52% DECREASE IN NON-WOOL CONTAMINANTS

According to a survey conducted by CSIRO Textile & Fibre Technology (CTFT) non-wool contaminants has dropped 52 % over the past ten years in Australia. The survey was conducted over a six-month period and involved 20 global processing mills.

WORLD'S FIRST NON-WOVEN WOOL PLANT

The world's first non-woven wool plant was commissioned in the rural Australian wool-growing centre of Albury, with developers hoping to produce cheaper fabric for multiple uses, ranging from sportswear to protective clothing.

The plant, a joint arrangement between private spinning group Macquarie Textiles and the wool growing industry's research and development arm Australian Wool Innovation (AWI), is seen in the industry as a major step towards the development of new products.
It will produce non-woven wool by using a needle punch process that converts wool fibres directly into fabric. The process provides a 30% cost saving over traditional wool fabrics by eliminating the conventional spinning and weaving stages.

LOW SHRINKAGE WOOL INTRODUCED

Scientists are working out to provide a solution to prevent woollen garments from shrinking in the wash. Now the pricey woollen outfits wrecked after a quick wash could become a thing of the past, with news that sheep can be bred to produce a new quality coat.

Researchers at the CSIRO in Perth say they have found a genetic link in sheep that have wool resistant to shrinking. Scientists say sheep can be bred to produce wool, which is less prone to shrinkage when washed. Wool shrinkage, known as felting, is a trait sheep inherit. It can now be manipulated via selective sheep breeding. The discovery that sheep inherits felting should allow wool- growers to identify and select sheep which naturally produce low-shrinkage wool.

US BECOMES MAJOR APPAREL EXPORT MARKET

According to Minister of Industry Abdullah Fakhro, with the introduction of a free trade agreement between United States and Bahrain, US has become biggest apparel export market. The Minister, on a visit to local apparel production site, was speaking in promotion of a programme aimed at increasing the industry's competitiveness in foreign markets.

Bahrain's apparel export market, which benefits from duty-free imports of raw materials and machinery, is worth about US$300 million annually and employs 27% of the country's workforce.

JUTE YARN DEMAND INCREASED

Bangladesh economy gets fresh blood, as the demand for jute yarn in the international market increases gradually. Sources close to Bangladesh Jute Spinners' Association said, export of Bangladeshi jute products, particularly jute yarn, increased reasonably in the fiscal 2002-03.

Quoting statistics, they said, the total quantity of jute goods exported in the fiscal 2002-03 was 1,89,679 metric tons, while it was 1,83,625 metric tons in the year 2001-02. It means, the export of jute goods from Bangladesh has increased by 3.30%.

PREPARING THE POST-QUOTA ERA

US apparel imports from Bangladesh again fell in the past three months as a first sign of a possible decline in Bangladeshi apparel exports in the post-quota period. In order to compete with China, India, Pakistan and Vietnam, the country urgently needs improving its infrastructure while investing in new textile facilities.
Heavily dependent on its apparel exports, Bangladesh is one of the poorest countries in the world. The sudden fall in sales to the United States could announce a disaster in the coming year, after US and EU quotas will have been removed.

Bangladesh's total apparel exports are actually enjoying a strong growth, thanks to a jump in shipments to the European Union. While depressed by the fall in the US$, Bangladeshi apparel sales were boosted by the rise in the euro and the British pound.

EUROCOTON JOINS CALL TO EXTEND QUOTA PHASE-OUT

The Committee of the Cotton and Allied Textile Industries (Eurocoton), the Brussels-based trade association representing textile companies in the European Union, Turkey and Switzerland, is the latest international industry body to join the appeal to delay the removal of quota restrictions on textiles and clothing imports from China due January next year.

Eurocoton, which represents 2,000 cotton ginners, cotton and man-made spinners, weavers and home furnishing, industrial and technical fabrics makers and their approx. 200,000 employees in Italy, Germany, France, Spain, Greece, Belgium, Austria and Sweden alone, has formally endorsed the "Istanbul Declaration", which calls on the World Trade Organization (WTO) to hold an emergency meeting on the quota phase-out by 1 July 2004.

PROTECT DOMESTIC TEXTILE MARKETS

Brussels has opened a new front in the global trade wars by hitting out at cheap clothing exports from Asia and the United States. Pascal Lamy, the European Union (EU) Trade Commissioner, has accused the US, China, India, Pakistan and Bangladesh of competing unfairly by continuing to protect domestic textile markets via high tariffs and non-tariff barriers. His comments in Brussels immediately fuelled fears that the EU could join the US in imposing restrictions on Chinese clothing imports, hitting European consumers.

TEXTURBOL EXPORTS APPAREL TO THE US

Texturbol, the sole Bolivian producer of polyester fiber fabrics is starting exports of polyester made apparel to the US, benefiting from the tariffs established under the ATPDEA trade agreement. The company produces monthly 240,000 kg of polyester fabrics, and also 30,000 dozen of socks and undergarments made with synthetic fibers.

ART TEXTILE TO EXPAND ITS PRODUCTION

Art Textile is planning to tap the growing demand for cotton fabrics, and would expand its annual production capacity to 52 million metres from the current 26 million metres, said Vice-Chairman and Executive Director Chen Dong.

Chen said, adding the capital investment involved was between 60 million and 70 million yuan. The usage rate of the current production facilities in Fuzhou was between 70% and 80%, which mainly make knitted fabric for the production of men's and women's outer garments, working suits, trousers and windbreakers.

"We are planning to supply cotton textile to the domestic casual wear maker" Chen said, adding that the company's own research and development was capable of meeting customer demand.

EU INCREASE TEXTILE QUOTAS

The European Union has decided to increase quotas for Chinese textiles when 10 more nations join the Union on May 1. The new quotas cover 37 categories of textile products, which are currently under quota management among EU members but not in the ten new EU states.

The EU will have its largest enlargement, as ten countries will join the 15-member bloc. They include the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia. The quota number is consequently adjusted so as to cover exports to the ten new members.

The increased textile quota is calculated on a formula consisting of an average of Chinese exports in the last three years to the ten new members. Under the agreement on Textiles and Clothing, all quotas restricting textile and clothing trade between WTO members will be eliminated by December 31, 2004.

TEXMAS STARTS TO BUILD 'TEXTILE CITY'

The Dubai-based Textile Merchants Group (TEXMAS) launched a $60-million "textile city" to help promote the ambitious Gulf Emirate as a major trading hub.

Dubai Textile City is to be built on approximately six million square feet (557,000 square metres) of land in the Emirate's Al-Warsan area and is to be completed by mid-2005.

NO DELAY IN TEXTILE QUOTA ELIMINATION

The European Union (EU) has rejected requests from several world textile industry associations to the effect that quota's removal should be postponed.

Acting on these requests EU Trade Commissioner Pascal Lamy rejected any delay in the process.

Extending the textile quotas will not solve any thing. We cannot turn the clock back, he replied to requests made by the US, Turkish and African textile industry associations having recently requested a postponement in quotas' removal while European associations could be tempted to join them.

ASIAN SUPPLIERS DID NOT FILL THEIR QUOTAS IN 2003

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 from 80 to 83 million pieces. Although filled, India's quota was less saturated than in 2002 when exports to the European Union had sharply risen. Due to adjustments in India's limit operated by Brussels, effective quota fill rate was 95.46% against 99.91% in 2002.

ZIMMER PROVIDES POLYESTER EQUIPMENT FOR CHINA

Zimmer has signed contract with Wujiang Chemical Fiber Textile Mill on providing polyester equipment for this private-owned mill. Under the term of agreement, Zimmer will provide technology, equipment, design and service for polyester condensation polymerization equipment, with an annual capacity of 350,000-ton PET for textile. 90% of the products can be spun into polyester oriented yarn and traction yarn.

WTO REJECTS INDIAN PLEA

India has failed to convince the World Trade Organization of its case that it was being discriminated against while Pakistan was granted special trading concessions in textile exporting.

Indian appeal was rejected by WTO. New Delhi claimed that Pakistan's entry to the scheme was a "reward" for co-operation in the fight against terrorism and that it "has affected $250m of Indian textile exports, which face higher tariffs than their Pakistani equivalents.

The World Trade Organization also rejected an appeal by the European Union against a ruling that it unfairly discriminated against India by granting Pakistan special trade privileges under a scheme for countries combating illicit drug production.

ITCB REQUEST MEMBERS TO FOCUS ON AGREEMENT

The developing country members have been requested by the International Textile and Clothing Bureau (ITCB) to focus on "full and faithful implementation" of the Agreement on Textiles and Clothing, besides being vigilant to disguised form of protectionism once the existing quota regime is dismantled on December 31, 2004.

In the meeting the ITCB Chairman and India's Ambassador to WTO, Mr K.M. Chandrashekhar, urged the members to be prepared to deal with the issues that still remain of concern.
These include, he said, the upcoming major review of implementation of the agreement in different WTO bodies, the non-availability of carry-forward quotas and the European Union's decision to widen the scope of its quota restrictions to the markets of 10 more countries that are set to join the EU from May and the administrative arrangements that were part of the quota regime which remained another layer of non-tariff barriers to exports of textiles from developing world.

POST MFA - INDIA COULD BE A BIG WINNER

According to a McKinsey study commissioned by DHL, with the dismantling of multi-fibre agreement (MFA) and the end of quota restrictions in December 2004, India could be the big winner after China. According to the DHL-McKinsey Apparel and Textile Trade Report, the value of the global textile and apparel industry is likely to go up to $248 billion by 2008 with China, India and Pakistan expected to be the ``clear winners''. The report forecasts that India has the potential to increase its share from the current 4% to 6.5% valued at $ 16 billion by 2008.

Outlining the key imperatives for India, Mr Charlie Taylor, Partner, McKinsey Singapore said that while some progress had been made such as de-reservation and piece rates for garment exporters, key reforms are still required if India is to capitalise on the emerging opportunities. Some of the areas identified in the report include, creating level domestic market playing field by extending de-reservation, uniform application of excise taxes and further reduction in import duties on apparel, textiles and machinery. Another important point was revising of labour laws, improving infrastructure and improving availability of high quality textile to increase foreign direct investment.

NO TARIFFS ON CHINESE TOWELS

Japan said it has decided not to impose safeguard tariffs on imported Chinese towels to protect the Japanese industry. A government probe, which started in April 2001, showed the volume of Chinese towel imports to Japan grew only 7% to 8% annually, a growth rate insufficient to warrant safeguard tariffs, the Trade Ministry said.

"We want to protect our domestic industry but we have to play by the international rules set by the World Trade Organisation", said Trade Minister Shoichi Nakagaw. An industry Association of Japanese towel makers asked the trade ministry in February 2001 to impose special tariffs to stop surging towel imports, especially from China and Vietnam, which, they claimed, were hurting domestic producers.

JIB ATTRACTS TURKISH CLOTHING MAKER

Jordan Investment Board (JIB) held a workshop and launched a marketing campaign targeting Turkish clothing manufacturers in Istanbul to attract the industry's top investors to the Kingdom.
Thirty-two participants, representing Turkish clothes manufacturers, took part in the workshop, which highlighted the added value and benefits of investing in Qualifyied Industrial Zones (QIZs).

CAMPAIGN TO IMPROVE COTTON PRODUCTION

Genesis Foundation recently launched a campaign in Kitui which aims to improve cotton production in Kitui, Mwingi, Machakos and Makueni districts. The cotton farmers in these four districts are set to benefit from a campaign which aims to revive the collapsed industry. The campaign will involve all the stakeholders in the industry. According to Bishop Robert Mutemi of Global Vision Ministries said that the future of the industry depended on boosting farmers' morale by helping lower the high production costs.

EXPORTS OF POLYESTER STAPLE FIBERS 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.

Korea's exports of polyester staple fibers (HS 550320) rose 5.79% in 2003 after declining 12.48% in 2001 and 13.82% in 2002.

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 JOINS TURKISH AND US COUNTERPARTS

The Mexican textile industry joined its Turkish and US counterparts to call for WTO action against what they call "the crucial fight to prevent global monopolisation of this sector.

The Mexican National Chamber of Textile Industry (CANAINTEX), the Istanbul Textile and Apparel Exporters Association (ITKIB), the American Manufacturing Trade Action Coalition (AMTAC) and the American Textile Manufacturers Institute (ATMI) all believe that unlimited access by China to global textile and apparel markets will result in massive job disruption and business bankruptcies in dozens of countries dependant upon textile and clothing trade. And they are asking the WTO to extend the textile and clothing quota phase-out process until 31 December 2007.

TEXTILE SECTOR REPRESENTS 14% OF INDUSTRIAL OUTPUT

According to the Trade and Industry Chamber of Casablanca (CCISC), the textile-clothing sector represents 14% of the overall industrial production in Morocco with 8 billion Dhs (US $800 million) of added value, i.e. 15% of the industrial added value. In an Economic Report synthesizing the progress scored in various socio-economic realms in Morocco, CCISC underlined that the textile sector drained some 2 billion Dhs (US $200 million) investments, that is 14% of industrial investments and 34% of industrial companies' exports.

GOVT URGED TO BAN PRINT FABRIC IMPORTS

The Federal Government has been urged by the Nigeria Textile Manufacturers Association (NTMA) to ban all print fabrics import in order to save the textile industry of Nigeria. Only full implementation of the ban on printed fabrics will save the textile industry from total collapse, said NTMA Vice Chairman Saddiq Kasim.
He said that there was a need to establish a task force to supervise the ban and make it more effective. The enforcement of the ban will boost local production, create employment opportunities and also encourage local cotton growers.
Kasim said that the massive smuggling and importation of textiles had led to the closure of more than 50 textile mills in the country since 1997. Textile industries that provided more than 137,000 jobs in 1997 now engage only about 57,000 workers and this is attributable to the increase in illegal importation of textiles.

GARMENT INDUSTRY UNFAZED BY END OF QUOTA

According to the garment players when the US government ends the quota system imposed on garment imports they will continue operation and will not close shop. Un-moved by the prospect of free competition the local industry players belonging to the Foreign Buyers Association of the Philippines assured the Department of Trade and Industry that Philippines will remain a favourable environment for their operations.

By 2005, garment-exporting countries like the Philippines will no longer benefit from export quotas granted by the United States. The quota system gives certain garment exporting countries like the Philippines an assured market.

GUTA TO INVEST US$1.5 MILLION

Planning to upgrade two of its Russian broadcloth factories, Guta Textile is investing US$1.5 million. The investment, according to chairman Arkady Samokhvalov, is expected to increase the factories' combined annual output by 59% to 3.4 million metres of fabric. Guta Textile currently operates seven factories and plans to increase total company output by up to 11% this year.

CHANGE IN TEXTILE QUOTA SYSTEM

With the deadline for ending the quota system drawing to a close, Sri Lanka's multi-billion dollar garment industry, one of the main sources of export earnings which sustains around a million direct and indirect workers, is gearing itself to meet new challenges in the quota-free era.

The task is gigantic, especially in view of the unknown nature of challenges in this new era. Yet the island's garment industry is confident that, despite threats, they will not only be able to compete and survive but also thrive, as some entrepreneurs believe that the end of the quota system will provide new opportunities to explore new markets.

Under the Agreement on Textiles and Clothing the current quota system for international garments and the clothing trade will end on December 31 and on January 1 next year this sector will be fully integrated into the WTO General Agreement on Tariffs and Trade.

DENIM EXPORTS SHARPLY FALLING IN 2003

Taiwan's exports of cotton denim fabrics dramatically fell in 2003, reflecting relocation of Taiwanese textile industry to mainland China, surging competition from India and a slowdown in global demand for denim apparel.

Taiwan's exports of cotton denim fabrics finally fell 29% in volume and value terms in 2003 in sharp contrast with brilliant successes gained in the previous year.

Taiwanese denim makers were confronted with a large series of difficulties, including a dramatic fall in specific markets, such as the US one. With denim apparel plants closing in the United States, Taiwan's exports of denim fabrics to the prime destination were more than halved in 2003.

EXPORTS OF POLYESTER FILAMENT FABRICS INCREASED

Taiwan's exports of polyester filament fabrics sharply recovered from the fall experienced in the first part of 2003, although slowing down in January 2004. Direct sales to China and a large series of low-cost countries surged in the past months while exports to Hong Kong's trading firms were again down.

After showing a double digit growth in the second half of last year, Taiwan's exports of dyed polyester filament fabrics (made from textured yarns) rose only 4.90% in volume terms in January, due to an increase of 1.68% in average unit value, exports were up 6.24% in value terms at US$44 million.

Taiwan's shipments of these dyed polyester fabrics reached US$649 million in 2003, up 7% in volume terms and only rising 2.79% in value terms after prices were down nearly 4%.

QUOTA EXTENSION EFFORT

The US textile industry's effort to obtain support for extending textile and apparel import quotas beyond 2004 is gaining momentum as Mexico, Turkey and 13 African nations have come aboard. Expressing fear that world textile trade will be overtaken by only a handful of nations if quotas are allowed to expire January 1, some textile manufacturing and importing nations would like to see quotas extended until 2007. Trade Association representatives have signed the so-called Istanbul Declaration, which calls on the World Trade Organization (WTO) to convene an emergency meeting on July 1 to reassess the proposed quota phase-out.

Signatories to the Istanbul Declaration are having second thoughts about the January 2005 deadline for ending all textile and apparel quotas. They say the agreement was originally intended to benefit textile producers worldwide, but they point to "numerous credible studies" that show textile trade will be dominated by China, India and, to a lesser degree, countries like Pakistan and Bangladesh. The declaration says China's admission to the WTO has irrevocably altered the reasonable transformation of global production and sourcing patterns that the elimination of quotas had originally intended.

SHARP REBOUND IN TEXTILE AND APPAREL EXPORTS

Turkey's textile and apparel exports sharply recovered in the past months, according to official data. Exporters continue taking advantage of a general improvement in Turkey's economy.

Turkey's apparel exports were up 28% at US$1.23 in January 2004 from the same month last year while textile exports rose 27.9% to US$368 million, according to the Turkish Exporters Assembly (TIM).

Turkish exporters finally enjoyed a sharp rise in sales to foreign countries in 2003, and especially to the European Union.
Total exports of knitted products (HS chapter 61) rose 28.8% at US$5.73 billion while exports of woven apparel were up 16.70% at US$3.80 billion. Textile and apparel exporters took advantage of a spectacular economic recovery after years of financial difficulties.

IMPORTS AND EXPORTS OF DENIM FABRICS

Thailand's imports of cotton denim fabrics declined in 2003 after surging in the prior year, reflecting lower global demand for denim apparel and higher costs met by Thai apparel producers. Denim exports sharply increased in 2003 with domestic producers shifting to foreign customers in order to offset the decline in the domestic market.

Thailand's imports of cotton denim fabrics (HS number 520942) fell more than 33% in baht terms in the past year after rising 177% in 2002. Imports were down 31% in American dollar terms at US$13.75 million from a peak of US$20 million reached in 2002.

TEXTILE SECTOR LAUNCHES £3 MILLION 'BIG PUSH'

British apparel and textile companies are being urged to take advantage of a new government-backed scheme to boost their competitiveness through better skills and qualifications. The Big Push campaign, an initiative of newly licensed Sector Skills Council Skillfast-UK, has received £3 million in government funding for the first three years of its five-year licence. It will attempt to bring together textile sector employers, training providers and funding agencies to identify skills barriers within the domestic industry and tackle them through the coordination of resources and investments. According to Skillfast-UK Chief Executive Linda Florance, The Big Push represented an opportunity for clothing manufacturers to help themselves while the political door was open to them.

IMPORT OF COTTON WOVEN SHIRTS DECLINED

US imports of cotton woven shirts for men and boys declined in January after slightly rebounding in the past year. Prefiguring the post-quota era, imports from China surged in January while shipments from a series of other countries sharply fell at the same time. China's prices are expected substantially declining in the coming year.

The market is dominated by shipments from specialists of woven shirts in South Asia. Bangladesh, India and Sri Lanka together accounted for 32.61% of US imports in volume terms in 2003.

FREE-TRADE AGREEMENT WITH MOROCCO

The United States and Morocco have concluded a free trade agreement, including US duty-free access for Moroccan apparel under specific rules of origin. Morocco-located plants will have the possibility to use third-country fabrics and to rapidly double shipments to the US.

After Chile, Jordan, Australia and Central America, Washington completed a bilateral duty-free agreement with Morocco.
Under the deal, Moroccan apparel exports will enjoy a duty-free access into the US territory, if made from either US or Moroccan yarns and fabrics. In order to boost Moroccan apparel exports to the US, however, Washington accepted granting a duty-free quota of 30 million square meters of apparel made from third country fabrics. This amount only accounts for 0.2% of total US apparel imports.

IMPORTS OF BLUE JEANS NOT RAISED IN 2003

For the first time in ten years, US imports of blue jeans did not really rise in 2003, as a result of the slowdown in domestic demand in the United States. Mexico retained a very large share of the US market with shipments from a large series of low-cost countries surging, however, as a clear sign of radical changes still to come in the post-quota period.

US imports of cotton blue denim jeans for men and women (HS 6203.42.40.10 and 6204.62.40.10) were far from booming in the past year. Shipments from foreign countries only rose 1.28% in volume terms at 30.5 million dozen, in sharp contrast with the 14% increase of 2002, even falling 9.10% in December from the same month of 2002.

Imports of cotton blue jeans rose 3.87% in value terms in 2003, for the first time exceeding US$3 billion, after average unit value increased by 2.5%. Shipments actually tripled in volume terms from 1995 to 2002, before being nearly stopped in the past year.

FIVE TEXTILE JOINT VENTURES LAUNCHED

Uzbekistan launched five textile joint ventures worth a total of $56.3 million, a source in the state-run joint stock company Uzbeklegprom said.

The five enterprises are capable of exporting $64 million worth of products a year. Uzbekistan plans to invest over $1 billion in the textile industry and to increase the yield final products in the industry's total output to 50% before 2005. Forty enterprises are to be re-equipped or constructed in order to increase the amount of cotton fiber processed in 2005 to 469,100 tonnes and the textile export to over $650 million.

Uzbekistan is the world's fifth largest producer of cotton fiber. It harvests 3.5-3.7 million tonnes of raw cotton and makes 1 million tonnes to 1.2 million tonnes of cotton fiber a year.

KNITTING MILL LAUNCHED

A new spinning and knitting mill worth 47.75 million euros has been set up by the Uzbekistan-China's Oyim-Tekstil joint venture. The mill's projected annual capacity is estimated at 4,365 tonnes of cotton yarn and 4,200 tonnes of bleached textile fabric. The construction of the spinning and knitting mill was financed using a loan of 30.37 million euros.

TEXTILE EXPORTS TO EU & TURKEY SUBJECT TO LICENCE

Under a newly issued decision of Ministries of Trade and Industry, textile and garment exports to EU and Turkey in 2004 are subject to automatic export license issuance. As regards to 3 cat to Turkey (cat 6, cat 35 and cat 411) and all cat to Canada, the Ministries will allocate export licences to businesses under their quota performance this year. As planned, the inter ministries will stop granting E/L to EU and Turkey once cats cover 70% basic quota. However, the issuance ending, in case of low allocation rate, will be postponed until quarter 3 or 4 of 2004 once basic quota are wrapped 85%.