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US Apparel Imports from China in
2004 : Category Breakdown
US apparel imports from China continued sharply rising in
2004, although less rapidly than in the prior year. China's
exports to the US did not really change in a large number
of categories still subject to quotas, however. Prices were
also higher for numerous products before the expected fall
in 2005 costs, partly due to quota fees' elimination.
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Cotton Yarn Prices in China and Pakistan
Cotton yarn prices did not change in the past two weeks
in China and Pakistan although cotton prices were slightly
higher. Pakistani spinners continue benefiting from lower
raw material costs, compared with Chinese competitors.
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US Imports of Textured Polyester Yarns
further down in 2004
US imports of textured polyester yarns continued falling
in 2004, in line with lower polyester textile production.
While shipments from Mexico were down, imports from Malaysia,
Taiwan and other countries were stronger at the same time.
Import prices were significantly raised, not surprisingly.
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Polyester prices could be boosted by the
surge in crude oil futures
A Tuesday surge in US oil futures could result in higher
polyester prices in the short term. Prices of polyester
intermediates already climbed in the past week in Asia and
could further increase. China's textile industry could resist
any new rise in polyester prices, however, since confronted
with weaker demand than expected.
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China Cotton Yarn Imports in 2004
China's imports of cotton yarns sharply fell at the end
of 2004 with total shipments finally unchanged in the full
year, on average. Direct imports from Hong Kong dramatically
decreased while shipments through free-trade zones clearly
fell in December. Pakistani exporters continue dominating
Indian competitors thanks to the low level in their prices,
as indicated by our series of statistical tables.
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Traders look to bolster trade links with
Saudi Arabia
Saudi Arabia and Pakistan are close to completing agreements
covering double taxation and investment. Saudi Minister
for Commerce and Industry Dr. Hashim A. Yamani said the
agreements would aim to facilitate bilateral trade.
The minister said measures would also be taken to facilitate
Pakistani exporters.
He added that areas of particular interest to both countries
include information technology, housing, telecom, food processing,
education, health and value-added textile.
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EU's imports from Pakistan in 2004
Pakistan's exports to the European Union continued strongly
increasing in 2004, partly due to a duty-free access and
a rise in unit prices as indicated by our series of statistical
tables. Quotas' elimination was expected boosting sales
to the EU in 2005, but the end of duty-free treatment as
of 1 January and uncertainties around EU's new GSP scheme
apparently forced European buyers in delaying orders.
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Turkey's textile and apparel exports sharply
fell in January
Turkey's textile and clothing exports began falling in January,
after elimination of EU and US quotas. Exports had continued
surging in value terms in 2004, in sharp contrast, while
textile imports also sharply increased at the same time.
Apparel exporters actually shifted to quality products in
the past years with shipments no more rising in volume terms
in 2004, as indicated by our series of statistical tables.
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US bill would provide duty-free access to Bangladesh, Cambodia,
Sri Lanka and others
A bill was last week introduced in the US Senate that would
give duty-free access to apparel from a series of poor Asian
countries, including Bangladesh and Cambodia, and possibly
from Sri Lanka. If approved by the US Congress, the new law
would allow using fabrics from any other countries, although
under limits. |
China's clothing exports to the EU are surging, first data
indicate
EU clothing imports from China will surge in the coming weeks,
as reflected by first official data provided by EU's Commission.
As expected, orders focused on categories where China filled
its quotas in the past years. Prices are less significantly
falling than anticipated, however, as indicated by our full
statistical report, category per category. |
China, Pakistan and India gained new shares
Japan's import market for cotton yarns in 2004
Japan's imports of cotton yarns further declined in 2004 in
line with lower textile and apparel production. Market shares
of China, Pakistan and India improved, however, to the detriment
of exports from Indonesia and Thailand.
Japan's imports of cotton yarns and threads were down more
than 9% in volume terms in 2004 to 24,854 tons.
Thanks to a nearly 8% rise in average unit prices, imports
were only down 2% in yen terms.
The rise in the yen against the US dollar probably limited
the decline in cotton yarn imports in the past year.
Pakistan remained the largest supplier in volume terms with
26.30% of the market, before China and Indonesia.
Shipments from Pakistan fell nearly 8% while imports from
China and Indonesia were down 6% and 14% in volume terms,
respectively.
Shipments from Thailand were down 25% with its share of the
import market falling to 5% in volume terms.
Hong Kong's exports of cotton yarns to Japan also rose, but
less significantly.
Pakistan continues offering the lowest CIF prices with an
average level of 233 yen per kilo (US$2.5 per kilo).
The Japanese market clearly declined at the end of the year
with total imports of cotton yarns falling nearly 18% in December
from the same month of 2003.
Imports from China were down 31% while India and Pakistan
were gaining new market shares although shipments from the
two countries slightly declined. |
Better market access to France on give-and-take
basis
Pakistan is ready to offer better market access to French
products on reciprocal basis in the textile quota free world,
said Humayun Akhtar Khan, the commerce minister.
This was conveyed to Guillaumet Sarkozy, President of the
Union of French Textile Industry, and Bernard Leilievre, president
of the French Apparel Association when they called on the
minister.
Stating that the nation's middle class had growing purchasing
power that would provide better access for French products,
he added that Pakistan and France would complement each other
in this sector. "We will reduce our duties. But, France should also reduce
duties on Pakistan products," Khan said.
Sarkozy, on his first visit to Pakistan expressed surprise
on learning about the range of products and their quality
and modern textile factories.
The minister also sought French expertise in fashion designing
particularly in garments for design training institutes in
Pakistan.
The French Apparel Association offered its expertise in upgrading
knowledge and training facilities at fashion designing institutes
in Pakistan. |
Textile Asia 2005 to promote and strengthen
economy
Chairman Senate Mohammad Mian Soomro has inaugurated the Curtain
Raising Ceremony of Textile Asia 2005 Exhibition and Conference,
which is scheduled to be held from March 19 to 21, at the
Karachi Expo Centre.
Speaking on the occasion, Soomro felicitated Ecommerce Gateway
for organising such a great event and said that such events
promote the positive image of the country and help strengthen
the economy, said a press release received here on February
14. Textile Commissioner Idrees Ahmed appreciated the Textile
Asia 2005 and said that it would help revolutionise the textile
industry of Pakistan.
In his address, Abid Javed Akbar, Vice Chairman Export Promotion
Bureau said that the exhibition is a great effort towards
promoting the textile industry of the country to the potentially
strong business communities and textile industries around
the world.
Consuls General from Switzerland, Italy, Germany, Turkey,
Saudi Arabia and other countries were also present on the
occasion. |
Textile industry ask for 20 per cent shares
in relief package
The textile ancillary industry is seeking a minimum of 20
per cent shares in relief package to counter the current galloping
cost of production which has almost rendered the entire value-added
textiles un competitive in the world market.
Faced with tough competition from other countries, which are
not only providing subsidies to their industries, but also
have lower cost of production because of lesser tariffs in
major inputs like power, water and labour, Pakistani exporters
are fast losing share in major markets of the world.
Aslam Ahmed Karsaz, Chairman of the Pakistan Hosiery Manufacturers
Association said "When our competitors from countries
like India, China, Bangladesh and Sri Lanka are getting every
kind of facilities, subsidies and rebates, our exporters are
heavily burdened with exorbitant electricity and gas charges." |
Govt allows 25 per cent freight subsidy on leather
garments exports
The Pakistan government has allowed a 25 per cent freight
subsidy on exports of leather garments for a period of one
year, starting from January 1 to December 31, 2005.
According to an Export Promotion Bureau, this subsidy had
been provided to leather garment exports as a 'special incentive'
to overcome the problem facing this sector and enable its
exports to be competitive in the international market.
This was the outcome of meetings of leather garment producers
and exporters with Commerce Minister Humayun Akhtar Khan in
December last year and early January.
The freight subsidy was usually paid to those sectors where
exports were less than $5 million or to markets where exports
volume was less than $10 million. But the nature of crisis
facing leather garments industry is peculiar and therefore
this sector has been allowed a 25 per cent freight subsidy
to make it competitive in the international market.
The EPB pointed out that a formal approval from the ministry
of commerce had been received and the subsidy would be provided
on both against C&F and FOB exports.
Pakistan Leather Garments Manufacturers and Exporters Association
(PLGMEA) would scrutinize the claims of leather garment exporters
before they were filed through commercial banks.
PLGMEA has claimed that the exports of leather garments had
declined by 28 per cent to $132 million during the six-month
period (July-December 2004), as compared to $185 million in
the corresponding period last year. Conversely, the exports
of leather surged by 16 per cent to $135 million during the
period under review. |
Demand for Swiss textile machinery imports on
high
The trade volume of supply of Swiss textile machinery, which
showed an increase of 20 per cent during the year 2004, is
set to register a further 25-30 per cent increase during the
year 2005.
This was stated by the Chairman, Textile Machinery Division
of Swiss men, Christian Kuoni, at a press briefing here on
Monday. He is leading a 30-member Swiss delegation on a visit
to Pakistan.
The delegation held a symposium on Monday to present Swiss
textile machinery to Pakistani textile sector. "We are
hoping to hold an exhibition of Swiss textile machine products
in Karachi sometime in April this year," Kuone told reporters
later.
He said their current visit was aimed at helping Pakistan's
textile industry to use the most advanced technology in a
right way. "We strongly believe that it is not only the
supply of business machinery, but also the provision of training
and service to the textile industry to produce good quality
products for the world markets."
The Swiss manufacturers are of the opinion that Pakistan would
play an important role as a major textile exporter. He remarked
that Pakistan ranked third in Asia after China and India as
far as the textile sector was concerned. "There is great
potential for the country to enhance its exports for which
it needs latest state-of-the-art machinery."
Speaking at the briefing, Swiss Consul General at Karachi
Julius F. Anderegg told reporters that today Swiss textile
machinery was regarded as the most advanced in the world.
He pointed out that Pakistan was too important in the textile
sector and the best way for textile export promotion for Pakistan
was to use latest machinery for a better place in the global
market.
Representatives from 15 Swiss textile machinery manufacturers
gave presentations of their technological expertise. Swiss
men is an association of Switzerland's Mechanical and Electrical
Engineering (MEM) Industries and represents the business,
social and training policy interests of some 1,000-member
companies.
In the first nine months of 2004, exports from Switzerland
were up by 2.4 per cent, as compared to the same period of
2003. Up by 18 per cent. |
Proposal to withdraw sales tax on import of
man-made fibre
A proposal to withdraw general sales tax on the import of
man-made fibre (MMF) is under study, says Textile Minister
Mushtaq Ali Cheema. "The move is aimed at enabling local textile industry
to produce fabric according to international market demand," he told a general body meeting of the Farmers Associates Pakistan
(FAP) here on Monday.
Talking to newsmen later, the minister conceded federal government's
failure in ensuring Rs925 per maund cotton price to farmers.
He said the government had fixed the price in all sincerity
but farmers could not get it due to various market factors.
"Such issues become major crisis in other countries but
the government remains silent in Pakistan because it does
not have resources to rectify the situation." The minister
said the cotton industry's contribution to the national income
as a value-added item was only 30 per cent. It could be raised
up to 70 per cent with a little more effort.
"The industry, farmers and the government will have to
join hands to ensure value addition so that more foreign exchange
could be earned." Mr Cheema claimed that the ginning
industry in Pakistan consumed 83 per cent of yarn and the
rest wasted. It should put in extra effort to reduce that
loss as well.
The minister was of the opinion that tariff and anti-dumping
duties might be major factors for the governments for saving
their industry in a non-quota world. It would take another
four to five years before things could be sorted out, he added.
Later, FAP chairman Shah Mahmood Qureshi told reporters that
farmers produced more cotton this year but earned less as
compared to last year. This was because of wrong government
priorities and policies, he added.
Farmers received anything between Rs800 and Rs900 per maund.
Now, when cotton has shifted hands and gone in stores of the
ginners, the price has gone up to Rs1,100. "Who is pocketing
this additional money," asked Mr Qureshi and demanded
that the government should launch an inquiry to find out the
beneficiaries.
"In this situation, the claim of chairman of the Trading
Corporation of Pakistan hardly makes sense when he said the
TCP sustained Rs28 billion loss in procurement." Mr Qureshi
said the Punjab government has slapped commercial tariff on
some canals in the province. "This is cruel to say the
least," he concluded. |
Industry envisages a 'no tax, no refund regime'
The Central Board of Revenue (CBR) has identified some 250
textile units, which will enjoy exemption from sales tax on
the purchase of local and imported raw materials, a senior
official told reporters.
The proposed special rules envisages a ‘no tax, no refund
regime’ which will initially be for the specified units
to encourage textile exports.
The official said the government would monitor the performance
of these industrial units and the tax exemption facility could
be withdrawn if they failed to play their role in boosting
exports under the quota-free WTO regime.
The government will also consider extending this facility
to other sectors to enable them to compete in the international
market, he added.
He said this pilot project will be in addition to the existing
duty and tax remission for export (DTRE) scheme and added
it has been proposed because most of the exporters are reluctant
to join the DTRE scheme for various reasons, such as the unnecessary
documentation. The project is being finalised in the backdrop
of the government’s instructions to the CBR to encourage
exports, he said.
The All Pakistan Textile Mills Association (APTMA) has said
textile exports could be doubled within the next few years
if the government liberalises the tax regime on raw materials.
The refund of sales tax on the procurement of raw material
by the textile industry has been identified as one of the
major impediments in boosting exports.
Often, exporters complain of the delay in the payment of their
refunds, which is why the government and the CBR have undertaken
the study to eradicate these impediments. |
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