The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 12 MAY, 2020

NATIONAL

INTERNATIONAL

Centre may extend lockdown beyond May 17 with easier norms for business

After a 6-hour video conference with chief ministers (CMs), Prime Minister Narendra Modi promised resumption of more economic activities in the weeks to come and asked states to take the lead in deciding the contours of the next phase of lockdown and share their strategies with him by May 15. “Slowly but surely, economic activities have begun to pick up in several parts of the country. In coming days, this process will gather steam. We must realise that the fight against Covid-19 has to be more focused now,” Modi said, suggesting a more granular planning beyond May 17, when the current phase of lockdown ends. “We now have reasonably clear indication as to the geographical spread of the pandemic in India, including the worst-affected areas. Over the past few weeks, officials have understood operating procedures in a time such as this, right up to the district level,” he said, indicating a more decentralised approach to fighting the virus. “I want states to make a blueprint on how to deal with various nuances during and after the gradual easing of the lockdown.” The Centre indicated that an economic package for the states was on the anvil, and the PM expressed the need to strengthen health infrastructure with onset of monsoon round the corner. He acknowledged that the next challenge was to prevent the virus from “spreading to rural areas”. The fear of spread with the return of Indians stranded abroad was also flagged. A government statement issued after the meeting acknowledged the CMs suggested support to MSMEs, infrastructure projects like power, easing of interest rates on loans, and assured market access to agricultural produce. Sources said the Centre will only issue broad guidelines, devolving decision making — on identifying zones and economic activities that could be allowed — to state governments and district administrations. “Even as we look at the gradual withdrawal of the lockdown, we should remember that till we do not find a vaccine or a solution, the biggest weapon with us to the fight the virus is social distancing.”

The PM said the World will be “pre-Corona, post-Corona just like the case of the World Wars.” Suggesting that people needed to learn to live with the virus, Modi said the new way of life would be on the principle of “jan se lekar jag tak”, from an individual to the whole of humanity. This was the fifth such interaction between Modi and the CMs since the lockdown was enforced on March 25, but it was different as the PM said he would first listen to everyone. On a day that saw the highest one-day spike in Covid-19 cases, at least six CMs opposed resumption of train services. However, Modi told them it was only human to want to be with families in moments of crisis and they would have to be given the option of going home if they wanted to. He, however, said all routes will not be resumed. The Indian Railways has started a special passenger train service from May 12 and has said it would ramp up the service gradually.

Tamil Nadu’s EK Palaniswami said air and train services should not be resumed to his state before May 31, pointing to the increase in coronavirus positive cases in Chennai. Haryana, Assam, and Chhattisgarh CMs also opposed resumption of train services.

Telangana CM K Chandrasekhar Rao also opposed resumption of rail services, pointing out that Covid-19 infections are concentrated in cities like Delhi, Mumbai, Chennai, and Hyderabad. “It is also difficult to put all those who travelled by trains under quarantine,” he said.

Maharashtra’s Uddhav Thackeray, Tripura’s Biplab Deb, and Andhra Pradesh’s Y S Jaganmohan Reddy said they wanted some public transport to start. Kerala’s Pinarayi Vijayan wanted states to take a call on allowing public transport and movement of people.

If Punjab’s Amarinder Singh said states should be allowed to do “microplanning”, Delhi’s Arvind Kejriwal asked for all areas in the capital, barring containment zones, to be opened up for normal activities.

West Bengal CM Mamata Banerjee accused the Centre of playing politics, eroding federalism and bulldozing states. She also said that though she had flagged the state’s requirements at many meetings, the Centre had not helped Bengal. In a marked departure from others, Gujarat CM Vijay Rupani denied it had asked the Centre to extend the lockdown and said the state would be guided by the Centre. The states spoke in one voice about their desperate need for funds, including pending goods and services tax compensation.

Maharashtra, Thackery said, had a unique problem: because of the imposition of the code of conduct, crop loans and the state’s loan waiver scheme had not reached all farmers. A directive from the RBI was needed in this regard, he said.

Odisha’s Naveen Patnaik suggested that for rebooting economic activities, the Centre could come up with a national standard operating procedure. “As the fight is going to be long, it is important that we involve Panchayats for a system-based response,” he said.

With inputs from Aditi Phadnis, Archis Mohan, Dasarath Reddy, Vinay Umarji, T E Narasimhan & Jayajit Dash

Source: Business Standard

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Balance Covid-19 fight with need to revive economy: Modi tells CMs

Economic activities in India are set to "gather steam", Prime Minister Narendra Modi told chief ministers on Monday, while asserting that the country will have to devise a "balanced strategy" to revive the economy and deal with Covid-19 with a sharp focus on ensuring that rural areas remain free from the pandemic. The thrust of the video conference with all state chief ministers was to chalk out a comprehensive roadmap, with a focus on strengthening the Covid-19 containment strategy and stepping up of economic activities in a calibrated manner as the 54-day nationwide lockdown nears an end. India is under a lockdown since March 25 which is scheduled to end on May 17. During the meeting, which lasted for nearly six hours, Modi and the chief ministers held extensive discussions on various aspects of the situation arising out of the pandemic and the nationwide lockdown, with the prime minister telling them that the future path for the country will be determined on the basis of the suggestions by the states. According to official sources, Modi told the chief ministers that the biggest challenge for the country will be to ensure that the infection does not spread to rural India following relaxation in lockdown norms which included allowing movement of migrant workers. At the same time, he emphasised that India will have to devise and implement a "balanced strategy" to deal with the pandemic and step up the economic activities in a gradual manner. Noting that slowly but surely, economic activities have started in several parts of the country,the prime minister said in the coming days, the process will gather steam. The interaction comes in the midst of growing demands by states, industries, workers and several political leaders to withdraw the lockdown from non-Covid areas as it has adversely impacted the economy and livelihoods of a large section of people. According to a Delhi government official, during the interaction, chief minister Arvind Kejriwal said barring containment zones, economic activities should be allowed to resume in the national capital. "During the interaction, the chief minister said economic activities should be allowed to resume in Delhi, except in Covid-19 containment zones," a source told PTI. Punjab Chief Minister Amarinder Singh pitched for the extension of the coronavirus lockdown, but demanded a carefully crafted exit strategy, including fiscal support to states. In view of the increasing number of coronavirus cases, continuation of the lockdown was needed, Singh said, adding the decision on designating red, orange/yellow and green zones should be left to the states, which are more cognizant of the ground realities. The exit strategy should consider and focus on fiscal and economic empowerment of the states, the Punjab chief minister said. In the conference, Tamil Nadu Chief Minister K Palaniswami came out against the resumption of flight and passenger train servicestill May 31, citing increase in the number of coronavirus cases. Maharashtra Chief Minister Uddhav Thackeray urged Modi to show "specific and concrete direction" on the lockdown, a state government official said. During the interaction, Modi also appreciated the role played by the states in the fight against the pandemic, and said the entire world is of the view that India has been able to successfully protect itself from the pandemic, according to official sources. The "problems" have increased wherever the social distancing norms were not followed or there has been laxity in implementation of the lockdown guidelines, Modi told the chief ministers. Reacting to the Centre's decision to resume a limited number of passenger services from Tuesday after an almost a 50-day hiatus, West Bengal chief minister Mamata Banerjee said on one hand, it wants strict enforcement of the lockdown, on the other, it is resuming train services. According to officials, Modi said it was essential to make best efforts to ensure that people stay where they were during the lockdown, however, in times like these people wish to go home and therefore, a change in decision had to be made. Going forward, the prime minister said, the road ahead should focus on reducing the spread of the infection and ensuring that all precautions are taken by people including social distancing norms by following the mantra of "do gaz doori (six feet apart)'. He said the Centre now has a reasonably clear indication about the geographical spread of the pandemic including the worst affected areas which is helpful in containing the pandemic. The interaction was attended by Defence Minister Rajnath Singh, Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Health Minister Harsh Vardhan among others. The last interaction the prime minister had with the chief ministers was on April 27. And days after the meeting, the central government had extended the lockdown by two more weeks till May 17 to arrest the spread of the virus, but gave several relaxations in economic activities and movement of people.

Source : Business Standard

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Centre to resume trade with Bangladesh via rail route

The Centre has decided to resume trade of essential items with Bangladesh via the rail route after the West Bengal government refused to allow goods vehicles through the India-Bangladesh land borders amid the Covid-19 pandemic. ET has learnt that the first consignment of over 2,000 tonnes of onions is on its way to Bangladesh, which will help bring down onion prices in that country during the ongoing Muslim holy month of Ramadan. The consignment, from Maharashtra, will reach Bangladesh in about 56 hours, sources said, adding that India will send additional consignments also via rail. The means to trade with Bangladesh for food items will not only keep inflation down but also enable items to reach Bangladesh in better condition than via road, sources pointed out. The bulk of India’s trade with Bangladesh is road based and goes through West Bengal. But sources said the Centre is keen to trade with Bangladesh in future via rail, which is a smooth and cost effective mean, and in which the state government has no role as there is no involvement of the local administration. The West Bengal government had last month stopped the movement of goods to Bangladesh via the Petrapole land border, claiming “local emotive issues” and the fear of contagion among the people of the state. This led union home secretary Ajay Bhalla to write to West Bengal chief secretary RajivaSinha, saying “unilateral action on the part of the government of West Bengal to stop cross-land border movement of essential goods would have larger implications for the  for the Indian government with regard to its legally binding international commitments”. In case of Nepal and Bhutan, bilateral trade takes place through various border crossings, but a good chunk goes through Jaigaon in West Bengal for Bhutan, and Panitanki in West Bengal for Nepal. “Despite the challenges and concerns about public health, the governments of UP, Bihar, Assam and Tripura are working to ensure that India's unavoidable obligations to its neighbours, especially landlocked countries, are fully met,” a source told ET on the condition of anonymity. India has over 4,000 km of land border with Bangladesh, 1,751 km with Nepal, 1,643 km with Myanmar and 699 km with Bhutan. Bangladesh-Bhutan-Nepal-India or the BBIN formation and re-invigoration of BIMSTEC (the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, a grouping of seven regional nations in South and Southeast Asia) has further enhanced possibilities of regional trade via the land route and coasting shipping.

Source: Economic Times

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No increase in lease rent for SEZ units in FY21 due to coronavirus: Centre

And payment of lease rent of the first quarter is to be deferred up to July 31, 2020, for all SEZ units

"The deferment may not invite any interest thereof," the Ministry of Commerce and Industry communication said. The Centre on Monday gave interim relief to Special Economic Zone (SEZ) units from any increase in lease rent on account of Covid-19 outbreak. As per an official communication from the Ministry of Commerce and Industry, the relief measure was instituted in consultation with the Department of Expenditure on account of the Covid-19 outbreak. Consequently, there will not be any increase in the lease rent for the SEZ units for the FY 2020-21 and payment of lease rent of the first quarter is to be deferred up to July 31, 2020, for all SEZ units. "The deferment may not invite any interest thereof," the Ministry of Commerce and Industry communication said. "Accordingly, DCs (development commissioners) are requested to take necessary action on the matter. DCs are also requested to advise developers of state government/private SEZs to consider similar relief measures in their zones."

Source: Business Standard

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Customs clears Rs 2.14 lakh cr worth import orders, collects Rs 28,810 cr duty in 49 days

The Customs department cleared over Rs 2.14 lakh crore worth imports and collected Rs 28,810 crore of duty during the lockdown period. Giving details of Exim trade between March 23 to May 10, the Central Board of Indirect Taxes and Customs (CBIC) said over 2.90 lakh 'Bill of Entry' were filed by importers, while exporters filed 2.85 lakh 'Shipping Bills'. Import value during the period stood at Rs 2,14,710 crore, while duty collected was Rs 28,810 crore, CBIC said in a tweet. It said over 2.47 lakh 'Let Export Order' were given, while export benefits disbursed stood at Rs 7,055 crore. "CBIC has been leveraging Technology to promote Ease of Doing Business and hassle free trade during lockdown period while ensuring compliance with #COVID19 precautions. #NationalTechnologyDay," CBIC tweeted.

Source: Economic Times

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FICCI writes letter to Finance Minister Nirmala Sitharaman seeking fiscal support for the MSME sector

Industry body FICCI has sought Rs 4.5 lakh crore in fiscal support for the MSME sector, saying companies need it in addition to the Rs 2.5 lakh crore stuck in refunds and other government dues to tide over the crisis due to the lockdown. In a letter to finance minister Nirmala Sitharaman, the Federation of Indian Chambers of Commerce & Industry (FICCI) sought immediate support and additional funds for the vulnerable sections of society and micro, small and medium enterprises (MSME) to help them get back on track. “Additional fiscal support is required for vulnerable communities over and above the sum provided for in earlier announced ‘Garib Kalyan Yojana’, fiscal support to MSMEs for getting them back on track, upgradation of healthcare infrastructure to effectively deal with current situation, and support for sectors that have taken maximum hit, like aviation and tourism,” FICCI president Sangeeta Reddy said in the letter dated May 11. As per the suggested support package, banks would require Rs 10,000 crore as a liquidity bridge to restructure or provide new loans to large companies whose balance sheets have been impaired by the impact of Covid-19. Additionally, banks would need Rs 40,000 crore in the form of guarantees over a four-year period to enable them to extend loans, Reddy said. This would help companies and revive the supply chains, which largely consist of small and medium-sized enterprises (SMEs). The letter also pitched for a ‘Bharat Self-Sufficiency Fund’ that can be provided in tranches to further innovation, construction and manufacturing to take advantage of the disruption in global supply chains.

Source: Economic Times

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NDMA(MHA) issues guideline on restarting manufacturing industries after the lockdown period

Union Ministry of Home Affairs (MHA), has issued detailed guidelines under the Disaster Management Act, 2005, on restarting manufacturing industries after the lockdown period.  In early response to COVID-19, nationwide lockdown was ordered with effect from 25th March. As the lockdown is being gradually released in some zones, certain economic activities are being permitted as per NDMA orders No.1-29/2020-PP dated 1st May 2020 and MHA order No. 40- 3/2020-DM-I(A) dated 1st May 2020. Due to several weeks of lockdown and the closure of industrial units during the lockdown period, it is possible that some of the operators might nothave followed the established SOP. As a result, some of the manufacturing facilities, pipelines, valves, etc. may have residual chemicals, which may pose risk. The same is true for the storage facilities with hazardous chemicals and flammable materials.

National Disaster Management Authority has issued -

1. Guidelines on Chemical Disasters, 2007

2. Guidelines on Management of Chemical (Terrorism) Disasters, 2009 and

3. Strengthening of Safety and Security for Transportation of POL Tankers,2010, which are relevant for chemical industries. The Manufacture, Storage and Import of Hazardous Chemical Rules, 1989 under Environment Protection Act, 1086 provide the statutory requirements for these industries. When Lockout/Tagout procedures are not in place, many energy sources can prove to be hazardous to operators/supervisors who are servicing or maintaining electrical, mechanical or chemical equipment. When heavy machinery and equipment are not maintained periodically, they can become dangerous for the operators/engineers.

Combustible liquids, contained gaseous substances, open wires, conveyor belts and automated vehicles make manufacturing facilities a high-risk environment. Improper enforcement of safety codes and improperly labelled chemicals can further pose serious health hazards. When an unexpected event occurs, managing rapid response becomes challenging. In order to minimize the risk and to encourage a successful restart of the industrial units, the following guidelines are being issued. State Governments shall also ensure that the off-site disaster management plan of the respective Major Accidental Hazard (MAH) units are up to date and preparedness to implement them is high. It is also advised that all the responsible officers of the district shall ensure the Industrial On-Site Disaster Management Plans are also in place and cover Standard Operating Procedures for safe re-starting of the industries during & after COVID 19 lock down.

http://164.100.117.97/WriteReadData/userfiles/MHA%20Detailed%20Guidelines%20for%20manufacturing%20industries.pdf

Source : PIB

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Govt mulls credit guarantee scheme for loans for payment of wages by MSMEs

As part of a stimulus package for the coronavirus-hit economy, the government is working on a credit guarantee scheme to enable banks to provide additional 10-15 per cent working capital to MSMEs for payment of wages, sources said. Currently, banks are offering an extra line of credit of 10 per cent based on working capital limits, which the government intends to increase further. Since units are closed due to lockdown and there has been no operation for the past two months, most micro, small and medium enterprises (MSMEs) do not have money for paying wages and financial assistance for them is under consideration of the government, the sources said.

Source: Economic Times

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Export sops in the works

A senior commerce ministry official said the package would be examined by the finance ministry and the PMO before it is approved. The commerce ministry has lined up a revival package for exporters, which includes greater incentives on existing schemes, extension of the interest subsidy scheme, amnesty on loan defaults and sops for farm exports. The Covid-19 pandemic and the ensuing lockdown in the major export markets have led to the cancellation of orders with plants and machinery lying idle and minimum orders placed for the future, according to the Export Promotion Council of EoUs and SEZs. A senior commerce ministry official said the package would be examined by the finance ministry and the PMO before it is approved. They said due to the dip in revenue collection, the finance ministry is cautious in providing sops, which would result in a significant revenue outgo. Officials said the government was also examining the request of units in SEZs to sell their products in the domestic market without the payment of customs duties. The government should allow SEZs to sell in the domestic market after they pay the duty on the raw materials — the SEZs are exempted from paying this levy — allowing them to continue operations, utilise machinery and engage their workforce, which are lying idle, the council has said in a letter to commerce minister Piyush Goyal. The SEZs however, want, the customs duty to be waived. Under SEZ Act 2005, SEZs can sell in domestic tariff area on payment of customs duty, which make their products uncompetitive. The exporters want the government to extend the interest subsidy scheme, under which they get 3 per cent to 5 per cent subsidy on their loans. The five-year scheme expired in March, and the government has not extended the scheme even as it extended the Foreign Trade Policy, which had also lapsed in March. The subsidy scheme covers 416 tariff lines, many of them labour-intensive sectors such as readymade garments, automobile parts, processed agriculture/food items, handicrafts glass and glassware, medical and scientific instruments and pharmaceuticals. The scheme also covers all items exported by the MSME (micro, small & medium enterprises) sector. “Exporters from diverse sectors, be it textiles, garments, handicrafts, leather or engineering items, have been seeking relief, such as higher sops and easier credit, to help them survive the crisis,” the official added. While the commerce ministry has said the popular Merchandise Export Incentive Scheme will continue at least till December and may get extended, it could now include higher incentive rates. There is a big demand for an amnesty scheme as beneficiaries of certain promotion schemes have not been able to fulfil their obligations because of the fall in global demand, they said. Agriculture exports, which have witnessed a surge in demand during the pandemic, may also attract incentives. Exports plunged 34.57 per cent in March to $21.41 billion as orders started declining because of the global pandemic. In April-May, exporters fear the situation is likely to deteriorate further following the nation-wide lockdown and a large-scale cancellation of global orders.

Source: The Telegraph

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Maha govt allows 12-hour shifts in factories facing labour shortage

Maharashtra government has allowed 12-hour work shifts until June 30 in factories across the state facing a shortage of labourers. The order issued by Deputy Secretary (Labour) stated that factories are being permitted to allow 12-hour work shifts with certain riders, such as the factories should pay double the regular wages to the labourers for the additional four hours.

Source: Inshorts

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India may set 10% beneficial ownership cap for FDI flowing from 7 countries

The 10% threshold is in line with the rules for significant beneficial owners under the Companies Act, 2013. India is likely to set a 10 per cent ‘beneficial ownership’ cap for foreign direct investment (FDI) flowing from seven bordering countries including China. Beyond this, a government nod would be required for any investing entity or individual from these nations. The 10 per cent threshold is in line with the rules for significant beneficial owners (SBOs) under the Companies Act, 2013. According to these norms, companies must take necessary steps to identify such owners if they don’t reveal themselves. SBOs, under this definition, are mandatorily required to make.

Source: Business Standard

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Karnataka government conditionally permits garment units to operate in red zones

The government had recently allowed certain industrial activities other than in the containment zones to operate, while relaxing the COVID-19 induced lockdown in the state. The Karnataka government has allowed garment units in red zone districts, but outside containment zones, to resume operations with one third of the workforce. Chief Secretary T M Vijay Bhaskar in the May 8 order, said all recognised garment factories having an Importer- Exporter Code (IEC) and those registered with the Apparel Export Promotion Council (AEPC) can start operations with one third of the total workforce in red zone districts, but outside containment zones. It said the permission is subject to following of the Standard Operating Procedures. Currently Bengaluru urban, Bengaluru rural and Mysuru are the red zone districts in the state. The government had recently allowed certain industrial activities other than in the containment zones to operate, while relaxing the COVID-19 induced lockdown in the state. During the earlier phases of lockdown, only those garments involved in the manufacture of Personal Protective Equipment (PPE) kits for front line COVID warriors were allowed to operate.

Source: Economic Times

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Covid fallout: Sinking trust in world trade

As China falters to provide smooth supply of intermediate products to feed the global supply chain, the future of global trade has come under threat. Global confidence in trade and integration has dwindled with Covid-19, which is disrupting trade and economic potentiality of not only individual countries but also regional groupings and world economy. The most debilitating impact of this pandemic is the dislocation in the global supply chain. As China falters to provide smooth supply of intermediate products to feed the global supply chain, the future of global trade has come under threat. China accounts for one-fifth of global manufacturing. Intermediary products produced in China are in categories of electronics, cars, machinery, textiles. Non-involvement of Chinese inputs from these supply chains, in some instances, will lead to production coming to a grinding halt, as was the case with Hyundai in South Korea. In other instances, alternatives will be found but they may be suboptimal and lead to lower volumes of production with higher cost—and will embed higher costs throughout the supply chain and could ultimately result in higher inflation.The picture is equally grim for countries that supply intermediary products to China’s shut factories. The two economies that are most affected are Taiwan and South Korea; their top export to China is electronic integrated circuit, which accounts for 5% of Taiwan’s GDP and 2% of South Korea’s. The virus has been disruptive to services areas such as tourism, temporary movement of skilled workers and movement of professionals delivering expertise and advisory services. Chinese tourists travelling to Southeast Asia have dropped; in countries such as Thailand, Chinese tourists account for 2.7% of GDP. A long-term consequence of Covid-19 might be its impact on the already faltering confidence in trade. Prior to Covid-19, there was some semblance of trade conflict and trade skirmishes, but business and government had never lost hope in trade and integration. They had confidence in trade, in its ability to deliver mutual benefits, as trade grew roughly twice the rate of global GDP growth. But now this confidence in the benefits of trade and integration has suffered several blows. The latest is the global crude oil prices (hitting below zero), followed by twin crises of demand and supply due to Covid-19. This combination threatens to destroy all possibilities of regaining the momentum of trade and integration. But this perception didn’t spring up overnight. Consider what immediately preceded Covid-19? Global steel and aluminium tariffs imposed by the US in 2018 were a shock to the global trade system and produced almost immediate in-kind retaliation. The escalating US-China trade war began to ramp up later that year, taking the average US tariff on Chinese imports from 3% at the onset to almost 20% now. China’s exports to the US dropped 12.5% last year, while China’s imports from the US plunged 20.9% in 2019 from a year earlier, according to data from China’s General Administration of Customs. The US continues to weigh other substantial trade actions that will beget commensurate retaliation. Given this, it is perhaps unsurprising that, last year, global trade suffered its worst performance ever outside a recession, growing by only 1%. These bilateral trade tensions and disputes are unfolding as the multilateral trade system is, to a large extent, simply proving to be futile or breaking down. In the quarter century of its existence, the WTO has failed to conclude even a single round of multilateral trade negotiations, and its dispute settlement function has been derailed by an impasse over appellate judges. If we wish to ensure sustainability of trade, the challenge will be to recognise and confront the new and uncomfortable realities of imbalanced trade outcomes, rather than rely on assumptions, structures and conventional wisdom that have defined our approach to trade in the post-war era.

Source: Financial Express

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Covid-19 And Textile Industry

Working on finishes below during development and production will surely help to build up trust with the consumer. The world is challenging Covid-19 Pandemic, which has not left any part of the world to face it. One side lives are been lost as a result of Pandemic, other largest consequence that the world is facing big downfall in the economy too. This economic crisis has attacked various business in and around the world. All sort of Travel, Hospitality, Hotels, Restaurants, Bar, Package food, retail, e-commerce, Automobile etc. One of the severely affected industry is Textile Manufacturing too. Which is the second largest employment creating industry after agriculture? If we see below chart except people working in agriculture, rest all would be affected due to pandemic situation around the world. Means more than 5 billion people are living with an unknown future. This is the current panic situation ahead of the whole world. The slew of measures being taken by the government to fight the coronavirus pandemic has put textile manufacturers in a spot. While on the one hand, the sector is struggling to continue with its production schedule as offtake has almost come to a halt, on the other the pressure to repay its dues to banks is alarming. The textiles industry in India was estimated at more than US$ 100 billion in January 2020. It is the second-largest employer after agriculture, providing employment to over 45 million people directly and 60 million people indirectly. These include manufacturers, suppliers, wholesalers and exporters of Cotton Textiles, Handlooms, Woolen Textiles as well as those engaged in the manufacturing of textile machinery and equipment, dyes and raw materials, delivery of finished textiles, fabrics and garments. While the yarn is mostly produced in the mills, fabrics are produced in the Shuttleless looms, power loom, knitting m.c's and handloom sectors. The textile industry indirectly contributed around 5 per cent to GDP. The sector contributed around 14 per cent to the overall Index of Industrial Production (IIP). Among the massive impact that coronavirus has had on the economies, fashion is one of the hardest-hit industries. Stating that the situation is taking a turn for the worse due to closure of malls and retail showrooms, it’s said, “The textile and clothing sector is labour and capital intensive. A majority of workers are migrant labourer’s; they have now started to return to their native places. With the total disruption in workflow and production schedule, the industry is facing its worst-ever crisis. In the export area, now that Covid-19 has taken over key buying areas like Europe and the USA the impact will be severe especially on the suppliers of luxury fabrics and embroidery. For suppliers to fast fashion/mass retail, there might still be hope in the aftermath but initially, at least there will be smaller orders and very tight margins. Coming to domestic suppliers. Depending on how the Covid-19 scenario evolves in India, we are looking at very low consumer sentiment and therefore much less consumption this year. Retailers and brands have already started halting production lines, delayed season releases and cut buying budgets to prepare for these eventualities. Of Course, with few garments being made there will be less demand for fabrics so overall the situation is looking gloomy.

• The economic carnage brought forth by forced shutdowns and changes in consumer attitudes to discretionary purchases, such as clothing, may lead to the winnowing out of weaker players.

• Experts are worried about the impact that this black swan event will have on the domestic apparel industry in India.

 According to specialists, once the dust settles on the immediate crisis, the apparel industry faces a recessionary market. One of the reasons for this is the prospect of long-lasting changing consumer behaviour due to social distancing and the preference for sanitized products. Will consumers want to march into crowded malls to do their shopping, as they nonchalantly did before? Moreover, the most critical part of an apparel purchase in a market like India is trial. As Spanish sustainable textile technology provider Jeanologia’s founder Enrique Silla explicates; after the Covid-19 crisis is over, consumers will be uncomfortable to touch and feel garments in retail stores, jittery about who would have touched it before them. He suggests, “The world will not be the same after Covid-19. For the textile industry is very important to recover the trust of the consumer. Only through sanitizing, brands will be able to speed up regaining consumers’ trust, guaranteeing the fast recovery of our industry.” Further, as per experts, it is being widely speculated that a significant number of people in the world are bound to lose their jobs (and are already being laid off by their employers) as a means to cut costs amid the health exigency. In fact, according to a recent note from the International Labour Organisation titled ‘Covid-19 and the World of Work: Impact and Policy Responses’, the coronavirus crisis will have a far-reaching impact on labour market outcomes. The UN body estimates that the virus will be pushing millions of people into unemployment, underemployment and working poverty, with almost 25 million jobs being lost worldwide as a result of Covid-19. This would mean income losses for workers and subsequently translate into a fall in consumption of non-essential goods and services like garments, in turn affecting the prospects for businesses and economies. There will be no urgency to buy apparel as consumers are primarily focusing on grocery, medicines and staples purchase. This is also due to the uncertain economic scenario prevailing all over the world, limited product options and late & expensive deliveries, reduction in occasions to go out & hence the need for new clothes. A recent report calibrated by Wazir Advisors – Impact of COVID-19 Scenario on European and the US Apparel Market – estimates that the combined apparel consumption of EU and the US might fall to about US$ 308 billion, 40-45% lower than the 2020 projected consumptions. This will be a tough time for Indian apparel exporters as about 60% of the country’s apparel exports are destined for EU and the US markets. Without fresh export orders and a restarting of the economy, many garment producers will be either forced to shut shop entirely or inflict stringent cost-cutting measures, including layoffs. CMAI anticipates as many as one crore job cuts in the textiles sector. Add to that the fact that last month, millions of migrants were compelled to flee from cities to their homes to evade death from hunger due to the plunge in economic activity. From manufacturing through to retail, the garment industry employs close to 25 million people. If the current situation continues beyond a month from now, nearly a quarter of the jobs in the industry will be lost, according to the Clothing Manufacturers’ Association of India (CMAI). Recovery, the CMAI predicts, will take at least 10 months to a year. Without government support, it adds, the industry cannot survive this unprecedented crisis. However, on the brighter side, a number of countries around the world, such as the USA & Japan, have decided to learn lessons from this calamity and look for alternate production sources other than China. India should capitalize on this situation and present itself as a credible alternative to increase its textile and apparel exports share. Further, manufacturers need to maximize their internal capabilities and focus on building their efficiencies if they want to emerge as a better option than competitors like Bangladesh, Vietnam and Cambodia. They must also incorporate digital strategy in the buying process. They should also think about markets other than the US & Europe such as Japan and South Korea. The biggest shifts in fashion have historically not come from runway trends but followed events such as wars that disrupt society on a huge scale, says Kimberly Chrisman-Campbell, a fashion historian and author of Worn on This Day: The Clothes That Made History. Their effects ripple through supply chains, the economy, social behaviour, and daily life, often accelerating and normalizing changes already underway. Now the demand for Hygiene textile would be very high. No product whether its apparel wear or home textiles, knitted or woven, adults or kids, formal or casual, will have to have inbuild Hygiene in it. This trust-building up will be key with consumers to regain business at the earliest. Working on finishes below during development and production will surely help to build up trust with the consumer.

Apparel and home textile Industry would focus on a combination of below finishes

  • Anti microbial/Anti viral/ Anti Bacteria
  • Water repellents
  • Hydrophilic
  • Wrinkle-free
  • Anti-odour, Anti Sweating
  • Anti-pilling(to avoid entrapping of Microbial)
  • PU coated Denims
  • Soil release and few more

Source: Business World

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Global Textile Raw Material Price 12-05-2020

Item

Price

Unit

Fluctuation

Date

PSF

803.11

USD/Ton

0%

12-05-2020

VSF

1240.98

USD/Ton

0.92%

12-05-2020

ASF

1582.95

USD/Ton

0%

12-05-2020

Polyester    POY

751.64

USD/Ton

-1.30%

12-05-2020

Nylon    FDY

1889.67

USD/Ton

0%

12-05-2020

40D    Spandex

4019.07

USD/Ton

0%

12-05-2020

Nylon    POY

5189.54

USD/Ton

0%

12-05-2020

Acrylic    Top 3D

987.14

USD/Ton

0%

12-05-2020

Polyester    FDY

1741.60

USD/Ton

-0.40%

12-05-2020

Nylon    DTY

1748.65

USD/Ton

0%

12-05-2020

Viscose    Long Filament

930.73

USD/Ton

-0.75%

12-05-2020

Polyester    DTY

2185.81

USD/Ton

0.65%

12-05-2020

30S    Spun Rayon Yarn

1734.55

USD/Ton

0%

12-05-2020

32S    Polyester Yarn

1353.79

USD/Ton

0%

12-05-2020

45S    T/C Yarn

2150.56

USD/Ton

0%

12-05-2020

40S    Rayon Yarn

2016.59

USD/Ton

0%

12-05-2020

T/R    Yarn 65/35 32S

1903.77

USD/Ton

0%

12-05-2020

45S    Polyester Yarn

1649.93

USD/Ton

0%

12-05-2020

T/C    Yarn 65/35 32S

1551.22

USD/Ton

0%

12-05-2020

10S    Denim Fabric

1.12

USD/Meter

0%

12-05-2020

32S    Twill Fabric

0.64

USD/Meter

0%

12-05-2020

40S    Combed Poplin

0.93

USD/Meter

0%

12-05-2020

30S    Rayon Fabric

0.49

USD/Meter

0%

12-05-2020

45S    T/C Fabric

0.64

USD/Meter

0%

12-05-2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14102 USD dtd. 12/05/2020). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Trump rules out reopening negotiations on trade deal with China

 

WASHINGTON: President Donald Trump has said he is "not interested" in reopening negotiations on the trade deal with China, days after the US warned Beijing of “very significant consequences” for not honouring the bilateral agreement early this year to end their bruising trade war. Trump's remarks came in response to a question on a report in Hong Kong's South China Morning Post which said that China would like to reopen negotiations on the trade deal to make the terms more favourable to Beijing. “Is this something you'd be interested in doing?” he was asked. “No. Not at all. Not even a little bit. No, I'm not interested. We signed the deal. I had heard that, too -- they'd like to reopen the trade talk to make it a better deal for them,” Trump told reporters during a news conference in the Rose Garden of the White House on Monday. China, Trump said, has been taking advantage of the US for many decades because his predecessors allowed that to happen. US Treasury Secretary Steven Mnuchin on May 4 warned that if China does not honour the trade agreement, "there would be very significant consequences in the relationship and in the global economy as to how people would do business with them." Trump too had earlier said that he will terminate the trade deal with China, if they do not honour its provisions in the wake of the coronavirus pandemic that originated in the country. Under the US-China trade deal signed in January, Beijing agreed to buy at least USD 200 billion more in US products and services in 2020-2021, the two-year period than it did in 2017. However, the US-China Economic and Security Review Commission in a report said that China could invoke a clause in the agreement that allows for fresh trade consultations between the two countries "in the event of a natural disaster or other unforeseeable event".The coronavirus pandemic has wreaked havoc across the world, ravaging economies and increasing unemployment. The global health crisis has left a record 33 million workers jobless in the US. According to the Johns Hopkins University data, over 4 million people are infected by the COVID-19 and more than 280,000 people have died worldwide. The US is the worst-affected country in the world with over 1.3 million infected cases and more than 80,000 deaths. Responding to another question, Trump said that there was nothing new in the news reports that Chinese hackers are attempting to steal American technology related to vaccine research. “So, what else is new with China? What else is new? Tell me. I'm not happy with China. They should have stopped this (spread of coronavirus) at the source. They could have stopped it right at the source. So now you're telling me they're hacking? So, I just say this: What else is new? We're watching it very closely,” he said. China has rejected the US allegations that it tried to cover up the COVID-19 cases. According to news reports, the FBI and the Department of Homeland Security are planning to issue a public warning about China's attempts to steal research on coronavirus treatments. “I've said it over and over again, there is something deeply suspicious about China's role in this pandemic,” said Mike Rogers, House Homeland Security Committee ranking member. “Now, China is trying to hack into our systems and to steal our information on COVID-19 vaccines, treatments, and testing. It's outrageous and it's corrupt. We must take all steps necessary to protect our intellectual property from getting into the wrong hands, we must ensure that they have the necessary resources and authorities to do so,” Rogers said. Meanwhile, the Trump administration on Monday asked the federal retirement funds to not to invest in the Chinese equities.

 Source: Business Standard

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Fresh tariff threat adds woes to US economy

While China, the world’s second largest economy, has gradually returned to normal as the COVID-19 epidemic has subsided in the country and it has offered a helping hand to overseas markets by donating and exporting medical supplies to combat the pandemic, the Trump administration is wracking their brains seeking ways to redirect its own mismanagement of the coronavirus spread toward China as if things are not bad enough in the US. Top Chinese and US trade negotiators will speak as soon as next week on progress in implementing the phase one trade deal after US President Donald Trump threatened to “terminate” the agreement if China wasn’t adhering to the terms, Bloomberg reported Thursday. Trump on May 1 threatened new tariffs on China and said his administration had crafted retaliatory measures over the COVID-19 outbreak. On Wednesday, he said he would be able to report in about a week or two whether China is fulfilling its obligations under the phase one trade deal the two countries signed in January before the coronavirus spread globally, Reuters reported. Faced up with mounting pressure to handle the COVID-19 pandemic as US confirmed cases of cononavirus have surged to over 1.2 million, with a death toll of more than 74,000, the highest in the world, as well as the shrinking chances of his reelection, Trump again used the threat of tariffs as his weapon. But this time, the weapon is losing its magic as the pandemic has altered the situation the world’s two largest countries were in during the past two years of the trade war, and China will retaliate if the tariff threats were implemented. New tariffs will only add woes to the already-damaged US economy, experts told the Global Times. China has shown its sincerity and played its part in the phase one trade pact, and has kept an open mind toward a phase two deal. But the US has continued to worsen the political environment for China to do that. Everyone knows implementing an agreement has to be achieved through efforts from both sides, experts said.

Deal progressing

Despite China keeping a low-profile on the progress of the phase one trade deal, the country has been implementing the hard-won agreement even amid the pandemic impact, Song Guoyou, deputy director of the Center for American Studies at Fudan University, told the Global Times Thursday.  “It’s also not necessary to say everything you’ve done,” Song said. Chinese companies bought more than 1.1 million tons of US soybeans between mid-March and late-April, according to Zhang Xiaoping, country director for China at the Missouri-based US Soybean Export Council. The figure shows China’s efforts to carry out the deal, as China usually buys soybeans from Brazil and other South American suppliers starting March. As the COVID-19 pandemic continues to batter US economic activities, more slaughterhouses have been forced to shut down due to the virus infections, risking the US meat supply. The situation could lower China’s meat imports from the US, according to Gao Lingyun, an expert at the Chinese Academy of Social Sciences, who advises the central government on trade policies. China, the world’s top pork consumer, bought $5.05 billion in farm goods from the US in the first quarter of 2020, up 110 percent from last year, including 168,000 tons of US pork, a more than sevenfold increase, Chinese customs data showed in April. Latest data from China’s General Administration of Customs showed on Thursday that China’s imports from the US in April amounted to 64.65 billion yuan ($9.11 billion), a slight decline from March’s 69.07 billion yuan. Exports in April rose to 225.34 billion yuan, up 28 percent month-on-month. “The imports reduction was mainly related with poultry according to real-time monitoring, while exports increased thanks to the surging demand in the US for medical supplies,” Gao said. April is simply “too early” for the US to say that China has not implemented the trade pact. “The phase one agreement also stipulates that the US needs to provide China with a good and convenient execution condition,” Song noted, “However, during the epidemic, the US has failed to fully fulfill its obligations.” If the situation continues to worsen, “more uncertainties on the implementation of the deal may emerge,” he noted. The phase one deal involved a commitment from China to increase its imports of US agricultural products, energy, manufactured goods and services by $200 billion over a span of two years. In exchange, the US halved tariffs on $120 billion in imports from China and canceled tariffs on another $160 billion, even though it retained increased duties on partial Chinese imports. As far as Gao is concerned, Trump’s new threat might indicate that he wants to push the phase two deal with China for more leverage, which will focus on some controversial issues that were left from the first pact, including subsides and China’s state-owned enterprises. “Even if the new tariffs become real, regardless of the approach, it will only add woes to the US economic downturn,” said Gao. The US economy contracted 4.8 percent in the first quarter of 2020, while GDP growth is likely to dive by double digits in the second and third quarters as the number of people applying for unemployment benefits has soared to decades high. The Institute for Supply Management (ISM) Purchasing Managers’ Index for the US last month fell to 41.5 from 49.1 in March, its lowest figure since April 2009. In terms of China’s preparations, Gao said the country has harnessed a mature and quick-response system of countermeasures against the US tariffs based on experiences in the past two years. “From the initial concerns, to finding out the impact of the trade war, then to shifting to the current mind-set of calm and frankness, China has grown,” Gao said.

Unexpected growth

Time is on China’s side. Multinational firms will vote with their feet during and after the epidemic since they would start considering the situation: Who is the first to rebound? The US call to its firms to relocate their supply chain from China would prove fruitless. Thursday’s customs data showed that China’s yuan-denominated exports increased 8.2 percent year-on-year to 1.41 trillion yuan in April, beating market expectations of double-digit negative growth. Imports were recorded at 1.09 trillion yuan, down 10.2 percent on a yearly basis. Economists polled by Reuters had expected exports from China to fall 15.7 percent in April from a year ago, and imports were projected to shrink 11.2 percent over the same period. That would have been the sharpest drop since July 2016. In March, the plunge in China’s imports and exports had eased from the January-February period as exporters rushed to clear a backlog of orders which could not be shipped on time due to production shutdowns. In the first two months of 2020, China’s exports contracted 17.2 percent year-on-year and imports fell 4 percent as the novel coronavirus outbreak battered the country’s economic activities. Liu Xuezhi, a senior economist at the Bank of Communications, told the Global Times Thursday that the unexpected growth in exports is mainly due to a continuous clearing of orders. Additionally, China’s exports of medical supplies to aid other countries and regions combat the COVID-19 pandemic are also surging. In the January-April period, China exported textile products including masks worth 261.3 billion yuan, up 5.9 percent year-on-year, according to customs data. The jump in China’s April exports data was unexpected, indicating that overseas demand for China’s products remains strong despite the COVID-19 impact, while a slump in imports shows domestic demand has yet to recover and needs further stimulus, said Wang Jun, chief economist at Zhongyuan Bank. ASEAN and countries and regions along the routes of the Belt and Road Initiative, which have maintained a sound and stable trade with China amid the pandemic, will help stabilize China’s foreign trade even when the US market withers, said Wang, noting that China’s regional partners will play a more significant role in the post-pandemic period. Exports to ASEAN, China’s largest trading partner, rose 3.9 percent year-on-year in the first four months of the year, while imports from the Asian economic bloc increased by 8 percent on a yearly basis.

Source: Hellinic Shipping News

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Uzbekistan looks to Pakistani ports

Uzbekistan on Thursday formally sought Pakistan’s support for accession to the Quadrilateral Traffic in Transit Agreement (QTTA) in a bid to utilise Karachi and Gwadar ports for its trade operations. The formal request was made by Uzbek Deputy Prime Minister Sardor Umurzakov during a video conference with Adviser to the Prime Minister on Commerce Razak Dawood. Uzbekistan’s Ambassador to Pakistan Furqat Sidikov also joined the meeting held at the Ministry of Commerce in Islamabad. The QTTA is a transit trade deal among Pakistan, China, Kyrgyzstan and Kazakhstan to facilitate the passage of goods and traffic. A road project under the China-Pakistan Economic Corridor will provide access to China and the Central Asian States to Pakistani ports. Responding to the request, Dawood assured Pakistan’s support for Uzbekistan in QTTA. Pakistan plays a central role in the QTTA which is believed to be an alternative route bypassing Afghanistan and relying on the Karakoram Highway via China to reach Central Asian States. Uzbekistan also sought the establishment of Joint Working Group for trade and investment cooperation. An official statement following the meeting said that Uzbekistan requested Pakistan to support its cause in accession to QTTA, and share its experience on achieving the Generalised System of Preferences Plus status. Dawood apprised the Uzbek side that a memorandum of understanding for Pakistan-Uzbekistan Joint Working Group on Trade and Investment will be ready for signing after seeking approval from the cabinet of Pakistan. During the meeting, it was resolved that all out efforts would be made to enhance bilateral trade relations, establishing joint ventures in various areas including agriculture, textile, pharmaceuticals, tourism and construction. Pakistan’s exports to Uzbekistan stood at $13.190 million FY19 as against $9.254m over the previous year. Similarly, Pakistan’s imports from Uzbekistan are very negligible as it stood at $5.449m in FY19 as against $3.640m over the previous year.

Source: Hellenic Shipping News

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South America, Africa: FCCI president calls to focus on unconventional markets

Pakistan must focus on exploiting non-traditional markets during post corona era in order to overcome the huge losses its exports suffered during the lockdown period. In this connection Government and exporters must focus on unexploited South American and African markets. Addressing a meeting of textile exporters, Rana Sikandar-e-Azam Khan President Faisalabad Chamber of Commerce & Industry (FCCI) said that Pakistani commercial sections are working only in 56 countries and hence Pakistani exports are restricted to only these few countries. He told that we must concentrate on non-traditional and unexploited markets to give a quantum jump to the Pakistani exports. Appreciating the proposal of FCCI executive member Engineer Asim Munir to appoint active Pakistani exporters as honorary commercial consoler's in these countries. President said that FCCI has been stressing the need to appoint honorary commercial counselors in uncovered areas; he said that these appointments would be purely on honorary basis and subject to their satisfactory performance. Earlier Engineer Asim Munir told that South America is consistent of 12 countries with huge population and quite stable economies. He told that Pakistan has its trade section only in Brazil while in Argentine; its closed section has just been revived. He told that Colombia is situated in the heart of this continent where visible presence of Pakistani trade section is imperative to make Pakistani exports to its adjoining countries. He said that as Pakistan is facing financial crunch, we must appoint proactive Pakistani exporters for these countries as honorary counselors.

Source: Business Recorder

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UNIDO talks projects in Uzbekistan: investments, modernization, exports

Since 1993, UNIDO has completed around 15 stand-alone projects in Uzbekistan and provided technical assistance and policy advice for national investment promotion, sustainable employment and entrepreneurship development, export-oriented trade, cleaner production, business incubators and enterprise development, Jacek Cukrowski, Chief of the Europe and Central Asia Division of the United Nations Industrial Development Organization (UNIDO) told Trend. Cukrowski added that UNIDO has been actively expanding its activities in Central Asia through various country and regional projects, as well as global forum events. "One of the examples is a recently completed project on regional quality policy (RQP) formulation in the Economic Cooperation Organization (ECO) countries. It resulted in the preparation of a needs assessment of the national quality infrastructure and a document on RQP in the ECO countries. The project also supported capacity building of experts to implement those policies," he said. "Another one of UNIDO's big activities - project "Fostering inclusive and sustainable industrial development in the New Silk Road Economic Belt (NSREB): Leveraging potentials of industrial parks, zones and cities in Azerbaijan, Tajikistan, Turkmenistan and Uzbekistan" was implemented in 2016-2018 in partnership with the Asian Development Bank (ADB). The objective of the project was to enhance inclusive and sustainable industrial development in the New Silk Road Economic Belt. The project facilitated the establishment of the NSREB industrial park knowledge sharing platform and the creation of a strategic and operational framework and action plan for business infrastructure development," said Cukrowski. He also stressed that Uzbekistan is one of the world's leading cotton exporters and ranks third after China and India in global silk production. "While the government places great emphasis on attracting foreign investment, modernization and increasing exports of the silk and textile industries, UNIDO is ready to support this effort," Cukrowski said. He said that currently, there are five pipeline project proposals with a total tentative/planned budget of $13,3 million under the joint consideration by UNIDO and Uzbekistan."

Among the projects are:

Silk processing industry upgrading in Uzbekistan with tentative budget $2 million; Innovative Industrial Park for Human Resources Development in Natural Fibres Industry of Uzbekistan (Textile Industry Skills upgrading in Fergana region of Uzbekistan) with tentative budget $6,5 million; Sustainable upgrading, industrial design and branding for textile and garment industry in Uzbekistan with tentative budget $2,1 million; Establishment of a Subcontracting and Partnership Exchange Program (SPX) in Uzbekistan with tentative budget $700,000; Industrial Policy for Enhanced Productivity and Competitiveness, developed in response to the official request from the Ministry of Innovative Development of Uzbekistan, with a budget of $1.99 million. "To realize these projects, it is important that the Government of Uzbekistan remains committed to drive a funds mobilization effort in cooperation with UNIDO," Cukrowski said. He pointed out that UNIDO will support Uzbekistan's efforts to join the WTO, as well as its efforts to push industrial development. "UNIDO's activities to promote inclusive and sustainable industrial development will help Uzbekistan in building productive and export capabilities which are essential to reap full benefits of future WTO membership. This will stimulate economic growth and job creation, as well as the transition towards resource efficient and clean industrial production", said Cukrowski. UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. Its mandate is to promote and accelerate inclusive and sustainable industrial development in Member States. UNIDO provides a variety of technical cooperation services to promote increased access to energy for productive uses while at the same time supporting patterns of energy use by industry that mitigate climate change and are otherwise environmentally sustainable.

Source: Menafn

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Vietnam: Garment sector focuses on potential markets

Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang has said the sector will focus on new potential markets to achieve an average growth of 6 percent each year during the 2020 – 2025 periods. Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang has said the sector will focus on new potential markets to achieve an average growth of 6 percent each year during the 2020 – 2025 periods. They include members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union – Vietnam Free Trade Agreement (EVFTA), as well as the Regional Comprehensive Economic Partnership (RCEP) in the near future. Giang said the sector’s growth is likely to be 5 percent less than that recorded in 2019 if COVID-19 is under control in the second quarter. According to him, the pandemic afforded businesses a chance to step up digital transformation, and produce masks in large quantity to meet domestic and foreign demand, thus creating jobs and increasing workers’ income. They have also invested in emission-free stages such as fiber production and waterless dyeing so as to meet criteria of the global supply chain. At a conference with the Prime Minister on May 9 morning, VITAS offered suggestions related to taxation and administrative procedures to tackle difficulties faced by firms. It proposed the Ministry of Industry and Trade soon submit the Vietnam textile and garment development strategy till 2025 with a vision to 2035 to the PM for approval. The VITAS also mentioned the planning of major textile industrial zones using concentrated water treatment technology. In order to further boost domestic consumption, it called for raising public awareness of the campaign “Vietnamese prioritise using Vietnamese products”

Source: Vietnam Plus

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