A sharp fall in petroleum and other commodity prices led to a 14 per cent annual fall in India's merchandise exports in April at $22.05 billion, compared with $25.63 billion in the corresponding month last year, showed data released by the commerce & industry ministry on Friday. The fall in April is the fifth consecutive monthly contraction in exports. India wasn't the only one to take a hit on this front. While Chinese exports declined 6.2 per cent in April, Korea's fell 8.1 per cent and Taiwan 11.7 per cent, said YES Bank chief economist Shubhada Rao. Imports for the month stood at $33.04 billion, 7.5 per cent lower than $35.7 billion in April 2014. This segment also saw contraction for the fifth consecutive month. For April, the trade deficit was $11 billion, nine per cent higher compared to $10.1 billion in the corresponding month last year. Compared to March this year ($11.79 billion), however, the deficit was lower. In April, oil imports fell a steep 42.65 per cent to $7.4 billion, owing to lower commodity prices. In April last year, these imports stood at about $13 billion. Non-oil imports stood at $25.60 billion, 12.58 per cent higher than $22.74 billion a year ago. Much of this was accounted for by gold imports, which rose a whopping 78 per cent to $3.1 billion. Gems & jewellery export declined 10 per cent to $2.94 billion. Non-oil, non-gold imports rose seven per cent to $22.47 billion in April, showing an industrial recovery would be gradual. Petroleum exports fell 46.5 per cent to $2.75 billion.
S C Ralhan, president of the Federation of Indian Export Organisations, said, "Negative growth in exports is continuing since December 2014, though the decline has come down from 21 per cent in March to 14 per cent in April. The prime reason continues to be softening of crude, metal and commodity prices." Engineering goods, the biggest contributor to exports, rose only 2.7 per cent year-on-year to $5.6 billion. Exports from the electronic goods segment declined 12.29 per cent to $4.73 billion, while plastics and linoleum product export fell 19.30 per cent to $0.39 billion. "The negative growth in gems & jewellery, electronics and plastic goods segments is worrying, as domestic capabilities are being augmented in these sectors," Ralhan said. Export of food items such as meat, dairy & poultry products were down 24 per cent, marine products 15.72 per cent and rice 6.8 per cent. Labour-intensive leather and leather exports fell 7.4 per cent. "The decline in export of rice, marine products, meat, dairy and poultry products, and leather and leather products are of equal consequence, as these sectors have shown great promise in the past," Ralhan said.
In 2014-15, merchandise exports had declined to $310.53 billion from $314.41 billion in 2013-14. The government had set a target of $340 billion for 2014-15, 8.7 per cent higher than the actual figure. Rao said she expected export growth to accelerate to four per cent this financial year, with structural support from the new foreign trade policy and an upturn in manufacturing and investment activity, supported by an easing interest rate cycle.
Among import categories, the fertiliser segment saw a 71 per cent jump at $0.68 billion, owing to stocking of inbound shipments before the kharif season starts in July. Import of items used in industrial activity, such as machine tools, declined 27 per cent, pearls, precious & semi-precious stones 22.33 per cent and project goods a meagre 0.04 per cent. However, transport equipment import rose about 70 per cent.
SOURCE: The Business Standard
India and China today agreed to set up a high level task force to look into ways to address New Delhi's concerns over widening trade deficit which has touched $48 billion in China's favour. India is seeking greater market access in China for its products in sectors such as pharmaceuticals, IT and agriculture, which are facing regulatory hurdles there. Prime Minister Narendra Modi, who is here on an official visit, raised concerns over the expanding trade imbalance in favour of China after which the two sides decided to set up a high level task force to address it and other issues including market access. "President Xi Jinping and Premier Li Keqiang were very receptive to the specific concerns I had raised on our growing trade deficit. We look forward to early impact on the ground," Modi said. "We have agreed to create a high-level task force to develop a strategic road-map to expand economic relations. It will cover a broad range of areas including Infrastructure, IT, Pharma, Agriculture and Manufacturing," he added.
Trade deficit has increased by about 34 per cent to $48.43 billion in 2014-15 from $36.21 billion in the previous fiscal. Modi said that "to maintain this partnership over the long run, we must also improve the access of Indian industry to the Chinese market. I am encouraged by President Xi's and Premier Li's commitment to resolve this problem". It was agreed that both sides will take necessary measures to remove impediments to bilateral trade and investment, facilitate greater market access to each other's economies. The two sides resolved to take joint measures to alleviate the skewed bilateral trade so as to realise its sustainability, said a joint statement. "Such measures will include cooperation on pharmaceutical supervision including registration, speedier phytosanitary negotiations on agro-products for two-way trade, stronger links between Indian IT companies and Chinese enterprises, and increasing services trade in tourism, films, healthcare, IT and logistics," it said. Meanwhile, Foreign Secretary S Jaishankar told media that the task force was being formed because there is not enough movement on India's calls for more access to pharma and IT markets which Indian officials have identified as the country's strong areas. The two sides also decided to have a special mechanism to discuss issues related to WTO talks as both have the same approach on these. According to provisional figures, India's exports to China stood at $11.95 billion in 2014-15, while imports amounted to $60.39 billion.
SOURCE: The Economic Times
Prime Minister Narendra Modi is expected to pitch for concrete steps from China to check the growing trade deficit as India's neighbour has failed to act on a series of measures it promised over the past few years. Sources said the prime minister's team of officers has pointed to specific areas — ranging from pharmaceuticals to information technology and bovine meat — where China has not come good on its promises and continues with trade barriers that block India's exports. Similarly, Modi — who begins his first visit to China as PM on Thursday — is expected to press for investments in Gujarat and Maharashtra, for which an MoU was signed during Chinese president Xi Jinping's visit to India last year. China, which is India's largest trade partner, had proposed to invest around $20 billion in industrial parks over next five years. Investments from across the border, where rules are expected to be simplified by the home ministry, is seen to be crucial to reduce the trade deficit by substituting imports with local production and also generate jobs. But, the widening trade deficit is the big worry as it is inching close to the $45 billion mark for the first time. China's decision to go slow on cotton imports in view of the large stockpile along with a surge in exports of iron and steel, has added to the deficit. Similarly, the mining ban has affected iron ore exports from India.
At the same time, several goods such as pharmaceuticals remain a no-go area for Indian exporters due to the rules erected by Chinese authorities. "You cannot complain about the rules being targeted against any country but they do impact India adversely," said a senior officer. For instance, the rules are such that Indian medicines cannot be purchased under the Chinese government procurement programme as they stipulate that only certain amount of generic drugs could be purchased for patented medicines. Since Indian companies specialize in generic or off-patent medicines, they can make little headway in the patented drug business, which is largely controlled by the American and European giants. While China had assured that it would review rules, the norms are yet to be eased. Similarly, the sources pointed out that the China had signed a memorandum regarding import of bovine meat, which will open the market to Indian beef and buffalo meat. Under the deal, Chinese authorities were to come and inspect Indian facilities for quality standards before opening up exports but officials said the visit is yet to materialize.
SOURCE: The Economic Times
Exporters fear Chinese companies gaining global foothold by selling duplicate products at cheaper rates. Exporters have raised concerns over the sale of duplicate and fake products from China in African and Gulf countries. In a representation to the commerce ministry, exporters said if the Chinese companies concerned continue to sell at cheaper prices, these products of poor quality would grab a bigger market share. Manufacturers and exporters of textiles, garments, stainless steel, machinery and mechanical appliances would be hit badly, they said. The exporters had recently met Commerce Secretary Rajeev Kher and Director General of Foreign Trade Pravir Kumar. They said the government’s move to withdraw export incentives for African and Gulf countries would force them to concentrate on domestic market. This would result in China and Bangladesh occupying the void. The exporters’ move comes close on the heels of Prime Minister Narendra Modi’s visit to China where he made a strong argument in favour of further growth in economic partnership between the two countries.
“Exports of textiles to most African countries were eligible for benefit under the erstwhile foreign trade policy. In the new policy, the benefit is not there to African countries. Exporters are unable to abide by their commitments, leading to cancellation of orders. Currency depreciation of 20-25 per cent is making the situation worse,” said an exporter associated with the Federation of Indian Export Organizations (FIEO). FIEO’s western region chairman Khalid Khan made a strong case for a level-playing field for Indian manufacturers and exporters to take on their foreign counterparts. “Restoration of incentives and benefits is one such measure needed to counter the sale of duplicate and fake products by Chinese companies. Besides, the government will soon have to launch interest subvention, as it becoming difficult for exporters to pay more on working capital loans. Interest payable by exporters here against export credit is far higher than those payable in many countries, including China,” he told Business Standard. “High transaction costs are due to high interest, high shipping and clearing charges and port congestion. Fees charged by shipping companies are exorbitant compared to fees in China and other countries. This apart, the exporters have been experiencing difficulties in obtaining landing certificates and other documents and they have to pay heavy charges for these,” he added.
SOURCE: The Business Standard
Exports from the Special Economic Zone (SEZ) here might touch the Rs 4,800-crore mark this fiscal after registering an increase of 22.5 per cent in comparison to last fiscal's exports which was Rs 3,919 crore. "Local SEZs have received an encouraging response from exporters. Going by the trend, we expect exports to touch Rs 4,800 crore this fiscal," Indore SEZ's Assistant Development Commissioner Ravi Chhangani told PTI. He said that the Indore SEZ spread over 1,113 hectares, houses 47 manufacturing units of various trades, including engineering, pharmaceutical and garment manufacturing, adding that five more units would come up later. Chhangani said that the SEZ had attracted investments worth Rs 3,820 crore and provided employment to 16,000 people.
SOURCE: The Economic Times
Kumaraguru College of Technology here and Indian Textile Accessories and Machinery Manufacturer's Association, Mumbai have signed an MOU to set up a Common Facility Centre for Textile Engineering Industry at the campus. The Centre, set up under the Cluster Development Programme, Ministry of Micro, Small and Medium Enterprises, will have a testing and quality control facility for engineering and plastics, among others, a KCT release said. The facility will benefit over 70 Textile Accessories and Machinery Manufacturing Industries in and around the city, it said.
SOURCE: The Economic Times
Now, the trucks carrying textile goods from Surat to Maharashtra will have armed security guards onboard. This decision by transporters follows spurt in thefts on stretch between Bardoli and Vyara on the national highway (NH) 6. As per an estimate, over 200 transport trucks have been looted with goods valued at over Rs 80 lakh in the past two months. Every night around two to three trucks are targeted by thieves on the Bardoli-Vyara highway. The thieves climb on to the moving trucks and steal parcels and escape. From a single truck, the thieves manage to steal more than 20-25 parcels, load them in another tempo and escape in the dark. Despite complaints to the police and the district administration in Tapi on various occasions, the trail of incidents still continues.
Every night around 150 trucks loaded with textile fabrics worth over Rs 25 crore leave for various destinations in Maharashtra and Madhya Pradesh. Yuvraj Deshale, president, Surat Textile Goods Transporters' Association (STGTA), said, "It is better to keep armed guards on the trucks than to see your goods being looted. When our transporters contact the local police station, they just refuse to register complaints blaming the drivers and the cleaners." "Most of the goods in transit are not insured and in such cases we have to pay for the looted goods from our own pockets," he added. The transporters' association on Thursday submitted a memorandum to the Tapi district collector urging him to intensify night patrolling on the Bardoli-Vyara route.
SOURCE: The Times of India
The National Green Tribunal's (NGT) circuit bench of Jodhpur has ordered the closure of 739 textile units in Balotra and its surrounding areas of Jasol and Bithuja till July 9. It has also ordered the trust operating the Common Effluent Treatment Plant (CETP) to renew the Consent to Operate the plant and obtain the hazardous waste disposal authorization from the Rajasthan State Pollution Control Board. The orders by the tribunal comprising judicial member UD Salve and expert member DK Agarwal followed a joint CETP inspection report by the Central Pollution Control Board and Rajasthan Pollution Control Board submitted in the court on Friday in pursuance of the order by the tribunal on March 19. The report said that the CETP has not been functioning in adherence to the norms laid by the pollution control boards as far as the Consent to Operate and disposal of hazardous waste of the industries is concerned. The joint report has also recommended installing adequate capacity RO plants immediately with a view to reuse the treated water in the member units and procure land for the evaporation of RO rejects.
A report had been submitted to the Central government by the CETP trust but the trust has not received sanction for the same. Keeping this in mind, the tribunal has also directed the MoEF to expedite the process so that the CETP trust could install the plant sooner. Besides the tribunal has also directed the "Prabodhan Samiti", chaired by the district collector to regularly monitor the CETP and address shortcomings with regard to its operation and compliance of the rules. The tribunal has also sought an affidavit from the district collector to the effect that the water being used by these industries is not being drawn from the areas notified as Dark Zones. A similar report on the sources of water to the textile industries in Jodhpur and Pali has also been sought by the tribunal on Thursday. This report is to be submitted on July 9. Besides, the tribunal has also ordered closure of those units in Pali, which have been operating without renewal of Consent to Operate from the Pollution Control Board.
SOURCE: The Times of India
Foreign exchange reserves hit an all-time high of $352.13 billion for the week ending May 8, recording a week-on-week growth of $262.4 million, Reserve bank of India data showed. Foreign currency assets, a key component, rose $262.7 million to $327.42 billion. Meanwhile, the rupee on Friday rose by another 14 paise against the dollar to close at 63.52 on sustained selling of dollars by banks and exporters amid gains in equities. At the Interbank Foreign Exchange, the domestic unit resumed strong at 63.50 from its previous close of 63.66 and later moved in a range of 63.46 and 63.60.
SOURCE: The Business Standard
All Pakistan Textile Mills Association Chairman SM Tanveer has warned that an alarming fall in textile products' exports was a proof of the fact that the high cost of business had made the industry unable to compete in international market. He said, "Among the major factors are serious liquidity crunch due to pending refunds, unprecedented burden in shape of electricity tariff, innovative taxes and levies, duties, surcharges and system inefficiencies on industry, besides the over-valued exchange rate of the Pakistan rupee.
The textile industry refunds under the heading of sales tax, income tax and DLTL worth Rs 160 billion are lying pending with the government. Thus industry funds are being held unduly leading to a serious liquidity crunch for the industry." He also said, "Similarly, the textile industry has been burdened by Rs 120 billion in terms of an electricity tariff raise since August 2013 to date. The Punjab-based textile industry, which consumes 80 percent of the entire Pakistan Electric Power Company industrial load, has been the victim of the situation. This all result in the Pakistani industry losing its competitive advantages altogether." He said the cost of innovative taxes and system inefficiencies subjected to industry had been worked out as five percent of the sales value across the stand alone textile-value chain with a multiplier effect of 15 percent on the final export products, which could never be passed on to the international buyer. He went on, "The overvalued exchange rate of Pakistan rupee has added fuel to the fire since the currencies in the European Union and other export destinations have devalued against the dollar. Consequently, the textile industry faced 16.5 percent decline in value terms during the March 2015 against the corresponding period. The industry has thus failed to achieve its available potential of $3.3 billion in quantitative terms."
He then urged the government to immediately reimburse and refund five percent, 10 percent and 15 percent as DLTL, respectively, on the export of yarn, processed fabric and made-up/garments through the State Bank of Pakistan. "The competing countries are factoring-in all kinds of local and state level taxes in their drawbacks. Also, all kinds of refunds be paid and the Nepra-determined tariff for 2014-15 be implemented without delay to provide relief to the industry in electricity tariff and finally Pakistan currency should be brought back to the realistic value of rupee to achieve the export targets ahead," he added.
SOURCE: The Business Recorder
The textile dyeing and finishing industries will be hardest hit by the Chinese government’s recently released Action Plan for Water Pollution Prevention and Control, which wants to clean up the country’s heavily polluted waterways by 2020. China’s textile industry, which produces more than half of the world’s fabric, ranks as the country’s third largest discharger of industrial effluent. According to the Ministry of Land and Resources, about 40 percent of the water in seven major river systems, including the Yangtze, Yellow, Pearl and Huai, is currently unsafe to drink and contributing to widespread public-health problems, while the Ministry of Environmental Protection said 9.2% of groundwater is too polluted even for irrigation use.
The new water protection plan, unveiled last month by the State Council, proposes that at least 70 percent of the water in those river systems will be safe to drink within five years, increasing to more than 75 percent by 2030. It follows last year’s pledge by the government to prioritize environmental protection over economic development and mandates the closure by the end of next year of small-scale textile facilities that fail to meet stricter standards. Larger factories, meanwhile, will be required to install or upgrade wastewater processing equipment to reduce emissions, as well as improve water consumption efficiency. Companies which exceed their pollution quota will be blacklisted from next year and serious violators will be ordered to shutter their operations.
“[Textiles] is the only industry singled out for action across all the key areas. Moreover, new stricter standards and tighter deadlines in the Yangtze River and Pearl River Deltas where the sector is concentrated amount to a triple whammy hit,” said Debra Tan of China Water Risk in a blog post on the nonprofit’s website, noting that the plan is tougher than many had expected. “In reality, the high cost of installing and operating wastewater treatment equipment will likely mean that some small factories with thin profit margins may be forced to close or merge with others,” Tan said. And as a new Environmental Protection Law went into effect this year, threatening polluting businesses with higher fines and jail time, Tan warned of “crackdowns on illegal activities such as secret groundwater discharge, faking it with EIA (Energy Information Administration) approvals and monitoring data.”
There are an estimated 15,000 textile mills in China. While the government has said it expects some push back from the industry, the new measures could lead to lower costs and a bigger bottom line. Recent efforts by the Natural Resources Defense Council (NRDC) led to 33 of the country’s mills saving $14.7 million in 2014 by cutting water, energy and chemical use as part of the nonprofit’s Clean by Design program.
SOURCE: The Sourcing Journal Online
A delegation of the European Union trade office of generalised system of preferences (GSP) program led by Director General Marc Vanheukelen and Acting EU Ambassador HE Stefano Gatto visited All Pakistan Textile Mills Association to review the benefits of GSP plus facility to Pakistan and the progress done on implementation of social standards related to labour and environment laws. APTM A Punjab Chairman Sheikh Muhammad Akbar welcoming the delegation said that the textile exports have started showing progress in the EU market because of the generalised system of preferences plus facility. Pakistan textile exports increased by 24 percent in volume and 30 percent in value terms from January to December 2014 in apparel products. But the growth pattern does not commensurate with the potential of the industry due to productivity constraints, particularly the energy. However, various solutions for the availability of energy at regionally competitive tariff are being worked out by the government and the industry as well.
APTMA and the GIZ launched a series of initiatives including energy conservation, use of renewable energy, water conservation, material flow management and implementation of social standards in Punjab-based garment industry. He said that APTMA was also working on better cotton initiative with best practices covering lesser use of water and pesticides. Association's Convenor International Trade Aamir Fayyaz Sheikh made a detailed presentation on sustainability and way forward for the textile industry under enhanced market access and explained the state of the textile industry in Pakistan.
Speaking on the occasion, Director DG trade office GSP program Marc Vanheukelen appreciated the efforts of APTMA for the compliance of the industry he explained that in January 2016, and every two years thereafter, the Commission shall present to the European Parliament and to the Council a report on the status of ratification of the relevant conventions. He said that they are witnessing a change in Pakistan and things are now getting better, legislations are there with the sense of willingness. Their main focus is on implementation of human rights including labour right, child labour, women right on floor level, gender balances, OHAS standards, and unionization.
SOURCE: Yarns&Fibers
Malaysia's strategy is to attract more companies in the technical and functional textiles or high performance textiles (such as flame-resistant, anti-bacteria, wrinkle-free, oil and water repellent, abrasion/tear resistant textiles) sub-sectors where high demand will come from high-end applications in the defence, aerospace, automotive, medical, construction and other industries, according to Malaysian Investment Development Authority (MIDA) director based Frankfurt, S. Sivasuriyamoorthy. As Malaysia's texile and apparel industry may face strong competition from low-cost suppliers in Asia and elsewhere, the country's technical textile industry can start tapping the export opportunities inherent in developed countries. In fact, Malaysia can build up a niche market in technical textiles in much the same way as the other high-cost suppliers such as Taiwan, South Korea, Japan, Hong Kong and Turkey have been doing.
The Malaysian exhibition stands of these high-cost suppliers received a steady stream of buyers from the developed markets for technical textiles and non-wovens at the just-concluded Techtextil and Texprocess 2015 in Frankfurt, Germany, for technical textiles and non-wovens. Malaysia indeed made good strides in the industry, particularly in the use of high technology. One such company that left a mark at the Techtextil 2015 show was Apparel Alliance Sdn Bhd of Kluang, Johor, which provides information technology and automation solutions for apparel manufacturers. The "red-hot technology", as Apparel Alliance director, Jordan Tang, put it, is the 3D (three-dimensional) digitalisation which has become the company's strong selling point. Their focus is on customizing products and services to the specific needs of their customers who are spread across the globe. Tang received many visitors from Eastern Europe, the Baltic region, Sri Lanka and South America at the Techtextil show.
The 3D digitalization is evolving itself to make apparel and textile manufacturing more efficient. Efficiency enables faster deliveries means saving a lot of time on material handling. However, digitalization is not complete and there are still pieces left to fit in. In short, there is still room for research and development (R&D) efforts, Tang said, adding that digitalization would not do away with the labour intensive aspect of apparel manufacturing. Thus, stitching and sewing will still be needed. Material handling accounts for a large part -- almost 60 percent of apparel manufacturing.
According to Tang, the "next big wave" will be digital printing. Michael Jaenecke, a senior executive at Messe Frankfurt organizer of the Techtextil show, said that while the 3D digitalization had been in place for some time, it was "heartening" to know of the progress made by Asian countries, including Malaysia, in this regard. Although 3D digitalization has been available since years ago, it is still evolving. The technology will further develop, partly driven by users, who believed that 3D digitalization would be further developed in the developed countries because of the heavy focus there in R&D efforts.Germany and Europe have an excellent textile machinery development base, according to Jaenecke. Various industry groups are of the view that technical textiles will be a bright spot in the global textile business.Keeping this volume in mind, Malaysia has a lot of catching up to do and get a larger slice of the global pie. The mantra to achieving this is innovation coupled with savvy marketing, as one German expert on Southeast Asia's textile industry recommended for Malaysia's future success.
SOURCE: Yarns&Fibers
A 12-nation Pacific trade agreement cleared a crucial test in the US Senate on Thursday, giving a resounding thumbs-up to legislation that holds the key to President Barack Obama’s diplomatic pivot to Asia. Just two days after Democrats defied Obama to block debate on a Bill to “fast-track” trade deals such as the Trans-Pacific Partnership (TPP) trade deal through Congress, the Senate voted 65 to 33 to move ahead with consideration of the measure. Strong support for the Bill on this second go-round suggests senators are unlikely to reject the Bill, although heated debate is still expected in the Senate over amendments and later in the House of Representatives, where many Democrats staunchly oppose the TPP on fears trade liberalisation will cost US jobs. The about-face came after Democrats won a separate vote on a Bill punishing countries that manipulate their currencies to keep their exports cheap, and followed a renewed round of personal lobbying by Obama, who played down differences with left-wing Democrats.
Thirteen of 44 Democrats joined with Republicans, who voted in lock-step to give backers of the legislation more than the 60 votes needed to proceed in the 100-member Senate. Under fast-track, the US Congress can approve or reject trade deals such as the TPP deal, but it cannot amend the contents of the pact, a centrepiece of Obama’s strategy to counter China’s rising economic and diplomatic clout in Asia. Obama’s aggressive defence of fast-track has put him at odds with the left wing of the Democratic Party, pitting him against Senator Elizabeth Warren, a leading liberal voice.
The President thanked senators who backed the Bill while vowing to keep trying to convince others, and said his difference of opinion with Warren “has never been personal”. “These are folks whose values are completely aligned with mine,” Obama told reporters. “This just comes down to a policy difference and analysis in terms of what we think is best for our people, our constituents.” The Senate is expected to debate amendments to the fast-track Bill next week and Republican Senator Rob Portman, a former US Trade Representative, said he would seek to write sanctions against currency manipulators into trade deals, a move backed by US automakers such as Ford Motor Co.The White House, which has warned such sanctions would derail the TPP, has so far side-stepped a clash by convincing Democrats to isolate currency rules into a separate customs Bill. That passed the Senate with the support of all Democrats and more than half the chamber’s Republicans.
The fast-track Bill would effectively give Obama and his successor six years to negotiate additional trade deals that could not be amended by Congress. “I would hope there could be some addressing of the length of time,” Pelosi told reporters. Portman said he would also seek to include those rules — allowing import duties against currency cheats — into fast-track itself.Democratic Senator Charles Schumer said action on currency might be needed as a sweetener for fast-track in the House, where many Democrats say labour and environmental protections fall short and some conservative Republicans oppose any more power for Obama.“There’s a broad feeling we have to do something against China,” Schumer said. Many lawmakers blame China’s trade gains on an overly-weak Chinese currency.
Obama said he had spoken to Schumer and other lawmakers concerned about currency manipulation on finding language that would not have a “blow-back” effect on US monetary policy. House Speaker John Boehner, a Republican, said any attempt to legislate currency levels would be “laughable,” signalling that Republicans, who have a majority in the House, would push strongly against currency rules. Passage is already far from assured, with House Democratic leader Nancy Pelosi voicing concerns of her own. The TPP would create a free trade zone covering 40 per cent of the world economy. Trading partners have said they want to see the legislation enacted before finalizing the pact — a task the administration wants to complete this year. The Senate also passed a Bill extending duty-free access to US markets for African and other developing nations.
SOURCE: The Business Standard
