The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 29 AUGUST, 2018

NATIONAL

INTERNATIONAL

Increasing imports a serious concern for MMF industry: SRTEPC Chief 

Mumbai : The imports of MMF  textiles has increased 26% in  value terms (US$) during April  – July 2018 as compared to the  corresponding period of previous  year  according to the latest  provisional data released by the  Directorate General of  Commercial Intelligence and  Statistics (DGCI&S).  During the period under  review  imports of MMF yarn  fabrics and made-ups together  have gone up by 27.45% and  import of Man-made staple fibres  increased by 19.01% during the  period. The growth in imports of RMG made out of MMF was about 47% during April – July  2018 as compared to the  corresponding period of previous  year.  Keeping a close  observation on the import data  Mr. Narain Aggarwal  Chairman  SRTEPC opined that  this substantial growth in  imports of Man-made staple  fibres and MMF based textiles  into India is not a good sign for  the Indian MMF textile segment.  Government needs to act  on this surge in imports with  remedial and protectionist  measures before it’s too late  he  emphasised.  SRTEPC Chief suggested  that as the First Aid to this grave  import situation  Government  should immediately consider  increasing the effective rates of  basic customs duty (BCD) on  MMF  MMF yarns and all the  left over tariff lines of MMF  knitted fabrics falling under  chapter 60.  The effective rates of BCD  on Man-made fibres and MMF  yarns such as polyester  viscose  and others need to be increased  to 10% from the existing 5% and  on nylon fibres and yarns the  Effective Rates of BCD need to  be increased to 15% from current  7.5%.  With increased Effective  Rates  the MMF textile segment  will be safeguarded and it will  also be in support of the  Government’s “Make in India”  initiative  Mr. Aggarwal  mentioned. In the export front also the latest data on MMF textiles does  not show reasonably good trends. As per DGCI&S provisional data exports of MMF textiles during April – July 2018 was US$ 1820.  49 mn. against US$ 1738.26 mn. achieved during the same period  of previous year  witnessing a growth of 4.73%. However export  of Man-made staple fibre has declined by 1.51% during April –  July 2018.  Commenting on exports  Mr. Aggarwal said that “I am  hopeful of better export trends in the coming quarters and expect  that exports of Man-made staple fibres will also recover well.”  Rising MM textile and apaprel  imports a concern: SRTEPC  Continued from Page 1 Col 6 However  Government needs to suitably address the current GST  hitches such as refund of ITC on input services  refund of GST/  IGST on capital goods  refund of embedded taxes from state as  well as Central government  refund of other accumulated ITC  double taxation on ocean freight  ROSL  LBT  etc.  Another important factor which is likely to yield further  positive results on exports is the depreciating Indian Rupee. Indian  currency has depreciated about 9% against US dollar in last few  months thereby making our exports cheaper and creating a  competitive environment  Mr. Aggarwal mentioned.

Source: Tecoya Trend

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India: Imported Textiles get costlier

In the era of globalization where trans-border trade is increasingly becoming the need of the hour, the law of the land monitors that the same does not obstruct the conduct of business of the locals. The Customs Act, 1962 came into force with the objective of regulating the trade overseas. In furtherance of the aim to promote “Make in India” mission, the Government of India has doubled the customs duty on the import of 328 textile products vide its notification date August 7, 2018. The tariff charges have increased from the existing rate of 10% to 20% under Section 159 of the Customs Act, 1962. By this step, the Government aims to strengthen the domestic market and reduce the import from the neighbouring nations entering the Indian apparel market. As per the Confederation of Indian Textile Industry, since Bangladesh has zero duty access for all apparel products, the Chinese fabric is entering India duty free through Bangladesh. With a view to prevent the same, the textile and garment industry has represented to the ministries of commerce and textiles to make it mandatory for Bangladesh under the South Asian Free Trade Area (SAFTA) agreement to use either their own or Indian yarn and fabric in their garments to be able to supply to India at zero duty. It has also urged for the introduction of “rules of origin” for imports from Bangladesh in the said regard. While the proposal remains under the consideration by the Government, taking recourse to such stricter measures would prevent the Chinese fabric from being made available in the Indian market without the payment of the requisite duties by using Bangladesh as channel. Also, this helps to encourage the domestic industrialists to avail and expand the scope of the textile industry.

Source: Lexology.com

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Government to vet GST, income tax and transfer pricing filings to find leakage

Beginning this year, multinationals will also have to submit details about their global operations to the Indian tax authorities. The government is planning to compare data filed by companies with different departments to detect discrepancies and check whether there’s been any leakage in tax collected, raisin7g the prospect of even greater scrutiny, said people with knowledge of the matter. Goods and services tax (GST) returns, income tax filings and transfer pricing submissions will be analysed and synchronised in a manner that hasn’t been possible before, they said. Multinationals including banks, fast-moving consumer goods (FMCG) companies, tech firms and automobile manufacturers fear that such cross-referencing of data will lead to increased scrutiny and eventually higher tax outgo. Such comparisons weren’t possible earlier as the data wasn’t uniform nor was it organised in manner that would allow such matching. It was also the case that various departments didn’t ordinarily share data. Many companies have been urgently asking tax advisers to advise them on how to file returns so that they don’t end up being slapped with excessive levies. Some transactions such as royalty payments, CEO salaries and valuations of Indian operations will now come under the scrutiny of not just the indirect tax department but also the direct tax and transfer pricing departments. “It is necessary for businesses to take a comprehensive view while filing their GST annual returns this year, considering their submissions in their income tax and transfer pricing filings, as these might be compared on various parameters,” said Deloitte India partner MS Mani. For instance, when it comes to transfer pricing, the tax department uses Function Assessment and Risk (FAR) analysis to determine how much margin should be allowed and the extent of the transfer pricing demand that can be raised from a multinational. However, under GST, the valuation rules for these transactions between the Indian subsidiary and its foreign parent may result in additional taxes. Tax experts said there will be several implications for companies, mainly multinationals, and that imports by companies would be scrutinised. “The focus is also on the import data shown by various companies and we see that there could be complications going ahead as companies may struggle with one department while trying to accurately comply with others and this could also lead to litigation,” said Abhishek A Rastogi, partner at Khaitan & Co. The situation could also give rise to a tug of war between different tax departments, said experts. One such area could be import of services from related parties. “Transfer pricing authorities would press for a lower value (so that the Indian company has appropriate profits and income tax in India) whereas the GST authorities may press for a higher value so that appropriate GST is collected, in the case of sectors which are excluded or exempt from GST wherein credit of GST is not available,” said Abhishek Jain, tax partner, EY. Beginning this year, multinationals will also have to submit details about their global operations to the Indian tax authorities. Under the Base Erosion and Profit Shifting (BEPS) framework, multinationals are required to submit details about their operations in every country, revenues earned, margins, and number of employees hired among other things. This is mainly to determine if companies are using any tax structures and escaping taxes. With regard to imports, transactions such as reverse charges, where money for services incurred by one entity or company is paid by another, will also come under scrutiny. “Often, many companies, including several multinationals would intentionally or unintentionally submit different figures to different tax departments,” said a senior finance executive with a multinational. “Now that these would be tallied would mean tax demand could emerge from anywhere, either GST, income tax or even transfer pricing.”

Source: The Economic Times

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India set to stress on RCEP in Singapore on Thursday after PMO nod

India is set to stress its commitment to the proposed Regional Comprehensive Economic Partnership (RCEP) pact at a crucial trade ministers meet beginning Thursday in Singapore, though a final call on the issue will be taken by the Prime Minister's Office. Commerce Minister Suresh Prabhu, who skipped the last such meeting, will attend the August 30-31 event. “While he is set to assuage the concerns of other nations on India's commitment to the pact, we will stick to our position on differential tariff cuts that single out China,” a senior commerce department official said. The future of the mega trade bloc, under planning since 2012, has been thrown into confusion since July when a large number of ministries in India opposed the talks in the face of growing opposition to the deal from domestic industry. Disagreement among ministries had led to the government reportedly setting up a four-member group of ministers headed by Prabhu to advise the Prime Minister on whether to continue with or withdraw from the 16-member RCEP negotiations. No date has been set for the next meeting of ministers but the government hopes to clear the confusion on RCEP by November, when Prime Minister Narendra Modi is expected to visit Singapore for the Asean summit, a senior official said. Despite other ministries and stakeholders voicing concern on the RCEP, the commerce ministry will continue to bat for it, citing the advanced stage of negotiations and the expected benefits for India's services exports, sources said. Last week, the commerce secretary briefed his counterparts across ministries, including finance, steel, textile and defence at the Cabinet Secretariat on the current state of negotiations and the way forward, sources said. The RCEP is a proposed pact between 10 Asean economies and six others with which the grouping currently has free-trade agreements (FTAs) — New Zealand, Australia, China, India, Japan and South Korea. So far, 23 rounds of talks have concluded, apart from five minister-level meets. There has been significant pushback against the proposed deal from the domestic manufacturing and export sectors. They argue existing FTAs with Malaysia, Japan and South Korea are grossly unfavourable to India. Civil society groups have also voiced concerns over possibly drastic reductions in agricultural tariffs, making Indian products uncompetitive, as well as looser investment norms, exposing the country to litigation from foreign commercial interests. The Asean bloc, which wants the deal done as soon as possible, have increasingly become concerned and a diplomat from the region said that the Singapore meet may become a definitive turning point. RCEP is expected to be the world's largest regional trading bloc, with nearly 45 per cent of global population and combined gross domestic product of $21.3 trillion.

Source: Business Standard

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India Plans to Fill Gap Left by U.S. Exports to China

New Delhi: India has drawn a list of goods it can export to China, replacing U.S. exports that have become costlier in light of the trade spat between the world’s two biggest economies, according to a person with knowledge of the matter. The South Asian nation has identified more than 40 products, including fresh grapes, cotton linters, flue-cured tobacco and alloy steel seamless boiler, where it’s in a position of advantage to replace or capture U.S. trade market share with China, the person said asking not to be identified as discussions are internal. Boosting exports will help India reduce a $63 billion trade deficit it runs with China, which is also New Delhi’s largest commercial partner. A study found that India is strong in its capability to export about 20 products such as frozen bovine meat and almonds, but it faces market-access issues in China. Two calls made to India commerce ministry spokesperson’s mobile phone weren’t immediately answered. China recently started purchasing soybean from Brazil after slapping a 25 percent tariff on the oilseed’s shipments from the U.S. as the trade tensions between the two nations intensified. Meetings between Chinese and U.S. officials last week made little headway, setting the stage for the U.S. to push ahead with the next round of tariffs on up to $200 billion worth of Chinese goods. The Indian study shows at least 80 more items have potential for exports to China. The government has instructed its departments and industry bodies to work out strategies to ramp up production in sectors where India has a clear advantage. The commerce ministry has asked the embassy in China to be an enabler, while offering business-to-business meetings for Indian exporters interested in that market, the person said. “One of the major impact of the trade war would be that there will be a lot of re-organisation and reconfiguration of supply chains,” Amitendu Palit, a senior research fellow at the Institute of South Asian Studies, National University of Singapore, said by phone. “There is a possibility that India may become part of some production chains,” he said. It is still too early, however, to say that India will have immediate gains due to the trade war, Palit said.

Source: Financial Express

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Punjab to relax norms for intra-state goods’ movement

The Punjab government will soon allow a hassle-free movement of textile items for job work within the state and save thousands of small and medium enterprises (SMEs) from the trouble of getting e-way bills by enhancing the exemption limit from Rs 50,000 to Rs 1 lakh. Textile and apparel value chain thrives on job works, which was hampered because of mandatory e-way bill requirement for items valued more than Rs 50,000. An exemption from mandatory e-way bill will help textile clusters in Ludhiana, Amritsar and Jalandhar.      “A decision has been taken on this matter. It will be implemented after the government issues a formal notification, which is expected soon,” an official source said. Under the Goods and Services Tax (GST) rules, ferrying goods worth over Rs 50,000 within or outside a state requires securing an electronic-way challan (e-way bill) through prior online registration of the consignment. States can tinker with e-way bills only for intra-state movement of goods. “We are going to follow the Maharashtra model, which has already abolished requirement of e-way bill for transportation of hank, yarn, fabric and garments meant for job work,” the source said. Officials, however, say the Punjab government may trim down the number of items. Maharashtra gave relief to its textile industry from July this year, which allows intra-state movement of specified items within 50 km for job work.  Officials said, the Punjab Cabinet gave its nod to allow hassle-free movement of textile goods meant for job work and also extended the limit of intra-state e-way bill from Rs 50,000 to Rs 1 lakh on Monday. Tamil Nadu, Maharashtra and West Bengal are among other states to raise such limit. Punjab Pradesh Beopar Mandal president Piara Lal Seth said the proposed move would help the traders and manufacturers from un-necessary burden and paper work. “The textile and garment industry is largely dependent on knitting, embroidery, printing and dyeing units, but all job workers are not that well-educated. They were facing problems in generating e-way bills. The decision of the state government will provide a sigh of relief to them,” said Superfine Industries’ managing director Ajit Lakra. The government’s decision is also prompted by the fact that several people were avoiding generating e-way bills by using horse-carts (tongas) for transporting goods as non-motorised vehicles do not require e-way bills for transporting goods. “Many industrialists had started transporting furniture, yarn, ready stocks above Rs 50,000 through the tongas to avoid e-way bills/taxes. Respite will be given to those who are doing business in a transparent manner,” said Federation of Punjab Small Industries Associations (FOPSIA) president Badish Jindal.

Source: Tibuneindia.com

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India, Vietnam to boost trade

External Affairs Minister Sushma Swaraj today held wide-ranging talks with her Vietnamese counterpart Pham Binh Minh and discussed steps to boost bilateral trade, investment, maritime and defence cooperation. Swaraj visited Vietnam on the first leg of her four-day two-nation tour aimed at deepening India's strategic cooperation with Vietnam and Cambodia, the key countries in the ASEAN region. She was received by Minh at the government guest house of Vietnam, the official Twitter account of the Embassy of India in Vietnam said in a tweet. "Deepening our Comprehensive Strategic Partnership! EAM SushmaSwaraj and Foreign Minister of Vietnam Pham Binh Minh led delegation level talks where trade, investment, maritime and defence cooperation were discussed," Ministry of External Affairs spokesperson Raveesh Kumar tweeted. Swaraj co-chaired the 16th meeting of the Joint Commission along with the Vietnamese foreign minister. Earlier, addressing the 3rd Indian Ocean Conference here yesterday, Swaraj said India and Vietnam are connected not only by the common waters but also by a shared vision for peace and prosperity. Hanoi is therefore a particularly appropriate setting to discuss developments in the Indian Ocean and the Indo-Pacific region, she said. Swaraj said India and Vietnam have agreed to further strengthen cooperation in the maritime domain, including on anti-piracy, security of sea lanes and exchange of white shipping information. "We also agreed on the importance of the early conclusion of an ASEAN-India Maritime Transport Cooperation Agreement. In this context, we intend to accelerate the establishment of direct shipping routes between the sea ports of India and Vietnam," she said. Yesterday, Swaraj met Japanese Foreign Minister Taro Kono and Bangladeshi Planning Minister A H M Mustafa Kamal.

Source: Financial Express

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Odisha leaders in city demand Surat-Bhubaneswar flight

Surat: Leaders of Odisha community in the Diamond City have made a strong demand with Union petroleum minister Dharmendra Pradhan and Airports Authority of India (AAI) chairman for introducing a direct flight between Bhubaneswar and Surat. Odisha chief minister Naveen Patnaik had recently written to Union civil aviation minister Suresh Prabhu and railway minister Piyush Goyal requesting them to convince private airline companies to provide direct air connectivity between Bhubaneswar and Surat and also introduce two daily trains between Behrampur and Surat. Odisha Samaj leader Bhagirath Bahera told TOI, “Surat has a large number of migrant Odisha population and the only mode of transport for them is railways. We have requested AirAsia and other airlines to start flight services to Odisha.” Bahera said Odisha Samaj is organizing a two-day long ‘Odisha Parva’ in the city which will be inaugurated by Dharmendra Pradhan on September 2. “The textile industry is one of the major suppliers of saris and dress material to Odisha. There are many wholesalers in Odisha, who have to travel by trains to reach Surat for placing orders. If direct air connectivity is in place, then textile business will further increase,” Bahera added.

Source: Times of India

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Global Textile Raw Material Price 28-08-2018

Item

Price

Unit

Fluctuation

Date

PSF

1642.59

USD/Ton

0.45%

8/28/2018

VSF

2148.57

USD/Ton

0.69%

8/28/2018

ASF

3050.53

USD/Ton

0%

8/28/2018

Polyester POY

1730.59

USD/Ton

0.85%

8/28/2018

Nylon FDY

3431.84

USD/Ton

0.43%

8/28/2018

40D Spandex

5059.77

USD/Ton

0%

8/28/2018

Nylon POY

3563.84

USD/Ton

0%

8/28/2018

Acrylic Top 3D

5536.42

USD/Ton

0%

8/28/2018

Polyester FDY

1943.25

USD/Ton

1.15%

8/28/2018

Nylon DTY

3138.52

USD/Ton

0%

8/28/2018

Viscose Long Filament

3226.52

USD/Ton

0%

8/28/2018

Polyester DTY

1935.91

USD/Ton

1.15%

8/28/2018

30S Spun Rayon Yarn

2786.54

USD/Ton

0%

8/28/2018

32S Polyester Yarn

2383.23

USD/Ton

0%

8/28/2018

45S T/C Yarn

3050.53

USD/Ton

0%

8/28/2018

40S Rayon Yarn

2551.88

USD/Ton

0%

8/28/2018

T/R Yarn 65/35 32S

2595.88

USD/Ton

0%

8/28/2018

45S Polyester Yarn

2947.87

USD/Ton

0%

8/28/2018

T/C Yarn 65/35 32S

2551.88

USD/Ton

0%

8/28/2018

10S Denim Fabric

1.37

USD/Meter

0%

8/28/2018

32S Twill Fabric

0.84

USD/Meter

0%

8/28/2018

40S Combed Poplin

1.17

USD/Meter

0%

8/28/2018

30S Rayon Fabric

0.66

USD/Meter

0.44%

8/28/2018

45S T/C Fabric

0.71

USD/Meter

0.21%

8/28/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14666 USD dtd. 28/8/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Could Cheaper Energy Costs Mean Your Clothing Would Be 'Made-in-America?'

Chinese employees work on socks that will be exported at a factory in Huaibei in China's eastern Anhui province on June 22, 2018. - Beijing on June 19 accused Donald Trump of 'blackmail' and warned it would retaliate in kind after the US president threatened to impose fresh tariffs on Chinese goods, pushing the world's two biggest economies closer to a trade war. (Photo by - / AFP) / China OUT (Photo credit should read -/AFP/Getty Images) Odds are your shirts and pants are tagged with “made in China.” But one possibility to emerge from Donald Trump’s would-be tariffs on consumer goods is that they could get produced in the United States. Labor would still be a lot more expensive. But energy costs could be notably less. No doubt, the garment and textile industries have different positions on tariffs. The textile folks — those who deal in raw materials — like the idea of a 25% tariff on all imported clothing because they think it might cause some manufacturers to rethink their missions and move home — closer to where the raw materials are discovered. In other words, they build capital intensive textile mills with little labor costs and relatively cheaper energy prices. If the garment factories that assemble those textiles were in the United States, their logistical costs could shrink. Making clothes in China and then shipping them back to retailers, in theory, is not the most efficient process. “Although the upstream fiber, yarn, fabric and dyeing and finishing steps are heavily automated, automation technology lags for the last stage of the apparel supply chain, cutting and sewing," says Lloyd Wood, director of public affairs for the National Council of Textile Organizations, in an interview with this writer. "This inefficiency is why so many U.S. garment making jobs have been off-shored to chase cheap labor." Moving closer to home "benefits not only the upstream U.S. supplies of textile components, but it also boost the competitiveness of cut and sew operations in the NAFTA and DR-CAFTA regions, the U.S. textile industry’s most important export markets," he adds. "Moreover, tariffs would encourage more R&D focus on automating apparel assembly, technology showing very promising potential to re-shore jobs.” He notes that the cost of labor in China has been rising and other countries could potentially do it better and cheaper — even the United States. Logistically, it may make sense to move such garment to the states, he adds, noting that doing so in Asia requires longer lead times — a risky proposition for retailers that are dependent on fashion trends. A localized supply chain can avoid that pratfall. Unless China begins to automate its processes and to reduce its costs, Wood says that it is inevitable more clothing makers will relocate to the Western Hemisphere. And that will mean, he adds, new investments in factories and machinery — if the tariffs were to go into place. Wood points to Tianyuan Garmets based in eastern China: it is building a $20 million factory with 330 robots to make T-shirts in Little Rock, Arksansas. “The ‘made in America’ label will soon grace T-shirts produced by Chinese company in Arkansas — at a cost of 33 cents per shirt.” Meanwhile, the Chinese textile manufacturer Keer Group is doing something similar. Its president, Zhu Shanquing told CNBC that while its labor costs are greater than they are in China, its energy, land and raw materials are cheaper in the United States. Therefore its total cost of production is less. He is in the process of expanding a facility in South Carolina that will employ 500 people. "In the U.S., land, electricity and cotton are all much cheaper," Zhu told CNBC. "My production cost per ton of textiles is 25% lower [there].” But he said that if this is to become trendy, U.S. policymakers must set up an “eco system” to provide financial incentives and distribution lines to retailers. Trump, of course, first said he would impose tariffs totaling $34 billion on goods imported from China. China then responded in-kind and Trump eventually upped the ante to $200 billion that would include many types of consumer goods, including those in the garment industry. That industry fears that the fight will continue to escalate, with Trump potentially doubling the current figure.

Supply Chains Uprooted

In fact, those in the garment sector — the ones who stitch together all the yarn and fabrics and whose plants are typically in China — say that the tariffs are destructive. Clothing manufacturers will raise their wholesale costs while retailers will either have to absorb it or hand it over to reluctant shoppers. Most clothing makers are based in China because of its sophisticated supply network that cannot be replicated in other countries. While other Southeast Asian countries could provide cheaper labor, their unit cost per item is greater because of such shortcomings, says Rick Helfenbein, chief executive of the American Apparel & Footwear Association, in an interview with this reporter. “The labor rate may be cheaper in other countries but the unit per operator goes down,” Helfenbein says. “You spend more time to get more garments out the door. Other countries struggle with it.” Look at the facts: The top five sources for apparel are China at 41.5%, Vietnam at 12.5%, Bangladesh at 7%, Indonesia at 5% and India at 4%. Most of the apparel association’s members use contractors based in China because of its high quality delivery and supply chains. The apparel executive notes that the United States imports $505 billion in total goods from China while exporting $130 billion to China. But Helfenbein quickly adds that prudent companies do not look at trade imbalances when they locate factories  rather, they examine the supply chain network and the cost to both make and transport end products to their final destination. The United States lacks this type of garment manufacturing infrastructure and reduced energy, land and raw material costs do not make up the difference. That said, tariffs would raise prices throughout the supply chain, which would have major economic consequences and an “adverse effect on our industry.” Indeed, some of the world’s largest retailers sent Trump a letter saying that higher tariffs on China would raise prices, hurt working families and damage the American economy. The companies, which collectively say that they create $1.5 trillion in sales and employ tens of millions, include: CostCo Wholesale Corp., Levi Strauss, WalMart, Target Corp., Macy’s Inc. and Kohl’s Corp. “Importers and retailers are trapped in their supply chains,” says Helfenbein, although everyone has a China strategy to diversify their risks. Just the talk of imposing tariffs, however, is causing consternation and is now increasing costs that will eventually get passed through to consumers. “The president has picked a school yard fight with each and everyone of our major trade partners: China, Canada, Mexico, Japan, Germany and South Korea,” says Helfenbein. “But he believes it plays well politically. “This is sort of like a bad soap opera,” he continues. “We are being sucked into the system and we see no sign the president will let up. Just the discussion is enough to force retailers to raise prices. We are baking the tariffs into the system whether or not Trump is successful. Prices will go up regardless. It has created a vicious cycle with no end in sight.”

Source: Forbes

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High hopes of Philippines textile sector from likely USFTA

The Philippines trade and industry secretary Ramon Lopez recently said the government will try to help the textile and garment industry through a possible free trade agreement (FTA) with the United States. He said this at the first ever ‘Philippine Garment Leader Goods Industries & Fabric Expo’, in which 81 domestic and foreign companies participated. Around 20 domestic companies participated, reflecting the current state of the sector. Initial talks for the FTA are already under way to find enough mutual benefits to start formal negotiations, , according to a newspaper report in the country. Export performance in the sector dropped after the abolition of textile quotas by the World Trade Organisation in 2005. As a result, many factories closed and some faced downsizing. Lopez said companies can apply under the Investment Priorities Plan, which provides incentives such as income tax holiday on preferred kinds of businesses that help reach inclusive growth. It is not clear, however, if any company in the garment and textile industry applied under the IPP, even though the list includes manufacturing activities. Garments might be eventually included under the US generalized system of preferences (GSP), a trade arrangement allows market access for numerous Philippine exports, he added. (DS)

Source: Fibre2fashion

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Philippines : PH befriending ailing Turkey to save garment industry

The Philippines wants a trade agreement with Turkey to take advantage of the latter’s weak currency, a top official said. Trade Undersecretary Ceferino Rodolfo said the Philippines was looking into the possibility of forging a preferential trade agreement (PTA), or reduced tariffs on certain products, in a bid to help revive the local garment industry. He said this in a forum last week during the first ever Philippine Garment Leather Goods Industries & Fabric Expo. “We’re looking specifically at possibly sourcing textiles for our garment manufacturers and exporters here,” he said. He told reporters the idea of a PTA was first brought up in February, when both countries had their first Philippine-Turkey Joint Committee on Economic and Technical Cooperation (JCETC). He said the Philippines had yet to reach out to Turkey anew. The Turkish lira has suffered major walloping in recent days following the country’s trade standoff with the United States. While this unfolded into a contagion, albeit what some believe was temporary, countries like the Philippines could take advantage by accessing cheaper import. “It actually presents an opportunity for our garment manufacturers because suddenly, Turkish textiles have become more price competitive with the depreciation of their exchange rates. These are the types of things that we need to go into and go into fast,” Rodolfo said. The pact could introduce a zero-tariff regime. Rates are between 10 percent and 20 percent currently. Officials and representatives of the textile and garment industry said they had been having a hard time competing. Spinners, which turn raw material to yarn then to fabric for garment factories, have dropped in numbers. Out of more than 30 spinner companies, only two have remained, industry officials said. The local industry was considered a sunrise industry during the 1990s, according to DTI-attached agency Board of Investments (BOI). Export performance, however, dropped since the abolition of textile quotas by the World Trade Organization in 2005. Garment and textile enterprises in the Philippines which relied on quotas underwent difficulties leading to closure of factories and downsizing, the BOI said.

 

Source: Inquirer.net

 

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480 International Exhibitors Ready For Cinte Techtextil 2018

 

HONG KONG — Cinte Techtextil China opens its doors next week, with around 480 exhibitors from 22 countries and regions preparing for another successful showcase of the world’s leading textile innovations. Leading international and domestic brands will feature in halls N1 – N3 at Shanghai New International Expo Centre from September 4-6, making Cinte Techtextil the ideal place to make connections and gain insight into Chinese and Asian market trends. The technical textile industry in the Asia region, and China in particular, has been growing steadily and is predicted to continue doing so. China’s total output of technical textiles and nonwoven products is estimated to account for 30 percent of global production by 2020, and double that of 2013. This high potential for growth, achieved through investments worth billions of dollars, has drawn attention from European exhibitors, who are set to travel to the region for Cinte Techtextil. This year’s European Zone will feature around 30 exhibitors from countries including Austria, France, the Netherlands, Sweden, Switzerland and the UK, while further exhibitors can be found in national pavilions from Belgium, Germany and Italy. In addition to this, the Czech Republic will present its debut pavilion, showcasing exhibitors with solutions for technical yarn, fabric processing and nonwoven fabrics. In addition to this, exhibitors from 12 more countries and regions will present their latest innovations to the market. These include domestic and international exhibitors from China, Hong Kong, India, Indonesia, Israel, Japan, Korea, Saudi Arabia, Taiwan, Thailand, Turkey and the US. Belt and Road: a success story for Buildtech. Following higher regulations and quality standards that aim to exceed Western levels, demand is high in China for production machinery. What’s more, with the national nonwovens market displaying particularly fast growth, Cinte Techtextil has attracted some of the world’s leading nonwoven and weaving machinery brands. The fair will showcase leading global exhibitors across 12 application areas. Two areas to watch out for include Buildtech and Mobiltech, which are both performing well in Asia and specifically in China. The Belt and Road initiative brings Buildtech a great deal of benefits through China’s enormous investments in global infrastructure. Adding to this, China’s automobile production has been increasing 3 percent year-on-year, with particularly high growth seen in new-energy vehicles, SUVs and commercial vehicles. China has become the world’s largest auto producer, and this has been boosting progress in the Mobiltech category. Cinte Techtextil fringe program a hub of industry insight. A comprehensive fringe programme will keep Cinte Techtextil fairgoers up to date with industry news, with standout events including the 7th China International Nonwovens Conference. Focusing on the global nonwovens industry, topic highlights include the latest innovations in China’s nonwovens industry, an insight into the North American nonwovens market, future trends in the global hygiene product market, and more. The conference will also discuss innovations and developments in filter materials and the wipe industry. The first day of the fringe programme will see a panel discussion in hall N1, moderated by the Taiwan Technical Textiles Association (TTTA), with confirmed panellists including DuPont, IBENA Textilwerke and SGS-CSTC Standards Technical Services. The panel will focus on current trends, developments and standards in the protective textile industry. Other fringe programme events will include seminars and product presentations led by industry leaders on the latest global technologies and market trends, and an Innovation Showcase Area in a variety of application categories. Cinte Techtextil China is organised by Messe Frankfurt (HK) Ltd  the Sub-Council of Textile Industry, CCPIT  and the China Nonwovens & Industrial Textiles Association (CNITA).

 

Source: Textile World

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