B V R Subrahmanyam named CEO as Iyer exits Niti Aayog
Three clusters to be set up to boost businesses in city
Andhra Pradesh woos investors with ‘lowest’ cost of doing business, access to ASEAN markets
How will the country’s textile and garment industry develop in the future?
INTERNATIONAL
Indonesia keen on signing PTA with Bangladesh by April
Vietnam to boost exports to Middle East
Textile exporters threaten to close units if RCER withdrawn
Bangladesh sees less yarn import as textile industry builds capacity
Textile industry sustainability remains too fragmented
What Washington really wants in Bangladesh?
NATIONAL
The Centre is working to formulate 107 Quality Control Orders (QCOs) for the technical textile sector, a move aimed at protecting the interest of domestic textile players and also improving exports, ET NOW's Sameer Dixit reported, citing sources. Many new technical textile items will be brought under quality control order and there is also a discussion on 48 QCOs for technical textile items in the medical sector. To deliberate on the issue, a consultation meeting for 34 QCOs is scheduled for February 28. Discussion is also going on to bring 48 technical textile items under the QCO in the medical sector. The development is a significant one for the sector as India is heavily reliant on imported machinery and specialty fibre for technical textiles. Technical textiles are those textile materials used primarily for their technical performance and functional properties, and not for their aesthetic or decorative qualities.
Source: Times now news
In a surprise move, the Union government on Monday appointed former commerce secretary B V R Subrahmanyam as the chief executive officer of the Niti Aayog, succeeding Parameswaran lyer, who has been appointed as an executive director at the World Bank. Iyer, who was appointed for a two-year tenure with effect from July 2022, would demit Niti Aayog after a short stint of about eight months. Subrahmanyam has been appointed as Niti Aayog CEO for two years while Iyer has been appointed in the World Bank for three years. Subrahmanyam was a 1987 batch IAS officer of the Chhattisgarh cadre and a native of Andhra Pradesh. He has an engineering degree and a management degree from London Business School. He is a widely experienced bureaucrat having worked as chief secretary of the Union Territory of Jammu and Kashmir, additional chief secretary (home), Chhattisgarh and joint secretary in the PMO between 2004–2008 and March 2012–March 2015, serving under Manmohan Singh and Narendra Modi. Sources said Subrahmanyam with his experience in commerce ministry would bring the much-needed expertise to the country’s top think tank as India plays an increasingly assertive role in the global geopolitical political-economic landscape. Iyer, a 1981-batch IAS officer of the Uttar Pradesh cadre, is a well-known sanitation specialist, and is best known for spearheading Modi government’s flagship scheme, the Swachh Bharat Mission between 2016 and 2020. Iyer had taken voluntary retirement from the Indian Administrative Service in 2009. He had also worked as a senior rural water sanitation specialist at the United Nations.
Source: Financial express
The Covid-19 pandemic exposed the vulnerabilities in the globalised supply chain networks when production activities were suspended in the major manufacturing and assembling hub of the world, that is, China in 2020. This supply shock, thereafter, led to demand shocks around the world when nationwide lockdowns were announced elsewhere in Asia, Europe, Oceania and Americas. This economic gloom continues even in the current post-pandemic world with the aftermath of Chinese “Zero-Covid” policy of frequent and uncertain lockdowns leading to further global factory slowdown. The issue of sustainable, resilient and stable global supply chains continues to remain a moot point. The “China plus one” business diversification model has been floated around once again since the outbreak of the pandemic, especially in the geostrategic and geoeconomic realm of the Indo-Pacific. Due to low production costs and large consumer base, China has attracted maximum Western and Japanese businesses leading to economic overdependence and high concentration of business interests in China alone over the last thirty years or so. Devised in 2013, “China plus one” or simply, “Plus one “strategy had been gaining momentum since 2008 when Western and Japanese MNCs were looking out for business diversification, that is, moving out of China to reduce dependence and thereby, expand operations outside China. However, this strategy became actually popular during the former US President Donald Trump’s reign who called out for “Make America Great Again” and initiated a tariff and trade war with China. As the U.S.-China trade tensions heightened, several firms were devising their respective ‘decoupling from China’ strategies and diversifying their businesses to other locations in Southeast Asia like Taiwan, Vietnam, Indonesia, Malaysia, Thailand and in South Asia like India and Bangladesh. Japan has been one of the most pro-active proponents of the ‘China plus one’ strategy where “China-exit” subsidies were offered to various Japanese firms to relocate to ASEAN countries, Japan, India etc. so as to avoid supply chain disruptions- especially the ones experienced during the pandemic, in case of pharmaceuticals, critical medical supplies, semiconductors and other temporary trade restrictions. The diversification strategy is also being promoted due to the declining cost advantage of China, aggressive Chinese military and foreign policy in the form of “wolf-warrior diplomacy”, China’s data privacy laws and the huge mistrust between China and the West. De-risking supply chains has been a top priority for the Quadrilateral Security Dialogue (QUAD) nations during the pandemic when the Japan-India-Australia trilateral launched the Supply Chain Resilience Initiative (SCRI) in 2021 and the U.S. launched the Indo-Pacific Economic Framework (IPEF) in 2022. All four nations of the QUAD have significantly high trade exposure with China and are aware of the fact that absolute and complete decoupling from China is not a viable and feasible option. Yet, given the geopolitical tensions as well as the economic stresses of over-dependence on one nation alone, the QUAD nations are aiming to rebuild resilient global supply chains. The year 2022 has been a momentous one for India, economically, as it became the fifth largest economy in the world and registered the highest-ever FDI-inflows and exports. India has been focussing its growth engines on the logistics and infrastructure sectors in order to be a network hub, rather than a node, in the global value chains. “China plus one” business strategy in the backdrop of the COVID-19 pandemic bestows India with a remarkable opportunity to integrate itself in high-end sophisticated and resilient supply chains, especially in the Indo-Pacific. In this ‘resilient supply chain model’, India has an opportune moment at capitalising groupings like QUAD, SCRI, and IPEF to attract global value chains towards its own manufacturing and industrial sector to promote the vision of ‘Atmanirbhar Bharat’. The crucial thing is to recognise what worked well for China and how to increase India’s cost advantage by reducing infrastructural bottlenecks and enhancing export competitiveness. Considerabletrials, however, stand in the way of India gaining leverage in the “Plus one” diversification model. For example, despite the obvious and strong strategic partnership of India-Japan and India figuring in the list of top destinations for relocation of Japanese firms outside of China, there have been far fewer takers than estimated and expected. At a policy level, India has been insisting for entire supply chain relocation to the Indian businesses while the Japanese firms, persistent on high-end sophistication and precision, are reluctant and have been calling for a step-by-step approach of importing inputs from other nations first. Thus, many Japanese firms have been preferring other South and Southeast Asian nations over India in this regard. For complex manufacturing of high-precision products like medical devices and batteries, a phased approach is required so as to maintain the quality of finished products. So, India’s policymakers need to keep this in mind while demanding complete relocation of sophisticated supply chains. As the example of Japanese firms portray, policy clarity and a step-by-step approach for different product supply chains are necessary for India to transcend into a global manufacturing hub. Currently, India is being considered as an assembling hub more than a manufacturing one in the reconfiguration of resilient global supply chains. The Production-Linked Incentive (PLI) scheme launched by the Government of India,under the purview of Atmanirbhar Bharat, provides the right push for local production and technology localisation in several sectors like automobiles and auto components, IT hardware and electronics, mobile and allied manufacturing, medical devices, pharmaceuticals, advanced chemistry cell batteries, drones, white goods, metals and mining, solar modules, textiles and apparel, electric component manufacturing etc. The PLI scheme supports not only the labour-intensive sectors but also boosts domestic production capabilities, thereby reducing import bills without venturing into excessive economic nationalism. India’s Bharatmala(for roads and highways), Sagarmala (to enhance the port modernisation and logistics sector), PM Gati Shakti National Master Plan (for multi-modal connectivity) along with the PLI scheme are steps in the right direction to maximise ease-of-doing business, infrastructure development and employment generation coupled with supply chain resilience. These efforts need to be synchronised with the emerging trilateral and multilateral economic architecture in the Indo-Pacific like the SCRI and IPEF to aid trade facilitation, decarbonisation, digital economy, small and medium enterprises and most importantly, supply-chain resilience. Lately, there have been calls made by several European bureaucrats and firms amidst the Russia-Ukraine crisis for a “Europe plus one” strategy to come out of the gas shortages and electricity cuts. India again becomes an attractive destination for investment and diversification for these European companies based on its lower production cost advantages and favourable business climate. Such “plus one” strategies provide ample scope for India to capitalise on the emerging economic architecture in the Indo-Pacific and partner with not only the other QUAD members but also Taiwan, South Korea, New Zealand, Pacific Island states, ASEAN countries and the European Union. Such multilateral collaborations will enhance the geoeconomic relevance of the Indo-Pacific mental map along with its already-acknowledged geopolitical significance. Policy flexibility, industrial clustering and technology will be the pillars of a future resilient global supply chain network. QUAD nations including India should lead the way forward, especially with India being the chair of G-20 in 2023 and ‘build back better’ in the post-pandemic economic recovery. India must catapult itself to a sourcing, manufacturing, and assembling hub in resilient, diversified, and sustainable global value chains.
Source: Financial express
The district administration is planning to set up various clusters in Mangalagiri and Tenali under the scheme cluster development programme to encourage businesses by providing better marketing services for small-scale businesses. The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India has adopted the cluster development approach as a key strategy for enhancing productivity and competitiveness, with capacity building of Micro and Small Enterprises (MSEs), including their collectives in the country. After the reorganisation of districts, the major industries such as limestone, granite and aqua-related industries, were included in Palnadu and Bapatla districts. With an intention to encourage business and provide more employment opportunities, the officials are planning to set up clusters in Mangalagiri and Tenali. These clusters will benefit the people conducting similar businesses in the same area. Over 2,000 people in Mangalagiri depend upon the handloom business. The officials have prepared proposals to set up a cluster at a cost of `10 crore in that area. Along with this, a gold and silver cluster in Tenali would also benefit several goldsmiths. “We are planning to set up three clusters in the Guntur district including a textile in Mangalagiri as well as a dal mill cluster, gold and silver work cluster in Tenali, which would benefit the local people immensely,” the project director of Guntur industries sector Sudhakar said to The New Indian Express.
Source: New Indian Express
The Government of Andhra Pradesh, ahead of its Global Investors Summit 2023 to be held on March 3 and 4 in Visakhapatnam, has assured to provide the ‘fastest’ single-window clearance, quality power, plenty of land and state- of-the-art infrastructure to investors from Maharashtra seeking to set up base in the east coast to access markets in the ASEAN region. The State Government has also attracted the attention of investors to Andhra Pradesh’s vast coast line with six operational ports and four ports under construction “having potential for lowest cost of doing business.” “With its diversified portfolio across industry [including sectors such as automobiles, chemicals, aerospace & defence, pharmaceuticals, textiles], infrastructure [ports, road network], IT/ITeS, start-up ecosystem, gems and jewellery, finance and tourism, the state boasts of the highest per capita income of $3,800 in 2021-22,” according to Gudivada Amarnath, Minister for Industries, Infrastructure, Investment & Commerce, Information Technology, Handlooms & Textiles, Andhra Pradesh. “At the moment, 89 large projects are under active implementation with a total investment of ₹2.2 lakh crore ($27.54 billion) with potential to create employment for With the availability of large industrial land banks, 530 industrial estates, 293 industrial parks, 31 MSME parks, 6 special economic zones (SEZs), 3 information technology SEZs, and 3 major industrial corridors, Andhra Pradesh is wooing investent in the areas of agriculture, agro-based industries, maritime sector, manufacturing, food processing, ports, IT and electronics, handlooms, and textiles, he added.
Source: The Hindu
1. What is the current status of my country’s textile and garment industry in the world?
my country’s textile and garment industry is currently in a leading position in the world, accounting for more than 50% of the global garment manufacturing industry. The scale of my country’s textile and garment industry occupies a dominant position in the world, with more than 1 million enterprises. In addition, my country is also the world’s largest clothing exporter, with exports of textile and clothing products reaching 922 billion yuan in 2017.
Note: According to the China National Textile and Apparel Council, my country’s total textile fiber processing will account for more than 50% of the world’s total in 2020. According to the General Administration of Customs, my country’s textile and clothing exports will reach US$323.34 billion in 2022.
2. What do you think are the advantages and disadvantages of my country’s textile and garment enterprises, and what should they do?
my country’s textile and garment enterprises have certain advantages, such as abundant labor force and economically favorable tariffs. But there are also some disadvantages, that is, the overall management level and quality control level are not high, and the production capital is insufficient. At present, we still need to continuously improve the overall management level and quality control level, and we should pay attention to the environmental protection of enterprises and strengthen the application of environmentally friendly materials. Pay attention to personnel training and improve technical level.
3. How much growth space can the textile and garment industry have in 2023?
As consumers pay more and more attention to environmental protection and fashion, the textile and garment industry will usher in a broader development space in 2023. In terms of raw materials, green raw materials such as new organic agriculture and recycled fibers will inject new impetus into the textile and garment industry. In terms of production technology, intelligent and antibacterial and deodorizing technologies will be more used. In addition, with the development of wearable technology, new market opportunities will be injected into the textile and garment industry.
4. What should textile and garment enterprises do this year?
In 2023, textile and garment enterprises should seize market distribution rights, develop more advanced textile machines and new materials, vigorously promote original designs, develop new industry products, and meet more diverse needs of customers. Enterprises should also consider the Internet, bringing the traditional textile and garment industry into new growth opportunities. In addition, enterprises should also increase investment in technology to provide textile and garment services with precise positioning and intelligent solutions to enhance their competitiveness.
5. What are the opportunities for my country’s textile and garment exports?
The opportunities for China’s textile and clothing exports in 2023 mainly lie in: first, the EU is implementing policy changes in the clothing field, and Chinese companies can obtain more export opportunities; second, technology is constantly updated, and customized and “intelligent” processing technologies can improve Quality, to attract more customers; third, the continuous development of Chinese partners can expand the vast overseas market, thereby stabilizing the overall operation of the market.
Source: Digital journal
INTERNATIONAL
Indonesia is keen on signing a Preferential Trade Agreement (PTA) with Dhaka by April this year even if has finalised its end on formulating a revised offer list for the negotiation of BI-PTA, which it will exchange with Dhaka’s revised offer while also expressing readiness to hold a meeting of the 4th Trade Negotiating Committee of BI-PTA February end or first week of March. Media reports maintained this, citing sources who have reportedly maintained the Indonesian Embassy in Dhaka has already informed the Bangladesh Foreign Ministry of the same. Speaking to the media, the concerned officials further said to expedite the negotiations, Indonesia has already sent some documents to Bangladesh on the proposed BI-PTA agreement even if in September last year, Bangladesh had sought a revised list of goods from Indonesia on which Jakarta could offer tariff concession for Bangladeshi products before signing the proposed PTA.
Source: Apparel resources
According to the Vietnam Trade Office in the United Arab Emirates (UAE), industrial and agricultural production in the country is quite limited so it must import food and consumer goods to meet local needs. This presents an excellent opportunity for Vietnam to increase its exports to the market. The number of tourists to the UAE this year is forecast to increase sharply, leading to rising demand for food and beverages, textiles, and footwear. This is a good opportunity for Vietnam to boost the export of these items. In particular, Vietnam leads the world in exporting frozen pangasius and fillets to the UAE, with a market share of over 50%. Vietnam also dominates the UAE and other Middle Eastern countries in exporting farm produce and fruit such as dragon fruit, watermelon, and lemons.
Source: The En.Vietnam plus
Textile exporters have threatened to shut down their units and start protest from next week if Regionally Competitive Energy Rates (RCER) were withdrawn from March 1, said Muhammad Amjad Khawaja Senior Vice Chairman Pakistan Hosiery Manufacturers Association (PHMA). Addressing a press conference under the banner of All Pakistan Textile Associations Faisalabad, he said that the industrial sector was experiencing continuous crisis for the last many years. Commenting on the current negotiation between the Government and IMF, he said that the energy crisis coupled with an exorbitant increase in gas and electricity rates and unpredictable exchange rate has pushed the export sector to the verge of collapse. He said that we have been explaining our view point on these issues but the government remained adamant. He said that most of the units are working with fifty percent installed capacity while unemployment has made the lives of workers miserable. He said that workers are actually part of their families and they could not remain aloof from their hardships due to the skyrocketing inflation. He said that exporters want RCER to survive in the international markets and earn precious foreign exchange for the country. He said that exporters are not demanding any subsidy which is being misinterpreted by the government. He said that the government was fully convinced and was extending regionally competitive energy rates but now under the grab of an IMF tranche of $1.5bn this facility is being withdrawn from March 01. He said that it would be tantamount to kill the golden egg laying hen and added that the government was badly implicated in the political affairs and has failed to understand the core issues of the masses. He said that before regime change the Pakistani exports were 32 billion dollars with a lion’s share of $24bn of the textile sector. He said that unluckily, now the total exports have dwindled down to 19.5bn. Similarly, the garments sector, which was making tremendous progress, is now showing negative growth. He said that it seems that the government is intentionally pushing the country and exports towards the closed alley. Dr. Khurram Tariq, President Faisalabad Chamber of Commerce & Industry (FCCI) strongly contradicted the notion that IMF has directed to enhance the gas and electricity tariff. He said that their demand is very genuine to ensure a hundred percent recovery from the power sector with minimal transmission and dispatch losses. He said that currently recovery of one trillion is pending which is increasing with every passing day. He said that government high-ups have no tangible reply except terming it “political economy”. He said that actually the pilferage amount is now being recovered from the law-abiding citizen and the industrialists who are responsibly discharging their due liabilities. He further said that during the first seven months of the current fiscal, electricity to the tune of 380bn have been stolen which is expected to jump to 520bn by the end of this financial year. Quoting the annual report of NEPRA, he said that the line losses of FESCO are minimum, while in case of PESCO it is 38%. He said that the export sector is getting electricity at Rs. 20 per unit which would jump to Rs. 40 after the withdrawal of this facility. Similarly, Sindh is getting gas at $4.5 per mmbtu while in Punjab it is being provided at $9. He said that some elements try to cover up this anomaly under the 18th amendment but it is very clear that it relates to the right of use and not to the price fixation of gas. He said that Miftah Ismail had chalked out a plan to eliminate the circular debt but this is still pending for the approval of cabinet. He further said that exporters are facing a liquidity crunch due to high rates of electricity and gas. He said that the government has enhanced sale tax from 17 to 18% and its refunds are also being delayed. He said that most of the exporters have not yet received the refunds of Rs. 4bn pertaining to the month of September last. Similarly, their DLTL refunds are also pending which has squeezed their working capital. He said that no doubt some issues are new and many are old but it is actually a matter of management and governance to efficiently resolve the issues. Arif Ihsan Malik, former Chairman APBUMA, said that every government encourages its export sector and hence RCER are imperative for Pakistan so that our exporters could also compete with their business rivals from India, China, Bangladesh, Cambodia and Vietnam. He said that our year-on-year exports are decreasing at the rate of 15% which has shattered our economic and social fabric. He said that due to inclement circumstances, most of units are working with only 40% of their installed capacity and warned that if energy rates were enhanced 75% textile units would be closed down. He said that Pakistan has 50% black or undocumented economy and government intends to add further burden on the existing taxpayers. He demanded that it is the sheer failure of the commerce minister and he must resign and exporters should only accept negotiation offer from the ministry of finance. He said that first protest sittings would be held at Kashmir underpass after one week followed by similar protests in different parts of the city if their demands were not accepted. Mian Kashif Zia, Mian Farrukh Iqbal and Syed Zia Alumdar Hussain also addressed the press conference which was followed by a question answer session. Rana Altaf Ahmad, Ch Mohsin, Hazar Khan and other members also attended this meeting.
Source: The brecorder.com
Bangladesh’s textile industry is importing less yarn as the industry entrepreneurs inject fresh investment of $4 billion as it prepares for greater capacity expansion by 2024. As per Bangladesh Textile Mills Association (BTMA), new investment plans of about $1 billion have been stated. Sector people said beyond BTMA’s calculations, a further investment of about $1 billion is coming in the primary textile sector in the next year, a portion of which will be invested in the non-cotton sector. Overall, the sector will see a 3.5 million spindles capacity expansion. Industry leaders opined that the sector leaders are consciously building manmade fiber (MMF) capacity. Md. Saleudh Zaman Khan, Managing Director, NZ Tex Group and Director of BTMA said, “We spinners are moving towards new investments focusing on MMF. And in the next 4-5 years the country’s spinning sector is expected to grow by 50% and self-sufficiency in MMF manufacturing.” As for the textile industry’s recent growth, Md. Saleudh Zaman Khan said, “Primary textile sector in Bangladesh has witnessed tremendous growth in the last 10 years. The sector is now capable of delivering most of the demand for knit, woven, and denim fabrics.” “Having said that, Bangladesh’s garment backward linkage industry can supply 98% of cotton-made yarn. We have that ability and not to mention if the cotton yarn demand rises 10% annually – then we can also cater to that,” BTMA Director added. Bangladesh’s textile industry produces most of its yarn to cater to its massive apparel industry demand – still the country needs to import quite a lot of yarn from abroad to mostly produce high-end apparel. But due to the recent investments, there is a drop in yarn import. Although Bangladesh source yarn from diversified markets – China and India are the major yarn suppliers of the country’s textile industry. And the recent status showed that during January-October 2022 period, Bangladesh imported $1.26 billion worth of yarn from China – which is a key yarn supplier to Bangladesh – that was $1.35 billion worth of yarn in 2021, according to market insight tool TexPro. In volume terms, Bangladesh imported 348.438 million kg of yarn from China during the first ten months of 2022, compared to 418.562 million kg of yarn in 2021, as per the TexPro data. TexPro data also showcased that since 2020, China’s yarn export to Bangladesh plunged to $835.451 million or 302.216 million kg. But before COVID, the shipment was $1.06 billion in 2019, $1.21 billion in 2018, and $928.314 million in 2017. While Bangladesh’s other previous key yarn supplier i.e. India has also seen a dip in yarn export in Bangladesh. A significant reason behind this yarn import drop is the new investment in the textile sector in Bangladesh. As the country is rearing to reap the rewards of European and the USA fashion buyers shifting sourcing from China to reduce their dependency on the country. In 2021, Bangladesh’s primary textile sector invested a mammoth Tk57.90 billion (BTMA data) and added more than 745,400 new spindles to their existing as well as new capacity. The country’s textile millers took the benefit of the COVID-induced upset supply chain and came up with new investments to improve capacity. Bangladesh’s top textile businesses are planning to go for capacity expansion within the next 1 to 2 years. As global buyers are increasingly looking for stable and sustainable sourcing destinations. And Bangladesh perfectly fits the bill. MA Jabbar, Managing Director, DBL Group said to the media, “DBL has now increased its investment in the production of blended yarn to produce high-end apparel items like sportswear, outerwear, and lingerie items.” While another top leader in Bangladesh’s primary textile sector – Envoy Textiles Ltd has invested in capacity expansion to set up a synthetic blended yarn production facility at an investment of Tk1.25 billion. The new unit will produce 12 tons of yarn per day. They are enhancing spinning capacity to produce cotton and synthetic blended ‘expanded yarn’ as a substitute for imported yarn. According to the BTMA, more than 433 spinning mills were in operation in Bangladesh in 2020, which had a combined production capacity of 3,270 million kilograms of yarn per year. Local spinners can supply nearly 85-90% of the required yarn and fabrics for knitwear, and 40% for woven garments.
Source: The Textile today
This is nothing new, of course. But just how far have we come, and exactly how much progress is the industry making right now? Unfortunately, I don’t have the exact answer to either of these questions, but we can certainly see there is an effort there by global fashion brands to lessen their impact. More frequently we’re seeing the launch of partnerships to deal with textile waste – an increasingly troubling problem the industry is desperate to tackle. Last week, H&M joined forces with waste management firm Ramondis to collect, sort and sell used and unwanted garments and textiles. We’re also seeing a rise in the number of reuse and ‘pre-loved’ services by big fashion brands. There’s also investment in the development of alternative fibres, and textiles made from recycled and sustainable produced materials. Lenzing and Södra are doing just this with Portuguese fabric manufacturer Riopele, while a team of researchers at Rensselaer Polytechnic Institute in New York were recently awarded a US$745,000 grant to explore sustainable alternatives to the synthetic textiles used in fast fashion. But while the onus is certainly on those producing clothing to ensure they are doing so in a sustainable way, governments also have a role to play in ensuring the right policies and frameworks are in place to help companies achieve their goals. A consultation on an Extended Producer Responsibility (EPR) scheme for clothing and textiles was expected from the UK Government’s Department for Environment, Food and Rural Affairs by the end of 2022. This has not happened, and last week the Environmental Audit Committee was told there is unlikely to be one in the near future. The delays are holding up progress in tackling the growing issue of textile waste. Only last year the Committee warned that in the absence of effective policies to deal with textile waste, over 300,000 tonnes of textiles were being thrown into household black bins every year and sent to landfill or incinerators. This is a problem that needs to be tackled head on and with all players on the same page. It requires everyone to put their money whether their mouths are if any real impact is to be made.
Source: The just-style.com
Bangladesh Nationalist Party (BNP) and their ideological ally Jamaat-e-Islami (JeI) must be in triumphant mood thinking America may soon either stop or decrease buying apparel products from Bangladesh as recently the United States has accused Bangladesh of exporting clothing with counterfeit international brands. According to media reports, the United States Trade Representative (USTR) on February 10, 2023, through the Bangladesh Embassy in Washington, has pressed a complained to the Ministry of Foreign Affairs about the export of counterfeit clothes from Bangladesh to the country using popular US and French brands. The letter asked to respond to the allegations by February 13. Dhaka has already sent reply and sought time for giving detailed explanation on this matter. But industry insiders are fearing, USTR may recommend punitive measures on Bangladesh and substantially reduce import of textile products. In a letter sent through the embassy, the American Apparel and Footwear Association (AAFA) and the Paris-based Union des Fabrics (UNIFAB) have accused Bangladesh of supplying counterfeit brands. In the complaint, AAFA said, despite Bangladesh being an important source for the procurement of ready-made garments, there is an absence of established policies to protect intellectual property. The two organizations submitted the complaint with the Office of the United States Trade Representative (USTR) in January last year. Based on that complaint, the USTR has informed the Ministry of Commerce of Bangladesh about the initiation of the review. According to the AAFA complaint, 56 shipments of counterfeit products manufactured in Bangladesh were seized in 2022 – a 50 percent increase over 2021. Australia, Italy, Malaysia, Trinidad and Tobago, Japan, United Arab Emirates, United Kingdom, United States, Romania, Saudi Arabia, Germany and the Philippines have been accused of supplying counterfeit goods. If the AAFA and UNIFAB complaint are proven after the review, the United States may take measures such as imposing additional duties, setting quotas, or even banning the clothes made in Bangladesh. As a result, other countries that buy clothes from Bangladesh may also significantly reduce their purchase orders. Bangladesh’s main export market is the United States. About 20 percent of the total exports of Bangladesh as a single country are exported to the United States. According to data from the US Office of Textiles and Apparel (OTEXA), Bangladesh’s garment exports to the country in 2022 increased by 36.4 percent compared to the previous year in 2021 and reached nearly US$10 billion. The United States imports about US$100 billion worth of clothing annually, with Bangladesh accounting for about 10 percent. Export Promotion Bureau (EPB) data analysis shows that 20 years ago in 2001-02 fiscal year i.e. in 12 months, Bangladesh earned a total of US$5 billion from export of goods. And now in one month more than export earning only from the garment sector stands at US$4.5 billion dollars. Hopefully Bangladesh authorities will be able to act fast in resolving this matter with the US authorities soon. Because, if the matter gets further complicated and US reduces of stop buying apparel items from Bangladesh, it will directly affect hundreds and thousands of workers – mainly female in the sector, while a significant portion of these workers may become jobless. It surely will be a massive disaster both for Bangladesh’s garment sector as well the country, as political opponents of the ruling Awami League will certainly try to take undue advantage of the situation. Next general election in Bangladesh On February 15, 2023, State Derek Chollet, the Counselor to its Secretary of State paid a courtesy call on Bangladesh Prime Minister Sheikh Hasina. During the meeting Sheikh Hasina said the next parliamentary election would be held here in a free and fair manner as the Election Commission (EC) of Bangladesh is completely independent. She told Chollet, “The next election will be fair and free. I fought for democracy throughout my life”. Sheikh Hasina said if the people vote for Awami League (AL) in the next general election, her party will take the charge of governing the country. “I never want to come to power through vote-rigging”, she added. The prime minister said she always struggled for the people’s rights to food and vote. She said the first-ever EC’s reconstitution law was passed in parliament and then a neutral election commission was constituted on the basis of the law. The EC is completely independent and it has administrative and financial independence, she added. The prime minister said there is no base of any political party other than Awami League (AL) at grassroots level in the country. BNP and Jatiya Party were born in the cantonment, she said. Focusing on the development of Bangladesh in different socio-economic index, Sheikh Hasina said the transformation of Bangladesh has become visible in the last 14 years during her government. It has been possible due to the continued democratic practice and stability in the country, she added. Russia-Ukraine war and Rohingya issues also came up for discussion in the meeting. The prime minister said the world should stop this war as it has caused high inflation and commodity prices throughout the globe. “A war never can bring any benefit for mankind”, she quoted. Mentioning that the USA is the most powerful country, she said the USA can take steps to stop the war. The disputes can be settled through negotiation, she said. About Rohingya, the premier said the forcibly displaced Myanmar nationals have become a big burden for Bangladesh, adding local communities of Cox’s Bazar are suffering and they have become minority due to the influx of such huge number of Rohingyas there. She said the Rohingyas are being involved in different criminal activities like drug and human trafficking, militancy and infightings. The premier also said the displaced Myanmar nationals have been staying in Cox’s Bazar for five years and now it is difficult to keep them there as its natural environment and the livelihood of locals are at stake. In this context, Derek Chollet thanked the prime minister for giving shelter to the Rohingya people on humanitarian ground. He said they would try their best for the repatriation of the displaced people. However, the counselor to the Secretary of State of US hoped the repatriation will be possible when a democratic government come again in power in Myanmar. He said some recent high-level visits of US officials to Bangladesh are a reflection of the importance of the bilateral relations between the two countries. This relation will grow further, Chollet added Can we believe what Derek Chollet said? Considering Biden administration’s tendencies of playing rogue diplomacy throughout the world and his eagerness of pushing the world towards WWIII, and possibility of Biden getting impeached soon, it is rather impractical to believe he will be sincere with Bangladesh or any other country in the world. Let us not forget, Biden did not invite Bangladesh to his so-called Summit for Democracy, which will take place on March 29-30 this year. In our neighboring Bharat, we are seeing how George Soros, one of the top donors of Joe Biden’s Democratic Party is attempting to play foul, whereas Soros has openly proclaimed of unseating Prime Minister Narendra Modi, which is seen by analysts are an evil attempt of Soros and his Islamist-leftist cronies in destabilizing Bharat and disrupting its prosperity.
Source: The Hindu post
