Ravi Capoor, Secretary (Textiles), has urged the industry to diversify to polyester textile products to boost exports. His advice follows the government’s decision to abolish anti-dumping duty on Purified Terephthalic Acid (PTA), a key raw material for polyester textiles, in the recent Budget. With the global textile market for man-made fibre on the rise, it would make sense only if India moved in that direction. A level playing field has been created by abolishing the anti-dumping duty on PTA, Capoor said, at an interactive meeting organised by the Confederation of Indian Textile Industry (CITI). Office bearers of 48 textile associations in South India participated in the discussion. Besides appreciating the sustainable initiatives taken by Tirupur and Coimbatore by implementing zero liquid discharge, Capoor advised the Tirupur Knitwear Cluster to brand its garments and products under sustainable programme as this would help fetch larger margins globally. The Government would extend all necessary support to promote the brand, he added. Capoor also hinted that the Government would address all the structural issues in its new National Textile Policy and initiate efforts to expedite conclusion of FTAs with EU, UK and other countries to boost the exports. CITI Chairman T Rajkumar, in a release, pointed out that the industry has been facing severe challenges in the aftermath of demonetisation, GST implementation, economic slowdown across the globe, US-China trade war and more recently the coronavirus outbreak in China. “The domestic market recorded a steady growth, but exports stagnated — registered 4 per cent negative growth during the last four years. China has started cutting down its production, outsourcing and created a huge space in the international market. This opportunity has been fully exploited by small countries like Bangladesh and Vietnam pushing India to the 5th position in the global textile trade, from the 2nd position that it had held for several years,” he said.
Source: The Hindu Businessline
Finance Minister Nirmala Sitharaman on Friday said that if required, the government would take more steps beyond the announcements made in the Union Budget 2020-21. At an interactive session on 'Budget and Beyond' with professionals from asset management, wealth advisory, tax consultancy and other related industries, the minister also said the Budget 2020-21 was a budget where the impact on equity, bond and currency markets was positive. "If more has to be done beyond the Budget 2020, we are willing to do that," Sitharaman said at the session, where the participants made several suggestions to boost economic activities in the country. The government announced a host of steps in the Union Budget, presented on February 1 in Parliament, to expand the economic activities at a time when the country is faced with demand slowdown due to several reasons. The country's GDP growth is estimated to slow to an 11-year low of 5 per cent in the current financial year. During the interactive session, participants made suggestions for increasing consumption, giving more money into the hands of consumers, measures required to boost liquidity and hosts of suggestions for the capital markets. Several suggestions were also made on the 'Vivad se Vishwas' scheme to deal with the disputes related to the direct taxes. It was announced in the Budget 2020-21. She said the finance ministry will provide details of the scheme soon. However, Parliament approval will be required before the scheme is implemented. Sitharaman assured the participants that her ministry would look into the suggestions. The finance minister had similar interactive sessions in Mumbai, Chennai and Kolkata last week. The meeting was also attended by Niti Aayog Vice-Chairman Rajiv Kumar and CEO Amitabh Kant, besides secretaries of the finance ministry
Source: Economic Times
The virus outbreak in China has claimed nearly 1,500 lives and infected over 60,000Finance Minister Nirmala Sitharaman will meet industry bodies on Tuesday to asses the impact of the coronavirus outbreak on Indian trade and businesses. The virus outbreak in China has claimed nearly 1,500 lives and infected over 60,000. The deadly virus has spread to many countries, including India. "To assess impact of Coronavirus, presently endemic in China, on Indian trade & industry, Finance Minister Smt. @nsitharaman would be meeting Industry associations on Tuesday along with Secretaries in the Ministry," the finance ministry said in a tweet. Several sectors, specially electronics, mobile and textiles, are expected to be hit due to supply restraints in China in the wake of the coronavirus epidemic.
Source: Business Standard
The decline is mainly due to a drop in shipments of gems and jewellery, engineering goods, readymade garments of all textiles, rice and leather products. India’s merchandise exports contracted for the sixth month in a row, dropping 1.66 per cent to $25.97 billion in January from $26.41 billion the same month last year, as 18 of the 30 major export commodities showed a dip in shipments. The decline is mainly due to a drop in shipments of gems and jewellery, engineering goods, readymade garments of all textiles, rice and leather products. Imports in January also dropped 0.75 per cent to $41.14 billion from $41.46 billion. However, the country’s trade deficit widened to $15.17 billion from $15.05 billion last year, according to data released by the Commerce Ministry on Friday.Engineering good shipments dropped 4.04 per cent to $6.24 billion from $6.51 billion in January 2019. Gems and jewellery exports contracted 11.58 per cent to $2.88 billion from $3.26 billion in the same period last year. Shipments of readymade garments dropped 4.98 per cent to $1.45 billion from $1.53 billion, rice exports dropped over 18 per cent to around $598 million, while leather shipments dropped 7.74 per cent to around $407 million in January 2020. At the same time, exports of goods like petroleum products, organic chemicals, electronic goods, cotton and man-made yarn and drugs and pharmaceuticals increased in January from the same month last year. Exports of major commodities like drugs and pharmaceuticals grew 12.37 per cent, while electronic good shipments increased 32.81 per cent. Besides protectionism and liquidity concerns, the sudden spread of the novel coronavirus in China has “further worsened the global sentiment and exporters are delaying their shipments,” said Federation of Indian Export Organisations president Sharad Kumar Saraf. “Indian exports is also passing through very tough and challenging times as the currency volatility besides fluctuations in commodities prices including that of crude have also led to the nominal increase in exports of petroleum, which is a major constituent of India’s exports,” he said.
Source: Indian Express
The country’s construction, auto, chemicals and pharma sectors are expected to be the worst affected due to COVID19, which carries the risk of global supply chain disruptions. Five import items that are heavily dependant on China — electrical machinery, machinery and mechanical appliances, organic chemicals, plastics and optical & surgical instruments — that make up about 28% of India’s import basket could be hit the most due to a potential shutdown, analysts say. As a result, construction, transport, chemicals and machinery manufacturing could be affected, though the overall impact of COVID-19 on India’s trade is expected to be modest. There may not be much impact on the country’s exports as China accounts for just 5% of the country’s total outgo, but certain commodities like organic chemicals and cotton could face headwinds as they have a sizeable share in exports. China accounted for around $73 billion, or 14%, of India’s total imports of $507 billion in FY18. China is the biggest source for imports, though its contribution to India’s total imports is less than one-seventh. The coronavirus is likely to keep factories and industrial hubs in China closed beyond February 17 when the Lunar new year holidays end until the epidemic is brought under control, leading to extensive potential production losses. Among imports, organic chemicals is likely to be among the worst-affected commodities due to the crisis. India imports close to 40% of its organic chemicals from China, while other sources — US and Singapore, also depend on China to varying degrees, says a note from ICICI Securities. India also imports 40% of its electrical machinery from mainland China, and with Hong Kong, its share goes up to 57%. Over half of India’s electrical machinery imports are likely to get impacted. Further, India imports almost one-third of its machinery and mechanical appliances from China, and a prolonged shutdown is likely to put 30-40% of machinery imports at risk. For optical and surgical instruments, China is the largest supplier with a 16% share, hence these could be also impacted. Around 54% of India’s import basket is dependent on China — of which 28% is heavily dependent, and the remaining 26% has modest dependence. Import items among the 26% include iron, steel and inorganic chemicals. Plastics are also likely to be hit, although at a lower extent. Domestic pharma companies could also face disruption if the crisis extends beyond three to four months, as key raw materials (active pharmaceutical ingredients — APIs) and intermediates are imported from China. For certain API used for anti-infectives, antibiotics, vitamins, anti-diabetes, dependence on China is 80-90%, industry experts say
Source: Times of India
The sudden spread of coronavirus in China has worsened the global sentiment, and exporters are delaying their shipments, says industry body FIEO. According to the Federation of Indian Export Organisations (FIEO), exports declined 1.66 per cent to USD 25.97 billion in January, impacted by global and domestic factors. "Besides protectionism and liquidity concerns, sudden spread of nCov in the world''s second largest economy China has further worsened the global sentiment and exporters are delaying their shipments," FIEO President Sharad Kumar Saraf said in a statement. Other key factors, including trade war, tension between Iran and the US and slowdown in economies across the globe, have also exaggerated the problem for India''s exports sector, he said. "The spread of nCov has dented China''s economy in a big way. Indian exports are also passing through very tough and challenging times," Saraf said. Along with currency volatility, fluctuations in prices of commodities, including crude, have led to the nominal increase in exports of petroleum, which is a major constituent of India''s exports. According to FIEO, only 10 out of the 30 major product groups were in positive territory during January, including electronic goods, drugs and pharmaceuticals, organic and inorganic chemicals, iron ore, oilseeds, ceramic products and glassware, man-made yarn/fabs/made-ups, cotton yarn/fabs/ made-ups, handloom products have shown some positive or nominal growth. "However, all other major sectors of exports, including the labour-intensive sectors, are still in negative territory. Also, the marginal decline of 0.75 per cent in imports at USD 41.14 billion during the month has not come as a respite for the economy," Saraf added. He further said that uncertainty over the Merchandise Exports from India (MEI) scheme has been a major cause of concern. "Exporters claims, for about six months, are still pending, which has completely wiped out their liquidity and has kept them in doldrums with regard to finalising new contracts," Saraf added. Also, the problem of risky exporters has further compounded the liquidity problem as their GST and drawback claims have also been held up, he said. "The stalemate over MEIS for apparels and made-ups should be resolved immediately. Besides, Remission of Duties or Taxes on Export Product (RoDTEP) should be notified with immediate effect for all the products with lead time of at least three months now, so that exporters may factor the same in finalising new orders and making their transition to the new scheme, while continuing with MEIS in the interim period," Saraf added.
Source: Outlook India
With less than 10 days left for the visit of US President Donald Trump to India, officials of both the countries are yet to resolve differences in various sectors, including agriculture, poultry and dairy, essential for a trade pact, sources said. They said the deal between India and the US should be mutually beneficial and it should not compromise India's interest. Although talks are going on between the officials of the two countries, there is no clarity if a trade pact will be signed during Trump's two-day visit, beginning February 24. The sources said India has clearly stated that dairy and milk products should not be derived from animals that are fed internal organs, blood meal, or tissues of ruminant origin as it would hurt sentiments of the society at large. Further, they said that after withdrawal of export incentives by the US, under its Generalized System of Preferences (GSP) programme, India's exports of those products to America have recorded a growth of about 11 per cent in December. Under GSP, India was exporting 1,900 items from sectors like chemicals and engineering. It was rolled back by the US last year. Meanwhile, the expected visit of US Trade Representative Robert Lighthizer this month, ahead of the Trump's visit, to discuss the trade package with India is unlikely, an official said. "Lighthizer was supposed to hold discussions with commerce ministry team but as of now, he is not coming," the official said. The visit of USTR assumed significance as Indian and US officials are engaged in talks for a limited trade deal. The two countries are negotiating a trade package to iron out certain issues and promote two-way commerce. India is demanding exemption from high duties imposed by the US on certain steel and aluminium products, resumption of export benefits to certain domestic products under their GSP, and greater market access for its products from sectors such as agriculture, automobile, automobile components and engineering. On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items, medical devices, and data localisation, apart from cut on import duties on some information and communication technology products. The US has also raised concerns over high trade deficit with India. In 2018-19, India's exports to the US stood at USD 52.4 billion, while imports were USD 35.5 billion. Trade deficit dipped from USD 21.3 billion in 2017-18 to USD 16.9 billion in 2018-19. India received FDI worth USD 3.13 billion from the US in 2018-19, higher than USD 2 billion in 2017-18.
Source: Economic Times
India and Portugal on Friday signed seven agreements to boost cooperation in a range of areas after Prime Minister Narendra Modi and Portuguese President Marcelo Rebelo de Sousa held extensive talks. The pacts provide for cooperation in areas of investment, transport, ports, culture and industrial and intellectual property rights. Portugal is an important country for India in Southern Europe, and bilateral ties have witnessed a steady progress in the last 15 years. In October 2005, Portugal extradited Abu Salem and Monica Bedi to face terror charges. Prime Minister Modi visited Portugal in June 2017 during which 11 agreements were signed covering a large number of areas including space, avoidance of double taxation, nano-technology, biotechnology and higher education. Sousa arrived here on Thursday night on a four-day visit, his first to India. The last visit by a Portuguese President to India was in 2007. He is accompanied by a high-level delegation. Officials said the talks covered entire expanse of bilateral ties including in areas of trade, investment and education. In the morning, the Portuguese president was accorded a ceremonial welcome at the Rashtrapati Bhavan. The pacts signed after Modi-Sousa talks included a joint declaration a bilateral mobility partnership and another on maritime transport. President Ram Nath Kovind will meet the visiting president on Friday evening and host a banquet in his honour. Sousa will also travel to Maharashtra and Goa during his visit.
Source: Economic Times
The Tiruppur Export Association (TEA) on Friday welcomed the budget allocation of Rs 1,224 crore to the development of handlooms and textiles businesses in Tamil Nadu. Deputy chief minister and finance minister of finance minister O Panneerselvam presented the budget in the assembly in on Friday. Speaking on how this budget allocation could encourage and benefit thousands of budding entrepreneurs, TEA president Raja M Shanmugham said, “We welcome the expanding benefits available under Prime Minister’s Employment Generation Programme (PMEGP) and the Unemployed Youth Employment Generation Programme (UYEGP), the existing project size limit of Rs 10 lakh will be enhanced to Rs 15 lakh and eligible subsidy under the scheme will be enhanced from Rs 1.25 lakh to Rs 2.5 lakh. This will encourage thousands of budding entrepreneurs. The provision for this scheme has been enhanced to Rs 33 crore in the Budget Estimates 2020-21.” The budget also allocated Rs 500crore fund allocation for environmental clearance under the Athikadavu-Avinashi irrigation scheme. Interest subvention under the Technology Upgradation Scheme and the Credit Guarantee Fund Trust scheme has been increased from 3% to 5%.He appreciated enhancing of the maximum capital subsidy under the NEEDS scheme from Rs 30 lakh to Rs 50 lakh and the Rs 100 crore fund allocation for this scheme in the Budget Estimates 2020-21. Reduction in Stamp Duty for rental agreements under the new Tenancy Act to 0.25% from 1% and registration charges on such agreements to 0.25% from 1% subject to a maximum of Rs 5,000 was also seen as a welcome move.
Source: Times of India
Toray Industries (India), a subsidiary of Toray Industries Inc of Japan, commissioned its ₹1,000-crore plant in Sri City in Andhra Pradesh to produce meditech technical textile materials and auto components. Mekapati Goutham Reddy, AP Industries Minister, unveiled the plaque marking the inauguration of the plant in the presence of Kojiro Uchiyama, Consul-General of Japan in Chennai. Toray is the 20th Japanese company to start operations at Sri City. Five more Japanese companies are in the construction phase. The unit, which was built on a 85-acre site at an initial investment of around ₹1,000 crore, has units for manufacture of PolyPropylene (PP) Spun Bond and Engineering Plastics Resin Compounds, an Environment Treatment Plant, power utilities, along with related infrastructure. The PP Spun Bond plant is to produce meditech technical textile material and will start commercial production in March. These products are used in diapers and sanitary napkins, which take advantage of the material’s combination of wicking, softness, high uniformity and light weight. The products made at the Engineered Plastics Resins plant are used as raw materials for making automobile electrical components and electrical and electronic connectors. The plants will supply their products to both Indian and cater to exports. Both plants put together will initially generate jobs for over 400 people, and this number will go up in subsequent phases. The Minister said because of ease of doing business in the State, several Japanese companies prefer AP, particularly Sri City. “For expediting speedy process and clearance, soon we will introduce a special desk for Japanese investors,” he said. Kojiro Uchiyama said that “Toray’s presence will make a significant impact on Indian market with its innovative products.”
Source: The Hindu Business Line
Says there is a need to transfer several sectors from Concurrent List to States; calls for simplified regulations to compete in global market. IT and Industries Minister KT Rama Rao on Friday urged the Union government to involve States in policy-making decisions besides liberalising tough Central regulations to put the country on a higher growth trajectory. Rama Rao, who was speaking at a session on “March to $5 Trillion Economy: Reality or Ambitious” at the National Association of Software and Services Companies’ (NASSCOM) Technology Leadership Forum 2020 in Mumbai, also sought freedom for States in sectors such as service, tourism, healthcare and education. “There is a need to transfer several sectors from the Concurrent List to the States,” he said. Citing the example of smaller countries such as Bangladesh and Vietnam doing very well in electronics, textiles and apparels, he said simplified regulations would help the nation compete in the global market. “The Make In India slogan has slowly turned into Assembling In India, and we should take measures to make the country a manufacturing hub,” he said. Citing examples from Telangana, which has embarked on mega projects in irrigation, pharma and textiles, he said the State was now competing with the world. “We are now establishing the world’s largest pharma cluster — Pharma City — besides a mega textiles park in Warangal in addition to building the largest irrigation project — Kaleshwaram. Despite the national importance of these initiates, the Central government never helped us. When it (Centre) has no concern for such major projects, how can it dream of achieving a financial turnaround?” he questioned.
Innovation
The Minister, recalling his interaction with Prime Minister Narendra Modi where he propounded the 3I mantra — innovation, infrastructure and inclusive growth, said building a new nation would only be possible by adhering to the mantra. “We have to compete with the world in the field of innovations. Telangana has already taken several initiatives in this direction including setting up of T-Hub and T-works,” he said. He then argued that the infrastructure sector in the country was not growing as fast as it was envisaged. “While only Rs 50,000 crore was spent in Telangana between 2004 and 2014 on capital assets creation, the Telangana government spent Rs 1.60 lakh crore in the past five years,” he said, adding that the State government also took up Mission Bhagiratha, Mission Kakatiya and Kaleshwaram Lift Irrigation Project with huge investments as they have highest returns per every rupee that is spent. He also said such an investment also helps bringing the much-needed economic parity between urban and rural economy. He mentioned the initiatives such as We-Hub taken by the Telangana government, to increase participation of women in the economic development of the State. Inviting IT companies to spread their presence to tier-II cities, he sought Nasscom’s help in bringing IT companies to smaller towns. “The move will greatly reduce your establishment and recurring costs, and the companies can also benefit from the local pool of talent. Our efforts in bringing IT firms to Warangal are yielding excellent results,” he said. Highlighting the efforts made by Telangana to enhance incomes of farmers in the field of agriculture, he said Rythu Bandhu and Rythu Bima programmes were taken up in that direction. The centre also has emulated Telangana’s programmes, he added.
Source: Telangana Today
Maharashtra lost its top slot to Andhra Pradesh in 2018-19 in attracting project investments, according to study by the Reserve Bank of India. But over a five-year period between 2014-15 and 2018-19, the state topped the list followed by Gujarat and Andhra Pradesh. In 2018-19, Andhra Pradesh accounted for the highest share - 11.8 per cent- in total cost of projects sanctioned by banks and financial institutions in 2018-19 followed by Tamil Nadu (11.5 per cent), Maharashtra (10.9 per cent), Gujarat (9.9 per cent), Telangana (8.2 per cent), Rajasthan (6.8 per cent) and Uttar Pradesh (6.2 per cent). But the data for the five year period between 2014-15 to 2018-19, revealed that Maharashtra topped the list attracting 13.6 per cent of the investments during the period followed by Gujarat which managed to get 13.4 per cent of the investments. The study noted that 56 per cent of the projects were taken up in six states- Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Rajasthan and Tamil Nadu indicating their locational advantages over other states. The deciding factors for a project getting sanctioned in a particular state are the location of a project are accessibility of raw materials, availability of skilled labour, adequate infrastructure, market size, and growth prospects, the RBI study notes implying the states having an edge over the rest in terms of their attractiveness as an investment destination. The Reserve Bank of India has been tracking capex plans of the private corporate sector (projects that are already funded by financial institutions) for providing an outlook on investment intentions. The primary source of data on investment intentions are the financiers of capex projects, mainly banks and financial institutions as well as external commercial borrowings, foreign currency convertible bonds, rupee denominated bonds and initial public offerings, follow-on public offerings, and rights issues for a year.
Source: Economic Times
India's annual rate of inflation, based on monthly wholesale price index (WPI), for January 2020, stood at 3.1 per cent over January 2019. The index for textiles dipped 0.4 per cent while for apparel it was down 0.8 per cent in January, according to the provisional data released by the Office of the Economic Adviser, ministry of commerce and industry. The official WPI for all commodities (Base: 2011-12 = 100) for the month of January 2020 rose by 0.1 per cent to 122.9 from the previous month’s level of 122.8, the data showed. The index for manufactured products (weight 64.23 per cent) for January 2020 rose by 0.4 per cent to 118.5 from the previous month level of 118.0. The index for ‘Manufacture of Wearing Apparel’ sub-group declined by 0.8 per cent to 138.0 from 139.1 for the previous month due to lower price of manufacture of wearing apparel (woven), except fur apparel (1 per cent). The index for ‘Manufacture of Textiles’ sub-group also declined by 0.4 per cent to 116.4 from 116.9 for the previous month due to lower price of cotton yarn and manufacture of other textiles (1 per cent each). However, the price of woollen yarn moved up by 1 per cent. The index for primary articles (weight 22.62 per cent) dropped by 1.1 per cent to 147.2 from 148.8 for the previous month. The index for fuel and power (weight 13.15 per cent), however, rose by 1.4 per cent to 102.7 from 101.3 for the previous month. While prices of furnace oil, naphtha, ATF, LPG, HSD and kerosene increased, price of bitumen declined. Meanwhile, the all-India consumer price index (CPI) on base 2012=100 stood at 7.59 (provisional) in January 2020 compared to 7.35 (final) in December 2019 and 1.97 in January 2019, according to the Central Statistics Office, ministry of statistics and programme implementation.
Source: Fibre2Fashion
Director General (DG) Sindh Environmental Protection Agency (SEPA) on Friday asked representatives of five textile mills operating in District Malir to appear in person before him for not ‘fully complying' with the environmental laws, on February 19. The SEPA officials said that DG Naeem Ahmed Mughal paid a surprise visit to five textile mills and monitored their production activities with regard to environmental standards. They said none of the five mills was fully complying with the environmental laws of Sindh and most of their environmental affairs were not up to the mark. He said the DG also asked mills about their mandatory environmental approval before establishing their operational setup and also investigated if their effluent is being treated as per the required standard before its release into the water bodies. None of the mills could give satisfactory answer to the above questions which implied that they were not fully complying with the environmental standards of the province. It may be pointed out that under Sections 11 and 14 of the Sindh Environmental Protection Act 2014 all industries are bound to treat their effluent and wastewater before releasing it into the water bodies. In case of non-compliance, they may be fined and on their continued violations their operations may be stopped.
Source: Business Recorder
Brexit, as Prime Minister Boris Johnson likes to say, is done. The British have about a year to negotiate the deal that will determine their future relationship with the EU. The form Brexit takes will have significant repercussions for third parties, Turkey being only one of the many. I believe Brexit to be rather fortunate for Turkey. Let me explain what I mean by that. Nearly half of Turkish exports go to the EU. Without the U.K., the EU’s share in Turkish exports will decline by more than 10 percent. Also, around 70 percent of our trade with the U.K., from textiles to electronics, is probably going to be hit directly or indirectly. This is because the current framework of the EU Customs Union has been the major determinant of our trade structure with the U.K. Turkey’s membership in the EU Customs Union has been shielding Turkish products from Asian competition so far. That’s why, despite Turkey’s declining global competitiveness in the last decade, the EU is still our dominant trading partner. What happens next, of course, will have a lot to do with the deal the U.K. negotiates with the EU. I understand that Mr. Johnson’s government has expressed confidence going into these negotiations, but as conscientious observers have pointed out, the EU vastly outweighs the U.K., and as such, is likely to want highly favorable terms. If the U.K. is anything like Turkey and Russia, and I believe it is, imperial hubris will prevent it from accepting those terms, which means a no-deal Brexit will become a distinct possibility. Whatever the case may be, our exports to the U.K. are unlikely to remain under the protective shield of the EU Customs Union. Greater shares of Turkish firms will be exposed to competition Chinese, Vietnamese and other Asian firms.
But why is this a good thing?
First, if, as seems likely, the EU’s Green Deal Commission puts a border levy on high-emissions goods, Turkey is going to lose the EU’s protective shield anyways. Brexit prepares Turkey for this because it forces us to think about our trade strategy more creatively. We need to show our European partners that there are options for us out there. Protective shields breed complacency, and Brexit may help us wake up. Second, the Customs Union mostly covers products of the manufacturing industry. Turkey has so far only liberalized its industry effectively. The long-discussed deepening of the Customs Union was about liberalizing Turkey’s service and agricultural sectors. As this process has been politicized and drawn out, Turkey needs to start thinking about an immediate deal with the U.K. in areas not covered by the EU-Turkey Customs Union. Ankara could think of it as a kind of a dress rehearsal for upgrading its trade relationship with the EU. This is why it was useful for us to see the U.K. to jump first and negotiate later – it gives us time to think, but not enough time to idle around. Third, the partial loss of the protective shield will be useful to start a policy discussion in Turkey on the new structural reform agenda. To make its growth sustainable, Turkey needs a structural reform agenda to improve its global competitiveness. This is of vital importance for the resiliency of the Turkish economy. “Every door is an entrance as well as an exit” says a Chinese proverb. So, Brexit is not only about the U.K. leaving the EU, it is also an opportunity for Turkey to start thinking about a new partnership framework with both, the U.K. and the EU. In 1570, when the Pope excommunicated Elizabeth I and it became hard for British traders to operate in Europe, Britain reached out to the Ottoman Empire for trading privileges. Just imagine that. The two empires were on opposite ends of the known world, and still they came together to trade. Politicians in Britain and Turkey these days like to wax lyrical about their imperial history, but use this as cover for their provincial policies. This is a time when new opportunities for deeper and more lasting engagement are unfolding before us. We should seize them.
Source: Hurriyet Daily
As part of a new approach, the British government is developing a new UK Most Favoured Nation (MFN) tariff schedule that will enter into force on January 1, 2021. To inform the development of this bespoke tariff regime, a four-week public consultation on the new policy was launched on February 6. Anyone can offer suggestions till March 5. This bespoke regime, known as the UK Global Tariff, will ensure UK businesses compete on fair terms with the rest of the world whilst benefitting households through greater choice and lower prices. Ultimately, this will also help to make it easier to trade, drive up investment, and deliver more quality jobs across the United Kingdom, according to an official press release. Goods coming into the United Kingdom will no longer be subject to the EU’s Common External Tariff as these have been for nearly 50 years, with the UK’s new Global Tariff Policy coming into effect on January 1, 2021, for imports from any country the United Kingdom does not have a free trade agreement with. This comes as the government sets out details of the UK’s approach to negotiating free trade agreements with countries, including the United States, Australia, New Zealand and Japan. As part of the consultation, the government is seeking views on simplifying and tailoring the tariff to suit UK businesses and households, such as removing tariffs of less than 2.5 per cent and rounding tariffs down to the nearest 2.5 per cent, 5 per cent or 10 per cent band; removing tariffs on key inputs to production that could reduce costs for UK manufacturers; and removing tariffs where the country has zero or limited domestic production which could help to lower prices for consumers. In line with the Northern Ireland protocol, special arrangements will apply to goods entering Northern Ireland.
Source: Fibre2Fashion
Speakers and delegates from around the world gathered on 5-6 February 2020 at the Jaguar Experience Centre in the heart of the UK car manufacturing industry in Birmingham, UK, for the first edition of Textile Opportunities in a Changing Automotive Industry (TOAI). Keynote speaker Amy Frascella of Land Rover Design emphasized the ncreased consideration of the provenance of the materials used and the whole life-cycle impact. With natural fibres and new materials come new benefits such as higher tensile strength, inherent heating/cooling, moisture wicking properties and anti- soiling solutions. In addition, the perception of luxury is changing, and sustainability is becoming an ever-more important factor in consumer-purchasing decisions. The presentations given over the two-day conference confirmed that textiles and nonwovens can and will contribute to the new mobility era by providing, for example, textile interiors with high levels of comfort for the occupant while reducing the impact of manufacturing on the environment, and new processes that offer textile interiors with high levels of comfort for waste-free recycled lightweight materials for interiors. New concepts and techniques were described, which sparked informative discussion during the forum sessions. There were ample networking opportunities for all participants during the breaks in and around the exhibition area and at the evening reception. Participants agreed that TOAI offered valuable and interesting content and praised the high quality of the individual presentations in a well-structured programme. “An inspiring and informative conference, which showcased the best innovations and collaborative action from automotive brand leaders and their supply chain to dramatically reduce material, production energy and process water waste,” said Christine Modla-Thomas of UK precision digital materials application company Alchemie Technology. Another highlight of the event was a manufacturing tour of the Castle Bromwich plant, which delegates found both interesting and informative. The new conference was devised and organised by publisher International Newsletters Ltd, and the conference chair was industry specialist and writer Adrian Wilson. “I think the conference programme successfully illustrated the sheer diversity of end-use applications for textiles in the automotive industry that already exist, and the potential for further growth, both through car manufacturers seeking to lower weight to reduce CO2 emissions and the push to develop alternatives to the internal combustion engine,” Wilson said. Event sponsors were 3-D and spacer fabric specialist Müller Textil GmbH (Germany); members of the UCMTF French Textile Equipment, and fabric coater IMA srl/Solacon (Italy/Belgium).
Source: Innovation in Textiles
Thirty-eight new Chinese companies were established in Uzbekistan in January, accounting for the largest number of new companies in the country, according to information published by the Uzbek State Statistic Committee on Friday. The total number of Chinese companies operating in Uzbekistan has reached 1,690 by the end of last month, second only to Russia in the number of foreign entities in the Central Asian country. Chinese companies are involved in the areas of oil and gas exploration, pipeline transport, infrastructure building, telecommunications, textiles, chemicals, logistics and agriculture, according to the statistics committee. China is one of Uzbekistan's largest trading partners. In 2018, China-Uzbekistan trade surged 48.4 percent year-on-year, reaching 6.26 billion U.S. dollars. Statistics show that enterprises operating with foreign capital in Uzbekistan are mostly from Russia, China, Turkey, South Korea, Kazakhstan and other countries. Since Shavkat Mirziyoyev was elected president in 2016, Uzbekistan has taken a series of measures to promote economic reforms, including the elimination of foreign exchange controls, the reduction of tax burdens, and preferential treatment for foreign investment.
Source: Xinhua
