FW
"Malaysia’s trade policies and agreements need to be reviewed urgently. But, they have not received the attention they deserve because a trade minister has not yet been appointed. There was a lot of discontent amongst the public when Malaysia signed the Trans-Pacific Partnership Agreement (TPA). But soon Trump assumed office and the US pulled out of the treaty. The agreement then had to be reworked by the remaining 11 countries. The new agreement, now known as CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) has also been signed by Mayasia."
Malaysia’s trade policies and agreements need to be reviewed urgently. But, they have not received the attention they deserve because a trade minister has not yet been appointed. There was a lot of discontent amongst the public when Malaysia signed the Trans-Pacific Partnership Agreement (TPA). But soon Trump assumed office and the US pulled out of the treaty. The agreement then had to be reworked by the remaining 11 countries. The new agreement, now known as CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) has also been signed by Mayasia.
Lack of transparency and liberty
Much like its predecessor, the CPTPP too proposes to setting up an investor-state dispute settlement (ISDS)
system, whereby foreign investors can sue the government in international tribunals in case of unfair treatment or loss of future profits due to a change in government policies. But there is a high probability of the system being misused by foreign investors who might claim to have received unfair treatment from the member countries. Countries such as Indonesia, India and South Africa have therefore, pulled out of their treaties.
Secondly, the agreement restrains local industry and markets with foreign firms and contractors of CPTPP countries being awarded projects at lower costs resulting in loss of business for local companies. Thirdly, state-owned enterprises should be phased out so that the local companies obtain more market share in the domestic industry.
Loss of local markets
The CPTPP also requires Malaysia to sign an international treaty, UPOV 1991, under which Malaysian farmers would be obliged to pay for the seeds they use if these are protected, instead of being able to save their own seeds to plant in the next season. This would increase costs for farming, and it would also overthrow the existing good Protection of New Plant Varieties Act.
Since Malaysia has to reduce all its tariffs to zero, local firms and farmers will face stiff competition from cheaper imports, and a number may lose market share or even close. Given the serious issues involved, it is wise for the government to review its participation in the CPTPP.
Meanwhile, the 18 changes to the laws that are being prepared to enable the country to implement the CPTPP should be withheld as Malaysia is currently negotiating many other trade agreements, including the Asian regional treaty RCEP (Regional Comprehensive Economic Partnership), and a Malaysia-European Union FTA. These should also be reviewed.
Need to review policies
Meanwhile, Malaysia should assess the implications of its proposals in current negotiations to introduce new topics like e-commerce and domestic regulations, and take positions accordingly. As trade negotiations are no longer just about trade per se, it is important for a review to be made on trade agreements and negotiations from a strategic perspective that includes development policy overall, industrial development, services, agriculture, the interests of local firms and farmers, the rights of consumers and workers, jobs and livelihoods, and healthcare costs.
Decisions on whether to sign the agreement should be the concern of a high level inter-ministerial committee or council, preferably chaired by the Prime Minister instead of being left to one or a few ministries alone. Moreover, decision making process should also involve the parliament and state governments.
Kraig Biocraft Laboratories, a reporting biotechnology company is the leading developer of genetically engineered spider silk based fiber technologies being the, leading developer of spider silk based fibers it has recently announced that it has just finished the production of its first roll of pure Dragon silk fabric, marking the first time that the company’s proprietary recombinant spider silk fibers were used to create a 100 per cent pure woven silk fabric.
The Michigan-based biotechnology firm was awarded a $1 million contract in 2016 to develop high-performance fibres using its genetically engineered spider silk fibres for protective military apparel. As per US Army specifications it will use to create ballistic shoot packs for the US Army.
This material is destined for ballistic performance testing, under the company’s contract with the US Army, to evaluate its potential for protective apparel applications. Jon Rice, COO says Dragon silk, which started as a simple idea in the lab for a better performing silk, is on the verge of representing its competence to offer lifesaving performance mixed with high flexibility and user comfort.
Initially the company had developed sample products, in pure and mixed knit configurations using its monster silk materials. The latest announcement marks the first time the company’s newer and stronger Dragon silk will be transitioned into an end product.
Pure London, the fashion festival will take place from July 22 to 24. Pure London is UK’s leading trade fashion buying event, representing women’s wear, men’s wear, footwear, accessories and young fashion. The show offers buyers from UK and international independents, multiples, department stores, etailers and mail order the opportunity to discover collections launching for the season ahead, attend catwalk shows and hear from their peers and other industry experts in valuable seminars and workshops.
As sustainability shifts to being an integral part of the entire fashion value chain, Pure London is keen to take the lead as a disruptor in the industry, to probe the key issues and to offer visitors an inspiring and educational content program that helps guide brands and retailers towards alternative business models and new concepts centered around sustainability.
Pure will have an exciting mix of brands and some of the leading champions driving a better future for fashion. Visitors can learn about the new technologies making this new era possible. There will be panel discussions on stores of the future, the role of technology, customer experience, international expansion, Brexit, the role of technology in reshaping the fashion industry and how to adapt to this era of technological acceleration.
The global economy is experiencing steady growth heading into the second half of the year, but gathering storm clouds could dim prospects. The increasingly belligerent trade stance of the United States could trigger a damaging trade war. Higher oil prices could erode growth. Rising political risks in Europe, especially in Italy and Spain, could hurt growth prospects. Finally, increasing financial pressure on key emerging markets, including Argentina, Brazil, South Africa and Turkey, is darkening the outlook.
In a rising market characterized by declining stocks and low availability of spare capacity, the ability of the oil market to absorb any unexpected disruptions in supply (or demand for that matter) is limited, and therefore concerns about the future availability of oil supplies put significant upward pressure on oil prices.
Eurozone real GDP growth is expected to slow to 2.1 per cent this year and 1.7 per cent in 2019 from 2.6 per cent in 2017. UK growth has been revised down to only 1.1 per cent this year and 1.2 per cent in 2019. While the momentum for emerging markets like Argentina, Turkey, Brazil and South Africa remain strong, stiff headwinds of rising US interest rates and a strengthening dollar are triggering an outflow of capital from some emerging markets and forcing their central banks to raise interest rates.
Both China and the European Union are locked in their own trade disputes with the US, and China has been seeking common ground with the EU in opposing what Beijing sees as US protectionism.
China and the EU had a common interest in defending the global multilateral trading system as both sides believe that they must resolutely oppose unilateralism and trade protectionism and prevent such behavior from causing volatility and recession in the global economy. Both have already announced retaliatory measures against punitive US tariffs.
China will impose additional 25 per cent tariffs on 659 US goods worth S$50 billion in response to the US announcement that it will levy tariffs on Chinese imports. Tariffs on $34 billion of US goods including agricultural products such as soybeans will take effect from July 6. The EU also imposed tariffs on a range of US goods in response to import duties on EU steel and aluminum by the US administration.
US-based Worker Rights Consortium (WRC), an independent labour rights monitoring organization focused on protecting the rights of workers, has released a 29-page report assessing India’s biggest apparel exporter, Shahi Exports. The report claims mid-level professionals of the export house threatened and misbehaved with workers asking for wage increase. There are many more serious allegations of abuse and violence on the managers of the company.
With a turnover of $850 million (Rs 5800 cr.) and nearly one lakh workers, Shahi Exports has more than 50 garment manufacturing units across India. This report is based on recent developments at one of the Bangalore based units of the company.
The WRC claims to have prepared this report on the basis of interviews with more than 30 workers. Insisting on corrective action and remediation, the report demands those workers who have been physically assaulted and suspended from their jobs must be allowed to return to work with full back pay, compensation for their injuries, pain, and suffering, and loss of personal property from the April 4 attack. In addition, the report demands a written apology from the company for the injustice.
It has also been demanded that those managers and supervisors, involved in such violations, either actively or by allowing such practices to occur on factory premises, must be meaningfully disciplined, before these employees, who were the victims of the violence and other abuses at the factory, return to work. Also, termination of all those identified, in this report, for directing or perpetrating physical violence or death threats against workers, has been sought.
Shahi Exports is quoted saying the management was not involved in the altercation. They claim that there was no physical attack from Shahi’s management and the altercation that occurred happened outside the factory and just between workers. It is further claimed that it was the suspended workers who initiated the violence and the management believes they were the aggressors.
The third edition of textile symposium, The Fabric Year 2018, was held in Albstadt last week. The symposium was attended by around 150 participants from over 20 countries from America, Asia and Europe. It provided detailed into the current market developments. The conference was inaugurated by Eric Schöller, Member of the Executive Board Groz-Beckert. The first presentation of the day by Dr Josef Braml, Deutsche Gesellschaft für Auswärtige Politik, focused on the global competition between the US and China, as well as implications for Europe. Later Andreas Engelhardt, Groz-Beckert Product Marketing and Innovation, presented key messages from his established yearbook The Fibre Year.
Gail Strickler, President of Global Trade Brookfield Associates spoke on the Transpacific Partnership from the Asian perspective, the status of negotiations and the expected implications of the agreement for the global textile trade. Andreas Engelhardt and Martin Weiler gave insights into the developments of further key textiles markets.
A second presentation from Gail Strickler provided exciting insights into the US trade policy and status of negotiations for the North American Free Trade Agreement (NAFTA). An interesting outlook on the Italian fashion market was provided by Davide Bonassi, from the Italian Hosiery Association. Engelhardt and Weiler completed the block of presentations with a worldwide summary, with an outlook through to 2022
A seminar on trends in fabric forming will be held in Gujarat on September 8 organised by Textile Association of India (TAI). The seminar aims to give an opportunity to textile technologists to share their thoughts on meeting challenges. The interaction is expected to be highly productive and beneficial.
The seminar will be attended by experts from different parts of India who will present their papers to over 200 equally high profile practicing technologists and technicians. Topics covered include: technological developments in preparatory processes such as warp preparation, sizing, warp and weft knitting, trends in technical textile and its future in India, value addition through yarn dyeing and knitting, air engineering for weaving, importance and scope for energy conservation and weaving technology for quality fabrics.
Textile Association of India (TAI) founded in 1939 provides professional growth of technologists, managers, traders, researchers, entrepreneurs, teachers and consultants in the Indian textile scene. It caters to the needs of fibers, products and all sectors of the Indian industry. It organizes seminars, conferences, workshops, refresher courses and exhibitions of textiles and allied machines.
Among its aims are to promote the use of scientific knowledge in textiles, from fibers to garments; to implement programs of continued education in textile technology and management.
ICE cotton futures rose more than one per cent, supported by a rebound in commodity prices but the natural fiber marked its worst week in nine months amid escalating trade tensions between the United States and China. The most active cotton contract on ICE Futures US, the third-month December contract, settled up 1.01 cent, or 1.2 per cent, at 85.3 cents per lb. It traded within a range of 84.2 and 85.62 cents a lb.
The third month contract fell about five per cent for the week, the biggest weekly decline since mid-September. The US is the world's biggest cotton exporter, while China is the top consumer. Fundamentals remain supportive, apart from the trade dispute. The US crop has been struggling during this planting season and needs to prove itself in the months ahead, while the supply pipeline will be about as tight as it has ever been at the end of summer.
Speculators cut their net long position in cotton by 16,164 contracts to 93,044 in week to June 19. Total futures market volume fell by 4,972 to 18,131 lots. Data showed total open interest fell 3,880 to 261,946 contracts in the previous session. China will probably still have to import more cotton over the coming years, even from the US.
Net sales of tailored brands increased 4.5 per cent to $818.0 million in the first quarter of fiscal 2018. Retail net sales went up by 4.1 per cent while retail segment comparable sales grew by 2.1 per cent. Corporate apparel net sales increased by 9.6 per cent, or $5.5 million, due to the impact of a stronger British pound this year compared to last year.
On a GAAP basis, consolidated gross margin was $345.2 million, an increase of $12.8 million, primarily due to the increase in net sales. As a percent of sales, consolidated gross margin decreased to 42.2 per cent. On an adjusted basis, consolidated gross margin decreased 40 basis points, primarily due to a decrease in retail gross margin rate.
On a GAAP basis, retail gross margin was $328.8 million, an increase of $12.1 million. As a per cent of sales, retail gross margin lowered to 43.6 per cent. On an adjusted basis, retail gross margin increased $10.7 million while the retail gross margin rate decreased 30 basis points primarily due to increased promotional activities, mostly offset by lower occupancy costs as a percent of sales.
