Euratex has welcomed the EU-US Summit in Brussels, and hopes political leaders will launch a new era of closer cooperation across the Atlantic.

EU-US trade in textiles and apparel has dropped by nearly 20 per cent in 2020 (just under €6 billion), while imports from other countries, in particular China, have increased spectacularly. At the same time, global supply chains came under pressure, and access to certain raw materials for the industry became difficult and costly.

Against this background, Euratex called for a better functioning of global supply chains, with common rules which are applied by all. It urged EU and US authorities to put their full influence to establish a level playing field for the industry across the globe, promoting environmental and social standards. Sustainable and circular textiles should become the norm, thus contributing to a greener planet and creating high quality jobs.

At bilateral level, the EU and US should resume their work on mutual recognition of standards and certification procedures, thus saving considerable costs for companies while maintaining the highest safety standards, Dirk Vantyghem, Director General, Euratex said. Custom procedures can be simplified on both sides, and joint research, e.g. in smart textiles, should be promoted.

Euratex also welcomed the recent progress in provisionally eliminating additional duties on several American and European products due to the Airbus-Boeing trade dispute. It urged both US and EU institutions to eliminate such duties permanently and build on a common positive agenda for the benefit of EU and US companies and consumers.

Coloreel, a Swedish textile innovation brand, has developed a pioneering technology that enables high-quality digital dyeing of textile thread on-demand, creating sustainable and vivid fashion details. Coloreel began efforts to scale up the global presence last year, targeting a market valued over SEK 25 billion.

The unique solution makes previously complicated designs accessible, including gradients, textures and other stunning effects. Using only a single thread and needle means that it also significantly improves quality and efficiency, enabling immediate start up and faster delivery. In short, Coloreel empowers creativity and enhances quality and efficiency, making the ordinary extraordinary. In the future, the technology can also be used for sewing, knitting, weaving and more.

Coloreel is also part of the movement to reduce waste and move the textile industry towards more sustainable production. By coloring the thread directly, there is no wastewater, hence no water pollution. And, using a single reel of thread and needle also means minimized thread waste and minimized microfiber pollution.

The Council for the Development of Cambodia (CDC) has approved a trio of new garment projects. Together, these projects entail an investment of $14.9 million. They are anticipated to generate some 3,200 new jobs.

The first of these projects is the J.A.K Garment Co’s project to build a facility in Takhmao district, Kandal province with a capital investment of $2.4 million. The factory will employ 1,053 people. The second project by Premier Tech Garment (Cambodia) Co involves building a $4.3 million in Bati district with an investment of $4.3 million. The project is anticipated to create 748 new jobs.

The third project will be developed by Chanco Textiles (Cambodia) Co which will also build a factory in the capital’s Russey Keo district. A total of 424 new jobs will be generated to create bed sheets, pillowcases and other linens.

Ken Loo, Secretary-General, GMAC said, the new projects would help strengthen the Kingdom’s pillar industry, particularly after the disruption caused by the pandemic.

The recurring lockdowns in textile manufacturing states has started affecting small-scale weavers in the country. Especially affected are the weavers operating in Coimbatore and Tirrupur districts who are unable to supply cotton fabrics to Maharashtra, Gujarat, Rajasthan and Delhi, says Velusamy, a powerloom weaver at Palladam in Tiruppur district. This led to stocking of goods by suppliers.

Though the Northern and Western states have relaxed restrictions, industries in Coimbatore and Tiruppur districts are not permitted to operate. This prevents weavers from producing goods. It also impacts supply of yarn as the small-scale textile mills are shut. This is likely to lead to price fluctuations and disrupt business cycles, says Velusamy.

Textile mills in these districts supply part of the yarn produced to the weaving units in the State and the rest to Maharashtra. Though they have resume supplies, cotton prices have increased steeply in the last two weeks. Further, demand in Maharashtra has shot up. These factors are likely to result in a hike in yarn prices. While the larger mills have stocked cotton, the other mills, especially those in the small-scale sector are unable to buy cotton due to their high prices.

Fashion for Good has collaborated with key industry players to launch the Renewable Carbon Textile Project. The project, that aims to explore, test, and verify solutions in the PHA polymer space, will be developed in coloration with PVH Corp., Bestseller, Norrona, and the fabrics division of WL Gore & Associates. Laude’s Foundation will provide catalytic funding for the project while participating innovators Bio Craft Innovation (formerly Biomize), Full Cycle Bioplastics, and New light Technologies will provide insights to scale the industry in the long term.

PHA polymers offer a bio-based, marine, and soil compostable solution of polyester fibers derived from fossil fuels for the fashion industry.. PHAs are produced through the fermentation process using various renewable carbon-based feedstocks.

Katrin Ley, MD, Fashion for Good, opines, the industry needs to find replacements for the predominantly fossil-based fibers in the fashion industry through solutions such as biosynthetic from renewable sources. This project focuses on validating the technical feasibility of the output, working with the Nonwovens Innovation and Research Institute (NIRI) to run melt-spinning trials. Alongside the technical feasibility study, the Renewable Carbon Textiles Project includes a range of degradation tests that will be conducted by Organic Waste Systems.

Robert Young, Trustee, Philippine Exporters Confederation (PHILEXPORT) and President, Foreign Buyers Association of the Philippines (FOBAP) has urged the government to address the deteriorating shipping and logistics situation in the country. Young said, the domestic garment industry is losing millions of dollars due to supply chain squeeze. Exporters are facing transport issues, including vessel capacity constraints and surging freight prices, leading to cargo delays of two weeks to two months and revenue setbacks.

This is creating production issues in the country besides delaying shipments delays and restricting cash flow, Young added. Besides slow release of permits and import license, rising cost and shortage of raw materials, it is adding to manufacturing costs and leading to continuing loss of business in favor of Vietnam and Indonesia. Sergio Ortiz-Luis Jr President, PHILEXPORT urged the government and private sector to work closely together to effectively address the logistics constraints.

Although the group continues to be affected by COVID-led disruptions, H&M Grou’s sales have reached pre-pandemic levels in recent weeks. As per Women’s Wear Daily, sales surged 75 per cent in the second quarter ending May 21 up 35 per cent in local currencies for June 1 to 13 period compared to 2019, they surged by 2per cent.

The group’s quarterly sales figure fell slightly short of analyst expectations. However, as per analyst, progress achieved at the outset of the third quarter is ahead of consensus forecasts which helps it to maintain forecasts. H&M, which operates Cos, Monki, & Other Stories, Arket and Weekday in addition to H&M, has also been cutting costs and shedding jobs in Spain. The group has been renegotiating leases for retail network since the pandemic. Executives at the group are continuously evaluating the fleet of physical stores, even as they wait for customers to return. In recent years, the group has also been integrating digital shopping avenues with stores as a key priority.

Kevit Desai, Kenya’s Principal Secretary, East African Community (EAC) has urged partner states to explore export opportunities for raw cotton to the global market. As per All Africa report, the EAC region produces 100,000 metric tons of cotton, compared to its potential to produce 400,000 metric tons. It currently exports only 8 per cent of cotton to the world market, notes Dr Desai.

To boost exports, the region needs to promote the textile value chain. It needs to invest production of leather and textile goods and turn a crop like pyrethrum into aerosols, adds Desai. Desai, who is also the Chairperson of the Coordination Committee that brings together Permanent/Principal/Under Secretaries for EAC Affairs in the partner states, was addressing the media at the EAC Headquarters in Arusha. He says intra-EAC trade currently stands at only 15 per cent as compared to other regional economic communities like the European Union (EU) and the Southern African Development Community (SADC).

He emphasized on the need for greater aggregation and consolidation to increase the region's exports to external markets. EAC partner states should also create the necessary networks to promote collaboration, he says.

The combined operating revenues of major Chinese garment enterprises grew by 13.4 per cent year-on-year to 407.8 billion yuan in the first four months of this year, shows data from the Ministry of Industry and Technology. From January to April, total profits of 12,444 major garment firms increased by 37.9 per cent from a year ago to 18 billion yuan. The companies also witnessed a 23.87 per cent rise in their output to over 7.05 billion pieces during the period from a year ago.

China's online apparel retail sales grew 33.8 per cent year on year in the first four months, while the garment exports soared by 51.7 per cent year on year to $44.4 billion. China is the largest producer and exporter of textiles and apparel in the world. Textile exports increased 30.4 per cent in 2020, boosted by the demand for face masks and personal protective equipment (PPE) in the wake of the Covid-19 pandemic. Its closest rival, the European Union economic bloc, exports only 75 per cent of that, with regional competitors exporting far less.

In 2019, China was the top ranked global clothing exporter with a share of approximately 30.8 per cent, followed by the European Union (27.6 per cent), Bangladesh (6.8 per cent) and Vietnam (6.2 per cent).

Pakistan’s textile exporters say the Federal Budget 2021-22 fails to meet expectations as it does not restore zero rating of GST, reduce withholding tax rate to 0.5 per cent or suspend EDF surcharge. Jawed Bilwani, Chairman, Pakistan Apparel Forum; Jawed Tariq Munir, Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) South and North Zone; Rafiq Godil, Chairman, Pakistan Knitwear and Sweater Exporters Association Chairman, etc say imposition of 17 per cent GST has made textile exporters, especially SMEs financially unviable due to stuck up liquidity. The tax has made it difficult for them to fulfill export commitments, pay utilities and salaries to staff and workers, and to clinch new export orders.

Exporters had requested the government to reduce and fix tariff for electricity, indigenous gas and RLNG, which they complained had not been addressed. They say though the government has allocated Rs 20 billion for DLTL scheme, cases amounting to Rs 32 billion were pending with the State Bank of Pakistan. They had requested the government to increase allocation to Rs 75 billion for clearance of backlog and new DDT / DLTL claims.

They also opposed raising sales tax on import of plant and machinery from 10 per cent to 17 per cent. They are against the introduction of new 203(A) section to arrest and prosecute according to which the Federal Board of Revenue (FBR) would have the power to arrest on their discretion.