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Proposal to raise import tax on apparel could hit Kenya's textile industry hard
Kenya's textile industry is set to face a severe blow after a proposal by the East African Sectoral Council to move tax paid on imported apparel to the highest band under the Common External Tariff (CET) in a bid to boost local production.
The council, which is responsible for investment and trade in the region, aims to promote cotton production within the region and reduce reliance on imports that have hindered the growth of the industry.
Currently, Kenya produces less than 12 million square metres of woven fabric per year, while the market demand stands at approximately 171 million square metres, making it a net importer of both cotton and textiles. The council's proposal would raise the duty levied on textiles under CET to 35 percent, the highest tax band under the East African Community.
The council's recommendation came during its 38th extraordinary meeting in Tanzania, where it also called for the expansion of harmonised cotton, textiles, and apparel articles under duty remission to enhance trade among member states.
The council urged member states to establish a digital platform to facilitate the exchange of information on cotton harvesting and trade to boost intra-regional trade on the products.
Fashion brands join consortium to prototype revolutionary sustainable material, boosting sustainability
A revolutionary prototype of materials has been developed by Kintra Fibre, that is comparable to traditional polyester, but with a softer feel and an inherent stretch quality that makes it comfortable to wear.
The material has undergone testing for durability and strength, and yarn test results have indicated a stretch recovery of 10-15%. This new development has caught the attention of leading fashion industry players such as Bestseller, Inditex, and Reformation, who have formed a consortium with Kintra and Fashion for Good to prototype applications using this sustainable material.
Each brand in the consortium will select a unique application that meets its design and sustainability requirements. This collaboration aims to reduce the environmental impact of the synthetic fibre market. Kintra Fibers has also received $8m in Series A funding, led by H&M Group, to expand its resin and yarn production capacity to meet the demand from its brand partners.
Fashion for Good is overseeing the project and is committed to supporting Kintra's efforts to develop sustainable materials and processes.
The initiative is a significant step towards a more sustainable future for the fashion industry.
Experts highlight challenges textile industry faces in Pakistan's economy at EconFest
Pakistan's declining economy was the concern due to imports exceeding exports, and the government's inconsistent policies are directly impacting the textile industry in a session, during first-ever event Economy Festival (EconFest) in Lahore.
The two-day event featured over 100 distinguished speakers who discussed real issues affecting Pakistan's economy in 34 sessions.
One of the sessions focused on sustainable growth and the role of the textile sector in Pakistan's economy. During the session, various topics were discussed, including Pakistan's productivity challenges, agricultural productivity, and the challenge of climate change. Speakers also highlighted the textile industry's importance in the country's economy and its declining sustainable growth due to political instability and inefficient policies.
It was urged that the government should provide support to the textile industry in the form of Regional Competitive Energy Tariff (RCETs) instead of 6% duty drawbacks on exports and local taxes, the government's provision of an RCET of 7.5 cents to the textile industry resulted in an investment of $5 billion, and the textile exports rose from $12.3 billion to $19.3 billion in 2022. However, the RCET was withdrawn, resulting in the textile exports declining to $1.2 billion a month.
Pakistan needs to keep its exchange rate in line with the demand and supply of dollars, as devaluing the currency would bring imported inflation, leading to high-interest rates, a major hurdle for the government.
The Pakistan Institute of Development Economics (PIDE), in partnership with the Research for Social Transformation & Advancement (RASTA) program and the Pakistan Society of Development Economists (PSDE) organised the event.
First-ever quality regulations for technical textiles introduced in India
The Indian government has introduced Quality Control Orders (QCOs) for 31 technical textile items to bring the country's textile industry up to par with developed nations.
The QCOs will ensure that both domestic and foreign manufacturers meet conformity assessment requirements specified in these orders, and they will come into effect 180 days after the announcement. The list of items includes 19 geotextiles and 12 protective textiles that are widely used in various industries. This marks the first time that such regulations have been introduced for the technical textiles industry.
The QCOs aim to provide the best value to users and end consumers and foster Indian product quality while protecting against sub-standard imports. However, the World Trade Organisation has termed QCOs a trade barrier. Despite this, no objections were raised by any member countries for QCOs on these 31 items. The domestic industry may face initial hiccups, but the measures will eventually benefit the industry.
The Ministry of Textiles plans to issue QCOs for over 30 additional technical textile items in Phase III. The QCOs will not be mandatory for all products, such as sanitary napkins and diapers.
The Ministry is taking steps to promote the work of Self-Help Groups on the ground where information and awareness about these products is already low. However, those who want to opt for better standards in these two products may choose from brands selling these items on whom the QCOs will apply.
Innovations in Merino wool to boost demand in sports and outdoor markets
The Woolmark Company is focusing on increasing the demand for Australian Merino wool in sports and outdoor markets.
Collaborating with leading manufacturers and brands, many collections are now incorporating wool, and there is significant potential for growth.
The world's largest sports and outdoor trade show, ISPO in Munich, has been a key opportunity for The Woolmark Company to engage with brands in this sector. The Woolmark Company's promoted the natural benefits of Australian wool, with productive meetings with leading brands. The company showcased its latest wool innovations, including seamless and flat knitting technologies and hybrid garments.
The Wool Lab sourcing guide's 'Endurance' theme was launched at the event, featuring wool swatches for brands and retail buying teams to view.
At the event, sustainability and innovation were top topics, and wool is ideal for brands seeking to produce clothing that has minimal environmental impact.
Chinese growing demand for Pak’s cotton trousers drives exports
Pakistan's men's trouser exports to China have emerged as the driving force behind a surge in garment exports, which rose by 36% to $4.36 million in the first two months of 2023, according to the Pakistan Embassy in Beijing.
The country's robust manufacturing capabilities and high-quality garments have made them a popular choice for Chinese companies seeking competitive prices. Pakistani men's trousers of cotton emerged as the top product, with exports worth $2.57 million, a significant increase from the $1.27 million recorded in the same period last year.
In 2022, the annual exports of Pakistani men's garments to China were $28.66 million, up by 33% from the previous year's figure of $21.62 million. The top item in this category remained men's or boys' trousers of cotton, worth $17.94 million, which highlights the growing demand for these products among Chinese consumers.
In addition to trousers, Pakistan's T-shirt exports to China also witnessed impressive growth, with a 106% increase compared to the same period in 2022, reaching $5.53 million.
Pakistan's exports to China crossed $446 million in the first two months of 2023, signaling a positive trend in trade relations between the two countries.
Textile, garment exports from Vietnam hit 2009-like lows
Textile and garment exports from Vietnam dropped by 17% in the first quarter of 2023, reaching $7.1 billion. This is the deepest decline in the first quarter since 2009
The drop is due to the impact of global inflation on consumer spending on non-essential products, causing a sharp drop in textile and garment exports to major markets such as the U.S. and EU.
Moreover, the domestic textile and garment industry is expected to see further declines in export growth this year due to shrinking export orders and factories operating at below capacity. The conflict between Russia and Ukraine, pandemic, financial market instability, and a banking crisis have also affected demand.
In response to this downturn, textile and garment enterprises in Vietnam need to diversify markets, products and brands produced in Vietnam, use green and recycled products, and have infrastructure investment plans and in-depth strategies to meet the requirements of foreign markets.
Moreover, they need to build connection channels to grasp the challenges and opportunities of the global textile industry, digital technology trends and new policies.
Report shows 22% YoY drop in Cambodia's garment exports in first quarter of 2023
Cambodia's international trade during the first quarter of 2023 has seen a decline of 14.5% to $11.25 billion, according to a report by the General Department of Customs and Excise.
The report highlighted that the country's total export, valued at $5.39 billion, fell 5.7% YoY, while the total import, registered at $5.86 billion, dropped 21.3%.
Cambodia's garment, footwear, and travel goods industry, the largest foreign exchange earner for the country, recorded a 22% YoY decrease in exports, falling from $3.12 billion in Q1 2022 to $2.42 billion this year.
This sector employs about 750,000 workers, mostly female, across 1,100 factories and branches. The government expressed its concern about the global economic situation, particularly in the US and Europe, adding that declining income in those countries is affecting purchase orders, causing a ripple effect on the global economy through inflation.
Women's fashion drives growth in global cashmere market
The global market for cashmere clothing is expected to experience a steady growth rate of 4.2% CAGR during the forecast period, rising from a value of USD 3.20 billion in 2022 to USD 3.33 billion in 2023, before reaching USD 4.44 billion in 2030, according to a report by Fortune Business Insights.
The women's demographic has the highest market share due to the variety of designs and garment choices available to them. Offline distribution channels hold the larger market share as luxury clothing consumers prefer to inspect the product’s quality and authenticity before purchase.
The COVID-19 pandemic caused a steep decline in market growth due to the shift in consumer demand from luxury products to essential commodities.
The European region has the largest market share, followed by North America. The production of cashmere yarns is expensive, and the supply of raw materials is limited, which can impede market development.
T&A imports to US plummet 28.3% YoY in Feb 2023
The United States witnessed a significant decline in textile and apparel imports in February 2023, reaching a new low since June 2020. The import volume of textiles and apparel stood at 5.78 billion square meters, representing a 28.3% decline year-on-year and a 15.3% decline month-on-month. The import value amounted to $7.99 billion, reflecting a 20.1% YoY and 16.8% MoM decrease.
The decrease in imports can be attributed to the high inflation and living costs that have limited people's spending on non-essential consumer goods such as clothing. Furthermore, the stocks of U.S. textile and apparel companies were already high, resulting in lower imports of these products.
China's share of U.S. apparel imports has been decreasing and was below 40% since November 2021. In February, the total amount of textile and apparel imported from China was 1.98 billion square meters, reflecting a 31% YoY decline, and a value of $1.71 billion, down 33.2% YoY.
The imports of apparel from China stood at 560 million square meters, indicating a 41.2% YoY decrease, with a value of $1.09 billion, reflecting a 35.4% YoY decline.












