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Despite 47 per cent decline in apparel exports to the country in April, Bangladeshi garment exporters are hopeful of Canada as an export destination. As per the Canada Bangladesh Chamber of Commerce and Industry in Bangladesh (CanCam), Canada is one of the traditional markets for Bangladesh where the trade balance is heavily tilted towards the latter with products worth CAN $ 726 million going to Canada in 2019.
Bangladesh’s exports to Canada grew 14.53 per cent year-on-year to CAN $1.97 billion in 2019, riding on the trade privilege extended by the North American nation. Further, in 2018, Bangladesh’s shipments to Canada were worth CAN $ 1.72 billion, where more than 92 per cent were apparel items. However, Bangladesh’s exports declined by 46.63 per cent in April this year as confirmed by the official custom statistics of Canada. The country exported $715.15 million worth of apparels in April ’20 as compared to that of US $ 381.70 million in April last year.
The country also saw a drop of 33.17 per cent to clock just $68.92 million revenue from apparel exports to Canada in April this year, while the export value in the corresponding month of the prior year was $103.12 million.
Of all the exporting destinations, China remained the most affected country with over 54 per cent fall in its apparel exports shrunk to below $100 million. The Chinese apparel shipment to Canada valued at just $97.38 million in April this year as against $212.13 million worth of shipment in the same month of 2019.
The Federation of Indian Export Organisations (FIEO) expects India’s exports to decline by around 10 per cent in the current fiscal. But in case of a second coronavirus wave, the contraction may reach 20 per cent, it anticipates. FIEO is receiving a lot of enquiries from countries where anti-China sentiments are high and many of these enquiries have been converted into orders.
However, the demand in employment-intensive sectors like gems & jewellery, apparels, footwear, handicrafts and carpets is still a challenge, FIEO said.
The export recovery is likely to be led by pharmaceuticals, medical and diagnostic equipment, technical textiles, agri and processed foods, plastics, chemicals and electronics. As the domestic demand for petroleum products is extremely low, India may witness increasing exports of petroleum as well for such companies to sustain in business, said FIEO in a press release.
FIEO suggested its members to look into a three-pronged strategy: focus on countries like the United States and the United Kingdom that are providing demand stimulus; explore countries having high anti-China sentiments, including European Union nations, the United States, Japan, South Korea, Australia, New Zealand and Canada; and revisit economies depending on crude and commodities exports as prices of such products are likely to be subdued.
The federation urged the government to provide an ecosystem that addresses the cost disability of Indian manufacturing. Import substitution manufacturing should attract interest subvention on credit, offsetting inland freight disadvantage besides equalisation of import tariff from free trade areas.
CSIRO researchers have genetically modified cotton to make it naturally coloured The development will be lead to wrinkle-free, naturally dyed, stretchy cotton to outperform synthetic fabrics. It will benefit the $2 million Australian cotton industry. Though renewable, recyclable and biodegradable, the cotton still needs to be dyed, and the use of sometimes harmful chemical dyes is considered a blot on the industry's environmental copybook. The naturally black cotton will replace black dyes, which are regarded as the most polluting of textile colors.
It's estimated that on average, each Australian produces about 25 kg of textile waste each year. Much of it is synthetic and it ends up in landfill, where it will take hundreds of years to degrade. Genetically modified cotton, known as biotech cotton, could have a substantial impact on the textiles world. A move away from synthetic materials in favor of cotton would be an important step in protecting the environment.
The team is also working on a longer-term project, creating wrinkle-free cotton that doesn't require ironing. It involves screening and testing thousands of cotton plants to transform them into new super-cotton varieties to produce fiber with greater elasticity that can compete with synthetics.
China Customs Statistics (CCS) states, garment exports from the country grew 13.10 per cent to $7.63 billion as against April this year. The month-on-month surge indicates pick-up in apparel exports as retailers worldover are gradually opening stores and seeing consumers stepping out up for shopping. However, the cumulative value of Chinese apparel shipment declined by 26.40 per cent on year on year basis to clock $33.37 billion revenue.
Exports of textile yarns, fibers and other products too increased on month on month basis by 41.30 per cent to clock $20.65 billion in May ’20. The cumulative exports, however, increased massively on Y-o-Y basis by 79.20 per cent and values stood at $57.95 billion.
Of all textile products, textile yarns saw a fall of 58 per cent and exports of the same were valued at $3.87 billion, while the export of textile fabrics tumbled by 46.50 per cent to clock $17.05 billion in Jan.-May ’20 period.
Probably the massive shipment of textile products such as masks and coveralls led China see staggering surge of 295.90 per cent on Y-o-Y basis and these textile products hit $38.13 billion revenue for the country.
Though China increased on monthly basis in its apparel exports and on yearly basis in textile exports, the upcoming months will only tell when will China be able to stabilize exports of both textile and apparels.
The Global Fashion Agenda (GFA) plans to stage an online event to urge the European Union (EU) to commit to circularity in the textiles industry in its post-pandemic recovery plans. The event will examine the impacts of COVID-19 on EU textiles policy and call for even stronger commitments to accelerating the circular economy, both regionally and globally, going forward.
To be held on the Zoom platform on July 7, will bring together high level representatives from EU institutions, the fashion industry, the civil society as well as intergovernmental and international organizations. The event will unveil the recently-launched Policy Hub report, 'Recommendations for Green Recovery in the European Apparel and Footwear Industry.’ The report is a collaborative effort between the Sustainable Apparel Coalition (SAC), Federation of the European Sporting Goods Industry (FESI) and the GFA.
The event will be divided up into three key sections: 'The Big Picture: European Recovery Plan(s)', 'Are Textiles still the new Plastics for Europe?', and 'Regional Focus, Global Relevance'.
Bangladesh has sought trade benefits in the EU and the US. From EU, it has sought an extension to the current zero duty benefit even after its graduation to a developing country as the COVID-19 pandemic is taking a heavy toll on the south Asian nation's economy. Bangladesh has been enjoying zero duty benefits on export since 1973 under the EU's generous Everything but Arms (EBA) scheme, meant for the least developed countries (LDCs).
Officially, Bangladesh will become a developing country in 2024 and three more years will be given as a grace period for preparation. Normally, the EU does not give trade benefits under the EBA after a country's graduation. So, after 2027, Bangladesh will have to either be granted the GSP Plus or the extension of the current EBA to enjoy the zero-duty benefit to the EU, the destination for 64 per cent of Bangladesh's annual garment shipment of $34 billion.
In the US too, Bangladesh has demanded trade facilities as the government has already assigned a special committee to attract more American investment here. However, Bangladesh might not get zero duty benefit on garment export to the US, as the Trump administration gives zero duty benefit on export of garment items only to some African countries under the African Growth and Opportunity Act.
As a result, Bangladeshi exporters face 15.62 per cent duty while sending apparels to the US, the country's single largest export destination where over $ 6 billion worth of garment items are shipped a year.
In a big win for PPE manufacturers, the Directorate General of Foreign Trade (DGFT) has allowed the export of PPE suits. However, as of now DGFT has restricted the monthly export quote to 50 lakh PPE suits/medical coveralls for which the interested firms will need to apply for export license.
For quite some time, PPE manufacturers were upset with the government for not allowing them to export PPE even after lakhs of suits piling up in their units due to over production. An estimated 4.5 lakh to 5 lakh suits per day were being manufactured in India and country went on to become second largest manufacturer of PPE suits in the world within no time.
The development is significant for Punjab’s industry especially Ludhiana where from more than 110 manufacturers have got approval from the centre government laboratories like DRDO & SITRA to manufacture PPE suits.
Apparel Export Promotion Council (AEPC) has urged the Union government to expedite clearance of import consignments from China as undue delay is impacting their operations and might result in further financial losses. AEPC has complained that all import consignments are held up at Mumbai airports and seaports for a100 per cent open examination by Customs who are not processing the documents for shipments originated from China, Hong Kong and Taiwan.
While there has been no official instruction on 100 per cent checking of consignments coming from China, Chennai and some other ports began closer scrutiny of Chinese imports a few days ago. The apparel industry is dependent for several inputs that are domestically not available or as per buyers’ nomination has to be imported.
So far, such imports were subject to random and partial checks only, the Council says and emphasized that special priority should be given to manufacturer exporters who are dependent on these imports to service their export orders.
Textile Exchange has begun work on a Responsible Alpaca Standard. The draft Responsible Alpaca Standard is aligned with the organization’s existing Responsible Wool Standard and Responsible Mohair Standard. It is structured around the Textile Exchange Animal Welfare Framework that sets principles and expectations that guide and connect Textile Exchange’s Animal Welfare Standards.
The standard would verify and identify alpaca fiber produced in farming systems that respect animal welfare and the environment. Textile Exchange would apply a “strong assurance system to perform regular audits of the farms and to track the material from the farm to the final product.”
Textile Exchange noted that alpaca farming has high animal welfare potential due to a husbandry system based on extensive grazing and free ranging with animals adapted to their environment. The Responsible Alpaca Standard will be developed to ensure that this high welfare potential is realized and to provide a mechanism to verify that alpaca fiber comes from animals that have been treated responsibly and that land and biodiversity has been managed appropriately.
According to a recent Gartner survey, 33 percent of supply chain leaders either already have moved their sourcing and manufacturing activities out of China, or plan to do so by 2023.
. An exit from China would follow growing consumer sentiment against buying products made in the country. As many as 47.8 percent of consumers to a June Coresight Research survey said they either agree or strongly agree that U.S. retailers should source fewer products from China.
In light of the pandemic and the sentiments that have emerged surrounding it, 39.7 percent said they are now less willing to buy products manufactured in the so-called “world’s factory.” It would be shortsighted to blame the pandemic alone for the pressures within the chain, especially given that the trade war between the U.S. and China has lingered for two-plus years.
The US will seek a broader reset of tariffs at the World Trade Organization (WTO), in which the U.S. will be working to raise its WTO tariff ceilings.
