TEXTILE PARKS TO BE SET UP

Afghanistan's Finance Minister Ashraf Ghani said that textile parks would be set up in Afghanistan on the lines of the textile parks established in Jordan, wherein Afghanistan will get concession on custom duty and the award of special quotas for the export of textile items to the US.

Initially two parks will be set up at Jalalabad and Qandahar, and $5 billion will be spent on the reconstruction of Afghanistan, paving the way for transportation of CIS cotton through Afghanistan to Pakistan.

TEXTILE SECTOR CONCERNED OVER BRAZILIAN IMPORTS

Representatives of the Argentinean textile industry have asked Federal Planning Minister Julio De Vido to introduce barriers on textile imports from Brazil.

Mr. De Vido said that he would take the message to Argentinean President Nestor Kirchner and urged the companies to remain united, as it will make it easier for the government to negotiate with Brazil.

STRONG DEMAND FOR FINE WOOL

Wool prices slightly recovered in A$ terms in recent weeks, while further falling in US$ terms. Demand was relatively stronger due to a large offering of fine and ultra-fine wool. With the US$ possibly declining in the coming weeks, prices are not expected rising. The level in Australian wool prices was once more driven by currency trends.

Stronger demand was also the result of offering of fine and ultra-fine wool for the last time in the current season in Newcastle. Prices of fine wool fell at the same time in Melbourne, probably due to strong competition from Newcastle's sales.

FINEST BALE OF WOOL PRODUCED

Inglewood producer Rick Goodrich, in Queensland's Southern border district, has grown the world's finest bale of wool, expected to be worth about $1 million.

The Australian Wool Testing Authority says the bale is the first to break the 11-micron barrier. Elders Queensland wool Manager Maurie McNeill said the entire Australian wool industry could benefit from the feat.

RANKED 56TH IN GLOBALIZATION INDEX 2004

Drawbacks in economic integration and technological connectivity have brought down
Bangladesh's rank in a list of countries with linkages to the global economy. Bangladesh has slipped two positions from a year ago to be ranked 56th in the globalization index 2004, jointly prepared by Management Consultants AT Kearney and the international journal Foreign Policy. The country was ranked 54 in the previous index released in 2003, and 48 in 2002. Bangladesh, however, is ahead of India that ranked 61 - the last but one.
The last country in the index is Iran that ranks 62. Pakistan ranked 46 and Sri Lanka 51.

SANCTIONS ON U.S. GOODS BY EU

A new set of sanctions worth millions of dollars has been imposed by the European Union (EU) on goods from the United States ranging from textiles to jewellery.

Aimed at getting Washington to change a disputed system of export tax breaks, the move could cost US companies $315 million this year. It has the backing of the WTO and the EU could respond to the tax breaks with the imposition of up to $4 billion worth of sanctions on US goods. However, according to European Trade Commissioner Pascal Lamy, the sanctions are not about retaliation but compliance.

EU TEXTILES GROUP DEVELOPS NEW STRATEGY

Participants at the first meeting of the European Union (EU) Textiles High Level Group have pledged to identify a research strategy to increase the competitiveness of the European textile industry. The strategy, to be presented to the European Council of Ministers in July, will include a proposal for research and development measures to be implemented in the areas of new materials and technical textiles.

The EU is the world's biggest textile exporter and second biggest apparel exporter with an annual turnover of about EUR200 billion.

TEXTILE EXPORTS TO EU DROPS IN 2003

According to the data compiled by the Association of Apparel and Textile Exporters Bulgaria's annual textile and apparel exports to European Union dropped to 975 million euros last year from 1.07 billion euros in 2002.

Figures showed 80% of the country's total sewn goods exports ended up in the EU but said many smaller firms face a tough future due to cheap imports from Turkey and China.

MORE COTTON QUOTAS IN OFFING

China, the world's top cotton user, plans to issue extra quotas of 0.5 million tonnes to 1.0 million tonnes in 2004 to fuel ravenous demand from the textile sector, traders and industry officials said.

Swirling market talk that China had planned to issue the extra quotas - separate from the 894,000 tonnes of low-duty import quotas given out for this year under WTO commitments - helped lift world prices.

China's textile firms prefer to buy foreign cotton, as domestic prices have been strong, quoted at 17,000 yuan ($2,054) a tonne due to brisk demand and lackluster domestic output.
China last year issued 50,000 tonnes of cotton import quotas in addition to the 856,250 tonnes issued under its World Trade Organisation agreement to cool domestic prices.

JIANGSU EARNS $ 9.4 BILLION FROM TEXTILE EXPORTS

The textile industry of East China's Jiangsu Province is ranked first in the sales revenue and second in profit. In 2002 the province earned US$9.4 billion from the export of its textiles and garments, accounting for 28 per cent of the provincial total exports.

The province also ranks No. one in both production capacity and output of textiles, including yarn, woolen fabrics and cashmere. It ranks second in the production of chemical fibers. Its woolen fabrics output makes up half of the national total while its yarn-dyed fabrics makes up 1/3 of the national total.

Jiangsu Province is also one of the most developed provinces in terms of garments production, with annual output and profit all in the front ranks in the country.

ASIAN SUPPLIERS DID NOT FILL QUOTAS

EU's licensed imports slightly declined in category 7 (women's and girls' shirts and blouses) in 2003, reflecting the weakness in pressure from Asian low-cost countries. While quota fill rates were far from reaching 100%. EU's imports from Pakistan again surged.

EU's imports of women's shirts from Asian countries will probably not boom in the post-quota era. Licensed imports even slightly declined in 2003, reflecting a weakness in demand from the European Union although the euro sharply rose against all Asian currencies in the past year. Shipments from leading Asian supplier India slightly increased in 2003 on or after 80 million pieces to 83 million pieces.

TEXTILE EXPORTS MAY REACH $87 BILLION BY 2010

The potential growth opportunity opening up for India's textile sector will reach about $87-billion by the year 2010, with export business alone accounting for $40 billion.

The exponential growth over the next five years would also see the country raising its share in the global textile trade to 6%, according to projections made by the credit rating agency Crisil in its `Vision' statement for the domestic textile industry. The Indian Cotton Mills Federation (ICMF) has commissioned the study.

The ICMF Chairman, Mr B.K. Krishnaraj Vanavarayar, said the report had also estimated that the per capita cloth consumption would increase to 32 meters.

GOVT TO GIVE SOFT LOANS TO TEXTILE UNITS

India is the world's largest cotton yarn exporter, but it does not excel in export of fabrics or made-ups, and the garments exported by India are generally of lower value, compared to competing products.

The government has now decided to give a big push to the domestic textile processing industry, a highly fragmented sector, with 93% of capacities in the unorganised sector. Fresh investment in textile processing would now be eligible for a higher interest subsidy under the Technology Up-gradation Fund Scheme (TUFS). The government has decided to give corporate proposing to set up processing units with a minimum capacity of one lakh metres per day.

USE OF LOCAL TEXTILES DEMANDED

To help the ailing textile industry of the country political parties have been urged by the Indonesian Synthetic Fiber Makers Association (ISFMA) to use local textiles in their election campaign. The Association said that it would be ironic if the political parties chose imported products while they vowed to improve the country's prosperity in their campaigns.

Knitting mills, who would in turn be used by the garment industry to produce apparel, also use the thread. Kustarjono estimated that all these products would require about 24,800 tons of synthetic fiber, equal to one-and-a-half months of production of the country's synthetic fiber companies. He admitted that domestic fabrics are less competitive than imported products.

SHIPMENTS TO US EXPECTED TO JUMP IN 2004

Clothing and textile giants of Indonesia are confident that shipments to the US will surge in 2004. Officials from the West Java Textile Association said they see increased orders due to anticipated labour problems in other key supply nations such as Mexico and Canada.

Chairman Ade Sudrajat said those countries are likely to face serious problems over pay and added his country's sewn goods producers will look to take advantage during both the years 2004 and in 2005 when quotas are phased out.

GOVT SUPPORTS FUNDING IN TEXTILE

To produce new collections and increase competitiveness small and medium-sized textile, clothing and footwear firms are being encouraged to apply for funding from Italy's Industry Ministry. The financial aid is aimed at small enterprises with an annual turnover of up to 7 million euros and medium-sized companies with an annual turnover of less than 40 million euros.

According to a report there are four types of support: funding to cover 25% of the project's cost to a maximum of 75,000 euros; a 1% interest rate on loans of up to 75,000 euros to cover 25% of the project's total cost; an extended bank loan at half the standard interest rate up to 150,000 euros; and up to 90,000 euros financial aid covering 30% of the project's total cost.

NEED TO FOCUS ON TECHNICAL & DESIGN STRENGTHS

According to a government-backed report, Japan's textile and clothing industry must focus more on its technical and design strengths than its production and distribution operations if it is to survive in the future. The report was titled "Way forward for and measures to be taken by Japan's textile industry".

The report says that yarn makers should continue to develop new fibres while small and medium-sized firms will need to restructure their operations if they are to stay in business. The blueprint by the country's Textile Industry Sub-Committee of the Industrial Structure Council also backed the continued distribution of $25 million in annual subsidies to textile and clothing firms until at least 2009.
MITSUKOSHI TO DEVELOP 15 APPAREL MAKERS
With the 15 garment manufacturers Mitsukoshi Ltd. is planning to produce women's clothes using textiles from Toray Industries Inc.

The department store was expected to start selling the clothes from March 20 in its largest stores. The 15 apparel firms, including Tokyo Style Co., Sanyo Shokai Ltd. and World Co. are expected to supply 25 brands, each averaging two or three original products.

The clothes will be developed using eight types of textiles, including a stretchable material and another that is based on bamboo. The department store operator hopes that focusing on limited-stock and early-release products will generate sales of 150 million yen (US$1.38 million).

CLOTHING WITH DIETARY SUPPLEMENTS- A BIG HIT

Japanese fabric and clothing makers are fiercely competing in the sale of T-shirts and other clothes containing popular dietary supplements. Nutritive substances, including amino acids, vitamins, xylitol and food additives are gaining the spotlight as ingredients in clothing.

People who wear garments containing such supplements are said to be able to maintain the PH balance in their skin or obtain cool comfort after perspiring. Clothing makers have high expectations for nutritive substances that they believe will become highly promising revenue sources. But a major department store said it is difficult to understand the effect of the supplements in clothing.

INVESTIGATION OF FOREIGN FIRMS

The Tailors and Textile Workers Union demanded thorough investigation of the overseas companies planning to operate within the Export Processing Zones (EPZ). Mr William Aketch, the Union's Secretary General, said companies with bad reputations in their home countries were being allowed into Kenya.

He named Kenya Knit, situated in Mazeras, Senior Best Garments and Emkay as among the firms that continue to violate workers' rights.

EXPORTS OF PSF INCREASED IN 2003

Korea's exports of polyester staple fibers rebounded in 2003, due to a sharp rise in sales in the first part of the year. Shipments to a large series of destinations steadily increased, reflecting new investments in spinning capacities all over the world, as clearly indicated by our exhaustive statistical report.

Korea's PSF exports had reached a peak in 2000 with 814,000 tons shipped to foreign countries for a value of US$682 million. Korea's sales were boosted by growing demand from China in the past decade. From 78,000 tons in 1992, sales to the PRC rose to 344,000 tons in 2000 before falling to 172,000 tons in 2003. China heavily invested in new polyester capacities in the past years in order to be less dependent on imports. In addition, anti-dumping duties were recently imposed on PSF imports from Korea.

TEXTILE INDUSTRY CAN EMULATE INDIA

Malaysia can emulate India's success in the textile industry by sending its fashion designers to train in India, says the President of Clothing Manufacturers Association of India, Premal Udani. He said the textile and garment industry in India was worth US$50 billion with many Indian labels like `Oobe', `Louis Phillipe' and `Helina' having gained acceptance in the international market.

Today, India produces a whole range of apparels ranging from traditional outfits to the most contemporary, all of high quality and at competitive prices.

CLOTHING SECTOR AIMS TO RECOVER JOBS

The Vice President of the National Clothing Chamber (CANIVE), Antonio Kuri Alam, announced that the sector's short-term goal is to recover the 180,000 jobs that the sector has lost over the last three years. Kuri Alam pointed out that this sector currently employs 600,000 people in 11,200 different companies, making it very important to the country's development.

He said that recovering the domestic market would also be a priority during the upcoming years through the "Mexico is in Style Program", that is supported by the government's various dependencies.

WORRIES ABOUT FREE TRADE DEAL WITH CHINA

The textile and clothing sector of New Zealand is worried about the free trade deal with China. The Green Party fears a free trade agreement with China will sound the death knell for New Zealand's clothing and textiles industry. Preliminary talks on the subject with China have gone well and further negotiations are scheduled for early next year.

The Government has told China that it recognises its 'market economy status' and wants to be the first Western nation to achieve a free trade deal. Under the possible agreement, New Zealand would gain greater access for its agricultural products, in return for reducing tariffs on Chinese textiles and garments.

APPAREL SECTOR TO BOOST EXPORT TO $4.5 BILLION BY 2007

The Sri Lankan government and private sector stakeholders of the apparel sector have joined hands to increase the industry turnover from its present figure of $2.3 billion to $4.5 billion by 2007.

The apparel sector task force appointed by the Government has formulated a five-year strategy to achieve this target by transforming the industry from a 'contract manufacturer' to a provider of a 'fully integrated service' able to penetrate the premium market segments in the world.

BORAS TO SHIFT PRODUCTION TO KREENHOLM

Swedish textile firm Boras Wafveri is planning to shut down one of its spinning and weaving mills in Sweden this year and shift production to Kreenholm, an Estonian textile factory it owns, according to a report. The Swedish plant employs 70 people.

GOVT BANS IMPORT OF SECOND-HAND UNDERWEARS

The Tanzanian government has banned the import of second-hand underwears. An official from the Tanzanian Bureau of Standards (TSB) said they were acting because of the possibility of users developing skin diseases.

But market traders have expressed their unhappiness at the decision, saying there is no proof that imported clothes posed any risk. Many Tanzanians wear second hand clothes because they are much cheaper.

FTA WITH AUSTRALIA LIKELY TO TRIPLE GARMENT EXPORTS

According to the President of the Thai Garment Manufacturers Association, once the free trade agreement between Thailand and Australia will be implemented, Thai garment exports to Australia are likely to more than triple from about US$33 million a year.
Thailand's garment exports to Australia are currently relatively small compared with the country's total [garment] exports estimated at $3.05 billion, mainly due to Australia's import tariffs set at as high as 25%, making Thai garments uncompetitive in the Australian market.

TEXTILE SECTOR SEEKS 60 MILLION BAHT

For creating 2,000 new fashion entrepreneurs nationwide the textile and garment sector wants the government to set aside 60 million baht. The Thai Garment Manufacturers Association (TGMA) proposed a new entrepreneurship project to the Department of Industrial Promotion, aimed at encouraging One Tambon, One Product (OTOP) operators to build their own brand names, said Suchart Chantranakaraj, the Association's President.

The TGMA and the Thailand Textile Institute have organized the Fashion Brand Network as a pilot project to develop fashion entrepreneurs' competitiveness.

TEXTILE PRODUCERS URGE WTO TO DELAY LIFTING CHINESE QUOTAS

Turkish and American textile and apparel producers issued a joint declaration, urging the World Trade Organization (WTO) to delay lifting of quotas on Chinese goods until December 31, 2007.

Signed by various Turkish and American organizations, including the American Textile Manufacturers Institute (ATMI) and Turkey Ready-to-wear and Textile Exporters Union (IHKIB), the declaration said that China would hold more than 50% of the global textile and apparel trade once the quotas were totally lifted from the originally planned date, 2005.

Turkish textile producers say that Chinese and Turkish textiles and apparel are at present in fierce competition within the borders of the EU, stressing that Turkey is experiencing problems in competing with Chinese goods despite advantages stemming from its customs union with the EU.

EPB EXPECTS TO START SILK PRODUCTION

The Uganda Export Promotion Board (UEPB) is expecting to start silk production in Uganda. The Board identifies silk as a potential export crop that needs to be promoted. Main aim is to diversify and increase exports in a bid to reduce dependence on traditional crops whose prices keep fluctuating, said Othieno Odoi, the Senior Trade Promotion Officer.

He said the change mainly focuses on silk because it addresses the issue of export, which is in line with government's policy of export diversification. Silk is a high value crop in terms of earning. With new silk processing machines; silk can be exported as a finished product, with more value.

FREE TRADE AGREEMENT RELEASED

US trade authorities have published details of the duty-free agreement concluded with five Central American countries, including specific rules of origin such as short-supply provisions and conditions for cumulating origins with Mexico and Canada. US authorities may also re-impose tariffs or inspecting Central American plants. Details included into the agreement will have a decisive impact on the level in US apparel imports from the region and from Asia in the post-quota period.

The US will effectively grant duty-free and quota-free entry to apparel from the five Central Ameri-can countries, with retrospactive effect from January 1st. Until now, only apparel made from US finished fabrics were offered duty-free entry.

COMMITTED TO ENDING TEXTILE QUOTAS

The United States remains committed to eliminating textile import quotas at the end of the year despite fears that the move will hurt poor countries and American textile producers, a US trade official said. The official said that the Bush administration has heard from several textile-exporting nations that want the quota system extended. They fear China will dominate the US import market when the quotas are lifted.

World textile trade has been dominated since the early 1960s by a quota system that governs the amount of textile and apparel products foreign producers can ship to large markets like the United States, Canada and the European Union.

US textile producers also are concerned about a flood of imports from China if the quotas are eliminated. They already have asked the Bush administration to reinstate some eliminated quotas on bras, dressing gowns and knit fabrics from China.

COTTON LIKELY TO BE SOLD AT 15% DISCOUNT

The Khlopkoprom [Cotton industry] Company, Uzbekistan, is planning to sell cotton fibre for 15% less than the Liverpool cotton exchange's price to textile companies with foreign direct investments (FDI). The cotton fibre, however, should be used only for production and should not be resold, the source said. The new price will be valid for cotton supplies from the new harvest.
Uzbekistan plans to attract over $1 billion in investments in its textile industry until 2005. The money will be used to build or upgrade 40 cotton processing factories, which is expected to increase cotton fibre processing to 470,000 tonnes a year from 240,000 tonnes.

APPAREL EXPORTS TO USA DECREASED

US apparel imports from Vietnam will certainly fall in 2004 due to quotas imposed by Washington from 1 May 2003. In sharp contrast with the continued surge of 2002 and 2003, shipments will decline in a series of sensitive US categories. Vietnam's exports of textiles and apparel already fell 15% in January from the same month last year, according to Vietnamese authorities.

US imports from Vietnam boomed in 2001, 2002 and the first part of 2003, after US tariffs were lowered to the MFN level in application of a bilateral agreement.
After quotas were finally imposed from 1 May 2003, exports suddenly fell by the end of the year. With US limits being rapidly reached in a series of categories, Washington placed a few embargoes.

TEXTILES INDUSTRY SEEKS US$ 1 BILLION INVESTMENT

The Vietnam Textiles Association (VITAS) has asked the Government to provide a credit package worth an estimated 1.5 trillion VND (about US$ 1 billion) through to 2009. Half of the sum will go to businesses under the Vietnam Textiles and Garment Corporation (VINATEX) and the rest to private businesses, said the VITAS.

The Association has also proposed that the Government refund VINATEX its whole income tax payments for the period under review, putting it as the Government's investments. In the past three years, VINATEX borrowed 1.5 trillion VND in loans from the Development Support Fund, mostly for textile projects. The funding, however, made up just 12.3% of its investment capital for the 2000-05 plan, thus failing to support the industry to operate at full blast.