INTERNATIONAL
Textile Raw Material Price 2016-09-21
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1013.39 |
USD/Ton |
0% |
9/21/2016 |
|
VSF |
2518.49 |
USD/Ton |
0.12% |
9/21/2016 |
|
ASF |
1888.87 |
USD/Ton |
0% |
9/21/2016 |
|
Polyester POY |
1021.64 |
USD/Ton |
-0.15% |
9/21/2016 |
|
Nylon FDY |
2421.05 |
USD/Ton |
0% |
9/21/2016 |
|
40D Spandex |
4422.35 |
USD/Ton |
0% |
9/21/2016 |
|
Nylon DTY |
1236.76 |
USD/Ton |
0% |
9/21/2016 |
|
Viscose Long Filament |
2623.43 |
USD/Ton |
0% |
9/21/2016 |
|
Polyester DTY |
5614.13 |
USD/Ton |
0% |
9/21/2016 |
|
Nylon POY |
1289.23 |
USD/Ton |
0% |
9/21/2016 |
|
Acrylic Top 3D |
2233.66 |
USD/Ton |
0% |
9/21/2016 |
|
Polyester FDY |
2061.26 |
USD/Ton |
0% |
9/21/2016 |
|
30S Spun Rayon Yarn |
3103.14 |
USD/Ton |
0% |
9/21/2016 |
|
32S Polyester Yarn |
1678.99 |
USD/Ton |
-0.88% |
9/21/2016 |
|
45S T/C Yarn |
2608.43 |
USD/Ton |
0% |
9/21/2016 |
|
45S Polyester Yarn |
1843.89 |
USD/Ton |
0% |
9/21/2016 |
|
T/C Yarn 65/35 32S |
2248.65 |
USD/Ton |
-11.76% |
9/21/2016 |
|
40S Rayon Yarn |
3238.06 |
USD/Ton |
0% |
9/21/2016 |
|
T/R Yarn 65/35 32S |
2356.59 |
USD/Ton |
-0.51% |
9/21/2016 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
9/21/2016 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
9/21/2016 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
9/21/2016 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
9/21/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
9/21/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14991 USD dtd. 21/09/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The textile industry should adapt, innovate and invest in the weaving and processing sectors as also market itself relentlessly to survive and sustain, Premal Udani, Managing Director, Kaytee Corporation, has said. Addressing the Southern India Mills’ Association's 10th CEO Conference here this morning, Udani said the problems that existed 20 years back continue to haunt the industry. Urging the mills to think beyond cotton, considering that polyester blends had come up in a big way, Udani, who was speaking on the theme "Navigating Future Textile Business" observed that when the textile industry is in decline, the apparel sector progresses. "It was a sunrise industry till the 90s, but the scenario has now changed with the industry's contribution to the GDP registering a downward slide. The mills need to think beyond cotton as polyester blends are coming up," he reiterated, adding "in the present global situation the industry should adjust itself and not ask the government for protection "We cannot depend on the government for everything; instead, we should become masters of our own destiny," he added. The apparel sector is obviously the growth engine and realising this, the government had announced a special package and incentive for the sector, albeit with a condition - which is creation of new jobs. "There is no level playing field. Bangladesh, for instance, enjoys a duty advantage, which has not only affected the spinning sector but the entire textile value." Further, asserting that cotton is no more an important fibre with other fibres coming into the market, and considering the fact that the volatility in cotton prices cannot be avoided, he emphasised the need for creation of buffer stocks, as in the US and China, to tide over the crisis situation.
SOURCE: The Hindu Business Line
While cotton continues to be the major raw material for the Indian textile industry, the sector should focus on other fibres too, said Premal Udani, Managing Director of Kaytee Corporation. Speaking at the CEO conference, organised by Southern India Mills’ Association here on Thursday as part of its annual meeting, Mr. Udani said several problems that the textile industry faced two decades ago continue even now. The contribution of textile sector to the GDP has come down to two per cent to three per cent as against four per cent earlier. Exports (at 36 billion dollars a year) constitute just 30 per cent of the revenues earned by the textile industry. Major share is still with the domestic market. Issues such as price volatility of cotton and import of fabrics are likely to continue. The industry should look at building its strengths. There should be buffer cotton stocks as in China. While the general textile industry is on a declining trend, the apparel sector is progressing. This sector is the engine of growth. The Union Government has announced special package for the apparel sector. Apparel sector needs a level-playing field in the international market as countries such as Bangladesh now have duty advantages, he said.
SOURCE: The Hindu
The government on Thursday announced additional incentives worth Rs 1,500 crore for exporters to help them fight the continued slowdown in global demand. The Merchandise Exports from India Scheme (MEIS) has been beefed up with the number of tariff lines or export products covered going up from 5,012 to 7,913. The rate of incentives has also been increased for certain products. “The total support extended by the Centre under the scheme has been enhanced from the present Rs 22,000 crore to Rs 23,500 crore per annum,” the commerce ministry stated.
Under MEIS, which was introduced in April 2015, exporters get duty-free scrips to import input goods, which go into the production of export items. The percentage of duty credits earned is based on a percentage of value of their exports — currently pegged at fixed rates of two per cent, three per cent, and five percent depending on the product and country. The earned scrips can be freely transferred to others or sold. Exporters have continued to maintain that more government help is needed to sustain India’s falling outbound trade. Merchandise exports fell for the second consecutive month in August, going down by a marginal 0.30 per cent. Due to a global fall in commodity prices and sluggish demand, exports had contracted for 19 consecutive months till May this year, before rising marginally by 1.27 per cent only once in June.
Welcoming the expansion in the number of products covered, S C Ralhan, president of the Federation of Indian Export Organisations, said higher rates will lead to added competitiveness. MEIS covers about 70 per cent of the total tariff plan traded by the country, up from 46 per cent earlier. There are 2,901 additional products falling under different categories, which include processed goods, marine products, sea feed items, onion dried, industrial products such as engineering goods, fabrics, garments and chemicals, among others. The annual resource allocation under MEIS had been enhanced once before – from Rs 18,000 crore to Rs 21,000 crore in October 2015. The rate of incentives under the scheme for 575 products has also been increased. These include iron and steel, ceramic, glass, industrial machinery, machine tools and rubber products, among others. In June, the government had relaxed the norms for claiming duty benefits by exempting merchandise exporters from mandatory submission of landing bills.
SOURCE: The Business Standard
Despite an overall slump in India’s textile sector, Gujarat has performed remarkably well through policy support from both the Centre and state government. This is evident from the fact that while exports from the country’s textile sector have remained stagnant over the last two years, the state has registered a consistent growth. Speaking to FE, officials of the Textile Commissioner’s regional office in Ahmedabad said, “Gujarat has maintained a consistent growth of nearly 18% over the past decade since 2004. Unlike several other states, entrepreneurs in Gujarat have the option of availing benefits from both the Centre and the state government, allowing for additional benefits.” The Centre’s Technology Upgradation Fund Scheme (TUFS), along with the state government’s policy, has helped entrepreneurs reap huge benefits in the sector.
Currently in Gujarat, there are 144 composite mills including those for spinning, 897 cotton ginning and processing units, 22 surgical cotton units, 2,362 units for processing of readymade garments, 362 units for technical textiles, 513 power processing units and 1,146 hand processing units, of which 95% are located in Rajkot. Additionally, Gujarat also currently has 60 home textile units and 5,053 preparatory units for weaving. City-based consultant (textiles) Dr PR Roy, said, “Exports from the country have been stagnant over the last two years at about $41 billion. The industry is not performing up to expectations, despite policy support. The scope and opportunities for the textile sector are major, but industrial performance has been limited. Industries need to do a lot more in order to beat international competition from countries like China. However, there has been a huge growth in home textiles in regions like Anjar and Vapi, owing to companies like Welspun coming into the state.”
Gujarat, which has been a hub for the textile industry since the 19th century, has been very active in availing TUFS as compared to other states. According to records maintained by the regional office here, of 5,136 applications made for 15% of capital subsidy scheme, nearly 87% originated from Gujarat. Of the R230.11 crore subsidy disbursed, 75% was to units and entrepreneurs in Gujarat. The capital subsidy scheme also allows for 20% and 30% subsidy exclusively for weaving units. For the former, nearly 28% of 4,267 applications were from Gujarat while 25% of R382.02 crore subsidy was disbursed to units in Gujarat. Under the 30% subsidy scheme, about 46% of 441 applications hailed from Gujarat and nearly 50% of the R178.03 crore was also disbursed in Gujarat. “There has been more investment in spinning due to support by the government. While the Centre has cut down its support for spinning now, the state government continues to support it. Since the Gujarat government’s last policy for the textile industry in 2013, spinning units have increased manifold. Gujarat is also at an advantageous position in the textile industry over states like Tamil Nadu, due to its position as the largest cotton-growing state,” Roy said.
The Amended Technology Upgradation Fund Scheme (ATUFS), which was cleared by the Cabinet Committee on Economic Affairs in December 2015, saw the government focussing on the apparel, garment and technical textiles by providing a 15% capital investment subsidy, subject to a ceiling of R30 crore over five years. Entrepreneurs in other sub-sectors are eligible for subsidy at a rate of 10%, subject to a ceiling of R20 crore. The officials said, “Spinning has developed in a huge way as have export orders over the years. Exports rose especially in 2013, when spinning units in China were shut down.” In 2013, the Chinese government’s cotton stockpiling policy had forced domestic prices to rise by 40% above world levels, forcing traders to import yarn from India and Pakistan.
SOURCE: The Financial Express
As many as a dozen states, including Uttarakhand, Rajasthan and Jharkhand, have implemented 75% of the reform initiatives under the ease of doing business programme, reflecting positive sentiments, commerce minister Nirmala Sitharaman said on Thursday. These three states are followed by Telangana, Madhya Pradesh, Haryana, Chhattisgarh, Maharashtra, Andhra Pradesh, Gujarat, Punjab and Karnataka in implementing reforms. The government, however, has maintained that the review process of the reform initiatives is still on and the current rankings may change. The ranking of states is an assessment of the regulatory performance of states and a measure of how they improve over a period of time. Importantly, the rankings don’t accurately reflect the level of business-conducive nature of the states; rather, it shows how the states fared in implementing an action plan adopted by them with the help of the Centre within a particular time frame.
Addressing the inaugural session of the Invest North Summit organised by CII, Sitharaman also said tax and regulatory authorities are being directed not to go on an overdrive and asserted the government will not in any way create hindrances for businesses. The ranking is based on indicators including the ease of starting a business, registering a property, getting credit, paying taxes and resolving insolvency. The World Bank, which has been entrusted with the job of ranking states on their performance on ease of doing business by the centre, will likely wrap up this exercise by the end of this month.
Talking on the occasion, Department of Industrial Policy and Promotion Ramesh Abhishek said India is also hopeful of improving its rank among other nations in the World Bank’s Ease of Doing Business Index. Last year, India was ranked 130th in the World Bank’s index covering 189 countries, an improvement of four notches from a year before. While India improved its rank on three counts — starting a business, getting construction permits and accessing electricity — it witnessed its performance worsen in two areas — accessing credit and paying taxes.
SOURCE: The Financial Express
Commerce Minister Nirmala Sitharaman has sought inputs from industry on the proposed Goods & Services Tax (GST) and has said that all their concerns would be taken on board. “Businesses should interact with the government. We need inputs from industry on GST. Tell us your concerns. Our government is responsive,” Sitharaman said speaking at an event organised by industry body CII on Thursday. Several sectors such as the IT & ITES, financial services, plantation, e-commerce, renewable and energy have expressed concern over various aspects of the GST Bill. These include complex billing and invoicing requirements, lack of clarity on continuation of exemption from State levies and increase in total taxes. Any lingering doubt with regard to GST or on any policy matter in the minds of investors should be addressed by the States and the Centre, she said. On the government’s efforts to increase ease of doing business in the country, Sitharaman said that 12 States had complied with as much as 75 per cent of ‘ease of doing business’ targets. “There are very many who now have to catch up,” she said, adding that the government had identified more than 340 processes on which it wanted States to remove all existing constraints. Businesses can be sure that while regulatory content from the government’s side would improve, there would be no increase in regulatory intensity, the Minister added. The Department of Industrial Policy & Promotion (DIPP) is committed to Prime Minister Narendra Modi’s vision of bringing India in the top 50 countries (from 130 at present) by 2018 in World Bank’s ease of doing business index, DIPP Secretary Ramesh Abhishek said.
SOURCE: The Hindu Business Line
The Centre and the States failed to reconcile their differences on the issue of the threshold for exemption of businesses under the Goods & Services Tax regime, at the first meeting of the GST Council on Thursday. “We will continue discussions on Friday and try to reach a consensus on the threshold,” said Finance Minister Arun Jaitley, who is also the head of the Council. However, on three other aspects — the rules and timetable of GST Council meetings, and the compounding procedure — consensus was reached, he added. The agenda for the meeting suggested that the threshold for exemption should be Rs. 25 lakh, but some States want a lower limit. “There is a division of opinion on the issue. In Delhi, we want the threshold to be Rs. 25 lakh as otherwise small businesses will get impacted,” said Delhi Deputy Chief Minister Manish Sisodia. Andhra Pradesh Finance Minister Yanamala Ramakrishnudu made a case for the exemption threshold to be pegged at Rs. 10 lakh.
Kerala Finance Minister Thomas Isaac told BusinessLine that the GST Council should function democratically and respect the rights of States. Jaitley expressed the hope that there would be a consensus on the issue on Friday. He further said the issue of cross-empowerment or control over small businesses and compensation to the States would also be discussed on Friday. “We will then finalise the dates for the next round of meetings when other issues such as the GST rates will be discussed,” he said, adding that the Vice-Chairperson of the Council will also be selected later. States such as Andhra Pradesh, Uttar Pradesh and Tamil Nadu are understood to have sought voting rights in the GST Council in proportion to States’ representation in Parliament, but this did not find wider acceptance. Other States, including Kerala, wondered whether the GST Council Vice- Chairperson should be selected by consensus or elected.
SOURCE: The Hindu Business Line
An all-women business delegation today began a 14-day visit to New Zealand to explore business opportunities in sectors like education, textile, gems and jewellery, real estate and infrastructure. The delegation of FICCI Ladies Organisation (FLO), the women’s wing of the industry body, consists of 42 women entrepreneurs and professionals. They will be visiting multiple cities, including Auckland, Wellington, Queenstown, Franz Josef and Christchurch. The business interest of the delegates include areas like education, textile, gems and jewellery, chemical, agriculture, waste management, real estate and infrastructure. “We will have business meetings with businesswomen in areas of manufacturing, agriculture, education and knowledge transfer. The delegation will also be visiting and speaking at the Parliament. We will also interact with Parliamentarians and the Indian diaspora in New Zealand,” FLO President Vinita Bimbhet said.
SOURCE: The Financial Express
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$ 44.94 per barrel (bbl) on 22.09.2016. This was more than the price of US$ 43.49 per bbl on previous publishing day of 21.09.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3003.85 per bbl on 22.09.2016 as compared to Rs. 2908.59 per bbl on 21.09.2016. Rupee closed stronger at Rs. 66.85 per US$ on 26.09.2016 as against Rs.66.88 per US$ on 21.09.2016.. The table below gives details in this regard:
|
Particulars |
Unit |
Price on September 22, 2016 (Previous trading day i.e. 21.09.2016) |
Pricing Fortnight for 16.09.2016 (Aug 30, 2016 to Sept 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
44.94 (43.49) |
45.03 |
|
(Rs/bbl |
3003.85 (2908.59 ) |
3005.30 |
|
|
Exchange Rate |
(Rs/$) |
66.85 (67.02) |
66.74 |
SOURCE: PIB
A trade deal between the European Union and Japan would expand trade and investment in textile and clothing industry between the two, textile bodies from both parties have said. Both the EU and Japan are taking leading roles in developing high technology and quality of fibres and fabrics, as well as in creating high value added fashion apparel. Both the EU and Japan are key export markets for their respective textile and clothing industry. For EU, Japan is the 7th largest textile and apparel export market reaching almost €1.9 billion, while for Japan, the EU is the 3rd biggest export market reaching almost €0.7 billion.
The European Textile and Apparel Confederation (Euratex) and the Japanese Textile Federation (JTF) maintain excellent relationship and complementarity activities. Moreover, the trade structure of textile and garments between the EU and Japan is also complementary. Hence, both trade bodies believe that a free trade agreement (FTA) would expand the trade and investment in textile and clothing and promote further business development. It would also build platforms in various types of R&D cooperation, thereby creating new innovations and business opportunities, Euratex said in a statement.
Over the last years, both associations have discussed on the way to reach an agreement that will benefit companies from both parties. They recently agreed on major issues like tariffs elimination and rules of origin. “Our Japanese colleagues believe, like we do, that the rules should be adapted to the structure of our industries and that we both are best judges of what works for our industries. I am therefore very happy that we can share this Joint Statement and I urge the negotiators both sides to take it into due consideration,” said Euratex president Serge Piolat.
SOURCE: Fibre2fashion
Technology, today, enables us to source ingredients for bio-based materials, integrate them with other fibres and enhance their attributes and create products superior in quality and yet eco-efficient for the environment, said Renee Henze, global marketing head, DuPont Biomaterials and Sorona, in an exclusive interview with Fibre2Fashion. According to her, there is huge potential in the market for sustainable high performance fibres. Giving example of Sorona, she says it has applications across the apparel space, from its stretch recovery and softness attributes, to its durability and comfort. “For example, we have partnered with companies in the Indian textile market to incorporate Sorona into materials used for saris.”
Over the past few years, DuPont has partnered with major apparel global brands to include Sorona in their product lines. These customers include well-known global brands in the outdoor apparel, ready-to-wear, fashion, denim, yoga, intimate apparel and sports apparel segments. The company also works directly with yarn spinners and fabric mills to integrate the biopolymer into fabrics downstream. However, a challenge lies “in developing fibres in a sustainable way that do not compromise on performance. We have to do so in a way that is accessible and economical enough to make an impact across the apparel industry.”
SOURCE: Fiber2fashion
Pakistan’s exports of textile and clothing witnessed a decline of 2.64 per cent in July-August on a year-on-year basis. In absolute terms, export proceeds from the sector fell to $2.07 billion in the first two months of the fiscal year compared to $2.12bn recorded in the same period a year ago, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday. Last year, exports of ready-made garments witnessed nominal growth despite a fall in the exports of most products. In July-August, exports of ready-made garments witnessed an increase of 3.76pc from a year ago while those of bed wear surged 5.28pc. However, exports of knitwear, which is a value-added segment, declined 3.18pc during the months under review on an annual basis. The decline is despite the fact that the Generalised Scheme of Preferences-Plus provides zero-duty market access to Pakistani exportable products, including textile and clothing, into the European Union.
The five-year textile policy effective from July 1, 2015, which is laden with incentives for the promotion of value-added sectors, seems to have helped the garment sector maintain sluggish growth in exports. On the positive side, the import of textile machinery witnessed year-on-year growth of over 5pc in the first two months of the current fiscal year. The commerce ministry has already announced the overall export target of $35bn for 2018. Exports of primary commodities like cotton yarn and cotton cloth registered negative growth of 16.64pc and 4.12pc, respectively, in July-August on a year-on-year basis. Exports of towels also declined 17.42pc annually in July-Aug. Exports of tents, canvas and tarpaulin went up by 82.55pc year-on-year while made-up articles, excluding towels, rose by 11.83pc and other textile materials increased by 9.35pc over the period under review.
SOURCE: The Global Textiles
Commerce Minister, Khurram Dastgir Khan Thursday sought support of Germany for entering into Free Trade Agreement (FTA) with European Union (EU). The minister was talking to a high ranking German business delegation led by Stephen Steinlien, State Secretary of the German Federal Foreign Office, who called on him here. He expressed Pakistan's willingness to enter into FTA with EU formally at EU-Pakistan joint Commission on trade. He informed the delegation that there was an FTA with China and if EU is interested in FTA, Pakistan is willing to make transition from GSP Plus to FTA with EU which would then bring tariffs on EU products at par with China. He said that it was right time to invest in Pakistan as it, in leadership of Prime Minister Nawaz Sharif, was successfully coming out of violent extremism and was gaining economic instability. He said that the government was overcoming energy crisis while its public finances have been stabilized, adding the country would have better regional connectivity as a result of China Pakistan Economic Corridor (CPEC).
On the occasion, the German companies acknowledged the fact that there has been tremendous improvement and Pakistan is more peaceful, more stable economically and showed great interest in investment in various sectors in Pakistan. However, German companies already working in Pakistan, raised their concerns related to tariff rates in comparison with Chinese companies. Both the sides agreed to hold further meetings to improve cooperation in commerce and trade sectors.
SOURCE: The Business Recorder
The free trade pact between South Korea and the European Union (EU) has benefited both sides since its implementation in 2011, said a European Union envoy to Seoul on Thursday. “The EU-Korea FTA, the EU’s first FTA with an Asian country, has marked an unprecedented step forward in trade relations between the EU and the Republic of Korea (South Korea),” EU Ambassador Gerhard Sabathil said in an opening speech of a forum to celebrate the 5th anniversary of the FTA, noting that the deal has been a big success for both sides. After negotiations over more than two years, both sides signed the deal in 2010. The trade deal took effect in July 2011, allowing South Korean firms to tap deeper into the world’s single largest economic bloc. “It is gratifying to see the benefits for both sides, five years after the agreement became operational,” he said.
Bilateral trade between South Korea and the EU has constantly grown and reached a record level of over 90 billion euros in 2015, the Delegation of the European Union to the Republic of Korea said, further forecasting that it would expand by as much as 20 percent in the long term. Jyrki Tapani Katainen, the European Commission vice-president for Jobs, Growth, Investment and Competitiveness, also said bilateral trade jumped in an unprecedented way. “We have achieved a lot with an agreement… I am confident we will achieve more,” the former prime minister of Finland said. According to data by delegation, shipments by local firms to the EU member states jumped 32 percent following the implementation. South Korea was the EU’s eighth largest source of imports and the ninth largest export market, while the EU was the second largest import supplier and third largest export market for South Korea, the data showed. Under the deal, Seoul and Brussels agreed to abolish tariffs on most industrial goods within five years of the deal taking effect.
SOURCE: The Korea Times
Earlier this month, Veronika Nikishina, the trade minister for the Eurasian Economic Commission Board, declared that the free trade agreement (FTA) signed between the Eurasian Economic Union (EEU) – which comprises Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan – and Vietnam will come into effect on 5 October 2016. She was speaking at the sidelines of the second Eastern Economic Forum held in Russia’s Vladivostok, from 2-3 September 2016. This formal declaration signals the EEU’s burgeoning interest to further economic ties with Asia-Pacific, in particular, ASEAN. Under the terms of the agreement, the EEU will abolish import duties on 88 percent of goods with immediate effect. The remaining tariffs will be gradually reduced within 10 years. Goods that will enjoy tariff-free access to consumer markets within the Eurasian Union include agriculture produce, processed food, metals and construction materials. In the spirit of reciprocity, Vietnam will eventually eliminate import duties on 91 percent of goods originating from the EEU. Products such as meat, dairy products, tinned fish, flour, cereals, mechanical equipment, petroleum products and steel will enjoy zero-tariffs. Automobile industry companies will also be given exclusive access to the Vietnamese market. This historic FTA bears much significance for Vietnam and the region. Touted as the next manufacturing hub of the world, the FTA will provide Vietnam-based manufacturers with access to a host of essential resources such as oil, gas, iron and steel, further augmenting Vietnam’s position as an emerging manufacturing powerhouse. The agreement will also open Vietnam to a market of 175 million people, with an estimated GDP of $2.5 trillion.
Likewise, member states of the EEU look set to benefit from the FTA by using Vietnam as a gateway into the promising ASEAN market. As the largest market in the bloc, Russia stands to gain the most from this agreement. Moscow and Hanoi have signed an agreement to produce Russian cars in Vietnam. These made-in-Vietnam Russian cars will enjoy tariff-free access to the rest of ASEAN as part of the free trade area between member states.
Looking beyond Vietnam, the Eurasian Economic Union has set its sights on expanding ties with other ASEAN member states. In particular, Singapore and the EEU will conduct a joint feasibility study on a free trade deal. Earlier this year, Singapore’s Minister of State for Trade and Industry Mr Koh Poh Koon visited all five states to identify possible opportunities for economic collaboration. Cambodia and Thailand are also reportedly in talks to deepen trade relations with the EEU. If successful, the FTAs will bring significant opportunities to a fast growing economic region.
SOURCE: The Diplomat
