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Euratex, the European Apparel and Textile Confederation will be hosting the international textile and clothing conference on ‘Free Trade and International Agreements’ on June 5, 2014 in Brussels. The idea behind organizing this conference is to debate the free trade and international agreements’ influence on world markets of textile and clothing.
The confederation expects experts from the textile and clothing industry of countries like: Turkey, Korea, Africa, Japan, Canada, India, Brazil and Taiwan, to attend the conference. This year, Euratex is also celebrating 20th anniversary of the Marrakesh Agreement establishing the World Trade Organisation (WTO). In 2005, the textile and clothing sector became a subject in the general rules of the WTO and all restrictions were terminated after more than 40 years of trade with import quotas.
As per WTO data, the revenue from world textile and clothing exports, excluding intra-EU trade and re-exports, more than doubled between 2000 ($240 billion) to 2012 ($547 billion). Euratex indicates that the establishment of new global rules of trade between nations had an immense influence on the European Union that is the second largest world exporter of textile and clothing products.
The pace of globalisation was also quickened by multilateral trade negotiations of the General Agreement on Tariffs and Trade (GATT) and the increasing importance of the Free Trade Agreements (FTAs). Since the WTO creation, over 400 agreements covering trade in goods or services have been notified. Moreover, the number of ongoing FTAs negotiations launched by the EU has significantly increased. The confederation believes this is the right moment to evaluate the impact of the current and potential of FTAs on companies and SMEs in textile and clothing sector.
Euratex.eu
The Federal Trade Commission has approved changes to the Wool Products Labeling Rules. These now incorporate the Wool Act’s new definitions for cashmere and fine wools and allow the industry greater flexibility when it comes to advertising certain fibers on hangtags.
Previously, the Wool Rules had been reviewed in both 1998 and 2000. Now, the changes look at conforming with alterations made in 2006 to the Wool Act (Wool Products Labeling Act 1939), which includes clarifying new definitions and descriptions of textile products and allowing certain hang-tags disclosing fiber trademarks and performance. The Wool Rules also ensure that wool products label the name and place of the manufacturer, and display information about the fiber content.
However, an important change is an amended rule on hangtag disclosures, which will allow companies to identify or highlight a fiber in a garment without having to disclose a product’s full fiber content on the hangtag. The changes made to the Wool Act eight years ago included the rule that products identified as cashmere or as containing very fine wools would be deemed as misbranded, unless they have no more than the average fiber diameter specified in the Act.
Garment exports from Bangladesh to Canada surged 67 per cent in five years, thanks to price competitiveness of Bangladeshi products and duty-benefit in the North American country. From $587 million worth exports in fiscal 2008-09, it has risen to $980 million in 2012-13.
Bangladesh exported garment items worth around $740 million during the first nine months of current fiscal, up from around $727 million in the same period in the previous year. Almost 95 per cent of goods exported to Canada from Bangladesh are apparel items. Total exports reached $1.09 billion in fiscal 2012-13 as against $993 million the previous year. Bangladesh has been enjoying duty-free market access to Canada since 2003.
Bangladesh also has the opportunity to export jute goods, leather and footwear items, light engineering products and agro-processed items. The country sees Canada as a promising, new market compared to other traditional markets such as the EU and the US.
Greenpeace says it has found trace amounts of potentially hazardous chemicals in World Cup 2014 soccer merchandise made by Nike and Adidas. However, Adidas says none of the tested products pose any health risk to consumers and that all of the published results and concentrations fully meet legal requirements.
Nike, meanwhile, says it is committed to the goal of zero discharge of hazardous chemicals by 2020 and that the Nike products in the report tested within the limits set by EU regulations and below the levels set in Nike's own Restricted Substances List.
The European guideline for Nonyl Phenol Ethoxylates (NPE) is 1000 parts per million. The value that was found in the Adidas brazuca ball was 50 times lower than this guideline. In the European Union, there is no statutory threshold limit value for phthalate softeners, DMF as well as certain PFCs in consumer products such as football gloves and soccer boots.
Popular fashion brands routinely sell clothing containing hazardous chemicals which contribute to toxic water pollution where the clothes are made and washed. Some clothes contain chemicals from certain dyes which can break down into cancer-causing amines. H&M and Marks & Spencer have committed to zero discharge of toxic chemicals by 2020.
Denim by Premiere Vision held at Barcelona on May 22 and 23, 2014, welcomed 4,479 visitors, a 45 per cent increase compared to May 2013. Similarly there were more exhibitors, weavers, manufacturers, launderers and finishing companies, accessory makers as well as machine builders, fiber producers and spinning companies, along with technology developers.
Buyers and creative staff from jeans brands, stylists, and denim and fashion luxury labels participated in the show. About 72 per cent of visitors were foreign audience and all of them promised to return next season. European attendance increased distinctly. With 70 per cent of visitors, Europe remained the most represented region at the show. German visitors marked a remarkable increase closely followed by Italian and Spanish visitors. There was a significant interest from Northern European countries and Scandinavia.
A remarkable North American attendance was registered with an exceptional augmentation of 33 per cent visitors from this area. First of all, the United States registered an increase of 24 per cent but also Canada doubled its number of visitors over the last year.
Countries from the Middle East and North Africa were well represented. The most important presence was registered by Turkey. The next edition of Denim by PV is scheduled to take place at Barcelona again November 19 to 20, 2014.
A series of strikes and labor disputes have hit Burma's garment industry. Political groups are suspected to be behind many of the city’s strikes. Under Burma’s long-ruling military junta, strikes were a taboo and trade unionists were jailed and deemed terrorists, but the civilian government headed by President Thein Sein has passed laws allowing unions and industrial action. Strikes have become more commonplace since 2012.
Around 2,00,000 people, mostly women, are employed in Burma’s garment- industry. While heavy industry and manufacturing investment has been slow to come to Burma due to the country’s laggard power supply and poor roads, the garment sector is seen as a likely early growth prospect.
With its abundant supply of low wage labor, Myanmar has an apparent comparative advantage in labor-intensive industries. The government is offering additional inducements for would-be factory builders, such as tax holidays and exemptions from customs duties for those businesses who set up inside industrial zones.
With sanctions eased, Burma’s garment exports are up, topping one $1 billion in 2013. Prior to the sector coming under western sanctions, apparel rose to make up 40 per cent of the total share of Burma’s exports by 2000. The International Monetary Fund warned in early 2014 that while Burma’s economy would likely grow between 7 to 8 per cent over the coming three years, a 6 per cent inflation rate was likely.
A series of strikes and labor disputes have hit Burma's garment industry. Political groups are suspected to be behind many of the city’s strikes. Under Burma’s long-ruling military junta, strikes were a taboo and trade unionists were jailed and deemed terrorists, but the civilian government headed by President Thein Sein has passed laws allowing unions and industrial action. Strikes have become more commonplace since 2012.
Around 2,00,000 people, mostly women, are employed in Burma’s garment- industry. While heavy industry and manufacturing investment has been slow to come to Burma due to the country’s laggard power supply and poor roads, the garment sector is seen as a likely early growth prospect.
With its abundant supply of low wage labor, Myanmar has an apparent comparative advantage in labor-intensive industries. The government is offering additional inducements for would-be factory builders, such as tax holidays and exemptions from customs duties for those businesses who set up inside industrial zones.
With sanctions eased, Burma’s garment exports are up, topping one $1 billion in 2013. Prior to the sector coming under western sanctions, apparel rose to make up 40 per cent of the total share of Burma’s exports by 2000. The International Monetary Fund warned in early 2014 that while Burma’s economy would likely grow between 7 to 8 per cent over the coming three years, a 6 per cent inflation rate was likely.
The agitation rocking the garment industry in Cambodia is worrying major global clothing brands that source from that country. In fact, some have already started scaling back orders. Police have shot dead at least five garment workers striking for higher wages. Many more workers and activists have been arrested.
Some brands have offered to raise the prices they pay factories so that workers’ wages can be raised. They say peaceful strikes and protests should not be met with state violence, and that anti-union lawsuits should be dropped. Representatives of the brands and unions met the government’s top labor and commerce officials and warned in a joint statement that the industry was at a tipping point. They say that due to reaction of consumers, and the disruption to production and shipping caused by continued unrest, Cambodia is at risk of losing its status as a strategic sourcing market, with an impact on future investment and growth.
The garment trade added a critical $5 billion to the country’s gross domestic product last year. It accounts for 80 per cent of all exports from Cambodia, and provides more than 5,00,000 jobs in a nation of 15 million.
Nonwoven textiles play a significant role in the medical sector. The product range includes surgical gowns, masks and other wearable products; surgical drapes, pads; dressings; filtration materials; and implantable textiles such as tissue scaffolds for rebuilding internal organs. Most nonwoven products used outside the body are disposable, single-use articles that have the advantage of not requiring sterilization or cleaning for reuse. However, there are some that can be reused to provide the required function over a limited period of time.
In North America, disposable nonwoven market is expected to grow at a 5 per cent rate. Medical nonwovens in the United States have a share of 9 per cent in the total nonwovens market. Absorbent hygiene has a 21 per cent share, wipes have a 17 per cent share and filtration has a 11 per cent share. Nonwoven products such as under pads, adult incontinent products, face masks, sterile wraps and packages and health care related wipes will be in demand, which will push the sector towards growth trajectory.
Nanofibers are becoming very popular for medical textiles used to filter viruses and bacteria. New fiber and processing technologies as well as collaborative, multidisciplinary efforts will contribute to ongoing product development and further market growth.
The Accord wants apparel bodies in Bangladesh like BGMEA and BKMEA to join its advisory board. But the two are not willing to do that as they feel the board won’t take effective decisions. The Accord is an independent agreement designed to make all garment factories in Bangladesh safe workplaces. It includes independent safety inspections at factories and public reporting of the results of these inspections.
However, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) don’t mind joining Accord's steering committee. Accord feels having these associations on board is necessary especially when it comes to issues like payment of wages during operation suspension and critical situations.
The Bangladesh Accord has 156 global brands and retailers. It came about in the aftermath of the Rana Plaza factory collapse. It requires companies to pay up to $5,00,000 annually to administer inspections, which are backed by labor groups. If a factory fails to employ necessary safety procedures, that information will be made public and the factory will be embarrassed and may lose business retailers.
Almost 40 teams of international fire, electrical, and structural engineers are working with Bangladeshi engineers and technicians on the inspections.
