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Aiming to develop skills of small plain land ethnic groups and absorb them in the garment industry, the government and garment manufacturers in Bangladesh have signed a Memorandum of Understanding (MoU) to impart training to them in oven-knit machines.
The MoU was signed by the Bangladesh Garment Manufacturers and Exporters Association – Skills for Employment Investment Program (BGMEA-SEIP), Access to Information (a2i) Program and Rainganj Computer cum Technical Training Institute at the in the Prime Minister's Office. As per the MoU, the a2i programme in PMO, with the support of SEIP and BGMEA will organize different courses on ‘Skills Development and Employment’ for minor ethnic communities living in plain land.
While the SEIP will provide training supports, the BGMEA has agreed to provide decent jobs in the RMG sector to successful candidates on completion of the training at the Raiganj Computer and Technical Training Institute in Sirajganj. There will be two skills development courses of two months duration viz Oven Machine Operation and Knit Machine Operation on a pilot basis at Raiganj Computer Thirty students will be accommodated in each course and later the initiative will be expanded to other training institutes/centers depending on the success of the pilot programme.
Cambodia’s Commerce Minister Pan Sorasak has told the British Ambassador Bill Longhurst that he would like to see the two countries enter a free trade agreement (FTA) as soon as possible following Britain’s decision to leave the European Union (EU). Cambodia does not have an FTA yet with Britain, therefore the minister wanted to push for one as soon as possible.
The feeling is FTA between Cambodia and Britain would strengthen bilateral trade and economic ties following Britain’s June 23 vote to leave the EU. Britain is expected to respond to Cambodia by the end of the year or early next year since it is in the stage of transformation after it leaves the EU.
The EU is one of Cambodia’s largest trading partners after the United States and more than 40 per cent of the country’s exports head to Europe. Cambodia’s EU exports are given preferential treatment under the ‘Everything but Arms’ initiative for least developed countries.
Britain has yet to evoke Article 20 of the EU treaties to formally leave the European Union and observers point out it could take at least two years.
Aimed at creating visibility for the smart textile industry and position Canada as a global leader in this emerging sector, the National Research Council of Canada (NRC) has teamed up with industry members to officially form the Smart Textile and Wearables Innovation Alliance.
Facilitated by the NRC, this industry-led, grassroots initiative will encourage the formation of supply chains to enable the development and commercialisation of next-generation technologies in targeted areas such as sport and fitness, self-care and wellness, medical diagnostics, industrial wearables and interactive tracking. The Alliance will regroup 34 Canadian companies from all levels of the supply chain to share ideas and develop products that will revolutionize the smart textile industry.
Smart textiles and wearables have digital components, including small computers, sensors and electronics, embedded in them and give them added value, such as communication, data collection and energy transfer. The importance of information sharing within its membership is underscored by such networking events planned for Vancouver on September 30 and Montréal on October 19. The focus of both events will be networking and matchmaking.
In a landmark decision, the Sri Lanka government has decided to allot India and China with Special Economic Zones to set up industries. This was disclosed by the Sri Lankan minister for international trade and strategic development, Malik Samarawickrama.
The Indians would be setting up pharmaceutical and auto parts industries in their zone. However, the location for the Indian SEZ is yet to be finalized. On the other hand, the Chinese have asked for 55 sq km (15, 000 acres) of land in the Hambantota area in the Southern Province for their zone. Their request is being processed, he added.
An Indian delegation would visit the island to begin talks on a framework for the Economic and Technical Cooperation Agreement (ETCA). A week after that, a Chinese delegation is expected for talks on a Free Trade Agreement (FTA). The Sino-Sri Lanka FTA is likely to be signed in 2017. An FTA with Singapore is also on the cards.
Three day Textile Expo Uzbekistan will open its doors to international buyers on Septmeber 7. The exhibition will take place at Uzexpocentre, Tashkent, Uzbekistan. The exhibition is being organized by the international exhibition company ITE Uzbekistan (Uzbekistan) and its partner, the ITE Group of companies, the leading organizers of the specialized trade exhibitions along with MODA UK, Scoop, Jacket Required, Bubble London, Lingerie Expo among many others.
This year, the exhibition will have national pavilions of Uzbekistan and India.The expo is the only specialized international trade fair of the textile industry in Uzbekistan and is a successful business platform for buyers and sellers: industry professionals from around the world. Major textile and RMG manufacturers and exporters of Uzbekistan take part in the show annually to demonstrate the widest range of products from yarn to finished products. About 30 leading Uzbek companies are lined up to participate in the exhibition this year.
Children, men, women RMG, hosiery products, sportswear, clothing for sleep and rest, home textiles, terry products with the label ‘Made in Uzbekistan’ are readily available in the pavilions of well-known trade chains of Auchan, C & A,Walmart, Quelle, Primark and Russian chains like Pyaterochka, Sportmaster among many others.
For professional visitors, that include wholesale buyers, a special buyer programme has been devised within the show’s framework for the last four years. In the last four years, the show was attended by over 200 major buyers from Russia, Ukraine, Belarus, Kazakhstan, Turkey, China, India and other countries.
According to the executive director of the Indonesian Synthetic Fiber Producers Association (Apsyfi) Redma Wirawasta, consumption of polyester fiber or polyester staple fiber (PSF) in Indonesia immediately improved after the imposition of anti-dumping duties in Q2/FY16. Production of synthetic fibers began to escalate due to the imposition of anti-dumping duties for the textile raw material. Synthetic fiber factory in Indonesia producing 180,000 tons of polyester fiber in the second quarter of 2016, an increase of production in the first quarter/2016 of 120,000 tons of polyester fiber.
At 300,000 tons in the first half PSF production in volume terms is higher than 200,000 tons of PSF produced in the first half of 2015. Meanwhile, the government imposed Anti-Dumping Duty for PSF products from India, China and Taiwan. The additional tax is an extension of a similar anti dumping duties which is valid for five years from 2011. Anti-Dumping Committee of Indonesia asses the volume of imports of PSF third country of origin continues to increase towards the end of the imposition of BMAD.
To promote investments in the garment and apparel sector, the Maharashtra government is working on a niche policy, looking at its job creation potential, and boost ‘Make in Maharashtra’ plans. The policy will focus on setting up garment and apparel units in the cotton-growing areas of Vidarbha and Marathwada, which are also known for agrarian distress and farmer suicides.
The economic benefits of value-addition to raw cotton would also percolate down to the farmers while generating direct and indirect employment. Apparel is a sector that is low on investments and high on manpower. They are also considering a special policy for the garment and apparel sector. They will promote such industries and units in Vidarbha and Marathwada, which would create a larger supplier eco-system and increase employment opportunities.
The policy will look at granting fiscal and non-fiscal incentives like land in Maharashtra Industrial Development Corporation (MIDC) areas, grant of FSI and allotment of plots for garment and apparel units in the ten textile parks to come up in Vidarbha and Marathwada. Though Maharashtra already has a policy for the textile sector, this niche, sectoral policy for garments and apparels will give a further boost to investments.
"The initial shock of Brexit is still sinking in across the world. Indeed, the ‘for’ campaigners are exulting as they see the referendum as a sort of reform to save the UK from an unstable EU grappling with migration, security and financial stability issues. Whether they like it or not, the fact is that it is a lot of East Europeans and Asians who work hard to keep the British economy growing."
The initial shock of Brexit is still sinking in across the world. Indeed, the ‘for’ campaigners are exulting as they see the referendum as a sort of reform to save the UK from an unstable EU grappling with migration, security and financial stability issues. Whether they like it or not, the fact is that it is a lot of East Europeans and Asians who work hard to keep the British economy growing. The local guys, instead of upping their game and remaining competitive, have decided to keep the EU guys away who actually work to make a living.
Formally notifying the intention to withdraw, triggering Article 50, sets a two- year clock running. After that, the treaties which govern membership would no longer apply to the UK. The terms of exit will be negotiated between the UK’s 27 counterparts, and each will have a veto over the conditions. Two vast negotiating teams could be created, far larger than those seen in British renegotiation. The EU side is likely to be headed by one of the current Commissioners. The negotiations would be tedious, as it would be hard agreeing to a new trading partnership, establishing tariffs and other barriers, and agreeing on other important issues. In fact, the complete exit would take about five years or more, because the EU wants to make conditions for exit really difficult to discourage others from following the same path.
Future of TTIP
Meanwhile, discussions are on in the academic community on the fate of the Transatlantic Trade and Investment Partnership (TTIP). Indeed, TTIP is an ambitious trade and investment agreement being negotiated between the US and EU. According to the United States Trade Representative (USTR), TTIP aims to bolster an already strong relationship to help boost economic growth and add to the over 13 million American and EU jobs already supported by the existing trans-Atlantic relations. TTIP is expected to provide greater compatibility and transparency in trade and investment regulation, at the same time, maintain high levels of health, safety and environmental protection. The UK and the US are important trading partners and there is skepticism that TTIP negotiations would get affected with Brexit. It is obvious that given the UK’s economic importance, the EU’s market for US products has potentially shrunk, making the EU a less attractive trading partner post Brexit. The first intervention came from USTR Mike Froman, who the day after the referendum emphasised that the “economic and strategic rationale for TTIP remains strong.” Much would also depend on the next US administration.
‘Euro-realists’ associated with the European Conservatives and Reformists (ECR) Group in the European Parliament, whose vision is to reform the EU by further liberalising the single market, may push for the finishing line. They are against hidden protectionism found in national labour laws or trade union practices. They argue, these weaken Europe’s ability to compete in the global market. Hence, if Euro-realism gathers momentum, the conclusion of TTIP could be a reality soon.
It is hard to predict the future course of TTIP negotiations. With three years into the negotiations, 30 chapters discussed and 14 rounds of negotiations complete, the deal is nowhere near completion. TTIP comprises three main blocks: market access for EU and US companies, cooperation on regulatory issues, and global rules of trade such as sustainable development or competition policy.
Striking a deal
However, TTIP has good offers from both the sides, which include 97 per cent of all tariff lines, the remaining 3 per cent is for so-called end-game. Both sides are working on improvements within the 97 per cent tariff lines for speedy removal of tariffs. On regulatory issues, there have been proposals for cooperation in chemicals, cosmetics, engineering, medical devices, pharmaceuticals, textiles and cars. The EU has initiated discussions on trade and sustainable development, including on labour and environment.
Meanwhile the President of European Council has urged member countries to continue with TTIP negotiations and conclude negotiations by the end of the year. On the contrary, it could happen that once Britain triggers Article 50 to quit the EU, both London’s and Brussels’ resources will be diverted on thrashing out a deal on what access the UK has to the single market, at the expense of working on TTIP. Another factor to slow down negotiations is elections in both Germany and France in 2017, where majority are opposed to TTIP. So, a clear picture will emerge only by the beginning of 2018. Though the timeline of end 2016 for TTIP is unlikely to be met, in the long run TTIP will be concluded and survive Brexit. After all, trade between the EU and US is already worth $4.7 trillion and TTIP provides a chance to the EU to increase it.
Cotton yarn price have increased a lot indicating that it has further upward momentum in short run. Price increment of cotton and cotton yarn was largely consistent recently, and cost stimulus to cotton yarn price has weakened unless cotton price surges again later. Spot supply of cotton is supposed to remain tight in short run if sales volume of reserved cotton is not raised and the time is not prolonged, which may push up cotton price. Therefore, cotton yarn price still has upward chance. However, if sales volume of reserved cotton is increased and the auction is extended, cotton supply tightness is expected to ease and cotton price may decline, which will weigh on cotton yarn price.
Profit of cotton yarn mills have improved after price increased recently, and profit margins enlarge. In view of spot profit, most cotton yarn plants are around cost line. Thus, spinners may have weaker support to revise up price.
Cotton yarn stocks are not high, especially carded 21S-40S. Price of cotton yarns with tight supply may be revised up, but price upward momentum of medium-to-high count cotton yarn is supposed to be weaker than that for medium-to-low count ones. Besides, short supply of imported cotton yarn made supply tightness of Chinese 21-40S hard to improve in short run, so price of Chinese 21S-40S is likely to rise further. Meanwhile, most cotton yarn mills still expect price of yarn to rise further in later period.
Hosiery manufacturers in southern India want the proposed knitwear board to be set up in Tirupur. Around 46 per cent of the knitwear exported from India originates from the Tirupur knitwear cluster. The Tirupur textile industry has units all along the value chain of knitwear starting from spinning, knitting, wet processing, printing, garment manufacturing and exports. In addition there are ancillary units supplying buttons, laces, embroidery, cones and yarn processing etc.
There are more than 500 production units involved in exports of knitwear from Tirupur. Tirupur accounts for nearly 80 per cent of basic circular cotton knit exports from India. The heartland of the knitwear industry in India, Tirupur has a supplier base which consists essentially of manufacturers who are mostly integrated forward or backward, if not vertical. There are a number of spinners of yarn integrating forward to set up knitting plants, textile process houses and then further integrating forward to become makers of garments.
If the vertically integrated unit is not wholly owned by the exporter, the exporter buys stakes or invests in a process house to become partners to ensure preference for their orders for the textile process and maintain standard quality as desired by their buyers.
