The EU has withdrawn the preferential duty access for Indian goods as there has been an improvement in the income levels and competitiveness in India Question: Exports of Indian goods to countries of the European Union are stagnating and likely to decline. Is this on account of the geopolitical situation prevailing at present? Apart from the uncertainty prevailing at present on account of the war in Ukraine, Indian exports have been affected because the European Union has withdrawn preferential tariffs applicable to several Indian goods, including textiles and apparel, chemicals, leather works, gems and jewellery products, and railway equipment. The EU has withdrawn the preferential duty access for Indian goods as there has been an improvement in the income levels and competitiveness in India. Textiles will now attract import duties in the EU at the rate of 12 per cent. Currently, the most favoured nation import duty is 9.6 per cent. However, all textile products are not covered by the withdrawal of preferred tariff. There is optimism on the trade front because India and the EU are currently negotiating a bilateral trade agreement. The Indian Government has decided to negotiate free trade agreements which would give a tariff advantage to European goods which are imported into India. After having signed the free trade agreements with Australia and the UAE, such agreements have been pursued vigorously with the United Kingdom and the European Union. It is therefore expected that Indian exports to these countries will increase in the near future.
Source: Khaleej Times
Trade deficit, however, moderated a bit to $25.7 billion in September from a record $28 billion in the previous month, as import growth slowed, possibly reflecting a softening of pent-up domestic demand and a high base effect With global commodity prices moderating, export value will remain under pressure in the coming months. Merchandise exports rose just 4.8% in September from a year before to $35.5 billion, as easing global commodity prices, on top of a slowdown in demand from key markets, continued to hurt order flow for a third straight month. Trade deficit, however, moderated a bit to $25.7 billion in September from a record $28 billion in the previous month, as import growth slowed, possibly reflecting a softening of pent-up domestic demand and a high base effect. Still the record quarterly trade deficit of almost $84 billion in the three months through September will further pressure the current account, the deficit in which had hit a 15- quarter high in the June quarter. According to the provisional data released by the commerce ministry on Friday, imports rose just 8.7% in September to $61.2 billion. Imports had grown 43.6% in July and 37.3% in August. Importantly, core exports (excluding the petroleum, gems and jewellery segments) contracted 4.6% in September from a year before to $24.2 billion, the worst monthly slide since May 2020. Overall exports in the first half of FY23 touched $231.9 billion, up 17% from a year before, mainly due to decent performance in the first two months of this fiscal. With global commodity prices moderating, export value will remain under pressure in the coming months. This will add to the woes of a demand slowdown in the US, EU, China and the UK. The country hasn’t quite gained from the rupee depreciation, as the currencies of some of its competitors have weakened against the greenback at a faster pace. However, domestic exporters and policy makers are pinning hopes on the diversion of a portion of western orders away from China, whose ability to ship out has been somewhat undermined by the fresh Covid outbreak there. Data for high-value segments showed exports of electronics grew as much as 72% to $2 billion in September, followed by petroleum products (43% to $7.4 billion), gems and jewellery (17% to $3.8 billion). However, exports from labour-intensive sectors like textiles & garments and carpets dropped. Engineering goods exports contracted almost 11% to $8.4 billion. As for imports, the purchases of coal continued to rise sharply. In September, coal imports jumped 61% to $3.5 billion, even though oil and oil product imports showed a 5% decline to $15.9 billion. Interestingly, imports of iron & steel jumped 39% to $1.9 billion. Aditi Nayar, chief economist at ICRA, said the non-petroleum and non-gems & jewellery exports have displayed a contraction, suggesting a “sombre outlook for exports” in the near term. A Shakthivel, president of the apex exporters’ body FIEO, conceded that “the coming few months would be quite challenging unless the geopolitical situation improves drastically”.
Source: Financial Express
The minister held discussions with exporters here in the context of the current geopolitical scenario and deliberated on the way forward to keep the growth momentum. The session was attended by a large number of leading exporters from Tamil Nadu. India will achieve the target for exports of $2 trillion by 2030 despite global headwinds, Union minister of commerce and industry Piyush Goyal said on Sunday. Highlighting the trajectory towards becoming a developed nation, he said that by 2047, the country will become a $30-trillion economy. By 2030, exports from India will be worth $2 trillion, with merchandise shipments of $1 trillion. Merchandise exports will grow at a CAGR of 11-12% and service exports at 18-19%. The minister held discussions with exporters here in the context of the current geopolitical scenario and deliberated on the way forward to keep the growth momentum. The session was attended by a large number of leading exporters from Tamil Nadu. India’s merchandise exports last fiscal stood at $422 billion, while services exports were $254 billion. “We have to push our exports so as to be in the comity of developed countries. Despite global headwinds, Indian exports have done reasonably well, clocking 15% growth in the first six months of the current fiscal,” he said. He assured the industry participants that the government is committed to addressing issues raised by them. The commerce and industry minister urged trade and industry members to make all efforts to achieve higher export growth in this financial year. Exporters have flagged several issues, including the rising cost of raw materials, subdued demand in key export markets and the need for more support to exporters. Industry leaders requested the inclusion of sectors left out of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and rationalisation of existing RoDTEP rates, exploring the possibility for increased support under the interest equalisation scheme (IES) and market access initiative (MAI), and operationalisation of production-linked incentive schemes for additional sectors.
Source: Financial Express
Reliance Industries Ltd, India’s largest player in polyester value chain, has decreased prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT. It had increased prices of PTA, MEG and MELT last week. Earlier, the company had decreased the prices of polyester staple fibre (PSF) by ₹3 per kg to ₹107 per kg for the current fortnight. The Indian market takes cue from the prices of RIL. The company reviews global market conditions, price trend in China and fluctuation in crude oil prices to determine prices of polyester raw materials. According to the market sources, RIL fixed PTA price at ₹86 per kg (-1.80), MEG at ₹55.70 per kg (-0.50) and MELT ₹92.90 per kg (-1.72). New pricing of polyester raw materials will come into effect from Saturday, October 15. RIL reviews prices of PSF every fortnight and is expected to soon revise the prices for the coming fortnight.
Source: Fibre 2 Fashion
All reforms in the industry during her tenure as Textile Minister were possible due to the partnership of the people in the Ministry and the industry. Union Minister for Women and Child Welfare and Minority Affairs Smriti Zubin Irani on Sunday thanked the textile industry for meeting the expectations of Prime Minister Narendra Modi that the industry can turn around and compete in the international market. Modi had full confidence in the textile industry, which had suffered during the two-year pandemic, she said. All reforms in the industry during her tenure as Textile Minister were possible due to the partnership of the people in the Ministry and the industry, she said.
Source: Outlook India
Around 400 products, including Banarasi Zardozi, Gir Kesar Mango, Firozabad Glass, Kancheepuram Silk, Kangra Paintings and Araku Valley Arabica Coffee, are set to get a global branding push as India seeks to promote them globally to boost their exports. The Department for Promotion of Industry and Internal Trade (DPIIT) plans to hold roadshows, car shows, product demonstrations and free product trials for products tagged with GeographicalIndications (GI), as part of the plan. "This is a part of a larger plan to explore the export potential of GI products," a government official told ET. As of July, 420 products were granted GI registration, of which around 150 GI-tagged products are agricultural and food products, and almost 240 are handicrafts and handloom. The DPIIT wants to promote these in a focussed manner and an extensive plan is being drawn up on the lines of OneDistrict One-Product scheme to provide much-needed support for their exports. Celebration of GI Day, GI fair and a GI awareness campaign are also being discussed to develop a premium brand for Indian GI products and promote them as niche items having their reputation linked with the geographic region to which they belong. India has exported Naga Mircha (King Chilli) from Nagaland, Black Rice from Manipur and Assam Lemon to the UK, three GI varieties of Mango (Fazli, Khirsapati, and Laxman Bhog) from West Bengal and one GI variety of Mango (Zardalu) from Bihar to Bahrain and Qatar. DPIIT plans to rope in professional agencies for the GIs of India programme, and onboard brand ambassadors and influencers from celebrities and renowned personalities.
Source: Economic Times
The government is considering proposals to extend Rs 35,000 crore PLI scheme to different sectors such as leather, bicycle, some vaccine materials, and certain telecom products with an aim to boost domestic manufacturing and create jobs, an official said. PLI (production linked incentive) benefits are also being considered for toys, some chemicals and shipping containers. “The proposals are at discussion stage. Inter-ministerial talks are going on to extend PLI benefits to all these different sectors as there has been demand from industry and certain departments,” the official said. The government has already rolled out the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components, white goods, pharma, textiles, food products, high efficiency solar PV modules, advance chemistry cell and speciality steel. The official said there are some savings from this Rs 2 lakh crore which could be considered for other sectors, and is under discussions. The objective of the scheme is to make domestic manufacturing globally competitive and create global champions in manufacturing. Last month, Commerce and Industry Minister Piyush Goyal stated that the government is working to extend incentives under the PLI scheme to more sectors. The PLI scheme is also aimed at making Indian manufacturers globally competitive, attracting investment in the areas of core competency and cutting-edge technology; ensuring efficiencies; creating economies of scale; enhancing exports and make India an integral part of the global supply chain.
Source: Daily Pioneer
Minister of Commerce and Industry said that the patent law will be amended and moved online The Centre is going to amend the Patent Law to make it simple, said Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles on Sunday. All those who have got patents, write in with your experience and all the difficulties that you have gone through while getting a patent. “I am amending the patent law by making it simpler and moving everything online. If you give your inputs, I would be able to do my job better,” he told students and innovators during his visit to IIT Madras Research Park (IITMRP). He added that let's work with a spirit of partnership and work together. Incidentally, on Saturday, while addressing the valedictory session of the National Intellectual Property (IP) Conference 2022, the minister urged IP professionals to cultivate sensitivity in their work so that the IP ecosystem does not disrupt good work by denying patents to those who have worked hard on their innovations and truly deserve patent protection. The minister at IITMRP told students that everything you do and every single technology that is being produced has one big advantage-a market of 1.3 billion Indians, who are the world’s biggest aspirational population. He said this will help you get economies of scale and power the technologies that you are producing. All eyes on India The world is looking at India now. The Free Trade Agreement (FTA) with the UAE was done in 88 days. An Economic Partnership was signed with Australia. “You may be reading the spat between India and the UK on certain issues where they made very uncharitable and absolutely false comments, sadly made by a person of Indian origin,” he said. The world is wooing us. The six GCC Gulf countries for the last ten years never bothered to have an FTA whenever India asked for it. However, for one and a half years, they have been wooing India. “I personally spoke to my counterpart in Switzerland four times, but he didn't bother. However, in the last two years, he has been wooing me,” he said. The world recognises that India’s time has arrived. They want to engage with India for skills (talent), the demographic dividend and the large market. This translates to a huge demand for everything, including washing machines and dishwashers. He added that talent, scale, and skill are an unbeatable combination. Earlier, speaking at the Exporters Conclave organised by FIEO and Office of DGFT, the minister said that exports play a key role in the transition of a country from a developing to a developed status. We have to push our exports so as to be in the comity of developed countries. Despite global headwinds, Indian exports have done reasonably well, clocking 15 per cent growth in the first six months of the current fiscal, says a PIB release.
Source: Outlook India
Standards are the new patents and those who control standards, control markets, prices, processes, manufacturing and innovations, said Shri Piyush Goyal, Union Minister of Consumer Affairs, Food & Public Distribution, Textiles and Commerce & Industry, said in his message on World Standards Day celebration organized at Bureau of Indian Standards (BIS) headquarters here today. The Union Minister said that under the leadership of Prime Minister, standards are considered as a key pillar of growth. He mentioned that Hon’ble Prime Minister gave the world the mantra of LIFE i.e ‘Lifestyle for Environment’. When a nation sets benchmark for standards, it’s a reflection upon its strong foundation and potential he added. He said that BIS should become a benchmark for quality control, quality assessment and quality assurance. He further said that BIS, as the National Standards Body should act as a facilitator for the industry by formulating Standards that support Zero defect, Zero effect and should emerge as a global player and pioneer in the field of standardization. He encouraged all concerned to pledge to make India a quality conscious nation and make Indian quality a matter of pride for every Indian. He mentioned that the theme of the World Standards Day shares India’s vision for a better world with focus on standards and sustainable development, as the country is also striving to become a quality conscious nation with an emphasis on sustainability. Shri Goyal said that with the mantra of quality and sustainability, India can create brand value for Indian products across the world. He opined that BIS must revise and add sustainability in the existing standards for the new standards they create as a part of National Action Plan. He asked BIS to facilitate businesses and industries by ensuring safety, quality and cost competitiveness and liability of products. BIS should aim to be pioneer in the global world and beat out foreign and non-standard products, Shri Goyal added. In his message on further improvement in the functioning of BIS, the Minister said that BIS must look at the analysis and setup additional labs across the country and modernize the existing labs. He said that such mapping of labs has been done in past and he is confident that in next few months, BIS will ensure high quality modern labs for both the industry and consumers. The inaugural function was presided over by Shri Ashwini Kumar Choubey, Hon’ble Minister of State, Ministry of Consumer Affairs, Food & Public Distribution & Environment, Forest & Climate Change wherein he appreciated the efforts made by BIS to involve stakeholders from government, industry, standard developers, academia, consumer groups etc in framing the comprehensive strategy document on national standardization i.e. Standards National Action Plan (SNAP) 2022-27 which is an action plan identifying emerging areas of standardization that support Government’s initiatives in the fields of Digital India, Smart Agriculture, Smart cities etc. He expressed hope that SNAP 2022-27 would have a forced multiplier effect on the national growth. World Standards Day was celebrated in the Headquarters as well as in the 5 regional and 41 branch offices by organizing various activities such as Manak Manthan, Quality Walk and Quality Connect programmes, targeted to reach out to more than one lakh households with the message of quality consciousness. To commemorate the special occasion, BIS offices across the country were lit up in vibrant colours of the National Flag. During the programme, insights on SNAP 2022-27 were shared by some eminent industry representatives. Further, representatives of eminent Educational Institutions such deliberated on the importance of standards in technical education. Technical Experts were also felicitated for their contribution in the field of standardization. The theme for this year’s World Standards Day is ‘Shared Vision for a Better World’ with reference to the Sustainable Development Goals. Technical sessions on Standards for Sustainable Communities were held in the afternoon wherein presentations were made by experts and eminent personalities on topics of Circular Economy, Recycling of Plastics and Bio-degradable Plastic, Green Mobility, AYUSH Systems for good Health and Well-Being, Sustainable Cities and Communities, Sustainable Agricultural Practices, Sustainable Cooling and Affordable and Clean Energy.
Source: PIB
A free trade agreement between India and Britain will not be done in time for Diwali in late October, two sources in New Delhi told Reuters on Friday, although it was not immediately clear what was causing the delay. Previous sticking points have included a steep import duty on British whiskey for sale in India and India's demand for more visas for Indian students and businesses. After meeting Indian Prime Minister Narendra Modi in New Delhi in April, then-British premier Boris Johnson said that the two leaders had agreed to get a deal done by the Hindu festival, which falls on Oct. 24 this year. The aim is to double bilateral trade by 2030, from more than $31 billion now. The sources declined to be named ahead of an official announcement but India’s foreign ministry spokesperson, Arindam Bagchi said the Diwali deadline had not been cast in stone. “There was a general goal of trying to get it done by Diwali. But goals are dependent on negotiations,” he told a news conference on Friday. “So let me not complicate the negotiators’ lives by saying it has to be done by a certain date.” Asked if India’s demand for more visas was holding up negotiations, Mr. Bagchi did not answer directly but said there was an understanding between both countries on “mobility and consular matters” which would require “mutual implementation”. India’s trade ministry and Britain’s trade and foreign departments did not immediately respond to requests for comment. British Prime Minister Liz Truss’ spokesman said on Thursday her government still wanted to secure a deal with India by Diwali but would not sacrifice quality for speed. Also on Thursday, British foreign minister James Cleverly said that his country wanted to have an even stronger trading relationship with India after reported comments made by interior minister Suella Braverman about the possible impact of Indian migrants in Britain. Indian foreign minister S. Jaishankar said on Twitter that he had a conversation with Cleverly and both “reviewed various aspects of our bilateral relationship” and looked forward to an early in-person meeting. Apart from more visas, India wants to increase exports of leather, textiles, jewellery and food products to Britain, while Britain is keen to sell more whiskey to India and wants it to reduce an import duty of 150%. Also, Reuters reported last week that Indian car makers had proposed cutting to 30% the tax rate on imported cars as part of the trade deal with Britain, from 60% to 100% now.
Source: The Hindu
Commerce Minister Piyush Goyal on Sunday said that today’s meeting had been the most-engaging one with exporters in Chennai and that he had noted all the points. The minister also added that the southern state was at second place in state GDP (SGDP) and that the state is the major exporter in the sectors of textiles, leather, marine food, auto components. Piyush Goyal was inaugurating stalls of the Union government schemes as part of the public outreach at the Madipakkam bus stand in Chennai. He also said that the country was really proud that Tamil Nadu was supporting nationalbuilding and the development of the country. He also mentioned that the future of Tamil Nadu is K Annamalai, the leader of Tamil Nadu. He said there were wonderful things happening in Tamil Nadu, and added, “In 2047, when we are about to celebrate our centenary of our country, $20-trillion economy will surely be achieved in India.” K Annamalai is the Bharatiya Janata Party (BJP) president in the state. He also added that, “In 2030, service and merchandise exports will increase to $1 trillion and even in other sectors economy.” “I salute the women’s empowerment of India. The principles, the culture, the heritage and the family value system added economic value to the nation,” the minister said. Piyush Goyal also said, “I have the confidence that by our strength, $750-billion of exports will be done soon and India will grow to 11 per cent in exports.” He said, “When we work together, we can achieve anything in India. I enjoyed listening to all of your points and I have noted it that I’ll try to rectify the issues in a possible manner.”
Source: The Print
President Dr Arif Alvi, on Friday, signed, “the Export-Import Bank of Pakistan Bill, 2022” into law after its passage by the Parliament. The president also gave his assent to two other bills, “Publication of Laws of Pakistan (Amendment) Bill, 2022” and “Diplomatic and Consular Officers (Oath and Fee) Amendment Bill, 2022”. President Alvi assented the said three bills under Article 75 of the Constitution. Now, after this law, the way will be open for the establishment of the bank to promote trade in Pakistan. According to law, the Export-Import Bank of Pakistan would be established for the purpose of – “(a) supporting, promoting and developing international trade, trade investments, export-oriented and imported substituting business and industries in accordance with the provisions of this Act and the national trade policies and programs of the federal government; (b) the administration, operation and management of such international trade schemes as may be transferred or outsourced to the Bank by the federal government or any of its agencies, or the State Bank, as a trustee, agent, or service provider, on such terms and conditions as may be prescribed through the rules under this Act.”’ Under this law, the Export-Import Bank of Pakistan will be established. The bank will obtain reinsurances from any foreign agencies or any insurance companies in or outside Pakistan. The bank will also provide its own or with other financial institutions or insurance providers in or outside Pakistan, trade financing, trade credit insurance and equity participation. According to clause 7 of the bill related to borrowing, “The bank may, for the purpose of the bank’s business, borrow in local or foreign currency on such terms and conditions as may be prescribed by the Board and subject to the provision of other laws, from the following sources, namely- (a) the federal government, (b) international, bilateral and multilateral agencies, (c) financial institutions, (d) the public by issuing, on its or through a wholly-owned or controlled subsidy, securities in or outside Pakistan; or (e) through such other means as may be permitted under the prudential regulations or is otherwise approved by State Bank.”
Source: Business Recorder
The commerce minister on October 13 asked the Turkish ambassador to encourage players from the transcontinental country to invest in Cambodian agricultural, agroindustrial and food processing projects that align with Islamic principles, as the envoy revealed that Ankara plans to open a trade office at her embassy to better coordinate efforts to reinforce bilateral trade and investment relations, according to the commerce ministry. During a meeting held at his ministry, Minister of Commerce Pan Sorasak also requested that Ulku Kocaefe, the newly-minted ambassador, advocate for direct flights between the two countries to cash in on the Kingdom’s abundant supply of raw materials for production, the ministry said in a statement. The minister stressed that Cambodia has emerged as a promising investment hub, with continuous improvements in hard infrastructure which he said are conducive to trade as well as integration into regional and global production chains. Sorasak additionally suggested cooperation on halal matters, or areas concerning permissibility under Islamic Law as defined in the religion’s holy book, the Quran. He also highlighted rubber, cassava, rice, mangoes and bananas as predominant crops abundant in Cambodia that are used as raw materials. Kocaefe lauded the Kingdom for the momentum of its economic development, which she said is reflected in the resilience of its economy and relative self-sufficiency underpinned by food surpluses, even amid a confluence of global crises, according to the statement. She expressed willingness to deepen cooperation in trade, investment, education, halal affairs and a range of other fields, and to do her part to encourage direct flights between the two countries. The statement also noted that the third meeting of the Cambodia-Turkey Joint Economic Commission would be held in Phnom Penh at an undisclosed date, adding that the body – which the Turkish foreign ministry says held its first meeting on February 11, 2015 – has been crucial in expanding and strengthening bilateral cooperation in priority areas such as trade, investment, tourism, education, agriculture, health, industry, science and technology. Cambodia Chamber of Commerce (CCC) vice-president Lim Heng told The Post on October 16 that the long-standing diplomatic and trade relations between the two countries received major impetus from Prime Minister Hun Sen’s visit to Turkey in 2018, during which a number of bilateral economic, trade and other cooperation agreements were signed. Heng believes that the inflow of Turkish players to Cambodia in pursuit of investment opportunities would pick up significantly should the Russia-Ukraine conflict de-escalate and Covid-related disruptions ease. “I believe Turkey is a promising source market for investors to Cambodia, as it straddles both Asia and Europe and represents a new market for the Kingdom,” he said, adding that the majority Muslim country could serve as a gateway to nearby countries for Cambodian goods. He shared that, on the occasion of the Cambodian embassy’s opening in Ankara early this year, CCC leaders met with the Turkish business community to promote bilateral trade relations. According to the statement, bilateral trade between the two countries clocked in at “about $90 million” last year, and reached $85 million in January-August 2022. Major items traded are garments, footwear and other textile-related goods; milled rice; rubber; foodstuffs; electrical appliances and vehicles; and minerals.
Source: Phnom Penh Post
• Bangladesh, Indonesia, Pakistan and Viet Nam have united to reduce pollution from the textile sector • $43-million initiative will support businesses to manage risks to workers and eliminate the most toxic chemicals from their production processes • Hazardous chemicals used in textile production pose significant risks to human health and the environment The Governments of Bangladesh, Indonesia, Pakistan and Viet Nam have joined forces to fight chemical pollution today, launching a joint $43-million programme to manage and reduce hazardous chemicals in their textile industries. Employing over 10 million people, the four nations’ textile sectors account for near 15% of global clothing exports. However, the economic benefits of the industry come at a cost, with the sector being one of the world’s major users of Persistent Organic Pollutants (POPs) and per- and polyfluoroalkyl substances (PFAS), a family of approximately 12,000 synthetic chemicals which do not break down and accumulate in the environment, threatening human and ecosystem health. Wet processing factories, where materials are turned into fabrics through bleaching, printing, dyeing, finishing and laundering typically use 0.58 kg of chemical inputs for every 1 kg of fabric produced. These compounds leak into the environment at all phases of the textile lifecycle, from production to use, disposal and recycling. Led by the UN Environment Programme (UNEP), with the financial backing of the Global Environment Facility (GEF) and the support of the Basel & Stockholm Convention Regional Centre South-East Asia and the Natural Resources Defence Council, the Reducing uses and releases of chemicals of concern in the textiles sector programme will provide technical support and tools for SMEs and manufacturers to improve their knowledge and management of hazardous chemicals, guiding them to manage risks to workers, and eventually eliminate the worst chemicals from their production processes. “The textile sector is a major user of toxic ‘forever chemicals’ which pollute local and global ecosystems,” UNEP Chemicals and Waste Programme Officer Eloise Touni said. “While governments have agreed global bans of the worst chemicals through the Stockholm Convention on POPs, value chains still use thousands of hazardous chemicals like PFAS. UNEP is proud to work with governments and front-runner companies to scale up best practices and phase out chemicals of concern across the whole sector”. The five-year programme will bring the four countries together to align public policy on the textile sector with international best practice, including on supply chain transparency, investment for chemical management and eco-innovation, and occupational health and safety, creating the enabling environment needed to phase out PFAS and other chemicals of concern. General Manager of Corporate Sustainability and Chemical Management at Pakistani textile manufacturer Interloop Limited Fauz Ul Azeem said processing mills often lack the awareness and technical expertise needed to manage chemicals according to best practices. “For any production facility, phasing out any chemical from the running inventory is a painful task,” Mr Ul Azeem said. “They need to realign all the running processes after a careful analysis of quality, regulatory and cost impacts.” “This project will help stakeholders to understand upcoming global mandatory requirements and how a pro-active approach can help them avoid a business impact. It will help them learn that considering environmental impacts in their decision making can lead to long term benefits”. Senior Joint Secretary of the Ministry of Climate Change in Pakistan, Syed Mujtaba Hussain said the country was keenly aware of the need to reform the textile industry in order to reduce its environmental impacts and meet Pakistan’s international obligations. “The textile wet processing stage is an environmental ‘hotspot’ in terms of water pollution, ecosystem, human health and climate impacts due to the high use of chemicals and of fossil fuel-derived energy,” Mr Hussain said. “We welcome this project, which will help this important sector to reduce its pollution while accessing new markets for continued growth.”
Source: UNEP
The Royal Government of Cambodia through the Ministry of Commerce (MOC) and Ministry of Labour and Vocational Training (MLVT) has signed a Memorandum of Understanding (MoU) with the Garment Manufacturers Association in Cambodia (GMAC) and the International Labour Organization (ILO) to continue the Better Factories Cambodia (BFC) programme for another five years from January 2023 to December 2027. BFC, which is part of the Better Work programme, is intended to boost economic growth in the country via the clothing, travel goods, and footwear sectors by improving working conditions in factories and other workplaces across the industry to increase productivity and encourage competition since 2001. The new MoU for 2023-2027, which is the eighth agreement regarding the BFC programme, was signed to modify the terms of execution of certain projects by extending the implementation period from 3 to 5 years to safeguard the project’s sustainability and feasibility. “Fully supported by the Royal Government of Cambodia through the MLVT and MOC, the Better Factories Cambodia programme has been running smoothly for the past 21 years,” MLVT minister Ith Samheng was quoted as saying in a Cambodia People’s Party (CPP) press release. Samheng emphasised that “the success of this project in Cambodia has become a model for countries in the region through the creation of the Better Work programme.” “Thanks to the policy of linking trade with labour standards, Cambodia has built more trust among famous brand buyers to add orders for key products like clothing, textiles, footwear, and bags from Cambodia,” said MOC minister Pan Sorasak. “According to the commerce minister, in the first nine months of this year, Cambodia’s exports under the preferential trade system to foreign markets totalled $17,578 million, a year-on-year increase by 24.23 per cent. The exports of garments and textiles rose by 23.16 per cent and travel goods and bags by 36.31 per cent,” added the release.
Source: Fibre 2 Fashion
Vietnam earned $29.014 billion from textile and garment exports in the first nine months of 2022, an increase of 23.8 per cent over the same period of last year, as per preliminary data from customs IT and statistics department, general department of customs, Vietnam’s ministry of finance. However, exports in September 2022 fell 31.9 per cent month on month. According to the latest figures, the US accounted for a major share (about 48 per cent) totalling $13.869 billion in the textile and garment exports of Vietnam during the period under review. Japan and South Korea were the other major destinations with exports of $2.920 billion and $2.522 billion, respectively. Vietnam’s yarn exports, however, decreased by 7.8 per cent to $3.774 billion compared to the same period of last year. Of this, China imported around 46.41 per cent or $1.754 billion worth of yarn, followed by India that imported yarn worth $98.302 million. In volume terms, Vietnam exported 1,204,356 tons of yarn which was 17.7 per cent lower than the exports during the corresponding period of last year. As per data, Vietnam’s exports of textiles and garment have registered a steep fall of 31.9 per cent in September 2022 compared to the previous month. It reflects the severe impact of slow demand in the international markets. In 2021, Vietnam’s textile and garment exports earned $32.750 billion, registering a growth of 9.9 per cent over the exports of $29.809 billion in the previous year, while yarn exports increased by 50.1 per cent to $5.609 billion from $3.736 billion in 2020. For 2022, Vietnam has set a target of $43 billion for its textiles, garments, and yarn exports, according to the Vietnam Textile and Apparel Association (VITAS).
Source: Fibre 2 Fashion
Businesses should look more into using market research tools to identify foreign trade opportunities amid rising challenges, experts have said. Speaking at a conference last week on helping businesses expand export markets, Huỳnh Minh Vũ, deputy director of the HCM City Centre of International Integration Support (CIIS), said Việt Nam’s integration and free trade agreements were providing enormous export opportunities. But many countries were increasingly using non-tax barriers to protect their domestic markets. Global inflation was also changing the behaviour of consumers in Việt Nam’s key markets such as the US and the EU, making them prudent with their spending and buying fewer non-essential products, he said. This was hindering Việt Nam’s key exports such as textile and garment, footwear and wood furniture, he said. “It is important to help businesses research a market with analysing tools to better understand trends, import and export rules, sanitary and phytosanitary measures, and technical barriers to trade. “This will increase their competitiveness and help them take advantage of free trade agreements.” Lê Viết Dũng Linh, a market research expert at the International Trade Centre (ITC) Việt Nam, said that Vietnamese businesses could use ITC’s market research tool for free. Businesses could use the tool to analyse import and export opportunities, market sizes for various products and overseas market trends, he said. They could also keep up to date with sanitary standards and technical barriers in various markets, and can even be notified of the latest developments, he added. Experts at the conference said there were many other good market tools that could provide useful information but businesses needed to be able to use the data effectively. The conference was held by CIIS and the city’s Investment and Trade Promotion Centre.
Source: EIN News
Exporters demand speedy release of tax refunds to improve liquidity Textile garment manufacturers and exporters have expressed disappointment at the performance of Federal Board of Revenue’s (FBR) refund system as it has failed to timely clear the sales tax refund claims. “The liquidity of exporters is stuck due to the irresponsible and uncaring attitude of the authorities,” remarked Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Mubashar Naseer Butt at an emergency meeting of the association on Saturday. Highlighting the financial trouble afflicting the exporters, Butt urged the government to immediately release the tax refund claims of the textile industry. He cited the government’s commitment that the refund payment orders (RPOs) would be issued to the exporters in 24 hours, while refunds would be released within 72 hours of the issuance of RPOs. “Practically, this commitment is not being fulfilled as 72 hours have extended to several weeks,” he pointed out. Butt asked the government to take immediate measures to arrest the slowdown in textile exports as Pakistan’s most valuable sector could collapse. He recalled that the government had earlier created a culture of trust in the business community by paying tax refunds on time, which was appreciable, but “the situation has changed now”. “At present, we are facing financing gaps while the authorities are not ready to give us any reason for the delay, creating trust deficit,” he regretted. Talking to The Express Tribune, Insight Securities’ analyst Ali Asif pointed out that the textile industry was already under pressure in the current uncertain times, where export orders were dwindling due to the global recession. “Delay in sales tax refunds will only make matters worse. Therefore, the government may probably make the sales tax refund payments as the textile sector plays a pivotal role in our economy and accounts for over 60% of exports,” he said. Echoing similar views, textile sector analyst Saad Ziker emphasised that sales tax refunds should be cleared as soon as possible because any delay would dent the liquidity of many companies, which would disturb the flow of working capital. Also, he said, with the release of tax refunds, the companies would be able to purchase raw material and other things for the production of goods. “Release of refunds will definitely be a sigh of relief for all the exporters.”
Source: Tribune
