INTERNATIONAL
NATIONAL
The National Highways Logistics Management Ltd (NHLM) under the National Highways Authority of India (NHAI) recently floated a tender to build a multi-modal logistics park at Bengaluru with private funds. An earlier endeavour for the same was unsuccessful as a single bid of Reliance Industries was received after Prakash Asphaltings and Toll Highways (India) Ltd was disqualified from the tender. Government bodies generally avoid processing a single bid following guidelines issued by the Central Vigilance Commission (CVC). A multi-modal logistics park is a cargo consolidation and distribution centre using multiple modes of transport to achieve scale in shipments and provides various logistics and other value-added services. The logistics park is being planned on 400 acres at Muddalinganahalli in Bengaluru Rural district. The development, operation and maintenance of the multi-modal logistics park is being implemented through public-private partnership on a design, build, finance, operate and transfer (DBFOT) basis with an investment of some ₹935.90 crore, according to a report in a top financial newspaper.
Source: Fibre2Fashion
A few weeks ahead of the Union Budget 2023-24, Telangana Handlooms and Textiles Minister K.T. Rama Rao has urged the Central government to allot sufficient funds for strengthening the handlooms sector in the state. While mentioning that the Centre did not extend financial support to the various pioneering initiatives taken up by the state government for weavers in the past eight years, he said that this is the last full budget of the current Central government, which will be followed by vote on account budget. KTR, as the Minister is popularly known, said that multiple appeals by the State government to strengthen the sector were not considered favourably by the Centre. Prime Minister Narendra Modi-led Central Government should prove its commitment to the weavers and textiles sector, he said. Recognising the importance of infrastructure to usher rapid progress of the handlooms sector, the state government is establishing Kakatiya Mega Textiles Park in Warangal, he said, adding that the biggest textile park in India is attracting investments from national and international companies. KTR said that the Centre has options to extend financial support under various schemes to the park, which is being established with Rs 1,600 crore. "At least Rs 900 crore should be allotted in the upcoming budget towards infrastructure for the Kakatiya Mega Textile Park and other programmes," he said. The Handlooms and Textiles Minister appealed that the Powerloom Sector in Sircilla, which has over 25,000 powerloom machines, be recognised as Mega Powerloom Cluster and allot Rs 100 crores to it. Listing the Worker to Owner Scheme and other programmes taken up by the State government, he said that it takes over Rs 990 crore for strengthening of value chain, modernisation of power looms in Sircilla, improvement of market, skill development, capacity building, project monitoring, and appealed that a major share of the funds has to be announced in the budget. Stating that there are over 40,000 handloom weavers in various parts of Telangana, with most of them in Yadadri Bhuvanagiri, Gadwal, Warangal, Rajanna Sircilla, Karimnagar, KTR urged the Centre to grant Indian Institute of Handloom Technology to the state. He said that land parcels to establish the institute are available at Gundlapochampally and Yadadri Bhuvanagiri. The Handlooms and Textiles Minister also urged for the National Textiles Research Institute, Handlooms Exports Promotion Council to be announced in this budget, and to grant Block Level Handlooms Clusters under the National Handloom Development Project. KTR made a special appeal to scrap the GST on handlooms products to save the weavers who are in financial crisis. He also appealed to the Centre to revive the Handlooms, Powerlooms, and Handicrafts Boards which were dissolved by the Union government, to re-introduce insurance and savings schemes for weavers, and increase yarn subsidy, alike to the state government, to 50 per cent.
Source: Fibre2Fashion
The interim free trade agreement between India and Australia will come into force on Thursday, providing duty-free access to thousands of domestic goods such as textiles, and leather in the Australian market. The agreement will help almost double the bilateral commerce to USD 45-50 billion in around five years, according to exporters and industry players. The Economic Cooperation and Trade Agreement (ECTA), which was signed on April 2, would provide duty-free access to Indian exporters of over 6,000 broad sectors, including textiles, leather, furniture, jewellery and machinery in the Australian market. Labour-intensive sectors which would gain immensely include textiles and apparel, a few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, and electrical goods. Federation of Indian Export Organisations (FIEO) Vice-President Khalid Khan said that Australia is one of the key markets for Indian exporters. "This agreement will give immense opportunities from Day 1 of implementation that is December 29 for us," Khan said. Under the pact, Australia is offering zero-duty access to India for about 96.4 per cent of exports (by value) from the Day 1. This covers many products that currently attract 4-5 per cent customs duty in Australia. India's goods exports to Australia stood at USD 8.3 billion and imports from the country aggregated to USD 16.75 billion in 2021-22. Tariffs on 85 per cent of Australia's exports to India will be eliminated from Thursday. "India and Australia signed the ECTA) on April 2 which will come into force on December 29," Minister of State for Commerce and Industry Anupriya Patel informed Parliament on December 16. As the initial part of the agreement - ECTA - is coming into force, now both countries would start negotiations to widen the scope of the agreement.
Source: Business-standard
Federation of Small & Medium Industries, West Bengal (FOSMI) in its Pre-Budget Memorandum for 2023-24 has suggested for the renewal of Credit Linked Capital Subsidy Scheme (CLCSS) for MSMEs and continuation for at least five consecutive financial years. The scheme was valid up to March 31, 2020 and was discontinued after the deadline. The suggestion calls for an increase in the upper limit of the incentive i.e. Rs 15 lakh owing to the price hike of machineries due to advanced technologies. “Ministry of MSME should include Medium scale industries under the purview of CLCS Scheme to encourage technology up gradation and development,” said FOSMI. It has offered suggestions on varied areas such as Prevailing Schemes, Direct and indirect taxes, Improvement of Start-up ecosystem, Ease of Doing Business, Building efficiency in litigation machinery and Adoption of Circular Economy - Reduction of Carbon footprint. In view of Amended Technology Upgradation Fund Scheme (ATUFS), it has urged the government to either renew the existing ATUF scheme or issue new scheme for the textile sector. Underlining how Food Processing Sector doesn’t have any capital investment subsidy scheme except Pradhan Mantri Kisan Sampada Yojana (PMKSY), FOSMI has requested the government to issue an open handed capital incentive scheme for food processing sector to promote the investment in food processing industries.
Source: KNN
The cabinet in India’s eastern state of Odisha yesterday approved the Odisha MSME Development Policy 2022 for accelerating growth of micro, small and medium enterprises (MSMEs). The new policy replaces the earlier such policy enacted in 2016 and includes initiatives to promote green industries and manufacturing of new types of products in the state. The capital investment subsidy meant for new micro and small enterprises (MSEs) has been extended to both new and existing ones undertaking expansion, modernisation and diversification at the rate of 25 per cent of capital investment made in plant and machineries and the subsidy limit has been enhanced from ₹1 crore to ₹2 crore. To support growth of MSEs in industrially backward districts of Kalahandi, Nuapada, Bolangir, Subarnapur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati and Mayurbhanj, in designated IDCO industrial estates or industrial areas along the Biju Express Highway Corridor and enterprises in eight focus sectors, including apparel and textile, an additional capital investment subsidy of 5 per cent of investment made in plant and machinery up to ₹20 lakh over and above the limit prescribed of each of the category will be made available. The policy also offers reimbursement of 50 per cent of interest paid on term loan availed for a period of five years as interest subsidy subject to a maximum limit of ₹1 crore; electricity duty exemption for MSMEs up to a contract demand of 750 KVA for five years; and subsidy for quality certification for three years at cent per cent of the quality certification charges up to a maximum limit of ₹5 lakh, according to media reports from the state.
Source: Fibre2Fashion
India’s exports to major destinations recorded a contraction in October 2022, according to the Indian rating agency CareEdge Ratings. The country’s export of textiles recorded a decline of 25 per cent year-on-year (YoY) during the period from September to November 2022, worsening from a contraction of 7.6 per cent in the previous three months. Exports of ready-made garments contracted by 10.3 per cent during September–November 2022 following a healthy growth of 13.4 per cent in the previous three months. While the crisis in the major readymade garment exporting nations (Sri Lanka, Myanmar, and Pakistan) could result in the shifting of export orders to India, Bangladesh and Vietnam, slower growth in key markets of the US and European Union (EU) remain a challenge. The major destination for Indian exports, North America, recorded a notable fall in exports by 20 per cent YoY in October, while exports to EU contracted by 2.5 per cent YoY in October. North America and EU account for 36 per cent of India’s overall exports, as a result, the slowdown in these markets will have an adverse impact on India's exports, as per CareEdge Ratings. Trade tensions between the two largest economies of the world—the US and China—have also led to trade diversification, which is a positive development for emerging and developing markets. India, however, has not been able to gain much from these diversifications, as reflected by its sticky share in global trade. Its exports of goods co-move with the world trade. Based on the annual data on exports of goods growth from the World Bank, after recording a healthy growth of 15.5 per cent annually during 2002-2011, India’s exports growth fell sharply to about 4.1 per cent a year during 2012-2021. India’s manufacturing sector which had already been reeling under pressure due to high raw material prices in the first half (H1) of 2022, is now feeling the pain of lower external demand. The manufacturing sector gross value added (GVA) contraction of 4.3 per cent in the second quarter (Q2) of financial year 2023 (FY23) was worse than expected. Lower external demand is also getting reflected in a sharp contraction of 4 per cent in the Index of industrial production (IIP) data for October 2022. As textiles and garments is one of the most export-intensive sectors in overall manufacturing, it will likely be hit majorly amid a global slowdown in world trade. Textile sector, with a share of 9 per cent in manufacturing output, has an export intensity of 26 per cent. The country’s overall imports increased by 10.2 per cent in the last three months (September-November) moderating from 46 per cent in the previous three months.
Source: Fibre2Fashion
India’s Uttar Pradesh state will develop a network of dry ports and freight container stations to boost exports. The plan is to cultivate a modern logistics ecosystem with private players. It will support the private sector to develop storage facilities, cold chains, multi-modal parks, container depots, and container freight stations in the state. The state government would also leverage the Varanasi-Haldia inland waterway to catalyse exports. It is planning to harness the comparatively cheaper cargo movement from Varanasi via the waterway to a seaport in West Bengal to boost shipments of farm and dairy products, apart from items manufactured by micro, small and medium enterprises. Under the UP Warehousing and Logistics Policy 2022, the state will accelerate land allotments for logistics parks and offer a variety of subsidies and incentives to attract private investment. The state aims to turn a trillion-dollar economy by 2027 and hike merchandise exports from ₹1.56 trillion to nearly ₹3 trillion in three years, a top Indian business daily reported. The state is also exploring developing other intra-state inland waterway systems to support passenger and cargo movement. The projects will be offered front- and back-end subsidies, including exemption in stamp duty, concession in land use change levy and development fee exemption. The new policy will be effective for five years and replace the one promulgated in 2018. The incentives promised to private sector projects under the previous policy will, however, remain in force.
Source: Fibre2Fashion
INTERNATIONAL
Vietnam’s exports are forecast to increase by 10.5 per cent to $371.5 billion in 2022, as compared to 2021, according to the country’s ministry of industry and trade. The country’s industrial production index is projected to soar by 9 per cent year-on-year (YoY). Total value of retail sales in Vietnam is also expected to soar by 21 per cent YoY in 2022, far beyond the target of 8 per cent. E-commerce continued to grow into a key distribution channel in 2022, as the size of Vietnam’s e-retail market is estimated at $16.4 billion, accounting for 7.5 per cent of total consumer goods revenue. The country’s total trade value is expected to reach $732 billion in 2022, the ministry of industry and trade said in a conference this week. About 74 per cent of the total export turnover in Vietnam in 2022 came from foreign-invested enterprises. Exports from domestic enterprises, especially small- and medium-sized ones, remained modest. Despite recording strong growth in 2022, Vietnam’s reliance on the foreign sector remained heavy, when foreign-invested firms accounted for nearly three-quarters of Vietnam’s total export revenues. Also, the rise in added value in export has not met expectations and the rate of market diversification remained slow, the ministry said. In 2023, Vietnam aims to have export growth at 6 per cent, raise the proportion of manufacturing to GDP to 25.5 per cent, and increase the industrial production index by 8-9 per cent.
Source: Fibre2Fashion
Turkiye’s manufacturing capacity utilisation rate decreased to 75.9 per cent in December 2022 from 76.9 in November, as per the Central Bank of the Republic of Turkiye (CBRT). The lowest capacity utilisation rate was noted for durable consumer goods at 72.1 per cent and the highest for investment goods at 76.8 per cent in December this year. The country’s seasonally adjusted capacity utilisation rate for the manufacturing industry dropped by 0.7 percentage points to 75.9 per cent in December compared to 76.6 per cent in May, according to a recent survey of 1,734 companies carried out by the CBRT. Capacity utilisation rates are estimated after taking into account the responses of local units working in the manufacturing industry to a business tendency survey, a Turkish news agency said. Moreover, business confidence of Turkish manufacturers declined to 97.8 points in December from 97.9 points in November. While a figure below 100 points towards pessimism on the business confidence index, a tally of 100 or above reflects optimism.
Source: Fibre2Fashion
The world faces a recession in 2023 higher borrowing costs aimed at tackling inflation cause a number of economies to contract, according to the Centre for Economics and Business Research. The global economy surpassed $100 trillion for the first time in 2022 but will stall in 2023 as policy makers continue their fight against soaring prices, the British consultancy said in its annual World Economic League Table. "It's likely that the world economy will face recession next year as a result of the rises in interest rates in response to higher inflation," said Kay Daniel Neufeld, director and head of Forecasting at CEBR. The report added that, "The battle against inflation is not won yet. We expect central bankers to stick to their guns in 2023 despite the economic costs. The cost of bringing inflation down to more comfortable levels is a poorer growth outlook for a number of years to come." The findings are more pessimistic than the latest forecast from the International Monetary Fund. That institution warned in October that more than a third of the world economy will contract and there is a 25% chance of global GDP growing by less than 2% in 2023, which it defines as a global recession. Even so, by 2037, world gross domestic product will have doubled as developing economies catch up with the richer ones. The shifting balance of power will see the East Asia and Pacific region account for over a third of global output by 2037, while Europe's share shrinks to less than a fifth. The CEBR takes its base data from the IMF's World Economic Outlook and uses an internal model to forecast growth, inflation and exchange rates. China is now not set to overtake the US as the world's largest economy until 2036 at the earliest - six years later than expected. That reflects China's zero Covid policy and rising trade tensions with the west slow, which have slowed its expansion. CEBR had originally expected the switch in 2028, which it pushed back to 2030 in last year's league table. It now thinks the cross-over point will not happen until 2036 and may come even later if Beijing tries to take control of Taiwan and faces retaliatory trade sanctions. "The consequences of economic warfare between China and the West would be several times more severe than what we have seen following Russia's attack on Ukraine. There would almost certainly be quite a sharp world recession and a resurgence of inflation," CEBR said. "But the damage to China would be many times greater and this could well torpedo any attempt to lead the world economy." It also predicted that: India will become the third $10 trillion economy in 2035 and the world's third largest by 2032 The UK will remain the world's sixth largest economy, and France seventh, over the next 15 years but Britain is no longer set to grow faster than European peers due to "an absence of growth oriented policies and the lack of a clear vision of its role outside of the European Union." Emerging economies with natural resources will get a "substantial boost" as fossil fuels play an important part in the switch to renewable energy The global economy is a long way from the $80,000 per capita GDP level at which carbon emissions decouple from growth, which means further policy interventions are needed to hit the target of limiting global warming to just 1.5 degrees above pre-industrial levels.
Source: Ndtv
The European Union-Vietnam Free Trade Agreement (EVFTA) has gained positive results since coming into effect on August 1, 2020, though, experts believe it is necessary to review the achieved results to identify and rectify problems and challenges encountered in the past two years. The comments were made during a seminar held by the Ministry of Industry and Trade (MoIT) to review the EVFTA on Tuesday in Hà Nội. Opening the remarks at the seminar, Deputy Minister of MoIT Trần Quốc Khánh told participants that since the EVFTA came into effect on August 1, 2020, Việt Nam's two-way trade turnover had achieved impressive growth, despite the severe impact of the COVID-19 pandemic, logistics and supply chain crisis, and geopolitical fluctuations. Deputy Minister Khánh further said during the first year, bilateral trade turnover reached US$54.9 billion, making a year-on-year increase of 12.1 per cent. Of this, export turnover reached $34.5 billion or 11.3 per cent. In the second year, the bilateral trade turnover climbed to $1.4 billion, with an increase of 11.9 per with $45 billion from export. Many Vietnamese essential products recorded positive growth, such as textiles with a 24 per cent increase, footwear (19 per cent) and seafood (41 per cent). In 2021, the export turnover of Vietnamese goods to the EU market using C/O form EUR.1 reached $8.1 billion, making an account for 20.2 per cent of total export turnover to the EU or 24.4 per cent rose against the same period in 2020. In the first ten months this year, the ratio of taking advantage of incentives from the EVFTA agreement stood at 25.1 per cent, with an increase of more than 30 per cent over the same frame last year. The Vietnam Chamber of Commerce and Industry reports that four out of 10 Vietnamese businesses benefited from the EVFTA. Deputy Minister Khánh noted that the results had shown tireless efforts of government bodies from the grassroots to the central level over the past two years.
Challenges ahead
According to the Ministry of Industry and Trade, the achievements are only the initial steps. The potential and opportunities from the EU market remain large. However, many difficulties and obstacles are facing Vietnamese businesses. Khánh emphasised that the Vietnamese brand had not been well developed and known in European countries while the value and benefits gained by Vietnamese businesses failed to meet their potential. Sharing views with the deputy minister, Ngô Chung Khánh, a senior expert from the MoIT, said computers, garment-textile, machines and equipment, footwear, fresh vegetables, processed vegetables and fruit, seafood and rice were key products for export. Chung Khánh said if there were no EVFTA, the tax rate applied to vegetables would reach the highest ratio of 20 per cent, noting that most import taxes had declined to zero per cent due to the EVFTA. However, the volume of fruit and vegetable for export to the EU market accounted for 2.7 per cent only. Under the trade agreement, the EU has eliminated tariffs on 86.5 per cent of Vietnamese seafood, with a zero-tax rate expected after seven years. Therefore, the EVFTA is expected to create an excellent opportunity to export Vietnamese seafood, according to the expert. However, Việt Nam's seafood exports to the EU market account for only about 4.2 per cent of the market share. Nguyễn Văn Hiếu, sales director of Việt Nam's Lộc Trời Group, said there was a lot of room for domestic businesses to export rice to the EU market. Over the years, his group had taken advantage of this market well. In 2018, the Loc Troi group exported more than 2,000 tonnes of rice to this market, and in 2019, it sold 8,000 tonnes of rice to this market, followed by 11,000 tonnes in 2020, 12,000 tonnes in 2021 and 24,000 tonnes this year. However, Hiếu noted to keep exports sustainable, Vietnamese businesses needed to pay great attention to their quality for export due to strict control of pesticide residues in food. Ngô Chung Khánh concluded that the Ministry of Industry and Trade would work well with ministries and bodies to focus on implementing solutions to help local businesses have excellent access to the websites of ministries and agencies. In addition, the ministry would also conduct its review of cities and provinces via the free trade agreement index (FTA Index) to be announced by 2023, which is expected to create an impetus for localities to create a favourable environment for enterprises and enable them to take advantage of free trade deals. The ministry would also renovate communication forms via social networks by conducting short videos, training courses and seminars. Last but not least, the ministry would work out specific solutions by offering business credit loans, promoting connectivity between companies, and creating incentives for businesses. -- VNS
Source: Ein news
The National Highways Logistics Management Ltd (NHLM) under the National Highways Authority of India (NHAI) recently floated a tender to build a multi-modal logistics park at Bengaluru with private funds. An earlier endeavour for the same was unsuccessful as a single bid of Reliance Industries was received after Prakash Asphaltings and Toll Highways (India) Ltd was disqualified from the tender. Government bodies generally avoid processing a single bid following guidelines issued by the Central Vigilance Commission (CVC). A multi-modal logistics park is a cargo consolidation and distribution centre using multiple modes of transport to achieve scale in shipments and provides various logistics and other value-added services. The logistics park is being planned on 400 acres at Muddalinganahalli in Bengaluru Rural district. The development, operation and maintenance of the multi-modal logistics park is being implemented through public-private partnership on a design, build, finance, operate and transfer (DBFOT) basis with an investment of some ₹935.90 crore, according to a report in a top financial newspaper.
Source: Fibre2Fashion
More than 99 per cent of foreign firms surveyed in China expressed confidence in China’s economic outlook for 2023, as per the China Council for the Promotion of International Trade (CCPIT). Around 91 per cent of such firms in the country are positive about the country’s response to the COVID-19 situation. About 98.7 per cent of the firms stated that they will retain and increase their investment in China, according to a survey of more than 160 foreign firms, commerce chambers, and associations conducted by the CCPIT, the nation’s leading trade-facilitating body. “The surveyed foreign enterprises said that China’s economy is resilient and has strong comprehensive competitive advantages in market potential, industrial systems, infrastructure, and business environment,” CCPIT spokesperson Yang Fan was quoted as saying by local media reports. Moreover, 89.8 per cent of the firms in the survey revealed that they would maintain their local industrial chains and 10.2 per cent intended to shift overseas industrial chains to China.
Source: Fibre2Fashion
China’s National Bureau of Statistics (NBS) has upwardly revised the country’s GDP growth rate by 0.3 percentage points compared to the preliminary figure released in January this year. The revised GDP growth now stands at 8.4 per cent year-on-year (YoY). The GDP during the year increased to 114.92 trillion yuan (around $16.52 trillion), NBS said. The recently carried out final verification led the NBS to update China’s GDP, which rose by 556.7 billion yuan when compared to the preliminary number released in January. The country’s annual GDP is calculated according to two sets of accounting: preliminary calculation and final verification. The final verification, which was conducted by NBS, is based on annual statistical data and financial data from China’s ministry of finance and other departments.
Source: Fibre2Fashion
The year 2022 witnessed the US administration accelerate decarbonisation, promote sustainable environmental practices, strengthen international trade import laws, launch the ‘Make More in America’ drive to boost manufacturing and close critical supply chain gaps, initiate ports upgradation, and launch steps on sustainability in the textile and fashion sectors, writes Dipesh Satapathy.
Here is a peek into some of the major developments.
Policy US House of Representatives Democratic Party member from Oregon state Earl Blumenauer, who is the chairman of the House Ways and Means Trade Sub-committee, unveiled in January new legislation to strengthen US international trade import laws to stop non-market economies and goods from exploiting the de minimis threshold that allows imports valued under $800 to come into the United States without paying duties, taxes or fees. Standing up for workers’ rights, supporting agriculture, promoting confidence in trade policy through enforcement, and broadly engaging with stakeholders to facilitate inclusive, durable trade policy and promote equity are some of the key elements of the 2022 Trade Policy Agenda and 2021 Annual Report, delivered by the Office of the US Trade Representative (USTR) in March. Engaging with key trading partners and multilateral institutions; accelerating decarbonisation and promoting sustainable environmental practices; and bolstering supply chain resiliency were key elements as well. The USTR in March announced its determination to reinstate certain previously granted and extended product exclusions in the China Section 301 Investigation. The determination reinstates 352 of the 549 eligible exclusions. The reinstated product exclusions were applicable as of October 12, 2021 and extended till December 31, 2022. Products include textile items. A nine-month extension to the 352 product exclusions was announced in December. The extension will help align further consideration of these exclusions with the ongoing comprehensive four-year review. The US Export-Import Bank’s board approved in April a new tool—the ‘Make More in America’ initiative—aimed at boosting US manufacturing, strengthening closing critical supply chain gaps and supporting American jobs. The initiative will create new financing opportunities that spur US manufacturing. It will allow companies to tap existing medium- and long-term loans and loan guarantees for export-oriented domestic manufacturing projects as part of President Joe Biden’s push to bolster US supply chains. With its coming into force on June 21, the Uyghur Forced Labor Prevention Act (UFLPA) requires US companies to prove that goods imported from China’s Xinjiang are not made with forced labour; or else Customs and Border Protection can seize those. The act was signed into law by President Biden on December 23, 2021. The president signed into law in August a $430-billion partisan bill, designed to address climate change, healthcare and taxation. It aims at cutting domestic greenhouse gas emissions and ensuring that corporations and the wealthy pay taxes. The US administration is projected to achieve more than $1.5 trillion in deficit reduction this year due to the new Inflation Reduction Act (IRA) of 2022, after reducing the deficit by more than $350 billion last year. The act requires the super wealthy and large corporations to pay their fair share, while no small business or family making under $400,000 per year will pay any extra taxes. Small businesses can receive a tax credit that covers 30 per cent of the cost of switching over to low-cost solar power – lowering operating costs and protecting against the volatile energy prices that are currently squeezing small businesses.
Textile, Garment & Fashion
New York City mayor Eric Adams announced a partnership in February with the New York City Economic Development Corporation to create new jobs for New Yorkers, expand Brooklyn’s footprint in the fashion industry, and provide a boost to New York’s economy. The Made in NY Garment Hub was planned to serve as a space to grow jobs and expand workforce training in garment manufacturing, fashion design and other affiliated businesses. In the same month, New York state governor Kathy Hochul announced a partnership with IMG to implement a $500,000 grant programme to assist small, independent fashion designers with grants of $50,000 each to offset certain costs of their New York Fashion Week show productions for the September 2022 season. The grant programme supported the vibrant return of the New York fashion industry post-COVID-19, attract and retain New York’s fashion talent, and enable more small and independent New York-based designers to participate in recovery efforts. The US department of agriculture (USDA) in April committed $50 million to assist eligible apparel manufacturers of worsted wool suits, sport coats, pants or pima cotton dress shirts; pima cotton spinners; and wool fabric manufacturers and wool spinners. The Cotton and Wool Apparel (CAWA) programme was part of USDA’s Pandemic Assistance for Producers initiative and the department’s efforts to help US’ food, agriculture and forestry sectors get back on track. CAWA supported entities that witnessed a decline of at least 15 per cent in 2020 gross sales or consumption of eligible products compared to the applicant’s gross sales in any of calendar years 2017, 2018, or 2019. In August, several North Carolina-based educational institutions joined hands with the Central American Technological University in Honduras to educate and train students for the next-generation textile workforce to meet a rising tide of nearshoring and onshoring in Honduras, Central America and the United States. The initiative was backed by the US department of state. In October, New York governor Kathy Hochul signed a piece of legislation to support the state’s textile industry through economic development programmes. The New York Textile Act helps connect farmers who produce plant or animal fibres with the textile industry in ways that support innovation, sustainable development and new marketing opportunities for plant and animal fibres grown in New York. New funding worth $189,000 was announced in November for Delaware Valley Industrial Resource Centre (DVIRC), an economic development business consulting firm, through Pennsylvania’s Manufacturing PA Training-to-Career programme to address the need for sewing machine operators in south-eastern Pennsylvania’s textile industry by creating a training collaborative.
Logistics
The US department of transportation announced in March making available $450 million under the Bipartisan Infrastructure Law for American ports, by far its largest investment ever. The funds under the Port Infrastructure Development Programme grants will make infrastructure upgrades, from constructing new berths and restoring docks to extending rail lines. This investment was also part of the government’s Port Action Plan. President Biden in June signed the Ocean Shipping Reform Act of 2022 that established additional requirements and prohibited conduct for ocean carriers; requires the Federal Maritime Commission (FMC) to issue rules related to certain fee assessments, prohibited practices and establishment of a shipping registry. The act also authorised the FMC under certain circumstances to issue an emergency order requiring common carriers to share information directly with shippers and rail and motor carriers.
Sustainability
The New York state senate passed a bill in May to prohibit the use of perfluoroalkyl and polyfluoroalkyl substances (PFAS), or ‘forever chemicals’, in apparel. The bill focused on ‘intentionally added chemical’ or those that serve an intended function in the product. The California state assembly too in August passed a bill to end the use of PFAS in new fabrics and textiles. It was signed into law in October. New waste ban regulations that promote recycling and reuse, reduce trash disposal and foster recycling business growth took effect starting November 1 in Massachusetts state. The regulations will ban the disposal of mattresses and textiles in the trash. The state’s department of environmental protection also announced a new grant offering to invest in expanding the infrastructure for collecting food waste, mattresses and textiles. The California Air Resources Board approved in December the final proposed 2022 Scoping Plan, a road map to address climate change that cuts greenhouse gas emissions by 85 per cent and achieves carbon neutrality in 2045. The plan’s transition away from fossil fuels will benefit residents of the state disproportionately burdened by transport-induced pollution. By 2045, this economy-wide shift away from fossil fuels seeks to reduce fossil fuel consumption (liquid petroleum) to less than one-tenth of what we use today—a 94 per cent reduction in demand, cut greenhouse gas emissions by 85 per cent below 1990 levels, reduce smog-forming air pollution by 71 per cent, create 4 million new jobs and save Californians $200 billion in health costs due to pollution in 2045.
E-commerce
The US House of Representatives late this year passed three consumer protection and commerce bills, including the Integrity, Notification and Fairness in Online Retail Marketplaces (INFORM) for Consumers Act, which requires online platforms to verify the identity of high-volume third-party sellers by authenticating the seller’s name, tax ID, bank account information and contact information. This additional transparency will help combat the online sale of stolen, counterfeit and dangerous consumer products and enable consumers to contact and seek recourse from such sellers.
Source: Fibre2Fashion
