WTO
unveils textile and clothing trade data ahead of decisive
meeting about quotas
A few days before a decisive meeting about a possible extension
of textile quotas after 1 January 2005, WTO's Secretariat
just released comprehensive statistics related to global
textile and apparel trade. The share of developing countries
in textile and clothing exports is far from having surged
in the past ten years, the study shows. Since data are in
US$ terms, however, they actually hide a more substantial
rise in volume terms, due to deflationary pressure.
|
Bangladesh
textile market in the quota-free period
Bangladeshi imports of cotton yarns fell in the
past years, in line with larger capacities at home. The
need for cotton fabrics and synthetic textiles remains relatively
high, however. Authorities could reduce import barriers
to help apparel exporters in buying more low-priced fabrics
from foreign countries and further lowering costs in the
quota-free period.
|
Cotton
yarn prices fell in China and India
Prices of cotton yarns suddenly fell in China in
the past two weeks, reflecting lower demand from downward
processors. Market activity was reported well in the past
week, however, as stocks of yarns are progressively being
consumed at textile and apparel plants.
|
Indonesia
takes advantage of rupiah and polyester industry
US apparel imports from Indonesia were very strong
in the first part of the year, even surging 15% in July
in sharp contrast with the decline in shipments from a large
number of other low-cost countries. Taking advantage of
a much lower rupiah this year, Indonesian exporters continued
benefiting from a vertically integrated polyester industry
while banks this week accepted again lending to largest
groups.
|
Cotton
prices are falling across the board, as expected
Ahead of a major global crop this year, cotton
prices continued falling in the past week and are expected
further declining in the coming period. Damages inflicted
by two hurricanes Frances and Ivan only provided small support
to US futures while domestic prices were decreasing in India
and Pakistan. First arrivals of the new crop were reported
larger and of higher quality than in the past two years.
|
EU
Quota Report: strong difficulties in most important categories
EU's importers are expected facing increasing difficulties
by the end of the year and the start of 2005 as quotas applied
on shipments from low-cost countries will possibly be filled.
In most important categories, exports from China and India
could be subject to embargoes, unless substantial adjustments
are granted by Brussels. |
Wool
prices were flat in Australia, down in South Africa
Wool prices were relatively flat this week in Australia
while down in South Africa. Demand could strengthen in the
coming weeks with an expected return to more formal dress
in Europe and the United States.
|
China
prices in quota-free period: a category-based approach
Prices of China's apparel are expected plunging
on the US market, as a result of full elimination in quotas
and their associated costs, effective from 1 January. Due
to the high level in quota fill rates, quota prices are
extremely high in China, accounting for a large share of
US import prices. There is therefore room for a sharp reduction
in 2005, as demonstrated by our category-based analysis
including maximum prices that can be forecasted for the
coming year. |
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you have a news story about your company that you'd like
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US
administration under more pressure to maintain quotas on
China's products
The US administration is under additional pressure
to maintain quotas on textile and apparel imports from China
after negotiations with Beijing failed in the past week.
A new legislation was introduced by top Democrats in the
US Congress, in addition, to allow the use of China Textile
Safeguard before 1 January 2005.
|
Polyester
prices further falling in China
Polyester prices further fell in China in the past
seven days, mainly due to excess stocks accumulated in the
past month and lower raw material costs. Cheaper cotton
is depressing demand for polyester staple fibers while filament
makers are still waiting for a stronger demand ahead of
the full textile season. |
| |
India's
Cotton Yarn exports to the European Union are weaker this
year
India's exports of cotton yarns to the European
Union were far from surging in the first part of the year,
mainly due to higher cotton prices and a stronger rupee.
After filling EU's quota in category 1 in the past years,
Indian exporters are expected taking advantage of the removal
in limits in 2005, nevertheless, as reflected by our full
report including data for major EU's destinations.
|
US
Apparel Imports in July 2004: Category and Country Breakdown
US apparel imports again declined in July following
a short-lived recovery in June. Thanks to a new jump in
its sales, China gained additional shares on the US apparel
market. Imports from a few other countries also increased,
including a sharp rebound in shipments from India. Prices
again rose in July with cotton apparel categories more affected
than MMF products, as clearly indicated by our category-based
charts. |
Cotton
prices expected to further fall, unless hurricane Ivan ravages
US crop
Unless hurricane Ivan devastates the US cotton
belt in the coming days, cotton prices are expected to further
fall in the short term as a record crop is now forecasted
in the United States. Production would also sharply rise
in Pakistan, India and Uzbekistan while slightly lower than
initially estimated in China. Cotton prices were already
down in India in the past days as a result while also declining
in Pakistan.
|
India
vs. China on US apparel market: quota-free trade prospects
India may face strong difficulties in the quota-free
period, especially on US apparel market. Indian exporters
took advantage of higher US limits in the past years, compared
with small quotas imposed to US imports from China. As a
result, they will be forced lowering their prices in the
coming year as showed by our comprehensive analysis of average
unit prices per category. |
| Latest
Regulations regarding Textile Trade
World Trade Organization (WTO): Panel's Report
on US Cotton Subsidies.
- US
CITA: Short Supply Requests under CBTPA: certain circular
single knit jersey fabrics and certain twill rayon/nylon/spandex
warp stretch fabrics.
- US
International Trade Commission (ITC): Effect of modifications
of NAFTA rules of origin for goods of Canada and Mexico.
-
US Presidential Proclamation: To modify the Generalized
System of Preferences, and for other purposes (including
AGOA III implementation).
|
Stronger
demand for wool in the coming months
Thanks to a decline in the Australian dollar, wool prices
further fell in US$ and euro terms in Australia while up
in A$ terms. Demand is expected steadily recovering in the
coming months while Australian production will increase
for the first time in eight years this season.
|
Bangladesh
and Cambodia lobbying for US duty-free access
Bangladesh, Cambodia and other poorest Asian countries
are trying to obtain a duty-free access to the United Sates.
A bill would be introduced in the US Congress in the short
term to get some additional relief in a quota-free world.
Since their apparel is made from Asian fabrics, mainly from
China, Korea and India, those countries will face strong
opposition from US textile groups, however.
|
Textiles
to get 20pc cut in duty under new GSP
Federal Minister for Commerce, Humanyun Akhtar
Khan said on Wednesday that textile products would get 20
per cent reduction in customs duty on export to European
Union (EU) member countries under the new generalized system
of preferences (GSP) to be effective from January 1, 2006. |
Iranian
move to help boost textile exports
The slashing of the import tariffs by Iran in certain
categories of textile items has thrown open an excellent
opportunity for Pakistani textile entrepreneurs to cash
in on the situation.
|
Textile
exports to US, EU, Canada and Turkey up 19%
The textile quota exports to the United States
(US), European Union (EU), Canada and Turkey registered
over 19 per cent increase in value and 5 per cent in quantity
during the first nine-and-a-half months of the 2004 quota
year... |
Cotton
prices relieve a little
Cotton trading started the week on a good note
as over 10,000 bales were traded on Monday but prices fell
by another Rs 25 per maund to close at Rs 2,200.
|
Mega
projects for textile sector on cards
The Federal Minister for Textile Industry, Mushtaq
Ali Cheema on Monday said that the government was fully
prepared for the promotion and modernization of textile
sector to strengthen the national economy... |
Textile
exports up 19 percent
The textile quota exports to the United States (US), European
Union (EU), Canada and Turkey registered over 19 percent
increase in value and 5 percent in quantity during the first
nine-and-a-half months of the 2004 quota year...
|
Cotton
buying spree may not continue
The cotton prices were lower on Thursday, as the
spinners were hesitant to pay higher asking prices. At the
same time, the weak ginners were not inclined to hold on
to their stocks in view of increasing arrival of phutti
weakening their bargaining position... |
Cotton
imports from United States rose by 80% in 2003-04
Pakistan's imports from the United States rose
by 80.5 per cent to $1,326.931 million during the year 2003-04
against $735.018 million a year earlier. Official statistics
compiled by the commerce ministry...
|
TCP
secures US$8.4 mn for cotton purchase
Trading Corporation of Pakistan (TCP) had secured
a credit line of Rs500 million (US$8.4 million) to finance
the procurement of cotton during September, Chairman TCP,
Syed Masood Alam Rizvi said... |
PM
ensures adequate cotton price for farmers
Prime Minister Shaukat Aziz has directed Trading
Corporation of Pakistan (TCP) to ensure that farmers get
the adequate price of the crop and it should remain active
throughout the season...
|
Cotton
prices stand firm at current lows
The cotton market maintained a firm posture on
Wednesday because the ginners showed strong resistance to
further decline in prices in view of higher advice from
New York. |
Private
sector authorized to set up fibre testing labs
The government has authorized the private sector
to establish fibre testing laboratories including two labs
for the Pakistan Cotton Standards Institute (PCSI) in an
effort to facilitate the stakeholders of cotton.
|
Record
cotton output expected this season
Record high production of cotton, after 1992, is
expected this season as the shortage of rain has created
best environment for the crop, pushing the production three
times higher in Punjab and 60 per cent higher in Sindh... |
Prospects
of solar water heating in textile industry
In the post-January 2005 quota-free market scenario,
it will be inevitable to implement quality standards such
as ISO 9001 and environmental standard ISO 14000...
|
Textile
industry being upgraded
The Vice Chairman of the Export Promotion Bureau
(EPB), Abid Javed Akbar apprised the US buyers of leading
brand names on the up gradation of the Pakistani textile
industry and its export... |
EPB
tapping on the US buyers of leading brand names
Abid Javed Akbar, the Vice Chairman of the Export
Promotion Bureau (EPB), during his visit to the Magic Marketplace
and the ASAP Show informed the US buyers of leading brand
names on the up gradation of the Pakistani textile industry...
|
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