The European Commission (EU) has supported US Treasury Secretary Janet Yellen’s demand for a global minimum corporate tax. However, she said its rate should be decided after talks in the Organization for Economic Cooperation and Development (OECD). Yellen is currently working with G20 countries to agree on a global corporate minimum tax rate.

The US plan envisages a 21 per cent minimum corporate tax rate, coupled with eliminating exemptions on income from countries that do not enact a minimum tax to discourage the shifting of jobs and profits overseas. The OECD has long been working on two-tier global taxation scheme that would tax companies where they make profits even if they do not have a physical presence there.

The second tier of the OECD scheme aims to establish a global minimum tax rate, which could apply to all companies, not only digital ones, so that governments do not compete with each other offering lower taxes to attract large multinational firms.

The EU's attempts to unify even what companies are taxed on, rather than setting a common tax rate, have been stalled since 2011 because taxation is a jealously guarded prerogative of national parliaments and often forms a key part of a country's economic model.

Spanish brand Mango aims to make its apparel range 100 per cent sustainable by 2020. Around 79 per cent of the brand’s garments are known to be sustainable. In 2017, Mango launched a range of sustainable garments known as ‘Mango Committed.’ Initially conceived as a capsule collection, the range has subsequently become a part of Mango’s permanent collection.

Mango is also expanding its ‘Second Chances’ clothes recycling project in collaboration with Moda re-, an initiative set up in Spain by Caritas. Last year, Mango operated 610 recycling points in its stores across 11 countries. In 2021, the label plans to extend this service to countries like Austria, Italy, Poland, Turkey, Switzerland and Russia, adding a further 200 collection points for used garments.

The label is also collaborating with Spanish association Vellmarí, headed by biologist and explorer Manu San Félix, which runs conservation and educational programs on the Mediterranean sea from its base on the island of Formentera. Mango is working with its Turkey-based suppliers to replace plastic bags in its packaging with paper bags. In 2020, Mango committed to initiate a process that will eventually lead it to stop using as many as 160 million plastic bags per year, and is set to extend the initiative in other countries in the coming months.

Thirteen associations representing garment suppliers in China, Bangladesh, Myanmar, Cambodia, Vietnam, Pakistan, Turkey, Morocco and Indonesia have collaborated to renegotiate their contract terms with global clothing retailers, reports Reuters. These suppliers are demanding a maximum 90-day payment term and an end to discounts after orders are placed. The draft document, due to be finalized and released in late April, is a joint initiative of the Star Network, funded by Germany's international development agency GIZ, and the International Apparel Federation.

The suppliers hope their united front will prevent retailers from playing them off against each other in search of more lenient terms after suffering from widespread cancellations and payment delays at the start of the coronavirus pandemic. Though the document will not be legally enforceable, the aim is to foster purchasing practices which "do not cross the boundary of misuse of buying power to the obvious and avoidable detriment of the manufacturer," according to the release.

A later phase of the initiative would also aim to build ways of enforcing the terms, including an international arbitration mechanism for manufacturers to raise grievances with buyers. The draft document says retailers must pay suppliers within 90 days, with deferred payments attracting an additional fee to cover interest and loss of profit, while discounts could not be requested after a purchase order is issued.

The draft also includes limitations on the use of the 'force majeure' clause which exempts retailers from costs and liability for events outside their control.

Experts believe the boycott of cotton sourced from Northwest China's Xinjiang Uygur autonomous region will severely harm the global industrial and supply chain, especially as the world economy has not yet recovered from the impact of the pandemic Global supply chain curbs on Xinjiang cotton will harm not only the global textile industrial system but also the interests of global consumers.

Mei Xinyu, Researcher, Chinese Academy of International Trade and Economic Cooperation, believes the boycott is interfering with normal order of the industry and the market, which will increase costs and severely impact the global market. Official data showed China produced around 5.95 million metric tons of cotton during the 2020-21 season, while its total demand reached 7.8 million tons during the same period.

Yang Shu, Associate Professor, China Agricultural University says, the boycott will affect the development of both China's textile industry and international trade, and it will also impact employment in Xinjiang. On the other hand, Kong Xiangzhi, Professor, School of Agricultural Economics and Rural Development, Renmin University of China, the boycott of Xinjiang cotton will not affect its long-term development, as it will propel domestic enterprises to gear up to expand and lead up to a decision to compete with its foreign rivals.

The FY20 Q4 sales of Chico's FAS, a US-based omnichannel specialty retailer of women's private branded, casual-to-dressy clothing, declined 26.7 per cent to $386.2 million compared to $527.1 million in the same period prior fiscal. The company incurred a net loss of $79.1 million. The company’s gross margin for the quarter declined to $73.3 million from $171.4 million reported during the same quarter in previous fiscal. Its selling, general and administrative expenses declined to $136.2 million from $176.9 million. The company’s loss from operations increased to $64.0 million from $5.6 million.

Sales of Chico’s brand slipped to $161.1 million from $249.6 million. Sales of its House Black Market brand dropped to $106.0 million while those of Soma brand fell to $119.0 million.

The company is reinvigorating growth through new initiatives that emphasize loyalty, community and design. Its White House Black Market brand is focusing on fabric, fit and fashion that meets its customer’s needs.

As against the entire world, COVID-19 has proved to be a blessing in disguise for the Pakistan textile sector. The country has not only received backlogged orders but also orders diverted from other regional countries like India and Bangladesh. As per Business Recorder, against 5.6 per cent growth recorded during the same period last year, Pakistan’s textile exports increased by 8.2 per cent year on year during the first seven months of FY21. The industry attributes this to the growth in exports of value-added products particularly bedwear, home textile, and knitwear. During the period, Pakistan’s knitwear exports grew by 42 per cent year-on-year, while the export revenue generated from this segment grew 19 per cent year-on-year.

Volume declines but revenues surge

Pakistan’s bedwear exports declined 3 per cent during the seven months. However, the revenue generated from these exports grew 16 per cent year-on-year due to the higher pricing of these products. Towels exports grew 11 per cent and export revenues grew 20 per cent year-on-year. Revenues from RMG exports grew by 5.5 per cent though their export volume declined 39 per cent year-on-year.

During 1HFY21, profits from Pakistan’s textile sector grew by 30 per cent year-on-year primarily on account of increase in exports. However, experts expect this growth to slowdown in the next few months. In January 2021, textile exports from Pakistan declined 5.5 per cent as against December 2020. Cotton cloth and yarn exports also declined both on a monthly and yearly basis.

Role of regional players critical

Though manufacturers claim to have enough orders to keep their factories running at full capacity till June 2021, growth in export depends on how regional players process these orders once their factories begin operating at full capacities. Textile manufacturers are also facing a shortage of local yarn, which can impact their exports in coming months.

Hence, the government needs to introduce a textile policy that focuses on high value-added segments such as the readymade garments sector. Fawad Anwar, Managing Director, Al-Karam Textile Mills, believes the garment sector has a capacity to grow quickly due to its low capex requirement and inclusion of both small and medium players in it.

With order cancellations and payment deferrals becoming the order of the day during the pandemic, factory owners started laying off workers without paying even their due wages. As per an Al Jazeera report, some of these workers hail from countries that do not offer social security. In February 2020, a garment factory in a Southeast Asian country failed to pay workers as Chinese suppliers cancelled a pre-confirmed order.

Taking a view of this, the International Organization of Employers (IOE) along with International Trade Union Confederation (ITUC) and IndustriALL Global Union launched an initiative known as Call to Action (CtA) with support from the International Labour Organization (ILO).

An excuse for inaction

The initiative has so far attracted 130 industry stakeholders, of whom two-thirds are brands and retailers. The CtA aims to protect garment workers and manufacturers from the economic fallout of the pandemic and create a sustainable protection system for them. Though a welcome move, the initiative is now being used by some brands as an excuse for their inaction. Michael Levine, Vice President and Chief Sustainability Officer, Under Armour warns such brands, being a signatory of the CIA does not absolve these brands from their accountability to workers, he says.

From the beginning, the CtA working group has been focusing only on eight priority countries: Bangladesh, Cambodia, Ethiopia, Haiti, India, Indonesia, Myanmar and Pakistan. Countries like the Philippines, Sri Lanka and Vietnam, which are experiencing mass lay-offs, are being ignored. Also, the agreement fails to prioritize countries in which brands like Primark manufacture their garments.

Wage assurance scheme for workers

Even in countries prioritized by the agreement, its implementation is painstakingly slow. For instance, the European Union and the German government announced a $135 million fund to Bangladesh in October last year. However, the commitment is yet to be fulfilled with Bangladesh has so far received only $2.15 million funds from the initiative.

As a result, less than 2,000 workers have received direct income support. These workers are owned at least $3 billion alone for March to June 2020 period. They need immediate support from both factory owners and the government. Trade unions and labor rights organizations have been demanding pubic commitment from these brands to pay their workers and support them in case of job losses.

Brands need to stop using such initiatives to back out of their commitment towards workers. They need to set up wage assurance and severance guarantee fund to help build a better future for the industry.

Speciality chemicals company Clariant has officially joined the EU Circular Plastics Alliance which aims to enhance plastics recycling in line with the objectives of the EU Circular Economy Action Plan and the Green Deal programme.

Clariant’s engagement is part of the company’s active support for the transition towards a more circular plastics economy.

Clariant is committed to the Alliance’s goal to boost the EU market for recycled plastics to 10 million tons by 2025. The company’s focus is on addressing the obstacles that are hampering a higher circularity of products within the plastics value chain, in line with the waste hierarchy principles. The company’s strategy is based on a smart combination of design for reduction, recycling, and reuse options, as well as solutions for mechanical or chemical recycling.

In 2019, Clariant established EcoCircle, a company-wide initiative that goes beyond a product focus, looking at the entire value chain, identifying the most sustainable and viable solutions for a circular plastics economy.

Pakistan and Germany have signed an agreement to improve labor, social and environmental standards in the Pakistan’s textile industry.

Germany would provide GIZ up-to €7,500,000 as German contribution for three years, according to Pakistani media reports.

The project aims to increase value-addition and competitiveness, and foster innovation by synergising the environmental, social and economic dimension of sustainability in the textiles and apparel industry. It will support digitalization of labor and human resource department’s (LHRD) downstream institutions like Punjab Employees Social Security Institution (PESSI), formulation and implementation of measures to ensure sustainable production, transform 15-20 companies that made use of good environmental practices, innovative technologies or labour standards to move to higher value addition or enter new markets, and initiate two campaigns on occupational safety and health (OSH), particularly for small and medium enterprises, to achieve international certification in labour and environmental standards.

French accessories brand Ceriz has launched its spring-summer collection of shoes and handbags. As per Fashion Network, the brand has roped in Bollywood actor Sara Ali Khan as its brand ambassador for the collection.

The brand is actively promoting its new collection through social media platforms to engage with the millennials and strengthen its customer base.

Sara Ali Khan says, the collection truly embodies her personal sense of style- practical and comfortable. It also enables her to effortlessly glamorous.. The line has launched in multi-brand stores across India including Shoppers Stop, Central, Brand Factory, and Pantaloons, etc. Ceriz’s main retail footprints are in cities including Mumbai, Delhi-NCR, Pune, Bengaluru, Kolkata, and Hyderabad

The collection will also be available on e-commerce websites including, Muntra, Tata Cliq, Nykaa Fashion, Amazon, Flipkart, and Ajio.