Euratex, the European textile and apparel federation, has launched a joint initiative with its members to upcycle textile waste and circular materials all over Europe. The federation aims to create five hubs, known as ReHubs, to process textile waste and become European coordination centres.

To be set up near European textile and apparel districts, these ReHubs will offer the benefit of circular economy by upcycling textile wastes, as a completely new, coordinated, large-scale management of material-streams.

The Hubs’ capacity to treat large volumes will create economies of scale, justifying the costs of existing recycling technologies as well as investments into new ones, such as chemical & thermal/melt recycling. This will generate new raw materials for the textile value chains, which is mostly made of SMEs (fiber-to-fiber closed loop), and for symbiosis with other European industries (e.g. automotive or other industries).

The ReHubs will enable the creation of a new European market of secondary raw materials saving additional waste-related costs. They will create and spread knowledge on products’ recyclability and product design for a better cooperation between makers and buyers across the industry value chain.

The ReHubs will not only tackle the issue of landfill and incineration, but also will build an opportunity for Europe to strengthen its autonomy for raw materials and provide a healthy recycling ecosystem across Europe. The ReHubs will create new green jobs. Estimates indicate that around 20 jobs could be created for every 1000 tons of textiles collected, sorted and recycled, ultimately creating up to 120.000 jobs in the European Union.

On Sunday, November 15, China and 14 other countries virtually signed the Regional Comprehensive Economic Partnership (RCEP), to create world’s largest trading bloc, encompassing nearly a third of all economic activity. The pact will cover 2.2 billion people with a combined GDP of $26.2 trillion. As per PwC estimates, the GDP of RCEP member states will be worth around $250 trillion by 2050. The new free trade bloc will be bigger than both the US-Mexico-Canada Agreement and the European Union.

RCEP is expected to boost partner economies by reducing tariffs, strengthening supply chains with defined rules of origin, and framing new e-commerce rules. The agreement benefits include tariff elimination by almost 92 per cent on traded goods among participating countries; stronger provisions to address non-tariff measures; enhancements in online consumer and personal information protection; transparency and paperless trading among others. It also includes simplified customs procedures with 65 per cent service sectors being fully open with increased foreign shareholding limits.

The RCEP comprises a diverse mix of developed, developing and least developed economies of the region with various cultural backgrounds and political systems. The deal includes several of the region's heavyweight economies including China, Japan and South Korea and partners like New Zealand, Australia, Indonesia, Thailand and Vietnam in Southeast Asia.

Asia, China become the centre point

Many in Asia are hoping this deal will hasten recovery from the shocks of the pandemic, as partner countries, said in a joint statement the deal "will play an important role in building the region's resilience through inclusive and sustainable post-pandemic economic recovery process.” In a written interview with Xinhua, Deng Xijun, Chinese ambassador to ASEAN noted, signing of the trade deal itself has given a strong shot in the arm to regional and global economic recovery and set an example on a global scale. "The fact that these diversified countries could unite and reach a pact, demonstrates the tremendous appeal of free trade and win-win cooperation," Deng said.

Others opined the deal was evidence of Asia's growing power. Asia keeps pushing ahead with trade liberalization even as other regions have become more skeptical. It may reinforce a trend that's been already underway for decades: that the global center of economic gravity keeps pushing relentlessly to the East.

In many ways, RCEP is a coup for China, the biggest market in the region with more than 1.3 billion people, allowing Beijing to cast itself as a “champion of globalisation and multilateral cooperation” giving it greater influence over rules governing regional trade, wrote Gareth Leather, Senior Asian Economist for Capital Economics, in a report.

US could swing the balance

The trade agreement was first proposed in 2012 as a way to create one of the world's largest free-trade zones. In 2017, prospective RCEP member states accounted for 3.4 billion people or 45 per cent of the world's population and about 40 per cent of world trade. The total gross domestic product (GDP) amounted to $49.5 trillion, and China, India made up more than half of it, surpassing the combined GDP of Trans-Pacific Partnership (TPP) members in 2007. However, with US’ withdrawal from TPP, the chances of RCEP’s success have increased many fold.

“Whether RCEP changes regional dynamics in favor of China depends on the US response” points out trade expert William Reinsch. If the US continues to ignore or bully the countries there, the influence pendulum will swing towards China, he feels. "If Biden has a credible plan to restore the US presence and influence in the region, then the pendulum could swing back our way."

Analysts, however are skeptical Biden will push hard to rejoin the trans-Pacific trade pact or to roll back many of the US trade sanctions imposed on China by the Trump administration. But given concerns about China’s growing influence, Biden is likely to seek greater engagement with Southeast Asia to protect US interests, believe trade experts.

India stays away but doors still open

The deal excludes India, which pulled out of the agreement last year over concerns about cheap Chinese goods entering the country. "It’s symbolic value has always exceeded its actual value," argues Reinsch. He pointed out that India’s opting out amounted to lessening the importance of the agreement in terms of actual trade.

While India had been involved in RCEP negotiations since 2013, it walked out of the pact citing “significant outstanding issues” that were unresolved by the deadline to enter the agreement. Key issues for India were related to safeguarding the country against China. Concerns include “inadequate” protection against surges in imports —as Indian industry fears signing the RCEP would allow cheaper products from China to “flood” domestic market. India had been seeking an auto-trigger mechanism through which it could raise tariffs on products in instances where imports crossed a certain threshold to counter this threat.

India had also sought more market access and raised issues of non-tariff barriers by countries like China that would prevent it from growing exports. India’s tough stand surprised participants late last year which later abandoned the agreement, over concerns about how RCEP would affect the livelihoods of Indians, particularly the most vulnerable. “The clause allowing India to join at a later date is symbolic and shows China’s desire to build economic bridges with the region’s third-largest economy,” Bloomberg quoted.

India, being an original negotiating participant of the RCEP, has the option of joining the agreement without having to wait for 18 months as stipulated for new members. RCEP signatory states say they plan to commence negotiations with India once it submits a request of its intention to join the pact “in writing”, and it may participate in meetings as an observer prior to accession.

A huge change awaits the British fashion industry as UK finally ends its 47-year membership of the European Union on January 1, 2021. For years, the fashion retail industry has lived with the uncertainty of how UK will fair after exiting the EU without a proper deal. Particularly vulnerable would be the British fashion industry, which employs over 890,000 people.

As per Drapers Online, a no-deal Brexit will result in UK exporting goods under the World Trade Organization rules. This could not only lessen their value but also end the competiveness of British brands in the European market, views Dimple Patel, Chief Operating Officer, Trouva, an online marketplace which sells clothing and homeware from over 450 bricks-and-mortar stores across the UK and Europe.

Brands may downplay their ‘Britishness’

Graham Allen, Head-Sales Marketing, Henri Lloyd feels, whether fashion sales drop post Brexit will depend entirely on future negotiations between the UK government and the EU. In a worst case scenario, it could lead to more trade barriers, increase in prices, lower margins and temporary delays at ports. William Church, Co-Managing Director, British footwear brand Cheaney Shoes, thinks it could damage the attractiveness of ‘Made in Britain labels in key European markets. Consumers and retailers could also banish British brands with the US hampering the prospects of a future UK-China deal. Brands could also downplay their Britishness and dissociate themselves with the ‘Made in Britain’ label.

However, few like menswear and accessories brand Sir Gordon Bennett affirm brands with a UK heritage will fare better than their younger counterparts. A longstanding brand will definitely be able to overcome these problems, believes Neil Elliot, Co-Founder of the brand. Brands that won’t be able to should focus on making the exclusivity their offering, adds Hayley Menzies, Founder and Owner of her eponymous British women’s wear label.

The British lure to continue

Barbara Beernaert, Owner, Gent, Belgium-based women’s wear says, though Brexit and its surrounding uncertainty is not helping EU retailers to collaborate with British brands, it is not stopping them either. At the same time some brands are avoiding starting new relationships with UK brands.

And while brands plan to absorb the additional costs of Brexit in their operations others aim to secure alternative distribution locations. The reason EU retailers are being cautious with UK brands is their lack of clarity as buyers. They hope things will normalize once business resumes as usual. And as experts point out, the ‘Made in Britain’ label will continue to lure customers despite a no deal Brexit threatening to damage the competitiveness of British brands in the EU market.

Luxury brand Moncler has been ranked as the Industry Leader of the ‘Textile, Apparel & Luxury Goods’ sector in the Dow Jones Sustainability Indices (DJSI) World and Europe.

It’s the second year in a row that the Italian firm has been recognized to receive the top spot in the DJSI category.

The DJSI is considered the “gold standard for corporate sustainability at a worldwide level and a trusted reference standard for investors who include sustainability considerations in the decision-making process of their investments.”

Moncler recently dropped its Born To Protect plan that focuses on five strategic drivers including climate action, the circular economy, fair sourcing, enhancing diversity, and giving back to local communities.

In July, the company signed a sustainability-linked revolving credit facility granted by IntesaSanpaolo with a reward mechanism linked to the achievement of environmental reduction targets.

Italian brand Carpisa has entered the Indian market with the opening of its first physical store at DLF Mall of India in the national capital New Delhi.

The brand plans to expand rapidly across North India in the coming months despite the economic disruptions caused by the Covid-19 pandemic. It is known for ts bags, small leather goods, luggage, briefcases, and accessories both for men and women. Established in 2001, Caprisa has a network of over 600 stores spread across over 40 countries.

Caprisa was launched in 2001 by a young and enterprising management team that bases its success on values such as close attention to the customer, team spirit, dynamism, research and development and competitiveness, showcasing Italian style and creativity.The brand’s collections, large and rich in ideas, created with Italian design, present an excellent value for money combination. They are aimed mainly at women between 20/45 years old, particularly attentive to new trends, but also at men, who are influenced by the most varied requirements.

While cotton prices continued to gain by 2-4 per cent month on month (MoM) in October on account of the resumption in demand from the casual wear, knitted and home textile segments, they were lower by about 5 per cent year on year (YoY), according to the October edition of India Ratings and Research’s (Ind-Ra) credit news digest on India’s textile sector.

With the United States Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) estimating a steady cotton production for the current season, it would lead to an oversupply in the Indian market, affecting prices further. However, the Cotton Corporation of India had taken steps to liquidate its inventory during July-September 2020 which would lead to a substantial lower inventory, Ind-Ra said.

Cotton yarn prices continued their recovery in October and remained stronger than blended yarn prices, on due to a higher demand from export markets. Large cotton spinners using the inventories purchased prior to COVID-19 have written-down/inventory losses during the second quarter (Q2) of this fiscal, which is likely to have affected the first half operating margins.

The smaller spinners, having lower cotton inventory and exposure into knitted casual wear, have reported a stellar performance for the second quarter over woven and blended segments.

Yarn exporters continued to witness an uptick in demand during August, with production resuming to pre-COVID levels and flattish on YoY levels. Yarn exports in tonnage terms grew by 38 per cent YoY during August.

Ind-Ra expects it to have improved further during September-October. The recovery in yarn demand with unlocking and resumption of production by mills in neighbouring countries would lead to a rise in shipments.

China has signed the Regional Comprehensive Economic Partnership (RCEP) deal that spans 15 countries and 2.2 billion people.

The deal includes several of the region's heaviest economic hitters aside from China, including Japan and South Korea. New Zealand and Australia are also partners, as are Indonesia, Thailand and Vietnam in Southeast Asia.

The trade agreement was first proposed in 2012 as a way to create one of the world's largest free-trade zones. The deal will play an important role in building the region's resilience through inclusive and sustainable post-pandemic economic recovery process. William Reinsch, a trade expert at the Center for Strategic and International Studies said, that the agreement could have consequences in the long term, and added that China's involvement is a sign of its willingness to play a constructive role, despite its aggressive actions in the South China Sea, Hong Kong, and elsewhere.

Others noted that the deal was further evidence of Asia's growing power. Economists at HSBC said that the agreement signals that Asia keeps pushing ahead with trade liberalization even as other regions have become more skeptical.

A BBC survey shows, Indian workers in factories supplying the supermarket chains Marks & Spencer, Tesco and Sainsbury's, and the fashion brand Ralph Lauren, are being subjected to exploitative conditions. Women working at a Ralph Lauren supplier reported being forced to stay overnight to complete orders, sometimes requiring them to sleep on factory floor. Similarly, workers at a supermarket supplier are been made to endure conditions which would be unacceptable for staff employed by the same brands in the UK.

The women working at these garment factories all live in poverty in a rural area of South India. According to charity organization Action Aid, forced overtime, verbal abuse and poor working conditions were routine at the factories in question. The three brands are all members of the Ethical Trading Initiative (ETI), and have signed up to its based cod which includes a pledge to ensure working hours are not excessive, overtime is voluntary and that workers are not subject to verbal abuse.

In a statement, Ralph Lauren said it was deeply concerned by the allegations put to the company by the BBC and would investigate. The factory supplying the fashion brand denied the staff members' allegations and said it was compliant with the law.

The three supermarket brands said they were working together to ensure the issues were remedied, in particular on excessive working hours. Sainsbury's said it was insisting on a number of actions the supplier must take in order for us to continue to work with them while Tesco said it plans to prohibit excessive overtime, strengthen grievance procedures and ensure workers were fully compensated at the correct rates for hours they've worked" Marks & Spencer said it plans to undertake regular unannounced audits to ensure its implementation.

As per ZimTrade, Zimbabwe’s clothing and textile exports declined 58 per cent decline to $17 million between January and August this year. Its clothing and textile exports had increased by $42 million during the same period last year. The country’s total exports increased to $2,56 billion between January and August 2020. Largest decline was noted in clothing and textile sector, whose exports declined to $17 million.

To increase sector competitiveness, ZimTrade recommends a coordinated approach to address the challenges faced by players in the sector. It advises the government to make production enablers such as water, energy and transport not only available but also affordable. ZimTrade is also developing export clusters in Matabeleland North and Mashonaland West to increase capacities among local sculptors. It has urged Zimbabwe’s diaspora community for support to create market linkages that would go a long way in boost exports from the sector.

The profits of most listed apparel companies in Bangladesh tumbled in July-September quarter due to the collapse in demand abroad amid the coronavirus pandemic. Fifteen of 39 textile and garment Dhaka Stock Exchange (DSE) listed companies who published their first quarterly financial reports, posted lower profits than in the same period a year ago. Nine of these companies made profits during the period while five companies extended their struggle to return to profits.

The woven sector received the major blow as the demand for formal shirts and apparel products dropped, said Anwar-Ul-Alam Chowdhury, Chairman, Evince Textile. Export earnings from the sector declined by 5.78 per cent to $3.88 billion in the July-September quarter, reveals data from the Export Promotion Bureau Of the total earnings , $4.46 billion came from knitwear shipment, which rose 7.04 per cent. Many retailers thought they would do good business during Christmas, the biggest spending season in the western world, but it might not happen because of the second wave. The textile sector performed worse than expected said Mir Ariful Islam, Head-Research, Prime Finance Asset Management Company.

Between July and September, the shipment of apparels grew 0.84 per cent year-on-year to $8.12 billion. Among the listed textile firms, 14 apparel companies incurred loss in the quarter, the highest ratio among all the industries..Safko Spinning was the biggest loser: its EPS was Tk 2.09 in the negative in the quarter, higher from Tk 1.62 in the negative in the first quarter of 2019-20.