China is looking into the possibility of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This is a Pacific-nation trade deal. Ironically, CPTPP started off as the TPP, which was originally meant to be a challenge to China’s trade practices. It excluded China, but then got rechristened after the US pulled out of the deal. The TPP was previously negotiated by the US with Japan, Canada, Mexico, Australia and seven other Pacific countries. It was touted at the time as an alternative framework to the World Trade Organization amid criticisms that the current trade enforcement regime was outdated and failed to address issues related to services, intellectual property and the digital economy properly.

China’s change of attitude has possibly been prompted by the new trade deal reached among the US, Canada and Mexico, which contains provisions aimed at excluding China from future trade deals. Should the US form a similar pact with the CPTPP, whose guiding force is Japan, it could threaten Chinese market access to trading partners.

China, like other emerging countries, follows a primary strategy of promoting economic and social development. The growing spending power of consumers in developing countries injects vitality into the global market.

Synthetic and Rayon Export Promotion Council (SRTEPC) has urged the central government to incentivise the textile sector to raise its competitiveness. The council is worried that the high crude oil prices along with US sanctions on import of fibers, yarns and other textile products from China because could lead to dumping of Chinese textile goods in India.

SRTEPC believes that US sanctions on Chinese fibers, yarns and other textile products will make these items highly prone to their dumping in India. China government is considering to further increase subsidies on textile exports, which may lead to escalation of imports of textile goods in India.

Textile industry leaders have therefore, urged the central government to increase Merchandise Exports from India scheme (MEIS) to reward rates under Foreign Trade Policy of India to 5 per cent on all MMF textile tariff lines.

Kingpins Amsterdam will be held on October 24 and 25, 2018. This is a show for denim and sportswear fabric mills. It features some of the best and most innovative members of the denim supply chain. Ranging from fiber to technology and machinery makers, mills and manufacturers, trim suppliers and laundries, exhibitors at Kingpins Amsterdam will be showing their spring/summer 2020 collections and latest innovations.

A seminar will present Levi Strauss, which 100 years ago created its first garment for women, Freedom-Alls, a one-piece tunic over balloon pants. Since then Levi’s has pioneered the first women’s blue jean and a variety of other denim creations for women. The seminar will review 100 years of Levi’s women’s garments and explore stories of the women who wore them.

Another seminar will explore the history of denim branding and its evolution. There will be a curated selection of garments developed by a trend forecaster and consultant. Kingpins Transformers will be held on October 23. This is a summit that will feature members of the denim supply chain who are disrupting and rewriting the rules for everything from how fibers and dye fabrics are made, to how suppliers are inspected, how waste disposal is done and how garments can be made safer for human bodies and the planet.

The National Jute Manufacturers Corporation will cease operations. Suffering losses for years, NJMC primarily used to manufacture hessian jute bags used for the packaging food grains. Over the years, demand for hessian bags has eroded and it was found no longer commercially viable to run the company. The company was incorporated in 1980 and is based in Kolkata.

The proposal will aid the center to shutter loss-making companies and making a sure release of valuable assets for productive use, or for generating financial resources for development. NJMC’s subsidiary Birds Jute and Exporters Ltd (BJEL) will also be shut.

Much like NJMC, BJEL has no staff and as the factory is not in operation these closures do not affect any individual. Sale of fixed assets and current assets will be done in line with the guidelines of Department of Public Enterprises (DPE) and the proceeds from the sale of assets, after handling liabilities, will be submitted to the Consolidated Fund of India.

A land management agency will be given the charge for the disposal of assets. It will be authorised to conduct a complete verification of the assets before undertaking their disposal under DPE guidelines.

Gerber Technology, the leading software solution provider to the apparel industry has launched a fashion platform. The new package includes software, equipment, and consulting to set up a purchase-activated fashion model with digitally integrated e-commerce and on-demand design to print, cut, and sew a micro-factory operation..

The new platform re-defines the just-in-time manufacturing concept with the production happening according to the demand in the market, eliminating the extra cost involved in inventory. Also this allows the product to be sold at retail price without any heavy clearance discounting. All this is possible with the help of OnPoint manufacturing that has expertise in digitizing process and on demand work flow.

This also includes an e-commerce virtual try-on application by Avametric, along with other Gerber Digital tools like YuniquePLM, a cloud based product lifecycle management software; AccuMark, pattern design, grading, marker making and production planning software and AccuMark 3D.

Data will be directly transmitted to the micro factory environment, AccuMark will deliver the optimised marker files to the digital printer to print. These finished printed textiles will be continuously fed to a Gerber cutter Z1 with Contour Vision. Then the combination of robotic and lean loop sewing operations will be deployed, depending upon apparel finishing requirements.

India is under some pressure to sign the Regional Comprehensive Economic Partnership (RCEP) pact. The country has issues in goods and services. It is of the view that there are many issues that are yet to be resolved, including the extent of commitment India would take in opening up its goods market and what it would get from other members in terms of increase in mobility of professionals.

India does not want to be pushed into taking up commitments it might not be comfortable with and get nothing worthwhile in services. This is a pact India is negotiating with 15 countries, including China. Other members of the RCEP include Japan, South Korea, Australia and New Zealand. Once concluded, the RCEP is likely to result in the largest free trade bloc in the world covering about 3.5 billion people and 30 per cent of the world’s Gross Domestic Product.

Giving substantial concessions to members, especially China, could lead to protests from a large section of the Indian industry which fears competition from cheap imports. The package of deliverables, tentatively agreed to by trade ministers in their last meeting in August in Singapore, comprises four components — markets for goods, services, investment and intellectual property rights.

The EU had recently warned Cambodia that it will lose duty-free access to the world’s biggest market within 12 months for its “blatant disregard” of human and labor rights standards attached to trade preferences it is granted as a developing nation. The Union has warned that unless the government takes significant actions to redress an autocratic backslide including reinstating the country’s banned opposition in the next six months; the “Everything But Arms” (EBA) preferences will be withdrawn.

The country’s biggest industry, garment manufacturing in Cambodia accounts for about 40 per cent of the gross domestic product and some 800,000 jobs, while the EU is by far its largest export market, absorbing almost $6 billion worth of goods last year according to its own figures. The US has also initiated concrete punitive action against Hun Sen’s regime, sanctioning one of his top commanders in June. Many more members of his inner circle could also be tried under the Cambodia Democracy Act of 2018.

US apparel imports from sub-Saharan countries increased 17.97 per cent year-to-date through July compared to the same period in 2017. Kenya’s shipments to the US rose 16.44 per cent and Lesotho’s shipments increased 8.05 per cent. Madagascar’s shipments were up 27.74 per cent and Morocco’s rose 3.65 per cent. On a smaller scale, Tanzania’s shipments rose 1.58 per cent.

Companies are trying to develop broader sourcing strategies and moving production and supply chains out of China into other locations. And Africa is emerging as a viable sourcing option. While African manufacturing is still nascent in many ways, there are clusters in various countries that have begun to establish themselves.

In terms of size and experience, Egypt leads the way as a continental supplier, with US apparel imports from the North African country increasing 16.33 per cent. In potential and pace of growth, Ethiopia is the star, with imports by the United States growing 106.69 per cent.

Ethiopia in the past decade has implemented an aggressive investment promotion program targeting Asian investors in apparel and textiles. This promotion has been matched with concurrent development of large industrial parks with requisite infrastructure for textile and apparel production, along with strong policy support to develop a competitive cotton based textile industry.

In spite of the tariffs, US retailers continue to import Chinese goods to meet consumer demand. Imports at the nation’s major retail container ports are hitting their stride and are expected to surpass the record levels notched last year. One reason is that retailers cannot quickly or easily change their sourcing. It is a different matter, though, that tariffs will eventually mean higher prices for American consumers.

Cargo arriving at the major US ports in August was up 3.4 per cent over last year. September imports are expected to rise 2.7 per cent and October will see a 4.3 per cent jump. Cargo arrivals are expected to be up 2.3 per cent in November, and December seeing a four per cent uptick.

The first half of 2018 saw cargo-container traffic up 5.1 per cent over the first half of 2017, while import cargo volume for all of 2018 is predicted to increase 4.4 per cent over last year. Last month, the US imposed an additional ten per cent tariff on imports from China. Those tariffs could increase to 25 per cent at the beginning of the year. The third round of tariffs is now in place, and further tariffs have been threatened.

Bangladesh and Sri Lanka will collaborate in boosting apparel exports to Europe. One possible area of cooperation is export of some products to the EU through Sri Lanka for better prices. Another is value addition in export products. Now Bangladesh’s exporters use Singapore port to export goods and it takes 20 to 22 days but if they use Colombo port the lead time would be reduced by three or four days.

Relations between Bangladesh and Sri Lanka are improving rapidly. Their bilateral trade is valued at $142 million and has the potential to be boosted. Even though goods are traded at a significant level, emphasis will be given to increase the trade volume and further diversify the product range benefitting both countries. Bangladesh is also a country that exports apparel to the global market but has not been able to secure GSP Plus that Sri Lanka currently enjoys. Hence, Sri Lanka is able to export apparel to the European market at cheaper rates than Bangladesh can.

Sri Lanka imports from Bangladesh pharmaceutical products, electrical machinery and equipment, apparel and clothing accessories, textile fibers, chemicals, cellular phones and bicycle parts. Sri Lanka exports to Bangladesh textiles and textile articles, enzymes, chemicals, minerals, plastics, rubber products, paper products and tea.