The European Commission has launched an in-depth investigation into whether Nike unfairly benefitted from tax rulings in the Netherlands.The Commission will investigate carefully the tax treatment of Nike in the Netherlands, to assess whether it is in line with EU State aid rules.

The Dutch government determined, over five rulings made from 2006 to 2015, that the royalty would be calculated based on a limited operating margin that was based on sales in the country. The Commission said those rulings “may not reflect economic reality” and that the tax breaks Nike receives in the Netherlands are higher than what independent companies would normally negotiate based on market terms in harmony with the arm’s length principle.

The Netherlands has already agreed to an update of its tax code. The Commission revealed that the Dutch government has announced plans to reform and tighten requirements for tax rulings on international structures—especially if the ruling is meant to allow that structure to avoid EU or Dutch taxes.

The Commission has made a number of high-profile rulings on tax codes in recent years, often going after American companies like Apple, Starbucks and McDonalds. In 2017, for one, the Commission found that Amazon had skirted Irish tax laws, and, in turn, it recovered 282.7 million euros ($325.25 million) from the company.

India’s factory output growth crashed to its slowest in 17 months in November 2018. The previous low was in June 2017. Manufacturing production shrank 0.4 per cent while electricity and mining output grew 5.1 per cent and 2.7 per cent respectively. Items that recorded the steepest contraction included television sets, bodies of trucks and trailers, and raw materials for drugs.

The Indian economy is headed for a slowdown in the second half of the year ending March 31. With the economy already recording a 7.6 per cent GDP growth in the first half of the current fiscal, this implies growth is likely to slow at around 6.8 per cent in the second half.

While the adverse base and post-festive season winding down of momentum along with fewer working days had been expected to lower index of industrial production (IIP) growth, the magnitude of the correction has been sharper than expected.

Tighter domestic financing conditions may also have played a part. Going forward, incrementally improving liquidity, normalization post festive-related disruptions and election-related spending could get growth supportive enabling higher prints versus today’s IIP number. However second half average growth will be lower than first half growth. GDP growth in the third and fourth quarters is expected to be well below seven per cent.

London Textile Fair was held on January 9 and 10, 2019. London Textile Fair is the UK's premier platform for fashion fabrics, clothing accessories, print studios and vintage garments. It provides manufacturers and their agents with the opportunity to showcase their products to the most influential British buyers and designers.

There were more than 500 exhibitors, up from 472 last season. Most came from Europe – among them were textile manufacturers from Turkey, Italy, Portugal and the UK. There is a strong textile market in Turkey and a strong garment manufacturing market. Because of the small distances people choose to do both in the same place to save transport costs, and lots of mills now are also manufacturers.

Buyers from several big-name brands and retailers attended, including River Island, Karen Millen, Oasis, Ted Baker, Jaeger, John Lewis, Boden, Mr Porter and Gieves & Hawkes. Demand for sustainable fabrics was one of the biggest trends at the show. Interest in sustainable alternatives was at an all-time high. There was a surge in interest for recycled fabrics and for BCI cotton. Teal was a trend for this season.

The next edition of the London Textile Fair will be on July 16 to 17, 2019.

India’s cotton crop this year may be the lowest in a decade. Deficient rainfall is the main reason. There has been no scope for third and fourth pickings and hence farmers have uprooted the plant. In fact, farmers have been advised to uproot cotton plants by the end of December 2018 to give room for rabi crops such as pulses and to ensure against pink bollworms.

Plant sizes were not more than four feet in October when the average is about five feet or six feet. Currently, there is no cotton plant on the ground in Gujarat. Those with irrigation have already planted pulses. Seed cotton (kapas) prices in India are ruling above the minimum support price, which is positive for farmers. Other factors that influence cotton planting in the next season is the excess global availability of palm and soybean oils. This situation may not encourage Indian cotton farmers to divert to other options in the next season.

Yarn demand is not that high, which may influence cotton pricing and post-harvest sectors. India’s 2010-11 crop was 34.5 million bales and the highest since that time has been 40.2 million bales in the 2013-14 crop year. Wide range data fluctuations affect the spinning sector, particularly in making decisions about cotton purchasing and stocking.

Bharat Gandhi, Chairman, The Federation of Indian Art Silk Weaving Industry has averred that the phenomenal rise in the import of silk fabrics from Vietnam in last two years has deteriorated the conditions of silk fabric manufacturers hailing from Indian cities of Bhagalpur, Varanasi, Bengaluru, Surat and some parts of Tamil Nadu. Therefore, the Federation has urged the government to levy 10 per cent duty on the import of silk fabrics from Vietnam so as to create a little more favourable scenario for Indian domestic market.

Import from Vietnam has increased more than two-fold from two lakh sq. mt. in 2015-16 to 5 lakh sq. mt. in 2016-17. Currently, import of silk fabrics from Vietnam attracts zero per cent duty, which makes India’s silk fabrics expensive. This has significantly affected the domestic market of India. Also, several Chinese manufacturers have, lately, started their factories in Vietnam and, most importantly, dumped Indian silk fabrics.

The first-ever Indian Standard (IS ) on bullet resistant jacket for protection against small arms and ammunition for defence, paramilitary and police forces was recently approved by the Bureau of Indian Standards (BIS). These Bullet Proof Jackets (BPJ): IS17051:2018 prescribes minimum requirements against small arms and their evaluation procedures.

The standard was approved after a draft finalised by the Textiles Protective Clothing Sectional Committee was authorised by the Textile Divisional Council. It was formed keeping in mind the Indian needs. Until now, the bullet proof jackets and helmets provided to the Indian security forces were based on the NIJ III+ Standard, which refers to ballistic resistance of a body armour.

The main challenge was: reducing the weight of the jacket from 10.5 kg to 6 kg matching the scientific criteria. Moreover Indian Standard for bullet resistant jackets is expected to accelerate the procurement process by the user agencies and in testing of materials. It is mandatory that all standards should be adopted in all procurement orders of the security forces.

Overabundance of fast fashion has created an environmental and social justice crisis. Fast fashion is readily available, inexpensively made clothing. Increased consumption patterns have created millions of tons of textile waste in landfills and unregulated settings.

Negative consequences at each step of the fast-fashion supply chain have created a global environmental justice dilemma. While fast fashion offers consumers an opportunity to buy more clothes for less, those who work in or live near textile manufacturing facilities bear a disproportionate burden of environmental health hazards.

From the growth of water-intensive cotton, to the release of untreated dyes into local water sources, to low wages and poor working conditions, the environmental and social costs involved are widespread. Potential solutions include sustainable fibers, corporate sustainability, trade policy and the role of the consumer.

In North America, the fast fashion market is likely to face tremendous growth in the coming years owing to swiftly increasing number of fast fashion retailers in the region. The European market is pegged to foster high revenue in future owing to growing adoption of new fashion trends. In India, China, and Japan, the market is poised to expand further in the coming years due to high purchasing capacity and penetration of major fast fashion retailers in the region.

On an average, Americans throw away no less than 10 clothing pieces a year. Not having proper awareness on how to take care of the clothing they buy, they opt to simply purchase more instead. One of the main causes of the dissatisfaction and eventual abandonment of apparel among Americans is a dislike of finicky fabrics that may require more specific and labor-intensive care routines. Chief among them is silk, followed by cashmere, suede, leather and sequined clothing.

Consumers over-launder their garments, especially those made of quality fabrics. Often they never bother to read the care instructions that come attached to their garments. Suits, dress shirts, blazers and sport coats are said to be the hardest to maintain. Sweaters and dresses follow on the list, along with boots, shoes, denim and outerwear.

Storage can be an issue in keeping clothing in top shape. Many are unaware that sweaters should not be hanged. Understanding the different fabrics and the best ways to clean them can make laundering clothes a lot easier and will keep clothing last longer. For instance there is no need to wash jeans after every wear. One of the marks of premium denim is that they don’t need to be washed in order to regain their shape.

Harrie Schoots from Ascend Performance Materials, LLC was elected President-elect by AATCC at its Annual Meeting. The following regional board members were elected for a two-year term: Jack Bare, StarChemLLC, New England Region; Martha Carper, University of Delaware, Central Atlantic Region; John Crocker, SDL Atlas, Midsouth Region; and Heather Shields, adidas International, Western Region.

Other members of the Board of Directors include Rembert J. Truesdale, III, Immediate Past President; R. Michael Tyndall, Treasurer; Adam Varley, Chair, Executive Committee on Research; Jiping Wang, Chair, Publications Committee; Carol Revels, Chair, Education Advisory Board; Louann Spirito, Chair, Concept 2 Consumer® Interest Group; John Darsey, Concept 2 Consumer® At-Large Member; William (Buddy) Garrett, Chair, Chemical Applications Interest Group; Robina Hogan, Chair, Materials Interest Group; Seshadri Ramkumar, Materials At-Large Member; and Brian C. Francois, Executive Vice President.

"Blockchain technology is paving its path into the cotton market. This technology makes transactions and contracts simpler and tracing more accurate. But, the questions of reliability, scalability and governance of this revolutionary technology need to be answered before it is at a bigger scale. In October 2016, the Wells Fargo and Commonwealth Bank of Australia used blockchain technology to process and execute a cotton shipment worth $35,000 from Texas to Qingdao, China."

Blockchain technology is paving its path into the cotton market. This technology makes transactions and contracts simpler and tracing more accurate. But, the questions of reliability, scalability and governance of this revolutionary technology need to be answered before it is at a bigger scale.

In October 2016, the Wells Fargo and Commonwealth Bank of Australia used blockchain technology to process and execute a cotton shipment worth $35,000 from Texas to Qingdao, China. This transaction – driven by smart contracts – eliminated a lot of paperwork which was otherwise needed to ensure that all the information is up-to-date and the same in both party’s records.

Blockchain to save transaction time

Blockchain technology reduces physical documentation and saves exponential time in receiving payments. It also saves time for the merchant to receive payment from the banks for the sale transaction, as the bill of lading and other supporting documents need not to be mailed physically to the Letter of Credit (LC) opening bank by the seller. The availability of authenticated documents linked in blockchain technology reduces the working capital cycle and the cost, which could be an advantage to all the parties to the trade.

Tracing the authenticity of cotton origin

The complex supply chain of cotton products involves many transactions, which makes it difficult to trace the origin, especially in case of organic cotton and BCI cotton. This transformational technology helps us maintain and check the authenticity of the origin by tracing it from field using GPS technology to fabric and fabric to field.

The technology uses the decentralisation concept, as every user has access to non-restricted data. Private information on a public platform requires a well-designed and secured platform to avoid it from being used for wrong purposes. This questions the reliability and the confidentiality of the information shared on this platform. It would be reliable and trustworthy if this technology is decentralized and yet maintained by an international regulatory, which sets the standards and legalities to ensure smooth functioning for transactions.

Maintaining records for reliable estimates

Blockchain technology also maintains data and records. The records provide reliable estimates every year for cotton for its opening stock, consumption and closing stock in every country. USDA could use this as a platform to source the data for cotton growth, consumption and ending stocks, allowing them to update the estimates based on current available information. This could help avoid unnecessary volatility in the market, and the market price would include all real market information which factors and defines the actual market data.

The International Cotton Association needs to promote this technology and start implementing it with their members. The challenges of security and reliability also need to be addressed for successful implementation in the market. The traceability of data and maintaining records analyses the competency of the parties in the trade and brings transparency to the availability of market data. The blockchain technology is thus beneficial and would revolutionise the cotton market.