INTERNATIONAL
NATIONAL
India has signed several FTAs in the recent past. Has the trade been able to utilize these and take the intended benefits of these? Given the growing relevance of more awareness and knowledge for the industry to leverage the FTAs effectively, CITI has partnered with Lakshikumaran and Sridharan, law firm specialists in Customs and International Trade, for a series of webinars to look into the various provisions and opportunities that the FTAs offer and how to leverage them. The first webinar in this series of webinars – Utilizing Free Trade Agreements to Grow Export Opportunities was held today.
Source: The Apparel views
Commerce Secretary Sunil Barthwal has said that the talks on the proposed free trade agreement (FTA) between India and the UK are moving and there is “good progress” on issues such as rules of origin and bilateral investment treaty (BIT). As per media reports these were among the issues where there were differences between the two sides. The ‘rules of origin’ provision prescribe that minimal processing should happen in the FTA country so that the final manufactured product may be referred to as goods originating in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain dumping of goods. He also added that many things are moving very fast. For example, on the rules of origin and bilateral investment treaty, there is good progress. “Negotiations are happening… Towards the end of the deal, it is the difficult issues which are to be closed and therefore it requires more time and more deliberations,” he said. Mobility is also one of the subjects which is being negotiated. The Indian textile and apparel industry is eagerly waiting for the FTA with UK as it will be a big boost for the industry. So far 12 rounds of talks have been completed and the 13th round will start from 18th September. On the India-EU trade pact, so far 5 round of talks have been concluded and the sixth round will take place during 16th-20th October.
Source: Apparel Resources
Finance Minister Nirmala Sitharaman expressed optimism, in interview published on Friday, that India could achieve its nominal economic growth target of 10.5% this fiscal year, and hinted that growth took priority over taxing diesel vehicles. "I would like to believe that we will achieve the target," Sitharaman told the Business Standard newspaper. India's fiscal year begins on April 1. Nominal gross domestic product growth fell to a 10-quarter low of 8% in the June-quarter. The minister also said stocking up of passenger vehicles by dealers to meet festival demand is an indicator for "activity and good buoyancy in the economy." India's festival season typically starts from late September. She also said there was nothing holding back a majority stake sale of IDBI Bank (IDBI.NS) but it was a matter of timing. India is looking to offload its 30.48% stake in IDBI Bank, while state-run Life Insurance Corp (LIC) (LIFI.NS) will sell a 30.24% shareholding. Presently, the Indian government and LIC collectively own about 95% in IDBI Bank. Earlier this week, India's road transport minister Nitin Gadakri he will propose an additional 10% tax on diesel vehicles, but then walked back on his comments, saying India is no such new tax. When asked about 10% tax on diesel vehicles, Sitharaman responded: "I'm looking at an economy which has to grow." In a separate interview, she said around 22 countries were negotiating and exploring bilateral trade with India in rupees.
Source: The Reuters.com
The talks between India and Canada on a free trade agreement were paused due to the political differences and as soon as they are sorted out to New Delhi’s satisfaction the negotiations would resume, a senior official said Friday. “There were certain political developments in Canada on which India has raised its objections. India has shown a strong resentment against certain political developments in Canada and therefore for the time being till these political issues are settled, we have paused the negotiations,” the official who did not wish to be identified said. “But the moment these political issues are sorted out, the talks will resume. So it is only a pause,” he added. The first information on both countries pausing negotiations came on September 2 and at that time no reason was given. Trade aside, political relations between India and Canada have taken a downturn in the past few months due to activities of some of the extremists of Indian origin against India’s interests. There have been attacks on Indian consulates and posters appeared in Canada with pictures of Indian diplomats while making several allegations against them. Canada on its part alleges Indian interference in its internal affairs. The issue also was raised by Prime Minister Narendra Modi in his meeting with his Canadian counterpart Justin Trudeau on the sidelines of the G-20 summit here last week. In his post meeting press conference Trudeau had “Canada will always defend freedom of expression, freedom of conscience, and freedom of peaceful protest and it is extremely important to us.. at the same time we are always there to prevent violence and to push back against hatred”. The negotiations on a Comprehensive Economic Partnership Agreement with Canada were started in 2010 but could not make much progress. The negotiations were relaunched in March 2022. While discussions on the comprehensive trade agreement were on, both sides were also discussing an interim agreement with a limited scope which they named as – Early Progress Trade Agreement (EPTA).So far nine rounds of negotiations have been held between the two countries with the last round of engagement happening in the last week of July in virtual format. India is seeking greater access to its traditional products and liberal visa norms for its professionals. Canada wants greater opening for its agriculture products and automobile sector in the Indian market. Apart from the trade agreement India and Canada were also discussing an investment agreement – Foreign Investment Promotion Agreement. Bilateral trade between India and Canada stood at $8.1 billion in the last financial year with exports at $4.50 billion and imports at $ 4.05 billion.
Source: Financial Express
The government is working on policy intervention to promote mass manufacturing of assistive devices in India by incentivising the private sector to undertake R&D for such technology and scale up production while providing monetary support to persons with disability to avail assistive technology services to reduce the out-of-pocket payment. NITI Aayog has started discussions with the Indian Council of Medical Research (ICMR), World Health Organisation (WHO) and stakeholder ministries to firm up the blueprint for a national integrated policy on assistive devices, a senior government official told ET. India has an estimated 30 million persons with disability as per the 2011 census and over 5% of the people aged 60 years and above have some form of disability The latest WHO report on assistive technology says that globally more than 2.5 billion people need one or more assistive products and the number is expected to go up to 3.5 billion by 2050 with an ageing global population and a rise in non-communicable diseases. According to WHO, the assistive products industry is currently limited and specialised, primarily serving high-income markets. There is a lack of state funding, nationwide service delivery systems, user-centred research and development, procurement systems, quality and safety standards, and context-appropriate product design, it said. In many low- and middle-income countries, national service delivery for assistive products does not exist. Those who can afford them buy assistive products directly from a pharmacy, private clinic or workshop, it added.
Source: Economic times
INTERNATIONAL
Rapid switch to man-made fibre (MMF) garment-making is seen imperative to meet changing apparel demand in the West as consumers change taste away from cotton wears that Banglsdesh predominantly exports thus far. Latest statistics show Bangladesh is the top cotton-based apparel exporter to the European Union and United Kingdom, surpassing China, in 2022 while second to the US market after Vietnam, while a tangible transition from the traditional to the new-generation clothing is taking place. Bangladesh's share in cotton-fibre- garment exports to the EU in 2022 was 34.7 per cent, while China's only 14.9 per cent, according to data of Research and Policy Integration for Development Bangladesh (RAPID) study based on ITC. On the other hand, China's share in non-cotton garment items to the EU was a predominant 41.2 per cent as against Bangladesh's lowly 12.2 per cent, it showed. The shares of Turkey, India, Pakistan, Cambodia and Vietnam in cotton-garment exports to the EU market in the last calendar year were 14.6 per cent, 7.4 per cent, 6.5 per cent, 3.6 per cent and 2.3 per cent respectively. The non-cotton share of Turkey is 8.9 per cent followed by Vietnam's 6. 5per cent, Myanmar's 5.2 per cent, Cambodia's 3.9 per cent and India's 2.5 per cent respectively, the RAPID data showed. The EU imports of apparel are worth $195 billion with cotton apparel making up $89 billion (46 per cent) and manmade fibre (MMF) and blended apparel $102 billion or 52 per cent of the trade. In 2022, Bangladesh grabbed 27.95-percent share of UK's cotton-based garment imports and China's market share was 12.33 per cent, according to ITC data. On the other hand, Vietnam led the US market by having 15.3 per cent of the USA's cotton garment share followed by Bangladesh with 14.6 per cent and China 12.7 per cent, as per the ITC data. Bangladesh is likely to earn $11 billion from RMG exports to the UK by 2030, according to projection in another RAPID report. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set a target of $100 billion worth of export earning by 2030, projecting a 10-11percent gradual growth each year. Of the targeted $100 billion, about $90 billion could be earned from the EU, the UK and the US, RAPID data analysis showed. Globally, $495 billion worth of apparel goods were imported in 2022 where $212 billion or 43 per cent were cotton-based and $262 billion (53 per cent) MMF and blended apparel, according to data. Global cotton-apparel-market share is 43 per cent and MMF and blended share 53 per cent in the process of ongoing demand-driven switch. Clothing is Bangladesh's largest foreign currency-earning sector accounting for more than 84 per cent or US$46.99 billion out of US$55 billion in the last fiscal year of 2022-23. Its exports are mostly based on cotton and maximum of the earnings depend on five items: trousers, shirt, t-shirt, sweater, and underwear. Data analysis shows Bangladesh's greater dependence on single products and its proportion of products while economists and industry people stressed the country's need and opportunity to diversify within the largest forex- earning sector to avoid global shocks and future challenges. "Excessive dependence on cotton garments could be a cause for concern. It's time to move into non-cotton items," says RAPID chairman Dr MA Razzaque. "So, here Bangladesh has the potential to explore more markets in the EU if it can diversify the products within the garment items," he adds. The country's current readymade garment exports to the EU market are worth around $25 billion per year. According to the RAPID study, Bangladesh's apparel exports to the EU are projected to increase up to $60 billion by 2030. Buyers' sourcing strategy of diversification away from China may greatly contribute to Bangladesh's RMGexport growth, Mr Razzaque says. Experts have said moving towards MMF can be greatly facilitated by extended EU preferences beyond LDC (Least Developed Country) graduation while UK's preferential trading scheme for developing countries (DCTS) would be helpful to an increase in apparel exports. When asked, Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan said it is good that Bangladesh has raised its market share and become top supplier of global cotton-based garment items. "We are now also focusing and working on increasing the MMF share as the demand for such goods is on the gradual rise," he said, adding that they need policy supports from the government to attract investment in the segment. The BGMEA leader reiterated his demand to the government for providing 10-percent cash incentives in MMF-based garment manufacturing that would not only support bringing investment but also create fresh employment and increase export earnings. Citing the cash incentives given for the non-traditional markets excepting the EU, the USA and Canada, he said the perks helped in raising export earnings. The non-traditional markets accounted for 17.82 per cent or US$8.37 billion of the total RMG earnings worth US$46.99 billion in the last fiscal year which was US$1.08 billion or 8.66 per cent of total RMG-export earnings in fiscal 2009-10.
Source: The Financial express
Culture Secretary Lucy Frazer announced a £ 2 million Government funding allocation to the British Fashion Council (BFC) to provide financial support which will bolster the BFC NEWGEN program, aimed at nurturing and guiding emerging designers. In its 30th year, NEWGEN has been instrumental in launching the careers of renowned fashion icons like Ahluwalia, Alexander McQueen, Erdem, Grace Wales Bonner, JW Anderson, Martine Rose, Roksanda, Saul Nash, and Simone Rocha. Culture Secretary Frazer unveiled this funding commitment during the ‘REBEL: 30 Years of London Fashion’ event, sponsored by Alexander McQueen, held at the Design Museum on September 12th. Lucy Frazer said, “The NEWGEN scheme has kickstarted the careers of some of our best UK-based designers who are making waves in the fashion world, and I’m delighted this funding will help the next crop of British fashion talent build businesses that can thrive for years to come.” The Government’s investment underscores its dedication to fostering the growth and innovation of the UK fashion industry.
Source: Apparel Resources
The Bangladesh Garment Manufacturers and Exporters Association and the Dhaka Stock Exchange recently signed an MoU to collaborate in promoting LEED-certified green garment firms to get enlisted in the capital market. DSE will assist BGMEA members to raise funds through initial public offerings or issuing bonds. Both sides will share knowledge and experience as well.The Bangladesh Garment Manufacturers and Exporters Association and the Dhaka Stock Exchange recently signed an MoU to collaborate in promoting LEED-certified green garment firms to get enlisted in the capital market. DSE will assist BGMEA members to raise funds through initial public offerings or issuing bonds. Both sides will share knowledge and experience as well.
Source: Velvet classic
In a significant partnership, TRIMCO GROUP, a pioneer in global supply chain traceability, and GREENSCORE CAPITAL, a prominent SaaS software company specialising in science-based product footprint measurement, have united to offer an enhanced environmental labeling solution. This collaboration encompasses supply chain traceability and PEF (Product Environmental Footprint) assessment. By integrating Green Score Capital’s comprehensive and science-based product impact score calculation tool with Trimco Group’s super-efficient supply chain data monitoring and reporting platform, ProductDNA®, the collaboration presents brands with a streamlined and highly precise solution for traceability and eco-friendly product claims. Utilising Trimco Group’s extensive global network and the accurate ProductDNA® system, detailed information is extracted for calculating and assessing the biodiversity and carbon footprint of clothing and footwear. Green Score Capital then uses this data to deliver brands a robust, solutions-oriented PEF score. As part of the DPP program and workgroup mandated by the French government, Green Score Capital’s processes are comprehensive, offering a tailored solution based on the French government’s criteria, along with their expertise and scientific knowledge. The company has developed its own PEF methodology, exceeded standard EU PEF requirements and stayed in sync with legal advancements, including environmental laws such as the Corporate Sustainability Reporting Directive and deforestation regulations. “There are so many aspects to the DPP (Digital Product Passport), and brands often find themselves having to work with several suppliers or solutions to be compliant. This can be very challenging. Our collaboration with Green Score Capital will help to streamline this process and ensure that brands receive the most up-to-date and accurate information. Acquired data also means that partnering brands are better protected and avoid the risk of being accused of greenwashing,” states Claire Piccinno, Sustainability Research Coordinator at Trimco Group. “ProductDNA® was designed to help brands achieve their sustainability goals and this partnership adds another fantastic benefit to our already comprehensive solution.” Founder of Green Score Capital, Valérie Tiersen, commented on the strategic partnership, “Since its inception in 2019, Green Score Capital’s focus has always been on helping companies accelerate their environmental performance while ensuring their economic resilience. We believe that by combining forces with Trimco Group, we will be able to help companies embark on their DPP journey faster and more efficiently, which is good for our planet, its people, and good for business.”
Source: Apparel Resources
