Textile Raw Material Price 2015-05-28
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1268.96 |
USD/Ton |
-0.32% |
|
VSF |
2036.86 |
USD/Ton |
0% |
|
ASF |
2493.03 |
USD/Ton |
0% |
|
Polyester POY |
1240.40 |
USD/Ton |
-0.65% |
|
Nylon FDY |
3133.63 |
USD/Ton |
0% |
|
40D Spandex |
6397.83 |
USD/Ton |
-1.26% |
|
Nylon DTY |
3378.45 |
USD/Ton |
0% |
|
Viscose Long Filament |
5949.00 |
USD/Ton |
0% |
|
Polyester DTY |
1526.01 |
USD/Ton |
-0.53% |
|
Nylon POY |
2937.78 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2688.07 |
USD/Ton |
0% |
|
Polyester FDY |
1477.05 |
USD/Ton |
-1.09% |
|
30S Spun Rayon Yarn |
2725.61 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2023.80 |
USD/Ton |
-0.80% |
|
45S T/C Yarn |
2986.74 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2203.34 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2546.08 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2888.82 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2758.25 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
1.00 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.35 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.78 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.79 |
USD/Meter |
0.83% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16321 USD dtd. 28/05/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Exports to China are expected to grow by around 14 per cent a year in the decade to 2030; potentially outpacing outbound shipment growth to any other country, said an HSBC trade forecast report. Not just that, the report added, exports will head for newer markets, including Brazil, where the shipments from India are expected to grow by 10 per cent a year in the said period. "The near-term outlook for India is upbeat," the HSBC report said, adding that "having low relative unit labour costs compared with other countries (both emerging markets and advanced economies), India will be competitive in the international market". Being a net oil importer, India has benefited from the fall in global oil prices, and the positive impact of this is likely to continue in coming years as well, the report predicted. "The economic potential for India remains strong, with the growing population and a rapidly expanding middle class - it presents opportunities for business," HSBC India Managing Director and Head, Commercial Banking, Sandeep Uppal said.
According to HSBC, India's current account deficit is expected to narrow from 1.1 per cent of GDP in 2014 to 0.6 per cent in 2015 while retail inflation is likely to remain below 6 per cent throughout this year. RBI has begun the monetary loosening cycle, lowering interest rates by a cumulative 50 basis points since January. "These positive developments will support the economy and GDP growth is expected to accelerate from 7.4 per cent in 2014 to 7.8 per cent in 2015 and 8.3 per cent in 2016," HSBC said. The report, however, noted that progress on reforms has been relatively slow. The World Bank's 'Doing Business' report ranks India 126 out of 189 economies on the ease of trading across borders, and even lower at 142 on the overall ease of doing business.
According to the report, in the decade to 2030, more advanced sectors such as transport equipment are expected to emerge as the top contributors to exports. Other important ones that are likely to gain importance include industrial machinery and pharmaceuticals. "With the government's thrust on manufacturing in India, export of value-added goods like transport equipment, industrial machinery and pharmaceuticals is expected to grow," Uppal added.
SOURCE: The Economic Times
Eager to wrap up the ongoing free trade agreement (FTA) negotiations with India by December this year, Australia is ready to offer a special package on work visas. “It (the FTA) is the next milestone in the relationship so we are hoping that it will be concluded by the end of this year. I am aware that there is political will on both sides and we will overcome any challenges, if there are any,” Australian Foreign Affairs Minister Julie Bishop told BusinessLine.
Renewed interest
Negotiations on the FTA, formally known as the Comprehensive Economic Cooperation Agreement (CECA), were launched in 2011, but lost momentum as these got stuck on issues such as market opening for dairy products, ambitions in the services sector and movement of professionals. Both the countries, however, got back on the negotiating table with renewed eagerness last year. “The Australian government wants greater access to India’s markets, as its own economy is slowing down and its trading partners, such as China and Japan, are also not doing very well. The (Narendra) Modi government is reciprocating the interest, as it wants to forge stronger ties with important partners,” an Indian official in Australia said. India, which is keen on greater mobility for its workforce, may be offered a special package on visas. “In our FTA with China, we created a special package based on its particular demands in the construction sector. We are willing to do something similar for India,” an Australian government official said. Once India spells out its requirements clearly, we could sit with our immigration officers and see what is possible, he added. An Indian official based in Australia said “there are a large number of Indian IT companies in Australia, such as Wipro, Infosys, TCS and MindTree. We want an easier visa regime for professionals. We also want visas to be given faster.”
SOURCE: The Hindu Business Line
India’s economic growth will likely slow to 7.2% in Q4 of the last fiscal, compared with 7.5% in the previous quarter, as “external headwinds” weighed, according to Moody’s Analytics. The global rating agency affirmed the economy was growing much below its potential of closer to 9%.“Although India is among the world’s fastest-growing economies, we believe it is operating with a negative output gap,” it said. “External headwinds weighed on India’s March quarter GDP. The trade deficit widened; exports fell at double-digit year-over-year rates in the opening months of 2015. Mixed global demand is partly to blame, while lower global commodity prices are also hurting exporter incomes,” it said.
The Central Statistics Organisation (CSO) will release the GDP data for Q4 of 2014-15 as well as for the entire fiscal on Friday. It had forecast the country’s economic growth at 7.4% for Q4 as well as the entire FY15 — up from 6.9% in FY14. So any slowdown in growth to 7.2% in Q4 would drag down the overall expansion rate for FY15 by a notch to 7.3%.Global factors apart, domestic issues are also concerning, as commercial banks have been reluctant to pass on the cuts in the benchmark lending rate by the Reserve Bank of India’s from earlier in the year, Moody’s said. “High borrowing costs are hurting the business sector, as manufacturing production grinds lower. India’s disinflation trend has been prominent on the back of lower oil prices. But falling core inflation-measured by manufacturing costs-suggests the cyclical upswing is beginning to fade,” it said.
Keeping with its earlier report on the state of the Indian economy, the rating agency also remained critical about the latest GDP series by the CSO. The new methodology of computing the national income has already drawn criticism from many analysts for sharply revising upward the growth rate for 2013-14 from 4.7% to 6.9% when some other high-frequency data — including trade, credit growth and industrial output — showed negative or sluggish growth in the period. “We think the new data are dubious, as the revised growth rates don’t align well with partial indicators of demand. And we hope the revised methodology to the industrial production series, to be introduced in coming months, will better reflect the new GDP series,” it said.
SOURCE: The Financial Express
Textile players, including denim makers, are eyeing investment opportunities in Vietnam. Several companies have been enthused by the proposed textile park in that country. Recently, a 13-member delegation comprising the representatives from Denim Manufacturers Association (DMA) and Northern India Textile Mills Association (NITMA) had visited Vietnam. During his own visit, Prime Minister Narendra Modi had offered $300 million line of credit to Vietnam to buy materials and textile machinery. India is currently looking at the possibility of setting up a textile park in Vietnam, a move that is likely to boost trade and investment in man-made fibres and fabrics between the two countries. "There are opportunities in spinning and fibre segment," said Siddhartha Rajagopal, executive director, the Cotton Textiles Export Promotion Council. "Several companies are studying the potential of setting up units in Vietnam. The only issue is that the Vietnam government wants that yarn should be made there itself."
Earlier this month a delegation including the heads of companies such as Anubha Industries, Raymond UCO Denim Pvt Ltd, Mafatlal Industries Ltd, Soma Textile & Industries Ltd, Vinod Denim Ltd, Modern Denim Ltd, the secretary general of NITMA, and the company secretary of DMA, among others had visited Vietnam. "The main reason of visiting Vietnam was to explore the market. And few companies are also interested in investment," said Akshat Chaudhary of Anubha Industries Pvt Ltd. The potential park is likely to come up near the southern Vietnam economic hub of Ho Chi Minh City. Vietnam is one of leading source countries for apparel and is dependent on other nations such as China for textile input.
The Synthetic and Rayon Textiles Export Promotion Council of India has also called for feedback from its members to put together a draft proposal on the textile park. The Vietnam textile sector is likely to benefit hugely from Trans-Pacific Partnership Agreement which is being negotiated among 12 countries including the US and Canada. After China, Vietnam is the second biggest exporter to the US, even ahead of India. "Vietnam's textile industry has been witnessing steady growth over the recent years and is poised to become the next textile and garment hotspot," said Gagan Deep Singh of DMA.
SOURCE: The Times of India
Future Market Insights (FMI), in its recent report titled, "Asia Textile Chemicals Market Analysis & Opportunity Assessment, 2014 - 2020," projects that the market for textile chemicals in Asia will exhibit a steady CAGR of 7.6% during 2014 to 2020. According to FMI's in-depth analysis of textile chemicals market in Asia, the Asia textile chemicals market will reach US$ 11,626 Mn by 2020. Textile chemicals are class of specialty chemicals and comprise chemicals and intermediates that are used in various stages of textile processing such as preparation, dyeing, printing and finishing. These are often used to enhance or impart desired properties and colour to the fabrics during the manufacturing process. As of 2014, textile chemicals accounted for nearly 2% of the overall specialty chemicals market.
FMI's report analyses the Asia textile chemicals market in terms of market value (US$ Mn) on the basis of product types, end use applications and countries of Asia region. The major players in textile industry across the globe are emphasising on channelising efforts towards ensuring sustainability throughout the value chain. As such, there is an ever increasing demand for eco-friendly chemicals that minimise the amount of water and energy required in various stages of textile processing and are in compliance with regional and international regulations. Textile chemicals industry is highly fragmented and comprises large number of small and big players catering to the demands of textile manufacturers. Due to this fragmented nature, developing innovative and differentiated product offerings has emerged as a key to gain competitive advantage. Moreover, growth in demand for functional finishes has resulted in a steady growth of textile finishing chemicals that impart desired specific finishes to textile and apparels.
From regional perspective, China accounted for a major share in overall Asia textile chemicals market in 2014. China textile chemicals market is expected to exhibit a CAGR of 8.6% during the forecast period 2014 - 2020. In terms of market value, India is the second largest market for textile chemicals in Asia. India textile chemicals market is expected to witness a steady growth at a CAGR of 9.0% in the same period. Countries like Vietnam, Bangladesh, and Indonesia also are expected to witness relatively high growth in textile chemicals market.
From product type perspective, market size of textile auxiliaries segment is expected to grow faster than the textile colourants segment. The segments are projected to witness high single-digit growth during the forecast period. From the process perspective, the finishing process segment is slated to experience faster growth than that of pre-treatment, dyeing and others segments. It is expected to register a CAGR of 8.6% between 2014 - 2020. This is primarily due to growth in demand for textiles and apparels with specific functional finishes. From applications perspective, market is composed of apparels segment, home furnishings segment and others (technical & smart textiles) segment. The apparels segment accounts for largest share among these segments and is slated to register a CAGR of 6.8% during forecast period. The key market participants covered in the report include companies covered in the report are Huntsman Corporation, Archroma and DyStar group.
SOURCE: The Market Watch
The Gujjar agitation in Rajasthan has kept the textile traders on tenterhooks with the transporters unwilling to ply on the Agra-Rajasthan route fearing tension. Sources said that around 50 trucks loaded with textile fabrics including dress material and saris bound to Ajmer and Jaipur had to return back from Agra after the Gujjars blocked the national highway as part of their ongoing agitation. Everyday around 150 trucks leave from the city for Jaipur and other districts in Rajasthan with goods estimated at Rs 15 crore. Following the Gujjar agitation, the transporters have been accepting the consignment deliveries only up to Delhi and Agra, avoiding entering the Rajasthan border due to the agitation. Yuvraj Deshle, president, Surat Textile Goods Transporters' Association (STGTA) said, "We can't risk our lives and drive into Rajasthan with truck loads of costly fabrics that are not even insured by the traders. If something happens then we are held responsible. Thus, we have stopped accepting the consignments to Rajasthan." Deshle added, "We hope that the situation will normalize in a day or two. The Gujjars have begun talks with Rajasthan government and something positive is likely to come out." Devkishan Manghani, chairman, textile committee of Southern Gujarat Chamber of Commerce and Industry (SGsaid, "Our trade in textile fabrics with Rajasthan has been affected considerably due to the Gujjar agitation. The traders are losing over Rs 15 crore worth of business every day as the transporters are not willing to take the risk." Rajesh Agarwal, a textile trader said, "We had to cancel orders worth Rs 50 lakh from Jaipur traders in the past few days. Earlier, the trains were affected, now it is the highway."
SOURCE: The Times of India
Net Loss of Surat Textile Mills reported to Rs 1.52 crore in the quarter ended March 2015 as against net loss of Rs 0.70 crore during the previous quarter ended March 2014. Sales declined 51.44% to Rs 19.72 crore in the quarter ended March 2015 as against Rs 40.61 crore during the previous quarter ended March 2014. For the full year,net profit rose 120.69% to Rs 2.56 crore in the year ended March 2015 as against Rs 1.16 crore during the previous year ended March 2014. Sales declined 29.73% to Rs 127.55 crore in the year ended March 2015 as against Rs 181.51 crore during the previous year ended March 2014.
SOURCE: The Business Standard
The iconic American apparel brand Gap is finally set to make its India debut, as its first store is slated to open on Saturday in New Delhi in partnership with Arvind Lifestyle Brands. Arvind Lifestyle Brands plans to open over 40 stores in the top 15-20 cities in the next five years. “We plan to open 10 stores by mid-next year as part of our long-term plans of opening 40 stores in the next five years. The first set of stores will be in New Delhi, Mumbai and Bangalore,” said J Suresh, MD and CEO of Arvind Lifestyle Brands. “Gap is not a niche but a large opportunity for us and we believe it could have the revenue potential of about Rs. 1,000 crore in the next five years. The big advantage that we have with Gap is that it has got a fairly large brand awareness and we can readily reach out to consumers,” he added. While the brand’s flagship store is about 11,000 sq ft, depending on the availability of real estate, it will be housed in stores that could range from about 7,000 sq ft to about 11,000 sq ft. Depending on the size of the stores, the company will be spending Rs. 8-10 crore per store, added Suresh.
Kulin S Lalbhai, Executive Director, Arvind Ltd, said Gap is among the top global ‘big box’ specialty retail brands that is expected to change the “brandscape” of India. He said as part of the omni-channel strategy, the brand merchandise will also be launched soon on the e-commerce platform, as it builds its retail footprint in the country. While Gap promises to bring in its casual American style to customers in India with the same range and quality that is available globally, it has tweaked its pricing strategy to ensure a competitive price range that attracts both mainstream as well as affluent buyers. It will be offering its entire range of clothing and accessories for men, women and kids at its Indian stores. Stefan Laban, SVP, Gap Specialty International, said: “We are not the brand for the few, but the masses and have spent a lot of time formulating our pricing strategy after studying the market and our competitors. “We feel good about our pricing as we are competitively priced.”
On the importance of India, he said: “India is what we call the last big rock. It is clearly a big market and we have been looking at the market for some time. We have been trying to understand the needs of the customers and how strong the brand awareness has been. We believe with a strong partner the time is right now and we believe the brand has much more potential than our initial plans.” Asia is one of the fastest growing regions for Gap and it hopes it will further get accelerated with its entry into India.
SOURCE: The Hindu Business line
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$ 60.89 per barrel (bbl) on 28.05.2015. This was lower than the price of US$ 62.22 per bbl on previous publishing day of 27.05.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3890.87 per bbl on 28.05.2015 as compared to Rs 3978.97 per bbl on 27.05.2015. Rupee closed stronger at Rs 63.90 per US$ on 28.05.2015 as against Rs 63.95 per US$ on 27.05.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 28, 2015 (Previous trading day i.e. 27.05.2015) |
Pricing Fortnight for 16.05.2015 (April 29 to May 13, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
60.89 (62.22) |
64.51 |
|
(Rs/bbl |
3890.87 (3978.97) |
4115.09 |
|
|
Exchange Rate |
(Rs/$) |
63.90 (63.95) |
63.79 |
SOURCE: PIB
The country's exports have registered 23 % increase after gaining GSP plus status from the European Union, said Resource Person of Trade Development Authority (TDAP) Ahmed Fasih here on Thursday. He was addressing a seminar jointly organised by Rawalpindi Chamber of Commerce and Industry (RCCI) and TDAP on "Impacts of GSP plus status on country's economy." Director General TDAP Khalid Rasool, President RCCI Syed Asad Mashahadi and a number of RCCI members attended the seminar. Dispelling the impression that the country failed to achieve significant improvement in country's exports after attaining GSP plus status Fasih said that the country's exports have increased to 23 % ultimately giving impetus to the business and trade activity. Giving breakup, he said since the country achieved GSP plus status from European Union, 30 % increase has been shown in the Textile (Garments) sector while 25 % in shoes and plastic sectors. He pointed out that the tenure of GSP plus status would terminate in 2016 and expressed the hope that TDAP and Ministry of Commerce would be able to get it renewed for a term of ten years. He said that all the efforts at diplomatic and political levels are in hand to get the trade agreement with the EU renewed. He claimed that the in EU market, despite all odds Pakistan has been able to show a sizeable leap ahead of its rivals like India, Turkey and Bangladesh due to quality and standards of its products. For this achievement, he said the country's business and trade community rightly deserve to be appreciated, which have made all out efforts to beat the rivals in the EU markets. Earlier, President RCCI welcoming the TDAP delegation said that RCCI had always been on the forefront to educate and apprise the business community of the developments being achieved at the global level, to make them meet the challenges of the international markets. Eulogising the efforts of the government towards promotion of business by actively facilitating trade and industrial sectors of the country he said that it would be able to get renewal of GSP plus license from the EU for the next decade.
SOURCE: The Business Recorder
Gustavo Miranda Augustor Valenzuela, Charge d'Affaires of Embassy of Paraguay during his third visit to Pakistan and maiden visit to Faisalabad on Tuesday while addressing the members of Faisalabad Chamber of Commerce and Industry (FCCI) advised the Pakistani exporters to explore nontraditional and virgin markets of Latin American to give a quantum jump to its exports. He termed this visit as a first step towards enhancing bilateral trade of the two countries and said that it would also have a salutary impact on the economies of the two countries. A documentary on Paraguay was also presented.
The objective of his visit is to develop trade links and bridge gap between the business communities of two countries. Faisalabad is the hub of textile industry and he will encourage local industrialists to set up their units in Paraguay to make move into the Latin American markets. He said that focus of Pakistan's exports has remained on the markets of USA, Europe and Arab countries. They must explore the possibility of entering into the non-traditional markets which have vast untapped opportunities for them. Paraguay has surplus and cheap hydel electricity in addition to cheap labour and good quality of cotton which could help Pakistani investors to establish their textile units in that country by exploiting their entrepreneurship and professional skills. These textile units will not only cater to the needs of the Paraguay but also provide them an opportunity to cover all the countries of Latin America. He urged President Engr Rizwan Ashraf to form a trade delegation to visit and explore the huge opportunities available in that country in addition to establish direct contacts with the businessmen of Paraguay. India is currently doing well in that region but due to certain restriction on Pakistan, Pak trade is dwindling at $32.53 million. He said that he has close contact with foreign office of Pakistan which is also trying its best to increase the trade between the two countries. He assured to facilitate FCCI and Paraguay Chambers of Commerce for signing of an MoU. Gustavo said that a trade delegation from Paraguay will also visit Pakistan very soon and it would also visit Faisalabad for negotiation with the businessmen linked with the textile industry.
SOURCE: Yarns&Fibers
The Center for the Facilitation of Investments (CFI) signed a Memorandum of Understanding (MoU) with the Association of Industries in Haiti (ADIH) to strengthen textile investments in Haiti. Realized with the support of the Inter-American Development Bank (IADB), the MOU allows the IADB to provide critical support to the CFI and ADIH in their mission to seek the renewal of the HOPE II and HELP legislation in the United States. HOPE II and HELP provide duty-free access to the US market for a large number of Haitian apparel, textiles and manufactured goods, and is often named a reason for why investors in the apparel/textile sector chose to come to Haiti. Implemented in 2006, the Hope I, Hope II and Help Acts have resulted in a strong increase in the volume of exports in the Haitian Apparel Sector; this has generated numerous opportunities for value chain investment within the industry.
In the last seven years, Hope II/Help have led a GDP growth of 78 percent, from US$4.8 billion (2006) to US$8.4 billion (2013). Exports have doubled in the same period, steadily growing since 2006 and only reporting a small decline after the earthquake in 2010. Since this natural disaster, exports have grown strongly—up 52 percent (2013). About 90 percent of this growth is led by apparel exports to the United States. Employment in that sector has doubled from some 17,000 workers to almost 35,000 workers. "We are very thankful for all the work that has been done to support the urgent renewal of the HOPE II and HELP legislation," explained Norma Powell, Director General of the CFI. "From the important efforts of our President, Michel Joseph Martelly, who has urged the US continuously to renew the legislation, to the support of the Ministry of Finance, we have been fortunate to have a strong, united front in seeking the laws’ extension. Now, with the support of the IADB, we are confident that CFI and ADIH will be able to successfully continue to pursue the renewal of the legislation." Continuing that, "The apparel and productive sector is a key provider of employment in the Haitian economy, and as this government seeks to increase employment, we are happy to be able to continue pursuing the critical investments the sector needs."
SOURCE: The Haiti Libre
Australians believe the free trade agreement (FTA) with China will be of more benefit to them than the free trade deal with the United States, an expert has said. A survey conducted by the Australia-China Relations Institute (ACRI) at the University of Sydney asked 1,500 Australians to identify the free trade agreement that would have the greatest benefit to the Australian economy: the biggest support was for the FTA with China at 44 percent. That compared to 31 percent of respondents choosing the United States, 20 percent for Japan and only 5 percent selecting Australia's FTA with South Korea. "The FTA with China has been welcomed by Australians and that's clearly seen in the survey results," Professor James Laurenceson from ACRI told Xinhua on Thursday. "More Australians think the FTA with China will deliver greater economic benefits than any of our other FTAs."
The free trade agreement between Australia and China, which Australia's Trade Minister Andrew Robb called the most significant China had ever signed with a Western country, was completed in November 2014. Laurenceson also said the ACRI survey, which covered Australians' views on China's increasing economic and military presence in the Asia-Pacific region, showed that Australians rejected extreme views about the rise of China. He said the majority of Australians had not adopted an attitude that China posed a huge threat to Australia's security. "There's some caution there, which is not surprising given China's rapid emergence, but certainly no evidence that China is widely viewed as a threat," he told Xinhua.
"A majority of Australians don't buy into fear-mongering that China's rise is a threat to Australia's national interest," he said. "For example, only 14 percent of Australians said that it would be 'very damaging' for our security if China became the region's dominant power. That compares with 23 percent who said it would be 'Not damaging at all.' And the remaining 63 percent took a position in between." Reflecting government intent to avoid conflict with China, 66 percent of Australians said it would be unwise to join the United States in any conflict against China. However, the issue of expanding military cooperation with the U. S. to combat China's increased presence in the region remained divisive. Laurenceson said the Australian government could do more to teach its public about the benefits and complexities of the relationship with China. "To the extent that the public shows caution, this provides a clear case for the Australian government to invest heavily to better understand and explain our bilateral relationship with China," he said. China is Australia's largest two-way trading partner in goods and services, its largest goods export destination and its largest source of goods imports.
SOURCE: The Shanghai Daily
Turkey's Deputy Prime Minister Numan Kurtulmus said Thursday there are still issues to be resolved with the free trade agreement between the U.S. and the EU, speaking at a panel on the possible impacts of the agreement on Turkish economy in Istanbul. Turkey demands to be involved in the deal -- called the Transatlantic Trade and Investment Partnership -- for its Customs Union agreement with the EU will oblige Turkey to accept the U.S. goods to enter the country without any tariff, while Turkish goods will be taxed. "As the TTIP talks proceed, there will be significant issues between the more liberal U.S. and the tighter regulator, the EU," the minister said. Kurtulmus said this would shrink Turkish economy by 2.5 percent and the unemployment will increase by 0.4 percent, according to a study. "We will not accept anything to be imposed as a fait accompli regarding the TTIP," he said.
The TTIP has the potential to integrate two of the world’s largest economies by cutting tariffs and removing regulatory barriers to trade between the U.S. and the European Union. Turkish officials have repeatedly criticized future free-trade agreements signed by the EU with other countries, which would effectively open Turkey’s market to exports from these states due to Ankara's customs union engagement with the EU. Ali Koc, head of the International Competitiveness Research Institute, said Turkey should not stay out of such comprehensive trade agreements, while acknowledging the involvement talks will be a tough process for the country. Koc also said he does not foresee any agreement between the U.S. and the EU by the end of this year due to lingering differences. "Turkish business world supports and appreciates the government's struggle to revise the Customs Union Agreement and its effort to be included in the TTIP," Koc added. Earlier this month, Turkish Economy Minister Nihat Zeybekci had said Turkey and the EU will start talks on the existing Customs Union agreement.
SOURCE: The Anadolu Agency
African countries will launch the Continental Free Trade Agreement (CFTA) negotiations at the upcoming African Union (AU) Summit scheduled for mid-June this year, it was announced on Thursday. The CFTA will be a main topic at the 25th AU Summit scheduled for June 14-15 in Johannesburg. The CFTA will create a market of over 1.3 billion people with a combined GDP of over two trillion US dollars, Minister in the Presidency Jeff Radebe said at a press briefing in Cape Town after a fortnightly cabinet meeting. Radebe said the CFTA will build on the Tripartite Free Trade Area (FTA) and progress achieved in the regional economic communities. It will also give traders and investors access to a growing market and provide a basis for enhanced intra-Africa trade, said Radebe. At its 18th Ordinary Session in January 2012 in Addis Ababa, the Assembly of Heads of State and Government of the AU adopted a decision and a declaration that reflected the strong political commitment of African leaders to accelerate and deepen the continent's market integration. The leaders agreed on a roadmap for establishing the CFTA by the indicative date of 2017.
As highlighted in the roadmap, the CFTA is set to build on the Tripartite FTA negotiations, which would create a free trade area among the 26 countries of the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC). The AU wants the agreement to be fully implemented by 2016. The 26 tripartite countries represent close to 60 percent of the AU's GDP and population, and an FTA among them would constitute a fundamental building block for the CFTA.
SOURCE: The Global Times
