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India is interested in signing a free trade agreement with the European Union. India and EU had started talks for the FTA, dubbed Bilateral Trade and Investment Agreement, in 2007 and the last meeting was held in October 2014. Till now, 16 rounds of negotiations have taken place. India has agreed on many issues such as permitting 49 per cent foreign direct investment in insurance sector, 100 per cent foreign direct investment in telecom and easing of foreign investments norms in the banking sector. A model bilateral investment treaty has been approved by India.
India has expressed her willingness to conclude a balances agreement with the EU. The trade in goods between India and EU was $98.5 billion in 2014-15. India has raised the issue of data security status, Mode-4 ceilings (movement of professionals), seamless intra-corporate movement and real market access in terms of sanitary and phyto-sanitary (norms related with plants and animals), and technical barriers to trade measures adopted by the union, while Europe wants a duty cut on automobiles, wines and spirits. However, discussions were stalled amid the downturn in Europe and the EU’s focus on concluding the transatlantic trade and investment partnership agreement with the US.
Bangladesh is aiming for sustainable growth of exports of textile and leather goods. A fund has been established for the purpose. Only borrowers who keep their factories green will be eligible for loans for the import of factory related capital machinery. The $200 million fund is called ‘Green Transformation Fund’. Export based textiles and leather industries need to maintain their factories environment friendly and conform to norms. They have to follow the criteria of water use efficiency in wet processing, water conservation and management, waste management, resource efficiency and recycling, renewable energy, energy efficiency, heat and temperature management, air ventilation and circulation efficiency, work environment improvement initiatives and other fields as identified may be included from time to time.
The loan period will be from five to 10 years with a one year grace period. Interest accrued for the grace period will be repaid in equal quarterly repayment without compounding. Many Bangladesh leather goods and footwear manufacturers and exporters already use solar panels, air ventilation and heat management. A leather industrial park will have an effluent treatment plant. Manufacturers feel the process of getting funds should come under fine tuning to make the process easier and less complex.
Denmark is going to launch a strategic sector cooperation project on improving the health and safety of workers in Bangladesh by strengthening labor authorities. The three- year cooperation between the two countries aims at supporting capacity development of labor authorities focusing in particular on occupational safety and health in the readymade garment sector.
Bangladesh hopes to become a middle income country by 2021 and for that it’s necessary to improve the framework condition and productivity of the readymade garment sector in Bangladesh. The focus of the agreement is to ensure a better and more sustainable production in Bangladesh.
The cooperation also includes building two specialised hospitals for treating occupational diseases workers suffer from. Currently, 60 Danish companies are in operation in Bangladesh. Denmark has a great trade deficit with Bangladesh and it is interested in investing in renewable energy and the water sector.
Denmark feels that for the last two years there has been a strong focus on Bangladesh’s clothing industry, and rightly so, but that there are also other industries that are contributing to Bangladesh’s economy like the leather and shipbuilding industries and that have great potential.
Denmark is one of Bangladesh’s leading development partners that currently works in areas like water, sanitation, agriculture, human rights, and development sectors.
"Adding to the worry of global brands and retailers, China’s textile and apparel companies are actively seeking business opportunities in the domestic retail market. Apparel retail sales in China reached 893.6 billion yuan in 2014 (around $137.5 billion), among which 30.77 per cent were sold online (up from 14.54 per cent in 2011). Although industry reports suggest apparel retail sales in China's Tier i and Tier II cities achieved almost zero growth in 2014, partially reflecting the negative impact of retail price increase on consumers' demand. But apparel retail sales in China's Tier III and IV cities and rural areas remain robust." opines Dr Sheng Lu."
China’s rising production cost and structural changes in the textile and apparel industry remain a major concern for global fashion retailers and brands. Although few other lower-wage countries can beat China in terms of industry integration, supply chain efficiency, and reliability however, it seems that the country’s production capacity remain unparalleled. As per 2014 statistics and information collated by Dr Sheng Lu, Assistant Professor at University of Delaware quoted in his blog, textile fiber production in China exceeded 50 million tons, accounting for 54.36 per cent of world share. By 2013, as much as 64.2 per cent of the world's chemical fibers, 64.1 per cent of synthetic fibers and 26.2 per cent of cotton were produced in China. Given China's vast production capacity, it will continue to be the top apparel sourcing destination for most EU and US fashion apparel companies for many years to come. Even Vietnam, the emerging sourcing hub also remains far behind with its apparel production recorded 2.85 billion units in 2015, which was only around 10 per cent of China's production.
Policy shift in China’s textile industry
Moreover, the global supply chain flow would also see the impact of China’s production policy shifting towards more value added and technology intensive textile products. Due to this structural adjustment, total industry output, the ratio of apparel, home textiles and industrial textiles has turned from 51:29:20 in 2010 to 46.8: 28.6: 24.6 in 2014. Further to overcome the pressure of rising labor and production cost, China's textile and apparel manufacturing base is gradually moving from the east coast to the western and central part of the country . Increasingly, China’s textile and apparel players are investing more on research and development shifting its focus from production volume.
Adding to the worry of global brands and retailers, China’s textile and apparel companies are actively seeking business opportunities in the domestic retail market. Apparel retail sales in China reached 893.6 billion yuan in 2014 (around $137.5 billion), among which 30.77 per cent were sold online (up from 14.54 per cent in 2011). Although industry reports suggest apparel retail sales in China's Tier i and Tier II cities achieved almost zero growth in 2014, partially reflecting the negative impact of retail price increase on consumers' demand. But apparel retail sales in China's Tier III and IV cities and rural areas remain robust, opines Dr Sheng Lu in his blog.
Companies following the traditional business model of manufacturing and exporting are facing their most difficult time since the 2008 financial meltdown. However, a number of apparel companies are now focusing on function upgrading. However, China's textile and apparel industry has witnessed slow growth specifically, output of China's textile and apparel industry grew only 7.0 per cent between 2013-2014, recording a significant drop from 10.3 per cent between 2009-2010. Experts believe given the downward pressure on China's economy and uncertainties in the world marketplace, such a slow-growth pattern are likely to continue in the years ahead.
The Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce, Government of India is organising ‘Make in India Week’ at MMRDA grounds, Bandra-Kurla Complex, Mumbai from February 13 to 18, 2016. The initiative will be help in association with all the Export Promotion Councils.
Led by Prime Minister Narendra Modi, ‘Make in India’ was launched as major national initiative for showcasing the potential of design, innovation and sustainability across India's focus sectors through a series of highly visible outreach initiatives in Mumbai.
The week-long event will cover key sectors including textiles, defence and aerospace, automobiles and auto components, chemicals and petrochemicals, construction equipment, materials and technology, food processing, infrastructure development, IT and electronics, industrial equipment and machinery, pharmaceuticals and micro, small and medium enterprises (MSMEs).
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India should allow its currency to slide, says a Assocham study, else Indian exports will suffer at the hands of China and other emerging countries witnessing corrections in their currencies.
The RBI should use its foreign exchange reserves to defend the currency only if there is a rout situation. In the meantime, India must also ensure that its exports need to get back their competitiveness even in the midst of the global slowdown.
The major challenge is coming from China in various forms with a sizeable influence on currency valuation. Yuan devaluation will negatively impact Indian firms, which have export exposure to China in sectors such as tyres, pharmaceuticals, steel and organic chemicals textiles due to a volatile change in the terms of trade. The devaluation will make Indian exports expensive.
With a sharp reduction in the prices of primary commodities, which India ships out, export value is bound to decline in a disproportionate manner to imports since the inward shipments comprise capital, telecom and manufactured goods. In 2014-15, the trade imbalance increased by over a third from the previous year. This large trade deficit is essentially a reflection of India’s inability to penetrate the Chinese markets, a problem that seems to have aggravated over the past three years.
With a focus on human relationships ‘Interfilière Paris,’ the leading international event for intimates and swimwear fabrics and accessories, is set for to open its doors in a feminine and authentic showcase from January 23 to 25 in Paris.
The entire intimates and beachwear community will be offered an overview of market directions and trends, technological innovations and surprising encounters when the event takes place.
Even though all processes are evolving faster and faster in line with new technologies, jacquard fabrics seem to remain independent from fashions and revolutions. Joseph Marie Jacquard is familiar to all the professionals in the textile market, as the son of a Lyon silk-worker, who invented an ingenious weaving loom, operated using new perforated cards. Developed back in 1801, this semi-automatic loom earned the nickname bistanclaque because of the powerful clanging noise it made while weaving.
Yet, paradoxically, jacquard fabric has never been so cutting-edge, modern, singular and present, organisers say. It becomes lingerie with circular knits in textured or open-weave patterns; warp knits produced on flat bed machines; and 3D designs from new, electronic looms.
Jacquard is at the forefront, taking market share away from prints and bringing new energy to the swimwear market with more technical knits, inform the organisers. The show’s ‘Exception’ area will be dedicated to jacquard. In the past, The Exception exhibitions were by invitation only, but in January the space will be open to all trade show visitors.
‘Interfilière Paris’ displays a range of innovative prototypes, including shapewear in new nylon Coolmax from Willy Hermann with two-way stretch lace from Chanty, illustrating the development of finer, better looking with function.
The event will feature creativity with an eye on commercial reality from Iluna, a range of matching lace, embroidery and flocking designed for different end-uses and occasions.
Winter sports are facing a challenge due to the late winter last year. Just ahead of the next edition of Ispo Munich from January, 24-27, 2016, the season still causes quite a headache to the ski-and snowboard market. Due to the lack of snow and the ongoing warm temperatures, retailers are complaining about full stock of snow wear and winter sports equipment. Many winter assortments have to be sold on sale.
However, Ispo Munich is prepared for the entire sports community. Over 2,500 exhibitors are expected at Ispo Munich 2016. A new exhibit hall segmentation aims to offer new opportunities and benefits to action sports exhibitors. By moving the exhibits into the halls B5, B6 and A6 the segment becomes more concentrated and also has a dedicated entrance on the east side of the exhibit center at its disposal for unique and segment-specific events.
As plans go, the current Athleisure trend will be presented in the Ispo Vision area at hall B1, where brands like Bogner, Kjus, Peak Performance, New Balance and Sportalm are increasingly acknowledging this trend. Also new developments in Wearables will be shown at the show, e.g. offering features from running shoe soles that analyze running style and provide feedback. This fits the still growing “Health & Fitness” market and its corresponding area at Ispo. This year, close to 140 exhibitors from the fitness and health industry will present their innovations in the newly expanded hall B4.
Botswana textile exports to the United States under the African Growth and Opportunities Act (AGOA) were down 11 per cent at $7.6 million by November 2015, this was revealed in the latest figures released by the country’s trade department. The figures indicate local textile exports to the US have again moved south, after a recovery in 2014, when it had jumped 61 per cent to touch $9.5 million at current rates.
The reason for the dip is strong competition from China which depressed sales last year. The festive season exodus of workers also contributed to the slump. Moreover, the biggest problem Botswana is facing today is the non availability of trained people. However, the industry is hopeful about a positive outlook in 2016, and discussions with the trade and industry ministry are on for possible remedial measures.
The Trans-Pacific Partnership (TPP), a deal that has been touted as a foundation for “21st century trade” by US President Barack Obama could allow millions of workers in Vietnam’s export-orientated factories, which are driving impressive economic growth, to form independent trade unions. The TPP seeks to liberalise commerce in some 40 per cent of the global economy, if ratified would oblige signatories including the US, Japan, Canada and Vietnam, to allow independent trade unions.
But labour activist like Do Thi Minh Hanh say the one-party state is a long way from concretely committing to that kind of change. Hanh who was released from prison in 2014 but lives under constant police surveillance says Vietnam still wants to maintain its monopoly on trade unions. Currently, all unions are part of the Vietnam Confederation of Labour, which is older than the ruling communist party.
The lack of meaningful representation is counterproductive as it leads to more wildcat strikes, said labour activist Nguyen Ngoc Nhu Quynh. Quynh is also not optimistic about the TPP as no one can ensure that the trade unions will be independent and will listen to workers’ concerns. The TPP contains a controversial investor-state dispute settlement mechanism which allows companies to take governments to court if they feel their rights are violated.
Vietnam’s low-wage economy relies heavily on exports, is projected to see the biggest percentage boost to the economy of any country in the TPP — about 10 per cent by 2030, mostly due to textiles and apparel, according to World Bank figures.
Last year, the economy grew at 6.68 per cent, its fastest pace in five years, partially thanks to record foreign investment. But in order to attract new high-quality TPP-linked investment, the communist country, which has the lowest GDP per capita and competitiveness ranking of the group, will have to introduce wide-ranging reforms.
