American business groups have urged the US not to impose more tariffs on necessary Chinese imports. They warn new duties would be harmful to US businesses, especially those that rely heavily on products that only China can provide.

The plastics industry has urged the administration not to push ahead with tariffs that target fluoropolymers, of which Teflon is an example, saying the new tariffs would cause severe and irreparable damage to the US fluoropolymer industry.

Such duties are expected to harm more than 4,000 businesses and jeopardise the tens of billions of dollars the industry contributes to the US economy. The chemical industry says its companies are reliant on imported products that only China offers.

Manufacturers say complex supply chains could take up to five years to rebuild if China was no longer a viable supplier. The US Chamber of Commerce has expressed its staunch opposition to tariff escalation, saying it would be US businesses and customers who would foot the bill of the hidden, regressive taxes. The body says the time is now for serious bilateral discussions that can identify solutions and forestall unintended impacts.

The US is willing to impose tariffs on all Chinese products imported to the United States, with the total value of goods targeted reaching 500 billion dollars.

The Brazilian Ambassador in Dhaka Mr Joao Tabajara de Oliveira Junior has said Brazil desires to boost bilateral trade and investment with Bangladesh; however intermediaries are the main problem to tap real gains of business by the entrepreneurs between the two friendly countries. The ambassador expressed his opinion during a courtesy meeting with Enayet Karim, President of the Global Economist Forum, a United Nations Consultant Organisation-working for the promotion of trade and investment, held yesterday at the Embassy of Brazil in the capital.

The ambassador revealed his plans to introduce more private sector entrepreneurs of the two countries to know the potential of each other and take trade and investment cooperation to a different height. Currently, the annual bilateral trade volume amounts to $1.3 billion with Brazil mostly exporting sugar and Bangladesh garment items.

The readymade garment industry of Bangladesh has transformed over the last five years. Global apparel brands and retailers are placing a higher volume of work orders to compliant factories in Bangladesh. Bangladesh’s overall apparel exports to the US rose by 3.76 per cent during January to May 2018.

Bangladesh is the fifth sourcing destination for US-based apparel and fashion companies in 2018 mainly because of the most competitive price it offers. Bangladesh was also the fifth sourcing hotspot in 2016.

Made in Bangladesh enjoys a prominent price advantage over many other Asian suppliers. In terms of sourcing cost, China scores 3 points, Vietnam 4 and Bangladesh 4.5. Companies are interested in expanding sourcing from Bangladesh in the next two years. They are actively seeking alternatives to Chinese and Vietnamese products.

Besides Vietnam and Bangladesh, buyers also plan to increase sourcing from India, Indonesia, Cambodia and Africa. Trade barriers as well as compliance with factory, social, and environmental standards are driving up sourcing costs this year. Labor cost remains the top factor driving up sourcing cost in 2018.

Wage levels are continuing to rise quickly in many Asian countries where US fashion companies primarily source, including China, Vietnam, Cambodia, Sri Lanka and Bangladesh.

Bangladesh emerged as the top trousers supplier to the European Union during January -April 2018. The country exported 147.63 million kg of trousers during the period accounting for 35 per cent of overall trousers imported by EU. Overall, the Union imported 420.91 kg up 9.53 per cent) of trousers worth € 6492.46 million with a marginal rise of 0.17 per cent during the January-April period.

Bangladesh too upped its shipment values by 1.73 per cent to the EU. This marked an impressive growth of 17.84 per cent on the yearly note in volume-terms. The growth is even more significant, as China, which once was the top exporter of trousers to EU, has become a laggard and Bangladesh has been able to occupy its position.

International Sourcing Expo will be held in Australia from November 20 to 22. It will host 700 textile, apparel and footwear manufacturers and agents from 16 countries.

This year’s show will feature a wider range of clothing and footwear. The trade-only show offers fashion buyers and designers the full spectrum of product and service offerings from off-the-shelf clothing through to made-to-order pieces, fabric and functional textiles.

Alongside all the fashion staples like jeans, active wear and T-shirts, International Sourcing Expo exhibitors surprised visitors with more upmarket fashion last year. The expo attracts sourcing managers for Australia’s large fashion retailers, niche fashion brands, online outlets and designers. This is for anyone looking to improve or diversify their supply chain and product offering, compare production capability and costs, produce their own label or start a new sourcing business.

International Sourcing Expo allows Australian fashion industry to visit 700 suppliers and see and feel the quality of the product first hand. Exhibitors are drawn from India, China, Bangladesh, Pakistan, Hong Kong, Fiji, Indonesia, Vietnam, South Africa, Taiwan, Turkey, Australia, South Korea, Malaysia and Singapore.

The expo is a sourcing event for members of Australia’s fashion trade but it’s also a fantastic networking event that gives locals an opportunity to rub shoulders with global leaders in the industry.

The 4th Africa Sourcing and Fashion Week (ASFW) will be held from October 1 -4, 2018 in Ethopia. The show will feature over 250 international manufacturers and exporters from 25 countries who will showcase their products and innovations to over 4.000 trade professionals and sourcing industry from around the world.

The show will also feature over 12 new South African manufacturers of leather products who will present their expertise and products to international fashion brands and buyers. The event will include the unique Walk for Business project that will connect over 25 high-end African designers from South, West and East Africa with international buyers and fashion brands for future collaboration.

The 4th ASFW Conference will be focus on ‘Sustainability in Production’ and ‘Transformation in Technology.’ A special conference on “Continental Free Trade in Africa” will also be held. In addition, an investment panel will highlight opportunities in Mauritius, Madagascar, Kenya and Ethiopia.

The event, endorsed by the Ethiopian government, will be organised in partnership with Messe Frankfurt Exhibition GmbH, Ethiopia Textile Development Institute (ETIDI) and Ethiopia Textile and Garment Manufacturers Association (ETGAMA).

"The global trade law for the 164 WTO members prohibits discrimination on the basis of tariffs. India raised basic customs duties on 43 broad categories of goods, including electronics, in this year’s Budget. It also raised import tariffs on 76 textile products and announced higher safeguard duties on solar cells imported from China and Malaysia. The tariff increases that India implemented so far are within the bound rates, unlike US President Donald Trump’s global tariffs on steel and aluminium as well as the ongoing tariff measures being taken by Washington DC and Beijing against each other."

By imposing retaliatory import duty, India can fall under the list of nations that have broken their commitments to WTO, say trade experts. The bound tariff rate is the customs duty rate committed by a country to all other members under the most favoured nation principle.

The global trade law for the 164 WTO members prohibits discrimination on the basis of tariffs. India raised basic customs duties on 43 broad categories of goods, including electronics, in this year’s Budget. It also raised import tariffs on 76 textile products and announced higher safeguard duties on solar cells imported from China and Malaysia. The tariff increases that India implemented so far are within the bound rates, unlike US President Donald Trump’s global tariffs on steel and aluminium as well as the ongoing tariff measures being taken by Washington DC and Beijing against each other.

Talking about India’s decision to increase duty rates, Biswajit Dhar, trade expert and professor at the Jawaharlal Nehru University says India had informed the WTO of its plan to raise tariffs through safeguards measures. But existing norms do not allow a country to take safeguard measures against just one nation, as India has done. The US has not respected the multilateral system recently, but if it feels that the tariffs are unjust, it should go to the WTO. In order to take control of the situation, a team of officials from India are camping in Washington DC, trying to secure an exemption from America’s aluminium duty hike, following which India may also roll back its own import hike.

Is trade deficit on course?

A recent WTO report said, India has implemented 28 reforms facilitating trade, much higher than the two taken by China. Between mid-October 2017 to mid-May 2018, India led the pack among G20 nations in imposing tariff increases, stricter customs procedures, imposition of taxes and export duties. Aditi Nayar, principal economist, ICRA, feels the current account deficit is likely to widen to $16-17 billion or around 2.5 per cent of GDP in Q1 FY2019, from $14 billion in Q1 FY2018, with higher crude oil prices negating the contraction in gold imports.

On the other hand, domestic industry across varied sectors such as steel, apparel and electronics has complained of foreign goods flooding the market. Sanjay Jain, Chairman, at Confederation of Indian Textile Industries points out a substantial drop in import duty was observed after implementation of GST, which has encouraged cheaper imports. Imports in 2017-18 grew at a rate of 16 per cent. Therefore, the decision to increase import duties on many apparel items comes as a relief.

"After opening up trade tariff war with China in recent times, the US textile industry has been witnessing growth waves lately. Aided by Trump’s US-friendly policies, companies are eyeing a fortune in business but it’s said that the industry requirements don’t end here as Michael Woody, CEO, Trans-Tex, a Rhode Island-based maker of lanyards and shoelaces says there is a need to bring in a level playing field and the government needs to put tariffs on end products too that are imported from China. But the other lobby suggests placing duties on finished items is anathema to US retailers and consumer brands that rely on Chinese goods, including $28bn worth of apparel last year, to keep prices low for shoppers. They say levies will only increase price tags, and ultimately cost jobs."

After opening up trade tariff war with China in recent times, the US textile industry has been witnessing growth waves lately. Aided by Trump’s US-friendly policies, companies are eyeing a fortune in business but it’s said that the industry requirements don’t end here as Michael Woody, CEO, Trans-Tex, a Rhode Island-based maker of lanyards and shoelaces says there is a need to bring in a level playing field and the government needs to put tariffs on end products too that are imported from China. But the other lobby suggests placing duties on finished items is anathema to US retailers and consumer brands that rely on Chinese goods, including $28bn worth of apparel last year, to keep prices low for shoppers. They say levies will only increase price tags, and ultimately cost jobs.

The Trump administration largely avoided hitting consumers in the first round with 25 per cent duties — mostly on machinery that came into effect from July 6, 2018. In return, China imposed retaliatory tariffs on goods from soybeans to electric vehicles (EVs), such as Teslas. The US again reciprocated with a proposal to put 10 per cent levies on $200bn worth of imports that included end products such as handbags, baseball gloves and air conditioners. According to Rick Helfenbein, President, American Apparel & Footwear Association this will not do anything to help American workers, consumers, or businesses. This will result in inflationary costs throughout the supply chain, ultimately to be paid by American consumers.

Textile advantage

More protections against Chinese imports could also boost production in American textile sector, if companies are looking for a green shoot, this could be an industry that could benefit. In 2017, the US imported $45bn textile products from China, and exported less than $1bn. That’s a trade gap of about $44bn just for textiles and apparel. Experts says, even a 10 per cent tariff, such as the one the Trump administration proposed recently, would help a company consider matching the Chinese more.

India’s garment exports have dipped for nine months in a row up to June. Apparel exports dropped almost four per cent in 2017-18 when the country’s overall goods exports jumped nearly 10 per cent. The contraction in exports has already stroked fears of job losses and compounded problems of policymakers who are contemplating how best to compensate textile and garment sector once subsidies to promote such exports are phased out.

Garment exporters are handicapped by duty disadvantage against key competitors like Bangladesh and Vietnam to key markets — the EU and the US — and high logistics costs. While Bangladesh ships out garments to the EU at zero duty, Indian companies are forced to cough up 9.6 per cent. India’s logistics costs account for as much as 15 per cent of consignment value against 10 per cent in many countries.

Under the Merchandise Exports from India Scheme, garments and made-ups exporters get duty exemption scrips, freely transferable for cash, worth four per cent of their total exports. But this supports seems inadequate. The cut in duty drawback and RoSL in the GST regime, capital blockage due to slow GST refunds initially and uncertainties on the future of export subsidies have affected the deeply-fragmented garment industry.

Texworld USA and Apparel Sourcing USA will organise the Summer 2018 speaker listing and educational seminar series. This season will include a multitude of themes including discussions on preferred fibers, sourcing, the upcoming Fall and Winter trends outlook and a movie screening of the movie RiverBlue

Texworld Showcase will highlight trends for the Autumn/Winter 2019/20 season, curated by Texworld Art Directors, Louis Gerin and Gregory Lamaud. Gerin and Lamaud will also present vignettes to be displayed in the SPOTLIGHT area of Apparel Sourcing which will feature ‘The Art of Customisation – Findings, Trims and Accessories’.

Jana Platina Phipps, a New York City-based expert known as the Trim Queen, will feature a trim activation. Known for her refined vision and impressive list of clients in the world of fashion and home furnishings, Jana will also conduct a hands-on passementerie workshop providing a brief history and how-to instructions for attendees.