INTERNATIONAL
Textile Raw Material Price 2016-08-02
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1038.25 |
USD/Ton |
-0.07% |
8/2/2016 |
|
VSF |
2395.97 |
USD/Ton |
0.32% |
8/2/2016 |
|
ASF |
1898.69 |
USD/Ton |
0% |
8/2/2016 |
|
Polyester POY |
1063.87 |
USD/Ton |
-0.77% |
8/2/2016 |
|
Nylon FDY |
2275.42 |
USD/Ton |
0.33% |
8/2/2016 |
|
40D Spandex |
4339.87 |
USD/Ton |
0% |
8/2/2016 |
|
Nylon DTY |
5619.23 |
USD/Ton |
0% |
8/2/2016 |
|
Viscose Long Filament |
1309.50 |
USD/Ton |
-0.69% |
8/2/2016 |
|
Polyester DTY |
1936.37 |
USD/Ton |
0.39% |
8/2/2016 |
|
Nylon POY |
2071.99 |
USD/Ton |
0% |
8/2/2016 |
|
Acrylic Top 3D |
1187.44 |
USD/Ton |
-0.25% |
8/2/2016 |
|
Polyester FDY |
2486.39 |
USD/Ton |
0% |
8/2/2016 |
|
30S Spun Rayon Yarn |
2968.59 |
USD/Ton |
3.14% |
8/2/2016 |
|
32S Polyester Yarn |
1808.28 |
USD/Ton |
0% |
8/2/2016 |
|
45S T/C Yarn |
2418.57 |
USD/Ton |
0% |
8/2/2016 |
|
45S Polyester Yarn |
3134.35 |
USD/Ton |
2.46% |
8/2/2016 |
|
T/C Yarn 65/35 32S |
2395.97 |
USD/Ton |
1.27% |
8/2/2016 |
|
40S Rayon Yarn |
1958.97 |
USD/Ton |
0% |
8/2/2016 |
|
T/R Yarn 65/35 32S |
2350.76 |
USD/Ton |
0.65% |
8/2/2016 |
|
10S Denim Fabric |
1.38 |
USD/Meter |
0% |
8/2/2016 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
8/2/2016 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
8/2/2016 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
8/2/2016 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
8/2/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15069 USD dtd 02/08/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
100% man-made fibre yarns export from India was valued at US$20.76 million in June 2016, up 35.9 per cent YoY while volumes were at 7.82 million kg, up 40.5 per cent as compared to the same month last year. The total volume comprised 2.93 million kg of polyester yarn, 3.81 million kg of viscose yarn and 1.07 million kg of acrylic yarn. Polyester yarn exports were up 6.9 per cent in value while viscose yarn exports value surged 108.3 per cent during the month. Acrylic yarn exports saw a drastic plunge of 24.7 per cent in June. Unit price realization was down US cents 14 a kg for polyester from a year ago and that of viscose yarn was down US cent 1 a kg. Acrylic yarn unit price realization was down US cents 70 a kg year on year basis. Polyester spun yarns were exported to 49 countries in June with total volumes at 2.93 million kg, of which, 23.2 per cent was shipped by Turkey alone. Twelve new destinations were found for polyester yarn this June, of which, Canada, Argentina, Uganda, Algeria and Russia were the major ones. Turkey, Egypt and Indonesia were the fastest growing markets for polyester yarns while four countries did not import any polyester yarns during the month including Botswana and Nigeria. Viscose yarn export was at 3.81 million kg and were exported to 25 countries with Iran at the top, followed by Belgium. Both these markets accounted for 45.7 per cent of all viscose yarn exported in June. Brazil, Egypt, Germany and Indonesia were the fastest growing markets for viscose yarns while Portugal, United Kingdom, Canada, China and Turkmenistan were the new major markets. Pakistan, South Korea and Vietnam were the major ones among the 7 countries that did not import any viscose yarns during the month.
SOURCE: Yarns&Fibers
India's exports, which were on a decline for close to one-and-a-half years, have started picking up slowly in the past two months, Commerce Secretary Rita Teaotia said today. "Our exports have been on a downhill drive for close to one and half years. So this is a reflection of the global slowdown across the world and also the variations in the commodity prices. "Petroleum prices have come down. Commodity prices have been moderating. The third area is some currencies have devalued and that again affect the level of our exports," Teaotia told reporters. "Nevertheless, we have begun to see that the growing of market that we ourselves have. Our policies now beginning to kick in, we are seeing that last couple of months actually have seen narrowing of margins exports slowdown and marginal increase in several of the commodities. So we hope that we have turned the corner and we should see an uptick in exports. I do not want to predict as it is contingent on so many things in the world," she said. Teaotia was in the city to deliver a lecture at Administrative Staff College of India.
Replying to a query, she said that concluding trade agreements with other countries is a "complex one" and the country needs to look into all aspects. On Britain exit from European Union, she said, "India has to recalibrate its position with regard to the ongoing negotiations with EU as our lines of interest of both the parties (India and EU) may be modified." "So, both of us will need to assess our positions. But we are certainly interested to engage with Europe and were certainly interested to engage with UK also," she said. Earlier in her address she said India has so far concluded 16 trade agreements and is in the negotiating or reviewing with 19 other countries.
SOURCE: The Economic Times
The Federation of Indian Export Organisation (FIEO), in association with the Textile Sector Skill Council (TSC), organised an interactive session with textile manufacturers last night. Dr Swapna Mishra, director, Textile Sector Skill Council, in her presentation, elaborated the functioning and working of the council. She also created awareness regarding various schemes under the Pradhan Mantri Kaushal Vikas Yojna. She informed industrialists how the government would help in providing financial subsidies for the training of their employees. The industry could get benefits of the schemes whether to skill their current employees or they could make a new cluster of people for training. She also stressed that this would also create employment in the industry and by availing these schemes, the industry would also get skilled labour in Amritsar as the local industrial units were facing employee shortage. The textile industry of the city, which was once called the ‘Manchester of India’, is struggling with the onslaught of global slowdown. There are three kinds of power looms used by industries in the holy city. These are power looms are plain, automatic and shuttle-less. These machines are being used to manufacture shawls, stoles, blanket and denims.
Shawl Club secretary Piara Lal Seth said over 47 new units of shawl manufacturing with 400 shuttle-less rapier looms with electronic jacquards came up between the period of 2002 to 2013. Most of these units were woolmark licensee. About 4,500 latest embroidery machines have been installed by entrepreneurs in Amritsar during 2002-2009 for value additions. Dyeing and finishing, woolen and worsted spinning mills, cone dyeing of yarns and printing industries are well established here to support the textile industry in Amritsar which now stands to the international standards.The textile sector is being hurt by constant hike in the cost of raw material, electricity rates, VAT charges, property tax and other factors. As a result, the manufacturers and traders passed on the high input cost to the retailers. High tax also prevents the dealers from getting registered.
SOURCE: The Tribune India
The international cotton prices jumped to over 80 cents/ lb in the second half of July 2016 from an average of 70 cents/lb for the rest of the season. Significantly lower crops in the five largest producing countries and higher than expected demand led to tighter stocks at the end of 2015/16, at which time world ending stocks were estimated to have fallen by 12% to 19.7 million tons, informed a communication received here from Washington-based International Cotton Advisory Committee (ICAC). ICAC said that stocks outside of China decreased by 9%, to 8.4 million tons, which is the lowest level since 2010/11, when they reached 8.3 million tons. Furthermore, strong demand in China has reduced its national stocks by 12%, to 11.3 million tons.
Demand for cotton from the Chinese government’s reserve has been strong since auctions started in May 2016. On average, 26,000 tons of cotton have been offered daily, nearly all of which has been sold and total sales through the end of July are around 1.6 million tons, reducing China’s national reserve to 9.4 million tons. In 2015/16, China’s cotton production declined by 26% to 4.8 million tons, but cotton mill use in China decreased by 2% to 7.3 million tons, exceeding production by 2.5 million tons. Import quotas limited the total volume of imports to 940,000 tons in 2015/16, and sales from the reserve were used to meet the excess demand, ICAC informed. With regard to world cotton demand, ICAC said that it has declined by 1% to 23.9 million tons in 2015/16, but world production decreased by 18% to 21.3 million tons, contributing to the tight supply situation at the end of the season.
Declines in production occurred in the top five producers, which account for 76% of world output. India, the world’s largest cotton producer, saw its production fall by 11% to 5.7 million tons in 2015/16. As noted above, China’s production declined to 4.8 million tons, while output in the United States decreased by 21% to 2.8 million tons. Yields in Pakistan fell to their lowest level since 1998/99, resulting in a 34% drop in production to 1.5 million tons. Output in Brazil declined by 11%, to 1.4 million tons. In 2016/17, world production is predicted to increase by 8%, to 22.9 million tons. Gains in India, the United States, Pakistan and Brazil will offset the loss of production in China in 2016/17. Better cotton prices during the growing season will encourage farmers to use more inputs, such as fertilizer, in order to improve yields and take advantage of higher prices. In addition, weather has generally been more favorable this summer than in 2015. Although world production is expected to increase in 2016/ 17, consumption is projected to remain stable at 23.9 million tons. Mill use in China, the world’s largest consumer, is forecast to decrease by 3%, to 7.1 million tons, due to high cotton prices, low polyester prices, and limited imports. However, mill use may stage a modest recovery in India and Pakistan, where consumption is projected to increase by 2%, to 5.3 million tons, and by 1%, to 2.2 million tons, respectively. World imports are forecast to increase by 4%, to 7.5 million tons, as mill use continues to grow in countries that rely on imports. Shipments received by the world’s two largest importers, Vietnam and Bangladesh, are expected to rise by 19%, to 1.26 million tons, and 18%, to 1.21 million tons, respectively, ICAC said.
SOURCE: The Tecoya Trend
Garment makers in Tirupur have urged textile mills in their region to drop the move on increasing prices of hosiery yarn as cotton prices are cooling off. Cotton prices have come down by Rs 2000 per candy (about 355kg) and in this scenario, the inclination of mills to increase cotton yarn prices will totally affect the Tirupur garment export sector, said A Sakthivel, president, Tirupur Exporters' Association (TEA). Hosiery yarn prices, which were ruling at Rs 216 per kg in April, are now quoting at around Rs.250 per kg after three rounds of price increases. The increase in hosiery yarn prices has not been commensurate with the rise in cotton prices, said K Selvaraju, secretary-general, Southern India Mills' Association (SIMA). Even after accounting for the recent decline in cotton prices, the cost of clean cotton (after removing waste and short fibres) has increased by Rs 52 per kg since April, while hosiery yarn prices have gone up by only by Rs 34 per kg, he pointed out. About 70kg of combed hosiery yarn is typically produced from 100kg of cotton. Around 85 kgs carded hosiery yarn is made from 100 kg of cotton.
Sakthivel in a letter addressed to SIMA chairman M Senthilkumar requested to advice SIMA members not to resort to increasing of yarn prices when cotton prices are coming down. He said that they have an apprehension that the business created over a period of years may go out of India and the once the business is lost, it would be difficult to bring it back to India. Emphasizing that the yarn rate has not been increased to this level in their main competing country China and because of this, they are losing their competitiveness in the global market which not only affects their performance but also consumption of yarn from mills. He also stated that exporters are incurring losses as the 'Pound' has depreciated by 10% after Brexit.
SOURCE: Yarns&Fibers
Garment retailers in India have started gradually shifting from the maximum retail price regime (MRP) to fixed price regime after Union Finance Minister Arun Jaitley, while announcing the Union Budget 2016-17, announced a 2% levy of excise duty on garments and made ups with retail price of over Rs 1,000. This means, excise duty was levied on garments based on its MRP, irrespective of the actual realisation for the retailer. For example, a branded shirt with an MRP tag of Rs 1,400 is sold with a 50% discount. Then, the actual realization for the retailer works out to Rs 700. If the retailer sells the same shirt at “fixed cost” basis at Rs 700, there will be no change in the retailer’s realization. While the shirt will come under excise net if it is sold with MRP tag, it won’t attract the duty if it is sold with “fixed price” tag. In case the retailers offer seasonal discounts, being the usual practice to exhaust old stocks to make room for the new ones, they are required to pay excise duty on the portion of discount as well. It makes business sense to shift to ‘fixed price’ tag with actual realization rather than tagging with MRP and offer heavy discounts thereafter. Such a shift will not only prevent them from calculating excise levy payment but also lower duty payment burden, said Vijay Agarwal, managing director, Creative Garments and former chairman of Apparel Export Promotion Council (AEPC). However, excise duty will be applicable only for those manufacturers who do not claim input tax credit (ITC), popularly known as central value added tax (Cenvat), paid on various raw materials. Manufacturers who claim ITC, however, will need to pay 12.5% excise duty. Until now, excise duty was “nil” on manufactures without ITC claim and 6-12.5% for those who claimed ITC.
Interestingly, excise duty is paid on MRP, irrespective of the actual realization from the garments. Through this shift, around a third of garments priced over Rs 1,000 would be exempted from the excise net due to their actual price would come down to below Rs 1,000. Excise duty on garments is levied for years. In the last Union Budget, however, it was capped on a branded garment with a price tag of Rs 1,000. So, retailers are changing their business tactics, said R K Dalmia, Chairman, The Cotton Textiles Export Promotion Council (Texprocil) and Senior President, Century Textiles and Industries. Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI) said that earlier, MRP was fixed on inflated basis to consider all aspects including discounts, duties etc. So, even if the actual realization was lower than the statutory excisable price limit of Rs 1,000, excise duty was paid. On MRP, however, huge discounts were offered to attract customers’ footfalls. But, manufacturer would fix a tag with the genuine price. The fixed price will be the actual gross realization of garments as it would include cost of manufacturing and other expenses viz duties, labour and transportation costs etc.
According to trade sources, existing stocks continue with MRP tag with offer of 40-50% discount. But, new stocks come only with “fixed price” tag. This means, customers may not find luring discount offers of 40-50% or “buy one, get one free” kind of banners on the walls of garment retail shops. The product mix of garments stocks has seen a rapid change in the last four months. From around 100% of MRP-based products before the Union Budget in February, half of the stock is coming now with “fixed price” tag.
SOURCE: Yarns&Fibers
Ahead of the long-delayed GST bill being taken up by the Rajya Sabha, the government circulated to the MPs the amendments it has proposed in the constitution amendment bill to enable implementation of the tax. Finance Minister Arun Jaitley told the Rajya Sabha that the amendments to the bill, pending in the Upper House for the past year, were given to the Secretariat of the House two days ago and have been circulated to the members. He was responding to concerns raised by some members, including Naresh Agrawal of the SP, who said they have not received copies of the bill or the amendment. The Constitution (122nd Amendment) Bill, 2014, which would lay the ground for the rollout of a Goods and Services Tax regime, subsuming all indirect taxes, including central excise duty and State VAT/sales tax, is listed for consideration and passing in the Upper House on Wednesday.
Legislation was approved by the Lok Sabha in May 2015 and introduced in the Rajya Sabha in August 2015 where it has been pending due to opposition from the Congress over certain provisions. The Cabinet, Mr. Agrawal said, had approved amendments to the bill and the same should be given to the members for them to go through before the debate on Wednesday. Deputy Chairman P.J. Kurien said the bill was circulated to members in August 2015 before its introduction in the Upper House. That as per rules and procedures is okay, he said. “However, if you need one more copy, [Rajya Sabha] Secretariat will circulate it,” he said adding if there were amendments proposed by the government to that bill they have to be circulated to members one day before the debate. Mr. Jaitley said the amendments have been circulated as well.
Sitaram Yechury (CPI (M)) said the amendments have been received in electronic form and a printed copy may be given to the members. Sukhendu Sekhar Roy (Trinamool Congress) said printed copies of the amendments to the bill were received at his residence on Tuesday morning. ''I have been informed by the Secretariat that the amendments have been circulated,” Mr. Kurien said adding the bill could be re-circulated for the benefit of new members and those who have not read it. A constitution amendment requires support of two-third of members present and voting. The amendment will then have to be approved by 50 per cent of all the State Assemblies. The government is likely to move four amendments to the GST bill. These include one on scrapping of the proposed tax of up to 1 per cent on inter-State transactions to compensate manufacturing States and another one promising to compensate the States for any revenue loss in first five years of GST implementation. The other amendment pertains to a new formulation on a dispute-resolution mechanism and an endorsement of the resolution by the empowered committee of State Finance Ministers on a revenue-neutral rate to bring down the incidence of tax on the common man while protecting revenues of States. The Congress originally mooted the GST in 2006 and a constitution amendment bill was introduced in the Lok Sabha in March 2011 but it lapsed with the dissolution of the 15th Lok Sabha.
SOURCE: The Hindu
The textile industry of Uttarakhand is set to take a major leap as a Chinese company has evinced interest in investing in the state. The company aims to invest Rs 600 crore in 35 acres in the textile park at Sitarganj in Udham Singh Nagar. A delegation of industrialists will be coming from Ludhiana to meet the State Industrial Development Corporation of Uttarakhand Limited (SIDCUL) on August 12. The first round of meeting was held in Punjab last week, following which the investors will visit the hill state. As per TOI sources, four national level companies have applied to set up manufacturing units in US Nagar recently. According to industry officials, firm Innovative textile, SB Polytech, Sepia and YC Yarn will be setting up the manufacturing units in Sitarganj phase II. All the firms will invest around Rs 100 crore in initial period. Experts say surplus ground table water in Sitarganj and proximity of US Nagar to neighbouring countries like Nepal and China have attracted industrialists to the 135 acre park.
Another advantage is its border with Uttar Pradesh and good transportation facility to other parts of the country. According to the officials of SIDCUL, it will be the first Chinese company to do 100% FDI in India. "As it is a Chinese 'conglomerate' that is investing in Uttarakhand, we are anticipating more Chinese firms to invest in Uttarakhand," R Rajesh Kumar, MD of SIDCUL said. It will alone provide employment to around 8000 people and with the inflow of textile industries, it will generate more options of livelihood. Uttarakhand is a suitable business destination for industrialists due to benefits like rebate in per unit electricity bill, exemption from electricity tax, 50% rebate in land for setting up textile industry.
SOURCE: The Times of India
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$ 40.33 per barrel (bbl) on 01.08.2016. This was higher than the price of US$ 39.90 per bbl on previous publishing day of 29.07.2016.
In rupee terms, the price of Indian Basket increased to Rs. 2691.50 per bbl on 01.08.2016 as compared to Rs. 2674.73 per bbl on 29.07.2016. Rupee closed stronger at Rs. 66.74 per US$ on 01.07.2016 as against Rs. 67.03 per US$ on 29.07.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 01, 2016 (Previous trading day i.e. 29.07.2016) |
Pricing Fortnight for 01.08.2016 (July 14, 2016 to July 27, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
40.33 (39.90) |
43.20 |
|
(Rs/bbl |
2691.50 (2674.73) |
2901.31 |
|
|
Exchange Rate |
(Rs/$) |
66.74 (67.03) |
67.16 |
SOURCE: PIB
In just 25 years Vietnam has transformed from one of the world’s poorest countries to a lower middle income economy. This is primarily due to key structural reforms which were implemented in 1986 in areas such as reforming state-owned enterprises (SOEs), private sector development, financial reform, public expenditure management and trade liberalisation. The World Bank predicts that Vietnam could be at the same income level that Malaysia is today by 2035, if the government embraces a number of further structural and institutional reforms. One area that would benefit from structural reform is the Vietnam textile and garment industry. The Vietnam textile and garment industry is Vietnam’s largest industrial employer with more than 2.5 million workers, constituting 25 per cent of the Vietnam labour force in the industrial sector and generating 17 per cent of Vietnam’s export revenue (US$27.2 billion in 2015). The industry specialises in the lowest value-added segment in the middle of the global supply chain. Workers from rural areas are trained to specialise in cutting, trimming, and making garments, which accounts for 78 per cent of Vietnam textile and garment industry exports. Downstream sectors of the Vietnam textile and garment industry, such as marketing and distribution, are underdeveloped and rely heavily on foreign companies.
Out of nearly 6,000 companies currently in the Vietnam textile and garment industry, 2 per cent are SOEs, 15 per cent are foreign-invested companies and 83 per cent are private companies. Although small in number, SOEs have been the dominant producers and act as the gateway for foreign companies to tap into Vietnam’s low-cost labour force. In 1995 a conglomerate of SOEs called the Vietnam National Textile and Garment Group (Vinatex) was formed to foster improved technology, modern management and diversified businesses, including investment and finance for the Vietnam textile and garment industry. But 20 years of SOE consolidation has not resulted in industrial upgrading; instead many SOEs are debt-ridden.
In response to mounting pressure to revitalise corrupt and inefficient SOEs, Vinatex had its first ever initial public offering selling 49 per cent of its shares in 2014. More than 120 joint-stock and joint-venture companies were created, with 51 per cent government ownership. Vietnam is at a crossroads: it can either move to the next level of industrialisation or risk losing competitiveness. Foreign capital has long been welcomed in the Vietnam textile and garment industry and foreign-invested companies contribute about 60 per cent of Vietnam’s export revenue, but there are few linkages between domestic and foreign firms.
Vietnam, Foreign Investment & The TPP
For example, Japanese firms have been sub-contracting their garment orders to the Vietnam textile and garment industry, but they have not created backward linkages by investing in yarn and fabric facilities. When labour costs in Vietnam eventually increase, foreign investors in the Vietnam textile and garment industry will move to countries with lower labour costs, such as Bangladesh and Sri Lanka. Vietnam is expected to be the major beneficiary of the Trans-Pacific Partnership Agreement (TPPA) . According to the World Bank the TPP will lift Vietnam GDP by 10 per cent by 2030. Much of this growth is predicted to come from Vietnam textile and garment industry exports to the United States and Japan. Vietnam has a cost advantage in the labour-intensive garment segment and could exploit the preferential access to big markets granted by the TPP, but Vietnam will need to develop further by supporting industries which are complementary to existing ones. In the case of the Vietnam textile and garment industry, creating forward linkages requires development of downstream sectors such as design, branding, marketing and distribution, including insurance and finance. Creating backward linkages means investment in upstream capital-intensive sectors such as petrochemical and other sectors that have high research and development costs. Upgrading will require new business models. So where should Vietnam start? The TPP’s rules of origin require all products in a garment, beginning at the yarn stage, to be sourced in TPP member nations in order to enjoy preferential access to member nations. In anticipation of the TPP, Chinese, South Korean, Japanese and Taiwanese companies are investing in backward linkages in Vietnam (See: TPP Fears Spur FDI in Vietnam Textile And Garment Sector). These capital intensive investments in the Vietnam textile and garment industry have a high fixed cost and reflect a longer-term commitment by foreign multinationals. To benefit from technological spill over and achieve higher productivity Vietnam needs to get two seemingly contradictory areas in the industry right.
Vietnam SOEs Lack Incentives
The first is provision of public goods by the government. The lack of adequate infrastructure — such as roads, ports and electricity — makes it costly to develop backward and forward linkages, which hampers industrial upgrading. Rectifying this will not only benefit the Vietnam textile and garment sector, but other areas of industry as well. Once linking different industries is less costly, Vietnamese entrepreneurs will invest in the necessary skills, technology and facilities to upgrade upstream and downstream industries. The second is to foster the necessary entrepreneurship by privatising SOEs and reforming corporate governance. Managers in Vietnam’s SOEs lack commercial incentives and enjoy economic rents accruing from preferential access to land and capital. Rent seeking must be replaced. The government should move to incentivise efficient business operations.
To achieve inclusive and sustainable growth it is essential that competitive markets determine the allocation of land and capital to the private sector. Markets must also benefit small- and medium-sized enterprises (SMEs), which account for 97 per cent of all firms and employ nearly 75 per cent of the Vietnam labour force. The government must develop a scheme to support SMEs in obtaining finance, facilitating joint ventures with foreign multinationals and utilising free trade agreements. These are areas traditionally dominated by SOEs and freeing them up for private firms will entail battling vested interests. But the reward will be a more innovative and inclusive Vietnam textile and garment industry, and a sustainable path for growth in Vietnam into the future.
SOURCE: The Ace News Today
Barack Obama reaffirmed his support for the Trans-Pacific Partnership (TPP), the controversial 12-nation trade deal, and said that he believes he has "the better argument" than the pact's foes, including Democratic presidential nominee Hillary Clinton. The agreement has become a flash point in the 2016 election, and Obama acknowledged that globalisation and technology have increased anxiety among some Americans. But the president said that abandoning trade deals is not the solution. "The answer cannot be to back away from trade and the global economy," he said at a news conference at the White House following a meeting with Singapore Prime Minister Lee Hsien Loong. "It is here to stay. It is not possible to cut ourselves off. To try to pull up the drawbridge on trade would only hurt ourselves and our workers." Both Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton have said they would not support the agreement, which has drawn the furore of blue-collar workers and activists in both parties. "Right now I'm president, and I'm for it," Obama said. "I think I've got the better argument."
The World Bank says the deal, which would be the biggest US trade agreement since the 1994 North American Free Trade Agreement, could raise gross domestic product by an average 1.1 per cent in member countries by 2030. The pact goes beyond typical trade agreements that focus mostly on reducing tariffs by highlighting stricter safeguards for patents and levelling the playing field for companies that compete with government-backed businesses. Obama said the deal would also create enforceable labour and environmental rules, enabling countries party to the agreement to better police undesirable activities such as human trafficking, wildlife poaching, illegal fishing, child labour and deforestation. "It gives us leverage to promote things that progressives and people here in this country, including labour unions, say they care about," Obama said. "I have not yet heard anybody make an argument that the existing trading rules are better for issues like labour rights and environmental rights than they would be if we got TPP passed."
Clinton helped negotiate the deal as Obama's secretary of State but was forced to disavow the completed agreement under pressure from her primary opponent, Vermont Senator Bernie Sanders, an opponent of the pact. Sanders earned broad applause during his Democratic convention speech last week when he said Democrats should seek to block any effort to bring up the deal during Congress's so-called lame duck session after the election. "I've got some very close friends, people I admire a lot, but I just disagree with them," Obama said. "That's OK. I respect the arguments they're making. They come from a sincere concern about the position of workers and wages in this country." Republican lawmakers have shown little appetite for holding a vote on the deal, which Trump routinely belittles on the campaign trail as bad for American workers. Last month, Senate Majority Leader Mitch McConnell appraised the odds for the deal this year as "pretty slim."
American Credibility
Obama said he knew the politics of the deal were difficult, but remained optimistic that he could make his case after the election. He offered to meet with lawmakers from both parties to make his case for joining the agreement. "Hopefully after the election is over and the dust settles, there will be more attention" to the actual facts of the deal, Obama said. Lee said that while he was wary of wading into domestic politics, the U.S. has "put your reputation on the line" with TPP. "Your partners, your friends who have come to the table and negotiated, each one of them has overcome some domestic political objection, some costs to come to the table to make this deal," Lee said. The Singaporean leader said U.S. ties with Japan could be particularly damaged if the treaty isn't ratified. Japanese Prime Minister Shinzo Abe's backing of the TPP has strained his support among Japanese farmers opposed to the deal. "If at the end, waiting at the altar the bride doesn't arrive, I think there are going to be people who are going to be very hurt not just emotionally but damaged for a long time to come," Lee said.
SOURCE: The Business Standard
Oerlikon today reported that the manmade fibers segment still had to contend with declining demand in the Chinadriven filaments equipment market in the second quarter. Positive signs in the staple fibers and nonwovens markets continued though into the second quarter. By virtue of the nature of project businesses and the positive trend outside of the filaments equipment market, it is conceivable that the Segment might see an improvement in the second half of 2016. The filaments equipment market’s downward trend persisted, as expected, in the second quarter, impacting the Segment’s performance substantially. The promising signs noted in the staple fibers and plant engineering (CP, tape lines, nonwovens) businesses in the first quarter continued into the second quarter. The Segment succeeded in taking advantage of this and grew its business in those markets, thereby mitigating some of the downturn in the filaments market, Oerlikon informed. Subsequently, orders were more than one-third lower, and sales declined by more than half year-on-year. Due to the lower top line and product mix, EBITDA fell considerably to minus CHF 2 million and the margin to a negative 1.6 %. EBIT for Q2 2016 stood at minus CHF 6 million (Q2 2015: CHF 32 million).
In the second quarter, the Segment increased the ratio of its service business to 21.3 % of total Segment sales (Q2 2015: 10.5 %). In relation to the significantly lower sales, the improvement in the share of services underscores the Segment’s efforts in increasing its services business and making it more resilient to market developments. The Segment will continue to focus on implementing its restructuring measures and developing its business in services and other markets. The increase in the staple fiber business in particular also resulted in the Segment restoring some of Oerlikon Neumag’s operations to full capacity to meet customer demands. Based on the positive trend outside of Chinese filament equipment market and depending on the development of specific projects, the Segment envisages that it might see some upturn in business in the second half of the year.
SOURCE: The Tecoya Trend
