gateway

FW

FW

The European Union has said, implementation of the Annan report will be crucial for Myanmar to retain its trade privileges. The report seeks to address a broad range of structural issues that are impediments to the peace and prosperity of Rakhine. Several of its recommendations focus on citizenship verification, rights and equality before the law, documentation, the situation of the internally displaced and freedom of movement. So far, the government has not published any details about which of the recommendations have been put into practice.

The EU is at a stage of enhanced monitoring during which the bloc will decide whether to launch a withdrawal process of the trade privileges it has offered Myanmar. A formal withdrawal process will include a six-month review period for Myanmar to demonstrate progress.

The GSP regulations stipulate that preferential treatment may be withdrawn if Myanmar is found to have systematically violated the principles laid down in the international conventions on human and labour rights, including those on preventing/ punishing the crime of genocide and elimination of racial discrimination.

The Chinese State Council has announced plans to lower tariffs on some of its consumer goods ranging from computers to textile products due to pressure from trade partners. An official statement stated, tariffs under category one will be lowered to 13 per cent from the earlier 15 per cent while those under category two will be lowered to 20 per cent from 25 per cent. This adjustment will take effect on April 9, 2019.

Products under category one include consumer products like books, magazines, computers, video camera, food, beverage, furniture, qualified drugs, among others. The items under category two are sporting goods (exclude golf balls and equipments), fishing products, textile products and bikes. The move is been seen as Beijing’s efforts in response to major trade partners challenging its trade practises.

While China and the US have slapped tariffs on more than $360 billion in two-way trade, the European Union plans to take China to task for alleged unfair trade policies.

Tuesday, 09 April 2019 10:04

Luxury brands move out of Brazil

About a quarter of foreign luxury brands in Brazil have fled the country over the past three years. Though the Brazilian luxury market grew 7.8 per cent in 2018, the sector shrank 23 per cent between 2016 and 2017. Versace is by no means the only high-end company to pull the plug on Brazil. Kiehl’s—a cosmetics store controlled by L’Oréal—deactivated its online store at the end of March. Other players, such as Ralph Lauren (clothing), Kate Spade (accessories), Vacheron Constantin (watches), Ladurée (pastries), and Lush (cosmetics) have also taken a pass on Brazil.

Brazil, Latin America’s largest economy, remains one of the most expensive countries to buy imported goods. Zara is more expensive in Brazil than anywhere else in the world reveals a comparison of 22 items in 44 countries. On an average, Brazilians pay 18 per cent more than American customers. In 2014, luxury apparel goods prices in Brazil were, on an average, 33 per cent higher than in the US. Brazil’s tax framework is much to blame. High import taxes, different rules in each of the 27 states, and severe infrastructure and logistics bottlenecks also make selling imported goods in Brazil a daunting task. Brazil’s high tax burden, prolonged recession and political instability are cited as factors which make it impossible to continue investing and turning a profit.

Appreciating the Italian leather industry, Bangladesh Prime Minister Sheikh Hasina, has sought Italy’s support to develop its leather industry. The Prime Minister recently met the newly appointed Italy’s Ambassador to Bangladesh Enrico Nunziata. Welcoming the ambassador, Hasina assured him of complete support in performing his duties. She also emphasised on enhancing the trade relations between the two countries.

In return, Nunziata assured Bangladesh of his commitment to increase relations between chambers of commerce of both the countries. The country, in its bid to improve cooperation with Bangladesh, has formed a parliamentary group. It also plans to set up training centers in Bangladesh for textile and other technologies.

Tuesday, 09 April 2019 09:59

App links denim supply chain

Denimsandjeans has launched an app that brings buyers and suppliers in the denim and sportswear supply chain together. Developed to bridge the gap between both sides of the supply chain, the app aims at reducing the cost and time of sourcing and marketing. The unique sourcing platform enables suppliers or manufacturers to showcase their products to buyers and for both to interact with each other. The app has features that allow suppliers to create their own showrooms along with the tools for one-to-one interaction with buyers as well as for better networking among the community.

The app already features products from denim companies such as Raymonds, Prosperity, Crescent and Anubha. For now, the users can download the app on iPhone and a release for Android devices is due to be available shortly.

Denimsandjeans provides a single platform to the global denim industry, be it manufacturers, buyers, suppliers or traders to showcase and explore innovations in denim. It brought together major stakeholders in the supply chain. India is the second largest manufacturer of denim fabrics after China and the second biggest consumer of denim apparel globally. The country, with immense potential, is expected to grow at a fast pace in the coming years.

"Recovering from the 2018 turmoil, US apparel imports in January 2019 increased 25 per cent to $7.57 billion. The country again sourced from its traditional markets – China, Vietnam, Bangladesh, India, etc in 2019. It had, in the second half of 2018, shifted its sourcing to nearby destinations of Central and South America. From July 2018, US apparel retailers and buying houses began exploring newer markets to source from. It also sourced a lot of high end apparels from Europe. And Ethiopia’s exports to US are witnessing a robust increase."

 

Dynamics changing as new markets beckon US apparelRecovering from the 2018 turmoil, US apparel imports in January 2019 increased 25 per cent to $7.57 billion. The country again sourced from its traditional markets – China, Vietnam, Bangladesh, India, etc in 2019. It had, in the second half of 2018, shifted its sourcing to nearby destinations of Central and South America. From July 2018, US apparel retailers and buying houses began exploring newer markets to source from. It also sourced a lot of high end apparels from Europe. And Ethiopia’s exports to US are witnessing a robust increase. There are once again clear signs of shifting supply chains in the apparel market.

US apparel imports decline in June 2018

US apparel imports declined 6.2 per cent in value terms in June 2018. Imports from Canada and Mexico duringDynamics changing as new markets beckon US apparel importers this period increased 30 per cent and 11.71 per cent respectively. US buyers also sourced more from Guatemala, El Salvador, Honduras, Costa Rica, Haiti, Dominican Republic, Bolivia, Chile, Argentina. US apparel imports from almost all traditional Asian suppliers-China, Bangladesh, India, Vietnam, Cambodia, Thailand, Pakistan, Indonesia, Philippines, among others-declined in the first half of 2018.

Imports from China declined 5.53 per cent, while imports from Bangladesh fell around 3 per cent. From the African region, imports increased from Ethiopia and Lesotho, and declined from Kenya, despite the AGOA.

Sourcing choices shift in second half of 2018

In the second half of 2018, imports from Canada and Mexico declined by 27.3 per cent and 17.88 per cent respectively, as NAFTA was replaced. Imports from South and Central America continued to rise, with a decline witnessed only from Dominican Republic and Peru. UVRs were significantly higher for Chile, Bolivia, Peru, Ecuador, Panama, Nicaragua.

Imports from China declined by 33.84 per cent from July 2018. Also, US imports from Hong Kong declined by 51 per cent in value and 69.45 per cent in volume. Imports from India, Pakistan, Nepal, Bangladesh, Vietnam, Cambodia, Malaysia, Indonesia, Philippines and South Korea also declined. US imported a little more apparel from Sri Lanka, Thailand, Laos and Japan.

Within the African region, imports from Ethiopia and Lesotho continued to rise, while Kenya suffered an export setback despite the large number of Chinese investments happening in Kenya’s textile industry.

US explores new markets in 2019

US apparel imports in January 2019 increased by 25.34 per cent higher compared to a month before. In January, imports from Canada and Mexico increased by 9.86 per cent and 3.87 per cent respectively.

Imports from Eastern Europe show a mixed trend, with imports rising from Czech Republic, Lithuania and Poland. Imports from Russia declined by 92.62 per cent in January, while those from Belarus increased by 174.51 per cent. Imports from Greece and Turkey also improved.

According to the Commerce Department, consumer spending dropped by 0.5 per cent last month, its first decline since September 2016. The report also indicated a 0.1 per cent drop in the personal income in January 2019, for the first time in nearly three years. Thus, in 2018, US buyers explored diverse markets across the globe. If it aims to remain in the competition, Indian exporters will have to find new ways to service demand from this market.

Stitch &Tex Expo - Afro Edition will feature the new concept of organising two consecutive trade fairs. The first trade fair is dedicated to garment processing technologies including sewing, embroidery, fabrics and their accessories; while the second is dedicated to textile processing technologies including weaving, spinning, knitting, and dyeing machinery, technologies and spare parts. The two events are held under the giant brand Stitch & Tex Expo - Afro Edition.

Set to establish a tangible uprising in motivating employment, inspiring skill development, stirring entrepreneurship in the textiles business segment, achieving economic development and thus conveying new ambitions for younger generations of the African continent, the two editions of Stitch &Tex – Afro Edition 2020, will be held in the Cairo International Conventions and Exhibitions Center- Egypt from February 27 - March 01, 2020 and from March 05-08, 2020 consecutively.

Stitch &Tex Expo - Afro Edition is a premier event paving the way for textile and machinery manufacturers, suppliers, and buyers to capitalise on growing opportunities in one of the world’s most appealing business environments.

US scientists have created threads that change color when they detect a variety of gases, an advance that could help develop smart fabrics that can sniff out toxic chemicals. The threads can be read visually, or even more precisely by use of a smart phone camera, to detect changes of color due to analytes as low as 50 parts per million. Woven into clothing, smart, gas-detecting threads can provide a reusable, washable, and affordable safety asset in medical, workplace, military and rescue environments.

While not replacing the precision of electronic devices commonly used to detect volatile gases, incorporation of gas detection into textiles enables an equipment-free readout, without the need for specialised training. Such an approach could make the technology accessible to a general workforce, or to low resource communities that can benefit from the information the textiles provide.

The team used simple dyes that detect gases with acid or base properties. The method that effectively traps the dye to the thread, rather than relying so much on binding chemistry, offers more flexibility to use dyes with a wide range of functional chemistries to detect different types of gases. The tested dyes changed color in a way that is dependent and proportional to the concentration of the gas as measured using spectroscopic methods.

Rubana Huq, Managing Director of Mohammadi Group, is set to be the first woman president of the BGMEA after her panel managed a clean sweep at the biennial election. Around 1,492 out of the total 1,956 voters cast their votes in the election to choose the leaders of the BGMEA for the next two years. Sammilita Forum, won all 35 available posts for directors. Huq is scheduled to take helm of the BGMEA on April 20, 2019

A separate cell will be set up in the BGMEA to help the factory owners with price negotiations with buyers.

Monday, 08 April 2019 13:19

Mauritius expands trade with Bangladesh

Mauritius is looking to expand its apparel and textile trade with Bangladesh. Bilateral business relations are growing stronger with increased trade between the two countries. Bangladesh is the world’s second largest apparel sourcing destination. Bangladesh is working full steam to achieve its target of $50 billion in exports from the apparel and textiles sector by 2021.

Mauritius is a country which can boast of having one of the best infrastructures in Africa. It has a population of 1.2 million with the main languages being English, French and Creole. The textile and clothing industry of Mauritius is into knitwear, kids’ wear, trousers etc. But knitwear is where it excels in and enjoys international prowess. Mauritius has quite a few vertically integrated units. The country is developing the capability and capacity to cater to the needs of global buyers. The USP of Mauritius is the reliability and credibility it has built in its buyers’ community which is the holy grail of its continued relevance to the ever changing sourcing landscape.

Bangladesh earned $1.7 million from apparel exports to Mauritius in fiscal 2017-18. Bangladesh’s apparel exports to Mauritius are monopolised by knitwear products. During 2017-18, knitwear items fetched $1.7 million while woven items earned about $1,41,000.