INTERNATIONAL
NATIONAL
India and the Asean trade officials will meet at Semarang in Indonesia today to start the formal ministerial review of the bilateral free trade agreement signed between them more thirteen year ago. Because of the unequal gains accrued to the either party in the agreement (with Asean gaining and India losing), Commerce and Industry Minister Piyush Goyal had stated earlier that the the agreement was the “most ill-conceived one.”The Asean-India Trade in Goods Agreement (AITGA) entered into force on 1 January 2010, creating one of the world’s largest free trade areas. This was followed up by the ASEAN-India Trade in Services Agreement and another pact on investments both of which were implemented from 2015.Asean economic ministers’ conference and related meetings are scheduled between August 17-22 in the Indonesian . After the economic ministers of the trading block ended their discussions Saturday, their meetings with trade partners started. On Sunday meetings with the European Union and Canada were held. The India-Asean trade meeting is being held on the sidelines of the ongoing meeting of the economic ministers of the 10-nation Association of Southeast Asian Nations (ASEAN), and an Indian delegation is already there. Members of the Asean include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. “AITGA review has been under consideration for a number of years. Joint committee on review has been constituted. Joint committee has done two meetings virtually so far on the issue,” the official said. Within five years of the agreement on goods being activated India had started asking for a review of the pact and the scope of review was first discussed in 2015. However, for Asean this was not a priority and being the big beneficiaries, their leadership had been dragging its feet over it. The review was finally agreed to in 2019. By 2022 the scope of the review was agreed to. It included making it more user-friendly, simple and trade facilitative. India maintains that its exports to Asean have been impeded by non-reciprocity in FTA concessions, non tariff barriers, import regulations and quotas. Another Indian demand is strict adherence to Rules of Origin provisions of the agreement by Asean. Rules of origin provisions lay down the quantum of value addition that should be done to a product in an exporting country to to qualify for concessional duty in the importing country. India is wary of countries that are not part of the trade agreement routing their products through Asean. The grouping has a much deeper economic engagement with China through the Asean China Trade and Goods Agreement. In the Asean trade agreement India agreed to eliminate tariffs on 75% of its tariff lines and tariff reductions covered 88.7% of its lines. While these commitments were matched by most of the countries of the bloc, the largest economy in Asean Indonesia only eliminated tariffs on 50% of its tariff lines and agreed to tariff reduction on 67%. On agriculture India took a defensive position and kept its duties high while giving away bigger concessions on industrial products. Asean offered less tariff concessions on industrial products like auto, machinery and transport equipment. In the first full year of the FTA in 2010-11 India’s exports to Asean increased to $ 25.7 billion from $ 18.11 billion in the previous year. Much of the increase seen was due to the sudden jump in exports of petroleum products. Since then only gain for India has been in the exports of meat and marine products while in other areas like chemicals, machinery and steel the growth has been very marginal. In 2022-23 total Indian goods exported to Asean stood at $ 44 billion. Imports from Asean were $ 30.6 billion in the first year of FTA in 2010-11 and it has grown to $ 78.57 billion in FY 23. In the years since the goods trade agreement was signed, the growth logged by Asean during much of that period is more than double of what India has achieved.The trade deficit with Asean has widened from $ 4.98 billion in 2010-11 to $43.57 billion in 2022-23. The widening of the deficit by $ 17.51 billion in the last financial year is alarming as in 2021-22 the deficit was $ 25.76 billion. While traditional exports of Asean to India like venerable oils from member countries like Thailand, Malaysia and Indonesia have grown at the expected pact, the 10-member has logged huge gains in sale of machinery and electrical machinery and equipment to India. In FY 23 Asean’s exports of machinery and electrical equipment, that includes consumer and IT products alone was $ 17.5 billion. Among Asean Singapore is the big exporter of electronics to India. Machinery and electronics imports from the 10-nation block were stagnating around 7.8 billion between 2010-11 and 2017-18. From the year 2018-19 these imports have zoomed.
Source: Financial Express
Given that India is in the high water-stressed zone, recycling and treatment of wastewater is a crucial issue that needs to be urgently addressed. To put it in context, consider this: Our major cities generate an estimated 38,354 million litres per day (MLD) of sewage. But our sewage treatment capacity is only 11,786 MLD. The story is the same when it comes to industrial wastewater. Only around 60 per cent of it is treated and that too which emanates from large-scale industries.
Economical system It is in this backdrop that a deep tech start-up like Indra Waters is making a difference. It makes economical, compact and smart water treatment systems for recycling domestic and industrial wastewater for non-potable reuse. The company has been recognised for its efforts. Earlier this year, it was one of winners of the 2023 Global Freshwater Challenge conducted by the World Economic Forum and HCL at Davos. Now, Indra is in the 2023 APAC Cleantech 25 list, which means that it has attracted the attention of market experts for its innovation and patented technologies. It has also received a grant from ACT Foundation to expand its footprint. Incubated at IIT Bombay, Indra’s technologies are making inroads in the industrial segment. Its projects include sewage and chemical effluent treatment for reuse in gardening and cooling tower blowdown atGodavari Biorefineries Ltd., Sakarwadi, Maharashtra where 75 per cent sludge reduction and footprint reduction has been achieved. Indra is also helping the textile industry reduce its water footprint. Testifies Sanjay Singh, CEO at Sands Synergy Pvt Ltd: “We are working with the Indra Team on commissioning a 100 KLD ETP at our textile unit in MIDC Rabale, Mumbai. Their technology is suited for the textile industry.” Bengaluru’s jeans manufacturer Tauruz is also using the technology for 75 per cent more water recovery and significant cost reduction.
Wastewater treatment Apart from industry, Indra is addressing treatment of domestic sewage discharge and lake wastewater. At Kudikunta Lake in Hyderabad, it has managed 65 per cent sludge reduction with water being reused in irrigation. “We are driving the world away from use of harmful chemicals and over reliance on biological systems towards an electrically driven energy-efficient approach,” says Amrit Om Nayak, Co-founder and CEO of Indra. He explains how conventional plants take over eight months to build and deploy while Indra can install six water treatment plants in 45-60 days. It’s USP is its patented technologies and software.
Source: The Hindu business line
Punjab agriculture and farmers welfare minister Gurmeet Singh Khudian said following reports of pink bollworm attack on cotton crops in a few villages of Bathinda district, he has ordered four senior officers to camp in Muktsar, Bathinda, Fazilka and Mansa till August 31 as the next 15 days are very crucial for the crop After reports of pink bollworm infestation in the cotton crop in Bathinda district, the Punjab agriculture department has deployed its senior officials to camp in the cotton belt and cancelled their weekly holidays till the end of this month. Punjab agriculture and farmers welfare minister Gurmeet Singh Khudian said following reports of pink bollworm attack on cotton crops in a few villages of Bathinda district, he has ordered four senior officers to camp in Muktsar, Bathinda, Fazilka and Mansa till August 31 as the next 15 days are very crucial for the crop. “These officers will visit the field to inspect the cotton crop and guide farmers to prevent this pest attack, besides monitoring the work of the officials,” he said. Khudian asked the agriculture department officials to go to the fields and help farmers and also directed them to send a status report daily. Any negligence or laxity in duty will invite strict action, he stated in an official release.
Source: Hindustan times
The printed circuit board assembly, the camera module, the touch-screen display and the glass cover. Together, they account for threefourths of the bill-of-materials cost of a smartphone. Vietnam, the world’s second-biggest exporter of handsets after China, sources these and most other components at zero tariffs from free-trade partners. But India, which has few such accords of its own but is still keen to emulate the manufacturing powerhouse in its neighborhood, has customs duties as high as 22%. The result? Making mobile phones in the world’s most-populous nation now comes embedded with a cost disadvantage of 4%, says the 2023 edition of a comparative study of tariffs by India Cellular & Electronics Association, an industry body. This extra burden is something India has deliberately imposed on assemblers even as it began remunerating them for its many existing cost disabilities, especially poor infrastructure and red tape. The so-called production-linked incentives, or PLI, promise to pay firms as much as 4% to 6% of their incremental sales for five years. One way to think about this is that India is first damaging its competitiveness, and then compensating firms to set up factories in the country. Another perspective is that the handouts are being “supported through indirect revenue from increased indirect taxes from the same sector,” as the ICEA report says. Policymakers are convinced that their strategy is a masterstroke. The PLI program, which kicked in for mobile phones in October 2020, is being touted as a success. Annual production has surged more than 60% to $42 billion. Of this, $11 billion is exported, compared with virtually nothing when Prime Minister Narendra Modi came to power in 2014. From being a net importer, India has become a net exporter of handheld devices. Elsewhere in Asia, the contest is about semiconductors, the high-value heart of communication, transportation, artificial intelligence, and a lot else besides. From Thailand to Singapore and Malaysia, several countries are now in the fray to shift the locus of front-end chip manufacturing from East to Southeast and South Asia. India is trying to step on that ladder via packaging and testing. While those plans are yet to bear fruit, cheap labor has already made the nation an upcoming rival to Vietnam in a low-value-added activity like assembling electronics parts. The pandemic and President Xi Jinping’s souring relations with the West have changed the thinking of multinationals. A Foxconn Technology Group plant in the southern Indian state of Tamil Nadu is preparing to deliver iPhone 15s only weeks after they start shipping from factories in China, Bloomberg News reported on Wednesday. The likes of Apple Inc. are reluctant to rely too heavily on the People's Republic to feed global demand. Their quest for a China+1 strategy has presented India with a once-in-a-generation chance to storm the supply chain. Vietnam’s phone exports last year were six times the South Asian nation’s thanks to Samsung Electronics Co. It is this gap that New Delhi wants to close. However, conflating correlation with causation could jeopardize this goal. Just because an apparent change in the country’s fortunes has occurred despite a lurch toward protectionism, government ministers are angrily dismissing critics who dare to question the wisdom of the tariff-subsidy combo. The official view is that as long as exporters can claim back the duties on imported components, they won’t grumble about India’s cost disadvantage against Vietnam — not when they’re being paid generous PLI incentives. Following up on this thinking, the Modi government in 2018 announced a “calibrated departure” from more than two decades of greater trade openness, and raised import duties on mobile phones to 20% from 15%. That project has continued unabated. In 2020, the duty on printed circuit board assembly and display was raised by 11 percentage points. This year’s government budget cut the duty on camera lenses to zero. That hasn’t made much difference. As the ICEA study shows, the accumulated increase from three years of changes still works out to nearly 5.6% of the bill of materials, or 3.6% of a phone’s total cost. Add the impact from the rupee’s 11% slide against the dollar since the start of last year — double the decline in the Vietnamese dong — and Indian-made phones would be uncompetitive by more than 4%, the ICEA says. This cost may not be showing up in export performance because it is being borne by India’s 1.4 billion consumers. Costlier imports are hurting local demand amid high inflation. Component manufacturers have no incentive to become globally competitive if they can hawk whatever they make in their home market at an inflated price, shielded by tariffs. Exporters, meanwhile, have every reason to keep importing components — and claim duty drawbacks. Self-reliance, the slogan under which the program is being sold to the public, may be an illusion. Raghuram Rajan, a University of Chicago economist and a former governor of the Indian central bank, has shown that after adding major parts that go into phones, the country may have become a bigger net importer than before. The PLI incentives are on incremental production, but the tariffs are on total costs. When the handouts eventually end, the elevated duties would bite. India’s own history is littered with cautionary tales of excessive state control. Erecting protectionist walls didn’t work in the past. High tariffs and a newly imposed license requirement on imported computers, laptops and tablets — a measure that smacks of bureaucratic desperation, as my colleague Tim Culpan has written — may not help make India the next factory to the world even now.
Source: Economic times
Issues pertaining to the proposed bilateral investment treaty being negotiated between India and the UK along with a free trade agreement will figure prominently during the visit of a high-level team from Britain here, an official said. UK Secretary of State for Business and Trade Kemi Badenoch and Director General for Trade Negotiations at the Departmentfor Business and Trade (DBT) Amanda Brooks are visiting India this week. Besides participating in the G20 Trade and Investment Ministerial Meeting in Jaipur on August 24-25, the UK minister will hold bilateral talks with Commerce and Industry Minister Piyush Goyal on August 26 here and review the progress of talks on the free trade agreement. The UK minister is also expected to meet Finance Minister Nirmala Sitharaman on various issues, including the bilateral investment treaty. Brooks would also meet senior officials of the department of economic affairs in the finance ministry, which is leading the negotiations on the investment treaty. These meetings assume significance as negotiations for the free trade agreement have reached a final stage. Investment treaty is being negotiated as a separate agreement between India and the UK and the two countries are looking at signing both the agreements simultaneously. Though talks for most of the chapters have been closed, both sides have intensified negotiations to iron out differences on issues including rules of origin, intellectual property rights and the investment pact. Sources said that at present the investment treaty is a hurdle in the conclusion of both the agreements simultaneously, however, negotiations are going on to bridge the differences. These investment treaties help in promoting and protecting investments in each other's countries. The main point of contention involved in this pact is about the mechanism for the settlement of disputes. India has proposed to first utilise all local judicial remedies for settlement of disputes before initiating an international arbitration. India has earlier lost two international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective levy of taxes. On automobiles and whiskey, an important demand of the UK, India has agreed to give duty concessions to British industry. Popular British whiskey brands include Johnnie Walker, Black Label and Chivas Regal. To provide duty concessions in the automobile sector, several rounds of consultations have been held with the domestic players in India. According to an expert, the UK-based auto makers like JLR, Bentley, Rolls-Royce, and Aston Martin, cater to the luxury segment, while Indian manufacturers are mostly in the mass segment. The 12th round of talks between India and the UK is in progress here. Out of the total 26 chapters in the proposed FTA, 19 have been closed. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK. The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at nil customs duties. On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, and certain confectionary items. Britain is also looking for more opportunities for UK services in Indian markets in segments such as telecommunications, legal and financial services like banking. The bilateral trade between the countries increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
Source: Economic times
High-level meetings of ministers and top officials of India and the UK are scheduled next week to review the progress of talks for the proposed free trade agreement (FTA) between the two countries, a senior government official said on Friday. The meetings assume significance as both countries have reached a crucial juncture of the FTA negotiations.Commerce Secretary Sunil Barthwal also said that bilateral meetings will also be held with the official teams of the European Union (EU) and Canada. These teams are coming for the two-day Trade and Investment Ministerial Meeting (TIMM) in Jaipur. It is commencing on August 24.High-level bilateral meetings will be held with countries such as the UK, Canada and EU to discuss progress with regard to proposed free trade agreements, he told reporters here while briefing about the TIMM. Negotiations on such agreements are underway with all these countries."This G20 ministerial meeting is useful for us to conduct some of the important bilaterals with respect to our FTAs. The UK is coming with their team. We will be having high-level meetings with the UK on FTA," Barthwal said. There will be also discussions on what "we have done" so far with respect to Canada and the EU, he said adding EU executive vice president and DG trade are coming to India.The 12th round of talks between India and the UK is in progress here. Out of the total 26 chapters in the proposed FTA, 19 have been closed. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK.The main issues which could come up for discussion in this round include investment treaty, reduction of duties on auto and whiskey, rules of origin, intellectual property rights and matters pertaining to services. The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at nil customs duties.On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, and certain confectionary items. Britain is also looking for more opportunities for UK services in Indian markets in segments such as telecommunications, legal and financial services like banking.The bilateral trade between the countries increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22. The Indian industry has demanded that a minimum import price of whiskey that is subject to lower customs duty should be USD 5 per 750 ml bottle to prevent cheap imports.The industry is positive about cutting the duty on bulk imports of scotch whiskey to be rebottled in India as rebottling would lead to value addition locally. India has overtaken France to become the UK's largest market of Scotch whisky in terms of volume with a 60 per cent hike in imports in 2022 over the previous year, according to Scotch Whisky Association (SWA).In 2021, Maharashtra slashed excise duty on imported scotch whiskey to 150 per cent from 300 per cent to bring its price on par with that in other states. According to certain estimates, Delhi and Maharashtra account for two-thirds of the scotch whiskey sold in India. On FTA negotiations with Canada, the commerce ministry has stated that the 9th round of talks was held last month. Issues in the negotiations include goods, trade remedies, rules of origin and services. Further, the secretary said that US Trade Secretary Katherine Tai will be here to participate in the TIMM. When asked about issues which could be discussed during a bilateral meeting with her, Barthwal said that they are finalising the agenda and the meeting "will be a follow up of Prime Minister's (Narendra Modi) visit to the US (in June)".
Source: Business-Standard
ndian economy to grow by an average annual rate of 6.7 per cent to March 2031 driven by manufacturing and services exports and consumer demand, said S&P Global. The agency has projected the growth rate for India despite short-term challenges from rate hikes and a global slowdown. S&P retained its earlier forecast of 6 per cent growth for the current scal year ending March 2024, noting even at this rate, India will be the fastest-growing economy in the G20. In a report titled ‘Look Forward: India’s Moment’ , S&P Global said, “While the world is in the midst of an unprecedented period of transition and uncertainty, India faces a dening opportunity to capitalize on this moment. ” It expects the size of the economy to reach $6.7 trillion from $3.4 trillion in FY2023. This could see per capita GDP rise to about USD 4,500. If realised, India would overtake Japan and Germany to become the third-largest economy in the world According to S&P Global, the economy is set to benet from efciency gains from tax reforms, state support to digital and physical infrastructure, and reducing leakages from government subsidy transfers. New opportunities are expected to emerge in the manufacturing sector from an accelerating global trend towards supply chain diversification as the government offered incentives to manufacturers and improving infrastructure. It is also to be noted that the government has been bullish on Semiconductor manufacturing as it has partnered with many global giants in this regard. “India’s ability to become a major global manufacturing hub will be a paramount test for its economic future, ” S&P Global said. The report believed that developing a strong logistics framework will be key in transforming India from a servicesdominated economy to a manufacturing-dominant one. Increasing female participation in the workforce to realize a demographic dividend will also be the key in the growth story. By 2031, the Indian consumer market will more than double surging to $5.2 trillion from $2.3 trillion in 2022. This growth will be driven by a rise in household incomes and higher spending on food and other items. “Higher per capita incomes will also likely boost discretionary spending in areas such as entertainment, communications, restaurants and hotels, ” said the report.
Source: The Statesman
INTERNATIONAL
A delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) led by President Faruque Hassan met with Engineer Haidar Al-Athari, Chairman of the Najaf Chamber of Commerce in Iraq on Sunday ( August 20, 2023) to discuss possible avenues of bilateral trade and investment. The delegation includes Mohammed Nasir, former Vice President (Finance) of BGMEA, Nazrul Islam, former Director of BGMEA, Sharmeen Hassan Tithi, director of Giant Group; Mohammed Shohel, managing director of Bangla Poshak Ltd, Mohd Shawket Hossain, director of Bangla Poshak Ltd and Nisher Khan, managing director of Banika Fashion Ltd. BGMEA President Faruque Hassan presented an overview of the readymade garment industry of Bangladesh, especially its manufacturing capabilities, product offerings, and the features that make global buyers prefer the garments made in Bangladesh. He highlighted the importance of establishing connections between the traders of Bangladesh and Iraq so that they could explore business opportunities that lie ahead for both countries. He also called on the members of the chamber to explore the potential of trade and investment in Bangladesh, especially import of more garments from the country. He invited Iraqi businessmen to visit Bangladesh to explore trade and investment opportunities offered by the country. Chairman of the Chamber Haidar Al-Athari gave a brief presentation of the range of services offered by the Chamber and investment opportunities in the Governorate and its economic features at the Iraq level. He invited the delegation to establish partnerships with their peers in Iraq to establish clothing factories.
Source: The Financial express
Columbia Sportswear Company, a global supplier of designing, sourcing, marketing, and distributing outdoor, active and everyday lifestyle apparel, footwear, accessories, and equipment products, named Tom Gyles its new Senior Vice President, Global Distribution Network in Canada. Mr. Gyles oversees North America and Europe wholesale, retail, and ecommerce companyowned distribution operations (2,000 employees). He is also accountable for the of the global third-party logistics network, strategy and operations including critical 3PL partnerships within the Asia Pacific region. Mr. Gyles has more than 20 years of logistics and distribution network experience across several industries. He has spent the last 10 years in the apparel industry with PVH Corp and Gap Inc. While living in Toronto, Shanghai, New York, and most recently Hong Kong, he was accountable for logistics and distribution operations supporting retail, wholesale, online and franchise businesses for multiple brands. Mr. Gyles’ experience includes company owned and operated and 3PL-managed facilities. He also led a 3PL business in Canada. Mr. Gyles will partner at the highest level with Columbia Sportswear’s executive teams globally, and is ultimately accountable for defining and delivering innovative models that serve future business strategy and uplevel consumer experience in a continuously changing supply chain landscape. He is based in Ontario, Canada and reports into Lisa Kulok, EVP, Chief Supply Chain Officer.
Source: Textile World
Trade between the European Union (EU) and China has grown in recent years despite talks of "decoupling" from or "de-risking" economic links with China, a sign that China's market still maintains an allure for European businesses due to its vast potential and size. Eurostat data show the value of European imports from China nearly doubled between 2018 and 2022. During the first half of 2023, China remained the leading supplier of goods to the EU, said an analysis by the Organization for Economic Cooperation and Development (OECD). Throughout this period, imports of products such as phones, computers, and machinery all saw significant increases. With both Europe and China sharing consensus on tackling climate change, Chinese electric vehicles have rapidly expanded their presence in the European market. Three of the top-selling electric car models in Europe in 2022 were of Chinese origin. Official statistics show that trade between China and the EU reached $847.3 billion in 2022, a 2.4- percent increase over the previous year. China and the EU are each other's main trading partner, with rapid growth in the trade of lithium batteries, electric vehicles, photovoltaic modules, and other green products. All these figures prove that a growing list of European enterprises view China as a robust partner. Ola Kaellenius, chairman of the Board of Management at Mercedes-Benz, said in a July interview with German weekly Automobilwoche that China, the world's largest automobile market, would be at the core of the company's marketing activities starting from 2025. "Investing in China is investing in the future," said Jean-Paul Agon, president of L'Oreal France, in a written interview with Xinhua. He emphasized that with an open market, an improving business environment, and promising initiatives to stimulate domestic demand, China presents new opportunities for the world and vice versa. He also noted that China is a strategic growth driver for L'Oreal, as "China is more than just a large market. It is the laboratory of the most innovative concepts and the testing ground for the latest marketing practices, where the future of beauty is born." Several European business leaders warned of the "de-risking" narrative. Belen Garijo, chief executive of Germany's leading science and technology group Merck, said that severing commercial ties with China would come with a substantial economic cost. She hoped tensions between China and some Western countries could be eased through dialogue. "Globalization has brought well-being to the world, with more innovation and cooperation, but we risk losing it," Garijo warned. Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, also said in a July interview with The Financial Times that Europe cannot reduce risk by isolating itself. European countries should not speculate on the risks of doing business in China; instead, they should invest more in enhancing competitiveness, Hartung added. European researchers have clarified the underlying logic behind the Europe-China partnership. Maria Joao Rodrigues, president of the Foundation for European Progressive Studies, said that China and Europe are more strategic partners than "systemic rivals." They should collaborate in reestablishing global rules, particularly in areas such as combating climate change, digital transformation, and artificial intelligence. In recent years, China has advanced initiatives on global security and development, where Europe and China can enhance cooperation. Similarly, The Financial Times cautioned in early August that it would be challenging for Europe to sever or reduce ties with such an important trading partner as China, which accounts for 14 percent of global exports. Likewise, German weekly magazine Focus noted that the Western economy adheres to its own rules when US President Joe Biden continues to announce restriction after restriction against China. Europe now understands the meaning of "decoupling," and the European economy is "decoupled" from American political directives rather than being "decoupled" from China, as the United States desires, the article concluded.
Source: China daily
The United States on Friday finalized a decision to impose import duties on solar panel makers who finished their products in Southeast Asian nations to avoid tariffs on Chinese-made goods, according to a senior Commerce Department official. The decision, which largely mirrors a preliminary finding the agency made in December, was opposed by buyers of solar panels that rely on cheap products made overseas to make their projects competitive. But it is good news for the small U.S. solar manufacturing industry, which for years has struggled to compete with Chinese goods and is enjoying renewed investment due to subsidies in U.S. President Joe Biden's landmark climate-change law. The Commerce probe found that units of Chinese companies BYD (002594.SZ), Trina Solar (688599.SS), Vina Solar (601012.SS) and Canadian Solar (CSIQ.O) were dodging U.S. tariffs on Chinese solar cells and panels by conducting minor processing to finish their products in Cambodia, Malaysia, Thailand and Vietnam before shipping them to the U.S. market. Those countries account for about 80% of U.S. panel supplies. The agency will also impose duties on New East Solar because it refused to cooperate with an on-site audit of its operations in Cambodia, the official said. Other companies operating in those nations have the ability to pursue a certification process to show that they are not circumventing tariffs. To become certified, solar cells and panels must contain non-Chinese wafers and three other key components. The United States has had anti-dumping duties in place for a decade on Chinese-made solar products after a Commerce probe found Chinese companies were receiving unfair government subsidies that kept their prices artificially low. The companies and others will face the same duty rates the United States already assesses on their Chinese-made products. They will not kick in, however, until June 2024 thanks to a two-year waiver from Biden that was intended to ensure ample panel supplies while domestic manufacturing ramps up. The solar industry on Friday said the Commerce decision will jeopardize the boom in solar manufacturing spurred by the Biden administration's Inflation Reduction Act. "The U.S. Department of Commerce is out of step with the administration's clean energy goals, and we fundamentally disagree with their decision," said Abigail Ross Hopper, president of the Solar Energy Industries Association. Trina Solar, which says it has invested hundreds of millions of dollars in cell and module production in Thailand and Vietnam, criticized the Commerce decision. The move will "increase the overall costs of virtually all U.S. bound solar products because it will constrain supply at a time when the demand for solar is skyrocketing," it said.
Source: The Reuters.com
The partnership between Bluesign and Madewell is a groundbreaking collaboration in the fashion industry. Bluesign, a prominent advocate for sustainable textile production, has teamed up with Madewell, a wellknown fashion brand recognised for its denim products. This collaboration is significant because it designates Madewell as the first denim company in the United States to be recognised as a Bluesign® System Partner. This designation underscores Madewell’s commitment to transforming denim production by adopting an environmentally conscious approach. Bluesign employs a comprehensive system that evaluates every aspect of denim manufacturing to achieve environmentally friendly outcomes. The focus is on using sustainable chemicals and methodologies throughout the manufacturing process. This involves close collaboration with brands, manufacturers, and chemical suppliers. Bluesign conducts on-site visits to ensure that sustainable practices are being implemented. Daniel Rüfenacht, the CEO of Bluesign, has highlighted the core principles of the ‘Bluesign® Denim’ strategy. The strategy involves a complete reimagining of denim production by integrating sustainable practices and chemistry. Madewell’s involvement as the inaugural US denim brand to embrace this approach holds great significance in driving transformation throughout the industry. The initiative aims to serve as a catalyst for change and hopes to inspire other brands to adopt similar sustainable strategies and methodologies. According to the founder of Bluesign, choosing ‘Bluesign® Denim’ empowers consumers to make fashion choices that are both sustainable and reliable, without compromising the enduring appeal of denim. This partnership between Bluesign and Madewell marks a crucial step forward in promoting sustainability within the fashion world and encouraging a shift toward eco-friendly practices.
Source: Apparel resources
