Prime Minister Narendra Modi on Thursday stressed the centrality of trade and maritime cooperation for the development and prosperity of the Indo-Pacific region. The prime minister met Southeast Asian leaders at the ASEAN-India Breakfast Summit and said India's partnership with the 10 ASEAN countries is contributing to world peace and prosperity. "Cementing old bonds in pursuit of a glorious future. Had a great interaction with ASEAN leaders at the ASEAN-India Informal Breakfast Summit. We are happy that ties with ASEAN are strong and are contributing to a peaceful and prosperous planet," Modi said in a tweet after the meeting. India became a full dialogue partner of the ASEAN in 1996. It has also signed agreements on goods, services and investment. Over the years, this dynamic and action-oriented partnership between India and ASEAN has expanded the cooperation in agriculture, science and technology, energy, infrastructure, connectivity, culture, and human resources development. ASEAN is India's fourth largest trading partner. Two-way trade stands at $81.33 billion. And buoyed by growing trade, investment flows between India and ASEAN have been mutually substantive. At the informal breakfast meeting, Prime Minister Lee Hsien Loong of Singapore said India must join ASEAN in pushing the Regional Comprehensive Economic Partnership (RCEP), for which negotiations are on to create the world's largest free trade area. "I am glad that we have made tremendous progress this year to advance the RCEP negotiations. We are now close to the finishing line, although further work remains to finalise the remaining details," said Lee. India has been somewhat hesitant in joining RCEP, unwilling to cut tariffs and open its market wider in the face of strong opposition from its farm sector as well as industries like steel and textiles. Modi had last met the ASEAN leaders in January at a commemorative summit in New Delhi to mark the 25th anniversary of ASEAN-India relations. They were his guests during India's Republic Day parade. India also recognises the ASEAN's centrality in the emerging regional economic and security architecture. During the day, the prime minister also attended the 13th East Asia Summit, a forum for strategic dialogue and cooperation on political, security and economic issues of common regional concern, in the city-state. India endorsed six priority areas for cooperation --- environment and energy, education, finance, global health and pandemic diseases, natural disaster management and connectivity -- at the summit. The priority areas of regional cooperation allow the forum members to discuss issues of common interest and concern, in an open and transparent manner, at the highest level.
Source: United News India
India’s trade deficit in October widened from a five-month low in September after crude oil imports coupled with a depreciating rupee weighed on the nation’s trade books. The gap between exports and imports stood at $17.13 billion, compared with $14.61 billion in the same month last year, according to a release from the Ministry of Commerce. The trade gap had hit a five-year high of $17.4 billion in August. ICRA Ltd.’s Principal Economist Aditi Nayar said that seasonal trends drove an uptick in the trade deficit. India’s imports rose 17.6 percent to $44.11 billion in October from $37.50 billion in the year-ago period. Value of oil imports rose 52.64 percent year-on-year to $14.21 billion. Brent crude prices increased 39.66 percent in October from the same period last year. “The softening of crude oil prices in the ongoing month has eased concerns regarding the size of India’s current account deficit” - Aditi Nayar, Principal Economist, ICRA Ltd. Electronic goods, too, contributed to the rise in imports. The cumulative value of imports for the April-October period increased 16.37 percent over last year to $302.47 billion.
Exports rose 17.86 percent to $26.98 billion, with increased shipments of petroleum products, electronic goods and organic and inorganic chemicals. An increase in exports of textiles, yarn and garments, according to Nayar, may reflect a favourable base effect related to relatively muted shipments in October 2017, apart from the impact of a weaker rupee.
Export Highlights
Source: Bloomberg Quint
MSME Secretary Arun Kumar Panda has said there is an enormous potential for cooperation between India and Taiwan in the micro, small and medium enterprises sector. He made these remarks Wednesday at the India-Taiwan SME Development Forum in Taipei, being held from 13-17 November. Speaking about integrating the Indian MSMEs with the regional and global value chains, Panda said there is a lot of potential for cooperation in MSME sector between India and Taiwan, according to an official statement issued by the MSME Ministry. He said India welcomes investment both in terms of technology transfers and FDI by Taiwanese companies in India with Indian SMEs. Sectors like electronics, auto-components, textiles, automobiles, bamboo industry, in which Taiwan has largest concentration, are of special interest to India, he said. Panda said the MSME sector in India occupies a position of strategic importance. Currently, there are over 63 million MSMEs across various industries that employ more than 111 million persons and produce more than 8,000 products, ranging from traditional to high-tech precision items. He said MSMEs form the second largest employment generating sector in India after agriculture. Talking about the initiatives taken by Government of India under Start-up India, he said to promote a culture of entrepreneurship, programmes like 'Start Up India' and 'Stand Up India' have been launched and have resulted in India having the 3rd largest start up ecosystem in the world with more than 26,000 start-ups
Source: Times of India
The Pakistan government has said it has "no immediate plans" to grant Most Favoured Nation (MFN) status to India. Asked whether the government was considering granting MFN status to India and that Prime Minister Imran Khan was keen to hold peace talks with the Indian government, Adviser to the Prime Minister for Commerce, Textile, Industry and Investments, Abdul Razak Dawood said, "No such plans at the moment"At present we have no immediate plans to grant MFN status to India," he said here at an event on Tuesday. However, he said Pakistan is working out free trade agreements with different countries, especially China, and hopes to complete the second FTA with China by June, 2019. Pakistan is yet to award the MFN status to India and it maintains a negative list of 1,209 items which are not permitted to be imported from India. As per a World Trade Organisation rule, every member of WTO is required to accord this status to other member countries. India has already granted this status to all WTO members, including Pakistan. Under the MFN status, a WTO member country is obliged to treat other trading nations in a non-discriminatory manner, especially with regard to customs duty and other levies, but Pakistan is yet to transition fully to MFN status for India.
Source: Business Standard
Global oil prices fell by about a quarter in 40 days to $65 a barrel on Wednesday, promising to reduce India’s import bill and inflation. It is also likely to cool local fuel prices that crested several peaks and rob the Opposition of a key political plank against the Narendra Modi government ahead of a series of crucial state polls. It has been a dramatic shift of sentiment in just about a month with traders switching from predicting $100 per barrel oil to fearing another supply glut amid dimming demand prospects. US President Donald Trump’s insistence on lower oil prices, his Iran sanctions and a USChina trade war seem to have helped temper oil prices in recent times. A relentless rise in crude oil price that took it above $86 a barrel on October 3 was fuelled by fears that US sanctions on Iran may not allow many waivers, leaving Saudi and other producers struggling to fill the gap after significant Iran supply goes out of the market. But Trump surprised many by liberally distributing waivers that allowed India and seven other countries to continue to import from Tehran. This, along with a surge in crude output put at three biggest producers—US, Russia, and China—set the stage for a sharp fall in prices. The US is now the largest producer of crude oil. A protracted US-China trade war is also seen as negative for oil demand. Car sales in China as well as India have slowed this year, hurting fuel demand. Trump’s pressure on Saudis to avoid production cuts has further pushed the price slump. It is unclear how soon the Organization of Petroleum Exporting Countries (OPEC) and allies led by Russia would act to check the price slump and stop an oil glut from building. Saudi has said production cut of about 1million barrels a day from October levels is needed to deal with current imbalance. Saudi Arabia will never let a glut build again in future, Saudi energy minister Khalid al-Falih had said at an international conference in New Delhi in April. For India, lower oil prices mean lower import bill, less pressure on rupee, narrowing current account deficit lower subsidy payout, higher public resources for other welfare projects, lower risk of inflation and increased room for RBI to cut interest rate. If current price trends were to continue, India’s oil import bill in 2018-19 would be lower than .`8,81,000 crore projected by the oil ministry based on an assumed crude price of $77.88 per barrel and an exchange rate of 72.22 per dollar. Dollar rise in oil price alters the country’s import bill by Rs 6,158 crore. Variation in exchange rate by one rupee changes oil import by Rs 6,639 crore. Local prices of petrol and diesel, published daily, factor in both international fuel rates as well as currency movements for the trailing fortnight. Petrol and diesel prices have fallen by Rs 5.4 and Rs 3.5 per litre, respectively since October 17 when the current fuel price decline trend started. The dramatic fall in international rates in the last few days will further bring down local fuel rates. In Delhi, petrol was at Rs 77.4 and diesel Rs 72.19 per litre on Wednesday. Record fuel prices just about a month ago had given Opposition the opportunity to tap into public anger against the Modi government, which was forced to cut duties to placate consumers.
Source: Economic Times
Prime Minister Narendra Modi on Wednesday called for an early conclusion of the Regional Comprehensive Economic Partnership (RCEP) agreement. He said it should be modern, comprehensive, balanced and mutually beneficial to the people of all countries. Modi also asked fellow RCEP leaders to give a mandate to trade ministers and negotiators to take the economic grouping forward, Sudhanshu Pandey, additional secretary in the commerce ministry, told the media following the RCEP summit in Singapore. Modi reiterated that India was committed to early conclusion of a high-quality, comprehensive and balanced regional economic partnership agreement, ministry of external affairs spokesman Raveesh Kumar had earlier tweeted. The RCEP, involving 10 ASEAN members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) as well as China, Japan, Australia, India, New Zealand and South Korea, would cover about half of the world’s population and a third of its GDP.
The RCEP has concluded seven chapters of the total 16.
The PM noted that significant progress has been made in negotiations for market access for goods and called for similar efforts in services. “We need to make similar efforts to make progress in services negotiations as they constitute more than 50% of the GDP of most of the RCEP countries. In future, services are going to play a very important role,” he said at the RCEP summit which was held in closed-door format. Pandey said the PM has very clearly exhibited his support to the RCEP agreement and urged all leaders to give required mandate for “early conclusion”, which means India is strongly committed to the RCEP. Since the developmental circumstances of each country is different, PM Modi urged that any multilateral agreement finalised should be modern, comprehensive, balanced and mutually beneficial. At the summit, the leaders of the 16 negotiating countries reviewed the progress that has been made in the negotiations of the RCEP.
Source: Economic Times
The Regional Comprehensive Economic Partnership, or RCEP, is not a “competitor” to the Trans-Pacific Partnership (or, as it’s now known after adding the adjectives “comprehensive” and “progressive,” the CPTPP). Yes, the CPTPP very obviously excludes the People’s Republic of China while the RCEP does not. But, unlike the former, the RCEP is a more traditional sort of trade deal, in which tariff cuts on tradeable goods — rather than high standards for labor, environmental and intellectual-property protections — are at the center of the discussion. That’s part of the reason India is leery of signing it. This week, as leaders of the 16 RCEP nations met in Singapore, India managed to postpone its moment of reckoning: Instead of concluding negotiations by the end of the year as hoped, the leaders agreed that the deal would be signed next year. Prime Minister Narendra Modi called for an “early conclusion” to the talks, and others said that significant progress had been made. But the truth is that the gulf between India and the other 15 countries in the RCEP remains deep, and it isn’t clear how or if it can be bridged. RCEP is is essentially a deal between the 10 members of the Association of Southeast Asian Nations and the other countries — Japan, China, South Korea, India, Australia and New Zealand – with which ASEAN has existing free-trade deals. Indian officials already not-so-quietly regret the current pact with ASEAN. They complain that exports from ASEAN into India have grown far quicker than Indian exports to the bloc, which they attribute to the fact that India is a “services economy.” Thus, they’re willing to hold up RCEP until Indian companies are granted more market access for services than is currently the case. The truth is that those officials have it backwards. India has largely failed to develop a manufacturing sector because its factories aren’t competitive and aren’t plugged into global supply chains. Over the past few years, tariffs have started rising as well — often in an ad hoc and arbitrary manner — which means that becoming part of spread-out value chains will be even tougher. Modi may want to protect Indian industry. But if he’s going to create the manufacturing jobs he promised in his 2014 prime ministerial campaign, he can’t turn his back on dense knot of production and trade that the RCEP countries represent. As for Indian services exports, the truth is that market access isn’t as straightforward as all that. Services trade requires harmonized rules and regulations — something that RCEP isn’t prioritizing in the first place. And, in fact, many bits of the agreement that do focus on convergence of rules are also unacceptable to India. It will object, for example, to any clause that forbids laws mandating data localization, having already clamped down on foreign payments networks and internet companies. Some participants in RCEP might be tempted to dump India and move ahead, signing a reduced version of the agreement just as the other 11 signatories to the CPTPP moved on without Donald Trump’s U.S. In the end, though, such a move wouldn’t be terribly useful. New Zealand, for example, already has trade agreements with every RCEP participant except for India. Given the difficulty of getting Indian negotiators to the table for bilateral trade deals, the RCEP remains the best chance to incorporate India into a genuinely open trading bloc. In the end, success will come down to give and take, and one country will have to give the most: China. India’s concerns about hidden Chinese subsidies and closed Chinese markets are shared now by much of the world. And it’s not as if Chinese policy makers have no flexibility: After tariffs on U.S. soy exports were imposed as part of the first salvos of the Sino-American trade war, Indian exporters of soymeal found Chinese authorities were far more willing to make things easier for them. While RCEP may appear to be a multilateral deal, negotiations between China and India lie at its heart. Other countries have now accepted that fact, allowing India to also negotiate separately with China, as well as Australia and New Zealand, under a “bilateral pairing mechanism.” For Beijing, this is an opportunity to demonstrate not just its continuing commitment to free trade but also its willingness to make trade fairer than it’s been in the past. If the 2019 deadline is to mean anything, then both India and China will have to think very hard about where their national interests really lie. If they do, they’re likely to view compromise much more favorably.
Source: Bloomberg
Afghanistan seeks unique opportunity in the India International Trade fair as a partner country that begins in New Delhi from 14 November, 2018 supported by India Trade Promotion Organisation (ITPO), Government of India. IITF is essentially an important pathway for Afghanistan to showcase their products, explore business relationships and to establish competitive edge in the growing markets across the region. Afghanistan has been participating in IITF since 2005 that has created niche for buyers and sellers which are appropriate to enhance business relations with different countries. Forty-Eight Afghanistan pavilion displayed dried fruits, saffron, spices, carpets, gems and jewellery and handicrafts including 12 stalls by Afghan women. Afghanistan has taken the lead to win the Silver medal for ‘Excellence in Display’ at the 37th IITF last year. 80 Afghan stalls including 32 women stalls had made marvelous entry at IITF in 2017. This 14 day long exhibition is an initiative to reach global markets and prospective buyers and sellers. This exhibition’s vision is to unlock Afghanistan’s potential for economic empowerment. Afghanistan will hold prominent position in the global market for agricultural, handicrafts, spices, carpets, gem stones and jewelry partnering with India. It is important to note that such exhibition creates new opportunities for Afghanistan in bringing countries closer to achieve shared objectives. India and Afghanistan hold very good economic and social relationship with each other. Being an emerging economy in South Asia, Afghanistan and India’s agricultural sector is a complementary to each other. In this exhibition buyers and sellers from Afghanistan and India grab marvelous opportunity to enhance trade ties between them that will mark a significant tie of both the nations. Prime Minister Narendra Modi’s model of holistic development is themed ‘Rural Enterprises in India’ for this year’s 38th edition of India International Trade Fair 2018. ‘’Rural Enterprises in India’ seems befitting as it will highlight the issues of rural artisans, craftsmen, farmers, market linkages, marketability among others and many more. It also explicitly features new avenues of trade and skill development, focusing on reforms and policy initiatives in diverse fields. The IITF is participated by 17 foreign countries including Afghanistan, China, Hong Kong, Kyrgyzstan, Iran, Myanmar, Nepal, Netherlands, South Africa, South Korea, Thailand, Turkey, Tunisia, Vietnam and UAE with 800 participants from States/Government Departments, domestic and International companies participated in the event. Jharkhand is the ‘Focus State’ and ‘Focus Country’ is Nepal. The event will conclude by 27 November, 2018. Afghanistan- India Business ties In recent years trade ties between Afghanistan and India is growing but there is huge potential for further development. Afghanistan-India trade stood at more than USD 900 and expected to reach USD 2 billion in near future. India’s main export items to Afghanistan are textiles, pharmaceuticals, tobacco, iron & steel and electrical machinery, while its imports from Afghanistan are fresh fruits and nuts, gums and resins, and spices. Afghanistan-India economic relation has been growing exponentially. India’s comprehensive visioning for Afghanistan’s development is consistently woven through the perspectives of building education and skills, technology and innovation, agriculture, health, urbanization, environmental sustainability, business and economy remained an imperative goal. India is actioning the fundamental drivers that will make Afghanistan more competitive to enlarge its role in development under the framework of Strategic Partnership Agreement (SPA) of 2011. The periodic Joint Working Group meetings (JWG) brings paramount endeavor to understand the performing expectations and unleashing their propensity. The recent third JWG meeting held in Kabul last month represented a significant step forward in promoting bilateral economic cooperation between Afghanistan and India. India’s pharmaceuticals have been identified as one of the potential products of export to Afghanistan and India offered to provide high quality and affordable generic drugs to Afghanistan. Afghanistan has proposed to the Government of India in creation of a permanent design centre for handicrafts in Afghanistan. India Exim Bank will be sharing its experience and expertise in the fields of capacity creation, institution strengthening, export development, export capability creation and enhancing international competitiveness for setting up similar institution in Afghanistan. India is willing to associate with Afghanistan in the capacity building of its farmers in modern technologies of vegetable production, processing and trading of horticulture products including Green House Technology. The training can be provided by different institutes in India and experts from Indian institutes can also be deputed for imparting training in Afghanistan. The decision for further action will be referred to the India-Afghanistan Task Force on Agriculture. Afghanistan-India Connectivity Imperatives Going forward, understanding the importance of land based transit route, Afghanistan needs to facilitate India’s inclusion in expanded Afghanistan Pakistan Transit Trade Agreement (APTTA). Both India and Afghanistan may utilize the accession of TIR convention for emphasizing the right of transit through other territories. It would have positive effect on the bilateral trade. Afghanistan’s sustained efforts to Include India in APTTA are yet to be materialized. The Motor Vehicle Agreement between Afghanistan and India signed in September 2017 which overcomes technical objection in denying access to Afghan trucks till ICP Attari. Efforts need to be made for full transit rights for Indian exports to Afghanistan and vice-versa, via land route. The successful air freight corridor programme between Afghanistan and India is enhancing trade ties of both the nations. The air cargo flight of have grown rapidly connecting with Kabul-Mumbai, Kabul-Kolkata, Kabul-Hyderabad, Kabul-Amritsar. This has been helping Afghanistan to seize opportunities with new and emerging markets in India. Afghanistan and India has exchanged more than 133 flights till date, exporting fresh and dried fruits mainly musk melon, pistachios, almonds, raisins, including Asafoetida. Further, connectivity through sea has created lot of dynamics for India and Afghanistan and other regions of the world. It is important to note that trilateral cooperation between- Iran-Afghanistan-India’s Chabahar port project will reap benefits for trajectory growth of Afghanistan and India by connecting global markets, improving infrastructure development a vanguard position that is envisaged in the developmental agenda of both the countries. The first trilateral meeting between India, Afghanistan and Iran for operationalization of Chabahar Port was held last month. More important for lifting US sanctions on Chabahar port project was required to realize the developmental aspirations of Afghanistan including India and other countries for taking growth to higher orbit. The utility of Chabahar port was amply demonstrated in the wheat and lentil shipments to Afghanistan.
Source: Economic Times Blog
With bilateral trade between India and the South American country Peru touching an all-time high of $1.60 bn, the next round of talks for the free trade agreement (FTA) between the two countries is scheduled to take place next month. With bilateral trade between India and the South American country Peru touching an all-time high of $1.60 bn, the next round of talks for the free trade agreement (FTA) between the two countries is scheduled to take place next month. Confirming to FE, a senior diplomat in the Embassy of India in Lima said that, “Officers from both countries are meeting for the third round of negotiations in New Delhi from Dec 4-7.” According to diplomatic sources the aim of this FTA between the two countries is aiming at liberalising norms for trade in goods and services. Both sides are keen on expanding their trade basket especially in the agriculture sector as well as deepening their trade and investments. FE was the first to report that the talks of the special trade agreement with Peru was started in 2017 and since then two round of talks have already taken place, in fact a senior level team from New Delhi from the Ministry of Commerce and Industry had visited Lima to study the feasibility of having such an agreement with the South American nation and identified the issues that could be addressed. In an interview to FE, ambassador of Peru in India, Jorge Juan Castañeda Méndez said, “Both India and Peru are celebrating 55 years of diplomatic relations. Peru could be used by Indian investors as a gateway to the region. With the government of Peru planning to rebuild after last year´s devastating floods, there is a huge opportunity for Indian companies to invest in various sectors including construction of roads, highways, ports, and airports.” Both countries have complementary seasons; soon there will be mangoes and potatoes from our country entering India. A lot of citrus fruits, avocado, grapes and quinoa are already here, the envoy of Peru added. “There has been a significant increase in trade between the two countries. Import of Gold from Peru has gone up from last year’s $ 1.3 bn and it has potential of going up further. Silver is the other metal that India is keen on. India is buying copper from Peru as there is huge concentration of Copper which Indian mining companies can explore,” he said. The LatAm nation is the world’s sixth largest producer of gold, second largest producer of silver, and the third largest producer of copper, tin, zinc, and lead. In 2015, Peru was the second largest exporter of table grapes- Red Globe variety- to India, a position it holds even today. These grapes are typically available in Indian supermarkets between December and April every year. Also, Indian importers have shown a growing interest in Peruvian avocados, leading to a steady increase in its consumption since 2016. All this has become a possibility because the open trade barriers between the two countries provide Peru with a new and significant trade partner.
Source: The Financial Express
Seek exclusion from tariff elimination/reduction for several items due to competition from China, other nations. India has got a much-needed breather with the deferring of the conclusion of the Regional Comprehensive Economic Partnership (RCEP) pact, but at least three Central Ministries are still not convinced about the usefulness of the agreement. “We have more convincing to do within the government. The Ministries of Steel, Heavy Industry and Textiles continue to be apprehensive as they feel their sectors are not ready to face competition from China and some others,” a government official said. Trade Ministers from the 16 RCEP countries, which includes India, China, the 10-member ASEAN block, Japan, South Korea, Australia and New Zealand, decided in Singapore on Tuesday to give up the year-end deadline for a ‘substantial package’ and instead focus on concluding the trade deal by 2019. The RCEP, which includes goods, services, investments, e-commerce, government procurement, once completed could be the largest free trade bloc in the world covering about 3.5 billion people, 30 per cent of the world’s Gross Domestic Product and 40 per cent of world trade.
Seek exclusion
In the inter-ministerial consultations conducted by the Commerce Ministry, the Heavy Industry, Textiles and Steel Ministries have continued to seek exclusion of items pertaining to their respective sectors from tariff elimination/reduction obligation at the RCEP. “The Steel Ministry, for instance, is insisting on excluding the entire range of finished steel products from the pact,” the official said. Highlighting the position of the domestic steel industry on the RCEP negotiations, Abhyuday Jindal, Managing Director, Jindal Stainless, said, “We strongly oppose inclusion of stainless steel flat products in the RCEP agreement. The move will open flood gates of Chinese imports into India through zero duty access making operations for domestic producers non-viable.” “A case in point is the existing FTA of India with Korea and Japan. Though the FTAs were envisaged to promote trade between the two countries, much of the trade post-FTA has been one-sided and India has substantial trade deficit with both Korea and Japan,” Jindal said. Similarly, the Heavy Industry Ministry has apprehensions about the effect of RCEP on the automobile industry and manufacturers of machinery. The Textiles Ministry, too, wants a large number of items to be insulated from the RCEP pact as it fears competition from China and ASEAN nations such as Vietnam and Philippines, the official said. These Ministries are especially worried as there is pressure on India to take on commitments for eliminating tariffs on more than 90 per cent of items for most RCEP partners while allowing slightly lower commitments for countries such as China, which pose a huge challenge to the Indian industry. “One has to understand that the list of items on which no reduction commitments would be taken will be very small and include the super-sensitive items which would mostly be agricultural products,” the official added. The Commerce Ministry has been trying to drive home the point that all sectors will gain tariff-free access to the entire RCEP region and exports would grow. “If India is not part of the RCEP agreement, Indian exports will face tariffs in the region whereas all other countries that are part of the grouping wouldn’t and the competitiveness of Indian products would take a serious hit,” the official said.
Source: The Hindu Business Line
The government has announced nine sector specific policies aimed at promoting the textile industry, Industries Minister N Amarnath Reddy said. The government has announced nine sector-specific policies aimed at promoting the textile industry, Industries Minister N Amarnath Reddy said. “The sector, which is more labour-intensive, needs to be encouraged for job creation,” he explained. Stating that the textile industry needed digital transformation, he stressed the importance for it to adopt artificial intelligence in order to compete with the global market. The minister was speaking at the Textile 4.0 conference organised by the Confederation of Indian Industry (CII) and AP Spinning Mills Association here on Tuesday. “The government has put in place single window clearance, which ensures time-bound delivery of services to the citizens,” he said, and added that work for all the memorandum of understandings inked during the Partnership Summit at Visakhapatnam were underway as per their schedule. On the industrial corridors passing through the State, he commented, “The two corridors will give Andhra Pradesh a great opportunity for industrial growth... A corporation for encouragement of Micro, Small and Medium Enterprises have also been set up in the State.” CII Vijayawada Chairman Sudhakar Chowdary said the government has understood the potential of textile industry as jobs’ creator and growth generator. He said the State’s textile policy was essential in development of missing segments in the textile value chain.
Source: The New Indian Express
Fall in international crude oil prices has given a reason to ailing power loom weaving sector to cheer. In the last fortnight, yarn manufacturers have reduced polyester yarn prices by almost Rs15 per kilogram giving a major relief to weaving sector. Industry sources said reduction in polyester yarn prices has been witnessed for the first time post-Goods and Services Tax’s implementation. In the last 14 months, yarn spinners were on the spree of increasing yarn prices, giving a tough time to power loom weavers struggling with market recession and the issue of lapse of input tax credit (ITC) to the tune of Rs600 crore. Due to increase in yarn prices, weavers were facing loss of Rs2 per metre on unfinished polyester fabric. For the first time, power loom weaving industry is observing a month-long vacation. Power loom units started shutting from October 25 and will reopen only after November 25. Leader of powerloom weaving sector, Mayur Golwala said, “The crude oil prices in international market have slid below $65 per barrel. In the last fortnight, yarn manufacturers have reduced polyester yarn prices by Rs15 per kilogram. We believe that the industry will get real benefit when spinners will further reduce prices of yarn by Rs25 per kg.” Golwala added, “The reduction in yarn prices will provide a new lease of life to the city’s textile business in the upcoming marriage season. Most of the power loom units will reopen on November 25.” South Gujarat Yarn Dealers Association president Lalit Chandak said, “It is a positive sign for textile sector. There is four-month long marriage season when the textile trade will rebound due to decrease in the yarn prices. It is believed that the yarn prices will further reduce due to fall in international crude oil prices.”
Source: Times of India
India’s annual rate of inflation, based on monthly wholesale price index (WPI), stood at 5.28 per cent for the month of October 2018 over same month of the last year. The index for apparel was up by 0.7 per cent to 139.6 in October, according to the provisional data released by the Office of the Economic Adviser, ministry of commerce and industry. The official WPI for all commodities (Base: 2011-12 = 100) for the month of October 2018 rose by 0.7 per cent to 121.7 from the previous month’s level of 120.8, the data showed. The index for manufactured products (weight 64.23 per cent) for October 2018 rose by 0.3 per cent to 118.8 from 118.5 for the previous month. The index for ‘Manufacture of Wearing Apparel’ sub-group rose by 0.7 per cent to 139.6 from 138.6 for the previous month due to higher price of knitted and crocheted apparel (2 per cent). The index for ‘Manufacture of Textiles’ sub-group also rose by 0.1 per cent to 119.0 from 118.9 for the previous month due to higher price of other textiles (2 per cent) and woollen yarn, synthetic yarn, viscose yarn, weaving & finishing of textiles and manufacture of cordage, rope, twine & netting (1 per cent each). However, the price of made-up textile articles, except apparel (3 per cent) declined. The index for primary articles (weight 22.62 per cent) also rose by 0.7 per cent to 136.3 from 135.4 for the previous month. The index for fuel and power (weight 13.15 per cent) was up by 3.6 per cent to 111.1 from 107.2 for the previous month due to higher price of bitumen, furnace oil, naphtha, ATF, LPG, kerosene, HSD, petrol and petroleum coke. Meanwhile, the all-India consumer price index (CPI) on base 2012=100 stood at 3.31 (provisional) in October 2018 compared to 3.70 (final) in September, 2018 and 3.58 in October, 2017, according to the Central Statistics Office, ministry of statistics and programme implementation.
Source: Fibre2Fashion
High Commissioner of India to Sri Lanka Taranjit Singh Sandhu today inaugurated the 4th edition of Intex South Asia, the largest international textile sourcing show in South Asia, at the BMICH in Colombo. Chairperson, Sri Lanka Export Development Board Indira Malwatte, Chairman, Joint Apparel Association Forum of Sri Lanka (JAAF), Sharad Amalean, heads of several trade bodies, industry leaders and delegates from several countries were also present. The event has been organized by Worldex India Exhibition and Promotion Pvt. Ltd. The event partners include the Cotton Textiles Export Promotion Council (TEXPROCIL), Retailers Association of India, Clothing Manufacturers Association of India, Confederation of Indian Textile Industry (CITI) etc. High Commissioner Sandhu and EDB Chairperson Indira Malwatte also jointly inaugurated the India Pavilion organized by Federation of Indian Export Organist ion (FIEO). High Commissioner noted that Intex South Asia has become an annual event in Sri Lanka in the calendar of textile industry, which is a reflection of efforts of all stakeholders to turn a huge potential into reality. He also recalled Prime Minister of India Narendra Modi's vision for textiles: "From Farm to Fiber, Fiber to Factory, Factory to Fashion, Fashion to Foreign." Underlining that India is the largest cotton and jute producer in the world and second largest textiles producer, as well as the second largest producer of silk in the world, High Commissioner added that there exists significant complementarity wherein Sri Lanka can source textile material from India and transform it into apparel and garments for rest of the world. He encouraged Sri Lankan companies to be part of the supply and value chains of large Indian companies. He praised the contribution of Sri Lankan companies, who have made substantial investments in India in textile sector. He noted that events such as Intex South Asia, would go a long way in promoting the existing synergy between India and Sri Lanka. High Commissioner touched upon Khadi, a hand spun fabric, which Mahatma Gandhi had popularized, as a symbol of freedom and self-respect. India is currently paying tribute to Gandhi as part of his 150th birth anniversary celebrations. High Commissioner Sandhu underscored that India's rapid growth can bring dividends for the entire region, especially Sri Lanka. He added that there is a lot India and Sri Lanka can do together rather than at individual levels. He called upon the business community and industry leaders to innovate and grow together. The 4th edition of Intex South Asia has participation of over 200 suppliers from around 15 countries showcasing a wide variety of innovative textiles products such as yarns, apparels, denim clothing, accessories etc. Alongside the exhibition, there are also Interactive Business Forums, Fashion Fiesta, Networking Reception, Fashion Show, B2B meetings, etc. The event concludes on 16 November 2018.
Source: Colombo Page
Bihar has put up a special pavilion at the 38th International Trade Fair (ITF), which kicked off at Pragati Maidan in New Delhi on Wednesday, and it is attracting huge crowds. The pavilion has been designed on the lines of the theme of this year’s fair — Rural Enterprises of India. The state’s resident commissioner in New Delhi, Vipin Kumar, inaugurated the pavilion at hall number 12 of the ITF. “Industry is at the second place after agriculture in Bihar’s rural economy and the central government’s textile ministry has approved Rs 30 crore for its development,” Vipin said. “This money has been used to constitute self-help groups for craftsmen and artists. Five such artists have been given an opportunity to showcase their skills at this trade fair.” Madhubani painting artists Devendra Jha and Saroj Jha have done a painting on 32 panels in 20 days and it has been displayed at the entrance part of the pavilion. Similarly, various colourful paintings and artworks have been displayed to attract visitors to see the artistic legacy of Bihar. Speaking on the occasion, Upendra Maharathi Shilp Anusandhan Sansthan director Ashok Kumar Sinha said Madhubani paintings and Manjusha paintings made by self-help groups have been given the pride of place in front of the Bihar pavilion. “We are showcasing the Tikuli art, terracotta objects and other such specialties from Bihar at the ITF and visitors can see the unique and famous art heritage of the state,” Ashok said. Artists are also working on handicrafts and handloom products at the pavilion. Nitu Sinha, Anukriti Mishra and Suridhi Devi are present, showcasing their skills to visitors.
Already the response of the crowd for this section has been tremendous.
Industries department director Pankaj Kumar Singh was also present on the occasion. The state government will organise Bihar Diwas at the pavilion on November 24.
Source: The Telegraph
High Commissioner of India to Sri Lanka Taranjit Singh Sandhu inaugurated the 4th edition of Intex South Asia, the largest international textile sourcing show in South Asia, in Colombo on November 14. The event is organized by Worldex India Exhibition and Promotion Pvt. Ltd. The India Pavilion has been set up by Federation of Indian Export Organisations (FIEO). The event partners include the Cotton Textiles Export Promotion Council (TEXPROCIL), the Retailers Association of India, Clothing Manufacturers Association of India and the Confederation of Indian Textile Industry (CITI). Sandhu encouraged Sri Lankan companies to be part of the supply and value chains of large Indian enterprises, according to a press release from the Indian High Commission. Over 200 suppliers from around 15 countries are showcasing products like yarns, apparels, denim clothing and accessories at the show.
Source: Fibre2Fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1294.92 |
USD/Ton |
0% |
11/15/2018 |
|
VSF |
1998.82 |
USD/Ton |
-0.71% |
11/15/2018 |
|
ASF |
3012.61 |
USD/Ton |
0% |
11/15/2018 |
|
Polyester POY |
1276.23 |
USD/Ton |
0% |
11/15/2018 |
|
Nylon FDY |
3235.50 |
USD/Ton |
-0.88% |
11/15/2018 |
|
40D Spandex |
4802.92 |
USD/Ton |
0% |
11/15/2018 |
|
Nylon POY |
1438.00 |
USD/Ton |
0% |
11/15/2018 |
|
Acrylic Top 3D |
3422.44 |
USD/Ton |
-0.83% |
11/15/2018 |
|
Polyester FDY |
5435.64 |
USD/Ton |
0% |
11/15/2018 |
|
Nylon DTY |
1538.66 |
USD/Ton |
0% |
11/15/2018 |
|
Viscose Long Filament |
3034.18 |
USD/Ton |
0% |
11/15/2018 |
|
Polyester DTY |
3163.60 |
USD/Ton |
0% |
11/15/2018 |
|
30S Spun Rayon Yarn |
2775.34 |
USD/Ton |
-0.52% |
11/15/2018 |
|
32S Polyester Yarn |
1934.11 |
USD/Ton |
0% |
11/15/2018 |
|
45S T/C Yarn |
2933.52 |
USD/Ton |
0% |
11/15/2018 |
|
40S Rayon Yarn |
2099.48 |
USD/Ton |
-2.67% |
11/15/2018 |
|
T/R Yarn 65/35 32S |
2502.12 |
USD/Ton |
0% |
11/15/2018 |
|
45S Polyester Yarn |
3077.32 |
USD/Ton |
0% |
11/15/2018 |
|
T/C Yarn 65/35 32S |
2645.92 |
USD/Ton |
-0.54% |
11/15/2018 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
-0.11% |
11/15/2018 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
11/15/2018 |
|
40S Combed Poplin |
1.14 |
USD/Meter |
0% |
11/15/2018 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
-0.22% |
11/15/2018 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
11/15/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14380 USD dtd. 15/11/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Ministry of Industry and Trade has forecast that Vietnam’s total export revenue will grow 10-12 percent to hit a record of 239 billion USD for the whole year 2018, much higher than the set target of 214 billion USD. Deputy head of the ministry’s Foreign Trade Agency Tran Thanh Hai, shipments of key products such as telephones and spare parts, garment and textiles, electronics, computers and spare parts, equipment and footwear during January-October continued to rise over the same time last year. In stark contrast, steep decline was seen in the export of crude oil, which fell 24.8 percent year on year to 1.8 billion USD. Vietnam raked in some 200.3 billion USD from exports in the period, or 14.2 percent higher than the amount earned in the same time in 2017. Of the total amount, 56.82 billion USD was contributed by domestic sector and 143.45 billion USD by foreign-invested sector. The US remained the largest importer of Vietnam when it spent 39.17 billion USD purchasing products from the Southeast Asian country (up 13.4 percent year-on-year), followed by the EU with 34.6 billion USD (increasing 9 percent), China with 33.1 billion USD (growing 25.1 percent), ASEAN with 20.4 billion USD (expanding 13 percent), and Japan with 15.26 billion USD (rising 10.2 percent). Hai said in the period, Vietnam continued to promote exports to its traditional markets while developing new markets by capitalising on the free trade agreements (FTAs) which have taken effect or are under negotiations. If local firms know how to take full advantage of the FTAs, this will serve as a catalyst to bolster exports, he said, adding that improvement in business climate has given momentum to the expansion of export enterprises. Also in the ten-month period, Vietnam splashed out 193.84 billion USD on imports, a year-on-year increase of 11.8 percent. Most of the purchased products were electronic products, computers and spare parts, equipment, telephones and spare parts, steel and petrol. Experts said domestic production has shown signs of strong recovery as the rate of imports that need to be controlled only accounted for 6.5 percent of the total import revenue. During January-October, the country enjoyed a trade surplus of 6.4 billion USD, with a trade deficit of 20.7 billion USD from the domestic sector, and 27.1 billion USD in trade surplus from the foreign-invested sector. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam free trade agreement, which will take effect in the end of this year, have made Vietnam more attractive to foreign-direct investment. Domestic investment, sparked by business confidence, favourable business environment, stable monetary policy, is forecast to continue increasing to generate new production capacity together with foreign investment. Furthermore, Vietnamese firms are more confident to bolster shrimp and tra fish exports to the US after the country decided to reduce anti-dumping tariffs on the products. Deputy Minister of Trade and Industry Do Thang Hai said that to promote exports in the last two months of the year, the ministry will keep a close watch on the world’s economic developments, particularly the escalating US-China trade war, to pen rational measures to enhance shipments and prevent trade and origin frauds. Production of goods meeting quality and food safety standards as well as fitting the taste of export markets will be prioritised, Hai stressed. On the other hand, the ministry will work to give timely forecast and warning over the safeguard measures imposed on Vietnamese products while removing bottlenecks for enterprises to branch out export markets. Besides, it will pay due attention to increasing Vietnam’s market share in traditional markets and creating favourable conditions for Vietnamese products to gain foothold in new markets. Accelerating negotiation, signing and ratification of free trade deals with foreign countries and implementing Vietnam’s integration commitments should be placed at the first line of the measures, he said
Source: Vietnam Net
The World Bank has warned that Cambodia’s economy will face increased risks if the EU presses ahead with Cambodia’s expulsion from the scheme. The European Union, Cambodia’s largest export market, is making preparations for the country’s expulsion from a preferential trade scheme that guarantees tariff-free access to EU markets for Cambodian goods, according to the EU ambassador. George Edgar, EU ambassador, said in an email on Tuesday that starting the procedure for removing Cambodia from the Everything But Arms (EBA) scheme reflected the concerns in Brussels over the deterioration of human rights and basic freedoms. “The formal withdrawal procedure for the Everything But Arms arrangement in relation to Cambodia has not yet launched. Preparations are being made for the formal decision by the European Commission that would launch the procedure,” he wrote in an email. He added that once the decision is formally made, there will be a six-month period during which the EU will study the issue further, followed by a further six month decision-making process. Edgar declined to comment on the possible impact on the garment industry in Cambodia, which supports some 800,000 jobs in Cambodia and whose largest export market is the EU, with about 46 percent of Cambodian textile exports going to Europe. Garment exporters in Cambodia have appealed to the EU not to remove Cambodia from the scheme. The World Bank has warned that Cambodia’s economy will face increased risks if the EU presses ahead with Cambodia’s expulsion from the scheme. Moody’s credit rating agency has estimated that the potential loss to the Cambodian economy from the cancellation of the EBA would negatively affect the country’s credit rating and would harm Cambodia’s competitiveness. Phay Siphan, government spokesman, said the country’s strong growth would counter the potential loss as a result of its removal from the EBA scheme. “We are ready for the tax increase,” he said. “Wages are guaranteed by the law in Cambodia.”
Source : VOA Khmer
Vietnam’s Jan-Oct trade surplus was the highest in eight years at $7.2 billion. FDI firms dominated this performance. The January- October trade surplus of $7.2 billion was a significant increase over last year, when Vietnam had a trade deficit of $2 billion, according to Vietnam Customs. Both exports and imports posted double-digit year-on-year growth. Exports were worth over $202 billion, up 15.2 percent, while imports were worth $194.8 billion, up 12.4 percent. Most of the export value was created by foreign direct investment (FDI) businesses, contributing $142.8 billion, or 70.7 percent of total export value, up 14.9 percent year-on-year. However, experts and lawmakers have constantly expressed concerns that Vietnam was overly dependent on foreign businesses. Tran Anh Tuan, acting-principal of the HCMC Institute for Development Studies, said most foreign companies import materials from home countries to manufacture in Vietnam, taking advantage of the cheap labor costs to export. "Vietnam can only gain low added value in this process. Foreign firms’ high exports and imports only benefit other economies, not Vietnam," he said. Truong Trong Nghia, a HCMC deputy of the National Assembly, said that major foreign companies were still dominating exports, and this could hurt Vietnam. With FDI businesses accounting for over 70 percent of total exports, Vietnam will suffer when they leave the country, he said. Other experts proposed that Vietnam pays more attention to local companies and help them improve their export capabilities. Nghia asked: "What will the economy be left with when these companies are gone?" Vietnam’s top three export items in the first 10 months remained phone components, textiles and electronics, all of which are mostly manufactured by FDI firms. Phone export value grew 12.6 percent year-on-year to $41.4 billion, with imports to the biggest buyer, the EU, growing 9.5 percent year-on-year. Textile exports increased 17.1 percent to $25.1 billion with the U.S. leading the buyers’ list with imports of $11.4 billion, up 12.3 percent year-on-year. Electronics, the third largest export item, went up 15.8 percent to $24.42 billion. China was the largest importer in this category with purchases worth $6.9 billion, up 28.1 percent year-on-year. The U.S. was Vietnam’s biggest export market with a turnover of $39.42 billion, up 14.2 percent year-on-year. The EU came in second at $34.81 billion, up 9.8 percent. China was the third largest importer at $33.48 billion, up 26.8 percent, the highest growth rate among all export markets. The World Bank had previously forecast Vietnam’s exports of goods and services to grow at more than 13 percent annually between 2018 and 2020, driven by rising FDI in manufacturing.
Source: Vietnam Express
Trade ministers of 16 countries participating in the negotiators for a mega Asian trade deal have decided to push back the deadline for a free trade agreement to 2019 as they struggled to narrow differences and find balanced outcomes in the negotiations. The deadline for the launch of the envisaged free trade area was extended as trade ministers could not agree on the terms of the agenda for the Regional Comprehensive Economic Partnership (RCEP) summit scheduled later this week, commerce ministry sources said. Commerce minister Suresh Prabhu, who is currently in Singapore to attend the RCEP trade ministers’ meeting, welcomed members’ decision to defer the launch deadline. For India, which has a trade deficit with ten out of 16 countries in negotiations, a delay in concluding negotiations, however, comes as a blessing in disguise. The development comes as a relief to the Modi government that is struggling to build consensus within over joining the 16-member Asian free trade agreement, in the run-up to the general elections. In fact, key industries and ministries like steel and textiles are vehemently opposing India’s entry into the 16-member club as they fear the country will be inundated with imported goods. The Modi government could also be facing electoral backlash if it agreed to tariff concessions that RCEP entry requires. While India may try to stagger negotiations on tariff concessions beyond the next elections to insulate it from industry and trade union protests that are likely to emanate from India joining the Asian free trade pact, it cannot go back from entering the RCEP. “The future lies in RCEP,” Prabhu told reporters, saying “every country will benefit from it”. RCEP negotiations has assumed urgency because of US President Donald Trump’s “America First” policy, which has led to a dilution of US commitment to trade multilateralism. The ongoing trade tension between China and the US has provided the impetus for an early conclusion of the RCEP. The trade ministers’ meeting will be followed by a summit of heads of governments from RECP member states in Singapore later this week to give a much-needed political push to the free trade negotiations. Prime Minister Narendra Modi is set to attend the summit. RCEP will include ten ASEAN group members – Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam – and their six free trade partners – India, China, Japan, South Korea, Australia and New Zealand. India has a trade deficit with ten out of 16 countries in negotiations to ink the mega free trade pact. According to government data, India’s trade deficit with seven countries – Indonesia, Thailand, China, Japan, Korea, Australia and New Zealand – increased in 2017-18 from the preceding fiscal. The trade gap with China, Korea, Indonesia and Australia has increased to $63.12 billion, $11.96 billion, $12.47 billion and $10.16 billion in 2017-18. It was $51.11 billion, $8.34 billion, $9.94 billion and $8.19 billion respectively in 2016-17. Currently, RCEP countries want India to commit duty cuts on at least 92 per cent of tariff lines, a demand that would cede too much ground to China. India had proposed a three-tier tariff reduction plan. Countries that came under the third tier, which would include China, would only be offered 42.5 per cent liberalisation in tariffs. However, India later withdrew its proposal under pressure from other countries, and hoping to gain on the services front. Instead, India has now offered tariff liberalisation on 74 per cent of goods for China and a few other countries and up to 86 per cent for all other RCEP members. In return for tariff liberalisation on goods, India has sought greater commitment from RCEP members on liberalisation of the services sector, especially easy movement of its professionals to other countries in the proposed trade bloc. It has pushed for adopting ASEAN-Australia-New Zealand FTA as the template. However, its demand has failed to find traction with other RCEP members, resulting in a lowering of its ambitions. Commerce minister Suresh Prabhu held bilateral meetings with his counterparts from Singapore, China, Japan and New Zealand on the sidelines of the RCEP. He discussedbilateral issues and progress in RCEP negotiations. He also had pull-aside meetings with trade ministers of South Korea, Indonesia, Cambodia, Malaysia, Australia and Philippines to discuss matters of mutual interest.
Source: Domain –b
Uzbek Deputy Minister of Foreign Trade Sahib Saifnazarov met with Undersecretary for Foreign Affairs and International Cooperation of Italy Manlio Di Stefano, Uzbek media reported quoting the press service of the Uzbek Ministry of Foreign Trade. The sides exchanged views on the state and prospects of bilateral trade and economic relations. The Uzbek side proposed to jointly develop the institute of the Uzbek-Italian intergovernmental working group, as well as holding business forums and exhibitions to establish and strengthen relations between representatives of the business circles of the two countries. Manlio Di Stefano noted that Italy can offer many opportunities for cooperation in a number of spheres, including the textile industry, fruit and vegetable processing, tourism, information technology and communications, telemedicine and other areas.
Source: Azer News
Kenya hopes more Chinese investors will come to the east African country to boost its industrial capacity, officials said on Wednesday. Peter Munya, cabinet secretary in the ministry of trade, industry and cooperatives, told a trade forum in Nairobi that so far approximately 400 Chinese businesses are operating in the country with positive results for Kenya's economy. "We are actively pursuing Chinese investors who can benefit from the opportunities presented in the special economic zones and export processing zones to help Kenya expand its industrial base," Munya said during the opening ceremony of the China-Kenya Industrial Capacity Cooperation Expo. The four-day event has attracted 81 mega-enterprises from China to showcase the latest technologies in infrastructure, energy, machinery and equipment, agricultural processing as well as in transportation and logistics. Munya said that Kenya's manufacturing sector has averaged less than 10 percent of gross domestic product (GDP) in the past five years due to high production costs as well as competition from imported goods. He said that manufacturing has been identified as one of the four pillars of President Uhuru Kenyatta's Big Four Agenda due to its huge impact on job creation and foreign exchange earnings potential. The country lacks the necessary capital to set up large-scale manufacturing plants that can produce globally competitive goods, he said. "We are therefore keen to partner with foreign investors including the Chinese to help Kenya accelerate its industrialization process," he said. He noted that a number of Chinese investors have expressed interest in investing in the agro-processing, cement, steel, leather and textile sectors. Munya said studies have indicated that countries which attract foreign direct investment achieve faster economic growth as compared to those with closed economies. Guo Ce, economic and commercial counsellor at the embassy of China in Kenya, said that the China-Kenya Industrial Capacity Expo is set to provide a unique platform for both government and private sectors from the two countries to cooperate in the area of manufacturing. Guo said that Chinese enterprises have come to participate in the expo where seminars and exchange activities will be undertaken for enterprises to showcase their accomplishments and exchange experiences. The Chinese diplomat urged Kenyan enterprises to use the expo to generate business deals with Chinese enterprises. He noted that as the Chinese market is opening wider and wider, more and more Kenya products will be exported to China with the support of upgraded manufacturing and agri-processing capacity. "With our cooperation deepening, and Kenya attracting more Chinese investment, I also hope that Kenya will have its business environment improved, aiming to build itself not only as the perfect destination for tourists, but also as the friendly and attractive destination for foreign investment," he said. Organizer of the expo, China International Exhibition Center (CIEC), said that in December 2017, with the support from the governments and business organizations of both China and Kenya, China Council for the Promotion of International Trade (CCPIT) held the first expo in Nairobi. Wang Xiaoguang, head of exhibition delegation and vice president of CIEC, said that the expo has become a new platform for Sino-African economic and trade cooperation in the new era. Wang said that in the future, CCPIT will make full use of the expo to deepen mutual benefit and cooperation as well as enhance the friendship between China and Kenya.
Source: China Economy Net
A major new report from Dutch bank ING has suggested that while the implications of Brexit will be profound for the whole of Europe, the UK’s exit from the European Union will be especially felt in emerging Europe. The automotive and textile industries, as well as agriculture, are likely to suffer the most. According to the report, Central Europe and Brexit: Who and what is most at risk? the automotive sector is the crown jewel of the Hungarian export sector and friction with the UK would hurt. While Czech exports to the UK represented only five per cent of total exports in 2017, the concentration in motor vehicles is more important – with the UK representing around seven per cent of total Czech car exports. This makes the UK the second biggest car export destination after Germany. Meanwhile, electrical, machinery and transport equipment comprise around 50 per cent of Romanian exports to the UK. The sector that arguably faces the biggest challenge is agriculture and food, particularly in the case of a ‘no deal’ Brexit. Food products, particularly meat-based, are the most heavily scrutinised items at borders. Neither Dover nor Calais, both major entry/exit ports for UK-EU trade, have the necessary veterinary inspection points needed to carry out these checks, risking long delays if there is no deal by March. Across the region, 170,000 jobs in farming, fishing and food manufacturing are directly exposed to UK export demand. The dominant commodities are chocolate, meat products and vegetables. Polish agricultural and processed food exports to the UK amount to approximately 1.4 billion euro annually. If the UK leaves the EU without a deal in March, Britain will automatically begin trading on World Trade Organisation (WTO) terms. It does have the alternative of choosing the ‘Canada-plus’ route, negotiating a new free trade agreement with the EU. However this would only come in to effect in 2021. After Germany, Britain is the largest export market for Poland and maintains a trade surplus of over eight billion euros with the UK. Then there are migrants to consider. The report notes that: “Polish workers enjoyed the first wave of EU enlargement in 2004 and look more likely to receive ‘settled status’ in the UK after Brexit. The same may not be true for Romanians, where full access to the labour market was only granted in 2014.” In addition there is still a huge void when it comes to the effect Brexit will have on the trade in services. This sector could be impacted by a loss of market access to specialists, not to mention the impact on sharing of data. There is also an issue on the free movement of people in the services sector. However, one of the biggest blows for emerging Europe will be the impact on the 2021-27 EU budget. At present six per cent of the budget is provided by the UK. “The indirect impact could be bigger, however. The UK’s departure will see average GDP per capita levels decline in the EU, depriving some countries of funds as their GDP per capita levels rise above the new EU average. This could impact the Czech Republic, Poland and Bulgaria,” explains the report. Which means funding to those countries could be cut. “We should not underestimate the impact Brexit could have on supply chains in the CEE region and the key sectors exposed which may suffer the biggest disruption. In terms of the financial implications, Romania may be more exposed from a decline in remittances than Poland, since the Polish presence in the UK workforce is more mature. Even though the loss of the UK’s budget contribution is meaningful, the bigger impact may come from the decline in the average GDP per capita level in the EU. This and fresh priorities will have profound implications for the 2021-27 budget round, potentially delivering over 20 per cent declines in real terms for the likes of the Czech Republic, Poland and Hungary,” concludes the report.
Source: Emerging Europe
A study led by researchers of the UB quantifies the presence of textile microfibers in south European marine floors, from the Cantabrian Sea to the Black Sea. The study has analysed the amount of these colored fibers, which vary between 3 to 8 mm but are extremely fine, with less than a 0.1 mm diameter, and which come mainly from home and industrial washing machines. The results show the dominance of cellulosic fibers over synthetic polymers, and highlight that several oceanographic processes pile and transport microfibers to marine hollows. These are some of the main conclusions of the article published in the scientific journal PLOS ONE by the researchers Anna Sánchez Vidal, William P. de Haan and Miquel canals, from the consolidated research group on Marine Geosciences of the Faculty of Earth Sciences of the UB, in collaboration with Richard C. Thompson, from the University of Plymouth (United Kingdom). According to the researchers, the study reports the presence of this residue in marine floors and could help designing effective management strategies to reduce the emission of microfibers with a potential negative effect on the marine ecosystems.
Residue at 2,000 meters depth
Microfibers are one of the most common microplastics in the marine environment, but such a deep study had not been carried out so far in a large area. Researchers analysed soil samples from 42 and 3,500 meters deep in 29 stations in southern European seas. The results show that higher densities of fiber are found in the Cantabrian Sea, followed by the Catalan seas and the Alboran Sea, respectively, while lower densities are in the western Mediterranean and the Black Sea. The study also shows distance in deep seas is not a barrier to the accumulation of microfibers, since about 20 % of these particles are accumulated in the open sea beyond 2,000 meters deep. "Textile microfibers seem to concentrate at the bottom of submarine canyons, while the quantity in the slope is significantly lower. This suggests microfibers, probably coming from the ground (a washing machine can release up to 700,000 microfibers to waste waters in one use), are accumulated in the continental platform, from where they are swept and taken by several oceanographic processes to marine hollows through the natural conducts -marine canyons", says Anna Sánchez Vidal, from the Department of Earth and Ocean Dynamics.
Microfibers in deep water organisms
These findings also confirm previous studies that detected microfibers that were ingested by deep water organisms in a natural environment. "Recent results show ingests of microplastics by different organisms and in different ecosystems, but the specific impact on the organisms is unknown", highlights Anna Sánchez Vidal. "It can depend on a wide range of factors, such as features of the microfibers (size, abundance), or chemical substances these absorbed as well as the physiology and ecology (size, feeding, whether they excrete or accumulate, etc.) of marine organisms", notes the expert. The main type of microfiber they found in marine floors is the natural cellulose (cotton, linen) and regenerated cellulose (rayon of viscose), coming from clothes and industrial textiles mainly. Regarding synthetic fibers, polyester is the most common one, followed by acrylic, polyamide, polythene and polypropylene. "Some of these synthetic microfibers are made of plastic, which does not degrade shortly, it can contain chemical additives, which can be easily incorporated to the trophic network", highlights the researcher.
Measures to reduce emissions
For the researchers, the presence and persistence of microfibers in marine soils -and the negative impact these can have on marine organisms in the long run- makes it clear there is a need to design effective management strategies to reduce the emission. "We need to advance in research and innovation in the textile industry, in the design of effective filters for washing machines, in the treatment of waste waters, and the promotion of sustainable clothing", concludes Sánchez Vidal.
Source: Eureka Alert
