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Dhaka is set to revive FTA with Ankara that was put on hold for months following a diplomatic stand -off due to war crimes trial. A Turkish delegation comprising officials from its Ministry of Economy is scheduled to visit Bangladesh in March to discuss the proposed pact.
As per a senior Bangladesh trade official said that Turkish officials had invited them to visit Ankara for the talks but it was decided to host this round of negotiation in Dhaka. The last round of talks was held in Ankara. In mid-May last year, Turkish ambassador to Dhaka Devrim Öztürk left the country following execution of a Jamaat Islami leader Motiur Rahman Nizami. Before that, on several occasions Turkey strongly condemned the executions. However, the ambassador came back to Dhaka three months later in August last year.
Bangladesh is much positive about signing FTA deals with several countries including Turkey, Sri Lanka, South Africa, and Myanmar. If they can get duty-free access to Turkey, exports to the Eurasian country will increase manifold. Also, Bangladesh has reservation in signing FTA with China and India since a study by Bangladesh Tariff Commission has found opening up the market for these countries would be disastrous both in terms of revenue as well as local industries.
Dhaka had opted for signing FTA with Ankara following the imposition of 17 per cent additional duty on import of textile and garment items from Bangladesh in June 2012. Other Bangladeshi exports enjoy zero-duty benefit in the Turkish market. Apparels account for over 75 per cent of Bangladesh's total exports to Turkey. Imposition of additional duty was a serious blow to Bangladesh's apparel export to Turkey.
The Apparel Export Promotion Council (AEPC) says that it has achieved $12.42 billion till the end of third quarter which accounts for 82.8 per cent of the exports target. It may be recalled that the Ministry of Textiles had set a target of $20 billion for RMG exports for the financial year 2016-17 out of which $15 billion was for April-December period.
According to AEPC, RMG exports got impacted due to several pervasive geopolitical and economic uncertainties. As the US has shown negative growth in global exports, India’s exports to the country have also seen a decrease. Out of India’s top 10 products, seven have shown a decline during the review period. Changing economic conditions in the EU market have also affected India’s exports to the world’s largest economy. RMG exports by India decreased by 0.2 per cent compared to the same period of previous financial year. During April-December 2015-16, India’s apparel exports were to the tune of US $12.437 billion.
The Alliance for Bangladesh Worker Safety, a consortium of North American apparel retailers and buyers has claimed that 68 per cent of all necessary repairs across Alliance-linked factories have been completed till date. It also says 60 per cent of Alliance linked factories had completed their corrective action plans to a great extent.
As per James Moriarty, Alliance Country Director the Alliance has helped transform what was once one of the most dangerous industries worldwide into one of the safest and as evidence; the number of fires and safety incidents was going down. The Alliance completes its pre-determined five year tenure in 2018.
Since its inception in 1995, Tex-Styles India Fair has emerged as an ideal forum for presenting the multi-faceted splendor of the Indian textile industry and established itself as the leading fair of its kind in south east Asia.
This is the only textile show in India which provides users a one-stop platform for purchase of every conceivable textile product produced by India i.e. furnishings, floor coverings, fabrics, garments, accessories etc.
Exhibitors will be companies in fields such as cotton, silk, wool, synthetics, power looms, jute, blended and other fibers.
A yarn and fabric show is being held in Bangladesh, February 15 to 18, 2017.
More than 180 exhibitors from six countries including China, India, Sri Lanka, Singapore, Malaysia, and the host Bangladesh are taking part in the show to display state-of-art fabrics, garment accessories, fleece, fancy finishings, different types of yarn, weaving ribbons, denim, knitted fabrics, artificial leather, embroidery, snap fasteners, shoulder paddings, interlining, buttons, zippers, linen blends etc.
There are seven garment factories in Bangladesh that are placed in the top ten environmentally-compliant readymade garment factories around the world.
The country has a target of reaching 50 billion dollars in textile exports by 2021Currently Bangladesh imports viscose worth billions a year which can be easily saved by producing the product from its own raw materials. Production of viscose fiber has proved more profitable than production of readymade garments. Bangladesh has made a deal with China for building a plant to make viscose fiber from jute using Chinese technology and finance.
Chinese investment in Bangladesh has increased by 30 per cent in the last couple of years due to attractive schemes. China is the top exporter of apparel products in the world while Bangladesh is in second place.
With the Trans-Pacific Partnership fizzling out, Vietnam is turning to its Asian neighbors for trade pacts. The country is looking to increase exports to markets in the ASEAN and some countries where it has bilateral trade agreements, such as Japan. It will look at ways to boost exports to the EU.
Vietnam has nine free trade agreements, including deals with India, South Korea, Australia, and New Zealand. Seven more are being negotiated. The more free trade agreements Vietnam signs, the less it will have to rely on China and its Regional Comprehensive Economic Partnership for the benefits of international commerce. Vietnam is more active than other countries in forging trade deals, and that allows it to diversify its risk. Because of its export-driven economy, Vietnam probably would have benefited from the Trans-Pacific Partnership trade treaty more than any other nation. The TPP would have dramatically lowered or eliminated the tariffs the US imposes on Vietnamese goods. The US is the largest customer for the apparel, electronics, furniture, and shoes that Vietnam makes.
TPP was not only about market access. It was also a driving force for reform, for transparency and anti-corruption. Australia is interested in resurrecting some version of the TPP with Vietnam and other Asian countries.
Honduras wants to be one of the top textile and apparel producers and exporters in the world. As of now the Central American country is the second largest exporter of textiles in the region, after Mexico. Total export value of Honduras’ textile products is expected to grow by 10 per cent in 2017. The US, Europe and Canada are some of the largest export destinations for Honduras.
By 2020, Honduras wants to double its apparel exports and become the fifth largest clothing supplier for the US, up from its current position at seventh. The project is set to generate over 2,00,000 new jobs in the sector, and there will be additional funds for training more skilled workers, establishing renewable energy facilities and building logistics infrastructure.
Sustainability and innovation will be the new main focuses for Honduras to develop its textile and apparel sector. A big emphasis has been placed on technology to ensure the sustainability of all manufacturing processes in the textile industry, from saving water in the fabric dyeing process to using recycled fibers in production.
The country’s location allows it to have shorter time span and lower costs to ship its textile and apparel products to major ports in the United States and Europe compared to any other Asian textile exporter.
European clothing companies prefer to source wool from Italy than from China. This is a sign of the changing times. China is caught between rising domestic costs and persistent technical and distribution advantages elsewhere. Italian fabric producers are closer to the market, so not only is transport cheaper also timelines between orders and sales are shorter and in the fast-paced world of high fashion, this matters.
When cost differences are significant, quality may be less important but if overall costs are comparable, quality should be decisive in sourcing decisions. If Chinese producers still have a reputation for relatively low-quality textiles, then as the labor cost picture worsens, they will likely have nothing left to offer.
At a macro level, China has for years aspired to move up the value chain, to capture more of higher skilled components of the global supply chain. In keeping with this, China was content for the low-value textile industry to relocate to Southeast Asia in search of cheaper labor. But now, as China’s own costs rise still further, they find themselves competing against long established, higher quality production centers like Italy, and losing out. Even in textiles, China is no longer the prime destination for new investment.
Thailand is hosting FESPA Asia 2017, February 15 to 17, 2017. The focuses of the exhibition is on wide-format digital, screen and textile printing, allowing visitors the chance to source all they need for their businesses under one roof. Domestic and international brands are exhibiting.
FESPA Asia is the latest addition to the FESPA portfolio of established trade print exhibitions. Designed to connect screen, digital and textile printing communities across the Asean region and beyond, this event brings together print professionals looking to discover the newest products, the latest innovations and the best advice.
FESPA is the largest specialty and creative printing federation with 37 member associations, and has the philosophy of reinvesting in the global print community for sustainable growth across the board. French software house Caldera is presenting its award-winning print workflow solutions. Products that Caldera will be showcasing at the event include its premium signs and display solutions software and its market-leading textile-printing solutions. The new Caldera V11 RIP suite speeds up image processing and improves organisation for wide-format print businesses of all kinds.
Hexis is showcasing its new HXS5000, which offers 14 colors and allows application on flat and slightly curved surfaces. Senfa is displaying Decoprint, a range of coated textiles for large-format digital printers.
Lenzing’s viscose and modal fibers have been awarded the Biobased Product Label by the US Department of Agriculture (USDA). The certification is proof that all standard types of fiber produced by Lenzing are fully derived from the natural and renewable raw material, wood. The company’s Lyocell fiber Tencel has been certified as 100 per cent bio-based content since 2011.
Eco-responsibility represents a key component of Lenzing’s group strategy. Lenzing is in tune with the growing trend towards ecology and sustainability. Lenzing fibers are not only derived 100 per cent from nature, but they are also returned to nature at the end of their life cycle. Standard Lenzing fibers are 100 per cent biodegradable and even compostable.
Based in Austria, Lenzing supplies to the global textile and nonwoven industry with high-quality, botanic cellulose fibers. Its portfolio ranges from dissolving pulp to standard and specialty cellulose fibers. With 79 years of experience in fiber production, the group is the only company worldwide combining the manufacturing of all three cellulose fiber generations on a large scale under one roof – from viscose to modal to tencel.
The certification by USDA is designed to motivate government institutions and companies to purchase bio-based products or those which largely consist of biological materials.
