Latest
Regulations regarding Textile Trade
- China Ministry of Commerce: Second Agreement Bidding
of Textiles Exported to EU and the US in 2007 (in Chinese)
- European Union: Corrigendum to Anti-Dumping Regulation
on Footwear from China and Vietnam. Chile removed from
the list of GSP countries.
- Hong Kong Trade and Industry Department: Textiles
Trader Registration Scheme : New Fee Structure.
- US International Trade Commission (USITC)/Polyester
Staple Fiber from China: Determination of Injury.
- US Committee for the Implementation of Textile Agreements
(CITA): Determination of non-availability for certain
fabrics under the CAFTA-DR.
- Hong Kong Trade and Industry Department: EU/US Textile
Quotas/Results of Export Performance Verification.
- China Ministry of Commerce: Performance Examination
and Verification Result on a Part of Enterprises in
the Second Agreement Bidding of Textiles Exported to
EU and the US in 2007.
- Hong Kong Trade and Industry Department: Official
Results of the Second Allocation of EU/US Textile Quotas.
- China Ministry of Commerce: Results of second bid
for allocation of US/EU textile quotas (in Chinese).
- European Union: List of U.S. Products subject to
a 15% additional import duty as from 1 May 2007.
- US ITA: Anti-Dumping Duties on PSF from Taiwan and
Korea.
- US Customs: Programming Change for HTS Number under
CAFTA-DR (Trousers from Nicaragua).
- USITC: Assessment of U.S.-Korea FTA. U.S.-Panama
Trade Promotion Agreement. Modification of rules of
origin under Nafta.
|
US
Apparel Imports from China in First Quarter 2007
US apparel imports
from China sharply rose in the first quarter this year,
compared with the slowdown experienced in the same period
of 2006. Import prices were slightly cut after strongly
rebounding in the past year. China's share of the US import
market is now exceeding 40% in a large number of categories,
as reflected by our series of statistical tables.
TOP |
Viscose
Prices boosted by pollution fight in China
Viscose prices
further boomed in the last two weeks in China with prices
finally gaining 14% in a single month. After being boosted
by surging exports, viscose prices are now stimulated by
a sharp increase in raw material costs after China's government
decided limiting pollution from cotton pulp factories and
shutting down large capacities. TOP |
India
Knitwear Exports: Segment Analysis India's
knitwear exports are again growing compared with a decline
in woven clothing exports. Indian exporters however need
shifting to higher valued products and to sell more winter
wear in order to reduce their high dependency on cotton
summer goods. Our India Correspondent details the current
situation of the industry, segment by segment.
TOP
|
US
Cotton Bed Sheet Imports in First Quarter 2007 US
imports of cotton bed sheets are slowing down this year
after surging in the 2004-2006 period. China and Pakistan
are heavily dominating the market with Indian shipments
of printed bed sheets however rebounding in the first quarter.
Average prices significantly fell in the past two years,
after quotas were eliminated, as reflected by our series
of statistical data.
TOP |
US
Textile Prepares for Anti-Subsidy Tariffs against China
A new weapon is
being prepared against US apparel imports from China after
Washington imposed anti-subsidy duties on certain Chinese
products for the first time in twenty years. Future additional
tariffs could exceed 20%, in line with substantial subsidies
benefiting the Chinese clothing industry. Such a threat
may force Beijing in further reducing export subsidies or
face new obstacles on the US market in the post-quota period.
TOP |
US
Denim Trouser Market: Duty-free Access and Cost Impact
Asia took largest shares
of the US import market for denim jeans in the first quarter
this year. Thanks to its duty-free access, Egypt rushed
to the third place on the men's segment while Central America
is now expelled from the women's segment. Duty-free access
offers a competitive advantage that is decisive on the men's
segment but not on the women's market, as demonstrated by
our analysis of full costs after freight, insurance and
import duties.
TOP |
Nylon
and Caprolactam Prices in China Nylon
prices were slightly up in the past weeks in China, reflecting
the recent increase in benzene and caprolactam prices. Nylon
producers are however facing some strong resistance from
fiber processors and nylon prices are not expected following
the same trend, however.
TOP |
Spandex
prices may decline in China Spandex
prices were mixed in the past weeks in China with 40D generally
declining amid very low demand. Prices for finer qualities
are still supported by a lack of supply. Raw material costs
are rising while new capacities are being added, however.
TOP
|
China's
T-shirt Exports in First Quarter 2007
China's cotton
T-shirt exports rebounded on quota markets in the first
quarter this year with prices clearly declining. Unit values
however remained far above their level in 2005, as reflected
by our series of statistical tables. Sales soared to countries
that did not re-impose limits. Overall sales slowed down
over the first quarter, mainly due to lower demand from
Japan. TOP |
Paraxylene
Surge may boost Polyester Prices Polyester
prices may rebound in China after Paraxylene prices for
June deliveries were Monday nominated at sharply higher
levels, compared with May settlement prices. Staple fibers
and filament yarns had stayed unchanged in the past week,
as a result of a slowdown in textile production and also
due to a high level in stocks.
TOP |
Trade
Agreements with Peru and Colombia could be approved by US
Congress The Bush
administration last week concluded a decisive agreement
with the US Congress that is a first step for maintaining
duty-free access to US market for Peruvian and Colombian
apparel. Free trade agreements concluded with Lima and Bogota
must be passed by US lawmakers before the end of June or
both countries would face expiration of US preferential
access. Uncertainties already led US buyers in limiting
orders to Colombia and Peru. TOP |
US
Apparel Imports in First Quarter 2007 US
apparel imports rose nearly 10% in the first quarter, mainly
due to a sharp increase in shipments from China that weakened
exports from India, Thailand, the Philippines and also from
Bangladesh to a lesser extent. Supplying countries in the
Middle East, Southern Africa and Latin America were diversely
affected by surging competition from China, as reflected
by our series of statistical tables.
TOP |
Pakistan
Border Areas being offered Duty-Free Access on US Market
Textile and apparel from
remote areas in Pakistan may soon get duty-free access to
the US market. Modeled on Jordanian and Egyptian QIZs, Reconstruction
and Opportunity Zones (ROZs) would be offered generous rules
of origin, including the use of Asian materials. Their development
could however be limited by poor transport infrastructure
and security issues.
TOP |
US
Apparel Imports from Jordan in 2006 US
apparel imports from Jordan further rose in 2006 thanks
to the duty-free access offered to apparel made of Asian
fabrics. The Jordanian success is however threatened by
poor working conditions that were denounced in the United
States and by surging competition from Egypt that now enjoys
similar duty-free access on the US market.
TOP |
Brazil
sharply raising Textile Import Tariffs Brazil
intends raising textile and clothing import tariffs from
20% to 35%, effective in a few weeks. Imports surged in
the first quarter, especially from China, as a result of
a sharp increase in the Brazilian currency, the real. Under
WTO rules, the rise in tariffs will cover imports from all
countries and not only from China. European exporters already
protested against Brasilia's decision, although such a rise
is complying with the level in Brazil's binded tariffs at
the WTO.
TOP |
Hong
Kong Denim Trouser Re-Exports Hong
Kong's re-exports of cotton denim trousers surged in the
first quarter this year after already increasing in 2006.
Very strong demand from the United States is obviously boosting
sales from Hong Kong in order to avoid Chinese quotas. Shipments
to Germany and the UK are also booming for a similar reason.
Unit prices sharply increased since 2004 with a new jump
this year, as reflected by our series of statistical tables.
TOP |
Knitwear
industry needs to improve drastically Werner
International Consultants who were appointed by the government
to study the knitwear industry for its shortcomings.
TOP |
Textile
machinery imports continue to decline The
textile machinery has further dipped by 34% due to lack
of interest of the textile industry. This is mainly attributed
to the fierce competition the sector.
TOP |
Textile
sector wants R&D facility to be extended
The R&D facility which
was granted two years back to some textile sectors after
the removal of quotas is likely to be withdrawn if the government
decides to do so.
TOP |
Pakistan
to import 3.5m cotton bales The
country's local production of cotton will fall short of
expectations by around 3.1 million bales. The government's
target of 14.14 million bales production.
TOP |
Major
decline in textile exports The
textile exports failed to register any growth in the month
of April. Actually it went down by 14% in April 2007. This
downtrend in exports shows that Pakistan can not keep its
share.
TOP |
NASC
demands incentives for textile industry APTMA
(All Pakistan Textile Mills Association) requested the government
to stop the subsidy given to the importers and provide them
with a level playing field to compete.
TOP |
Textile
sector begging government for help The
country's textile industry which is expected to touch $50
million in exports by 2016, is slowly loosing its competitiveness
due to high utility tariffs, scarcity of raw materials.
TOP |
Textile
export target hard to achieve Trade
Development Authority of Pakistan (TDAP) chairman, Tariq
Ikramsaid here Tuesday that it may not be possible to achieve
the export target.
TOP |
ECC
approves cotton imports to overcome shortfall
The domestic shortfall
of three million bales would be met by importing the long
staple cotton from India and Uzbekistan, Dr Ashfaque Hassan
Khan.
TOP |
FTA
to boost textile exports Talks
held on 7-9 May have proved fruitful as the Free Trade Agreement
between Pakistan and Malaysia will be announced soon during
the visit of Prime Minister Shaukat Aziz.
TOP |
Textile
cos to introduce value added services
The domestic textile companies
with correct management structures and modern equipment
are keen to serve the textile and apparel sector by introducing.
TOP |
Pakistan-Brunei
FTA to be finalized soon
To encourage and expedite
two-way trade between Pakistan and Brunei the modalities
of a Free Trade Agreement (FTA) are being finalized which
is likely to be implemented.
TOP |
Incentives
play major role in textile production
After comparing the production cost for textiles in different
countries like India, China, Indonesia, Egypt, Vietnam and
Bangladesh with that of Pakistan the research organization
Gherzi International has submitted its study report to the
textile ministry. The report states that there is an urgent
need to modernize the manufacturing plants and improve infrastructure
in addition to giving attractive incentives. The study showed
that in India the government has started TUFS ( Textile
Up gradation Fund scheme) provides a 5% interest reimbursement
to the new investment in addition to providing attractive
incentives through subsidized power and tax holidays.
India has decided to invest Rs. 30,000 crores to achieve
target of $50 billion textile exports and is setting up
dedicated textile parks. The individual state governments
also provide attractive incentives through subsidized power
and tax holidays. The study states that the governments
in South East Asia have realized the need for encouraging
massive investments in the industry after the world trade
in textiles was liberalized about two years back and necessary
steps have been taken by the governments by modernizing
to achieve the expansion targets.
TOP |
Textile
exports projected to increase by 7% in current year
The export of textile
products projected a growth of 7.01 percent in first nine
months (July-March) of current fiscal year compared to corresponding
period of last year. The rise in this sector was on account
of an increase in export of yarn. According to latest statistics
the country exported $8.027 billion worth of exports in
the period under review compared to $7.051 billion worth
of textile products exported in the same period of previous
year.
The export of textile products
also registered a growth of 10.68 percent in March 2007
to $987 million as against $ 892 million in same month of
previous year and grew by 25.23 percent compared with preceding
month of February, when $768 million worth of textile products
were exported. The export figures indicate that export of
various items in textile category showed growth, however
it was export of yarn, which posted phenomenal growth of
145 percent in July-March period, which resulted in overall
growth in this category.
TOP |
MoC
to kick start consultation with stakeholders: Trade Policy
2007-08
The ministry of commerce
would begins consultation with stakeholders on Trade Policy
2007-08 in an advisory board meeting, which is scheduled
on April 26, an official at the ministry told here on April
20. The official told that the New Trade Policy 2007-08
would be aim at enhancing the competitiveness and to build
capacity of the exporters to market their products according
to the best international market. The Federation of Pakistan
Chamber of Commerce and Industry (FPCCI), All Pakistan Textile
Mills Association and all other exporters associations have
been participated and invited their recommendations. Export
refinance rate in Pakistan has surged from 3% to 9%, banks
interests rates on loan has been surged up to 14%.
The main reasons for impeding
Pakistan exports are the high cost of electricity, gas,
petroleum, tariff barriers such as higher import duties
by United States . Pakistan 's textile sector has lost its
competitive edge as its regional competitors like China
, India and even Bangladesh enjoys more incentives.
They have stressed the need for improvement in the areas
like: high interest rates for spinning, weaving, processing;
high trash content in cotton; low labor productivity; and
technological obsolescence in open end spinning and a small
shuttle-less weaving base to make the industry competitive
and take advantage of the real potential Pakistani textile
sector.
However the labor in Pakistan
is cheaper than India , China , Indonesia , Egypt , however,
yet the productivity is comparatively low due to skill gap.
Cost of labor in Pakistan is 43 cents, India 47 cents, China
57 cents, Indonesia 52 cents, Egypt 60 cents, and while
in Bangladesh and Vietnam it is 27cents and 29cents respectively.
TOP |
Cotton
price war continues
The spinners and ginners
are not in a mood to give up on the price issue as most
of the ginners have already met bank overdraft adjustment.
The ginners are now setting their own selling prices. The
war is still on between spinners and ginners as only
3,000 bales from Rahimyar Khan Areas were sold at Rs. 2,800
per mound. The textile sector has reduced its intake and
is not going beyond export parity level as the daily business
is on a decline. The present warm weather has stopped the
pest attack on cotton plants and the entire sindh cotton
belt has almost completed crop sowing and the early sown
plants are progressing well in the warm weather. Because
of this the official spot rates were not changed at all
and were firm at the previous level.
New York cotton futures
registered a decline of 0.65 to 0.40 cents per lb for both
the ruling May and the Forward July contracts respectively.
The talks of higher imports to take care of the local crop
shortfall haven't made any difference to the present situation
as ginners are not ready to budge. There is no immediate
solution to this situation in sight and the standoff between
spinners and ginners is likely to continue for some more
time.
TOP |
Textile
industry requests govt to increase R&D subsidy
Pakistan 's Textile industry
demands 10 percent increase in R&D subsidy. Dr Shahzad
Arshad, chairman of Pakistan Cotton Fashion Apparel Manufacturers
and Exporters Associations, said here on April 17 that the
government should increase research and development (R&D)
subsidy for textile from six to ten percent for at least
for two years, otherwise survival of the textile industry
seems difficult. According to him, the government wants
to reduce the R&D subsidy to textile industry from six
to three percent. He demanded of the government to either
increase the R&D subsidy to 10 percent or at least maintain
it at present 6 percent level otherwise it would be impossible
to run the industry.
The textile industry is
earning about 76 percent of the foreign exchange. The government
is neglecting the textile sector thus depriving the country
of huge foreign exchange; he alleged. The government is
paying 6 percent R&D subsidy to the readymade garments
exporters and three percent to the exporters of fabrics.
The exports of the readymade garments have declined by 19
percent due to the weak position of Pakistan in the world
market against its regional competitors like Bangladesh
; he said. Readymade garments export stood at $106.590 million
during January 2007 and at $132.260 million during December
2006 depicting a decrease of 19.41 percent or of $25.670
million; he said.
TOP |
Target
of cotton production could not be achieved
Pakistan could not achieve
the target of 13.816 million bales cotton production set
for 2006-07; sources said here on April 17. Total production
of 13 million bales has been recorded from 3.2 million hectares
under cotton crop. There has been lower production due to
10 percent decline in the sown area in Sindh. Moreover,
Mealy Bug and Cotton Leaf Curl Virus (CLVC) also affected
the crop yield in some areas. According to Pakistan Cotton
Ginners' Association, cotton arrivals as on April 1 were
12.384 million bales against 12.371 million bales reported
on the same date last year. Seed-cotton arrivals from the
Punjab province were 10,065,831 bales against 9,826,099
bales on April 1, 2006 and in Sindh 2,318,574 bales against
2,545,376 bales of last year.
Total 12,384,405 bales
seed-cotton arrivals have been recorded in 2006-07 against
12,371,475 bales of 2005-06, indicating an increase of 0.10
percent. The Federal Committee on Agriculture in its meeting
held last week fixed cotton production target for the next
season (2007-08) at 14.14 million bales, to be sown on 3.25
million hectares, with an average yield of 740 kg per hectare.
The share of the Punjab would be 11 million bales, Sindh
3 million bales and 0.14 million bales from NWFP.
TOP |
Banks
feel textile units face crisis-like situation
Banks of Pakistan feel
that the textile units face the crisis-like situation, and
have started polite inquiries to assess the financial viability
of certain textile units; one senior banker from a privatized
bank, said here on April 15. Internal reviews have been
started by banks to assess the magnitude of loss against
their outstanding loans to the textile industry besides
initiating unnoticed inquiries about the financial positions
of certain mills. However, the severity of the situation
has not reached the level of the 1992 crisis, when banks
suffered heavily.
An official of the All
Pakistan Textile Mills Association (APTMA) said that they
are receiving telephone calls from banks showing interest
in the financial stability of certain units. According to
him, the weaker units were likely to collapse soon. The
banks which have extended long-term loans against machinery
would suffer more. But those banks which have restricted
themselves to the working capital would be in a better position,
as they are planning to curtail their limits immediately.
Moreover, majority of the limits are given against pledging
cotton. Therefore no big risk is involved in such financing.
There is a general consensus among the bankers that units
set up during last four years were highly vulnerable.
TOP |
Transparency
in land allotment vowed
The land mafia would not
be allowed to get land leased in the proposed textile city
and vowed to allocate land through transparent process;
CEO Pakistan Textile City Ltd, Zaheer A. Hussain said here
during the meeting with textile industrialists at PHMA House
on April 13. He apprised that a labor colony on a 500-acre
plot would be built nearby. Negotiations with the utility
providers were underway to fix them on reasonable rates
for the textile industry. Regarding relief on the utility
charges, he said that imposition of utility charges was
not by the administration; however, the government was holding
talks in this regard with various utility providers to fix
reasonable rates for the industries.
Zaheer reiterated that
the government would leave no stone unturned to foil attempts
by the land-grabbers vigorously making efforts to lease
land in the textile city pretending as an industrialist.
He maintained that the idea behind the textile city was
not to earn profit, but to promote industries and make the
project successful. He pledged to provide one-window facility
to industrialists for depositing utility charges. Establishment
of a bus route to the textile city was under consideration.
However he admitted that no in-depth study on it so far
has been done.
Saleem Parekh, Chairman
PHMA S/B zone, expressed his view during the meeting pertaining
to hosiery manufacturing its growth and export ratio. He
apprised that value-added industry was badly suffering due
to various reasons, which put a negative impact on its growth
and export when other regional countries were thriving.
TOP |
APTMA
suggests members to cut investments in textiles
All Pakistan Textile Mills
Association (APTMA) told members to cut investments in textiles,
anticipating one of the worst power shortage crises in the
country; sources said here on April 11. All the companies
are avoiding further investments and have been guided to
discontinue manufacturing and export activities in textiles
and garment sectors. APTMA members anticipate one of the
worst power shortage crises in the country, soon. APTMA
approached the Government on this issue, but to no avail,
which has compelled them to advise its members against additional
investments in the sectors.
Experts have gone a step
further in recommending enterprises to offer their factories
to global buyers, which may help them to survive and sustain.
Association insists that all mills in the vicinity of city
areas and those in the suburbs be transformed into fisheries
or livestock units, for better opportunities.
TOP |
Gulshan
Spinning Mills registers impressive growth
Sales and production of
Gulshan Spinning Mills Limited registered impressive growth
during FY07; company sources said here on April 12. However,
profitability remained low despite higher gross profit and
gross profit margin. The company is one of the constituent
members of a large conglomerate whose other associates are
Gulistan Textile Mills Ltd, Gulistan Power Generation Ltd,
Gulistan Spinning Mills Ltd, Gulistan Fibers Ltd, Gulshan
Weaving Mills Ltd, Paramount Spinning Mills Ltd etc.
Despite lower profit the
company announced bonus stock dividend. The company directors
advocated that the textile industry of Pakistan desperately
needed subsidies/incentives in the form of reduced gas rates,
no import duty on textile machinery and spares, suspension
of all taxes/levies on export. They also asked for reduced
mark up on short term financing for the purchase of cotton
to make themselves competitive in international market which
will enable them to earn precious foreign exchange for the
country.
Gulshan Spinning Mills
Ltd was incorporated as a public limited company in the
province of Sindh , under the Companies Ordinance 1984.
It's primarily engaged in the manufacturing and sales of
yarn. Its manufacturing facilities are located at three
places in the province of Punjab . Unit No I is located
in District Vehari at Tibba Sultanpur, Unit II is situated
in District Kasur at Jumber Khurd Tehsil Chunian and the
third unit is in District Sheikhupura at Warburton.
TOP |
