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EU may suspend privileges for Cambodia
The European Union will decide whether or not to revoke Cambodia’s preferential trade status. Following concerns over democratic and human rights setbacks in Cambodia, the EU has launched a process to temporarily suspend the Everything But Arms (EBA) deal that grants Cambodia preferential access to the European market. A number of sectors may be impacted by the suspension of EBA, including tourism, construction, and agriculture. However the EBA will probably not be revoked, as Cambodia has plenty of time to negotiate with the EU and defend its position. The temporary suspension of the EBA is an 18-month process.
EBA preferences can be withdrawn in case of some exceptional circumstances, notably in the case of serious and systematic violation of principles laid down in fundamental human rights and labor rights conventions.
Cambodia is expected to remain an attractive destination for foreign investment. It is no surprise if European firms continue to invest in Cambodia even if the EBA is suspended because the country has great potential in several industries. The EU is a key trading partner for Cambodia, especially for garments and footwear. Cambodia is expected to grow by seven per cent in 2019. Growth will be driven by garment exports, tourism, construction and real estate and agriculture.
UK-based WTiN joins AFFOA
Information provider World Textile Information Network (WTiN) has been accepted as a member of the Advanced Functional Fabrics of America (AFFOA). This is one of a growing number of industry partnerships that plug into the information provider’s unrivalled value as a source of intelligence on smart manufacturing and materials.
AFFOA’s mission is to bring about a domestic manufacturing-based revolution in the US by advancing and strengthening the supply chain through the development of sophisticated, integrated and networked textile devices. As a member, WTiN will assist in the creation of business opportunities within the AFFOA community and may host or participate in AFFOA Education and Workforce Development activities.
WTiN, based in the UK has established its leadership position as a provider of intelligence on advanced materials and digitalisation technologies through its recently expanded portfolio of online channels: digital textiles; textile 4.0; performance textiles; protective textiles; and smart textiles. WTiN aims at promoting advanced digital techniques within the luxury fashion sector by giving designers the necessary skills. Its network spans design, manufacturing and retail. For a UK-based information provider to be admitted into the heart of the US community of advanced textile developers is a major endorsement of its global service and the value its team can bring by its communication and analysis of the latest ideas in textile and apparel technology.
US jeans imports up seven per cent
American imports of blue jeans rose 7.83 per cent in 2018. Mexico’s shipments of blue jeans to the US grew 3.11 per cent in the year. Mexico has a 21.2 per cent share of the US market. US blue denim apparel imports from China rose 1.51 per cent in 2018. China has a 24.29 per cent share of the US market. Jeans imports from Bangladesh rose 11.73 per cent, giving the country a 14.68 per cent market share. Vietnam’s shipments jumped 43.02 per cent, giving Vietnam a 7.68 per cent market share. Imports from Pakistan were up 15.26 per cent, giving the country a 6.39 per cent market share. Cambodia’s shipments rose 20.5 per cent with a market share of 2.93 per cent.
African countries are slowly establishing themselves as a low-cost sourcing alternative. Egypt’s blue jeans shipments rose 6.06 per cent for the year, with a four per cent market share. Imports from Lesotho increased 5.57 per cent. Madagascar’s shipments were up 10.46 per cent and imports from Kenya jumped 50.57 per cent.
In the western hemisphere, where goods generally land in the US duty free under free trade agreements, imports from Nicaragua increased 14.19 per cent, Colombia’s shipments rose 33.92 per cent and imports from Guatemala were up 15.87 per cent.
US renews sanctions against Zimbabwe
The renewal comes despite calls by African leaders for sanctions to be lifted to give the country a chance to recover from its economic crisis. Sanctions were imposed under the rule of Robert Mugabe, who brought the country to near ruin during his 37-year tenure. The west accused him of rigging elections, rights abuses and oppressing opponents before he was ousted after a coup in 2017.
Zimbabwe believes the new dispensation has laid a firm foundation for future relations with the United States. But a military crackdown on post-election violence last August and fuel price protests in January offered stark indications that the country is reverting to the authoritarian streak that characterised Mugabe’s rule.
The sanctions bar US officials from voting for Zimbabwe to access funds from foreign lenders like the International Monetary Fund and World Bank, hobbling its economy, which is gripped by a severe shortage of dollars. With high inflation, and a shortage of cash in circulation eroding ordinary citizens’ spending power, the fragile state of the economy is at the heart of the country’s political troubles. The EU has retained sanctions on Mugabe as well as an arms embargo on Zimbabwe.
SPESA holds conference to discuss innovations in sewn products sector
The Sewn Products Equipment and Suppliers of the Americas (SPESA) hosted its ninth Advancements in Manufacturing Technologies Conference on February 27, 2019 bringing together a group of leaders on the frontline of manufacturing to discuss the current and future state of innovations in the sewn products industry. Held in conjunction with Techtextil North America, the event attracted more than 90 attendees from 18 states (including the district of Columbia) and five countries.
SPESA started the Advancements Conference nearly a decade ago in response to continual changes in manufacturing technologies, including advancements in sewn products equipment. This year’s event focused specifically on issues and opportunities related to microfactories, on-demand manufacturing, software connectivity and automation, touching on the role robotics now play in the industry.
The conference featured Mike Fralix of [TC]2 as moderator, who was joined by a leading group of panelists, including Michael Rabin, president at Morgan Tecnica America; Leonard Marano, vice president at Gerber Technology; Yoram Burg, President at EFI Optitex; Kirby Best, President & Chairman at PAAT International; Toni Lublin, Communications and Partnership Manager at Lectra North America; Roberto Mangual, CEO at Exenta; Mariano Amezcua, President at DAP America; Rick Frye, Director of Engineering at Brother International; and Henderson.
Tamil Nadu launches initiatives for textile sector under new integrated policy
The Tamil Nadu government has announced a host of incentives for the textile sector. The just released Integrated Textile Policy 2019 includes a 2 per cent interest subvention for investments on technological upgrade and modernisation in existing spinning mills, increase in interest subsidy for handloom weavers, cooperative societies to 6 per cent, scheme for free supply of power to powerloom weavers at 750 units bimonthly, and 10 per cent credit-linked capital investment subsidy for processing the sector under the Amended Technology Upgradation Fund Scheme (ATUFS), among others.
The state government will also extend 2 per cent interest subsidy for modernising spinning machines, a 10 per cent capital subsidy for the weaving and garment sectors,a subsidy of up to 25 per cent of project cost with a ceiling of Rs 10 crore for a trade facilitation centre, a 10 per cent capital subsidy for wider width fabric processing, a 5 per cent interest subsidy for common effluent treatment plant, a 15 per cent capital subsidy for the individual effluent treatment plant, and a Rs 1-crore R&D assistance for effluent treatment plant.
This apart, the state government also announced incentives for technical textiles, including a 9 per cent capital subsidy, a 6 per cent interest subsidy, 100 per cent stamp duty exemption and also Rs 1-crore assistance for overseas study. The sops also include setting up of mini textile parks with 50 per cent subsidy.
AIC-NIFTTEA Incubation Centre to collaborate with CIRCOT for salt-free dyeing technology
AIC-NIFTTEA Incubation Centre for Textiles and Apparels will join hands with ICAR-Central Institute for Research on Cotton Technology (CIRCOT) to promote ‘Salt-free dyeing technology’, which would not use salts for setting dyes on fabric or yarn resulting in reduced virility of effluents. The eco-friendly method, already successfully tested in woven fabric, was developed by the Mumbai-based CIRCOT, and the institute wanted to take it to the knitwear industry now.
Since cotton gets negatively charged once soaked in water, negative-charged reactive dye would not get transferred on it. To convert cotton into positive charge, common salts are utilised. But in the technology developed by CIRCOT, cotton would be pre-processed to positive charge by cationisation. So fabric or yarn can absorb dye without using salt as catalyst.
For one kg fabric or yarn, 0.5 to 0.6 kg salt is used in the current technology. It would result in formation of effluents which would even carry TDS up to 80,000ppm, and after the treatment of effluents, it will be reduced to 16,000 ppm.
With the salt-free technology, TDS of the effluents would be reduced to 1,600ppm from 16,000ppm, below the CPCB permissible level — 2,100ppm. This technology will save cost of the dyeing process as the units have no need to buy salts or spend more in the effluent treatment process.
India: Export rebates for apparel, made-ups extended
India has extended rebates for apparel and made-ups manufacturers and exporters. Rebates of state and centre levies and taxes will be done through IT driven scrip system thereby preventing delays and ensuring speedy disbursal. The decision is important as apparel and the made-ups sectors have a combined share of 55 per cent in the total Indian textile export basket. It will have a direct impact on these segments thereby increasing the competitiveness of India’s textile exports globally.
The proposed measures are expected to make the textile sector competitive. Rebate of all embedded state and central taxes and levies for the apparel and made-ups segments would make exports zero-rated, thereby boosting India’s competitiveness in export markets and ensure the equitable and inclusive growth of the textile and apparel sector. So far, apparel and made-ups segments were supported under the Scheme for Rebate of State Levies (RoSL). However, certain state and central taxes continue to be present in the cost of exports.
There are many levies outside GST that are embedded in export prices, and so Indian apparel exporters often demanded higher duty drawbacks and RoSL rates. The ROSL scheme is in tune with the recognized economic principle of zero rating of export products.
Poland’s fashion exports grew 21 per cent in three years
Poland’s fashion exports have soared by 21 per cent in three years. In 2018, the country’s sales to the European Union amounted to €11.39 billion, while in 2016 the figure was €9.4 billion.
In 2014 the sector began a process of modernization following this the country managed to carve a niche in proximity sourcing. Its advantages are: price, geographic position and the development of the industry. Wages are below that of other European Union countries. The transformation process of the textile industry in Poland began in 2010, when investment was made in modernizing production of yarns and fabrics and developing clothing manufacture. The investments were possible thanks to the support of the European Regional Development Fund.
Poland has increased imports of clothing machinery to strengthen its textile industry. Poland is, in fact, the main destination of German clothing machinery exports. German machinery exports to Poland exceeded €30 million in 2015 and reached €90 million a year later.
Poland has a privileged position regarding logistics, since it is located in the center of Europe and next to Germany. Traditionally, the Polish fashion industry has operated with its own fashion brands, which were affected by the entry of international competition after Poland became a member of the European Union in 2014.
IIGF Noida to be held in July
India International Garment Fair (IIGF) will be held in Greater Noida from July 4 to 7, 2019. IIGF is a business to business trade show where brands showcase their upcoming collections to buyers, exporters, and other industry professionals. It has grown in scale and scope and emerged as one of the largest and most popular platforms in Asia where overseas garment buyers can source and forge business relationships with India’s finest in the apparel and fashion accessories domain. For the upcoming season of the bi-annual event, IIGF will see brands present their collections for spring/ summer 2020, a year before the garments themselves are launched in stores. Participants showcase women’s wear, accessories, kids’ wear and men’s wear. The trade show will feature runway shows and brands will also display their products at dedicated booths. Networking opportunities will be fostered and delegates from both India and abroad will be present.
This is a B-2-B fair that started in 1988. IIGF offers participants a unique business opportunity to express their business message to a specific and focused target group of apparel buyers, importers, retailers, chain stores and agentsWith GST stabilising and the industry hopeful of policy support for improving the sector’s cost competitiveness, a turnaround in export trajectory is expected.












