INTERNATIONAL
Textile Raw Material Price 2015-08-02
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1128.68 |
USD/Ton |
0.72% |
8/2/2015 |
|
VSF |
2125.51 |
USD/Ton |
0% |
8/2/2015 |
|
ASF |
2471.99 |
USD/Ton |
0% |
8/2/2015 |
|
Polyester POY |
1085.27 |
USD/Ton |
0% |
8/2/2015 |
|
Nylon FDY |
2813.65 |
USD/Ton |
-0.57% |
8/2/2015 |
|
40D Spandex |
5948.86 |
USD/Ton |
0% |
8/2/2015 |
|
Nylon DTY |
3054.82 |
USD/Ton |
0% |
8/2/2015 |
|
Viscose Long Filament |
5940.82 |
USD/Ton |
0% |
8/2/2015 |
|
Polyester DTY |
1366.63 |
USD/Ton |
0% |
8/2/2015 |
|
Nylon POY |
2620.71 |
USD/Ton |
-1.21% |
8/2/2015 |
|
Acrylic Top 3D |
2664.93 |
USD/Ton |
0% |
8/2/2015 |
|
Polyester FDY |
1318.40 |
USD/Ton |
0% |
8/2/2015 |
|
30S Spun Rayon Yarn |
2717.18 |
USD/Ton |
0% |
8/2/2015 |
|
32S Polyester Yarn |
1800.74 |
USD/Ton |
0% |
8/2/2015 |
|
45S T/C Yarn |
2877.96 |
USD/Ton |
-0.56% |
8/2/2015 |
|
45S Polyester Yarn |
1977.59 |
USD/Ton |
-0.81% |
8/2/2015 |
|
T/C Yarn 65/35 32S |
2427.78 |
USD/Ton |
0% |
8/2/2015 |
|
40S Rayon Yarn |
2861.88 |
USD/Ton |
0% |
8/2/2015 |
|
T/R Yarn 65/35 32S |
2620.71 |
USD/Ton |
0% |
8/2/2015 |
|
10S Denim Fabric |
1.13 |
USD/Meter |
0% |
8/2/2015 |
|
32S Twill Fabric |
0.95 |
USD/Meter |
0% |
8/2/2015 |
|
40S Combed Poplin |
1.05 |
USD/Meter |
0% |
8/2/2015 |
|
30S Rayon Fabric |
0.76 |
USD/Meter |
0% |
8/2/2015 |
|
45S T/C Fabric |
0.77 |
USD/Meter |
0% |
8/2/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16078 USD dtd. 02/08/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The textile sector on Saturday sought from the government more funds for technology upgrade, duty reduction on man-made fibres (MMF) and interest subvention to spur exports. "We have urged Finance Minister Arun Jaitley to allocate adequate funds for technology upgradation, cut duties on MMF and restore interest subvention for exporters," a trade body representative said in a statement here. In a representation to Jaitley, the Federation of Indian Chamber of Commerce and Industry's (FICCI) textile committee said though export of textiles and clothing products increased steadily over the years, it was below par in the post-quota era. "There is no reason why we cannot achieve 20 percent export growth over the next decade as China is vacating space in manufacturing," said panel chairman Shishir Jaipuraia in the statement.
With budget for the technology upgradation fund scheme slashed to Rs.1,520 crore from Rs.1,840 crore for 2015-16, the panel sought to increase it to Rs.5,000 crore, as it has been helpful in attracting investments in the sector. "We are also concerned over the government move to consider the TUFS term loans in the new scheme under the current review as it would affect projects on hand," said Jaipuria. The panel has sought export finance at seven percent interest per annum to boost competitiveness and accelerate exports growth, as interest subvention benefited the sector. "Excise duty on MMF should be reduced to eight percent from 12.5 percent to bridge the gap between fibre and cotton, as the revenue loss can be made up with increased consumption as in the past (2008-09) when duty was four percent," Jaipuria said. The panel also wanted the new textiles policy draft of the Ajay Shankar expert committee to be released. Jaitley has assured the committee members he will consider their suggestions, the statement added.
SOURCE: The Business Standard
The Narendra Modi-government may wait for the Budget session to get the Constitution Amendment Bill for introduction of Goods and Service Tax passed. The Bill has not been listed for consideration during the week starting August 3. If the Constitution Amendment Bill does not get passed during the current session, the chances of implementing the GST from April 1 next year will be bleak. In such a situation, the new indirect tax system would be in a place only a year later, that April 1, 2017, as such a taxation system cannot be implemented in the middle of a fiscal year. A Constitution Amendment Bill needs order in the House to get passed. But continuous disruption has virtually stopped legislative business in both the Houses and the situation is unlikely to change during the remaining nine sittings of the Monsoon session. Government managers feel the situation will be somewhat similar during the Winter session. However, “there will be some change in the composition of the Rajya Sabha before the Budget session. Even then, the Government will not be in majority, but chances could still be bright as protests will subside by that time,” a government source said.
Rating agencies
But, any delay in the introduction of GST will not go down well with international rating agencies. Moody’s, in its latest report, has cautioned that lack of reforms in areas such as land acquisition, labour laws and GST could derail medium-to-long term growth prospects. “Green shoots are slowly emerging, but the government’s failure to deliver promised reforms is the major impediment,” it said, adding that the logjam in Parliament is hindering passage of key reform Bills. “Given the political seesaw, these are unlikely to be delivered until later this year or even 2016,” it said. Highlighting these warning signals, Parliamentary Affairs Minister M Venkaiah Naidu said passage of important legislations is ‘very crucial to give much desired momentum to economic growth.’ “All responsible stake holders should take these warnings very seriously. Reforms are very necessary,” he said, urging the Congress to reconsider its stand and allow normal functioning of Parliament.
Opposition’s demand
Pointing out that land and GST Bills were sent to parliamentary committees due to the Opposition’s demands, he said the government has “walked the extra mile” to meet their demands, especially those of the Congress and recalled that it had given assurance that it would help the passage of GST Bill in the monsoon session. Meanwhile, despite the Union Cabinet approving official amendments in the Bill, as suggested by the Select Panel, the legislative agenda for the week starting August 3, does not mention the Constitution Amendment Bill for consideration and passage. Interestingly, the Government is still hopeful of getting the nod. Once this is done, then the legislation needs approval from at least 15 State Assemblies before the Presidential assent. After this, the Centre will have to enact legislation for Central GSTs and another one for Integrated GST (IGST), while States will be required to approve legislation for SGST.
SOURCE: The Hindu Business Line
There are so many issues in GST which are not settled, but I am now focusing on mostly those, which came up for discussion, after a Rajya Sabha select committee, on July 20, submitted a report endorsing majority provisions of the Goods and Services Tax (GST) Bill. Two points are most relevant, namely, the issue about allowing states to levy one per cent additional tax and the Centre agreeing to compensate states for revenue loss for five years. The Congress filed a dissent note on eight provisions, including composition of the GST council and the proposal to allow states to levy one per cent additional tax. There is also the issue of revenue neutral rate of tax (which has of course not been dealt with by the committee) which merits discussion here.
First, let us take the one per cent additional levy which is not to be given credit. This is the one which is most resented by traders and manufacturers. But there are certain redeeming features as well. This was earlier proposed, at the insistence of states, that even stock transfers of goods of a company's transfer goods from godown to another of their own and that would not attract one per cent. That was the view of the Centre. Now, the select committee has confirmed this view that it is not leviable on the stock transfers. It will immensely benefit trade and industry. Secondly, this one per cent is less than the four per cent which was being charged earlier. So, it is a better deal. Lastly, it may be discontinued if the revenue collection is buoyant and it depends on the GST council where two-third majority will decide the issue.
The second issue is about the compensation of states for five years to the extent of 100 per cent of the loss. The Centre's agreeing to the states' demand for 100 per cent for five years has been a master-stroke. In fact, this will not be necessary for five years at all. In all arguments of the Centre as well as the expert committees on the subject, it has been held that the revenue will increase substantially, if only for better compliance and trade facilitation which will increase due to common market. If it is so, it is only theoretical that the compensation will be 100 per cent for five years. The legend has it that you can make a promise which you do not have to keep.
The third issue is about the revenue neutral rate. Some economic analysts are of the view that if the three items - alcohol, tobacco and petroleum - are included, then the neutral rate of 27 per cent may come down probably to 18 per cent. Actually, this is not a logical proposition. It can come down only if the average duty of these three items is less than 27 per cent. It is just the opposite of it. These three are highly taxed items. Cigarette is very highly taxed, both, by the Centre and the states. The rate comes to more than 100 per cent easily. Similar is the case of alcohol. And it varies from state to state. Petroleum is also a very heavily taxed item like the others. The average tax, whether we take median or plain average, which is the neutral rate for these three items, is much higher than the average rate for other goods in respect of central excise, service tax and sales tax. So, if these three are included in GST, there is no chance at all that the revenue neutral rate will come down. Some expert committees, in the past, have recommended just 18 per cent, but they never calculated in great detail, as would have been done by the National Institute of Public Finance. If there is a political decision to reduce it to 18 per cent or 20 per cent that will be arbitrary and there will be serious revenue short fall. One has to remember, also, that even if these three items are included in GST, then also there will be a separate rate far higher than the general rate.
With these three items, there will be four rates. There are good reasons for including them for expanding the tax-base but not for bringing the general rate down.
SOURCE: The Business Standard
The global economy is experiencing serious disruption. The European Union is weak. Even Germany has not kept up its robust pace. The lack of a political union leaves the common currency (the euro) without the strong common fiscal and monetary policies it requires. The Chinese economy is declining. Vast internal debts of provinces and state-owned or controlled enterprises are one reason for the collapse of Chinese stocks. As the largest minerals importer, it was the growth engine for many countries. Canada, for example, is getting into a deep economic crisis because of a sharp fall in Chinese imports. The collapse in crude oil prices has now adversely affected coal as well. Oil price decline began with the shale oil discoveries and the consequent fall in American imports. Saudi Arabia encouraged oil price decline. The return of Iran as an oil supplier after the removal of sanctions has led to a weakening of Middle East economies. The decline in oil prices has resulted in cancellation of over $200 billion of expenditures in new oil wells. Japan is in an uncertain state for recovery. Russia is in trouble; its excessive dependence on oil exports is now worth a lot less. Of the large economies, the US shows improvement. The dollar is a magnet for most countries and is getting much stronger. Inflows from unstable economies and currencies further strengthen the US economy. Indeed, the Federal Reserve is carefully considering raising interest rates. There is another lurking danger, to the global economy. This is the state of banks and financial institutions. They lend with little diligence (as in 2008) the flood of money as countries use quantitative easing to revive their economies, at very low interest rates. And in India it is the state of nationalised banks and financial institutions; who lend with little diligence as also under government instructions.
India’s macroeconomic situation, however, is better. Low oil prices have greatly moderated inflation, though many items of daily consumption are experiencing price rise. Despite poor export performance, low oil prices have improved the balance of payments and the rupee is relatively stable. There is, as yet, no dramatic improvement in either public or private investments. This is despite the Budget proposals for substantial infrastructure investments. The sales of two-wheelers and cars are not showing the expected rise. There is apparently a glut of ready urban housing. Almost half of power generation capacity is unutilised and a fourth of relatively lower priced power is not traded. Over 15,000 MW of gas-based power generation capacity is unutilised because there is no gas available. Most state electricity boards have accumulated huge losses but state governments will not permit adequate tariff recovery. They give away free electricity to farmers, of which a good part is stolen for urban use. Inter- and intra-state transmission bottlenecks prevent optimisation of supply with demand. Fresh equity issues have yet to show good growth. Nationalised banks are in bad financial shape, due chiefly over the years to government-directed lending. Inaction over the years to plug hawala routes led to Mauritius and participatory notes becoming the major route for financial institutional investors. With the need for investment funds, the government is unlikely to plug these money laundering routes (a mere mention dramatically reversed FII inflows). The Prime Minister’s early trips to Japan and China have yet to result in significant inflow of promised investment funds. It is against this backdrop that we must view the economic impact of the logjam in Parliamentary legislation. Three Bills must be passed urgently to stimulate the economy. First is Constitutional amendments to bring uniform goods and services tax which will ease the flow of goods across the country and add to GDP growth. Second and third are reforms to land and labour laws. In view of the inability of Parliament to function, there is now a suggestion to leave states to amend state legislation. These will be approved by the President. As these are concurrent subjects in the Constitution, a central law with states competing to make the law more attractive in their states is desirable. There are, of course, many other laws that need passing or amending to ease doing business in India.
A major problem, apart from the obstreperous Opposition, is the dire lack of talent in the central Cabinet. The home minister is inarticulate and better at threats than action. There is no sign of any attempt to improve the living and working conditions, training and equipment of police forces. There is no sign of administrative reform to identify individual accountability, provide guaranteed tenures to officers, put transfers, promotions, punishing, etc, of civil servants under an independent commission, induct specialists into governments, etc. Defence is yet to re-equip the armed forces. As with earlier governments, there is no integrated agricultural policy, and no plan to build needed agricultural assets or rationalise agricultural markets. There is no attempt at integrated transport, energy, water or health policies either. There are different ministers and departments for all subcategories (for example road, rail, shipping, inland water) but little coordinated policy-making. Road construction is still mired in red tape and corruption. Private investment has been frightened away from most infrastructure investment because of delayed clearances, mess in power distribution, “levellised tariffs for 25 years”, etc. Foreign policy appeared to be this government’s unexpected strength. But the initiatives have not translated themselves into benefits for the economy. The approach to Pakistan, for example, is confusing and ineffective. If the Pakistan civilian government is not able to deliver, why does our civilian government not deal with their army? India is unusually poised to take advantage of a weak global economy. It is instead fighting internal political battles, with little finesse. Meanwhile, time is running out. Over 20% of its term is gone. The BJP government needs to win the coming state elections. If it does not, it will make little impact.
SOURCE: The Financial Express
The country’s RMG manufacturers are likely to get two more months to complete RMG factory assessment –structural integrity, fire and electrical safety inspection – led by the ILO and the government. Syed Ahmed, inspector general of Department of Inspection for Factories and Establishments (DIFE), has raised the issue on extending the deadline at the meeting held in the city recently, a senior official, who attended the meeting, told the Dhaka Tribune on condition of anonymity. Ambassadors from five countries, who attended the meeting, also advocated in favour of extending the time frame while the ILO representatives agreed to extend the deadline in principle. “The ILO will soon formally inform the BGMEA authorities through issuing a letter,” said the official. The 3+5 committee, comprising of three secretaries from Labour, Commerce and Foreign Affairs ministry and five ambassadors from EU, US, Canada and the Netherlands have been regularly reviewing the progress of implementation of the Sustainability Compact and progress in the RMG sector. Earlier, the BGMEA in a letter urged the International LabourOrganisation(ILO) to extend the time frame for completing cost-free factory inspection by two more months as the owners faced trouble due to Ramadan and Eid vacation. “We’ve sought extension of the deadline to complete safety inspection as the factory owners has faced troubles due to Ramadan, Eid vacation and the delayed start of the inspection,” BGMEA Vice President ShahidullahAzim told the Dhaka Tribune. The ILO had earlier extended its deadline several times and lastly it was extended till July 30 through a letter signed by its Country Director Srinivas B Reddy on May 6. The ILO also said after the deadline (July 30) the assessment would require charge that has to be borne by the building and factory owners.
Under the initiative, the ILO-led inspection has so far inspected 1,031 RMG factories in collaboration with BGMEA and BKMEA and would inspect 300 more factories. The ILO through its “Improving Working Conditions in the RMG Sector” funded by the Royal Netherlands Government, Canada and UK is providing financial and technical assistance for the government of Bangladesh for implementation of the National Tripartite Plan (NAP) of Action Plan on Fire and Structural Integrity in the country’s RMG sector.The NAP was signed in 25 July 2013. The safety issues came under spotlight after the Rana Plaza factory collapse that killed over 1,135 workers and injured over 2,500 people on April 24, 2013.
SOURCE: The Global Textiles
South Korea's Panko group has started construction of a garment and textile factory in Vietnam's Tam Thang industrial zone in Tam Ky city, the central province of Quang Nam, according to reports in the Vietnamese media. The factory is being built on an area of over 30 hectares with a total investment capital of $70 million and it is expected to employ about 15,000 workers. The factory will specialise in producing clothing and textile products, dyeing, garment and textile materials. Each year, it will produce 24,000 tonnes of textile products, 24,000 tonnes of dyeing products, 75,000 tonnes of garment products and 30 million tonnes of material products. On the same day, another Korean firm, Duck San Enterprise started work of a $10-million textile plant, covering 6.6 hectares. It has a capacity of 19,200 tonnes of fibre, cloth, textile and dyeing products each year. Head of the management board of Chu Lai Open Economic Zone Do Xuan Dien said the two textile and garment-dyeing projects would help to attract investment from domestic and foreign firms to the Tam Thang industrial zone in the future. "We have also invited investment in the garment and textile industry in the industrial zone as the province has assigned it as a major textile zone. The province also offers a skilled and competitive labour force," Dien said.
SOURCE: Fibre2fashion
Negotiations between the government and textile industry representatives remained inconclusive on Saturday after Finance Minister Ishaq Dar refused to accept demands such as the withdrawal of electricity surcharges and gas cess. As a result, the All Pakistan Textile Mills Association (APTMA) refused to withdraw its August-7 strike call, which would further compound problems of the beleaguered federal government that is already struggling to cope with a countrywide shutter-down strike by traders. The agitation strategy adopted by APTMA and All Pakistan Anjuman Tajaran has dented PML-N’s pro-business image. APTMA blamed the government for a hostile business environment and negative growth in exports. Its forecasts for the next five years also show that the situation will not improve. Meanwhile, the reasons for the strike call are different in both cases. APTMA’s case seems to be more genuine and serious, as they lament the increasing cost of doing business, resulting in an annual loss of $3.5 billion in exports – an amount that is more than half the sum Pakistan will receive under the three-year IMF bailout programme. On the other hand, traders want to avoid the tax net and are insisting on the withdrawal of a 0.3% levy the government has imposed on all banking transactions worth over Rs50,000 a day carried out by non- filers.
APTMA’s demands
Finance Minister Ishaq Dar has constituted various committees to resolve complaints about high electricity, gas tariffs and other taxation issues, said SM Tanveer, APTMA chairman, while talking to the media after the meeting. He said at this point APTMA cannot take back its strike call, indicating that he was not satisfied with the outcome of the three-hour long meeting. APTMA asked the government to withdraw various surcharges on electricity for the textile sector, as it refused to bear the burden of inefficiencies and theft. APTMA claimed that these surcharges have increased the cost of doing business by another 3%. The industry is paying Rs14.5 per unit, as compared to Rs7.3 per unit electricity cost for industries in Bangladesh and Rs9 in India, said Tanveer.
APTMA questioned the Rs14.5-per-unit tariff, particularly when crude oil prices have halved in the last three years. When the crude oil peaked at $112 a barrel, electricity tariffs for the industry were Rs9.8 per unit. “We cannot export taxes and levies to international buyers of textile and clothing products,” said Tanveer. The industrialists also demanded withdrawal of the Gas Infrastructure Development Cess and proposed increase in gas tariffs. According to another demand, the government should exempt textile exports from all kinds of taxes, duties, surcharges, levies and cess. Tanveer said the government has increased the burden of the textile industry by another Rs165 billion in the form of electricity surcharges, gas cess and taxes from July this year, which it can no longer bear.
The government’s side
“The government cannot reduce electricity and gas rates for a specific industry,” said Haroon Khan, Special Assistant to Prime Minister on Revenue. He, however, said that the textile industry’s problems were genuine and it has become uncompetitive as compared to regional peers. Khan said any incentive package for the industry will be linked with new investment, as the textile sector has not invested in the last five years. Blockage of over Rs200 billion refunds is another major issue faced by the industry, said SM Muneer, the Trade Development Authority of Pakistan (TDAP) chief executive officer. He said Dar has promised to clear the outstanding refunds before the end of this month. APTMA has estimated the opportunity cost of refunds in the range of 0.3% to 1.8%, the highest for the weaving industry. For the last four years, textile exports have been constantly on decline. Textile exports fell by 13.5% during the recently-ended fiscal year 2014-15. At present 30% capacity of the spinning mills is impaired, APTMA informed Dar.
SOURCE: The Tribune
Some of textile units in Iran have stopped production due to recession and accumulation of products in the market, said Ahad Kermani, member of the Iranian textile association. “Each year, textile units used to stop production for a week or two, but this year some factories have been shutting down for over one months,” Iran’s ISNA news agency quoted Kermani as saying on August 1. Irregular imports of textile products from China, Turkey, and India, as well as low demands in the domestic market are the main reasons of the recession, he added. A thread production unit, for example, needs around 80 billion rials (about$2.5 million) in operating capital, he noted. Mehdi Yekta, the secretary of the Iranian textile producers and exporters union, said in Jan. that importing textile products from Turkey based on preferential rates will harm the domestic textile industry. Yekta went on to say that imports meet 80 percent of the Iranian market’s textile needs. China and Turkey respectively account for about 60 percent and 40 percent of textiles exports to Iran, he added.
SOURCE: The Trend News Agency
As Muhammadu Buhari prepares to unveil his blueprint for the manufacturing sector, textile makers in Nigeria have called for the establishment of Integrated Textiles and Garment Parks (ITGPS) across the country. Paul Jaiyeola Olarewaju, director-general, Nigerian Textile, Garment and Tailoring Employers Association (NATGTEA), said the parks should be sited close to raw materials, markets and infrastructure. Olarewaju said now is the time to implement the recently formulated textile industry roadmap, which equally stipulates provision of adequate power supply to the proposed industrial parks with captive and coal plants. He said the policy document is a product of extensive consultation with local stakeholders, investors, the economic management team as well as relevant government ministries and departments. Real Sector Watch also learnt that the document proposes for patronage from government ministries, departments and agencies that prefer to import textile materials and uniforms from other cheaper markets. Critical problems facing Nigeria’s textile industry, according to stakeholders, include unbridled influx of cheap textile materials into the country, high cost of alternative power supply, lack of local patronage and poor infrastructure. The ongoing Common External Tariff (CET) across the 15 ECOWAS countries is also a threat to the industry as the regime lifts ban on textiles, which was hitherto contraband in the country. “CET is taking a lot of market from local producers,” Olarewaju told Real Sector Watch
SOURCE: The Business Day Online
Senior officials of the 16-member RCEP, including India and China, will meet tomorrow in Myanmar to provide impetus to the negotiations on the mega trade deal. The deal aims to cover goods and services, investments, economic and technical cooperation, competition and intellectual property. The ninth round of talks, to be held on August 3-7, on Regional Comprehensive Economic Partnership (RCEP) agreement will follow the recent ministerial level meet that concluded in Kuala Lumpur. “Senior officials of the Commerce Ministry will attend the week-long meeting in Nay Pyi Taw (Myanmar). Talks are progressing. The minister’s level meeting has given a boost to the negotiations,” an official said. Issues which are expected to be discussed are inclusion of differential duty concept and non-inclusion of 'ratchet mechanism', among others. The 16-member bloc comprises 10 ASEAN members and their six free trade agreement partners namely India, China, Japan, Korea, Australia and New Zealand. Under differential duty concept, duties are imposed unequally upon the same products imported from different countries. Under the ratchet mechanism, some RCEP members want India to go beyond the current domestic regime in services, providing benefits of future policy liberalisation by removing market access barriers. The 16 economies account for over a quarter of the world economy, estimated to be more than USD 75 trillion. RCEP negotiations were launched in Phnom Penh in November 2012. The meeting assumes significance as the pact is targeted to be concluded this year. According to an industry expert, the RCEP members should keep in mind that they would get a market of 1.2 billion people in India. RCEP is under negotiations and it is an extremely important institutional process which will have significant consequences for partners in the agreement. Such trade pacts would help India increase its share in the global trade. India is aiming to increase its share to 3.5 per cent by 2020 from the current 2 per cent.
SOURCE: The Business Standard
Trade negotiators from the United States and 11 other Pacific nations failed to reach final agreement, with difficult talks on the largest regional trade agreement ever deadlocking over protections for drug companies and access to agriculture markets on both sides of the Pacific. Trade ministers, in a joint statement, said they had made "significant progress" and will return to their home countries to obtain high-level signoffs for a small number of final sticking points on the agreement, the Trans-Pacific Partnership, with bilateral talks reconvening soon. "There are an enormous number of issues that one works through at these talks, narrowing differences, finding landing zones," said Michael B. Froman, the United States trade representative. "I am very impressed with the work that has been done. I am gratified by the progress that has been made." Still, the breakdown is a setback for the Obama administration, which had promoted the talks here as the final round ahead of an accord that would bind 40 per cent of the world's economy under a new set of rules for commerce.
President Obama's trade push had been buoyed by Congress's narrow passage in June of so-called fast track trade negotiating powers, and American negotiators had hoped other countries could come together once Congress had given up the right to amend any final agreement. In the end, a deal filled with 21st-century policies on Internet access, advanced pharmaceuticals and trade in clean energy foundered on issues that have bedevilled international trade for decades: access to dairy markets in Canada, sugar markets in the United States and rice markets in Japan. "No, we will not be pushed out of this agreement," said a defiant New Zealand trade minister, Tim Groser, who held out for better access for his country, the largest exporter of dairy in the world.
Australia, Chile and New Zealand also continue to resist the push by the United States to protect the intellectual property of major pharmaceutical companies for as long as 12 years, shielding them from generic competition as they recoup the cost of developing next-generation biologic medicines. "There's always been more than one issue," said Representative Sander Levin, Democrat of Michigan, who is here as an observer. The trade ministers who gathered at the luxury hotels of Maui this week for talks that went deep into the night did have some successes. They reached agreement on broad environmental protections for some of the most sensitive, diverse and threatened ecosystems on Earth, closing one of the most contentious chapters of the Pacific accord. They also reached agreement on how to label exports with distinct "geographic indications," such as whether sparkling wine can be called champagne. And they agreed on a code of conduct and rules against conflicts of interest for arbitrators who would serve on extrajudicial tribunals to hear complaints from companies about whether their investments were unfairly damaged by government actions. But the failure to complete the deal - eight years in the making - means the next round of negotiations will push the United States ratification fight into 2016, a presidential election year. Most Republican candidates are very likely to back it, but a final agreement would force the Democratic front-runner Hillary Rodham Clinton to declare her position, which she has avoided. This week, she told reporters, "I did not work on TPP" as secretary of state, although she gave a 2012 speech in Australia declaring the accord "the gold standard in trade agreements." The push for the Pacific deal has already split most Democrats from their president. Further delay raises the prospect that a deal sealed by President Obama might have to be ratified by his successor, just as George H W Bush's North American Free Trade Agreement was secured by Bill Clinton. The failure of the Maui talks pointed to the extreme difficulty of reaching agreement with so many countries, each with its own political dynamics. Vietnam, Malaysia and New Zealand were willing to make significant concessions to gain access to United States markets. But with Canada's prime minister, Stephen Harper, fighting for his political life ahead of national elections in October, Canada would not budge on opening its poultry and dairy markets.
Chile, with a new, left-of-center government and existing free trade agreements with each of the countries in the Pacific deal, including the United States, saw no reason to compromise, especially on its demand for a short window of protection for United States pharmaceutical giants. Australia's delegation insisted that pharmaceutical market protections beyond five years would never get through Parliament, and the United States team was demanding 12. Ildefonso Guajardo, Mexico's secretary of economy, was defiant on the hard line he took against the export of Japanese cars with any less than 65 percent of their parts from TPP countries. "I am fighting for the interests of my country," he said.
SOURCE: The Business Standard
South Korean exports extended their losing streak to a seventh straight month in July, pointing to little respite in sight for Asia's trade-reliant economies as Chinese demand cools and global commodity prices take a fresh tumble. Exports fell 3.3 per cent on-year to $46.61 billion in July, while imports slumped 15.3 per cent to $38.85 billion, generating a trade surplus of $7.76 billion in July, trade ministry data showed on Saturday. Shipments to China and the European Union fell and growth tailed off in exports to the United States. The trade ministry said in a statement that exports in volume terms rose sharply in July for a second straight month over a year earlier in a rare bright sign, but analysts said the global environment was still getting worse. "China is going through a turbulent period both on the financial markets and in economic growth, and the recent fall in commodities prices will cut demand from commodities-rich countries," said Park Sang-hyun, chief economist at HI Investment & Securities.
An official survey in China on Saturday showed growth in its vast manufacturing sector unexpectedly stalled in July as firms' domestic and export orders weakened. China is South Korea's biggest export market, taking around one-quarter of its shipments abroad. South Korean exports to China fell 6.4 per cent in July from a year earlier, the sharpest decline in five months. The Thomson Reuters/CRB commodity index fell 10.8 per cent in July on concerns about the outlook for the Chinese and global economies, marking the worst monthly drop since September 2011. South Korea is the first major exporting economy to report monthly trade data and is home to global suppliers such as Samsung Electronics, Hyundai Motor and Hyundai Heavy Industries.
SOURCE: The Business Standard
Zimbabwe on Thursday announced a ban on imported second-hand clothing, citing health risks and a negative impact on local industries. ‘Any future importation of second-hand clothing and shoes will be liable to forfeiture and destruction,’ said finance minister Patrick Chinamasa. ‘These measures seek to enhance the competitiveness of the local market,’ he said. The ban comes into effect in September. ‘Used clothing present a health hazard to the citizens,’ the minister added. The ban comes after a female lawmaker, Priscilla Misihairabwi- Mushonga, last week held up a pair of second-hand women’s underwear in parliament to highlight the plight of poor women unable to afford new garments. She wanted the finance minister to explain the government’s policy on the importation of second-hand underwear. Chinamasa said despite a high import duty, used clothing — often imported from Mozambique and Zambia — continued to flood the local market. Two pairs of second-hand female undergarments are sold for as little as $2, making it an easily affordable alternative for the poor. Some of the used clothing items for sale in Zimbabwe are reportedly charity donations from Europe. Zimbabwe’s economy has been on a downturn for more than a decade, creating dire poverty and mass unemployment. In 2012, then finance minister Tendai Biti called for a ban on the import of used underwear citing health risks and the threat to human dignity.
SOURCE: The Global Textiles
Iranian researcher Dr. Shila Shahidi and faculty member at the Islamic Azad University of Arak has introduced a new method by which polyester fabrics could be dyed more efficiently through plasma surface activation. The method is aimed at tackling the problems in traditional dyeing methods, such as weak dyeability, high-temperature, excessive use of water, and discharge of several chemical additives. The method introduced in this work comprises the formation of functional groups on the surfaces of the polyester fabrics by using atmospheric pressure plasma. Polyester fabrics were modified by dielectric barrier discharge (DBD) and then dyed with different classes of natural (henna, madder, lotus, and matricaria) and synthetic (acidic, basic, and disperse) dyes. The results show that DBD modification on the surface of fabrics improved their dyeability without using water and chemical additives, with the extent of improvement higher in natural dyes than in synthetic ones. The atmospheric pressure plasma also makes the process of dyeing eco-friendly.
SOURCE: Yarns&Fibers
