The Government has set up a task force under the Department of Commerce to identify, categorise and develop tailored strategies for the resolution of non-tariff barriers, the Parliament was informed on Feb 5. Such barriers include prior registration requirements in the exporting country, cumbersome testing and certification requirements and unreasonable domestic standards/rules. Different countries enforce various regulatory measures to ensure the safety and quality of the products placed in their territory. These measures apply equally to domestic manufacturers and importers. However, such measures may sometimes act as trade barriers due to various reasons like gaps in the regulatory frameworks and quality compliance requirements of the trade partners, lack of transparency, arbitrariness or differing interpretation of the rules, and improper implementation.
"Taking cognizance of the challenges involved in mapping the trade barriers, and to give increased focus, a task force has been set up under Department of Commerce, to identify, categorise and develop tailored strategies for resolution of these identified non-tariff barriers," Commerce and Industry Minister Piyush Goyal said in a written reply to the Lok Sabha. The resolution of trade barriers, including ensuring increased and effective market access, is a continuous process and endeavour. He said India also engages in regulatory cooperation to help ensure that global rules governing the regulatory structures are favourable and consistent.
Trading with Pakistan
Replying to another question on trade with Pakistan, the Minister said that in August 2019, Pakistan took a number of measures to downgrade the bilateral relations with India."One of the decisions was to unilaterally suspend the bilateral trade with India. However, export of only therapeutic products has been allowed," Mr. Goyal said, adding that normally, the Atari-Wagah border and Karachi Port are the two major trade routes between the countries. "The onus of resumption of bilateral trade lies with the Government of Pakistan," he noted.
Source: The Hindu
The government on Wednesday said some amount of trade with Pakistan is being conducted through land and sea routes but all business through the land border has been stopped by the neighbouring country “unilaterally”. Union Minister of State for Commerce and Industry Anupriya Patel also said in Lok Sabha that it is the responsibility of Pakistan to allow transit of Indian goods to Central Asian countries through its territory. Patel said earlier whatever trade had happened, everything was done through AttariWagah border and through Karachi port. “Now, no trade is being done through land route. But some trade is being done through sea and air,” she said. The minister said this trade through sea and air routes with Pakistan is being done through the Jawaharlal Nehru Port Trust, Inland Container Depot, Tughlakabad, Mundra SEZ, Air Cargo Complex Mumbaiand Air Cargo Complex Hyderabad among others. Replying to a question on the possibility of trade with Central Asian countries, she said: “We have not stopped trade with Pakistan. With regard to trade with Central Asia, any of our trade transaction arrangement has to be through Pakistan. So, it is the responsibility of Pakistan to open the trade route”. Patel said the suspension of trade was “imposed unilaterally” by Pakistan, not by India. “So responsibility lies with Pakistan as transit will have to take place through their territory,” she said. In 2019, Pakistan suspended bilateral trade with India and expelled its High Commissioner in Islamabad after New Delhi abrogated Article 370 that granted special status to Jammu and Kashmir. India has been maintaining that it desires normal neighbourly relations with Pakistan while insisting that the onus is on Islamabad to create an environment that is free from terror and hostility for such an engagement.
Source: Indian Express
Synopsis Developing nations require nearly USD 6 trillion by 2030 to tackle climate change, according to Mukhtar Babayev, the president of the upcoming UN climate conference. Azerbaijan, the host country, plans to urge nations to make concrete commitments at COP29, including doubling adaptation finance by 2025. Babayev emphasized innovative financing mechanisms and the need for accountability. COP29 aims to triple global renewable energy capacity and double energy efficiency by 2030, with a focus on climate finance to support developing nations in emission reduction and climate resilience. The president of the next annual UN climate conference, Mukhtar Babayev, on Wednesday said that developing nations need nearly USD 6 trillion by 2030 to combat and adjust to climate change. The Azerbaijani environment minister also said that the host country will encourage nations to make concrete commitments at COP29, especially to double adaptation finance by 2025. He said that Azerbaijan is committed to reinforcing climate finance, with a particular emphasis on supporting developing countries, keeping in mind their needs "which approach nearly USD 6 trillion by 2030". In an online address to a summit by The Energy and Resources Institute, Babayev said Azerbaijan will promote innovative financing mechanisms, including new private-public sector partnerships. This is important to ensure accountability and real progress, he noted. COP29 will also focus on building a clear and actionable roadmap to triple global renewable energy capacity and double the energy efficiency rate by 2030, he said. Climate finance will be the main focus of COP29 where nations have to set a new post-2025 target for raising funds to help developing nations cut emissions and handle the impacts of climate change. This is tough because rich nations have repeatedly failed in meeting their 2009 promise to raise USD 100 billion annually by 2020 to support developing countries. Simon Stiell, the Executive Secretary of the UN Framework Convention on Climate Change, said in the Azerbaijani capital Baku last week that the world would need at least USD 2.4 trillion to keep within reach the target of limiting global warming to 1.5 degrees Celsius. The G20 bloc last year said that developing countries will need USD 5.9 trillion in the pre-2030 period to implement their national climate plans effectively, with the aim of holding global warming to well below 2 degrees Celsius, preferably 1.5 degrees Celsius. Earth's global surface temperature has risen by around 1.15 degrees Celsius as compared to pre-industrial levels (1850-1900), and the CO2 spewed into the atmosphere, largely due to the burning of fossil fuels since the start of the Industrial Revolution, is closely tied to it. Climate science says the world needs to slash CO2 emissions by 43 per cent by 2030 to limit the average temperature rise to 1.5 degrees Celsius, the guardrail to prevent worsening of climate impacts. The business-as-usual scenario will take the world to a temperature rise of around 3 degrees Celsius by the end of the century, scientists have warned.
Source: Economic Times
Synopsis India will monitor flows of foreign funds after its inclusion into JPMorgan's emerging market debt index to prevent 'hot money' and volatility in currency and bond markets. The government's concern is with longer-term investors who exit passively without reflecting economic conditions. India plans to raise nearly 200 billion rupees through sovereign green bonds in the 2024/25 fiscal year, maintaining a similar level as last year India will monitor flows of foreign funds after its inclusion into JPMorgan's emerging market debt index and will take steps to avoid 'hot money' that can trigger volatility in its currency and bond markets, a senior government official said. "We will keep monitoring it. And when necessary, steps will be taken," T.V. Somanathan, a senior finance ministry official told Reuters in an interview. The aim will be to "prevent volatility or volatile inflows" but "never" to restrict outflows, he said, adding that "all possibilities are open to keep volatility in check. However, any talk about measures right now is "hypothetical", said Somanathan. Last year, JPMorgan announced it will include some Indian bonds in the Government Bond Index-Emerging Markets and its index suite from June, which could lead to incremental inflows of around $23 billion. Foreign investment in Indian government bonds jumped in the last three months, when investors bought securities worth 446 billion Indian rupees ($5.37 billion). Somanathan said the government's main concern with index investors was that some of these longer-term investors "come in passively and leave passively" and their exit does not always reflect the economic conditions on the ground. Asked about the government's borrowing, Somanathan said New Delhi was likely to raise nearly 200 billion rupees through sovereign green bonds in the 2024/25 fiscal year. "Within that total borrowing program, some component is likely to be green bonds. Likely to be around the same level as last year but a final decision has not been taken," he said. India issued sovereign green bonds for the first time in the previous financial year. Last week, the government unexpectedly lowered its gross borrowing target for next financial year to 14.13 trillion rupees ($170.36 billion) and set fiscal deficit aim of 5.1% of gross domestic product.
Source: Economic Times
Synopsis India is nearing the completion of a ground-breaking trade agreement that may result in several European nations investing up to $100 billion over a span of 15 years. The European Free Trade Association, consisting of Switzerland, Norway, Iceland, and Liechtenstein, has pledged to make investments in India as part of a trade deal currently in the advanced stages of negotiation, according to the sources, who preferred not to be identified as the discussions are ongoing. India is close to finalizing a first-of-itskind trade deal that could see a small group of European nations invest as much as $100 billion over 15 years in exchange for easier trade access to the world’s most populous nation, according to people with knowledge of the matter. The European Free Trade Association, which comprises Switzerland, Norway, Iceland and Liechtenstein, made a commitment to invest in India as part of a trade pact that’s in the final stages of negotiations, the people said, asking not to be identified as the talks are still ongoing. The contours of the deal have been agreed and deliberations currently center on the final investment amount, which could be as much as $100 billion over 15 years, some of the people said. While India wants the commitment to be legally binding, one of the European officials said the amount will likely be framed as a goal, with no legal means to claim it included in the language of the agreement. If finalized, it would mark the first time an investment commitment of this nature is secured by India as part of a free trade agreement. Switzerland’s Economy Minister Guy Parmelin said last month that the outline of a deal had been agreed upon, without giving details. Legal clarifications are currently being rushed so the deal can be signed before India holds elections likely from April, a European official with knowledge of the matter said. India’s commerce ministry didn’t immediately respond when contacted by Bloomberg News. The Swiss economy ministry said in a statement that the text of the agreement is “still to be finalized and both parties have agreed not to disclose the details at this stage.” The main points where agreement has been reached include “patent protection, which was controversial in the past, as well as a new type of investment promotion chapter,” it said. Norway’s government declined to comment on the terms of the deal. Trade Bloc Switzerland is by far India’s largest commercial partner among the members of the EFTA bloc, which comprises European nations which are not members of the European Union. Swiss two-way trade with India amounted to $17.14 billion in the 2022-23 fiscal year, out of $18.66 billion with the whole group. For EFTA countries, the agreement — which has been 16 years in the making — will allow manufacturers to export processed food and beverages, electrical machinery, and other engineering products at reduced tariffs to a potential market of 1.4 billion people. The deal is also likely to benefit the pharmaceutical and medical devices industry of the bloc. India is attracting investor interest from several countries as businesses look to diversify their supply chains from China and seek new growth markets. India expects growth of about 7% in the fiscal year beginning in April, making it one of the fastest-expanding major economies in the world. The United Arab Emirates is also considering investing as much as $50 billion in India. The investment in India from EFTA countries would mostly come from private businesses and state-sponsored vehicles and would be targeted toward existing and new manufacturing projects, according to people familiar with the discussions. The investment will see more than 1 million jobs created in India, one of the people said. The deal would also ensure easier movement of Indian professionals to the bloc and market access for some agricultural products, the people said. While Switzerland — the biggest economy in the EFTA bloc — is usually very protective of its farmers, easier market access for Indian rice could be acceptable since Switzerland only produces marginal quantities itself, a person familiar with the negotiations said.
Source: Economic Times
The MC13 is scheduled in Abu Dhabi on February 26-29. India’s delegation will be led by Commerce & Industry Minister Piyush Goyal. While labour issues are not being urgently pushed by developed country members for inclusion in the WTO agenda, India has been maintaining a firm stance on it. “Issues like environment and labour are non-trade issues. There are specialised UN agencies, and also the UNFCCC, which discuss these matters. These are non-negotiable at WTO. We are sticking to that stand,” another official said. There are informal working groups on MSMEs, trade & gender, and trade & environment sustainability where talks are taking place on a pulrilateral (involving part of WTO membership) basis. “India is very clear that it will not agree to formal work programmes in the non-trade areas. Even if there are discussions that take place on sustainable development, we can’t allow India’s rights and obligations at the WTO to be impacted,” the second official said.
External stakeholders
Inclusion of external stakeholders, such as civil society organisations and other international organisations, in discussions on policy making at the WTO is also something that India is fiercely opposing. “Decision making at the WTO is solely to be driven by members. Diluting this by involving external stakeholders cannot be allowed,” the official added. Last year, India and South Africa submitted a paper at the WTO on ‘Concerns on emerging trend of using environmental measures as protectionist non-tariff measures’. The paper raised concerns on the increasing use of unilateral measures, such as EU’s carbon tax (CBAM) and deforestation law which impact trade but are justified as environmental measures. Such unilateral actions undermine multilaterally negotiated rights and obligations of countries, it said.
Source: Business Line
A Parliamentary Committee has recommended framing a comprehensive National Textile Policy to make the Indian textile industry globally competitive and also called for "expeditious resolution" for the revival of sick textile units. The Committee made these observations in a report on Estimates (2023-24) on "Empowerment Through PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks Scheme and Revival Efforts For Sick Textile Units/PSUs Pertaining to Ministry of Textiles. The report was tabled in the Lok Sabha on Wednesday. "The Committee, having taken note of the fact that the successful implementation of PM MITRA PARK Scheme to a large extent depend on aligning the industry-oriented and pro-active State Textile Policies/ schemes with National Textile Policy, have urged the Ministry to frame a comprehensive National Textile Policy, with a view to make Indian textile Industry globally competitive by incorporating the best international practices and industry oriented pro-active aspects of state Textile Policies/Schemes," the report stated. Highlighting the need for expeditious resolution for revival of sick textile units, the panel recommended the Ministry to prepare an action plan for a time-bound resolution of issues related to each sick textile units across the country by involving all stakeholders. Further, the Committee have also desired that once Government has obtained the dispute free title of the properties of sick textile undertakings/units, which are non-operational, revival efforts should be undertaken through private investment including establishment of PM MITRA PARKS. Pressing upon the need to take over control/possession of Champaran Sugar Company Ltd. (CSCL) and taking a serious view of the delay in taking control/ possession of CSCL, the Committee have urged the Ministry to assess and pay dues to all secured and un-secured creditors and Official Liquidator and to take over control/possession of CSCL with the permission of concerned Court. The panel have also desired the Ministry to consider the huge land mass of Barachakia and Chanpatia Units of CSCL for the development of a PM MITRA/Mini Textile Park without further loss of time.
Source : News Drum
Indore: Agro and textile products of identified under the One District One Product (ODOP) scheme have expanded its reach to Middle East countries and Bangladesh, prompting govt to tap unexplored markets to boost exports from the state. Saudi Arabia, United Arab Emirates and other Middle East countries were the top importers of agriculture and agro processed products from Madhya Pradesh, while Bangladesh is the top buyer for textile, according to directorate general of foreign trade (DGFT), Madhya Pradesh. “The reach of ODOP products mainly agriculture and textiles from the state has expanded to multiple countries and this may grow further as the setting up of rice mills in the Eastern part of MP is expected to give a boost to manufacturing and exports of agricultural products,” said DGFT state joint director Suvidh Shah. Shah said, rice is among the top exportable items from MP in the agriculture segment There are 38 ODOP items that get exported from MP. With the addition of new districts in the state, a few more products are likely to be added in the ODOP category. In the financial year 2022-23, banana exports (fresh and dried) from MP was Rs 12 crore, chilli powder exports were Rs 26 crore, coriander seeds Rs 40 crore and potato Rs 38 crore among other products, according to the official data from DGFT. Exports of home textile products manufactured in the state like floor coverings, carpets, towels and bed sheets have grown especially in Europe, Japan and Australia, according to exporters and handloom department. Total exports from Madhya Pradesh in FY 2022-23 were Rs 65,878 crore, up 13 per cent from a year ago. More than 5000 items are exported from MP like pharmaceuticals, cereals, machinery, cotton, textiles, plastic articles, automobiles, edible vegetables and among others.
Source: Times of India
China has extended anti-dumping duties on imports of o-chloro-p-nitroaniline originating in India for another five years. China first imposed the duties for five years as of February 12, 2018 at rates of 31.4-49.9 per cent. According to the MOFCOM website, from 1995 to 2023, India initiated 336 anti-dumping investigations against China. Beijing, China has said that it will retain the anti-dumping duties on imports of o-chloro-p-nitroaniline originating in India for another five years. According to a Ministry of Commerce (MOFCOM) announcement here on Monday, the duties will be extended for another five years starting from February 13. China first imposed the duties for five years as of February 12, 2018 at rates of 31.4-49.9 per cent. MOFCOM's investigations found that India has strong production capacity in this yellow crystalline powder, which is mainly used in dyes, and that there is serious overcapacity, with two-thirds of it relying on exports to overseas markets, state-run Global Times reported. Between 2018 and September 2022, India still exported the products to China by dumping, accounting for all of China's imports of o-chloro-p-nitroaniline, which had left Chinese enterprises in a state of unstable production and operation, and susceptible to the impact and influence of dumped imported products, the Ministry said. India has the most anti-dumping investigations against China, the report said. According to the MOFCOM website, from 1995 to 2023, India initiated 336 anti-dumping investigations against China. In late September last year, within 10 days, India launched 13 anti-dumping investigations against China, while China has launched 12 anti-dumping investigations against India, from 1995 to 2023 mainly in the chemical field, the report said. India-China trade continues to remain high despite bilateral tensions over the eastern Ladakh military standoff as the total trade last year climbed to a record USD 136.2 billion last year with India's trade deficit mounting to USD 99.2 billion, a tad lower than last year. China's exports to India stood at USD 117.7 billion, a bit lower compared to USD 118.5 billion last year, according to the annual trade data covering the period from January to December 2023 released by Chinese customs last month. The trade deficit, a major concern of India for years, stood at USD 99.2 billion in 2023. In 2022 the trade deficit scaled to over USD 101 billion for the first time crossing USD 100 billion
Source: Economic Times
The ministry of finance and UNIDO have inked a $28 million deal to bolster Ethiopia's textile and garments industry. State minister of finance Semereta Sewasew and UNIDO country representatives The project will champion a circular economy in textiles by introducing resource-efficient technologies, as outlined by the finance ministry. The Ethiopian Textile Industries Development Institute will spearhead the implementation, aiming to bolster regulatory and institutional capacity in the sector.During the signing ceremony, Semereta highlighted the government's strides in boosting the manufacturing sector and reducing imports. She expressed gratitude for UNIDO's ongoing support in Ethiopia's industrialisation journey. UNIDO's commitment to capacity building and technical assistance in Ethiopia's industrial development remains steadfast. The organisation has prioritised support for the textile, leather, and agro processing manufacturing sectors, aligning with Ethiopia's industrial goals.
Source: Fibre2fashion
In the past three years, we have collaborated with researchers, recycling specialists, behavioural experts, and other textile and fashion companies in the ReSuit project, Denmark’s first major textile recycling project. ReSuit has aimed to develop new technologies that can transform textile waste into new fabrics and set new standards for fashion design, focusing on longer lifespan and improved recyclability when discarded. Now, the project team is ready to share additional positive findings.
Two technologies
ReSuit has, among other things, proven that polyester textile waste can be recycled into new polyester textiles. Furthermore, the project has succeeded in recycling clothing waste that was previously considered difficult to recycle by using a special method where the clothing is transformed into bio-oil and chemical building blocks for the production of new polyester and plastic-based materials.
“At Bestseller, we are fully aware of the challenges in the fashion industry, but we also have the size and expertise to be part of the solution. That’s why we entered ReSuit with open eyes and an understanding that innovation plays a crucial role in transforming the fashion industry into a more sustainable one,” says Camilla Skjønning Jørgensen, Innovation Manager at Bestseller. “Innovation is best when it collaborates with other actors. Therefore, ReSuit is a unique project that takes a holistic approach to the problem by considering all stages of the clothing lifecycle—from design to usage and recycling. This focus on the entire process is crucial for creating a more sustainable future in the fashion industry,” says Camilla Skjønning. The ReSuit consortium includes Aarhus University, Fraunhofer-Gesellschaft, Crossbridge Energy A/S, Elis Denmark, Behave Green, Danish Technological Institute, and Design School Kolding. It is supported by Innovation Fund Denmark.
ReSuit findings and outcomes
Source: Recycling Magazine
Faced with persistent gas shortages and erratic exchange rates, numerous textile mill owners in distress are resorting to selling their factories due to escalating losses attributed to dwindling production. Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), disclosed that spinning, dyeing, weaving, finishing, and printing millers are actively seeking buyers. Speaking to the media, he said, to date, representatives from ten mills have approached the president to start the sale of their establishments, albeit maintaining anonymity due to existing bank loans. The compounding effects of the gas crisis, volatile exchange rates, surging bank interest rates, and escalating production costs have prompted a surge in millers—particularly small and medium enterprises—looking to offload their operations, citing concerns over competitiveness within the textile sector. This trend emerges amidst a challenging period for the primary textile industry, grappling with decreased demand for garment items amidst inflationary pressures in western markets. The confluence of factors led to a dearth of investments in the sector last year, despite its pivotal role in Bangladesh's garment industry, the second largest globally and a primary source of foreign exchange. The gas crisis, which began several years ago, has worsened in recent months, with mills experiencing severely diminished gas pressure, averaging between zero and 2 PSI, through pipelines. Consequently, mill operations are curtailed to an average capacity of 40 per cent.
Source: Fibre2fashion
