to the market. Government institutions should do their job, custom must do their job,” he added. He charged Nigerian leaders to lead by example by wearing only made-in-Nigeria fabrics. “I listened to Cyril Ramaphosa of South Africa, a working President. He also gave the factory that produces the shoes he wears. That is leadership by example. “What I wear is produced in Lagos State here, ‘Nichemtex’ but since two years now, since COVID-19, it has not re-opened, it’s shut down. Mr. Adaji relived the days when the Nigerian textile industry used to be the second largest employer of labour after the Federal government: “…When they say we need to get to where we ought to be, it is as if we were not once there. “Nigeria in the old was there.
Source: TDPEL Media
Turkey and the United Arab Emirates (UAE) recently signed several agreements to build economic bridges after a rift when President Recep Tayyip Erdogan, on a trip to the UAE, touted Turkey’s investment advantages to business representatives there. “Turkey provides very important advantages for investors looking for alternatives to Asia-centered production areas,” he said. Erdogan and the UAE crown prince oversaw the signing of 13 agreements, including on trade, industry, defense, health and medical sciences, land and sea transportation and climate action. Erdogan called on business leaders in the UAE to invest in Turkey. Both the countries signed a joint statement on starting negotiations for a bilateral trade and investment deal, known as a Comprehensive Economic Partnership Agreement (CEPA), according to a news agency in the Emirates. About 400 Emirati companies operate in Turkey, the UAE’s 11th largest trading partner, WAM said. Their bilateral trade volume had reached nearly $15 billion in 2017, the highest level ever, before declining as relations strained. The turnover dropped to as much as $6.9 billion a year later, before rebounding to nearly $7.9 billion in 2019, according to the Turkish Statistical Institute (TurkStat). The volume rose further to $8.3 billion in 2020 despite the coronavirus pandemic, before dropping slightly to $7.6 billion last year. Turkey’s exports to the country had hit an all-time high of nearly $9.2 billion in 2017, compared to imports worth $5.5 billion. However, Turkey registered a trade deficit in the following years, before it reversed the trend again last year.
Source: Fibre 2 Fashion
In 2021, exports of goods by the European Union (EU) member states rose to €2180.5 billion—a rise of 12.8 per cent compared with the 2020 figure—and imports to those states rose to €2111.5 billion—an increase of 23 per cent compared with the previous year’s figure. As a result, the EU recorded a trade surplus of €68.9 billion last year compared with €215.8 billion in 2020. Intra-EU trade rose to €3424.7 billion in 2021—a 19.9 per cent rise compared with the 2020 figure, the EU said in a press release. In 2021, euro area exports of goods to the rest of the world rose to €2434.3 billion—an increase of 14.1 per cent over the 2020 figure, and imports rose to €2305.9 billion—a rise of 21.4 per cent compared with the 2020 figure. As a result the euro area recorded a surplus of €128.4 billion compared with €233.9 billion in 2020. Intra-euro area trade rose to €2 180.1 billion in 2021—up by 20.7 per cent over the 2020 figure. The first estimate for euro area exports of goods to the rest of the world in December 2021 was €218.7 billion, an increase of 14.1 per cent compared with December 2020’s €191.7 billion. Imports from the rest of the world stood at €223.3 billion, a rise of 36.7 per cent compared with the December 2020 figure of €163.4 billion, mainly driven by an increase in energy imports. As a result, the euro area recorded a €4.6 billion deficit in trade in goods with the rest of the world in December 2021, compared with a surplus of €28.3 billion in December 2020. Intra-euro area trade rose to €191.9 billion in December 2021, up by 27.8 per cent compared with December 2020.
Source: Fibre 2 Fashion
The commerce ministry has recommended that the National Board of Revenue (NBR) fix Tk3 as VAT on sales of 1 kg of yarn made from artificial and man-made fibres – a similar rate that now applies to cotton yarn sales in local markets. Currently, the revenue board collects Tk3 in VAT on sales of 1kg cotton yarns and Tk6 for non-cotton yarns. Entrepreneurs in the textile industry have long been demanding the uniform VAT rate for all kinds of yarn sales. Taking it into consideration, Bangladesh Trade and Tariff Commission recently sent a proposal to the commerce ministry. To meet growing local demand for non-cotton yarns, the ministry has finally sent a recommendation to NBR Chairman Abu Hena Md Rahmatul Muneem for lowering VAT on non-cotton yarn sales to Tk3 per kg. Local textile millers say an equal VAT rate on all types of yarns will reduce discrimination and encourage local millers to produce non-cotton yarns, which will give a boost to investment and employment. Sources at the NBR said they will review the matter in the next budget. The local apparel market is also quite large and stands at around $8 billion. At present, all kinds of yarns, fabrics and other accessories imported for making export goods are duty free. But VAT is applicable on domestic sales of yarns produced by textiles mills. Earlier, VAT on both cotton and manmade yarns was the same. In FY21, the rate on noncotton ones increased to Tk6 per kg. Md Khorshed Alam, chairman of Little Star Spinning Mills, a yarn manufacturer for the local market, told The Business Standard that the reduction in VAT on synthetic fibremade yarns will help reduce prices of such fabrics in the local market. According to Bangladesh Textile Mills Association (BTMA), synthetic yarn is commonly used in burqas, hijabs, salwars, some shirts and pants. Monsoor Ahmed, chief executive officer at BTMA, told TBS that limited-income people are the main buyers of garments made using these yarns. The demand for such clothing is increasing day by day. Local entrepreneurs will be encouraged to set up factories for manufacturing non-cotton apparel items, allowing the people to buy clothes at relatively low prices. According to a report by the Bangladesh Trade and Tariff Commission, fabrics made from artificial fibre-made yarns are cheaper, more fashionable, more varied and more durable than fabrics produced from any other yarns. Bangladesh is not a cotton producing country, so it should reduce dependence on cotton, the report said. If the VAT on sales of yarns made from artificial and manmade fibres are lowered to Tk3 per kg, the use of such yarns will increase, reducing dependence on costly cotton yarns, the commission pointed out. However, a senior official at the NBR's VAT department told TBS on condition of anonymity that cotton-made garments are generally used by the poorer sections of the population, while artificial yarns are more expensive than cotton yarns in the market. They would consider the commerce ministry's recommendation in the upcoming budget, he said. According to the BTMA, the demand for man-made yarns in the country's market is increasing every year, which was around 5 lakh tonnes in 2020. Local production was one-third of it that year. Almost all yarns produced cater for the local market.
Source: TBS News
France and China recently signed a document on the list of the fourth-round demonstration projects of developing third-party market cooperation. The list has seven projects worth over $1.7 billion, covering infrastructure, environmental protection, new energy and other sectors. In the next step, the National Development and Reform Commission (NDRC) will work closely with the Treasury of France to actively build platforms and create favorable conditions for third-party market cooperation between enterprises from both sides. Many Chinese and French enterprises and financial institutions will participate in the projects in zones including Africa, Central and Eastern Europe, NDRC said in a statement. The country's top economic regulator said the forms of cooperation will include joint investment, as well as Chinese engineering procurement and general construction contracting and French investment and development, which will have a positive effect on economic and social development in third-party markets. "French enterprises have unique advantages in fields including advanced manufacturing, environmental protection and engineering construction while Chinese companies have rich experience in fields such as infrastructure construction, energy, equipment manufacturing and the internet," the NDRC statement said. France is the first country to establish a third-party market cooperation mechanism with China. As of January, China had signed more than 200 cooperation documents with 147 countries and 32 international organisations to jointly enhance Belt and Road cooperation, and it has been actively promoting the third-party cooperation model, NDRC said. So far, China has signed documents on third-party market cooperation with several countries, including France, Italy, Japan and the United Kingdom. Under the innovative third-party market cooperation model, Chinese enterprises and their peers in related countries could jointly develop projects in a third country involved in the BRI, said Liu Huaqin, a researcher at the Chinese Academy of International Trade and Economic Cooperation. Liu said in an article published in China Forex that the model can connect China's advantage in manufacturing and developed countries' technological and financial advantages with the third-party's vast development demand. To better promote the third-party market cooperation model, Liu said more efforts are needed to promote both project cooperation and investment mechanisms, which will help offer a favorable institutional environment for enterprises participating in the cooperation arrangement. Liu suggests while Chinese enterprises should have a better understanding of local rules, the government should establish an effective investment dispute-resolution mechanism and build a multilevel outbound investment information service platform.
Source: Fibre 2 Fashion
Today, the European Commissioner for Environment, Oceans and Fisheries Virginius Sinkevičius took part in a High Level event on Circular Economy together with High Level African representatives of the African Union and of the African Circular Economy Alliance. This event highlighted the opportunities offered by the Circular Economy transition in the EU and in Africa and the willingness of EU and African green companies and entrepreneurs to increase cooperation. This High Level event was organised jointly by the European Commission and the African Circular Economy Alliance in the context of the Europe Africa Business Forum taking place in the margin of the European Union – African Union Summit of 17-18 February. This virtual event gathered representatives of businesses from EU and Africa applying Circular Economy business models related notably to e-waste management and recycling industries. It allowed a frank discussion on the opportunities as well as the challenges in turning EU and African economies more circular. Commissioner Sinkevičius said: There is a growing recognition both in the EU and in Africa of the need to increase the circularity of our economies in order to decouple growth and resource use. For this to happen, we need our respective businesses in EU and Africa to close this loop and join forces. Events like these contribute to this, increasing EU cooperation with the African Union and the African Circular Economy Alliance on circular economy. We need to work jointly to turn today’s challenges into opportunities and deliver on the Sustainable Development Goals. The participants in the Europe Africa Business Forum, titled “Building Stronger Value Chains for Sustainable Growth and Decent Jobs” also had opportunities during the week to participate in other events related to the Circular Economy transition in the textile and agri-food value chains notably. They also could take part in matchmaking events to discuss between European and African counterparts how to turn circular principles into green business opportunities in Europe and Africa. During this event, the Environment Minister of Rwanda and co-chair of the African Circular Economy Alliance Jeanne d’Arc Mujawamariya welcomed the European Commission as a new Strategic Partner of the African Circular Economy Alliance and announcedSearch for available translations of the preceding link••• Rwanda’s intention to host the 2022 edition of the World Circular Economy Forum, for the first time in Africa. The EU and the African Union, represented in this event by African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment Josefa Sacko share an interest in strengthening their cooperation on environmental matters. Both the European Commission and African partners will consider ways to follow up on the results of this event through further exchanges of experiences and good practices at a technical level on policies related to the circular economy, the efficient use of resources, and the conservation and sustainable use of natural resources, notably through the work of the African Circular Economy Alliance. Background The contribution of emerging economies to key environmental challenges and their potential for economic growth make them key partners in promoting the transition to a circular economy. The European Circular Economy Action Plan is a comprehensive action plan to transform the European economy and ensure that the resources used are kept in the EU economy for as long as possible. It notably focuses on making sustainable products the norm on the EU market, on empowering citizens, and on reducing waste production by focusing on key sectors that use the most resources and where the potential for circularity is high (electronics/ICT, batteries and vehicles, packaging/plastics, textiles, construction/buildings and food, water and nutrients): The African Circular Economy Alliance (ACEA) is a government-led coalition of African nations and global partners committed to advancing the circular economy transition at the national, regional and continental levels. It was conceived in 2016 during the World Economic Forum on Africa in Kigali and formally launched at COP 23 in Bonn in 2017. Since 2019, the ACEA secretariat has been hosted at the African Development Bank. It has notably identified five promising sectors for scaling up circular value chains in Africa. These include food systems, packaging, the built environment, fashion & textiles, and electronics. Recent studies have shown that the circular economy transition can have net positive benefits in terms of GDP growth and jobs’ creation, both in the EU and in Africa, while reducing the environmental impact of this growth.
Source: European Commission
The East African Community countries on Friday, February 18, made a huge step forward by adopting the bloc’s tariff offer for Category A products amounting to 90.2 per cent to be liberalised in 10 years after the start of trading under the African Continental Free Trade Area (AfCFTA). Category A products are those from sectors including agro processing, agriculture, transport or the automotive industry, pharmaceuticals, and textiles. The new development was announced during an extraordinary meeting of regional Ministers of Trade, Industry, Finance and Investment at the EAC Headquarters in Arusha, Tanzania. According to officials, this means that the EAC is now among the State Parties that have met the minimum requirements for Category A to start trading on a provisional basis. The EAC is negotiating AfCFTA as a bloc. Kenya’s Permanent Secretary EAC, Kevit Desai who chaired the meeting told The New Times that “this is a very exciting and profound new development with respect to EAC’s development agenda.” He explained that the AfCFTA has so far verified 29 tariff offers to ensure that they meet the modalities and this will increase to 34 once the EAC Partner States offers are verified. “This also means that together, as EAC, we have the potential to raise our standards collectively by investing in technology transfer and industrial capacity now we have the market which spurs investment and this has a huge bearing in terms of employment creation,” he added. Growth in the region, he said, will be spurred by the value addition in sectors including agro processing, agriculture, transport or the automotive industry, pharmaceuticals, and textiles. The EAC Partner States tariff offers will now be subjected to verification by the AfCFTA Secretariat, which is based in Accra, Ghana. Verification of the tariff offers will ensure that AfCFTA member states that meet the minimum requirements start trading under the Continental Free Trade Area Agreement. Friday’s meeting also directed the EAC Secretariat to submit the EAC tariff offer for Category A to the AfCFTA “as soon as possible.” Desai said: “Industrialisation is the resolve of all six partner states. We are encouraging are our commerce to engage in solidarity immediately within this opportunity.” Good precedent Andrew Mold, Chief of the regional integration and AfCFTA cluster at the United Nations Economic Commission for Africa Office in Kigali, referred to the Arusha meeting’s outcome as an important development for the region and implementation of the AfCFTA. Mold said: “This is a very important development because it means that, once this joint offer has been accepted by the AfCFTA Secretariat, the EAC will be able to start trading properly under AfCFTA rules.” “And it is a good precedent that the EAC has negotiated this as a bloc. Of course, as a Customs Union, to do otherwise would have been problematic. So, it is great news, in the sense that it means that EAC countries will enjoy market access to the other 29 member states under AfCFTA terms, with 90 percent of tariffs removed over the next five to 10 years, depending on whether the countries involved are LDCs or not.” Mold explained that that five to 10 years might seem slow, but in actual fact "both the EAC and the AfCFTA Secretariat should be congratulated on the speed of getting to this stage.” Implementation has been delayed a little by the Covid-19 crisis, he noted, but in actual fact, “the rate of progress is impressive by the standards of other international trade agreements." The meeting on Friday also directed the EAC Secretariat to convene an experts meeting by April 15 to consider categories B and C of the EAC tariff offer. The AfCFTA will give the bloc access to an extended market of more than 900 million people. Desai said that the Community would also benefit from increased opportunities for trade, employment creation, industrialisation and economic prosperity. “The expanded opportunities include manufactured products, value addition, regional value chains, agro-processing, motor vehicle assembly, pharmaceuticals, auto spares industries and mineral processing among other areas,” said Dr. Desai. On the determination of the maximum rate for the Common External Tariff (CET), the meeting directed Partner States to consult on the analysis undertaken by the Secretariat on the proposed maximum CET rates and submit comments on the analysis and the proposed maximum CET rates of 30%, 33% and 35% to the Secretariat by March 15. The Ministers directed the Secretariat to convene another extra-ordinary meeting on March 18 to deliberate on the maximum CET rate. Desai said that it had been agreed that Partner States consult key stakeholders on the proposed maximum CET rates and submit comments to the Secretariat by March 15. “I am confident as the chair of the coordination committee that at our next meeting we will as partner states have consensus on the CET there by nurturing value addition through industrialization in EAC,” he told The New Times. The EAC Secretariat made a presentation to the Ministers on the analysis it had undertaken on the proposed rates of 30%, 33% and 35% for products classified under the fourth band. The Secretariat noted that indicators of measure of benefit for products identified to be covered in the maximum tariff band are positive except for welfare loss, which is transitory.
Source: New Times
The president of Colombia, Ivan Duqueannounced this Sunday the approval of one new legislation which will regulate medical cannabis use on food, beverages and textiles and will authorize export of the dried cannabis flower. The government issued the resolution 227 of 2022 with which regulates the decree approved last year in connection with the licenses, quotas and authorizations for safe and informed access to the cannabis use and of the cannabis Plant, their derivatives and products. “This resolution allows, defines and establishes all the mechanisms and procedures for the industrial use of cannabis in sectors such as food, beverages and also textile uses, defining, of course, that these uses have to do with the non-psychoactive component”, explained the president in a statement at the Casa de Nariño. Duque celebrated that with this new regulation Colombia “is at the forefront of the regulation of the use of medical cannabis in Latin America and the Caribbean and, of course, its derivations from industrial uses.”
Source: The N24
