INTERNATIONAL
Textile Raw Material Price 2016-06-27
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
999.10 |
USD/Ton |
0% |
6/27/2016 |
|
VSF |
2037.50 |
USD/Ton |
-0.15% |
6/27/2016 |
|
ASF |
1904.49 |
USD/Ton |
0% |
6/27/2016 |
|
Polyester POY |
985.50 |
USD/Ton |
0% |
6/27/2016 |
|
Nylon FDY |
2191.68 |
USD/Ton |
-0.68% |
6/27/2016 |
|
40D Spandex |
4307.78 |
USD/Ton |
0% |
6/27/2016 |
|
Nylon DTY |
2418.40 |
USD/Ton |
0% |
6/27/2016 |
|
Viscose Long Filament |
5636.38 |
USD/Ton |
0% |
6/27/2016 |
|
Polyester DTY |
1224.32 |
USD/Ton |
0% |
6/27/2016 |
|
Nylon POY |
2048.08 |
USD/Ton |
0% |
6/27/2016 |
|
Acrylic Top 3D |
2078.31 |
USD/Ton |
0% |
6/27/2016 |
|
Polyester FDY |
1121.53 |
USD/Ton |
0% |
6/27/2016 |
|
30S Spun Rayon Yarn |
2720.70 |
USD/Ton |
0% |
6/27/2016 |
|
32S Polyester Yarn |
1662.65 |
USD/Ton |
0% |
6/27/2016 |
|
45S T/C Yarn |
2425.96 |
USD/Ton |
0% |
6/27/2016 |
|
45S Polyester Yarn |
1798.69 |
USD/Ton |
0% |
6/27/2016 |
|
T/C Yarn 65/35 32S |
2116.10 |
USD/Ton |
0% |
6/27/2016 |
|
40S Rayon Yarn |
2871.85 |
USD/Ton |
0% |
6/27/2016 |
|
T/R Yarn 65/35 32S |
2191.68 |
USD/Ton |
0% |
6/27/2016 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
0% |
6/27/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
6/27/2016 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
6/27/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
6/27/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
6/27/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15115 USD dtd.27/06/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India’s textile exports have come down to $40 billion in FY 2016, when compared to $41.4 billion exports in FY 2015. The textile shipments are far below the target set by the Union Textile Ministry at $47.5 billion for the previous fiscal year. Even then, the ministry has taken it up as a challenge to achieve $48.5 billion exports this fiscal year. The Union Cabinet has recently approved Rs.6000-crore special package for the promotion of exports in Textile and Apparel sector. With this package, the government plans to achieve a cumulative increase of textile exports to $30 billion in the next three years. To achieve this ambitious target, the government should encourage the new manufacturers, Telangana Cloth Merchants Association President Ammanabolu Prakash said. He spoke to the media after participating in the Power Series Conclave, Edition 1, 2016-17, organised by The Dollar Business Bureau.
Speaking about the challenges and opportunities of the sector, he said, “Currently, the textile exports from the country are not up to the mark. Unless new manufacturers are encouraged with aggressive policies, it is not possible to achieve this target. The sector definitely has huge potential, scope and opportunities, but the government’s role is more important.” “The cost of exports goes up tremendously due to various taxes. The manufacturer should bear the taxes at multiple levels. There are taxes on cotton, yarn, chemicals, fabric etc. The Goods and Services Tax (GST) should be an answer to all these woes,” he explained. “According to World Bank, India ranks 130 out of 189 countries in ease of doing business. This clearly shows where the country lags behind. There is a restriction at every level of textile manufacturing. A manufacturer should be offered online licenses instead of seeking approvals from 10-15 government departments. The government should also provide tax and production incentives to boost textile manufacturing in the country,” he said.
On the e-commerce boom, Prakash said, “The weavers from the state of Telangana are mostly uneducated and confined only to local markets. Though few players are encouraging them to sell their products online, they are not yet capable to tap the e-commerce markets. Exporting to other countries is also a big deal for them due to documentation, transportation and other hurdles.” Textile manufacturing is mostly unorganised and labour oriented, particularly in this State. The Central and State governments should update the labour laws as per the global standards, he said.
SOURCE: The Dollar Magazine
Garment exporters are pitching for a trade treaty with Britain after it voted to leave the European Union (EU). "A free trade agreement (FTA) is paramount to boost our exports, including garment exports (to the UK)," A. Sakthivel, the head of the Tirupur Exporters' Association, said. Knitwear exporters in Tirupur, who are pitching for FTA with the EU, also want a separate pact with Britain. The EU is a major destination for readymade garments, with the UK a leading market. Europe makes up 46 per cent of apparel exports, of which Britain's share is 40 per cent. Ashok G. Rajani, chairman of the Apparel Export Promotion Council, said, "Britain's exit would significantly dilute the relevance of the EU FTA for us." He said the only way to expand business in the UK after Brexit would be through bilateral talks, which would mean a fresh round of negotiations. India currently enjoys a 12.5 per cent tariff preference in the EU under its GSP (generalised scheme of preferences) programme. The export sop would now be impacted for textile shipments to the UK. However, Rajani said the steps announced by the government would help textile exporters to enter China and Southeast Asia. "While Europe is an important market for us, it is more or less saturated. We have been working to enter China and Southeast Asia and in the coming years, there will be greater penetration for high-end products there," he said. He said the incentives would enable exporters to price their products much better than countries such as Bangladesh and Vietnam, which had low labour costs. The government has approved a Rs 6,000-crore special package for the textiles and apparel sectors. The Narendra Modi-government aims to create 1 crore textile jobs within three years and has set a target of $11-billion investment and $30 billion exports.
SOURCE: The Telegraph India
Farmers of the remote Pedaganjam village in Prakasam district staged a noisy protest in their village on Monday against the proposed mega textile park to create world class infrastructure to facilitate setting up of apparel manufacturing units. The villagers had heated exchanges with a team of officials led by Chinaganjam Tehsildar Kanakaiah which went to the village in connection with the land survey for acquisition of about 30 acres for the ‘cotton-to-garment’ textile park proposed to be taken up in the village to give a fillip to garment manufacturing and create additional employment, particularly for women. Additional forces were rushed to the village by Chinaganjam Sub-Inspector B.Narasimha Rao to avert further trouble. The villagers did not allow the officials to carry on their work and maintained that they should be given an opportunity to take up the issue with TDP MLA from Parchur Y.Sambasiva Rao and District Collector Sujata Sharma. As their repeated pleas to allow them to discharge their official duties went in vain, the local officials returned without completing their work in connection with an Integrated Textile Park aimed at promoting apparel and ancillary units.
SOURCE: The Hindu
Textile mills in the region have urged the union government to include made-ups and home textiles under the special package announced recently for garments. The government approved a 6,000 crore special package for the garment sector, which is aimed at creating one crore new jobs, attracting 74,000 crore in new investments and achieving a cumulative increase of $30 billion in foreign exchange in the next three years, on June 22. "Made-ups and home textiles segment produces very high-end products and exports to all major markets, especially the European Union (EU) and the US," said M Senthil Kumar, chairman, Southern India Mills' Association (SIMA). "This segment could not achieve the potential growth rate as the products attract equal tariff on a par with garments in most of the major international textile markets," he stated. "Indian made-ups/home furnishing exports have been facing severe challenge from Pakistan as it enjoys duty free access in EU and few other markets," Senthil Kumar said. Since processes required for made-ups/ home textile fabric manufacturing are capital intensive, only limited manufacturing facilities are available, he said. "The made-ups / home textile manufacturers pay much higher conversion charges for the fabric when compared to garment manufacturers," the SIMA chairman said.
SOURCE: The Times of India
The Telangana Government has decided to offer additional rebate on power tariff for the textile industry and steel companies in the State. The decision was taken during a meeting the Telangana Chief Minister K Chandrasekhar Rao had on power sector supply situation and the tariff structure on Monday here toady following representations made by some sections on the difficult times these two sectors were passing through. Accordingly, spinning mills will get a rebate of Rs. 2 per unit and ferro alloys companies Rs. 1.50 per unit. The decision comes in the backdrop of representations made by spinning mills where more than 40,000 workers are engaged in. Likewise, about 5,000 people are engaged in ferro alloys units in the State. Both these sectors will have the benefit of the lower power tariff for the full financial year, according to a statement from the Chief Minister’s Office.
During the recent tariff order, TS Electricity Regulatory Commission has passed the tariff order for 2016-17 to be implemented from July 1. As per the order ferro alloys units will have to pay a tariff of Rs. 5 per unit to Rs. 5.90 per unit, depending upon load, apart from time of day tariffs, which incentivises off-peak hour consumption. For the industrial consumers the tariff ranges from Rs. 6.30 per unit and goes up to Rs. 7.40 per unit. The regulator has included some new categories this year, which includes Hyderabad Metro Rail as a sub-category of railway traction.
SOURCE: The Hindu Business Line
The Southern India Mills' Association (SIMA) has appealed to Textiles Minister Santosh Gangwar to include made-ups/home textiles segments also under the special package for textiles and garments sector announced on June 22. In a letter to the Minister, SIMA Chairman M.Senthilkumar said that the industry has been demanding the Government to adopt “cut & sew policy” while extending any benefit for the garment and made-ups/home textiles segments. Senthilkumar said that the made ups/home textiles segment produces very high end products and the value addition and job creation in the made-ups/home textile segments are much higher than in the garment sector. He also appealed for additional TUF subsidy for weaving and processing segments. “In order to meet the high quality of fabric requirements of the garmenting/made-ups segments, it is essential to create high-tech weaving and processing production capacities which are the weakest links in the textiles chain,” Senthilkumar said. The SIMA chairman sought an increase in capital subsidy under ATUFS from 10 per cent to 25 per cent for weaving and processing segments at par with the garmenting segment.
SOURCE: Fibre2fashion
Britain’s decision to exit the European Union (EU) and the resultant uncertainties are unlikely to derail India’s growth story or its inflation trajectory, but the country’s current account deficit (CAD) could worsen a tad to 1.3% of its gross domestic product (GDP), according to a report by Crisil Research. Also, information technology (IT) and certain other consumer-oriented sectors like auto components, textiles, leather, footwear, precious stones and metals could face some heat, it adds. Within the automobile space, component suppliers will be impacted more than original equipment manufacturers, with the exception of the JLR business of Tata Motors, the report says. “The impact on JLR business will depend on how trade agreements between the UK and other EU countries are rewritten. On the positive side, a depreciating pound will make JLR’s exports from the UK more competitive, at least in the near-term,” the report adds. The CAD could rise 20 basis points from the 1.1% level recorded in 2015-16, it said. Crisil expects tepid export growth, given lower global growth forecasts, and “some upside from core imports (non-oil, non-gold)” on the back of a pick-up in domestic consumption and investment demand to drive up the CAD in 2016-17. Nevertheless, low imports (due to subdued oil and commodity prices) will prevent the CAD from shooting up, it adds. Crisil, however, retains its growth and retail inflation forecasts for the country at 7.9% for 2016-17 and 5% by the end of this fiscal, respectively.
The report also forecasts the rupee to touch 66.5 against the dollar by the end of the current fiscal, down 50 paise from Crisil’s previous forecast. However, India’s trade competitiveness with the UK will not just depend on the rupee’s movement against the pound, but also on the performance of the currencies of India’s competitors, apart from domestic costs and productivity. In the short run, however, the report doesn’t predict a significant downside to India’s exports in the short term, as the UK accounts for only 3.4% of India’s goods exports. Over the medium term, exports in sectors like auto components, textiles, leather and footwear and precious stones and metals, which together make up for close to 45% of exports to the UK, and also in services, will “depend on the severity of slowdown in the UK and ructions in the exchange rate”.
SOURCE: The Financial Express
Commerce Ministry is hopeful that the narrowing pace of decline in exports will sustain in the coming months on account of the steps taken by the government to boost overseas shipments, a top government official said. “I am hopeful that it (the narrowing pace of dip in exports) will sustain in the coming months. we have made lot of efforts,” Commerce Secretary Rita Teaotia told PTI. She said the steps, like simplification of procedures, which “we have taken will slowly bear fruits”. Exports fell for the 18th month in a row in May by 0.79 per cent, but the pace of decline has narrowed mainly on account of positive growth in key sectors like engineering and gems and jewellery. Exports have been falling since December 2014 due to weak global demand and slide in oil prices. However, since December last year, the pace of contraction is slowing down. The Commerce Ministry has taken several steps including reduction of paper work to improve ease of doing business and extending 3 per cent interest subsidy for exporters. One of the major sector – engineering goods – have entered into positive zone and recorded a growth of 2.2 per cent in May. Gems and jewellery exports too grew by 24.34 per cent to USD 3.71 billion. Exporters body Federation of Indian Export Organisations (FIEO) said that exports are all set to take off from here onwards. “We can look for double digit growth from October onwards which may pave the way for reaching USD 300 billion in the current fiscal,” it said. However exports of pharmaceuticals dipped 10 per cent in May. When asked this, the Secretary said that pharma exporters are facing challenges in some African and South American markets. There are payments issues in countries like Venezuela and Sudan, she said, adding that “we are taking up the issue bilaterally”.
SOURCE: The Financial Express
We are merchant exporters and have received a transferable LC. As the first beneficiary, we have transferred the LC in favour of our supporting manufacturers, the second beneficiary. They will ship the goods and present the documents to the transferring bank. We will substitute our invoices for negotiation. The negotiating bank will collect the proceeds from the LC-issuing bank and disburse the proceeds between us and the supporting manufacturer. Our question is: who will be treated as the exporter by the authorities -- we or the supporting manufacturer?
As per Article 14(k) of UCP 600, "the shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit." So, you must ask the supporting manufacturer to mention your name as the shipper in the bill of lading. Secondly, you should ask the supporting manufacturer to file the shipping bill giving his name and address and stating that the export is on your behalf and mention your name and address. In that case, the transaction and the documentation will meet the requirements mentioned in the definition of 'third party export' as given in Para 9.60 of the Foreign Trade Policy, and you will be treated as the exporter by the authorities.
We are a 100 per cent Indian company and intend to set up a warehouse where we will import various multi-brand consumer products like garments and electronic goods, and supply them to stores in India. Do we need FDI approval or special permission from any department, since we intend to import multi-brand products? What is the position if a foreign company wants to do it?
FDI approvals apply to foreign companies making investments in India. As an Indian company, you do not need any FDI approval. In any case, this is 'cash and carry wholesale trading' business, where you will be supplying goods to business entities and not retail customers. The FDI policy allows 100 per cent foreign investment in 'cash and carry wholesale trading' under the automatic route. Of course, you or any entity must comply with the local laws, like obtaining registrations under the Shops and Establishments Act, Value Added Tax Act, etc.
Is service tax payable on a foreign remittance for franchise fees for a franchise I intend to take from an organisation in the US? The franchisor would be providing only training programmes and related material and there will be no physical assets provided by them.
If your remittance relates to an agreement wherein the foreign party has granted representational rights to sell or manufacture goods or to provide service or undertake any process identified with him, whether or not a trade mark, service mark, trade name or logo or any such symbol, as the case may be, is involved, then service tax is payable under the category 'franchise service'. In accordance with Rule 2(d)(i)(G) of Service Tax Rules, 1994, as the person receiving that 'franchise service', you are the person liable for paying the service tax.
SOURCE: The Business Standard
India's economy will be among the least impacted in Asia by the UK's vote to exit the European Union given its relatively low exposure to trade, according to Morgan Stanley. "Increased uncertainty in the external environment due to UK's vote should add to downward pressures on growth and inflation in the region," Morgan Stanley economists including Chetan Ahya in Hong Kong wrote in a report. "Hong Kong, Singapore, and Malaysia will rank as those which are most exposed, while the economies of Thailand, Indonesia, Taiwan, Korea and China would be moderately exposed and India and Philippines would be least exposed on a relative basis."
SOURCE: The Business Standard
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$ 45.43 per barrel (bbl) on 27.06.2016. This was lower than the price of US$ 46.11 per bbl on previous publishing day of 24.06.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3084.67 per bbl on 27.06.2016 as compared to Rs. 3135.84 per bbl on 24.06.2016. Rupee closed stronger at Rs. 67.90 per US$ on 27.06.2016 as against Rs. 68.01 per US$ on 24.06.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 27, 2016 (Previous trading day i.e. 24.06.2016) |
Pricing Fortnight for 16.06.2016 (28 May, 2016 to June 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
45.43 (46.11) |
47.63 |
|
(Rs/bbl |
3084.67 (3135.84) |
3193.12 |
|
|
Exchange Rate |
(Rs/$) |
67.90 (68.01) |
67.04 |
SOURCE: PIB
With increase in yarn output across Asia by 21 percent and South America by 29 percent, while it saw decreased by four percent in Europe but the global yarn production increased by 20 percent in the first quarter of 2016, compared to 4 percent growth rate in the first quarter of 2015, according to the latest report from the International Textile Manufacturers Federation (ITMF). However, global yarn stocks dropped in by five percent quarter-on-quarter. Yarn stocks reduced by six percent in Asia and one percent in South America, while they remained unchanged in the other regions. Year-on-year, global yarn stocks increased by nearly three percent. Global fabric production fell by over eight percent in the first quarter of 2016 compared to the previous quarter due to fall by over 10 percent and two percent in Asia and Europe, respectively. In South America, in contrast, fabric production increased by 31 percent. Compared to 2015, global fabric output remained unchanged, with output remaining stable in Asia, down nearly 21 percent in South America and up around nine percent in Europe. As per the ITMF report, worldwide fabric stocks increased moderately quarter-on-quarter. In South America, fabric inventories increased by over two percent while in Asia it reduced less than one percent during the three-month period.
SOURCE: Yarns&Fibers
Textile manufacturers have reiterated the demand to arrest the decline in the size of domestic cotton and urged the government to withdraw three percent import duty on cotton. In a statement issued Monday, Tariq Saud, Chairman, All Pakistan Textile Mills Association (Aptma), said the removal of duty was imperative so that raw material was available to the industry at competitive prices. Aptma Chairman also clarified that the apprehensions of the Karachi Cotton Association (KCA) and the Cotton Association of India with regard to the export of cotton were misplaced. In view of the failure of the cotton crop, the textile industry has imported over three million bales, and a significant portion has come from India. Saud reiterated that thousands of bales were stuck at the Wagah border, for which the mills have made payments. However, the government was not moving to settle this issue, he said. He urged the government to immediately order the release of cotton which has entered Pakistani territory. Aptma believes in free trade and the Chairman underlined the importance of keeping this regime intact and free from all interferences as it was expected that Pakistan would continue to meet its requirements from import of cotton.
SOURCE: The News
Regardless of the much touted “infrastructure deficit” of the Nigerian market, there have been unprecedented flow of investments from multinational manufacturing corporations into various sectors of the economy in the last decade. Testaments to this flow are the firm roots established in Nigeria by the likes of SABMiller, Bayer, General Electric, Arla Foods, BASF and Bosch among others. These multinational corporations are here to do good business, and are affirming the potential of Nigeria as an exceptional, exciting and largely unexploited consumer environment offering a huge opportunity for agile local and global enterprise in all sectors. Just like the venturing enterprises, I am extremely confident in the opportunity here. Nigeria is a market that manufacturers and original equipment manufacturers cannot ignore. Truly, the market is challenged for now, but this does not detract from its exciting future. However, I have a concern, a major one. I cannot confidently say that home-grown enterprises are equally positioned to take advantage of opportunities in their home market. Unlike multinational corporations and/or budding enterprises from Asia and Europe, Nigerian companies are deterred from rising to national acclaim and stupendous Returns on Investments by high costs of funds.
Bringing this home, in the fashion industry in which I do business, some of the hottest trends are coming out of Nigeria. Yet, the local multi-billion Naira industry is largely serviced through distributive trade dominated by offshore manufacturers. The local textile and garment manufacturing value change are nearly comatose, transferring benefits accruable to Nigeria such as employment creation, industrialisation, currency stability, and market surpluses to Asia, Europe and the Americas. Ironically, we once had a thriving textile industry. From the 1950s up to the 1980s, the country had over 140 textile manufacturing industries, accounting for 25% of the nation’s employees in the manufacturing sector. The industry once employed about a million people, contributing about 15 per cent of the manufacturing sector earnings to the Gross Domestic Product (GDP) and accounted for over 60 per cent of the textile industry capacity in West Africa. The industry so thrived that it ranked as the 3rd largest textile producer, only behind Egypt and South Africa. However, with the government’s apparent focus on the oil sector in the 1980s as a result of the oil boom and the subsequent abandonment of the primary sector, the development of the textile industry gradually became stagnated. Funding it no longer became a priority for the federal government and state governments which owned textile companies. The economic recession of the 1990s further compounded the woes of struggling textile manufacturers and many of their secondary sector counterparts. With the banks only willing to lend to the lucrative oil and gas sector, they were unable to procure raw materials and modern machinery. Year on year, a yawning gap was created with the vacuum being filled through distributive trade that benefits only foreign enterprises and economies.As such, an industry whichonce boasted of an annual growth rate of 67 per cent in 1991 now has 25 textile mills operating, with all running at less than 40 per cent of installed capacity and employing just over 25,000 people.
On the other hand, the well-funded textile industry in India is the 2nd largest employment generating sector in the country, offering direct employment to over 35 million people. It contributes 13 per cent to the export earning of the country and around 4 per cent of India’s GDP. For instance, public-private partnerships drive the textile industry in the United States of America (USA). This has seen investments in the sector soar to the tune of $1.8 billion in total capital expenditures in 2014 and US exports of textiles increase by 39 per cent between 2009 and 2015, to $17.6 billion. Taking learnings from India and USA, where textile manufacturing is making huge economic contributions and driving growth and development, Nigeria’s near comatose textile industry can leapfrog from inefficiencies to efficiency just like the now booming telecommunications sector. Though not elected to be a business entity, government must do more for the fashion value chain than providing the fashion intervention fund being presently disbursed by the Bank of Industry (BOI). It must breathe life into fund raising alternatives that include a credit guarantee scheme, venture capital funding, second-tier fund raising market on the Nigerian Stock Exchange, and cluster financing, among others in order to deepen access to credit across the industry value without the usual stringent collateral requirements set by the commercial banks. Only by enacting all these would Nigeria benefit from the textile industry’s potential to galvanise job creation, raise household incomes and improve food security due to increased trade. Unfettered access to funding by players in the fashion industry value chain will ultimately boost Nigeria’s economy.
SOURCE: The Cable
Japanese engagement in Vietnam’s textile and garment sectors continues to strengthen discernibly, as the south-east Asian manufacturing centre is set to become a global clothing exporting powerhouse under the newly concluded free-trade agreements. They include the Vietnam-European Union free-trade deal (EVFTA) and the Trans-Pacific Partnership (TPP), which will give Vietnamese exporters better access to American markets.
Opportunities are arising for Japanese businesses, mainly because Vietnam’s own upstream industries are still unfit to satisfy the EU trade deal and TPP’s “fabric forward” and “yarn forward” rules of origin, respectively. Japanese companies have been helping install new production systems at their Vietnam subsidiaries, or selling textile machinery to Vietnamese-owned textile and garment manufacturers, as a result. Their goal is to transform the Vietnamese garment sector from a largely “cut and sew” operation, helping the country prosper from contributing more added value in the supply chain. “The Japanese are shifting up a gear in supplying Vietnamese factories with the textile machinery needed to satisfy the TPP’s ROOs [rules of origin],” says Oliver Massmann, Hanoi-based partner and director for Duane Morris LLP, a law firm serving many Vietnam textile clients. “Meanwhile, their German rivals are sleeping through the window of opportunity,” he says. Massmann estimated that at stake are textile machinery orders in the proximity of US$2bn. He arrived at that figure by surveying 50 managers of Vietnam’s several thousand textile and footwear manufacturers, with the surveyed managers each indicating planned machinery investment of US$2m to US$3m in the context of the TPP’s ROOs.
According to online and largely Vietnamese newspaper VietNamNet, Japan’s Tsudakoma Group has realised the substantial demand for textile machines in Vietnam market, and has recently contacted many Vietnamese enterprises to discuss the supply of machines. The Group has not replied to requests for comment from WTiN.com. On the long list of major recent or planned Japanese textile investments in Vietnam are those of synthetic fibre maker Kuraray in a production line for sportswear in central Da Nang city; fibre maker Toray Industries (a major supplier of the Uniqlo clothing chain); and cotton spinner Shikibo. Garment maker Toa Boshoku in November 2015 unveiled a fully integrated garment centre, which is now spinning, dying and producing yarn in Vietnam, meaning it is ready for the rules of origin of both the EU FTA and the TPP. Meanwhile, Vinatex, the largest Vietnamese textile company, signed an agreement in January 2016 with general trader Itochu Corporation to invest in several textile manufacturing plants; Vinatex also closed a deal with Japan’s Toms Limited last April (2015) to construct a multi-million US dollar textile-dyeing-garment manufacturing complex. Both moves are meant to make Vinatex ready for trade deal rules of origin. “Our Japanese partners will surely keep increasing investments in our company, such as in state-of-the-art machinery and engineers,” says Nguyen Thanh Hung, as spokesman of Vietsilk, a private operator supplying silk for kimonos sold in the Japanese market. “In fact, we are busy right now preparing facilities for future equipment dispatched by our Japanese partners,” he adds. Increased Japanese textile investments and machinery sales are in line with a bilateral agreement for the promotion of the textile industry in Vietnam that was signed in March by the governments of Japan and Vietnam.
SOURCE: The CCF Group
The brutal anti-crime crackdown promised by the Philippines’ president-elect, Rodrigo Duterte, may result in the European Union (EU) withdrawing its Generalised System of Preferences Plus (GSP+) tariff-reduction scheme from the country, weakening Philippines’ textile and garment exports. In early June, Duterte was subject to scathing criticism by UN secretary general Ban Ki-moon for endorsing the killing of journalists, as well as offering large bounties to security forces and the general public to eliminate drug traffickers in extrajudicial killings. And with GSP+ conditional on good governance and a solid human rights record, 6,274 Philippine export products, including textiles, garments and footwear, stand to lose their current duty-free access status to the EU if the new president delivers on his thuggish promises. “The GSP+ withdrawal over Duterte’s human rights stance is a possibility,” says Robert Young, president of the Manila-based Foreign Buyers Association of the Philippines (FOBAP). However, let’s consider the fact that all these pronouncements were made prior to him becoming the president of the Philippines, his oath-taking scheduled for 30 June.”
An official attached to the German consulate in Hong Kong, with responsibility for economic affairs in China and south-east Asia, also sees a GSP+ withdrawal from the Philippines as a realistic scenario. He points out that, while the EU’s last GSP+ assessment on the Philippines – published in January – notes that extrajudicial killings, torture and enforced disappearances in certain parts of the country have proved difficult to resolve, it did emphasise that there have been positive human rights developments under the outgoing administration of president Beningo Aquino. “There is some praise for Aquino in the report, which suggests that the EU would first threaten a GSP+ withdrawal and then carry it out quite swiftly if Duterte causes the human rights situation to deteriorate,” says the official. He adds that an instructive indicator in this regard has been the GSP+ withdrawal from Sri Lanka in 2009, after no satisfactory progress was shown by Sri Lanka in the implementation of the three UN human rights conventions, notably the International Covenant on Civil and Political Rights; the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; and the Convention on the Rights of the Child. They are all linked to the grant of trade benefits. The EU has a track record of also withdrawing the regular GSP scheme, from Belarus and Myanmar over violation of labour rights, in 2007 and 1997 respectively.
According to the European Chamber of Commerce of the Philippines, it is mainly machinery and agricultural food exports that have seen improvements through GSP+, as some local textile and garment makers struggle with the scheme’s rules of origins as well as with the fact that the Philippines’ wage levels are high relative to its regional peers. However, even though GSP+ utilisation is relatively low among the country’s textile and garment makers, the prospect of a withdrawal is undoubtedly unwelcome news in times that are already challenging. According to the Philippines Statistics Authority, in the first four months of the year, textile and garment exports decreased by 46.7% and 27.2% respectively compared to the year-earlier period, making the sectors among the country’s worst export performers.
SOURCE: The CCF Group
Turkey and Malaysia’s total trade for the first four month of 2016 was up 60.6 percent on the previous year, a rise from $346.26 million to $555.97 million. However, the two countries are expected to expand bilateral trade by up to 50 percent this year, supported by both countries' strong economic fundamentals, according to a Malaysian trade promotion agency. While, total trade between Turkey and Malaysia for the year to December 2015 stood at $1.38 billion, with Turkish exports at $451.11 million and imports at $926.61 million. Malaysia External Trade Development Corporation (MATRADE) CEO Dzulkifli Mahmud speaking after a seminar titled "Exploring Business Opportunities in Turkey", co-organized by MATRADE and the Embassy of the Republic of Turkey in Kuala Lumpur said that global economic uncertainty and geopolitical tensions had not affected the growth in exports and imports between the two. The major exports to Malaysia include textiles and clothing, chemical products, machinery and processed food, while imports were comprised of textile and clothing, chemicals and chemicals products, palm oil and palm-based products, manufactures of metal and rubber products. The deputy head of mission of the Turkish embassy, Ahmet Dogan, said that a lot of untapped opportunities remain in Turkey for Malaysian companies. With MATRADE’s assistance, Malaysian companies could have access to market intelligence on Turkey and at the same time they could plan a strategic approach in using Turkey as a gateway to Europe and North Africa. Similarly Turkish firms look at Malaysia as an entry point for the Southeast Asian region. Further with Malaysia-Turkey Free Trade Agreement coming into force in August 2016. The stronger momentum is expected to continue this year, with the weakening of the Ringgit granting better value for exports.
SOURCE: Yarns&Fibers
Sri Lanka's Central Bank on Monday predicted that the uncertain economic situation caused due to Britain's exit from the European Union will last for at least two years. The latest report submitted to Prime Minister Ranil Wickremesinghe said it would take at least two years for Britain to leave the EU and, therefore, the global economic crisis that had already begun would last for two years, Xinhua news agency reported. As 40 per cent of Sri Lanka's exports to Europe go to Britain, the South Asian island nation would definitely be affected with the fall of the pound, the report said. According to the report, Sri Lanka would not get the expected advantages from the Generalised System of Preference (GSP) -plus facility. Sri Lanka lost the EU GSP-plus during the performance of the former government. The new government, which took office last year, gave a commitment to meet the expectations from the EU and implemented some legal amendments in order to be in line to regain the GSP. Meanwhile, Wickremesinghe on Sunday announced that Sri Lanka will now have to turn toward South and Southeast Asian nations for trade ties due to the uncertainty triggered by Brexit. "We have already planned to sign Economic Technology Cooperation with India and a free trade agreement with China but we will start negotiations with Singapore for a free trade agreement shortly and will also think of South Korea as well," the prime minister said.
SOURCE: The Daiji World
The People's Bank of China (PBoC), the country's central bank, has weakened the currency by adjusting the most since last August. The bank has set the reference rate 0.91 per cent weaker at 6.6375 a dollar, a five-and-half-year low. This is the largest fall since the PBoC devalued yuan by nearly five per cent over a week last year. Post June 27, 2016 fix, the yuan is now at its lowest level since December 23, 2010. The renminbi adjustment has come in the midst of dollar's surge due to global market turmoil following UK's vote to leave the 28-member EU. Both the British pound and the euro have tumbled post the UK referendum. In recent months, PBoC has adopted a predictable policy and it only allows the yuan to rise or fall two per cent on either side of the daily fix. Last week, PBoC governor Zhou Xiaochuan said that a more flexible yuan is vital for China's development and reforms, and hence, the monetary policy will be adjusted “in a dynamic way” to meet those goals. Analysts expect the yuan to depreciate to 6.7 per dollar in the coming months, as non-dollar currencies continue to weaken following the June 24 referendum.
SOURCE: Fibre2fashion
The authorities concerned have carved out a strategy to cover up the deficit in Pakistan’s support that is to emerge in the times to come in EU bloc because of the exit of UK, under which Pakistan will soon initiate extensive interaction campaign with EU countries at parliament level particularly with Northern European countries to have more well-wisher countries to maintain GSP Plus facility till 2023. Pakistan has now decided to have seamless transition from GSP Plus to new trade arrangement with Britain. With the exit of UK, Pakistan has also been deprived of its clout in the EU and whenever GSP plus review takes place in future, Islamabad will have to work harder in gaining the required support. GSP Plus was extended to Pakistan linking it with the implementation of 27 UN conventions out of 6 conventions purely belongs to human rights issues. And to this effect prime minister of Pakistan had constituted Treaty Implementation Cell (TIC) under which a road map was also approved by the chief executive of Pakistan. The UK have always been supportive of Pakistan in getting GSP plus facility after supporting the initiatives taken by government of Pakistan with regard to progress on compliance of 27 conventions and the vacuum that is to be appeared in the absence of Britain and Pakistan will have no option but to go for more aggressive lobbying in the EU bloc to cultivate more countries in its support on various issues. The crucial meeting that was held here on Monday in Foreign Office brainstormed for hours the pros and cons of exist of UK from European Union and its impact on Pakistan.
One of the top officials who attended the meeting told The News that UK has historically been pro- trade liberalisation and greater supporter of Pakistan in trade concessions and GSP plus facility. “The authorities have decided to embark upon a huge extensive interaction campaign within the EU family to harness more friendship in the block to maintain the GSP plus facility.” Under the strategy, the government will emphasize on Germany which is one of the most efficient economies in Pakistan. Commerce Minister Engr Khurrum Dastgir confirmed that a meeting has been held in foreign office and brainstormed the impacts of Brexit on Pakistan. The minister said undoubtedly UK was pro-trade liberalization in the EU block and it helped Pakistan on many occasions. “We are going to initiate the MPs (Member Parliament) level interaction to cultivate more support from within the EU family.” He also confirmed that Pakistan will soon initiate the interaction with northern European countries including Germany. “Germany is the country which is also pro-trade liberalization,” the minister said. The government will concentrate more on Germany, Holland, Denmark, and Sweden. However, there will be no immediate negative impact on Pakistan’s exports to EU countries following the Brexit. Under the Lisbon Treaty, any country that is to leave EU will continue to obey bloc’s treaties for two year after the withdrawal agreement is notified. So no immediate threat is there for Pakistan’s exports to EU member countries and UK. The minister contented that his ministry will initiate the talks with UK for trade concessions on Pakistan’s items which were earlier being extended when Britain was part of EU. The minister said that with the devaluation of Pond in the wake of Brexit, Pakistan’s export will suffer, but when Pond rebounds, this loss will no longer be there. With regard to improving compliance of 27 UN Conventions signed by Pakistan, Prime Minister of Pakistan Attorney General of Pakistan, Ashtar Ausaf Ali chaired the 11th meeting of the Treaty Implementation Cell here on Friday. The meeting decided to device an effective monitoring and reporting mechanism on the matters related to human, labour, children, minority rights, climate change, narcotics control and anti-corruption.
Addressing the meeting, Ashtar Ausaf said that the new TIC arrangement shall help us coordinate with concerned departments and agencies more efficiently and would provide a platform to partner with international partners working in the areas of human and labour rights to bring more clarity and reality check for our efforts. He informed the meeting that European Union has lauded Pakistan’s efforts for establishing the TIC and has decided to replicate the same in other GSP+ beneficiary countries. “We have demonstrated progress in past and we have the same will to do so even now. No democratic country and a representative Government can claim that they have done enough for its own people, we have to keep doing more in every sense of the word,” he added. While making a presentation, Omer Hameed Economic Minister at the Embassy of Pakistan, Brussels was of the view that EU has recently shared a List of Issues for which federal and provincial governments, international agencies and civil society organizations of Pakistan need to work together to device a monitoring and reporting mechanism. Appreciating government’s seriousness to establish institutions like TIC, IA Rehman was of the view that though provincial governments has enacted legislation on rights related matters, implementation and institutions building remains a challenging task. Peter Jacobs said that TIC is a significant development on the course to fulfil international obligations, while issues like vertical and horizontal coordination need to be addressed in order to ensure compliance.
SOURCE: The News
The EU will push forward with efforts to seal a huge trade pact with the US despite the “unprecedented situation” after Britain’s vote to leave the bloc, its trade commissioner said. Cecilia Malmstroem said she would fly to Washington tomorrow for fresh talks on the Transatlantic Trade and Investment Partnership (TTIP), which both sides want to seal by end-2016. Also Read: Britain’s exit could make Europe less friendly to US tech But the process has been thrown into turmoil by the referendum result in which Britain — one of the countries pushing most strongly for the deal — as a majority voted to leave the 28-nation union. In a further blow French Prime Minister Manuel Valls yesterday blasted the planned US-EU deal, saying it was against “EU interests.” “In this unprecedented situation, let me stress that we are clear and united in our response with regard to EU trade policy… Our negotiations with key partners will continue,” Malmstroem said in a statement. She said she was “determined to make as much progress as possible in the months to come”, especially on TTIP, adding that “I will travel to Washington DC tomorrow to meet my counterpart, in order to advance further in these negotiations.” The EU would also press on with efforts to ratify a trade deal with Canada, she added. Brussels and Washington have been pushing to resolve remaining issues by year’s end, coinciding with the end of Barack Obama’s presidency. The next round of negotiations is expected in July. But the project has been facing mounting opposition in parts of Europe, especially in France and Germany, where critics say the talks have been conducted in secret and fear a far-reaching impact on agriculture and the environment.
SOURCE: The Financial Express
Profits of Chinese industrial companies rose 3.7 per cent in May from a year earlier, slowing from April’s pace and adding to concerns about the health of the world’s second-largest economy. Profits in May rose to 537.2 billion yuan ($81.21 billion), the statistics bureau said on Monday. Profits in the mining sector fell 93.8 percent from a year earlier, the bureau said. Also Read: Shanghai steel rallies 5 per cent as China moves to consolidate sector In the first five months of this year, profits rose 6.4 percent compared with the same period last year, the National Bureau of Statistics said on its website. Industrial profits in January-April rose 6.5 percent from a year earlier, with April up 4.2 percent. Chinese industrial firms’ debt at the end of May was 4.9 percent higher than at the same point last year. The data covers large enterprises with annual revenue of more than 20 million yuan from their main operations.
SOURCE: The Financial Express
