- SDC Conference to focus on the challenges facing textile industry
Society of Dyers and Colourists (SDC) has organized a one-day conference in Dhaka, Bangladesh on April 5, 2011, to examine the environmental issues facing Bangladesh, focusing on the challenges facing the textile industry. The conference will look at the benefits of getting it right, dye house good practice, the role of the retailer and the future potential through technology and innovation. Why is this important? By 2025, Dhaka in Bangladesh is predicted to become uninhabitable due to contamination of both underground water sources and all surface watercourses. Action is required urgently and as a major polluter the textile dyeing industry must react. Huntsman Textile Effects, as co-sponsor, will make a presentation showcasing products and processes developed to save water in significant quantities. As a global leader, Textile Effects takes its responsibility seriously and invests heavily in innovation for sustainability. Through water and energy resource saving, fully integrated wet processing helps preserve the environment whilst also saving money. A brilliant team at Huntsman Textile Effects has been able to make a quantum leap in dyeing technology with the development of a new chemistry that has now taken dyeing of cellulosic fibres into the next generation. AVITERA SE is the revolutionary new tri-reactive dye range for exhaust application on cellulosic fibres. Whereas today’s Best Available Technology helps to reduce water consumption to an average of 30 to 40 liters per kg of material, these new dyes go even beyond – they cut water consumption by another 50%. In other words, only 15 to 20 liters of water are required to dye 1 kg of material. AVITERA SE dyes combine new standards of environmental sustainability with top-quality results, achieved in record time. With the new dyeing technology, according to Huntsman Effects, 1.3 liters of fresh water per person per day could potentially be saved in the major Asian textile processing countries such as China, India or Bangladesh. Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
- Dhaka, Peru too protest EU’s free access to Pakistan
India, Bangladesh and Peru have opposed the European Union’s proposal to give duty free access to Pakistani textiles as a flood relief measure. The countries have informed the World Trade Organisation (WTO) that trade concession was not the right option as it harmed interests of competitors. According to EU’s plans, it would allow duty free import of 75 items for three years starting January 2011, amounting to almost euro 900 million in import value. Although India’s garments and textiles exports to the EU in 2009 at $5.9 billion was more than double Pakistan’s $2.2 billion, it could lose a market share to its neighbour if duty-free access is allowed as import duties range between 6% and 12%. Bangladesh has said that it should be compensated the trade loss if the EU is allowed to implement its proposal. It is not just competing countries that are opposed to the proposal. A number of textile producing countries within the EU such as Portugal, Spain and Italy have also expressed unhappiness.
- Textile mills urge adequate energy supply
The textile mill owners have requested the government to ensure sufficient energy supply to the industries to enable them to make optimum use of their capacity and thereby to retain their competitiveness in the world markets. The textile millers alleged that no less than 30 percent of their manufacturing capacity remains unutilized due to inadequate gas and power supply, while they still need to compete with their counterparts in some of the leading countries. Jahangir Alamin, President of Bangladesh Textile Mills Association (BTMA) said that, relaxation in rules of origin (RoO) by the European Union from January 1, this year, has posed challenges before the country’s core textile industry, as under the new rules, GSP facility is even extended to textile imports. If the textile mills cannot utilize their production capacity to the fullest, they would not be able to timely fulfil their export commitments, and would thus be persuaded to resort to imports of fabrics, he said.
- India not ready to support trade sops for Pak textiles
India has refused to support trade concessions offered by the European Union to Pakistans textile industry as a flood relief measure. Such measures will only help Pakistans textile industry and not the flood victims, Indias commerce and industry ministry said in response to a letter written by Pakistani commerce minister Makhdoom Amin Fahim. India is among a clutch of countries blocking EUs plans of giving duty-free access to 75 Pakistani products, 64 of them textiles, at the World Trade Organisation. “We have already told the EU that if they want to help they could do it in other ways, including giving direct cash aid to Pakistan,” a commerce department official told ET. The EU needs a waiver from all WTO member nations to pass on the concessions to Pakistan as its relief measure flouts the most favoured nation (MFN) status rule, which states that all member countries need to be treated alike. The concessions, worth an estimated 900 million over three years, are expected to eat into the market shares of competing countries, including India and Bangladesh. “The Indian response states that it was opposing the relief measure because the EU concessions, which have been offered at the cost of market shares of other developing countries, would only help (Pakistan’s) textile industry and not the flood victims,” the official said. India was, however, completely in favour of support flowing from the European Union provided it was for rehabilitation of the affected people, he said. Other countries blocking the move include Bangladesh, Peru and Vietnam, which have said that this would harm their economic interests. Textile imports into the EU face duties between 6% and 12%. The opposition by WTO members had forced the EU to delay the proposed date of implementation of concessions from January 1 this year to April 1. However, with the EU failing to convince all members to give their consent at a meeting of the WTO council for trade in goods on March 21, the implementation has been further deferred. “Both the EU and Pakistan are in consultation with countries blocking the move, trying to convince them to give their approval,” the official added.
- New import duty makes textile sector apprehensive
The Turkish textile and clothing sector is becoming increasingly apprehensive as Turkey plans to impose higher duties on imports of textile raw materials in order to protect its domestic industry. Countries like Pakistan and Bangladesh which have a good pie of Turkish textile imports too have raised concerns over the reported move of the Turkish government. Speaking to fibre2fashion, Mr Tarik Bozbey, Head – Mediterranean Exporters Union said, “First of all, I believe in the spread of free and fair trade all over the world as in the last 15 years, free trade made global trade grow from US $1 trillion to $14 trillion”. He added by saying, “This also means a spread of wealth and growth of capacity to maximum optimum levels and scale economies, benefiting all industries and countries. This has also enabled about 260 million newcomers to join the middle class in the world population trade”. “When Turkey is exporting a product to the eastern countries, average tax rate is about 60 percent. However, when Turkey is importing any product from similar countries, the tax rate is only 9 percent. This is unfair trade and injures Turkish economy. “It is proven by investigations that, many products imported by Turkey have hidden support from the exporting countries, in the form of secret subvention between 20-50 percent. By regulations of World Trade Organisation (WTO), if there is a proven definite support and injury, anti-dumping tax can be imposed. “In the last few years, an anti-dumping tax was started, this year a preventive tax is in discussion and soon a declaration is expected, which will increase the wholesale price of imported goods up by 20-30 percent in fabrics and by 30-40 percent in clothing. “The retail prices will not and cannot increase at the same rates, but there will be an increase of 15-20 percent in retail prices which will trigger the inflation rates in Turkey. However, imports will fall and local production will increase. “In recent times, not only cotton, but all textile raw materials have risen abnormally. During the 2009 crises, purchases were minimum, decreasing by 50 percent in all products. The recovery caught everyone by surprise. Empty warehouses with almost zero stocks. “This rush to purchase increased the cotton prices. In case of synthetic fibres, one can step up output, but in cotton, one must wait for the season of planting and harvesting, which means a minimum wait of 10 months. “In addition, there have been floods and disasters which ruined the cotton crop, along with which; several countries have restricted cotton, yarn and fabric exports”, he informed. “I believe that, cotton prices will fall slightly during the Southern hemisphere harvesting period, i.e. between March to June and fall more between October and January. But we will not see a cotton price of US $1.4 / kg, for five years”, he wrapped up this very informative interview by saying.
- Turkey moves to cut Pakistani textiles import
The Consul of Ministers, Government of Turkey, has agreed to enforce protective safeguard measures on the import of Pakistani textiles with effect from July 24, 2011. According to a notification of Consul of Ministers issued on Saturday, there will be an additional 18 percent customs duty on the import of denim fabric from Pakistan, which increases the total duty to 24.5 percent. It said the step was aimed at protecting the local textile industry. The decision will be enforced from July 24, 2011. Turkey has taken the step on the complaint of its domestic industry, which claimed huge losses due to imports. This action is being taken under the provisions of the WTO Agreement on Safeguards. The Turkish government has also proposed to enhance the duty on garments from 9.5 percent to 52 percent, which will seriously affect Pakistani exports. The notification said that the duty on woven fabric has been increased to 24.4 percent, woven fabric with elastic yarn will be charged $1 per kg and all other yarn will be charged up to $4 per kg. Pakistan and Turkey have been working for signing trade agreements and facilitating land trade, but the enhancements of duties would negate all such efforts, exporters said. Pakistan has a significant share of Turkish market, particularly in denim and gray cloth.