The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 8 MAY, 2015

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2015-05-07

 

Item

Price

Unit

Fluctuation

PSF

1320.01

RMB/Ton

1.77%

VSF

2041.35

RMB/Ton

0.16%

ASF

2482.17

RMB/Ton

0%

Polyester POY

1418.97

RMB/Ton

1.46%

Nylon FDY

3124.19

RMB/Ton

0%

40D Spandex

6542.80

RMB/Ton

0%

Nylon DTY

2677.64

RMB/Ton

0%

Viscose Long Filament

1611.16

RMB/Ton

0%

Polyester DTY

3385.90

RMB/Ton

0%

Nylon POY

5921.23

RMB/Ton

0.28%

Acrylic Top 3D

1660.24

RMB/Ton

0.50%

Polyester FDY

2927.90

RMB/Ton

0%

30S Spun Rayon Yarn

2715.26

RMB/Ton

0.61%

32S Polyester Yarn

2060.98

RMB/Ton

-0.79%

45S T/C Yarn

2993.33

RMB/Ton

0%

45S Polyester Yarn

2208.20

RMB/Ton

0%

T/C Yarn 65/35 32S

2568.05

RMB/Ton

0%

40S Rayon Yarn

2878.83

RMB/Ton

0.57%

T/R Yarn 65/35 32S

2747.98

RMB/Ton

0%

10S Denim Fabric

1.14

RMB/Meter

0%

32S Twill Fabric

1.00

RMB/Meter

0%

40S Combed Poplin

1.36

RMB/Meter

0%

30S Rayon Fabric

0.78

RMB/Meter

0%

45S T/C Fabric

0.79

RMB/Meter

0%

 

Source : Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16357 USD dtd. 07/05/2015)

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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Manmade yarn and fabric industry likely to see growth rate of 5 to 7pc in this year

The manmade yarn and fabric industry likely to see growth rate from five to seven percent in 2015-16, with stability in crude oil prices. However, as Indian synthetic yarn and fabric performance has not been one of the best internationally, the domestic market will see the larger growth.

In 2015-16, demand recovery for manmade filament, fibre, yarn and fabric is likely to be backed by an increase in off take by apparel manufacturers, as per CMIE report. The apparel segment consumes a little more than half of the total synthetic fibre produced by the industry. Manufacturers of home textiles and technical textiles are also expected to increase the usage of synthetic fibres during the year. Also, with crude oil prices expected to remain stable, PTA and mono-ethylene glycol prices are likely to come down, too, leading to a decline in polyester prices by 8 to 12 percent this year. Domestic and international prices of both the polyester raw materials had plunged in the latter half of 2014-15, led by a steep decline in crude oil prices. So, polyester prices had corrected sharply during the period.

In 2014-15, demand for most manmade filament & fibre due to a decline in prices of cotton yarn was low. Also in July 2014 the levy of anti-dumping duty on import of purified terephthalic acid (PTA), a major input, further hit domestic production of polyester filament yarn.

Sanjay Jain, managing director of TT Ltd and vice-president, Federation of Hosiery Manufacturers Association of India said that unlike the seasonality for cotton, synthetic textile products can be produced through the year. Also, there is expected to be more consumer demand for woven and non-woven synthetic textiles, and the industry anticipates equal growth in the synthetic yarn and fabric market in both segments.

According to O P Lohia, chairman, Indo Rama Synthetics (India) Ltd, with markets like Brazil, Turkey and Egypt under pressure for several reasons, demand for polyester yarn and fabric will be under pressure this year. Also, under the government's new import/export policy, while there is a push for polyester exports, almost all forms of exemptions have been removed, making polyester exports uncompetitive. Exports could play spoilsport this year. But if the economy does well, this could go up to double digit growth. But the domestic market is anticipated to see normal growth.

Jyotiprasad Chiripal, director at Chiripal Group said that this year with crude oil prices likely to remain stable at $60-50 a barrel, market demand for polyester expected to see rise by 5 to 7 percent. Chiripal Group has a polyester yarn manufacturing capacity of 200 tonnes a day.

SOURCE: Yarns&Fibers

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FIEO asks government to review FTP incentives for exporters

Expressing concern over declining shipments, exporters body FIEO today asked the government to review the incentives announced in the foreign trade policy.

Federation of Indian Export Organisations (FIEO) President S C Ralhan said the incentives given to exports sector are less than 1 per cent of the country's total exports, which is a "miniscule amount".

Under different schemes, the government has provided incentives worth Rs 17,995.81 crore in 2014-15. It was Rs 14,318.15 crore in 2013-14 and Rs 10,275.5 crore in 2012-13, he said.

The incentives schemes are - Vishesh Krishi and Gram Udyog Yojana, Focus Market/Focus Product/ Market linked Focus Product Scheme, Interest Subvention, Market Access Initiative and Market Development Assistance.

"There is an urgent need to review the benefits announced in the new Foreign Trade Policy to sustain the exports growth in such a situation when global economies are reeling under intense pressure except for few," he added.

He said the percentage of benefits being given should be increased and "if not possible atleast the same may be restored at the same level as earlier".

Ralhan said the reduced export incentives under the Merchandise Export from India Scheme and Service Exports from India Scheme ( SEIS) have hit the exporters badly.

India's exports dipped deeper in the negative zone recording a decline of 21 per cent in March, the biggest fall in the last six years, pulling down the total shipment for 2014-15 to USD 310.5 billion, missing the target.

SOURCE: The Economic Times

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CEPA: India, Korea start talks to cover more manufacturing sectors

Five years after the India-South Korea Comprehensive Economic Partnership Agreement (CEPA) was implemented, the two sides have begun talks to expand the deal to cover more manufacturing sectors despite New Delhi gaining little on the services front.

Sources said India has pitched for easing restrictions on export of diamonds, textiles goods and fruits and vegetables. In return, Korea is seeking lower import duty for nearly 800 items, including auto components, some steel products and electronic goods.

Under CEPA, Korea was to reduce or eliminate duties on 93% of all tariff lines or products, while India had to offer similar concessions for 85% of all tariff lines. Including the sensitive products, India has to lower duties over a nine-year period, compared to seven years for South Korea.

In the meanwhile, India realized that several of its products such as diamonds were not gaining much attraction in the Korean market as Seoul decided to treat the better quality precious stone as luxury goods and imposed higher tariffs. As a result, the government is now pitching for changing rules to ensure entry for diamonds that are cut and polished in India, especially those with higher caratage.

Similarly, sources said, the rules on some of the fruits and vegetables are such that Indian produce is not able to enter Korea.

In case of textiles, it's a story of a missed opportunity as the negotiators didn't push it hard. An analysis by the Apparel Export Promotion Council had shown that only four knitted items were given zero-duty access and their imports then were estimated at $10,000 a year.

So, the government is obviously keen to correct this anomaly. But the India-Korea CEPA is also a story of a missed opportunity on services as trade in several of the sectors, where concessions were negotiated, has been a non-starter given that the mutual recognition agreements are yet to be negotiated. As a result, the gains remain only on paper.

Data on the commerce department website shows that trade with Korea has increased from $467 million in 2009-10 to around $765 million in 2013-14.

SOURCE: The Economic Times

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US-India trade-deficit in March stood at $2 billion

The trade defict between the United States and India stood at $2 billion in March, according to figures released today.

The US Census Bureau and the US Bureau of Economic Analysis, through the Department of Commerce, announced that the goods and services deficit was $51.4 billion in March, up $15.5 billion from February.

March exports stood at $187.8 billion, $1.6 billion more than the February exports. Imports in that month were $239.2 billion.

The March increase in the goods and services deficit reflected an increase in the goods deficit of $14.9 billion to $70.6 billion and a decrease in the services surplus of $0.6 billion to $19.2 billion, the report said.

In the same month the United States' trade deficit with China increased $10.5 billion to $37.8 billion, the data showed. Exports increased $0.4 billion to $9.3 billion and imports increased $10.9 billion to $47.1 billion. The deficit with Japan increased $2.0 billion to $6.3 billion in March.

SOURCE: The Economic Times

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Centre, states agree on free flow of GST credit on inter-state trade

The union and state governments on Thursday finalised the framework for goods and services tax on inter-state commerce (IGST) aimed at removing all irritants that businesses face at present in paying taxes using the credits they have earned on taxes paid previously on raw materials and services.  The framework would be formalised as a central IGST Act.

Sources said the Empowered Committee of State Finance Ministers, which met here, have accepted the report on IGST prepared by Central and state officials and discussed the finer points of the proposed Central enactment on Central GST (CGST) as well as the model state GST (SGST) law that states would adopt. Towards enabling these enactments, the Lok Sabha had on Wednesday passed the Constitution (122nd Amendment) Bill that redefines the taxation powers of the Centre and states.

Kerala finance minister and chairman of the Empowered Committee, KM Mani, said in his opening remarks that the two-day meeting would discuss reports of sub-committees on IGST, GST on imports and issues such as registration of traders, returns, tax payments and refund.

“Broadening of the GST tax base and subsuming various Central and state indirect taxes into GST are expected to be revenue neutral both for Centre and states,” Mani said. Madhya Pradesh finance minister Jayant Malaiya too said the revenue neutral rate of GST ought come down from the 27 per cent discussed earlier. States’ remarks favouring a lower GST rate come in the wake of finance minister Arun Jaitley’s promise in Lok Sabha on Wednesday that the actual GST rate should be lower than 27 per cent.

Mani also said at the beginning of the conference that the enabling legislation specifying the parameters for sharing IGST was a matter of concern.

Later in the day, the Committee approved the IGST report facilitating the union government to levy and collect IGST (which would be equal to the sum of CGST and SGST rates on inter-state supply of goods and services) and its sharing between the Centre and the states as recommended by the proposed GST Council. Consuming states would get the proceeds of the SGST component of it. Manufacturing states will not get any share but would have the right to levy an extra 1 per cent non-Vatable tax.

Sources who attended the meeting said that under the proposed IGST, states will not have any right to restrict input tax credits on interstate transactions as the idea is to facilitate free flow of tax credits and thus move towards a common national market. Sources also said cross utilisation of CGST or SGST credit will be allowed for payment of IGST.

“The agreed framework will ensure that no tax on inter-state commerce would stay with the manufacturing state as GST is a destination based consumption tax. The rules will ensure that funds of companies will not be blocked due to one state’s refusal to comply with credit set off,” said a source who attended the meeting. Under the new indirect tax regime, imports into the territory of India will also be deemed as inter-state commerce and attract IGST. IGST on imports, however, will not include basic customs duty, safeguards duty and anti-dumping duty.

Punjab finance minister Parminder Singh Dhindsa suggested at the meeting that the state should be allowed to levy purchase tax or cess on wheat, paddy, sugarcane, cotton and milk under GST too as the grain producing state would lose revenue from this levy in the new regime.

Dhindsa said this requires only an addition in the state list of taxable items and no change in Constitution Amendment Bill.

At the meeting, it was decided that once the new tax system is implemented, traders would be deemed to have registration if they do not get reply for their GST registration application in three days. States like Sikkim and Meghalaya asked for exemption from the user charges that the special purpose vehicle set up for creating IT infrastructure—the GSTN—would charge states for accessing tax databases.

SOURCE: The Financial Express

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Cochin Chamber of Commerce and Industry organizes seminar on foreign trade policy

The Cochin Chamber of Commerce and Industry is organising a seminar on foreign trade policy and export promotion schemes at Hotel Abad Plaza here on Friday. The seminar will discuss practical issues and difficulties faced by stakeholders while availing benefits under the new schemes announced in FTP 2015-20.

SOURCE: The Hindu Business Line

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India turns worst performing market of 2015

From being the most preferred market a year or so back, India has turned out to be the worst performer so far in calendar 2015.

It has been almost a year since Narendra Modi romped home with a majority and triggered hopes of an economic recovery backed by policy reforms.

Macros too had turned favourable with crude oil prices hitting new lows and inflation heading south.

But, now, after a few quarters of weak corporate earnings and the sudden increase in crude oil prices over the past few weeks, foreign investors seem fidgety and appear to be taking some profits off the table, net selling close to $1.8 billion between April 15 and now.

After delivering 30 per cent return in calendar 2014, the Nifty has fallen close to 3 per cent till date in 2015. In contrast, other emerging markets have delivered healthy returns — Brazil (Bovespa Index 17 per cent), Russia (MICEX 17 per cent) and China (Shanghai Composite Index 23 per cent).

Fairly valued?

Some may argue that the Nifty is still trading below its historical averages and lower than some of the global indices. Each of the global indices — S&P 500, FTSE 100, and Nikkei 225 — trades at 16-18 times its one-year forward earnings. Trading at 15.2 times its one-year forward earnings, Nifty still seems attractive when compared to its five-year historical average of about 19 times, and the lofty 22-24 levels of 2008. But that argument hardly holds water in the light of the poor show put up by Corporate India in the recent March quarter.

The price-to-earnings of a company is pegged higher for those with a higher earnings growth. The same holds true for markets. India’s growth is expected to be higher than the American and Japanese markets. Bloomberg estimates earnings growth of 5 per cent for S&P 500 over the next one year and 18 per cent for Nikkei’s 225 companies.

Nifty earnings are expected to deliver 22 per cent growth over the next one year. But with corporate earnings still languishing and expected to recover only in the next year or so, these growth estimates seem too optimistic. With the new government close to completing a year in office, there are now doubts about the high-drive reforms taking shape in a hurry.

Even so, reforms will only gradually result in an earnings pick up. Many market players do not expect a sharp jump in earnings in fiscal 2016. The big move, if any, is likely to happen only in 2017. Till such time, Indian markets are likely to see some more profit booking.

SOURCE: The Hindu Business Line

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Centre can veto any measure under proposed GST legislation

It would be much easier for the Centre to block a proposal in the proposed GST council than for states, even as Finance Minister Arun Jaitley has tried hard to allay fears of the Opposition over the issue.

Jaitley had said in the Lok Sabha on Wednesday that both the Centre and states would have veto powers in the council, which would be the final authority to take a call on crucial GST matters such as tax rates, exemptions, exclusions or inclusions of items in the new taxation.

The Centre can single-handedly veto any proposal put forth by the states. In the proposed council, the Centre will have one-third voting power (33.33 per cent) and the states together will have two-third voting rights (66.67 per cent), according to the constitutional amendment Bill on goods and services tax (GST) passed by the Lok Sabha. Each state, whether big such as Uttar Pradesh or Madhya Pradesh or small such as Uttarakhand or Chhattisgarh, will have the same voting percentage with it.

For any proposal to be cleared by the council, it has to get 75 per cent of the vote. This means that anyone who has greater than 25 per cent vote can easily block a measure. The Centre has much more than this power in the proposed council. Those who did not know the fact wondered as to why AIADMK leader M Thambidurai kept repeating that the Centre has a veto power in the council, when Jaitley clarified the position in the Lok Sabha.

"Without the Centre's approval, nothing can be cleared in the GST council. It is because its consent is essential," said R Muralidharan, senior director, Deloitte in India. For states to block a resolution, they need to have more than 25 per cent votes. All states put together have 66.67 per cent votes. This means that 37.5 per cent of states should come together to block a proposal. Of the 30 Indian states, this may require at least 12 states to join hands to block a proposal.

Jaitley was correct when he said that the proposed council would make the Centre and states work in the spirit of cooperative federalism. This is so because the Centre will need the support of 44 per cent of the state vote. This means that almost 63 per cent of the states would need to support the Centre's proposals (44 per cent of 66.66 per cent). Of the 30 states, it will require the consent of almost 19 states.

Say, some states want to continue the proposed one per cent tax for more than two years, provided in the Bill for originating states. The Centre, if it wants, can block the proposal. The tax is mainly provided for to woo manufacturing states. If these states want to carry out a proposal, they will have to woo the Centre as well as other states to have at least 19 of them on their side.

Since the proposal will benefit mainly Maharashtra, Gujarat, Tamil Nadu and some other states, the rest may or may not want to be with them.

It is also to be noted here that one-third voting power of the Centre and two-third voting rights for states are in proportion to those present and voting.

If some states abstain, then this figure will automatically change in terms of the number of states favouring or opposing a proposal and their voting rights. Say, 10 states abstain and 20 states vote for or against a proposal. Then the Centre will need 63 per cent of the states on its side to push a proposal through. This would mean 13 states.

As not all states can woo others to their side, some Opposition members have voiced concern over the marginalisation of some weak states.

"There may be orphaned states who will have no voice in that. In fact, the idea of such a council is to give a voice to the interests of every state, however weak they may be politically," Congress MP and standing committee on finance chairman Veerappa Moily said.

"A plain reading of the formula presents a picture that if a state is unavailable on the day of voting, it loses its voting power," said Vivek Mishra, leader, indirect tax, PwC India.

SOURCE: The Business Standard

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The Apparel, Made-ups and Home furnishing sector Skill Council (AMHSSC) now fully operational

May 08, 2015  

AMHSSC The government’s ambitious apparel, made-ups and home furnishing sector skill council (AMHSSC) has now become fully operational.

In a statement, Dr A Sakthivel chairman of AMHSSC that due to the presence of widespread training centres, participated by both public and private entities, determining the quality of training rendered at different training centres is crucial to the success of skill development programme and, thus, skill assessment is essential part of skill development.

 

The government had constituted the ambitious skill development programme under the leadership of the national skill development corporation (NSDC). The NSDC mandates skill formation to develop the workforce with enhanced skill through structured programme and assessment.

The AMHSSC was jointly launched by the ministry of textiles, NSDC and the apparel export promotion council (AEPC) with primary mandate of enhancing and building capacity in skill development. One of the salient features of the AMHSSC is designing of training programmes, based on industry demands of different segments and to ensure that all successful trainees are certified through accredited agency.

AMHSSC has been authorised by NSDC for evolving assessing proficiencies of skills of trainees for the apparel, made-ups and home furnishing sectors for their respective subject areas.

Dr Sakthivel, who also heads the Tirupur Exporters’ Association, said that efforts are being made to bring in foreign expertise in the field of skilling.

In addition to the training of fresh candidates, the AMHSSC has also been mandated to assess and certify the existing workers in the apparel, made-ups and home furnishing sector under the recognition of the government’s prior learning scheme (RPL) and the manufacturers can take benefit of getting their workers assessed and certified. With certified workforce manufacturers can negotiate better with the buyers who give more importance to manufacturing units which have certified workforce, Sakthivel said in his statement.(SH)

SOURCE: Fibre2fashion

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Rupee weakens to 20-month low, may correct to 65/$

he weakness in the equity markets percolated to the currency market as the rupee breached the psychological 64 per dollar mark for the first time since September 2013 on Thursday.

The central bank intervened in the foreign exchange market but that was not enough to curb the fall as the currency ended the day at 64.24 per dollar compared with the previous close of 63.54, a drop of 1.10 per cent or 70 paise.

Thursday’s fall in the rupee — whose performance was the worst among major currencies – was the steepest since January 24, 2014 when it had ended at 62.69 a dollar, recording depreciation of 1.21 per cent or 75 paise. (CURRENIES AGAINST THE US DOLLAR)

Even though the currency has weakened by 2.8 per cent against the dollar since end-March, market participants say more correction is due and the currency could touch the 65 per dollar mark.

“Right now everybody in the world is terrified, due to which they are selling everything, as a result of which the rupee has gone down,” said Jamal Mecklai, CEO, Mecklai Financial Services. "People are going to remain nervous for a while. I think the rupee is going to remain under pressure. But the RBI will try to prevent the rupee from falling too much more. I don't think the rupee will fall beyond 65.50 in the near term.”

Thursday’s fall has led to the rupee being the worst performer against the dollar among major global currencies. According to experts, the rupee is still overvalued by about 10 per cent on a 36-country REER (real effective exchange rate) basis, as a result a correction is due.

The situation has undergone a major change because the REER for six-currency trade-based weights was at an all-time high of 125.22 in March. A high REER indicates the rupee was trading strong against most major currencies of the world.

Bond and equity markets were also under pressure, as the yield on the 10-year benchmark bond moved up 10 bps to close at a five-month high of 7.99 per cent. A 23 per cent rally in Brent crude oil since end-March has sparked concern about inflation and the scope for further interest rate cuts.

“Today, the stock market did not perform well. Crude oil prices have gone up. Even in other emerging markets, the currency has weakened. In India foreign outflows are happening in debt as well as equities. Due to foreign investors selling debt, bond yields have also risen,” said

N S Venkatesh, executive director and head of treasury at IDBI Bank. The equities market continued with its downward trajectory, with the benchmark Sensex ending at a more than six-month low.  The fall in the Indian market mirrored weak performance in Asian and European equities as a spike in government bonds spooked investors.

Foreign institutional investors (FIIs) continued with their selling spree as concerns surrounding tax uncertainties prevailed. According to provisional figures, FIIs were sellers to the tune of Rs 1,360 crore on Thursday as well. In the last 10 sessions, FIIs have sold shares worth over Rs 10,000 crore from the cash market.

“Despite the near-term concerns, we continue to maintain our constructive view on the market as we believe that the government is focused on laying foundations of a robust and structural growth environment. After the recent correction, Sensex valuation has now moved lower to 15.6 times one-year forward EPS, which is in line with the past 10-year average,” said Deutsche Bank analysts Abhay Laijawala and Abhishek Saraf in a note.

SOURCE: The Business Standard

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Global crude oil price of Indian Basket was US$ 65.81 per bbl on 07.05.2015

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 65.81 per barrel (bbl) on 07.05.2015. This was lower than the price of US$ 66.54 per bbl on previous publishing day of 06.05.2015.

In rupee terms, the price of Indian Basket decreased to Rs 4203.94 per bbl on 07.05.2015 as compared to Rs 4234.61 per bbl on 06.05.2015. Rupee closed weaker at Rs 63.88 per US$ on 07.05.2015 as against Rs 63.64 per US$ on 06.05.2015. The table below gives details in this regard:

 Particulars

Unit

Price on May 07, 2015 (Previous trading day i.e. 06.05.2015)

Pricing Fortnight for 01.05.2015

(April 11 to April 28, 2015)

Crude Oil (Indian Basket)

($/bbl)

65.81              (66.54)

60.30

(Rs/bbl

4203.94          (4234.61)

3789.86

Exchange Rate

(Rs/$)

63.88              (63.64)

62.85

 

SOURCE: PIB

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Korea Vietnam signs its 15th free trade agreement

7th May, 2015

The 15th Free Trade Agreement between Korea and Vietnam was signed in Hanoi on May 5 in the presence of Vietnamese Prime Minister Nguyễn Tấn Dũng. Minister of Trade, Industry & Energy Yoon Sang-jik and Vietnamese Industry & Trade Minister Vu Huy Hoang signed the Korea-Vietnam FTA which will eliminate 94.7 percent and 92.4 percent of their tariffs based on the amounts of imports respectively.

The 12 percent tariffs imposed on textile goods exported from Korea are scheduled to be eliminated so that small firms in Korea can increase their exports. Other tariffs on auto parts, electric rice cookers and the 20 percent one on mixer and vegetable juice machines will be removed in steps.

According to the Korea International Trade Association, exports from Korea to Vietnam reached US$6.58 billion in the first quarter of this year, showing an 18.3 percent increase from a year earlier. In that quarter, only China and the United States recorded more exports to Vietnam than Korea did. The increase in the exports is especially eye-catching in that Korea’s overall exports declined 2.9 percent in Q1 this year, when those to the ASEAN region,

Japan and China dropped 17.6 percent, 22.0 percent and 1.5 percent as well, respectively.

During the same period, Korea’s imports from Vietnam increased 17.3 percent to US$2.03 billion and the bilateral trade volume raised 18.1 percent to US$8.61 billion. The latter broke the US$30 billion mark last year, when the volume added up to US$30.34 billion by showing a 7.4 percent growth.

Last year, Korean companies accounted for 14.7 percent of the imported goods market of Vietnam to be second only to China, which took up 29.6 percent of it.

SOURCE: Yarns&Fibers

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Pakistan, Azerbaijan to boost trade and joint venture to field such as textiles, energy

7th May, 2015

 To enhance the bilateral trade cooperation in trade, commerce and mutual investment in fields such as textile, energy and pharmaceutical between the two countries, Pakistan and Azerbaijan, a meeting was held on Wednesday between Pakistan Federal Minister for Finance, Senator Mohammad Ishaq Dar and Shahin Abdulla Mustaffayev, Minister of Economy and Industry of Azerbaijan, in Baku.

Pakistan Ambassador Khalid Usman Qaiser, Secretary (EAD) Muhammad Saleem Sethi, Azeri Ambassador Dashgin Shikarov and other officials of Azeri Ministry of Economy and Industry were also present at the meeting.

The two sides agreed to facilitate and encourage businessmen from both sides to undertake joint ventures and value addition projects in order to achieve quick and best results in the said fields.

The two Ministers expressed satisfaction on the bilateral relations that favourably exist between Pakistan and Azerbaijan and discussed ways and means to boost bilateral co-operation. The Finance Minister apprised the Economy Minister about the macro-economic measures undertaken by Pakistan, explained the development strategy and peaceful neighbourhood policy of the government of Pakistan under the leadership of Prime Minister Muhammad Nawaz Sharif.

They also emphasised the need to transform excellent bilateral political relations into expansion of bilateral co-operation in economic, trade and investment areas between the two countries.

To promote bilateral business and investment relations, Finance Minister Dar extended an invitation to Economy and Industry Minister Shahin to visit Pakistan which was gladly accepted.

SOURCE: Yarns&Fibers

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​​​Nigeria Customs arrests 4 Chinese ​over textile smuggling

The Nigeria Customs Service Anti-smuggling Taskforce on Thursday in Kano arrested three Chinese nationals for illegally importing printed textile materials worth billions of Naira to Nigeria.

The leader of the taskforce and Deputy Controller of Customs, Hassan Shallangwa, disclosed this while briefing newsmen in Kano.

He said the suspects were apprehended during a specially arranged operation following a tip-off.

“The four persons were arrested in connection with the illegal printed textiles materials,” he said.

He said the suspects illegally stored the materials at six warehouses at Gandun Albasa commercial layout in Kano metropolis.

Mr. Shallangwa said 20 other warehouses located in various places in the metropolis were suspected to be stocked with the illegal items.

He warned that the Nigeria

​C​ustoms service would not fold its arms and allow any person or group of persons to continue to perpetrate acts of illegality in the country.

“Henceforth, any foreigner who violates the law of the land will not be allowed to operate in the country,” he said. “Acts that are negatively affecting our economy will not also be allowed to thrive in the country.”

Mr. Shallangwa said as soon as investigation was completed, the suspects would be charged to court for proper prosecution.

The newsmen were conducted round the six warehouses where the textile materials were illegally stored.

SOURCE: The Premium Times

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Pakistan Textile Exporters Association (PTEA) lists down budget demands

The Pakistan Textile Exporters Association (PTEA) has urged the government to announce a business-friendly budget besides resolving the energy crisis in the country.

“The government should bring in reforms and give special status to the export-oriented textile industry to boost investment and revive growth,” said PTEA Chairman Sohail Pasha on Thursday.

He said the textile sector is the only hope for the country’s economic revival, but it is plagued with high production costs. “The government should provide a level playing field and we can witness textile exports almost doubling,” he added.“The budget should facilitate the export-oriented sector.”

Many incentives under the textile package including complete settlement of all outstanding refund claims and rationalisation of the refund regime was announced in the previous budget, but it could not be implemented, he added. “Around 30% to 40% of the working capital is still stuck.”

The whole textile export chain should be zero rated from spinning to finished goods in order to get rid of the financial crunch, PTEA demanded. “Sales tax refund should be processed in less time and in a transparent manner to streamline the entire refund verification and sanctioning process,” said Pasha.

SOURCE: The Tribune

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New Zealand trade minister backgrounds Korean-NZ FTA

Insights into the six-year diplomatic journey toward signing the Korea-New Zealand Free Trade Agreement (FTA) will be shared by Trade Minister Tim Groser in an address to the Korea NZ Business Council on Wednesday 13 May 2015.

Media representatives wishing to attend the Minister’s address should register in advance with Fergus McLean, Executive Director, Korea NZ Business Council, at fmclean@xtra.co.nz. The address will take place in the Auckland Town Hall at 5.30pm.

The FTA, eventually making 98 percent of New Zealand’s goods to Korea duty-free, was signed by Minister Groser and his Korean counterpart and witnessed by Prime Minister John Key and South Korea President Park Geun-Hye in Seoul on 23 March, 2015.

Auckland Deputy Mayor Penny Hulse took part in the Trade Mission to Korea led by the Prime Minister and Minister Groser. After the Minister’s address she will recount her experiences supporting Auckland businesses in the official delegation. She was the first councillor to take part in a central government trade mission.

Tariff reductions in the first year will save an estimated $65 million in tariff reductions from the $229 million tariffs which tariffs to Korea currently attract.

Reductions will occur progressively, taking 10-15 years for many products to become tariff-free. The big early winners will be certain food products including beef, dairy and salmon exports, wine, and wood products. For Auckland exporters, the deal offers further penetration into the world’s 13th largest economy. South Korea is New Zealand’s sixth largest export destination for goods and services.

The FTA will boost Auckland’s relationship with its sister city Busan’s film industry. The two cities have a Memorandum of Understanding between Screen Auckland the Busan Film Commission. Busan is responsible for 40 per cent of screen activity in Korea.

As part of the FTA, the new agreement on audio-visual cooperation opens further collaborative opportunities for Auckland in the film and video industry. Auckland Council is a member of the Korean NZ Business Council and sits on its executive board.

The Minister’s address will also be attended by the Prime Minister’s Fellow from Korea for 2015, Mr Chyung Hojoon, a member of the Korean National Assembly.

SOURCE: The Voxy

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