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A study commissioned by the Commerce Ministry of Thailand has found that the country’s economy could grow more than 0.77 per cent a year if it joins the Trans-Pacific Partnership. The study also found there would be challenges to confront by joining TPP including tougher competition and stringent protection of intellectual property rights.
The study done by the Panyapiwat Institute and International Institute for Trade and Development probes the benefits and negatives of Thailand joining the TPP. According to Sirinart Jaimun, DG, Trade Negotiations Department, Thailand would get large benefits from the TPP. According to the study, the GDP could grow 1.06 percentage points if other Asean countries, including Indonesia and the Philippines, join TPP. It also found the TPP would help promote growth in the automobile, electronic, computer, garment and textile sectors.
The pact would increase the development of the trade and service sectors as well as environmental protection and labour standards since member states would be encouraged to develop each sector to meet higher standards for sustainable growth. The study found the TPP would increase opportunities for Thai enterprises to invest overseas, and source raw materials from other countries.
It would also promote better awareness of intellectual property rights, leading to stringent protection, as well as support new innovations and research and the development of high technology.
Partners of ‘Bangladesh Sustainability Compact’ sat more needs to be done in ensuring labour rights and trade union rights to overhaul the sector as it faced a severe blow because of Rana Plaza collapse in 2013. During the second follow-up meeting of the Sustanablitiy Compact in Dhaka, they also acknowledged the importance of brands and retailers to adopt practices that promote responsible business conduct in global supply chains, and encouraged them to adopt an uniform code of conduct for factory audits in Bangladesh.
Sustainability Compact is a partnership between the Bangladesh government, the European Union, the United States and ILO, to take the stock of progress in its implementation since its last meeting. The partners recognised further the progress made by Bangladesh since the last follow-up meeting towards meaningful and sustainable changes in the RMG industry in Bangladesh, said a joint statement issued after the meeting.
The meeting appreciated the recent promulgation of implementing rules under the Bangladesh Labour Act, the near completion of initial safety audits by the government and hundreds of RMG factories, the launch of ‘Better Work Bangladesh’ programme with ILO/IFC and the continuation of efforts to improve the capacity of the some organisations like DIFE, Fire Service and Civil Defence Department, Rajuk, through increase in staff and budgetary allocations.
Alcantara is pushing boundaries in textiles. Over the years, it has been the go-to material for durability in everything from textile components of yachts to fashion collections, with options in thicknesses, colors and textures, making it pioneeringly functional. Talented young artists have interpreted Alcantara in their own ways. Alcantara’s hi-tech and uniquely innovative qualities make it a candidate for serious design experimentation. The material has been tested for resilience, color and technological abilities. It has been mixed with foam, wood and aluminium to form flexible furniture. Motorised Alcantara-made cones have been made to hang from the ceiling and move up and down into a pool of water, forming peaceful droplets. A belt has been created out of the material to demonstrate its strength.
The soft material has been paired with glass, marble and metal, and repositioned as solid matter. Wrapped around these hard elements multiple times, the folds create subtle color gradients and patterns.
A designer has played with Alcantara’s color ranges, creating what appears to be large quilted playground toys. Another designer has harnessed a black and metallic iteration of Alcantara and introduced an additional layer of film to form a perforated, extra enduring textile lighting piece.
Labour rights groups are calling on Swedish fashion giant H&M to do more to protect garment workers in Bangladesh, after a review of H&M’s strategic suppliers shows that severe delays in carrying out urgent and vital building repairs continue to leave tens of thousands of workers at risk of death and injury.
The Clean Clothes Campaign, the International Labor Rights Forum, the Maquila Solidarity Network and the Worker Rights Consortium, each a witness signatory to the Bangladesh Accord on Fire and Building Safety, published an update to an initial report into delays in safety repairs at 32 of H&M's most strategic Bangladesh suppliers. The update, based on a review of publicly-available documentation carried out in January 2016, shows that all but one of H&M’s strategic suppliers remain behind schedule in making repairs and that over 50 per cent of them are still lacking adequate fire exits.
However, the report does demonstrate some progress. Although the overall number of outstanding fire, electrical and structural renovations remains high at 37 per cent, the number of items reported as ‘behind schedule’ at these 32 factories has decreased. The authors point out that, while this reflects actual progress in some cases, it is largely the granting of deadline extensions to factories rather than the completion of renovations that explains the improvement.
Leading US media and marketing company, Meredith Corporation announced a brand licensing agreement with Apparel Bridge LLC for Shape(R) Active, an active wear collection designed for women. This is the first licensing program announcement for the category-leading SHAPE brand, which was acquired by Meredith in January 2015.
The moderately priced collections are available at DicksSportingGoods.com, kohls.com and Equinox gyms, along with many additional retail partners including Amazon. The designs are grounded in high performance materials with features including DryFuze(TM) to wick moisture, and reflective or glow-in-the-dark treatments. Each piece is figure-flattering, with details such as a signature S-curve seaming in tops, jackets and bottoms.
The launch of SHAPE Active is just one of many programs announced by Meredith Brand Licensing in the past year, including the partnership between EatingWell and Bellisio Foods, Inc. on an EatingWell healthy frozen food product line. These launches build on Meredith's already successful licensing programs, such as partnerships between Better Homes and Gardens and Walmart, Realogy and FTD, and Allrecipes' partnership with Clipper Corporation on a line of cookware, bakeware and kitchen gadgets.
"The report says, economic growth in South Asia is projected to strengthen in 2016-17, contingent upon steady progress on domestic policy reforms. Aggregate GDP is expected to grow by 6.7 per cent in 2016 and 7 per cent in 2017, up from an estimated growth of 6 per cent in 2015. The improved outlook is likely to be broad-based. In most economies, including Bangladesh, India, Pakistan and Sri Lanka, strong private consumption will remain the major driver of growth, offsetting relatively tight fiscal policies and weak exports."
The United Nations World Economic Situation and Prospects 2016 report projected South and East Asia to remain the world’s most dynamic and fastest-growing region in 2016/17, despite the recent economic slowdown. The UN report said, as the world economy continues to face considerable headwinds, the external environment for most economies in the region will remain challenging. In 2015, sharply lower commodity prices, weak trade activity, large capital outflows and increased financial market volatility weighed on aggregate growth, which fell to the lowest level since 2001. Aggregate growth in East and South Asia is forecasted to pick up slightly from 5.7 per cent in 2015 to 5.8 per cent in both 2016 and 2017 amid a modest improvement in global growth.
According to the report, a key risk to the regional outlook is a sharper- than- expected slowdown of the Chinese economy, which would negatively impact trade and investment flows in East Asia. Another risk factor is related to the monetary policy normalization in the United States, which could lead to renewed financial turmoil or a tightening of liquidity conditions across the region.
Growth in South Asia to strengthen, led by India
The report says, economic growth in South Asia is projected to strengthen in 2016-17, contingent upon steady progress on domestic policy reforms. Aggregate GDP is expected to grow by 6.7 per cent in 2016 and 7 per cent in 2017, up from an estimated growth of 6 per cent in 2015. The improved outlook is likely to be broad-based. In most economies, including Bangladesh, India, Pakistan and Sri Lanka, strong private consumption will remain the major driver of growth, offsetting relatively tight fiscal policies and weak exports. Some country-specific factors, such as the lifting of international sanctions against the Islamic Republic of Iran and reconstruction spending in Nepal, are also expected to support economic activity during the outlook period.
India’s economy, which accounts for over 70 per cent of South Asia’s GDP, is projected to grow by 7.3 per cent in 2016 and 7.5 per cent in 2017, slightly up from an estimated 7.2 per cent in 2015. As in other countries of the sub-region, the mac¬roeconomic environment in India has improved over the past two years, helped by the sharp decline in the prices of oil, metals and food.
As a net oil-importing region, South Asia has seen reduced inflationary pressures. Average consumer price inflation slowed from 8.2 per cent in 2014 to 6.2 per cent in 2015, the lowest level in more than a decade. Upward price pressures are expected to remain muted in the short run. Amid lower inflation, monetary policy has been loosened in several economies, most notably India. While room for further easing is relatively limited, monetary policy is projected to remain accommodative in most countries.
Budget deficits in most South Asian economies are expected to further moderate gradually in the wake of low oil prices, stronger economic activity and rationalization of fuel subsidies. Nonetheless, fiscal positions remain fundamentally weak and further reforms are needed to enhance the fiscal space.
East Asia projected to see steady growth
The report suggests, East Asia is forecast to see solid Gross Domestic Product (GDP) growth of 5.6 per cent in both 2016 and 2017 – about the same rate as in 2015, but significantly below the average of 6.3 per cent recorded in 2012-14. Further moderation in China’s growth is expected to be offset by a pickup in activity in some other large economies such as Hong Kong Special Administrative Region of China, Indonesia, Taiwan Province of China and Thailand. Given protracted weak demand in most developed countries and global financial market uncertainty, East Asia’s economies will continue to rely on domestic and regional sources of growth, including more expansionary fiscal policies.
However, economic growth in China is expected to further ease from an estimated 6.8 per cent in 2015 to 6.4 per cent in 2016 as the economy undergoes a structural transformation towards a more balanced and sustainable growth path.
The economies of Taiwan Province of China and Hong Kong Special Administrative Region of China have posted weak export performances over the past year. For both economies, a pick-up in exports and steady private consumption growth are expected to drive moderate growth recoveries in 2016/17. Among the bright spots in the region have been the economies of Myanmar and Vietnam, where growth-supporting factors, such as new investment and strong consumer spending, are projected to remain in place.
This year’s Interfiliere Hong Kong will dedicate insightful knowledge on modern corsetry to exhibitors and visitors. In addition, the event will celebrate the ‘Modern Corsetry’ in all possible aspects exploring its charisma, creativities and performances. Corsetry has revived in the modern trend with exceptional features and elegance. The show will create an informative and interactive platform bringing together products with high quality from fabric, lace, accessories, embroidery and OEM/ODM sectors.
During the event, ‘The Exception and OEM’ Fashion shows will be the new features to be expected. Surprising, inspiring, stimulating and imagining projects are expected to be revealed in Interfiliere Hong Kong 2016. The show will bring jacquard into the spotlight. Educative information on the history of profession, the graphic software and machinery will be illustrated in the Jacquard pathway.
Prototypes Fashion Shows will return to the trade show for the second time. The show will collaborate with Concepts Paris bringing attention to Shapewear. For the very first time, OEM Fashion Shows will be presented in Interfiliere Hong Kong showcasing the latest products with innovation, inspiration and know-how. Another feature of this year’s event is the seminar and conference programs in collaboration with professionals will share informative knowledge on trends, current and future market.
Interfiliere Hong Kong launched its first show in 2007. In the past 10 years, it has created a community gathering professionals around the world and empowering numerous customers to exchange ideas and fulfill their business needs. Scheduled to be on 15-16 March 2016, the event will be held at the Hong Kong Convention and Exhibition Centre.
Most cotton ginning and pressing factories in Maharashtra are functioning at 50 per cent capacity because of low arrivals of cotton in the market. Farmers have sold only 40 per cent of their stocks in the ongoing season and are still holding on to 60 per cent of their produce. Moreover, several petty traders from Gujarat have been purchasing cotton from Maharashtra, resulting in low arrivals.
There is a lot of disparity in the market as a result of which ginning and pressing units are finding it difficult to keep their units up and running. Maharashtra has over 1,100 units and only 450 units are functioning at 50 per cent capacity. This is because farmers are not getting the price they want and holding on to their stocks for better prices.
Maharashtra processes about 80 lakh bales annually. Around 60,000 laborers are working in these units and most of the units are located in Marathwada. Maharashtra has a capacity of producing one crore bales. Farmers have sold some 80 lakh quintals of cotton to traders so far. Because of the low arrival position, ginning and pressing units are expected to close early this season, by February. Factory owners are making losses of Rs 75,000 per 100 bales and are finding it difficult to survive.
Around 1,000 of the 33,000 power loom units in Coimbatore and Tirupur districts of Tamil Nadu have become sick units. And a a few thousand more units are in deep debt, with interest mounting every day. The situation is fast worsening. The monthly interest alone comes up to Rs 20,000 a month. This apart from the amount paid for labor, electricity bills, replacing spare parts and paying for dyeing, fitting, knotting charges.
A large number of units have not been able to pay off their bank interest regularly and that keeps accumulating over the years. In 2014, textile units had reached an agreement with power loom unit owners, whereby textile units would give a 30 per cent hike in job working charges. But this arrangement lasted for hardly three months. The textile units then went back to their old rates claiming business was dull. Textile unit usually give power loom units the yarn to be spun into fabric.
An average unit with around 10 looms gets to weave around 600 meters of cloth. It gets paid about Rs 5 a meter but labor and other charges have to be paid and working costs like electricity, spare parts, knotting and dyeing have gone up.
The textile industry in India has warned the government that if goods and services tax (GST) is levied on maximum retail price (MRP) as proposed, it would have multiple ill effects on the entire sector. The industry has recommended the government to levy GST on ex-factory price, which is always much lower than the MRP, as it would leave some leg room for periodic discount offers. The textile industry offers heavy discounts on MRP of branded garments not only in their factory outlets but also in organised retails to attract business. Even branded garments are available at affordable prices especially in the lean season which otherwise remain un-affordable for the average middle class buyers.
Considering expenses incurred on branding, transportation and a host of other aspects, it is important to have GST levy on ex-factory, which would be determined on the basis of actual manufacturing cost. The ex-factory price can easily be arrived at on the basis of the current system of Central Sales Tax (CST) paid to the government, industry represented to the Finance minister Arun Jaitley.
The industry has also urged the government to keep this employment intensive industry in the lowest slab of GST. Trade sources believe that 12.5 per cent of GST would be a logical level without any ill-effect on the industry. India's textiles exports are set to record a marginal decline at $40 billion in the financial year 2015-16 as compared to $41.4 billion reported in the previous financial year.
