The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 2 MAY, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-04-28

Item

Price

Unit

Fluctuation

Date

PSF

1073.38

USD/Ton

1.16%

4/28/2016

VSF

2055.90

USD/Ton

-0.37%

4/28/2016

ASF

1940.40

USD/Ton

0%

4/28/2016

Polyester POY

1059.52

USD/Ton

0.22%

4/28/2016

Nylon FDY

2340.80

USD/Ton

0%

4/28/2016

40D Spandex

4466.00

USD/Ton

0%

4/28/2016

Nylon DTY

5742.66

USD/Ton

0%

4/28/2016

Viscose Long Filament

1293.60

USD/Ton

0.60%

4/28/2016

Polyester DTY

2163.70

USD/Ton

0%

4/28/2016

Nylon POY

2117.50

USD/Ton

0%

4/28/2016

Acrylic Top 3D

1170.40

USD/Ton

0.33%

4/28/2016

Polyester FDY

2541.00

USD/Ton

0%

4/28/2016

30S Spun Rayon Yarn

2833.60

USD/Ton

-0.54%

4/28/2016

32S Polyester Yarn

1724.80

USD/Ton

0.27%

4/28/2016

45S T/C Yarn

2464.00

USD/Ton

0%

4/28/2016

45S Polyester Yarn

2987.60

USD/Ton

0%

4/28/2016

T/C Yarn 65/35 32S

2263.80

USD/Ton

0%

4/28/2016

40S Rayon Yarn

1863.40

USD/Ton

0.83%

4/28/2016

T/R Yarn 65/35 32S

2125.20

USD/Ton

0%

4/28/2016

10S Denim Fabric

1.37

USD/Meter

-0.11%

4/28/2016

32S Twill Fabric

0.82

USD/Meter

0%

4/28/2016

40S Combed Poplin

1.17

USD/Meter

0%

4/28/2016

30S Rayon Fabric

0.69

USD/Meter

0%

4/28/2016

45S T/C Fabric

0.69

USD/Meter

0%

4/28/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15400 USD dtd. 28/04/2016)

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

 

Maharashtra govt plans textile hub in Vidarbha to benefit cotton farmers

Maharashtra government to open up new market opportunities with higher remuneration for cotton farmers has worked out an integrated model of textile and agro industries in Vidarbha and Marathwada, said Chief Minister Devendra Fadnavis on Saturday performing the bhoomipujan for the units of J K Investors Ltd and Raymond Group of Companies at Nandgaon Peth in Amravati. The state government’s policy to promote the textile sector has started yielding results, it has also tapped Rs 4,000 crore investments with employment generation of 12,500 in the cotton distressed districts of Vidarbha, carried out major amendments in the textile policy for increasing ease of doing business. The textile sector is the second largest when it comes to employment. Cotton cultivation stretches to 42 percent of the agro-land. Tax concession on yarns, cotton processing units, interest subsidy upto ten percent are part of the national “Farm to Fashion” policy to promote the textile sector.

Major policy decisions to promote the sector includes 30 percent subsidy for self financing. The government has stressed single-window clearance to provide land along with basic infrastructure. Concessions in power tariff are an added attraction for investors. The state government had signed an MoU with Raymond Group of Companies for a textile park and manufacturing hub worth Rs 1,400 crore, during the Make In India Week in February in presence of Prime Minister Narendra Modi. Amravati as the leading textile destination of the country will become a reality in the next four years. As, in less than two months, all formalities have been completed paving the way for the mega-textile hub to start work.

Overwhelming response have been received from investors seeking land for setting up textile units in Vidarbha. Now, this is a major change from the past when developed land along with infrastructure at MIDC had no takers. Today, there is no space available at MIDC in this region. The 14 textile parks, complete with manufacturing and apparel units in Vidarbha and Marathwada, have been taken up to provide a robust market for cotton cultivators. The chief minister recalled, the white gold tag associated with cotton cash crop has lost its shine because of the agro-distress in the last two decades. The textile policies linked to agro-industries will help take cotton crop to its old glory. Cotton cultivators, often with small land holdings can thrive only if they have an assured market. The government wants to adopt the western Maharashtra model where sugar mills and sugar cane cultivators are inter-linked and inter-dependent. The state government has allocated 102 hectares to Messrs Shyam Indofab Ltd, MVHM Industries, Suryalaxmi Mills, Siyaram Silk for textile and processing units at Nandgaon. The government to ensure better production of cotton to help farmers and efficient operations for the manufacturing sector has also decided to promote textile technology in the sector. The chief minister, while inaugurating the Siyaram Silk Mills Golden Fibres Plant, marking commencement of operational activities, hoped it would work to the advantage of youths. The new textile hubs sanctioned in MIDC includes Nandgaon (Amravati), Yavatmal, Chikali (Buldhana), Jamner (Jalgaon), Kannad (Aurangabad), Selu (Parbhani), Bhaler (Nandurbar), Malegaon (Nashik), Kunnor (Nanded), Mazalgaon (Beed), Maharashtra Industrial Development Corporation new textile park.

SOURCE: Yarns&Fibers

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May Day: garment workers’ issues dominate programmes

Chief Minister Siddaramaiah has assured garment workers that he will consult the police and initiate measures to withdraw cases booked against them during the recent agitation against the now-withdrawn amendments to the Employee Provident Fund (EPF) Scheme by the Union government. He was speaking at a May Day programme in the city. Over 200 garment workers, booked on the charge of attempt to murder, among others, are now in jail. Mr. Siddaramaiah also congratulated garment workers on what he called “a historic successful workers’ movement” that forced the Union government to roll back the “ill-conceived amendments to the EPF Scheme”, thereby benefiting workers across the country. Earlier in the day, demonstrations and May Day celebrations organised by various trade unions were focussed on the garment workers’ protest and the plight of the arrested workers. A large number of workers from Garments and Textile Workers Union and Garment Labour Union took out protest marches at Freedom Park and Laggere respectively and demanded that all the cases against workers be immediately withdrawn and they be freed from prison. While, the All India Trade Union Congress observed the day as a “solidarity day with garment workers”, the programmes of other unions also resonated on the same theme. Aam Aadmi Party demanded that the government initiate action against police personnel who assaulted women garment workers during the protests. K.R. Jayaram of GATWU said their other demands were that the minimum wage of garment workers and other segments be raised to Rs. 18,000, as per the seventh pay commission recommendation.

SOURCE: The Hindu Business Line

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India not aimless on trade agenda: Nirmala Sitharaman

Commerce minister Nirmala Sitharaman has said India has a clear picture of how to move on the trade front, and is certainly not aimless when it comes to trade negotiations. "We do have a picture on how to move ahead," she said at a consultation meeting organised by the MEA think tank, Research and Information System for Developing Countries (RIS). Her statement comes days after chief economic adviser Arvind Subramanian termed India's trade policy as ambivalent. She said India is not an obstructionist in the 16-country Regional Comprehensive Economic Partnership (RCEP), but will not yield on the offers it has made for opening up goods and services in the agreement and will keep pursuing them. In fact, in RCEP, India's offer on Mode 3 services that allow foreign commercial presence, is more liberal than other nations' as it has apprehensions only on opening up financial, insurance and legal services.

Referring to the changing world order for trade in which countries are becoming defensive about their exports and imports, Sitharaman said: "Tariff is not a very powerful tool any longer. Let's understand trade from a non-tariff route...G-20 countries are getting more defensive. We also have become defensive on steel import duty." The government had in February set a minimum import price on 173 types of steel products to support its domestic steel industry and stem imports from China. When asked if there's a need to devalue the rupee to help boost exports since exports have been slipping constantly and the currency is considered overvalued by many, she said: "At today's juncture, I want the rupee to be devalued", but added that China has a certain level of flexibility of liquidity that it can flush into the system. Two days after FM Arun Jaitley showed India's interest in joining the Asia-Pacific Economic Corporation (APEC), the commerce ministry said it is desirable to look at APEC since it has greater promise due to its voluntary nature.

SOURCE: The Economic Times

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Exports likely to get clearance in a day under Make in India green channel

Cars, smartphones, machines, medicines, garments — anything made in India will be allowed 'warehouse to wharf ' export in a single day under a new Make in India green channel that seeks to give a big boost to local manufacturing and exports. Under the facility that will begin at select ports in a month, cargo clearance will shorten from about a week to a few hours, a senior government official told ET. Among the measures aimed at helping to make the policy work, there will be no upfront payment of any duties. That will be settled later when the paperwork is done. "It would be launched after the passage of the finance bill," the official said, adding that this would allow clearance of shipments without any payment of duty as proposed in the budget. A new platform being developed will let companies know when to move goods from factories or warehouses so they don't have to wait at ports, the official added.

The SWIFT system, introduced in April by the Central Board of Excise and Customs (CBEC), allows importers and exporters to file just one form at ports for clearance from all agencies including the Food Safety and Standards Authority of India, Drug Controller General of India and Plant Quarantine and Wildlife Crime Control Bureau. SWIFT, or Single Window Interface for Facilitating Trade, also allows for risk-based assessment at customs. The programme cuts down on paperwork procedures significantly but not the waiting period of six-seven days. The new initiative seeks to address this issue. The Narendra Modi government launched the Make in India programme to push manufacturing in the country. It's also been touted as the main vehicle to draw foreign capital. Although India has managed to pip China in terms of foreign direct investment (FDI) flows, there are still significant obstacles. Cargo clearance delays at ports have been cited by many foreign investors as one of the key issues.

India is ranked 133 in the World Bank's ease of doing business ranking on the "trading across borders" parameter because of paperwork taking too much time and high costs. Border compliance takes 311 hours compared with nine in highincome OECD countries. Documentation compliance takes 67 hours versus four hours. After cutting down on paperwork, the new programme will seek to address this concern effectively, the official said. The CBEC has initiated talks with stakeholders seeking their feedback on the operational aspect of the proposed platform as well as participation. "These are the measures that will go a long way in helping trade," said Ajay Sahai, director general of the Federation of Indian Export Organisations. However, he pointed out that the customs department needs to address manpower shortage issues urgently if it wants these ambitious programmes to succeed.

SOURCE: The Economic Times

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India on 5th place in fake goods trade; China on top

India is the fifth biggest exporter of fake goods globally, while China is on the top with a huge 63 per cent share in the estimated half-a-trillion dollar worldwide imports of counterfeit and pirated goods. China is followed by Turkey, Singapore, Thailand and India among the top-five countries from where most fake goods originate, as per a new study by the OECD (Organisation Economic Cooperation and Development) and the European Union's Intellectual Property Office. China-made products accounted for 63.2 per cent of total seizures of fake imported goods globally, while the second- ranked Turkey's share was just 3.3 per cent. The same for Singapore, Thailand and India stood at 1.9 per cent, 1.6 per cent and 1.2 per cent, respectively. Among the countries hit hardest by the global trade in fake foods, the US comes on the top and is followed by Italy, France, Switzerland and Japan in the top-five. "Imports of counterfeit and pirated goods are worth nearly half a trillion dollars a year, or around 2.5 per cent of global imports, with US, Italian and French brands the hardest hit and many of the proceeds going to organised crime," OECD said about the new study that takes into account the latest available figures till the year 2013. The study puts the value of imported fake goods worldwide at USD 461 billion in 2013, compared with total imports in world trade of USD 17.9 trillion. "Up to five per cent of goods imported into the European Union are fakes. Most originate in middle income or emerging countries, with China the top producer," it added.

The report, which analysed nearly half a million customs seizures around the world over 2011-13, further said that its findings contradict the image that counterfeiters only hurt big companies and luxury goods manufacturers. Fake products crop up in everything from handbags and perfumes to machine parts and chemicals, while footwear is the most-copied item though trademarks are infringed even on strawberries and bananas. "Counterfeiting also produces knockoffs that endanger lives - auto parts that fail, pharmaceuticals that make people sick, toys that harm children, baby formula that provides no nourishment and medical instruments that deliver false readings," it added. OECD said emerging economies tend to have the infrastructure for large-scale trade but often suffer from governance gaps and may lack the institutions and enforcement capacity to effectively tackle counterfeiting. "While China is the top provenance of fake goods, its most innovative companies also fall victim to counterfeiters," it said. Postal parcels are the top method of shipping bogus goods, accounting for 62 per cent of seizures, reflecting the growing importance of online commerce in international trade. "The traffic goes through complex routes via major trade hubs like Hong Kong and Singapore and free trade zones such as those in the United Arab Emirates. Other transit points include countries with weak governance and widespread organised crime such as Afghanistan and Syria," it said.

SOURCE: The Economic Times

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Exports for 17 out of 30 sectors in negative zone in March

Exports of over half of the 30 sectors closely monitored by the Commerce Ministry were in the negative zone in March due to a fall in global commodity prices amid tepid demand. Outbound shipments of as many as 17 key sectors, including petroleum products, textiles, man-made yarn and fabrics, engineering and leather dipped during the month under review, according to the ministry data. Exporters' body Federation of Indian Export Organisations (FIEO) expressed serious concerns over the trade data and asked the government to take immediate steps to contain this persistent dip. "Almost all the major sectors have either shown a negative growth or a declining trend during the last three months. These sectors together accounts for well over two third of exports," FIEO President S C Ralhan said.

Falling for a 16th straight month in a row, exports dipped 5.47 per cent to $22.71 billion in March. The continuous decline in exports is expected to impact jobs and put pressure on the current account deficit. "Order book position of exporters are not good. Going by this trend, job losses may start," Ralhan said. During the month, top two sectors -- engineering and petroleum products -- contracted 11.29 per cent and 21.43 per cent, respectively. Gems and Jewellery exports grew by a mere 4.61 per cent. As the labour-intensive jewellery sector has huge potential, the Commerce Ministry is planning to extend some incentives for them. These three sectors make up about 55 per cent of the country's total exports. Agri-products, which constitute over 10 per cent of the country's total shipments, too recorded a negative growth during the month under review. Overall, nine out of 13 main agriculture products slipped into negative territory. Exports of rice, cashew and oil meals fell 27.67 per cent, 17 per cent and 72.3 per cent, respectively. Other products that have reported a negative growth include cereals, oil seeds and marine products.

Decline in these exports has been instrumental in dragging down India's overall merchandise exports. Due to continuous dip, the total merchandise shipments in 2015-16 declined to by 15.85 per cent to USD 261.13 billion, a five year low figure. India has aimed at taking exports of goods and services to USD 900 billion by 2020 and raising the country's share in world exports to 3.5 per cent from 2 per cent. On the other hand, exports of pharmaceuticals, plastic, carpet, chemicals, tea have recorded positive growth in March.

SOURCE: The Economic Times

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Falling Indian exports – The import factor

The despondency over the consistent decline in India’s merchandise exports over the last 16 months has diverted attention from an important aspect of its trade performance during the last few years. This involves the much different trend growth pattern of merchandise exports during the first half (2010-2015) of the current decade. Analysing India’s current export stagnation in the background of this growth performance produces different insights on the stagnation. Last year was one of the worst for Indian exports. Merchandise exports showed an unprecedented year-on-year decline of 17.2% during the year. The point to be noted though is that 2015 was one of worst merchandise export years for the entire Asian region. Regional merchandise exports declined by almost 8% during the year. While volume and value competitiveness imparted by excess capacity and a declining Yuan made Chinese exports decline the least, by around 3%, Japan’s merchandise export growth declined by more than 9%. The rout was pervasive among the rest of the export-oriented economies of Asia, be it the celebrated Asian ‘tigers’ (Hong Kong, Korea, Singapore, Taiwan), or the dynamic Southeast Asian economies (ASEAN), both of whose exports collectively declined by more than 10% during the year.

Statistics can be revealing at times. It is indeed so when one looks at the merchandise export growth rates of the Indian economy during the period 2010-2015—the first 5-6 years of the current decade—which are also the years after the bloodbath witnessed by the world economy in 2008 and 2009. During these years, Indian merchandise exports registered an annual average growth of 9.3%. This was higher than the corresponding export growth recorded for the period by all other major economies and regions of the world, except of course, China, whose merchandise exports grew by 10.4%. The statistically important point to note is India achieving the impressive growth of 9.3%, in spite of the inclusion of the ‘terrible’ year, 2015, in the period! Had its exports not taken such a huge hit during 2015—which, in fact, was only less worse than the fate suffered by major oil exporters like Russia, Saudi Arabia and United Arab Emirates—India’s merchandise export growth for the first half of the decade would not have been very different from that of China’s.

If this is the story with Indian exports during the first half of 2015, then the obvious point to be noted is that Indian exports did well during this period notwithstanding their historical global comparative disadvantages arising from structural constraints at home! India was one of the worst on the ‘doing business’ list during the last five years. While some improvements would have happened in domestic trade facilitation, they were clearly not sizable and decisive in making India’s merchandise exports grow by around 10% at a time, when world exports grew by only 3.8%!

The story of India’s merchandise exports becomes a wee bit clear upon looking at India’s merchandise imports. During the period 2010-2015, India’s imports grew by an annual average of 2.3%. More importantly, import growth was (-)5.0% and (-)0.5% during the years 2013 and 2014, before dipping to a remarkable low of (-)15.3% during 2015. In contrast, Indian exports recorded positive growth of 6.1% and 2.5% during 2013 and 2014, before joining the imports in plunging, from early last year.

How could exports record positive rates of growth in the years in which imports declined? The simple answer is many imports feed into exports with a lag. Positive import growth during the first three years of the decade contributed to similar growth in exports, primarily in refined petroleum products, jewellery, apparels and machinery. Import compression from 2013 onward, necessitated by the enlarging trade and current account deficits and fears of a brewing crisis on the external sector, began cutting the flow of imports that could have fed exports. Exports could hold up for a while with the imports that were in the pipeline. This explains their growing at positive rates during 2013 and 2014 even though import growth was negative in these years. From late 2014, however, export stagnation set in. Though import compressions were steadily relaxed, global demand wasn’t good enough to revive imports for perking up exports.

The financial ability of exporters to import for export is a crucial factor in the story. Trade finance, or bank credit extended to exporters, is the key instrument in this regard. A banking system well-flushed with capital and lending and borrowing at robust pace is important for extending generous trade finance enabling exporters to settle dues over a longer period of time. Indian banks have been ridding generosities rapidly over the last couple of years given the huge non-performing loans they have become saddled with. All categories of borrowers have been affected by the troubled state of Indian banks, including exporters, who have found it increasingly difficult to access generous trade finance. This has affected their abilities to buy imports and covering delayed payments from overseas sales with foreign buyers getting affected by exchange rate fluctuations impinging their abilities to pay on time.

It is important for import financing and imports to revive before merchandise exports can stage recoveries. This is clearly one of the important lessons coming out of the performance of Indian exports during the last few years. Without access to imports, India’s main merchandise export sectors won’t revive. More than cyclical global factors, it is domestic financing that needs to be looked at closely for checking the rut in exports.

SOURCE: The Financial Express

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India writes to EU for dates to resume trade negotiations

After the latest India-EU summit, India has written to EU trade negotiators for dates to resume trade negotiations, but Nirmala Sitharaman commerce minister, says there has been no response yet. PM Narendra Modi travelled to Brussels for the summit on March 30. Responding to questions that EU officials had said they were keen on resuming FTA talks, Sitharaman pointed out, "Cecilia Malmstrom, my counterpart, was not present during the summit meeting. After returning to India, I have written to her to suggest dates when we could resume talks. But I have not yet heard from them." EU officials have unofficially told journalists they wanted India to open up the automotive sector by lowering tariffs to zero before they restart negotiations. India wants to protect the domestic auto industry which has acquired a degree of competitive advantage.

This has been interpreted by EU officials as "intransigence" by India. Indian officials however say EU is unwilling to move on services which are making things difficult. However, the Indian government has a harder job, because it is battling a global perception of being a laggard in international trade negotiations. The EU is fighting its own issues this year -- officials say all of 2015, EU trade negotiators were consumed with negotiating the TTIP with the US, which is yet to be completed. It's only now they have spared some officials to negotiate the India FTA. In addition, a potential Brexit and continuing problems with Greece and the Mediterranean economies have imposed uncertainties in the European trade horizon.

Moreover, there are wide divergences in views within the Indian government itself. Amitabh Kant, CEO Niti Aayog believes India should conclude the EU-India FTA even if it means making some compromises. "It is better to compromise on wine and cheese and on large vehicles to push for our apparel exports with Europe so that we can penetrate these global markets." "(It's) because this is one sector which will enable us to create large-scale jobs," Kant said at the launch of a World Bank report on the textile sector. He stressed gains from rising labor costs in China would flow to Vietnam and Bangladesh rather than India, if India was not more flexible in trade negotiations.

SOURCE: The Times of India

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EU may appoint negotiator for bilateral trade pact with India

The 28-member European Union (EU) could appoint a negotiator exclusively to carry forward talks on the India-EU bilateral trade and investment agreement or BTIA, said a European Member of Parliament, who is also the chair of the almost 50-member strong India caucus. Speaking to a group of Indian journalists in Brussels, the seat of the European Parliament, Geoffrey Van Orden also said that trade representatives from the two sides would be meeting on the sidelines of the G20 meeting in China in September which would, in turn, give a fresh momentum to the negotiations, which first started almost a decade ago. Given the disagreements on key issues, Asia’s third largest economy and the European bloc could look at concluding a “less ambitious” pact, said Van Orden—one of the 751 sitting Members of the European Parliament or MEPs. “I think...there is a certain validity to that,” the British MEP said when asked if there was any merit in the thinking in India that the EU pre-occupation with concluding the Transatlantic Trade and Investment Partnership (TTIP) with the US was one of the reasons for the EU-India BTIA talks slowing down. “I think because a lot of effort is going into the TTIP and for a long time you had the same negotiators responsible for all these, we called upon the European Commission (the executive arm of the EU) to appoint a separate negotiator for the BTIA,” he said, adding that a single trade negotiator’s capacity to deal with several major Free Trade Agreements may be limited. “I understand that that is the arrangement,” Van Orden said when asked if the EU would have a separate negotiator exclusively for the BTIA talks with India.

According to European analysts, the long-pending BTIA could act as an “anchor” for bilateral ties. Talks on the BTIA—the official title of the free trade pact—started in 2007 but it has been marred by flip-flops and disagreements. For instance, India cancelled a meeting with the EU chief trade negotiator in August last year in protest against an import ban on 700 of its generic drugs clinically tested by GVK Biosciences for alleged manipulation of clinical trials. The last round of talks were held in 2013 and the discussions have remained deadlocked on issues including tariffs on automobiles and wines and spirits, according to EU trade officials. In the automobile sector, the EU is unhappy given that its exporters have to face Indian import duties of as high as 100% on cars and car parts. And in the case of wines and spirits, European exporters face tariffs as high as up to 150%. According to EU officials, the grouping had put forward several proposals in 2013 to break the deadlock including “long transitional periods for their elimination or going as far as accepting asymmetric elimination of these duties in favour of India” in the case of automobiles. On India’s part, disputed issues in the trade talks include the so-called Mode 4, a provision of the 1995 General Agreement on Trade in Services that seeks to facilitate the movement of professionals from one country to another.

Several rounds of stock-taking talks, including a meeting between Indian commerce secretary Rita Teaotia and the EU Trade Commissioner Cecilia Malmström in Brussels on 22 February, did not produce any results. The impression in New Delhi seems to be that with the EU involved in talks with the US on the TTIP, the EU is not focussed on its trade talks with Asia’s third largest economy. Also occupying European mindspace is the British referendum, to be held on 23 June, on whether the country should remain in the EU. Van Orden was critical of the single paragraph reference to the India-EU trade talks in the India-EU joint statement issued after the meeting between the president of the European Council, Donald Tusk, the president of the European Commission, Jean-Claude Juncker and Prime Minister Narendra Modi in Brussels on 30 March, the first India-EU summit in four years. But he added that there were many issues referred to in the joint statement to keep ties on the move even as the BTIA was being negotiated. He said that “Brexit”—the term used for the possible exit of Britain from the EU, pending a referendum on 23 June—should not be a reason for the trade talks with India to slow down. “If we can’t come to an agreement on the FTA—may be some ideas are a bit too ambitious, is there some merit in exploring something less ambitious? I think so,” said Van Orden—in seeming response to European officials who have attributed the tortuous pace of negotiations to the “high degree of ambition” in terms of outcomes.

But Van Orden made a case for concluding the pact soon, stating that India could not economically grow “as you want to if you do not enlist the support of the wider world.” Initiatives including Make in India, Skill India and Digital India—launched by Prime Minister Narendra Modi to bolster India’s economy would all be helped if the two sides conclude the BTIA soon, he said. Total bilateral trade between India and the EU, which is India’s largest trading partner, was €78 billion in 2015, according to EU figures. The EU is one of the largest foreign direct investors in India with investments of €38.5 billion since 2000. On “Brexit” and its implications for Britain and the EU, Van Orden said “there are serious reasons why one (Britain) has to hesitate” before taking a decision to leave the EU. “If we have a seat at the table, why should we give it up?” he said.

SOURCE: The Live Mint

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India FTA a priority for New Zealand: Key

John Key says a free trade agreement with India is a priority for the Government and that he pushed "pretty hard" on the deal when meeting with President Pranab Mukherjee in Auckland. Speaking after the bi-lateral talks today, Key said the deal would take New Zealand's economic relationship with India to the "next level". Negotiations for this potentially lucrative deal kicked off in April 2010 and have gone through 10 rounds without a result. Trade officials, in their "NZ Inc India Strategy", once hoped New Zealand would ship $2 billion of goods to India by 2015. Instead, the value of goods exported to India annually has fallen since 2011, from $900 million to $637 million last year. "One of the things that's holding us back is absence of FTA so we pushed pretty hard on that," Key said. 

Key said the talks were "very productive" and that Mukherjee conceded that the absence of the FTA was holding back the relationship between the countries. "I believe an FTA would be a win-win for both countries," said Key. He said India's demographics were similar to China, New Zealand's biggest trading partner. "India has huge ambitions to improve its industry and we want to partner with them on achieving just this. In our experience, investment follows trade," he said. Key said two-way trade between the countries was worth $2.2 billion in 2015 and that India was New Zealand's 10th largest trading partner. "We see opportunities for collaboration in education and skills development, tourism, energy, clean technology, agri-tech, defence cyber security and ICT," Key said. Key is also due to meet with French Prime Minister Manuel Valls tonight and said that the European republic plays a big part in whether or not free-trade negotiations get over the line on the continent. One of the big points Key said he would try to make is that a FTA doesn't mean that New Zealand would "run over" France's agricultural sector.

SOURCE: The New Zealand Herald

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Thai seeks more investment from Indian firms

Thailand has sought more investment from Indian companies as it looks to increase the volume of bilateral trade and position itself as a regional logistics hub. “Nearly USD 200 million has been invested by Indian companies in the last two years and Thailand has positioned itself as a regional logistics hub for Indian companies to help them cater to the needs of Asean countries,” Consul of Commercial Affairs at Royal Thai Consulate-General, Mumbai, Suwimol Tilokruangchai, told reporters here

SOURCE: The Tecoya Trend

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Filament yarns export value declines to US$54.3m, down 17.1%

More than 89 per cent of filament yarns were of polyester, of which, DTYs were the largest at 70.2 per cent. Brazil and Turkey continued to be the major importers of polyester filament yarns, followed by Bangladesh. The three together accounted for 42.4 per cent of polyester filament yarn exports. Brazil was also major importer of polyester DTYs and Turkey was major importer of PFYs. Sri Lanka was the major importer of nylon filament yarn in March while USA and Italy were the other largest markets for nylon filament. Polypropylene filament yarns were exported to 15 countries in March and Kenya was the major importer of PP yarns. Malaysia and Hungary were the other major importers of PP filament yarns in March. Viscose filament yarns were exported to 23 countries from India in March valued at US$3.85 million. During the month, 183,000 kg of VFYs were exported to Germany. It was followed by Japan and Turkey.

SOURCE: Yarns&Fibers

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US cotton bonded warehouse to benefit Vietnamese textile industry

The Vietnam Textile and Apparel Association (Vinatas) at the working session with the US Cotton Association urged the US cotton manufacturers to think about a plan to set up a cotton bonded warehouse in Vietnam, as it would benefit the Vietnamese textile industry by way of cut transport and protection costs. US cotton has been favored by Vietnamese textile enterprises and used in a large scale. Truong Van Cam, deputy chair and secretary general of Vinatas explaining the proposal said that the cotton price always fluctuates, while Vietnamese spinning enterprises have to import cotton from many different sources, including those that cannot provide high-quality products. Therefore, if the US partners agree to set up a bonded warehouse in Vietnam, Vietnamese enterprises would take initiative in arranging materials for their production, while cotton prices would be stable, which helps textile manufacturers control production costs.

Also according to Cam, Vietnamese enterprises prefer using US cotton not only because the cotton has high quality, but also because US is a member of TPP. If Vietnam uses cotton from the US, it will be able to satisfy the requirements to enjoy preferential tariffs offered to TPP members. The bonded warehouse is also believed to bring benefits to the US. If the US can ensure the stable supply of cotton, it will be able to sell more products to Vietnamese businesses thanks to the warehouse. In fact, not only cotton traders, but US cotton growers will also benefit. Pham Xuan Hong, deputy chair of Vinatas, said that US cotton products were more expensive than products from other sources, which was confirmed by the US manufacturers. However, the products would have reasonable prices when they are sold to TPP member countries thanks to the preferential tariff.

Vietnamese enterprises have been importing materials for domestic textile and garment production from China because of geographical proximity and cheap prices. Meanwhile, other TPP countries can only provide cotton in limited quantity. According to Vu Duc Giang, chair of Vinatas, if bonded warehouses were set up, the major problems of the Vietnamese textile and garment industry would be settled. The bonded warehouses would be built in two large areas in Vietnam, including one in the north, maybe at the Hai Phong Port or Hanoi, and the other at Cat Lai Port in HCMC or in Ba Ria- Vung Tau City. A bonded warehouse in Vietnam would be highly significant, especially when Vietnam tries to escape reliance on Chinese imports.

SOURCE: Yarns&Fibers

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Pak among top apparel producers with huge job potential: WB

A World Bank report has said that top four apparel producers in South Asia - Bangladesh, India, Pakistan, and Sri Lanka - have made big investments in world apparel trade and account for 12 percent of global apparel exports. According to the report issued from World Bank, at a time when nearly one million people are expected to enter the workforce every month for the next three decades, export-oriented apparel production in India and other South Asian countries has the potential to create more and better jobs. The report on 'Stitches to Riches? Apparel Employment, Trade and Economic Development', launched in New Delhi is aimed at demystifying the global and South Asian apparel markets, estimating the potential gains in exports and jobs, and identifying policies that can unleash South Asia's export and job potential compared with those of their closest competitors in the Southeast Asia region including Vietnam, Cambodia, and Indonesia. As wages increase, China, the largest apparel manufacturer for the last 10 years, is expected to slowly relinquish its lead position in the global apparel market, opening the door to other competitors. This could be a huge opportunity for India and other South Asian countries. Even a 10 percent increase in Chinese apparel prices could create at least 1.2 million new jobs in the Indian apparel industry, the report stated. Women are expected to benefit the most as their share in the total apparel employment is much higher than their share in other industries. A one percent increase in expected wages in the textiles and apparel industry could raise the probability of women entering the labour force by 18.9 percent, said the report. "Apparel manufacturing not only has a huge potential for creating jobs, particularly for the poor but also has a unique ability to attract female workers. Employed women are more likely to create positive social impacts as they tend to spend their income on the health and education of children," said Onno Ruhl, World Bank Country Director, India. "Rising costs of apparel manufacturing in China provides a window of opportunity for India to focus on apparel in productively employing its huge working-age population." "South Asia has taken many steps in recent years to support the textile and apparel sector, but it now needs to step up its game by tackling inefficiencies that are undercutting its competitiveness. Greater access to manmade fibre and integration between textile and apparel among other measures can help companies take advantage of the emerging global opportunities and encourage good jobs for development," said Gladys C Lopez-Acevedo, one of the authors of the report and a lead economist for the World Bank.

 

The report recommended removing trade restrictions to allow easy access to manmade fibres as inputs; increasing efficiency along the value chain such as integration between textile and apparel; and improving social and environmental compliance by introducing better human resource practices. It suggested the following policy measures to help increase apparel exports: Increase product diversity by reducing tariffs and import barriers to ease access to manmade fibres (such as more transparency for duty drawback schemes and bonded warehouses, and removing anti-dumping duties on manmade fibers). Also lower excise taxes or provide other incentives to develop a domestic manmade fibre industry. Improve productivity by helping firms enter the formal sector and take advantage of economies of scale with less complex labor policies. Also promote FDI for apparel by adopting clear and transparent policies on foreign ownership, and within export processing zones. Improve market diversity by taking advantage of access to emerging markets. Shorten lead times by using industrial parks to provide better infrastructure in a concentrated way.

SOURCE: The Daily Times

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Sri Lanka’s apparel export sector likely to face challenge of TPP

Sri Lankan textile exports are expected to experience a downfall because of the U.S. led Trans Pacific Partnership (TPP) trade pact. Competition from TPP signatories such as Vietnam could deal a blow to the South Asian nation’s apparel export industry, which currently employs half a million Sri Lankans and provides 44 percent of all manufactured goods exported by the country. Sri Lanka’s garment exporters have found a design-to-deliver supply chain which means that the design, manufacture and logistics such as delivery are all carried out in Sri Lanka. But the industry could get caught out by challenges from a fast-changing global trade environment. According to Sharad Amalean, deputy chairman of the country’s Joint Apparel Association Forum,it used to take months to design and deliver. But the new solution can help to complete a chase order for something selling in the U.S.,from production to shipping it across the stores, within 14 days.

Despite this innovation, growth in exports to the European Union — Sri Lanka’s biggest garment export market — fell from 13-14 percent from 2005-2010 to about 7 percent a year after the GSP+ status was revoked, according to a report by consultancy Oxford Business Group, citing numbers from a Joint Apparel Association Forum official. The country exports about $5 billion worth of apparel a year. Still, heavy investment in a value-added supply chain that enables prompt turnaround has kept the industry going in the face of unfriendly trade treatment. But Ashroff Omar, group chief executive of Brandix, Sri Lanka’s largest apparel exporter said that he was hopeful of another about-turn. The exporter shipped $750 million worth of goods to its clients last year. He added that Sri Lanka was duty-free to the E.U., and due to various reasons, the status was lost. He believes that the status will be regained it by the end of this year, so they become very bullish on the European market. Already, they see buyers coming in anticipation of the GSP+ coming in by early next year.

Even so, the TPP will deal a blow. Competition with Vietnam, Sri Lanka’s closest garment-making competition, will be particularly stiff, but Sri Lanka may be able to buy some time while hiccups in the TPP’s implementation are ironed out. Omar believes that the TPP will come only in 2018. And there’s a 10-year phase-out period to remove duties on most apparel products. During this decade-long run-up, costs in Vietnam will likely go up and suck up the available labour. Thus, the country would be able to compete with Vietnam. He is aware that the trade deal may still impact Sri Lanka’s share of the apparel export pie since China grabbed most of Mexico’s share of the global trade when the Multi-Fiber Arrangement – a deal that set quotas on the amount of textiles and clothing developing countries could export to developed countries – expired in 2004. So, along with expectations Vietnam’s cost base will rise while the TPP is phased in, Sri Lanka’s strategy is to specialize, by focusing on providing vertically-integrated design-to-delivery solutions, not just in the country, but also with partners in places as farflung as China and Hong Kong. Exporters like Brandix are also teaming up with industry players in China and Hong Kong to improve overall supply chain management.

Omar suggested that they are our joint venture partners, who run the show, but they can be influenced by having an equity proposition and are heavily involved with them in management. So on one side raw material or fabric supplies are secured and investment in printing, in laundry, in processing is done-everything the customer needs. Sri Lanka could also reposition itself as a hub for supplier countries in the region noting that neighbors India, Bangladesh and Pakistan were large producers of cotton, yarns and textiles. Sri Lanka’s reputation as a no-sweatshop, ethical garment center was another advantage, said Amalean, who is also CEO of MAS Holdings, a garment maker. Higher-end brands including Victoria Secrets, Nike, Gap, Marks & Spencer and Ralph Lauren are among the names manufactured in Sri Lanka in part due to this reason. Omar said that while productivity and speed are Sri Lanka’s hallmarks in the current fast fashion landscape, its garment makers are acutely aware that changes are afoot. But just what will prove to be the “iTunes of apparel” is not yet clear.

SOURCE: Yarns&Fibers

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Higher productivity key to Asia-Pacific economic growth

As nations begin implementing the 2030 Agenda for Sustainable Development, the next phase of Asia-Pacific economic growth should be driven by broad-based productivity gains, the UN Economic and Social Commission for Asia and the Pacific (ESCAP) said in its flagship publication Economic and Social Survey for Asia and the Pacific 2016. Launched in Bangkok on Thursday, the survey emphasizes that this will require higher, targeted fiscal spending, enhanced skills, better infrastructure, and improved agricultural productivity. In the developing countries of Asia and the Pacific, annual average growth of total factor productivity declined from 2.8 per cent in 2000-2007 to just below 1 per cent in 2008-2014, the survey found. The productivity slowdown accounts for almost a fifth of the recent economic slowdown, from an average of 9.4 per cent during 2005-2007 to an estimated 4.6 per cent growth in 2015. ESCAP underscores that this is a concern because sustained and resilient economic and productivity growth, backed by balanced economic, social and environmental development, is a prerequisite for successful implementation of the 2030 Agenda.

Launching the survey in Bangkok, Dr. Shamshad Akhtar, UN Under-Secretary-General and ESCAP Executive Secretary emphasized that steady growth in real wages, which is critical for tackling poverty and inequality, as well as supporting domestic demand, also ultimately depends on productivity growth. “Concerted efforts are needed to revive the region's economic dynamism and more effectively pursue the 2030 Agenda,” said Dr. Akhtar. “Such interventions, particularly through fiscal measures, could support not only domestic demand but also strengthen the foundations for productivity-led growth, while fostering real demand through social safety nets and wage increases.”

Noting that the Asia-Pacific region has the means and dynamism to revive economic growth, Dr. Akhtar acknowledged that improving the quality of this growth by making it more inclusive and sustainable, will be especially demanding. The survey calls for continued rebalancing towards domestic and regional demand, as prospects for export-led growth remain subdued. A confluence of macroeconomic risks including shifts in global financial and commodities cycles has also increased uncertainty. The survey highlights that despite emerging challenges the region's economic outlook is broadly stable and forecasts a moderate pickup in economic growth in developing Asia and the Pacific to 4.8 per cent in 2016 and 5 per cent in 2017. The survey notes that progress in reducing poverty is slowing and inequalities are rising in much of the region. The region also faces increased financial volatility and capital outflows, which have limited the space for monetary policy manoeuvring, despite low overall inflation. Several countries are also experiencing a private debt overhang after rapid increases in household and corporate leverage in recent years.

ESCAP recommends that if the region is to shift to a more sustainable development strategy driven by domestic demand, greater focus must be placed on productivity along with commensurate increases in real wages. According to ESCAP, a productivity-driven, wage-led approach would enable countries to increase their aggregate supply and demand, thereby enhancing well-being. To boost productivity, the survey recommends a cross-sectoral and integrated approach. It notes that several countries in the region are deindustrializing too early in their development, by shifting from agriculture-based economies to ones in which services play a dominant role. The survey estimates that a modest increase in agricultural productivity could lift an additional 110 million people out of poverty by 2030, but that improvements in knowledge and skills will be critical, to enable absorption of the large pools of surplus labour that are being released in the rural sector. Identifying the important role of fiscal policy in reviving economic growth and supporting the 2030 Agenda, Dr. Akhtar emphasized that: “Fiscal initiatives should be underpinned by sustained reforms towards an efficient and fair tax system that delivers the necessary revenues and promotes equity.” (SH)

SOURCE: Fibre2fashion

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China-Australia FTA "delivering" for Australia: Trade Minister

The free trade agreement signed by Australia and China late last year is "delivering" for Australian businesses, the nation's Minister for Trade and Investment said on Monday. Steven Ciobo said the Chinese appetite for premium Australian products such as wine, beef, seafood and vegetables had contributed to a number of impressive gains in export levels, and praised the government's decision to sign the historic China-Australia Free Trade Agreement (ChAFTA). He said the reduction and abolition of tariffs on agricultural products had led to a big increase in export requests from China; something he said was greatly benefiting Australian businesses and would continue to do so for "years to come."

Among the best performing exports were bottled wine, lobsters and fresh cherries, while products such as beef, other varieties of seafood and livestock feed all experienced significant rises in export levels. "Between January and March 2016, Chinese imports of Australian bottled wine grew more than 60 percent compared to the same period 12 months previously, to reach 160 million U.S. dollars, as tariffs were cut twice, from 14 percent to 8.4 percent," Ciobo said in a statement released on Monday. "With tariffs cut, China's 9 million U.S. dollars' worth of imports of fresh Australian lobster between January and March were triple those of 12 months ago, and exceeded China's entire 2015 imports of Australian lobster. Milk powder and fresh cherry imports more than doubled." "Chinese imports of other products -- including fresh mangoes, fresh abalone, fresh and frozen boneless beef, various types of cheese, and hay and chaff -- grew impressively as ChAFTA cut tariffs and boosted Australia's competitive position." Ciobo said the encouraging export figures would continue to rise as Asia's middle class grows, with increased demand not only from China, but from Japan and Korea as well, after Australia signed free trade deals with both nations earlier this decade. "This positions Australia to continue to capitalize on the rapid expansion of Asia's middle classes and their demand for the high quality produce and other goods we can provide," Ciobo said. "This means exciting opportunities for Australian businesses and will drive jobs and growth in the Australian economy."

SOURCE: The Xinhua Net

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