Industries and commerce department has called a meeting of top officials of 15 departments and agencies on Wednesday to discuss and firm up the new industrial policy before it is put up to the state council of ministers for approval About a month after it released the draft industrial policy for suggestions, the Punjab government has set in motion the process to finalise the fiscal and non-fiscal incentives to be granted to industry under the proposed ‘Punjab Industrial and Business Development-2022’. The industries and commerce department has called a meeting of top officials of 15 departments and agencies on Wednesday to discuss and firm up the new industrial policy before it is put up to the state council of ministers for approval. The fiscal and non-fiscal incentives and reforms proposed in the draft policy, which was unveiled on September 9, relate to exemption from electricity duty, stamp duty and groundwater extraction charges, environmental compliances and digging permissions, rationalisation of NOCs and deemed approvals, employment generation subsidy, change of land use, building bylaws and external development charges. The draft policy proposals mainly relate to housing and urban development, finance, local government, taxation, power, labour, water resources, and revenue departments, Punjab Pollution Control Board and Punjab State Industries and Export Corporation. “Their comments and suggestions have been sought since these incentives and concessions, several of which were also there in the previous policy and need to be continued, have financial implications. In case of any difference in opinion, the council of ministers will have the final say,” a senior government official said, requesting anonymity. Principal secretary, industries and commerce, Dilip Kumar will chair the meeting. Current policy lapsed on Monday The current policy, framed by the previous Congress government in 2017, and incentives available under it lapsed on Monday. The new industrial policy is crucial for the Bhagwant Mann-led Aam Aadmi Party (AAP) government that has not had a smooth start in this sector. The government dropped the 1,000-acre site for the mega textile park in Ludhiana under the Prime Minister Mega Integrated Textile Region and Apparel (PM MITRA) Scheme in July under pressure from some protesting farmer organisations, environmentalists, and non-governmental organisations who objected to setting up the project near Mattewara forest. Later, the government withdrew the proposal for setting up a drug park in Bathinda, just days before the Centre finalised the sites for the ambitious project. The chief minister’s week-long trip to Germany last month, his first to attract investments, was also mired in controversy. Incentives for MSMEs, incubators, startups added to draft policy put into public domain The state government, in the draft policy put into public domain in September for suggestions and comments from the various stakeholders, had added new thrust areas and fiscal incentives for MSMEs, incubators and startups to propel growth and suggested measures for streamlining of procedures for building plan approvals. A hike was also proposed in variable tariff for power frozen at ₹5/KV in the previous policy to ₹5.50 for five years with an annual increase of 3%. The tariff hike has, however, been opposed by several industry associations which termed it “excessive” in the present competitive business environment. They also suggested a slew of changes in the norms for incentives for state goods and services tax reimbursement, employment generation subsidy, expansion and modernisation and setting up units in the border belt. “Several of their suggestions have been incorporated,” said the officer quoted above, refusing to elaborate.
Source: Hindustan Times
The new policy will offer a 25 per cent subsidy on the purchase of land from industrial development authorities or other development authorities in the state for setting up textile units. As part of efforts to attract Rs 10,000 crore investment for the sector and turn Uttar Pradesh into a global textiles hub, the government announced Monday that it would give a 25 per cent subsidy on purchase of land and up to 100 per cent exemption on stamp duty for setting up textile units in the state as part of its new policy. “Making the state as the global textile hub, attracting Rs 10,000 crore investment and generating 5 lakh jobs are the main focus of this new policy,” said Uttar Pradesh Handloom and Textile Industry Minister Rakesh Sachan said. He said the government on Monday issued an official order for the new Textile and Garments Policy-2022. The new policy will offer a 25 per cent subsidy on the purchase of land from industrial development authorities or other development authorities in the state for setting up textile units. The rule would be applicable in all districts except Gautam Budha Nagar, where the subsidy would be 15 per cent. At the same time, the subsidy would be limited to the 10 per cent of the total cost of the project. The subsidy would be given only when the textile unit would start production within five years of purchase of land. Talking about the new policy, Sachan said 1000-acre textile parks would be developed in Lucknow and Hardoi districts under the PM Mitra Park scheme and the land for the project has been identified. “Except Gautam Budh Nagar, textile and garment units set up in all districts would get 100 per cent exemption from stamp duty. In Gautam Budh Nagar, textile units would receive 75 per cent exemption. Meanwhile, textile parks being established under the PM Mitra Park schemes would get 100 per cent exemption from stamp duty but private developers would get 50 per cent exemption on stamp duty,” he added. As a special incentive for the developers of textile parks under the PM Mitra scheme, an subsidy of Rs 2 per kv in the electricity tariff would be provided to them for five years, subject to a maximum of Rs 60 lakh per year per textile park. The power subsidy would be given on the condition that the textile park provide employment to a minimum of 50 people. In order to encourage silk production in the state, the policy also offers 100 per cent stamp duty exemption on setting up silk production and threading units. The policy also offers a capital subsidy, which includes a 25 per cent subsidy for purchase of plant and machinery for textile and garment units. Units being set up in Bundelkhand and Purvanchal region would be able to avail an additional 10 per cent capital subsidy, although the subsidy amount has a maximum cap of Rs 100 crore per unit. The policy also offers financial assistance to investors in development of infrastructure for their units. For units being developed on undeveloped land, the government would provide 50 per cent reimbursement on the cost of development of water pipelines, electricity lines, affluent plants, roads etc upto maximum of Rs 3 crore per unit. The policy offers 25 per cent reimbursement on the cost of establishing research and development facilities up to a maximum of Rs 2.5 crore and another 25 per cent on construction of quarters and hostels for workers and staff up to a maximum of Rs 5 crore. Further, the policy offers a 60 per cent subsidy on the interest from loans taken for plant and machinery, which would be reimbursed for a period of seven years. The upper limit for such reimbursement would be Rs 1.5 crore for units established in the rest of the state, while Rs 75 lakh per year in Gautam Budh Nagar. Then new textile and garment units would also be given 100 per cent exemption on electricity duty for the period of 10 years. In order to achieve the employment targets, the government would offer Rs 3,200 per month to each labourer employed by Mega and Super Mega Garment units for a period of five years in all districts, except Gautam Budh Nagar and Ghaziabad. As part of its efforts to promote exports, the new units exporting their garments would be provided a subsidy of 75per cent for first two years of operation, 50 per cent over the next two years and 25 per cent in fifth year for transportation of their products from the units to the port. For promotion of silk production in the state, policy offers 15 per cent subsidy as margin money for taking loan from the banks, upto maximum of 1 crore. In case of beneficiaries belonging to SC/ST community, this subsidy would be 20 per cent.
Source: Indian Express
A number of western business entities withdrew from Russia over its attack on Ukraine as well as the subsequent economic sanctions imposed against it by the United States and Europe. India's relationship with Russia is a very critical and important one, India's ambassador to Russia Pavan Kapoor said on Monday. "India's relationship with Russia is a very critical and important one. We have had exchanges over the years in all sorts of areas. You are well aware of our heavy industry cooperation in 1950s and 1960s, we have had tremendous cooperation in defence sector," said Kapoor. He was speaking at an event here, which CII in partnership with Invest Punjab had organised. During the session 'Government of India's Heads of Mission Programme', India's ambassadors to the US, Netherlands, Turkey, Mongolia and Togo were also present. Kapoor pointed out that there are plenty of new opportunities for the Indian business in the Russian market, especially against the backdrop of the withdrawal of many western companies from that country. A number of western business entities withdrew from Russia over its attack on Ukraine as well as the subsequent economic sanctions imposed against it by the United States and Europe. "Post start of the conflict, there has been exit of a large number of western companies -- the European and American companies who exited the Russian market, not all because they wanted to as market was valuable to many of these companies...," he said "We got the specific list from the Russians which we have shared with CII and large industry chambers," he said, referring to areas where Indian companies and states like Punjab can benefit from the present situation. On agriculture side, there is great potential on fruit and vegetable concentrates because a lot of operators in these areas have moved out. Food additives and flavourings is another area within the agriculture sector which Punjab can explore he said. For the automotive industry, a lot of spare parts for vehicles are needed. This can be useful. Besides, the cotton industry and Ludhiana being a hub of textile and yarn, this can be useful. "Some aspects of packaging industry... because many of the companies of the west which were doing packaging have exited the market. Also, the jute, textile and rubber industry, for which we have got an excellent base here in Punjab, can be useful," he added. Amit Thapar, Chairman, CII Punjab State Council, talked about how Indian firms can take advantage with the 'China Plus One' strategy, under which global firms are looking at alternative locations beyond China for doing business. He said, "there is a lot of antiChina sentiment, not just in US, but across the world, which I think India has a big potential to cash on". Later, responding to queries, India's ambassador to the US Taranjit Singh Sandhu said there is so much attention being paid on the semiconductors. In the US, there is a special initiative and in India, there is a special initiative, he said. This one plus approach provides huge potential in semiconductors, Sandhu said, adding that the semiconductor industry would require huge skilled manpower and stressed on the need to have this resource. Reliable supply chains are an important and an integral part now, Sandhu added. Kapoor also said, "just to reiterate what Ambassador Taranjit Sandhu has said, the opportunity for 'China plus one' to India is massive".
Source: Economic Times
Official data showed exports to Africa jumped 45.9% in August from a year ago to $4.48 billion. In contrast, India’s overall merchandise exports grew just 10.6% in August to $36.9 billion, and 19.5% in the first five months of this fiscal to $196.4 billion, according to the latest DGCIS data. Even as order flow from key markets like the US and the EU slowed in recent months, Indian exporters have found big support from markets in Africa and Latin America, especially Brazil. Official data showed exports to Africa jumped 45.9% in August from a year ago to $4.48 billion. Between April and August, exports to Africa grew 41.6% to $22.17 billion. Similarly, exports to Latin America surged 53.8% in August to $1.78 billion and 38% to $8.24 billion in the first five months of FY23, thanks primarily to Brazil that made up over a half of the despatches. Exports to Brazil climbed a massive 127% in August to $1.12 billion; until August, the exports stood at $4.66 billion, up 71% from a year before. In contrast, India’s overall merchandise exports grew just 10.6% in August to $36.9 billion, and 19.5% in the first five months of this fiscal to $196.4 billion, according to the latest DGCIS data. The surge in exports to African and Latin American markets has partly made up for the shortfall in demand from larger markets and prevented outbound shipments from slipping into contraction in recent months. India seems to have taken advantage of Covid-hit China’s stunted ability to supply goods to these markets. It also suggests efforts towards geographical diversification of exports are starting to bear some results, exporters told FE. Some exporters said despite the latest slowdown in advanced markets, demand for lowvalue products — which typically have limited value addition — has surged this fiscal, and this is where India is consolidating its position. The data showed growth in exports to most African regions was fairly broad-based. Until August this fiscal, the growth in shipments to the Southern African Customs Union was to the tune of 56.9% and 49.9% to other south African countries. Exports to countries in West Africa, East Africa and North Africa jumped 42.3%, 56.4% and 15.7%, respectively. Only Central Africa was an exception (5% contraction until August) but it is the tiniest market in that continent. Meanwhile, exports to India’s large markets, having grown at a decent pace in the first quarter, have shown signs of a slowdown, more so as base effect turned unfavourable. Exports to the top market US grew just 4.7% in August, against 18.3% in the first five months of FY23. Similarly, despatches to the EU rose 8% in August, slower than 30% until August. Supplies to China and Bangladesh shrank 46.7% and 22.7%, respectively, in August; the despatches to China contracted 35.6% until August but to Bangladesh, they rose by a meagre 8.7%. While exports to the UAE jumped 38% in August and 27.3% in the first five months of this fiscal, they were aided by base effect. Supplies had contracted sharply during FY21, thanks to the pandemic. Of course, with the signing of a free trade agreement, which came into effect from May, India’s exports to the UAE are expected to climb at a steady pace.
Source: Financial Express
Under the new textile policy, the investment process has been made online. Also, to address the issues of investors, the government will set up a help desk. The Uttar Pradesh government is committed to making the state a global textile hub, said Rakesh Sachan, the state minister for micro, small, and medium enterprises (MSMEs), handicrafts, and the textile industry. He added that the government intends to attract ₹10,000 crore in private investment in the textile sector while creating 5 lakh job opportunities. Speaking at a press conference on Monday, Sachan said, “Our government has promulgated the UP Textile and Garmenting Policy of 2022. The textile industry in UP has immense potential as we have a market of 24 crore consumers. Besides, we also have a skilled and trained labour force.” The minister added, “We will organise fashion shows in two cities to promote the export and sale of textile products made in the state. We will also hold handloom, silk, and khadi expo once a year at prominent trade centres of the country. Besides, buyer-seller meets will be held in eastern and western UP twice a year.” Under the new policy, the investment process has been made online. “To address the issues of investors, we will set up a help desk. The policy will also encourage selfemployment opportunities for children of weavers. Also, five private-sector textile and garment parks will be established to increase the income of handloom and power loom weavers. In addition, power looms are to be modernised and entrepreneurs will be motivated to use solar energy,” said Sachan. Other major benefits to be rolled out under the policy include -- 100% exemption of stamp duty against bank guarantee to entrepreneurs who buy plots to set up the production units; state residents will be given preference in purchasing land from UPCIDA, GIDA, Noida, Greater Noida, and other UP authorities; and encouragement to state residents who wish to set up businesses in the field of handloom and textiles. “Students who wish to start their venture after passing the three-year diploma from the Indian Institute of Handloom Technology will be given a 75% grant as per their project cost,” added Sachan.
Source: Hindustan Times
The United Kingdom’s talks with India over signing a draft free trade agreement (FTA) do not have a October 24 (Hindu festival of Diwali) deadline anymore, according to UK trade secretary Kemi Badenoch, who recently said the negotiations are, however, progressing well. "We are close. We're still working on a deal,” she told the state broadcaster. “We've closed a lot of chapters (the sections for the negotiating text). The negotiations are progressing well. But we want to focus on the quality of the deal rather than the speed of the deal. Given the changes that have taken place – not just in government but the mourning period (for the Queen) and so on, it makes sense for us to focus on the deal rather than the day," she was quoted as saying by newswires. The Diwali deadline was announced by former Prime Minister Boris Johnson during his India visit in April. UK home secretary Suella Braverman’s recent comments raising concerns over the prospect of visa concessions for India as part of an FTA were also reportedly perceived as throwing the talks off-track.
Source: Fibre 2 Fashion
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is set to hold a 'Made in Bangladesh week' in November and has sought India's cooperation to enhance the apparel sector. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) -- the largest organisation in the apparel sector in the country -- is set to organise a 'Made in Bangladesh Week' from November 12 to 18. In a press conference on Monday, officials of the BGMEA sought enhanced cooperation with India for global apparel marketing since their factories largely depend on raw materials from the neighbouring country. WHAT IS THE EVENT? The 'Made in Bangladesh week' will be inaugurated by Bangladesh Prime Minister Sheikh Hasina and will highlight the contributions of the Ready-Made Garment (RMG) sector to Bangladesh's economy over the last 40 years. BGMEA president Faruque Hassan said this is the first time the association is holding an event centered on the apparel sector. He added the event is being held even as the country faces a challenging time and the garment sector faces problems due to the ongoing gas crisis and load-shedding. Faruque said the garment industry will make a successful recovery from the pandemic through the event. Adding that efforts are on to increase the stake of Bangladesh in the global RMG market through diversification of both products and markets, Faruque said that they have exported more than $1 billion in Japan, while exports are also increasing in India, South Korea, Australia and Russia. He added that the aim is to ensure Bangladesh is able to grab a 10 percent share of the global RMG market by 2025 from the current global market share of 6.8 per cent. WHY IS INDIA'S COOPERATION NEEDED? Speaking on seeking India's cooperation to enhance the industry, Faruque said, "Bangladesh and India do not compete with each other for RMG exports to the global market, rather we complement each other and want to enhance the cooperation for a win-win situation." He said Bangladesh imports raw materials like cotton and petrochemicals from India for apparel production. According to him, exports from Bangladesh to other countries actually benefitted India as well, since most of the materials for producing apparel were sourced from there.
Source: India Today
Fight against price rise could be 'dogged and prolonged' The headline consumer price index (CPI)-based inflation, which stood at 7.4 per cent in September, might have peaked and could fall going ahead thanks to easing momentum and favourable base effects, according to the State of the Economy report released by the Reserve Bank of India (RBI). It cautioned, however, that the fight against inflation would be dogged and prolonged. The report also said aligning inflation to the 4 per cent target involved achieving two milestones — first, bringing it below the upper end of the tolerance band of 6 per cent, and then lowering it to around the midpoint of the band. “This trajectory (of inflation) will likely be gradual in view of the repeated shocks to which inflation has been subjected by both epidemiological and geopolitical causes, but the easing of inflation will inject confidence into both consumers and businesses, recharge animal spirits and investment and improve the international competitiveness of India’s exports,” said the report, which was authored by the RBI’s staff, including the Deputy Governor in charge of monetary policy Michael Patra. The views expressed in the report are those of the authors and not the RBI’s. The RBI increased the policy repo rate by 50 basis points (bps) to 5.9 per cent in September, taking the total increase in the repo rate since May to 190 bps. The RBI projected that inflation would reduce to 5 per cent during the second quarter of the next financial year, and it would take two years to reach the central bank’s target, which is 4 per cent with a 2 per cent variation on either side. “The fight against inflation will be dogged and prolonged, given the long and variable lags with which monetary policy operates,” the report said. If the RBI succeeds in bringing inflation down to 4 per cent, it will strengthen India’s prospects as one of the fastest growing economies of the world, enjoying a negative inflation differential with the rest of the world, according to the report. “This happy outcome will re-enthuse foreign investors, stabilise markets and secure financial stability on an enduring basis,” it said. The report appeared confident about the country’s growth prospects and observed that broader economic activity has remained resilient. It said economic activity was poised to expand with domestic demand accelerating as contact intensive sectors are experiencing a revival. The RBI report also said robust credit growth and fortified corporate and bank balance sheets provide further strength to the economy. “The pick-up in bank credit growth was led by the term loans category. With economic activity gaining momentum, growth in bank credit for working capital has also caught up in recent months reflecting an optimistic outlook for demand conditions,” the report said. While banks have been prompt in raising the lending rates in tandem with the repo rate, deposit rates have moved up at a slower pace. “Banks have been quicker in adjusting their lending rates vis-à-vis retail deposit rates,” the report said, adding that the median term deposit rate of commercial banks, which reflects the prevailing card rates on fresh deposits, increased by 26 bps during the May September period.
Source: Business Standard
ICRA expects the turnover of home textile exporters to contract further in the quarter ended September 2022, with muted sales in the December quarter as well. Overall, ICRA expects a double-digit contraction in turnover as well as moderation in margins for home textile exporters in FY2023, following all-time high sales and profits in FY2022. After peaking in Q3 FY2022, the turnover of home textile exporters moderated in the quarters ended March 2022 and June 2022 amid a slowdown in demand, said ICRA on Monday. Further, high and increasing raw material and logistic costs resulted in a consistent decline in operating margins since Q2 FY2022. Rising inflationary concerns, the resultant slowdown in consumer discretionary spending, uncertainty on economic growth outlook and cautious buying by retailers to manage inventories are affecting sales in key export markets. ICRA expects the turnover of home textile exporters to contract further in the quarter ended September 2022, with muted sales in the December quarter as well. Overall, ICRA expects a double-digit contraction in turnover as well as moderation in margins for home textile exporters in FY2023, following alltime high sales and profits in FY2022. Jayanta Roy, Senior Vice-President & Group Head, Corporate Sector Ratings, ICRA, said: “As the demand scenario has normalised and inflation is exerting pressure on consumer discretionary spending, ICRA expects home textile companies to report a contraction in turnover in FY2023. In 7M CY2022, US retail sales for furniture and home furnishing stores have grown at a rate of 2% YoY, with a YoY de-growth of ~2% reported for the most recent month, viz. July 2022. Slower-than-expected sales have resulted in higher-than-average inventory levels in recent months (June and July 2022). As a result, ICRA expects retailers to go slow/cautious on buying in the subsequent months to rationalise their inventory levels. This is corroborated by the slow offtake being experienced by domestic exporters, despite healthy order book trends witnessed till a few months back.”
Source: Economic Times
Apple in June this year was reported to be moving some iPad production out of China and shifting it to Vietnam, together with other tech giants such as Google, and Microsoft, making the country a hotter-than-ever destination in the wave of global shift away from Chinese production. Vietnam has received increasing attention from global producers as many of them are searching for alternative supply chains in the face of China’s zero Covid policy. Samsung is one of the flagship tech giants pioneering the wave of moving production to Vietnam. Recently, Samsung has just completed the construction of a US$220 million research and development center in Hanoi, its largest in Southeast Asia. Last year Samsung reported $74.2 billion sales for its Vietnam branch, up 14 percent from 2020. They included exports of $65.5 billion, up 16% Disbursement of foreign direct investment (FDI) in the first nine months of 2022 hit $15.4 billion, up 16.2 % year-on-year and marking a record high, according to a report from the Foreign Investment Agency. Besides technology, textile and garment also witnessed a strong shift away from China to Vietnam as the country continues to be an important link in the global supply chain. Two giant brands in the global footwear industry, Nike and Adidas, have chosen Vietnam as their main production base. To date, Nike has more than 100 suppliers in Vietnam, with 96 factories concentrated in the southern region, according to Vietnam Footwear Manufacturing Industry Report 2022. Last year, Vietnam surpassed Bangladesh to take the world’s second position in terms of textile and garment export market share position, behind China. Despite the difficulties of the post-Covid 19 economy, as of mid-July 2022, garment-textile was one of the four sectors posting the highest export revenue, with a record of over $20 billion, up nearly 20% year-on-year, according to The General Department of Vietnam Customs. Vietnam has approximately 6,000 garment and textile manufacturing companies employing 2.5 million people, and its top export destinations are leading consumer markets – the US, Europe, Japan, and South Korea, according to Vietnam Textile and Apparel Association. As a major player in global supply chain, Vietnam’s textile and garment industry is taking steps to become a more sustainable destination with a target “green textile industry”. Aurora IP, developed by Vietnam’s leading real estate developer Cat Tuong Group, is entering forward-looking initiatives. Converging many outstanding advantages, many investors consider Aurora IP as the most preferable and potential destination in the Nam Dinh province. The development of a textile-specialized industrial park like Aurora IP is one of the important factors contributing to the take-off of the industrial real estate market not only for Nam Dinh province, but also for the whole picture of the country. With a total phase 1 area of about 520 hectares, Aurora IP aims to build a textile-dyeing specialized industrial park with a strategy of green – clean - sustainable development orientation, ensuring to improve the quality of life for the local community as well as a favorable working environment for experts and workers. In addition to land leasing, Aurora IP also provides built-to-suit factory solutions which certainly boost flexibility for the investment plan of secondary investors. Aurora IP closed deals with total investment surpassing $200 million for land lease contracts with two Asian FDI investors to develop hi-tech textile and dyeing projects, proving its attractiveness and unique value as a well-invested industrial park. “For the past years, Vietnam has emerged as a very important supply chain node for the textile and garment industry. With the wave of shifting operations out of China, Aurora IP is considered one of the most ideal destinations for investors in the textile industry,” said Mr. Tran Quoc Viet - Chairman & CEO of Cat Tuong Group. “At Cat Tuong Group, we have been constantly striving to become an investment destination with the best services and utilities and a model industrial park for the sustainable development of the garment and textile industry in particular and the manufacturing industry in Vietnam in general,” the Chairman added.
Source: Globe News Wire
The increase in trade with CPTPP members was largely thanks to the contactless economy that arose from the COVID-19 pandemic Taiwan’s exports to nations belonging to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) expanded 23.8 percent in the first nine months of this year, while imports grew 14.9 percent, warranting Taiwan’s bid to join the freetrade bloc, data from the Directorate-General of Budget, Accounting, and Statistics (DGBAS) showed on Thursday last week. The data was released one year after Taiwan announced its aim to join the CPTPP, which comprises 11 member states: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP’s members account for 13.4 percent of global GDP, at about US$13.5 trillion in total, making it one of the world’s largest free-trade areas, along with the North American Free Trade Agreement, the EU and the Regional Comprehensive Economic Partnership, the DGBAS said. DGBAS Statistics Department head Tsai Yu-tai (蔡鈺泰) said that Taiwan’s increase in trade with CPTPP member states had a lot to do with Taiwan benefitting from the contactless economy created by the COVID-19 pandemic. That benefit is fading, explaining why exports lost momentum last quarter and might decline further this quarter and early next year, Tsai said. Taiwan on Sept. 22 last year filed an official request to join the CPTPP and has made becoming a member its top policy priority, updating its fishing, medicine, investment, patent, trademark and intellectual property regulations to align with the trade body’s standards, the National Development Council has said. CPTPP membership would positively affect local makers of textiles, garments, machinery and machine tools that remain heavily dependent on traditional manufacturing procedures and are sensitive to tariff changes, the Taiwan Institute of Economic Research said. As Taiwan’s textile products are relatively competitive in Asia, joining the CPTPP would boost that advantage, the Taipei-based think tank said. While pursuing CPTPP membership, the government must not forget to boost relations with individual member economies, it said. Exports last year to CPTPP markets soared 33 percent annually to US$94.99 billion, better than an average 9.3 percent increase over the previous five years, DGBAS data showed. Shipments of electronics last year contributed US$41.32 billion, or 43.5 percent, followed by base metals and related products at US$8.31 billion, and information and communications technology products at US$7.8 billion, the DGBAS said. Imports from CPTPP areas last year totaled US$108.61 billion, up 30 percent year-onyear, it said. Electronics, mineral products and machinery were the top three import sectors, it said.
Source: Taipei Times
According to Textile Exchange’s latest report, the industry is producing more than ever before and shifts from conventional materials to lower-impact, sustainable alternatives have declined. During the last few years, news of fashion’s pivot to more eco-friendly practices has repeatedly made headlines. Whether genuinely impactful or an obvious bid to keep consumers interested, these updates on how brands are ‘doing better’ for the planet have seemingly trumped our consciousness of their wrongdoings. Amid all the noise, revelations of greenwashing do little to sway our trend-chasing nature and, retailers continue to churn out product after product. It should come as no surprise that according to the latest report from Textile Exchange, fashion is on track to miss its climate targets and exceed the 1.5 °C pathway laid out in the Paris Accord. This is because while change is happening sector-wide (albeit at a snail’s pace), shifts to lower-impact, sustainable alternatives such as recycled polyester (rPET) or anything regeneratively cultivated have declined as international fibre production remains on the up. In fact – rather alarmingly – not only is it still increasing, but this exhaustive resource use is at the uppermost level it’s ever been, an all-time high of 113 millions tonnes, expected to keep growing to 149 million tonnes by 2030, which Textile Exchange says should act as a ‘major warning sign.’ To put the situation into perspective, synthetic fibres reign as a low-cost option favoured in 64 per cent of production. This is followed not-so-closely by cotton and other plant fibres (28 per cent), man-made cellulosics (6.4 per cent), and animal fibres (1.62 per cent). Within the synthetics category, polyester production has notably increased, from 57.7 million tonnes in 2020 to 60.5 million tonnes in 2021, despite the recently discovered threat to human and environmental health posed by microplastic shedding. And, regardless of the fact that rPET accounts for a significant share of brand sustainability commitments, its market share has barely risen, going from 14.7 to 14.8 per cent since January. As explained by the report, without drastic measures to reduce volumes, substitute conventional textiles with ‘preferred options,’ and promote innovation within the next decade, the industry will fail to slash greenhouse gas emissions at the raw materials stage (known as tier 4 of the supply chain) in line with efforts to limit global warming. ‘We need to rapidly accelerate the replacement of virgin fossil fuel-based materials with lowerimpact alternatives,’ says the non-profit’s strategy director, Beth Jensen. ‘At Textile Exchange, our vision is a world in which these solutions are the accessible default.’ In Jensen’s opinion, the best way to ‘make a change within the eight years we have left’ is to recapture value from existing virgin materials by curbing the output of new fibres and quickly scaling textile recycling technology and the necessary supporting infrastructure. She also suggests the industry shift its priorities from short-term economic growth to long-term resilience, kicking into gear awareness-raising around material substitution. ‘In addition to accelerating the replacement of virgin fossil fuel-based materials with lower impact alternatives, including innovative solutions, we also need to reduce the amount of new materials being extracted and produced overall,’ she adds. ‘It really does require a departure from business as usual.’
Source: Thred
• 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 first estimate for euro area exports of goods to the rest of the world in August 2022 was €231.1 billion, an increase of 24.0 per cent year-on-year (YoY) compared with August 2021 (€186.4 billion). Imports from the rest of the world stood at €282.1 billion, a rise of 53.6 per cent compared with August 2021 (€183.6 billion). As a result, the euro area recorded a €50.9 billion deficit in trade in goods with the rest of the world in August 2022, compared with a surplus of €2.8 billion in August 2021, according to Eurostat, the statistical office of the European Union (EU). Intra-euro area trade rose to €210.5 billion in August 2022, up by 34.8 per cent compared with August 2021. In January to August 2022, euro area exports of goods to the rest of the world rose to €1,859.8 billion (an increase of 18.7 per cent compared with January-August 2021), and imports rose to €2,088.6 billion (an increase of 44.7 per cent compared with JanuaryAugust 2021). As a result, the euro area recorded a deficit of €228.8 billion, compared with a surplus of €124.0 billion in January-August 2021. Intra-euro area trade rose to €1,766.9 billion in January-August 2022, up by 27.2 per cent compared with JanuaryAugust 2021. The first estimate for extra-EU exports of goods in August 2022 was €207.1 billion, up by 24.2 per cent compared with August 2021 (€166.7 billion). Imports from the rest of the world stood at €271.8 billion, up by 56.4 per cent compared with August 2021 (€173.8 billion). As a result, the EU recorded a €64.7 billion deficit in trade in goods with the rest of the world in August 2022, compared with -€7.1 billion in August 2021. Intra-EU trade rose to €329.5 billion in August 2022, +32.3 per cent compared with August 2021. In January to August 2022, extra-EU exports of goods rose to €1,657.3 billion (an increase of 18.1 per cent compared with January-August 2021), and imports rose to €1,966.9 billion (an increase of 49.9 per cent compared with January-August 2021). As a result, the EU recorded a deficit of €309.6 billion, compared with a surplus of €91.8 billion in January-August 2021. Intra-EU trade rose to €2,740.4 billion in JanuaryAugust 2022, +25.1 per cent compared with January-August 2021. In August 2022, compared with August 2021, all member states registered large increases in extra-EU exports except Cyprus (-22.9 per cent). The highest increases were registered in Slovenia (+98.1 per cent) and Malta (+85.4 per cent), said Eurostat. With regard to the extra-EU imports, all member states registered large increases except Latvia (-21.7 per cent), Estonia (-16.4 per cent), and Luxembourg (-13.6 per cent). The highest increases were observed in Croatia (+149.7 per cent), Portugal (+93.5 per cent), and Malta (+90.2 per cent).
Source: Fibre 2 Fashion
Albania’s textile and footwear industry is increasingly facing a series of challenges including energy costs and inflation combined with competition from Asia which could jeopardise some 150,000 jobs. The country’s textile industry employs over 150,000 people, with the vast majority of workers being female, across 1,034 companies. But industry representatives who gathered at the International Textile Fair in Tirana at the weekend said the situation is deteriorating due to energy prices, the devaluation of the euro in the local market, labour shortages, and increased competition from Asia. Edvin Prençe, the chairman of the ProExport Albania association, said that the situation is unclear and that concrete measures must be taken to improve the state of the sector “The clothing and footwear manufacturing sector is already facing many problems, such as electricity, since the price has already been fixed at 18.8 lek and we still don’t know what the situation will be like after January 1, 2023.” Prices could increase after the end of the year, depending on how much the government has to subsidise businesses and the current market rate. He asserted that another problem is related to significant fluctuations in the exchange rate, where the euro is falling and the Lek is constantly strengthening. “For businesses that are exporters, such as our sector, which accounts for more than 40% of ‘Made in Albania’ products, it brings a decrease in profits and liquidity in the sector’s businesses. Thousands of euros are lost because of the exchange rate alone,” he told Monitor. In terms of competition from abroad, Asian companies have lower labour costs which mean they can undercut Albanian prices. “One of the main challenges is facing tough and unfair competition from Asian countries, making local producers unequal. In many countries, labour is cheaper, and support and fiscal policies are fairer and cheaper. And Albanian consumers often choose to buy products from third countries and not those produced in our countries,” said another stakeholder, Agim Shahini, the president of the Kosovar Alliance of Businesses. Prençe added that in Albania, there are 25,000 vacancies in the sector that they cannot fill with qualified or even trainee workers. This is due to migration but also a lack of people willing to work in factories or for minimum wages.
Source: EURACTIV
