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The Preferential Trade Agreement (PTA) between India and Chile has been expanded. This will facilitate exporters of both sides to take advantage of tariff concessions as per the expanded PTA, which covers around 96 per cent of bilateral trade.
Chile is the fourth largest trading partner of India in the LAC (Latin America and Caribbean) region after Brazil, Venezuela and Argentina. The expanded PTA would immensely benefit both sides as a wide array of concessions has been offered by both sides on a number of tariff lines which will facilitate more two way trade.
India and Chile had earlier signed a PTA in 2006. This had a limited number of tariff lines where both sides had extended tariff concessions to each other. India’s offer list to Chile consisted of only 178 tariff lines whereas Chile’s offer list to India contained 296 tariff lines at the eight-digit level.
The expanded PTA has a wider coverage wherein Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30 to 100 per cent and India has offered concessions to Chile on 1031 tariff lines at the eight-digit level with MoP ranging from 10 to 100 per cent.
H&M has become the first international fashion retailer to join EP100, the global initiative that encourages businesses to double their energy productivity as part of international efforts to transition to a net-zero economy.
EP100 was launched in 2016. By doubling the economic output from every unit of energy consumed, companies set a bold target, demonstrating climate leadership while reaping the benefits of lower energy costs. H&M will support reductions of greenhouse gases. Two of its key priorities are leadership in energy productivity and using renewable energy throughout the value chain.
By 2030, H&M plans to build future stores using 40 per cent less energy per square meter, compared to those constructed today. Within its stores, the retailer aims to invest in new technologies for lighting, heating, ventilation and air conditioning systems to improve its operational energy productivity.
Additionally, H&M aims to have 100 per cent of its supplier partners enrolled in an energy efficiency program by 2025, as well as reduce the energy used in its logistics transport and warehouses. Major businesses such as Woolworths, Land Securities, Dalmia Cement, Swiss Re, and Johnson Controls are already part of EP100. H&M’s initiative is expected to inspire other companies across sectors to embrace energy productivity initiatives, to align economic growth with environmental sustainability.
"Targeting exports worth $30 billion by 2025, Ethiopia is on course to creating a boom in the textile industry. The country’s annual shipments currently value at $115 million. And Arkebe Oqubay, Minister and Special Advisor to Prime Minister Hailemariam Desalegn, shares the bold vision as he believes will transform this East African nation into a compelling new sourcing hub for brands, retailers and their suppliers. By 2025, Ethiopia is aiming to be a leading apparel and textile manufacturing hub in Africa capable of exporting up to $30 billion, says Arkebe."
Targeting exports worth $30 billion by 2025, Ethiopia is on course to creating a boom in the textile industry. The country’s annual shipments currently value at $115 million. And Arkebe Oqubay, Minister and Special Advisor to Prime Minister Hailemariam Desalegn, shares the bold vision as he believes will transform this East African nation into a compelling new sourcing hub for brands, retailers and their suppliers. By 2025, Ethiopia is aiming to be a leading apparel and textile manufacturing hub in Africa capable of exporting up to $30 billion, says Arkebe.
With annual clothing exports of $73,25 million in 2015, there’s no doubt the country does indeed have a massive battle on its hands. Its goal represents a 300-fold rise in shipments in just eight years. Looked at another way, Ethiopia’s combined textile and clothing exports of $114,8 million are just a fraction of the revenues of companies like TAL Apparel ($850 million) and Arvind ($770 million), who are in the process of setting up production facilities in the country.
The country aims to build a sustainable, fully vertical supply chain from scratch and leading players from across the industry are flocking to the country. According to Arkebe, until 2010, the prime focus was agriculture, and even in the last five years it has been in transition. But now the country has accorded high priority to apparel and textiles.
Investor-friendly haven
Ethiopia scores well in political stability, macro-economic stability, competitive labour that can help reduce production costs, competitive and efficient energy. The country has invested in long-term infrastructure and in skills; it has more than 50 universities, and more than 1,300 technical schools to train operators and technicians. It is also the second largest electricity producer in sub-Saharan Africa, with a focus on renewable power generation from hydroelectric, wind and geothermal sources.
It enjoys duty-free privileges to the US and EU through AGOA (the African Growth and Opportunity Act) and the Everything But Arms (EBA) deal, as well as preferential duty treatment to markets such as China, India, Japan, Canada and Australia. For investors, favourable benefits to attract clothing and textile companies looking to relocate their manufacturing bases to Africa include duty-free imports of machinery, spare parts and raw materials; along with zero tax on exports and exemptions from income tax for up to ten years.
Treading a tough growth path
Indeed it’s going to require a huge effort, and to achieve this, the country is working on multiple levels. Focus has been on attracting high quality investment from best-in-class buyers and suppliers who are interested to work on the long-term and also high value, rather than those only interested in cheap labour. Another key aspect is to establish specialised industrial parks built with highest international building, fire and electrical safety standards and also with sustainability at their core. Dedicated not only to clothing production but attracting the tier-II and tier-III fabric and fibre mills too, the goal is to ensure an environment where energy will not be a constraint, where transport and logistics will not be a constraint.
Creating a fully vertical supply chain from scratch, encompassing apparel sector, fabric and spinning mills and high quality cotton plantation. Just focusing on garment production would make it easy for companies to park and move to the next destination. Another key component in delivering speed is logistical efficiency. Being vertical is one way to be fast and flexible, but in the meantime, the inputs for apparel made in landlocked Ethiopia — and the finished products themselves — have to be transported by truck to and from the neighbouring Red Sea port of Djibouti, a process that is both slow and expensive.
The level of trust that has developed between the government and industry will certainly play a key role in helping reassure investors. It’s part of a wider and ongoing dialogue between the two sides. A common vision and approach doesn’t evolve by itself, so we argue, discuss, exchange ideas, and ultimately reach a good conclusion, Dr Arkebe explains.
"Taking a cue from Rana Plaza incident that occurred four years back in Bangladesh, clothing manufacturers have been showing signs of change when it comes to partner selection across the globe. The tragedy was marked as a wake-up call for the industry and a chance to improve the safety of global supply chains. More than 200 brands and retailers from Europe and the US signed legally binding agreements – the Bangladesh Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety."
Taking a cue from Rana Plaza incident that occurred four years back in Bangladesh, clothing manufacturers have been showing signs of change when it comes to partner selection across the globe. The tragedy was marked as a wake-up call for the industry and a chance to improve the safety of global supply chains. More than 200 brands and retailers from Europe and the US signed legally binding agreements – the Bangladesh Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety. They agreed to improve labour rights and safety standards, and collectively pledged $100 million to enforce the standards set by the Accord and the Alliance. Yet progress remains slow.
An investigation by NYU Stern Center for Business and Human Rights published last year revealed only 27 per cent Bangladeshi factories are covered by the initiatives, effectively excluding almost three million RMG workers from their protections. Campaigners are calling for further action from retailers and brands, including strengthening the Bangladesh Accord, points out Orsola de Castro, Founder and Creative Director of Fashion Revolution, a not-for-profit organisation that campaigns for reform in fashion industry.
Transparency the bedrock of reform
According to de Castro, the health and safety situation in Bangladesh is far from resolved. Workers in developing countries around the world continue to suffer huge abuse, and are not yet being paid a living wage or an adequate wage to support their families and live a dignified life. According to an H&M official, the first step has to be transparency. It means brands holding themselves and their suppliers accountable on issues such as human rights, fair jobs and environmental protection. The official says, they customers to know they do their best to ensure the fashion they offer has been made, transported and sold responsibly.
Retailers such as H&M have been releasing lists of their suppliers to enhance transparency in the system. The Fashion Transparency Index (FTI), Fashion Revolution’s annual report into companies’ commitment to cleaning up their supply chains, also marks progress in this area. The index ranks how much information 100 of the largest global fashion businesses disclose about their social and environmental policies, practices and impacts.
The second annual report was published last month and found 31 brands are now disclosing full lists of their direct suppliers – an increase from just five in 2016. However, publishing lists of suppliers reflects just how much brands need to do to ensure fair practice throughout their supply chains. Most have hundreds of suppliers spanning several continents, and ensuring high ethical standards across all is surely difficult.
Concerns about sustainability
Indeed textile production uses enormous amounts of chemicals and factory run-off leads to water pollution. This has raised serious concerns about sustainability. Top global brands such as Stella McCartney and Nike have been voicing their concern and investing significantly in tracking and improving their environmental impact. Gap has also committed to reducing its environmental impact, by taking steps to obtain 100 per cent of its cotton from sustainable sources by 2021. Gap’s chief product officer, Wendi Goldman says it is an opportunity to make a big impact on the global cotton community, and bring to light what’s so incredibly important to the future of garment manufacturing.
The fact one can’t ignore is that today’s fashion industry has to pay the price for years of inadequate regulation, inconsistent compliance and opaque systems that hide traceability and accountability. The huge size of the industry, which is worth $2.4 trillion and employs millions of people, makes it difficult to unravel. There needs to be concerted efforts from governments, regulators, NGOs, trade bodies and factory owners, as well as consumers, brands and retailers to reap the fruits of labour.
Indonesia is encouraging its textile industry to be environment-friendly, since it’s necessary for business sustainability. The United States and Europe have strict standards and products containing hazardous chemicals are rejected.
Environment-friendly industries fall into several categories. First the industry does not pollute the environment of water, air, and soil. Second, the raw material can be recycled, re-used and is re-degradable. Third, the products used in production of finished products must be environmentally friendly. In addition, efficiency and effectiveness factor in energy use are also important factors.
The textile sector in Indonesia is expected to grow seven per cent this year. The country is looking to a relaxation of import duties in the US for goods exported from Indonesia.
In addition, rules for imports of textile and textile products have been tightened. And results are visible. Import of fabrics as a raw material for garments fell by 33 per cent in the first quarter of 2017. The aim is to discourage fabric imports to push up domestic fabric production. The textile and garment industry is one of Indonesia’s oldest industries and the country makes up about two per cent of the global textile market. Although Indonesia produces cotton, textile manufacturers prefer to import cotton because the quality of foreign cotton is much higher.
Invista has purchased Cone Denim’s and ITG’s dual core patent portfolio.
International Textile Group (ITG) is the parent company of Core Denim.
The patent estate covers a broad variety of dual core yarns, fabrics, and garments made from those fabrics, which are sold in the US, China, and most recently, Europe. The purchase is effective immediately.
Invista was a pioneer in the development of dual core technology with its Lycra Dual FX fabric concept, first introduced commercially in 2010. The Dual FX technology encompasses stretch fabrics made with two stretch fibers – Lycra and Lycra T400 fibers – in a single yarn.
Cone will collaborate with Invista to provide a global platform to take this technology to the next level and will continue to produce yarns and fabrics made with Sgene technology under a license from Invista.
Invista, based in the US, is one of the world’s largest integrated producers of chemical intermediates, polymers and fibers. Its leading brands are Lycra, Coolmax, Cordura, Stainmaster and Antron.
The company’s advantaged technologies for nylon, spandex and polyester are used to produce clothing, carpet, car parts and countless other everyday products.
Cone Denim delivers expertise and denim capabilities that service and inspire the global market. It offers unique collections of Selvage, Performance, Stretch and Natural Indigo denims.
Levi’s has unveiled a collaborative capsule of the classic trucker jackets with men’s brand Ovadia & Sons. The assortment only consist of three styles and one of them has already been spotted on well-known music producer Jay-Z during his ongoing 4:44 tour. The jacket that Jay-Z wore was custom made by repaired vintage Levi’s denim for the artist as a teaser and had embroidered words saying Carter on the chest and Blue, Rumi, and Sir on the interior.
The styles look vintage with all of them being denim-on-denim patchwork with two of the looks sporting red and monochrome plaid patches. The Sherpa fabric lined products are slated for an official public release on January 25, 2018, at Levi’s own store in SoHo as well as on Ovadia & Sons’ website. Apart from this, the limited edition jackets that cost $595 a piece will also be available at multi-brand store Fred Segal in West Hollywood, California.
The Brooklyn-based brothers Messrs Ariel and Shimon Ovadia, who founded the brand in 2011, picked out this specific silhouette from an archive of about 50,000 vintage Levi’s pieces.
Woolmark has partnered with Australian shopping centre Westfield to put the spotlight on wool this winter’s retail season. Australian wool is the star in a curated selection of winter accessories, boots, denim and apparel. The campaign supports local retailers, starring wool in a curated selection of winter accessories, boots, denim and apparel, and celebrates Australian merino wool, the growers who produce the fiber and the designers who use it.
Westfield and Woolmark are telling the farm to fashion wool story, recognising people who produce one of the most important fibers for fashion worldwide. The campaign gives customers inspiration on how to integrate wool into their new season wardrobe, alongside a wide range of winter footwear, accessories and apparel from a number of Australia’s favorite brands, all available at Westfield.
The initiative champions the eco-credentials of fiber and says it is the perfect choice for today’s conscious consumer and that, natural or biodegradable, wool provides the global apparel industry with the most renewable, recyclable and reusable fiber on the planet.
The event is not only an engaging way for consumers to experience the natural attributes and luxuriousness of Australian merino wool, it also offers Australian woolgrowers a window into the commercial aspect of the fiber they work hard to produce.
The EU has granted Sri Lanka the GSP facility. This will allow Lanka to export its products tax-free to the European market. The country became eligible for GSP Plus after it ratified and implemented measures relating to human and labor rights, environment protection and good governance. The EU had withdrawn this facility in 2010 due to the poor human rights record of the country. Sri Lanka then applied for GSP Plus in July 2016.
The EU is Sri Lanka's biggest export market accounting for nearly one-third of Sri Lanka's global exports. In 2015, total bilateral trade amounted to euro 4.7 billion. EU imports from Sri Lanka amounted to euro 2.6 billion and consisted mainly of textiles as well as rubber products and machinery. Lanka will also get additional trade preferences.
The EU aims to support Sri Lanka’s economic growth by launching a series of initiatives which includes support to design and implement a coherent trade strategy for export competitiveness. While the UK is currently an important market for Sri Lanka, with Brexit becoming a reality, Sri Lanka will immensely benefit if it also focuses attention on accessing non-traditional markets among the EU countries. This will not only cushion the potential negative impact of Brexit on Sri Lanka but will also help contribute towards the country’s target of doubling its export revenues.
Circular Fibers is an industry-wide initiative to build a new global textile system based on the principles of the circular economy. The initiative has been launched by Ellen MacArthur Foundation. Circular Fibers brings together key industry stakeholders, such as H&M and Nike, to collectively define a vision for a new system that benefits businesses and citizens, and also phases out negative impacts such as waste and pollution.
The project will encourage businesses to shift away from the current take, make and dispose model, which puts high demand on land, energy and other resources. It aims at catalysing change across the industry by creating an ambitious, fact-based vision for a new global textile system, underpinned by circular economy principles, that has economic, environmental, and social benefits, and can operate successfully in the long term.
Textiles play an important role in the global economy. But a growing trend in consumerism has led to an inefficient waste and resource management system. In the US, for example, an estimated 85 per cent of clothing waste ends up in landfills.
Circular Fibers will provide an analysis of the textile industry. It will look at what a new circular economy for textiles could look like, and lay out the steps needed to build it.
