The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs.3000 crores upto March, 2020. Government will provide necessary allocations for remaining period of scheme after assessment before March 2020. NEIDS is a combination of the incentives covered under the earlier two schemes with a much larger outlay.
Details:
In order to promote employment in the North East States, Government is incentivizing primarily the MSME Sector through this scheme. Government is also providing specific incentive through the scheme to generate employment. All eligible industrial units, which are getting benefits of one or more components of other schemes of the Government of India, will also be considered for benefits of other components of this scheme. Under the Scheme, the following incentives shall be provided to new industrial units set up in the North Eastern States including Sikkim: Central Capital Investment Incentive for Access to Credit (CCIIAC)
30% of the investment in Plant & Machinery with an upper limit of Rs.5 Crore on the incentive amount per unit.
Central Interest Incentive (Cll)
3% on working capital credit advanced by eligible Banks/ Financial institutions for first 5 years from the date of commencement of commercial production by the unit.
Central Comprehensive Insurance Incentive (CCII)
Reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for 5 years from the date of commencement of commercial production by the unit.
Goods and Service Tax (GST) Reimbursement
Reimbursement up to the extent of Central Govt. share of CGST and IGST for 5 Years from the date of commencement of commercial production by the unit.
Income-Tax (IT) Reimbursement
Reimbursement of Centre's share of income tax for first 5 years including the year of commencement of commercial production by the unit.
Transport Incentive (TI) 20% of the cost of transportation including the subsidy currently provided by Railways/ Railway PSU for movement of finished goods by rail. 20% of cost of transportation for finished goods, for movement through InlandWaterways Authority of India. 33% of cost of transportation of air freight on perishable goods (as defined by IATA) from the airport nearest to place of production toany airport within the country.
Employment Incentive (EI)
The Government shall pay 3.67% of the employer's contribution to the Employees Provident Fund (EPF) in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
The overall cap for benefits under all components of incentives will be of Rs. 200 crores per unit. The newly introduced scheme shall promote industrialization in the States of the North Eastern Region and will boost employment and income generation.
Source: Business Standard
New Delhi : The Cabinet Committee on Economic Affairs on Wednesday gave its approval for Central Sector Scheme "Integrated Scheme for Development of Silk Industry" for the next three years from 2017-18 to 2019-20.
Source: UNI
Exporters have urged the Reserve Bank of India to reconsider the ban on letters of undertaking (LoUs), which was triggered by the $2 billion fraud at the Punjab National Bank, as it was causing distress to players in sectors such as textiles and leather and increasing their operating costs. “With some banks deciding to cancel LoUs that have already been issued, the situation has become worse as exporters do not have enough cash to pay upfront for their imports,” said Ajay Sahai, Director-General, FIEO. An LoU is a guarantee given by one bank to another to repay a loan on behalf of a client and which allows the client to raise short-term credit to mainly pay for an import. FIEO, an umbrella body representing a number of export organisations, has written to the RBI requesting its intervention in extending help to exporters hit by the move to ban LoUs. In the letter, FIEO has asked the RBI to consider introducing LoUs with safeguards as alternative instruments were increasing the operating cost of exporters by up to 3 per cent. It also stressed that existing LoUs or LoCs (letters of comfort) should be allowed to live their normal validity as some banks have asked exporters to deposit equivalent amount in lieu of the instruments. “Although the RBI banned issuing of fresh LoUs, some banks have gone an extra mile and have cancelled LoUs already issued. Where LoUs have validity till, let us say September 2018, banks have cancelled them and asked the exporter to deposit the money in cash. “This has created a huge problem as the exporter would be expecting to make the payment only in September and it is not possible for him to make an upfront payment at once,” Sahai said. While a handful of sectors using LoUs such as textiles, leather, and gems and jewellery have been considerably hit by the ban, a majority of small exporters have not been affected by the RBI’s decision as they mostly use Letter of Credit and bank guarantee for their business.
Source: Business Line
Duty-free access to U.S., Europe a boon SCM Garments, the exports arm of the SCM Group of Companies from Tirupur, is setting up a 500-machine garment unit in Ethiopia. The company had opened the facility a couple of weeks ago with 50 machines. “The worker training and production lines are ready. We will operationalise the plant in phases. By mid 2019, we want to have all the 500 machines functioning,” said M. Ashok, chief marketing officer of SCM Garments. According to Supporting Indian Trade And Investment for Africa (SITA), a project of the International Trade Centre, about 30 garment and apparel units have set up shop in Ethiopia in the last couple of years. This includes companies from India, Bangladesh, China, Indonesia and the United Kingdom. The companies from south India include Jay Jay Textiles, Best Corporation and SCM Garments. Exports from Ethiopia have duty free access to the U.S. and Europe and there is manpower availability. Hence, SCM decided to invest in Ethiopia.
Poor infra
However, there are a few challenges too, such as poor infrastructure development and the need to train unskilled workers,” said Mr. Ashok. Raja M. Shanmugam, president of Tirupur Exporters’ Association, said garments units from the region were investing in countries such as Ethiopia considering the upfront advantages.
Source: The Hindu
Maharashtra has made it mandatory for Bt cotton seed companies in the state to submit seed samples, which they wish to sell in the market, to government- approved laboratories for getting them tested in order to obtain sale licenses. Around 30 seed companies in the state sell 100 varieties of Bt cotton seeds worth around Rs 1,000 crore. Maharashtra has made it mandatory for Bt cotton seed companies in the state to submit seed samples, which they wish to sell in the market, to government- approved laboratories for getting them tested in order to obtain sale licenses. According to top officials, seed companies will need to get the DNA and DUS tests done and submit the acknowledgement from the laboratories to the agriculture department for obtaining licenses. The step has been taken to prevent the sale of illegal varieties in the market, according to MS Gholap, director of agriculture, inspection and quality control ( I&QC). Gholap pointed out that there are three agriculture universities in the state that conducts such tests in addition to the Central Institute for Cotton Research (CICR), Nagpur and National Chemical Laboratory (NCL) , Pune. “Seed companies should submit the samples which they wish to bring to the market for testing and obtain acknowledgments from the laboratory since this is a time consuming procedure. Once the acknowledgement is shown to the department, the seed companies are eligible to receive a license to sell these varieties in the market,” he told FE. DUS testing is a way of determining whether a newly bred variety differs from existing varieties within the same species (the distinctness part), whether the characteristics used to establish distinctness are expressed uniformly (the uniformity part) and that these characteristics do not change over subsequent generations (the stability part). DNA markers are used for assessing the genetic purity. Around 30 seed companies in the state sell 100 varieties of Bt cotton seeds worth around Rs 1,000 crore. The government intends to keep a strict check on seed companies with this step following several pesticide poisoning related deaths in Yavatmal district since July last year and the pink bollworm attack on the crop. The state government formed a special investigation team (SIT) to probe companies that have sold unapproved Bt cotton seeds with a Herbicide Tolerant (HT) transgenic gene. The SIT, a resolution for which was passed on 7 February by the state government, has been asked to identify the causes that led to rampant sale of seeds with the HT transgenic gene along with approved Bt cotton seeds and recommend measures to prevent similar violations in future. Last season, there were instances of some 30-35 lakh packs of illegal varieties of Bt cotton being sold in the market. The state government had then decided to recommend an investigation by the Central Bureau of Investigation (CBI) into the illegal sale of herbicide-tolerant (HT) Bt cotton seeds in the state, linking them to the deaths in Yavatmal.
Source: Financial Express
Here’s where you can catch Ekaya’s first international outing When you mix France’s unparalleled fashion savoir faire with India’s nuanced textile heritage, you know you have a winner on your hands. Committed to reviving its Benarasi legacy, Ekaya has had an illustrious history of collaborations so far, from Abraham & Thakore to Play Clan, and their latest might just be their biggest yet. The label has come together with Fédération Française de la Creation Couture Sur Mesure – Paris to put forth an international exhibition, Consu d’Or, that translates the best of Indian handloom to bespoke French wedding wear. For its premiere international outing, owner Palak Shah chose to reimagine the possibilities of their staple Benarasis. Usually native to stiff saris, the fabric has now been reinvented to serve as the canvas for 14 French designers to create minimalistic French couture. The label’s capsule collection features a luxurious palette of ivory-hued fabrics, subtly enhanced with metallic geometric patterns to maximise the potential of traditional handwoven silks and cottons. Their signature brocades share top billing with organza, mashru silks and chikankari hand-embroidery. The designers of the Federation then adapted the textured fabrics into an array of luxurious silhouettes to create a bespoke wedding wear collection that pushes the boundaries of Indian handloom textiles. After an exciting run at the Paris Haute Couture Week in the month of February, the exhibition is now travelling to the label’s home turf and will be on display at Bikaner House, New Delhi, on March 24 and 25.
Source: Vogue India
The rupee ended little changed at 65.21 against the U.S. dollar on Wednesday 1ahead of the Federal Reserve’s policy meet outcome. The greenback’s weakness against other currencies overseas helped the domestic unit, market watchers said. The rupee opened a tad lower at 65.2175 from its overnight closing of 65.20 at the Inter-bank Foreign Exchange (Forex) market in Mumbai and largely traded in a small range with a positive bias. It touched an intra-day low of 65.23 in late morning deals and a high of 65.19 before ending at 65.21, a modest loss of just one paisa, or 0.02%.The rupee had lost 37 paise in the previous four straight sessions. Expectations that the U.S. Federal Reserve will tighten its monetary policy supported rupee sentiment initially. Meanwhile, the benchmark Sensex reclaimed the 33,000-mark by climbing 139.42 points, or 0.42% to end at 33,136.18, while broader Nifty gained 30.90 points to settle at 10,155.25. Foreign portfolio investors (FPIs) bought shares worth ₹98.44 crore on March 21, as per provisional data. The 10-year bond yield ended at 7.582% compared to its previous close of 7.616%. Bond yields and prices move in opposite directions. The RBI, meanwhile, fixed the reference rate for the dollar at 65.2162 as against previous level of 65.1993 and for the euro at 79.9616 as against Tuesday’s 80.4625. In worldwide trade, the greenback traded lower against most major currencies ahead of outcome of the U.S. Federal Reserve’s policy meet later on Wednesday night. The dollar index, which tracks the U.S. currency against a basket of six major rivals, was down 0.29% at 89.75. In cross-currency trades, the rupee rose against the pound sterling to end at 91.3288 from 91.9442 on March 20. It also strengthened against the Japanese yen to conclude at 61.28 per 100 yens from 61.33 on March 20. In forward market on March 21, the benchmark six-month premium payable in August moved down to 120-122 from 122.50-124.50 paise and the far-forward February 2019 contract also edged lower to 237-239 paise from 240-242 paise on March 20.
Source: Business Line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1389.61 |
USD/Ton |
-0.28% |
3/21/2018 |
|
VSF |
2337.07 |
USD/Ton |
0% |
3/21/2018 |
|
ASF |
2763.43 |
USD/Ton |
0% |
3/21/2018 |
|
Polyester POY |
1377.76 |
USD/Ton |
0.58% |
3/21/2018 |
|
Nylon FDY |
3663.51 |
USD/Ton |
0% |
3/21/2018 |
|
40D Spandex |
6000.58 |
USD/Ton |
0% |
3/21/2018 |
|
Nylon POY |
5969.00 |
USD/Ton |
0% |
3/21/2018 |
|
Acrylic Top 3D |
1610.68 |
USD/Ton |
0.25% |
3/21/2018 |
|
Polyester FDY |
3395.07 |
USD/Ton |
0% |
3/21/2018 |
|
Nylon DTY |
2968.71 |
USD/Ton |
0% |
3/21/2018 |
|
Viscose Long Filament |
1642.26 |
USD/Ton |
0.97% |
3/21/2018 |
|
Polyester DTY |
3829.32 |
USD/Ton |
0% |
3/21/2018 |
|
30S Spun Rayon Yarn |
3047.66 |
USD/Ton |
0% |
3/21/2018 |
|
32S Polyester Yarn |
2163.37 |
USD/Ton |
-0.22% |
3/21/2018 |
|
45S T/C Yarn |
3016.08 |
USD/Ton |
0% |
3/21/2018 |
|
40S Rayon Yarn |
2542.35 |
USD/Ton |
0% |
3/21/2018 |
|
T/R Yarn 65/35 32S |
3189.78 |
USD/Ton |
0% |
3/21/2018 |
|
45S Polyester Yarn |
2716.05 |
USD/Ton |
0% |
3/21/2018 |
|
T/C Yarn 65/35 32S |
2321.28 |
USD/Ton |
0% |
3/21/2018 |
|
10S Denim Fabric |
1.47 |
USD/Meter |
0% |
3/21/2018 |
|
32S Twill Fabric |
0.90 |
USD/Meter |
0% |
3/21/2018 |
|
40S Combed Poplin |
1.26 |
USD/Meter |
0% |
3/21/2018 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
3/21/2018 |
|
45S T/C Fabric |
0.75 |
USD/Meter |
0% |
3/21/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15791 USD dtd. 21/3/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
More than 40 African governments signed a continent-wide free trade agreement on Wednesday under which they committed to cut tariffs on 90 per cent of goods to bolster intra-African trade and boost growth. But Nigeria, Africa’s largest economy and most populous nation, was among 11 countries that refused to join the African Continental Free Trade Area (AfCFTA), underlining the challenges the initiative faces. Echoing many of the holdouts, Muhammadu Buhari, the Nigerian president, tweeted on Wednesday: “Our continental aspirations must complement our national interests”. In recent days the influential Nigeria Labour Congress has come out strongly against the plan, reportedly warning that it would devastate the country’s economy. The aim of the free trade area, which 44 nations signed up to, is to cut tariffs from their current average of 6.1 per cent to eventually zero and address myriad non-tariff barriers such as poor infrastructure and inefficient border posts. Twenty-seven countries also signed a separate agreement to allow the free movement of people across borders. Paul Kagame, the Rwandan president and chair of the African Union, described the AfCFTA as a “new chapter in African unity”. “The Africa we want is clearly visible on the horizon. And today, more than ever before, so too is the road we will travel together to get there,” he said on the eve of the signing ceremony at a summit in Kigali, the Rwandan capital. “As we trade more among ourselves, African firms will become bigger, more specialised, and more competitive internationally.” Free trade advocates argue that lower barriers to trade will make it easier for African countries to develop regional supply chains and export more finished goods rather than raw materials, as is the case at present. The UN’s economic commission on Africa forecasts that if the largest African economies joined the free trade area, intra-African trade would grow 50 per cent in the following five years. Intra-African trade, which was about $170bn in 2017, accounts for about 15 per cent of the continent’s trade, according to the African Export-Import Bank (Afrexim). This compares with 67 per cent in the EU and 58 per cent in Asia. More than 60 per cent of African exports to the EU are primary products while about 70 per cent of goods imported to the continent from the EU are manufactured. “It is hoped that the African Free Trade Agreement will help boost trade between African countries . . . but making that a reality will not be an easy task — it is a visionary project with several hurdles to overcome,” said Andrew Jones, head of Africa at Linklaters, the law firm. “There is scepticism about whether some countries are ready for this and whether the expected economic benefits will be enough to offset traditionally strong protectionist tendencies on the continent.” Benedict Oramah, the Afrexim president, said Africa had little choice but to integrate because most economies on the continent were too small to compete globally, particularly in a climate of rising isolationism. “Africa is in a very, very strong position to buck the anti-globalisation trend, to grow its market even as others protect themselves,” he said. “If we don’t do that and others protect themselves what you’re going to see is Africa descend into poverty and penury.” Twenty-two nations have to ratify the agreement for the trade deal to come into effect. AU officials hope this will happen by the end of the year. Issues such as how the new free trade area’s provisions will mesh with those of the existing regional economic blocs are still being debated. Mr Kagame said the full benefits will take time to materialise because “the creation of one African market necessarily entails a metamorphosis in how we think and act”. “The full involvement of the private sector is needed more than ever before,” he added, a reference to many African businesspeople’s complaint that governments have hitherto rarely consulted businesses on trade and development policy.
Source: Financial Time
Pakistan’s fabric exports to Turkey has been affected after the latter increased duties from 6.4 per cent to 18-26.4 per cent, giving preferential treatment to Turkish industries and negating the spirit of free trade agreement (FTA) between the two, according to Syed M Ali Nasir, acting president of the Federation of Pakistan Chambers of Commerce & Industry. Signing an FTA without any benefit to the biggest export industry of the country will be an exercise in futility, a leading Pakistani newspaper quoted Nasir as saying. Turkey has offered generalised system of preferences (GSP) plus benefit to many countries, but not Pakistan, he said. Yarn exporters in Nepal have also been facing hassles for the past few weeks after Turkey imposed stricter import provisions for Nepali yarn, alleging that Nepali traders were exporting foreign yarn under Nepali brand names. The Turkish government has also slapped anti-dumping duty on Nepali yarn based on the above allegations, which has made Nepali yarn producers anxious, according to a top newspaper in Nepal. To refute Turkey’s allegations, the Nepal Yarn Producers Association and the Nepali Government authorities recently inspected yarn producers and found that Nepali traders and yarn manufacturers had been exporting genuine domestically produced yarn. Meanwhile, a delegation from Nepal is likely to visit Turkey soon to discuss the issue with Turkish authorities.
Source: Fibre2fashion.
Though the world once looked to the United States as a leader in free trade, what it’s now getting, more often than not, is surprise and alarm—and an increasing familiarity with the who-knows-what’s-coming-next kind of trade environment. President Trump’s recent barrage of tariffs has sent the world into a frenzy, with many questions looming about what’s actually going to happen and what the resulting impact will be. Effects of the 25 percent tariff on steel imports and 10 percent on aluminum set to take effect from Friday for countries other than Canada and Mexico, plus the possible plans to impose tariffs reaching as high as 45 percent on goods imported from China in an effort to quell the country’s intellectual property problems, will likely have varied impacts by sector. But for sourcing, the industry could soon be facing higher prices for apparel and footwear. And more than that, retaliations from major trade partners could hit U.S. manufacturers in areas beyond the bottom line. The tariffs on steel and aluminum have been imposed under Section 232 of the Trade Expansion Act of 1962, a mechanism that allows the president to impose tariffs on the basis that steel and aluminum imports have threatened U.S. national security. The impending tariffs on China, however, are garnering the greatest ire in the apparel and footwear industries. The Trump Administration has said it may slap tariffs on as much as $30 billion worth of Chinese imports, employing Section 301 of the U.S. Trade Act of 1974 as his defense. A Section 301 investigation would allow the president to impose the tariffs without approval from Congress if it’s deemed that China’s intellectual property impropriety has burdened or restricted U.S. commerce. And so far, it’s looking likely that these tariffs will go forward. The White House has said it will make an announcement on the tariffs Thursday. “There’s pretty good evidence, pretty good intelligence that they’re going in and that tariffs could be pretty far reaching,” Steve Lamar, executive vice president for the American Apparel & Footwear Association, said. “…And those tariffs could include apparel and footwear.”Whether it fuels trade wars or damaging retaliations, so far seems to be of little concern, as President Trump has said trade wars can be a good thing. As Senate Finance Committee Chairman Orrin Hatch (R-Utah) said this week in staunch opposition to Trump’s plans, “…if this is the start of a trade war, the only casualties thus far appear to be American manufacturers, American farmers and ranchers, American families and America’s allies.”
What’s going to happen to prices?
The first concern for manufacturers in the face of these tariff announcements has been: how will this affect prices for apparel and footwear? To put it plainly, Lamar said, “Whenever you raise tariffs, you are passing on a hidden tax to consumers.” Companies will pay taxes at the border for tariffed goods they’re bringing in, which will make the products a little bit more expensive, and consumers will most often pick up the tab. Steel and aluminum show up in a lot of different parts of the economy and the apparel industry, like lab equipment that’s used to inspect product. “So it’s even going to show up in higher service charges,” Lamar said. “And that does have the ability to raise prices.” The scenario isn’t one an apparel industry already operating on razor thin margins for most goods can afford, and as Nicole Bivens Collinson, president of international trade and government relations for trade law firm Sandler, Travis & Rosenberg explained, the imposition of a potential additional 35 percent to 45 percent tariff on goods made in China will certainly impact prices. “There is no way the manufacturer nor the brands can absorb that high of a tariff,” Bivens Collinson said. “While the entire 35 percent may not be added on to the cost of an item, we can anticipate that at least some may be added to the cost of apparel and footwear.” The expectation from the White House, however, is that companies won’t pass the full scope of the cost increase onto consumers. “The White House view is that the companies should be able to minimize any negative impact to consumers and as any cost to them was offset by the tax break/reform,” Bivens Collinson explained. Whether things actually go that way, though, will remain to be seen. Regardless, concerns remain high in the footwear industry in particular, where duties are already among the highest paid—nearly 11 times higher, on average, than those paid on other goods, according to the Footwear Retailers & Distributors of America (FDRA). With shoe tariffs reaching as high as 67.5% and an industry that’s reliant on China for as much as 71 percent of its footwear, FDRA president and CEO Matt Priest says the question begged now is: how much is enough? “How much is enough when it comes to taxing American footwear consumers? How much is enough when it comes to increasing costs on families that can least afford it? How much is enough when it comes to tariffs that stifle innovation and American job creation? We adamantly oppose this potential action and call on the Trump Administration to explore other ways to combat intellectual property concerns in China and around the world,” Priest said. For apparel, China accounted for 41 percent of all goods imported to the U.S. last year, a substantial amount considering how high the tariffs could reach. In a letter to President Trump sent Tuesday, U.S. apparel and retail organizations said, “Because duty rates in these product categories are so high and because China is such a dominant supplier, U.S. imports from China already account for most of duties collected by the U.S. Government. In fact, duties on U.S. imports of these consumer products from China already represent more than 22 percent of all tariffs the U.S. collects from all countries on all products. And to be clear, such duties are paid by U.S. workers, U.S. consumers, and U.S. companies—not China.” What’s going to happen to U.S.manufacturers and retailers? With the potential tariffs in place, the expectation is that American manufacturing will suffer—an effect in stark contrast to what President Trump has promoted as part of his America First mission. Before Trump settled on enforcing the metal tariffs, the European Union threatened to retaliate with tariffs of their own, targeting American staples like Levi’s jeans and slapping a 25 percent tariff on imports of the product from the U.S. Were that to actually take effect, Lamar said it would hurt U.S. production, not U.S. branded items that are made and sold overseas. However, he said, “We could see U.S. manufacturing, U.S. production take a hit. Many times it’s already hard to pass the costs through and then that would result in lower sales, lower exports from the United States.” That also means sourcing from the United States will be impacted. “Why that’s important is the stuff that we make here we tend to sell abroad…we have pretty important markets,” Lamar said. “We don’t want to see any reason why those markets might be restrictive to our exports.” Adding to that, Bivens Collinson said, “I would assume that Levi’s will look to alternative suppliers outside of China in the face of increased tariffs on Chinese goods, so ultimately, those countries would increase production and exports.” Retail could also be hard hit as consumers only have so much disposable income to spend—especially when faced with costs that are climbing and salaries that aren’t. “If prices go up, total sales will decline. Shoppers who had only $50 to spend will now buy three garments rather than four or five,” Bivens Collinson said. Organizations representing U.S. brands and retailers have been vocal with Trump and the Administration on their feelings about the adverse impacts these tariffs—particularly those on goods from China—could pose. “While we support efforts to protect the intellectual property of brands and retailers, we will never support punitive tariffs based on the fiction that imports harm domestic jobs and growth. These new tariffs will not create more jobs in the United States, but instead, will harm the companies that already create thousands upon thousands of high-quality jobs in design, in marketing, in retail, in logistics, in compliance, right here in the United States,” the United States Fashion Industry Association (USFIA) said in a statement Tuesday. “And these tariffs will absolutely harm American consumers, who will face higher prices on the clothes, shoes, home products, and other essentials.” Will these new tariffs wipe out savings from the recent tax reform? Though U.S. brands and retailers may recently have had cause to celebrate with corporate taxes coming down to 21 percent from 35 percent as part of the Trump Administration’s tax reform, new tariffs could see those savings vanish as quickly as they came. “Tariffs raise prices and tariffs are inflationary,” Lamar said. “We just gave consumers, called tax payers, a big tax break…but if we then turn around and create a mechanism through tariffs that will raise the prices on them, directly and indirectly, then that more disposable income that they have will not go as far. You could say we’re giving them a tax break with one hand and taking it away with the other.” While the White House may view the tax break as “room” to absorb any increased tariffs, if companies do push the increase onto consumers, they’ll be using any extra money in their pockets to pay for the increase in goods from China. “We should note that the Congress/Administration may believe that apparel is a product which has many sources, not just China and that an adjustment to the sourcing matrix is overdue,” Bivens Collinson explained. “This action (301 tariffs) will force buyers to look elsewhere and there are many countries that could fill the vacuum of production.” The Trump Administration might also argue that sewing is a more easily movable industry from a capital investment and quick manufacturing perspective, and as such, Bivens Collinson explained, “The administration may hope that the action will ‘encourage’ manufacturing to move out of China, which is potentially one of the ultimate objectives of the president. Similarly, if production does move out, the trade deficit will decrease, which is clearly a president’s objective.” How likely are we to face a trade war? Talk of trade wars have been ongoing for months, and well ahead of Trump’s tariff announcements—though since those surfaced, tensions have certainly escalated. The European Union, Canada, Mexico and Brazil have all said they’d put retaliation measures in place in light of the metal tariffs, and China has promised to push back on both the metal tariffs and any placed on the import of its other goods. “The likelihood that China will retaliate is high. However, it is not clear that China would pursue the tariff route,” Bivens Collinson said. Trump’s steel and aluminum tariffs followed his tariffs on washing machines and solar products in January, also aimed at curbing imports from countries like China and South Korea. After that, China initiated an antidumping/countervailing duties case on U.S. exports of sorghum used for sweetener and livestock feed, Bivens Collinson explained, so China could be looking to levy other similar non-tariff barriers against the U.S. in response. “If China were to do so, it could appear to be operating ‘within’ WTO rules, while the U.S. might be viewed as operating ‘outside’ the WTO rules,” Bivens Collinson said. “We don’t really know. And can one say there is a trade war when the 301 action is limited to only China? It could be a trade dispute with China, but depending on what China does in response it may not be a ‘war’ or a ‘tariff war.’” Should it set off a trade war, however, the U.S. is poised to deal with it, and it’s not at all spooked. “We need to be prepared to act in US interests to defend free and fair and reciprocal trade,” Treasury Secretary Steven Mnuchin said this week. “There is always a risk that people reciprocate …but we are not afraid of getting into a trade war.”
Source: Sourcing Journal Online
Prime Minister Hun Sen on Wednesday pledged his commitment to preventing garment factory owners from escaping their obligations to workers by closing their factories without warning, even as the current lack of a formal system for dealing with such situations has left at least one group of affected workers in seeming limbo. Speaking to more than 10,000 garment workers in Phnom Penh’s Por Sen Chey district yesterday, the prime minister said a long-term solution would prevent owners from fleeing the country without having paid severance to their workers when their factories shuttered. He repeated his February promise to pay $4.6 million from the state coffers to cover unpaid salaries and severance for workers from nine factories whose owners had fled, and said employers should have to pay a deposit to the bank if there were irregularities in their paying of workers. “Once the employers have fled, we are responsible,” he said, alleging that some such employers went broke “gambling and then fled”. “But the government needs to be responsible.” The deposits plan echoes one long floated by labour rights advocates, which the Ministry of Labour recently pledged to put into force. It would require factory owners to make severance payments incrementally into an account that would be used to reimburse workers should their factory abruptly close. At present, officials typically sell shuttered factories’ assets to cover back pay, but workers and advocates have said the proceeds are rarely enough to cover the entire sum. However, workers at Por Sen Chey district’s Yu Fa Garment Industry factory, which closed unexpectedly in February and whose owner fled, said that they were resisting the option of selling off the factory’s assets out of fear of being short-changed. Instead, they are hoping to receive their full pay under the government’s $4.6 million pledge, though officials have so far declined to say which nine factories are eligible. Yu Fa worker Sen Sambath, 35, said unions had assured them that they were among the nine factories. “We used to bargain about selling the factory’s assets, but after prime minister announced that the government offers $4.6 million, we can’t sell those assets,” she said. She explained that other factories – such as Yu Fa’s sister factories SRE Garment Co Ltd and Yu Da, which also shuttered – had only received about 60 percent of their final salary and none of their severance from the proceeds of the assets sale. The government, she said, now considered those two conflicts as resolved – a plight she and her colleagues didn’t want to face. “That’s why we don’t accept selling the factory’s assets,” she said. William Conklin, of labour rights organisation Solidarity Centre, said those fears were “understandable” as the list of nine factories remained undisclosed. “It’d be good for the government to assure [publicly] that they are part of the nine factories,” he said, suggesting the Labour Ministry meet with the workers. Though he believed the government would pay out the promised $4.6 million, he said better solutions should be found. “The government can’t pay out all the time, it’s not sustainable,” he said. And despite agreeing that in general a deposit might help alleviate the problem, he said this might be difficult to implement. Suth Chet, a union organiser at the Cambodian Unions Movement of Workers, said the government was too slow in giving out the promised payment. “Workers from Yu Fa factory were looking forward to get their severance compensated, but they still have not received it yet,” he said. “It’s close to Khmer New Year now and workers do not have money to cover it.” Ath Thorn, president of union C.CAWDU, complained that his union had submitted a letter to the Labour Ministry asking for an official list of the nine factories, but hadn’t heard back. Labour Ministry spokesperson Heng Sour did not respond to requests for comments.
Source: The Phnom Penh Post
Multan: Cotton Commissioner Dr Khalid Abdullah has said that the government is taking all possible steps to ensure the use of latest technology to enhance cotton production. He was chairing a meeting of cotton scientists at Central Cotton Research Institute here on Tuesday. He urged scientists to focus on farmers resources and then devise them viable plans so that they could enhance production. Director Research PCCC Dr Tasawar Hussain Malik stressed cotton scientists to find out solution to dangerous pests and come up with permanent eradication of the pests. He said that water scarcity had become a major issue in the region, and scientists should develop such BT cotton varieties which could address climate challenges amicably.—APP
Source: Pakistan Observer
WASHINGTON — The U.S. apparel and footwear industry on Tuesday joined the growing list of opponents in corporate America to the sweeping tariffs that President Donald Trump is expected to impose this week on goods imported from China. The American Apparel and Footwear Association (AAFA), many of whose members rely on imports, sent a letter to the White House along with 16 other related business groups objecting to the tariffs. AAFA members include VF Corp., Tapestry Inc., HanesBrands Inc. and Ralph Lauren Corp. The group’s letter followed one sent Sunday by 45 trade groups objecting to Trump’s expected announcement implementing the new tariffs. The AAFA letter also followed one sent Monday from more than 20 large retailers opposing the tariffs. Additionally, more than 80 shoe companies wrote a letter echoing the anti-tariff sentiments. The Trump administration is said to be preparing tariffs against Chinese information technology, telecommunications and consumer products in an attempt to force changes in Beijing’s intellectual property and investment practices. Washington could impose more than $60 billion in tariffs on goods ranging from electronics to apparel, footwear and toys. A so-called Section 301 action would allow Trump to impose unilateral tariffs on China in response to a conclusion by the U.S. government that the Chinese had violated intellectual property rules. The tariffs would not need congressional approval. Tuesday’s letter, which was also signed by Council of Fashion Designers of America and the Footwear Distributors and Retailers of America, focuses on specific problems that could stem from the tariffs, including higher consumer clothing costs.
Source: The Japan News
Ethiopia has earned $68.5 million in revenue from the export of textiles and garments over the last eight months of the current Ethiopian fiscal year, which began on July 8, 2017.Ethiopia’s government sees the textile and clothing supply chain as one of the country’s key targets for growth, and aims to generating $30 billion from the export of garment and textile by the year 2025. Revenue this time has seen a 23.1 percent increase compared to revenue earned in the same period last year, but is 50 percent below the target, Bantihun Gessesse, Ethiopian Textile Industry Development Institute communications affairs director, told APA in an interview on Wednesday. According to Gessesse, $12.6 million of the revenue was secured by 58 local companies, whilst foreign-owned companies generated the balance. Managerial and technical limitations, inadequate supply of inputs, failure to meet international criteria and shortage of skilled manpower were among the limitations attributable to unsatisfactory export performance in the sector, he added. Ethiopia’s government wants to diversify exports from agricultural productS to strategic sectors like textile and garment manufacturing, through opening more than ten industrial parks in different parts of the country. Ethiopia’s long history in textiles began in 1939, when the first garment factory was established. Based on Ethiopian country data, in the last five to six years, the textile and apparels industry have grown at an average of 51 percent, and more than 65 international textile investment projects have been licensed for foreign investors, during this period. In 2016, Ethiopia was second in terms of attracting foreign direct investment in the textiles and garments industry, next to Vietnam. Last year, the government inaugurated three textile and apparel industrial parks, as part of its efforts to become Africa’s manufacturing hub through attracting export-oriented foreign companies.
Source: Journal
AUSTRALIAN Wool Innovation (AWI) will be dropping carpet manufacturers from the Woolmark brand soon to focus its attention solely on the apparel market. AWI chief executive officer Stuart McCullough said at the WAFarmers Vitality: 2018 annual conference that wool growers owned the Woolmark brand “outright” and because of that they would be able to use it to market their wool, improving traceability in the supply chain. Mr McCullough said the Woolmark brand was a “quality assurance mark” recognised around the world and by dropping manufacturers it would be solely an “Australian apparel Woolmark”. “In the next little while I will knock off the carpet manufacturers and not allow them to use the Woolmark,” Mr McCullough said. “I want to start bringing it back to be only an Australian apparel fibre mark. “We supply 90 per cent of the world’s apparel wool from here – 90pc. “I want that mark to represent Australian apparel wool.” Carpets were typically about the 35 micron grade – which was well above the WA average of 19 micron, according to Australian Wool Trading Authority figures. Mr McCullough said there wasn’t much carpet sold with the Woolmark logo on it globally in terms of total volume of wool and AWI was “at the point where branding on a carpet was at the point of a diminished return, whether that be fiscal with the licensing or reputational”. He said Woolmark was registered in 38 jurisdictions and it was something that allowed AWI to communicate with generations Y and Z. “They are about to get spending power in the near future,” Mr McCullough said. “How we are planning to (communicate with them) is to connect the wool grower with the label. “We have already got those labels hanging on garments around the world at that end of the supply chain, but gens Y and Z are increasingly interested in understanding, not only where the fibre came from, but the process it took up the supply chain – and reading that on a tag. “They are even interested in reading about what happens to that garment after they purchase it and discard it – so a real cradle to grave reference on that particular garment. “I am going to give every wool grower in Australia a grassier Woolmark license – in other words if you are a wool grower you can use that Woolmark. “You can use it on wool packs, wool bales and that is the other end of the traceability. “We have got brands at that end of the supply chain. “Should you be interested in getting a free licence then you send us your details or you log into Wool Q and you will be given a free Woolmark license and we will send you a stencil and you can use that on your wool packs. “I would love to see bales of wool heading up the highway or in the mills overseas with your mark on it, not just lying in among every other wool bale.” Mr McCullough said there was a good part of the supply chain already registered as Woolmark licencees, “most of them are actually spinners, weavers and knitters right now”. “They are the ones that register for the wool mark - so we can cover off on many of these ticks already,” he said. “We want to make sure that it is technology first – in other words there are huge opportunities in near-field technology where we would like to think that someone could swipe their phone over the cuff of their garments and the near field communication would be able to read precisely what path that fibre has taken through the supply chain. “Some of this technology is already available – its operating on android and IOS platforms – so you can see how that might impact on the profiling of that particular fibre.”
Source: Aiden Smith
