INTERNATIONAL
Textile Raw Material Price 2016-11-22
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1058.79 |
USD/Ton |
-0.14% |
11/22/2016 |
|
VSF |
2208.96 |
USD/Ton |
0.07% |
11/22/2016 |
|
ASF |
1856.51 |
USD/Ton |
0.00% |
11/22/2016 |
|
Polyester POY |
1116.81 |
USD/Ton |
0.00% |
11/22/2016 |
|
Nylon FDY |
2465.68 |
USD/Ton |
1.19% |
11/22/2016 |
|
40D Spandex |
4278.68 |
USD/Ton |
0.00% |
11/22/2016 |
|
Nylon DTY |
5468.01 |
USD/Ton |
0.00% |
11/22/2016 |
|
Viscose Long Filament |
1334.37 |
USD/Ton |
0.00% |
11/22/2016 |
|
Polyester DTY |
2277.13 |
USD/Ton |
1.29% |
11/22/2016 |
|
Nylon POY |
2030.56 |
USD/Ton |
0.00% |
11/22/2016 |
|
Acrylic Top 3D |
1370.63 |
USD/Ton |
0.53% |
11/22/2016 |
|
Polyester FDY |
2625.22 |
USD/Ton |
0.56% |
11/22/2016 |
|
30S Spun Rayon Yarn |
2857.29 |
USD/Ton |
0.00% |
11/22/2016 |
|
32S Polyester Yarn |
1711.47 |
USD/Ton |
-0.34% |
11/22/2016 |
|
45S T/C Yarn |
2552.7 |
USD/Ton |
0.00% |
11/22/2016 |
|
45S Polyester Yarn |
3002.33 |
USD/Ton |
0.00% |
11/22/2016 |
|
T/C Yarn 65/35 32S |
2233.62 |
USD/Ton |
0.00% |
11/22/2016 |
|
40S Rayon Yarn |
1842.01 |
USD/Ton |
0.00% |
11/22/2016 |
|
T/R Yarn 65/35 32S |
2190.1 |
USD/Ton |
0.00% |
11/22/2016 |
|
10S Denim Fabric |
1.33147 |
USD/Meter |
0.00% |
11/22/2016 |
|
32S Twill Fabric |
0.81948 |
USD/Meter |
0.00% |
11/22/2016 |
|
40S Combed Poplin |
1.15162 |
USD/Meter |
0.00% |
11/22/2016 |
|
30S Rayon Fabric |
0.65558 |
USD/Meter |
0.00% |
11/22/2016 |
|
45S T/C Fabric |
0.63673 |
USD/Meter |
0.00% |
11/22/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14504 USD dtd 22/11/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The textile industry of Surat, which has a turnover of thousands of crores, has been paralysed after the Centre domonetised Rs 500 and Rs 1,000 notes. Thousands of workers are being laid off as powerloom firms find it hard to function amid the cash crunch. Arvind Yadav (40), a powerloom machine operator, returned to Surat from his native place in Bihar on Thursday, only to hear from the powerloom factory owner that he should go back home “and wait for a few more days as there is no demand of the grey cloth in the dyeing houses due to the present situation”. The factory owner also told him that they had reduced the work force in the factory, located in Govindnagar area at Limbayat, Surat. Yadav, who has three minor children, was shocked to hear this, but he continued to stay on living on the savings in the hope that things would be fine in a few days.
Yadav is not alone. Vishnu Tiwari (30), a native of Uttar Pradesh who works in a dyeing and printing factory at Pandesara GIDC, returned to Surat with his family recently, but had to go back to his hometown. The labour contractor who employed him told him that out of six printing machines in the factory, only four were running. The factory owners also told him that they faced problems in giving salaries as there was no demand from textile traders. The traders give the work of printing sarees and dress materials to dyeing and printing factories. It is estimated that the layoffs in textile units could be up to 40 percent.
Powerloom worker Radheyshyam Prasad (35), who also belongs to UP and lives in Limbayat area of Surat, said, “My monthly salary is Rs 16,000 and we take it in two instalments. My two children study in a municipal school and I have to pay a rent of Rs 1,000 to the landlord. The remaining amount is spent on food and other needs and whatever is left is saved. After Diwali vacations, we only brought Rs 2,000 cash from home. My meals have reduced to chapatis with green chilly and onions. We are living in the hope that some day things will get better.” Surat textile industry has at least 10 lakh people directly and indirectly associated with it. As per the data from the Southern Gujarat Chamber of Commerce and Industry, Federation of Surat Textile Traders Association, Federation of South Gujarat Textile Processing Association and Federation of Surat Weavers Association, there are over 4 lakh powerloom machines in Surat city, with 450 processing houses and over 65,000 textile trading shops in 165 textile markets.
Besides, there are other labourers engaged in the transport and packaging sectors. The majority of workforce in the textile industry are migrants from Uttar Pradesh, Bihar, Orissa, Andhra Pradesh, Maharashtra, Rajasthan, etc. Anil Patel, a powerloom factory owner in Govindnagar area, has 24 power loom machine setup. Earlier, there were 16 workers working in his firm, but now he has nine. The rest were asked to leave, given the liquidity crunch in the market. Patel told The Indian Express, “Due to demonetisation, the condition of workers and factory owners are the same. At present, we are running only day shifts (7 am to 7 pm), while night shift is closed. I have only retained those workers whose service period is seven years or more. Those who worked for less than that have been asked to quit. We are facing cash crunch and there is no demand of grey cloth in the market. We have made two day shifts each of six hours and have adjusted all the nine workers in it. We also feel sorry for the laid-off workers, but what can be done? We are facing liquidity problem and cannot encash much from the banks.”
Kaisarali Peerzada, a powerloom owner, said, “We have little cash in change with us which we got after standing in long queues. In the powerloom industry, salaries are paid twice – on the seventh and 25th of every month. The workers had taken salary till Diwali and gone to their native places and have now returned with little cash. We are also worried as the month draws to an end. We have assured workers that something would be done. The workers are taking Rs 100 -200 daily from us for their expenses.”
Federation of South Gujarat Textile Processing Association president Jitu Vakhariya said, “We are somehow surviving. The textile processing units consist of dyeing, printing and parcel departments. We are controlling the production and the units are surviving with old job works. The unit remains open for four days in a week these days. The workers’ strength has been reduced as only few machines are operational. We don’t get orders from the textile traders.” He reiterates that the production has gone down by about 70 per cent in the wake of the cash crunch. There is no demand of cloth by textile traders. An average textile processing house employs a work force of around 700 to 800 workers. The processing houses started after November 9, following Dev Diwali, after the Diwali vacations, on October 30. Says Vakhariya, “The owner keeps some cash on hand to overcome daily expenses, like machine repairs, and the purchase of raw materials. But now we are not getting enough money from the bank. The labour contractors are supporting us a lot and we have promised them that we will pay them when things get better. However, now workers’ wages have also gone down due to the shutdown.”
Baijnath Pandey, a textile processing (dyeing and printing) worker, works in the printing department in a processing unit. From UP, he shares a room in Surat with other migrant workers. He returned from his native place after the factory reopened on November 10, but was asked to go back. “I and a few others have been refused work by the labour contractor. I have just returned from my native place and I don’t have cash. I searched for the job, but nobody wants to hire at this point. I have my meals at a hotel where I have a credit account and I have told him that I will repay it as the money comes. I have decided to go back home and come back when things get better. There is no way out for survival in Surat,” says Pandey.
Federation of Surat Textile Traders Association President Sanjay Agrawal says, “We were hoping to get good business in November and December, during Pongal and the marriage season. Due to cash crunch, people are not ready to spend money on clothes.” The textile goods transporters in the city share the same fate. They carry hundreds and thousands of parcels in the trucks and deliver them to other states. The textile goods transport sector is also badly affected as majority of trucks are not plying.
SOURCE: The Indian Express
‘Unique’ is an overwrought word, sprinkled liberally to add a beatific halo to things we’re desperate to pluck out of the mundane. Sometimes, though, it applies perfectly; it may even sound a little inadequate. Like when we’re describing Indian textiles—the rich brocades of Benares, wrapped in butter paper, gracing many a trousseau, comprising many an heirloom; the ikats of Patan, Pochampally and Sambalpur across the west and east that confound and astonish in equal measure; the saris of Venkatagiri, where luminescent, rich zari marries cotton that looks too fragile to carry it; the Balucharis of West Bengal that have entire scenes from the Mahabharata and the Ramayana woven on the pallu. Few nations have a legacy of handwoven textiles as rich as our own. That, however, is only half the story. The Indian textile industry is a multi-pronged machine, directly employing more than 45 million people, covering handlooms, handicrafts and powerlooms, cotton, silk and jute, the domestic market and exports, ancient know-how and new technology. There are the poetic aspects, and the thousands of seemingly mundane things that power them.
Smriti Zubin Irani, who took over as Minister of Textiles following a Cabinet reshuffle this July, has her work cut out. Powerlooms are phasing out weavers, traditional textile crafts are in danger of dying out, yarn prices are going up, and the market looks more inclined towards speed and quantity than the intricacy of warp and weft. Irani, though, is jumping into the deep end. She heads a ministry where new announcements aren’t likely to make screaming head- lines the way they did at her erstwhile HRD Ministry. But all eyes are on her. She speaks to Vogue about her plans for the industry, the power of a hashtag, and why the looms won’t fall silent yet.
It’s been just a few months since you took over as Minister of Textiles. Among the issues you are looking at addressing, what ranks high on your list right now?
One of my biggest concerns was that in terms of the world market, the space that we occupy in handlooms and handicraft is quite small in relation to the diversity of products and the legacy we have to offer. The Ministry of Textiles caters to a composite structure, from yarn to fabric. The government has announced a Rs 6,000-crore package for the garment sector, and we recognise this is a sector that has tremendous potential to generate employment. But the beauty of the sector is that our handloom fabrics are unique to our country. My endeavour is to enlist the services of designers, seek exquisite craftspeople, and through their design intervention look at propagating old classics both nationally and internationally. Here lies an opportunity in product diversification. These are the issues I want to address right at the beginning of my tenure.
The #IWearHandloom campaign that you launched this August went viral on social media, garnering 22 million impressions on Twitter alone, with everyone from Virender Sehwag to Sunil Sethi to Manish Malhotra tagging themselves. Did you envisage that it would become so popular?
It was a very small attempt on our end to reach out and integrate a people’s movement with the handloom sector. There has to be a sense of ownership and pride that comes from a handwoven cloth. People think this isn’t something the youth would connect to. But what better way to connect them to a part of our history, our heritage, than a hashtag? I think many individuals and organisations joined us because they saw an opportunity in combining forces with the government’s initiative and ultimately witness a resurgence in the pride one takes in the handwoven cloth. And I’m very grateful that designers and organisations across the board—even organisations that are normally competing against each other—came on board and supported this. I remember being in a meeting with three youngsters, all aged below 30, and asking them how they would connect [with the campaign], and it was these three kids who told me how they would like to see this happen. The impact of the campaign was that we could reach out to our last-mile stakeholder.
In a column in the Indian Express this July, Jaya Jaitly spoke about how the thrust of the Textile Ministry’s policies went from providing employment to producing cheaper cloth for the masses in the mid-’80s. What, according to you, is the need of the hour?
I think we have a great opportunity to use the digital market to connect every single weaver to a consumer who appreciates the art behind his craft. There are consumers who want to support the art but might not be able to afford it. So the idea is to support both segments. Hats off to people like Jaya Jaitly, who, in the absence of a digital platform, managed to help preserve a lot of the craft, managed to keep weavers across the country upbeat about their prospects, because that, in itself, is a huge task. The ultimate aim is to ensure the weaver feels empowered and enjoys the attention that his craft is getting. Till that doesn’t happen, you won’t see the weaver pass on his craft to the next generation.
Our aim is to also engage through the many Weavers Service Centres and the IGNOU and NIOS and facilitate the education of the children of weavers. At a time when soft skills assume such importance, we are grateful that we could partner with the Ministry of Skill Development and Entrepreneurship. My endeavour is to ensure that the weavers get raw material from the service centres—raw material that complements their craft. We don’t want a similar template of raw material rolling out across the country because the handloom fabric or weave of one area is unique to the raw material found in that area. I also want to ensure that weavers have a choice in terms of looms. The government will pick up 90 per cent of the cost of the loom. These are the kind of details I’d like to go into.
Prime Minister Narendra Modi launched the India Handloom Brand (IHB) last year, where a garment bearing the label fulfils certain quality as well as environmental and social parameters, such as being child-labour-free. How do you plan to integrate the IHB with the industry?
The brand needs a huge push, as has been envisioned by the Honourable Prime Minister. In one year we’ve managed to register around 60 organic dyes and colours. I think the challenge is that currently the IHB is not intertwined with the whole market in terms of the fashion seasons and the output we see from designers. Though designers take pains to reach out to us, my endeavour is to know the kind of work that is being done under the India Handloom Brand so that there is access to organic colours, dyes and master craftspeople. As long as the master craftsmen and the weavers get paid directly by the designers, we are keen to facilitate that direct engagement.
Apart from that, young designers need to be promoted. I’m more than happy to do that through the IHB. A lot of senior, eminent designers are ready to come forward to hand-hold such an endeavour.
I think the only challenge is to ensure it doesn’t sting the pockets of the middle-income group. There is an endeavour to service a market that is niche in itself and values a niche product that is copyrighted to a particular weaver or a particular cluster or group of weavers. I’d like to ensure that these aspects of copyrighting designs are also wide-spread amongst the weaving community.
Describe your personal relationship with textiles.
I don’t have a particular sense of design or texture when it comes to my own wardrobe. I am a haphazard human being. But I do recognise quality. In the presentations that I see, I see a lot of quality work coming from a lot of people. You develop a kind of respect for the sheer detailing that a designer incorporates. I know a lot of people who keep at it till they get the kind of weave they’re looking for. Look at Anavila Misra! It is this pursuit of excellence in a craft that is much needed, and what’s heartening is that it’s the youngsters who are doing it. The fact that they understand the legacy that they are propagating, the fact that they recognise the brand value of it internationally, the fact that they themselves take such pains in getting into the detailing to ensure such quality—I think that is what will take the handloom sector way beyond expectations. Nobody was talking about it; now suddenly I see 18-page spreads everywhere, which is wonderful.
With handloom fabric becoming more and more of a niche product, how do you plan to propagate it in the mass market?
I think the retail sector has a huge role to play there. I’ve been in conversations with representatives of retailers like Shoppers Stop, Westside, Biba and Globus, and they are more than willing to engage with weavers directly. However, because they are bigger retail establishments, they’re looking at a huge quantity and their concern was the quality of the cloth, and that is a concern that with IHB we are trying to address.
Customer education is also something we need to put an effort into. We have to be very cautious that when people want to support handloom they don’t end up picking up a powerloom fabric thinking it’s handloom. Having said that, with several retail spaces and designers eager to raise this wave of public support for handloom fabric, I think it’s achhe din for handlooms.
What plans do you have for the National Institute of Fashion Technology (NIFT)?
I’m looking at re-hauling the entire NIFT institutional chain from a designer perspective. I’m in conversation with NIFT alumni and designers who have served the design community well. The government is doing a performance audit of NIFT; this would tell me where the lacunae lie. But I understand that bureaucrats and politicians cannot tell you how to design. So there has to be some space left for designers, those who understand technique and love the craft, to come and engage with students.
Do you believe that increasingly traditional hand- woven fabric is receding from the daily lives of the youth and becoming more of ceremonial wear?
I think youngsters embrace their history and their heritage. I don’t see them running away from it if you provide them an opportunity. When I was at HRD, we started a programme called Kala Utsav, where youngsters competed at the state level and made e-books of the art or craft they wanted to present, and then they would compete nationally. I realised that they were more than happy to represent arts and crafts that people thought were dying out.
When you reach the end of your tenure at the ministry, what would you have liked to achieve?
For me the hallmark would be a new policy that would encompass the variety that the Ministry of Textiles has to service, from man-made fibres to cotton to handloom and handicraft. Secondly, my endeavour is to empower the artisan, because no big business plan or forecast for the entire sector will be pragmatic if we do not serve or preserve the arts and crafts that they present. It’s essential that our artisans and weavers feel empowered enough to pass on the legacy to the next generation. So the aim is to ensure that more and more youngsters understand and appreciate the craft, to ensure that those who have that family history preserve the knowledge, those master craftspeople who have so much to teach nationally also get an opportunity to engage internationally. That’s a huge task.
SOURCE: The Vogue
The state government of Odisha will be announcing a new textile policy at its Make-in-Odisha conclave, which will be held from November 30 – December 2, 2016. The state cabinet will also introduce about 6 other departmental industrial policies, all of which are yet to be approved. Close to 500 companies will participate in the conclave in Odisha. The conclave is being organised jointly by the Odisha government and the department of industrial policy and promotion (DIPP). Various companies from the state will set up stalls at the event to showcase their manufacturing ecosystems and highlight new investment opportunities. The budget for organising the conclave is close to Rs 20 crore and the organisers have conducted various pre-conclave road shows and events in cities like Delhi, Pune, Hyderabad and Kolkata to attract investors, according to media reports.
SOURCE: Fibre2fashion
In a memorandum submitted to the ministry for textiles, the Tamil Nadu Small Powerloom Export Cloth Manufacturers Association has urged the ministry to set up clusters and regular markets in various districts of the country, which has a major weaving industry. They demanded the ministry to assign the funds required for the same in the upcoming union budget. “The ministry has assured adequate allocation of funds for the same, if state governments came forward and allotted adequate land in the respective districts, for establishing these business clusters and markets,” Appu Chettiar, president of the association told a leading daily. The memorandum also added that the union government had reserved certain varieties of fabrics to be produced by the handloom sector many years ago, which was relaxed for 11 varieties of fabrics from the 22 earlier in 1985. According to the association, the 11 existing varieties reserved for the handloom sector still hampers production in both the powerloom as well as handloom industries, so requested for a review of the existing reservation.
SOURCE: Fibre2fashion
Small industries' lender SIDBI has filed a winding up petition against textile firm Alok IndustriesBSE -3.04 %, which is already facing debt restructuring action by a consortium of lenders led by SBI for recovery of loans. While the company did not disclose the outstanding loan amount, media reports have pegged it at over Rs 20,000 crore. "SIDBI has indeed filed a winding up petition against the company in the Bombay High Court on 20 October, 2016 and the same is in pre-admission stage. As far as the effect the above filing has on the banks, we cannot comment on the same," Alok Industries said in a regulatory filing. The company said it has not yet been served with a copy of the petition by SIDBI and added that "only when the same is served to us, we can proceed to file an affidavit-in-reply in the said matter". "In the interim, our counsel has written a letter to SIDBI on 3 November, 2016 updating them on the various options being considered by the company's lenders for a sustainable solution," it said. In January, the company had said in a regulatory filing that strategic debt restructuring (SDR) has been invoked and the Joint Lenders' Forum (JLF) has decided to acquire up to 65 per cent stake in the company by converting its debt into equity. For the June-end quarter, Alok Industries reported a net loss of Rs 1,212.04 crore, against Rs 349.68 crore in the year-ago period.
SOURCE: The Economic Times
About 80 items are likely to make it to the exemption list under the proposed goods and services tax (GST), including grains, green coconut, poha, unprocessed green tea leaves, and non-mineral water. Items such as coffee and processed foods like biscuits, rusk, butter and cheese currently exempted from excise duty, may draw GST. There are currently around 300 items in the exemption list from central excise duty and 90 from the states value added. A committee of officials headed by Revenue Secretary Hasmukh Adhia is preparing the item-wise list for GST rates.
Hectic lobbying was done for segment-wise GST rates. Sources said the committee of officials received over 16,000 representations. For instance, sources said, makers of refrigerators in 200 litre category with chlorofluorocarbon (CFC) made a representation to bring this item in the 18% slab as against the 28% slab. The item, they said, was used by common man nowadays. Officials are also trying to resolve the issue of distributing control over assessees between the Centre and states, after an informal meeting between Union Finance Minister Arun Jaitley and state representatives failed to thrash out the matter politically. The officials are also looking into draft GST Bills, draft compensation Bill. These issues would be taken up by the GST Council, a body representing the union finance minister, minister of state for finance and state representatives, on Friday. The Centre and states have already agreed to a five-slab structure for GST rates — 5, 12, 18 and 28%, as well as a cess of 28% on sin and luxury goods such as tobacco, big cars and aerated drinks. The cess is likely to be in proportion to duties attracted by these items currently. “We will keep exemptions to a minimum. We are still finalising the exemption list,” a government official said.
States exempt unprocessed goods and those consumed by the poor such as fruits, vegetables, salt, grain and coarse fabric. The Centre provides excise exemption to processed food and pharmaceuticals and a concessional rate to fruit-based items. Common items exempted by the Centre and states include bread, eggs, milk, vegetables, cereals, books and salt. These will continue to be exempted. The negative list of services, exempted from the levy, will be reduced to include only essential services such as health and education. “We will have a very small number of essential services out of the GST net,” the official added. The negative list of services currently has 18 heads, which include health care, education, goods transport agency and non-air conditioned restaurants, among others. The draft model GST law, put on the public domain, provides tax exemption provision for certain goods or services, taking public interest into account. “If the central or a state government is satisfied that it is necessary in the public interest... it may, on the recommendation of the Council, by notification, exempt generally either absolutely or subject to such conditions... goods and/or services of any specified description from the whole or any part of the tax leviable thereon,” the draft law states.
Chief Economic Advisor Arvind Subramanian, in his recommendation on a revenue-neutral rate for the GST, had argued eliminating the exemptions on health and education as this will make tax policy more consistent with social objectives. He had also recommended bringing electricity and petroleum within the scope of the GST. Subramanian in his report on GST argued that extensive central excise exemptions amounted to about Rs1.8 lakh crore, or 80% of actual collections. “Given the historic opportunity afforded by the GST, the aim should be to clean up the Indian tax system that has effectively become an ‘exemptions raj’ with serious consequences for revenue and governance,” the report said. The government has been pruning the excise exemption list for quite some time. From 542 items in 2011, it has come down 300 items. It should be noted that some petroleum products would come under zero rate till the time the GST Council decides to bring them under GST rates. This means that the state will continue to impose VAT and the Centre excise duty on these items. Zero rated is different from exemption as input credit is given in case an item is zero rated. Or in other words, items drawing zero rate is in the GST chain.
SOURCE: The Business Standard
The government is considering bringing the three GST-related Bills as money Bills disregarding the Congress’s demand seeking their introduction as financial bills, sources said. The introduction of the GST Bills as money Bills will ensure faster passage as these are required to be voted only in Lok Sabha where the ruling party has a clear majority. On November 10, the Lok Sabha had listed the Central GST Bill; the Integrated GST; and GST (Compensation for Loss of Revenue) for introduction, consideration and passing in the winter session of Parliament. The Centre has circulated these three draft Bills to states and these will be discussed in the meeting of the GST Council on November 25. The Centre aims to introduce these in the latter part of the current session ending December 16.
During the debate in Parliament in August on the GST Constitutional Amendment Bill, the Congress withdrew from its earlier demand for specifying an 18 per cent rate cap in the Constitution but demanded that the government bring the subordinate laws as financial Bills to ensure meaningful debate. Arguing that he couldn’t spell out the government’s stand before the Bills were finalised, Finance Minister Arun Jaitley had said in August: “The Constitutional provision in Article 110 and 117 as to what is a money bill and what is a finance bill is absolutely clear. The word used in Article 110 is ‘shall be,’ that is what shall deemed to be a money bill, so I can’t convert a constitutional requirement into my own option. That’s the option that I don’t have.”
The Central GST Bill will facilitate the levy of tax on intra-state supply of goods or services; the Integrated GST will enable levy of tax on inter-state supply of goods or services; and the third Bill is to facilitate payment of compensation to states for loss of revenue arising on account of the implementation of GST for a period of five years. The Centre and the states have already decided on a four-tier GST rate: 5 per cent, 12 per cent, 18 per cent and 28 per cent. But they are yet to decide on the issue of cross empowerment to avoid dual control. The constitutional amendment enabling roll-out of the indirect tax regime was passed by Parliament in August following which it became an Act in September after ratification by 16 of the 31 state legislatures. The government aims to introduce GST, which will subsume excise, service tax, VAT and other local levies, from April 1, 2017. There’s a reason the Government is considering the money Bill route. The contentious issues which could potentially hold up these bills in Rajya Sabha include difference over the calculation of the revenue base of the Centre and states and compensation requirements, the list of exemptions, capping of the rate in the Central GST Bill and threshold limits for the levy of GST. Even as the Congress had diluted its initial demand for capping the GST rate in the Constitution Amendment Bill, it had specifically asked the government to specify the cap in the Central GST Bill. But the draft bills that have been circulated to the states do not mention the GST rates which are likely to be notified separately, sources said. This particular issue is also been seen as a possible hurdle to the smooth passage of these Bills in the Upper House.
SOURCE: The Indian Express
Banks are integrating their information technology system with RBI and GST Network as they prepare to handle tax deposits under the new indirect tax regime, Finance Minister Arun Jaitley said. Detailed protocols for integration of the banks' IT system with RBI and GST portal of Goods and Services Tax Network have been prepared and finalised by RBI and the Goods and Services Tax Network (GSTN), respectively, in consultation with the Government of India, he said. "The public and private sector banks are readying themselves to handle collection of taxes under the GST regime and remitting it to the government account with RBI," Jaitley said in a written reply to a question in the Rajya Sabha. The banks are developing and making necessary changes in their information technology system for integration with RBI and GSTN portal, he added.
Under the GST regime, individuals and entities can pay taxes online using debit or credit cards or any electronic, mode of payment, including NEFT, RTGS. A new and simpler portal www.gst.gov.in <http://www.gst.gov.in> that will enable easy filing of returns and tax payments has already gone live. A provisional identification number called GSTIN is being generated for the existing excise and sales tax assessees. Registrations of new assessees will start from April 2017. The new indirect tax regime GST kicks in from April next year.
SOURCE: The Economic Times
Demonetisation is likely to pull down GDP growth by 1-2 percentage points as it is disrupting economic activities, especially in the informal sector, said former Planning Commission Deputy Chairman Montek Singh Ahluwalia. "The (economic) growth rate is going to be adversely affected. There is no question on that. Somewhere between one to two per cent," Ahluwalia said in an interview on TV channel India. Earlier this month, the government demonetised currency notes of Rs 500 and Rs 1,000, replacing them with new Rs 500 and Rs 2,000 bills in an effort to root out black money and terror funding. On the impact of the movw, Ahluwalia said, "The adverse impact will be the most on employment intensive part of GDP. The impact on employment proportionally will be more than loss on GDP. That will affect consumption and production. There will be ripple effect." He also said," I have read in newspaper NITI Aayog Member Bibek Debroy saying the impact (of demonetisation) will be 0.1 per cent...I agree that it is hard to believe."
Elaborating further, he said, "It is not just inconvenience. It is scarcity of cash which is going to disrupt business and livelihoods in the informal sector which is large part of the economy. That will shrink economic activity for some time....at least till March-end." He further said, "Informal sector represents 45 per cent of GDP and accounts for 80 per cent of jobs. Most of the businessmen in informal sector get money from private lenders and in hundis. All of them are cash starved." He also said, "There is no question that it is a very big shock. In very few cases, you see 86 per cent of currency is nullified and that will lead to a cash crunch."
On rooting out black money from the system, he said,"We need to make distinction between black income and black wealth. These are two different things." He felt that there is also a need to check the generation of black money by taking steps like improving transparency on big financial transactions and modernising tax system by lowering tax rates and bettering tax administration. He also suggested lowering of stamp duty on land registrations. On GST he said, "Whatever emerged from the consolations of states (on GST) that it is very messy GST. There are too many rates. It is not consistent with the GST which will cut out corruption, misdeclaration and so on." Ahluwalia also recommended that the government should have allowed well regulated cooperative banks to change currency notes because a large part of informal sector depend on those.
SOURCE: The Economic Times
Demonetisation is a bold move by the government, which when seen in conjunction with the drive to open Jan Dhan Accounts in the last one year, tax amnesty scheme of last few months and a strong push towards GST, points towards a well-thought out and structured effort to formalise the economy. While we can expect some near-term disruption, in the medium to long-term, demonetisation, along with GST, should help make significant progress in addressing the issue of black money. There have been lots of reports about the impact of this move. Both the positives impacts and the downsides to the economy have been analysed.
What is more important is to reflect upon what additional steps the government should take to follow through on this move -to mitigate the near-term economic impact and the second to ensure that this step can be complemented with other steps to make a serious dent to the black money. This will ensure that the positives aspects are harnessed while the negatives are counterbalanced. Some of the things the government and RBI can do are: A strong fiscal and monetary response is required. Market interest rates have come down and can fall further. RBI should cut rates by 50100bps sooner than later. This is clearly doable given that both inflation and growth will be lower in the coming months. But equally important would be the near-term fiscal push. Government will benefit to the extent of Rs 2-3 lakh crore from demonetisation and it should ensure that this is invested and spent back as quickly as possible. This can be done through bank capitalisation, channeling money into the Jan Dhan accounts, reducing indirect taxes for common man on everyday usage items etc. This will get the money back to the people which can ease the pain rather quickly .Government can also incentivise housing construction through tax breaks on self-occupied home buying to give a boost to housing. This should be supplemented with direct government spending especially in construction sector. Ramping up infrastructure would mean that economic activity is boosted and jobs will be generated.
RBI can also allow NBFCs and microfinance institutions to collect old notes towards repayment with proper documentation can also be considered to ensure stable credit quality. Also some regulatory forbearance on restructuring small enterprise loans which are affected by demonetisation would be in order. RBI should also put in place a debt restructuring mechanism for small borrowers -akin to the CDR for the corporate sector -as many small enterprises and small borrowers may need to restructure their loans. However, apart from addressing the near-term disruptions, it is extremely critical that the current fight against black money is not a one-off exercise, and its momentum is sustained. Institution building is of prime importance in this process. GST will undoubtedly be a significant step to formalise the economy and increase the tax base of the government.
Currently , a lot of businesses which were using cash, have at least for once deposited money into bank accounts. If, GST is implemented quickly , business' reliance on using bank accounts for transactions could certainly increase.Overall, this would create a significantly higher money multiplier, wider tax base and a more sustainable growth in the economy . In fact, through the demonetisation step, government has now access to a lot of information and hence ensuring tax compliance and implementation should be easier. One important aspect to focus on is the election funding. Adopting a state funding kind of system for elections and making corporate donations more transparent would go a long way in addressing black money . Such steps would provide a lot of credibility to the whole exercise of addressing black money in the minds of the common man.
One more area to tackle is to ensure that gold usage is curbed and gold does not become a currency for black money. Indians will still be attached to gold for jewellery but gold in the form of non-jewellery should be curbed. While the short-term pains to demonetisation are acknowledged, it is important to see it from a broader long-term perspective as well. The tangible and intangible gains in the medium to long-term, coupled with other reforms, dwarf the near-term negative impact. Demonetisation is another one in the line of bold steps being taken to formalise the Indian economy , all of which put together could elevate the Indian economy to the next level.
SOURCE: The Economic Times
The Consulate General of the Republic of Indonesia in Mumbai in continuation to conduct various activities to developing bilateral relations and co-operation between Indonesia and India with the aim to promote the Trade, Tourism and Investment opportunities recently organized a Solo Exhibition entitled "EXPO INDONESIA 2016" at World Trade Centre (WTC), Mumbai on 11th and 12thNovember, 2016. Expo Indonesia 2016 was inaugurated by Subhash Desai, Minister of Industries, Government of Maharashtra and Saut Siringoringo - The Consul General of the Republic of Indonesia, Mumbai. The inaugural ceremony also had the presence of Indian Trade and Tourism Associations, leading Business Entrepreneurs and Indonesian Companies investing in India along with Indonesian communities residing under the jurisdiction of this mission. While addressing the gathering at Expo Mr. Desai said "Our Government will strive hard to strengthen business and cultural relationships between Maharashtra state and Indonesia". 35 Indonesian companies took part in Expo Indonesia 2016, as exhibitors, featuring various products such as - Furniture, Paper, Health-Care Products, Food, Home-Care Products, Batik and Handicraft Products such as Handbags, Accessories etc.
During Expo a series of events also were held such as Seminar on Trade and Investment, "Enhancing Trade and Investment Relations between Indonesia and India", Seminar on Tourism, "Experience Travel and Tourism in Wonderful Indonesia - An Endless Destination" , Launching of a book "Ganga to Mekong - A Cultural Voyage through Textiles" by Mrs. Hema Devare, wife of Mr. Sudhir Devare, Former Indian Ambassador to Indonesia, B2B Meetings for Trade and Investments, Table Top Meetings for Travel and Tourism Industry, Batik Painting Demo and Indonesian Food vendors.
While speaking to media at Expo Mr. Saut Siringoringo said "Expo Indonesia 2016 is the second exhibition being organized by this mission after the last such event was organized in year 2007 in Mumbai. The Expo Indonesia 2016 is the continued efforts of the recent success leading a business delegation of 130 business delegates from India attending the "Trade Expo Indonesia 2016", October 12-16, 2016 in Jakarta, Indonesia which was organized by the Ministry of Trade of the Republic of Indonesia. The event resulted into a significant transaction of US $ 84 million, resulting into a 100 % increase compared to the year 2015." He further added "Indonesia and India enjoy a high level mutual beneficial relations. Implementation of ASEAN-India Free Trade Agreement (AIFTA) has contributed a lot to increase the trade relations between the two countries. The average value of bilateral trade between Indonesia and India in last five years have been reaching to around US $16 billion."
Indonesia Expo 2016 is also expected to further boost Indian tourists to Indonesia beyond Bali. An important note, at the first semester of 2016, the increased number of Indian tourists to Bali was 68%. The absence of direct flight from Indonesia to India since 1998 has considerably discouraged the increase of Indian tourist to visit Indonesia and vice versa. The number of Indonesian tourists coming to India and vice versa is very low. The connectivity between the two countries through opening direct flights will certainly increase tourism sector and people to people contacts. Indonesian National carrier 'Garuda Indonesia' has expressed interest to begin its flights on India routes by end of this year.
India is one of the most important engines of the world's economic growth. The "Make in India" move is considered as a breakthrough to open the country's economy for investment. Indonesian companies are expected to invest in India to strengthen ties between both countries. The business partnership in sectors such as financing, automotive and textile must be increased and strengthened as both countries have such huge markets in those sectors.
SOURCE: The Business Standard
Pakistan’s exports to France witnessed an increase of 10.7 per cent in the year 2015 from a year ago under the European Union GSP+ scheme. In absolute terms, the export proceeds to France increased to €768.37 million in the year 2015 from €694.55m over the corresponding calendar year. However, the same export increase was not reflected in US dollar term. In a written reply to a question by MNA Ms Khalida Mansoor, Minister for Commerce Khurram Dastgir Khan listed several reasons for the decline in exports in dollar terms. One of the reasons was the depreciation of Euro vis-à-vis US dollar in the aftermath of sovereign debt crisis in the eurozone.
France was the seventh major export destination for Pakistani exports in the single market of European Union in 2015-16. The major items of exports to France include made-up articles of textile materials, articles of apparel and clothing, knitwear, articles and apparel other then textile materials, hosiery, baby carriages sports good etc. Mr Dastgir said increase in exports of Pakistan to France is a consequence of aggressive export marketing strategy of government. He said the Trade Development Authority of Pakistan has participated in four exhibitions in France as part of increasing exports. He added that the Pak-France Business Council, which was established by the Federation of Pakistan Chambers Of Commerce and Industry (FPCCI), also actively promotes and strengthen bilateral trade relations between the two countries. Business community of the two countries exchange market intelligence. The minister further said the FPCCI has also proposed to the French side through diplomatic channels for the creation of Pakistan-France Joint Business Council.
SOURCE: The Dawn
The Ministry of Industry and Trade (MoIT) has mapped out next year’s development plan for the industrial sector and forecast an 8 per cent rise in industrial production, against this year. In its report on the direction and solutions for the industrial sector, the ministry has also forecast a 6-7 per cent increase in exports in 2017. The proportion of trade deficit against total trade turnover will be maintained at less than 5 per cent. The total revenue from retail sales of goods and services is also expected to rise by around 10 per cent next year. The ministry said its calculations are based on research reports on global economic growth in 2017, announced by international organisations to date. Global economic growth is expected to rise next year, depending on the movements of financial, crude oil and securities markets as well as volatility in some countries.
The International Monetary Fund (IMF) and the World Bank (WB) have forecast that the world economy will rise by 3.5 per cent and 3.1 per cent respectively in 2017, against 3.2 per cent and 2.9 per cent in 2016. For Việt Nam’s power industry, the ministry has forecast that the industry will produce 99 billion kWh of electricity and will have to buy an additional 179.8 billion kWh in 2017, up roughly by 13 per cent against this year. According to the ministry, after gaining a significant growth in the mining and lighting industries over the past few years, 2017 will be negative for them. The oil and gas sector is expected to exploit only around 14.8 million tonnes of crude oil next year, down 12.9 per cent against this year. However, the output of gas will rise by 10.8 per cent to 11.3 billion cu m. The output of the coal industry is expected to remain unchanged at 38.3 million tonnes in 2017. However, this sector, as well as the engineering industry, will be affected because of low prices globally. Among the heavy industries, the steel sector is expected to have an output of 5.6 million tonnes of unprocessed steel, up 16.6 per cent, while rolled steel is forecast to rise by 18 per cent to 5.84 million tonnes. Forecast for the fertiliser industry is optimistic, with there being enough output to meet not just domestic demands but also for exports. The output of urea fertiliser will inch up by 2.2 per cent to 2.01 million tonnes, while NPK fertiliser will rise 2.4 per cent to 2.67 million tonnes.
The textile-garment and footwear industries are also expected to have more opportunities in 2017, as a number of new free trade agreements will take effect. The ministry is, however, concerned that domestic small- and medium-sized firms will face more challenges at the same time. Fierce competition has also been forecast for the beer-alcohol-beverage industry owing to the presence of more foreign brands in the country. The industry’s output next year is estimated to be 3.92 billion litres, up 8.2 per cent against 2016
SOURCE: The Vietnam News
Efforts to decrease the trade deficit with China is an important policy and one of the Ministry of Industry and Trade (MoIT)’s chief concerns, in addition to increasing exports to this market, says Industry and Trade Deputy Minister Đỗ Thắng Hải. The chronic trade deficit with China has long troubled Việt Nam’s economy, though the dependence on Chinese imports is hard to avoid for a rising economy like Việt Nam’s. According to the General Department of Customs, China is still the largest exporter to Việt Nam, accounting for US$40.24 billion in the last 10 months, though the total has decreased by 1.4 per cent compared to the same period last year.
Vietnamese exports to China have been facing many challenges as China is in an economic downturn. But despite China’s many trade barriers against Vietnamese products, in the past 10 months of 2016, Việt Nam’s exports to China accounted for 12 per cent of the country’s total. Việt Nam’s main imports from China focus on manufacturing products, with machinery, equipment, accessories, steel, phones and phone accessories, textile materials, leather, chemicals and vehicles, each worth around $1 billion.
Nonetheless, under pressure of the rule of the origins of goods, Vietnamese supporting industries are expected to increase production, enabling the country’s export potential to grow and imports to decline. This would reduce the trade deficit towards a better trade balance between the two countries. Furthermore, Vietnamese authorities are urged to impose stricter quality control on imported Chinese materials. Experts noted that if more free trade agreements (FTA) go into effect, Vietnamese exporters will have to pay more attention to the origins of goods to avoid importing materials from China if they wish to take advantage of said FTAs in preferential tax treatment and to avoid technical barrier and dumping cases. Businesses are moving away from Chinese imports by diversifying imports from other markets, especially from South Korea since implementation of the Việt Nam-South Korean FTA on December 12, 2015. Imports from South Korea constitute 18 per cent of total imports as of October 2016, having increased 10.8 per cent since last year.
South Korea is now the second largest exporter to Việt Nam, with a total export turnover of $26 billion, an increase of $2.7 billion, or 11.8 per cent, compared to the same period in 2015. Due to a 10-per cent tax on Vietnamese petrol, the amount of imported petrol from South Korea to Việt Nam has increased to 1.34 million litres, equal to $633 million. Japan and Thailand’s exports to Việt Nam are also on the rise, at $12.2 billion and $6.9 billion, respectively, in the first 10 months of 2016. Imports from the US accounted for $6.86 billion. The MOIT asserted based on these figures that Việt Nam would slowly utilise the signed commitments and FTAs with these countries, to gain freer markets and reduced import tax levels and shrink its dependence on Chinese imports.
SOURCE: The Vietnam News
The labour commissioner’s office in California has launched an online system to make it easier for garment manufacturers to register as well as renew their registration certificates with the state. The online application is part of the department of industrial relations’ effort to upgrade departmental systems in order to improve customer service. The new system introduced in California, the world’s sixth largest economy according to the bureau of economic analysis, allows companies to save their application in progress and submit it when completed along with the required attachments. Fees can be paid using credit cards or electronic funds transfer. A checklist and instructions for the applicants have also been posted on the website. “Garment registration laws help to combat sweatshop conditions and root out the underground economy. This new online registration system offers garment manufacturers or contractors an easy way to apply for, or renew, registration certificates to comply with the law,” said Julie A Su, labour commissioner, California.
The Garment Manufacturing Act of 1980 requires that all employers engaged in the business of garment manufacturing to register with the labour commissioner and demonstrate adequate character, competency, and responsibility, including workers’ compensation insurance coverage. Garment manufacturers who contract with unregistered entities are automatically deemed joint employers of the workers in the contract facility. The labour commissioner’s office has posted a garment registration database that details whether manufacturers or contractors are properly registered or not. The labour commissioner’s office, formally known as the division of labor standards enforcement (DLSE), is a division of the department of industrial relations (DIR). Among its wide-ranging enforcement responsibilities, the labour commissioner’s office inspects workplaces for wage and hour violations, adjudicates wage claims, enforces prevailing wage rates and apprenticeship standards in public works projects, investigates retaliation complaints, issues licenses and registrations for businesses and educates the public on labour laws.
SOURCE: Fibre2fashion
The Royal Government of Cambodia (ministry of commerce and ministry of labour), the Garment Manufacturers Association of Cambodia and International Labour Organisation’s (ILO) Better Factories Cambodia (BFC) programme have signed a memorandum of understanding (MoU) to improve working conditions and boost competitiveness in the country’s garment industry. The MoU has been signed to extend the partnership for three years, covering a period from January 2017 to December 2019, during which the partners will collaborate to work together to build the institutional sustainability of the programme.
Cambodia has agreed to contribute approximately 25 per cent to the BFC budget over the next three years, while international garment buyers sourcing from Cambodia who use the ILO BFC programme assessment reports and factories that participate in BFC training courses will contribute to programme operation based on fees for services rendered. The BFC program will continue to assess working conditions in garment factories based on Cambodian labour law and internationally recognised core labour standards, and to report on its findings publicly by detailing compliance and non-compliance of individual factories. BFC will also work with the ministry of labour to implement a joint strategy and action plan with the objective to support government’s capacity and ownership to uphold compliance with labour law and make necessary changes in the garment sector. “BFC has played a key role in the growth of the industry and the improvement of working conditions. Under the new MoU, BFC and the ministry of labour and vocational training (MOLVT) would step up collaboration on workplace inspection and enforcement of the labour law,” said Ith Sam Heng, minister, MOLVT, Cambodia. “The new MoU will see our continued financial support and increased collaboration with our partners, including the transfer of knowledge on labour inspection to officials of the MOLVT to ensure we keep abreast of current and future opportunities and challenges in the sector,” said Pan Sorasak, minister of commerce, Cambodia.
BFC is part of the Better Work Program, a collaboration between the ILO and the International Finance Corporation, which operates across three continents to catalyse change along global supply chains in the garment industry, the work of BFC will be an integral part, in the recently signed, Cambodia Decent Work Country Programme. The MoU has been renewed five times by the parties since the ILO BFC programme began in 2001.
SOURCE: Fibre2fashion
Sri Lanka's budget 2017 that focuses on strengthening the country's economy lists out multiple benefits for the apparel and textile sector. Presenting the budget, finance Minister Ravi Karunanayake said that the government has proposed the formation of a textile cluster to include sizing, dyeing and finishing units by the private sector. The government will support the formation of a textile cluster by providing investment relief to businesses that will invest in this venture and will also provide adequate space to save close to $2,000 million per annum. While the apparel and textile industry of Sri Lanka exported products worth $4,800 million in 2015, it imported fabrics worth $2,296 million in the same year.
Garment exporters will also be granted permission to import branded products by enterprises for reworking, operating under the commercial hub regulation. These garments will then be exported to countries where there is no preferential treatment, said the government. The textile and handloom industry of Sri Lanka has a significant domestic market and will generate employment for many. The Industrial Development Board (IDB) will provide the necessary infrastructure and training. The board has also been requested to increase engagement with the industrialists who require knowledge transfer and upgrade the industrial estates to support the small and medium enterprises (SME) sector. The government has proposed to allocate Rs 500 million towards this sector. The government will also allow apparel companies based in Sri Lanka to invest in overseas entities involved in apparel design and manufacture up to 5 percent of their average export turnover of the preceding three years in any given year. Profits and income of such enterprises established overseas should be received by the investing company in Sri Lanka.
As multiple industries including textiles, require thousands of trained workers, the finance minister of the country proposed a significant shift in the policy framework in vocational training, by providing scholarships to anyone who wishes to follow a vocational training programme at a state operated institution. This will enable vocational training in Sri Lanka for all at no cost. A sum of Rs 300 million will be allocated by the government to meet the cost of the scholarships to be provided under this programme.
SOURCE: Fibre2fashion
In this financial year, the Myanmar apparel industry operating under the cut make pack (CMP) system, has exported more than $1 billion dollars worth of clothing till November 11. As against this, the country shipped garments totalling $408.4 million in the same period in the previous year, a massive jump of $690 million or 145 per cent year over year. Myanmar media quoted a senior official of the ministry of commerce, Khin Maung Lwin as providing the information about the sector, which has more than 400 factories, employing around 400,000 workers. According to the Myanmar Garment Manufacturers Association (MGMA), most of the country's apparel units operate under the CMP system, who together export 33 per cent of their production to Japan, 25 per cent each, to Europe and South Korea and only 2.4 per cent each, to China and the United States.
SOURCE: Fibre2fashion
The continuously increasing importance of denim in the apparel industry in Vietnam brings out another edition of Denimsandjeans shows at HCMC in June 2017. With the first Denim Show in Vietnam launched by the Denimsandjeans.com team from India, the second edition in June 2017 brings some of the leading denim jeans and fabric companies besides chemical, accessory and other suppliers in the denim supply chain. Over 50 companies from Vietnam, China, Indonesia, Hong Kong, India, Pakistan, Bangladesh, Brazil, Italy, Switzerland, Japan, Thailand, Taiwan and some other countries are expected to participate in the show.
Vietnam exported about $27 billion of apparel and textiles in 2015 and is expected to grow to $30 billion in end of 2016. Denim is increasingly taking a share in these exports. "Vietnam is one of the fastest growing denim destinations globally and through our denim shows we enable the International Denim Industry to see the immense potential of this important denim sourcing location", said Sandeep Agarwal, Founder of Denimsandjeans.com. The first and the maiden international denim show in Vietnam was held in June 2016 by Denimsandjeans and the second edition with the theme Street Style seeks to highlight the importance that denim holds in the realms of street play. The trend area, the booths and the whole look of the show would reflect the importance of denim in Street Styling.
Ever since the Denimsandjeans.com website was setup in the year 2007, there was always an Endeavour to bring out knowledge sharing and business developing platforms in some way or the other. Sandeep Agarwal - the founder - was inspired to start this website to share denim knowledge with the world. It further led to launch of the First Denim Shows in Bangladesh and Vietnam. The company has also launched De-Brands: the first online denim show at their portal and are enabling the buyers and suppliers to interact for business online.
SOURCE: Fibre2fashion
The Yangtze River is the lifeline for Shengxiang electronic material manufacturing company in Jiujiang City on the riverbank. Everyday, tonnes of glass fibre is transported from the riverside cities of Chongqing and Shanghai to Shengxiang. Zong Daoqin, chairman of Shengxiang, said river transportation saves 400 yuan (58 U.S. dollars) per tonne compared to land carriage. The company, founded in 2012, has grown into a leading manufacturer of glass fibre cloth. Zong attributes the rapid growth to the country's effort in developing Yangtze River Economic Belt. "The local government has helped with investment, financing, and public listing," he said.
China has been developing clusters of emerging industries along the mighty Yangtze as the country seeks to increase its competitiveness globally. By 2030, an innovative, modern industrial system will be fully incorporated and integrated along the river, making the economic belt a "strategic support" for national economic and social development, according to an official with the leading group of the Yangtze River economic belt development. As a major port on the river, Jiujiang has been supporting new industries along the 153 kilometer river in the city. It brought in hundreds of companies in the areas of equipment manufacturing, petrochemical, new energy, new material and automobile in recent years. The city saw a 15 and 10 percent annual growth in terms of revenue of main business in the industrial sector and fixed asset investment in 2015.
China began to develop the Yangtze River Economic Belt in 2014 to boost concerted development in riverside regions and provide new growth stimuli for China's slowing economy. Revered as the "Mother River," the Yangtze traverses eastern, central and western China and joins the prospering coastal regions with the less developed inland. It is one of the busiest rivers for freight traffic worldwide. The Yangtze River Economic Belt involves nine provinces and two municipalities that cover roughly one fifth of China's land, accommodate a population of 600 million and generates more than 40 percent of the country's GDP. Like Zong, Shi Jianqiang, the owner of a green textile enterprise in Shaoxing City, Zhejiang Province, has also benefited from the government drive. His company recently signed an investment contract with Huanggang City, Hubei Province, agreeing to build a waste textile recycling plant in the city some 700 km away. Last year, Hubei government funneled 200 billion yuan into helping industries along the Yangtze grow.
China's textile waste recycling rate is only about 10 percent currently, and there is a huge market for the sector, Shi said. "We just hit it off from the beginning," Shi said. "Textile waste recycling will help waste recycling treatment, printing and dyeing, and textile companies, which will be significant for Hubei." So far, the government has helped companies settle in Hubei, from new energy cars to new materials, to chip-making, according to the government. "The Yangtze River Economic Belt can hopefully grow into the backbone of the Chinese economy," said Xu Guangjian, professor of the Renmin University of China. "The industrial clusters along the belt will help boost China's competitiveness in the global market."
SOURCE: The Xinhua Net
Vietnam was set to be one of the major beneficiaries of the Trans-Pacific Partnership trade deal, which now seems all but dead after the U.S. president-elect Donald Trump declared withdrawing America from the pact would be one of his first actions in office. Vietnam’s manufacturing-led economy, particularly the textiles sector, was set to reap the reward of slashed tariffs among the 12 Pacific-rim nations who signed on to the deal, which also included Japan, Australia, Canada and Mexico.
US President Barack Obama (L) shakes hands with Vietnam’s President Tran Dai Quang before attending the first APEC Leaders’ Retreat on the final day of the Asia-Pacific Economic Cooperation (APEC) Summit in Lima. Asia-Pacific leaders are expected to send a strong message in defense of free trade on November 20 as they wrap up a summit that has been overshadowed by US President-elect Donald Trump’s protectionism. The country’s economy is still well positioned to continue growing, with various other trade deals giving it good access to international markets. These include the recently negotiated EU free trade deal and other agreements through the Association of Southeast Asian Nations.
Vietnam’s trade minister Tran Tuan Anh was quoted on a government news site saying the textile, seafood and footwear sectors would remain competitive even without the TPP. “We are always ready for integration, not just because of TPP, but because it is a requirement and also a motivation for development,” he said. Yet while the broader Vietnamese economy will continue to perform well even in the face of the demise of the TPP, it is the loss of the other, less well-known elements of the deal that are a disappointment for the country. Under the deal, worker and environmental protections would have been necessary to implement, including workplace heath and safety regulations, the elimination of child labor, and the protection of endangered species. These kinds of reforms were sorely needed in some of the signatory countries to the deal like Vietnam, Peru and Brunei.
Importantly for Vietnam, it would have allowed workers to form independent trade unions and collectively bargain with employers, a move that would have almost certainly seen a rise in average wages. Independent unions have not previously been allowed in the Communist Party-ruled country. There is no word yet on if this reform will continue, however it is difficult to imagine it going ahead without the carrot of unfettered access to the U.S. market.
Technically, the Trans-Pacific Partnership could go into effect if at least six of the 12 countries ratify the deal, but only among those countries that give it the green light. Again, without the world’s largest economy as part of the agreement, it seems unlikely that other nations will be rushing to jump on board. There is a restive mood afoot in much of the developed world where trade is concerned at the moment. Such sentiment recently almost upended the EU-Canada free trade deal. However, there is no question global trade, spurred by such agreements, has pulled millions of people in developing nations, such as Vietnam, out of poverty. This is why the death of the TPP is a such a setback for the country.
SOURCE: The Forbes
Global production lines have multiplied tremendously in the last three decades. At the same time, the production of apparel and textiles has contributed to the economic development of a handful of African countries, including Lesotho. This sector is a major contributor to Lesotho’s economy, and accounted for around one-third of the country’s GDP and 60 percent of its total exports at its peak in 2007. It is also the largest formal employer, employing nearly half of the formally employed workforce and 80 percent of Lesotho’s manufacturing workforce.
The Lesotho textile and apparel industry is well established and mainly driven by global exports, primarily to the US under the Africa Growth and Opportunities Act (AGOA). While the sector has faced a number of challenges, including the end of Multi-Fibre Arrangement (MFA) in 2004 and the fallout from the financial crisis in 2008–9, new opportunities have arisen in the last five years. Developments such as the entry of South African clothing manufacturers exporting primarily to the regional market have created a regional value chain that takes advantage of the Southern African Customs Union (SACU). Figure 1 illustrates the percentage of exports of apparel products to the US market, driven by AGOA, compared with exports to South Africa – which reflect regional trade, as the items are not only exported to South Africa but to the Southern African region through retail value chains. From 2007 to 2010, exports to the US market declined from 95 percent to 74 percent, while exports of textiles to the South African market increased from 3 percent to 17 percent. In 2014, exports to the US through AGOA accounted for 78 percent, while exports to the regional market were at 17 percent.
Participation in the textile and apparel value chains has had a positive impact on Lesotho’s socio-economic development, shown in the positive correlation between increased exports and economic growth and improvements in the well-being of workers. This article addresses three crucial aspects of Lesotho’s participation in the textile and apparel value chains, looking first at the economic impact, then at the social impact, and finally at the sustainability of the industry and the potential for upgrading. It concludes by offering policy recommendations.
Economic impact
At the national level, global value chains enable countries to specialise in areas of comparative advantage, thus enhancing productivity growth and supporting wages and incomes, as well as increasing the interdependency and interconnectedness of economies. In 1995, the US was the predominant market for Lesotho, accounting for 76 percent of total exports to the world, while Africa accounted for only 17 percent. As a result of AGOA in 2000 and ensuing investment by Taiwanese apparel companies, Lesotho’s apparel industry grew substantially and exports to the US jumped threefold, from US$140 million in 2000 to US$456 million in 2004. The number of apparel firms increased dramatically in the same period, from 21 firms employing 9,847 workers in 1999 to 49 firms employing 53,087 workers. However, as a result of the expiration of the MFA in 2004 the economic crisis of 2008, and the slow economic recovery that followed, the number of employees and firms had dropped to fewer than 39,000 workers and 39 firms by 2015.[2] The uncertainty surrounding the future of AGOA after 2025 could also pose new challenges for Lesotho’s apparel industry.
To grow and sustain Lesotho’s apparel industry, the country has sought to diversify its export markets in the past 20 years. Lesotho’s economic diversification strategy is also intended to buffer against any losses arising from the apparel industry. It includes greater participation in South African value chains that are labour intensive in the sectors of agro-processing, light assembly, manufacturing, and business process outsourcing. This has resulted, for example, in the automobile sector investing in Lesotho, fostering the participation of local companies in the value chain of brands like BMW, Nissan, and Ford to produce car seats,[3] as well as in diversification into consumer electrical and electronic appliances produced by companies like Philips. The mining sector has also contributed significantly to the decline of apparel exports’ share in total exports.
This has translated into a massive erosion of the US market, from 76 percent in 1995 to 38 percent in 2015, largely due to Lesotho’s increased focus on regional trade integration. The US is no longer Lesotho’s only major exporting market, with Africa now accounting for 36 percent of total goods exports (Figure 3). Figure 2 illustrates the evolution of Lesotho’s total exports as compared to apparel exports over the past 20 years.
Investment
Productive activities in the apparel and textile sectors can be both labour and capital intensive, with apparel generally being very labour intensive, and textiles usually requiring important physical capital. In 2015, new factory shells were opened, with construction financed by government and development partners to the value of US$28.4 million. The shells are to be occupied by 10 new companies, eight of which are managed by local Lesotho nationals (Basotho), and they are expected to create more than 5,000 direct jobs. In addition to the construction of factory shells, the government, through its investment promotion agency, is using incentives to attract investors. An example is the local denim mill, which has invested over US$100 million, signalling long-term commitment to the industry.
South African manufacturers have also shown increased interest in investment in Lesotho through the addition of higher value activities in the country. For example, the largest South African owned firm has undertaken skills development, not only for its low-skilled workers but also for its local managers through leadership training. The proximity of Lesotho to the head offices of many of the South African manufacturers is also apt for transferring higher value services to Lesotho. One South African manufacturer intends to invest in integrated manufacturing shells that enable both backward and forward linkages, with research, design and marketing functions relocating to Lesotho.
Services
The major service components within the Lesotho textile and apparel value chains are transport and logistics, from the sourcing of raw materials to the shipping of products to the market. High-value service components such as product development, research and design, or branding and marketing, are primarily performed at factory head offices in Taiwan or South Africa. Conducting these higher value services remotely is detrimental to the transfer of skills to the Basotho workers, including management and leadership skills. The government and the World Bank have established two skills development centres in the two economic zones in Maseru and Maputsoe that provide basic skills for the textile sector. However, the South African manufacturers require advanced skills for their complicated products and they are currently supporting the local skills centre to enhance their training to contribute to the transfer of these skills.
Social impact
The formal employment of women in the textile sector can contribute significantly to their economic empowerment, the reduction of poverty, and national economic growth. Young women with low levels of education and skills comprise the majority (80 percent) of employees in the textile sector and also head more than half of all households in Lesotho. South Africa oriented manufacturers, through social development projects, are starting to train and empower women to rise to senior management positions. Basotho women employed in the textile sector have been economically empowered. The wages earned by textile workers have given them increased options and choices in their lives and also increased their role in decision-making both within and outside the household. However, these wages do not fully cover their basic needs and are not high enough for savings, limiting the possibility of financial assistance from financial institutions. To circumvent this, workers have created their own work-based social investment groups that allow them to have a certain amount of financial assistance and a certain amount of savings.
Through employment in the industry, the workers have access to workplace health programmes that provide them with health education and free health services. Lesotho does not provide social security but health services are highly subsidised, with HIV and tuberculosis treatment provided free at health facilities. The HIV prevalence rate for Lesotho is 23 percent nationally and 45 percent in the industry. In addition, almost 60 percent (23 out of 39) of Lesotho’s textile factories participate in the Better Work Programme of the International Labour Organization. This programme has contributed to improvements in occupational safety and health conditions within the participating factories and has also supported worker empowerment through the promotion of factory compliance with national labour laws and regulations. These and other programmes have increased awareness of workers’ rights, especially for women. A recent example was the introduction of paid maternity leave for female workers in the labour code. Starting in February 2016, a mobile reproductive health clinic – operated by the Seventh Day Adventist health facility, with support from United Nations Population Fund – has been providing important health services in the industrial area, five days a week, free of charge. The mobile clinic provides family planning counselling and supplies, offers antenatal check-ups for pregnant women, and provides HIV counselling, testing, and treatment.
Sustainability
The main driver for Lesotho’s textile and apparel exports has been the duty-free market access offered by AGOA and SACU. Predictable, stable, and sustainable preferential market schemes play a critical role in the economy of Lesotho. According to Joshua Setipa, Lesotho’s Minister of Trade and Industry, any loss of AGOA privileges would directly impact upon South Africa and other southern African countries. Lesotho’s only textile mill buys cotton lint from a number of southern African countries, including Malawi, Mozambique, South Africa, Zambia, and Zimbabwe. In 2015, it bought 105,393 cotton bales. However, it is highly likely that should AGOA cease to exist, the mostly Asian-owned firms would not relocate to other parts of Africa, which would thus have a significant negative impact both for Lesotho and other southern African countries. To improve the sustainability of the sector, the government of Lesotho has embarked on a public-private partnership approach using a strategic set of industrial policy interventions aimed at upgrading the institutional fabric of training and infrastructure. It is also campaigning to increase national ownership by providing Basotho-owned companies that want to participate in the textile and apparel value chain with subsidised factory shells.
There are significant differences between the regional value chain mainly driven by South African producers and the US/Asian value chain in respect of opportunities to upgrade. The regional market orientation offers added opportunities for social and economic upgrading through empowerment, skills development, and local embedding through regional sourcing, including investing in the development of firms directly in Lesotho – where the relative stability of both labour relations and electricity and water suppliers have helped attract South African investors. However, the number of workers in firms oriented to the South African market are not in a position to replace US-oriented firms, as each South African firm employs less than half of the workers employed in the firms targeting the US market. Moreover, the firms exporting to the South African market could not replace the revenue generated from US exports, as the volumes of goods produced for the regional market represent only a small percentage of those produced for the US market. The South African firms produce small but complicated products with higher margins, while the US-targeted firms focus on mass production of simple products with low margins requiring low skills.
Conclusion
The two apparel product value chains in Lesotho have positively contributed to addressing some of the economic and social challenges faced by the country, including alleviating poverty, by generating employment as well as promoting gender equality, as 80 percent of employees in the sector are women. Preferential market access, especially to the US, has been the main driver and incentive for foreign direct investment from Asia. However, the transfer of skills or technology has remained limited over the last two decades, as most of the high-value and management functions are based abroad. In addition, local linkages to the industry are limited to the transport, logistics, and banking sectors. The regional value chain, on the other hand, has demonstrated a greater potential for upgrading, especially through workers’ skills development, and sustaining the industry on a long-term basis.
The Lesotho experience has demonstrated elements that are required for successfully engaging in both global and regional value chains. For policymakers, a responsive trade and industrial policy that promotes diversification and reduces dependence on preferential market access is key to benefiting from participating in value chains since it promotes opportunities for backward and forward integration. Diverse trade and trade-related policy interventions give an opportunity to expand into new markets, integrate the private sector, and upgrade along the value chain. The transfer of skills and technology plays a critical role in enhancing competitiveness within the industry and increasing the diversity of workers’ skills.
SOURCE: ICTSD
Cotton consumption in Bangladesh is expected to rise 4.91 percent year-on-year to 6.4 million bales this year due to higher demand from spinners and garment makers, according to the US Department of Agriculture. The cotton year begins on August 1 and ends on July 31. Bangladesh is the largest cotton importer in the world at present, as China stopped importing the fibre in recent years. Bangladesh meets its demand for cotton through imports, as the country does not produce the white fibre locally. Cotton traded between 70.5 and 72.5 cents a pound in international markets yesterday. This cotton year, more than 430 spinning mills in Bangladesh will consume 6.4 million bales of cotton, according to USDA. Bangladesh spends more than $3 billion to import cotton a year. One bale equals 480 pounds or 218kg. Cotton consumption by Vietnam, a major competitor to Bangladesh in the global apparel business, will also increase this year for higher export of garments. In 2015-16, Bangladesh consumed 6.1 million bales of cotton. The import will also increase by 1.6 percent to 6.3 million bales in 2016-17 from 6.1 million bales last year, according to data from USDA.
India has become the biggest supplier of cotton for Bangladesh for competitive prices, quality and geographical proximity, as the country imports 50 percent of its total annual demand of the fibre from India. Bangladeshi apparel makers are bagging greater export orders from international retailers as China is no more a competitive place for them for higher costs of production. “Cotton consumption and import in Bangladesh are related to the export of garment items. Since garment exports are increasing, cotton consumption and imports will also increase,” said Mahmud Hasan Khan, vice president of Bangladesh Garment Manufacturers and Exporters Association. More than 80 percent of Bangladeshi apparel products are cotton-based, said Khan, who is also a cotton importer and spinner. The rest 20 percent include viscose, polyester and other materials. Currently, local spinners can supply nearly 90 percent of raw materials for the knitwear and 40 percent for the woven sector. For 2016-17, global production and beginning stocks are high, the USDA said. Global trade and yearend stocks will also increase. Production and yearend stock of cotton increased in the US, although its consumption and exports remained unchanged in the country.
SOURCE: The Global Textiles
Directa Plus, a producer and supplier of graphene-based products for use in consumer and industrial markets, has announced that its wholly-owned subsidiary, Directa Plus S.p.A., has acquired a 60% interest in the issued share capital of Osmotek, a company involved in the commercialisation and distribution of textile membranes. The Directors of the company believe that the EUR 60,000 acquisition will enhance the route-to-market for its textile applications. The company has assumed responsibility for the operations of Osmotek, which has been renamed Directa Textile Solutions Srl (DTS). The acquisition and launch of DTS aims to reflect the company’s strategy to utilise its know-how and IP to have a greater role in the graphene value chain. Through DTS, the company will directly promote and distribute its graphene-enhanced membrane products to textile brands and end clients.
Osmotek
Osmotek, based in Milan, Italy, was founded in 2015, to focus on the commercialisation of textile membranes. Osmotek’s focus in the textile membrane market is on sportswear, workwear, fashion, and military applications. Osmotek was founded by Novaresin, a large Italian membrane producer, and the existing shareholders of Osmotek will continue to hold a 40% shareholding in DTS post-Acquisition. Novaresin has a factory located in the North of Italy that is capable of producing 7 million metres of fabric per annum. It has a wide range of textile products and is a specialist in lamination whereby a textile membrane is laminated onto another fabric to enhance its properties, such as providing breathability or waterproofing. The Novaresin products include a new range of graphene-enhanced membranes for textile applications, which have been developed in conjunction with Directa Plus over the last year. The incorporation of the company’s graphene-based products is said to enhance the textile membrane providing additional properties to the end fabric, such as electrical and thermal conductivity, bacteriostatic characteristics and abrasion resistance.
Advantages
Under the terms of the Acquisition, Directa Plus S.p.A. will be the sole supplier of graphene-based products to Novaresin which will then produce the graphene-enhanced membranes that will be commercialised through DTS. Directa Plus will also be responsible for the DTS operations, which will be based at the company’s existing headquarters in Lomazzo, Italy. The acquisition will allow the company to take advantage of the development to date of G+ membranes undertaken by Directa Plus and Novaresin, giving the company greater control of the value and margin in the process from its development through to commercial sales. Directa Plus will also be better positioned to communicate directly with the end client and pursue its branding strategy of featuring the G+ logo on the end product and packaging.
“The establishment of Directa Textile Solutions represents a key milestone of our downstream integration strategy, and another step in the execution of our business plan. By moving up the value chain, we will be able to generate revenues from the provision of our G+ and also from the sale of the graphene-enhanced membrane to the end customer. Equally, we will be better able to communicate directly with major brands and so provide a product that meets their exact needs as well as pursuing our ingredient branding strategy,” commented Giulio Cesareo, CEO of Directa Plus.
SOURCE: The Innovation in Textiles
Business confidence among entrepreneurs in Pakistan weakened in September-October period as lingering concerns about energy challenges and inconsistent government policies hurt all the segments of trade and industry, a survey showed on Tuesday. A survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), showed a decline in business confidence across all the segments of trade and industry in the country, though it’s still in positive territory. “Overall business confidence score remains positive, but the positivity declined from 36 percent in April 2016 to only 17 percent with a drop of 19 percent,” said the survey, conducted throughout September and October. The respondents expressed concerns over energy challenges, security issues, law and order, government policies and regulations, falling exports, negative impact of new tax laws and volatile political environment. “This should be taken as a key watchout for the government,” a statement quoted Shahab Rizvi, president of OICCI as saying. “Part of this correction could be natural rebalancing of feelings with the euphoria of initial positivity cooling down.” Rizvi said another part of this correction is driven by perceived and real concerns on taxation, policies inconsistency and management of security and energy issues. “We believe quick, decisive, and visible action from the government in these areas is needed to arrest potential decline in future surveys.”
Business confidence of manufacturing sector fell 12 percent, retail sector 21 percent and services sector 28 percent, according to the survey’s findings. “The BCI survey provides a very solid incentive to the authorities to keep focus on improving security and energy situation besides streamlining governance on commercial matters,” Rizvi said. He said there is a need to increase interaction with the business community, drive a collaboration mindset, improve the overall perception, remove any communication gaps, improve ease of doing business parameters, ensure sustainability and avoid surprises on policy matters. “There is a great opportunity for Pakistan to attract investment and realise its true economic potential,” he added. The survey was conducted through field interviews in all the four provincial capitals, Islamabad and key business towns across the country. It is based on feedbacks from representatives of all business segments in Pakistan, covering approximately 80 percent gross domestic product.
Many of the survey respondents were optimistic in terms of increasing demand due to expected economic growth and ongoing major infrastructure and China-Pakistan Economic Corridor projects. “The sentiments of the leading foreign investors, represented by the OICCI members, who were part of the survey, followed the drift and posted a lessening of 9 percent confidence to come down from 55 percent to 46 percent in the Wave 13 results. Sectorial Business Confidence reflect that automobile (42 percent), financial services (37 percent), food (25 percent), and chemical (25 percent) as the most flourishing sectors followed by transport and communication (23 percent), petroleum (22 percent), non-metallic (20 percent), and retail and wholesale (17 percent) sectors. However, tobacco (-22 percent), real estate (8 percent) and Textile (8 percent) came out as the most conservative sectors in the latest survey. Cities with positive outlook were Karachi (18 percent), Lahore (29 percent), Rawalpindi/Islamabad (22 percent), and Sialkot (12 percent), while Quetta (-14 percent), Faisalabad (1 percent), Multan (4 percent) and Peshawar (8 percent) have recorded a downward confidence level. “Going forward, the business confidence for the next six months is positive but considerably less bullish than the previous April 16 survey,” the statement said. “Businesses are expecting to increase their employment in the next six months, but somewhat in lesser proportion compared to the last six months.” The statement said there was also some optimism for next six months and expectation of an increase in sales, profits and returns on investment with 35 percent indicating expansion in their businesses. “The BCI survey provides a very solid incentive to the authorities to keep focus on improving security and energy situation besides streamlining governance on commercial matters, increased interaction with the business community to drive a collaboration mind-set to improve the overall perception and remove any communication gaps,” Rizvi added.
SOURCE: The News
The government is unlikely to achieve its ambitious target to enhance exports to $35 billion per annum by 2018, even though an exercise is underway to provide some big incentives to kick start the export-oriented sector, an official source said. The government had announced a three-year strategic trade policy in April this year that has set an annual export target of $35 billion. However, the measures required for boosting exports were withheld till first July, the date when the new fiscal year starts. An official source revealed that the Ministry of Commerce has yet to receive funds from the Finance Ministry to implement various schemes announced under the Trade Policy. He said more than Rs 30 billion under the Export Development Surcharge (EDS) were withheld even though it was collected from export proceeds.
To revive the export sector, the government, the source said, was working on a proposal to provide 3 per cent rebate on yarn and grey fabric, 4 per cent on processed fabrics, 6 per cent on home textiles and knitwear and 8 per cent on garments. The proposed rebate for raw and semi-raw exports would be 4 per cent and value added sectors 8 per cent, respectively. However, the source said merely providing incentives to textile sector would not yield results as for enhancing exports the government should attract foreign investment in agriculture, farm products processing, dairy, IT and engineering sectors. Pakistan’s exports have declined from $25 billion in 2013-14 to $20.8 billion in 2015-16. The main reason attributed by Commerce Ministry is decline in commodities prices. However, in the same period the Bangladesh’s exports have increased from $31 billion to $34 billion. Even the World Bank under rates Pakistan’s performance and says that country’s having similar indicators like Pakistan have exports over $ 40 billion per annum.
SOURCE: The Pakistan Today
With Bangladesh’s massive textile industry embracing a more sustainable future, Denmark is poised to play a significant role in the green transition of the nation’s biggest industry. An increasing number of brands are favouring factories which invest in energy efficiency, water reduction and recycling, sustainable energy and other green technologies, according to the Danish Trade Council in Dhaka (DTCD). “After the Rana Plaza factory collapse tragedy, there has been immense focus on improving the conditions of the textile industry in Bangladesh,” said Søren Robenhagen, the commercial counsellor of DTCD. “In terms of building and fire safety, but also in regards to worker conditions and sustainability. That has resulted in there now being 36 factories that have been LEED certified by the United States Green Building Council, with 195 expected to follow suit in 2017.”
Train about to leave
The DTCD has established a project that aims to connect Danish green tech solutions to the Bangladeshi textile industry. With support from Denmark’s development co-operation, DANIDA, the DTCD is planning for a Danish delegation to undertake a fact-finding trip to Bangladesh in February 2017. “Energy efficiency, water cleansing and sustainable energy are exactly the areas in which Danish companies have great knowledge and are leaders in regards to effective and high quality green solutions,” said Robenhagen. “Bangladesh isn’t an easy country to operate in, but with assistance from the embassy in Dhaka there are certainly possibilities to gain access to many opportunities. You need to jump on the train now if you want to be part of the strong growth that the industry will see over the next couple of years.” The textile industry is by far the largest industry in Bangladesh, accounting for over 80 percent of the nation’s export. The country’s more than 5,000 textile factories employ over 4.2 million people and is second in the world to only China’s textile industry.
SOURCE: The CPH Post Online
Kazakhstan’s investment attractiveness is being improved in its regions. For instance, presentation of large-scale projects was held at the 8th investment forum ‘Baikonur’ in Kyzylorda. It was attended by over 400 delegates from all regions of Kazakhstan and 11 foreign countries. A number of memorandums of cooperation have been signed. The forum let the region to come to light and present interesting projects. So, 1.5 thousand hectares of land on the left bank of the Syr Darya River will be utilized to build 3 million-square-meter residential buildings, 16 schools, 12 kindergartens, healthcare, sports and culture facilities. The local authorities are planning to attract private investments to cover the construction costs.
Gunduz ELDAROGLU, CHAIRMAN, UNION OF AZERBAIJANI ENTREPRENEURS IN KAZAKHSTAN: There was a preliminary agreement that our investment and construction companies will be able to participate in the construction on the left bank that will be launched soon. It is a very beautiful, ambitious and promising project. Such cooperation requires creation of joint projects. Construction of the glass, cement and ferroalloy plants has been launched. At present, the region focuses on the use of alternative energy and industrial development of the city of Baikonur. 14 facilities of the complex will be given for private management.
Evgeny KIM, DEPUTY GOVERNOR OF KYZYLORDA REGION: We are planning to boost Baikonur’s economic and industrial development and our traditional agriculture: production and exports of rice, salt, the salt of Araltuz. We also have thriving industrial enterprises, industrial projects, all international projects. Meanwhile, Uzbek investors are ready to build their business on the territory of the industrial and special economic zones of the South Kazakhstan region. They want to invest in the development of agriculture, pharmaceuticals, textile industry, and mechanical engineering. The trade turnover between Kazakhstan and Uzbekistan will increase threefold and will exceed $5 billion. Such results are expected to be achieved through the establishment of 10 joint ventures; three projects are already being developed, the business forum participants said. Local manufacturers will be able to export their products to Uzbekistan. Border crossing procedure for joint venture participants will be simplified; additionally, an advisory council and inter-regional bus services will be launched.
Erik UTEMBAYEV, KAZAKH AMBASSADOR TO UZBEKISTAN: We have agreed to establish a number of joint ventures that will operate in Kazakhstan and Uzbekistan. Business requires more open borders and wider opportunities, and in this regard there is an understanding on the part of the Uzbek government. Events like regional forums and our investment meetings bring us together.
Shomurat SHOFOYZIEV, BUSINESS CONFERENCE PARTICIPANT FROM UZBEKISTAN: Engineering services are 35% cheaper, taxes have been reduced as well so the conditions are very attractive. Kyrgyzstan, Belarus, Russia - nearly 200 million people of the Euro-Asian area – are a great market.
SOURCE: The Kazakh TV
Federal Commerce Minister Khurram Dastagir Khan has said that the industrial cooperation between Pakistan and China was the fourth pillar of China Pakistan Economic Corridor (CPEC) project and the energy infrastructure projects would result in economic prosperity and job creation in the country. The minister said this during a meeting with China Zhongde International Investment Group led by Executive Chairman Zhao Guobin and Executive Secretary General Li Xin Sheng which called on him here on Tuesday. Zhao Guobin said that the six companies from China were interested in coming to Pakistan and investing in different sectors especially refinery, steel and energy projects. These companies were particularly interested in making investment in solar energy projects, he added. The Minister assured the delegation that the government would fully facilitate the Chinese investors and could also put them in touch with the chambers of commerce and All Pakistan Trade Association. “Pakistan is an unexplored market and offers lucrative investment opportunities in different sectors”, added the minister. He informed the delegation that Commerce Ministry would facilitate the Chinese investors in exploring opportunities in different sectors like energy, textile, sports goods and agricultural processing etc. “The best foundation for China-Pakistan relationship is economic partnership”, the minister said.
SOURCE: The Pakistan Today
Technology solutions provider for the garment industry Threadsol has inaugurated its first office in Vietnam’s Ho Chi Minh City. The Singapore based company has already offered its services to the manufacturing plants of Fashion Garments Company, a Vietnamese apparel exporter, and to Ocean Sky Apparel, which manufactures products for Old Navy and GAP. Threadsol has set up a new office in Vietnam as it is one of the biggest apparel manufacturing nations in the world, said Saurav Ujjain, principal consultant at Threadsol. It already has offices in various Asian countries like Turkey, Bangladesh, Sri Lanka and India. The garment industry of Vietnam has professional and skilled workers and it produces good quality products. With the help of advanced technologies, the country has the potential to become one of the biggest apparel manufacturers in the world, said Vietnamese media reports quoting Ujjain. Threadsol has already provided its solutions to over 85 apparel factories across the world.
SOURCE: Fibre2fashion
The Organization of the Petroleum Exporting Countries (Opec) will debate an oil output cut of 4.0-4.5% for all of its members except Libya and Nigeria next week but the deal's success hinges on an agreement from Iraq and Iran, which are far from certain to give full backing. Three Opec sources told Reuters a gathering of experts from the oil producer group in Vienna had decided on Tuesday to recommend that a ministerial meeting on November 30 debate a proposal from member Algeria to reduce output by that amount. Such a cut would bring Opec's current output down by more than 1.2 million barrels per day (bpd), according to Reuters calculations based on the group's October production, and is towards the upper end of market expectations. But sources also said the representatives of Iran, Iraq and Indonesia had expressed reservations about their level of participation in what would be the group's first supply-limiting deal since 2008.
Brent oil futures were trading flat at around $49 per barrel, paring earlier gains of around $1 a barrel. As of 1600 GMT, the meeting had yet to end. In September, Opec agreed to reduce production to between 32.5 million and 33.0 million bpd - an effort to prop up prices - from Opec's own latest production estimates of 33.64 million bpd. Opec's deal faces potential setbacks from Iraq's call for it to be exempt and from Iran, which wants to increase supply as its output has been hit by sanctions. Iraq's foreign minister said on Tuesday in Budapest that Opec should allow Iraq to continue raising output with no restrictions.
Big bargain
Iran and Iraq raised certain conditions for participating in the deal, according to sources, who were not allowed to speak on the record because the experts were meeting behind closed doors. Sources said Saudi Arabia and its Gulf allies have signalled they were prepared to cut as much as 1 million bpd of their output. The Algerian proposal would see all member countries, except Nigeria and Libya, cutting 4-4.5% from Opec's estimates of their October production with the aim of reaching a total output target of 32.5 million bpd, Opec sources have said. That would mean Saudi Arabia alone could cut up to 500,000 bpd, sources said. Opec's own estimates, based on so-called "secondary sources", are usually lower than countries' direct submissions to the organisation. Under the Algerian proposal, Iran was asked to cut 4.5 per cent from almost 4 million bpd, according to sources. But Tehran is signalling it wants to cut from higher levels of 4.1-4.2 million bpd, one of the sources said.
SOURCE: The Business Standard
The Trans-Pacific Partnership (TPP) would be meaningless without U.S. participation, Japan's Prime Minister Shinzo Abe said on Monday as U.S. President-elect Donald Trump said he would withdraw the United States from the pan-Pacific free trade deal. Abe, who attended a gathering of TPP leaders in Lima on Saturday, said there was no discussion at the meeting that other members should try to put the TPP into effect without the United States, Abe told reporters in Buenos Aires. "The TPP would be meaningless without the United States," Abe said. Trump released a video on Monday laying out actions he would take on his first day in office on Jan. 20, including withdrawing the United States from the Trans-Pacific Partnership. Trump campaigned for the U.S. presidency on a promise to pull out of the 12-nation trade deal, calling it a job-killing "disaster." Abe, who met Russian President Vladimir Putin last week to discuss economic cooperation and a decades-old territorial row, stressed at the Buenos Aires news conference his resolve to put an end to the island dispute under his leadership. "This is the problem that cannot be solved without the relationship of trust between leaders," Abe said. "I will be directly communicating with President Putin and make progress one solid step at a time." The territorial row over the chain of western Pacific islands, seized by Soviet troops at the end of World War Two, has upset diplomatic ties ever since, precluding a formal peace treaty between Tokyo and Moscow.
SOURCE: The Business Standard
An Asia-Pacific trade deal stands almost no chance of working now that US President-elect Donald Trump has pulled the plug on it, proponents of the pact said on Tuesday, opening the way for China to assume the leadership mantle on trade. Japan and Australia expressed their commitment to the pact on Tuesday, hours after Trump vowed to withdraw from the 12-nation Trans-Pacific Partnership on his first day in office, calling the deal "a potential disaster for our country." Trump's declaration appeared to snuff out any hopes for the deal, a signature trade initiative of President Barack Obama, five years in the making and meant to cover 40% of the world economy. The TPP, which aims to cut trade barriers in some of Asia's fastest-growing economies and stretch from Canada to Vietnam, can't take effect without the United States. It requires the ratification of at least six countries accounting for 85 percent of the combined gross domestic product of the member nations.
Japanese Prime Minister Shinzo Abe said "the TPP would be meaningless without the United States," even as parliament continued debating ratification and his government vowed to lobby other members to approve it. Yet even without US ratification, the TPP won't just die, a senior Japanese official said. "It just continues in a state of not being in effect," said Shinpei Sasaki of the Cabinet Office's TPP headquarters. "In the future if the United States takes the procedures and it passes Congress, that would satisfy the provisions and the TPP would go into effect."
AMENDING AGREEMENT
Other members of the 12-nation grouping could conceivably work around a U.S. withdrawal. Australian Trade Minister Steven Ciobo told reporters in Canberra countries could push ahead with the TPP without the United States by amending the agreement and possibly adding new members. "We could look at, for example, if China or Indonesia or another country wanted to join, saying, 'Yes, we open the door for them signing up to the agreement as well.'" But Singapore's Prime Minister Lee Hsien Loong said reopening negotiations wouldn't be easy. "If you sign a fresh agreement, you have to go through it again. We haven't crossed that bridge yet. We'll cross it if and when we come to that."
CHINA'S RIVAL PACT
China has pushed its own version of an Asia-Pacific trade pact, called the Regional Comprehensive Economic Partnership (RCEP), which notably excludes the United States. It is a more traditional trade agreement, involving cutting tariffs rather than opening up economies and setting labour and environmental standards as TPP would. The RCEP was a focus of attention at the Asia Pacific Economic Cooperation summit in Peru over the weekend. Tan Jian, a senior member of China's delegation at the summit, said more countries are now seeking to join its 16-member bloc, including Peru and Chile, and current members want to reach a deal as soon as possible to counter rising protectionism. China's foreign ministry said on Tuesday Beijing has an "open attitude" toward any arrangements that promote free trade in the region as long they don't become "fragmented and politicised". Foreign ministry spokesman Geng Shuang said the RCEP was an initiative led by the 10-member Association of Southeast Asian Nations (ASEAN), which China has been promoting. "We are willing to keep pushing the (RCEP) talks process with all sides to achieve positive progress at an early date," he said. Vietnam last week shelved its own ratification of TPP, after Obama abandoned efforts to push it through a lame-duck Congress, while Malaysia has shifted its attention to the RCEP.
SOURCE: The Business Standard
