The Responsible Sourcing Network and Shahi Exports have joined forces to promote responsible and ethical cotton sourcing practices in the garment industry. With countries around the world enhancing due diligence and sourcing standards, this partnership aims to establish a transparent and forced labor-free cotton supply chain.

Introducing YESS: Yarn Ethically & Sustainably Sourced

Responsible Sourcing Network's YESS initiative has spent years developing stringent due diligence standards to achieve a forced labor-free cotton supply chain for the textile and garment sector. The YESS standards were officially unveiled in Bengaluru, Karnataka, during a workshop on May 2, 2023. Industry members attended the workshop, emphasizing the importance of due diligence in constructing an ethical cotton supply chain and preventing forced labor.

Taking Action: Assessments and Implementing Due Diligence Measures

Following the workshop, YESS conducted its initial independent assessments at Shahi Exports' knitting and spinning facilities in Shivamogga, India. These assessments evaluate management systems and inventory controls to identify, assess, and mitigate forced labor risks based on the OECD due diligence framework. Shahi Exports, a pilot participant in the YESS Standards in 2022, is now the first Indian mill to take the lead in implementing robust due diligence measures.

Industry Collaboration and Support

Shahi Exports, India's largest apparel manufacturer and exporter, is committed to ethical and sustainable practices. The company recognizes the need for collaboration within the industry to achieve traceability goals and is confident that YESS will provide valuable support. YESS acknowledges the vital role of spinners and textile mills as gatekeepers in facilitating visibility and due diligence in the complex cotton-sourcing landscape and values their partnership across the global supply chain.

The Annual Conference; Better Cotton, the world's largest cotton sustainability initiative, will hold its annual conference in Amsterdam, the Netherlands, from June 21-22. With over 300 industry stakeholders participating, the event aims to facilitate collaboration and discussions on sustainability within the cotton supply chain. The conference will take place both in-person and online, accommodating diverse participants representing different stages of the supply chain.

Key Themes for Sustainability

The conference will revolve around four key themes crucial for promoting sustainability in the cotton sector. These themes include climate action, smallholder livelihoods, traceability and data, and regenerative agriculture. Each theme will be introduced by keynote speakers selected for their expertise in the respective fields.

Insights from Better Cotton Farmers

Better Cotton Farmers will play a significant role throughout the conference, providing insights into the implications of each theme on cotton-producing communities worldwide. Farmers and field facilitators from countries like India, Pakistan, Australia, Brazil, and Mozambique will be present to share their unique perspectives.

Exploring Key Themes

In the climate action theme, a practical workshop will delve into the potential of carbon finance in cotton production and agriculture. The livelihoods theme will feature an interactive session discussing a living income in cotton and beyond. The traceability and data theme will update attendees on Better Cotton's upcoming traceability system and ongoing pilot projects. Finally, the regenerative agriculture theme will explore its definition and applicability through panel discussions with smallholders and large farm owners from around the world.

Participants and Networking Opportunities

The conference will see participation from various organizations in the cotton sector and beyond, including The Sustainable Trade Initiative (IDH), Cotton Australia, Organic Cotton Accelerator, and WWF, among others. Attendees will have ample networking opportunities, including a welcome reception at the Fashion for Good Museum, featuring a curated cotton exhibition.

The Better Cotton Conference aims to drive sustainability and foster collaboration among stakeholders, ultimately contributing to a more sustainable cotton sector.

Turkish exports to Saudi Arabia have experienced a remarkable surge following the normalization of relations between the two countries. According to data from the Turkish Exporters Assembly (TIM), exports to Saudi Arabia have increased by over 600% during the January-April period, reaching a total of $780.5 million. In comparison, exports to Saudi Arabia in the same period last year amounted to $107.4 million.

Saudi Arabia ranks 22nd among Turkey's top export destinations, accounting for approximately 1% of the country's total exports over the four-month period. The leading countries for Turkish exports in the same timeframe were Germany ($6.3 billion), the USA ($3.9 billion), Italy ($3.8 billion), the United Kingdom ($3.6 billion), and Spain ($3.2 billion).

Saudi Arabia's significant growth in exports was only surpassed by the Russian Federation, with an increase of $1.7 billion, making it the top destination for Turkish exports in terms of value during the period.

The carpet industry emerged as the leading sector in Turkish exports to Saudi Arabia, with exports amounting to $109.5 million. Other prominent sectors included cereals, pulses, oilseeds, and related products ($81.3 million), chemicals and products ($77.9 million), ready-made clothing and apparel ($66.9 million), and electrical and electronics sectors ($56.7 million).

The main Turkish cities contributing to these exports were Istanbul ($336.2 million), Gaziantep ($120.8 million), Ankara ($48.4 million), Hatay ($44.7 million), and Bursa ($28.6 million).

Overall, the remarkable growth in Turkish exports to Saudi Arabia reflects the positive outcome of the improved relations between the two countries.

Azerbaijani companies have begun exporting cotton fibers to Turkmenistan, according to a report by Azernews. The Economic Zone Development Agency (EZDA) has been actively working to boost the production and export of competitive non-oil products, expand the processing industry, and establish new processing enterprises in Azerbaijan.

Textile Industry Development

Efforts are being made in the Mingachevir Industrial Park, in collaboration with Uzbekistan and Turkmenistan, to develop the textile industry and create new production areas. Azerbaijan's cooperation with Central Asian countries in cotton cultivation is entering a new stage, and the establishment of cotton-growing clusters in Azerbaijan, in collaboration with Uzbekistan, is underway.

Exporting Cotton Fiber to Turkmenistan

Azerbaijani cotton producers, including MKT IK, Azerpambig, and P-Agro companies, have initiated the export of cotton fiber to Turkmenistan. Initially, 30,000 tons of cotton fiber will be shipped from Baku International Sea Trade Port to Turkmenistan by sea.

Expanding Economic Cooperation

In addition to cotton fiber, Azerbaijan aims to export other products derived from cotton processing to Turkmenistan, fostering the development of economic cooperation between the two countries, including logistics and trade relations.

Diversifying Export Markets

Previously, Azerbaijan has exported cotton fiber to various countries, including Turkey, Russia, Iran, Belarus, Bangladesh, Switzerland, and more. The expansion of cotton fiber exports to Turkmenistan adds to the diversification of Azerbaijan's export markets and enhances economic ties between the two nations.

Online fashion retailer Shein is reportedly considering building a factory in Mexico as part of its efforts to diversify its manufacturing hubs outside China. Sources familiar with the matter revealed that the factory will produce Shein items and aims to reduce shipping time and distribution costs for the company's customers in Latin America.

Shein's move follows its recent announcement of establishing a manufacturing network in Brazil to cater to its global customer base.

The China-founded company, now headquartered in Singapore, primarily manufactures its products in China but is now seeking to expand its production locations. Shein has gained market share from other affordable fashion retailers by offering $10 dresses and $5 tops. It competes with Temu, operated by PDD Holdings, which sells low-priced items from China in the U.S.

Although a specific location for the Mexico site has not been determined yet, Shein plans to utilize funds from its recent $2 billion capital raise, which included investments from Mubadala and Sequoia China, to support its expansion. The company is also considering an initial public offering in the United States. Despite a valuation cut to $66 billion in its latest funding round, Shein continues to experience 40% annual revenue growth, according to one of the sources.

Shein has recently launched an online marketplace platform in Brazil, allowing third-party merchants to sell their products on the Shein app and website. A similar marketplace is expected to be launched in the U.S. before expanding globally. However, the upcoming Mexico factory will not accommodate items from third-party vendors.

Shein has faced criticism in various markets, including India, Brazil, and the U.S., due to its supply chain links to China. In May, a bipartisan group of U.S. representatives called on the Securities and Exchange Commission to suspend Shein's initial public offering until the company can verify that it does not use forced labor. Shein has previously stated its "zero tolerance" policy for forced labor and its requirement for suppliers to adhere to the International Labour Organization's core conventions.

Amid accusations of forced labor and internment in China's Xinjiang region, Shein has denied shipping from the area, emphasizing its commitment to responsible sourcing practices.

Recent data reveals a startling trend: 90% of used clothes and textile waste from European countries is being exported to Africa and Asia. The European Environment Agency (EEA) has shed light on the significant environmental and climate impact of textile waste, ranking it as the fourth most significant pressure resulting from European consumption.

Demand for Responsible Textile Trade

The findings underscore the urgent need for increased responsibility within the global textile trade as sustainability in waste management practices becomes ever more crucial.

Environmental Consequences

Europe's heavy reliance on Asia and Africa for low-cost manufacturing has resulted in an excessive accumulation of used clothes and textile waste, posing serious environmental challenges. While this practice has been profitable for businesses, it has had alarming consequences for the environment.

Negative Impact of Textile Production and Consumption

The EEA report highlights the negative impact of textile production and consumption in the European Union. Textile consumption ranks high in land use, water consumption, material resource utilization, and greenhouse gas emissions. Furthermore, the production of textiles introduces chemicals that harm the environment and contribute to climate change.

The Problem of Synthetic Textiles

The widespread use of synthetic textiles, derived from fossil fuel resources, exacerbates the issue. These materials are present in various aspects of daily life but contribute to greenhouse gas emissions, resource depletion, and the release of harmful microplastics into the environment.

Exporting Textile Waste

Europe generates approximately 5.8 million tonnes of textile waste annually, with synthetic fibers comprising nearly two-thirds of this waste. Limited local recycling capabilities drive the majority of this waste to be exported to Africa and Asia. While Africa has historically received the majority of EU textile exports, Asia's share has increased significantly.

Uncertain Fate and Environmental Impact

The fate of these exported textiles remains uncertain, as the reuse, recycling, or disposal methods in recipient countries are poorly documented. African countries often reuse imported textiles, but unsuitable items frequently end up in landfills. Asian countries typically sort and process used textiles in economic zones, downcycling them into industrial rags or filling materials. Textiles that cannot be recycled or re-exported may find their way into general waste management systems, including landfills.

Japanese clothing brand Uniqlo has made the decision to leave the Russian market after suspending its operations there last year, according to Russia's deputy trade minister.

Fast Retailing, the owner of brand Uniqlo, halted the brand's operations in Russia in March 2022, following the start of Moscow's military action in Ukraine.

Uniqlo could potentially offer its business model to potential buyers, including lease agreements, popular store locations with high customer traffic, and existing equipment, however, the specific details of Uniqlo's exit strategy and potential sale remain unknown.

Uniqlo was operating 50 stores in Russia. The brand's departure from the Russian market presents an opportunity for potential investors interested in the retail sector.

A delegation from the Istanbul Textile and Apparel Exporter Association (İTKİB) recently visited Cuba to strengthen bilateral trade relations. The purpose of the delegation's visit to both Cuba and the Dominican Republic was to enhance trade ties. İTKİB aims to organize procurement and trade delegations to facilitate trade deals between the countries. In addition, they extended invitations to representatives of the textile industry in Cuba and the Dominican Republic to participate in trade fairs held in Turkey.

Turkish Textile Industry's Export Revenues

With export revenues reaching $12.9 billion last year, the industry seeks to expand its global outreach.

Meanwhile, the Turkish leather apparel industry remains optimistic about foreign demand despite concerns surrounding the Ukraine-Russia conflict. The Antalya Leather and Fur Fashion Show witnessed strong attendance, including a significant number of Russian companies.

Recovery and Challenges for the Leather Sector

While the leather sector is slowly recovering from the pandemic's impact, challenges such as rising raw material and labor costs persist for local companies. However, the industry still experienced growth, with leather and leather product exports increasing by 10% in the first four months of 2023, amounting to $236 million in exports last year.

In the first four months of 2023, Cambodia's export earnings from "articles of apparel and clothing accessories, knitted or crocheted" reached $1.395 billion, reflecting a 28.49% year-on-year decrease and a 40.80% decline compared to the July-October 2022 period. This category accounted for 19.28% of the country's total merchandise exports during this period, down from 25.64% in the same period last year. Despite the decline, the current export levels are still higher than during the Covid-19 lows.

Reasons for the Decline

The drop in exports is attributed to economic hardships caused by the Russo-Ukrainian conflict, which disrupted raw material and energy supply chains globally, leading to increased production costs and inflation. The tightening of expenses by consumers in major markets for Cambodian apparel, such as the US and Europe, also contributed to the decline.

April Exports and Challenges Ahead

In April 2023, Cambodia exported $347.692 million worth of apparel, marking a decline of 31.83% compared to the previous year. Although this figure is down from the record high in July 2022, it remains higher than the lowest point in April 2020 when Covid-19 had a significant impact. However, the challenges persist as Chapter 61 items accounted for 18.87% of the country's total exports in April 2023, down from previous periods.

Industry Challenges and Export Destinations

The Textile, Apparel, Footwear & Travel Goods Association of Cambodia (TAFTAC) highlighted that the industry has been facing year-over-year export declines since August due to global economic uncertainty and the Ukrainian crisis. The top export destinations for Cambodia's garment sector are the US, EU, Japan, Canada, and the UK, with the situation in the EU currently unfavorable. Despite a growth trend in recent years, the industry faces ongoing challenges amid global economic turbulence.

Export Performance

In 2022, Cambodia exported Chapter 61 items worth $6.367 billion, reflecting a 9.41% increase compared to the previous year but a 3.26% decrease from the record high in 2018.

The Istanbul International Yarn Fair, scheduled to start on June 1, provides a significant platform for yarn industry manufacturers to showcase their innovations. With an expanded area of 40,000 square meters and new additional halls, the fair reflects the growing demand and interest in the industry.

Bringing Together Yarn Manufacturers

The 19th TÜYAP Istanbul International Yarn Fair will convene manufacturers engaged in the yarn industry, a vital raw material for the textile sector. From June 1-3, visitors will have the opportunity to explore recyclable yarns and discover sector innovations. Due to high demand, the fair has expanded to occupy an area of 40,000 square meters with new halls.

Prominent Yarn Fair in Eurasia

The 19th TÜYAP Istanbul International Yarn Fair, considered the most important yarn fair in Eurasia, expects 15,000 visitors and over 500 participating companies. Running until June 3, the fair will attract global attendees from Europe, the United Kingdom, the United States, Brazil, Algeria, China, Indonesia, Ghana, South Korea, Iran, Israel, Japan, Canada, Qatar, Kuwait, Malaysia, Egypt, Russia, Vietnam and more. It serves as a meeting point for industry giants and local manufacturers, boosting exports. Participants can benefit from support provided by the Turkish Ministry of Trade and KOSGEB.

Expansion and Growing Interest

To accommodate increasing participation requests, new halls have been added to the fair, doubling its size to occupy 40,000 square meters across 7 halls. Industry professionals have shown keen interest, with online ticket requests rising by 25% compared to the previous year.

Focus on Exporting Countries and Yarn Types

Turkey's textile and raw material exports reached 2.7 million tonnes in 2022, with significant volumes directed to EU countries and African nations. Many of these countries are among the first 15 expressing interest in visiting the Istanbul Yarn Fair. The fair will showcase various yarn types, including synthetic and natural fibers, as they are the most exported in the industry.

Highlighting the Circular Economy

The fair will feature a special exhibition area dedicated to recycled yarns, highlighting the circular economy. Visitors can witness the transformation of yarn from waste to final products. Participating firms will showcase sample products, allowing visitors to explore them in detail.

A Gathering of Innovation and Quality

The Istanbul International Yarn Fair is a platform for eco-friendly, high-performance, and high-quality products, serving as the most important commercial event in the international yarn industry. Previous participants reported an 81% increase in order volume, and 32% of visitors made on-site purchases. The fair aims to attract a diverse range of visitors through intensive promotional activities, building on the success of the previous edition's 10,282 industry professionals in attendance.