INTERNATIONAL
NATIONAL
The garment industry in Tiruppur, should focus on technical textiles, said T.N. Minister for Industries, T.R.B. Rajaa, on Friday, July 21, 2023. Inaugurating the renovated building of the Tiruppur Exporters Association, the Minister said the size of the global technical textiles industry was expected to be USD 220 billion by 2030. Of this, the size of the industry in India was expected to grow to USD 40 billion. Within the 12 major categories of technical textiles, Tamil Nadu should develop core competency in areas such textiles for automobiles, industries, and the healthcare sectors. With the global market and economy heading for flat growth rate, the textile industry should look at the domestic market, he said. Mr. Rajaa further said that a boost needed to be given to research and development. Participation of the industry was critical for further research and development, he said, adding that the government would also soon design an attractive package to boost R&D in this sector. On the industry’s demand for houses for workers, he said availability of land was the main challenge in the western districts. If land was made available, the government would build houses for the workers. Speaking about the Global Investors Meet to be held next year, Mr. Rajaa said the event would have country-specific pavilions. The event would be not just about investments, but also focus on high-value jobs.
Source: The Hindu
While releasing its 1Q FY24 vs 1Q FY23 performance, Reliance Industries Limited has informed 0olyester chain delta decreased Y-o-Y with lower margins in downstream polyesters amidst weak demand in China and slowdown in PET export markets. Polyester chain margin was at $ 574 / MT during 1Q FY24 as against $ 593 / MT in 1Q FY23 and $ 516 / MT in 4Q FY23. During 1Q FY’24, PX supply remained tight due to turnaround season and diversion of feedstock post gasoline demand recovery. PTA margins remained stable with balanced production and decline in China inventory. MEG-Naphtha margins improved with relatively weaker Naphtha price on Y-o-Y basis. During 1Q FY’24, Indian market sentiments were stable due to slowdown in fabric movement. Downstream operators moved to need-based purchasing in anticipation of a price correction. On Y-o-Y basis, domestic polyester demand increased by 5% with improvement in PET and PFY demand by 11% and 5% respectively. PSF demand reduced by 8% as market sentiments remained soft with decline in cotton prices.
Source: TECOYA TREND
With the hope that the Tamil Nadu and Central government will consider the plea for the survival of the Spinning Industry in Tamil Nadu, the South India Spinners Association (SISPA) and India Spinning Mill Owners Association (ISMA) have called upon their member to start the yarn production and sale in their spinning mills. It may be noted here that considering the extraordinary situation of the Spinning Mills in Tamil Nadu, Small and Medium (MSME) Spinning Mills have stopped their production of yarn and sale of yarn from 15.07.2023. In these situations, SISPA and ISMA had a meeting with the Minister of Finance and Electricity, Mr. Thangam Thenarasu, Minster of Textiles and Handlooms Mr. R. Gandhi and Minster of Micro, Small and Medium Enterprises Mr. T.M. Anbarasan and their Secretaries, Government of Tamil Nadu on 21.07.2023 at Chennai. During the meeting SISPA and ISMA had a detailed discussion about the present crisis of the Tamil Nadu Spinning Mills and submitted a Joint Memorandum to the Ministers and Secretaries. Meanwhile, Tamil Nadu Chief Minister Mr. M.K. Stalin has sent a letter to the Prime Minister Mr. Narendra Modi and has requested to withdraw the 11% import levy on cotton as it will reduce the production cost significantly. TN CM has also requested the Union Government to provide financial support for MSMEs in the textile sector under ECLGS by extending the moratorium by one more year. Existing loans under ECLGS may be restructured, converting them into six-year term loans and fresh loans may be provided under ECLGS. Reduce of regular banking interest rate, has been requested. The TN Chief Minister requested specific interventions of the Prime Minister to ease the plight of the MSME-led spinning industry. In view of the above scenario, SISPA and ISMA hope that the State and Central government will consider their plea for the survival of the spinning industry in Tamil Nadu. Therefore, SISPA and ISMA has requested our members to start the yarn production and sale in their Spinning Mills.
Source: TECOYA TREND
In the last two articles, we have discussed how India’s exports and imports and invisibles trade performed through the five-year plans. We also saw the changes in the current account deficit. In this article we will discuss the pattern and direction of India’s trade: how it has changed through the plans, which new commodities and new geographies have been added and which have fallen in significance. Pattern of trade At the time of independence, India’s trade pattern and structure was one of a typically colonial country: exports comprised raw materials and primary commodities like tea, cotton, jute and raw silk; and imports comprised mostly finished and manufactured products, capital goods and food grains. We saw in the last two articles that India’s trade policy was driven by an overall thrust on import-substitution, rather than export promotion. Accordingly, whatever steps on export promotion were taken were basically to ensure sufficient foreign exchange to pay for the necessary imports such as capital goods and crude oil. This was mostly the case in the first three decades. India struggled with high import bills mainly on account of frequent rise in prices of crude (the four-fold rise in 1973-74 on account of the Israel-Arab wars and again a doubling of prices in 1979-80 on account of the Iranian revolution), high prices of fertilisers and regular import of food grains. In the 1980s, the effects of the drought of 1979 and the oil price shock of 1979 continued to be felt. After the 1984 elections, the Congress government again took guard under Rajiv Gandhi, which pursued the policy of liberalisation, and made extensive use of technology in all areas including telecommunications, agriculture, oilseeds etc. — leading to a sharp rise in the import bills and high trade and fiscal deficits till the 1991 economic crisis hit us. After 1991, India progressively integrated into the world economy and the focus shifted from import substitution to export promotion slowly. A number of new products entered India’s export list, including readymade garments, engineering goods, pharma, gems and jewellery, cotton yarn and manufactures and leather and leather garments. Traditional exports such as tea, coffee, jute and tobacco, became relatively less important.Another significant feature of India’s exports has been the rise of services exports in the last three decades. After the reforms of 1991, tariff barriers fell and there were technological advances in telecommunications and IT, which led to a rise in the importance of services in GDP as well as exports. India’s services sector contributed 50 per cent of GDP in 1990, which has risen to 60 per cent since the early 2000s. India’s service exports touched a high of USD 254 billion in 2021-22, which was about 40 per cent of total exports. In 1990, services exports were USD 7 billion and rose to USD 25 billion in 2002. Another feature of India’s exports recently has been the push they have received from the Production-Linked Incentive (PLI) schemes. The most successful example of this has been the sharp rise in the manufacture and export of Apple iPhones from India in the last couple of years.
The principal imports of India have been: * Food grains: It was mainly during the first five five-year plans, but declined after the green revolution took root in the 1970s. From the 1990s, the import of cereals became negligible, but import of edible oil rose in the decade of 2000s. * Capital goods and machinery: Capital goods and machinery imports have been a constant in the principal imports of India. In the first three decades, this was on account of the policy of creating a heavy industrial base. In the decade since the 1990s, both electrical and non-electrical machinery as well as transport equipment imports have risen sharply. Machinery imports rose from Rs 1,350 crore in 1980-81 to Rs 3,70,000 crore in 2013-14.* Fuel imports: These have also consistently risen since independence because of a sharp rise in consumption, and our domestic production being far less than our requirements. In value terms, the rise has been because of hefty price rises. In 2013-14, these imports went up to Rs 1,00,064 crore, which was about 37 per cent of total imports. * Metals: The import of both ferrous and non-ferrous metals have increased massively after the 2000s because of the expansion of industry, hydro-electric projects and railways. From a low of Rs 54 crore in the first plan, these went up to Rs 1,330 crore in 1980-81 and Rs 2,75,166 crore in 2013-14.* Precious stones, gems and jewellery: These imports rose only after the 1990s when they were needed as inputs for the exports for ornaments and other jewellery. Starting with imports of Rs 417 crore in 1980-81, these shot up to Rs 22,100 crore in 2000-01 and Rs 1,44,557 crore in 2013-14. * Others: the other major imports have been drugs and medicines as well as inputs into making them (API) and fertilisers. Our export pessimism continued till the 1980s. Only after the 1990s reforms did exports become a priority and came to be considered as an essential ingredient for high GDP growth. The principal exports were: * Engineering goods: The export of these goods is a post-1990 phenomenon. In 1980-81, these exports were only Rs 727 crore, but rose sharply to Rs 3,877 crore in 1990-91, Rs 31,150 crore in 2000-01, and Rs 4,18,423 crore in 2013-14. * Handicrafts, including gems and jewelry: This is again an item that began to be exported in large numbers after the reforms of 1990-91. From a low of Rs 894 crore in 1980-81, these exports rose to Rs 36,756 crore in 2000-01 and Rs 2,56,434 crore in 2013-14. * Readymade garments: These exports have shown impressive gains only after 2000-01. From Rs 4,000 crore in 1990-91, these rose to Rs 25,441 crore in 2000-01 and Rs 90,402 crore in 2013-14. * Cotton yarn and manufactures: While cotton yarn was exported in the early years, these declined after the 1960s on account of obsolete machinery and high costs. Only after 2000-01, these picked up pace because of considerable investment in modern machinery. These exports were Rs 2,100 crore in 1990-91, and rose to Rs 15,819 crore in 2000-01 and Rs 53,914 crore in 2013-14. * Leather and leather manufactures: Like cotton yarn and manufactures, these exports also showed a rising trend only after 2000-01 and rose from Rs 2,566 crore in 1990-91 to Rs 8,883 crore in 2000-01, and Rs 34,517 crore in 2013-14.
Direction of India’s trade India’s trade is generally classified as being with four broad regions: Americas (including the USA, Canada and Latin America), Europe, Asia and Oceania, and Africa. During the first three decades after independence, the USA and Europe were dominant trading partners for both exports and imports, accounting for more than 60 per cent of exports and imports of India. The other important trading partners in the Asia & Oceania region were Australia and Japan. After the 1970s, the share of the USA fell, but that of the Soviet Union and Eastern Europe started to rise. After the 1990s, our structure of trade changed as did our trading partners. With services exports gaining in importance, the USA again became an important destination of our exports, accounting for about 20 per cent of our exports and 10 per cent of imports in the early 1990s. This share fell to 13 per cent of exports and 5 per cent of imports by 2014-15. The European Union continued to be important and accounted for 25 per cent of exports and 33 per cent of imports in the early 1990s. These numbers fell to 16 per cent and 11 per cent in 2014-15. The new trading partner in the last decade has been the UAE, whose share in India’s exports rose to 11 per cent in 2014-15, and imports to 6 per cent. China also emerged as a large trading partner of India, accounting for about five per cent of its exports and 16 per cent of its imports in 2020.
Conclusion The pattern and direction of India’s trade has changed over the years. As we saw above, India’s exports of goods now include manufactures and engineering goods, which is a big jump from the primary commodities that were exported in the 1950s and 1960s. There has also been a thrust on exports as an important ingredient of GDP growth after the 1990s. Services exports have also gained in importance and volume since the 1991 reforms. In the past decade or so, the component of services exports has also changed: there is a move up the value chain. More and more digitisation has led to the export of many professional and business services, in addition to the IT/ITeS services, which were hitherto the dominant services exports. In the coming years, India’s exports are poised to grow fast, because of a fast-changing global scenario. In particular, US-China détente has led to the ‘China + 1’ policy and ‘derisking’ away from China among many global companies. India has responded with policies such as Production-Linked Incentives (PLI) in a number of areas including electronics, automobiles, white goods and textiles, among others. India has also made a big push for fabrication of semiconductors in the country. These policies, among others, will surely help India reach its export target (both goods and services) of USD one trillion by 2030.
Source: Financial Express
The government of Tamil Nadu has given its nod to 10 investment proposals worth Rs 6,000 crore, including one by the world’s largest producer of mobile phone chargers Salcomp Plc, which is also a leading supplier to Apple. Earlier this year, the Finland-headquartered firm had announced a Rs 1,800-crore investment plan for India over the next three years. This was as part of its strategy to expand presence in electric vehicle (EV) chargers and solar microinverters, among others. The proposals cleared by the state Cabinet include one in electronics, two in the EV segment, three in general manufacturing, two in textiles and two global capability centres. The other major players, who reportedly got clearance, include Pfizer, Godrej Consumer Products, French major Schneider Electric and an electric vehicle investment in the Hosur-KrishnagiriDharmapuri (HKD) industrial belt. At present, the top-three players in e-two-wheelers — Ola Electric, TVS Motor and Ather Energy — are all based in Krishnagiri district. Two are in Hosur and one in Pochampalli. In addition to the top three, at least five other original equipment manufacturers (OEMs), including Ashok Leyland and scooter maker Simple Energy, are either setting up their EV units or have already started manufacturing at their facilities in the region.
Source: Business-Standard
Minister of Finance, Commercial Taxes, Planning and Skill Development & Training Buggana Rajendranath Reddy met Vietnam Deputy Minister of Planning and Investment Do Thanh Trung at Hanoi on Saturday and discussed the scope for partnership in the industries and vocational training sectors. The duo decided to have a special mechanism that facilitates cooperation from Vietnam for the development of Andhra Pradesh, according to an official release. Later, Mr. Rajendranath Reddy met the Indian Ambassador in Hanoi, Sandeep Arya, and called on the Vietnam Chamber of Commerce and Industry president Tran Quoc Phung and visited the India House, where he garlanded a statue of Mahatma Gandhi. He then visited Hanoi Textile and Garments University, where he enquired about advanced technologies in the textile industry and the factory of Garco 10, a leading Vietnamese manufacturer and exporter of garments. Andhra Pradesh government principal secretary (skill development and training) S. Suresh Kumar and A.P. State Skill Development Corporation MD and CEO V. Vinod Kumar were present.
Source: The Hindu
For a rapidly growing economy like India, energy security is one of the key areas where it needs to focus in order to achieve its dream of a $10 trillion economy. Despite the most formidable energy crisis looming over the world today, India has managed to navigate its way through its multipronged approach of diversification of energy supplies and tapping the potential of lower to zero-emission energy sources. However, the challenge India faces is not just to work aggressively toward its growth ambitions but also to achieve them in a responsible and sustainable manner. The United States stands with India resolutely as India paves its way forward to a more sustainable tomorrow. The recent visit of PM Modi and the closeness between the two governments showcases that a lot can be achieved collaboratively in the horizon years toward a greener future. This partnership is of conviction, compassion, and collaboration within specific areas in which energy is one of the most important pillars. India is the world’s third-largest energy-consuming country with 80 percent of its demand still being met by nonrenewable sources. The current per capita energy consumption of India is 1/3 of the global average and around half the Asian average. The pace of India’s development is only going to double its energy demand by 2040. This is why India needs to tap into alternative energy sources to replace its dependence on non-renewables and switch to cleaner fuels seamlessly without hampering its growth trajectory. The path to clean energy transition has to be smooth and free from technological bumps and breaks. This is why, India must explore all forms of clean energy options from low-emission sources like gas to zero-emission sources like Wind and Solar and Green Hydrogen to fulfill its requirements. During PM Modi’s recent visit to the US, the two governments enhanced their focus on the Strategic Clean Energy Partnership (SCEP) which is a more comprehensive and renewed version of the original Indo-US Energy Dialogue of 2005. The US-India SCEP stands on important pillars like Responsible Oil and Gas, Emerging Fuels, Power and Energy Efficiency, Renewable Energy and Sustainable Growth and is supported by a host of nodal ministries like Petroleum & Natural Gas, Power, New and Renewable Energy and the Niti Ayog. The main goal of the SCEP revolves around supporting the development and implementation of energy-efficient policies, best practices to achieve energy efficiency goals, and reduction in greenhouse gas emissions. The US Department of Energy (DOE) and India’s Bureau of Energy Efficiency (BEE) are already in the process of working on the sustainable growth of the building sector like the Grid Integrated Efficient Building (GEB) framework and waste heat recovery. The upcoming areas that are being brought under the SCEP purview include Hydrogen as a potential replacement for fossil fuels, the introduction of biofuels into the value chain, the use of lower emission options like natural gas to bridge India’s de-carbonisation pathway and carbon markets, and energy transition. The 14th Clean Energy Ministerial happening in Goa next week when the G20 presidency is with India is a crucial stage to help India to push its energy transition ambitions towards reality. The US stands firm on its commitment to support India with technical assistance, aid, and cohesive partnership in the aforementioned areas. Also, it will play an important and leading role in Global Biofuel Alliance that will be announced during CEM.PM Modi first introduced the concept of One Sun, One World, One Grid back in 2018 at the first assembly of the International Solar Alliance spearheaded by India. The world today is now coming together to align with this while India is already working on introducing a new Global Bio-Fuel Alliance. Initiatives like these have thus placed India in the steering position for the world energy transition scenario. The partnership between India and the US is a people-to-people link, it is a stepping stone for research and academia to come together and industries supporting and handholding new areas like green hydrogen which is completely new to the world in terms of storage, safety, mobility etc. The partnership will pave the way to not only bring the two great nations closer in their joint commitment towards a more sustainable energy sector but will also help bring other countries who believe in the same future into the realm.All of this sounds exciting but the path ahead is bound to be challenging. The mantra for India should be macro planning and micro implementation which will put the key policy and regulatory aspects to the sub-national level achieving what is needed for the net zero commitments. Financing will be an obstacle to India’s growth trajectory but the same can be addressed by bringing blended financing options including multilateral and bilateral agencies, private sector participation and engaging the community in the project preparation stage for some of the futuristic and large-scale projects. The G20 Leaders Summit in the second week of September this year will provide a platform to resolve and take the energy transition collaboration to greater heights along with taking key economic and geo-political issues to the next level. The world today is looking towards India and therefore India must put its best foot forward in fulfilling its ambitions in a climate-responsible manner.
Source: Financial Express
The removal of retaliatory customs duties on eight American products, including apples, walnuts, and lentils, will not result in a loss to the country, Parliament was informed on Friday. India had imposed these duties on 28 US products in retaliation to America's move to increase import duty on certain steel and aluminium goods. During Prime Minister Narendra Modi's recent visit to Washington, both sides decided to resolve six trade disputes at the World Trade Organisation. India also agreed to remove the duties. The government has decided to remove retaliatory customs duties on import of almonds (fresh or dried, in shell), walnuts, chickpeas, lentils, apples, medical diagnostic reagents, and boric acid, Minister of State for Commerce and Industry Anupriya Patel said in a written reply to the Rajya Sabha. "The removal of retaliatory tariffs or cuts in import duty with the US does not result in a loss to India," she said. "It simply means that the additional duties imposed as a response to the US measures are no longer applicable and the MFN (most favoured nation) tariff rates as applicable to all countries prevail," she added. In a separate reply, she said India's foodgrains exports have registered a steady growth in the last few years. This, she said, is reflected in the increase in the country's share in world foodgrains exports from 3.38 per cent in 2010 to 7.79 per cent in 2022, according to UN Comtrade statistics. Wheat exports declined to USD 1.52 billion in 2022-23 as compared to USD 2.12 billion in 2021-22. India has currently banned wheat exports.
Source: Economic Times
Talks between Britain and India on a free trade agreement (FTA) have gained momentum but further work is needed on services and tariffs to secure a deal, a British source close to the negotiations told Reuters. Britain began free trade talks with India in January last year as it looks to establish its credentials as an independent trading nation after leaving the European Union and is seeking an Indo-Pacific tilt to its foreign policy. Talks had seemed stuck earlier this year, with the two sides struggling to make progress in a number of key areas amid concern there could be further political complications if talks drag on. Elections are expected in both countries next year. However, momentum has improved following the conclusion of the eleventh round of talks this week, the source said, allowing negotiators to turn to more commercially sensitive topics that are likely to be some of the most difficult to resolve. "The talks certainly kicked up a gear during the last round, and gained momentum, but there is still a long way to go, such as on services or tariffs for various goods," the source said. "It's not about a race to the finish – it's about driving home an ambitious deal that will benefit us both in the years and decades to come." After the ambitious timelines of former prime minister Boris Johnson slipped, current British leader Rishi Sunak has emphasised that his government will take time to strike the right deal. In a sign of the political impetus in the talks, India's trade minister Piyush Goyal and Commerce Secretary Sunil Barthwal both visited London during the round. The Indian government has said the talks are at a critical stage, and that ministerial engagement during the round had helped to overcome obstacles in talks. The next round is expected to commence in August.
Source: Economic Times
INTERNATIONAL
Bangladesh and Japan have inked three memorandum of understandings (MoUs) to enhance bilateral trade and investment between the two countries. The MoUs were signed at a daylong summit on "Bangladesh-Japan economic relations for the next 50 years: for the industry upgradation of Bangladesh" at a hotel in the city on Sunday. The Japan External Trade Organisation (JETRO), Bangladesh Investment Development Authority (BIDA), and the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) jointly organised the summit, reports BSS Bangladesh Special Economic Zone Ltd (BSEZ Ltd) signed the first MoU with Bangladesh IRIS Co Ltd, a Bangladesh-Japan joint venture company, promoting education for children-to purchase land and get the right to use the land inside BSEZ of phase 2. A separate economic zone for Japanese entrepreneurs was inaugurated at Araihazar in Narayanganj in December last year. The BSEZ Ltd signed the second MoU with Brac Kumon Ltd to provide the school going children near the BSEZ areas with the education opportunity. The commerce ministry signed the third MoU with Japan External Trade Organisation (JETRO) to cooperate with each other in promotion and exchange of trade information and enhance of capacity of the officials. Commerce Minister Tipu Munshi, Industries Minister Nurul Majid Mahmud Humayun and State minister for ICT Zunaid Ahmed Palak attended the event, among others.
Source: The Financial Express
A delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Faruque Hassan, met with Daniel Boyer, Deputy CEO of Australian Trade and Investment Commission (Austrade), in Sydney on Saturday. The meeting was also attended by Bangladesh High Commissioner to Australia M Allama Siddiki. Other members of the delegation were Vice-president Shahidullah Azim, former Vice-president Md. Moshiul Azam Shajal, Chair of BGMEA Standing Committee on Press, Publication and Publicity Shovon Islam, CEO of HSBC Bangladesh Md Mahbub ur Rahman and Director of Rose Intimates Limited Sanjay Kumar Naha, said a press release in Dhaka today (July 23). They had discussions about the issues of mutual interests, including means of enhancing bilateral trade and investment by deepening cooperation between Bangladesh and Australia. Their discussion encompassed how both sides could work together to explore potential trade and investment sectors and achieve win-win results. They also exchanged information regarding the current trade volume between the two countries and major challenges of increasing two-way trade. BGMEA President Faruque Hassan apprised the Deputy CEO of Austrade of the investment opportunities being offered by Bangladesh alongside developing infrastructure, special economic zones and improved business climate. He, through Austrade, invited Australian investors to come to Bangladesh and explore promising areas where they could make investment. The BGMEA President briefed Austrade about the transformation of the readymade garments industry of Bangladesh into a safe and sustainable garment manufacturing hub. He also pointed to the industry's aim to increase its apparel exports, especially high-value fashion items to Australian markets. He highlighted the importance of knowledge and technology transfer to accelerate economic growth. In the meeting, both sides expressed commitment and high optimism of working together to seize the opportunities for mutual benefits.
Source: The Financial Express
The AATCC Foundation Student Research Support Program provides financial assistance for undergraduate and graduate students pursuing textile-related projects. Students may submit proposals now for funding to be awarded January 2024. Applications must be submitted by October 15, 2023, at 5:00 PM CST to be considered. The application is a simple three-page form including a description of the proposed project and the student’s resume. An advisor’s letter of support is encouraged but not required. Priority is given to research related to test method development, evaluation of textile performance in actual use situations, and correlations between these two. Grants range from $500 to $4,000. Grant recipients may also request an additional reimbursement of up to $500 for travel and/or registration to present the research project at a technical conference. Additional guidelines, application, and submission details are available on the AATCC Foundation webpage. The Research Support Program is chaired by Yiqi Yang of University of Nebraska-Lincoln. Funding decisions are made by a panel of academic and industry professionals from across the textile industry. Previously selected projects have ranged from tissue engineering to digital printing. Emmy Hsiung, a 2023 grant recipient from Cornell University, reported that the funding helped her investigate medical textiles and determine that chitosan/carvacrol nanofibers can be spun onto cotton for improved thermal stability and fast release of carvacrol. She plans to submit her findings for publication in the AATCC Journal of Research.
Source: Textile World
Prime Minister Phạm Minh Chính proposed to strengthen the connection between the two economies, especially in investment and trade, at a meeting with US Secretary of the Treasury Janet Yellen in Hà Nội on July 20. The PM also suggested promoting bilateral cooperation to increase the resilience of supply chains and promote the expansion of US business investment in Việt Nam, with a priority on high technology. Also at the meeting, Prime Minister Chính said that Việt Nam wishes to promote the Comprehensive Partnership with the US and cooperate in a variety of sectors, especially banking and finance. The Prime Minister and the Secretary of the Treasury expressed their pleasure that after nearly 30 years of diplomatic relations and 10 years of comprehensive partnership, the relationship between the two countries has been developing steadily in all areas, with trade being a key pillar. Bilateral trade turnover reached more than US$123 billion in 2022. The US became the second-largest trading partner to and one of the most important export markets of Việt Nam. The US also ranked 11th out of 142 countries and territories investing in Việt Nam. The Prime Minister welcomed the cooperation of the US Department of the Treasury as well as its objective assessments on the management of monetary and exchange rate policies of Vietnam over the past time. The Prime Minister also noted that Việt Nam is a developing country, with an economy in transition. Its economy has a modest scale but high openness. The Prime Minister suggested the two sides continue to promote the exchange of delegations, especially high-level ones, and implement agreements between senior leaders. Chính proposed that the State Bank of Việt Nam and the US Department of the Treasury continue to maintain a mechanism to resolve related issues through close dialogue and exchange between the two agencies. The Prime Minister also suggested promoting cooperation between the two countries in responding to climate change and emphasises implementing the Declaration on establishing the Just Energy Transition Partnership (JETP). In addition, he asked the US to support Việt Nam in developing its renewable energy industry and domestic carbon market to connect with the international market. US Secretary of the Treasury Janet Yellen expressed her positive impressions of Việt Nam's development. She affirmed that the US considers Việt Nam a key partner in advancing a free and open Indo-Pacific. The US will continue to promote cooperation with Việt Nam in investment, and continue to establish a diverse, resilient, and sustainable supply chain in key industries, said Yellen, adding that the US also supports Việt Nam in the process of economic development and transformation. The US Department of the Treasury hopes to continue dialogue with the State Bank of Việt Nam on monetary policy, exchange rates, and other macroeconomic issues. The US also highly appreciated Việt Nam's efforts and solutions in the energy transformation and implementation of its Power Plan VIII.
Source: The Vietnam news
A new law allowing shipping containers to be traded using digital documents, not paper ones, has been created after the Electronic Trade Documents Act received Royal Assent today (Thursday 20 September). The simple yet impactful change is estimated to add over £1 billion to the British economy over the next decade by making trade more straightforward, efficient and sustainable.
Paul Scully, Minister for Tech and the Digital Economy said: ‘’The global container shipping industry generates billions of paper documents a year – and in reality there’s no need for the immense costs UK businesses have to face in producing them, and the detrimental environmental impact that this has.’’ ‘’What may look to many of us as a small change to the law is something that will have a massive impact on the way UK firms trade, and in turn, is going to boost our economy by over £1 billion over the next decade.’’ Existing laws dating back to the 1800s previously meant that exporters and importers have to use paper documents to transfer ownership of the goods they are shipping – creating a costly, inefficient and outdated way of working. The government estimates that the new law could generate a net benefit of £1.14 billion for the British economy over the next decade for UK businesses trading across the world, supporting the Prime Minister’s priority of growing the economy.
UK Minister for International Trade, Nigel Huddleston, said: ‘’This new act will make it easier for businesses to trade efficiently with each other, cutting costs and growing the UK economy by billions over time.’’ ‘’ It’s exciting to see the power of technology being harnessed to benefit all industries, reduce paper waste and modernise our trading laws.’’ UK businesses, both big and small, have been calling for paperless trades for decades, especially as the development of electronic document technologies has become increasingly feasible for the industry. With less chance of sensitive paper documents being lost, and stronger safeguards through the use of technology, digitalising trade documents is also set to give businesses that trade internationally greater security and peace of mind.
Secretary General ICC, United Kingdom Chris Southworth said: ‘’The Electronic Trade Documents Act is a game changing piece of law not just for the UK but also for world trade. The Act will enable companies to finally remove all the paper and inefficiency that exists in trade today and ensure that future trade is far cheaper, faster, simpler and more sustainable. This presents a once in a generation opportunity to transform the trading system and help us drive much needed economic growth.’’
Lord Holmes of Richmond said: ‘’ It has been an honour to sit on the Special Public Bill Committee for this ground-breaking, potentially, game-changing, Act.’’ ‘’This is a small change in the law with the potential to make a colossal impact, unleashing innovation and investment in digital trade solutions and delivering significant economic and environmental benefits. Currently it can take days to transfer documents of title – with digital trade documents that will melt into minutes.’’ With English law being the very foundation of international trade, this Act puts the UK ahead and in the lead of not only other G7 countries, but almost all other countries in the world. The UK is widely seen as a leader in digital trade and is setting out an approach which the rest of the world will seek to follow. The International Chamber of Commerce estimates 80% of trade documents around the world are based off English law, and this Bill serves as the cornerstone to truly digitalising international trade.
Source: The hellenicshippingnews.com
