South Korea is planning to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The country had initially not joined the agreement as its accession could lead to an increase in trade deficit with Japan. Furthermore, the country has already signed bilateral FTAs with nine out of the 11 countries except for Japan and Mexico.

However, increasing possibility of United States’ return to the agreement raised concern over South Korea’s alienation in trade. The government conducted studies on economic advantages and disadvantages and the agreement’s possible impact on the local job market, industries, etc. It then reached a conclusion that accession to the CPTPP would be highly beneficial and decided to join the agreement.

The South Korean government is mulling over when to sign it as external uncertainties are growing, including the ongoing trade disputes between the US and China, US economic sanctions on Iran and Turkey, and North Korean denuclearisation.

A first-of-its-kind plant in Sri Lanka’s Horana export processing zone is poised to transform post-consumer plastic bottles into polyester yarn. The facility is owned by BPPL Holdings, a manufacturer of brooms, brushes and mops. It features cutting-edge spinning and texturing machinery from Europe that will make it a game changer for the industry.

The 13,000 sq. mt. plant will be one of two in the world to create yarn directly from polyethylene terephthalate (PET) flakes, a tack that bypasses the polymerization process of converting flakes to chips and then yarn. The new plant, which boasts a capacity of 960 tons of yarn per year, will be able to supply 15 per cent of the polyester yarn required by Sri Lanka’s textile and apparel sectors. Ten plastic bottles provide enough yarn to produce a single T-shirt. It also has dope-dyeing capabilities to create colored yarn as part of the extrusion process.

By sourcing polyester yarn from Sri Lanka, fabric manufacturers can significantly reduce lead times and also lower inventory costs. To ensure its yarn meets strict international standards—and appeal to potential clients abroad—BPPL abides by the Global Recycled Standard, Restricted Substances Lists and Oeko-Tex Standard 100.

The sharp rise in imports from Bangladesh has made Indian industry apprehensive. India’s agreement with Bangladesh doesn’t include the minimum value addition criterion. This loophole can be used for imports of Chinese man-made fiber based garments through Bangladesh.

Over the last 11 months, Bangladesh’s garment exports to India increased by 113 per cent. Add to this footwear, fish, beverages etc and India’s imports from Bangladesh increased by 30 per cent since July 2017.

The introduction of GST in July 2017 led to the withdrawal of 12 per cent countervailing duty (CVD) on textiles. Though Bangladesh was not the only beneficiary, this came as an advantage for Bangladesh, which is the world’s second largest exporter of readymade garments.

Bangladesh had a distinct cost advantage vis-a-vis Indian imports in 49 garment items. GST related benefits should help Bangladesh grab a higher share of Indian imports by replacing other destinations.

India offers duty-free and quota-free entry to Bangladesh’s goods under the South Asian Free Trade Area agreement in 2011. Further Bangladesh’s competitive edge should increase with the recent hiking of import duty on 328 textile products, which is not applicable to Bangladesh.

This year might prove to be a landmark in bilateral trade relations. Bangladesh’s exports to India will close near $900 million.

Huntsman Textile Effects has appointed Rajiv Banavali its new Global Vice President, Research and Technology,. Banavali will join the company’s management as a part of its global leadership team and will report directly to Rohit Aggarwal, President, Textile Effects.

A Ph.D in Organic Chemistry from the University of Misssouri, Banavali was previously employed with Honeywell International where he held several research and development leadership roles including his most recent, as Vice President, Chief Technology Officer in its Advanced Materials division. He has over 20 years’ experience in development and execution of R&D strategies and the advancement of innovation platforms for both product and process technology roadmaps.

Banavali has successfully led large, global research organisations in the development and commercialisation of technologies in specialty chemicals, both at Honeywell and at his previous employer, Rohm & Haas. He will relocate from New Jersey to Singapore.

European textile groups are blaming the REACH regulation for the relocation of the European textile dye sector to Asia where supply chains are opaque, and pollution still rife. The relocation is not only causing loss of European jobs and innovations but also creating chemical monopolies. Recent findings by several leading European textile industry bodies show, the regulation is having the exact opposite impact of what it was originally designed to do. The potential impact of hazardous textile chemicals on both human health and the environment is being exacerbated by sourcing more from Asia.

Textile manufacturers have already warned the European Automobile Manufacturers’ Association (ACEA) that the present global consumption of textile dyes and pigments cannot currently be replaced in sufficient quantities due to shutdowns in Asia and REACH is said to be aggravating the situation. This is important given that one car alone contains an average 23 kg of dyed and finished textiles – and illustrates how the current lack of raw materials and spiraling textile chemical prices can have knock-on effects to other important EU industry sectors dependent on these products.

Textile units in India have to use digital signatures for submitting Unique Identification Number (UID) applications and for making Joint Inspection Team verification (JIT) requests. The lending agency will fill in details of term loan information in i-TUFS and upload the final sanction order with the digital signature of the authorized signatory of the lending agency.

The lending agency will also verify the application against loan documents available with them and upload the copy of the final loan sanction order and sign off the verification with the digital signature of the authorized official of the lending agency.

Technology Upgradation Fund Scheme (TUFS) is a scheme aimed at creating a modern and vibrant textile industry in India. Under the Amended Technology Upgradation Fund Scheme (ATUFS), there is a provision for a one-time capital subsidy for eligible benchmarked machinery at the rate of 15 per cent for garmenting and technical textiles segments with a cap of Rs 30 crores and at a rate of ten per cent for weaving, processing, jute, silk and handloom segments with a cap of Rs 20 crores.

Beneficiary units and lending agencies have been asked to make the necessary arrangements so that they can apply with digital signatures, on or before August 30, 2018.

Cobalt Fashion, a JV between the Fung Group and South Ocean Knitters, has unveiled its new CS Innovation Lab at its headquarters in Hong Kong. The innovation lab is a collaboration between Cobalt and innovation partner Shima Seiki, a leading Japanese computerised flat knitting machinery manufacturer. The lab allows the two partners to work together on areas including advancing 3D and virtual design capabilities and driving efficiency gains in the design-to-production part of the supply chain.

The partnership leverages Cobalt’s market intelligence, sourcing capabilities and extensive knowledge in knitwear and yarn along with Shima Seiki’s advanced knitting technology. The lab will carry out highly specialised R&D and develop innovative technologies to deliver quicker, more accurate solutions that address fast-changing market trends and needs, creating a win-win situation for everyone along the supply chain. Cobalt’s design hub and the state-of-the-art Innovation Lab will service all the divisions under Cobalt Fashion. The launch coincides with the unveiling of Cobalt Centre, the company’s newly renovated office space which includes both the Innovation Lab, as well as Design Hub.

Great Place to Work (GPTW), a global research, consulting and training consultancy has listed Coats, world’s leading industrial thread manufacturer and a major player in the Americas textile crafts market, among the best 80 companies to work for in Brazil.

The company was ranked on the basis of the level of trust employees had in their organisation. This was measured using two methods. First, the culture of the organisation was surveyed through a Trust Index, which was modeled on five dimensions found in the employee view of a great workplace, including values, opportunities and wellbeing. Second, the workplace was evaluated through a Culture Audit, which looks at nine areas from the management definition of a great workplace, including development, inspiration and celebration. Coats had a trust index score of 90 per cent.

Coats runs an annual Employee Engagement Survey to measure the engagement of all its employees across the world. In the last three years employee engagement in Brazil has increased by 22 per cent to 80 per cent.

Fashion retailer C&A has launched a new range of sustainable jeans designed in partnership with Fashion for Good. These jeans meet the strict environmental requirements of the Cradle to Cradle (C2C) Certified Gold level standard, which evaluates garments for human and environmental health, recyclability or biodegradability, energy and water requirements and social fairness.

The C&A denim range is accompanied by a toolkit, which details solutions on how to overcome the design of complex apparel such as jeans to reach full product certification at the C2C Gold level. An Assessed Materials Almanac – also a part of the toolkit – specifies the materials and ingredients currently assessed for C2C certification with regards to materials used in the production of the jeans.

The brand had to overcome many technical challenges to develop the new C2C certified jeans. This included maintaining the physical flexibility of the garment, which was addressed via new advances in elastane production as well as a complete rethink of how to produce the lining and sewing threads.

The weakening rupee against the dollar is expected to have a positive impact on the textile and clothing sector. As Sanjay K. Jain, Chairman, Confederation of Indian Textile Industry (CITI), noted, yarn exports to China increased 24 per cent between April and June. However, the Chinese yuan also weakened in the period and hence, Indian exports were affected.

As per Chandrima Chatterjee, Adviser, Apparel Export Promotion Council (AEPC), the weakening of the rupee this year compared to last fiscal will benefit garment exporters. The Centre is expected to reimburse embedded taxes and raise Reimbursement of State Levies, thus giving garment exports a push.

Apparel exports, which were almost stagnant for the last couple of years, are expected to do better. This will provide the garment producers cushion against increasing raw material prices. However, these producers will not benefit entirely as buyers are likely to demand rate cuts even in existing orders.