The government is working on a plan to extend the upgraded Rebate of State and Central Taxes and Levies scheme (RoSCTL) — that reimburses garments and made-up exporters all un-remitted input taxes paid at the State and Central levels — to all textile products. This is being done to prepare the sector for an eventual withdrawal of the Merchandise Export Incentive Scheme (MEIS) that flouts global trade rules. “The textile sector has long graduated out of the special dispensation that the WTO extends to vulnerable sectors or countries that need support by allowing them to extend export sops that are otherwise banned. If the MEIS is extended for a longer period to textile exporters and a WTO member files a dispute, there is no way India can defend itself. That is why there is a hurry to replace the scheme for the sector first before moving on to other sectors,” a government official told BusinessLine. Under the popular MEIS, claimed by a bulk of garments and textiles exporters, the government gives incentives to exporters equivalent to about 4 per cent of their export value in the form of duty credit scrips that can be used to pay customs duties and are freely transferable. Since it is a direct export subsidy, and the textile sector’s phase-out period for such subsidies ended in 2018, it would have to be withdrawn soon. “The government has now decided to withdraw the MEIS scheme as soon as possible and extend the Rebate of State and Central Levies scheme to all textile sectors, including fibre, yarn and fabric,” the official said. But this will now probably happen after the general elections, he added. Meanwhile, garments and made-ups manufacturers will be allowed to enjoy the benefits of both the RoSCTL and the MEIS till the latter is withdrawn as exports from the two sectors have taken a beating in the current year. “The Indian textile exporters have a cost disability of 15-20 per cent compared to their competitors because of high input costs. Letting them take advantage of two schemes can help them tide over the present low,” the official said. The RoSCTL includes value-added tax on fuel used in transportation, captive power, farm sector, mandi tax, duty of electricity, stamp duty, embedded SGST and CGST paid on inputs and Central excise duty on fuel. “Although the new scheme has been implemented this month for only a one-year period, the idea is to make it permanent and make it a replacement for the MEIS,” the official said. Once the MEIS is withdrawn from the textiles sector, it would be taken away one by one from other sectors as well as India has moved above the threshold of a per capita gross national income of $1,000, which makes it ineligible to offer export sops to any sector. “While for the textiles sector, there is no room for further extension of the implementation period beyond 2018 as exports officially crossed the threshold limit of 3.25 per cent of world exports in 2010 and the eight-year phase-out period is over, New Delhi is trying to bargain for a longer phaseout period for other sectors,” the official said.
Source: The Hindu Business Line
During April-February of the current fiscal year, exports grew 8.85 per cent to USD 298.47 billion, while imports rose by 9.75 per cent to USD 464 billion. Giving relief to exporters, the government has extended IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020. These exemptions have been extended for exporters buying inputs domestically or importing for export purposes under export oriented unit (EOU) scheme, Export Promotion Capital Goods (EPCG) scheme and advance authorisation. EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports. On the other hand, advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product. The move was aimed at giving relief to exporters as they do not have to pay IGST at the initial point itself. In the GST regime, they have to pay the indirect tax and then seek refund, which is a cumbersome process. In a notification, the Directorate General of Foreign Trade (DGFT) has said that exemption from integrated GST and compensation cess under advance authorisation scheme, EOU, and EPCG scheme of foreign trade policy 2015-20 "is extended up to March 31, 2020".During April-February of the current fiscal year, exports grew 8.85 per cent to USD 298.47 billion, while imports rose by 9.75 per cent to USD 464 billion. The trade deficit has widened to USD 165.52 billion during the 11 months of the current fiscal from USD 148.55 billion compared to the year-ago period.
Source: Economic Times
India is considering to seek extension of the deadline set by the US for withdrawal of export benefits to domestic exporters under Generalized System of Preferences (GSP) programme, sources said. Earlier this month, the US has decided to go ahead with its decision to scrap the preferential trade benefit under GSP scheme after 60 days, which is expected to impact India's exports to the US worth USD 5.6 billion under this scheme. Although, the government has said that the US government's move to withdraw duty concessions on certain products under the GSP programme will not have any significant impact on exports to America, small and medium exporters have flagged concerns. Sources also said that issues can be sorted by holding bilateral dialogues as the US is important economic and strategic partner of India. They added that India may seek two more months for withdrawal of export benefits. The commerce ministry had said that the US move will not have a significant impact on exports to America as the benefits were only about USD 190 million annually. India exported goods worth USD 5.6 billion under GSP last year, but India's total GSP benefits were to the tune of only USD 190 million. GSP benefits are envisaged as non-reciprocal and non-discriminatory to be extended by developed countries to developing economies. US President Donald Trump has said he intends to end the preferential trade status granted to India and Turkey, asserting that New Delhi has failed to assure America of "equitable and reasonable" access to its markets, an announcement that could be seen as a major setback to bilateral trade ties. The US Trade Representative's Office has said that removing India from the GSP programme will not take effect for at least 60 days after notifications to Congress and the Indian government, and it will be enacted by a presidential proclamation. As many as 3,700 products get GSP benefits but India exports only 1,900 items such as chemicals and engineering under that concession, which was introduced in 1976 by the US.
Source: Live Mint
Despite the US withdrawing zero duty benefits on India’s exports worth $5.6 billion, India is unlikely to impose the long pending retaliatory tariffs against the unilateral steel and aluminium duty hikes by the Donald Trump administration. India is likely to opt for the safe option of yet again extending the deadline by another month after the current deadline expires on 31 March. “Allowing the notification for retaliatory tariffs to lapse at this time will send a wrong signal and will show Indian government in poor light. Hence, the deadline for its implementation may be further extended. A final decision will be taken by the Prime Minister’s Office," a commerce ministry official said speaking under condition of anonymity. India on 20 June notified that it will raise tariffs on 29 US products, including almonds, apples and phosphoric acid worth $235 million in retaliation to the unilateral steel and aluminium duty hikes by the US. India did not impose the tariffs immediately, unlike other major trading partners of the US as the two countries were engaged in bilateral negotiations to finalize a trade package to douse tensions. However, on 4 March, the US announced that it is withdrawing GSP (Generalized System of Preferences) benefits to Indian exporters signaling that the talks for a trade package have failed. The higher tariffs on Indian goods after withdrawal of GSP benefits will come into effect in early May—60 days after the date of announcement. Another commerce ministry official said the ministry was keen that the prime minister write a letter to US president Trump requesting to extend the 60 day deadline by another 60 days to allow a new government at the Centre to revive negotiations for a trade package. “However, prime minister was unwilling given the ongoing electoral process. He has asked trade minister Suresh Prabhu instead to write a letter to his US counterpart conveying the same message," the official added.
Source: Live Mint
Despite all the push from center and state government, the central government’s financial aid schemes for Micro, Small and Medium Enterprises (MSMEs) like loan in 59 minutes and startup India didn’t perform well in some districts of Gujarat as expected, according to the State Level Bankers’ Committee (SLBC) report. The under performance of the government’s schemes in various districts of Gujarat such as Vadodara, Gir Somnath and Kutch is due to red-tapism and non-cooperation of the government which poses biggest challenges for the MSMEs to avail the benefits of such schemes, said Nimish Phadke, Managing Director of Federation of Kutch Industries Association (FOKIA), while speaking with KNN India. He stated “There is no MSME support system in the state despite all the push from the government and this is happening since last many years.” As far as Kutch is concerned there is no startup ecosystem in place and it could be major reason for the failure of existing schemes run by government, said the Managing Director of FOKIA, an umbrella organization of large, medium & small industries and association. More or less, despite good efforts or steps by the central government, banks are not actually keen to give loans to MSMEs due to which MSMEs suffer a lot. According to SLBC report, the performance of MSME support and outreach campaign as of February 28, 2019 as far as ease of credit and employee social security is concerned underperformed in districts like Kutch, Vadodara, Somnath while the performance is quite remarkable in other districts like Ahmedabad, Surendranagar, Bharuch and Surat. As per the data available on the SLBC-Gujarat website, Surendranagar, which is a hub of cotton and ginning activities in India, with a large number of ginning and pressing units achieved 207 per cent of its target. With many large chemical plants producing fertilizers, paints, dyes, cotton, textiles, and dairy products, Bharuch managed to achieve the target of126.07%, while Valsad which is also known for its industrial base for Chemicals, Textiles and Paper & Paper Pulp industry sectors achieved the 164.27%.Besides this, Surat, the hub for textiles and diamond cutting & processing industries and Ahmedabad which is known as the "Manchester of the East" for its textile industry achieved 135.98 and 100.17 per cent respectively. The data further reflects that of total 89 districts, 3 districts of Gujarat namely the Kutch, Vadodara and Somnath fared poorly under the campaign, with 46.99%, 49.43 % and 34.27% respectively. While Rajkot achieved at least 70 per cent target under the campaign, the data reveals. Earlier, MSME support and outreach campaign was slated for 100 days. However, owing to the under-achievement of targets by few districts, the campaign was extended till February 28, 2019, stated the report after the 160th meeting of SLBC-Gujarat.
Source: Knn India
The timing of RBI sterilisation becomes important for spot dollar behavior. In a move that is reminiscent of the Foreign Currency Nonresident Scheme launched during the taper tantrum of 2013, the Reserve Bank of India has announced an auction for a buy/sell (B/S) swap for a three-year maturity for $5 billion (Rs 35,000 crore). The Fx and money market participants are engaged in a heated debate as to whether this is merely an addition to RBI’s liquidity or whether it is a move to bring down hedging cost. Either way, the move has implications. Firstly, the genesis of the need to announce such a B/S swap was probably the need to find one more tool to inject liquidity. Just like the current year, projections indicate that the perennial bug bear of liquidity –– the increase in currency in circulation –– will again necessitate the RBI to undertake large scale operations to infuse liquidity in the next financial year as well. RBI’s OMO purchases however has its own twin limitations of indirectly funding the government borrowing programme and in having an overbearing influence on the sovereign yield curve. There has been an increase in the domestic assets in the RBI’s balance sheet due to these purchases and there was a need to balance the same by increasing the foreign exchange assets. These reasons may have been the driving factors behind the announcement. Secondly, the move will have implications on forward premia and MIFOR curve in India. While forwards up to one year is directly traded in the market, anything beyond a year is traded through the MIFOR curve, which is a combination of USD IRS and forward premia. Since RBI will be the receiver of forward premia for three-year maturity under the swap to the extent of $5 billion, it will lead to a fall in FX swap rates. There will be good receiving interest in MIFOR from traders in anticipation of a fall in rates when RBI receives. Thirdly, lower forward premia and MIFOR would make it easier for the balance sheets of banks and corporates to raise dollar funds offshore and swap it into cheaper rupee liquidity. A fall in the landed rupee cost will incentivise them to be incrementally more aggressive in the offshore market for liquidity. Fourthly, the reduction in forward premia, would incentivise FPI flows into debt instruments especially in corporate bonds, where on a fully-hedged basis, the spreads become more attractive. This is relevant in the light of the “Voluntary Retention Route” which puts limits to FPIs for sovereign and corporate bonds for a lock-in of three years. In spot markets, the timing of RBI sterilisation becomes important for spot dollar behaviour. The announcement of B/S swap route to sterilise dollar liquidity indicates less than aggressive spot intervention. With moderating trade deficit, subdued inflationary environment and surfeit of capital inflows, RBI is probably implicitly suggesting a higher tolerance for rupee appreciation in the near term.
Source: Economic Times
The commerce ministry has introduced an online system for exporters to obtain export licence for restricted category goods, a move aimed at promoting paperless work and ease of doing business. "It has been decided that applications by exporters will be filed online on E-COM module for export authorisations. The consultation process with administrative departments will also be online," the Directorate General of Foreign Trade (DGFT), an arm of the ministry, has said in a trade notice. The notice came into effect from March 19 this year. Exporters need to obtain licence from the government for certain restricted category goods such as bio-fuels. Currently, application for export of such goods are filed in hard copy and the consultation with the concerned agencies is also done manually. The move, it said, is aimed at simplifying application filing, and expediting the processing and issuance of export authorisation. The development will help in promoting ease of doing business for such imports, an official said. In the online application, exporters will have to upload certain documents such as copy of purchase order of firm involved in the export, and Aayat Niryat Form. "No hard copy of the application and documents is required to be submitted to DGFT," it said, adding that as a transition arrangement, applications shall be accepted off-line also till March 31. "From April 1, 2019 it is mandatory to apply online only," it added. Commenting on the move, Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said this is a welcome development and it will help exporters to cut transactions cost also. "We need more such steps to promote the country's exports," he said. Recently, the directorate has also come up with a new online facility for obtaining import licence for restricted category goods. In the latest ease of doing business report of the World Bank, India improved its ranking to 77th rank in 2018 out of 190 nations from 100th earlier. These rankings are based on 10 parameters, which include trade across borders, enforcing contracts and resolving insolvency. In the parameter of 'Trading across Borders', India's rank improved to 80th in 2018 from 146th rank in 2017. During April-February 2018-19, the country's exports grew 8.85 per cent to USD 298.47 billion, while imports rose by 9.75 per cent to USD 464 billion.
Source: Business Standard
Officials unveil adjustments to allow easier access for foreign investors. The negative list this year will further improve the business environment for foreign investment as part of the country’s efforts to open up its economy and pursue high-quality development, senior officials and experts say. A negative list indicates areas where investment is prohibited; all other areas are presumed to be open. The country will also introduce more opening-up measures for agriculture, mining, manufacturing and services and allow wholly foreignowned enterprises to operate in more areas, said Ning Jizhe, vice-minister of the National Development and Reform Commission, on March 6. “We will stay true to developing a high-level open economy, fully implementing the management system of pre-establishment national treatment and negative lists and taking measures to encourage foreign investment,” Mr Ning said at a news conference during the two sessions, the annual meetings of legislators and political advisers. To break new ground in opening-up on all fronts, we need to further open the markets to foreign investmentLi Gang Pre-establishment national treatment is where foreign investors are treated the same as domestic ones in the early stages of setting up a business. China has begun the revision of its negative list for foreign investment and will continue to carry out test programmes for further opening-up in free trade zones, Mr Ning said. Li Gang, vice-president of the Chinese Academy of International Trade and Economic Co-operation, said that as China’s economy is transitioning to a phase of high-quality growth, the country needs to further push reform and expand opening-up. “To break new ground in opening-up on all fronts, we need to further open the markets to foreign investment,” Mr Li said. “Compared with developed countries there’s plenty of room to shorten the negative list,” he said. The key will be to promote rules-based institutional reform, putting greater emphasis on opening-up based on rules and related institutions, he said. “In times of economic globalisation, we can’t afford to pursue development with the door closed. In fact many of our industries are still on the low to medium tier compared with other leading countries. So we need to introduce and encourage more foreign investment to usher in more advanced manufacturing, modern services and other key sectors, which will help the country foster high-quality growth and innovative economic upgrading.” A new catalogue of encouraged foreign-invested industries will be published, Mr Ning said. The list aims to encourage more foreign investment in more fields, because foreign investment will play a key role in the transformation and upgrading of traditional industries, the development of emerging industries and coordinated regional development. With the implementation of various supportive policies, I believe this year the Chinese economy will register good performanceHe Lifeng “The commission will work with other departments and local governments to remove access restrictions for foreign investment in areas outside the negative list,” Mr Ning said. “We will offer fair treatment for foreigninvested companies in terms of government procurement, setting of standards, industrial policies, technological policies, qualification licensing, registration levels, going public and access to financing.” Foreign direct investment in China rose 3 per cent to $135 billion (£103 billion) last year, and the number of newly established foreign-invested companies increased by nearly 70 per cent, Mr Ning said. “With the implementation of various supportive policies, I believe this year the Chinese economy will register good performance,” said He Lifeng, minister of the commission. The economy will maintain steady progress with sound growth, and the government’s stated target will be met, he said. Mark Gibbs, global executive vice-president of the German software company SAP, said the company is highly confident about the long-term growth in China. “China has successfully managed fast and strong economic growth for decades; the country’s pace of innovation today is also unprecedented.” SAP has benefited from China’s reform and opening-up, and it has announced a new five-year plan to increase investment and deepen its long-term strategic commitment in China, Mr Gibbs said. “The new plan aims to help our customers deliver intelligent enterprises in China’s fastdeveloping digital economy and support China’s Belt and Road Initiative and sustainable development.” China has made big strides in fostering a better business environment. The country ranked 46th out of 190 countries in the World Bank’s recently issued ease-of-doing-business rankings for 2018, compared with 78th place in 2017.
Source: The Telegraph
This year over three lakh workers have left the city, unlike 1.5 lakh going every year to celebrate Holi in their native villages Surat: Man-made fabric production in the country’s largest polyester hub in Surat is expected to be hit as more than three lakh workers had left the city for celebrating Holi and Dhuleti festivals in their hometowns in North India. Ashish Gujarati, leader of power loom sector, said every year, workers move out of the city to celebrate Holi and Dhuleti festivals with their family members in their native villages. This time over three lakh workers have left the city, unlike 1.5 lakh going every year. This will hit production of polyester fabric in the city. Jitu Vakharia, president, South Gujarat Textile Processors' Association, said, “Over 70,000 workers had left the city for celebrating Dhuleti festival and majority of them will now come only after June. This will create a huge backlog of work in textile dyeing and printing mills. We have asked contractors to ensure that the workers are present in the mills before May.” Ashok Jirawala, president, South Gujarat Power loom Association, said, “Every year workers leave to celebrate Holi festival with their families back home. But this time, huge number of workers have left the power loom weavers in the lurch. The weavers are staring at huge production loss ahead of the summer season.”
Source: Times of India
Kenya’s small and medium enterprises (SME) have been urged to embrace e-commerce as a strategy to grow their business, increase capacity and attract long-term financing. Business and corporate leaders meeting during the E-Commerce Kenya Conference at Strathmore University said that online trading is an indispensable proposition in the growth of the SME sector. Strathmore Business School Dean George Njenga said the businesses must deploy e-commerce strategies to capture county and national markets before eventually taking part in intra-Africa trade. “E-commerce is creating immense opportunities both locally and internationally and we must support entrepreneurs and business to develop their skills and competencies to compete at a continental level,” he said. UBA East and Southern Africa Chief Executive Emeke Iweriebor was among the keynote speakers.
Source: The Standard Media
Soon on the cards is a visit from Tirupur-based knitwear industrialists’ visit to Ethiopia for purpose of analyzing the prospects of making investments in the African country. The group of investors from the knitwear segment has planned a team visit. Their plan to explore opportunities in Ethiopia follows close on heels to the information flowing from the Ethiopian ministry officials to N Sreedhar, Chairman of Tirupur Chapter of the confederation of Indian Industry (CII) that there are a slew of advantages including cheap labour and free trade access to European and American markets. The CII chapter at Tirupur is organizing the business tour. Sreedhar, in a media statement disclosed, “In Tirupur cluster, we are witnessing increase of production and operation costs. Many established players are looking for expansion opportunities. While Chinese companies are investing heavily in underdeveloped countries to make use of trade advantages of those countries, Indian companies should also be in the fray to compete favorably. ” Sreedhar added, “Having expertise in the international market, the companies can look for investment opportunities in countries like Ethiopia. With that, they can improve their market shares and it will obviously help to improve further relationship between our country and the ones where the investments made.” “It is not about moving whole production machinery out of India. The companies would see the opportunity to expand their business in those countries. The Tirupur units can concentrate on producing bulk quantities of basic styles of garments rather than tough styles, if they invest in Ethiopia. But all such prospects are in preliminary stage. While few companies from Tirupur have invested in Ethiopia, it would be easy for other possible investors to analyze and take decisions,” Sreedhar concluded in his media statement
Source: Textile Excellent
The Lalbhai Group company was listed on the bourses on March 8, 2019. The stock made market debut at Rs 592, appreciating 79 per cent since then Shares of Arvind Fashions surged 10 per cent to Rs 1,060, its highest level since listing on the BSE, in intra-day trade after the change in circuit filter to 10 per cent from 5 per cent. The stock also shifted to ‘B’ group from ‘T’ group earlier. In the trade-to-trade category or ‘T’ group, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory. The counter has seen huge trading volumes with a combined 3.62 million equity shares, representing 6 per cent of the total equity of Arvind Fashions, changing hands on the NSE and BSE. There were pending buy orders for 154,110 shares on both the exchanges at 10:56 am. In comparison, the S&P BSE Sensex was down 0.88 per cent at 37,830 points. The Lalbhai Group company was listed on the bourses on March 8, 2019. The stock made market debut at Rs 592, appreciating 79 per cent since then. Arvind Fashions is the demerged entity of the flagship denim maker Arvind and comprises international brands such as Tommy Hilfiger, Calvin Klein and US Polo Association. Its branded apparel undertaking and engineering undertaking was transferred to Arvind Fashions and Anup Engineering (formerly Anveshan Heavy Engineering), respectively. Shares of Anup Engineering were listed on March 1. Arvind had said the demerger will allow each business to have a sharper focus on developing their own aggressive growth models, on making their own capital allocation decisions and on incentivising their teams. This sharper focus will enable businesses to create long-term shareholder value. Analysts at Antique Stock Broking believe that Arvind Fashions is well positioned to record stable growth in revenue, expansion in margins and improvement in cash flows. This, in turn, should trigger multiple re-rating. The company has undertaken several strategic initiatives across its business segments; brand portfolio, value fashion retail store "Unlimited" and premium beauty retail store "Sephora" to drive revenue growth. In the brand portfolio, power brands are likely to lead growth backed by channel expansion and focus on high growth categories (kids wear, innerwear, footwear, accessories). In value fashion retail, Arvind Fashions has accelerated store addition rate from 15-20 store during FY16-18 to 35-40 stores p.a. during FY19-22e. “As per management guidance, value fashion retailing is likely to achieve breakeven by FY20e. AFL is a leader in premium beauty segment. The company is likely to drive the expansion of beauty stores (a.k.a Sephora) by penetrating small cities. Further, management guides for divestment of 2-3 non-core brands by 1HFY20e,” the brokerage firm said in company update.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1312.77 |
USD/Ton |
0% |
3/25/2019 |
|
VSF |
1809.89 |
USD/Ton |
-0.33% |
3/25/2019 |
|
ASF |
2443.95 |
USD/Ton |
0.06% |
3/25/2019 |
|
Polyester POY |
1338.07 |
USD/Ton |
0% |
3/25/2019 |
|
Nylon FDY |
2902.38 |
USD/Ton |
0% |
3/25/2019 |
|
40D Spandex |
4748.00 |
USD/Ton |
0% |
3/25/2019 |
|
Nylon POY |
5626.15 |
USD/Ton |
0% |
3/25/2019 |
|
Acrylic Top 3D |
1577.70 |
USD/Ton |
0% |
3/25/2019 |
|
Polyester FDY |
2694.00 |
USD/Ton |
0% |
3/25/2019 |
|
Nylon DTY |
2604.70 |
USD/Ton |
0% |
3/25/2019 |
|
Viscose Long Filament |
1533.05 |
USD/Ton |
0% |
3/25/2019 |
|
Polyester DTY |
3125.64 |
USD/Ton |
0% |
3/25/2019 |
|
30S Spun Rayon Yarn |
2589.82 |
USD/Ton |
-0.29% |
3/25/2019 |
|
32S Polyester Yarn |
2016.78 |
USD/Ton |
0% |
3/25/2019 |
|
45S T/C Yarn |
2872.61 |
USD/Ton |
0% |
3/25/2019 |
|
40S Rayon Yarn |
2947.03 |
USD/Ton |
0% |
3/25/2019 |
|
T/R Yarn 65/35 32S |
2530.28 |
USD/Ton |
0% |
3/25/2019 |
|
45S Polyester Yarn |
2173.06 |
USD/Ton |
0% |
3/25/2019 |
|
T/C Yarn 65/35 32S |
2574.93 |
USD/Ton |
0% |
3/25/2019 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
3/25/2019 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
3/25/2019 |
|
40S Combed Poplin |
1.11 |
USD/Meter |
0% |
3/25/2019 |
|
30S Rayon Fabric |
0.64 |
USD/Meter |
0% |
3/25/2019 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
3/25/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14884 USD dtd. 25/03/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
‘Fiscal stabilisation needed to respond to economic shocks in Europe’. The U.S.-China trade war poses the biggest risk to global stability and fiscal stabilisation is needed to respond to economic shocks in Europe, IMF First Deputy Managing Director David Lipton said on Monday. “Obviously, this is not a matter for Europe alone. The United States needs to get its fiscal house in order as well. U.S.-China trade tensions pose the largest risk to global stability,” Mr. Lipton said at a conference here. The trade dispute, which began eight months ago, had affected the flow of billions of dollars of goods between the biggest and second-biggest economies in the world. Mr. Lipton said he believed fiscal stabilisation capacity must be at the heart of risk reduction in Europe, describing it as crucial to “respond to macroeconomic shocks and improve the fiscal-monetary policy mix.” “In its absence, the Euro area will remain over-reliant on monetary policy for stabilisation and too much of the burden of crisis response will fall on individual countries, with their ability to respond depending on each country’s fiscal space.” Mr. Lipton said Britain’s planned exit from the EU was also breeding uncertainty in Europe and beyond.
Deceleration in Europe
Regarding Europe’s recent economic deceleration, he said each EU member state should “strengthen their defences ahead of a potential downturn,” including those countries that have not addressed “glaring vulnerabilities,” notably Italy. “A serious recession could be very damaging for these countries, because they will be shown to be ill-prepared,” he said. “Their weaknesses could present a serious setback for Europe’s goal of convergence of standards of living, productivity, [and] of national well-being.”
Source: The Hindu
The country is facing fierce competition, even in the domestic market. Businesses therefore need to better exploit the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Tra fish is processed by the Southern Fishery Industries Company Limited in the southern city of Can Tho. Fishery and marine products, along with other key exports such as wood, electronics and textile and garment products, will be exempt from tariffs either immediately or in three to five years because Viet Nam is one of the 11 member countries of the CPTPP trade pact. Minister of Industry and Trade Tran Tuan Anh made the statement at a conference on the CPTPP and market development held in the southern city of Can Tho on Thursday. Anh said the active participation, negotiation and signing of the CPTPP showed the unified policy of the Party and Government in international economic integration. “The ministry has implemented solutions to expand markets, promote exports, strengthen import control and limit its trade deficit. It is formulating and submitting to the Prime Minister a scheme on handling international trade disputes, promoting implementation of key projects, and increasing the industry’s production capacity to contribute to economic growth,” he said. The minister said verifying the origin of products is a basic requirement when exporting to foreign markets. The import markets have the right to select businesses and grant import permits. Management agencies need to improve the law to meet market demand. Meanwhile, enterprises need to accompany the State management agencies to orient the market and actively participate to expand. Luong Hoang Thai, director of the ministry’s Multilateral Trade Policy Department said CPTPP members committed to remove 78 to 95 per cent of import taxes as soon as the agreement took effect. Many key exports such as agricultural products, seafood, shoes, garment and textiles, wooden products, electronics and rubber would enjoy zero tax immediately or three to five years later. “However, fierce competition requires careful preparation from local businesses when joining the CPTPP,” Thai said. To improve competitiveness of small and medium-sized enterprises (SMEs), he said that the Government needs to provide adequate information to SMEs, creating an equal business environment, satellite businesses and new regional supply chains. Pham Tuan Anh, deputy director of MoIT’s Department of Industry said the industrial sector continued to play an important role in Viet Nam’s socio-economic development with key export products. This result was partly thanks to opportunities from signed bilateral and multilateral free trade agreements (FTAs), contribute to market expansion, increase investment to expand domestic production, and boost export growth. "Participating in the CPTPP helps Viet Nam multilateralise economic and trade relations, avoiding risks due to dependence on some big markets,” he said. The CPTPP would create opportunities for enterprises to export timber and wood-based products to boost exports when products such as plywood, picture frames, door frames and especially furniture which are subject to import duties of between 6 and 9.5 per cent will be removed immediately. With the textile and garment industry, the export tax rate on textiles and garments to markets that do not yet have a common FTA is currently above 10 per cent on average. When the CPTPP took effect, Vietnamese garment and textile products which meet with common technical standards would enjoy a zero tax rate. The sector would be strengthened with competitive advantages in price. It is also a motivation for domestic and foreign investors to invest in developing raw materials and support industries in Viet Nam. It would establish links in the garment and textile chain more effectively, creating a foundation for the industry to develop sustainably. However, the CPTPP also poses many challenges, requiring Vietnamese enterprises to have thorough preparation as well as long-term strategies to improve competitiveness in the international arena. Vu Duc Giang, chairman of Viet Nam Textile and Apparel Association (VITAS) said there are both opportunities and challenges for the industry. “In the industrial development programmes, attention should be paid to creating uniformity in investment and planning of enterprises in the industry into industrial parks to ensure environmental issues and labour safety standards as well as focusing on sustainable development, as these are requirements when bringing goods into the CPTPP market area,” Giang said. The conference, with the participation of more than 300 people from agencies, associations and businesses in 19 southern localities, aimed to resolve difficulties when joining the CPTPP and other FTAs.
Source: Vietnam net
The textile industry is seeking the government’s protection from high growth of imports as the sector could not compete in both domestic and international markets. According to data from Statistics Indonesia (BPS), export growth in the textile industry has been just 3 percent annually over the last 10 years, while import growth was 20 percent annually in the same period. Indonesian All Textile Experts Association (IKATSI) chairman Suharno Rusdi said the textile industry was currently in very bad condition because the domestic market was flooded by imported products. “If it is allowed to happen continuously, it would endanger our textile industry and textile products because we will rely on imported products and the local textile industry will further lose its domestic market,” he said on Monday as quoted by kontan.co.id. To deal with the issue, Indonesia needed to introduce a law on cloth sovereignty to help the domestic textile industry to develop, Suharno said, adding that the law would not only regulate imports, but also had to offer incentives to support the development of the national textile industry. “The existence of such a law is urgent for the national industry. IKATSI will struggle to support the birth of such a law,” he said. Indonesian Filament and Fiber Producers Association (APSyFI) secretary-general Redma Gita Wirawasta made a similar statement, saying the upcoming Idul Fitri celebration should be used as an opportunity by the government to protect local textile products from the storm of imported products. “In the last five years, Indonesia’s local textiles could not benefit from Idul Fitri because of the entry of thousands of containers of textile products to the Indonesian market,” Redma said, adding that in 2017, Finance Minister Sri Mulyani Indrawati tried to stop the massive entry of textile products, but it only lasted six months. Therefore, Redma called on the Trade Ministry to immediately control the entry of textile imports to help the local industry survive. He also called on President Joko “Jokowi” Widodo to pay attention to the issue because the massive imports of such products had also contributed to the country’s trade deficit.
Source: Jakarta Post
Vietnam's garment and textile industry has continuously promoted investment and implemented solutions to dominate the domestic market besides maintaining exports. However, businesses in the industry need to improve product quality and renew designs to increase their competitiveness towards sustainable development. Pressure from foreign "giants" The "landing" of giant global enterprises in the fashion industry in the Vietnamese market in recent years has brought about thousands of billions of Vietnamese dong in revenue each year, which startled domestic enterprises, urging them to draw experience on business strategies. Since joining in the Vietnamese market in September 2016, the revenue of Zara Vietnam has continuously increased, from VND321 billion (US$13.80 million) after four months of operation to more than VND1,100 billion (US$47.3 million) in 2017. The company was estimated to gain a higher revenue of VND2,300 billion (US$100 million) in 2018. Similarly, Hennes & Mauritz AB (H&M), a fashion company based in Sweden, officially launched its store in Vietnam in September 2017. After more than a year in Vietnam, H&M has expanded to six stores in Hanoi and Ho Chi Minh City. Along with the popular basic product lines, H&M has advantages in new designs and it also sells accessories at reasonable prices. In addition, the H&M in partnership with renowned designers such as Karl Lagerfeld, Balmain (Sweden) and GP& J Baker (the UK) to produce and sell fashion products. H&M does not disclose its business results in Vietnam, but it assesses Vietnam as an attractive and potential market for fashion retailers. After Zara and H&M, Uniqlo - a famous fashion brand from Japan, is also preparing to enter the Vietnamese market in the near future, demonstrating the attractiveness of foreign fashion to Vietnamese fashion followers. As one of the leading countries in textile and garment exports, domestic garment and textile enterprises have constantly invested in equipment and improvements to designs in a bid to increase their market share and enhance their performance. So far, several domestic apparel brands have been well received by consumers such as May 10 (Garment 10 Corporation), Viet Tien, and others. Head of the Marketing Division of May 10, Bui Duc Thang, affirmed that Vietnam's fashion market is witnessing positive changes through breakthroughs in design and customers' fashion thinking. Understanding this demand, foreign fashion firms such as H&M, Zara, and Uniqlo are expanding their influence and gradually approaching the Vietnamese market in many different ways. This is also an opportunity for domestic textile enterprises to assess the issue scientifically based on the market's reaction to these brands to make appropriate adjustments regarding product strategy and the way to approach and serve customers. With the advantages of distribution networks, resources and costs, May 10 is capable of competing fairly with international fashion brands. The company has recently offered a wide range of stylish and diverse fashion products in various types of materials in accordance with the current trend of Vietnamese and international fashion, with some high-end fashion products such as Eternity GrusZ, May10 M series, ECO product line or modified Ao Dai. Similarly, Chien Thang Garment Company has launched its Padu fashion line and Duc Giang Corporation introduced its fashion brands of HeraDG, Paul Downer, DGC, Dugarco Collection, and others. Increasing localisation rate General Director of the Vietnam National Textile and Garment Group (Vinatex) Le Tien Truong affirmed that, to expand the market share and develop the domestic market, it is necessary to carefully consider strategies in accordance with the capacity of the distribution system. The success of foreign firms does not mean that domestic firms will succeed. Foreign enterprises have advantages in finance, human resources, modern management methods, and others. Therefore, they can sell products at low prices to attract consumers. If domestic firms open new stores massively while not ensuring the quality and origin of products, they will lose prestige and customers. The domestic market is definitely important but domestic firms should cut their coat according to their cloth. Over the past few years, Vietnam's textile and garment industry has always been proud to be one of the top three exporters of textiles and garments in the world. However, domestic enterprises seem to vacate their home market and give up the market to foreign fashion firms. Being aware of the problem, in the past few years, domestic enterprises have constantly boosted their investments and improved technology while creating new samples to enhance the added value of each product. Chairman of the Vietnam Textile and Apparel Association (Vitas) Vu Duc Giang said that Vietnam currently has 158 domestic garment brands and most of them are aware of the value of brands and packaging added to products and are not dependent on foreign brands. The Vietnamese textile and garment industry is also gradually raising the localisation rate and focusing on developing the domestic market, including the participation in the programme "Vietnamese people prioritise using Vietnamese goods" and programmes to bring textile products to industrial zones. Furthermore, the industry has taken the initiative in devising development strategies and calling for investments in the segment that Vietnam faces shortages. In addition, the domestic textile industry has promoted the training of resources to meet the requirement from the industrial revolution 4.0 and the increasing demands of the domestic and international fashion industry. A representative from Vinatex said that the group has been continuously responding to the campaign "Vietnamese people prioritise using Vietnamese goods" through practical actions. Vinatex not only calls for its member units to participate in the campaign and develop long-term strategies in the domestic market, it also signs deals with other corporations to support each other and use each other's products. Thanks to its considerable efforts, the total domestic revenue of Vinatex reached more than VND12,638 billion (US$543.43 million) in 2018, up 22.58% compared to 2017. However, in order to make apparel products win the heart of the people, it requires the attention and support of relevant ministries and sectors regarding the removal of difficulties in export procedures, reduction of administrative procedures, cumbersome rules and regulations on bidding, and incentives in tax and fees so that businesses find it easy to connect and use each other's products.
Source: Nhan Dhan Online
Nigeria is largely a consumption-based economy with a very low manufacturing base. Most local and multinational businesses rely on imports for sourcing a significant percentage of raw materials, with minimal value addition (mostly packaging) taking place in Nigeria. With purchasing power still low to help many firms break even, one of the options being explored by many is to design such products locally and produce from China. FEMI ADEKOYA writes. Beyond patriotism, encouraging domestic production aids business for the manufacturer, the supply chain, the end-user, and the economies, large and small, that it exists within. However, the appeal to produce locally is easily threatened by challenges of infrastructure, low disposable income, unchecked competition from foreign goods, mostly sub-standard but appealing because of price, quality and access to cheap finance. Considering that key economic factors like labour, population and capacity to buy, used by any investor to determine the availability of a market favour Nigeria, the concerns remain that the Nigerian manufacturing sector is operating below capacity due to several challenges. For local footwear designers like Afolabi and Emmanuel (not real names), producing for the local market requires ability to scale quickly in order to meet consumers’ specification in terms of sizes and design, constant electricity and newer technology to aid the processing of the raw leather and finishing of the final product. To compound their woes, they have to also compete with imported and smuggled shoes from China and neighbouring African countries. For Chinese exporters, saturation in traditional markets means looking for greener pastures elsewhere, particularly in the emerging markets of South America, including Brazil, with its 300-million-strong population, and Africa, especially Nigeria with population estimated to be rising to 200 million. To compete, many of the local designers have had to resort to designing the footwear and then send them to China for mass production with their labels to make it look ‘proudly Nigerian.’ Indeed, the World Bank trade statistics for 2017 showed that 88.2 per cent of total footwear imports come from China, accounting for $115 million, while the highest export for footwear within the period was to United States valued at a paltry sum of $8,461.68. For the textile sector, the Nigerian Textile Manufacturers Association estimates a yearly bill of $1.2 billion from smuggled apparel. There are concerns around the recent signing of the pact forming the African Continental Free Trade Area (AfCFTA) in Kigali. Stakeholders within Nigeria’s textile, apparel and footwear industry are convinced that if the Federal Government signs the agreement, it would have an adverse effect as it could accelerate the importation of cheaper imported textiles and garments.
Why the sector is still in the doldrums
According to industry stakeholders, operators in the sector lack funds to re-tool and upgrade their machines to newer models that can aid efficiency and profitability. With access to local raw materials (cotton in the case of textiles and garments) becoming limited as a result of insurgency in some parts of the Northeast, which has reduced growing of cotton in the region, many operators have resorted to using other variants available through petrochemicals. Similarly, they alleged that the special intervention fund by the Central Bank of Nigeria (CBN) is not reaching the real stakeholders as modalities to receiving the funds were yet to be determined.
Industry players raise concerns about patronage
The Chairman of Textile Apparel and Footwear Sectoral Group (TAFSG) of the Manufacturers Association of Nigeria (MAN), Alhaji Muhammad Kabir Haruna, who is also a Director of the FAMAD footwear manufacturing company, stated that apart from having to deal with infrastructural challenges that limit competitiveness in Nigeria, many firms do not get patronised by the government nor its agencies. According to him, getting government agencies, especially those under the ministry of interior to procure their footwear from local manufacturers remain herculean as preference for imported footwear remains high. “When you are manufacturing in Nigeria, you have so many things to consider— power, water, roads among others. In other countries, these are even taken for granted, because they are available. For the footwear industry, we also have to deal with the influx of foreign-made footwear, especially those from China. “Despite the Executive Order 003, government agencies find it difficult to patronise local manufacturers. We have exhibited our products, which went through various checks and quality control, and we came out top; yet, they are not open to patronising us. “Now in production of army footwear, there are so many parameters and standards by the United Nations, and you have to meet them. “So, for example, if the army goes on the war front, and a soldier is pierced and injured by a thorn, it affects his capacity to perform optimally, so for that, they need leathered soles and everything, something we can produce in Nigeria, but they took it to Aba, so that if they say they patronise some people in Aba, and they failed, they will say it is the Nigerian manufacturers’ fault”, he added. Beyond challenges with local patronage, he explained that competition with second-hand imported shoes is another problem faced by manufacturers. “Beyond textiles and clothings, there is the influx of second-hand shoes, you may not know it but, in some places, the second-hand shoes imported from God knows where, are even retailed higher than our own brand new locally produced footwear, that is in spite of the health hazards that is inherent in these second-hand shoes. “It is easy in second-hand clothes, you can boil your water, put all the disinfectants and everything and sanitise them before you start wearing, but in the case of footwear, you just have to dust them, shine, and wear them. You don’t know the last user neither his health status”, he lamented. For textile manufacturers, it is not so much of a different story as many institutions, especially primary and secondary schools opt for foreign apparels, while some textile materials are simply designed and mass produced in China. Until the recent intervention of the Federal Government with regard to gas pricing for electricity used by textile manufacturers and the Central Bank’s forex restriction on imported textiles, the industry has continued to operate below 40 per cent of its capacity. According to the Chairman of MAN Gas Users Group, Dr Michael Adebayo, the growth of the manufacturing sector is being hampered by the huge burden of energy crisis caused by power outages and high cost of petroleum products, adding that many factories have stopped production due to the exorbitant and dollarisation pricing of gas. He expressed optimism that the revised gas policy would aid improved productivity in the textile and other allied industries. “Within this year, we plan to increase our shifts and employ more people. A lot of companies have shut down operations due to the high cost of running their plants, coupled with the effects of smuggling on the business”, he added. Similarly, the Nigerian Textile Manufacturers Association (NTMA), also urged the Federal Government to review some of its incentives to foreign investors, in order to promote growth of local manufacturers and a sustainable economy. Hamma Kwajaffa, the Director-General of NTMA said that some of the incentives set to attract Foreign Direct Investments (FDIs) to the country were detrimental and posed a threat to the survival of many local textile manufacturers. “We decry the proposal that operators, who invest a minimum of 10 million dollars in local cotton, and textile garment industry and employ 500 direct Nigerian workers, can import fabrics worth 50 per cent of their operation levy free for a period of five years. “We textile manufacturers in the country have set a target to boost our production and also a 100 per cent off-take of locally produced raw cotton. “What happens to our own cotton produce? Will the farmers wait for you for these five years? With the proposed policy, that means you are discouraging cotton production and invariably the value addition to the textile industry. “After all, there are investors in the country with more than one billion dollars investment such as Sunflag Ltd., UNTL Ltd., which have above that in the textile industry. “The investors that are being encouraged to come in with finished fabrics would kill local manufacturers and hinder our quest to attain global competitiveness. “If new investors are allowed to import fabrics duty free and vat free, it will infringe on the planned 1.7 billion metres of finished fabric sector target programme for the textile industry,” he said.
CBN’s monetary policy to the rescue
The Central Bank of Nigeria (CBN) earlier in March, placed a ban on access to foreign exchange to importers of textile materials in the country. “Effective immediately, the CBN hereby place the access to FX for all forms of textile materials on the FX restriction list. Accordingly, all FX dealers in Nigeria are to desist from granting any importer of textile material access to FX in the Nigerian foreign exchange market”, CBN Governor, Godwin Emefiele said. According to the CBN governor, Nigeria currently spends over $4 billion annually on imported textiles and ready-made clothing. He said the potential market size of the domestic textile industry is over $10 billion. The erstwhile textile industry – which had companies such as United Textiles in Kaduna, Supertex Limited, Afprint, International Textile Industry (I.T.I), Texlon, Aba Textiles, Asaba Textile Mills Ltd, Enpee and Aswani Mills – was the largest employer of labour in Nigeria after the public sector, contributing over 25 per cent of the workforce in the manufacturing sector, according to Emefiele. The industry was supported by the production of cotton by 600,000 local farmers across the country. He said various operational challenges led to the decline of the sector, leaving only the current 25 textile factories, which are operating below 20 per cent of their production capacities with a total workforce of less than 20,000 people. The apex bank governor said a range of strategies would be put in place to check the activities of smugglers, stating the menace of smuggling is a threat to efforts towards achieving self-sufficiency in textiles manufacturing in the country.
Wrong approach, says LCCI
Citing the consequences of using a one-size fits all solution to address trade issues, the Lagos Chamber of Commerce and Industry (LCCI) has stated that the N5 trillion textile industry needs a combination of trade and monetary policies to function efficiently. According to the chamber, the starting point is to strengthen the capacity of domestic industries, enhance their competitiveness, considering that the textile industry has been a beneficiary of several fiscal incentives and protectionist measures over the years, yet remains in stagnation. “The starting point is to strengthen the capacity of domestic industries, enhance their competitiveness, and reduce their import dependence as espoused in the Nigeria Industrial Revolution Plan [NIRP]. “More importantly the power issue needs to be addressed. It is almost impossible to achieve rapid industrialisation without resolving the issue power and the deficit in key infrastructures. Textile production is energy intensive. This is a high energy cost environment and it is very difficult for any energy intensive sector to survive”, the chamber’s Director-General, Muda Yusuf said. To aid the growth of the sector, the LCCI urged the implementation of the executive order of the president, that all uniforms of military and paramilitary institutions should be made from textiles produced in Nigeria, saying this is a low hanging fruit that could be explored while the issue of high production cost is being addressed. “Compelling the citizens to pay exorbitantly for systemic inefficiency is not an appropriate policy option. Such disposition imposes high welfare cost on the citizens, promotes unethical practices in the economy, promotes the growth of underground economy, leads to the loss of revenue to government, and results in job losses. It is an economic management model that is repressive and not sustainable. “There should be collaboration and coordination between the CBN, the Finance Ministry, Budget and Planning and Trade and Investment on trade policy issues. The boundaries of monetary policy need to be properly defined. Exclusion of sectors from the forex market is not a monetary policy issue. It is a trade policy matter. “Monetary policy is about managing liquidity [or money supply] to influence the direction of credit, exchange rate and inflation. Trade policy formulation is not within the remit of the CBN. It is an inter-ministerial responsibility involving the Finance, Budget and Planning, Industry, Trade and Investment Ministries”, Yusuf added. While it may appear that China is losing the competitive edge in mass production due to lingering trade war as well as rising production and labour costs, according to the Textile Industry Chamber of Commerce (CCOIC), there is the need for Nigeria to review its trade strategy with agenda focusing on addressing key infrastructure needed to drive manufacturing. As the LCCI noted, the Nigerian manufacturer will neither compete favourably nor get a chunk of consumers’ disposable incomes irrespective of incentives given if issues of infrastructure as well as patronage by government itself remain unresolved.
Source: The Guardian
China would facilitate more investment by its companies and small and medium enterprises (SMEs) in Bangladesh, according to Chinese ambassador to the country Zhang Zuo. While meeting Dhaka Chamber of Commerce and Industry (DCCI) President Osama Taseer recently, Zhang said the Embassy of China in Bangladesh will work closely with DCCI to facilitate this process. In 2017-18, China’s foreign direct investment (FDI) in Bangladesh, which has immense potential in blue and coastal economy, increased and China has invested more in Bangladesh than any other country, a DCCI press release quoted Zhang as saying. Around 200 large Chinese companies and 200 Chinese SMEs are operating in Bangladesh, he said. He invited DCCI members to participate in the Shanghai Import and Export Fair 2019 in November. The bilateral trade between both the nations in fiscal 2017-18 was $12.40 billion. DCCI sought Chinese FDI for RMG product diversification and allied technology transfer and urged for quick implementation of duty-free and quota-free market access for Bangladesh. (DS)
Source: Fibre2Fashion
Italy and China want to revive the spirit of the ancient Silk Road by deepening their trade and investment ties, Chinese President Xi Jinping said on Friday during a trip to Rome that has raised eyebrows in Washington. Mr. Xi is set to sign a deal on Saturday that will see Italy become the first member of the Group of Seven (G7) major industrialised nations to join China’s “Belt and Road” infrastructure project (BRI), which is inspired by historic, centuries-old trade routes. “We want to revitalise the ancient Silk Road in order to better share the fruits of humanity’s progress,” Mr. Xi said following talks with Italian President Sergio Mattarella. Speaking through a translator, Mr. Xi said the two countries should enhance cooperation in infrastructure, ports, logistics and maritime transport. Besides the BRI accord, various deals worth up to €7 billion ($7.9 billion) are expected to be agreed, including agreements opening up the northern ports of Trieste and Genoa to Chinese containers. Italy's populist government is eager for such initiatives to get underway swiftly as it battles to revitalise a sickly economy, which has slipped into its third recession in a decade. Underscoring the warming bilateral ties, Italy offered Xi an extravagant welcome, with a cavalry phalanx escorting his limousine into the courtyard of the presidential palace -- the sort of entry normally reserved for royalty. He will later attend a state dinner in his honour, where Italian tenor Andrea Bocelli will sing for the 170 guests. Italy's decision to get closer to Beijing has caused concern amongst its Western allies -- notably in Washington, where the White House National Security Council urged Rome not to give ”legitimacy to China's infrastructure vanity project”. Critics of the BRI say it is designed to bolster China's political and military influence, bringing little reward to other nations, and warn that it could be used to spread technologies capable of spying on Western interests.
Human Rights
In an effort to allay such fears, Rome moved hastily this week to protect its telecoms sector from foreign predators, and the Italian president stressed on Friday that any deals had to be to advantageous to both countries. “The Silk Road must be a two-way street and not only trade must travel along it, but also talent, ideas and knowledge,” Mattarella said, with Xi standing alongside him. The two men promised to bolster cultural connections, saying they would twin Italian and Chinese UNESCO heritage sites. Mattarella also stressed the importance of safeguarding human rights but did not go into specific details. The U.S. State Department earlier this month slammed rights violations in China, saying the sort of abuses it had inflicted on its Muslim minorities had not been seen “since the 1930s.” China denied the accusation as groundless and prejudiced. Italy's rapprochement with Beijing has come as U.S. President Donald Trump wages a trade war with China, accusing the world's second-largest economy of unfair trade practices. Trump's former chief strategist Steve Bannon is in Rome and called on the Italian government to rethink its position. “I beseech the people of Italy to look at China's predatory economic model before signing any deals,” he told reporters. ”The Chinese have a rapacious appetite for global domination.” After leaving Italy on Sunday, Xi will travel to Monte Carlo and then on to Paris, where he will hold talks with French President Emmanuel Macron, German Chancellor Angela Merkel and European Union Commission President Jean-Claude Juncker.
Source: The Hindu
To tap into the rapidly growing Indian ferrous and non-ferrous metals processing industry and stricter air quality monitoring norms, Milan-headquartered SME Ekoplant has set up shop in the country, floating a 100% wholly-owned subsidiary Eko Air Filtration India Private Limited(EAFIPL). “For Indian industries using combustible processes and gaseous emissions, finding the right technology that enables them to meet legally stipulated air pollution norms within acceptable limits has been a headache for long,” SME Ekoplant sales director Antonio Zocch tells Mining Weekly Online. “Since the Indian economy is growing very fast there is a rising concern to minimise the gap in research and development (R&D) and we will try to enhance technical, engineering and advanced R&D to offer industrial dust and gas treatment solutions to Indian ferrous and non-ferrous manufacturing processes through our new Indian subsidiary,” Zocche says. He adds that EAFIPL will offer Indian industries expertise in lower pressure bag filters with casings of filtering elements made of textile or fabric felt with the correct pitch for the exact ascension velocity. The innovative products of the company’s proprietary technology ensure that dust remains outside the filters, and that compressed air is injected at low or high pressure in opposite directions forcing the dust to fall into hoppers, eliminating all risks to ambient air quality, so critical in meeting environmental regulations across processing industries. The low pressure, 2.5 bar, air injection technology developed by SME Ekoplant to clean the dust bags ensures higher longevity of the system and hence lower costs over the lifetime of the product, Zocche says. The company has already bagged initial orders for supplies of equipment to iron-ore miner and integrated steel producer, JSW Limited’s operations at Dolvi in Maharashtra in the west and Vijayanagar in southern India.
Source: Mining weekly
South Korea has launched a blueprint to foster its robot industry. The Asian country aims to become the fourth-largest player in the sector with a market size of KRW 15 trillion (approximately USD 13.2 billion) in 2023, Yonhap news agency reports. Under the plan, South Korea plans to have 20 companies with annual revenues of KRW 100 billion and above in 2019, up from six in 2018, the Ministry of Trade, Industry, and Energy said. The size of the country's robot industry was estimated at around KRW 5.7 trillion in 2018. "Following the recent development of new technologies, including artificial intelligence and fifth-generation network, robots are getting smarter, and they are anticipated to be applied throughout a wider area of daily life", Industry Minister Sung Yun-mo said. South Korea reports it currently has around 710 robots per 10,000 workers in the manufacturing segment, compared to the global average of 85. The country, however, still lags behind in terms of applying such equipment in other areas, including the textile and foodstuff industries. There are around 140,000 robots in the electronics segment, above the 2,500 units estimated for the textile industry, the ministry added. The government plans to boost growth of robot rental and lease services, also by lowering barriers. The ministry plans to have the total number of robots used in local industries reach 700,000 units in 2023, up from 320,000 units posted in 2018. South Korea also plans to use more robots in the service sector as well. "Considering the profitability and potential, we plan to foster service robots in prominent areas, including elderly care, healthcare, logistics, and wearables", the ministry said. The government is currently reviewing a KRW 300 billion project to foster service robot systems. This project will run from 2020 to 2026. The Korea Institute for Robot Industry Advancement will open a support center this year to provide consulting services with companies that wish to expand into the service robot industry, but face hurdles due to regulations, the ministry added, and potentially give exceptions. South Korea also seeks to acquire core technologies for robots and reduce its dependency on other advanced countries, including the US and Japan, both in terms of hardware and software. The ministry will allocate KRW 100 billion starting in 2020 to acquire technologies for core robot parts, including intelligent controllers, self-driving sensors, and smart grippers, as well as with software, over the following seven years.
Source: Telecompaper
