"For the last two and a half years, Brexit has consumed the entire United Kingdom. The UK’s negotiations with the EU have dragged on through multiple déjà vu moments, and the consensus is that the economic fallout will be felt far more acutely in Britain than in the EU, let alone in countries elsewhere. Still, the rest of the world is facing profound challenges of its own. Political and economic systems are undergoing far-reaching structural changes, many of them driven by technology, trade, climate change, high inequality, and mounting political anger. In addressing these issues, policymakers around the world would do well to heed the lessons of the UK’s Brexit experience."

For the last two and a half years, Brexit has consumed the entire United Kingdom. The UK’s negotiations with the EU have dragged on through multiple déjà vu moments, and the consensus is that the economic fallout will be felt far more acutely in Britain than in the EU, let alone in countries elsewhere. Still, the rest of the world is facing profound challenges of its own. Political and economic systems are undergoing far-reaching structural changes, many of them driven by technology, trade, climate change, high inequality, and mounting political anger. In addressing these issues, policymakers around the world would do well to heed the lessons of the UK’s Brexit experience.

No immediate repercussions

When Britian decided to leave the EU, experts predicted that the UK economy would suffer an immediate and significant fall in output following the 2016 referendum. However, Brexit was different. There was no immediate break in British-EU trade. In the absence of clarity on what type of Brexit would ultimately materialise, the economic relationship simply continued “as is,” and an immediate disruption was averted.

The question therefore, is not whether the UK will face a considerable economic reckoning, but when. The UK economy is already experiencing slow-moving structural change. Foreign investment is falling contributing to the economy’s disappointing level of investment overall. Moreover, this trend is accentuating the challenges associated with weak productivity growth.

Maintaining global norms difficult

Companies with UK-based operations have also begun to trigger their Brexit contingency plans after a prolonged period of waiting, planning, and more waiting. In addition to shifting investments out of the UK, firms will also start to relocate jobs. And this process is likely to accelerate even if British Prime Minister Theresa May manages to get her proposed exit deal through Parliament.

The Brexit process thus provides a preview of what awaits an increasingly fractured global economy if this continues: In this context, costly self-insurance will replace some of the current system’s pooled-insurance mechanisms. And it will be much harder to maintain global norms and standards, let alone pursue international policy harmonisation and coordination. Tax and regulatory arbitrage are likely to become increasingly common as well. And economic policymaking will become a tool for addressing national security concerns (real or imagined). How this approach will affect existing geopolitical and military arrangements remains to be seen.

Uncertain outlook for liquidity growth

Lastly, there will also be a change in how countries seek to structure their economies. In the past, Britain and other countries prided themselves as “small open economies” that could leverage their domestic advantages through shrewd and efficient links with Europe and the rest of the world. But now, being a large and relatively closed economy might start to seem more attractive. And for countries that do not have that option—such as smaller economies in East Asia—tightly knit regional blocs might provide a serviceable alternative.

Brexit holds important lessons for and about the global economy. We live in an era of considerable technological and political fluidity. The outlooks for growth and liquidity will likely become even more uncertain and divergent than they already are.

Export Promotion Council for Handicrafts (EPCH) is holding the 22nd edition of awards for outstanding performance in exports of handicrafts for the year 2015-16 and 2016-17 on December 18, 2018. Around 70 handicrafts exporters are being awarded for their performance in 2015-16; and 66 for their performance in the financial year 2016-17. The function will be held at state-of-the art India Expo Centre & Mart, Greater Noida. Smriti Zubin Irani, Union Minister of Textiles will be the chief guest and Ajay Tamta, Union Minister of State for Textiles (Independent Charge) will be the guest of honour.

The export awards are given based on export performance and are selected by Export Awards Selection Committee chaired by Development Commissioner (Handicrafts). The categories of awards include: top export award trophy, merit certificates, woman entrepreneur, regional awards, hat trick awards, Life time achievement awards. For the first time, a new category of Platinum Performer Award has been created to honour the company that has registered growth in its fourth year and has been awarded for its export performance in 5th year.

Overall 31 awards will be given to exporters from Moradabad, 17 to Rajasthan exporters, 39 will be conferred to exporters from Delhi NCR, 19 awardees from Kolkata will be the recipients of awards for their excellent performance in exports of handicrafts.

Hamma Kwajaffa, Director-General of The Nigerian Textile Manufacturers Association (NTMA) has revealed the association has set a 1.7-billion metre finished fabric production sector target for 2019 to resuscitate the industry and increase its contribution to the nation’s gross domestic product. The association has also set a target to capture a short to long-term local market share of between 35 to 70 per cent in finished fabrics, and 100 per cent off take of locally produced raw cotton.

To achieve these targets, Kwajaffa has advocated the extension of gas pipelines to the North alongwith supply of low pour fuel oil (LPFO) at concessionary price until gas pipelines were extended to the region.

Kwajaffa also urged government to harmonise power tariff for textile mills from DISCOs across the country and consider supply of power to textile manufacturers at globally competitive tariff of eight US cents per kilowatt. The government should also enforce compliance with local sourcing of uniforms and other textile goods in line with Executive Order 3, and extant law should be made punitive to recognise smuggling as a criminal economic offence.

Sri Lanka’s apparel exports during January to October grew 4.4 per cent year on year. Exports to the US grew 4.5 per cent year on year and exports to the European Union grew 4.2 per cent year on year.

October apparel export earnings declined one per cent year on year. In October, apparel exports to the US slowed down 6.5 per cent year on year. Apparel exports to the EU recorded a growth of 3.1 per cent year on year. Sri Lanka’s apparel exports were impacted by sluggish retail markets in the EU and US as well as fierce competition among global suppliers. It is estimated that there’s four per cent oversupply in the global apparel market. Sri Lanka is not able to fully capitalise on the US-China trade war, as Sri Lankan manufacturers don’t have the capacity to cater to the export orders that China is losing.

The country expects apparel export earnings would average around $450 million in November and December, enabling the industry to cross the $5 billion mark. Apart from Bangladesh and Vietnam, some African nations such as Ethiopia are also emerging as major apparel exporters to the US and EU, as they have the capacity to manufacture garments at a lower cost while meeting the necessary sustainability standards demanded by US and EU retailers.

Kitex has been allotting regular capex for improvement of technology and infrastructure and is in the process of upgrading its current facilities so as to expand its capacity. Kitex, based in Kochi, is a manufacturer of specialized infant apparels. Its products are sold in over 18 countries. The key market for the company is the US followed by Europe.

The facility at Kochi covers an area of 1,80,768 sq.ft. The process line is equipped with a digital dispenser system for error-free, automatic and computer-controlled preparation of color guidelines, high quality knitting machines, modern dyeing, printing and finishing systems that use cutting-edge technology. Its garmenting unit uses the latest machinery for pattern computer-aided design, plotting and grading. It has automatic spreader machines which enhance the speed of spreading and automated cutting machines for faster and precision cutting.

Kitex has a daily capacity to manufacture 3,60,000 units of infant garments. Having an integrated and traceable value chain which meets global standards at various stages of the product supply chain is the key global differentiator at Kitex. The company buys yarns, dyestuffs and chemicals from approved sources. The dye recipes, dye dispensing and yarn dyeing are done using robotic technology for accuracy and quality.

A recently released apparel trade statistics by OTEXA indicates, India will surpass both Bangladesh and Vietnam in next six months to become the second largest kidswear supplier to USA after China. India clocked in $157.86 million from kidswear exports to the US from January to October ’18, growing at 6.52 per cent.

In volume-terms, India saw a surge of 16.53 per cent and shipped 7.94 million kg worth of kidswear to the US market. During the 10-month period, US managed to grow only 1.33 per cent in volumes and 2.10 per cent in kidswear import values which are quite low as compared to India’s escalation in its respective export.

Simultaneously, all top Asian exporting nations fell in their respective value-wise exports in kidswear segment to the US. China, Bangladesh and Vietnam dwindled by 3.23 per cent, 2.50 per cent and 2.52 per cent respectively and the declining trend of these countries helped India capture shift especially from China which caters to 47 per cent of kidswear demand in US.

Markedly, India emerged as the only country which increased its value-wise share, while all other countries declined their share on y-o-y basis.

The 5th session of Spinexpo, to be held from January 16-17, 2019 in Paris, will focus on Organic Futurism. © Spinexpo. The theme will focus on how to use traditional materials more creatively thanks to new technologies that combine organic and synthetic materials to create more high-performance yarns. The fair will present a preview of its collections and color ranges for the Spring/Summer 2020 season. The key theme of the trends for the collection will be In Between. Buyers will be taken on an educational and entertaining tour of the challenges facing the profession today.

One of the new lines on show will be KnittingIndigo from the Taiwanese spinner AA Global, which is the result of more than 30 years of research.

Bangladesh has announced that inconsistencies in the newly announced wage structure for readymade garment workers would be solved after the national elections scheduled for December 30, 2018. State minister for labor Md Mujibul Haque urged all agitating workers at Ashulia, Gazipur and Narayangonj to join work as it would not be logical to create unrest in the RMG sector ahead of national elections.

The minister arranged the briefing following a meeting of Crisis Management Core Committee. Representatives from several ministries, Bangladesh Garment Manufacturers and Exporters Association, industrial police and other law enforcement agencies and labor leaders attended the meeting. He urged factory owners to give workers a clear idea about the new wage structure and requested them to develop relationship with the workers to avert any untoward situation.

Workers of many factories at Ashulia, Gazipur and Narayanganj started demonstrations on December 9 rejecting the new wage structure. The workers allege their basic wages in some grades in the new structure have been decreased from what they were previously.

The Bangladesh government has decided to reduce the rate of source tax on RMG export earnings by 58 per cent. Finance minister Abul Maal Abdul Muhith has already conveyed his consent to National Board of Revenue to reduce the source tax to 0.25 per cent from current 0.60 per cent.

Earlier, in September, the government had slashed the tax rate for RMG exporters to 0.60 per cent for the current fiscal year, following pressure from exporters, reducing from 1 per cent reinstated in the budget.

NBR would complete the procedures, including taking vetting from law ministry, to issue the statutory regulatory order reducing the rate to 0.25 per cent. As per Income Tax Ordinance-1984, exporters are supposed to pay 1 per cent tax at source on their export income. According to an NBR estimate, previous reduction in source tax may reduce its earnings from the sector by Tk 1,600 crore in the year. Now NBR will incur another Tk 1,400 crore for the fresh tax cut.

Denim trends for 2019 are expected to be shaped by consumers and the environment around them. While the connection between denim and politics ebbs and flows through history, the relationship is expected to pick up steam in the coming year as the next US presidential election nears and younger generations continue to find their voice.

A whole generation is getting into demonstrating and gaining a voice about what’s happening around the world. Millennials and Gen Z will likely follow in the footsteps of young generations from the ’60s and ’70s, which took bold actions to fight racism and injustice, fought for women’s rights and protested the Vietnam War. Their fashion will follow, too.

Flare and crop flare are gaining traction in the women’s market, while men’s is moving toward straight cuts with an exaggerated cuff. Bolder historic references come through in washes like acid, enzyme and tie-dye. Raw denim is shifting toward something that looks handmade and one-of-a-kind. This is an artisanal direction, which will challenge many companies, particularly those that manufacture on a large and cheap scale.

Fashion has become more democratic. People want something that doesn’t look mass produced. Social media will be the tool that helps keep luxury streetwear on the map in 2019 and beyond.