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For all its bonhomie with China, Pakistan has no proper free trade agreement. There is one but Pakistan feels it needs to be revised. Pakistan’s exporters have to struggle to make their presence felt in China because their competitors enjoy zero-rated tax.
Even India in comparison to Pakistan has better trade relations with China. Pakistan exporters lose their competitive edge because of Asean which has a very strong FTA with China. Its products are taxed at a lower rate than Pakistan’s. Therefore, a huge chunk of Pakistan’s textile exporters are forced to export raw material to Asean member countries like Vietnam, which exports finished goods to China. Exports through this channel are less costly and competitive in Chinese markets.
Instead of exporting raw material in the form of cotton and yarn, Pakistan wants to export finished and value-added goods. Pakistan ranks 16 on the list of China’s export partners while it stands at 61 in its import partners. Even countries like Kenya are ahead of Pakistan in the exporters’ list. Pakistan’s imports from China are $18 billion while exports are a meager two billion dollars. This tilts the balance in favor of China by a massive margin.
From January to June 2018, the EU’s exports of textile and clothing products grew 15.12 per cent year on year. Of all textile and clothing products, earnings from readymade garments were up 16.26 per cent while earnings from other textile products were up 14 per cent.
Italy was the top exporter from the EU to the US. Italy’s earnings from exports of readymade garments to the US were up 19.18 per cent year on year. The country had a 50 per cent share in total US imports from the EU. Italy clearly got advantage of its luxury fashion products which drew US buyers’ attention all through the period. Italy’s earnings from other textile products in the US market such as yarns, fabrics and fiber were up 16.77 per cent.
Portugal’s earnings from readymade garment exports to the US grew 22.80 per cent on a year on basis. France’s earnings from the US noted a double-digit surge of 14.67 per cent year on year. Earnings for Romania, an underrated export source, from apparel exports to the US registered a 14 per cent yearly growth. If the US and Europe agree on eliminating tariffs between the two regions, imports from the EU would attract no duties, making European apparels cheaper for US buyers.
The Union textiles ministry has approved a proposal to include the Indian Standard Cotton Bales Specification IS 12171:201 3, under Mandatory Conformity Assessment Scheme under Bureau of Indian Standards (BIS) Act, 2016. Accordingly, a draft Cotton Bales (Quality Control) Order, 2018 has been proposed which includes confirmation of cotton bales to IS 12171:2013 and bearing the standard mark under a licence from the Bureau of Indian Standards as per Scheme-II of Schedule II of BIS Conformity Assessment Regulations, 2018.
The Bureau of Indian Standards shall be the certifying and enforcing authority along with an officer who will hold the rank of General Manager, District Industries Center in Department of Industries of the state government, who shall be the enforcing authority. Any person who contravenes the provisions shall be punishable under the provisions of the Bureau of Indian Standards Act, 2016.
Iteca Exhibitions the International Exhibition Company and recently established Uzbekistan Textile and Garment Industries Association had, in April 2018, signed an MoU for joint organisation of 1st International Uzbek Textile and Fashion Industries Exhibition-UzTextile Expo in Tashkent from September 5 to 7, 2018.
The International Central Asian Exhibition CAITME 2018 will also be organised on the same dates with the new project. It will host the German National Pavilion, Spanish National Pavilion, large expositions of Italian, Turkish, Chinese, Indian, Swiss South Korean textile machinery manufacturers, totalling over 400 well-known companies and brands.
The vast business program will also include Tashkent International Textile Conference dedicated to development of the textile industry, the roundtables, B2B and B2G sessions, exhibitors’ presentations, etc. The Uzbekistan Textile and Garment Industries Association will contribute to the joint event through a special governmental decision and state support measures.
The partnership will attract professional buyers of environmentally friendly Made in Uzbekistan textile products, foreign investments, new technologies to Uzbekistan, as well as will bring up trade relations to a new level. The event will demonstrate the latest achievements and innovations of the textile business and fashion industry of Uzbek and world leading manufacturers along the entire production chain - from yarn to ready-made clothing.
As per experts, the ongoing drought in wool growing regions of Australia is likely to hit supply and prices. Figures from the Bureau of Meteorology indicate the second-driest autumn in Southern Australia with rainfall 57mm (2.24in) below average. In July, less than 10mm of rain was recorded in New South Wales, prime farming territory, and ongoing dry conditions are forecast to continue.
This week, 23 per cent of New South Wales was classed as being in intense drought, while the rest was in drought or drought affected. The state produces around 25 per cent of Australia’s agricultural output. Other parts of Australia also suffered, with over half of Queensland being in drought and some areas of Victoria and South Australia also seeing dry conditions.
As per All Pakistan Textile Mills Association (APTMA), it contributes more than 50 per cent to the country's exports, i.e. over $11 billion out total annual exports of $23 billion as on 2017-18. APTMA is the premier textile industry association representing members from corporate sector and manufacturing and export of textile and clothing products
The spokesperson stated the textile industry has a potential of adding another $24 billion to exports on a fast track subject to positive policy initiatives. Various non-textile exports also pass through the hands of APTMA members. He stressed the burgeoning gap of trade deficit can only be met through devising an export-led growth policy. Therefore, those advocating for the support of domestic industry are not well wishers of the country as well as the government, as restoration of competitiveness of export-led industry is a must to regain the lost share in the international marketplace.
Already, the anti-export approach witnessed a decline of country's exports from $35 billion to $20 billion in 2016-17. Unfortunately, certain vested interests have started campaign against exporting industry, generating forex, direct and indirect employment besides backward and forward linkages.
Turkey imported 1,100 circular knitting machines in the first six months of 2018. Compared to last year, volume fell from 1,132 circular knitting machines and the value also dropped. The decline in imports was driven by overvaluation of foreign exchange rates and high interest rates.
China tops the list of the countries that exported circular knitting machines to Turkey (391 machines). The cost of these machines was valued at 11.4 million dollars. Last year, China stood second with 270 circular knitting machines at 8.4 million dollars.
Germany holds the second position with 290 circular knitting machines worth 21.5 million dollars. With 369 machines at 26.2 million dollars in 2017, Germany witnessed drops in both volume and value in the current fiscal.
Countries like Italy, Japan, Taiwan, South Korea saw major decline in machinery exports to Turkey. However, against these, the UK exported 165 circular knitting machines valued at 0.71 million dollars while last year the volume was just eleven machines worth 0.49 million dollars.
Turkey is one of the world's leading manufacturers of knitted fabrics. As Turkey’s textile exports grow, the country’s textile manufacturing companies will have to upgrade their machinery, parts and components, as well as the manufacturing processes.
Reliance Industries (RIL), as a part of RIL’s Hub Excellence Partners (HEP) Program, has partnered Arvind to manufacture co-branded R|Elan™ high performance fabrics. As a part of this partnership, Arvind will provide a high standard quality fabric and RIL will ensure timely delivery of R|Elan™ high-quality performance technologies to Arvind.
The co-branding effort re-affirms the brand’s vision to offer aesthetically pleasing, technologically advanced and, sustainable products. The R|Elan™ co-branding exercise will bolster RIL’s foothold in Rs 225,000- 250,000 crore Indian apparel industry having almost equal share of menswear and womenswear. RIL is also in the process of adopting a B-2-B-2-C approach under its Hub Excellence Programme (HEP) in which it is set to forge partnerships with textile manufacturers to provide technology for the manufacture of high performance fabrics under RElan.
RIL has partnered 32 textile players that are equipped to produce New Age fabrics using R|Elan™ technologies, it said.
American sportswear and apparel company Nike doesn’t have any plans to sign an agreement with Arnasoy Gold Tex, an Uzbek textile company, for joint production of sportswear. The Uzbek textile company had earlier announced plans to sign contracts with the world famous brands Nike and Adidas for production of sportswear. Arnasoy Gold Tex’s factory, to be launched in early 2019, will feature latest textile equipment and quality standard of ISO 9001. The company also claims to have won the support and recommendations from such world fashion houses as Zara Home Collection and Tac Home, which will allegedly allow them to manufacture products under the corresponding brands in the territory of Uzbekistan.
In March 2018, Uzbek officials had announced plans to attract international sports goods manufacturers to the new Sport Free Economic Zone (FEZ) in Tashkent region. Such renowned brands as Adidas, Reebok, Nike, Li Ning, Eleiko, Janssen-Fritsen, Gymnova, etc. had to be invited to the FEZ.
Invista has commenced the construction of its latest 300,000-ton adiponitrile (ADN) plant in China to satisfy the strong, local demand for the nylon 6,6 intermediate chemical. The plant, being built with an investment of about US$1 billion, will be completed by 2020 and production will begin in 2023.
Invista has been meeting customers and industry participants to develop a collaborative strategy focused on meeting China’s local needs for ADN, which is used to make nylon polymer, fibres and other specialty materials such as hexamethylene diisocyanate (HDI) for coatings.
Over the past five years, Invista has invested more than $600 million in China to support the nylon market, including a 215,000-tonne hexamethylenediamine (HMD) plant and a 150,000-tonne polymer plant, at the Shanghai Chemical Industry Park (SCIP). The company has also created multiple-generation improvements to the technology over the decades, recently setting production records with the deployment of its latest technology in the US.
