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Allow use of imported fabrics or textiles under GSP+ Scheme, urges DTI
At a webinar organized by the Philippine Exporters Confederation Inc, the Department of Trade and Industry (DTI) said it plans to urge European Union to allow Philippine garment exporters use imported fabric or textiles under the bloc’s Generalized Scheme of Preferences Plus. As per a Phil Star report, the GSP+ scheme allows duty free export of 6,274 products from the Philippines to the EU if these products originate from the country.
For Philippine garment exports to qualify for the zero duty, the country needs to use locally made fabric or textiles. However, Philippine garment exporters face difficulty in complying with the requirement due to limited sources of raw materials, says Allan Geply, Trade Assistant Secretary, Philippine Exporters Confederation Inc.
Most raw materials are being sourced from China which do not qualify under GSP+, he adds. He urged the Union to amend this rule. Robert Young, President, Foreign Buyers Association of the Philippines (FOBAP) said, the amendment would enable the country to ship $100 million worth of additional exports to the EU. DTI also plans to push for a free trade agreement (FTA) with the EU.
COVID-19 to impact Indonesia’s clothing and textile exports
COVID-19 is likely to lead to a decline in Indonesia’s clothing and textile exports during the first seven months of this year. As per Indo Textiles, Indonesia exports around 70 per cent to the United States, the European Union and the Middle East. In 2019, it exported clothing and fabrics worth $9,172.36 million Last year, the value of its exports fell 15.94 per cent year-on-year to $ 7,709.94 million due to the pandemic. It is expected to fall 6.72 per cent over the January-July 2021 period.
Since January 1 this year, Indonesia has implemented the Omnibus Law to create new jobs, increase investment, reduce taxes, simplify licensing procedures, and renew the ease of doing business for both domestic and foreign producers. Recently, the Indonesian Trade Promotion Center (ITPC) collaborated with the Indonesian Embassy in Mexico to boost home décor and textile exports to Mexico. The collaboration covers the Balinese clothing and textile market, as well as Indonesian furniture in Mexico.
The Indonesian textile and clothing industry employs about 600,000 workers. In recent years, around 20 per cent factories shifted production from West Java to Central Java due to lower labor costs. However, efficiency is much lower in Central Java compared to Jakarta and its surroundings in West Java.
Benin’s cotton exports to surge by 74% during January-August 2021
South Africa’s largest cotton producer Benin’s exports are expected to surge 74.73 per cent during January-August 2021. As per reports, the South African country is likely to benefit from President Patrice Talon's re-election for the second term this month, and China's help to Beninese farmers in improving their farm productivity.
In 2019, Benin exported $144.39 million worth of cotton with monthly average of $12.03 million. Last year, its exports declined by 63.21 per cent year-on-year to $53.12 million as COVID-19 restriction hampered trade. The country is improving its bilateral trade relations with China which is supporting it to improve cotton productivity. Some agricultural operators in Benin have joined a one-month training session on Chinese expertise in farm machinery operation.
Transport ban adding to Bangladesh garment workers’ woes
The ban on public transport is forcing may garment workers in Bangladesh to either walk long distances or pay many times the normal fare to travel to work. As per Thomson Reuters reports, Bangladeshi authorities have failed to provide transport facilities to garment workers. Workers are also being forced to work in unhygienic factory conditions, allege Kalpona Akter, Founder, Bangladesh Centre for Worker Solidarity union.
However, most workers were pleased with their factories being exempted from the curbs after their earnings were hit by closures during Bangladesh’s previous lockdown. The garment sector was hit hard last year as clothing brands shut shops due to the pandemic and cancelled orders worth millions of dollars.
Although the industry has seen a recovery, the future is uncertain as European countries impose fresh curbs.
Pakistan exporters say yarn imports will not ensure sustainable supply of raw materials
Pakistan’s value-added sector has warned importing duty-free cotton yarn from India will not ensure a sustainable supply of key raw materials. The government recently waived customs duty on cotton yarn but refused to allow imports from India. This facility is available till June 2021. Javed Bilwani, Chairman, Pakistan Apparel Forum said, any import or export of consignments takes two to three months as most ports are facing severe congestions
Another exporter Aamir Aziz said, shipping lines have also increased their freight charges five to six times and even then take too much time to ship the goods. Recent data shows export growth is the result of at least two months before production and shipment and the impact of shortage of cotton yarn is likely to be felt in the next few months, he added
Yarn Expo fairs rescheduled
Following the Spring Edition of Yarn Expo at the National Exhibition and Convention Center (Shanghai), the next editions’ dates have now been revealed. Yarn Expo Autumn will take place at the same venue from August 25-27, 2021 and Yarn Expo Shenzhen will be held at the Shenzhen World Exhibition and Convention Center from November 03-05, 2021.
Attracting leading fibre and yarn suppliers as well as quality buyers with the fairs’ wide range of products, the three editions of Yarn Expo will cater to the recovering industry by offering a year-round meeting place for the sector to come together to recharge their businesses.
Last year, Yarn Expo Autumn was one of the first yarn and fibre trade fairs to take place as scheduled since the pandemic outbreak. Participants reflected on the effectiveness of a physical trade fair to facilitate business recovery.
PRGMEA welcome withdrawal of customs duty on yarn imports
Pakistan Readymade Garments Manufacturers and Exporters Association(PRGMEA) has welcomed the withdrawal of customs duty on import of cotton yarn by the Economic Coordination Committee (ECC) of the Cabinet in order to ensure smooth supply of it to the value-added industry.
Sohail Sheikh, Central Chairman, said that the government’s earlier decision of withdrawing five per cent regulatory duty in December 2020 on the import of cotton yarn and now removal of customs duty will greatly support the textile sector and contribute to the country’s economic stability.
The decision would provide some cushion to the apparel sector, which is suffering a huge shortage of industry raw material, observed Ijaz Khokhar, Chief Coordinator. He asked the government to extend this relaxation of customs duty on yarn import till the country is capable of meeting textile value-added industry’s demand of 10 million cotton bales.
PRGMEA also reiterated its demand to the Prime Minister to pass directives for the forensic audit of the yarn producers to break cartel of cotton mafia. They demanded serious steps to break the textile industry cartel, giving it a strong message that no cartelization would be allowed to manipulate prices in future and if they commit such crime they have to face the full brunt of la
RSWM hailed for highest export turnover in 2020
LNJ Bhilwara Group Company RSWM has been praised by the ministry of industries and Government of Rajasthan for achieving the highest export turnover in 2020. RSWM is listed on both Indian stock exchanges—the NSE and the BSE.
Riju Jhunjhunwala, Chairman and Managing Director, RSWM says, this achievement reaffirms the company’s commitment to the growth of its stakeholders, employees, the state of Rajasthan and Indian economy.
RSWM is one of the largest manufacturers and exporters of synthetic and blended spun yarns from India and exports to 78 countries. The company has 10 state-of-the-art manufacturing plants, 441,000 spindles, 10,000 (MT/annum) cotton fibre dyeing capacity, 4,000 (MT/annum) yarn dyeing capacity and denim manufacturing capacity of 25 million meters annually.
Field to Closet launches new initiative to promote cotton scrubs
An initiative from Field to Closet is making the concept of American grown and made, 100 percent cotton scrubs a reality.
To highlight the initiative, the kickoff event took place April 9 at the Georgia Museum of Agriculture in Tifton, Ga., and will culminate this summer with 15 hospitals in rural Georgia receiving medical scrubs at no cost. Ga. Gov. Brian Kemp attended the kickoff event.
Through innovative, collaborative partnerships, this project utilizes Georgia-grown cotton from Deltapine® seed to reshore American manufacturing by revitalizing an end-to-end U.S. supply chain. The initiative's foundation is rooted in agriculture and establishes a Farmer GiveBack program to address a fundamental issue in the garment industry, which typically sees the brand or end seller with the most significant profit.
The GiveBack program recognizes the rebirth of a robust cotton garment industry isn't possible without the grower; therefore, this initiative is designed to ensure the grower is included financially by sharing in the profit of the goods sold.
For the initial project, Field to Closet worked with America Knits in Swainsboro, Ga., to source Deltapine seed cotton grown in Georgia, which is spun into yarn at Parkdale Mills in Rabun Gap, Ga., and woven into fabric in Lilesville, N.C., at Hornwood, before arriving at America Knits for the final production of the scrubs. An additional benefit for the medical scrubs, this fabric is treated with PROTX2® AV. This antimicrobial technology inhibits the growth of bacteria and has been shown in lab tests to destroy viruses.
COVID-19 leads to the rise of discreet luxury fashion in China
The pandemic has created immense opportunities for Chinese luxury fashion with European brands opening new stores, expanding digital operations and boosting e-commerce activities in the country. According to Maura Maggioni, CEO-Asia Pacific, Golden Goose, China houses the entire world’s purchasing capacity. A Jing Daily report says, for years, American companies looked at China as a land of opportunity. However now, Chinese consumers are moving away from American brands. This is evident from an AlixPartners survey which notes, 57 per cent consumers’ plan to reduce their expenditure on American products in future.
Quarantine fashion gains popularity
COVID-19 has also made quarantine fashion mainstream with retail segments like loungewear, athleisure and work from home
clothes gaining more popularity. The pandemic has led to rise of new trends like Do-it-Yourself (DIY) beauty, skincare, and at-home wellness McKinsey & Company draws attention to the growing popularity of ‘above-the-mask treatments’ and eye-cosmetics. The Taobao Live sessions, that presented live makeup tutorials while wearing masks, have increased the monthly sales of eye shadow palettes.
Chinese consumers’ desire for sustainability, equality, peace, and justice too has increased. Around 60 per cent Gen Z consumers and millennials are trying to reduce the impact of their eating habits on the environment, says a survey by McKinsey & Company. Around 50 per cent are also opting for locally sourced products.
Discreet luxury on the rise
There is also a growing demand for understated and stylish luxury products in the country, says Martin Roll, Business and Brand Strategist. The pandemic has altered consumption patterns with consumers moving towards a more mature and discrete form of luxury. Luxury products are being looked at as future investments, making it necessary for brands to emphasize on their quality rather than volume.
Luxury heritage brands also need to create a strong resale strategy like Richemont which recently acquired Watchfinder or Burberry which partnered with The RealReal. Another golden opportunity for Chinese luxury brands is to expand their stores in Hainan and other duty-free channels.












