Textile Raw Material Price 2015-06-29
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1215.91 |
USD/Ton |
-0.33% |
|
VSF |
2046.65 |
USD/Ton |
0.16% |
|
ASF |
2480.79 |
USD/Ton |
0% |
|
Polyester POY |
1180.01 |
USD/Ton |
-0.28% |
|
Nylon FDY |
3076.51 |
USD/Ton |
0% |
|
40D Spandex |
6283.59 |
USD/Ton |
0% |
|
Nylon DTY |
3296.84 |
USD/Ton |
0% |
|
Viscose Long Filament |
5989.81 |
USD/Ton |
0% |
|
Polyester DTY |
1460.73 |
USD/Ton |
-1.10% |
|
Nylon POY |
2856.18 |
USD/Ton |
-0.57% |
|
Acrylic Top 3D |
2627.68 |
USD/Ton |
0% |
|
Polyester FDY |
1387.29 |
USD/Ton |
-1.73% |
|
30S Spun Rayon Yarn |
2725.61 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1942.20 |
USD/Ton |
-0.83% |
|
45S T/C Yarn |
2970.42 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2154.37 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2497.11 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2888.82 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2709.29 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.96 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.35 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.77 |
USD/Meter |
-0.42% |
|
45S T/C Fabric |
0.78 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16321 USD dtd. 29/06/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The import of non-apparel textiles from India by the United States increased by 11.64 per cent year-on-year during the first four months of the current year, according to the data with the US Department of Commerce. In January-April 2015, US’ non-apparel imports from India stood at $1.19 billion, as against imports worth $1.066 billion made during the corresponding months of last year, the data showed. With a share of 13.18 per cent, India was at second position in supplying non-apparel textiles to the US, next only to China which had 47.03 per cent share. Last year, the US imported $3.316 billion worth of non-apparel textiles from India, registering a growth of 7.41 per cent over imports valued at $3.087 billion in 2013. Meanwhile, India’s apparel exports to the US also increased by 9.82 per cent to $1.406 billion during January-April 2015, over $1.280 billion exports made during the same period of the previous year. This growth was greater than the 5.89 per cent growth witnessed in 2014, when US apparel imports from India grew from $3.211 billion in 2013 to $3.400 billion. During the four-month period, India overtook Mexico to become the fifth largest supplier of clothing to the US. China, Vietnam, Bangladesh and Indonesia were the top suppliers of garments to the US market. Overall, the US non-apparel imports showed 5.42 per cent year-on-year growth during the period under review, while apparel imports rose 3.01 per cent, the statistics showed.
SOURCE: Fibre2fashion
The Central government will unveil a new national textiles policy next month that seeks to create 35 million new jobs by attracting foreign investments, a senior ministry official said on Monday. “The new national textiles policy aims at creating 35 million new jobs by attracting foreign investments. The policy will be announced in July after the Cabinet approval,” Textiles Secretary S. K. Panda told reporters after inaugurating the 61st National Garment Fair here. An expert panel had submitted the draft of the new policy, which aims at addressing concerns over lack of enough skilled workforce and labour reforms besides attracting investments and providing a roadmap for the textile and clothing industry. The panel was constituted last year. The Ministry has also sought Rs.12,000 crore for the Technology Upgradation Fund (TUF) scheme for the ongoing 12th Plan (2012-17), he said. The government is also considering setting up modern apparel garment manufacturing centres in each of the seven north-east States. “We have decided to establish one modern apparel garment manufacturing centre in every north-eastern State. The Centre will spend Rs.20 crore for this new programme,” the Secretary added.
SOURCE: The Hindu
India is one of the fastest growing FDI sources for the United States with investors from the country more interested in US' aerospace and textile sectors, among others, a top official at US embassy said today. "India is the fourth fastest growing source of FDI into the United States. The total stock of FDI from India to the United States is USD 11 billion," Paul Frost, commercial attache at US Embassy, told reporters here. He added, "The number is growing and we expect this number to keep growing. Indian companies have also been making large acquisitions in the recent past." He said, sectors like aerospace, textiles, IT and life sciences have been of interest to Indian investors.
Indian firms employ around 44,000 American workers and export more than USD 2 billion worth of goods from America, a statement issued here said. Under the SelectUSA program to promote investment in the United States, the country will organise roadshows in Delhi, Mumbai and Chennai in October, the statement added. From October 26, US will organise a national aerospace FDI exposition in Los Angeles for the first time to attract investment from foreign countries in the sector. "There is a lot of interest in the space sector. This exposition would be of interest to those also in the supply chain like those who manufacture seats for aeroplanes," the official said. Between January 2003 and October 2014, 362 investment projects were announced by Indian firms in USA.
SOURCE: The Business Standard
The rupee could breach 64 anytime, probably as early as Tuesday, due to concerns on the Greece crisis, said currency experts. Some experts also said the rupee was heading towards 65 a dollar, though they agreed currency depreciation would be gradual. Though the Reserve Bank of India (RBI) was expected to arrest volatility, factors such as the US Federal Reserve’s tightening, the monsoon outlook and how the situation panned out in Greece would be the key factors that could impact the rupee. “Today (Monday), the Reserve Bank of India (RBI) had intervened in the market through state-run banks,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai. “Tomorrow (Tuesday), the rupee may touch 64 a dollar and the broad trading range is seen between 63.75 and 64.25 per dollar.”
On Monday, the rupee opened at 63.84 and touched an intra-day low of 63.94 before closing at 63.85, compared with Friday’s close of 63.64 a dollar. The rupee ended near a level last seen two weeks ago, at 64.12. It was the biggest single-day drop for the rupee since June 8, when the currency had ended at 64.09 against the previous close of 63.76. N S Venkatesh, executive director and head of treasury at IDBI Bank, said: “The rupee is still one of the best performing currencies among emerging market economies and this is due to the macroeconomic strength of the country. Today, the equity market did not perform well and this has been putting pressure on the rupee. There is also month-end dollar demand from importers. Besides that, there are some concerns due to the Greece crisis, as a result of which importers have started hedging their unhedged positions.” In another development, government bond yields tracked losses in the rupee and rose on Monday. The 10-year benchmark bond closed at 8.06 per cent against Friday’s close of 8 per cent. The yield on this bond ended near a level last seen on June 16 at 8.08 per cent. “Traders were seen selling bonds today due to the concerns pertaining to Greece. The appetite for bonds has come down. In fact, due to lower appetite, more bond auctions by RBI may get cancelled on Friday as on that day traders had quoted higher yields,” said a bond trader with a state-run bank.
On Friday RBI had cancelled the auction of three of the four government securities. The Financial Stability and Development Council sub-committee report released last Thursday had warned India of the possible risks associated with the Greece debt crisis and the uncertainties lingering over the timing of rate increases by the US Fed. Greece has ordered its banks closed for six days starting Tuesday to avoid a run on the nation’s lenders. The measures put Greece closest to an exit from the euro zone. “The rupee is heading towards 65 per dollar. RBI will do its best to stem volatility in the rupee. The factors impacting the rupee include the Greece situation, the export figures expected to be released, the monsoon scenario and US Fed's outlook on tightening,” said Suresh Nair, director, Admisi Forex India. Meanwhile, tracking losses in the rupee government bond yields rose on Monday and the 10-year benchmark bond closed at 8.06 per cent compared with Friday's close of 8 per cent. The yield on this bond ended at a level last seen on June 16 at 8.08 per cent. Traders were seen selling bonds today due to concerns pertaining to Greece. The appetite for bonds has come down. In fact due to lower appetite more bond auction by RBI may get canceled like Friday as on that day traders had quoted higher yields,” said a bond trader with a state-run bank. On Friday RBI had canceled the auction of three bonds out of the four government securities on auction.
SOURCE: The Business Standard
Negotiations on the India-EU free trade agreement, stalled for over two years, are likely to re-start in August, Commerce Secretary Rajeev Kher said. India may also be able to conclude a free trade pact with Australia by the year-end. Kher said the time was ripe for a free trade pact with the EU as exports from both sides were not growing because of the economic uncertainty in the Zone. “Sectors like textile and leather have taken a beating in the EU. If we can get them to reduce tariffs in these items as part of the trade pact, it would push exports,” he said at an interaction with the media on Monday. Kher is retiring from Government service this month-end. Commerce and Industry Minister Nirmala Sitharaman has already discussed the matter with the EU Trade Commissioner and both sides are interested in getting back to the negotiating table soon. “The EU chief negotiator would be available in August. That is when the talks are likely to re-start,” Kher said. Talks on the free trade pact, officially known as the broad-based trade and investment agreement, got stuck in 2013, as the EU wanted commitments in insurance, legal and retail sectors as well as government procurement while looking for even steeper cuts in import duties for cars. “An agreement with the EU is very much feasible as long as it is realistic. For instance, we cannot give commitments in sectors such as multi-brand retail or legal, where we do not have domestic legislation,” he said.
Largest destination
The 28-member EU is the largest regional export destination for India with the country shipping goods worth $51.63 billion to the bloc in 2013-14 accounting for over 16 per cent of its total exports. Kher said that if India wanted to get out of the negative growth phase in exports, it has to focus on FTAs. On the FTA being negotiated with Australia, Kher said that offers on goods were already being exchanged and offers on services were likely to be exchanged by July-end. “We would need about two more rounds of negotiations after that to finish off the talks,” he said. New Delhi was also focussing on free trade pacts with countries like Peru and Russia as these were important destination. “Peru is important for us to get a foot-hold into the Latin American market. Russia is a huge market in itself,” he said.
SOURCE: The Hindu Business Line
India and Thailand today signed a number of important agreements, including the double taxation avoidance treaty, and exchanged instruments of ratification on the extradition treaty inked in 2013, which provides for the legal framework for seeking extradition of fugitive offenders. The tax treaty provides for the framework to avoid double taxation and prevention of fiscal evasion with respect to taxes so as to promote bilateral economic cooperation. On the last day of her three-day visit, External Affairs Minister Sushma Swaraj co-chaired the 7th meeting of the India-Thailand Joint Commission for Bilateral Cooperation. The extradition treaty signed between the two countries in 2013 provides for the legal framework for seeking extradition of fugitive offenders, including those involved in terrorism, transnational crimes, economic offences etc. The treaty provides for the extradition of any person, who is wanted for trial or for the imposition or enforcement of any sentence by one Contracting state and is found in the territory of the other Contracting state. The exchange of instruments will help both the countries in expedited extradition of fugitives. This treaty will further strengthen the relationship between the security agencies of the two countries, officials said. The two sides also signed a Memorandum of Understanding (MoU) on the Establishment of Nalanda University. By signing this agreement, Thailand joins other East Asian Summit countries in the establishment of Nalanda University in Bihar. The agreements were signed by Swaraj and Thai Deputy Prime Minister and Foreign Minister Gen Tanasak Patimapragorn.
Another significant development during Swaraj's two-day visit here is the signing of an MoU on the establishment of an Ayurveda Chair in one of the Thai Universities. The MoU is between the Ministry of Ayush and Rangsit University of Thailand under which the Central Council for Research in Ayurvedic Sciences will set up a Chair at the Thai University to undertake academic and research activities in Ayurveda. This particular MoU was signed by Ambassador of India to Thailand Harsh Vardhan Shringla and the President of Rangsit University Arthit Quarairat. "Laying a sound foundation for future ties. India & Thailand sign a number of important agreements," MEA spokesperson Vikas Swaroop tweeted. In his other tweets, he said, "The exchange of Instruments of Ratification of Extradition Treaty strengthens framework of our legal cooperation. "Signing of revised Double Taxation Avoidance Agreement strengthens framework of our economic cooperation." Swaraj began the day with a call on Gen Prem Tinsulanonda, President of Privy Council. Co-chairing the 7th Joint Commission meeting, she emphasised trade and investment, connectivity, security cooperation, defence, science and technology and people to people contact as key drivers. "Our Act East policy perfectly compliments Thailand's Look West policy," she said at the meeting. She had earlier described Thailand as an important pillar of India's policy and a valued partner, saying the relationship between the two countries has expanded to virtually all areas of bilateral cooperation in recent years. "Our bilateral relations with Thailand are based on deep- rooted cultural, religious and neighbourly association between the people of our two nations. Our common heritage of Buddhism and the philosophy of compassion, tolerance, non-violence and peace have laid strong foundations for this relationship," she said yesterday.
SOURCE: The Economic Times
The government does not see a direct impact of the Greek crisis on India, but fears there could be capital outflow if eurozone interest rates firm up in case the situation worsens and Greece defaults on its debt repayments. The finance ministry is in touch with the Reserve Bank of India (RBI) on the issue but has no firm plan in place, leaving it to the central bank to deal with developments. "Greece crisis does not have any effect directly on India. Interest rate may firm up in Europe. In case of firming up of interest rate in Europe, there can be outflow of capital from India," finance secretary Rajiv Mehrishi said. "Obviously we are in touch with the RBI, but they will do what they have to do," he told reporters. "This is a dynamic and evolving situation. There is no firm plan that we can access," Mehrishi said. "Nobody can predict what the exact situation would be."Greece has imposed capital controls and shuttered banks to keep them afloat in the face of massive withdrawals after talks with creditors collapsed, raising the odds that the country will default on its debt obligations. The BSE Sensex fell over 500 points in early trade on Monday, but recovered later in the day to close at 27,645, down 166 points from Friday's close.
Chief economic advisor Arvind Subramanian said Indian markets were reacting in line with the rest of the Asian markets. So far there is no causer for worry, he said. Commerce secretary Rajeev Kher said India's exports will not be impacted unless wider European Union is hit. India does not have large expoAsure to Greece as far as trade is concerned, he said, but added that if the crisis spreads to the European Union then it could have negative impact on India's trade. European Union is India's biggest trading partner with an evenly balanced bilateral trade of nearly $100 billion in FY15. Finance secretary Mehrishi said there might be some indirect impact on India if the issue affects the euro. "If yields on euro bonds go up, then it might impact inflows and outflows from India," he said.There have been fears that some of the Rs 1.66 lakh crore foreign inflow into Indian debt in FY15 could rush out if interest rates harden in the US or Europe. There has been net outflow of Rs 2,510 crore from debt so far this fiscal, indicating the caution after a year of biggest inflows. "If yields on G-Sec go on in the US, then it might impact inflows and outflows in India. We really don't know how they (foreign investors) will relocate their portfolio," Mehrishi said.
SOURCE: The Economic Times
The government plans to double trade with Pacific Alliance member nations like Mexico, Peru, Chile and Colombia to $30 billion by 2019. With India recently incorporated as an observer to the Pacific Alliance, a high-level delegation from the ministries of external affairs and commerce & industry is leaving for Peru to attend the 10th edition of the Pacific Alliance summit, which is the world’s eighth largest economy and seventh largest export entity. According to the former envoy of Peru in India, Javier Paulinch Verlade, “There is no doubt the recent incorporation of India as an observer state will strengthen our relations, as one of the most important players in the region.” “We are committed to work closely with 32 observer states and are, therefore, strengthening relationship with them by defining projects of cooperation in core areas including education, trade, small and medium businesses, innovation, infrastructure and science and technology,” pointed out Verlade. Ambassador of Mexico Melba Pria said, “It’s worth noting that Pacific Alliance members as well as countries interested in joining are required to have trade agreements with all other members.” To increase bilateral trade, Chile is working on having in place a more comprehensive trade agreement with India, for which negotiations are going on between India and Chile to include services and goods.
SOURCE: The Financial Express
India and 49 other founding countries, have signed an agreement which provides a legal framework for the China-led ‘100 Billion’ US Dollar, Asian Infrastructure Investment Bank (AIIB). The 60-article agreement specified each member’s share as well as governance structure and policy-making mechanism of the bank, which is designed to finance infrastructure in Asia. The delegates from over 50 founding countries gathered at the Great Hall of the People in Beijing for the signing ceremony yesterday. Seven more countries are due to sign by the end of the year.
SOURCE: The Financial Express
India’s growth rate is expected to accelerate to eight per cent in the current financial year and the economy will surpass $3 trillion in less than five years, NITI Aayog Vice-Chairman Arvind Panagariya said on Monday.“I will be greatly disappointed if we do not hit the eight per cent-mark in 2015-16. I expect the economy to hit $3 trillion within five years or less,” he told PTI in an interview.Indian economy, which is about $2 trillion, recorded a growth rate of 7.3 per cent in 2014-15. India is presently the third largest economy in Asia after China and Japan. On the back of ongoing reforms and stress on manufacturing sector as part of the ‘Make in India’ drive, the NITI Aayog chief said India can look for much bigger share in global exports, the global economic woes notwithstanding. “The world economy is large and our share in the world exports is still below two per cent. So we have a huge scope for growth even in a sluggish world economy. As long as we continue on the reforms path and ensure that the rupee does not become unduly overvalued, we will be well positioned to chip away some of the 12 per cent share that China currently enjoys in the world merchandise exports. Wages in China have already risen enough, many manufacturers are looking for new destinations with lower wages and India is well placed to be that destination,” Panagariya said. On global developments impacting India, he said the “fragility of the global economy itself is greatly overstated”.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 59.95 per barrel (bbl) on 29.06.2015. This was lower than the price of US$ 60.70 per bbl on previous publishing day of 26.06.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3832.00 per bbl on 29.06.2015 as compared to Rs 3860.52 per bbl on 26.06.2015. Rupee closed weaker at Rs 63.92 per US$ on 29.06.2015 as against Rs 63.60 per US$ on 26.06.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 29, 2015 (Previous trading day i.e. 26.06.2015) |
Pricing Fortnight for 16.06.2015 (May 28 to June 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
59.95 (60.70) |
62.08 |
|
(Rs/bbl |
3832.00 (3860.52) |
3966.91 |
|
|
Exchange Rate |
(Rs/$) |
63.92 (63.60) |
63.90 |
SOURCE: PIB
China has ‘put out feelers’ to join the Asia-Pacific trade deal, as per the US media which is breaking news but not a surprise at all for Vietnamese experts. China will not only need the nod of the US to join TPP but the community of 12 member countries, and China will have to negotiate with each of the 12 countries to obtain TPP membership. The countries will have the right to set conditions for China, and China will have to pay to join TPP. Bui Kien Thanh, a renowned economist, noted that people have every reason to think that the main goal of a 12-member ‘without-China’ TPP agreement, expected to control 40 percent of the world’s trade, is to confront China. However, anything can happen in a time of globalisation. The countries initiating the establishment of TPP want to set up a community which can serve as a counterbalance to China to protect them from China’s influence. However, Obama has kept the door open to China joining TPP. Avoiding conflict is the prevailing principle in the world. Negotiations can be the key to problems.
According to Thanh, all TPP members have to follow the principles about human rights, respect for each other’s territorial sovereignty and navigation freedom. Being a member of an organization, one must respect the rules of the organization which will be set up by the organization’s members based on negotiations. It is clear that TPP upholds the 12 countries’ interests and protects them from being blocked by China. But it is still unclear what price China will have to pay. Vietnamese textile and garment enterprises have been using Chinese input materials to make finished products. However, when Vietnam joins TPP, they would rather buy input materials from TPP member countries to be able to enjoy TPP’s preferential tariffs. If so, China will lose an important customer - Vietnam. China has been preparing well for this. It has relocated factories to Vietnam to make Vietnam-sourced products which can enjoy preferential tariffs. Besides the TPP, the US has announced the launch of talks on the Transatlantic Trade and Investment Partnership with the 28-nation European Union, with the first round of negotiations due in early July. The two sides already have bilateral trade and investment worth nearly $5 trillion, the world’s largest.
SOURCE: Yarnsand Fibers
American trade negotiators demanding Vietnam, a major garments exporter to reduce its reliance on textiles made in China, which isn’t part of the trade pact, to get preferential market access to the U.S. The Senate is expected to pass on Wednesday legislation to expand President Barack Obama’s trade-negotiating powers after a bruising battle that has put pressure on proponents to show that the 12-nation Trans-Pacific Partnership will create jobs in the U.S. The U.S., aiming to bolster American exporters, is stipulating that countries joining its new Pacific trade zone cut back on imports from China—a proposal that is meeting resistance from businesses and officials who say it will disrupt global supply chains. The goal is to create new markets in Vietnam for the U.S. textile industry, which employs a quarter of a million Americans and exported $20 billion last year. According to Eliza Levy, a spokeswoman for the National Council of Textile Organizations the U.S. and Mexico are especially large textile producers. Vietnam would simply have to shift its sourcing of yarns and fabrics from China to the U.S. and Mexico.
U.S. fashion brands oppose this approach, which they say ignores the complexities of global supply chains. Vietnam is the second-largest exporter of apparel and footwear to the U.S., behind China, with $13.1 billion in sales last year. But the country only produces enough fabric to meet a fifth of its needs and buys about $4.7 billion worth from China, or about half its total annual imports. Clothing brands want duty-free entry to the U.S. for all goods made in the new free-trade zone, no matter where the fabric is produced. The trade negotiations could slash U.S. duties on many of Vietnam’s exports of garments and shoes to zero from between 7% and 32%. Julia Hughes, president of the U.S. Fashion Industry Association, a trade group representing American brands, said that U.S. textile exporters won’t be able to feed Vietnam’s appetite in sufficient quantities, forcing garment producers there to continue to rely on Chinese fabrics. Vietnam isn’t going to get much duty-free access to the U.S. under current rules.
The U.S. garment industry argues that free trade will help the sector, which employs three million people, including designers and retail workers. In Congress, though, the debate over whether free trade imperils manufacturing employment has made the Pacific trade pact a contentious issue. Trevor Kincaid, a deputy assistant U.S. trade representative, said that the deal will deliver new opportunities for American-based businesses, including opportunities related to textiles and apparel in Vietnam. The administration has a single-minded focus on getting the best possible deal for American workers and exports. Vietnam has its own ideas. The country is working quickly to develop a homegrown textile industry, which would help get around the restrictions. Vietnam is seeking to reduce its reliance on imports from China for its garment industry to better benefit from TPP, said Phan Chi Dung, a senior official with Vietnam’s Ministry of Industry and Trade. However, he sees little chance of U.S. producers filling the void.
Companies from Hong Kong, South Korea and Taiwan recently have poured hundreds of millions of dollars into textile factories in Vietnam, hoping to later obtain tariff-free entry to the U.S. market. TAL Apparel Ltd., a Hong Kong-based company which makes one in six dress shirts sold in the U.S., is building a $240 million textile plant in Vietnam, likely to complete by 2017, to feed its two garment factories there. According to Roger Lee, chief executive of TAL Apparel, it will take five years for Vietnam’s textile industry to be self-sufficient. U.S. textile suppliers are too costly and far away from Asia to be competitive. Chinese companies, too, are moving factories to Vietnam as wages rise at home and in anticipation of the Pacific trade zone.Youngor Group, a Chinese apparel maker that runs a factory in Vietnam’s northern Nam Dinh province, is looking to source more textiles from Vietnam, rather than from its own factories in China, with an eye on exporting duty-free to the U.S. Ou Kui, manager of Yanian Garment Co., a Chinese apparel company based in Hanoi, is also looking at producing zippers, buttons and other accessories to help investors from China meet local-content requirements. Under pressure from U.S. brands, the trade agreement would allow Vietnam to continue to source from any country textiles and yarns on a short-supply list—inputs that aren’t produced in sufficient quantities inside the proposed trade zone. Vietnam’s textile industry, if it expands rapidly enough, can even compete with U.S. textile exports to Mexico, which is also part of the Pacific trade discussions as per the recent congressional report.
SOURCE: YarnsandFibres
Congress gave President Obama sole authority to negotiate the Trans-Pacific Partnership last week. The 12-nation trade deal – known as the TPP - would create a free trade zone stretching from Japan to Chile that includes 40 percent of world’s economy. It has been a key legislative priority for Obama and very controversial, pitting Obama against liberal members of his own party and labor unions.The deal has also created a rift in the apparel industry - between big, national companies and smaller ones here in Southern California.Big companies like Nike, the Gap, and Hanes have been strong supporters of the TPP, as have industry groups like the U.S. Retail Federation and the U.S. Fashion Industry Association, which formed the TPP Apparel Coalition. “We’re looking at it as an opportunity," said Julia K. Hughes, President of the United States Fashion Industry Association. "Free trade agreements are important to our sector.”After NAFTA went into effect in 1994, U.S. textile and apparel exports to Canada increased by 77 percent and to Mexico by more than 200 percent, according to the U.S. Department of Commerce. In 2006, CAFTA went into effect with Central American countries and the Dominican Republic, which helped make Honduras America’s biggest source of T-shirts, according to the consulting firm Kurt Salmon.“Certainly NAFTA and CAFTA have been huge success stories and I think they have certainly proven positive throughout the industry,” said Hughes.For the Hanes and Gaps of the world, that's certainly true; those companies' profits have soared as they have been able to tap into new markets while making ever-cheaper clothes. However, for U.S. apparel workers, the era of free trade has been devastating.Employment fell by 80 percent from 1990 to 2010, according to the U.S. Labor Department.
Many of the remaining manufacturers are here in the LA-area, but they haven’t fared much better; From 2002 to 2012, almost 60 percent of those jobs disappeared in California, according to the Los Angeles County Economic Development Corporation."The problem was the small, independent apparel manufacturers did not see big gains because they did not want to outsource their work, but it put them at a competitive disadvantage," said Steve Smith, a spokesman with the California Labor Federation.A boutique manufacturer stays in Southern CaliforniaBy focusing on the higher-end market and staying small, Karen Kane, a women’s apparel company headquartered in Vernon, has survived. Inside a sprawling 130,000 square-foot warehouse, a seamstress sows the final threads of a tank top, the kind of labor-intensive single needlework that most companies now outsource.But the company’s CEO, Lonnie Kane, is no protectionist. He's in favor of free trade because he believes it benefits the overall economy, which in turn boosts his company.“I was a big supporter of NAFTA,” said Kane.Kane was hoping NAFTA would open up doors to Mexico, but it never panned out.“Yes, to a degree it was disappointing," said Kane. "But this is business and you play the cards you’re dealt.”Since the company makes nearly all of its goods domestically, Kane says the TPP won’t help. Who it will benefit are Asian manufacturers and importers. China – the number one exporter by far – isn’t in the agreement. But Vietnam, which accounts for 10% of U.S. apparel imports, is. Right now, companies there pay up to 32 percent tariffs on goods entering the U.S. Under the TPP, those goods could come to the U.S. duty-free, giving outsourcers an advantage over people like Kane.“It could be adverse to me because they’re going to import goods cheaper, and it could be harder for me to compete against them,” said Kane.'If they want the apparel industry gone, they’re working on it'
In a report last year, the non-partisan Congressional Research Service warned the TPP could increase competition for Western manufactures and reduce demand for U.S. textile exports because Asian apparel producers could export clothing to the United States duty-free. Ilsa Metchek, the longtime head of the California Fashion Association, says she’s baffled by politicians in Washington who don’t seem to care about U.S. apparel jobs."What we do now is import 90 percent of what we ship that used to be made in the United States," said Metchek. "The footwear industry has completely left the country. If they want the apparel industry gone, they’re working on it.”Metchek predicts Southern California’s apparel manufacturing will shrink an additional 20 percent if the TPP goes into effect, based on how many factories are left. “My reaction is that it’s yet another treaty that ignores the 'Made in USA' profile of consumer products,” she said.But Julia Hughes, her counterpart in Washington, says that’s much too pessimistic. “We don’t see it the same way I guess," said Hughes. Hughes says free trade agreements can’t be blamed for the loss of apparel manufacturing jobs. Instead of sewing, American workers are doing more high-skilled work, like designing and marketing, and she says that’s a good thing for our economy overall.“In my family, folks worked in the mills in New England making sweaters, but my father didn’t do that, and I don’t do that,” said Hughes.Just about the only thing everyone agrees on is that they need to see the final details of the TPP to know exactly how things shake out."We know there are some 600 corporate advisors to the TPP, but there's nobody looking out for workers," said Steve Smith, a spokesman with the California Labor Federation.
A key question for the apparel industry is whether the agreement includes a yarn-forward provision, which requires material to come from a TPP country in order to be duty-free. The textile industry has lobbied for a yarn-provision rule, which the California Fashion Association also supports. Big apparel makers and retailers are against it. “Inflexible rules on apparel trade, like yarn-forward, don’t work because they are not compatible with how business operates in the 21st Century,” Matt Shay, president and CEO of the National Retail Federation said in a statement. Richard Wortman, a lawyer who represents textile importers and exporters, points out the draft of the TPP is secret. “I think in the end the devil is going to be in the details," said Wortman. "We still don’t know what the details are going to be.” And many of those details likely still have to be worked out. Obama got his fast-track authority from Congress. But now the really hard part: He has to hammer out a final deal with the 11 other countries in the TPP.
SOURCE: KPCC
The Mexican government has revised standards for labeling of textile and apparel products, which must now comply with appropriate mandatory standards (NOMs) or voluntary standards (NMXs). Generally, all apparel, apparel accessories, textile products and home textiles with over 50 per cent textile content must comply with the official Mexican standard for mandatory labeling requirements. In order to allow manufacturers, importers and marketers adjust their production processes to comply with the new requirements; authorities will accept products that are legal before the effective date. “The items may continue to be sold until as long as they meet the previous standard, NMX-A-099-INNTEX-2007 and comply with the rest of the parameters specified in NOM-004-SCFI-2006,” a SGS press release said.
According to the Official Gazette, NMX-A-2076-INNTEX-2013 ‘Textiles - Chemical fibres – Generic names’ supersedes NMX-A-099-INNTEX-2007 and lists the generic names used to designate the different types of fibres.“This standard is fully consistent with the International Standard ISO 2076:2010 ‘Textile-Man-Made Fibres- Generic Names’, SGS added.The major change in this new standard is that the generic names must be written without capital letters.The other standard NMX-A-6938-INNTEX-2013 ‘Textiles – Natural Fibres – Generic Names and Definitions’ supersedes NMX-A-099-INNTEX-2007.This new standard provides generic names and definitions for the most important natural fibres in accordance with the fibre constitution or specific origin.The standard provides a list of names in common, together with the relevant standard designations and consistent with the International Standard ISO 6938:2012 ‘Textile-Natural Fibres-Generic Names and Definitions’.One important change in this new standard is that the words ‘lana’ (wool), and/or ‘pelo’ (hair), can be now added before the generic name of some animal fibres.Lana may be added before alpaca, angora, cashmere, camel, guanaco, llama, mohair, vicuna, yak, beaver and otter.Pelo may be added before cow, deer, goat, horse, rabbit, hare, nutria, seal, muskrat, reindeer, mink, marten, sable, weasel, bear, ermine and arctic fox.
For apparel and apparel accessories, one or more permanent and legible labels must be attached at the collar, waist or any other visible location with the below labeling information in Spanish or in any other language.The fibre composition standard in accordance with NMX-A-099-INNTEX-2007 has been replaced by NMX-A-2076-INNTEX-2013 and NMX-A-6938-INNTEX-2013 with effect from September 2015.In case of country of origin, it should have name and address of the manufacturer or importer with a voluntary mention of the RFC number.This information must be included on the permanent label, a temporary label or the product’s closed packaging.While for closed packaging, all information pertaining to NOM-004-SCFI-2006 must be permanently labeled on the product and with a temporary label on the packaging
SOURCE: Fibre2fashion
Although sales of textiles machinery have fallen in 2013 and in 2014, those gathered at the annual general meeting of the Association of Italian Textile Machinery Manufacturers (ACIMIT) showed optimism. This optimism, according to an ACIMIT press release, comes from the biggest textile machinery show returning to Italy after 20 years and which will be held in November 2015. “ITMA 2015, the industry’s most important trade fair provides an opportunity to showcase Italian technology and stimulate new investments from the textile sector in Italy and Europe,” it said. Italian textile machinery production dropped marginally by 1 per cent in 2014 over 2013 to amount to just over €2.3 billion. After falling the two previous years, exports in 2014 touched the same value as in 2013 at around €1.95 billion, with exports destined to Asia and Europe making up for 81 per cent of overseas shipments. However, whereas its exports to European markets grew in 2014 compared to the previous year, they actually fell in Asia. Exports to China which is one of the main export markets of Italian machinery fell by 25 per cent in 2014 as against the previous year, a result of less than expected robust economic growth.
On the other hand, exports to India, Bangladesh and Vietnam were on the rise, and Italian textile machinery manufacturers also did well in Turkey, the US and Iran. During the current year, the industry stands to benefit from macro economic factors that are making forecasts lean towards a cautious optimism. However, ACIMIT expects to receive a boost to exports of textile machinery to China, which is one of its biggest export market and also to Europe. ACIMIT expects ITMA 2015 to be a driving force capable of energising Italian and European investments in the textile industry. “Our manufacturers are very confident about the event next November,” ACIMIT’s president Raffaella Carabelli said. “A total of nearly 430 exhibitors at ITMA are from Italy, covering around 31,000 square meters, up 50 per cent over the Barcelona edition and 30 per cent of total exhibition space at ITMA,” Carabelli noted. “There’s no doubt that within Italy, the textile machinery industry is one of its most important sectors, due to its strong showing in global markets,” Roberto Luongo, general director of Italian Trade Agency said. “Our textile technologies are considered of a very high qualitative level, which is an element of great pride and satisfaction for us, which urges us to support Italian businesses,” Luongo observed. “The ITMA trade fair in Milan represents a unique opportunity for Italy’s textile machinery industry, which is why, a project ‘Special ITMA Milano’ has been set up to help numerous manufacturers maximise individual efforts,” he too added.
SOURCE: Fibre2fashion
