The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 22 JULY, 2022

NATIONAL

 

INTERNATIONAL

 

CBIC vetting paperless customs rules for SEZs

The framework will be in sync with new legislation proposed by the Centre to turn the SEZs into comprehensive economic hubs, with larger participation of states and further ease of compliance to attract investment. A proposal for a completely paperless customs compliance framework for special economic zones (SEZs) is being reviewed by the Central Board ofIndirect Taxes and Customs (CBIC), said officials. The framework will be in sync with new legislation proposed by the Centre to turn the SEZs into comprehensive economic hubs, with larger participation of states and further ease of compliance to attract investment. A working group of officers recently submitted a detailed report identifying processes which can be migrated to the ICES (Indian Customs EDI System) or the Indian Customs Electronic Gateway (ICEGATE) system to make the customs process automated and smooth. The CBIC has identified processes, including filing bills of entry, filling shipping bills and risk-based examination of cargo which will be migrated to the ICES systems. "We did a very comprehensive review of part of the touch points between the customs and SEZ units and the processes involved and how we can automate them," a senior official told ET.

Why the shift? While customs has done a lot of work on ease of doing business, SEZ units have been left out of their benefit. They don't use the ICES. While the basic filing on SEZ is online, there are a lot of contact points in that procedure. Permissions have to be taken from time to time. SEZs have to apply for renewing them and goods are examined most of the time. Businesses had proposed that all their filings be shifted to the ICES. So, whatever benefits that flow from it to normal importers and exporters will also be available to SEZs. In her budget speech, finance minister Nirmala Sitharaman had announced that the SEZ Act will be replaced with a new legislation that would enable states to become partners in development. She also announced that reforms would be undertaken in customs administration of SEZs to make them fully IT driven and function on the Customs National Portal, with a focus on higher facilitation and with only risk-based checks. This includes integration of ICEGATE with SEZ customs. Experts said reforms in customs administration of these zones will help in further improving ease of doing business, promoting growth and boosting exports. A working group of officials was tasked with looking at the physical touch points between customs and SEZ units, converting them to electronic mode and how they can migrate some of the major processes that the SEZ units have to comply with from the customs point of view to the ICES platform.

Source: Business Standard

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India-UK Trade Talks on Track; Negotiations to be Completed by 31st August: Commerce Secretary

The India-UK trade talks are on track. Speaking to media after signing two MoUs and a framework agreement with UK, Commerce Secretary B. V. R. Subrahmanyam said that the India-UK FTA negotiations would be concluded by 31st August and after internal approvals on both sides, the agreement would be ready to be signed as per convenience of the both leaders. “Irrespective of party in power in UK, the logic of FTA with India is irreversible,” he added. Earlier, Shri B.V.R. Subrahmanyam, Commerce Secretary, Government of India and Mr. James Bowler, Permanent Secretary, Department of International Trade, United Kingdom; India and the UK signed two MoUs on mutual recognition of educational qualifications including maritime education and a Framework Agreement on health care work force. These agreements will facilitate closer alignment on education between India and UK, enhance short-term bilateral mobility and ensure mutual recognition of qualifications. These agreements are part of the commitments made by both parties under the Enhanced Trade Partnership' (ETP) launched by the Prime Ministers of both countries on 4th May 2021 to unleash the trade potential of the partnership by doubling trade by 2030 and reducing market barriers to trade in key sectors. Following the launch of ETP, both sides had also launched negotiations for a Free Trade Agreement on 13th January 2022. The 5th round of negotiations, which is hosted by India, is currently underway in Delhi. The meeting also took stock of the progress made towards the signing of FTA. The MoU on Education was signed by Shri K. Sanjay Murthy, Secretary, Department of Higher Education on behalf of Government of India. This MoU provides for mutual recognition of educational qualifications and duration of study undertaken by students within duly approved and recognized higher education institutions in the two countries. On a reciprocal basis, Indian Senior Secondary School/Pre-University Certificates will be considered suitable for entry into UK higher education institutions. Similarly, the Bachelor degree, Master’s degree and Doctoral degree of India and the UK will also be considered equivalent to each other. Apart from encouraging student mobility, the mutual recognition of qualifications would also promote excellence in higher education through cooperation, academic and research exchanges. The MOU on maritime education qualification was signed by Shri Amitabh Kumar, Director General of Shipping on behalf of Government of India. This MoU will pave the way for the two governments to mutually recognize the certificates of maritime education and training, competency and endorsements of seafarers issued by each other. The MoU will prove beneficial for employment of seafarers of both the countries and would make them eligible for employment on ships of either party. India being a seafarer supplying nation with large pool of trained seafarers, it is expected to be significantly benefitted by the MoU. From Indian side, the Framework Agreement on Healthcare Workforce was signed by Ms. V. Hekali Zhimomi, Joint Secretary, Ministry of Health and Family Welfare. The Agreement include cooperation on Nursing & Allied Health Professionals (AHPs), training of healthcare professionals and measures to bridge the skill gap. The agreement will facilitate the recruitment and training of nurses and AHPs from India by UK in a streamlined manner. Given the shortage of nurses in the UK, the agreement will benefit both the sides.

Source: PIB

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Dr. Panagariya emphasises the importance of export-led growth and the need for revisiting the strategy on import substitution, export competitiveness, and the role of FTAs in trade liberalisation

The Department of Commerce (DoC), Ministry of Commerce and Industry, Government of India, in coordination with organised a Program on “Openness to Trade: Economic and Policy Considerations” for the Secretaries to Government of India in New Delhi today. The Program is part of the initiative by the Hon'ble Prime Minister’s to create better awareness at senior levels in Government about the importance of trade and the role played by exports in accelerating growth. It is also one of the Prime Minister's goal of exports as engines of inclusive growth and finding global markets for Indian local products. Accordingly, the Department of Commerce has planned an initiative of a three-level Capacity building and sensitisation programme to improve awareness and enhance capacity within the Government of India on Economic, policy and legal aspects of Trade and Exports and the factors influencing the overall growth. The inaugural session on “Openness to Trade: Economic and Policy Considerations” was conducted by Dr Arvind Panagariya, Professor of Economics, Columbia University, USA and Former Vice-Chairman, NITI Aayog for the Secretaries of the Government of India. Dr Panagariya emphasised the importance of export-led growth and the need for revisiting the strategy on import substitution, factors influencing export competitiveness, and the role of FTAs in trade liberalisation. He also highlighted the way forward for India when negotiating FTAs and their role in the global economy. Shri. Rajiv Gauba, Cabinet Secretary, Government of India, was the Chief Guest and delivered the inaugural remarks highlighting the role of FTAs and government's intervention such as PLIs (Performance Linked Incentive), ODOP (One district one product) in achieving India’s goal of a US$ 5 trillion economy and the need for stronger inter-ministerial cooperation and coordination. He said that covid had made us realize the pitfalls of depending on one country and one source. The participants of the first session included Secretaries from several Ministries/Departments of the Government of India and the senior officials of the Department of Commerce.

Source: PIB

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Odisha gets ₹21,000-cr worth investment proposals at Dubai investor summit

The Dubai Investors Meet inaugurated by Chief Minister Naveen Patnaik, saw the participation of around 150 companies from the Middle East and North Africa. Odisha on Wednesday (July 20) received investment proposals worth over ₹21,000 crore at an investors summit in Dubai, as per an official statement. The Dubai Investors Meet inaugurated by Chief Minister Naveen Patnaik, saw the participation of around 150 companies from the Middle East and North Africa, it said. “Investment intents worth more than ₹21,000 crore which have employment potential of more than 19,000 were received by the state across sectors such as infrastructure, hospitality, logistics, chemicals, food processing,” the statement said. Patnaik invited potential investors to visit the state and assured unmatched facilitation and support. The chief minister announced that the state would be hosting the third edition of the Make In Odisha summit from November 30 to December 4 in Bhubaneswar. Patnaik said that Odisha attracted investments worth USD 50 billion during the last two years despite the pandemic. The state is an attractive destination for Foreign Direct Investment (FDI) in sectors such as metals, chemicals and petrochemicals, textiles and apparel, food processing and clean energy, he said. The Dubai meet was jointly organized by the Odisha government, FICCI and the Embassy of India in UAE. The Lulu Group proposed to invest ₹500 crore in the state to build a luxury hotel focused on wellness, Patnaik later tweeted. Sobha Realty expressed intent to invest ₹5,000 crore in metals, metallurgy and the hospitality sector in Odisha, he added. Besides, the NBTC Group of Kuwait proposed to invest ₹5,000 crore for a urea plant in Odisha and the UAE-based Tabreed Group expressed intent to invest ₹1,000 crore for setting up an information and communications technology campus in Bhubaneswar, the chief minister said. The Sharaf Group also showed interest to invest in the states logistics sector, he said.

Source: The Federal

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India Post-Railways business model delivers parcels to customer doorstep

It is only the second railway route in India to be covered under the ‘Joint Parcel Product’ scheme between the Union Government departments. A total of 1.52 tonnes of incense sticks (agarbathis) chugged off from KSR Bengaluru railway station to Visakhapatnam railway station on board the Prashanti Express on Thursday afternoon, the first train to run as a joint venture in South India between India Post and the Railways. It is only the second railway route in India to be covered under the ‘Joint Parcel Product’ scheme between the Union Government departments. The consignment in 44 boxes departed at 1.40 pm on Train No. 18464 which runs up to Bhubaneswar. Chief Postmaster General, Karnataka Circle, S Rajendra Kumar said, “The first such venture was from Surat to Varanasi with textile products in April this year.” The crucial part for businesses is the first and last mile connectivity to be provided by India Post by picking and dropping the consignment at the doorsteps of firms. “The customer need not visit the railway station as in the past as we take care of it completely. We are already getting queries from other cities and the service to Raipur in Chhattisgarh will be the next such one,” he said. Chief Commercial Manager (Passenger Services), SWR, Dr Anup Dayanand Sadhu said the business through India Post opens up a completely new source of revenue for the Railways. “This is a pilot project. Railways will provide the middle connectivity under the scheme. We charge Rs 5.72 per kg for our service while India Post will charge Rs 6 per kg,” he said. A release from Railways said that a total freight charge of Rs 7,883 was charged for the transportation.

Source: New Indian Express

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India, 17 others unveil roadmap for long-term resilient supply chains

Besides India, the US, the EU, other partners are Australia, Brazil, Canada, Congo, France, Germany, Indonesia, Italy, Japan, Mexico, Netherlands, South Korea, Singapore, Spain and the UK. A partnership of 18 economies, including India, the US and the European Union (EU), has unveiled a four-point roadmap for building collective, long-term resilient supply chains, including steps to counter risks arising from supply dependencies and vulnerabilities. The roadmap was outlined in a joint statement issued on Wednesday following a virtual supply chain ministerial meeting hosted by US secretary of state Antony Blinken and secretary of commerce Gina Raimondo. The meeting was a followup to the supply chain summit convened by US President Joe Biden last October. The roadmap for building resilient supply chains is based on the global principles of transparency, diversification, security and sustainability, according to the statement. "Building collective, long-term resilient supply chains based on international partnerships is critical to the success of this effort," the statement said. The partners said they intend to "deepen our consultations to identify and address risks arising from supply dependencies and potential vulnerabilities in critical infrastructure" in order to promote supply chain security. "We intend to work together to address our mutual vulnerabilities and work to eliminate corruption in support of supply chain security," the statement said, adding this cooperation will involve partnerships with industry, labour, civil society and other relevant stakeholders to manage security risks to supply chains. Besides India, the US, the EU, other partners are Australia, Brazil, Canada, Congo, France, Germany, Indonesia, Italy, Japan, Mexico, Netherlands, South Korea, Singapore, Spain and the UK.

Source: Economic Times

Karnataka on top in Niti Aayog’s India Innovation Index 2021

For the Union territories and city-states, Chandigarh is the top performer, followed by Delhi. Karnataka has topped among the major states in the Niti Aayog’s India Innovation Index 2021, a comprehensive tool for the evaluation and development of the country’s innovation ecosystem. Telangana and Haryana are next in the list. Among the NorthEastern and hilly states, Manipur is the best performer, followed by Uttarakhand and Meghalaya. For the Union territories and city-states, Chandigarh is the top performer, followed by Delhi. The key findings provide a detailed analysis of the various factors that drive innovation in the country. These analyses will be critical for policymakers to identify the drivers and bottlenecks for each state to promote innovation in the region. Karnataka’s high score can be attributed to its peak performance in attracting FDI and a large number of venture capital deals. Karnataka also scores high in the ‘performer’ dimension, with the highest share of ICT exports and GI registrations. Uttar Pradesh and Haryana have registered significant gains in promoting an innovative business environment with a large base of internet subscribers and a safe ecosystem for further investment in the region. Among the 17 large states, Chhattisgarh, Odisha and Bihar have come at the bottom in the innovation scale. “I would like to reaffirm Niti Aayog’s continued commitment to monitoring the state of innovation in India through the India Innovation Index. We strive to improve the innovation ecosystem across the nation in partnership with the states and other stakeholders,” said Niti Aayog CEO Parameswaran Iyer. To have a comprehensive understanding of innovation in a state, the index measures performance on criteria such as human capital, investments, knowledge workers, business environment, safety and legal environment, etc.

Source: Financial Express

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Panel seeks strong action against errant e-tailers

Standing committee report highlights gaps in FDI policy The Parliamentary standing committee on commerce has suggested that the government strengthen the enforcement mechanism under its foreign direct investment (FDI) policy to take “proactive action” against e-commerce giants flouting FDI rules. If adopted, any such proposal could spell trouble for e-commerce firms like Amazon and Flipkart, which have often been accused by players representing brick-and-mortar stores of contravening FDI rules that bar marketplaces from offering predatory discounts through sellers on their platforms, among others. For their part, these e-tailers have maintained that they always comply with the relevant rules. In a report submitted to Parliament on Thursday, the panel also flagged the “limited” scope of the FDI policy in addressing anticompetitive practices in e-marketplaces, such as “self-preferencing, lack of platform neutrality, deep-discounting, exclusive agreements and preferential treatment to selected sellers”. The panel asked the department for the promotion of industry and internal trade (DPIIT) to firm up a comprehensive framework under the national e-commerce policy that addresses these issues, “irrespective of the marketplace being funded by foreign or domestic entities”. The House committee is chaired by V Vijayasai Reddy, a leader of the YSR Congress party. The government is already in the process of formulating a comprehensive e-commerce policy, which is expected to define e-commerce and stipulate rules on the role of marketplace entities and liabilities of e-commerce companies, among other related issues. The panel observed that while the FDI policy on e-commerce attempts to address various issues in the sector, “it fell short in its enforcement mechanism”. “A time-bound investigation mechanism is required to address the fast-paced digital market and to ensure that unfair market practices do not occur due to sluggish investigation process,” it said. At present, while the DPIIT formulates and notifies FDI policies, any violation of such rules is dealt with under the penal provisions of the Foreign Exchange Management Act. This law is administered by the Reserve Bank of India (RBI), and the enforcement directorate (ED) is its enforcement authority. In December 2020, the commerce and industry ministry had asked the RBI and the ED to take “necessary action” on allegations made by the Confederation of All India Traders against Amazon, Flipkart and Walmart relating to the violations of the FDI and other relevant rules. However, senior executives of the traders’ body have often complained that there has been no perceptible action against the e-commerce players despite its complaints. The House panel said that all e-commerce companies must be registered with the DPIIT, which will be the first step towards streamlining regulations and gauging the progress of the sector. The committee also recommended wider power to the Competition Commission of India to “prohibit e-marketplace giants from engaging in anti-competitive transactions that may irremediably tip the Indian e-commerce market”. At the same time, frequent changes to the FDI policy bring uncertainty to the policy regime. So, a stable FDI policy regime in e-commerce needs to be in place to boost the confidence of potential investors, it said. Highlighting the lack of adequate data relating to the e-commerce sector, including those on the share of e-commerce market in GDP and employment opportunities generated by e-commerce, the panel asked the government to collate such data to be able to firm up better policy interventions.

Source: Financial Express

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Give your saris and textiles a second life

Home grown sari and textile brand, Ekaya, celebrates ten years this September. For their 10th anniversary year, the brand has launched an initiative, Project Second Chance, committed to reselling and the revival of preowned Ekaya textiles. Patrons of their brand will be able to sell their pre-owned Ekaya sarees, which have existed in their closets for a long time and are also encourage to extend their collectibles' lives by sharing with others in more ways than one. This allows the community to grow by bringing in more like minded people and allowing them to enjoy their love for textiles. Palak Shah, co-founder and creative director of Ekaya says, "Large part of my wardrobe today is focused on how I can rewear my Ekaya textiles. I look closely at my favourite styles and silhouettes I enjoy wearing again and again with confidence. I seek out new styles I like instinctively and take a moment to consider what I can recycle and how can I ensure the investments I made into textiles I love always get a second chance. This project is dear to my heart in our continuous commitment to sustainability the Ekaya way". "So choose Your "R" and give your wardrobe and heirloom textiles a "Second Chance". Resell Your gently used Ekaya saris will be evaluated, and you will be able to sell the textile or sari for a reduced price. You will also be able to choose another brand new or pre-owned item with the proceeds from the sale. Repurpose Bring your Ekaya back to reimagine it, the brand will repurpose it with a healthy dose of imagination turning it into a unique jacket, an Obi belt and trousers or skirt, a shirt, and much more. Revive Share your heirloom textile, the brand will evaluate the designs, weaving technique, and period to which it belongs. It might be considered for their second edition of "Revival" saris, wherein they will weave a new one and return it to you for your wardrobe to be treasured by future generations. This design will then be added to the brand's "Revival" line for others to purchase. When our artisans have access to our textile history and can recreate a treasured technique, it helps to keep the craft alive. Restore Restore your treasured heirloom saris and textiles, get them assessed and learn ways to better preserve them in your cupboard. Rewear Last but not least, wear your Ekaya again! Making the commitment to rewear requires small doses of refreshment at times. Rep and redrape your Ekaya wardrobe in your personal style. Look through your closet for other pieces you can repurpose to wear with it. Take that sari out and pair it with a look that makes you want to rewear it. And, of course, Ekaya Thaan is always available for inspiration.

Source: Daiji World

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Rising costs & falling orders slow down global supply chains in Q2

Global supply chain activity slowed for the second quarter in a row in Q2, dropping by a further six points against forecast estimates, according to the latest Index of Global Trade Health. The Index is released by Tradeshift, a San Francisco-based supply chain commerce platform which is aiding digital trade transactions between B2B buyers and suppliers. Tradeshift’s Index of Global Trade Health analyses business-to-business transaction volumes (orders processed from buyers and invoices processed from suppliers) submitted via the Tradeshift platform to offer a perspective of how external events may be impacting business-tobusiness commerce in a variety of different regions and sectors across the globe. Order volumes on Tradeshift’s platform fell even further below expectation in Q2, sliding by a further six points following a seven-point drop in the previous quarter. The lack of fresh orders is beginning to impact suppliers, who had only recently been struggling to cope with surging demand. The number of invoices submitted by suppliers dropped by seven points in Q2, the most significant slowdown in a year, Tradeshift said. Orders might be softening, but Tradeshift’s analysis suggests costs have risen sharply since the beginning of the year. The average value of an invoice submitted on Tradeshift’s platform has increased by 11 per cent since the start of 2022, compared to a more modest 3.5 per cent rise in 2021. “Many of the current supply chain challenges, including inflation, have roots in the pandemic,” said Christian Lanng, CEO and co-founder at Tradeshift. “Some of these problems are transitory, but the bigger issues, including labour shortages, geopolitical tension, and energy transition, are structural and risk becoming entrenched unless businesses take decisive action now.” Tradeshift’s analysis revealed a remarkably similar pattern across regional supply chains the world over. Total trade activity in the UK and the Eurozone dropped by five points, with new orders and supplier invoices tracking below the expected range. US supply chains fared slightly better than the global average. Transaction volumes were four points below the expected range in Q2, but the volume of new orders remains low. Chinese trade activity had another challenging quarter as new lockdown measures in key cities contributed to another seven-point fall in transaction volumes against the expected range. Tradeshift’s data suggests that declining demand is also leading to a cooling-off in activity across the transport and logistics sector. Transaction volumes across the industry dipped below the expected range for the first time in a year after a five-point fall in activity compared to the previous quarter. Manufacturing and retail trade activity also remained below the expected range. Technology spending recovered sharply in Q2, with activity tracking well within the predicted range. “It would be an entirely natural response for business leaders to want to batten down the hatches and wait for the current storm to pass,” said Lanng, “but many of the same problems supply chains face today will still be there a year from now. How long can a business hold its breath before it runs out of air? The majority of business leaders I speak to are keeping their eyes on the horizon and pressing ahead with much-need investments in technology that will allow them to become more agile, resilient, and sustainable.”

Source: Fibre 2 Fashion

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China & EU pledge to tackle global economic challenges together

China & EU agreed to increase cooperation in financial services and present a united front when dealing with the challenges facing the global economy at the 9th EU-China High-Level Economic and Trade Dialogue (HED). The HED also focused on supply chain disruptions due to COVID-19 as well bilateral trade and investment concerns. The European Commission’s Executive Vice-President Valdis Dombrovskis and China’s Vice-Premier Liu He chaired the HED. European Commissioner Mairead McGuinness also took part in the discussions, especially regarding financial services. The HED also explored the far-ranging effects of Russia’s invasion of Ukraine, including on food, energy, and financial markets. “The EU and China are key trading partners. The importance of our economies comes with a responsibility to shape joint responses to global economic and trade challenges, such as disruptions in supply chains, global food insecurity, debt relief for the most vulnerable countries, and reform of the World Trade Organisation. I emphasised that Russia’s war of aggression against Ukraine is creating considerable challenges for global security and economy. I also underlined the need for continued engagement to build more balanced and reciprocal trade and investment relations between the EU and China,” Dombrovskis said in a statement released by the European Commission. Both parties welcomed the signing of the Memorandum of Understanding between the People’s Bank of China and the European Securities and Markets Authority which ensures access to the Shanghai Clearing House for European banks. The EU also responded positively to China’s willingness to assess its Carbon Emissions Reduction Supporting Tool, with a view to a possible participation of EU banks, added the release. The EU and China have decided to hold the next HED in 2023. The EU and China are major trading partners. In 2021, China was the third largest partner for EU exports of goods (10.2 per cent) and the largest partner for EU.

Source: Fibre 2 Fashion

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Textile-garment exports set to reach 43 billion USD this year: VITAS

Vietnamese textile-garment producers set to earn up to 21 billion USD from exports in the second half of 2022, raising total shipments of the year to around 42 – 43 billion USD, Chairman of the Vietnam Textile & Apparel Association (VITAS) Vu Duc Giang told a press conference on July 21. Vietnam's textile-garment producers target to earn up to 21 billion USD from exports in the second half of 2022, raising total shipments of the year to around 42 – 43 billion USD, Chairman of the Vietnam Textile & Apparel Association (VITAS) Vu Duc Giang told a press conference on July 21. The industry has seen a gradual recovery this year after being adversely impacted by COVID-19 for two years, according to the VITAS. It enjoyed trade surplus of 8.86 billion USD in the first half of the year. Exports of textile and garment totalled some 22.3 billion USD from January-June, a 17.7% increase from the same period last year. Garment export alone rose by 19.5% year-on-year to 16.94 billion USD and that of fabrics reached 1.4 billion USD, up 20.8% year-on-year. Vietnam imported 13.4 billion USD worth of trims and accessories in H1, up 9.8% year-on-year. VITAS Chairman Giang anticipated the industry is facing a bumpy road ahead with various obstacles in the remaining months of 2022. The immense risk of COVID-19 resurgence caused by new variants is still present, he said, adding that strict virus control measures remain in place in many big trade partners of Vietnam like China, Japan and Taiwan (China), disrupting its input supply chain and sales. There are also other threats, including record-high inflation at major importers, including the United States and Europe, and the Russia-Ukraine tension triggering a steep rise in prices of inputs, he added. Prices of cotton, crude oil and petrol soared 19.1%, 40% and 67%, respectively, compared to the beginning of this year and transportation cost tripled the average rate of the last five years, driving total expenditures of Vietnamese exporters up as much as 20 – 25%, he explained. He further noted that compared to their rivals, Vietnamese exporters are confronting disadvantages in currency exchange rates. They have also been dealing with postpandemic labour shortage and struggling to fulfil FTA commitments on rule of origin and environment protection, Giang said. To keep production going and sustainably develop the industry, producers must innovate technologies, promote green transformation and pay greater attention to training designers, according to Giang. VITAS has been working to connect domestic and foreign firms for the formation of supply chains, expand markets, and enhance international cooperation in implementing projects in renewable energy, efficient water use, designing, branding and labour management, he said.

Source: Vietnam Plus

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China Penalty Tariffs On Finished Textiles & Apparel Give U.S. Companies A Chance To Compete And Are A Powerful Trade-Negotiation Tool, NCTO Tells U.S. International Trade Commission

Section 301 penalty tariffs on finished Chinese textile and apparel imports give American manufacturers a chance to compete and provide trade officials with an essential trade negotiation tool, the National Council of Textile Organizations (NCTO) told a key government panel today in a formal written submission. Removing them, the association said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation. Those were among the key points outlined by NCTO President and CEO Kim Glas in a written testimony submitted to the U.S. International Trade Commission during three days of hearings on the economic impact of Section 301 China tariffs and Section 232 steel tariffs on U.S. industries. The 301 penalty tariffs should be maintained “absent substantive improvements in China’s pervasive, predatory trade practices,” Glas said in her testimony. China’s illegal actions “have put U.S. companies at a serious disadvantage, and tariffs give American manufacturers a chance to compete.” Glas noted that U.S. trade officials have “stressed that the penalty tariffs also create leverage and are a ‘significant tool’ in ongoing negotiations with China.” While some advocates for lifting the tariffs point to concerns about inflation, Glas said, “canceling these penalty duties would do little to ease Americans’ inflationary pains.” She also noted that “apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs in place. As detailed in an economic study recently released by Werner International, U.S. import prices for apparel from China have dropped 25 percent since 2019 and 50 percent since 2011.” Glas also warned that lifting the tariffs would have “a substantial negative ripple effect” on U.S. free-trade agreements, including undermining those with Western Hemisphere partners that have established shorter coproduction supply chains and serve other U.S. and regional interests. The Section 301 tariffs were first imposed in 2018 in response to China’s persistent violations of intellectual property rules. By law, they are now under review. NCTO represents the full spectrum of the U.S. textile industry, from fibers to finished sewn products.

Source: Textile World

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France to require climate impact info on clothes

Next year onwards, all clothing items sold in France would require label containing information about precise climate impact the manufacture has had. It is expected that a similar rule would come in effect in European Union by 2026. This may mean clothing brands would have to juggle many data points: Where and how were its raw materials grown? What was used to colour it? How far did it travel? Was the factory powered with solar energy or coal? The French Agency for Ecological Transition (Ademe) is currently testing 11 proposals for how to collect and compare data -- and what the resulting label might look like to consumers -- using 500 real-life items of clothing. "The message of the law is clear -- it will become obligatory, so brands need to prepare, to make their products traceable, to organise the automatic collection of data," Erwan Autret, one of the coordinators at Ademe, told AFP. "Some say the models are too simple, some say they're too complicated, but it's a sign of the maturity of the debate that no one questions the need for these calculations anymore." As per United Nations, the fashion industry is responsible for 10 per cent of global carbon emissions. It is also responsible for a significant portion of water consumption and waste. Campaigners say that labels can go a long way to address the environmental impact. "It will force brands to be more transparent and informed... to collect data and create long-term relationships with their suppliers -- all things they're not used to doing," said Victoire Satto, of The Good Goods, It is a media agency focused on sustainable fashion. "Right now it seems infinitely complex," she added. "But we've seen it applied in other industries such as medical supplies." A presentation by Paris-based textiles conference, Premiere vision, put emphasis on new processes that included non-toxic leather tanning, dyes from fruits and waste and even biodegradable underwear. But Ariane Bigot, Premiere Vision's deputy head of fashion said that the key to sustainability is using the right fabric for the right garment. That means synthetic and oil-based fabrics will still have a place, she said: "A strong synthetic with a very long lifespan might be right for some uses, such as an over-garment that needs little washing." Capturing all these trade-offs in one simple label on an item of clothing is therefore tricky. "It's very complicated," said Bigot. "But we need to get the machine started."

Source: Wionews

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Cambodian apparel exports shot up 39.36% in January-June 2022

Cambodia’s exports of knitted and non-knitted apparel and clothing accessories (HS code 61 and 62) increased by 39.36 per cent to $4,510.104 million during January-June 2022. According to the trade data released by Cambodian General Department of Customs and Excise, the export was recorded at $3,236.925 million in the corresponding period of 2021. The exports of Cambodia’s knitted apparel and clothing accessories (HS code 61) increased by 39.3 percent to $3,157 million during the first half of this year, while the export of non-knitted apparel and clothing (HS Code 62) went up by 39.4 per cent to $1,352.481 million. The export of other made ups textile articles (HS code 63) increased by 0.7 per cent to $95.860 million in January-June 2022 compared to $95.147 million in the first half of last year. In June 2022, Cambodia’s export of knitted and non-knitted apparel and clothing accessories increased by 40.51 per cent to $867.985 million, as against exports of $617.92 million in June 2021. The shipment of knitted apparel and clothing accessories rose 35.7 per cent to $646.458 million during the month, while the export of non-knitted apparel and clothing increased 56.7 per cent to $221.527 million. However, the export of other made ups textile articles stood at $11.379 million in June 2022, showing a decrease of 31.3 per cent over $16.562 million in the same month of last year.

Source: Vietnam Plus

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