INTERNATIONAL
Textile Raw Material Price 2016-06-14
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
943.57 |
USD/Ton |
0% |
6/15/2016 |
|
VSF |
2050.98 |
USD/Ton |
0% |
6/15/2016 |
|
ASF |
1911.42 |
USD/Ton |
0% |
6/15/2016 |
|
Polyester POY |
983.77 |
USD/Ton |
0% |
6/15/2016 |
|
Nylon FDY |
2214.82 |
USD/Ton |
0% |
6/15/2016 |
|
40D Spandex |
4323.45 |
USD/Ton |
0% |
6/15/2016 |
|
Nylon DTY |
1111.20 |
USD/Ton |
0% |
6/15/2016 |
|
Viscose Long Filament |
2442.37 |
USD/Ton |
0% |
6/15/2016 |
|
Polyester DTY |
5656.89 |
USD/Ton |
0% |
6/15/2016 |
|
Nylon POY |
1228.77 |
USD/Ton |
0% |
6/15/2016 |
|
Acrylic Top 3D |
2055.54 |
USD/Ton |
0.37% |
6/15/2016 |
|
Polyester FDY |
2085.88 |
USD/Ton |
0% |
6/15/2016 |
|
30S Spun Rayon Yarn |
2745.77 |
USD/Ton |
0% |
6/15/2016 |
|
32S Polyester Yarn |
1668.70 |
USD/Ton |
0% |
6/15/2016 |
|
45S T/C Yarn |
2427.20 |
USD/Ton |
0% |
6/15/2016 |
|
45S Polyester Yarn |
1805.23 |
USD/Ton |
0% |
6/15/2016 |
|
T/C Yarn 65/35 32S |
2123.80 |
USD/Ton |
0% |
6/15/2016 |
|
40S Rayon Yarn |
2912.64 |
USD/Ton |
0% |
6/15/2016 |
|
T/R Yarn 65/35 32S |
2199.65 |
USD/Ton |
0% |
6/15/2016 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
6/15/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
6/15/2016 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
6/15/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
6/15/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
6/15/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15170 USD dtd. 15/6/2016).
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
In the wake of complaints by domestic synthetic and rayon or man-made fabric (MMF) producers against import of undervalued Chinese fabrics, the government has initiated an investigation under the supervision of Directorate General of Anti-Dumping and Allied Duties, according to a report in The Times of India. "The government has started an anti-subsidy investigation for MMF fabric from China, which has been flagged by the industry," Anil Rajvanshi Chairman of Synthetic & Rayon Textile Export Promotion Council (SRTEPC) said in Surat recently at a roadshow for an upcoming global buyer-seller meet for MMF and textiles. "We have filed an anti-subsidy application. Representatives from the government will visit companies in Surat to get the cost data of the production. Thus, we expect that the Chinese fabric imports will attract around 25 per cent anti-subsidy duty," Rajvanshi said. This country specific duty, also known as a countervailing duty, on imports is imposed to offset subsidies provided by other nations and is intended to make prices of domestic products competitive. Importing countries also have other options, such as imposing anti-dumping duty, to make domestic prices at par. The import of Chinese fabrics is around 7 per cent of the total volume of fabrics manufactured in India, Rajvanshi said, alleging that MMF is imported by undervaluing the prices in the range of Rs 6 to Rs 8 per metre. The SRTEPC chairman said they had information around 200 containers of fabrics were being imported from China every day. “Chinese exporters were taking the benefit of under-invoicing to destabilize Indian manufacturers." In recent months MMF manufacturers in Surat were facing the brunt of import of undervalued fabrics from China. Around half of power loom weaving machines have been shut down, rendering over two lakh workers jobless. The production of polyester fabric has reduced from 4 crore metre per day to around 1.80 crore metre per day.
SOURCE: Fibre2fashion
Lenders may face more stress from textile and hospitality industries as these sectors face the risk of a prolonged slump with sluggish global economy lowering demand for Indian fabrics in international markets and slowing inward tourist flows to India. The delinquency risk for both the sector has risen putting banks on high alert, said SMERA Ratings, which rates small enterprises. Textile sector, which carries Rs 203900 crore of bank loans, is currently reeling under high stress due to lowering of demand along with inconsistent profitability and below average returns. Apparel exporters are especially facing stiff completion from Bangladesh and Vietnam. Current situation of capacity under utilisation and stretched working capital cycle has further added to the stress, SMERA said in a report. The rating company warned that debt protection metrics would not improve drastically as sector will continue to have low return on capital employed and less than unity asset turnover ratio. Promoters in infrastructure, sugar, steel and gems & jewellery sectors are also strained on lower demand and under utilisation of capacity. But high stress on these sectors may ease a bit with better monsoon and more-than-expected 7.9 per cent GDP growth. SMERA said infrastructure and especially power generation would see stress getting moderated with hefty budget allocations.
As on March 2016, gross NPA levels in banks crossed 11 per cent of advances. Considering restructured accounts, which are increasing substantially, the stressed assets amount to over 18 per cent of advances. The gloomy global economic outlook is expected to slow foreign tourist inflow resulting in higher dependency on a relatively price sensitive domestic tourists. Occupancy rate have remained below 55 per cent for the sector impacting the margins and debt repaying capacity, SMERA said, adding: "The current stress level of the industry continues to be high on account of low net cash accruals." With an average debt equity ratio of 1.37 times in FY2015 and an interest coverage ratio under one, the decline in profitability indicators has substantially increased the delinquency risk in the hospitality sector, SMERA added.
SOURCE: The Economic Times
India’s merchandise exports fell for an eighteenth continuous month in May. However, the rate of fall was the lowest since November 2014, when outbound trade had last grown. Exports contracted 0.79 per cent to $22.17 billion in May, against $22.34 bn in May 2015, government data showed on Wednesday. The rate of fall has decreased for the past six months, barring April when it spiked to 6.74 per cent. Cumulative exports for the first two months of 2016-2017 (April-May) were $42.7 bn as compared to $44.4 bn for the comparable period a year before. Beside a global slowing, there is the decline in commodity prices and sluggishness in the Chinese economy. During the 2008-09 global financial meltdown, the decline was for nine months in a row.
Merchandise exports fall for 18th month Total exports were $261 bn in 2015-16, a 15.8 per cent fall from the $310 bn of 2014-15. The government had targeted $300 bn initially but then revised this to $260-270 bn. May also saw imports declining, by 13.2 per cent to $28.4 bn as compared to the year-ago period when it was $32.7 bn. Cumulative imports in April-May were $53.8 bn, from $65.8 bn the previous year. Import of crude oil continued its long decline, falling by 30.5 per cent in May to $5.9 bn as compared to $8.5 bn a year before. That brought down the total trade deficit to $6.27 bn for these two months; it was $10.4 bn in the comparative period last year. Gold imports continued to fall by a large margin for a fourth month, going down by 39.1 per cent to $1.47 bn as compared to the $2.4 bn of imports a year before. Prices of the yellow metal had fallen by 60.5 per cent in April. Non-oil, non-gold imports, taken as a proxy for indicator of industrial demand in an economy, declined by 3.5 per cent to $21.4 bn in May, from $21.8 bn a year before. It had fallen by 17.6 per cent in April. Major export products continued to shrink,l with petroleum products falling by 15.5 per cent, followed by drugs and pharmaceuticals (minus 14.2 per cent). However, export of engineering goods staged a comeback, rising 2.2 per cent after a long period. “Exports are set to take off from here on and we can look for double-digit growth from October onwards,” said S C Ralhans, president of the Federation of Indian Export Organisations. Also, gems and jewellery exports increased by 24.3 per cent, after an increase of 17.2 per cent the previous month. The one per cent excise duty imposed had seen manufacturers shutting shop in April.
SOURCE: The Business Standard
Sunil Bharti Mittal, Bharti Enterprises' founder and chairman, has been elected Chairman of the International Chamber of Commerce (ICC), taking over from Terry McGraw, Chairman Emeritus of S&P Global. McGraw has now become ICC's honorary chairman. The International Chamber of Commerce is the world's largest business organisation with over 6.5 million members in over 130 countries and Mittal will be it's 51st chairman. Mittal, who has served on the Prime Minister of India's Council on Trade and Industry, has become the third Indian Chairman of the world business organisation in its near-100 year history. "At a time when the global economy is facing unprecedented challenges, I am committed to ensuring ICC plays a central role as the voice of business in shaping policies to support inclusive growth," Mittal said. He added that there is an urgent need to restore trade and investment as a driver of growth and jobs, particularly in developing economies affected by the slowdown in raw materials and agricultural commodities markets. "This will be a central focus for my tenure as Chairman of the world business organization." Bharti Enterprises has interests in telecom, insurance, real estate, hospitality, agri and food, besides other ventures. Bharti AirtelBSE -1.78 %, the group's flagship company, is world's third largest telecommunications company with over 350 million customers across India, South Asia and Africa. John Denton, Partner and CEO of Corrs Chambers Westgarth, has been elected to take over from Mittal as the organisation's First Vice-Chair.
SOURCE: The Economic Times
Commerce secretary Rita Teaotia today said that India is not allergic to goods coming in from China as long as the trade is legitimate. "We do not have any problems with goods from China being imported as these are required as intermediates to manufacturing... legitimate trade has to move," she said while launching a report on India-Myanmar trade released by external affairs ministry's think tank, Research and Information System for Developing Countries (RIS). Noting that there is sometimes angst when India is compared with China, she said: "India is not China...We work on strategy of partnership... not gain at the cost of other countries." Adding that India's approach may look timid, but it can't choose to replicate what others do. "We want our neighbors to prosper," she said and added that a road-map needs to be prepared to allow more goods through land not just from Myanmar but also from other neighbouring countries including the entire ASEAN region.
SOURCE: The Economic Times
Direct investments by Indian firms overseas increased by 48.2 per cent year-on-year to $2.69 billion in May, according to the RBI data. They had invested $1.82 billion in their overseas ventures in same month of last year. However, the overseas direct investment in May was much lower than $4.11 billion in April this year. The investments by the Indian companies were a mix of issuance of guarantees ($1.95 billion), loans (365.93 million) and equity ($383.71 million). The prominent investors overseas during the month include Videocon Oil Ventures $204.08 million, Videocon Industries $145 million and Larsen & Toubro Ltd $144.48 million. Among other major investors are JSW SteelBSE 0.19 % $81.50 million and Bombay Burma Trading Corporation $66.3 million.
SOURCE: The Economic Times
Two of India's main trade and industry bodies have urged the government to take pro-active steps to boost supplies given that India's annual rate of inflation, based on monthly wholesale price index (WPI), stood at 0.79 per cent for May 2016 (over May 2015). Apex industry body Assocham said that rise in WPI is in line with industry's expectations as it got some upward movements through increase in prices of crude oil globally and policy measures introduced by the RBI in its first bi-monthly policy in April 2016. “However, policymakers need to check and address through supply side responses the continuous rise in prices of commodities like pulses, food articles, cereals, wheat and other items of national interest that have been soaring continuously,” said D.S. Rawat, secretary general of Assocham. “Though WPI figures may give some relief to manufacturers and producers since earlier it was hampering their pricing power, profitability and limiting their potential to increase capital expenditure,” said Rawat. The index for manufactured products (weight 64.97 per cent) for May, 2016 rose by 0.5 per cent to 155.7 from 155.0 for the previous month. The index for textiles sub-group rose by 0.5 per cent to 140.6 from 139.9 for the previous month due to higher price of jute sacking bag (3 per cent), gunny and hessian cloth (2 per cent) and cotton yarn and cotton fabric (1 per cent each). “The declining trend in index of industrial production (IIP) and rising WPI may have negative impact on country's economy in the long run since it states that prices may be increased due to a cut in supply which should not be an issue as India has been leading various growth campaigns to attract investments and boost manufacturing,” said the chamber's secretary general.
Assocham suggested that the government should adopt pro-active steps to check the supply situation in the country and help industry to maintain its growth momentum. Ficci has also expressed concern at the rising food prices. Commenting on the inflation numbers released by the Office of the Economic Adviser, Ministry of Commerce and Industry, Ficci President Harshavardhan Neotia said, “Latest numbers report prices edging up on the back of elevated food prices. Upward pressure in prices is noted in the case of fruits and vegetables and protein rich items. This clearly calls for a more proactive management from the supply side. Several steps have been taken by the government to augment supplies and improve distribution of such items. We hope that the situation would be managed well and that inflation will remain within RBI's indicative trajectory.”
SOURCE: Fibre2fashion
A gauge of expected swings in India’s rupee capped its biggest two-day jump since August amid signs demand for local assets is waning as anxiety about global central bank meetings and a potential British exit from the European Union grips investors. Foreign funds cut holdings of rupee-denominated bonds by 3.01 billion rupees ($44.8 million) on Tuesday, taking outflows for June to 20.7 billion rupees, data compiled by Bloomberg show. Their purchases of Indian stocks slowed to $244.3 million last week, from $441.1 million in the previous five days. Growing support for Britain to leave the EU ahead of a June 23 vote is spurring risk aversion, with investors also watching the U.S. Federal Reserve’s policy decision on Wednesday, followed by Thursday’s reviews in Japan and the U.K. “There’s just too much uncertainty around global events,” said Navin Raghuvanshi, a Mumbai-based foreign-exchange trader at DCB Bank Ltd. “Even foreign investors have been as good as net sellers in local markets.” The rupee’s one-month implied volatility, used to price options, climbed 37 basis points to 6.87 percent in Mumbai, according to data compiled by Bloomberg. That took its two-day advance to 107 basis points, the most in such a period since last August. The currency rose 0.2 percent to 67.1525 a dollar in the spot market, halting a four-day, 0.9 percent slide.
Carry Trade
Even so, when adjusted for price swings, the rupee has been the best-performing carry trade in the past year after the Indonesian rupiah among 23 emerging markets tracked by Bloomberg, and that’s a reason some investors including AllianceBernstein LP are sticking with it. “In Asia, there aren’t many currencies that offer decent carry, so we’re content to accept the volatility of the rupee for the carry on offer,” Brad Gibson, a Hong Kong-based portfolio manager for AllianceBernstein, which oversees $487 billion globally, said in an interview. “While we are not strongly positive on the bond markets at these levels, the currency in terms of the carry is probably one of the safest in emerging markets.”
Indian sovereign bonds were steady, with the yield on notes due January 2026 at 7.52 percent, according to prices from the central bank’s trading system. It climbed to 7.53 percent on Monday, the highest close since March 16, before a report showed consumer inflation accelerated to a 21-month high of 5.76 percent in May. Three-month borrowing costs for India’s government slumped to the lowest level since 2010 at Wednesday’s auction of treasury bills amid central bank measures to improve cash supply in the financial system.
SOURCE: The Bloomberg
To scale up trade with Myanmar, the commerce department is pushing for greater trade through the shared land border between the two countries. Launching a study on the matter by policy think tank RIS, and the department, Commerce Secretary Rita Teaotia on Wednesday said greater border trade will positively impact the economy of the North Eastern region, as well as people to people contact. The ministry is keen to tap into the growth story of the South East Asian nation, which, according to the International Monetary Fund (IMF), is expected to witness 8.6 per cent gross domestic product (GDP) growth in 2016, making it the fastest growing economy. India's trade with Myanmar reached over $2 billion in 2014, with exports from India accounting for more than half of the trade. Pharmaceuticals were the highest exported item, followed by agricultural residues like oil cakes and heavy machinery. Last year, sugar and sugar confectioneries' exports have grown the highest.
India currently offers Myanmar duty-free trade along 96.4 per cent of all tariff lines under the Duty Free Tariff Preference scheme and the free trade agreement India has with the Asean region, of which Myanmar is a part. High levels of security infrastructure in the North East, poor infrastructure, among other factors was cited by the department officials as responsible for impeding the growth of trade with neighboring Myanmar. "India and Myanmar need to work together on a road map to facilitate trade not just between the two but among other ASEAN nations with a view to boosting growth." Teaotia said.
SOURCE: The Business Standard
Arvind Mehta, Additional Secretary, Ministry of Commerce and Industry and Lead Negotiator of the Government of India is now at a meeting of the India Trade Alliance at Stamford Plaza Hotel in Auckland. He said that multilateral relations are better than bilateral negotiations, citing the World Trade Organisation as an example. He said agricultural subsidy was a thorny issue and that it became a bone of contention for the Doha Round of WTO talks. “There was nothing offered in return for agricultural subsidy,” he said. He described the recently signed the Trans-Pacific Partnership Agreement’ as a pact outside WTO. “India-New Zealand relations are important but we could perhaps consider a Regional Comprehensive Economic Partnership and then top it with FTA. You need to see the India perspective,” he said. Mr Mehta said that pacts like TPPA were done outside the WTO and had only marginal adjustments. He warned that if New Zealand insisted on a full-scale FTA, it would then an endless case of negotiations. “India can give a generous offer,” he said but stopped short of elaborating it. India can immediately offer free trade in service sector, he added. “In the Goods sector, India would get nothing especially in the context of TPPA to which New Zealand is a signatory. India will gain nothing by signing an Agreement. New Zealand has nothing to offer in the Goods sector,” Mr Mehta said. India will agree to a Model of Moderate Tariff which is ‘TPPA Minus’ Model, he added. The tone of his talks over the last three days has been such that tariff reduction in the name of FTA would not be in the interest of India. He is likely to take a tough stand when he meets his New Zealand counterparts tomorrow.
Prime Minister John Key has already said that New Zealand would insist on a ‘Complete FTA Package’ and not a selective agreement. The situation as we see is stalemate and as we have mentioned earlier, an FTA between New Zealand and India is as distant as it was before negotiations began nine years. And like everything else, we will be happy to be proved wrong. Indian Newslink will publish a detailed report and analysis in its next issue dated July 1, 2016.
SOURCE: The India Newslink
Accompanied by a high-level official and a business delegation, Thailand’s Prime Minister Gen Prayut Chan-o-cha will be arriving in New Delhi on Thursday on a three-day state visit. Economic cooperation will be the main component of the bilateral discussions between the two countries. Briefing mediapersons ahead of the visit, Preeti Saran, secretary (east), external affairs ministry, said, “This is the first visit of Thai Prime Minister Gen Prayut Chan-o-cha to India. “The visit is very important as it comes at a time when the two countries will be celebrating the 70th anniversary of bilateral relations. Defence, space, security and people-to-people contact are very important for both sides.” According to Saran, the Thai PM will be accompanied by a high-level delegation comprising the deputy prime minister, five senior ministers and a 46-member business delegation. “The two sides will also deliberate on stepping up cooperation in trade and tourism sector. “India is keen on enhancing connectivity between the two countries and promoting the Buddhist tourist circuits,” she added.
Responding to a question, Saran said the India-Thai Free Trade Agreement will be discussed. “Both countries have had almost 29 rounds of talks for the Comprehensive Economic Cooperation Agreement.” The volume of current annual bilateral trade between the two countries is nearly $8 billion and both sides are keen to expand it further. On Friday, the visiting leader will be meeting Prime Minister Narendra Modi for bilateral as well as delegation-level talks, aiming to enhance cooperation in various areas, including trade and economy, investments, infrastructure, banking, security, culture and education. The Thai leader, together with his wife Naraporn, is also scheduled to meet with Vice-President Hamid Ansari later in the day, followed by a meeting with external affairs minister Sushma Swaraj. On the same day, PM Modi and the visiting leader will address industry captains at a joint industry chamber meeting organised by Ficci, Assocham and CII. The Thai PM will leave for Bodh Gaya on a pilgrimage before leaving for Bangkok.
SOURCE: The Financial Express
Government today sought comments from stakeholders on issues arising out of the changes in the tax treaty with Mauritius. Earlier this week, the government had constituted a working group headed by a Joint Secretary-level officer to examine the "consequential issues" post amendments to the India-Mauritius Double Taxation Avoidance Convention. "Stakeholders may send their comments and suggestion on the relevant issues electronically to dirfttr4-rev@gov.in by July 4, 2016, for consideration by the working group," a finance ministry statement said. Besides Joint Secretary (FT&TR-II), CBDT, the working group would comprise of departmental officers and representatives of Sebi, custodians, brokerage firms and fund managers. The Working Group will submit its report to the CBDT within three months after examining the relevant issues. The government last month amended the 33-year old tax treaty. With this companies routing funds into India through the tropical island after March 31, 2017, will have to pay short-term capital gains tax at half the rate prevailing during the two-year transition period. The levy is currently at 15 per cent. The full rate will kick in from April 1, 2019.
Between 2000 and 2015, a third of all foreign-direct investment into India, around USD 94 billion, came via Mauritius, according to the government data. Foreign investors have historically bought shares in Indian companies via entities in countries like Mauritius and Singapore, with which India has a treaty to avoid double taxation. These countries either have no tax on capital gains or have rates lower than what they are in India. It was expected that the changes will dampen investments into India as taxes would lower net returns for investors. The government has now formed a group to study consequences arising out of the amendment. New Delhi had since 2006 engaged with Mauritius to amend the treaty to check misuse by some investors who use a double-taxation avoidance pact between the two nations to escape taxes. The treaty amendment would trigger a similar amendment in India's tax treaty with Singapore. Mauritius and Singapore accounted for USD 17 billion of the total USD 29.4 billion India received in FDI between April and December 2015.
SOURCE: The Economic Times
Scouting for new avenues for Indian businesses, President Pranab Mukherjee today said that a considerable amount of the capital generated in India seeks new destinations outside the country, including in resource-rich Africa. Recalling ancient trade and economic linkages between India and Africa, the President said business and economic activity has always been a major driver of India's close and friendly ties with Africa. Addressing the Business Forum of local businessmen, Mukherjee said Cote d'Ivoire is expected to grow at a rate of 9.6 per cent which makes it a prime destination for investment in Africa and second fastest growing economy after Ethiopia. "For Ivorian businessmen, the opportunities offered by India are not new. India has recorded a steady growth at the rate of 7.6 per cent each year - for over a decade now. The comprehensive reforms introduced in key areas of our economy have enhanced the ease of doing business in India," he said. The President said country's foreign investment regime has been liberalised through simplified procedures and the removal of several restricting provisions. Mukherjee said In 2014, India recorded 32 per cent growth in investments and late it emerged as emerged as one of the biggest global investment destinations. "India as economy has grown and matured; a considerable amount of the capital generated in India seeks new destinations outside the country, including in Africa. Indian investors are aware of the potential of Cote d'Ivoire; with its large land mass, rich natural resources and youthful demography, as an important investment destination," he said. Mukherjee said India looks forward to partnering Cote d'Ivoire - particularly in the agricultural processing sector and the exploration and mining of minerals. He asked businessmen of Cote d'Ivoire to take advantage of the Indian Government's initiatives such as Make in India. "India is the 5th largest trading partner of Ivory Coast - and yet, we continue to see that despite the positive environment of growth in our two countries, our bilateral trade has remained at modest levels. It has not grown beyond USD 840 million, which is far below the true potential that we can and must fully realise," he said.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.52 per barrel (bbl) on 15.06.2016. This was lower than the price of US$ 46.75 per bbl on previous publishing day of 14.06.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3124.60 per bbl on 15.06.2016 as compared to Rs. 3139.67 per bbl on 14.06.2016. Rupee closed weaker at Rs. 67.16 per US$ on 15.06.2016 as against Rs 67.15 per US$ on 14.06.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 15, 2016 (Previous trading day i.e. 14.06.2016) |
Pricing Fortnight for 16.06.2016 (28 May, 2016 to June 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.52 (46.75) |
47.61 |
|
(Rs/bbl |
3124.60 (3139.67) |
3191.77 |
|
|
Exchange Rate |
(Rs/$) |
67.16 (67.15) |
67.04 |
SOURCE: PIB
Many insiders expressed their concern that it's difficult for garment and textile industry to meet the target of US$31 billion this year due to falling export prices and challenges in finding new export contracts. Garment and textile industry exports in the first five months of this year rose 6.1 per cent to US$8.6 billion, according to Vietnamese trade ministry. The rise was lower than the targeted growth of 10 per cent this year. In May, the industry earned $1.75 billion, up only 3.8 per cent. The United States was the largest export market of the industry, with $3.4 billion, up 6 per cent. The European Union, Japan and South Korea followed with $936 million, $845.17 million and $677.2 million, respectively. Industry insiders are concerned with meeting the industry's export target of $31 billion this year due to falling export prices and difficulties in finding new export contracts, especially for shirts, pants and jackets. Than Duc Viet, deputy general director of the Garment No.10 Corporation, said this year's business results for local textile and garment exporters, especially among small- and medium-sized firms, were not as good as expected due to rising input costs and falling demand. The chairman of the Vietnam Textile and Apparel Association (Vitas), Vu Duc Giang, said some traditional customers of Vietnam's garment exporters were moving their orders to Laos and Myanmar, which have preferential tax rates for exports to the United States and European Union.
Free trade pact
Currently, the tax imposed on Vietnam's textile and garment exports to the United States averages 17 per cent, while the rate to the European Union is nearly 10 per cent. The taxes are expected to drop to zero by mid-2018 when the Trans-Pacific Partner-ship and Vietnam-EU Free Trade Agreement take effect. Giang said domestic textile and garment exporters will therefore have to compete fiercely against producers from Laos, Myanmar, Cambodia and Bangladesh. Vitas said export growth rates among these producers were rising faster than in Vietnam.
SOURCE: The Nation Multimedia
Minister for Commerce Khurram Dastigir Khan said the country’s textile exports had witnessed the negative growth of 7.72 percent during the first 10 months of the current fiscal year on Wednesday. According to details, he said that the exports during July-April (2015-16) were recorded at $10.395 billion compared to $ 11.265 billion in last financial year. He was responding to a calling attention notice moved by Muhammad Atteeq Shaikh in Senate. He said the textile products that contributed to the negative growth of textile trade, included cotton yarn, exports of which dropped by 32 percent from $1.590 billion last year to $1.081 billion during the current fiscal year. He said the cotton production had decreased this year due to the absence of timely rains. The country had exported cotton this year due to a dearth in the production. The cotton clothes export, he said, had increased by 4 percent; however, the decline was reported in the value of cotton products. The quantity of cotton exports had increased by 10 per cent but its value had decreased, he added.
SOURCE: The Daily Pakistan
Riyadh–Saudi Arabia approved the World Trade Organization (WTO) Trade Facilitation Agreement. Minister of Trade and Investment Majed al-Qasabi issued a statement saying that the cabinet confirmed the WTO Facilitation Agreement and thus becoming the second Arab state that approves of a multilateral agreement. Qasabi confirmed that Facilitation Agreement is one of the most important agreements of the multilateral trade system of the WTO and the first to be added after 18 years of the establishment of WTO. Minister Qasabi explained that this agreement is important for ending the negotiation freeze in Doha Round. He went on to say that the agreement aims to reduce procedures and paper work required for import and export. Deputy Minister for Foreign Trade and Head of Saudi Exports Development Authority Ahmed al-Hakbani said that studies showed that Trade Facilitation Agreement helps decrease international trade expenses by 1%, and increase the international income by 40 billion dollars mostly in developing countries.
SOURCE: The Alawasat
Uruguayan Foreign Minister Rodolfo Nin Novoa confirmed Tuesday his country's interest in sealing a free-trade agreement (FTA) with China, either bilaterally or as part of the Mercosur bloc. "We would be going in all together as Mercosur (Common Market of the South)," said Nin Novoa at a press conference after returning from an official visit to China. Nin Novoa also mentioned the meeting of the Uruguay-China Joint Commission and exchanges between foreign affairs and agriculture officials to work on joint sanitary protocols, as well as the upcoming visit to China by President Tabare Vazquez in October. These elements "speak of the real interest in improving bilateral relations. An FTA would thus benefit both parties," he noted. "Chinese authorities have been very satisfied with the quality of Uruguayan goods and our soil management technique, while being particularly impressed with our livestock traceability system," he said of the highlights of his trip. "China is Uruguay's main trading partner and we are keen to overcome any difficulties that may present themselves in the field of bilateral trade," he said.
SOURCE: The Xinhua Net
