|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1001.55 |
USD/Ton |
-0.15% |
6/20/2016 |
|
VSF |
2051.66 |
USD/Ton |
0% |
6/20/2016 |
|
ASF |
1912.05 |
USD/Ton |
0% |
6/20/2016 |
|
Polyester POY |
978.79 |
USD/Ton |
-0.54% |
6/20/2016 |
|
Nylon FDY |
2215.55 |
USD/Ton |
0% |
6/20/2016 |
|
40D Spandex |
4324.88 |
USD/Ton |
0% |
6/20/2016 |
|
Nylon DTY |
2428.00 |
USD/Ton |
-0.62% |
6/20/2016 |
|
Viscose Long Filament |
5658.76 |
USD/Ton |
0% |
6/20/2016 |
|
Polyester DTY |
1229.18 |
USD/Ton |
0% |
6/20/2016 |
|
Nylon POY |
2056.21 |
USD/Ton |
0% |
6/20/2016 |
|
Acrylic Top 3D |
2086.56 |
USD/Ton |
0% |
6/20/2016 |
|
Polyester FDY |
1118.40 |
USD/Ton |
-0.07% |
6/20/2016 |
|
30S Spun Rayon Yarn |
2746.68 |
USD/Ton |
0% |
6/20/2016 |
|
32S Polyester Yarn |
1669.25 |
USD/Ton |
0% |
6/20/2016 |
|
45S T/C Yarn |
2428.00 |
USD/Ton |
0% |
6/20/2016 |
|
45S Polyester Yarn |
1805.83 |
USD/Ton |
0% |
6/20/2016 |
|
T/C Yarn 65/35 32S |
2124.50 |
USD/Ton |
0% |
6/20/2016 |
|
40S Rayon Yarn |
2913.60 |
USD/Ton |
0% |
6/20/2016 |
|
T/R Yarn 65/35 32S |
2200.38 |
USD/Ton |
0% |
6/20/2016 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
-0.11% |
6/20/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
6/20/2016 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
6/20/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
6/20/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15175 USD dtd. 20/06/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
As cotton prices shoot up to Rs. 5,800 a quintal, textile industry is reeling under severe pressure and facing scarcity of raw material. With a not-so-favourable export market and the increasing cost of operations, the industry has decided to declare a two-day production holiday every week in protest. The industry has alleged large-scale hoarding by the multinational companies with deep pockets leading to the situation. The industry demands increase of export incentive to 7 per cent from the present 3 per cent and offer finance at 7 per cent in order to make them survive and remain competitive in the international markets. If it fails to be competitive globally, the industry worries that the commodity will have to be sold domestically, triggering a glut. This could lead to huge losses for the industry and drop in cotton prices in the ensuing season.
MNCs to blame
“The situation is virtually the same in all the textile industry hubs in the country. Gujarat might be a little better off but the situation in Telangana, Andhra Pradesh and Tamil Nadu is quite bleak. MNCs have stepped in to buy large quantities of the commodity and hoarded it,” RK Agarwal, Chairman of the Telangana Spinning and Textile Mills Association, has said.“Our cost of finance is at about 14 per cent, while the MNCs get it at far lower levels. This is putting us in a disadvantageous position. We have decided to stop production for two days in a week in a protest and also to reduce losses,” Maddi Anantha Reddy, General Secretary of the Association, told BusinessLine after the meeting of the executive committee that discussed the worsening situation.The Indian textile industry, second largest globally after China with 49.17 million spindles, is facing a tough challenge from China and Pakistan.“Mills have been suffering from inadequate working capital andnow have been virtually pushed to a corner with raw material becoming scarce due to artificial shortage created by foreign traders,” he said. The industry wanted the Cotton Corporation of India (CCI) to ensure stabilisation of price rather than inflate the prices. It wanted the Union Government to set up a Cotton Price Stabilisation Fund Scheme, providing working capital at 7 per cent rate interest rate and reduce margin money (contribution of a borrower in the total project cost) from 25 per cent to 10 per cent.The association also asked the government to provide 3 per cent incentive for yarn, 5 per cent for fabric and 7 per cent for garments.
SOURCE: The Hindu Business Line
Cotton price remained unchanged on limited demand from domestic mills and exporters. On the other side, kapas or raw cotton traded down on weak ginning demand. Gujarat Sankar -6 quoted ₹40,500-41,500 per candy of 365 kg. About 8,000 bales of 170 kg arrived in Gujarat of the all-India arrivals of 15,000 bales. Kapas declined by ₹10 to ₹1,080-1,160 per 20 kg and gin delivery kapas was stood at ₹ 1,170-1,200 per 20 kg. Cottonseed traded at ₹550-600 per 20 kg.
SOURCE: The Hindu Business Line
The rupee today ended lower by 23 paise to close at an over two-week low of 67.31 against the US currency on heavy bouts of dollar demand amid uncertainty in the wake of RBI Governor Raghuram Rajan’s decision against pursuing a second stint. Rajan, whose tenure as the RBI chief will end on September 4, had on last Saturday said he will not be seeking an extension as the governor. The home currency opened sharply lower at 67.65 per dollar as against the last weekend’s level of 67.08 at the Interbank Foreign Exchange (Forex) Market and dropped further to one-month low of 67.70 on initial heavy dollar demand. However, it recovered afterwards to 67.28 in view of a sharp recovery in equity market on hopes of robust foreign capital inflows following government’s announcement of a further liberation of foreign direct investment coupled with sharp rise in global market before ending at 2-week low of 67.31 per dollar, still showing a loss of 23 paise or 0.34 per cent. The domestic currency had ended higher by 13 paise or 0.19 per cent on last Friday. The local currency hovered in a range of 67.28 and 67.70 per dollar during the day. Meanwhile, the dollar index was down by 0.48 per cent at against the basket of six global currencies in the late afternoon trade. The RBI fixed the reference rate for the $ at 67.4087 and € at 76.5358.
SOURCE: The Hindu Business Line
The labour ministry has lined up amendments to at least four key laws for the Cabinet's approval in a renewed push to labour reforms by the BJP-led NDA government after the revised foreign direct investment norms unveiled on Monday. This comes after a meeting between the officials of the ministry and the Prime Minister's Office (PMO) last week. "PMO has asked labour ministry to send the key legislations for consideration," a senior government official told ET, requesting not to be identified. The idea is to line up enough legislations for Parliament's approval in the upcoming monsoon session, he said. The first of several legislations that could soon get a go-ahead by the Union cabinet is the Shop & Establishment Act, which will pave the way for retailers to remain open round the clock. The idea was backed by finance minister Arun Jaitley in his budget speech this year. The official said the model Shop & Establishment Act is likely to come up for cabinet's approval this week, after which three more bills could be taken up. These include amendments to the Employees' Provident Funds & Miscellaneous Provisions Act, 1952, amendments to the Maternity Benefits Act, 1961 and the amendments to the Employees' Compensation Act, 1923.
Under the model Shop & Establishment Act, which will be made effective through a notification, bricks-and-mortar stores will have the flexibility to remain open round the clock. This will provide them a level playing field to compete with their online peers. Currently, shops are required to remain closed on a specified day depending on traditional practices. There is no provision for shops to remain open round the clock, so malls and restaurants close at midnight and local markets even earlier generally. Beyond that, malls only stay open to let moviegoers exit after the last show. Meanwhile, amendments to the EPF & MP Act will provide EPFO subscribers an option of choosing between EPF and the New Pension System as proposed by Jaitley in the previous budget a year ago while the amendments to the Maternity Benefit Act could more than double the maternity leave to 26 weeks from the existing 12 weeks.
SOURCE: The Economic Times
The government wants to capture greater market share in global trade and has kick-started an exercise for mapping region specific exports to achieve this aim. It has identified the pharmaceutical sector as an "export commodity with high potential" to garner higher market share in Europe and auto components to drive exports growth in South America. "It is an initial thought and discussions are on to increase India's market share in global exports through products that are expected to grow at a high pace in next four years," said an official, who did not wish to be identified. The move comes at a time when India's exports have been declining for the past 18 months. India's exports in 2015-16 amounted to $261.1 billion, down 15.85% from that in the previous fiscal. In the two preceding years, the country's share in world exports remained flat at 1.7%. The government has set a target of increasing exports to $900 billion by 2018-19 and expanding the country's share of global exports to more than 3%. The exercise, which began a few days ago, is in line with Foreign Trade Policy of 2015-20 which seeks to support 852 tariff lines that were not supported earlier. These include fruit, vegetables, dairy products, oil meals, Ayush and herbal products, paper and paper board products.
Under this, the government has asked the export promotion council for pharmaceuticals to prepare a forecast of possible compounded annual growth rate in the next four years taking 2015-16 as the base year of India's pharmaceutical exports to Europe since export commodities with high potential should grow faster than the European market in the next four years ending 2019-20. This means exporting companies will have to identify possible products in each of the categories such as bulk drugs, formulations, Ayush and herbal products, taking into account market dynamics such as patent expiries and the possible expansion of the generic sector of Europe. "The government wants to see what could be the winner sectors to grow deeper into specific markets and be potential growth drivers," said Ajay Sahai, director general of Fieo.
SOURCE: The Economic Times
In a major liberalisation drive today, the Union Government has radically opened up the FDI regime to provide a huge impetus to employment and job creation in the country. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi, according to an official statement from the PMO.This is the second major reform after the last radical changes announced in November 2015. “Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI,” the statement said. It also tweaked rules to allow companies such as Apple to open their own stores in the country by exempting them from local sourcing requirements for three years under the single brand retail segment for entities with cutting edge technology. “It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having 'state-of-art' and 'cutting edge' technology. “Amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment,” the statement said. The fresh liberalisation of FDI rules opens food retail, airlines and private security firms to higher overseas investment. Other sectors in which FDI norms have been relaxed include e-commerce in food products, broadcasting carriage services, private security agencies and animal husbandry. This is the second major reform in the FDI space. The Centre in last November had significantly relaxed the foreign investment regime. Foreign investment is considered crucial for India, which needs around $1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth. A strong inflow of foreign investments will help improve the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.
SOURCE: Fibre2fashion
A series of reforms announced by India in particularly increasing Foreign Direct Investment in a number of sectors will provide a fillip to the potential of US-India bilateral trade, a business advocacy group has said. “The widened scope of FDI norms in defence, civil aviation, broadcasting services, and pharmaceuticals will provide a fillip to the potential of the US-India bilateral trade,” US India Business Council (USIBC) President Mukesh Aghi said while referring to a series of Foreign Direct Investment (FDI) reforms by India. Close on the heels of Prime Minister Narendra Modi’s visit to Washington earlier this month, the notice that India would liberalise FDI in defence, broadcasting services, civil aviation and pharmaceuticals sectors has further buoyed investor sentiment, it said. Modi’s recent visit to the US included major investment announcements by companies such as Amazon and Star India. “We applaud the liberalisation of FDI to 74 per cent in brownfield investments under the automatic route in the pharmaceutical sector, while also allowing investments beyond 74 per cent and up to 100 per cent through government approval,” Aghi said.
Allowing up to 74 per cent through the automatic route will encourage investment to move swiftly into India in this important and growing sector and will further promote and expand healthcare access in India, Aghi said. The long-awaited National Civil Aviation Policy is expected to promote regional connectivity, boost tourism and stimulate the economy in tier 2-3 cities. India is the fastest growing aviation market with 21 per cent plus growth in the domestic sector in 2015-16, and can become one of the largest aviation markets in the foreseeable future, he added. “India continues to attract FDIs despite an uncertain global outlook. Major improvements have taken place in India’s economy since Prime Minister Modi assumed office,” Aghi said. “These reforms include accelerated infrastructure investment, greater openness to foreign direct investment, less red tape, and a revised bankruptcy code. “We had stated earlier that USD 45 billion is only a starting point for American companies to invest in India. With these newly announced reforms, FDIs, technology transfers, and jobs are likely to increase substantially,” he said. The Indian government yesterday launched a second wave of FDI reforms allowing 100 per cent inflows in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals, steps apparently aimed at neutralising fallout of Raghuram Rajan’s decision to exit RBI.
SOURCE: The Financial Express
Even as both India and China compete with each other to retain the fastest growing economy tag, Indian employees were more confident about the state of their economy (50 per cent) over the Chinese, who seemed to be less self-assured (28 per cent), a report said.“Employees in India are far more positive about the state of their country’s economy, as 50 per cent of employees in India rating the economy good to excellent compared to 28 per cent employees rating the Chinese economy good to excellent,” according to Michael Page Job Confidence index survey.The study drew a comparison between the responses from over 1,200 employees in India and over 700 employees in China, from mid-senior level, across organisations and sectors.The survey also revealed that employees in India were more optimistic about the next 12 months with regard to better skill development (74 per cent compared to 72 per cent in China) and career progression (72 per cent compared to 67 per cent in China).
However, employees in India were less satisfied about salary (21 per cent compared to 16 per cent in China), opportunities for promotion (31 per cent compared to 28 per cent in China) and job security (20 per cent compared to 14 per cent in China), it said.“Interestingly, Indian employees seem to be less satisfied about certain aspects of their job compared to their counterparts in China. This can be attributed to an optimistic mindset and a better sentiment of market conditions hence higher expectations,” Michael Page India Senior Managing Director Sebastien Hampartzoumian said.About 44 per cent Indian employees cited new skills development as the top reason for conducting a job search, while 43 per cent of employees in China sought work-life balance.In China, keenness to attain a healthy work-life balance is prioritised over new skill development, which seemed to be of greater significance to Indians. Both countries showcased a willingness to explore working abroad. “India’s growth story has been closely linked to skill development over the last two years and seeing this taking importance over salary increase is very surprising,” Hampartzoumian added. Overseas employment was generally seen as an attractive option across both nations, in India 64 per cent while in China 59 per cent, the survey said. Indians continued to be positive about the opportunity to develop new skills and the possibility of getting a promotion this year.In contrast, employees from China were slightly less confident, it added.
SOURCE: The Financial Express
The World Bank has forecast India's economic growth at 7.6 per cent rate in the current financial year, the same as was registered in 2015-16. To grow at even this rate, the economy would have to activate its stalled engines - agricultural growth and rural demand, trade and private investment - and sustain demand from urban households and public investments, The World Bank said. Growth would gradually recover to 7.7 per cent next year and 7.8 per cent in 2018-19, it said in its latest India Development Update, released on Monday.The report is titled Financing Double-Digit Growth and it prescribed the government carry out reforms, particularly in the financial sector, to enable the economy touch 10 per cent growth or more. Amid allegations that economic growth is not creating jobs, the World Bank report said manufacturing and services sectors, which expanded 7.4 per cent and 8.9 per cent respectively in FY16, also created urban jobs. It should be mentioned that the 7.6 per cent growth forecast the economy in the current financial year is 0.2 percentage points lower than predictions made in January.
World Bank pins hopes on monsoon for 7.6% growth Also, 7.7 per cent growth projection for 2017-18 is 0.2 percentage points less than the January prediction. However, even 7.6 per cent growth rate in 2016-17 would face headwinds from dissipation of the large boost from historically low oil prices in 2015-16, but the prospects of a normal monsoon would help, the update suggested. It is here that risks to even this truncated growth projection would arise. First, rains may not take place at the right places and times for optimal production.
Second, even under a favourable monsoon, the consumption impulse in the rural economy could be dampened by rural household indebtedness following two years of hardships, the World Bank said. Besides, given the waning oil dividend and high target for asset sales, the government might find it challenging to achieve fiscal consolidation while avoiding a negative impact of higher taxes or lower capital expenditure on growth. Also, the export demand may continue to deteriorate given elevated uncertainties about the global economy. Earlier, the World Bank had cut global economic growth projections by 0.5 percentage points to 2.4 per cent for 2016.
The latest report by the World Bank also said that adequate levels of reserves and a favourable current account position mitigate external risks, but domestic financial risks may rise as banks move to classify non-performing assets based on stricter criteria. In this scenario, the report also talked about India's ambitions to accelerate GDP growth to double digits. For this reforms are needed to unleash productivity growth through the proposed goods and services tax and easing business environment, accelerating private investment growth, besides enabling more women to join the labour force. The prescriptions came on a day the government announced changes in its foreign direct investment (FDI) policy.
World Bank country director for India, Onno Ruhl, said it was very important for the government to continue opening up sectors for investors. "The global economy is not going great, but India's economy is a bright spot. So, it is important for India to open up the economy for investors," he said.The key issue here is whether India's financial sector would be able to support double-digit growth.
SOURCE: The Business Standard
Expressing concern over some budget proposals like increasing the source tax from 0.6 to 1.5 per cent, the associations of garment and textile industries in Bangladesh have urged the government to provide business-friendly policy support such as cut in source and corporate taxes in the budget for 2016-2017 financial year.The 150 per cent hike in the source tax will put extra pressure on the garment and textile industries which are already facing a number of challenges, like fall in apparel prices, increase in production cost by 8-10 per cent, huge cost of factory remediation, depreciation of currencies by competing countries, they said in a joint statement.
Warning that the higher taxes would diminish their competitive edge in the international market, the associations urged the government to retain source tax at 0.6 per cent and corporate tax at 10 per cent for garment and textile industries. They also appealed to the government to reconsider their budget proposal in this regard and help the highest export earning sector sustain its export advantage and maintain growth.The signatories to the joint statement include Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) and Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA).
SOURCE: Fibre2fashion
The Government of Ghana will invest more than $4 million to train youth in the textile and apparel industry, minister of employment Haruna Iddrius has said, Ghanaian media reported.The funds earmarked for training the first batch of 2,000 from the Youth Employment Agency would be released after completion of some procurement processes, the minister said.The government intends to impart skills in textile and apparel industry to around 5,000 persons, including kayayei who migrate from rural to urban areas in search of jobs, the minister said while on a visit to a factory owned by Dignity DRTR, an apparel company operating in the capital city of Accra. Of the 5,000 persons, Dignity DRTR will absorb 2,000 people, while the remaining 3,000 will be offered employment by other textile and apparel companies.The training would be imparted through a tripartite collaboration among the ministry of employment and labour relations, the ministry of gender and social protection, and textile and apparel companies.The move is part of president John Dramani Mahama's plan that sees the textile and apparel sector spearheading industrial revolution in the country. Dignity DRTR has designed rigorous training modules to impart training to people with no skills or education.
SOURCE: Fibre2fashion
The consumption of locally grown cotton by Egyptian companies decreased by 56.6 per cent in the second quarter of the agricultural season 2015-16, the Central Agency for Public Mobilisation and Statistics (CAPMAS) showed. During December 2015 – February 2016 period, local companies purchased 76,400 kantar (1 kantar = 45.02 kg) of cotton, compared to consumption of 175,800 kantar in the corresponding period of the previous season. The decline in consumption was largely due to shutdown of a number of spinning mills in the country, CAPMAS said.
Exports of Egyptian cotton too decreased to 112,700 kantar during the three-month period under review, as against exports of 246,000 kantar between December 2014 and February 2015, registering a drop of 54.2 per cent. However, CAPMAS attributed the decline in exports to the decrease in cotton crop. Similarly, the quantity of ginned cotton fell by 29.5 per cent to 900,000 kantar during the second quarter, compared to 1.3 million kantar cotton ginned during the same period of the previous season. Likewise, the amount of pressed cotton declined by 46.3 per cent to 540,000 kantar, compared to 1 million kantar pressed during the same quarter in the previous season.
SOURCE: Fibre2fashion
The importation of secondhand clothes will continue for some time despite calls from East African Legislative Assembly (Eala)and textiles industry players to have the imports banned almost immediately. In a discussion with the Eala members on a range of topics, including updates on textile and leather industry, Trade minister Amelia Kyambadde said secondhand cloth business is here to stay for a while because of the demand it commands. She told the Ugandan Eala legislators who paid her a visit last week in her office in Kampala, that despite the regional parliament proposal to ban used clothes, the reality on the ground is that majority of the population use them and for that they cannot be done away with just like that. She said: "Uganda has decided to go slow on the ban on used clothes. The ban on secondhand clothes will be a gradual process as Uganda develops her textile and leather industries." She continued: "Secondhand clothes provide employment to many Ugandans. It is also affordable and readily available."
Tax imposed
To begin with the limitation of the importation of used clothes, Ms Kyambadde said government has imposed an excise duty on secondhand clothes as the country continues to develop her textile industry.Also, the National Textile Policy and the National Leather and Leather Products Policy which outline key interventions in the promotion of the two sub sectors is being implemented by the government with the view to promote and protect the local nascent industries from undue competition.In addition, the Buy Uganda Build Uganda Policy (BUBU) was put in place to promote local products made in Uganda, including textile and leather products. This will be enforced with a view to reducing reliance on imported products at the expense of locally produced goods.
Currently, Uganda has only three textile industries including Southern Range Nyanza Ltd, Phenix Logistics (U) Ltd and Fine Spinners Ltd, who according to the Trade ministry statement, cannot address the demand if secondhand clothes were to be completely banned.In an earlier interview, it was evident that the Southern Range Nyanza, locally known as Nytil, one of the leading textile manufacturers in the country, wants the government to enforce the textile policy so as to save the local industry from undue competition emanating from imported clothes, particularly the secondhand clothes.Statistics indicate that about 80 per cent of textile products consumed in the country are imported, with majority being mivumba - secondhand clothes."All we are asking for is a level playing field because we are here for a long term. We should be protected from cheap imported clothes. This impacts our production levels," Nytil general manager Vinay Kumar said in an interview recently.
Other issues
Meanwhile Eala MPs are currently undertaking an outreach and sensitisation programme in the six partner states. Led by Ms Nusura Tiperu, they will be looking at understanding how deep is the integration across the six regional member states with their key areas of discussion being around the EAC Common Market Protocol, EAC Industrialisation agenda, cooperatives development, preparedness for the EAC-Comesa-SADC Tripartite and strategic interventions in improving the doing business environment.Mr Mike Sebalu, the spokesperson of the team that visited Ms Kyambadde, said they are in Uganda to follow up on implementation of key issues such as those raised in the 2016/2017 Budget including the Common External Tariff, Rules of Origin, the EAC sensitive list, the upcoming EAC Competition Authority and Uganda's preparation for the EAC-Comesa-SADC Tripartite arrangement.
SOURCE: The All Africa
On November 5, 2015, the United States Government released a draft of the Trans-Pacific Partnership agreement (TPP) to the public. While implementation of the Agreement by the 12 member states is likely at least two years away, textile industry retailers and producers should consider the TPP’s impact now, as it has the potential to significantly reduce import costs for those in a position to structure their supply chains accordingly. The TPP’s substantial tariff reductions, with materials previously subject to 17 percent and 18 percent duties eventually becoming duty-free, provide opportunities for textile retailers and producers that can be leveraged to their advantage.
Background to the TPP
The TPP is the largest trade agreement negotiated in the past 20 years. The agreement will substantially reduce barriers to trade amongst its member states, being: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. Together, the member states contain more than 800 million consumers and make up more than 40 percent of the global economic output.The agreement is Canada’s first free trade agreement that contains a chapter specifically dedicated to textiles and apparel. According to Global Affairs Canada, the TPP’s textile and apparel rules of origin will provide Canadian producers more flexibility in sourcing options, opening up Canada’s access to trade with the other member states.
Timelines for implementation of the TPP
The TPP still needs to be finalized, signed, implemented and ratified domestically by each of the member states. This will undoubtedly take some time, but each member state is expected to complete its domestic implementation and ratification processes within two years of signing the TPP. However, the agreement may come into effect before it has been finalized by each of the member states, as only six of the original 12 signatories, representing 85 percent of the total GDP of the TPP economies, are required to ratify the agreement before it can take effect. In Canada, Prime Minister Trudeau had promised a full and open debate on ratification of the TPP in Parliament. Following the Trade Minister’s review of the draft agreement and the Federal Government’s public consultation process, Canada signed the TPP on February 4, 2016.
Key provisions on textiles and apparel
For Canadian textile retailers and producers, the TPP reduces and eliminates tariffs associated with trading textiles and apparel between member states. Taking advantage of the TPP’s preferential tariff treatment by trading with other member states could result in significant cost savings for retailers and producers in Canada. The specific rates of preferential tariff treatment, including the base rates of duty applicable to each item and the timeline for tariff elimination, can be found in each member state’s Tariff Elimination Schedule.Generally, for an end product to qualify for preferential tariff treatment, it must originate within the TPP region in accordance with the Agreement’s rules of origin. As a general rule, an end product must be comprised of yarns and fabrics from the TPP region to qualify as originating within the TPP region. This requirement is often referred to as the “yarn forward” rule.
However, the TPP also provides a degree of flexibility with respect to the yarn forward rule. Article 2 of Annex 4-A outlines that an end product qualifies as originating if it is produced entirely in the territory of one or more TPP parties using non-originating materials that have undergone the production process requirements or changes in tariff classifications specified in the Annex, and the end product otherwise satisfies the rule of origin requirements set out in Chapters 3 and 4 of the TPP.
Additionally, the Short Supply List, found in the TPP as Appendix 1 to Annex 4-A, provides TPP members with an exemption to the yarn forward rule in situations where producers are unable to source certain fibers and fabrics from within the TPP region. The Short Supply List essentially allows producers to take advantage of the preferential tariff treatment for end products whose fibers and fabrics originated from outside the TPP region, if the fiber or fabric is listed on the Short Supply List. There are 194 fibers and fabrics on the Short Supply List, however, some fibers and fabrics are listed as temporary and will be removed from the list five years after the TPP has taken effect.
Finally, the TPP also allows for an end product to be comprised of up to 10 percent non-originating production materials and still qualify for preferential tariff treatment. Consequently, textile and apparel goods set out in Annex 4-A may qualify as TPP originating goods even if they contain non-originating materials, where the total weight of the non-originating materials is not more than 10 percent of the total weight of the good.
The bottom line for retailers and producers
The TPP offers the Canadian textile industry expanded and preferential access to many strategic global markets. To the extent that Canadian textile and apparel retailers and producers are able to organize their operations in such a way as to work within the TPP’s new textile and apparel rules of origin, they will have the opportunity to take advantage of significant reductions in the rates of duty with which they contend when importing products into Canada.
SOURCE: The Business Adviser
As Fashion SVP exhibition 2016, UK’s premier event for fashion sourcing and production returning to Olympia Central, Turkish knitter are gearing up to display their collections ranging from fashionable knitwear to the latest sustainable clothing. Turkish knitters have spent years building strong relationships with leading UK and European brands. Modalt Tekstil is a manufacturer and exporter of a wide range of ladies’ knitwear and has developed its own collection in line with customers’ requirements. With a capacity of 80,000 pieces per month, Modalt is also renowned for its production of larger sizes. The main fabrics are cotton blends, polyesters, jacquard, viscose and printed fabrics. Orimpex is known as a specialist in sustainable garment production. For nine years, it has been focusing on sustainable clothes made of organic cotton, tencel, recycled polyester and bamboo. Orimpex holds various certifications, including GOTS, OCS and GRS. It has been audited by the Fair Wear Foundation for good working conditions. It mainly exports to UK markets and Western Europe.
Ral Tekstil is a manufacturer and exporter and experienced in all types of sportswear, leisurewear, promotional and private label garments. Ral focuses on in-house production and provides styling and cutting services, embroidery, screen printing, sewing, sublimation and digital printing, ironing, QC, packaging and transportation services. This company works with brands such as Mitre, Puma, Asics and MGB and is audited by VF and BSCI. It also holds all ISO certifications. Mosi Tekstil, located in Izmir, boasts a turnover of US$15 million producing 500,000 pieces per week. Mosi’s main customers are Otto, Venus Beach, Dim, Tally Weijl, Desigual, Urban Outfitters, River Island, Toys R us and Disney. In its factories in Turkey and Albania, Mosi produces t-shirts as well as other knits such as tops and dresses. Both factories are audited by BSCI, GOOD and SEDEX.Seyfeli Textile started with the production of men’s and children’s shirts. Later, it expanded its production range to women’s, kids’ and baby knitwear and wovens. Seyfeli has also introduced organic textiles and provides organic certified plush fabrics. IYA Tekstil produces more than 100,000 items per month, mainly ladies t-shirts, jackets, dresses, skirts, blouses, shirts, leggings, vests and coats. The company exports to Germany, Holland and Switzerland and works closely with brands brands and retailers such as Liberty as well as Germany's Bonita and Gerry Weber. Fashion SVP will take place from 28-29 June at the Olympia, London. This year the show will be bigger and better with the a series of free production and sourcing seminars as well as an informative programme of hands-on workshops throughout the two days.
SOURCE: Yarns&Fibers
ZAMBIA has ratified the World Trade Organisation agreement on trade facilitation, which will assist Government put in place reforms that will reduce the cost of doing business. The implementation of the agreement is aimed at putting in place interventions in Zambia’s regulatory trade environment by providing support infrastructure and capacity building for stakeholders. “The ratification of the WTO agreement on trade facilitation by Zambia demonstrates my government’s commitment and resolute aspiration to undertake the necessary reforms that will further reduce the cost of doing business and in particular, trade across borders,” Deputy Minister of Commerce, Trade and Industry Raymond Mutale said. He said trade facilitation reforms will improve trade logistics and facilitate for ease of doing business by embarking on modernising the manner in which trade is conducted. Mr Mutale noted that implementation of modernised trade ecosystems will ensure efficiency and effectiveness in the manner in which trade is conducted, thus reducing the cost of doing business and increasing foreign investment. He added that the high cost of doing business in most developing countries is a deterrent to the achievement of sustainable social and economic development and reduced participation in economic activities. “You will appreciate that one key benchmark that both local and foreign investors use to gauge a country’s business environment is the ease of doing business…which assesses the business environment,” Mr Mutale said.
SOURCE: The Daily Mail
Japan's exports fell for an eighth consecutive months in May as shipments to China, the US and Europe slumped, undermining Prime Minister Shinzo Abe's efforts to revive the economy. Overseas shipments declined 11.3 per cent in May from a year earlier, the Ministry of Finance said on Monday. The median estimate of economists surveyed by Bloomberg was for a 10 per cent drop. Imports fell 13.8 per cent, leaving a trade deficit of 40.7 billion yen ($389 million).Japan's modest economic gains this year are at risk as a slowdown in overseas demand and the yen's surge make the nation's products less appealing overseas and hurts the earnings of exporters. Finance Minister Taro Aso escalated his concern over the yen on Friday, calling for coordination with his overseas counterparts to address what he described as disorderly moves in the currency market. "Exports are still weak as overseas demand remains dull and the effects of the weak yen last year are dissipating," Atsushi Takeda, an economist at Itochu Corp in Tokyo, said before the report was released. "With the Brexit vote coming up and expectations over Fed rate hikes weakening, the yen's appreciation could be prolonged, increasing downside risks to Japan's economy."While the yen slipped 3.8 per cent in May, it's jumped 15 per cent this year against the dollar. The yen rallied to the strongest level since August 2014 last week after the Bank of Japan left monetary policy unchanged. The currency traded at 104.68 against the dollar at 9:21 am in Tokyo, 0.5 per cent lower. The Topix index of stocks was up 2.3 per cent after dropping for the last three weeks.Aso said on June 17 that he was "very concerned" about one-sided, abrupt, and speculative moves in the currency market. Toyota Motor Corp has warned that annual net income will probably decline for the first time in five years, due to the stronger currency. A 24 per cent decline in the value of steel exports was the biggest drag on shipments, followed by a 20 per cent decline in the value of semi-conductor parts.The biggest contribution to lower imports was from oil and natural gas, whose prices have fallen in Japan as the currency strengthens this year.
SOURCE: The Business Standard
The Apparelsourcing USA and the Texworld USA trade shows the largest apparel and sourcing show to take place on the same dates and at the same location saving time and limiting distance for visitor coming up this July, together they will be hosting over 700 international exhibitors.Apparelsourcing USA, is the only event on the East Coast focusing on finished apparel, contract manufacturing and private label development, will connect attendees with suppliers specializing in ready-to-wear for men, women, children and accessories. This summer’s edition promises to be the most exciting yet, according to organizers, with the debut of a new Mexico pavilion, a revamped show floor layout and the new Fashion on
Display Trend Cafe.
The 10th anniversary edition of Texworld USA, the premier North American fabric sourcing show, will also bring some novelties, with a brand new international pavilion, the most diverse product group offering to date, and a dedicated focus on sustainable and eco-friendly products.Once again co-located with Texworld USA, Apparelsourcing USA is an opportunity for visitors to source complimentary products and manufacturing services from over 220 exhibitors representing nine countries, including USA, China, Bangladesh, Kenya, Taiwan, and more. Alongside the returning Pakistan pavilion, the brand new Mexico pavilion will make its debut on the show floor with several exhibitors specializing in lingerie and activewear for men and women. Over three show days, visitors will have the opportunity to explore products across 12 end-use groups. New to the Apparelsourcing USA, the Fashion on Display Trend Café will provide attendees with a preview of the best of exhibitors’ manufacturing capabilities and finished apparel products. In addition, the Fashion on Display Trend Cafe will offer visitors a rest area with comfortable seating and full gourmet coffee and bar service.
In addition to exploring services and resources from a variety of global suppliers, attendees will experience new product category designations on the exhibit hall floor – casual and formal. This new categorization of product offerings aims to help attendees navigate the show floor.Jennifer Bacon, Show Director said that they have not only brought in the best group of exhibitors on the show floor. Their new casual and formal categories are designed to make navigating the show floor much easier and they hope that the upgrades made to the show’s Fashion on Display area will really elevate the attendee experience at Apparelsourcing USA.
While, Texworld USA’s summer 2016 edition will feature over 500 international exhibitors representing 15 countries, including USA, United Kingdom, China, Indonesia, Lebanon, Japan, Canada, Colombia, India and more. Alongside the returning Turkey and Taiwan pavilions, a brand new Korea pavilion presented by KTTA will make its debut on the show floor. Once again, the Lenzing Innovations pavilion will return with 25 exhibitors focused on incorporating sustainable fibres into a wide range of product categories.
Through their new selection committee process they have ensured that the quality of their exhibitors and their offerings is the highest ever presented at Texworld USA, said Jennifer Bacon. In addition, they have listened to what the industry is demanding and continued to expand their functional fabric, denim and eco-friendly categories. As always, attendees will have the opportunity to source fabrics, trims and accessories for every type of product line – women, men, juniors and children’s wear – across a total of 16 product groups, including the brand new faux fur category and an expanded functional fabrics category. This July will also mark Texworld USA’s 10-year anniversary and 10 years of partnership with Lenzing Innovation. Throughout the last decade, Lenzing Innovation has remained at the core of Texworld USA and has vitally contributed to the show’s growth through consistent delivery of high quality exhibitors and over 200 educational seminars for industry engagement, organisers report. Since the launch of Texworld USA ten years ago, Lenzing Innovation has been a vital supporter and partner in this event, said Dennis Smith, President, Messe Frankfurt North America.
Through the impressive quality of textile mills exhibiting in the Lenzing Innovation Pavilion and a prestigious group of speakers recruited for the Lenzing Seminar Series, the North American team led by Tricia Carey have shown incredible loyalty and support for this sourcing platform. In addition to celebrating 10 years in business, exciting new exhibitors and product categories, the summer 2016 edition of Texworld USA will feature an enhanced focus on sustainability. Taking note of recent industry discussions and the increased importance of sustainable sourcing to both consumers and designers, Texworld USA has increased its focus on the topic. Attendees will be able to discover over 35 exhibitors offering sustainable and eco-friendly textiles and on-site recycled fibre demonstrations courtesy of Repreve and the #TurnItGreen tour interactive trailer.
Rounding out the sustainability focus, Lenzing Innovation will present six complimentary, expert-led educational sessions focused on sustainability as part of the Texworld USA seminar series and the brand new Texworld USA Industry Boot Camps programming. The Apparelsourcing USA and the Texworld USA trade shows will open their doors to exhibitors and attendees from 12-15 July at the Javits Convention Center in New York City.
SOURCE: Yarns&Fibers
