The textile industry is seeking a cut on goods and services tax (GST) from the GST Council meeting on Friday. At a recent meeting with Union Finance Minister Nirmala Sitharaman, it had urged a uniform GST rate for the entire industry. Currently, the cotton textile value chain — yarn, fabric, apparel, and others — attracts a uniform GST rate of five per cent. Purified terephthalic acid (PTA), the key input in making polyester yarn and fabric attracts 18 per cent. And, polyester yarn and fabric are taxed at 12 per cent and five per cent, respectively. “Because of the current inverted tax structure, the requirement of working capital for synthetic yarn goes up to the extent of six per cent due to higher GST incidence on raw material than finished products. Therefore, there is a need to rationalise GST across the value chain from PTA, yarn and fabric to five per cent. The cut in rate would enhance cash flow and reduce prices of synthetic yarn and fabric,” says Madhu Sudhan Bhageria, chairman, Filatex India. In cotton fabric, there is no such inverted duty structure. At the said meeting, the finance minister had assured a re-look on the matter. Polyester yarn is 78 per cent of the total volume of man-made fibres produced in India. Ujjwal Lahoti, chairman of The Cotton Textiles Export Promotion Council, calls for a uniform five per cent of GST across the entire textile value chain. “While the cotton textile industry is enjoying five per cent GST, the same should be applicable for synthetic textile players as well. A uniform duty structure would help with long-term decision making on investment and competitiveness,” he said. An investment of Rs 1,000 crore in the polyester yarn sector can generate employment for 2,500 people, say companies. Global production of natural fibres was nearly 30.6 million tonnes in 2008 and is now 32 mn a year, a compounded annual growth rate of 0.5 per cent. Synthetic fibres have grown from 45 mn in 2008 to 79 mn currently, a compounded annual rise of 5.9 per cent in the past decade.
Source: Prime Time
MUMBAI: Ahead of Prime Minister Narendra Modi's American visit, Commerce Minister Piyush Goyal on Friday said India and US should aim to increase bilateral trade to USD 500 billion from the under USD 150 billion. The minister also said that both the governments are working on "hiccups" which have impacted the ties in the past, and seeking to strengthen the relationship. The Commerce Minister's remarks come a day ahead of Modi's American visit, where he is going to address a joint event with US President Donald Trump. Trade ties between the two countries have been mixed in the immediate past, with Trump frequently flagging concerns over aspects such as import duties. The Trump administration has also capped H1-B visas at lower levels to protect domestic jobs, reducing the number of Indian techies going to the US. "We can have significant ramp-up of the Indo-US engagement bilaterally...India should not look at anything less than USD 500 billion trade with the US. that is the kind of target we should look at," Goyal said, speaking at an Indo American Chamber of Commerce (IACC) event here. "Let's look at a very ambitious trade target, and once we look at an ambitious trade target, I am sure things will start falling in place," Goyal said, acknowledging the help of the Trump administration in deepen administration in deepening the ties. In May this year, the IACC had said that there is a possibility to take the Indo-US trade to USD 500 billion by FY24 from the present USD 142 billion. Goyal did not specify the timeline by which he wants the bilateral trade to touch USD 500 billion. Goyal said both imports as well as exports between the largest and the oldest democracies in the world have grown in the recent past, which should comfort stakeholders on either side. The minister said he is also in touch with the US trade office and also many trade bodies to strengthen the ties. "We are all working collectively to solve some of the hiccups that we have had in the past and strengthen this relationship," he said. He said there are a slew of sectors in which enhanced trade ties are possible, which include innovation, robotics, industrial manufacturing, electric vehicles, and, defence and aerospace. There will be a lot of "respect, mutuality, trust and bonhomie" in the ties from here, Goyal added. Citing the case of New Jersey, which is signing pacts with Gujarat and Telangana, Goyal also welcomed the developing state-to-state ties. Speaking about the diaspora, the commerce minister said Indian companies can use the 3.5 million of Indian origin in the US as a good consumer base to push our exports of items like jewellery. He also said that the various boards under his ministry, which focused to increase the usage of coffee, tea, spices etc can alone net USD 100 billion per year through selling Indian goods to the diaspora spread across the world. Goyal quipped that Indians love their paneer tikka, chicken masala, dal etc wherever they go and urged the industry to tap into this opportunity.
Source: Economic Times
The unending escalation of trade tensions between the US and China has led to a disruption of long-established supply chains between the two countries. Firms exporting from China, both domestic and foreign, have begun to move to other countries in Asia. Indeed, by July this year, over 50 major global firms, from Nike to Nintendo and Panasonic, had indicated the possibility of their relocation, citing the risk of high tariffs and potential ineligibility for US procurement contracts as their primary motivations for a move. In itself, these disruptions open up an opportunity for India to expand trade with the US and China—by filling in supply gaps. They also create the strategic possibility that India might attract firms exiting China to use India as an exporting base, thereby improving India’s manufacturing base, creating jobs and further expanding its trade, especially with the US. In the first instance, one might be pessimistic about the possibility of India stepping in to close the supply gaps created by the US-China trade war. India’s top global exports are precious stones and jewellery, pharmaceuticals, metals, minerals, refined petroleum and textiles—product categories that account for roughly half of India’s exports and bear little resemblance to China’s export basket, which is dominated by machinery, office equipment and miscellaneous light manufactures. However, the scale of Chinese exports (roughly 10 times India’s) implies that even small changes to some of China’s less significant exports may create opportunities of significant scale for countries such as India. For instance, Chinese textiles account for nearly 20% of US textile imports, while Indian exports account for only a little over 5%. Similarly, Chinese global machinery exports amount to nearly $1.2 trillion, while India’s are a paltry $27 billion. Indian machinery exports would increase by over 40%, were India to take over a mere 1% of Chinese machinery exports. India’s prospects would be further enhanced if it were to attract manufacturers exiting China. While India has enjoyed an improvement in its “investment climate" and the “ease of doing business" rankings over the years, and while it has implemented significant liberalization of its foreign direct investment (FDI) rules, setting up manufacturing operations in India remains a daunting challenge for many would-be investors. It is no surprise, then, that other countries, with more agile policy responses and more business-friendly environments, such as Vietnam, have been far more successful than India in attracting firms exiting China. Indeed, Vietnam’s exports to the US last year have risen by more than 40%—a truly remarkable increase—driven largely by firms that have relocated from China. India’s aspirations in attracting foreign capital face another challenge. Given India’s relatively inhospitable environment, where the acquisition of land to set up large manufacturing operations remains hugely problematic and where infrastructure support remains less than ideal, the type of investment that India is likely to attract in the short run will be investment not of significant scale and not requiring much by way of either land or installed capital. In other words, the investments that are likely to flow to India, exiting China, will be characterized by low fixed costs and relative capital non-intensity—that is, relatively “footloose" investments. The danger with footloose capital, somewhat akin to highly footloose portfolio investment, is that it may leave just as easily as it had arrived with even a small change in incentives either in India or abroad. Thus, should circumstances change between the US and China or in other potential host countries, such as Vietnam and Thailand, these investments may exit India as rapidly as they had entered. While we may count the incoming investments as benefits so long as they remain, on balance, India would surely prefer to attract more stable investments that generate output and job growth over a longer time horizon. Avoiding the scenario where merely footloose capital fleeing the trade war migrates to India for an uncertain period and with uncertain benefits, and where instead, major capital-intensive manufacturing activities move to India permanently, requires a very substantial improvement in the basic factors that drive FDI. These include competitive labour costs, a tax and regulatory environment hospitable to business and easy and hassle-free access to all of the factors of production—land, labour, capital and other inputs such as raw material and intermediate inputs. It is self-evident that India fares poorly in many of these areas at present—for instance, restrictive labour laws that make it hard to retrench workers once beyond a certain scale; the vagaries of the land acquisition process; an inadequate road, rail and seaport network, increasing costs of getting goods to market, especially foreign markets; and uncertainties in the taxation environment for foreign investment—all of which create a strong disincentive to invest. It is clear that India faces a significant policy challenge. Finance minister Nirmala Sitharaman’s recent announcements offering improved trade facilitation—especially in dealing with paperwork relating to taxes, trade credits and so forth—are welcome improvements. However, they will only have a small impact if they are not accompanied by more substantial structural changes. Now is not the time for tinkering at the margins, but for bold moves to make India a serious player in global value chains. The finance ministers recently announced corporate tax cuts represent the first bold economic move of the re-elected Narendra Modi government, and is very welcome. We need more of the same.
Source: Live Mint
Pune: India is batting for a special mechanism in the Regional Comprehensive Economic Partnership (RCEP) trade agreement, being negotiated among 16 Asia-Pacific countries, which will help to protect itself from sudden surges in imports from China. "India’s trade deficit with the 16 member trade grouping is $105.2 billion, of which $ 53.6 billion is with China alone.In India, there is apprehension among Government Departments and Industry that a trade deal on the current terms will lead to China dumping goods in India," a release from SEA said. The ministries of steel, agriculture and chemicals, and executives of industries such as dairy, steel, copper, textiles, aluminium, engineering, pharmaceuticals, leather and food have expressedtheir reservations on it."We understand the Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Cooperation Between The Republic of India and the Association of Southeast Asian Nations (ASEAN Agreement) and Regional Comprehensive Economic Cooperation (RCEC) between India and Malaysia will expire on 31st December 2019 and negotiation has started for renewing the same," said SEA. Each Country protects its own industries when negotiating Trade Agreements with other countries or Trading Blocks. "When these negotiations are held, it is imperative that Government Negotiators should take all relevant stake holders into confidence to avoid pitfalls at a later date. Needless to say Domain knowledge of the Stakeholders needs to be tapped as is done by other countries when they engage in trade negotiations," felt SEA. SEA is an apex body of the edible oil industry and all the major importers and refiners of edible oils including palm oil are the members of the Association. "We would therefore request the Commerce Ministry to kindly consult and involve SEA when the negotiations on Vegetable Oil Sector are held. This would help in taking Industries view point into consideration in the decision making process," the release mentioned.
Source: Economic Times
NEW DELHI: India will seek investments from the UAE in various infrastructure and energy sectors during a high-level meeting between the countries, the commerce and industry ministry said on Friday. Commerce and industry minister Piyush Goyal will attend the India-UAE High Level Task Force on Investment meeting on Saturday and Sunday. “The meeting proposes to deliberate in eight identified sectors where the Indian minister will proactively seek FDI (foreign direct investment) from the UAE into India,” the ministry said in a statement. The sectors are petroleum and natural gas, food processing, civil aviation, railways, renewable energy, infrastructure, shipping and construction. Established in 2012 to address issues associated with existing investments between the countries, the task force is an institutional arrangement to discuss ways for increasing investments and deliberating on opportunities for cooperation and investment. During his visit, Goyal will also unveil the design of the India Pavilion at the World Expo 2020 in Dubai, which will take place from October 20, 2020-April 10, 2021. “The India Pavilion will be a permanent structure being constructed in the 'Opportunity' segment,” it said. Twenty-seven focus sectors have been identified to showcase India's advances in space, pharmaceuticals, information technology, renewable energy and telecom sectors and also strength in innovation and start-ups. FICCI has been tasked with helping the government to prepare for Indian presence at the Expo.
Source: Economic Times
NEW DELHI: India could be one of the winners of the trade war, says Filippo Gori, deputy CEO Asia Pacific for JP Morgan, expressing surprise at the prevalent negative sentiment in the country. There has been a little bit of slowdown in India, part of which is cyclical and part of it is global, he told ET in an interview, adding that investors appreciate the macroeconomic stability in the country. “I was surprised a little bit, coming over, by how people seem to have a negative view. Yes, India is not growing at 7.5%, it printed 5% in the second quarter, but the numbers still look very good,” said Gori, who is in India for the annual JP Morgan India investment summit. India’s GDP growth declined to a six-year low of 5% in April-June quarter, as worried consumers cut spending and investments remained muted. Gori said, in his view, the gloom and doom the world over is coming from geopolitical issues, which are weighing heavily on people's minds. “When I go around our region, most of the investment conversations focus on geopolitics — what’s happening in the trade war and Brexit,” he said. “To me that’s what is driving that sentiment right now.” At the start of the year, JP Morgan’s view was that the US Federal Reserve will raise rates four times. Instead, it has cut rates, once on Wednesday, and could do two more rest of the year, suggesting deep worries about the economy even as unemployment is at record low levels. The ECB has reversed the conventional wisdom of where it was going and announced more quantitative easing, Gori said. “With the geopolitical issues, the trade war and Brexit, you face quite strong headwinds.” He said within this broad view, there are areas and pockets where it is worth investing such as India, Brazil and Indonesia. “India is within a group of bright spots where we think it’s worthwhile to keep investing,” said Gori and the bank is putting its own money on the table. “We are expanding our commercial banking business in India to serve local mid-cap companies. So, we are investing further in the country because we believe that the macroeconomic fundamentals support that,” he added. “The macroeconomic picture makes sense. The demographic picture of India makes a lot of sense. The technology sector and everything we see around payments makes a lot of sense. Stability of government. All of these things are why we are investing here,” he said, making a case for India. Even if there is slowdown, the strong macros mean India is not constrained. “You have room for manoeuvre on the monetary side,” he said, pencilling in 50-60 basis points cut or even more from the RBI. “That should help in the second part of the year or early next year to boost the economy again. So, you have that, which to me is incredible because other economies don’t have those tools,” he said, pointing out how the country was better placed then others because of low inflation, fiscal prudence, low current account deficit and high foreign exchange reserves. You have the monetary space to do things. On the fiscal side, you have been relatively disciplined, or actually quite disciplined, compared to other emerging market countries. And then if the government is willing and has the political capital to go and re-kickstart the economy, I don’t see why India cannot improve from here.” He said the Indian currency could weaken a little bit probably to Rs 74.5 to a dollar in 12 months from now. While the equity market is not cheap but there are some sectors, for example, TMT, that are quite interesting. Even in financials, the fee-based industries like asset management or insurance are doing quite well and investors are looking at it quite positively, he added. “India has some incredible fintech corporations and in general the tech sector in India is creating some of the unicorns of the future.” Weighing in on the demand for fiscal discipline, he said if you look at other countries, you can see how sentiment can turn against you very quickly once you lose that discipline.
Source: Economic Times
Hyderabad: The State government’s efforts to promote textile and handloom industries in Telangana have begun yielding results with investments being made in the sector by private industrial groups, IT and Industries Minister K T Rama Rao informed the Assembly on Friday. One of the largest investments so far in the mega Kakatiya Textile Park in Warangal is the Rs 1,700 crore plant set up by Welspun Group which is ready to start production. In addition, the Pashupati Group was investing Rs 240 crore in the park while Proctor & Gamble is setting up a technical textiles unit. Also in the pipeline is another factory to be set up in the park is by Ganesha Ecosphere, Rama Rao said. The textile park has the potential to generate 1,13,000 direct and indirect jobs upon its full implementation. So far, 16 Memoranda of Understanding had been entered into with textile manufacturing companies, Rama Rao said. The government was making rapid progress in handlooms and textiles as per the ‘Farm to Fashion’ vision of Chief Minister K Chandrashekhar Rao, the Minister said. The concept is to have units that use farm produce and those that produce fashion clothing in one place, he said. He said the Government, in order to promote and build upon the State’s strong textile base through integrated value chain approach and to attract investors in the textile industry, was offering various incentives, benefits to eligible entrepreneurs through the Telangana-Textile and Apparel Policy. Responding to a request from TRS MLA Nannapuneni Narender, Rama Rao said the government will explore employment for former workers of the once popular but now defunct Azam Jahi Mills of Warangal. Warangal has good black soil ideal for growing of cotton and this was one of the reasons why the Chief Minister planned to set up the mega textile park in the district, the Minister added.
Source: Telangana Today
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1084.78 |
USD/Ton |
0% |
9/20/2019 |
|
VSF |
1504.60 |
USD/Ton |
0.28% |
9/20/2019 |
|
ASF |
2161.80 |
USD/Ton |
0% |
9/20/2019 |
|
Polyester POY |
1115.77 |
USD/Ton |
-0.38% |
9/20/2019 |
|
Nylon FDY |
2359.74 |
USD/Ton |
0% |
9/20/2019 |
|
40D Spandex |
4085.52 |
USD/Ton |
0% |
9/20/2019 |
|
Nylon POY |
5325.26 |
USD/Ton |
0% |
9/20/2019 |
|
Acrylic Top 3D |
1320.05 |
USD/Ton |
-0.32% |
9/20/2019 |
|
Polyester FDY |
2239.99 |
USD/Ton |
0% |
9/20/2019 |
|
Nylon DTY |
2296.34 |
USD/Ton |
0% |
9/20/2019 |
|
Viscose Long Filament |
1253.83 |
USD/Ton |
0% |
9/20/2019 |
|
Polyester DTY |
2592.19 |
USD/Ton |
0% |
9/20/2019 |
|
30S Spun Rayon Yarn |
2155.46 |
USD/Ton |
0% |
9/20/2019 |
|
32S Polyester Yarn |
1669.43 |
USD/Ton |
0% |
9/20/2019 |
|
45S T/C Yarn |
2416.09 |
USD/Ton |
0% |
9/20/2019 |
|
40S Rayon Yarn |
2423.14 |
USD/Ton |
1.18% |
9/20/2019 |
|
T/R Yarn 65/35 32S |
2042.76 |
USD/Ton |
0% |
9/20/2019 |
|
45S Polyester Yarn |
1845.53 |
USD/Ton |
0% |
9/20/2019 |
|
T/C Yarn 65/35 32S |
2268.17 |
USD/Ton |
0% |
9/20/2019 |
|
10S Denim Fabric |
1.25 |
USD/Meter |
-0.11% |
9/20/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
-0.41% |
9/20/2019 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
-0.29% |
9/20/2019 |
|
30S Rayon Fabric |
0.57 |
USD/Meter |
0% |
9/20/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
9/20/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14088 USD dtd. 20/09/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Several members of the US Congress have backed supported India’s demand for restoration of the popular generalised system of preferences (GSP) scheme for exports to the US market. They have written to the US Trade Representative (USTR) expressing their support for the move and have proposed an `early harvest’ approach to sort out immediate problems between the two sides. “We also have a strong desire to see GSP eligibility for India reinstated. Should there be a progress in negotiations, we hope you will use the tools provided by the GSP statute as warranted, such as partial reinstatement,” a letter signed by 44 Congress members sent to USTR Robert Lighthizer on September 17 stated. In June this year, the United States had made India ineligible for the GSP scheme that allowed more than 3,000 items from India to be imported duty-free into the country. The withdrawal followed complaints by the US medical equipment and dairy industries, which alleged India did not provide a level playing field for their businesses.The Congress members proposed an `early harvest’ approach that would ensure that long-sought market access gains for US industries are not held up by negotiations over remaining issues, thereby providing swift relief for both American exporters and importers, according to global newswires. “Just as US industries are harmed by lack of fair and reciprocal access to India’s market, American companies and workers also are harmed by new tariffs due to GSP termination. The costs are real for our constituents and growing every day. We urge you to continue negotiations and consider an early harvest to help American jobs that depend on two-way trade between the US and India,” the letter said. The Congress members added that they took the complaints of the US industry seriously and shared the USTR’s strong desire to see them resolved. (DS)
Source: Fibre2fashion
Export volume (constant price) was down 4% in the first eight months of 2019, compared with a rise of 4.6% in the same period of 2018, according to data from the National Institute of Statistics (INS). The decline in the volume of exports in the first eight months of 2019 affected several sectors including agriculture and agri-food industry (18.8%), the textile sector, clothing and leather (4.2%) and mechanical and electrical industries (2.1%).In contrast, the export volume of the energy sector grew 1.4% and that of other manufacturing industries increased by 4.4%.In terms of prices, export prices went up 16.7%. Thus, in current value (and taking into account the impact of the dinar exchange rate) Tunisia’s exports increased by 12%, reaching a value of 29,523.7 MD. As for imports, they dropped 8% in the first eight months of 2019 compared with a rise of 1.9% in the same period of 2018, said INS. Quantities imported saw a decrease in the mechanical and electrical industries (10.4%), the textile, clothing and leather sector (8.1%) and that of agriculture and food industry by about 9.6%.In terms of import prices, they went up by 19.6%, against a rise of 10% in current values during the eight months of 2019, to 42,387.9 MD.
Source: African Manager
New York – In the latest tariff development, the United States Trade Representative (USTR) has announced new exclusions from duties for products on China 301 List 3. If not excluded, products on Lists 1, 2 and 3 are subject to a scheduled increase in additional duties from 25% to 30% effective October 15. In a memo sent yesterday to members of the Home Fashion Products Association (HFPA), the organization’s legal counsel Robert Leo of Meeks, Sheppard, Leo & Pillsbury alerted members of the update – which represents the eighth notice on China 301 Lists 1, 2 and 3. While some of the exclusions may be of interest to the home textiles industry, the USTR has not yet granted exclusions on any finished home textile products subject to tariff. The new exclusions the HFPA highlighted, which are retroactive to Sept. 24, 2018, include:
Leo also reminded members the USTR is still accepting formal exclusion requests for products on List 3 through Sept. 30. If additional exclusion requests are granted, they would be retroactive to the Sept. 24, 2018 date for List 3 items, which started at 10% before being raised to 25%. “The new USTR notice also announces that all granted exclusions from Lists 1, 2 and 3 will expire August 7, 2020, instead of the one-year-from-grant period originally indicated,” said Leo.
Source: Home Textiles
The world's two largest economies have been locked in a bruising trade war since Trump in March last year imposed tariff hikes of up to 25 per cent on USD 250 billion of Chinese goods. Donald Trump, US 2020 elections, US china trade deal, china, chinese goods, American goods, Chinese economy, global economy, US tariffs on chinaThe world’s two largest economies have been locked in a bruising trade war since Trump in March last year imposed tariff hikes of up to 25 per cent on USD 250 billion of Chinese goods. US President Donald Trump has said he oes not need feel the need to strike a trade agreement with China before the next year’s presidential elections, emphasizing that he is looking for a complete and not a “partial deal” with Beijing. The world’s two largest economies have been locked in a bruising trade war since Trump in March last year imposed tariff hikes of up to 25 per cent on USD 250 billion of Chinese goods. In response, China, the world’s second largest economy after the US, imposed tit-for-tat tariffs on USD 110 billion of American goods. “No, I don’t think I need it before the election,” Trump told reporters on Friday at a joint news conference with Australian Prime Minister Scott Morrison when asked if he feels the need for a trade deal with China before the 2020 presidential elections. Trump insisted that he was looking for a complete trade deal. “We are looking for a complete deal. I am not looking for a partial deal,” he said. “China has been starting to buy our agricultural product. If you noticed over the last week and actually some very big purchases but that is not what I am looking for. We are looking for the big deal. We have taken it to this level,” Trump said. The trade dispute between the US and China widened in August, with each side imposing retaliatory tariffs on the other. But there have been signs of deescalation in recent days, and Trump has increasingly expressed optimism of reaching a deal with China. US and Chinese counterparts have resumed trade talks this month. On September 19 and 20, deputy-level negotiators from the United States and China met here to continue discussions aimed at improving the trade relationship between the two countries, the United States Trade Representative said in a statement. These discussions were productive, and the United States looks forward to welcoming a delegation from China for principal-level meetings in October, it said. President Trump said the US was taking in billions and billions of dollars of tariffs from China as a result of his policies. China has devalued their currency and they are putting in lot of money into their economy and they have a very bad economy right now, he said. “I don’t want them to have a bad economy, but it is the worst they say 57 years,” he said. Trump said two weeks ago the Chinese economy was the worst in 22 years, but now it is 57 years and is only going to get worse. “Their supply chain is being broken up very badly and companies are leaving because they can’t pay the 25, soon to go to 30 per cent tariff and we have 30 per cent very shortly on USD 250 billion,” he said. “We have another tariff and a slightly smaller number on about USD 300 billion worth of goods and products so they would like to do something as you know we are talking a little bit this week talking about lot next week and then top people are going to be speaking the week following,” Trump said. “We can do a very big deal with China and it could go very quickly as you know but it wouldn’t be the appropriate deal. We have to do it right and that’s a very complicated deal with intellectual property protection we have to do that and other things. I could leave lots out and have a deal very quickly but we want to do it right,” Trump said. Morrison emphasised that it was always necessary for the deals to be fair. “Deals have got to be a good deals, deals have got to be sustainable deals and one of the things we have seen is Australia benefits greatly from the economic growth of China,” he said. “There are some real serious issues that have to be addressed in that deal, things like intellectual property. That is a big issue and it needs to be addressed. So we look forward to them achieving it and providing the broader certainty and stability to the global economy which all nations will benefit from,” the prime minister said.
Source: Financial Express
Representatives from the Indonesian Government, the textile and fashion sectors and industry associations recently signed a memorandum of understanding (MoU) in Pangkalan Kerinci, Riau, to optimize locally-sourced, sustainably-produced rayon to drive the growth of the national textile industry, a primary strength of the country’s economy. The signatories include the Indonesian Textile Association (API), the Indonesian Association of Synthetic Fibre Producers (APSyFI), the Indonesia Fashion Chamber. Achmad Sigit Dwiwahjono, the industry ministry’s director general of chemical, textile and miscellaneous industries, said the government was committed to developing the textile industry by promoting local products and attracting investors. The government wants to promote the use of locally-sourced textiles, such as rayon and polyester fibres, to lessen dependence on imported products, a report in a top Indonesian newspaper quoted Sigit as saying. In the past three years, Indonesia has seen increased exports of local textiles and textile products, with export value increasing from $11.87 billion in 2016 to $12.59 billion in 2017 and $13.27 billion in 2018. Clothing constitutes 63.1 per cent of exports, Sigit said. The increased use of viscose rayon, or rayon, in manufacturing is expected to increase the production output of the textile industry, especially as the textile can act as a substitute for polyester and cotton. Local production of polyester and cotton still does not meet domestic demand. Competitively-priced and eco-friendly rayon can be an alternative material in Indonesia, said Asia Pacific Rayon (APR) director Basrie Kamba. APR, which began production in December last, has already produced 120,000 tonnes of rayon fibre. Almost half of the output is used in the domestic market, while the rest is exported to countries like Turkey, Pakistan, Bangladesh, Vietnam, Germany and Italy. APSyFI secretary general Redma Gita said that the national textile industry was suffering a massive trade deficit, exporting 500,000 tonnes of garments and importing 900,000 tonnes, and urged the government to develop a policy strategy to protect the industry. (DS)
Source: Fibre2fashion
PHNOM PENH - Cambodia on Friday raised next year’s legal minimum wage for workers in its crucial textiles and footwear industry to $190 per month, an increase of 4.4%, amid pressure from the European Union over its human rights and political record, officials said. The garment industry is Cambodia’s largest employer, generating $7 billion for the economy each year. It faces uncertainty after the European Union (EU) in February began a process that could suspend the country’s special trade preferences. “The minimum wage for textile, garment and shoe workers for 2020 is set at $190 per month,” Labour Minister Ith Sam Heng said in a directive on Friday, adding that the new wage takes effect in January. Cambodia benefits from the EU’s “Everything But Arms” (EBA) trade programme, which allows the world’s least-developed countries to export most goods to the EU free of duties. Pav Sina, president of the Collective Union Movement of Workers, said unions would accept the new hike, although it fell short of their $195 demand, after a representative vote. “Even though this figure is not what we wanted as our position, it is positive, as Cambodia is in the midst of uncertainties of the trade preferences,” Sina said. “If our wage goes higher than countries in the region, we will also suffer,” Sina said. The EU, which accounts for more than one-third of Cambodia’s exports, including garments, footwear and bicycles, in February began an 18-month consideration that could lead to the EBA suspension. The re-examination of the European preferences began after the arrest of opposition leader Kem Sokha and the dissolution of his party, leading to longtime Prime Minister Hun Sen’s party’s holding all seats in parliament. Ken Loo, Secretary General at the Garment Manufacturers Association of Cambodia (GMAC), said employers accepted the new minimum wage but were concerned about rising pay. “We are always worried. we are always concerned about rising wages, but we also understand that we just have to go up in line with inflation and other factors,” Loo told Reuters on Friday.
Source: Reuters
Performance Days together with trade magazine SAZ Sports&Fashion will organise the first International Sustainability Congress on November 13-14 in Munich, Germany. The fair will feature a brand new format for the textile industry with the title Sustain&Innovate. The lectures and discussion panels will focus exclusively on the topic of sustainability. International guest speakers will address all aspects of sustainability in lectures and discussions in the Expert Talk Area of the exhibition hall on November 14. "Sustainability is expected. It is our duty to act sustainably in all stages of the textile production process. Sustainability is much more than simply using recycled fibres and fabrics. Performance Days was early to showcase this on a broad scale. We have accompanied the sustainable developments in the industry for many seasons, but even more, we provided the impulse in various directions for sustainability research and development," said Marco Weichert, head of the trade fair. "Our focus topics featured sustainability issues early on and provided a focus to our innovative fibre and fabric producers to pursue developments in this field. Whether recycled fibres, recyclable materials, the important topics of biodegradability, water conservation or the use of natural fibres for functional fabrics – we show all possible textile aspects of sustainability for the industry," said marketing manager Lena Weimer of Performance Days. Performance Days takes its responsibility for sustainability very seriously and has made the decision – as announced in July – to present only sustainable materials in the curated Performance Forum. Also to give visitors an overview of all aspects of sustainability, the Focus Topic Wall will be dedicated to topics on sustainability. Detailed explanations will be provided for key areas like recycled fibres, natural fibres from renewable resources, recycling qualities, bio-degradables or compostables, microplastics, product life cycles, water conservation, energy savings, reduce CO2 emissions, reduce chemicals. Performance Days — the 'functional fabric fair' launched in 2008, is the first and only event created especially for functional fabrics for sports and work clothing. The aim of the semi-annual trade fair is to give leading and innovative textile manufacturers, suppliers and service providers the opportunity to present their functional fabrics, membranes plus treatments, laminates, paddings, finishes, and accessories such as yarns, tapes, prints, buttons, and zippers. The industry experts who come to the fair — the designers, product managers, buyers, and decision-makers of almost every European active clothing and functional wear brand — will find a complete selection of high quality materials available at just the right time in April/May and October/November. The unique Performance Forum at Performance Days gives visitors an inspiring and informed overview of the latest materials, trends, and innovations by the exhibitors. This is also where the (ECO) Performance Award is presented. Valuable expert talks, workshops, and guided tours round out the informative programme. (PC)
Source: Fibre2fashion
Twenty-five Tunisian industrialists representing the main sectors of the textile-clothing sector (jeans and sportswear, knitwear, lingerie, ready-to-wear, workwear and leather goods and accessories) are taking part in the Premiere Vision-Paris show held from September 17 to 19, 2019, in Paris. Tunisia is the ninth largest supplier of clothing to the EU, with a market share of 2.58% (first 6 months 2019). Organized by the Export Promotion Center (CEPEX), the Tunisian participation, which occupies a pavilion of 336 m2, aims at promoting the offer of the textile-clothing sector, on the French market. The September 2019 edition of the Premiere Vision show, held twice a year, will welcome 62,000 professionals from more than 120 countries. The European Union market is the world’s largest textile-clothing import market with 510 million consumers. EU imports grew by 6.75% in the first half of 2019 compared to the same period of 2018.
Source: African Manager
The Uganda Free Zones Authority (UFZA) recently issued two developer’s licenses to BlockChain Technologies (U) Limited and Shree Modern Textiles Ltd to develop free trade zones, or free ports, in Kampala and Jinja districts respectively. Free ports are designated areas in which companies are lightly taxed or attract no tax at all to encourage trade. Shree Modern Textiles will invest in ginning, weaving and making textiles, while the other company plans to undertake the business of digital innovation and software production. The major products expected from the textile facility include crew-neck T-shirts, polo T-shirts, terry towels, trousers and full sleeve shirts. The free port covering 81 acres is estimated to employ 1,500 people directly and create around 4,500 indirect jobs, according to Ugandan media reports. Shree Modern Textiles is a flagship company of the Uganda-based Nile Agro Group of companies involved in the manufacturing of products like laundry soap, wheat flour, plastic jerry cans and water tanks. (DS)
Source: Fibre2fashion
LAHORE - Adviser to Punjab Chief Minister on Economic Affairs Dr Salman Shah Friday inaugurated a 3-day “22nd Textile Asia International Trade Fair” at Expo Centre here. Over 450 foreign delegates from 27 countries are participating in the fair, which has been jointly organised by Pak-China Joint Chamber of Commerce and Industry (PCJCCI) and the E-commerce Gateway Pakistan (ECGP). Addressing the inaugural ceremony as chief guest, Dr Salman Shah said that Pakistan had created an experienced lot of cheap labour in textile industry and China could utilise the force for its textile industry to compete in the world market. He said that the Punjab government was planning to create a conducive environment for business. In this regard, he said that broader consultation with the business community was being made, which would be transformed into the measures to enhance ease of doing business. He acknowledged that the textile industry was the key industry of Punjab having value added clusters in Lahore, Faisalabad and Multan, which were contributing a lot to the economic development. He said that like the federal government, the Punjab government was also ready to provide incentives to the textile industry to enhance its competitiveness in the world market and increase country’s exports. ECGP President Dr Khursheed Nizam said the exhibition would lead the way in providing opportunities to all participants in different sectors like buying, selling potential of textile and garment machinery, clothing textiles accessories, textile raw material supplies, textile dyes chemicals, embroidery machines, power & air-compressors for textile industry and textile allied services. PCJCCI Senior Vice President Ahmad Hasnain delivered address of welcome to the chief guest and the participants. He urged the government of Punjab to patronise the business community to meet the current challenges to be faced by the country. PCJCCI Secretary General Salahuddin Hanif said that several Chinese companies from different cities and provinces had shown interest to relocate their textile, garment and accessories production units to Punjab and the current Textile Asia Fair would be helpful to conclude a number of agreements with the local counterparts in this regard.
Source: The Nation
