The Union textiles minister Smriti Irani has said that the Geographical Indication (GI) tag helps not only weavers and artisans, but also the consumers. The GI tag is an assurance of getting the right product at the right price, directly from the weaver or artisan. Irani also highlighted the importance of building consumer awareness on this matter. Noting that many of the challenges in GI are faced after obtaining GI registration, the minister called for the need to build a wider appreciation of the value of GI among all stakeholders, in order for better implementation of the legal provisions. She said this while addressing the inaugural session of the two-day 'National Workshop on Promotion of Unique Textiles and Handicrafts for GI and Post-GI Initiatives', being held under the aegis of the ministry of textiles in New Delhi. Irani announced that a GI help-desk would soon be set up in every service centre run by the government for weavers and artisans. This would help bridge the information gap between centre and the field, and would assist weavers and artisans in availing the benefits of GI. This is being done to maximise governance, in line with the government's developmental philosophy of 'Sabka Saath Sabka Vikaas'. She also launched a helpline for handicraft artisans. Recalling that the problems of 6,707 weavers have been resolved so far through the Bunkar Mitra helpline for handloom weavers that the Handloom Census has started, and that weavers will be given identity cards at the next National Handloom Day. The minister also observed that the government has decided to give 75 per cent fee subsidy to the children of weavers and artisans of BPL families, for pursuing school education under NIOS and university education from IGNOU. Irani assured the audience that the points raised during the workshop will be taken up by the Textiles Committee for the consideration of the government. The ministry of textiles would take up issues requiring changes to the legal framework with the ministry of law & justice. The minister also released a Compendium of Indian Handicrafts & Handlooms covered under GI, which has been compiled by NCDPD, on behalf of ministry of textiles. The compendium contains list and details of all 149 Indian handicrafts and handlooms covered under GI, till April 2017. The compendium also consists of the list of awardees of GI-tagged handicraft and handloom products. This is a unique and first-of-its-kind compilation. Reports of the Textiles Committee on traditional handwovens of Andhra Pradesh and Telangana, and Karnataka were also released by Irani. She also handed over GI certificates to three registered proprietors, who are producers of Jamnagari bandhani, Jamnagar, Gujarat; Kuthampully dhoties and Set Mundu, Kerala; Karvath Kati sarees and fabrics, Maharashtra. Minister of state, textiles, Ajay Tamta said that the more widespread adoption of GI would be highly beneficial to the handicraft and handloom sectors, especially in protecting and preserving the rich cultural heritage associated with them. He said that the workshop is a step in this direction, which would contribute to the social and economic empowerment of handloom weavers and handicraft artisans. The artisan helpline would enable empowerment of the last person on the street, through provision of required information.
Source: Fibre2fashion
NEW DELHI: Even as the government has been quite cautious of taking its final call on the fate of genetically modified (GM) food crops in India, its think-tank NITI Aayog. The Aayog, in its recently released three year (2017-2020) action agenda said, "Thehas pitched for opting transgenic seeds arguing its importance in ensuring agricultural growth in the country. The Aayog, however, favoured only those varieties which are developed by Indian research institutions and companies. GM seeds Noting that the GM seeds have gained "increasing acceptance among farmers around the world", the Aayog said the Indian farmers also enthusiastically embraced these seeds in the only crop (Cotton) which they have been permitted so far -- an observation which was vehemently opposed by the RSS-linked economic policy think-tankhave emerged as a powerful new technology promising high productivity, improved quality and lower use of fertilizers, weedicides and pesticides in the last one to two decades." Swadeshi Jagran Manch. The SJM national co-convenor Ashwani Mahajan told TOI that it was wrong to say that the farmers had accepted(SJM). Bt Cotton The Aayog, however, admitted the concerns where farmers can be exploited by the MNCs through monopoly of GM seeds. It, therefore, suggested that the concern can be "readily addressed by limiting GM seeds to those varieties discovered by our own institutions and companies". enthusiastically. "The farmers were forced to adopt it under monopolistic conditions created by multi-national companies (MNCs). The Bt Cotton has, in fact, become a main reason for farmers' suicides. It is surprising that the Aayog has been pitching for adopting GM seeds without looking into these aspects". The SJM, however, opposed the Aayog's stand with Mahajan even accusing the government's think-tank of serving the interests of MNCs. Without taking names, he said, "There are interested parties sitting in the Aayog. They had been pitching for GM seeds even before joining the think-tank". The Manch, which has representation of RSS leaders in its working committee, alleged that the Aayog had come out with suggestions in favour of the GM seeds without adequately consulting scientists and farmers and without even taking states on board. Mahajan said, "The Aayog had consulted only those scientists who have been in favour of GM crops. Similarly, it called the farmers' groups for consultations quite selectively". At present, only Bt Cotton (GM variety of cotton) is allowed for commercial cultivation in India. Though the country's biotechregulator - Genetic Engineering Appraisal Committee (GEAC) - had cleared many transgenic varieties of GM food crops for scientific field trials, it has, so far, not permitted their commercial release. An application of GM mustard, developed by a Delhi University institution, has, however, been in an advanced stage of clearance.
Source: The Times of India
Farmers and agriculture experts are expecting a major increase in the area under cotton cultivation this season. The state Agriculture Department has set a target of 4 lakh hectares to be brought under cotton cultivation in eight districts of the Malwa belt. Last year, the area under cotton cultivation was 2.56 lakh hectares. Dr Jasbir Singh Bains, Director, Agriculture, who had come to visit some fields here today, said, “A number of farmers who used to grow paddy have shown their interest in sowing cotton this year. The trend shows that there is no effect of whitefly now. Till today, 20 per cent of the expected area has been brought under cotton cultivation. We expect nearly 75 per cent area to be covered by May 15.” The cotton sowing season lasts from April 15 to May 30. Experts said the cotton yield and prices had been good last year, which is a major reason why farmers were opting for cotton this year. “We had last year deployed our supervisors to keep a check on whitefly. They will be deployed this year too,” said an expert. Paddy growers have been advised not to sow paddy before June 15. “The state has 105 of 146 blocks under dark zone due to the depleting water level. If the farmers will sow paddy in advance, it will need more water,” said Dr Jasbir Singh. The team also inspected the availability of seed, water and power in the fields. “We had come on the directions of Satish Chandra, Additional Chief Secretary (Development), and found that all arrangements were in place. However, at a few places like Kot Shamir in Bathinda, farmers lodged complaints of power and water supply shortage. We will take up the matter with higher authorities,” said Dr Jasbir Singh. Meanwhile, the Agriculture Department under its high density plantation technique is giving a subsidy of Rs 500 per acre to cotton growers.
Source: The Tribune
Revenue Secretary Hasmukh Adhia is hopeful of a smooth transition to the GST regime and says it will help domestic firms to become more competitive apart from streamlining the taxation for all business activities. “Unlike in other countries, the transition to the new tax regime would be smooth here because there are multiple points of taxation in the country. Hence, the possibility of sudden spurt in inflation is remote,” said Adhia, who is spearheading the implementation of the Goods and Services Tax. He was speaking at a conference on GST organised by the Federation of Gujarat Industries and the chief commissioner, Central Excise, Customs & Service Tax, Vadodara zone, here last evening. Explaining GST’s importance for giving a boost to the manufacturing sector, he said, “Cascading taxes along with non-availability of input credit meant that domestically produced goods found it harder to compete with imported ones. “GST is a multi-point tax on value addition with seamless input tax credit,” he said. Adhia’s comments come amid calls from some experts and a section of the industry for deferring the GST roll-out to September-October instead from July 1. “There will be a level playing field for all and this will benefit the domestic units,” Adhia said. Eight state Assemblies have passed the State Goods and Services Tax (SGST) Bill since the beginning of April. The GST Council, the top decision-making body headed by Finance Minister Arun Jaitley, approved the model SGST Bill at its 12th meeting on March 16. The next GST Council meeting will be held in Srinagar on May 18-19 to fix the tax rates of various commodities.
Source: Financial Express
Finance Minister Arun Jaitley on Monday said the goods and services tax (GST) will not have an inflationary impact since the tax on goods may actually reduce. Terming the current indirect tax structure in India as "fairly complicated", he assured there would be no cascading impact of tax on tax. "I don't anticipate this to happen significantly. If at all, this maybe a transient impact...This would even in the long run bent down inflation and tax rates a little," Jaitley said on being asked about the impact of the indirect tax reform on inflation at the investors’ roundtable organised by the Confederation of Indian Industry here. Countries such as Canada, Australia, and New Zealand have seen one-time increase in inflation post GST implementation, which normalized in a year. While the tax on goods is not expected to increase, that on services will go up. "As far as services is concerned, obviously they will go up marginally and therefore, there will be some impact on this. So, goods and services may react a little differently," Jaitley said. The GST, which seeks to replace multiple central taxes and state taxes with a single levy, is scheduled to be introduced from July 1 but the constitution permits the government time to go up to September 15 for its roll out. "It looks like we will be able to begin on schedule....there could be some small hiccups in the beginning but I think it's understandable," he said. The finance minister chaired GST council is scheduled to finalise and approve the rates of different .
Source: Economic Times
Industries in Tamil Nadu feel that complex legal and regulatory frameworks come in the way of collaborating with Japanese companies, according to a report.
Industry expectations
The report, An Economic Survey Report – Tamil Nadu, on Indian industry’s expectations from Japanese companies in India, was released by the Indo-Japan Chamber of Commerce and Industry in association with Grant Thornton LLP and AK Mylsamy and Associates. It covered 122 companies with a turnover of ₹50 crore or above, headquartered in Tamil Nadu and had done business with Japanese companies in the past. According to the report, most companies feel that Japanese companies rank high when it comes to technology and performance, especially in the manufacturing sector. Almost 36 per cent of the Indian companies have shown interest in technical collaboration and 45 per cent in establishing joint venture partnerships with Japanese companies, the survey found.
Complex tax system
There is a huge thrust on collaborating with the Japanese on the technology front and Indian companies are willing to go the extra mile to attract them. This includes the Indian companies’ willingness to adopt their processes and welcoming their collaboration in producing intellectual property, according to the report. But, the challenge seems to be a complex tax regime in India. More than 50 per cent of the respondents felt that tax regime should be simplified and the regulatory framework improved. The companies also feel that more importance should be given to doing business with India easier.
Contribution to FDI
Tamil Nadu accounts for about 7 per cent of total foreign direct investment to India at ₹1.25 lakh crore between 2000 and 2016. It ranks second in terms of the number of Japanese companies with 1,457 establishments, next only to Haryana. The report states that understanding expectations of Indian companies from Japanese counterparts will help in effective involvement.
Source: Business Line
India’s exports for March 2017 were $29 billion, a level not seen over the last two years. Imports were close to $40 billion, another multi-year high. India’s external trade has been inching higher over the last few months and this revival in India’s trade is just a manifestation of the overall improvement in global trade. India’s external trade is greatly dependent on the external demand conditions and global trade. Two of the lead indicators for global trade, the Baltic Dry Index and the World Trade Organization’s indicator have been signalling that 2017 could be a little better than last year as far as global trade goes. Here’s a closer look at how these indicators work and what they portend.
BDI reverses higher
The Baltic Dry Index, constructed by the Baltic Exchange, captures the changes in the cost of shipping various raw materials. Data is captured from shipping companies and across major routes to construct the index. The Baltic Dry Index is the composite index that takes into account data from three sub-indices, the Baltic Capesize, Panamax and Supramax indices. These three indices show the movement of shipping cost in different kinds of dry bulk carriers, commonly used in global shipping. Capesize ships are the really large ships with load-carrying capacity or 100,000 deadweight tonnage (DWT) or greater. Some of the largest ships in this category can carry loads of more than 400,000 DWT. The capacity of Panamax ships is between 60,000 and 80,000 DWT. Supramaxes are the smallest ships, with load carrying capacity below 60,000 DWT. Supramaxes are better equipped for loading and unloading goods, making them more suitable for smaller ports. The BDI is considered a lead indicator of world economic growth and trade. Since these ships are used to transport raw materials, including coal, steel, cement and agri commodities, the charges and the quantity that is shipped are quite sensitive to global demand. Past data indicates that this indicator has been able to warn about impending slowdown in trade, in advance. For instance, the BDI peaked at 11,440 in May 2008 and declined from there to hit a low of 715 by November 2008. But global trade continued to grow in 2008, increasing from $14.2 trillion in 2007 to $16 trillion in 2008. It was only in 2009 that trade contracted to $12.5 trillion. The fall in BDI preceded the contraction in global trade in this period. While there were intermittent rallies in the BDI since 2009, they have not been able to move much beyond 4,000. The commodity prices crash of 2016, in fact, dragged the index to a low of 290 by February 2016. The good news is that the index is up more than threefold since this low, trading at 1,109 on April 17, 2017. It hit 1,297 in March, a level not seen since November 2013. The expansion in BDI augurs well for global trade as well as for India’s imports and exports.
The WTO indicator
The World Trade Organization also constructed a lead indicator in 2016 that is expected to give advance signals about contraction or expansion of global trade. The WTOI considers readings on data including export orders, international freight volume reported by the International Air Transport Association (IATA), total container volume captured from a dozen major shipping ports, automotive vehicle sales and/ or production figures in major markets, customs data on electronic components trade and customs data on trade flows for agricultural raw materials. If the WTOI reading is at 100, it indicates that trade growth is in line with the long-term trend. If the reading is below 100, it will mean that trade growth is slowing and above 100 will signal a pick-up in global trade. The latest available reading of the WTOI is for November 2016, which is at 102. This implies that the first few months of 2017 will see a small uptick in growth, above average.
WTO statistics
Besides these lead indicators, forecasts put out by the WTO too seem to be turning a trifle positive. In its trade outlook released this calendar, the WTO said, “Global economic growth has been unbalanced since the financial crisis, but for the first time in several years, all regions of the world economy should experience a synchronised upturn in 2017. This could reinforce growth and provide an additional boost to trade.” The WTO has forecast that global trade will expand by 2.4 per cent in 2017. But given the uncertainty caused by short-term economic and political developments, the WTO has placed the growth in the range of 1.8 to 3.6 per cent this calendar. Trade growth in 2018 is forecast in the range of 2.1 and 4 per cent.
Source: Business Line
The government will implement the Foreign Trade Policy (FTP) before the July 1 roll-out of the goods and services tax (GST). The ongoing mid-term review of the FTP, which was earlier scheduled for completion by September, would be done before the GST to incorporate changes necessitated by new tax norms, Commerce and Industry Minister Nirmala Sitharaman (pictured) said on Saturday. The FTP had targeted $900 billion exports by 2020. Senior government officials had earlier said the figures could see a downward revision. However, speaking at an industry consultation meet organised by trade think tank RIS, Sitharaman on Saturday said there was no suggestion to do so. On issues raised by exporters regarding the treatment of current incentive schemes for exporters, she added that a specific committee would be formed that would submit its suggestions to the GST Council. The government will implement the foreign trade policy (FTP) before the July 1 roll-out of the goods and services tax (GST). The ongoing mid-term review of the FTP, which was earlier scheduled for completion by September, would be done before the GST to incorporate changes necessitated by new tax norms, Commerce and Industry Minister Nirmala Sitharaman said on Saturday. The FTP (2015-2020) had targeted $900 billion exports by 2020. Senior government officials had earlier said the figures could see a downward revision. However, speaking at an industry consultation meet organised by trade think tank RIS, Sitharaman on Saturday said there was no suggestion to do so. On issues raised by exporters regarding the treatment of current incentive schemes for exporters, she added that a specific committee would be formed that would submit its suggestions to the GST Council. Exporters are now allowed duty-free import of goods that go into the manufacturing of export products. However, under the GST, they will have to pay the duty upfront and apply for refunds later. The government had promised that 90 per cent of refunds would be issued within the first seven days with 46 per cent of additional refunds if payments were late. However, exporters had argued that significant working capital would be locked up under this system, Sitharaman said. The other issue is that under the GST if exempt goods become inputs for products used finally for exports, export credits will not be provided for those products. The three-member committee will include Commerce Secretary Rita Teaotia, the head of the committee on duty drawbacks, GK Pillai, and a finance ministry official. The committee will submit its findings to the GST Council, which will have the final say. The GST Council is set to meet in Srinagar on May 18-19 to fix the tax slabs for most goods and services. Sitharaman said traders had suggested that the FTP should not focus solely on export promotion but look at trade as a whole and use the rupee as the preferred currency for trade. “Trade in dollars, even with immediate neighbours like Myanmar and Nepal, pushes up transaction costs by 18-29 per cent. The scope of rupee trade in this regard is great,” said Sachin Chaturvedi, directorgeneral of RIS. On services trade, Sitharaman stressed that Mode 2 issues, involving health and education would be in focus in the FTP. This will overshadow Mode 4 issues dealing with cross-border movement of trained professionals. Rising protectionism has seen the US, Australia and Singapore place restrictions on Indian professionals, mostly in the technology sector, over the past few months. The ongoing mid- term review of the FTP, which was earlier scheduled for completion by September, would be done before the GST to incorporate changes necessitated by new tax norms
Source: Business Standard
In the report, the panel stated that it was imperative to ensure smooth movement and clearance of goods across borders within the shortest time and with minimum costs.
HIGHLIGHTING SPECIFIC lapses in the implementation of trade facilitation measures for imports and exports, a Parliamentary panel has slammed the “lackadaisical approach” of the Commerce and Textile ministries in addressing the issue. In a report, the panel also noted that the lack of last-mile connectivity has adversely affected India’s trade facilitation efforts. “The Committee (is) dismayed to note the lackadaisical approach of Department of Commerce and Ministry of Textiles in initiating/implementing trade facilitation measures. The committee desire(s) the Cabinet Secretary to convene meetings of the various ministries/departments regularly besides the meetings of the NCTF (National Committee on Trade Facilitation) to monitor their progress and contribution,” the report said. The Public Accounts Committee (PAC) report, which was finalised by a sub-committee headed by BJP member Nishikant Dubey, has also advocated “stringent steps” against those who have not adhered to timelines. The report, on the performance of import and export trade facilitation through Customs ports, was submitted to Lok Sabha Speaker Sumitra Mahajan on April 29 by the then PAC chairman K V Thomas of the Congress. Thomas was replaced as PAC chief by Mallikarjun Kharge, also of the Congress, on May 1. “The Committee (is) dismayed to note that lack of infrastructure facilities like port to road connectivity, rail infrastructure to move containers to inland containers depots (ICD) and non-coordination among all the stakeholders for improving the infrastructure are adversely affecting the trade facilitation measures initiated by the government,” the report said. The panel recorded its remarks after examining a report by the Comptroller and Auditor General (CAG) on the implementation of trade policy, circulars, instructions and data gathered from 2010-11 to 2013-14 from various stakeholders. In the report, the panel stated that it was imperative to ensure smooth movement and clearance of goods across borders within the shortest time and with minimum costs. It expressed concern over the CAG audit having revealed “complex and arduous documentations process leading to inordinate delays in the various stages of export and import clearances, delays in allotment of berths by port authorities and bottlenecks in reduction of transaction costs”. It recommended that a regulator be appointed to control operations of all shipping lines, and observed that railway freight charges should not be increased to subsidise other segments as this made Indian products non-competitive in the world market. Before finalising the report, the panel had accepted submissions from senior officials of Ministry of Textiles, Department of Commerce, Directorate General of Foreign Trade (DGFT), Ministry of Shipping, Ministry of Road Transport and Highways, Railway Board, FIEO and FICCI. In the report, the panel recommended that Department of Commerce or DGFT should also analyse the impact of measures taken for trade facilitation and prepare a plan for the next five years to reduce transaction costs further. Referring to two key infrastructure projects in Chennai, the panel said, “In view of the delays in executing Chennai-Ennore Port Connectivity Project and Four Lane Elevated Link Road from Chennai to Maduravoyal due to differences with the state government of Tamil Nadu, the Committee (is) of the considered opinion that an agreement with state governments for such projects be signed first before taking up projects to avoid such cases of backtracking by the state governments at the later stages.” In March, Prime Minister Narendra Modi had reviewed the progress of several infrastructure projects in south India, including the Chennai-Ennore port road connectivity project, which was conceived nearly 20 years ago.
Source: The Indian Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 47.85 per barrel (bbl) on 05.05.2017. This was lower than the price of US$ 48.82 per bbl on previous publishing day of 04.05.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3077.27 per bbl on 05.05.2017 as compared to Rs. 3135.01 per bbl on 04.05.2017. Rupee closed weaker at Rs. 64.31 per US$ on 05.05.2017 as compared to Rs. 64.21 per US$ on 04.05.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 05, 2017 (Previous trading day i.e. 04.05.2017) |
Pricing Fortnight for 01.05.2017 (April 12, 2017 to April 26, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
47.85 (48.82) |
52.36 |
|
(Rs/bbl) |
3077.27 (3135.01) |
3374.60 |
|
|
Exchange Rate |
(Rs/$) |
64.31 (64.21) |
64.45 |
Source: PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1080.18 |
USD/Ton |
-0.33% |
5/7/2017 |
|
VSF |
2266.19 |
USD/Ton |
0% |
5/7/2017 |
|
ASF |
2290.84 |
USD/Ton |
0% |
5/7/2017 |
|
Polyester POY |
1098.30 |
USD/Ton |
-0.98% |
5/7/2017 |
|
Nylon FDY |
2493.83 |
USD/Ton |
-1.15% |
5/7/2017 |
|
40D Spandex |
5364.63 |
USD/Ton |
0% |
5/7/2017 |
|
Polyester DTY |
1333.91 |
USD/Ton |
-0.54% |
5/7/2017 |
|
Nylon POY |
2798.31 |
USD/Ton |
0% |
5/7/2017 |
|
Acrylic Top 3D |
5814.10 |
USD/Ton |
0% |
5/7/2017 |
|
Polyester FDY |
1362.91 |
USD/Ton |
-0.53% |
5/7/2017 |
|
Nylon DTY |
2377.84 |
USD/Ton |
0% |
5/7/2017 |
|
Viscose Long Filament |
2464.83 |
USD/Ton |
0% |
5/7/2017 |
|
30S Spun Rayon Yarn |
2885.30 |
USD/Ton |
-0.25% |
5/7/2017 |
|
32S Polyester Yarn |
1681.88 |
USD/Ton |
0% |
5/7/2017 |
|
45S T/C Yarn |
2682.32 |
USD/Ton |
0% |
5/7/2017 |
|
40S Rayon Yarn |
1841.37 |
USD/Ton |
0% |
5/7/2017 |
|
T/R Yarn 65/35 32S |
2247.35 |
USD/Ton |
0% |
5/7/2017 |
|
45S Polyester Yarn |
3030.29 |
USD/Ton |
-0.48% |
5/7/2017 |
|
T/C Yarn 65/35 32S |
2348.84 |
USD/Ton |
0% |
5/7/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
5/7/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
5/7/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
5/7/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
5/7/2017 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
5/7/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14499USD dtd. 5/5/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
China’s April exports rose 8.0 percent from a year earlier, missing analysts’ expectations, while imports expanded 11.9 percent, official data showed on Monday. China’s exports and imports rose in April but missed analysts’ expectations, as domestic and foreign demand faltered and commodity prices fell. China’s April exports rose 8.0 percent from a year earlier, missing analysts’ expectations, while imports expanded 11.9 percent, official data showed on Monday. That left the country with a trade surplus of $38.05 billion for the month, the General Administration of Customs said. Analysts polled by Reuters had expected April shipments from the world’s largest exporter to have risen 10.4 percent. In March, exports rose 16.4 percent. Imports were expected to have climbed 18 percent, after rising 20.3 percent in March. Analysts were expecting China’s trade surplus to have widened to $35.50 billion in April from March’s $23.93 billion. China’s imports and exports are expected to stabilise and improve in the near future, the Ministry of Commerce said last week in its quarterly report on trends in the country’s foreign trade. Foreign trade is expected to face a better environment in 2017 compared with the past two years, the commerce ministry report said. Exports to the United States rose 11.7 percent in April from a year earlier while imports from the U.S. rose 1.5 percent. China’s trade surplus with the U.S. was $21.34 billion in April, up from $17.74 billion in March, according to data from China’s customs bureau. China’s large trade surplus with the United States has drawn attention from U.S. President Donald Trump. He pressed Chinese President Xi Jinping at a recent meeting in Florida to help reduce the trade gap between the two countries. While the Trump administration did not label China a currency manipulator in the Treasury Department’s most recent report on currency manipulation, it has sought other fronts in which to tackle its large trade deficit with Beijing. Last month, Trump launched a trade probe against China and other exporters of cheap steel into the U.S. market. The U.S. Commerce Department said last Tuesday it would open investigations into possible dumping and subsidisation of imports of tool chests and cabinets from China and Vietnam. As Trump moves to put America’s interest first and pull out of multilateral trade agreements, China has positioned itself as a supporter of free trade. Finance leaders of Japan, China and South Korea last week agreed to resist all forms of protectionism in a trilateral meeting last Friday, taking a stronger stand than G20 major economies against the protectionist policies advocated by Trump.
Source: Financial Express
Maybe you wouldn’t be caught dead wearing Ivanka Trump’s apparel, but many buy into the fashion image. It’s a $100 million business, sustained by exploited labor. According to the Fair Labor Association: “Workers at a factory in China, used by the company that makes clothing for Ivanka Trump’s fashion line and other brands, worked nearly 60 hours a week to earn wages of little more than $62 a week.” Of course, they also lack benefits and endure unsafe working conditions, neo-slavery that we don’t tolerate here. Those dollar-an-hour wages are the main reason 300,000 textile and apparel jobs were lost in the U.S. between 2001 and 2011. Even though coal mining employs about as many people now as it did in 2001, many Trump supporters believe the myth that Obama killed the industry. They are told that, by sacrificing the environment, the glory days of coal will return. That’s nonsense. Notice how, by distracting us with coal mining mythology, we don’t discuss the fact that many more jobs have been lost in the less hazardous textile/apparel industry. Here’s where the Border Adjustment Tax can help. According to the National Association of Manufacturers, in 2014, the cost of US regulatory compliance is $6 per labor hour. The federal minimum wage is $7.25 per hour. Assuming it takes an hour to make a sweater in China, that same labor costs at least $13 in the US. Therefore the BAT ought to be at least $12. By equalizing labor costs this eliminates a primary incentive to offshore manufacturing. Of course BAT won’t be enacted — the GOP lacks approval from their corporate masters (such as Wal-Mart, seller of Trump-branded merchandise) to pursue it. Even if they had the guts to defy them, they lack the organization or credibility to pass it. The Tea Party Freedom Caucus will oppose a new tax. Democrats won’t consider supporting tax legislation until the president releases his income tax returns. It’s unfortunate because a return of textile and apparel manufacturing jobs could lift thousands out of poverty and reduce their dependence on government assistance. Isn’t this what the working class expected from their renegade president? The failure to seriously debate a BAT illustrates why we need to get rid of both major parties. We can’t expect the people who created our problems to solve them.
Source: Sun Community News
ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said exports, investment and remittances continue to fall hitting forex reserves which will result in another IMF loan. Continued fall in exports since three years despite efforts of the government and private sector will result in lost export markets, it said. Exports are falling while imports have gone out of control due to liberal import regime which is creating serious problems for economy, said Dr. Murtaza Mughal, President PEW. The export officials waste time and money and later blame energy crisis to absolve themselves of all the responsibility, he added. With ever-increasing imports, the trade deficit in the first nine months of the current fiscal year reached $23 billion. Exporters have been demanding that the rupee should be depreciated to boost exports but government was not convinced of the exporters’ argument. It may be mentioned that textile is a vital part of our economy which comprises 55 percent of total exports. Pakistan’s total export used to be 25 billion dollars out of which 13 billion dollars plus was textiles share. Now exports have been reduced to 20 billion dollars with textiles export reduced to 11 billion dollars. In the past, the government depreciated the local currency to support exporters, but the move did not yield desired results therefore policymakers are not ready to repeat the mistake which is laudable. Situation can be changed by ending adhocism, promoting SME sector, appointment of professionals on key posts and taking some unpopular decisions.
Source: The Daily Times
Labour unrest is still high in the country's ready-made garment (RMG) sector, although the number of such incidents has declined since 2013, according to recent studies. Such incidents were high in medium-sized garment units, followed by small and large-sized ones, the findings revealed. A survey conducted by Bangladesh Institute of Labour Studies (BILS) revealed that a total of 237 industrial disputes and workers' actions took place last year while some 122 workers' actions were recorded in the RMG sector, followed by 16 in transport sector and 12 in jute mills. Out of 237, some 73 were demonstrations while 41 were highway blockades, 28 each was work abstention and human chain, 23 were strikes and 22 were mass gatherings or rallies. Another study carried out by private think tank Centre for Policy Dialogue (CPD) showed that in 2016, the RMG sector witnessed at least 115 incidents of labour unrest. The number was 198 in 2013 and most of them linked to post-Rana Plaza issues such as compensations and unpaid wages. "Incidents were high in medium-sized industries and BGMEA member-factories, followed by small and large-sized ones," said Khondaker Golam Moazzem, research director of CPD. Both the studies revealed that Dhaka, Narayanganj and Gazipur were most labour unrest-prone areas that accommodate labour-intensive garment industries. Over 39 per cent of labour unrest took place in Dhaka, followed by 28.28 per cent in Gazipur and about 25 per cent in Narayanganj, Mr Moazzem showed in his study report. The report also showed that incidents were higher in Bangladesh Garment Manufacturers and Exporters Association (BGMEA) member factories while the percentage was comparatively low, 2.53 per cent, in the port city-- Chittagong. Unpaid wages, allowances and bonuses have the highest frequency in all the years though plummet from 2014 onwards, the report said, adding that other major issues such as worker mistreatment issues and labour law conflicts follow similar trends in that the numbers tend to steadily fall then rise sharply from 2015 onwards. The findings showed a rise in the incidents of unrest during the period between June and July and the main reason behind workers' demand for festival bonuses and salary arrears. Regarding unrest in Chittagong-based garment factories, sources concerned said the cost of living is not as high as Dhaka in the port city while they attribute locals' influence and less union activities to relatively less unrest there. They, however, admitted that the labour rights situation is poor there, although workers don't take to the streets demanding ensuring their rights. Garment is a big and labour-intensive sector, labour leader Nazma Akter said, adding that unrest takes place in demand for payment of wages, arrears and other rightful benefits. Mr Moazzem explained that a large part of incidents is related to financial issues which are not necessarily related to 'fixing wages'. "Most of financial issues indicate that poor financial management and poor human resources (HR) management of RMG enterprises caused most of the labour unrest," he added. Higher incidents in medium and small-sized factories perhaps indicate their weak HR and financial management, he said and suggested strengthening financial management particularly cash flow management and improving HR management to handle worker related concerns. Partly disagreeing with such management, Mahmud Hasan Khan, vice president of BGMEA, said many medium-sized factories have strong financial and HR management while the situation is reverse in some big units. Regarding unrest in RMG sector, he said some 3,500 garment factories are currently in operation in the country. Such unrest will further decline as a platform for grievance mechanism has recently been formed, he said expressing his hope.
Source: The Financial Express Bangladesh
Inspired by bright global market prospects for smart textile products, the Taiwan Textile Research Institute has helped establish the Taiwan Smart Textiles Alliance, bringing together related manufacturers as well as government and academic research units to develop innovative products, set up industrial standards and explore markets. A study released by the U.S.-based Grand View Research predicted that smart textiles will enjoy compound annual sales growth of over 35 percent in the global market between 2016 and 2024, with the market scale to reach US$9.3 billion by 2014. The report also found that Asia will be the fastest growth market in the world, with a compound annual increase of 38 percent during the period. The textiles alliance is seeking to cash in on the great sales potential for smart textiles. Launched in June 2016, the group now comprises around 40 member firms in different fields, including upstream materials suppliers, textile makers, electronics and systems suppliers, accreditation organizations, designers and marketing channels. The alliance is also aiming to build a sound ecosystem for the development of smart textiles in Taiwan. It is cooperating with related industrial associations, including the Taiwan Electrical and Electronic Manufacturers Association, to set up Chinese National Standards for smart textiles and is collaborating with accreditation institutes to establish relevant accreditation regulations and criteria. With the help of the Taiwan Textile Research Institute, six alliance members will showcase a variety of smart textile products at a special pavilion at the COMPUTEX 2017, which will run May 30-June 3 at Taipei Nangang Exhibition Center and Taipei World Trade Center. The exhibits will include power-saving wireless physical sensing transmission modules, interactive textile fabrics and other smart textiles embedded with electronics components, from Ruentex, Everest Textile, AiQ/Tex-Ray Industrial, Sunstar Taiwan, Nine Million Tech and Maxtek Go-Go.
Source: The China Post
