FW
The World Trade Organisation (WTO) has asked the G20 economies to lead by example in the fight against protectionism by rejecting new trade-restrictive measures and rolling back existing ones. Protectionist and trade restrictive measures by G20 countries touched a new high between mid-October last year and mid-May this year, the WTO has observed.
G20 economies applied 145 new trade-restrictive measures, equating to an average of almost 21 per month, a significant increase over the 17 per month recorded in the previous reporting period. "This is the highest monthly average registered since the beginning of the monitoring exercise in 2009, which helps explain that the overall stockpile of restrictive measures introduced by G20 economies grew by 10% during the review period," the WTO said in its report that was released last Tuesday.
The main factor behind the rise in trade-restrictive measures was an increase in the number of trade remedy investigations by G20 economies. Anti-dumping actions account for the majority of restrictive measures imposed, with most of the investigations concentrated in sectors such as metals (particularly steel) and chemicals. G20 members also imposed more distortive measures in the form of government support for sectors such as infrastructure, agriculture and export-specific activities.
Terming this trend "worrying", WTO Director General Roberto Azevedo reportedly said, "A rise in trade restrictions is the last thing the global economy needs today, with GDP growth sluggish and 2016 expected to be the fifth year in a row that trade has expanded by less than 3%". Of the 1,583 trade-restrictive measures, including trade remedies, recorded for G20 economies since 2008 by this exercise, only 387 had been removed by mid-May 2016. The total number of restrictive measures still in place now stands at 1,196. These trade-restrictive measures, combined with a notable rise in anti-trade rhetoric, could have a further chilling effect on trade flows since the prospects for world trade in 2016 and beyond remain uncertain. The recent WTO trade forecast predicted merchandise trade volume growth of 2.8% in 2016, unchanged from 2015.
The organisation noted that although some G20 economies have been eliminating trade restrictions, the rate by which this is done remains too low to dent the stockpile of such measures. Of the total number of trade-restrictive measures recorded for G20 economies since 2008, the share of eliminations, or roll-back, make up less than 25% whereas the restrictions cover over 6% of all G20 imports and 5% of global imports. The report also found that during the reporting period a total of 100 measures aimed at facilitating trade were taken—a monthly average of 14 measures. According to the organization, this represents an increase compared to the previous reporting period, but remains below the average trend observed since 2010.
Peru's clothing exports to the United States reached $193 million between January and April 2016, a $7million increase from the same period in 2015. Peru–US bilateral trade figures reflect an upward trend in shipments to the North America.
Exports of cotton T-shirts for men went up by 8.1 per cent and those for women went up by 46.9 per cent. Shipments of cotton top tanks for women or girls went up by 105.3 per cent, as seen in the year's first four months. Shipments of woven or knitted top tanks went up by 41.4 per cent. Other products, such as cotton dresses for women, up by 51 per cent, also contributed to greater exports to the United States.
Likewise, growth was also experienced by other products made of synthetic fibers like shirts for men, women and children. Peru’s textile and clothing exports have grown by an average of 11 per cent per year in the last ten years, thanks in large part to sector-specific investments focused on output growth and modernization, an increased global demand due to the quality of the goods and speed of delivery; and, perhaps most significantly, increased trade preferences granted by the United States.
Organized by the Turkish Clothing Manufacturers’ Association (TGSD), a fashion conference will be held in Turkey, October 12 to 13, 2016. Turkish Clothing Manufacturers Association was founded in 1976 with the purpose of preparing the environment necessary for development of clothing industry in Turkey, becoming a leader for the sector, promoting the sector abroad and achieving sectoral cooperation. Currently, TGSD has approximately 400 members, all of which are leaders in the Turkish apparel industry.
TGSD became a full member of Euratex, the European Textile and Apparel Federation which brings the European textile and clothing industries together under a single roof, on June 6, 1997. This membership has enabled Turkish clothing industrialists’ rights to be discussed on the same table as European industrialists and has completed the integration process with the European Economic Cooperation.
Turkey has always been an important junction in trade between the East and the West, and now it’s becoming a junction for fashion too – bringing the best of international fashion to its own streets, and exporting its home-grown fashion to the world. Turkey is already well known as one of the world’s leading nations for manufacturing high-street fashion and denim. The dynamic new spirit among Turkey’s fashion brands is creating style that is cosmopolitan yet truly Turkish.
Curtains came down on the 90th edition of Pitti Uomo (the men's fashion trade show) last Friday and signaled an increase in attendance figures. According to closing figures, the event, which took place in Florence from June 14-17 recorded a 3 per cent jump in Italians, or 12,100 buyers and a 2.4 per cent increase in foreigners, the non-Italian attendee numbers reaching 8,400. The 90th edition offered a particularly rich four-day program with both new brands attending and special events taking place; a total of 1,222 brands, of which 248 were new. The event showcases the latest Spring/Summer collections, which set the tone early on in the season, giving a positive signal to the current market, while the economic context is rather grim.
Pitti registered a 2.5 per cent growth in buyer numbers which reached 20,500 compared to 20,000 last year. In total it attracted more than 30,000 visitors. After a mild start with a lacklustre first day attendance, Pitti was full in the days that followed. Asian buyer numbers increased the most in this edition. Britain registered the largest growth in buyer attendance recording double-digit growth, up 18 per cent; Belgium followed, up 7 per cent, and Germany was up 5 per cent. Worth noting was the strong Russian comeback, up 10 per cent, after the collapse of recent seasons and an increase in "incredible" buyers from the Baltic countries and Eastern Europe. Only the French disappointed.
Concerning the other continents, there was an evident shift in power towards Chinese buyers, whose attendance increased 14 per cent, while American buyers increased 3 per cent and Japanese by 4 per cent. Enrico Labriola Trade show organisers also highlighted "excellent results for Portugal, Denmark, Mexico, Australia, South Africa, Singapore, Malaysia and Taiwan." Among the 15 highest ranking countries for overall attendance, Germany was at the top of the list, followed by Japan, Spain, the UK, the Netherlands, China, France, Turkey, Switzerland, Belgium and the US.
KAKEN, a government-accredited organization of Japan that specializes in textile laboratory tests, will represent GINETEX in the country adding onto GINETEX’s national members that now amount to 22 in the world. With a strong presence in all of Europe, North Africa and Brazil, GINETEX now welcomes KAKEN as its national member in Japan, in order to promote and support the use of textile care symbols in the land of the rising sun. Today, the Japanese market represents over 300 clothing brands. The signature of this partnership with KAKEN in Japan is a historic moment for GINETEX, which will be represented for the first time in Asia.
Thomas Rasch, President of GINETEX feels the integration of KAKEN translates their common will and desire to standardise all textile care symbols around the world. With the precious support of 22 national members, GINETEX will continue to our work on promotion and use of these symbols, on an international scale.
Kaken is the most trusted and the biggest textile products inspection organisation in Japan. In addition, they are in cooperation with many industries including Japan Textile Evaluation Technology Council (JTETC), a well-known NPO, which has close relations with the government of Japan. A key player in the Japanese textile market and in the industrial market at large, this organization inspects and tests textiles (staples, filaments and yarns, woven and knitted fabrics and finished products), leather, rubber, chemicals, paper products and other industrial supplies, with the objective of obtaining certifications. KAKEN is an ISO 9001: 2000 certified textile testing laboratory.
KAKEN will take advantage of its strong influence and long-proven legitimacy in the Japanese textile Ecosystem (including government institutions, national textile industry organizations, textile and clothing manufacturers as well as consumer associations), to broadly communicate on the change and standardization of textile care symbols – now qualified ISO 3758, a certification backed by GINETEX, the guarantor of textile care labeling codes.
The International Cotton Advisory Committee (ICAC) will hold its 75th plenary meeting in Pakistan from October 30, 2016. The theme of the meeting would be ‘Emerging Dynamics in Cotton: Enhancing Sustainability in the Cotton Value Chain’. Registration for the six-day event in Islamabad is already underway, ICAC said. The agenda of the meeting features seven open sessions, six breakout sessions, plenary sessions and meetings of ICAC working groups on matters of interest to members and their cotton sectors.
The topics for seven open sessions include: Sustaining Cotton Growth: Incorporating Climate Dynamics, World Cotton Market Report, Reducing the Water Footprint of Cotton, Overcoming Textile Industry Challenges, Technical Seminar: Emerging Pests in Cotton and their Control, The Role of the Public Sector in the Cotton Industry, and Challenges to Cotton: Confronting Inter-fibre Competition.
Breakout sessions will discuss topics such as Reducing Contamination in Picking & Handling, Enhancing Efficiency in the Cotton Value Chain, New Challenges to Cotton: The Perspective of Developing Countries, Best Practices in Cotton Ginning, Modern Practices in Instrument Testing, and Developments in the Transfer of Technology. Plenary meetings of the ICAC provide a forum for discussion of international issues of importance to the world cotton industry, and provide opportunities for industry and government leaders to consult on matters of mutual concern.
The 74th plenary meeting, was organised last year by the Office of the Textiles Commissioner, Mumbai along with Cotton Corporation of India, Cotton Association of India and the Confederation of Indian Textile Industry, under the theme ‘From Farm to Fabric: The Many Faces of Cotton’ was attended by 500 delegates from 50 countries across the world.
Owing to the losses suffered by sweater and jacket manufacturers during past three years, many players are now shifting to manufacturing of jeans, trousers and shirts in Ludhiana. Besides, many jeans washing units have been established in the city after seeing the huge production of denim over here. As Ludhiana is known for its hosiery products all over the world now the trend has changed in a drastic manner.
Entrepreneurs, who own a washing units used to wash the jeans at a small level but for past few months they are not able to complete orders in time. The industry has now seen a change in trend in manufacturing of goods. While some businessmen have already shifted to manufacturing trousers and shirts, many others are planning the same. Huge stocks of hosiery goods are lying in godowns of manufacturers even this year.
Industrialist say, there were times when Ludhiana industry used to manufacture only hosiery products like sweater, jackets among others. But now time has changed and people want to expand their business by manufacturing other garments as well. These are just few of many examples to name.
In order to enjoy the Generalised Scheme of Preferences (GSP) facility, Nepali exporters will have to register their companies in European Union (EU) countries by the end of 2016 under which they will pay less or no duties on their exports. According to Tej Singh Bista, Deputy Executive Director of Nepal’s Trade and Export Promotion Centre, the EU will provide duty-free access only to companies registered there from January 1, 2017.
He added that registered Nepali companies would not need to get the approval of the customs department to receive the facility. The EU countries will provide their code to the registered companies. Based on the code, the companies can declare their products themselves to receive the GSP facility.
The EU has been providing duty-free access to products imported from the least developed countries (LDCs) including Nepal since 2001. It revised the provision in 2014 and extended 100 per cent duty-free facility to these countries under the ‘Everything but Arms’ scheme. Bista said the scheme had opened the way for almost all the products exported from Nepal. However, exporters have not been able to benefit fully from the facility due to the poor quality of their products and procedural complexities. The GSP reduces the cost of exported goods by 8 to 10 per cent.
"The government has announced a slew of measures for the textile sector, through labour reforms to generate 10 million jobs, boost exports by a cumulative $30 billion and investments by Rs 74,000 crores over three years. Estimated to cost Rs 6,000 crores, the special package approved by the Cabinet is to improve competitiveness, lead to greater production through a string of labour reforms and generate jobs. An estimated 70 per cent of workforce in garments industry are women."
The government has announced a slew of measures for the textile sector, through labour reforms to generate 10 million jobs, boost exports by a cumulative $30 billion and investments by Rs 74,000 crores over three years. Estimated to cost Rs 6,000 crores, the special package approved by the Cabinet is to improve competitiveness, lead to greater production through a string of labour reforms and generate jobs. An estimated 70 per cent of workforce in garments industry are women.
Industry cheers package
Clothing Manufacturers Association of India (CMAI) has welcomed the package. As Rahul Mehta, President of CMAI says the announcements have unshackled the garment industry and the results will be evident not only by way of additional employment generation but also additional exports. Mehta said the inclusion of State level taxes in the computation of duty drawback will address a long standing demand of the industry, and will provide a major relief to the exporting segment. “The EPF reforms - government bearing the whole PF burden of the industry and making PF optional for employees earning less than Rs 15000 per month - will help the industry as well as the workers,” he added.
R K Dalmia, Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL) though has welcomed the special package, but has expressed deep concern for ignoring Home Textile sector in the special package, which is equally labour intensive industry at par with Apparel sector. In particular, manufacturing of bed-linen requires more number of workers in making each piece of the product. He emphasized that the process is the same i.e. adding value after cutting the fabric and using trims etc. in the manufacture of finished products. Considering these facts, Dalmia appealed to the government to consider treating all the ‘cut and sew’ products (including Home Textiles and Made-ups) for granting benefits under the special package for employment generation and promotion of export, at par with Apparel products.
Industry as a whole has cheered the decision to extend incentives under the amended Technology Upgradation Fund scheme from 15 per cent to 25 per cent. Shishir Jaipuria, Chairman, FICCI Textiles Committee, said the Indian textiles and garment industry is facing tough competition in the global market, the refund of state levies comes as a breather and would help them to gain more competitiveness in global markets, where we have to compete with duty-free regimes.
Significant among these reforms was the government's decision to fund the full 12 per cent of the employers' contribution to the Employees' Provident Fund Scheme for new employees in the garment industry if the candidate earned less than Rs 15,000 a month. The scheme, which will run for three years, would cost the textiles ministry Rs 1,170 crore.
The Ministry has also taken on textile factory owners by instituting fixed-term employment for garment sector employees. Employees had long demanded they be considered as permanent and their working hours and wages be fixed, as the industry was seasonal. The ministry has also fixed overtime hours for workers, to not exceed eight hours a week, in line with International Labour Organisation norms.
M Senthilkumar, Chairman, The Southern India Mills’ Association (SIMA) has welcomed the package and stated that slew of measures would greatly help exports which attract 16 to 20 per cent duty in all the major international markets. He welcomed the relaxation of labour laws which is a long pending demand of the industry. The bearing 12 per cent of the employer’s contribution of Employee Provident Fund Scheme by the government for the new employees of the garment sector for the first three years would benefit the sector and the employees under the current scenario. Senthilkumar has hailed the announcement of optional EPF for employees earning less than Rs 15,000 would heave a sigh of relief for the garmenting sector where large number of employees work for short term and prefer to take full wages without deduction.
The Confederation of Indian Textile Industry (CITI) has welcomed the initiative for job creation. In a statement CITI has said it hopes this is the first step towards creating employment and more initiatives are expected to follow to strengthen and support the textile value chain and the make in India initiative. "China and India have robust textile value chain, which has been the core strength and source of confidence for international buying houses. It is also a fact that Bangladesh is heavily investing to strengthen the textile value chain to provide comfort to the buying houses and maintain their growth for garment exports. On the back of TPP discussions, Vietnam is investing in substantial capacities for yarn and fabric manufacturing to bolster their value chain to support and enhance their garment exports," CITI said in its statement. However, CITI has said that the package should integrate the apparel export benefit to further strengthen the textile value chain. "
The Union government's announcement of the Rs 6,000 crores special package for the textile and garment sector is set to add glitter to the country's largest man-made fabric (MMF) sector in Surat. The industry is eagerly awaiting the fine print of the textile package.
However, industry leaders feel primary details shared by the Finance Ministry on the special textile package like the five per cent additional duty drawback, refund of the state levies and the increase of subsidy in the amended technology upgradation fund scheme (TUFS) from 15 to 25 per cent will provide a level-playing field for the textile exporters facing tough completion from their counterparts in China, Bangladesh and Vietnam.
Narain Agarwal, Vice Chairman, The Synthetic & Rayon Textile Export Promotion Council's (SRTEPC) points out the special textile package is a booster dose for the ailing textile sector. It's going to be a win-win situation for the textile exporters and manufacturers. The amended TUFS subsidy hike will allow more and more textile entrepreneuers to invest in newer technology to boost production. The benefits of additional duty drawback and the refund of state levies will help boost the exports of fiber, yarn, fabrics, etc.
Dinesh Zaveri, Secretary, Man-Made Textile Research Association believes the special package will boost textile exports from Surat and other parts of manufacturing centres in the country. At present the duty drawback on spun fabric, nylon and filament fabrics ranges from 3 per cent to 8.6 per cent. If the additional five per cent is added, the filament fabric export alone will get duty drawback benefit of around 14 per cent.
