FW
"With the US President Trump imposing import duties on Indian products such as textiles, gems and jewellery, automotive, organic chemicals and pharmaceuticals, this could spell bad times especially for SMEs in the country. The impact could be huge, as the US accounts for nearly 16 per cent of India’s total exports. In 2017-18, India had a trade surplus of $21 billion with the US. The US’ industrial tariffs have fallen to close to zero after several rounds of trade liberalization. But on the other hand, India still continues to impose high import duty, which the Trump administration aims to stop. For instance, India has kept high tariffs on automobiles and motorcycles (60-75 per cent), alcoholic beverages (150 per cent) and textiles (some ad valorem equivalent rates exceed 300 per cent)."
With the US President Trump imposing import duties on Indian products such as textiles, gems and jewellery, automotive, organic chemicals and pharmaceuticals, this could spell bad times especially for SMEs in the country. The impact could be huge, as the US accounts for nearly 16 per cent of India’s total exports. In 2017-18, India had a trade surplus of $21 billion with the US. The US’ industrial tariffs have fallen to close to zero after several rounds of trade liberalization. But on the other hand, India still continues to impose high import duty, which the Trump administration aims to stop. For instance, India has kept high tariffs on automobiles and motorcycles (60-75 per cent), alcoholic beverages (150 per cent) and textiles (some ad valorem equivalent rates exceed 300 per cent).
As per latest WTO data, in 2015 India’s average bound tariff rate was 48.5 per cent, while its simple ‘most favoured nation’ average applied tariff was 13.4 per cent. The US claims because of this, exporters face tremendous uncertainty as India has considerable flexibility to change tariff rates at any time. During the G7 Summit, Trump had said the US is like the piggybank that everybody is robbing. He made it clear that his tariff grievances went beyond developed economies. He especially mentioned India, which he said imposed prohibitively high tariffs on US products like Harley Davidson motorcycles.
The entire situation has made it worrisome for Indian garment exporters. Currently, the US import duty on
garment import varies from 8 to 28 per cent. In comparison, India imposes customs duty on garment imports at a flat rate of 32 per cent. India’s garment exports in 2017-18 were 11 per cent lower than the preceding year. This declining trend has continued in the current fiscal. As much as 30 per cent of India’s garment exports go to the US.
Tough task
And to take control of the situation, the Trump administration has ordered a review of India’s compliance with 15 conditions outlined by the Congress for availing concession tariffs in the US market under Generalised System of Preferences (GPS). These tariff concessions are critically important for Indian SMEs exporting to the US. The Indian government has urged before the GSP subcommittee, which is conducting a review of India’s eligibility and will decide if the country is providing ‘equitable and reasonable’ market access as a quid pro for GSP benefits. But the chances of getting preference are meagre. In fact, commerce minister Suresh Prabhu met the US secretary of commerce Wilbur Ross and US Trade Representative Robert E Lighthizer to resolve issues. The easy access that Indian exports have traditionally enjoyed in the US market could be a thing of the past, if the Modi government does not handle Trump’s demand on reciprocity in bilateral trade relations.
A new report suggests the environmental impact of an item's journey continues to go unnoticed as consumers race to buy now and buy more. Efforts to reduce water consumption for high-demand industrial processes have produced effective sustainability initiatives with innovative technologies that reduce the environmental impact of many industrial processes.
Nearly 26 billion pounds of clothing and textiles still pile up in landfills each year 95 per cent of which could be reused or recycled. A micromarketing viewpoint, involving different actors in society, is essential in order to make consumption more sustainable and for finding long-term solutions. Around 53 per cent of North Americans donate clothing and household goods when they feel they have accumulated too much clutter. Physical reminders, such as running out of closet space, also tend to inspire action.
The report also stated about 32 per cent give their friends and family first pick of their unwanted items and 13 per cent sell them via consignment or online marketplaces. While more people are donating or finding other uses for unwanted items, only 40 per cent purchase pre-owned goods at least once every few months, and 60 per cent of North Americans are shopping thrift once a year or less. For more people to bring reuse full circle, more convenient solutions are needed, such as, more convenient donation location and more organised thrift experience. This year's report illustrates key motivators for reuse as well as the opportunity for further education on the impact of clothing waste.
Canada’s Liberal government has introduced a legislation to ratify a free trade deal with 10 other Pacific nations that would grant Canada preferential access to some of the biggest and fastest-growing economies in the Asia-Pacific region. According to Global Affairs Canada the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will create a free trade zone covering a market of 500 million people with a combined GDP of $13.5 trillion. In 2017, Canada's merchandise trade with the 10 other CPTPP countries amounted to more than $95 billion.
The original 12-member Trans-Pacific Partnership (TPP) deal negotiated by the previous Conservative government was thrown into limbo early last year when U.S. President Donald Trump withdrew from the agreement to prioritise protecting American jobs.
However, the remaining 11 member countries led by Japan, finalised a revised trade pact in January. It was eventually signed by representatives of all member countries on March 8, in Santiago, Chile. The agreement will enter into force 60 days after at least six of the partner countries complete their respective ratification procedures.
The 7th edition of HGH India 2018, the annual trade show for home textiles, home decor, gifts and houseware is scheduled from July 3 to 5 at Bombay Exhibition Centre, Goregaon, Mumbai. The show is especially designed to connect Indian and international brands, manufacturers, exporters, importers, distributors and suppliers in this segment to the rapidly growing Indian market for home products and gifts. The exhibition will see 100 international exhibitors from 30 countries showcasing their products.
Arun Roongta, Managing Director of HGH India says over the past six years HGH India has emerged as an important trade show in the B2B segment. It has compelled around 70 exporters is to introduce their products in the Indian market. According to Arun Roongta HGH India, has encouraged more exporters to realise the potential of the Indian market that would help in establishing long-term business partners.
The show held annually in the first week of July in Mumbai every year is expecting 35 per cent increase in the number of exhibitors to 600. Out of this 100 will be from outside, representing 30 countries. The Indian participation is from 470 towns and cities across the country with maximum participation from Maharashtra.
Heimtextil & Ambiente will be held in New Delhi from June 27 to 29, 2018. The fair will bring together top manufacturers and suppliers of home textile and interior décor industry with more than 100 companies participating from India, China, Indonesia, Switzerland and Thailand.
The Indian edition of these globally renowned fair will not only present business to domestic buying agents but also a plethora of modern design concepts, native décor themes, art, color trends and fresh business ideas through a host of supplementary events. From themed exhibits to inspiring product designs, seminar sessions and experience zones, the platform will offer a quality experience in terms of business and industry networking. A series of trendsetting features will create a buzz among architects, interior designers, retailers, home stylists and design experts.
Innovative concepts in interior spaces will be showcased at a special zone through a design face-off between product and textile designers. Finalists from Delhi, Mumbai, Bangalore, Ahmedabad, Jaipur in the age group 20 to 50 will showcase concepts on the theme of My Heritage, My New Age India. Winners will represent India at Ambiente Frankfurt & Heimtextil Frankfurt next year. First look and season’s new collections will be launched by leading brands like D’décor, Reliance, Aditya Birla, Hira Hastkala, R. R International, Manorama.
In the first quarter of 2018, Vietnam’s exports of yarns and fibers were up 14.2 per cent in volume and 17.3 per cent in value compared with the same period last year. Two thirds of yarn produced in Vietnam is for export. Yarn and fiber exports performed well in the early months of 2018, especially to the US, Korea and India. Prior to 2000, the domestic fiber sector had only one million spindles but since then, fiber production expanded to 3.7 million spindles in 2007 and is seven million spindles at present.
Vietnam’s fiber sector can take advantage of new-generation free trade agreements to develop further. Under such agreements with Korea and Vietnam, import taxes applied to Vietnamese fiber have been reduced to zero per cent. Vietnam is seen as an ideal destination for foreign-invested spinning projects. Korea, China and Hong Kong are leading investors of spinning factories in Vietnam. Japan also outsources yarn products to Vietnam.
In 2017, Vietnam exported 7,00,000 tons of fiber and yarn to China. Yarn and fiber exports are forecast to reach about $3.9 billion in 2018 compared with $3.59 billion dollars in 2017. As a leading yarn and fiber exporter, the Century Synthetic Fiber Corporation has recorded high export growth in the past two years.
Japan-based Toray Industries, has opened a new textile and apparel development base. This will strengthen Toray’s system to conduct consistent and comprehensive research from textiles to apparel as well as product developments. Besides expanding the functions of artificial weather room, new biomechanics evaluation and analysis equipment has been introduced.
The development base also has a textile library and a showroom for materials and products. The company has newly introduced a fabric appearance simulation system that reproduces a 3D structure of woven or knitted fabrics from fabric design databases and data on the physical properties of yarns, and a system that simulates wearing a garment by calculating clothing pressure, etc. based on fabric data and information on the human body and clothing.
An open laboratory has also been set up, which will promote joint research and development with apparel and textile firms and other business partners. The new artificial weather room can freely set the temperature between minus 30°C and 60°C, humidity between 20 per cent and 80 per cent, wind speeds between 0 and 30 meters per second, rainfalls between 0 and 200 mm per hour, and solar radiation between 0 and 1.16 kW, reproducing various weather conditions such as the cryogenic low-humidity environment in Antarctica or the Arctic and sudden downpours.
Colombia has formally requested for permission to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), says Mexico’s Economy Minister Ildefonso Guajardo. The South American nation has formally notified New Zealand, the depositary of the 11-national deal, of its interest in joining the agreement once it comes into force.
The CPTPP has replaced the Trans-Pacific Partnership (TPP), which was thrown into question early last year when U.S. President Donald Trump withdrew from the deal after his inauguration. The CPTPP comprises: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The United States withdrew from the deal as one of President Donald Trump’s first acts, but has in recent months discussed a return. Prime Minister Malcolm Turnbull stated that the United Kingdom had also shown real interest in joining the deal once Brexit was finalised.
ThreadSol has entered into a partnership with garment manufacturers in Thailand. The partnership will present innovative tech into Thailand’s readymade garment sector. Since the market is increasingly competitive manufacturers need to be prepared to adapt to the changes, for instance, fashion trends, cost, and technology. ThreadSol provides a solution which can help manufacturers save costs for raw material purchasing by at least ten per cent.
Big Data and Internet of Things based mobility can aid manufacturers in reducing costs and boosting revenue. The driving force behind all ThreadSol products is technology disruption for the apparel industry. ThreadSol has solutions for fabric cutting and fabric procurement. IntelloCut is an AI based fabric planning system. It impacts top line and enables manufacturers to cut more and ship more with the same fabric. IntelloBuy is a Big Data enabled fabric estimation system, which impacts the bottom line and enables manufacturers to buy less fabric at the booking stage.
A seminar was organized in Thailand for garment manufacturers on May 18. The theme of the seminar was digitisation of the Thai garment industry. The driving force behind all ThreadSol products is technology disruption for the apparel industry. Technology that is being actively used in all spheres of life like Artificial Intelligence and Big Data analytics will be made available for the apparel industry.
China is Australia’s largest wool customer, buying about 80 per cent of Australian wool. China has a vast appetite for Australian Merino wool. With increased affluence and a tendency towards leading healthier lifestyles, discerning Chinese consumers are now favoring natural, long-lasting garments, more so than following the latest trends perpetuated by fast fashion. Unemployment is low, salaries have been rising, and pension schemes have given people a greater security of income and more money to spend.
China’s wool imports have increased 4.5 per cent from the previous year. Domestic consumption of woolen products in China has grown dramatically in the last five years. If previously most processing was for export, today at least 50 per cent is for domestic use, and this is growing year by year.
Although wool only represents 15 per cent of fibers consumed in China, the volumes are so large that even 15 per cent represents a huge quantity of wool. Even in Mongolia, a remote part of the world, women wear woolen coats. In 2018, the Australian wool industry celebrates more than 50 years of a successful wool trade with China. Woolmark is marking more than half a century of a cross-cultural partnership between Australia and China.
