Prime Minister Narendra Modi on Thursday told Parliament that the current architecture of goods and services tax (GST), including greater weighting to manufacturing states, was his brainchild, which he had suggested as chief minister of Gujarat to then finance minister Pranab Mukherjee, but eventually Arun Jaitley, the finance minister during his government’s previous term, included it into the law. Replying to the discussion on the motion of thanks to the President’s address, the PM sought to defend the numerous amendments to GST, and said any reform of such magnitude should have space for a corrective mechanism. He said even the Constitution had been amended several times. On the National Population Register (NPR), the PM defended the extended questionnaire. Contrary to recent statements by other ministers on the issue that the extended NPR questionnaire was voluntary, Modi said “small changes” were part of any normal administrative exercise of a government. The PM said data was needed, including on the contentious question on place of birth of the father of a respondent, to track increased migration and determine the respondent’s mother tongue. Congress leader Jairam Ramesh said the PM was “misleading the House”. Later, Ramesh said the “cat was now out of the bag” with the PM himself indicating that none of the new NPR questions was “voluntary”. The PM underlined the need for working together to make India a $5 trillion economy. He said the government had been able to maintain macroeconomic stability amid tough global environment. He also exhorted all members to give suggestions on ways to take advantage of opportunities thrown up by the current global economic situation. In the Rajya Sabha, the Congress and most other opposition parties walked out to protest the PM using an “unparliamentary word” against them. Speaking in Hindi, the PM said the Opposition was indulging in falsehoods on the NPR issue. He said it was unconstitutional for state governments to pass resolutions against the Citizenship Amendment Act (CAA) and the NPR. While ignoring the Opposition’s initial protests, Chairman M Venkaiah Naidu said at the end of the PM’s speech that no unparliamentary word would go on the House’s records. Leader of Opposition Ghulam Nabi Azad said the PM was resorting to falsehoods to malign the Opposition on the CAA issue. He said no Opposition party was against Hindus from Pakistan, Afghanistan and Bangladesh being given citizenship of India. Congress MP Kumari Selja protested against the PM using a casteist slur in the context of the Opposition and the CAA. With voting for the Delhi Assembly polls on Saturday, the PM spoke of his government legalising the national capital’s unauthorised colonies and construct its infrastructure. On economy, the PM sought the opposition’s suggestions on how best India can take advantage of the global economic situation.
Source: Business Standard
The growth of India’s gross domestic product (GDP) has declined largely due to low growth in manufacturing and construction, government has informed Parliament. “The growth of GDP has declined largely due to low growth in manufacturing and construction sector,” minister of state (independent charge) for statistics and programme implementation Rao Inderjit Singh said in a written reply to a question in Lok Sabha. The National Statistics Office has forecast India’s GDP growth to slip to an 11-year low of 5% in FY20. Manufacturing growth in 2019-20 is seen at 2% year on year, which is a 15- year low, as against 6.9% growth in FY19. Construction growth is seen slipping to a sixyear low of 3.2% in FY20 from 8.7% in the last fiscal. Citing the examples of introduction of Insolvency and Bankruptcy Code (IBC) in 2016, Goods and Services Tax for improving ease of doing business and Make-in-India to increase indigenous capacity, Singh said that the government has been undertaking various measures to boost GDP growth. Survey non-acceptance In a separate reply to a question on the government not accepting the findings of various surveys, he said in case of Enterprise Survey on Services Sector (July, 2016 – June, 2017)), it was observed that there were issues in the survey methodology which would not have led to meaningful results and thus only a technical report was brought out. In case of Household Consumer Expenditure Survey, as part of NSS 75th round (July 2017-June 2018), the minister said the results were examined and it was observed that there was a significant variation in the levels in the consumption pattern and the direction of the change while comparing with other administrative data sources and its inability to effectively capture the levels of subsidy of goods and services consumed. “Thus the survey results could not have been used for the base revision for the macro-economic indicators like Gross Domestic Product (GDP), Index of Industrial Production (IIP), Consumer Price Index (CPI) and Wholesale Price Index (WPI) and would have led to inaccuracies in the estimates and thus, the report was not released,” Singh said. As per the minister, in case of Periodic Labour Force Survey 2017-18, it was observed that the sampling design had changed and led to incomparability with earlier surveys on Employment and Unemployment and this was included in the report released which is also available in the public domain. His reply assumes significance in the wake of the credibility of India’s official data coming under strain following the leak of the draft Household Consumer Expenditure report, which showed a decline in spending in rural India in FY18 and was later shelved. Last year, the government had withheld the Periodic Labour Force Survey report that showed unemployment sharply rising to a high of 6.1% in FY18 compared with 2.2% in FY12 following which NITI Aayog stepped in for a cover-up. Issues were also raised about GDP data based on the new series with economists citing quality issues.
Source: Economic Times
The commerce department will examine procedures that are part of India’s existing free trade agreements (FTAs) in the wake of compliance with rules of origin being tightened. The Finance Bill has proposed an omnibus process but individual pacts need to be studied to check how the proposed Customs Act amendment can take effect, officials said. A new chapter in the Customs Act on administration of rules of origin under trade agreements gives the government the power to suspend or refuse preferential tariff treatment in case of incomplete information or verification and non-compliance, respectively. A number of these provisions had only been detailed via notifications. The rules of origin are criteria to determine the source country of a product, based on which they either get tariff concessions or are subjected to duties. The move is aimed at preventing abuse of the FTA route using documents purporting to show that the goods came from a country with which India has a trade pact and taking advantage of lower tariffs. “The budget has prescribed an omnibus procedure and we will examine every free trade agreement for their procedures on claiming preferential tariff benefits,” said an official aware of the development. The Act also empowers Indian customs authorities to question the valuation of imports under FTAs for up to five years with the government proposing a significant shift in the domestic framework of rules of origin to tackle large scale imports. India’s current rules allow importers claiming FTA tariffs and certifying offices to retain documents supporting origin certificates for at least five years.
Source: Economic Times
The Asean secretariat had last month invited New Delhi to the Bali meeting, scheduled for February 3 and 4. Dashing hopes for an early return to the negotiating table for the China-dominated Regional Comprehensive Economic Partnership (RCEP), India has skipped a meeting in Bali where its concerns on the mega regional trade deal were to be discussed, according to sources. The Asean secretariat had last month invited New Delhi to the Bali meeting, scheduled for February 3 and 4. India’s decision comes in the wake of China showing no sign of flexibility in its negotiating positions, not even through bilateral communications. A senior Indian official told FE: “There is no point going to talks and investing resources when you know nothing substantial will come out of it. India’s main concerns were about potential dumping by China, and its proposals on critical issues, including safeguard measures and tough rules of origin, were not accepted. The ball is in China’s court now. Unless Beijing shows flexibility, the talks can’t move further meaningfully.” Apart from India, the RCEP talks have involved 10-member Asean and five other countries — China, Japan, South Korea, Australia and New Zealand. Much of the RCEP communications take place through the Asean secretariat. India pulled out of the RCEP talks in Bangkok on November 4 last year and made its return incumbent on adequate redressal of its concerns. Commerce and industry minister Piyush Goyal had then said New Delhi was unwilling to budge on its demands for an “auto-trigger” mechanism for safeguarding its industry from dumping and strict rules of origins of imported products to check the abuse of tariff concessions, despite pressure from potential partners. Also, it was steadfast in certain demands, including credible steps and market access to address India’s $105-billion trade deficit with RCEP members, change in the base year to implement the tariff abolition from 2014 to 2019 and a more balanced deal on services. Although the 15 other nations went ahead with the RCEP pact in November 2019, some of them were keen to address India’s concerns. However, China’s willingness to consider its demands has fallen far short of New Delhi’s expectations. Most members wanted to conclude the negotiations in 2019 so that a formal RCEP deal could be formally signed in 2020. Interestingly, at the Raisina Dialogue last month, external affairs minister S Jaishankar said India hadn’t shut its doors on RCEP: “Where RCEP is concerned, we have to look at cost and benefit. We will evaluate RCEP on its economic and trade merit. We have not closed our mind to it.” However, some of India’s demands, such as the one for tough rules of origin, could be too hard for countries like China to accede to. Upon India’s insistence on the 35% value addition clause in the RCEP agreement, other partners, mainly China, wanted to limit the list of tariff lines with such a level of value addition to just 100. “India rejected such a short list,” a source had earlier said. New Delhi feels without strict rules of origin, its different tariff concessions for different countries (the offers are least ambitious for Beijing) and safeguard/anti-dumping tools against any irrational spike in imports will be rendered meaningless. Even the Budget for 2020-21 last week reiterated India’s intention to tighten such rules. To protect its industry, India had decided to trim or remove tariffs on Chinese goods only in phases over a period of 20-25 years. Similarly, its tariff concessions were to be the least ambitious for China — it offered to reduce or abolish import duties on a total of 80% of imports from China, against 86% from New Zealand and Australia, and 90% from Asean, Japan and South Korea. Even without RCEP, India’s merchandise trade deficit with China stood at $53.6 billion in FY19, or nearly a third of its total deficit, even without factoring in the deficit with Beijing-proxy Hong Kong. Its deficit with potential RCEP members (including China) was as much as $105 billion in FY19.
Source: Financial Express
The one-time restructuring can now be done without a downgrade in asset classification to standard accounts of GST-registered MSMEs in default as on January 1, 2020. RBI on Thursday extended the restructuring window for MSME loan accounts till December 31, 2020, which was supposed to expire in March 2020. The one-time restructuring can now be done without a downgrade in asset classification to standard accounts of GST-registered MSMEs in default as on January 1, 2020. “The restructuring under the scheme has to be implemented latest by December 31, 2020,” the central bank said in its ‘Statement on Developmental and Regulatory Policies’ accompanying the monetary policy, adding that detailed guidelines would be released shortly. This is a relief to banks as the latest available data released by the lenders shows that at least 19 banks have restructured advances to MSMEs worth Rs 16,746.83 crore in 4.55 lakh accounts. CARE Ratings senior director Sanjay Kumar Agarwal said the restructuring window offered to the MSMEs is akin to that provided to the textile industry several years ago, after which the companies were able to deliver. “The NPA figures will not deteriorate, as FY22 is when the results will show up. It all depends on how the economy will perform in that period. We expect some relief in the gross NPA from the existing 5.5-6% for the segment as of now,” he said. Finance minister Nirmala Sitharaman, in her Budget speech, had said the government had asked RBI to extend the restructuring window until March 31, 2021. The UK Sinha expert committee report on MSMEs, released in July 2019, said bankers were hesitant to restructure the MSME accounts, even though there is no need to make immediate provisions. Apprehension arising from internal staff accountability exercise triggered by the classification of any account as NPA and a concomitant fear of investigative agencies, and the fact that there is no visibility of future viability of MSME accounts had led to the hesitation. The report had recommended to upgrade MSME accounts to standard after six months of satisfactory operations, instead of one year at present. To ensure better rate transmission, the central bank also linked all new floating rate loans by banks to medium enterprises to external benchmarks including the policy repo rate, or any benchmark interest rate produced by Financial Benchmarks India, including treasury bill rates effective April 1, 2020. Previously, all fresh floating rate personal or retail loans and floating rate loans to micro and small enterprises (MSEs) extended by banks were linked to external benchmarks effective October 1, 2019.
Source: Financial Express
While the repo rate remained at 5.15 per cent and the stance "accommodative", the central bank said there would be rate cuts as and when opportunity came. The Reserve Bank of India (RBI), in its sixth bi-monthly monetary policy of 2019-20 on Thursday, kept its policy rates and stance unchanged but adopted unconventional measures to lower banks’ cost of funds so that they could reduce their lending rates further and boost retail advances to revive consumption demand. The six-member monetary policy committee (MPC) voted unanimously to keep the rates unchanged because the inflation outlook remained “highly uncertain.” While the repo rate remained at 5.15 per cent and the stance “accommodative”, the central bank said there would be rate cuts as and when opportunity came. Right now, with inflation being 7.4 per cent, the rate cut scope was not there. “Definitely. We have the policy space, but it will depend on the evolving situation and as the MPC was proactive in 2019, it will be very, very proactive even in 2020,” RBI Governor Shaktikanta Das said during his post-policy press conference. In his opening remarks, the governor cautioned that while the status quo policy was expected, the RBI’s ability to steer growth should not be doubted. “While this decision may be on expected lines and perhaps widely discounted, it is important not to discount the RBI! It has to be kept in mind that the central bank has several instruments at its command that it can deploy to address the challenges that the Indian economy currently faces in terms of sluggishness in the growth momentum,” Das said. “Consequently, even though the present monetary policy decision is constrained by elevated inflation pressures, there are other ways in which the RBI can strive to revive growth.” Accordingly, the RBI introduced novel concepts, which analysts hailed as noteworthy experimentations. “The policy is extremely dovish. Without doing a rate cut, the RBI has achieved more than that,” said Ananth Narayan, associate professor at S P Jain Institute of Management and Research.
Source: Business Standard
Tariff protection without a trade policy driven by reduction cost of doing business in India has the danger of making us less, not more, competitive. The FY21 Budget announced tariff increases on a range of household products and appliances as part of a trade policy to restrict ‘unnecessary’ imports. Many of these imports are from China, India’s widening trade deficit with which has caused the government concern. The rationale given is to protect local manufacturers, and give a boost to Make in India. This comes soon after the cutting of corporate tax rates to make them globally competitive, especially with ASEAN countries like Vietnam, with which India is competing for investments. Despite a range of policy initiatives, the manufacturing share of India’s GDP remains stubbornly ‘stuck’ at around 15%. While India is not alone in imposing higher trade barriers post the 2008 financial crisis, it is one of the most aggressive users of anti-trade notifications. WTO estimates that India’s average MFN tariff is the highest among major economies. I don’t contend that India should refrain from using these measures to protect its interests. Data supports the government view that our regional trade FTAs didn’t have a positive outcome for local industry. While overall volume of trade increased, imports increased faster. But, my fear is that by going back to a more protectionist stance, we may be in danger of shooting the messenger instead of addressing the lack of global competitiveness of many parts of India’s manufacturing sector. The worst-case outcome will be if we become comfortable again with the high tariff protection regime and discredited policy of import substitution of the 1960s to 1980s, which had made India a low-innovation, high-cost manufacturing economy.
Source: Financial Express
Chinese buyers generally begin their annual sourcing from Indian exporters in January every year. Indian exporters/importers of readymade garment, cotton yarn, fibres and fabric are likely to be impacted due to the outbreak of coronavirus. With toll crossing over 550 across the globe and victims mostly in China, any further prolong of the outbreak will take a toll on thousands of crores of business transactions being done annually between buyers and sellers in the textile sector of the two countries. Chinese buyers generally begin their annual sourcing from Indian exporters in January every year. However, this time due to coronavirus, buyers from China have not come forward so far for any trade transaction. China has curtailed movement of people in some parts of the country on a temporary basis. It remains to be seen how things will turn out, going forward. “Any prolonging of this dreadful disease will cast an impact on our cotton yarn export business,” said an official of Southern India Mills’ Association (Sima), a leading mills association in India. Similarly, Indian exporters also export viscose, polyester yarn and fibre to some extent to China, he said. A spokesperson of Tirupur Exporters’ Association (TEA) while expressing concern over the outbreak said: “Nationally, exporters of readymade garments import over Rs 1,000 crore worth accessories such as buttons, metal buttons, zips, hangers and needles, among other items, from China as they are nearly 40% cheaper than India and other countries. Though the exporters don’t see any immediate impact but if the outbreak continues for some time, they need to look at an alternate sourcing of these accessories, which in turn may increase the finished goods cost by 3% to 5%.”A spokesperson of Texprocil, the apex body for exports, said: “At this point of time, it is a bit of concern for us. The coronavirus is an unexpected disruption to the Indian cotton yarn and fabric exporters. On an average, India exports 90 million kg of yarn a month and China alone imports 30% from India a month. At an average price of $3.5 a kg (around Rs 220 a kg), one can count what would be the impact if coronavirus (outbreak) prolongs further.” The TEA spokesperson further said the European buyers, who normally begin negotiating with the garment exporters of India, Bangladesh and Indonesia for their annual requirements in January at Hong Kong, had cancelled their visit at the trading hub of Asia due to coronavirus as Hong Kong, too, had been affected by the deadly disease. The exporters have been asked to trade through videoconferencing, which many exporters in India find it difficult to bargain for a better price of their products.” According to the Sima spokesperson, with China further extending its holiday for a week or 10 days, they expect the trade negogiations between China traders and Indian exporters to get further delayed. “With the impact of coronavirus, the Chinese buyers may go for renegotiation on prices, which may again impact our business.” “Though it is bit of grave concern at this point of time, but we expect normalcy will come to China as early as possible and the exports will begin as usual over the years as we see demand pick up and China will continue to be the largest market for us,” the Texprocil spokesperson added.
Source: Financial Express
Many loom owners now visit Prasad’s factory to observe the pick-and-pick power loom machine and Jacquard technology. In a first-of-its-kind initiative in the State, a young power loom weaver from Sircilla is busy making good quality sarees using the pick-and-pick method of designing. Veldi Hari Prasad, 30, uses the method to make intricate designs on Batukamma sarees. He also uses Jacquard technology, where a collection of conductive threads are used for weaving touch-responsive textiles like clothing, table cloths, rugs, or anything else made of fabric. Prasad used to practice on small handloom machines to make designs on clothes. A Bengaluru-based company, Devine Textile, recognised Prasad’s talent and provided him with a pick-and-pick power loom at an affordable price. He even went to Bengaluru to learn the method. Many loom owners now visit Prasad’s factory to observe the pick-and-pick power loom machine and Jacquard technology.
Source: New Indian Express
Raising concerns over the spread of deadly coronavirus, RBI Governor Shaktikanta Das on Thursday suggested that a contingency plan should be prepared to deal with the impact of the virus on the economy. Meanwhile, the RBI in a statement said the outbreak of coronavirus in China and its spread across geographies will impact tourist arrivals and global trade, and has triggered sell off in equity as well as crude oil markets. The sixth bi-monthly monetary policy statement 2019-20 noted that global financial markets remained resilient in December 2019 and most part of January 2020 as thawing US-China trade relations and improved prospects of an orderly Brexit buoyed investor sentiment. "Equity markets rallied across advanced economies and emerging market economies, turning bearish towards end-January with the outbreak of coronavirus as markets braced up for the likely adverse impact on growth prospects, particularly in China," it said. However, equity markets in most economies recovered some of the losses in early February. Talking to reporters, Das said the extent of impact of coronavirus is still uncertain and unfolding, as he made a case for preparing a contingency plan to deal with the situation and its impact on the economy. The RBI statement further said crude oil and gold prices shot up in early January sparked by the US-Iran confrontation, but both softened from mid-January as geo-political tensions eased. By end-January, crude oil prices dipped sharply due to sell-offs triggered by the outbreak of coronavirus. Gold prices, on the other hand, inched up towards end-January because of safe haven demand. On domestic front, the RBI noted that likely increase in private consumption, easing of global trade tensions, and Budget initiatives may help in GDP growth, while the outbreak of coronavirus may impact the economic activities. "The breakout of coronavirus may, however, impact tourist arrivals and global trade," the RBI said after a three-day deliberation of the rate-setting Monetary Policy Committee. The coronavirus scare has affected air travel as several airlines across the world, including in India, have curtailed flight operations to China. In the wake of the virus outbreak in Hubei province, India has also put restrictions on the movement of people to and from China, like many other countries, as part of precautionary measures to contain its spread.
Source: Economic Times
Rajasthan Government is inviting entrepreneurs from other parts of the country to invest in Rajasthan. At one such investor meet organised at Welcome Hotel in Coimbatore, officials of Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO) highlighted the opportunities in the fields of solar & wind energy, stones, textiles, ceramics, manufacturing, IT, handicrafts, and automobiles, among others, and the government’s new industrial policy and incentives for these sectors. RIICO has developed 348 industrial areas spread over 48,000 acres of land wherein 40,000 industrial units operate. “We have around 20,000 vacant plots available for allotment and are in the process of launching 35 new industrial areas for allotment,” the official said. Further, to generate employment opportunities and to promote rapid, sustainable and balanced economic growth among eligible manufacturing and services sector enterprises, the Rajasthan Government recently rolled out the Rajasthan Investment Promotion Scheme, 2019 (RIPS 2019). The investor outreach meet was organised jointly by JITO Coimbatore, Coimbatore Management Association, Rajasthan Foundation, FICCI FLO, Coimbatore Welfare Association and TIE, Coimbatore.
Source: The Hindu Business Line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1000.48 |
USD/Ton |
0% |
2/6/2020 |
|
VSF |
1359.74 |
USD/Ton |
0% |
2/6/2020 |
|
ASF |
2010.98 |
USD/Ton |
0% |
2/6/2020 |
|
Polyester POY |
1026.24 |
USD/Ton |
0% |
2/6/2020 |
|
Nylon FDY |
2218.52 |
USD/Ton |
0% |
2/6/2020 |
|
40D Spandex |
4107.83 |
USD/Ton |
0% |
2/6/2020 |
|
Nylon POY |
2454.68 |
USD/Ton |
0% |
2/6/2020 |
|
Acrylic Top 3D |
5367.38 |
USD/Ton |
0% |
2/6/2020 |
|
Polyester FDY |
1281.01 |
USD/Ton |
0% |
2/6/2020 |
|
Nylon DTY |
2053.92 |
USD/Ton |
0% |
2/6/2020 |
|
Viscose Long Filament |
2261.45 |
USD/Ton |
0% |
2/6/2020 |
|
Polyester DTY |
1180.82 |
USD/Ton |
0% |
2/6/2020 |
|
30S Spun Rayon Yarn |
1996.66 |
USD/Ton |
0% |
2/6/2020 |
|
32S Polyester Yarn |
1624.53 |
USD/Ton |
0% |
2/6/2020 |
|
45S T/C Yarn |
2404.58 |
USD/Ton |
0% |
2/6/2020 |
|
40S Rayon Yarn |
1774.81 |
USD/Ton |
0% |
2/6/2020 |
|
T/R Yarn 65/35 32S |
2204.20 |
USD/Ton |
0% |
2/6/2020 |
|
45S Polyester Yarn |
2161.26 |
USD/Ton |
0% |
2/6/2020 |
|
T/C Yarn 65/35 32S |
1932.26 |
USD/Ton |
0% |
2/6/2020 |
|
10S Denim Fabric |
1.27 |
USD/Meter |
0% |
2/6/2020 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
0% |
2/6/2020 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
2/6/2020 |
|
30S Rayon Fabric |
0.53 |
USD/Meter |
0% |
2/6/2020 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
2/6/2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14313USD dtd. 06/02/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Both nations agreed to cut tariffs on each other's' goods as part of the phase-one deal signed last month. China will halve tariffs on some $75 billion of imports from the US later this month, reciprocating a US action and likely satisfying part of the interim trade deal. The cut will be effective from 1.01 pm. on February 14 in Beijing, according to a Ministry of Finance statement on Thursday, the same time as when the US will implement reductions in tariffs on Chinese products. Punitive Chinese duties on American goods that were adopted from September 1 last year will be lowered, with the rate on some dropping to 5 per cent from 10 per cent, and the others to 2.5 per cent from 5 per cent. Both nations agreed to cut tariffs on each other’s’ goods as part of the phase-one deal signed last month. Even with the world’s two biggest economies pausing their trade war, duties remain on large parts of their bilateral trade. The ongoing coronavirus that has claimed more than 500 lives in China and sickened thousands is raising concerns that the Asian nation might have to cancel orders if the situation worsens. China National Offshore Oil told some suppliers it won’t take delivery of liquefied natural gas cargoes it has agreed to, invoking what’s called force majeure to get out of the contracts. The January 15 deal has a clause that states the US and China will consult “in the event that a natural disaster or other unforeseeable event” delays either from complying. Chinese officials are hoping the US will agree to some flexibility on pledges in their phase-one trade deal, people familiar with the situation said, though it is unclear if such a request has been formally raised. The US is monitoring developments on the virus carefully and will have “a much better idea over the next two weeks,” Treasury Secretary Steven Mnuchin said Thursday on Fox Business Network. “Based on current information, I don’t expect there will be any issues in them fulfilling their commitments.” Other retaliatory tariffs China has imposed on US goods will remain, according to the statement. In the meantime, the Asian nation will continue processing applications for tariff exemptions, it said. “We don’t see any impact from this tariff cut — the measures are in line with what the US side is doing,” said Li Qiang, head of Shanghai JC Intelligence While China will continue to process waivers on farm product imports, it won’t remove its punitive tariffs if the US maintains its duties, he said. The yuan extended gains after news of the tariff reduction, with the offshore rate advancing as much as 0.3 per cent to 6.9573 per dollar. Soybean futures traded in Chicago rose 0.4%. Brent crude futures in London climbed as much as 2.4%. In the deal, China agreed to increase its imports from the US, including agricultural products and services, from 2017 levels by no less than $200 billion over the next two years. China is set to release January trade data on Friday, providing a first glimpse of this year’s imports from the US. China’s Trade Likely Shrank in January Ahead of Holiday Shutdown Economists estimate overall trade in January likely contracted due to the Lunar New Year holiday, while the outbreak of the coronavirus casts a cloud over the outlook for the coming months. After the reduction, retaliatory tariffs on American crude oil will be lowered to 2.5% from 5%. Punitive tariffs on soybeans will go down to 27.5% from 30%, and to 30% from 35% for pork, beef, and chicken. These rates are higher as these goods were also hit with tariffs in 2018, which will remain in place. “China hopes that both sides can comply with and implement the agreement to enhance market confidence, promote development of bilateral economic ties and facilitate global economic growth,” according to the statement.
Source: Bloomberg
Cotton growers are optimistic about some of the details in the recently signed U.S.-Mexico-Canada Agreement (USMCA), which should provide benefits for the U.S. textile industry. Following approval from Congress, President Donald Trump signed the USMCA last week, with many commodity groups looking forward to its implementation. “President Trump noted that the USMCA includes important protections and updated rules of origin that are important to the U.S. textile industry and indicated that it should help boost the textile industry here in the United States because of these key protections that were added,” said Vice President of Washington Operations for the National Cotton Council, Reece Langley. “National Cotton Council is very appreciative of the work that this administration has done to update NAFTA and include these improvements for our industry.” As the cotton industry looks forward to the benefits provided by the updated trade agreement, the Canadian Parliament will still need to officially approve USMCA before it can be implemented. “It has already been approved by the government in Mexico. So, this free trade agreement or updated trade agreement is getting that much closer to implementation,” Langley noted.
Source: AG Net West
Vietnamese textile and footwear manufacturers are struggling to import material from China where the new coronavirus outbreak has resulted in factories being shut down. Vietnam Textile and Apparel Association (VITAS) recently advised textile companies to tap other markets to meet production targets. The move came as a response to the novel coronavirus (2019-nCoV) continuing to claim lives in China, which in 2019, accounted for almost 60 percent of Vietnam’s garment imports, and 55 percent of fiber, according to VITAS. Tran Van Dang, owner of a handbag manufacturer in District 3, Ho Chi Minh City that regularly sources material from China, said there was no leather left when his factory resumed operation on Monday, following the seven-day Lunar New Year, or Tet break. "If we cannot import more material from China this week, production will cease next week," he told local media. Another manufacturer in Go Vap District said his Chinese suppliers still let workers stay home to avoid spreading 2019-nCoV, meaning his stock will run out in two weeks. Truong Thi Thuy Lien, CEO of Lien Phat Footwear in southern Binh Duong Province, has enough material for the next three months, but remains concerned because 2019-nCoV is still spreading across China. "If the disease persists, our supply and transport chain will be in trouble. In the worst case scenario, manufacturing will have to stop or be delayed." Many clothes sellers in An Dong Market of District 5, HCMC have not been able to order more stock from China where factories have yet to resume operations, having to pay VND2 million ($86) a day in stall rent. Dieu, a seller at the market, said: "Usually by this time each year I have received 3-4 packages from China. But so far, none have arrived, and we might have to continue waiting for weeks." Other sectors have also reported challenges in acquiring materials as China shuts down manufacturing in many cities to contain 2019-nCoV. In central Hubei Province, where the majority of 2019-nCoV-related deaths have occured, factories will not resume production until February 14 and could run on a limited scale after that. Nguyen Quoc Anh, chairman of Ho Chi Minh City Rubber Plastic Manufacturer Association (HRPMA), said production of rubber and plastic in Vietnam is largely dependent on China with 70 percent of materials imported from the country. Anh, also CEO of rubber firm Duc Minh, said the company’s material will run out in a month. If Chinese suppliers still cannot provide more material by that time, the company would have to source from Japan and South Korea where prices are 15-20 percent higher. "Profitability will be challenged by higher material costs as we have fixed prices with customers since the end of last year." Leading stock brokerage SSI Securities Corporation (SSI) noted the 2019-nCoV outbreak could negatively impact 10 major industries in Vietnam, including textiles, as Chinese factories close down. In January, Vietnam’s imports of fabric from China fell 18.1 percent to $950 million, according to General Statistics Office (GSO). Exports of textiles, a key sector, in all markets fell 21 percent year-on-year to $2.6 billion in January, while that of footwear fell 9.7 percent to $1.6 billion, it added.
Source: Vietnam Express
Unlike some designers, Daniel Silverstein doesn’t mind when others freely copy his style. In fact, the designer of fashion from scraps and fabric remnants welcomes imitators. “The more people that do this, the more we see a solution,” the New York-based designer told the Thomson Reuters Foundation. “My job is to keep innovating and pushing forward and creating new things for people to rip off.” Silverstein, whose fashion company is Zero Waste Daniel, creates clothing from bits and bolts of leftover cloth, with an eye to using, reusing and recycling all that he can. From a storefront studio in the city’s Brooklyn borough, he makes unisex jogging pants, teeshirts, sweatshirts, hoodies and jackets, mostly black with colorful patchwork, as well as cloth pouches and patches. A standout piece is a bright orange coat created from remnants inherited from the New York City Department of Sanitation. He typically starts with fabric from FabScrap, a local non-profit where designers and other clothes makers deposit a cornucopia of leftover bolts, samples, scraps, zippers, buttons, yarn, tassels and ribbons. “I see potential everywhere,” Silverstein said. “It’s about looking at things from a different perspective. You only see trash if you choose to. “I am able to look at these little scraps every day and say, ‘You’re going to leave here as something beautiful and not in a garbage bag,’ and that feels really good.” Nearly three-fifths of all clothing winds up burned in incinerators or dumped landfills, according to the New Standard Institute, a fashion industry sustainability group. The U.S. Environmental Protection Agency estimated that in 2017, about 17 million tons of textiles were created in the United States and more than 11 million tons were deposited in landfills. About 2.6 million tons were recycled. Hoping to have an impact, Silverstein is one of several designers paying attention to sustainability in their work. Women’s clothing designer Eileen Fisher has a program for buying back and reselling used pieces, and online clothing retailer Reformation lists a sustainability measure for each item for sale on its website. Outdoor clothing retailer Patagonia runs an online store called Worn Wear for buying and selling its used goods, and its competitor Columbia makes high-performance rain wear out of recycled plastic bottles. Silverstein takes pride in putting sustainability at the heart of what he creates. “I don’t think of sustainability as a filter or a lens,” he said. “For me, it’s the mission of zero waste and inspiring a generation of designers to follow suit and make better choices with their design and solve problems with their design.”
FAST-FASHION AND THE PLANET
More than 8% of global greenhouse gas emissions is produced by the apparel and footwear industry, according to the New Standard Institute. Also, consumers are keeping their clothing purchases about half as long as they did in 2000, according to a 2016 research by McKinsey & Co. Management consultants. Sustainable fashion can mean upcycling fabric into new fashions, like Silverstein does, minimizing water usage, dyes and pesticides or making goods to last and not quickly discarded for the next fast-fashion trend, experts say. “Upcycling is definitely a more sustainable way to do things because you’re keeping textiles out of landfill or being burned, and you’re not requiring the production of more fabric,” said Alden Wicker, a New York-based sustainable fashion expert and consultant. “As an option for consumers who are concerned about what their fashion purchases are doing to the planet and people, I think it’s an amazing solution. “Whether it represents the solution to the issues in the fashion industry, probably not,” she said. “It’s one piece, one small part of the larger puzzle of trying to reform the fashion industry.” Its drawbacks include limits on how much such a business can grow, she said. Silverstein, 31, attended New York’s Fashion Institute of Technology and worked for a handful of designers before setting out on his own. In 2015, he started Zero Waste Daniel to give new life to fabric scraps. With his husband and business partner Mario DeMarco, Silverstein sells directly to consumers online and from his store and shows his work during New York’s semi-annual Fashion Week. For now, he does not work with retailers but said he would be open to collaboration to spread his message. “It’s not just about making money. It’s also about making an impact,” he said. “I don’t have to be part of that system that’s accelerating climate change.”
Source: Reuters
Pure Origin, the new home for international garment, fabric and supply chain sourcing, will put the spotlight on Turkey at its next show, which is taking place alongside Festival of Fashion Pure London at Olympia London from 9–11 February 2020. “As the world’s 7th largest apparel exporter with 17billion USD export, and with 72% of total apparel export going to the EU, Turkey represents a huge opportunity for UK brands and designers, with short delivery times and integrated supply chain capabilities,” Pure Origin’s organisers says. “Turkish brands have always had a strong presence at Pure London, and this season’s show is no exception with more than 20 businesses from the region showcasing within Pure Origin, and over 20 Turkish brands showing in Pure London - supported by Turkey, Discover the potential campaign. Joining the Pure Origin line-up this season include S&M Tekstil, Titbas Tekstil, Isik Etiket, Creazone, Günerler, Ersa Tekstil, Trakya Tekstil and Aysan Tekstil among many others.” Nihat Berktas, Turkey Country Manager for Pure London and Pure Origin comments: “The interest in Turkish companies at the show is growing exponentially every year as the appetite for the UK market is increasing. The UK is the 2nd largest export market for Apparel/Textile for Turkey, and UK buyers are looking to manufacture more in closer countries like Turkey. Pure Origin will offer visitors a huge variety of new Turkish businesses to explore this season.”
Source: Innovation in Textiles
