INTERNATIONAL
Textile Raw Material Price 2016-06-22
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1004.95 |
USD/Ton |
0% |
6/22/2016 |
|
VSF |
2052.44 |
USD/Ton |
-0.07% |
6/22/2016 |
|
ASF |
1914.19 |
USD/Ton |
0% |
6/22/2016 |
|
Polyester POY |
990.52 |
USD/Ton |
0% |
6/22/2016 |
|
Nylon FDY |
2218.03 |
USD/Ton |
0% |
6/22/2016 |
|
40D Spandex |
4329.72 |
USD/Ton |
0% |
6/22/2016 |
|
Nylon DTY |
2430.72 |
USD/Ton |
0% |
6/22/2016 |
|
Viscose Long Filament |
5665.10 |
USD/Ton |
0% |
6/22/2016 |
|
Polyester DTY |
1230.55 |
USD/Ton |
0% |
6/22/2016 |
|
Nylon POY |
2058.52 |
USD/Ton |
0% |
6/22/2016 |
|
Acrylic Top 3D |
2088.90 |
USD/Ton |
0% |
6/22/2016 |
|
Polyester FDY |
1127.25 |
USD/Ton |
0% |
6/22/2016 |
|
30S Spun Rayon Yarn |
2749.75 |
USD/Ton |
0% |
6/22/2016 |
|
32S Polyester Yarn |
1671.12 |
USD/Ton |
0% |
6/22/2016 |
|
45S T/C Yarn |
2430.72 |
USD/Ton |
0% |
6/22/2016 |
|
45S Polyester Yarn |
1807.85 |
USD/Ton |
0% |
6/22/2016 |
|
T/C Yarn 65/35 32S |
2126.88 |
USD/Ton |
0% |
6/22/2016 |
|
40S Rayon Yarn |
2916.86 |
USD/Ton |
0% |
6/22/2016 |
|
T/R Yarn 65/35 32S |
2202.84 |
USD/Ton |
0% |
6/22/2016 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
6/22/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
6/22/2016 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
6/22/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
6/22/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
6/22/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15172USD dtd.22/06/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The government has announced a Rs6,000-crore package for the textiles and apparels sector to help it wrest a bigger share of the global market. The package also provides the sector more flexible labour laws and financial incentives. It hopes the package will create one crore new jobs in three years, attract Rs74,000 crore in investment and generate $30 billion in exports earnings. "The package will help in realising the true potential of employment generation in the textile and apparel sector," Finance Minister Arun Jaitley said at a briefing on Cabinet decision. The thrust of the package is to make this labour-intensive industry cost competitive and achieve economies of scale, which can help it corner a bigger share of the global market. "We will overtake Vietnam and Bangladesh in garment exports within next three years if we properly implement the package," Textiles Secretary Rashmi Verma said.
India's textiles and apparel exports add up to about $40 billion. India has not been able to take advantage of rising wages in China to get a bigger share of the exports market despite having abundant labour and entire value chain of fibre to fabric. "We have advantages of economies of scale. Therefore, it was decided to take steps to give a boost to the sector," the Finance minister said after the Cabinet meeting. Industry welcomed the package. "The industry is very happy, especially because of the labour reforms that have been initiated. Measures like fixed-term employment and seasonal flexbility in labour laws will benefit the garment sector immensely," Apparel Export Promotion Council Chairman Ashok G Rajani said.
LABOUR FLEXIBILITY
The government will foot the entire 12% of employer's contribution under the Employers Provident Fund Scheme for new hands hired by the industry and earning less than Rs15,000 a month for the first three years. This is higher than the 8.33% share borne by the government under the Pradhan Mantri Rozgar Protsahan Yojana (PMRPY). This will add up to a benefit of Rs1,170 crore over the next three years for the industry. In addition, provident fund contribution will be made optional for those earning less than Rs15,000 per month, which will boost in hand salaries of sector workers and thereby lift its employment attractiveness. Overtime hours for workers will be fixed at eight hours per week in line with the ILO norms, which will further increase hiring. The industry will be allowed to hire workers for fixed-term employment because of its seasonal nature, but such workers will be at par with permanent workmen in terms of working hours, wages, allowances and other statutory dues. The package provides additional duty drawback incentives for garments, flexibility in labour laws to increase productivity as well as tax and production sops for job creation in garment manufacturing.
SOURCE: The Economic Times
The government on Wednesday announced a slew of measures for the textile sector, to generate 10 million jobs, boost exports by a cumulative $30 billion and investments by Rs 74,000 crore over three years. A special package approved by the Cabinet was estimated to cost Rs 6,000 crore, improve competitiveness, lead to greater production through a string of labour reforms and generate jobs. Currently, an estimated 70 per cent of the workforce in the garment industry are women. Significant among these was the government's decision to fund the full 12 per cent of the employers' contribution to the Employees' Provident Fund Scheme for new employees in the garment industry if the candidate earned less than Rs 15,000 a month. The scheme, which will run for three years, would cost the textiles ministry Rs 1,170 crore. The ministry has also taken on textile factory owners by instituting fixed-term employment for garment sector employees. Employees had long demanded they be considered as permanent and their working hours and wages be fixed, as the industry was seasonal. The ministry has also fixed overtime hours for workers, to not exceed eight hours a week, in line with International Labour Organization norms.
Industry insiders, however, cheered a decision to extend incentives under the amended Technology Upgradation Fund scheme from 15 per cent to 25 per cent. Shishir Jaipuria, chairman, FICCI Textiles Committee, said: "As the Indian textiles and garment industry is facing tough competition in the global market, the refund of state levies comes as a breather and would help them to gain more competitiveness in global markets, where we have to compete with duty-free regimes." The scheme, amended in December 2015, allows subsidy on capital investment to enterprises in the medium, micro and small sectors subject to a ceiling of Rs 30 crore over five years. Textiles ministry officials said this would allow owners to employ more.
To boost exports, the government extended the duty drawback scheme to a number of state levies. Duty drawback is refund of duties on imported inputs for export items. This move would cost the exchequer Rs 5,500 crore but would greatly boost the competitiveness of Indian exports in foreign markets. "Industry is gearing up for the $20-bn target set for this year," Ashok G Rajani, Chairman of the Apparel Exports Promotion Council, said. "With exports declining for the last five months in a row, major global markets still recording negative growth and the Brexit uncertainty looming large, the package is timely and gives the industry hope." However, others have asked for the scope of reforms to be widened. "The entire value chain, including made-ups and fabrics, which are equally import segments of the garments industry, needs to be covered," said R K Dalmia, President, Century Textiles Ltd. Ministry sources said the government was also keeping its fingers crossed on reversing the fall in textile exports by approving a revamped national textiles policy, likely to be taken up by the Cabinet soon. In the works since last year, the policy aims to aims to achieve $300-billion exports by 2024-25 and to create 35 million jobs by 2024-25. India exported $36.25 billion worth of textiles and related goods in the last financial year, 2.39 per cent drop from 2014-15.
SOURCE: The Business Standard
The textile industry in the region welcomed the special package announced for the textile and apparel sector, particularly the relaxation of labour laws. In a statement, Indian Texpreneurs Federation Secretary, Prabhu Damodharan appreciated the understanding of government about the importance of textile sector and its potential in exports and fixing a target to regain number one position in 2018 with competing textile manufacturing nations Bangladesh and Vietnam. President of Tirupur Exporters Association, A Sakthivel, welcomed the package and said that these fresh impetus will help increasing exports growth and as well as creation of employment, mainly for women employees. Welcoming the package, Southern India Mills' Association chairman, M Senthilkumar said the slew of measures announced for the garment sector would greatly help the exports, which attract 16 to 20 percent duty in all the major international markets. Making employees contribution to EPF optimal for employees earning less than Rs 15,000 per month was a good reform in the area of flexibility in labour laws and the whole textile value chain will get benefit from this move, they said. On the announcement on drawback at All industries rate should be given even when fabric inputs are imported under Advance Authorisation scheme, Prabhu said that the Government should carefully analyse and implement only for very very selective fabrics which are not available in India. Providing additional incentive of 10 percent Capital subsidy in Amended Technology Upgradation Fund Scheme from 15 to 25 percent will boost employment generation, Shaktivel said.
SOURCE: The Moneycontrol
SOURCE: The Business Standard
To highlight the host of problems faced by the industry, including shortage of cotton that was made scarce allegedly by multinational companies, the Telangana textile and spinning mills has decided to shut down twice a week. There are about 33 mills in Telangana following bifurcation and at least 50,000 persons are said to be working in them. Market glut, duty-free access or minimal duty advantage for competing nations to major textile markets like the European Union and China have led to a decline in prices and a slowdown of exports and Chinese currency devaluation in August last has only added to mills woes. R.K. Agarwal, chairman, M. Ananta Reddy general secretary and Vishnuvardhan Reddy of the Telangana Spinning & Textile Mills Association has made an appeal to the Central and State governments to come to their rescue as they are being pushed to a corner. Prices have moved upwards of Rs. 5,000 per quintal, but it will not benefit farmers as traders and MNCs are releasing hoarded stocks into the market.
The Association has also requested the Centre to regulate the cotton trade, cap speculative practices by MNCs having the benefit of low interest regimes in their respective countries to access capital and direct the Cotton Corporation of India (CCI) to sell to customers only to stabilize prices since traders/MNCs were jacking up prices during lean season.Other demands put forward are cotton stabilization fund at seven percent rate, liberal loans, increase in credit limit from three months to nine months, reduction of margin money to 10 percent and providing export incentive of 7.5 per cent are other demands. At a press conference on Monday, they charged that 50 lakh bales of hoarded cotton was lying with such traders and that mills were finding it tough to go for imports due to duties and transportation costs; besides it will take 50 days for imports.
SOURCE: Yarns&Fibers
Yarn manufacturers have begun importing cheaper cotton from West African countries after a sudden inflation in the domestic market was triggered by traders holding onto stocks in view of better realisation and led to panic-buying in the last leg of the current cotton season ending September. Tamil Nadu's spinning mills, buying cotton primarily from other states like Gujarat and Maharashtra, are signing contracts with shippers for delivery in July. Southern mills con sume about 40% of the 25 lakh bales consumed by spinners each month in the country. Industry estimates show that import of cotton this year will jump to touch 20 lakh bales from the estimated 11 lakh bales. "About 16 mills had discussed the prospect of import about a week back and signed contracts for delivery in July. The crucial aspect is to not risk longer con tracts that may extend into October when the new season will begin and fresh supply could pull down domestic prices," said Prabhu Damodharan, secretary of Indian Texpreneurs Federation. He said the hike in prices could impact output by garment exporters who compete with Bangladesh and Vietnam in key markets like the EU. Manikam Ramaswami, who runs the Rs 1,100 crore Loyal Textiles Mills, says 70% of the 30,000 bales for the next three months will be imported.
SOURCE: The Economic Times
Textile industry sources feel that the special package for textile and apparel sector has addressed some of the long pending demands of the industry. These include fixed-term employment, making employees contribution to EPF optional, and additional TUF (Technology Upgradation Fund) subsidy among others. Welcoming the slew of measures, Tirupur Exporters’ Association President A Sakthivel said India would be able to regain its position in apparel exports within three years with policy support. India, which topped in apparel exports between 1995 and 2000, has been pushed to third position, next only to Bangladesh and Vietnam, since the beginning of this century.
Hailing the timing of the package, Southern India Mills’ Association Chairman M Senthilkumar said: “Coming as it does when the industry is battling a long drawn recession due to delayed FTAs and market access limitations, this package will help the entire value chain – from fibre to fabric – owing to increased demand in the long run.” Both Sakthivel and Senthilkumar opined that the decision to bear 12 per cent of the employer’s contribution of Employee Provident Fund Scheme by the Centre for new employees in the garment sector, during the initial three-year period, will benefit the sector to a great extent. Further, the decision towards making EPF optional for employees earning less than Rs. 15,000 will help such workers take more money home. “In the garments sector, there are a large number of employees who work for a short term and prefer to take full wages without deduction,” he said, adding: “This will also make jobs in the textile sector more attractive, especially for women in rural areas.”The introduction of fixed-term employment will facilitate the garments sector manage production demand during peak periods and enable the sector grab export orders, Sakthivel said. Appreciating the increase of subsidy under the Amended TUF Scheme from 15 to 25 per cent, the SIMA chief said: “This will not only bring in new investments, but also motivate existing units to go for forward integration and increasing exports.”
SOURCE: The Hindu Business Line
Indian yarn manufacturer Sutlej Textiles plans to make investments to add to its existing portfolio of value-added niche products – value-added dyed yarn, cotton melange and cotton blended yarn – in the coming years, which will help the company sustain its profit.“The company always looks for value-added niche yarn, and this is the reason there is sustainability in profitability for the last five years,” Dilip Ghorawat, director & CFO of Sutlej Textiles told Fibre2Fashion.com. “The company’s export forms about 26 per cent of its revenue at present, in spite of a challenging global market. This signifies the importance of value-added dyed yarns.”
An investment of approximately Rs 90 crore has already been made in fiscal 2016 for upgrading technology and de-bottlenecking to develop new varieties of yarn in the coming years. It plans to invest Rs 10 crore in R&D for the development of its melange yarn centre. Further, Rs 270 crore worth expansion will be made to increase the capacities of its existing value-added products – dyed yarns, cotton blended yarns and cotton melange yarns. The company will also be introducing some club yarns. Rs 88 crore worth investment will also be made for the expansion of its home textiles category, which contributes around five per cent to the total revenue. These yarns are expected to help in further improving its profitability.
SOURCE: Fibre2fashion
Mandhana Industries a multi divisional textile company spread over multiple geographical locations after receiving several queries with respect to its business operations, demerger of retail business, continuity of Being Human Business and the like in recent days has clarified that there is no disruption to its normal, ongoing business. The company has already received the approval to its scheme of demerger of the retail business from the High Court vide order dated 29 March 2016 and pursuant to the order, the company is in the process of demerging its current retail business into the resulting company, Mandhana Retail Ventures Limited. All current and future retail businesses of Mandhana Industries Ltd will henceforth be carried out in Mandhana Retail Ventures.
Subsequent to approval to the scheme, Mandhana Retail Ventures Limited is in the process of signing a new contract with the Being Human - The Salman Khan Foundation, the specifics of which are under negotiation with them. The company further clarified that the retail business of Being Human continues to do extremely well and plans are in place to ensure robust growth in the business, going forward. Textile company Mandhana Industries is associated with Salman Khan's NGO 'Being Human'. It has an exclusive licence agreement with Being Human - the Salman Khan Foundation - for designing, marketing and distributing Being Human clothing products.Mandhana engages in manufacturing of textiles and garments with state-of-the-art infrastructure. It’s scope of business includes designing, yarn dyeing, weaving, processing, printing and garment manufacturing. Net profit of Mandhana Industries rose 3.8% to Rs 15.93 crore on 5.9% rise in net sales to Rs 472.27 crore in Q4 March 2016 over Q4 March 2015. The small-cap company has equity capital of Rs 33.12 crore. Face value per share is Rs 10.
SOURCE: Yarns&Fibers
Indian Jute Mills Association (IJMA) met the state Labour Minister Malay Ghatak recently and apprised him of the latest problems Beside, requesting him to take some immediate steps, they have urged state government to introduce a Jute Policy along with jute packaging laws for different agro products in the state for sustainability of the jute sector. They also urged to issues order for packing 100 percent potato and rice in jute bags. There is a compulsory Jute Packaging Act (JPM 1987) by the Centre, but there is gradual dilution in orders. The Union Government in the past pointed out corruption and inability to meet the demand of the government by the jute mills. IJMA in their memorandum to Ghatak said that the Centre's recent move to reduce and peg orders at 2.5 lakh bales/month would affect millions of jute cultivators and they would be deprived of proper income. IJMA has also asked the minister to convene a meeting of group of ministers of the state along with the Jute Commissioner to sort out immediate issues. An IJMA official said that they tried to convey that there is an urgent need for a Jute Policy and jute packaging laws for different agro products in the state for long term sustainbility as the Centre remains indifferent to the problems of the jute sector. There is possibility of bumper production of to over 90 lakh bales of raw jute this year.
SOURCE:Yarns&Fibers
Given the slow pace of employment growth over the last two years and India ceding to Bangladesh and Vietnam the space vacated by China in the apparel market—the two are related given the employment-intensity of the sector—the government has done well to come out with a comprehensive package to revive the sector’s competitiveness. This includes greater use of lower-interest-bearing loans for modernising of the sector and increasing the rates of duty drawback given to exporters. The latter looks like a subsidy but, as chief economic advisor Arvind Subramanian points out in his article co-authored with textiles secretary Rashmi Verma (see adjoining column), it will be WTO-compatible since state taxes embedded in exports can be as high as 5% of the total value. At a time when India’s competitors like Vietnam and Bangladesh enjoy duty-free—or will, once various trade pacts come into force—access to key markets like the US and the EU while Indian exporters face a 9-10% duty, this needs to be completely eliminated. Section 80JJAA has also been amended to ensure the textile sector that has seasonal employment can also get tax benefits. If all goes according to plan, the government will give out sops worth R18,000 crore, but direct and indirect employment will rise by 1 crore and exports $30 billion over three years.
According to the government, in another three years, the package will help India beat Bangladesh and Vietnam—that may be a stretch since there are several other disadvantages Indian exporters face including infrastructure weaknesses. Even after today’s changes on labour, textile firms will be reluctant to expand beyond 100 permanent workers—presumably Chapter V-B applies only to them—since closing down is difficult beyond that. Which is why, as Subramanian-Verma point out, 78% of Indian apparel firms employ less than 50 workers and just 10% have more than 500 workers—the comparable numbers in China are 15% and 28%—which is what leads to poorer quality and productivity in India.
What is potentially more significant are the changes made in the employment policy—while this has been done only for textiles, if the move delivers expected results, it may well be replicated across other sectors. While the government already bears nearly 70% of the employers’ contribution to the EPFO for new employees, it will now bear all of it for the first three years—since this means workers can get an additional 12% in their take-home salaries, it is a big plus for moving to the formal sector. EPFO contributions are also to be made voluntary for those earning under R15,000 a month—once again, this makes a big difference to chitthiwali and haathwali (CTC and take-home) salary, and is an incentive to move away from contract jobs. The biggest boost is the concept of fixed-term employment, introduced for the first time, which allows firms to meet seasonal requirements through the formal job market instead of, as now, hiring workers through contractors who generally indulge in all manners of malpractice. Though the tough Chapter V-B type of changes will probably be left to the states—Rajasthan and Madhya Pradesh have okayed this for units employing up to 300 persons and Gujarat allows it for units in NIMZs—India could well be on the cusp of some sensible labour reform.
SOURCE: The Financial Express
The long-pending GST bill will be taken up in the coming Monsoon session of Parliament, Union Minister Nirmala Sitharaman said, expressing confidence that it will be passed. “Finance Minister (Arun Jaitley) has said that in coming Mooson session we will bring the bill (in the Parliament) and we have full expectation that we will pass it,” the Commerce and Industry Minister told reporters here.She said Jaitley is very focussed on GST issue and is talking to every political party for support.“He (Jaitley) has talked to all the Finance Ministers of the states at GST council meeting in Kolkata a week before,” Sitharaman said.
Asked whether the PDP-BJP government in J&K has succumbed to the pressure of separatists and changed the industrial policy to drop non-State subjects from setting up industrial units in the state, she said “I have not seen policy as yet. I will look into it once I go through it.” Asked about the government’s stand on the issue of outsiders not given permission to set up a unit here, she said “let me study”. When referred to price rise and inflation during BJP government, the minister said “it is not truth. We are working to being prices further down.” Replying to another question on reopening of new LoC points for trade in J&K, she said “the border trading points are being decided by countries concerned and also the MEA, Home and Commerce Ministries. If there is any proposal coming will be definitely look into it”. On the issue of drop in exports, she said “we launch interest subsidisation programme to deal with it.
SOURCE: The Financial Express
Placing his bets on India achieving 8 per cent growth in the current fiscal, Shaktikanta Das is optimistic of the economic activity picking up rapidly if the Constitutional amendment on GST is passed in the upcoming Monsoon Session of the Parliament. Bloomberg TV India caught up with the Economic Affairs Secretary.
The government seems to be on a reform spree. With a good monsoon and hopefully the GST being pushed, are we looking at a pickup in economic activity?
Once the GST is passed, the kind of sentiment it will create and the kind of economic activity it will immediately generate will be momentous. I want to clarify that once the GST is passed, all corporates will have to reengineer and reorient their business. They have to change their entire accounting programmes. They have to train their staff. So there will be a lot of economic activity around that. And growth is not just about real economy, it is also about sentiments. So once the GST amendment is through, it will give a big boost to the sentiments. So all these put together, I think, we should be able to touch 8 per cent growth in the current fiscal.
How is the road map panning out for the Monetary Policy Committee? Will the members be selected before August?
The Act and necessary amendments are in place now. The draft rules, which we have finalised, will have to be notified. Once it is legally vetted within the next few days, we propose to issue the draft rules relating to the Monetary Policy Committee and that aspect of the RBI Act. And once the rules are issued and notified, then the selection committee process will get initiated. Our effort is to expedite the whole thing. Whether it is done before the first week of August — that we will have to wait and see. The selection of the three nominees will be decided by the government.
Are we ready for Brexit? Or are there still a little bit of jitters?
There are no jitters. But we are fully alive to the issue arising out of Brexit. Opinion polls in the UK have been behaving like a seesaw. But at the moment, it looks like the vote will be in favour of status quo.But so far, as we in India are concerned, we are fully prepared for all eventualities. And we have to remember that our central bank has a very robust and strong reserve position — about $360 billion. We also have to remember that in terms of trade import-export, we won’t be impacted much. The expectation is, if Brexit happens, it will affect the trade between the EU and Britain, which in turn will affect the British economy more, because it is a service-based economy.
Analysts say that if Brexit happens, it will lead to a depreciation of the pound-sterling vis-à-vis the dollar. If that happens, all currencies which are indexed to the dollar could be affected. In fact, in most of the emerging economies there could be some fluctuations in currencies.But given the fact that India today is a very attractive FDI as well as FPI destination, a lot of forex is coming into India and we have a strong reserve position; the country is appropriately placed to deal with the situation. So there is no cause for alarm. But at the same time, let me say that the Finance Ministry and the Reserve Bank are keeping a very close watch over the situation. And whatever measures are required, they will be taken at the appropriate time.
SOURCE: The Hindu Business Line
The Export-Import Bank of India (Exim Bank) has sought additional equity infusion from the Centre this fiscal. The specialised lending institution has so far received about Rs. 500 crore and is seeking an additional Rs. 800 crore. According to Yaduvendra Mathur, CMD, Exim Bank, growth in FY17 may be “muted” due to equity constraints and also because of the new India Development Economic Assistance Scheme (IDEAS) guidelines. The norms were released in 2015. Last fiscal, Exim Bank disbursed about Rs. 50,000 crore, clocking a growth of around 18 per cent; it secured around Rs. 1,300 crore in fresh equity from the Centre. “Disbursals could be the same as last year. There will be challenges this year. We are requesting the government to inject more equity. We got only Rs. 500 crore and we have requested the Finance Ministry to enhance it to Rs. 1,300 crore,” he told newspersons on the sidelines of the Banking Conclave organised by the Federation of Indian Chamber of Commerce and Industry (FICCI). On fund raising, the CMD said the bank was planning to raise “a similar amount as last year.” Last fiscal, Exim Bank raised around $2 billion through dollar bonds, including $500 million through Green Bonds. “Every year we look to raise $2-3 billion,” he added.
Exim Bank is working on a $10-billion line of credit to Africa, Mathur said. Last year, the bank had financed around 26 overseas ventures worth around Rs. 5,264 crore.He further pointed out that ‘Make in India’ was being seen as an initiative where Indian companies could go out and acquire global brands. The global slippages in many countries should be seen as opportunities. Exim Bank is also exploring funding mechanisms for ships (vessels) for overseas trade. It was planning to collaborate with the Shipping Corporation of India in this regard.
Rampal power plant
On the viability of the Rampal coal power plant in Bangladesh, Mathur said the institution was taking a “reputation risk”. Exim Bank was backed by a sovereign guarantee of Bangladesh and counter-guarantee from the Indian government. As a result, the risk on its balance sheet was substantially reduced. The Rampal power plant has faced opposition related to ecological issues and economic viability. Exim Bank has an exposure of about $1.5 billion in the project.
SOURCE: The Hindu Business Line
The Andhra Pradesh State Financial Corporation (APSFC) has recently cut interest rates and is focusing on extending loans to the MSMEs, the service sector and commercial and residential projects, according to Managing Director WVR Murthy. He was speaking here on Wednesday after launching a business development campaign for the four districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari. He said 53 proposals worth Rs. 229 crore had been received from entrepreneurs and others in the four districts and “nearly 70 per cent of the amount will be sanctioned and disbursed.”
Number of proposals
He said the maximum number of proposals (nine) were in the food processing and agri-business sector, amounting to Rs. 50 crore , followed by software units (eight) amounting to more than Rs. 40 crore. He said the APSFC had recently cut interest rates by 50 points and the minimum lending rate at present was 12.5 per cent, which is higher by one per cent or so more than that offered by commercial banks. “We borrow from banks and lend it to the units. We do not have refinance facility,” he said. Last year (2015-16), the APSFC had disbursed Rs. 450 crore and the target for the year is Rs. 750 crore. “It’s ambitious but we are confident of achieving it,” he said. Murthy said business development campaigns would also be held at Vijayawada on Friday and at Tirupati on June 30. He said the APSFC was rated to be the best in the country. He said the process of bifurcating the APSFC was going on, with a separate division for Telangana. Recently, it had set up an office in Kakinada and one more soon in Chittoor.
SOURCE: The Hindu Business Line
The rupee closed little changed after two days of losses as the central bank said it would take measures to tackle volatility arising from the U.K.’s referendum on membership in the European Union. The Reserve Bank of India announced it would take steps including liquidity support to ensure “orderly conditions” in the financial markets, while the National Stock Exchange Ltd. said it is geared to handle an increase in trading activity on Friday. The rupee closed steady at 67.48 per dollar in Mumbai, prices from local banks compiled by Bloomberg show. The dollar weakened as traders took cues from betting odds that point to the U.K. voting to stay in the European Union, rather than opinion polls that show the referendum is too close to call. “RBI’s statement has given a lot of confidence as it reflects that they are vigilant and recognize the needs of the market,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services Ltd. in Mumbai. “There’s relief that Britain may have more people trending toward remain, which is strengthening other currencies.” The currency weakened 0.6 percent this week as central bank Governor Raghuram Rajan’s impending departure added to the anxiety about Thursday’s so-called Brexit referendum. The rupee has been Asia’s worst performer this year. The yield on bonds due January 2026 dropped two basis points to 7.48 percent in Mumbai, prices from the central bank’s trading system show.
SOURCE: The Bloomberg
Arvind Subramanian had in March 2013 suggested to the United States to address frictions with India over its protectionist measures through World Trade Oranization (WTO) dispute settlement procedures. “The US should not be reticent in this regard. India has an excellent record of compliance with WTO rulings against it,” Subramanian had said in his testimony to the US legislature. At the time, he was a Senior Fellow at the Washington-based Peterson Institute for International Economics. On Wednesday, Bharatiya Janata Party leader Subramanian Swamy demanded the dismissal of the chief economic advisor (CEA) over this. “Who said to US Cong on 13/3/13 the US should act against India to defend US Pharmaceuticals interests? Arvind Subramanian MoF !! Sack him!!!,” Swamy said on Twitter, the micro blogging site. Subramanian had at the time also said there was merit in initiating a deeper bilateral trade integration between India and the US, as a framework for giving recognition to the broader strategic imperative of closer cooperation between the two countries, for pursuing further liberalisation in both and for reversing the discrimination each was inflicting on the other. He’d told the US Congress that after growing rapidly in recent times, India was encountering a bout of severe turbulence. “On the economic front, growth has decelerated sharply, from nine per cent annually to 4.5 per cent. And, macro economic vulnerabilities — high fiscal deficits (nine per cent of gross domestic product), stubbornly elevated (double-digit) inflation, and a deteriorating external balance (over four per cent of GDP) — have been mounting.”
Adding: “In response to adverse developments, the government has undertaken, since late 2012, major domestic economic reforms. Reforms have also included an ambitious opening of the economy to foreign direct investment and to foreign financial investors. Indeed, since the global financial crisis, few countries have opened up to foreign capital to the extent that India has,” Subramanian had then said.
Plus: “Significantly, and reflecting a domestic bipartisan consensus, there have been no major macro economic reversals of opening to foreign trade and capital. These reforms have come against the backdrop of a longer-term trend of surging Indian trade and foreign direct investment, with enormous benefits for foreign and American business,” he had said.
However, US business faced three major challenges in India. Two challenges common to all foreign business were: First, the weak and uncertain regulatory and tax environment that affects the civil nuclear industry, infrastructure, pharmaceuticals, and more broadly the operations of foreign multinationals in India, Subramanian had said.
Second, although the broad macroeconomic picture is one of opening and surging trade and investment, protectionism in selected sectors had re-surfaced, he had argued. India is seeking increasing recourse to localisation—in banking, telecommunications, retail, and solar panels, among others—which favours domestic providers of inputs and equipment over foreign providers, he had said.“Thus, broad trade and macroeconomic policies toward foreigners are moving in the right direction but sectoral policies have experienced setbacks.” Later, in May 2014, Subramanian gave another testimony to the United States Trade Representative (USTR). He had suggested the USTR desist from designating India as a ‘Priority Foreign Country’ (a pejorative term in the relevant US law) over an allegedly lax intellectual property rights (IPR) regime in the largest South Asian country. The label would have triggered trade sanctions against India.
SUBMISSION OF ARVIND SUBRAMANIAN TO THE US CONGRESS IN 2013
SOURCE: The Business Standard
Ahead of the ‘Brexit’ referendum scheduled for June 23, an Assocham Assessment Paper has said the ‘Leave’ vote for Britain from the European Union would surely unnerve the global financial markets, leaving strong ripples for the Indian markets as well, necessitating a contingency plan by the government and the Reserve Bank of India.Since it is expected to be a close call between the ‘Leave’ and ‘Remain’ votes in the referendum which has emerged as a major risk related event for the global economy, the Assocham paper has said , “ there could be an upheaval in the financial markets out of sheer panic, at least in the short term”.It said the Brexit event is coinciding with the concerns over a possible outflow of $20 billion due to redemption of the FCNR deposits , though the current account situation at this point of time is quite comfortable thanks to lower bill of imported crude oil for the last over 18 months. “With London being a nerve centre for the global firms, a fear factor has gripped the entire financial world. As a key emerging market and the one which is being preferred by the global fund managers, India could witness wild fluctuations or large outflows in sync with an overall trend. That is something to watch for,” the chamber said. It expected the RBI to be ready with a contingency plan for effective intervention if there is a pressure on the dollar supply because of outflows of funds from the emerging markets. “However, in the medium to long term, the funds shuffled in an uncertain Britain and European markets could find way into the Indian markets, but in the immediate term, anything can happen and as a credible economy, we have to be ready and be on top of the situation,” Assocham said, adding it has full confidence in RBI Governor Raghuram Rajan to deal with the fast unfolding global events.
When it comes to merchandise trade and foreign direct investment (FDI) , there are no big issues in the short to medium term as in the case of ‘exit’ , the Britain and EU would have to negotiate the terms of separation over a period of two years. That would give enough time to India policy makers and industry to re-align with the changing European landscape, the paper observed. According to one school of argument, UK would find it easier to negotiate and sew up a Free Trade Agreement with India and similar arrangements with China and other fast emerging economies, unlike protracted India-EU trade negotiations stuck for over nine years without any tangible results. The India-EU trade deal is stuck also because of red tape and complicated bureaucracy and absence of convergence among different EU member countries’ interest. “On the other hand, a trade opening pact can be reached with Britain within a matter of months”, the Assocham paper said.
SOURCE: Fibre2fashion
The India-China Financial Dialogue due to be held here between Finance Minister Arun Jaitley and his Chinese counterpart Lou Jiwei next week has been cancelled. Jaitley is due to arrive here today on a five-day visit to take part in a host of events including the planned eighth financial dialogue. But the dialogue meet stands cancelled, informed sources said. Officials explained that the meet was cancelled as Department of Economic Affairs Shaktikanta Das could not attend the meeting. Till now the two countries held seven rounds of financial dialogues but all of them were headed by Finance Secretaries of both sides. This is the first time it was elevated to level of Finance Ministers of both countries. The seventh dialogue was held in New Delhi in 2014. It was officially circulated earlier that the dialogue would be held between the two ministers on June 27. The dialogue enables the two countries to annually review and discuss a wide gamut of international, bilateral issues for strengthening and deepening economic and financial cooperation between the two countries. It was conceptualised in 2003 and the framework was formalised through an MoU signed in April 2005. The cancellation of the June 27 meeting comes in the backdrop of India-China differences over New Delhi's admission into the Nuclear Suppliers Group (NSG) at the group's meeting in Seoul. During his visit to China, which is the first after he took over as finance minister, Jaitley is due to address meetings of bankers and wealth fund managers and business investors meeting to scout for investments in India. He is also due to attend the Board of Governors meeting of the China-sponsored Asian Infrastructure Investment Bank (AIIB) in which India along with 56 countries are members.
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$ 47.51 per barrel (bbl) on 22.06.2016. This was higher than the price of US$ 47.02 per bbl on previous publishing day of 21.06.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3209.45 per bbl on 22.06.2016 as compared to Rs. 3172.68 per bbl on 21.06.2016. Rupee closed weaker at Rs. 67.56 per US$ on 22.06.2016 as against Rs. 67.48 per US$ on 21.06.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 22, 2016 (Previous trading day i.e. 21.06.2016) |
Pricing Fortnight for 16.06.2016 (28 May, 2016 to June 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
47.51 (47.02) |
47.61 |
|
(Rs/bbl |
3209.45 (3172.68) |
3191.77 |
|
|
Exchange Rate |
(Rs/$) |
67.56 (67.48) |
67.04 |
SOURCE: PIB
On Jun 17, 14 financing institutes and 15 textile and apparel companies like Litai Silu and Fuli Zhenlun in Xinjiang signed financing agreement, with signed value staying 10.4 billion RMB. According to related report, the preferential policies released by China government and Xinjiang local government has substantially boosted the development of textile and apparel industry in Xinjiang. In 2015, textile and apparel companies increased by 382 in Xinjiang, cotton textile capacity added by 3.46 million spindles, and new apparel capacity rose by around 90.52 million pieces. Profit of above-designated textile mills in Xinjiang totaled around 1.46 billion RMB in 2015, up 1.6 times compared with 2014, and the payable added value tax reached 0.567 billion RMB, up one time compared with 2014. Added employment was around 97,000 in 2015. In 2015, the loans released by banks in Xinjiang to textile and apparel industry exceeded 10 billion RMB for the first time, staying 13.619 billion RMB throughout 2015. In 2016, the release of credit to textile and apparel industry keeps edging up stably in Xinjiang. By end-Mar 2016, the loan balance of textile and apparel sector in Xinjiang reached 11.279 billion RMB, up 5.732 billion on annual basis, with growth rate staying 103.3%.
SOURCE: The CCF Group
Vietnam is unlikely to derive the maximum benefit from the Trans-Pacific Parternership trade pact, as few Vietnamese businesses have plans to switch from subcontracting to direct exports or reduce their heavy reliance on feedstock imports or increase exports of processed goods to improve value addition. Nguyen Thi Thu Trang, head of the VCCI’s WTO Center, said that according to a survey conducted of 1,500 enterprises by the Vietnam Chamber of Commerce and Industry (VCCI) in April found that only 11.6 percent plan to change their production mode in the next three years to improve value addition, Vietnamese firms are not involved in the value chains of many products and merely do outsourcing for foreign partners. All the production stages that bring the highest value-addition to a product, such as designing or making the most important parts, are not done in Vietnam, foreign firms in Vietnam only assemble or package products. Thus, their added value remains low. They import most feedstock for production for exports, and now the TPP’s strict rules on origin will be a hurdle. Import taxes in many large economies like the US, Canada, Australia, and Japan, the biggest buyers of Vietnamese textiles, will be cut from 17-32 percent to zero. But there will be a "yarn-forward rule" stating that every piece of thread, button and zipper in a garment will have to come from TPP signatories to qualify for the tariff exemptions. But most of Vietnam's yarn and components are sourced from China and South Korea, both non-TPP countries, making much of Vietnam's products ineligible for the exemptions.
According to Luong Van Thu, director of a garment firm in the northern Hung Yen Province, there will not be many changes after the TPP comes into effect; they will continue to implement outsourcing contracts. It is difficult for them to do free-on-board exports because of the weak supporting industries.They have to rely on foreign supply of materials, which could mean great price fluctuations and unstable supply. However, Vietnamese garment manufacturers can do little since they lack the financial strength to invest in their own yarn and textile facilities. A garment company requires an investment of millions of dollars, which increases to billions of dollars for a textile and dying firm, industry insiders said. In the agricultural sector too, businesses are not keen on investing in processing technologies, which are expensive, and focus on exporting raw materials with low added value. Bui Chi Buu, former head of the Southern Institute for Agricultural Technology, blamed this on enterprises’ lack of long-term business strategies.
Besides shallow pockets and lack of long-term business strategies, poor infrastructure and low skills are also barriers to enterprises increasing output, Trang of VCCI said. However, enterprises have made some preparations, including offering more training to employees and expanding markets, to tap opportunities brought by the trade pact. The VCCI’s survey found that 88.6 percent of local firms know about the TPP, and nearly 96 percent said free trade agreements like the TPP would help local firms participate more in the global value chain. The TPP is expected to boost exports within the bloc of 12 Pacific-rim nations, which account for 40 percent of the global economy.
Negotiations have been recently completed and the pact is now awaiting ratification by the member countries' legislatures. Many foreign-owned and large corporations based in Hanoi and Ho Chi Minh City plan to improve their production capacity to capitalize on export opportunities offered by the deal, which scraps tariffs in many markets, including the US, the world’s biggest economy. More than 47 percent of the firms polled plan to improve their executives’ management skills, 56 percent hope to improve their workers’ vocational skills and 57.2 percent will try to access new markets. Malaysian apparel company United Sweethearts is already planning a second factory in Vietnam, and the TPP would accelerate its plans, its managing director Tang Chong Chin said. The company, which exports more than two-thirds of the clothing it makes to the US, said revenues could double within five years if tariffs are scrapped. Currently, countries without free trade agreements with the US face tariffs of 10 percent or higher depending on the type of apparel.
SOURCE:Yarns&Fibers
Wrap knitting specialist LE Textile (previously known as Elastic Textile Europe) has developed a special collection based on Tencel lyocell fibre, offering a soft, supple handle, the typical look of a natural fibre product, and outstanding comfort. These soft fabrics also offer advantages for the environment. Focusing on the environmental aspects in its use of materials and production processes, LE Textile first used Lenzing’s Tencel fibres, instead of eco-cotton, in 2014. The first prototype was premiered at Interfilière in Paris in July 2014, and other production-ready products were shown at the next Interfilière in January 2015. Many conversations were held at these fairs concerning the collections made from Tencel. Many new ideas gathered from these conversations were incorporated into the further development of the Tencel collection. The fabrics so developed were shown in the Show Room at the Fabric Start exhibition in Munich in February this year. Lace raschel machines and high-speed raschel machines in the RSE series are used to produce the extremely comfortable, environmentally friendly fabrics made from Tencel fibres. Top-quality spun yarns having first-rate mechanical properties are used. These ensure that fibre fly does not cause any problems during processing. The previously used Dorlastan Type V550 elastomer was used to provide elasticity in the sustainably produced warp-knitted textiles. This product from Asahi Kasei was granted the Environmental Compatibility Certificate by the Hohenstein Laboratories in November 2013. A special line in the collection also contains polyamide to ensure that the fabrics can mould to the body.
Five types of innovative fabrics can be produced from the yarns, and their samples will be shown at the next Interfilière fair from July 9-11, 2016, in Lyon, at stand number 5L41 in the Fabrics section. The innovative fabrics include smooth, two-way-stretch fabrics having a dense surface and soft handle, produced on an RSE raschel machine in a gauge of E 28; lightweight, all-over-patterned lace produced on a lace raschel machine in a gauge of E 24; tulle having two different performance profiles, depending on the percentage of elastane used, and exhibiting a distinct, natural look, also produced on an RSE raschel machine in a gauge of E 28; raschel-knitted fabrics with geometric patterns and two-colour effects produced by the package dyeing of polyamide and Tencel; and fabrics with a ribbed construction on the surface and two-way stretch, produced on an RSE 5 EL in a gauge of E 28.
SOURCE: The Global Textiles
Global non-profit environmental organization, Textile Exchange has released the Responsible Wool Standard (RWS), an independent, voluntary standard. On farms, the certification ensures that sheep are treated with respect to their five freedoms and ensures best practices in the management and protection of the land. Through the processing stages, certification ensures that wool from certified farms is properly identified and tracked, according to RWS. The Standard is intended to be a global benchmark for animal welfare and land management practices in sheep farming. The goals of the standard are to provide the industry with the best possible tool to recognize the best practices of farmers around the globe and ensure wool comes from responsibly treated sheep and from farms with a progressive approach to managing their land. The Standard is also intended to be a global benchmark to build communication and understanding between farmers, consumers and brands and to provide a robust chain of custody system from farm to final product to ensure consumer confidence in RWS products.
In March 2014, H&M and Textile Exchange started an International Working Group (IWG) to develop the Responsible Wool Standard. The IWG includes representation from a broad spectrum of interested parties, including animal welfare groups, farmers, wool suppliers, and brands and supply industry associations, covering both apparel and home categories. Developed through an open, multi-stakeholder process, the Standard is a global benchmark for animal welfare and land management practices, while maintaining applicability in regions all over the world. The Standard ensures sheep are raised with respect to their Five Freedoms, with strong welfare principles in all aspects of farming. The Standard also ensures farmers follow best practices in land management. The Standard development process began with hours of research of existing standards. In late 2015, pilot audits began in key sheep raising regions in the world, including Australia, New Zealand, Argentina, South Africa, Austria, the US and the UK, each providing valuable information used to refine the requirements , and certification approach. Two Public Stakeholder Review periods were held to invite feedback from anyone interested in the Standard. The final version was approved by the Steering Committee of the International Working Group prior to its release. There are currently three Certification Bodies that are in process of Textile Exchange approval: Control Union, LETIS, and NSF.
SOURCE: Fibre2fashion.
Protectionist and trade restrictive measures by G20 countries touched a new high between mid-October of last year and mid-May this year, the World Trade Organisation (WTO) has said. G20 economies applied 145 new trade-restrictive measures, equating to an average of almost 21 per month, a significant increase over the 17 per month recorded in the previous reporting period. "This is the highest monthly average registered since the beginning of the monitoring exercise in 2009, which helps explain that the overall stockpile of restrictive measures introduced by G20 economies grew by 10% during the review period," the WTO said in a report released on Tuesday. The main factor behind the rise in trade-restrictive measures was an increase in the number of trade remedy investigations by G20 economies. Anti-dumping actions account for the majority of restrictive measures imposed, with most of the investigations concentrated in sectors such as metals (particularly steel) and chemicals. G20 members also imposed more distortive measures in the form of government support for sectors such as infrastructure, agriculture and export-specific activities.
Terming this trend "worrying", WTO Director General Roberto Azevedo said, "A rise in trade restrictions is the last thing the global economy needs today, with GDP growth sluggish and 2016 expected to be the fifth year in a row that trade has expanded by less than 3%". Of the 1,583 trade-restrictive measures, including trade remedies, recorded for G20 economies since 2008 by this exercise, only 387 had been removed by mid-May 2016. The total number of restrictive measures still in place now stands at 1,196. "These trade-restrictive measures, combined with a notable rise in anti-trade rhetoric, could have a further chilling effect on trade flows," he cautioned, since the prospects for world trade in 2016 and beyond remain uncertain. The recent WTO trade forecast predicted merchandise trade volume growth of 2.8% in 2016, unchanged from 2015. The organisation noted that although some G20 economies have been eliminating trade restrictions, the rate by which this is done remains too low to dent the stockpile of such measures. Of the total number of trade-restrictive measures recorded for G20 economies since 2008, the share of eliminations, or roll-back, make up less than 25% whereas the restrictions cover over 6% of all G20 imports and 5% of global imports. The report also found that during the reporting period a total of 100 measures aimed at facilitating trade were taken—a monthly average of 14 measures. "This represents an increase compared to the previous reporting period, but remains below the average trend observed since 2010," it said. In the midst of uncertainty for global trade, the multilateral organisation asked the G20 economies to lead by example in the fight against protectionism by rejecting new trade-restrictive measures and rolling back existing ones.
SOURCE: The Economic Times
Next July has been set by the World Trade Organization (WTO) as a date for processing Sudan’s official application on joining the 160-member international organization.Sudan’s official application to join the most powerful legislative and judicial body regulating international trade has been delayed for more than 22 years for political and economic reasons. The application will be handed over by Minister of International Cooperation Kamal Hassan Ali. To join, candidate countries have to offer to cut tariffs, change their laws to guarantee the rights of importers and exporters under WTO rules, commit to implement 24 trade agreements and lift restrictions on imports and exports.
Sudan established a department in the Ministry of Trade to manage WTO membership process and allocated a huge budget for efforts to join WTO.Vice President Abdel Rahman Ali confirmed that Sudan’s delegation to Geneva is mobilizing support to its official application for joining the WTO.As the new member has to apply equally to all WTO members, “Sudan’s delegation will meet International Trade Center Director, WTO membership officials, representatives of United Nations Security Council permanent members and the representatives of Brazil, India and China,” Ali said. The government in Sudan has assembled a higher committee, encompassing all economic sectors as to research and resolve troubles faced by national producers. The upcoming stage in Sudan is anticipated to hold a significant step set for providing resources and opportunities on increasing the quality on national agricultural and industrial products, and services. It is worth mentioning that the International Cooperation Minister in his statement told the press that each of the financial and economic sectors in Sudan is fully prepared to fulfill WTO requirements. The Sudanese government has arranged for an economic program covering the next four years, and which especially attends the rate of production in each of the agricultural and industrial sectors. The government eased red tape procedures on investment, making it easier. Moreover, new mechanisms for settling disputes were founded.
SOURCE: The Albawaba
The 30-day countdown to Liberia’s WTO membership was activated when Mr Axel Addy, Liberia’s Minister for Commerce and Industry, deposited the instrument of acceptance of the country’s Protocol of Accession with Mr Timothy Yeend, Chief of Cabinet, who received it on behalf of Director-General Roberto Azevêdo. The country’s Protocol of Accession was ratified by Liberia’s Parliament on 14 June. Liberia applied for WTO membership in 2007 and members of the Working Partyconcluded the negotiations on 6 October 2015. Liberia’s commitments are available here. WTO members officially approved Liberia’s accession during a special ceremony at the Nairobi Ministerial Conference on 16 December 2015. Liberia’s President, Ellen Johnson Sirleaf, co-signed the Protocol of Accession with DG Azevêdo. Liberia is the 35th government and the eighth least-developed country (LDC) to accede to the WTO through negotiations since the WTO was established in 1995. LDCs represent a fifth of the WTO membership.
SOURCE: The Hellenic Shipping News
Madagascar has joined the growing majority of WTO members that have ratified the WTO’s Trade Facilitation Agreement (TFA). Mr Solofo Andrianjatovo Razafitrimo, Madagascar’s Minister-Counsellor and Chargé d’Affaires in Geneva, presented his country’s instrument of ratification to WTO Director-General Roberto Azevêdo on 20 June.Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area. The TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement. With the acceptance by Madagascar, the number of TFA ratifications now stands at 83, meaning the WTO has received over three-quarters of the ratifications needed to bring the Agreement into force, according to WTO. Madagascar is the tenth African nation and the eighth least-developed country (LDC) to ratify the TFA.
In addition to Madagascar, the following WTO members have also accepted the TFA: Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states), the former Yugoslav Republic of Macedonia, Pakistan, Panama, Guyana, Côte d'Ivoire, Grenada, Saint Lucia, Kenya, Myanmar, Norway, Viet Nam, Brunei, Ukraine, Zambia, Lesotho, Georgia, Seychelles, Jamaica, Mali, Cambodia, Paraguay, Turkey, Brazil, Macao China, the United Arab Emirates, Samoa, India, the Russian Federation, Montenegro, Albania, Kazakhstan, Sri Lanka, and St. Kitts and Nevis. The TFA broke new ground for developing countries and LDCs in the way it will be implemented. For the first time in WTO history, the requirement to implement the Agreement was directly linked to the capacity of the country to do so. In addition, the Agreement states that assistance and support should be provided to help them achieve that capacity.
A Trade Facilitation Agreement Facility (TFAF) was also created at the request of developing and least-developed country members to help ensure that they receive the assistance needed to reap the full benefits of the TFA and to support the ultimate goal of full implementation of the new agreement by all members. On 8 June the WTO hosted an experience-sharing event to help members identify best practices and the challenges faced by WTO members in establishing or maintaining national trade facilitation committees. It was the first such event to discuss how best to implement specific commitments under the TFA. Experts from more than 20 countries and five international organizations made presentations at the workshop; the presentations and other information on the event are available here.Implementation of the TFA has the potential to increase global merchandise exports by up to $1 trillion per annum, according to the WTO’s flagship World Trade Report released on 26 October 2015. Significantly, the Report also found that developing countries will benefit significantly from the TFA, capturing more than half of the available gains.
SOURCE: The Financial
The International Monetary Fund trimmed its forecast for U.S. economic growth this year, but IMF Managing Director Christine Lagarde still said the world's largest economy "is in good shape." In its annual assessment of the U.S. economy, the IMF predicted 2.2 percent growth this year, down from last year's 2.4 percent figure, and also lower than the 2.4 percent projection for 2016 the Washington-based agency made two months ago. Lagarde predicted the U.S. unemployment rate would remain below 5 percent. The U.S. economy is off to a slow start this year, up only eight-tenths of a percent in the January-to-March period, with weak consumer spending, which accounts for 70 percent of the U.S. economy, one of the prime factors in narrowing the economic advance.
Economic impediments
Lagarde said she sees four forces holding back U.S. economic growth: declining labor force participation, falling productivity, income inequality in the country, and high levels of poverty.
"The workforce is aging," she said, adding that the productivity that once advanced by 1.7 percent annually before the 2008 recession now is only edging ahead by four-tenths of a percent each year. She said there is growing "income insecurity" in the United States, a decline in living standards that has left nearly 15 percent of the population — about 47 million people — living below the poverty line. Lagarde said if the problems are left unchecked, they will "corrode the underpinnings" of U.S. growth. She called for U.S. officials to boost the official $7.25 national hourly minimum wage, a figure some states and cities already are increasing to as much as $15 an hour. Lagarde also called for paid maternity leave, noting the United States alone among the world's wealthy nations does not provide such a benefit.
SOURCE: The Voice of America
