The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 18 JAN, 2020

NATIONAL

INTERNATIONAL

DGTR initiated 34 anti-dumping probe during Apr-Dec 2019: Commerce Ministry

The Directorate General of Trade Remedies (DGTR) has initiated as many as 34 anti-dumping probe during April 2019 to December last year, the commerce ministry said on Friday. The directorate has also started four countervailing and six safeguard investigations during the same period, the ministry said in a statement. Time taken in issue of final findings from the date of initiation has come down to 234 days in 2019 - 2020 from 478 days in 2014-15," it added. It also said average time taken to initiate an anti-dumping investigation has also come down to 33 days in 2019-20 as compared to 43 days in 2018-19. Further the directorate has initiated outreach programmes to sensitize stakeholders about the available trade remedy measures. The directorate is an investigation arm of the ministry which deals with anti-dumping duty, safeguard duty, and countervailing duty. These duties are trade remedy measures, provided under an agreement of the World Trade Organisation (WTO) to its member countries. They are used to provide a level playing field to domestic industry in case of dumping of goods, significant increase in imports and subsidised imports.

Source: Economic Times

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India initiates probe into alleged dumping of VSY

The Indian commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) recently initiated a probe into alleged dumping of viscose rayon spun yarn (VSY) by companies based in China, Indonesia and Vietnam following an application filed by the Indian Manmade Yarn Manufacturers Association on behalf of the domestic industry requesting the government to impose anti-dumping duty on these yarn imports. The association has alleged that dumped imports from these countries are causing material injury to the domestic industry. The DGTR notification said that on the basis of the prima facie evidence submitted by the association, the authority initiated the investigation. DGTR will determine the existence, degree and effect of any alleged dumping. If it is established that the dumping has impacted domestic industry, the directorate would recommend imposition of the duty. The finance ministry will take the final decision. The period of investigation is April to December 2019. It would also look at 2016-19 data. Yarn is mainly used for weaving or knitting for production of fabric for eventual use in garments.

Source: Fibre2Fashion

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Industry unhappy with retrospective withdrawal of MEIS

Apparel manufacturers and exporters are not happy with the government's decision to withdraw Merchandise Exports from India Scheme (MEIS) for garments under HSN code chapters 61, 62 and 63 retrospectively from March 7, 2019. The decision is not a good sign for apparel exports and is expected to hit their cashflow and bottom line, industry stakeholders said. Under MEIS, garment and made-up firms were receiving 4 per cent of FoB value of exports as incentives. The government's decision followed a recommendation of the expenditure finance committee (EFC), which has also announced a special one-time additional ad hoc incentive of up to 1 per cent of free on board (FoB) value for exports of apparel and made-ups with a cap of ₹600 crore, to offset the difference between the new rebate on state and central taxes and levies (RoSCTL) and the previous rebate on state levies (RoSL) plus MEIS from March 7, 2019 to December 31, 2019. "The decision (to withdraw MEIS) is actually unfair to industry. The government had given some concession and later on after a period of nine months it is telling that the benefit is withdrawn. This is totally against the industry. Already we have discounted the prices based on the MEIS benefit. The decision will hurt the industry very badly," KM Elango Mariappan, CEO, Peacock Apparels told Fibre2Fashion. Roshan Baid, MD, Paragon Apparel, feels the same. "MEIS shouldn't have been scrapped actually. And especially, it should not have been done retrospectively since March 2019. The government has done it, which is unfair. It could have done it for future. We have already booked orders by exact costing. If we had known that we are not going to get the incentive, then we would have acted differently. The decision will lead to losses and cash flow issues because between March to December whatever we have shipped, we will not get the MEIS benefit for the same." Speaking similarly, Ashok Jain, VP-Commercial, Pratibha Syntex said, "The government took almost 7-8 months to decide what finally exporters will get. The exporters did their costing based on the notifications issued and clarification given by the finance minister. Secondly, the government has compared RoSCTL with RoSL and MEIS, creating a lot of confusion. And finally, bringing in DGFT for correcting disbursal of benefits is going to create problems." He added that in todays' environment where business is already challenging, and where expectations are so high, if government is taking decisions where there is no clarity and coordination between the departments, it is not a good sign for apparel exports in India. Orient Craft Ltd GM-exports Satish Das too is not happy with the decision. "The government says that it cannot give MEIS due to the pressure of WTO. So, it merged MEIS with the RoSCTL and difference of 1 per cent has been compensated in the last circular of 15th. We have voiced our concerns to the ministry, but it has not worked." In sync with other stakeholders is Varinder Kumar Magu, managing partner, Jyoti Apparels. "All of a sudden some policies are announced, and they are implemented immediately, whereas we have orders for next 90 days delivery. We are not happy with the situation and the decision is not good for the industry. Moreover, timing is also not good, as the industry is currently passing through a very tough time." The government should not have withdrawn MEIS retrospectively, as it will affect the profitability of the companies at a time when the industry is passing through a rough period. Apparel sector is one of the key industries in terms of employment generation in India, and hence the industry feels that the Prime Minister's Office should intervene to address this issue. In fact, early refund of pending claims under RoSL and MEIS schemes was one of the issues discussed with Prime Minister Narendra Modi when he had called 11 textile industry representatives from all over India at his residence last month to know the plight of the industry in the country.

Source: Fibre2Fashion

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Budget wishlist: Exporters seek clarity on slow tax refunds, key schemes

Exporters also hope the Budget will clear the confusion around the old MEIS, which has been discontinued by the government as well as the uncertainty over the awaited RoDTEP scheme. Exports have said the Budget should look at the issue of slow disbursal of tax refunds and uncertainty over major promotional schemes, blaming these issues along with currency volatility for a slowing growth. In December, merchandise exports contracted for the fifth straight month as processed petroleum shipments saw lower receipts and a broad-based decline continued to plague all other major foreign exchange earning sectors. Shrinking by 1.8 per cent as of December, outbound trade has reduced in six of the first nine months of the fiscal year 2019-20 (FY20). “With ...

Source: Business Standard

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Govt revises target for GST collections again

To augment collections amid growing concerns over missing the budgeted estimates, the government has reset the target for goods and service tax (GST) collections for the second time in two months – to Rs 1.15 lakh crore for February and Rs 1.25 lakh crore for March. The decision to raise the target -- from Rs 1.1 lakh crore in December to at least Rs 1.15 lakh crore for the next two months -- was taken at a high-level meeting of senior officials of the Central Board of Indirect Taxes and Customs (CBIC) and Central Board of Direct Taxes (CBDT), people aware of the matter said. “Field formations have been exhorted to put forward special efforts and to initiate actions against wilful tax evaders or those who are using fake invoices or inflated or fake e-way bills…,” a government official said. “Weekly high-level review of revenue augmentation measures and efforts made or actions taken against these targeted gamers, fraudulent ITC seekers and identified default taxpayers would be done by the revenue secretary,” he added. Tax authorities will use data analytics to check mismatch of supply and purchase invoices, mismatch in return filings, over invoicing, excess refunds availed, patching the tax leakages, fake or huge ITC claims, and refunds under inverted duty structure. Text messages and emails will be sent to defaulters after which GST field formations will visits to ensure timely tax payments.

NEW RETURNS

The GST Network's trial for new returns has witnessed encouraging response. Over 363,855 new returns by taxpayers under GST have been uploaded as of January 12 using the offline tool in the trial phase that began from January 4, as per data available with ET. The GSTN is conducting the trial run for new return filing for taxpayers to iron out any problems they face and take stakeholder feedback, before implementing it in April. Inputs received on the new forms during the trial page will be used to improve the interface GSTN received around 750 inputs from industry.

Source: Economic Times

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Sectoral focus could lift exports by $100 bn-$150 bn in 10 years

In the global chemical trade of $2.3 trillion, India has a share of $50 billion. India can achieve an incremental gain of around $100-150 billion over the next decade if the government focuses on accelerated export growth in sectors such as chemicals, footwear, furniture, and textiles, finds a study. India would do well if it improves on the issues related to sector-specific tax issues, infrastructure and trade relationships to gain dominance on these sectors for the long term. “We estimate India’s exports in chemicals, footwear, furniture and textiles to increase to $200-300 billion over the next 10 years. India could potentially gain around $100-150 billion over the next decade through these sectors if the focus is shifted towards accelerated exports growth,” said a study by Kotak Economic Research. In the global chemical trade of $2.3 trillion, India has a share of $50 billion. According to Kotak, India’s export opportunities in chemicals can be around $110 billion if market share increases by 1.5 times and market grows at 4 per cent CAGR over the next 10 years and $180 billion if market share increases by 2.5 times. The growth of the Indian chemical industry will be driven by private capital and entrepreneurship. The chemical industry derives its advantage from use of technology, IP and a skilled workforce. India has significantly lower wages. India’s market share in global footwear exports of $149 billion has been stagnant over the past 10 years. Despite being the second biggest producer of footwear globally, 90 per cent of production is utilised domestically. India has the second lowest average wages among major footwear exporters. There is an opportunity to reach $8 billion exports over the next 10 years if market share grows to 3 per cent from 1.9 per cent. Furniture contributes 0.5 per cent of Indian exports, despite growing at 11 per cent CAGR over FY2010-19. Kotak envisages that the opening of Ikea in India will help further growth competency in furniture manufacturing. Furniture exports can reach $4 billion if market share grows to 1.2 per cent from 0.8 per cent and $8 billion if the share touches 2.4 per cent. The textile sector accounts for 12 per cent of exports. While exports have grown steadily over the past ten years, Asian countries like Bangladesh, China and Vietnam saw sharp growth. India has to correct the inverted duty structure in import of synthetic goods, make products competitive and sign FTAs with key buyers.

Source: Asian Age

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Budgeting for Young India

Rocked by a falling economy and socio-economic uncertainties, the country’s much-touted demographic dividend is in urgent need of a booster shot from the finance minister. As finance minister Nirmala Sitharaman opens her bahi khata (ledger) on February 1, the one question on everyone’s mind will be: Does it address the social challenges of the economy?

With widespread protests — the epicentres of many falling in university and college campuses — there is all-round worry about young India’s future. Even as people were struggling to come to terms with the many negative reports about the state of the economy, the widespread fear and uncertainty sparked by the controversial Citizenship (Amendment) Act has led to disruptions in daily life across cities and towns. There is a real fear that the country’s much-touted demographic dividend — a significant chunk of its population is in the working-age group (15-64 years), in contrast to many other rapidly ageing countries — might turn into a liability. According to the India Skill Report 2020, employability of India’s youth has stagnated over the past three years, and only about 46 per cent of participants are job-ready. “The state of employability has not improved over the last few years, implying the need for more robust actions,” it states. The SBI’s research report ‘Ecowrap’, released recently, is equally worrying. It says that there can be 16 lakh less payrolls (or jobs) in 2020. Not surprisingly, young India wants Sitharaman’s second Budget to address its concerns by focusing on three areas — education, healthcare and employment generation. “The consistent air of unrest and aura of hyper-nationalism are pushing us towards a slow rate of growth,” says Sneha Panna, a second year Master’s student at the Centre for the Study of Social Systems in Jawaharlal Nehru University (JNU). “The assertion in a recent Forbes article that India has the worst economy in 42 years is no exaggeration,” she says. The problem, as many point out, is the lack of credible data. This, economists explain, makes it difficult for policymakers and others to assess the actual size of the challenge, as there is a huge informal sector which is not accounted for in the data on employment and jobs. “The economy is in the doldrums with a peculiar ‘data crisis’, which has made a concrete diagnosis of the issues facing our economy an almost impossible task,” the 23-year-old student from Jharkhand points out.The young also hope that the government will make education accessible to all by investing robustly in the sector and improving infrastructure from the primary school level to universities. Panna also wants the government to accord the same kind of importance to social sciences as is normally reserved for technical education, stressing that the two together can help pull the country out of poverty. The view is echoed by 22-year-old Akhil KM, a student of the Faculty of Law, Delhi University. “In its election manifesto, the Bharatiya Janata Party promised that 6 per cent of GDP would be spent on education, but only 3.3 per cent was spent during the last financial year. Not only has the budget allocation for the Higher Education Financing Agency (HEFA) declined, HEFA’s actual spending too was below the mark,” says Akhil, who is from Kerala. He adds that funds for Central universities have been reduced, which may have led to the ongoing protests against fee hikes in JNU, and the Delhi University teachers’ agitation against the shortage of teaching staff. Decrying any move to sell public sector companies, Akhil says this will further rob employees of job security. “Even within the media, we can see how several firms have shut down bureaus and halted new appointments,” he says. “For students completing their education, there is very little chance of finding a permanent job or even one suited to their qualification. So, improving public institutions is a necessity,” he argues. Any Budget exercise has two sides — expenditure and revenue. If Sitharaman focuses on the expenditure side, then she must also ensure there are enough ways to create revenue. While the government has had no shortage of policy announcements, its weakest link has been implementation, which Sitharaman will need to address. Gopal Krishna Agarwal, national spokesperson of BJP (Economic Affairs), says that the current focus of the economy is on consumer demand and the Budget will therefore look at ways of increasing consumption. This, in turn, is expected to create jobs. “The Budget has to focus on economic growth with sector-specific provisions. For example, textile, real estate, construction, Micro, Small and Medium Enterprise, and heavy industries can all propel the economy and be key job-creators,” he says. India, he adds, has “global leadership” in the pharmaceutical and information technology sectors, which can help boost the gross domestic production. “Food processing and agriculture can foster rural economy growth, help in increasing revenue to the farmers, and create liquidity for the rural market,” he says. The government has to ensure a level playing field for Industry, and correct the inverted duty structure arising from free trade agreements. “All these put together will also help create an improved business environment and lead to jobs.” Whether Sitharaman manages to successfully juggle these varying demands, her ledger will be closely scrutinised, come B-Day. India’s millennials — who had reacted strongly and adversely to the minister’s comment last year that they, by opting for ride-hailing services, had contributed to the slump in the auto industry — are watching. Very closely.

Source: The Hindu Business Line

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UN revises growth forecast to 5 per cent for India in current fiscal

The United Nations (UN) has revised its forecast for India’s growth in the current fiscal to 5% on Friday, down from 5.7% it had mentioned in its World Economic Situation and Prospects (WESP) 2020 report released on Thursday. Its estimate for FY21 was also further downgraded to 5.8%-5.9% from 6.6% in the report, said Nagesh Kumar, head of the UN economic and social commission for Asia and the Pacific, while presenting the report in Delhi. Since the report was finalised in October it did not take into account the second quarter results and hence the outlook has been revised, Kumar said. This comes as a further downgrade from last year’s WESP 2019 report which had pegged India’s gross domestic product (GDP) growth at 7.6% in FY20 and 7.4% for the next fiscal. According to the report, one in five countries will see its per capita income stagnate or decline this year, however, India will see its per capita income rise at above the 4% level in 2020. The annual report has forecast global growth to improve to 2.5% from 2.3% last year if downside risks such as trade war and geopolitical tensions do not flare up. For the South Asia region, the report estimates growth to pick up to 5.1% in 2020 after a decade-low 3.3% last year. Although India is the main economy in the region with a 70% weightage in the UN’s calculations, Bangladesh looks to be pulling the average up since its economy is the fastest growing in the region at 8.1% this fiscal, as per the report. In terms of policy recommendations for a slowing global economy, the report calls for an end to the reliance on monetary policy and advocated for more fiscal measures. According to Kumar, the focus on monetary policy easing is enabling excess liquidity to flow into stock markets rather than productive sectors of economies. This creates an unhealthy situation in which stock markets are bullish while economies are slowing down. “At this moment, the single biggest priority for the finance minister should be to revive growth. We must use all the available fiscal space to boost growth. Although fiscal consolidation is important, it can be a medium-term focus,” he said about India.

Source: Economic Times

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India needs continued structural reforms to boost growth: UN report

A UN report on Friday said continued structural reforms are necessary to boost growth in India, which is currently facing an economic slowdown. The World Economic Situation and Prospects 2020 (WESP) report has also lowered GDP growth estimate for India while expressing hope that combination of fiscal stimulus and financial sector reforms will help boost consumption. "After experiencing a sharp economic slowdown from 6.8 per cent in 2018 to 5.7 per cent in 2019, India has committed to an ambitious fiscal expansion to complement the country's already loose monetary policy. "The combination of fiscal stimulus and financial sector reforms, boosting investment and consumption, is expected to support a recovery in growth to 6.6 per cent, but it will take continued structural reforms to bring India's growth back to its previous levels," it said. However, the data related to India was revised to 5 per cent for the current fiscal and 5.8-5.9 per cent for the next financial year, Nagesh Kumar, Head, UN Economic and Social Commission for Asia and the Pacific, said. While presenting the report, he said the GDP forecast in WESP did not take into account the latest growth numbers released by India's National Statistical Office (NSO). The report, he said was computed in October 2019 and NSO's advanced growth estimates were released in January 2020 suggesting country's growth would slip to 5 per cent during 2019-20 fiscal. Kumar further said India's macro economic fundamentals are strong as ever and recovery in growth is expected in the next fiscal. According to the UN study, one in five countries will see per capita income stagnate or decline this year, but listed India among few countries where the per capita GDP growth rate could exceed 4 per cent level in 2020. A prolonged weakness in global economic activity may cause significant setbacks for sustainable development, including the goals to eradicate poverty and create decent jobs for all. At the same time, pervasive inequalities and the deepening climate crisis are fuelling growing discontent in many parts of the world. In the European Union, manufacturing will continue to be held back by global uncertainty, but this will be partially offset by steady growth in private consumption, allowing a modest rise in GDP growth from 1.4 per cent in 2019 to 1.6 per cent in 2020. Despite significant headwinds, East Asia remains the world's fastest growing region and the largest contributor to global growth, as per the report. In China, GDP growth is projected to moderate gradually from 6.1 per cent in 2019 to 6.0 per cent in 2020 and 5.9 per cent in 2021, supported by more accommodative monetary and fiscal policies. "Growth in other large emerging countries, including Brazil, India, Mexico, the Russian Federation and Turkey, is expected to gain some momentum in 2020," the UN report said. As the global economic balance is shifting from the EU, the US and other developed countries towards China, India and other developing countries, global economic decision-making power is shifting as well, it noted. "Global cooperation mechanisms will need to recognise this shifting balance while continuing to allow the under represented to be heard," it added. The UN report also said that eradicating poverty will increasingly rely on tackling inequality going forward.

Source: Economic Times

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Rupee drops 15 paise to 71.08 against US dollar

The Indian rupee furthered its losses for the second day, dropping 15 paise to close at 71.08 against the US dollar on Friday amid strengthening of the American currency overseas and rising crude prices. At the interbank foreign exchange market, the rupee opened lower at 70.98 to the US dollar and lost further momentum to touch a low of 71.10. It finally settled the day at 71.08, showing a fall of 15 paise over its previous close. During the week, the domestic unit lost 14 paise. Global crude benchmark Brent was trading 0.51 per cent higher at USD 65 per barrel. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.17 per cent to 97.48. The 10-year Indian government bond yield was at 6.63 per cent. “The greenback rose after data showed retail sales in the US picked in December. From the US, market participants will be keeping an eye on industrial production and housing numbers and better-than-expected number could extend gains for the dollar,” said Gaurang Somaiyaa, Forex and Bullion Analyst, Motilal Oswal Financial Services. Forex traders said the rupee was trading lower despite the US-China signing the phase-1 trade deal, as huge uncertainty still remains, which might make it difficult for China and the US to reach a comprehensive trade deal. The United States on Wednesday signed the first phase of a trade deal with China, which President Donald Trump described as historic, concluding more than a year of tough negotiations between the two largest economies of the world. Foreign institutional investors bought equities worth 264.26 crore on a net basis on Friday, according to provisional exchange data. On the domestic stock market front, the BSE Sensex was up 12.81 points or 0.03 per cent at 41,945.37. The broader Nifty, however, settled 3.15 points or 0.025 per cent lower at 12,352.35.

Source: Financial Express

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Pak sees exports growth of $3.2 bn if 5% of CPFTA realised

Pakistan is hopeful of exports growth worth $3.2 billion in case just 5 per cent of the free market access offered by China to 313 high-priority tariff lines of Pakistan is realised under the second phase of the China-Pakistan Free Trade Agreement (CPFTA-II) that went into force on January 1, according to the former’s ministry of commerce. M Hamid Ali, joint secretary, foreign trade-1, in the ministry recently told a seminar that CPFTA-II has greatly secured Pakistan's export interest as around 83 per cent of the country's global exports have been liberalised in the agreement’s second phase as against 41 per cent under phase-I. Similarly, 91 per cent of Pakistan's exports to China have been liberalised in phase-II as against 30 per cent liberalised in phase-I. This liberalisation covers 88.3 per cent of China's global imports or $1.6 trillion, according to Pakistani media reports. The sensitive list has been enhanced from 1,410 in CPFTA-I to 1,760 in CPFTA-II after thorough consultation with stakeholders. Provisions have been introduced to address the balance of payment (BoP) difficulties, Ali said. Effective enforcement of electronic data exchange will also ensure sharing of the real time trade data to discourage under invoicing and misreporting. Safeguard measures have been introduced to temporarily restrict imports of products that harm the domestic industry.

Source: Fibre2Fashion

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Trade war impact: China's economy slumps to 6.1% in 2019; lowest in 29 yrs

In 2018, China's economy sank to a 28-year low slowing down to 6.6 per cent year on year. China's GDP grew by 6.1 per cent last year, the lowest in 29 years, the government said on Friday, as weak domestic demand and the bruising 18-month trade war with the US took their toll on the world's second-largest economy. The new data released by the National Bureau of Statistics (NBS) comes a day after China and the US signed a long-awaited phase one deal, marking a ceasefire in the 18-month-long trade war which saw the world's two largest economies slap 25 per cent tariffs on about half a trillion-dollar worth of each other's exports. The world's second-largest economy grew by 6.1 per cent last year, its worst performance since 1990, but it remained above the psychologically important six per cent mark. The GDP growth remained well within the 6 to 6.5 target set by the government, the NBS said. However, significant from the Chinese government's perspective, the GDP expanded to USD 14.38 trillion from last year's USD 13.1 trillion. In 2018, China's economy sank to a 28-year low slowing down to 6.6 per cent year on year, lower than the 6.8-per cent growth registered in 2017 as it grappled with the continued slowdown amid the trade war with US and declining exports. There is a sense of relief among the officials here as the official growth rate remained above the psychologically important 6 per cent as mandated by Chinese President Xi Jinping who in the past directed that GDP should not go down below six per cent, which could cause serious disruption to the world's second largest economy. Chinese economy was hit hard by the US tariffs as a result of the trade war between the two countries. After signing the phase one deal on Wednesday, US President Donald Trump said 25 per cent tariff hike on USD 360 billion worth of Chinese products would continue until the phase-2 deal is worked out. "The phase one deal is only an interim agreement between China and the US. In fact, to push for negotiation in the next stage, the US will keep existing tariffs on imports from China unless the two countries manage to reach a phase two deal," said Alicia Garcia Herrero, chief Asia Pacific economist at Natixis. "In the bilateral evaluation and dispute resolution chapter, the agreement also makes it clear that, if the concerns cannot be resolved, the two parties hold the right to suspend an obligation, adopt a remedial measure, or in the worst case, withdraw from the agreement," he told the South China Morning Post. Despite falling to a new low since 1990, when political turmoil drove economic growth down to 3.9 per cent, the 6.1 per cent rate met the target range of between 6.0 per cent and 6.5 per cent set by the central government at the beginning of last year, but was below the market expectation of 6.2 per cent. The headline figure was in line with forecasts of the International Monetary Fund and the World Bank for China's economic growth this year, the Post report said. Chinese officials say the consumer spending has increased showing success of China's efforts to rejig its economy from one based on exports to more reliant on consumer spending. According to the NBS data, China's per capita disposable income stood at 30,733 yuan (USD 4,461.95) in 2019, up 5.8 per cent year on year in real terms. Chinese per capita consumer spending increased by 5.5 per cent year on year in real terms to reach 21,559 yuan in 2019, the data said. By 2020, China aims to double the per capita income of its urban and rural residents from 2010 levels. China's value-added industrial output, an important economic indicator, expanded 5.7 per cent year on year in 2019, slowing from 6.2 per cent growth in 2018. The growth rate was higher than that in the first 11 months of 2019, the data said. In December alone, China's industrial output expanded 6.9 per cent year on year, up 0.7 percentage points from November, state-run Xinhua news agency quoted the data as saying. China's fixed-asset investment (FAI) increased 5.4 per cent year on year in 2019, 0.2 percentage points higher than the level recorded in the first 11 months.

Source: Business Standard

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Ghanaian garments and textile producers urged to take advantage of Brexit

Ghana’s High Commissioner to the UK, Papa Owusu-Ankomah has urged Ghanaian garment and textile manufacturers to take advantage of the numerous opportunities that exist in the UK and European markets, following UK’s decision to leave the European Union. “Brexit has opened up new markets, and it is my hope that you use the opportunity to manufacture more in order to create wealth and generate employment in Ghana,” Mr Owusu-Ankomah advised. The High Commissioner made these revelations at an event hosted by the Ghana High Commission to introduce Ghanaian garment manufacturers to potential buyers in the United Kingdom and Europe. It was organised by Ethical Apparel Africa, a UK-based garment sourcing and development organisation in collaboration with Ghana’s Ministry of Trade and Industry through their UK office and supported by the UK Department for International Development (DFID). Papa Owusu-Ankomah further urged the Ghanaian manufacturers to find out what the expectations of the market are in order to live up to them. Mr Patrick Nimo, Chief Director of Ghana’s Ministry of Trade and Industry urged participants to make the most of Ghana’s position as the Headquarters of the Africa Continental Trade Area and to use Ghana as a base to access the bigger African market. Keren Pybus, founder, and CEO of Apparel Africa disclose that she chose Ghana as her base because of the stable political and economic environment, as well as a youthful and hardworking industrial population. She, therefore, called on the major international brands in the UK and Europe to consider Ghana as their manufacturing base. Others present at the event included Mr Kofi Addo, Head of Strategic Anchor Industries and Special Initiatives at the Ministry of Trade, Paakow Bartels, Head of Trade and Investment at the Ghana High Commission, Mr Dodzie Numekevor, Head of Public Affairs and Information, Mr Peter McAllister of the Ethical Trading Initiative and Naana Frempong Arhin from the DFID. Some of the Manufacturers who exhibited their products included Adjo Asare of Alfie Designs, Mrs Linda Ampah of KAD Designs and Maa Grace Designs.

Source: Myjoyonline

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US job openings post biggest drop in more than four years in November

Economists said the decline in vacancies and moderate hiring were potentially signaling that employers were throttling back demand for workers. US job openings recorded their biggest drop in more than four years in November, while hiring increased moderately, suggesting a loss of momentum in the labor market at the tail end of 2019. Job openings, a measure of labor demand, tumbled 561,000 to 6.80 million, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS, on Friday. That was the biggest drop since August 2015 and pushed job openings to their lowest level since March 2018. Economists said the decline in vacancies and moderate hiring were potentially signaling that employers were throttling back demand for workers. Still, job openings remain relatively high. “The labor market may be starting to lose its shine and may have peaked,” said Chris Rupkey, chief economist at MUFG in New York. “Anyone holding out for their dream job may have already missed the boat.” Vacancies have been trending lower this year since hitting an all-time high of 7.63 million in late 2018. The decline in job openings in November was led by the private sector, which saw a decrease of 520,000 unfilled jobs. The drop in vacancies was concentrated in the retail and construction industries. Government job openings fell 42,000 in November. The job openings rate decreased to 4.3 per cent in November from 4.6 per cent in October. Hiring increased to 5.82 million in November from 5.78 million in October. The hiring rate was unchanged at 3.8 per cent in November. The sharp drop in job openings suggests job growth will likely not accelerate much after slowing in December. The government reported last week that nonfarm payrolls rose by 145,000 jobs in December, down from November’s robust increase of 256,000. “We expect the labor market to moderate further in 2020,” said Sophia Koropeckyj, as senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Although net job gains will fall below 100,000 during the year, we no longer expect net job losses during the second half of the year.” The number of workers voluntarily quitting their jobs was little changed at 3.5 million in November. The quits rate was 2.3 per cent for the third straight month. The quits rate is viewed by policymakers and economists as a measure of job market confidence. About 118,000 workers quit their jobs in the retail sector in November. There were also increases in quits in the wholesale trade and nondurable goods manufacturing industries. Layoffs dropped to 1.75 million in November from 1.80 million in October. Layoffs decreased in the federal government. The layoffs rate dipped to 1.1 per cent from 1.2 per cent in October.

Source: Reuters/ Business Standard

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European Parliament Backs Green Deal

The European Parliament has voted to support the Green Deal for Europe, backing proposals which include a circular economy action plan, an EU-wide model for separate collection of waste and rules on mandatory recycled content. After the European Green Deal was first put forward by Commission President Ursula von der Leyen in December, MEPs have now agreed to adopt the Deal under the condition that amendments are made. Policies to tackle the climate crisis are at the heart of the Deal, which commits the EU to achieving carbon neutrality by 2050, with a European Climate Law to be presented by March 2020. MEPs have called for the Climate Law to include higher ambitions, suggesting that the law sets a 2030 goal of a 55 per cent reduction in emissions compared to 1990. A Just Transition Fund has also been proposed to support the end of fossil fuel dependence. With regards to the resources and waste industry, the Green Deal highlights the need for the mobilisation of industry, with a circular economy action plan proposed to support the circular design of products, prioritising reducing and reusing products before recycling them, and focusing particularly on resource-intensive sectors such as textiles, construction, electronics and plastics. Increasing the amount of recycled content used in EU industry is also central to the Green Deal – the Commission notes that only only 12 per cent of input materials used across the EU are recycled. The EU has already set ambitious recycling targets in its Circular Economy Package of 2018, which sets a municipal recycling rate target of 60 per cent 2030. The Green Deal will also bring in legislation to ensure that all packaging in the EU market is reusable or recyclable in an economically viable manner by 2030 at the latest, whilst also taking action on both primary and secondary microplastics and developing a regulatory framework for biodegradable and bio-based plastics. MEPs have now urged the Commission to propose targets for separate collection, waste reduction, reuse and recycling, and the implementation of extended producer responsibility (EPR) regimes for certain waste streams. The Commission has also been asked to further step up EU measures against plastic pollution, with MEPs calling for wider restrictions on single-use plastic items. 'A timely declaration of ambition' Pascal Canfin, Chair of the Environment Committee, said: “Parliament overwhelmingly supported the Commission’s proposal on the Green Deal and welcomes the fact that there will be consistency between all European Union policies and the objectives of the Green Deal. Agriculture, trade and economic governance and other policy areas must now be seen and analysed in the context of the Green Deal.” Joan Marc Simon, Executive Director of Zero Waste Europe, commented: “Zero Waste Europe welcomes the new European Green Deal, it is a timely declaration of ambition. We note that it will require revisiting most EU policies produced to date, some of them having to be completely reversed. “With current EU governance structures it will be difficult to deliver unless proper reforms are put in place to allow for the right legal and economic incentives to be established. We warn that given the scale and speed of the changes proposed it will also demand changing how EU policy-making works today. This is an enormous challenge that will put us all to a test. Zero Waste Europe will engage in the process, bringing our expertise, network and resources to make the European Green Deal work for a Zero Waste Europe.” Whilst the Deal has been widely welcomed, some have called for even greater ambition. Nigel Harvey, CEO of Recolight, explained: "The EU’s green deal certainly has a broad scope, encompassing a wide range of policy measures. For the waste and resources sector, it is pleasing that they note that only 12 per cent of the materials used by EU industry come from recycling. That implies we may see some real 'pull' measures to require greater use of raw materials from recycled sources. Some of the measures in the resources sector are largely a restatement of the circular economy package, and so we can expect to be familiar with the detailed actions. The four priority product areas (textiles, construction, WEEE, and plastics) all make sense. "Their proposal to at least double the current rates of renovation of buildings should drive faster adoption of new energy saving technologies (such as LED lighting), so displacing product that becomes waste. "Overall though, there is not enough ambition. Whilst it is encouraging to see the Commission proposing to be climate neutral by 2050, that may be too late to prevent, in David Attenborough’s words 'irreversible damage to the natural world and the collapse of our societies'."

FEAD’s position paper

The European Federation of Waste Management (FEAD) has welcomed the European Green Deal, publishing a position paper explaining the role that private waste management companies play in enabling the circular economy by investing in recycling infrastructure and technologies. FEAD’s position paper highlights that the EU could become climate neutral by 2050 by ‘having a wider consideration in the reduction of CO2 in the entire economic chain’ rather than segment emissions produced at each step in the waste management chain. The position paper also calls for a move away from landfill, describing energy recovery from waste as an ‘ally to more recycling’, whilst also warning of the carbon impacts of relocating waste management activities outside the EU.

Extended producer responsibility

Calls for an EPR regime for certain resource-intensive products, which would see producers take financial responsibility for the treatment and disposal of their products, have come from both MEPs – who have urged the EU Commission to push through with such a policy – as well as the waste and resources industry. A recent proposal from Environmental Action Germany (DUH), Zero Waste Europe (ZWE), Zero Waste France, Changing Markets, the Health and Environment Alliance (HEAL) and the United Kingdom Without Incineration Network (UKWIN) has called for mandatory EPR schemes at EU level to boost the circularity of the carpet industry, which produces an estimated 1.6 million tonnes of waste annually – the majority of which ends up in landfill or incineration. ZWE has previously urged the European Commission and EU member states to drive the carpet industry’s circular economy, arguing that an EPR system for carpets would help increase the currently low recycling rate. Elena Schägg, DUH’s expert on the circular economy, explained: “72 per cent of a public consultation carried out by the Commission believe that the EU legal framework to cover the waste handling of textiles is insufficiently developed. “At the same time, technical solutions for circular carpets, like mono- or easy separable duo-layer carpets without harmful substances are already on the market today. But the carpet industry obviously wants to continue with its non-ecological and linear disposal strategy as long as possible for the purpose of maximising profits and maintaining outdated structures. We ask the EU Commission to act now and put in place mandatory rules for the carpet sector.”

Source: Resource Magazine

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