The India-China border dispute covers 3,488-km-long Line of Actual Control (LAC). China claims Arunachal Pradesh as part of southern Tibet while India contests it. India and China have agreed to hold another meeting on matters relating to the boundary question after Prime Minister Narendra Modi met Chinese President Xi Jinping on the sidelines of the BRICS Summit here, according to an official statement. The 21st round of India-China border talks, led by Special Representatives (SR) National Security Advisor Ajit Doval and his Chinese counterpart and Foreign Minister Wang Yi, were held at Chengdu in China in November last year. According to a statement by the Ministry of External Affairs, Prime Minister Modi and President Xi "noted that the Special Representatives will have another meeting on matters relating to the boundary question and reiterated the importance of maintaining peace and security along the border areas".The statement, however, did not mention the time-frame for the next round of boundary talks. Modi and Xi are in Brazil for the 11th BRICS (Brazil, Russia, India, China and South Africa) Summit. During the 21st round of talks, both the sides resolved to "intensify" and "advance" the dialogue for an early settlement of the boundary dispute, according to the official statements issued by both the sides after the talks. The two officials also emphasised on maintaining peace and tranquillity at the border by the two militaries making use of a number of mechanism worked out to improve the relations between the troops on the ground. The SR talks are the highest official-level forum with a mandate to discuss not only solution to the boundary issue but also other issues concerning the two countries. The India-China border dispute covers 3,488-km-long Line of Actual Control (LAC). China claims Arunachal Pradesh as part of southern Tibet while India contests it. This year's talks were expected to be held in September in India ahead of Xi's visit to Chennai last month for the second informal summit with Modi at Mamallapuram. But it did not take place due to "scheduling issues", according to officials on both sides. The talks are now expected to take place following Wednesday's meeting between Modi and Xi at Brasilia. After his summit meeting with Modi at Mamallapuram, Xi said "we will seek a fair and reasonable solution to the border issue that is acceptable to both sides in accordance with the agreement on political guiding principles". "We should carefully handle issues concerning each other's core interests. We should properly manage and control problems that cannot be solved for the time being," he said in a statement after the talks in Chennai. Xi also suggested that both the countries should improve the level of military and security exchanges and cooperation. "We should promote the development of military-to-military relations in the right direction of enhancing trust, clearing up misgivings and friendly cooperation. "We should carry out professional cooperation, joint exercises and training, enhance mutual trust between the two militaries, strengthen cooperation between law enforcement and security departments, and maintain regional security and stability," Xi added.
Source: Business Standard
As India hopes to assert itself on the world stage, its foreign policy cannot be tethered to dogmas and needs to be agile in a fast-changing global order, according to external affairs minister S Jaishankar. As India hopes to assert itself on the world stage, its foreign policy cannot be tethered to dogmas and needs to be agile in a fast-changing global order, according to external affairs minister S Jaishankar. Delivering the 4th Ramnath Goenka Memorial Lecture Thursday on the topic, “Beyond the Delhi Dogma: Indian Foreign Policy in a Changing World”, Jaishankar said: “We are now at the cusp of change. With more confidence, the pursuit of seemingly divergent goals and the straddling of contradictions are being attempted. Taking risks is inherent to the realisation of ambitions.” He said that “a nation that has the aspiration to become a leading power someday cannot continue with unsettled borders, an unintegrated region and under-exploited opportunities” and “above all, it cannot be dogmatic in approaching a visibly changing global order”. Stressing that many of the long-held beliefs no longer hold true, Jaishankar said that in a changing world “we need to think, talk and engage accordingly” and added that “falling back on the past is unlikely to help with the future”. The foreign minister said the “very structure of the international order is undergoing a profound transformation,” and cited India’s foreign policy cannot be tethered to dogmas: Minister-diplomat Jaishankar “American nationalism, the rise of China, the saga of Brexit and the rebalancing of the global economy” as the “more dramatic examples of change”. He said what defined power and determines national standing is also no longer the same — “technology, connectivity and trade are at the heart of new contestations”. “The global commons is also more in disputation as multilaterism weakens,” Jaishankar said. “The real obstacle to the rise of India is not anymore the barriers of the world, but the dogmas of Delhi,” he said. “Evidence strongly supports the view that India advanced its interests effectively when it made hard-headed assessments of contemporary geopolitics. And even more so when it did not hesitate to break with its past. The 1971 Bangladesh war, the 1992 economic and political repositioning, the 1998 nuclear tests or the 2005 India-US nuclear deal are instructive examples. Indeed, it is only through a series of disruptions that India was able to bring about decisive shifts in its favour,” he said. “A misreading of geopolitics and economics upto 1991 stands in contrast to the reformist policies thereafter. Two decades of nuclear indecision ended dramatically with the tests of 1998. The lack of response to 26/11 is so different from the Uri and Balakot operations. Whether it is events or trends, they all bear scrutiny for the lessons they hold,” he said. Jaishankar said “the fact remains that even after seven decades of independence, many of our borders remain unsettled” and that in the economic sphere, “we may look good when benchmarked against our own past” but “it seems a little different when compared to China or South East Asia”. India needs “greater realism in policy”, Jaishankar said. The “early misreading of Pakistan’s intentions can perhaps be explained away by lack of experience”, but “the reluctance to attach overriding priority to securing borders even a decade later is much more difficult to justify”, he said. He said India had strongly “built up an image of a reluctant power,” but it “ended up influenced by our own narrative”. This, he said, was the reason that India “rarely prepared for security situations with the sense of mission that many of our competitors displayed”. Discomfort with hard power was reflected in lack of adequate consultation with the military, most notably during the 1962 conflict, said Jaishankar, and compared it to the creation of the post of Chief of Defence Staff “half-a-century later shows a very different mindset”. Regarding Pakistan, he said the fact that “it has taken us so long to link talks with Pakistan to cessation of terrorism speaks for itself”. Discussing the important of economy and diplomacy, he said that “economy drives diplomacy; not the other way around”. Talking about India not signing RCEP recently, Jaishankar said that China “poses a special trade challenge even without an FTA”. The recent debate about the RCEP offers lessons in foreign policy as much as in the trade domain. He explained: “What we saw in Bangkok was a clear-eyed calculation of the gains and costs of entering a new arrangement. We negotiated till the very end, as indeed we should. Then, knowing what was on offer, we took a call. And it was that no agreement at this time was better than a bad agreement. It is also important to recognize what the RCEP decision is not. It is not about stepping back from the Act East policy, which in any case is deeply rooted in distant and contemporary history. Our cooperation spans so many domains that this one decision does not really undermine the basics. Even in trade, India already has FTAs with 12 out of the 15 RCEP partners. Nor is there really a connection with our Indo-Pacific approach, as that goes well beyond the RCEP membership. There can be a legitimate debate on the merits of joining RCEP or any other FTA for that matter. Just don’t confuse it for grand strategy.” Earlier, welcoming the Foreign Minister, Raj Kamal Jha, Chief Editor, The Indian Express, said that a government with a majority in the Parliament may not need allies for domestic politics, but it still needs to perform the “coalition dharma” for international relations. Describing Jaishankar as a “scholar-diplomat”, Jha said the Foreign Minister blended hard-nosed diplomacy with a soft touch. Jha said Jaishankar’s skills lie in navigating the “contemporary fog” and ascertaining how much of that fog is a blind spot. The appointment of Jaishankar in June was the first instance of a Foreign Secretary being given the Foreign Minister’s job. The Ramnath Goenka Memorial Lecture was instituted in 2016 by The Express Group to mark 25 years of the passing of its founder. The first three RNG Memorial Lectures were delivered by Raghuram Rajan, then RBI governor; Pranab Mukherjee, then President of India; and Justice Ranjan Gogoi, currently the Chief Justice of India, respectively.
Source: Financial Express
Prime Minister Narendra Modi and other four BRICS leaders on Thursday called for an "urgent need" to strengthen and reform the United Nations and other multilateral organisations, including the WTO and the IMF, to address the significant challenges being faced by the developing countries. Prime Minister Modi was in the Brazilian capital of Brasilia to attend the 11th BRICS Summit. In a joint statement, the leaders of India, Brazil, Russia, China and South Africa said they are committed to multilateralism, cooperation of sovereign states to maintain peace and security, advance sustainable development and ensure the promotion and protection of human rights and fundamental freedoms for all and build a brighter shared future for the international community. The BRICS leaders said they are committed to "helping overcome the significant challenges currently facing multilateralism, as well as upholding the central role of the UN in international affairs and respecting international law"."We reiterate the urgent need to strengthen and reform the multilateral system, including the UN, the WTO, the IMF and other international organisations, which we will continue working to make more inclusive, democratic and representative, including through greater participation of emerging markets and developing countries in international decision-making," they said. Emphasising on their commitment to shape a more fair, just, equitable and representative multipolar international order, the leaders underlined the imperative that international organisations be fully driven by member states and promote the interests of all. "We recall the 2005 World Summit Outcome document and reaffirm the need for a comprehensive reform of the UN, including its Security Council, with a view to making it more representative, effective, and efficient, and to increase the representation of the developing countries so that it can adequately respond to global challenges," the statement said. China and Russia reiterated the importance they attach to the status and role of Brazil, India and South Africa in international affairs and support their aspiration to play a greater role in the UN. The BRICS nations also expressed serious concern over persistent threats to international peace and security and committed to work for lasting peace for all. "We reaffirm our commitment to the principles of good-faith, sovereign equality of states, non-intervention in matters within the domestic jurisdiction of any state, and the duty to cooperate, consistently with the Charter of the UN. Implementation of these principles excludes imposition of coercive measures not based on international law," they said. The leaders reaffirmed their commitment to a strong, quota-based and adequately resourced International Monetary Fund (IMF) at the centre of the global financial safety net, while expressing their disappointment that the 15th General Review of Quotas (GRQ) failed to increase the quota size of the Fund and realigning quota shares of member countries, including in favour of emerging markets and dynamic economies (EMDEs). The BRICS nations said the EMDEs remain under-represented in the Fund. "We also support protecting the voice and representation of the poorest members. We call upon the IMF to start work on quota and governance reform on the basis of the principles agreed in 2010 under the 16th GRQ in right earnest and within a tight timeframe," the statement said. The leaders emphasised on the fundamental importance of a rules-based, transparent, nondiscriminatory, open, free and inclusive international trade. "We remain committed to preserving and strengthening the multilateral trading system, with the World Trade Organisation at its centre. It is critical that all WTO members avoid unilateral and protectionist measures, which run counter to the spirit and rules of the WTO," the leaders said. Brazil is the current chair of the grouping, which represents over 3.6 billion people, or half of the world population and they have a combined nominal GDP of USD 16.6 trillion.
Source: PTI
India's "no" to RCEP reflects one of the many opportunities it has missed to become a solid global manufacturing base. Where does India stand in Asia? Has its position changed after its rejection of the Regional Comprehensive Economic partnership (RCEP), which has been on Asean’s agenda since 2012? India’s absence from the Asia-Pacific Economic Conference (APEC) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) rules it out from influencing the blocs that will define Asia’s economic future. To the dismay of India’s friends, including Japan, that absence also leaves the field open for China to dominate the RCEP and to wield economic power over ...
Source: Business Standard
While a decision in this regard was taken by the GST Council in April, the reason for the 'extreme' step could be to check leakages of taxes. Non-filing of returns is still high and the tax department thinks this is a major cause for falling GST collections. Concerned with the dipping monthly collections of Goods and Services Tax (GST), the government and indirect tax department are now planning stricter measures against non-compliant taxpayers. According to sources, the tax department is now planning to block the facility to generate e-way bill for taxpayers who do not file two consecutive GSTR-3B returns with effect from 17 November 2019. Once the taxpayer has filed one of the pending returns, the facility to generate e-way bill will be automatically restored. GSTR-3B is monthly return that every registered GST payer has to file. It contains details of sales and purchases made by a business. Sources told Business Today that the required connectivity between GST Network (GSTN) and the e-way bill system and development of an application to block and unblock facility has been developed and tested between two systems. While a decision to this effect was taken by the GST Council in April, the reason for the 'extreme' step could be to check leakages of taxes. Non-filing of returns is still high and the tax department thinks this is a major cause for falling GST collections. "With a continuous dip in revenue for the last few months, this is a step towards curtailment of tax leakage. Businesses need to ensure disciplined filing of GSTR-3B to avoid business disruption," says Anita Rastogi, partner, indirect taxes, PwC. According to the indirect tax department, as of 8 November 2019, 21.99 lakh taxpayers have been found to have not filed GSTR-3B returns of August and September 2019. These defaulters now face possible blocking of the facility to generate e-way bill from 17 November. The department, however, is planning to send alert messages to such taxpayers if they come to e-way bill website, and ask them to file their returns by the 17 November. The problem though is that integration testing of backend applications of few states with GST System is not yet completed. Unless the facility to unblock the e-way generation facility is developed, the department cannot go ahead with blocking the facility. Rajat Mohan, a partner in chartered accountancy firm AMRG & Associates, said that deferment of implementation of tax provisions on the premise that technology is not ready indicates that the tax authorities are still not ready to identify and capture the culprits (evading tax) on a real-time basis. In September 2019, the GST collection fell by 5.3% to Rs 95,450 crore as compared to a year-ago period. In August, the GST collections fell to Rs 92,000 crore, which was lower than the previous year collection by over 4%. With the average monthly collections so far this year at around Rs 98,000 crore, way below the required Rs 1.20 lakh crore, the government is looking at a large shortfall in GST collection. With five more months to go in this financial year, the latest move is probably a last-ditch attempt by the government to revive GST collections.
Source: Business Today
Assam has got its first export policy to boost exports. The state has a competitive advantage through increased market penetration as well as to explore new markets for products in nine focus areas, which includes tea, its principal export item, wellness hospitality and health tourism. The export and logistic policy, 2019 will be in force for five years. “Assam has the unique locational advantage, being the closest landmass of vibrant economies of the South East Asian countries. On Act East, Assam is on its way to get some of the best infrastructure in Asia to facilitate the largest volume of trade between India, China, Myanmar, Bangladesh and other Asean countries,” the introduction to the policy states. For decades, tea has been a major export item and the state produces more than half of the total tea of the country. Today, 761 big tea gardens and more than one lakh small tea gardens produce an average of 630 million kilograms of tea which is more than 50% of the country’s total tea production. Tea is the major item of export from Assam. Apart from tea, petroleum products, cosmetics, pharmaceutical products, textiles, food products and agro and horticulture produces, ornamental fish, Agar oil are also exported from the state. The other objectives of the policy includes enhancing the ease of doing exports through creation of simple, effective and efficient institutional mechanisms, simplified processes and efficient organization and coordination with stakeholders. Besides tea, the other focus areas are agro and allied products, food processing, floriculture, organic farming, bamboo products, ornamental fishes and pisciculture and medicinal and aromatic products, hydrocarbon products, plastics and petrochemicals, tourism including medical tourism, hospitality and wellness. The state policy makers are banking on new and improved connectivity through the East West corridor which starts from Porbandar in Gujarat to Silchar in Assam with a distance of 3300km, Asian Highway No 1, which slices through the state. While BG railway network in Assam is about 2434km and connected with all major cities of India, the state government with the help of inland waterways is taking up a massive programme is to dredge the river mighty Brahmaputra and river Barak to use navigable waterways in trade and commerce that connects to Bangladesh giving it access to the ports of Kolkata and Haldia in West Bengal and Chittagong and Mongla in Bangladesh.
Source: Times of India
He said earlier Indian companies used to export material and import finished goods due to lack of technology availability. Union Minister Pratap Chandra Sarangi on Thursday said the MSME sector plays a crucial role in achieving the Centre's target of making the country a $ 5 trillion economy. Speaking at the presentation of the Achievers Award 2019 atthe National Institute for Micro Small and Medium Enterprises here, the Minister of State for Micro, Small and Medium Enterprises said the MSME sector is the largest employment generator after agriculture in the country. He said earlier Indian companies used to export material and import finished goods due to lack of technology availability. Though it enhanced the trade, the model did not help generate jobs in the country. However, after industrialisation, the situation, the country witnessed ample employment generation. Meanwhile, the Minister of state for Home Affairs G Kishan Reddy said the MSME sector is the backbone of Indian economy and the Prime Minister, Narendra Modi is the reason behind Skill India as his contributions towards the sector are immense. Reddy was the chief guest at the valedictory function of Phase I of International Executive Development Programme, 2019-20 was held on Thursday at the National Institute for Micro Small and Medium Enterprises (NIMSME) here. As many as 70 International Delegates from 28 countries derived the benefit of Indian MSME experience in the past 6 week intensive training at the programme.
Source: Business Standard
According to CHEMEXCIL chief, Gujarat has been hit hard as it used to export reactive dyes which was used in the textile industry in Pakistan. “Most of the reactive dyes used to be imported from Gujarat. Every month 1,000 metric tonne used to be exported,” he said. Three months after Pakistan suspended bilateral trade with India, dyestuff manufacturers in Gujarat have started feeling the heat after 1,000 metric tonne (MT) of monthly exports to the neighbour came to a standstill. “The growth has slowed down. When one market which accounted for 18 per cent of the exports shuts down, then effect will be surely be felt in the longer run, especially in the second half of the financial year,” Ajay Kadakia, chairman of CHEMEXCIL (Basic chemicals, cosmetics and dyes export promotion council), — an organisation set up by the Union Ministry of Commerce and Industry — told The Indian Express on the sidelines of 9th Asia International Dye Industry, Pigments and Textile Chemicals Exhibition at Gujarat University Convention centre where 50 Chinese companies are participating. The growth of dyestuff goods that was around 18-20 per cent every year, has slowed down to six per cent in September 2019. “Though the effect of Pakistan suspending trade is yet to show, we will have a negative impact in the past six months of the year… There is an impact… Because of Pakistan closing down, we are under pressure. They are now trying to import from China. There are dyestuff industries in Taiwan, Thailand, Indonesia and South Korea,” he said. According to CHEMEXCIL chief, Gujarat has been hit hard as it used to export reactive dyes which was used in the textile industry in Pakistan. “Most of the reactive dyes used to be imported from Gujarat. Every month 1,000 metric tonne used to be exported,” he said. When asked if any representation from Gujarat or CHEMEXCIL was made to the Indian government to end the impasse, Kadakia said, “We cannot do anything because it was for Pakistan to open trade. It is in a tussle with the Indian government… But Pakistanis used to benefit out of imports from India. Compared to other destinations, Ahmedabad is a stone’s throw away from Attari border from where the consignments used to go to Faisalabad. Their transport costs were minimum and once they ordered, the consignments from India used to reach them within five to seven days.” Apart from Faisalabad, dyes from Gujarat also went to other textile hubs in Lahore and Karachi. Gujarat has an estimated 1,100 units producing dyestuff of which 90 per cent of them produce reactive dyes while the rest produce pigments and some other basic dyes. “Apart from Pakistan, we also export reactive dyes to countries such as Bangladesh, Turkey and Indonesia,” he added. According to the official, Pakistan suspended trade with India in reponse to India’s move to end special status to Jammu and Kashmir. After the Pulwama terrorist attack, India revoked Pakistan’s most favoured nation (MFN) status and imposed up to 200 percent duty on import of Pakistani goods. The President of Gujarat Dyestuff Manufacturers Association, Yogesh Parikh said there has not been any cut in production or job losses despite Pakistan stopping imports of reactive dyes. “The exports to Pakistan were stopped in August after Article 370 was removed from Jammu and Kashmir. It has affected our growth, but there is yet no cut in production or job losses,” he said.
Source: Indian Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
955.13 |
USD/Ton |
-0.81% |
11/14/2019 |
|
VSF |
1507.12 |
USD/Ton |
0% |
11/14/2019 |
|
ASF |
2185.90 |
USD/Ton |
0% |
11/14/2019 |
|
Polyester POY |
975.78 |
USD/Ton |
0.22% |
11/14/2019 |
|
Nylon FDY |
2207.98 |
USD/Ton |
-0.96% |
11/14/2019 |
|
40D Spandex |
4102.56 |
USD/Ton |
0% |
11/14/2019 |
|
Nylon POY |
2321.94 |
USD/Ton |
0% |
11/14/2019 |
|
Acrylic Top 3D |
1075.50 |
USD/Ton |
0% |
11/14/2019 |
|
Polyester FDY |
2450.14 |
USD/Ton |
-0.58% |
11/14/2019 |
|
Nylon DTY |
5384.61 |
USD/Ton |
0% |
11/14/2019 |
|
Viscose Long Filament |
1217.95 |
USD/Ton |
0% |
11/14/2019 |
|
Polyester DTY |
2094.02 |
USD/Ton |
0% |
11/14/2019 |
|
30S Spun Rayon Yarn |
2079.77 |
USD/Ton |
-0.41% |
11/14/2019 |
|
32S Polyester Yarn |
1588.32 |
USD/Ton |
-0.45% |
11/14/2019 |
|
45S T/C Yarn |
2421.65 |
USD/Ton |
0% |
11/14/2019 |
|
40S Rayon Yarn |
1937.32 |
USD/Ton |
-0.73% |
11/14/2019 |
|
T/R Yarn 65/35 32S |
1766.38 |
USD/Ton |
-0.80% |
11/14/2019 |
|
45S Polyester Yarn |
2293.45 |
USD/Ton |
0% |
11/14/2019 |
|
T/C Yarn 65/35 32S |
2393.16 |
USD/Ton |
0% |
11/14/2019 |
|
10S Denim Fabric |
1.26 |
USD/Meter |
0% |
11/14/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
0% |
11/14/2019 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
11/14/2019 |
|
30S Rayon Fabric |
0.55 |
USD/Meter |
-0.51% |
11/14/2019 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
11/14/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14245 USD dtd. 14/11/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The trade war has accelerated the deterioration of a downward economic cycle in China, especially on consumption. 5G should be the new growth engine in 2020.
Investment data shows trade war damage
Fixed asset investment grew only 5.2% year-on-year, year-to-date in October, the slowest growth rate since the data started in 1998. The weakness here shows that Chinese business investment has been highly affected by the trade war. Investment in the textile industry (-8.5%YoY YTD) and electric equipment (-7.5%YoY YTD) actually contracted. Investment in these areas is only likely to recover when there is substantial progress in the trade negotiations. For most of 2019, investment has been supported by transportation infrastructure investment via the issuance of local government special bonds. As the end of the year approaches, investment in these projects has slowed, shrinking 5.9%YoY YTD though we expect a pick up from 1Q20. Industrial production shows cyclical pressure from trade war and local consumption. Headline industrial production growth slowed to 4.7%YoY in October from 5.8% in the previous month. Industrial production of two items in particular, vehicles (-11.1%YoY) and smartphones (-7.3%YoY), show how the trade war has affected exports as well as local demand. Vehicles and smartphones share two similar features; they are both expensive and demand for new models from consumers is low without an obvious reason to upgrade. As demand is weak, production shrinks as inventory must be sold. It's not all bad though. Production of integrated circuits grew 23.5%YoY in October and we expect this to remain strong due to the production of 5G parts and products.
Retail sales hit by big ticket items
Headline retail sales grew at 7.2%YoY, lower than the market expectation of 7.8%YoY, and the lowest this year. The growth was supported by spending on necessities (12%). Uncertainty about job security is a key reason why consumers are cautious about spending on big-ticket items. Data shows that spending on vehicles fell 3.3%YoY and jewellery was down 4.5%YoY even though there was a long holiday in October. People did spend on smartphones (22.9%) as some Chinese brands began selling 5G phones in October. This confirms that 5G is the new growth engine of the economy.
Growth prospects rest on trade and 5G
We expected that the process of getting a Phase One trade deal would be full of uncertainty. It is unfortunate that we are correct. Chinese companies will continue to defer investments if they are in the export business. However, if Chinese companies are involved in building and producing 5G infrastructure, equipment, parts, and final goods and services, they are highly likely to enjoy decent growth, even though they may not be able to export their products to some parts of the world. Unless these factors change, we won't be revising our GDP forecast of 6.2% for 2019 and 5.9% for 2020.
Yuan outlook
For the market, all of this means that USD/CNY will be very volatile. The yuan will weaken a lot if there is no Phase One deal and we can't rule this out even if the chance is small. On the other hand, the currency will strengthen if tariffs on $112 billion worth of goods, imposed in September, are lifted. Volatility will continue even after a Phase One deal is agreed because the market will then start to question the likelihood of a more comprehensive follow-up agreement. We are forecasting USD/CNY at 7.0 by the end of 2019 and 6.85 for the end of 2020, which mostly depends on the progress of the trade talks. The market will soon realise that a simple Phase One deal is by no means the end of the trade war.
Source: ING
Islamabad is expected to get tax-free access for the entry of 313 Pakistani products into the Chinese market from next month, under an upgraded free trade agreement with Beijing, the commerce adviser said on Tuesday. Adviser to PM Razak Dawood said the second phase of the free trade agreement (FTA) with China was going to be operational from December 1. “The phase-II is going to facilitate the access of 313 top export items into Chinese market,” Dawood said, addressing a world fashion convention. “After this agreement, all the major exports of the country especially value-added textile items would have better excess into Chinese market.” The commerce adviser said this would help Pakistan come at par with the south east Asian economies in Chinese market, providing a huge opportunity of tariff relaxation to the manufacturers especially the garment sector to enhance their export volume with growth potential of 20 times. “Government’s major economic agenda is to increase country’s exports, which would strengthen the economy by overcoming trade and current account deficits,” he said. Dawood said China has provided Pakistan with an opportunity to export chemicals and engineering goods as well, as the government wants to take export to the highest level ever through business-friendly policies. The government is taking different measures for export enhancement, including reclaiming traditional markets besides getting access to the new markets. “Garment exports are on upward trajectory due to additional market access secured by the current government.” Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) hosted the convention in collaboration with the International Apparel Federation (IAF). Commerce adviser said the Chinese companies started construction work in Lahore and Faisalabad to explore business in textile sector. These companies have started locating business centres in different parts of the country. Referring to the lowering exports of yarn and fabrics, he said this is good for Pakistan, as it would provide the opportunity to textile sector for more focus on value addition. Dawood said after the World Fashion Convention in Pakistan the economy of the country would be more integrated into the global economy and this linkage would bring foreign investment into the country. “The convention will prove to be an unprecedented positive event in the country’s business environment, which would enhance the overall image of the country at the world level and help promote investment to the country,” he said. IAF President Han Bekke said the federation represents apparel associations from 60 countries, having overall membership of more than 150,000 companies. Pakistan is also the member of IAF and its regional office has also been set up in the office of PRGMEA in Sialkot. The theme of the 35th edition of this well-established global apparel convention is collaborative growth with sustainability for all. Bekke said the IAF is a global platform uniting apparel buyers with manufacturers and this crucial relationship is at the heart of the conference, as “we focus on growing together”. The convention has gathered apparel industry leaders from across the world and provides a unique opportunity for Pakistani apparel industry to learn new techniques. IAF Regional President Ijaz Khokhar said the convention was aimed at opening new avenues for the domestic garment industry to collaborate with the international buyers and leading global brands. The event has been attended by world class speakers, offering global network opportunities during the conference. The convention is held every year in one of the member countries. Khokhar said Russia and Bangladesh had also applied for the 35th Convention. Pakistan won the convention bid with full struggle and proper presentation. “In the world class convention, there is a detailed presentation on Pakistan and apparel industry for creating awareness about the potential of Pakistan as production hub of textile items especially garments,” he added. PRGMEA North Zone Chairman Sohail Afzal Sheikh said the mega convention provides an opportunity to its participants to discuss issues being faced by the global industry and also to network at a global level.
Source: The News
Canada’s department of toxic substances control (DTSC) recently proposed to list treatments containing perfluoroalkyl or polyfluoroalkyl substances (PFAS) for use on converted textiles or leathers like carpets, upholstery, clothing and shoes as ‘priority products’ under the Safer Consumer Products (SCP) regulations. Such treatments are frequently used in homes and occupations. PFASs are a class of chemicals characterized by highly stable carbon-fluorine bonds and used in many applications. DTSC has identified treatments for converted textiles or leathers as significant sources of human and ecological PFAS exposures, especially via inhalation during product use, according to a DTSC press release. These treatments contribute to the ubiquitous environmental contamination and exposures, as do other consumer products such as food packaging, cosmetics and waterproof clothing. There is evidence that exposure to PFASs can lead to adverse health outcomes in humans. If humans are exposed to PFASs through diet, drinking water or inhalation, these chemicals remain in the body for a long time. As people continue to be exposed to PFASs the levels in their bodies may increase to the point where they suffer from adverse health effects. Studies indicate that some PFASs can cause reproductive and developmental, liver and kidney, and immunological effects, as well as tumours in laboratory animals. The most consistent findings from human epidemiology studies are a small increase in serum cholesterol levels among exposed populations, with more limited findings related to infant birth weights, effects on the immune system, cancer, and thyroid hormone disruption. Some PFASs have also been linked to phytotoxicity, aquatic toxicity, and terrestrial eco-toxicity. DTSC has found that such treatments have the potential to cause significant and widespread adverse impacts to sensitive subpopulations, including foetuses, infants, young children, pregnant women, carpet and upholstery cleaners, workers in upholstered furniture, furnishings, clothing, shoes, and carpet stores, as well as auto dealership workers and auto detailing technicians; to environmentally sensitive habitats; and to threatened and endangered species.
Source: Fibre2Fashion
An institutional and commercial mission of Italian textile machinery manufacturers took place recently in Kenya and Tanzania. The initiative’s organisers, Italian Trade Agency and ACIMIT, the Association of Italian Textile Machinery Manufacturers, wanted to strengthen contacts between Italian textile machinery industry and textile sector in the two African countries. The world’s textile and garment sector is closely watching manufacturing countries in Sub-Saharan Africa, an area that is emerging as a manufacturing hub for the industry, firstly for obvious reasons relating to production costs, but also for the incentives offered by local governments. Consequently, investments in machinery are also increasing and Italian manufacturers do not want to be caught unprepared in this growth scenario. Following several promotional initiatives focusing on Ethiopia over the past few years,” said ACIMIT president Alessandro Zucchi, “together with the Italian Trade Agency, we’ve decided to explore the business opportunities in Kenya and Tanzania, two countries whose respective governments are currently promoting the development of their textile and garment industry.” Kenya, in particular, is an especially interesting market for textile machinery manufacturers. Indeed, the development programme known as Vision 2030 put forward by the local authorities places the textile sector among the primary beneficiaries of the incentives made available by the government, in addition to providing Kenyan manufacturers with access to the US market, thanks to AGOA (the African Growth and Opportunity Act), which has boosted the country's exports.
Source: Fibre2Fashion
