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Pakistan and Tunisia are working on a Preferential Trade Agreement.The two countries share warm, cordial and brotherly relations.
Tunisia is interested in exporting olive oil, dates and fertilizer to Pakistan. Pakistan desires to make Tunisia a hub for enhancing its exports to North Africa.
Both sides want to translate excellent brotherly relations into meaningful economic and trade cooperation. An early conclusion of the PTA and frequent engagements at the G2G and B2B levels coupled with trade promotional activities will be ensured. Both sides have also agreed on cultural exchanges/ participation of cultural troupes in major events in the near future.
The textile and clothing sector in Tunisia accounts for 35 per cent of the country’s GDP and offers 161,425 jobs.
The textile and clothing industry in Tunisia plays a critical role in the socio-economic development of the country.
Tunisia is among the top 15 garment suppliers in the world, and has the advantage of being close to the European market. It is the fifth largest supplier to the European Union as well as the leading trouser supplier to the EU. Other important products are work wear and lingerie. The main foreign investors in the apparel sector in Tunisia are France, Germany, Belgium and Italy.
China has resumed cotton buying, shipments of Australian cotton into China are on the rise again.
Just over 50 per cent of the 2018 Australian cotton crop shipped to date was bound for China. Including the consumption of Chinese owned mills operating in Vietnam this figure rises to closer to 70 per cent of the crop.
China is very important to the Australian cotton industry. China’s focus on depleting its strategic reserves of cotton dramatically reduced its imports of foreign cotton over the past few years. However, this may well be drawing to a close.
China is the second largest buyer of US cotton, making up 16 per cent of total recorded US sales to date. In addition to this China has purchased a further one million bales for shipment in the 2019/2020 crop year.
The spinning mills located in China free trade zones are exempt from paying import tariff on raw cotton. Total raw cotton consumption of these mills is estimated to be in the vicinity of two million bales a year. Shipments to these mills will account for some of the existing US sales of cotton to China.
Chinese free trade zones also contain an inordinate number of warehouses many of which are used to store foreign cotton.
The challenges that have plagued the UK retail sector this year are expected to intensify over the course of 2019.
Factors include changing consumer behavior, oversupply of bricks-and-mortar stores, high levels of legacy debt, regulatory costs, economic and political challenges, and a lack of talent at the top of retail businesses to help deliver change.
Retailers have to brace for uncertainties in the year ahead by controlling the controllable. Many retailers are already too late to put in place contingency plans in the case of a no-deal Brexit.
The heavy discounting of non-food items could lessen in 2019. Retailers have reached the point where they cannot discount any deeper. Those who are left have to protect their margins and they may accept fewer sales at a higher price. In some cases, no sale is better than a bad sale.
While online continues to dominate, there is a definite potential swing back toward bricks-and-mortar stores as shoppers seek out a more tangible experience, and awareness grows around the true cost of home delivery.
Fashion retailers may continue to see the value of investing in store teams via training programs, as employees play an important role in converting browsers into buyers.
"Cotton processing market, estimated at $59.7 billion in 2018, is projected to grow at a CAGR of 4.0 per cent to reach $72.6 billion by 2023. Growth is being driven by increasing demand for cotton in the textile industry and rising animal feed. The Asia Pacific is projected to be the fastest-growing regional market with countries like India and China, emerging as leading players due to the increasing cotton production. However, one of the major restraints in this growth is the high cost of production due to obsolete equipment."
Cotton processing market, estimated at $59.7 billion in 2018, is projected to grow at a CAGR of 4.0 per cent to reach $72.6 billion by 2023. Growth is being driven by increasing demand for cotton in the textile industry and rising animal feed. The Asia Pacific is projected to be the fastest-growing regional market with countries like India and China, emerging as leading players due to the increasing cotton production. However, one of the major restraints in this growth is the high cost of production due to obsolete equipment.
Rising urbanization, changing lifestyle fuels lint growth
Rising urbanisation and changing lifestyle is likely to fuel the growth of lint segment, which is estimated to account for the largest share in the cotton processing market in 2018. However, rising number of accidents and chronic diseases will also increasing the consumption of processed cotton and cotton bandages globally. The rising exports of lint and cotton products are generating export income across many countries.
Spinning to be fastest-growing textile segment
Changing preferences of consumers towards different types of apparels in developing countries is likely to fuel growth of textile segment, which is
estimated to account for the largest share in the cotton processing market in 2018. Moreover, the increasing investments and policy support by governments is expected to fuel the growth of the textile industry in countries such as India and China.
Based on type, the spinning segment is projected to be the fastest-growing segment during the forecast period. Spinning is considered one of the most important processes in the textile and pharma industries and is used to convert baled cotton into yarn or thread to produce high-strength yarns. The rising textile and medical & surgical industries have increased the demand for spinning machinery in APAC, Europe, and African countries.
Automation to lead cotton processing ginning equipment market
High productivity provided by automatic machines in less time will make the automatic segment the largest shareholder in the cotton processing ginning equipment market in 2018. Installing, fully automated processing equipment leads to accurate processing, quick and reliable production processes, optimum utilisation of time, reduced labor costs, and controlled operations. These are some of the factors that are driving market growth. With the availability of fully automated and integrated processing lines, operational efficiencies and proper control of production processes have been achieved.
Asia Pacific to be fastest-growing market
Asia Pacific is projected to be the fastest-growing market for the period considered for this study, due to the rising disposable income, changing lifestyle of consumers and rapid urbanisation of the region. Increase in demand for cotton products such as clothing, cotton bandages, home furnishing products, animal feed, and paper is also driving the market growth.
"A new report by NGO KnowTheChain reveals the fashion industry lacks in its efforts to address forced labor. The NGO surveyed 43 of the world’s largest clothing and footwear companies’ efforts to address the issue. These companies scored only 37 out of a possible 100, with more than two-thirds scoring below 50. Be it slavery in cotton fields, human trafficking of factory workers or child labor, companies need to address a lot of issues to free their supply chains of labor abuses. The root cause of these abuses is the pervasive use of agencies to find workers for factories and workshops. These agencies often charge migrant workers large fees just to land a job, and there is ample evidence that these high fees push poor migrants into forced labor situations."
A new report by NGO KnowTheChain reveals the fashion industry lacks in its efforts to address forced labor. The NGO surveyed 43 of the world’s largest clothing and footwear companies’ efforts to address the issue. These companies scored only 37 out of a possible 100, with more than two-thirds scoring below 50.
Right recruiting policy to curb abuses
Be it slavery in cotton fields, human trafficking of factory workers or child labor, companies need to address a lot of issues to free their supply chains of labor abuses. The root cause of these abuses is the pervasive use of agencies to find workers for factories and workshops. These agencies often charge migrant workers large fees just to land a job, and there is ample evidence that these high fees push poor migrants into forced labor situations.
In fact, companies that scored highest on the rankings, Adidas and Lululemon, employ their workers directly across the supply chain – a practice that KnowTheChain believes other companies should consider following.
Complex supply chain hampers growth
Another obstacle to progress is the complexity of supply chains, and the interconnectedness of the industry. Most major global brands engage the same
suppliers, or source from the same regions where textile factories and labor abuses are rampant, such as Bangladesh, Cambodia or Vietnam. Namely, one company can only do so much to solve this problem.
To address this issue, the American Apparel and Footwear Association, which represents more than 1,000 global name brands, retailers, and manufacturers, in October 2018, announced a commitment with the Fair Labor Association to address potential forced labor risks in their supply chains.
KnowTheChain will also continue to highlight relevant policies besides tracking progress on eliminating forced labor from the apparel and footwear supply chain. The NGO hopes to find a suitable solution to the issue by the publication of its next report.
The US International Trade Commission (USITC) plans to investigate the probable economic effects of providing duty-free imports to the United Kingdom (UK) on US industries producing like or directly competitive products, and on consumers. The investigation was requested by the Office of the US Trade Representative (USTR) in November. The US president will be advised on the issue. USITC will prepare an assessment of the probable economic effects of eliminating tariffs on imports from the UK of certain agricultural products on US industries producing the products concerned and on the country’s economy as a whole. USITC, which will hold a public hearing related to the investigation on January 31, expects to submit its confidential report by May 8, 2019
The Vietnam National Textile and Garment Group (Vinatex) expects export turnover to rise up to eight per cent in 2019. Vinatex is the largest textile maker in Vietnam. The group is striving for a five per cent increase in industrial production, seven per cent growth in revenue, and 12 per cent hike in profit. Its exports rose 10.9 per cent in 2018. Industrial production value was up 9.7 per cent against the previous year. Total revenue rose 6.6 per cent.
Although the group has secured orders until the end of the first quarter of 2019, input costs are a challenge. Minimum wage is forecast to expand 5.3 per cent, resulting in a rise in social insurance premium and labor cost. Meanwhile the group has paid due attention to the quality of orders and customers and aims at being among the top five producers in Vietnam. Besides investing heavily on modern machines and equipment that meet international standards to manufacture excellent products, the group will channel focus on improving labor productivity and increasing workers’ income. Garment and textile firms in Vietnam are encouraged to join hands with their customers and partners to set up a value chain to overcome difficulties.
The US and Japan are aiming at a free trade agreement (FTA). The US will seek comprehensive duty-free treatment for textile and apparel products, and other industrial goods. It will also aim at ensuring Japan avoids manipulating exchange rates to prevent an effective balance of payments adjustment or to gain an unfair competitive advantage and wants the agreement to have a mechanism to ensure transparency and take appropriate action if Japan negotiates a FTA with a non-market country.
The objectives also include strengthening procedures and creating new ones to address antidumping and countervailing duty evasion. The US goal is to improve trade balance and reduce the trade deficit with Japan, increase transparency in import and export licensing procedures, and discipline import and export monopolies to prevent trade distortions.
In the customs, the US wants to increase regulatory transparency and ensure more expedience in releasing shipments after determining compliance with applicable laws and regulations. This area would include streamlined and expedited customs treatment for express delivery shipments and simplified customs procedures for low-value goods, which would facilitate cross-border e-commerce.
US imports of apparel and textiles from Japan in the year through October increased five per cent over the year-earlier period.
The value of global textile mills market in 2016 was up 3.5 per cent from a year earlier. The compound annual growth rate (CAGR) of the market was 2.7 per cent between 2012 and 2015. Asia-Pacific region accounts for 59.6 per cent of the global textile mills market value. Europe and the United States account for a further 19.1 per cent and 10.8 per cent of the market respectively. The CAGR of the market between 2016 and 2021 is forecast to be 5.1 per cent.
Value of global apparel manufacturing market in 2016 was up 3.3 per cent from a year earlier. The Asia-Pacific region accounts for 61 per cent of market value in 2016 and Europe accounts for a further 15.2 per cent of the market. The CAGR of global apparel manufacturing market during the period of 2016 to 2021 is forecast to be 4.8 per cent.
Apparel manufacturing market covers all clothing except leather, footwear and knitted items as well as other technical, household, and made-up products. The market size is estimated based on the value of domestic production plus imports minus exports, all valued at manufacturer prices.
The London Textile Fair will hold a new show called Texfusion-New York from January 16-17, 2019 at the Penn Plaza Pavilion in Manhattan. The show will feature 100 best international manufacturers featuring fabrics mostly for international fashion brands and designers’ Spring/Summer 2020 collections. International manufacturers to be present at the fair are: Etique from Italy, Halley Stevensons from Scotland, the men’s shirting mill Tekstina, Deveaux of France, the woven jacquard specialist EGR and women’s and girl’s fabric specialist Ercea.
Dedicated to the American fashion industry, Texfusion – New York will provide its buyers with a unique opportunity to source from the top international textile manufacturers.
