Shri Piyush Goyal met a delegation of representatives from the Textile industry and had a constructive dialogue on resolving issues relating to their sector & providing support and incentives to boost the domestic industry.
Source: Face Book
Central Board of Indirect Taxes and Customs has launched a revamped and streamlined programme to attract investments into India and strengthen Make in India through manufacture and other operations under bond scheme, under Customs Act, 1962. Section 65 of the Customs Act, 1962 enables conduct of manufacture and other operations in a customs bonded warehouse. The scheme has been modernized with clear and transparent procedures, simplified compliance requirements ICT-based documentation and account keeping, by issue of Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 and Circular 34/2019 both dated 01 October 2019. The main features of the scheme are as below –
i. A single application cum approval form prescribed for uniformity of practice. The jurisdictional Commissioner of Customs will function as a single point of approval to set up and oversee the operations of such units.
ii. No geographical limitation on where such units can be set up.
iii. The unit can import goods (both inputs and capital goods) under a customs duty deferment program. The duties are fully remitted if the processed goods are exported.
iv. There will be no interest liability and units will benefit through improved liquidity.
v. GST compliant goods can be procured from the domestic market for use in manufacture and other operations in a section 65 unit.
vi. A single digital account has been prescribed for ease of doing business and easy compliance.
vii. The scheme would also enable efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.
CBIC has collaborated with Invest India to launch a dedicated microsite for providing information and promoting the scheme and for facilitation of investors. The site can be accessed at https://www.investindia.gov.in/bonded-manufacturing. The scheme is expected to play a critical role in promoting investments in India and in enhancing ease of doing business. It can enable the ‘Make in India’ programme, encourage exports, create hubs for electronics assembly, repair & refurbishment operations, inward and outward processing, facilitate global e-commerce hubs etc.
Source: PIB
Talking about these differences he also said that a little uncertainty in any relation is also good for having healthy bilateral relations. Commerce Minister Piyush Goyal on Monday said India does not have any trade disputes with the US, and there is huge bilateral trade potential. Speaking at the India Energy Forum, he said, "We don't have any dispute with the US. There are differences with the US which are there in any bilateral relation." Talking about these differences he also said that a little uncertainty in any relation is also good for having healthy bilateral relations. He was of the view that there is huge potential for investment by US firms in India. On the imposition of anti-dumping duty on imports by Directorate General of Trade Remedies, he said that it is a quasi-judicial body and has nothing to do with the government. About the economic slowdown, he said that Indian economy can do well with these structural adjustments. He pointed that the domestic economy did well for five years except the last two quarters. Indian economic growth slowed to 5 per cent in April-June quarter this fiscal.
Source: Business Standard
Commerce and industry minister Piyush Goyal has described the ongoing economic slowdown as a structural adjustment, periodic in nature, and said that this was the right time to invest in the country before the growth momentum returns. The economy grew 5% in Q1 and most global institutions have scaled down growth forecasts. “I think once the period starts getting better and better, we tend to loosen ourselves a little bit. We don’t care if we use a little bit extra energy, we don’t care if our productivity goes down a little bit,” Goyal said at the India Energy Forum. “Times are good, profits are welcome. And every few years there is a little bit of this structural adjustment,” he said. Goyal said he is not unduly perturbed. “Of course, India being an economy with huge opportunity could well do without this kind of a slowdown,” he said, adding that the government is working to see how it can re-energise sectors. Highlighting that the domestic economy did well for five years except the last two quarters, he said: “We had a pretty good run for almost 4-5 years before the last two quarters. It (the slowdown) is rightsizing of certain sectors or opportunities in different areas.” The Indian Railways increased capex around 2.5 times during 2014-19, of what it did in the previous five years. Prime Minster Narendra Modi has shared his vision of $700 billion investment for railways over the next 12 years, he said.
‘NO DISPUTES WITH US’
Referring to India’s trade relations with the US, Goyal said: “I don’t think we have any disputes, we have had some disagreements. We welcome a little bit of nokjhok (bantering). I think a little bit of uncertainty helps...” Talking about these differences he also said that a little uncertainty in any relation is also good for having healthy bilateral relations. Referring to the withdrawal of the Generalized System of Preferences (GSP) by the US, Goyal said it could be a “dispute in the eyes of some, but I think it opened up an opportunity for me to have a dialogue with my colleague (US trade representative). We had some wonderful discussions.
Source: Economic Times
Union Minister of Commerce & Industry and Railways, Piyush Goyal addressing the India Energy Forum2019 by CERAWeek, said that India has naturally emerged as the startup capital of the world with the highest registered startups and he applauded the suo moto decision of the oil PSUs, under the Petroleum Ministry, to set up a startup fund that will encourage Indians to innovate and set up their own companies. Piyush Goyal further said that India will soon become the innovation capital of the world and informed that during his interactions with young innovators, even in the remote parts of the country, youngsters come forth with bright ideas to solve number of economic and social problems that prevail in India today. He said that he is extremely proud of the young girls and boys who are the driving force behind the startup revolution taking place in India today. Commerce and Industry Minister further said that he is not worried about the state of the world in this time of trade wars as these were issues waiting to be addressed. He further added that countries of the world cannot develop when few countries are giving subsidies and nurturing an eco system of unfair trade and competition among industries. It is the need of the hour to have a more balanced development across the world and distributed sources of wealth creation, said Piyush Goyal. There is need for free trade but there is greater need for fair trade said Commerce and Industry Minister as this will work in the interests of all countries and India supports the new dynamics of world trade. He further said that multilateralism will prevail and India supports all fair and honest global efforts to do away with all unfair trade practices. He further informed that India will continue to support those countries that are struggling to get manufacturing back to their own countries and hoped that the existing system of prosperous countries outsourcing their pollution and emission to the developing world, in the garb of creating jobs but in reality ruining the health of the population and destroying the future prosperity of the citizens by outsourcing problems to developing countries, must stop immediately. Piyush Goyal also informed that by 2023 Indian railways will be fully electrified and by 2030 the Indian Railways will use only renewable and clean energy. He hoped that there will be more FDI in the energy sector as 100% FDI is allowed in this sector and there is requirement of around 70 billion USD investment in India's energy sector which is on the cusp of a revolution as there is great demand for energy in India because the country hopes to achieve self-sufficiency in domestic production of the energy requirements for every household. During this interaction he further informed that the India - US relations are robust with great potential to move forward and it is time for India - US relations to make a quantum leap if trade between the two countries has to reach half trillion USD. India is the third largest energy consumer in the world in absolute terms, after the United States, but per capita energy consumption is very low. There is need for a healthy mix of all commercial energy sources and India is today on the path of energy transition where 95% of households have access to electricity in the country today but there is increasing demand for energy which has to be fulfilled if India has to achieve the target of 450 megawatts set by Prime Minister of India, Narendra Modi.
Source: Business Standard
The IMF on Tuesday slashed India’s GDP growth projection for the year 2019 to 6.1 per cent, which is 1.2 per cent down from its April projections. The International Monetary Fund (IMF) in April said India will grow at 7.3 per cent in 2019. However, three months later it projected a slower growth rate for India in 2019 at 7 per cent, a downward revision of 0.3 per cent. It has now furthered lowered its forecast. The IMF also warned that the global economy is in a “synchronised slowdown” amidst growing trade barriers and heightened geopolitical tensions. It downgraded the 2019 growth rate to 3 per cent, the slowest pace since the global financial crisis. “This is a serious climbdown from 3.8 per cent in 2017, when the world was in a synchronised upswing,” Indian-American Gita Gopinath, chief economist of the International Monetary Fund (IMF), said in the foreword to the latest World Economic Outlook. “With a synchronised slowdown and uncertain recovery, the global outlook remains precarious. At 3 per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively de-escalate trade and geopolitical tensions,” she said.
Forecast for 2020
The latest World Economic Outlook noted that the Indian economy is expected to grow at 7.0 per cent in 2020. On Sunday, the World Bank in its latest edition of the South Asia Economic Focus said India’s growth rate is projected to fall to 6 per cent in 2019 from 6.9 per cent of 2018. The downward revision relative to the April 2019 WEO of 1.2 percentage points for 2019 and 0.5 percentage point for 2020 reflects a weaker-than-expected outlook for domestic demand, the IMF said. “Growth will be supported by the lagged effects of monetary policy easing, a reduction in corporate income tax rates, recent measures to address corporate and environmental regulatory uncertainty, and government programmes to support rural consumption,” the IMF said. “India’s economy decelerated further in the second quarter, held back by sector-specific weaknesses in automobile and real estate as well as lingering uncertainty about the health of nonbank financial companies,” the report said. China, whose GDP grew at 6.6 per cent in 2018, is now projected to grow at 6.1 per cent in 2019 and 5.8 per cent in 2020.
Source: The Telegraph
Decline in outward shipments of petroleum, engineering, leather, chemicals, and gems & jewellery made India's exports contract 6.57% to $26 billion in September while a steeper contraction in imports of 13.85% to $36.89 billion helped narrow the trade deficit to a seven-month low $10.86 billion. Trade deficit in September 2018 was $14.95 billion. Only eight out of the 30 key export sectors showed growth in September, official data released on Tuesday showed. Electronic exports rose 33% in the month. “While around two-thirds of the substantial US$6 billion YoY decline in imports in September 2019 was explained by crude oil, precious metals and precious and semi precious-stones, the contraction in imports of items such as coal, chemicals, transport equipment etc. provides a cautionary signal regarding the underlying demand conditions,” said Aditi Nayar, principal economist at ICRA. Gold imports plunged 50.82% to $1.27 billion in the month. Exports of gems and jewellery, engineering goods, and petroleum products contracted 5.56%, 6.2% and 18.6%, respectively. In September, oil imports declined 18.33% to $8.98 billion, and non-oil imports fell 12.3 % to $27.91 billion. In the first six months of the financial year, exports shrank 2.39% to $159.57 billion while imports contracted by 7% to $ 243.28 billion.
Source: Economic Times
Countries negotiating the proposed Regional Comprehensive Economic Partnership (RCEP) have now decided on a final 10-day window to bilaterally sort out pending differences in the mega trade deal, after which the leaders of the 16 nations will step in. With last week’s ministerial meet proving inconclusive, a decision on crucial trade differences in 14 areas — if not resolved — will be taken by Prime Minister Narendra Modi when he attends the 3rd RCEP leaders’ summit next month. “All issues not closed by October 22 will be taken up by the leaders when they meet on November 4 in Bangkok,” a source in the know said. Beginning Monday, India has started talks with other nations on an “automatic trigger safeguard mechanism” that ensures higher tariffs will kick in once imports reach a threshold while also pushing to finalise the levels of tariff reduction it will allow for other RCEP members. Beijing had earlier rebuffed the plan to impose an import ceiling for its exports — the first time New Delhi is attempting such a mechanism in any trade deal. Earlier, India had agreed to reduce tariffs on 74 per cent of traded goods for China. While developed nations have demanded New Delhi open up at least 90 per cent of all items, China has refused to open up “commensurate to India’s demands”, an official said. Currently, it is broadly accepted the RCEP will lead to tariffs being eliminated on 28 per cent of the traded goods to begin with. This will be followed by 35 per cent of all products being eliminated in phases.
Between the lines
Officials are also pushing to secure exceptions for India on trade issues, sources said. Prime among these is New Delhi’s opposition to demands of other nations on securing trade concessions provided by India in the domestic space. Known as “ratchet” in trade terminology, the concept implies that any policy changes will be automatically committed under the RCEP agreement to all members after a fixed period. While India had communicated its intention to allow sectoral concessions in the services and investments segments, richer nations have continued pushing for similar concessions in goods trade as well. Talks have faltered on providing MFN (most favoured nation) status to all partners. This promises that India will provide investment- or services-related concessions given to a trading partner under a bilateral treaty automatically to RCEP members without any time gap. New Delhi may not extend MFN benefits to other RCEP nations on certain items. India has also sought to extend the date for duty cuts from the initially planned 2014 to 2019, because it has raised customs duties on more than 3,500 products since 2014, sources said. The RCEP is India’s most ambitious trade pact, currently under negotiation. Based on India’s existing free-trade agreement (FTA) with the 10-nation Asean bloc, the RCEP will include all the nations with which Asean has trade deals — New Zealand, Australia, China, India, Japan, and South Korea. So far, there have been 29 rounds of negotiations, apart from multiple minister-level meets.
Source: Business Standard
India is comfortable with the current crude oil price range, Minister for Petroleum and Natural Gas Dharmendra Pradhan said. Speaking to reporters at the third India Energy Forum by CERAWeek, Pradhan said, “Let’s accept the changing geo polity. These are the new normal. Price is now around $60 a barrel. It is going to range between $58 and $61 a barrel. This is a reality today and an assurance from a consuming country. A lot of crude oil is coming from North America to the global market,” Pradhan said. “In today’s reality, there is a price band and it suits India,” he added. Commenting on the domestic gas production and demand, Pradhan said, “By conventional assessment, some gas and oil fields will get depleted from the levels of today. The major change will be addition. BP-Reliance is going to produce natural gas in a big way after a long period in the KG Basin in the second quarter of the next calendar year. ONGC will be following them and has started producing a substantial amount in the Vashisht area. Vedanta is very aggressive on the Barmer field, now they will be producing gas.” “All our reforms are primary centring around gas. So I am confident there will be a substantial growth in domestic gas production and there will be a substantial import of LNG,” he added. He said there will be a new regional gas price in the domestic market as more supplies meet the higher demand. Responding to a query on the domestic gas price, Pradhan said, “The government has no business in price. It’s market driven.”
Source: Business Line
Despite lowering the interest rates by linking the repo rate, credit flow to industries and services sector are shrinking, according to an RBI report. Finance Minister Nirmala Sitharaman has been taking extensive measures to boost credit growth in the economy, but the credit flow continues to remain tepid. Despite lowering the interest rates by linking the repo rate, credit flow to industries and services sector are shrinking, according to an RBI report. To review the credit growth in the economy, the minister has met the heads of PSU banks yesterday for the second time since the past 30 days. As an outcome of the meeting, the bank representatives said that there is sufficient liquidity in the system. However, despite the availability of liquidity, the credit growth in almost all the quarters of the industry, including construction, infrastructure, petroleum, and food processing, are negative in the current financial year so far. Credit growth in textiles contracted by 8.5 per cent; petroleum, coal products & nuclear fuel (17.7 per cent); basic metal & metal product (6.2 per cent); construction (3.5 per cent); and the credit growth in infrastructure shrank 4.8 per cent so far in this financial year. Even the services sector and the priority sector saw a contraction in credit growth. Credit growth in the services sector contracted by 2.7 per cent while that in the priority sector contracted by 0.6 per cent in the current financial year. Trade is an area that has supposedly suffered the maximum hit with the credit growth contracting by 11.8 per cent in the wholesale trade; and 15.6 per cent in the export credit. The export credit empowers the exporters to export more to get maximum benefits but the contraction here may further pull down India’s trade. “The government should work at facilitating export credit to the exporters and faster processing of the GST returns to leave more cash in the hands of exporters,” Sharad Kumar Saraf, President, FIEO, said Financial Express Online recently. Businesses run on credit and its crisis slows down the entire operation. The contraction in the credit growth despite the availability of liquidity with the banks also indicates the slump in demand from the businesses and the theory that the credit will be taken when there will be a requirement, not when the interest rates are comparatively lesser.
Source: Financial Express
While apparel exporters believe the time is ripe to penetrate deeper into the export market, they perceive that the lack of support from banks –be it in recasting debt or passing on rate cut to end users – has continued to hamper growth. A Sakthivel, Acting Chairman, Apparel Export Promotion Council (AEPC), while thanking Union Finance Minister Nirmala Sitharaman for the initiatives such as insisting banks not to declare stressed loan account of MSMEs as NPA till March 2020 and recast their debt said “banks seem disinterested in recasting the debt and continue to categorise loans to MSMEs as NPA”.Many units would be eligible to run if allowed debt reconstruction with additional working capital, evaluated and sanctioned on merit basis. Reduction of powers to the branch heads is causing enormous delay in sanctioning of loans, he felt. Export is a time-sensitive business, Indian apparel exporters can capitalise on the trade uncertainty between the US and China, as many US companies have started to look at India, Sakthivel said. He appealed to Sitharaman to instruct banks to support the MSMEs from the deteriorating situation. He further stressed the need to consider job-working units that cater to export manufacturing companies on priority basis as without them, exports would not grow.
Source: The Hindu Business Line
The Union government’s proposal to make the use of a range of Indian-made “technical textiles” — textiles used in industrial applications — mandatory for ministries and public agencies offers another example of the paucity of fresh ideas for reviving the economy. In seeking to artificially create a market for a category of textiles, the plan is reminiscent of successive Jute Control Orders, which made it compulsory for industry to use jute packaging for sugar, cement, fertiliser, and some other commodities. Under the current proposal, seven ministries involved ...
Source: Business Standard
The currency was trading weak in the non-deliverable forwards (NDF) market as well. The one-month rupee NDF was trading 34 paise down at 71.79 against the dollar on Tuesday. The rupee has depreciated by about 2.48% since the beginning of the year. The rupee continued its fall on Tuesday with the currency declining by 32 paise to close at 71.54 against the greenback led by persistent dollar-buying throughout the day. This is the lowest level seen by the currency in a month. During the day, the rupee fell to as low as 71.566 against the dollar. On Monday, the rupee had declined by 21 paise primarily led by a fall in the Chinese yuan after reports indicated China wants more time to finalise the details of the first phase of the trade deal with the US. However, the trigger shifted to consistent dollar-demand on Tuesday when the supply of greenback was limited, dealers indicated. “New York was closed on Monday, and as a result of this, the supply of dollar got hit on Tuesday. Furthermore, there was a huge dollar demand as a result of which the market witnessed continued buying since morning. At every 10-15 paise movement, the market saw persistent buying of dollars,” said a forex dealer. rupee, rupee to dollar, rupee news, rupee rate, rupee offshore market, rupee market price. The currency was trading weak in the non-deliverable forwards (NDF) market as well. The one-month rupee NDF was trading 34 paise down at 71.79 against the dollar on Tuesday. The rupee has depreciated by about 2.48% since the beginning of the year. The dollar index, which tracks the strength of the US dollar against a basket of currencies, was trading at 98.52 on Monday evening, having come down from its 16-month high levels of 99.377 during the end of September. Meanwhile, foreign portfolio investors (FPIs) have turned net buyers of Indian debt and equity in October, according to Bloomberg data. FPIs have bought $130.50 million worth of equities in October while they sold $30.10 million worth of Indian debt on a net basis this month.
Source: Financial Express
Birla Cellulose, one of the global leaders in Man Made Cellulose Fibre (MMCF) has achieved a breakthrough in manufacturing viscose fibre using pre-consumer cotton fabric waste. This new line of viscose is already being adopted and is available for sale to interested brands and retailers. This innovation has the distinction of Recycled Claim Standard (RCS) and portrays Birla Cellulose's commitment to a more circular economy. This innovation has been done through in-house R&D and uses a minimum of 20 per cent pre-consumer industrial fabric waste. Fabrics from the fibre offer excellent attributes similar to virgin fibre. The business will work on further developing products made with more than 50 per cent industrial fabric waste as well as postconsumer clothing as inputs in 2020. "Launching of recycled viscose fibre is part of our commitment for circularity and sustainable practices. We are also working on developing fibres using postconsumer clothing as inputs, in collaboration with Technology providers and brands," said Dilip Gaur, Business Director, Pulp and Fibre Business Aditya Birla Group. The fashion industry which is at the cusp of transformation towards a circular economy has much appreciated this innovation. It adds to Birla (/search? query=Birla) Cellulose's stature as a leader in achieving 'low risk' in its 2017 Canopystyle audits and a green shirt ranking in the Hot Button Report, both of which indicate that Birla is not sourcing from key priority areas of ancient and endangered forests. "We are thrilled that Birla Cellulose is launching a commercial-scale product made of recycled material and their drive towards developing solutions for 50 per cent recycled content by 2020. This is fantastic news for the world's forests and climate - and welcomed news for our 200 fashion brand partners that are looking for fabrics that meet Canopy's vision of safeguarding Ancient and Endangered Forests," said Nicole Rycroft, Founder and Executive Director, Canopy. Birla Cellulose has been in active collaboration with Brands, technology providers and textile chain actors to integrate and enhance value. Going forward, BirlaCellulose will intensify and strengthen its specialty portfolio towards value-added green textile solutions for the future.
Source: ANI News
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1020.63 |
USD/Ton |
0% |
10/15/2019 |
|
VSF |
1519.28 |
USD/Ton |
0% |
10/15/2019 |
|
ASF |
2170.70 |
USD/Ton |
0% |
10/15/2019 |
|
Polyester POY |
1049.63 |
USD/Ton |
-0.13% |
10/15/2019 |
|
Nylon FDY |
2348.24 |
USD/Ton |
0% |
10/15/2019 |
|
40D Spandex |
4088.19 |
USD/Ton |
0% |
10/15/2019 |
|
Nylon POY |
2305.80 |
USD/Ton |
0% |
10/15/2019 |
|
Acrylic Top 3D |
1174.12 |
USD/Ton |
0% |
10/15/2019 |
|
Polyester FDY |
2546.28 |
USD/Ton |
0% |
10/15/2019 |
|
Nylon DTY |
5347.19 |
USD/Ton |
0% |
10/15/2019 |
|
Viscose Long Filament |
1287.29 |
USD/Ton |
0% |
10/15/2019 |
|
Polyester DTY |
2185.56 |
USD/Ton |
-0.32% |
10/15/2019 |
|
30S Spun Rayon Yarn |
2143.12 |
USD/Ton |
-0.98% |
10/15/2019 |
|
32S Polyester Yarn |
1626.79 |
USD/Ton |
-0.86% |
10/15/2019 |
|
45S T/C Yarn |
2418.97 |
USD/Ton |
-0.58% |
10/15/2019 |
|
40S Rayon Yarn |
2022.88 |
USD/Ton |
-0.69% |
10/15/2019 |
|
T/R Yarn 65/35 32S |
1782.40 |
USD/Ton |
0% |
10/15/2019 |
|
45S Polyester Yarn |
2277.51 |
USD/Ton |
0% |
10/15/2019 |
|
T/C Yarn 65/35 32S |
2433.11 |
USD/Ton |
0% |
10/15/2019 |
|
10S Denim Fabric |
1.25 |
USD/Meter |
0% |
10/15/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
0% |
10/15/2019 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
10/15/2019 |
|
30S Rayon Fabric |
0.57 |
USD/Meter |
0% |
10/15/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
10/15/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14146 USD dtd. 15/10/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. The US-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, adding that the outlook could darken considerably if trade tensions remain unresolved. The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. The forecasts set a gloomy backdrop for the IMF and World Bank annual meetings this week in Washington, where the Fund's new managing director, Kristalina Georgieva, is inheriting a range of problems, from stagnating trade to political backlash in some emerging market countries struggling with IMF-mandated austerity programs. The World Economic Outlook report spells out in sharp detail the economic difficulties caused by the US-China tariffs, including direct costs, market turmoil, reduced investment and lower productivity due to supply chain disruptions. The global crisis lender said that by 2020, announced tariffs would reduce global economic output by 0.8%. Georgieva said last week that this translates to a loss of $700 billion, or the equivalent of making Switzerland's economy disappear. "The weakness in growth is driven by a sharp deterioration in manufacturing activity and global trade, with higher tariffs and prolonged trade policy uncertainty damaging investment and demand for capital goods," IMF Chief Economist Gita Gopinath said in a statement. Services were still strong across much of the world, but there were some signs of softening in services in the United States and Europe, Gopinath said. For 2020, the Fund said global growth was set to pick up to 3.4% due to expectations of better performances in Brazil, Mexico, Russia, Saudi Arabia and Turkey. But this forecast was a tenth of a point lower than in July and was vulnerable to downside risks, including worse trade tensions, Brexit-related disruptions and an abrupt aversion to risk in financial markets.
INVESTMENT, TRADE STALL
The IMF said foreign direct investment abroad by advanced economies came to "a virtual standstill" in 2018 after increasing in earlier years to average more than 3% of global gross domestic product annually - or more than $1.8 trillion. The institution said the decline of some $1.5 trillion between 2017 and 2018 reflected purely financial operations by large multinational corporations, including in response to changes in US tax law. Global vehicle purchases fell by 3% in 2018, reflecting a drop in demand in China after expiration of tax incentives and production adjustments after adoption of new emissions standards in Germany and other eurozone countries. Global trade growth reached just 1% in the first half of 2019, the weakest level since 2012, weighed down by higher tariffs and prolonged uncertainty about trade policies, as well as a slump in the automobile industry. After expanding by 3.6% in 2018, the IMF now projects global trade volume will increase just 1.1% in 2019, 1.4 percentage points less than it forecast in July and 2.3 percentage points less than forecast in April. Trade growth was expected to rebound to 3.2% in 2020, however risks remained "skewed to the downside," the IMF said, with a significant drag on both the US and Chinese economies.
TARIFF, RESHORING LOSSES
New IMF projections show China's GDP output falling 2 percent in the near term under the current tariff scenario and 1 percent in the long term, while US output would decline 0.6 percent over both time spans. "To rejuvenate growth policymakers must undo the trade barriers put in place with durable agreements, rein in geopolitical tensions and reduce domestic policy uncertainty," Gopinath said. But she was cautious about President Donald Trump's announcement on Friday of a "Phase 1" US trade deal with China, saying that more details were needed about the "tentative" deal. The IMF also modeled what would happen if multinational firms in the United States, euro area and Japan reshored enough production to reduce nominal imports by 10%. The lender found that it would drive up consumer prices and reduce domestic demand, while throttling the spread of technology to emerging economies. "At 3% growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," it said. "Further escalation of trade tensions and associated increases in policy uncertainty could weaken growth relative to the baseline projection."
Source: Reuters
US President Donald Trump yesterday announced sanctions against Turkish officials, raising steel tariffs and ending negotiations on a $100-billion trade deal. The announcement was in protest against Turkey's recent military offensive in northeast Syria. Trump signed an executive order that empowers his administration to slap sanctions on Turkey. "This (executive) order will enable the US to impose powerful additional sanctions on those who may be involved in serious human rights abuses, obstructing a ceasefire, preventing displaced persons from returning home, forcibly repatriating refugees or threatening the peace, security or stability in Syria," Trump said in a statement. The United States will immediately stop negotiations with Turkey on the trade deal and steel tariffs will be increased back up to 50 per cent, the level prior to the reduction in May, Trump said. Turkish trade minister Ruhsar Pekcan said in September this year that her country and the United States discussed steps to take bilateral trade to $100 billion from $20.6 billion in 2018. She said this during a four-day visit of US secretary of commerce Wilbur Ross to Turkey. Turkey's exports to the United States were worth $8.3 billion, while it imports totalled $12.3 billion, according to data from the Turkish Statistical Institute (TurkStat). In the January to July period this year, the sale of Turkish goods and products to the US was worth $4.6 billion and US exports to Turkey were $6.6 billion, Turkish media reported. There are 1,700 US companies currently operating in Turkey. At the G20 summit in July, both the countries drew a road map to gradually raise bilateral trade volume to $100 billion revised from the earlier target of $75 billion during a bilateral meeting between Presidents Recep Tayyip Erdogan and Trump. The sectors identified were automotive, textile, aviation, white goods, jewellery, building materials, furniture and tourism.
Source: Fibre2Fashion
The Vietnam-UAE Trade and Investment Forum kicked off in Hanoi today in the presence of Sultan bin Saeed Al Mansouri, Minister of Economy, and Tran Tuan Anh, Minister of Trade and Industry of Vietnam. Over 150 officials, people in business and investors from both countries are taking part in the forum to discuss prospects of economic cooperation, and expand partnership frameworks across various trade and investment sectors of interest. In a speech at the forum, Al Mansouri said that the UAE and Vietnam enjoy "strong and prosperous" bilateral relations. He pointed out that the UAE is the topmost trading partner of Vietnam in the Middle East and North Africa and serves as an excellent gateway for the trade of Vietnamese goods and products with the region. The UAE is also an attractive destination for Vietnamese companies looking to expand trade and investment in the region's markets, Al Mansouri explained, adding that the strength of cooperation is well-reflected in the figures and indicators of trade between the two countries. Total non-oil trade between the two sides reached $8.2 billion in 2018, and the UAE accounted for 54 per cent of the total value of non-oil trade between Vietnam and the GCC in the same year. Meanwhile, Vietnam accounted for 39 per cent of the total value of non-oil trade between the UAE and ASEAN countries in 2017, and it is the largest trading partner of the country from the ASEAN region. UAE investments in Vietnam are currently concentrated in the logistics, ports, maritime operations, aviation, tourism and hospitality sectors, in addition to oil and gas. Al Mansouri went on to note the importance of joint work to expand the umbrella of cooperation to include other sectors of mutual interest such as automotive, textile industries, agriculture and food security, infrastructure, renewable energy, research and development, smart cities and technology. For his part, Tran Tuan Anh hailed his country's relations with the UAE, emphasising that it is witnessing a continuous development reflecting the resolve of both parties at the governmental and corporate levels to move towards a broader partnership. He further reaffirmed his country's desire to develop cooperation efforts with the UAE in various fields. During the forum, Customs World - Dubai and Vietnam Logistics Business Association signed a memorandum of understanding to enhance trade exchange and to facilitate the movement of goods and commodities between and through the two countries to various regional markets, by facilitating procedures, reducing costs and opening up new markets for companies and businesses in both countries. Obaid Saeed Al Dhaheri, UAE Ambassador to Vietnam, said that the UAE-Vietnam Trade and Investment Week is an ideal opportunity to develop a mutually beneficial relationship by discussing opportunities, exchanging views and expanding the network of trade and economic relations for business communities. The UAE delegation taking part in the forum includes: Abdullah bin Ahmed Al Saleh, Under-Secretary of the Ministry of Economy for Foreign Trade Affairs; Jamal Al Jarwan, Secretary-General of the Emirates Council for Investors Abroad; Dr. Abdulrahman Al Naqbi, Director-General of the Department of Economic Development in Ras Al Khaimah; Sharief Habib Al Awadhi, Director-General of Fujairah Free Zone Authority; Saif Al Mazroui, Chief Executive Officer of Abu Dhabi Ports Operating Company at Abu Dhabi Ports; Nadia Kamali, CEO of Customs World - Dubai; Mohammed Nasser Hamdan Al Zaabi, Director of the Trade Promotion Department at the Ministry of Economy; Mishal Kano, Chairman of the Kanoo Group; and representatives from government agencies and private sector entities including Mubadala Development, Essa Al Ghurair Investments and others.
Source: Khaleej Times
The government is mulling a plan to impose temporary additional duties on imports of textile and textile products (TPT) as a safeguard measure to protect the domestic upstream industry from a recent surge in imports. The Finance Ministry’s fiscal policy head, Suahasil Nazara, said the government had identified 121 products, including yarn and curtain fabric, that would be subject to the safeguard measure. “Lately, we have seen a jump in imports of TPT. In line with the existing rules, we are considering to impose a safeguard measure, which is a type of measure that can be officially taken by Indonesia if there are increases in imports that could potentially harm the domestic industry,” said Suahasil in Jakarta on Monday. The move was taken after the government imposed antidumping duties for polyester staple fiber imports from India, China and Taiwan as well as Chinese imports of spin drawn yarn following an investigation by the Indonesian Antidumping Committee (KADI). The duties came into effect in early August and will last for three years. Suahasil said detailed discussions on the safeguard measure would be held on Oct. 17 to determine the rates, among other things, following a quick assessment by the Trade Ministry. The Indonesian Trade Safeguard Committee (KPPI) recently launched an investigation into the upturn in fabric imports after a complaint was filed by the Indonesian Textile Association (API). “From the preliminary evidence put forward [in the complainant], KPPI found a sharp increase in fabric imports. Moreover, there was a preliminary indication of serious damage or potentially serious damage to the domestic industry due to the sharp increase in import volume,” KPPI head Mardjoko said in a recent statement. The volume of fabric imports rose from 238.22 tons in 2016 to 413.81 tons last year, according to Statistics Indonesia (BPS) data. Similar investigations have also been undertaken by the KPPI for staple synthetic and artificial yarns since September as well as for curtain fabrics since June, among other products.
Source: The Jakarta Post
All Pakistan Textile Mills Association (Aptma) Chairman Dr Amanullah Kassim Machiara has urged the government to remove import duty from cotton as the industry has spent $1.5 billion on the import of 5.5 million bales due to 35% crop shortfall in the country this year. Addressing a press conference along with Aptma Punjab Chairman Adil Bashir on Tuesday, he said the quality of locally produced cotton had deteriorated in comparison to other cotton-producing countries. “The imposition of duty has had a heavy impact on the entire production value chain,” he lamented. “The government’s crop estimate is always on the higher side, which is seldom accurate. This year again, the initial estimate of 15 million bales was suddenly revised downwards to 10 million bales, which has now been reduced to 9.5 million bales, resulting in shortage of 5.5 million bales.” Addressing a press conference along with Aptma Punjab Chairman Adil Bashir on Tuesday, he said the quality of locally produced cotton had deteriorated in comparison to other cotton-producing countries. “The imposition of duty has had a heavy impact on the entire production value chain,” he lamented. “The government’s crop estimate is always on the higher side, which is seldom accurate. This year again, the initial estimate of 15 million bales was suddenly revised downwards to 10 million bales, which has now been reduced to 9.5 million bales, resulting in shortage of 5.5 million bales.”
Source: The Express Tribune
Indonesia will tighten restrictions on textile imports to shield local industries, according to foreign trade director general Indrasari Wisnu Wardhana, who has said the trade ministry will require all textile importers to receive government approval before they can ship in textile goods. The move will protect local products like certain yarns and fabrics. The revision to regulations is expected to be issued before President Joko Widodo, who takes office for the second term on October 20, appoints his new cabinet, Wardhana said. So products that are produced by domestic manufacturers should no longer be imported, he clarified. The domestic textile industry has weakened in the past three years due to an influx of imported textiles combined with sluggish consumption by Indonesian consumers, a news agency report quoted Ade Sudrajat, chairman of Indonesia’s Textile Association (API), as saying. Imports of textile fabrics rose by 74 per cent between 2016 and 2018, the ministry said. Indonesia imported 413,813 tonnes of fabrics in 2018 Indonesia in 2018 and exported $13.2 billion worth of textile goods. Imports of other textile products, such as some types of synthetic yarns doubled in three years to 2018. Indonesia imported these products from China, South Korea, Thailand and Vietnam, among others. Indonesia’s customs office also said rising volume of smuggled used clothing had been found. Import of second-hand garments is banned in the country.
Source: Fibre2fashion
