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Thursday, 16 April 2020 10:00

Industry bodies urge brands to pay suppliers

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Industry bodies across the world are urging brands to honor their commitments to suppliers. Prominent among these are nine business associations in the STAR (Sustainable Textile of Asian Region) Network are calling on buyers to honor their contracts with their suppliers.

The joint statement was issued by the Garment Manufacturers Association in Cambodia (GMAC), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), China National Textile and Apparel Council (CNTAC), Myanmar Garment Manufacturers Association (MGMA), Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Pakistan Textile Exporters Association (PTEA), Towel Manufacturers Association of Pakistan (TMA) and Vietnam Textile and Garment Association (VITAS).

These industry bodies have called for brands and retailers to take delivery and pay under already agreed terms for goods completed or already in production. They also listed a series of requests to buyers including to honor contracts, take responsibility for orders already completed or in production, offer compensation for cancelled or delayed orders, and not to pressure suppliers into mothballing orders.

UK-based fair trade watchdog Traidcraft Exchange has also asked brands and retailers to honour their contracts with suppliers from “poorer countries” over the COVID-19 outbreak. Remake non-profit has launched a petition, entitled #Payup, urging brands and retailers to continue paying factory workers in their supply chains amid the COVID-19 crisis.