Around the World

AUSTRALIA
DEMAND FOR FINE WOOL CONTINUES RISING
Fine wool prices again rose in Australia in line with stronger demand from Europe, while medium and broad wool prices again declined as a result of a subdued demand from China. The gap between the two markets is expected widening in the coming months.
Finer wool types benefited from a relatively strong demand, boosted by a new decline in the Australian dollar against the euro. Demand for medium and broader wool types was depressed by a rise of the Australian dollar against the US dollar.

PORT PHILLIP TO SHUT OPERATIONS
After 80 years in the wool industry the Melbourne based Port Phillip Wool Processing unit will shut its operations. The company announced that it would cease operations in June 2004, with its factory and land to be sold, and its staff to be laid off.
Owned by Japanese wool merchants Ito-Chu and Nippon Keori, the company scoured around 18,000 tonnes of wool per year, with that processing now to be done in China. The closure is a second major blow to Australian wool processing, after Geelong Wool Combing ceased operations late last year.

BANGLADESH
EU IMPORT REGIME MAY THREATEN TEXTILE JOBS
Out of a total of 4.3 billion euro clothing exports from Bangladesh during the year 2003, some 2.6 billion euro went to the European Union. But their volume could fall dramatically if the EU decides to apply quota restrictions and tariffs next year.
The European Union is required to revise the system currently in place because the World Trade Organization's Agreement on Textiles and Clothing expires on 31 December 2004. This decade-long accord is a transitional arrangement designed to gradually adapt the worldwide clothing industry to normal trade rules, instead of bilateral quotas.
Unless the EU and US can guarantee significant access to their markets for Bangladesh, the industry is predicting catastrophic job losses because it would be unable to compete with other major textile manufacturers, especially China. Clothing constitutes more than 80% of exports from Bangladesh, while 85% of those working in the sector are women.

TEXTILE GROUPS URGE WTO TO EXTEND DEADLINE
About 72 textile and apparel groups from 36 countries have urged WTO (World Trade Organisation) to extend the deadline up to December 31, 2007, fearing 30 million job cuts worldwide with the quota phase-out from next year.
The WTO cell of the Commerce Ministry has recently sent a letter to the leading Associations and Chambers, asking for their opinion on the extension plea to the world trade body. Two Associations Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) have already supported the initiative, known as 'Istanbul Declaration.

NEW TECHNOLOGY TO BOOST SPINNING MILLS OUTPUT
Trutzschler, a globally renowned textile machinery manufacturing company of Germany, has introduced a new technology to boost production at spinning mills.
The new technology, dubbed High-Production Card, also called TC 03, was first introduced at a textile machinery exhibition in Birmingham last October.
Chairman of Bengal Technolo-gical Corporation Ltd Engr Md Waziullah said some 400 high-performance Trutzschler machines have so far been sold to 35 spinning mills in Bangladesh, which are now under operation. Besides, the company is going to deliver more 60 new-generation machines to its clients in the Bangladesh's spinning sector soon.

BELGIUM
TEXTILE MEETING TO FOCUS ON CHINA
Textile leaders from around the world will meet in Brussels, Belgium, in July to get the World Trade Organization to address "the certain catastrophic fallout" associated with the end of quotas on January 1, 2005.
Organizers of the summit contend that when quotas expire, China will come to dominate the textile and apparel industry worldwide, a move they say will cost 30 million jobs around the globe, including more than 600,000 in the United States.
Quotas limit the import of products into the United States and were initially designed to protect the domestic textile industry from foreign competition. But textile leaders say China uses a host of unfair trade practices to heavily subsidize its exports. To prevent those job losses, textile leaders say the WTO must extend the 40-year-old quota system for at least three years.

CHINA
EXPORTS OF COTTON T-SHIRTS INCREASED
China's exports of cotton T-Shirts continued surging in value terms in the first four months of the year as a result of a sharp rise in prices while demand less rapidly increased. Sales continue concentrating on so-called "non-quota" countries although a radical change may be expected in the post-quota period, in less than seven months.
After increasing exports of cotton T-Shirts by more than 13% in 2003, shipments were only up 8% in the first four months of 2004. This slowdown in volume sales is probably due to the rise in China's export prices after cotton prices reached very high levels in the PRC by the end of last year.
With cotton prices now falling in China, a rebound in exports of cotton T-Shirts may be expected in the coming months. Quotas' removal at the end of the year could give an additional boost to China's sales.

DEAL SIGNED TO PROMOTE TEXTILES IN WORLD MARKET
An agreement has been signed recently on promoting Chinese quality textiles around the world between Hong Kong based Linmark Group and China Textile Information and R&D Center. Quality textile products made in China have attracted global buyers.
Under the agreement, comprehensive cooperation between the two sides ranges from textiles testing and social responsibility certification to trade promotion and supply chain management system.
The initiation of the collaboration is regarded as recognition of Chinese textile products up to the world standard. On the other, it will help China upgrade its textile-testing network in line with the requirement of the world market and domestic enterprises set up fast response mechanism based on purchasing cycle of the world market.

COTTON TEXTILE TRADE DOWN IN FIRST QUARTER
The high level in raw material costs in the PRC negatively affects trade of cotton textiles between China and other countries. China's exports of cotton fabrics sharply declined in the first quarter as a result of higher cotton prices at home. Exports of cotton yarns clearly slowed down at the same time. Cotton yarn imports continued rapidly increasing while cotton fabric imports were down.
China's cotton yarn imports continued sharply increasing in the first three months of 2004, up more than 25% in volume terms at 186,000 tonnes (including cotton threads).

EUROPEAN UNION
IMPORT PRICES WOULD FALL 15% IN 2005-2006
Import prices would be down 15% in the European Union in 2005-2006, following the removal in textile and apparel quotas. EU's imports in most sensitive categories would rise 66% in volume terms at the same time, with China taking substantial market shares, according to the 384-page study conducted by the Paris-based I.F.M.
According to a model run by experts, the removal in quotas by the end of the current year will result in a 17% decline in EU's import prices in 2005 and 2006, partly due to the elimination of quota costs in exporting countries and most importantly in China.
The impact of quotas' removal will focus on categories where fill rates exceed 80%, the report explains. Such categories account for a quarter of all EU's textile and apparel imports in volume terms (tonnes) and 37% in value terms.
In these categories, EU's imports would rise 66% in volume terms and 10% in value terms in the 2005-2006 period, reflecting a sharp decrease in prices.
China would be the major beneficiary country of trade liberalization with its textile exports up 22% in the two-year period, including an increase of nearly 100% in shipments to NAFTA countries while exports to the EU would only rise 17%. This is mainly due to the low level in US quotas imposed on textile imports while EU's quotas are much higher.

REJECTS TEXTILE SAFEGUARD AGAINST CHINA
The European Union will not re-impose quotas on imports of filament fabrics from China, EU trade officials made it clear before announcing a "China-EU textiles trade dialogue" aimed at avoiding a surge in shipments from China in post-quota period.
The European Union will not use in the short term a textile specific safeguard aimed at limiting imports from China in already liberalized categories.
Under strong pressure from US textile lobbies, Washington last fall re-imposed limits in three categories of textile and apparel products from China. EU's trade administration made it clear that no textile safeguard would be decided in the short terms, obviously for political reasons.

HAITI
APPAREL OFFERED US DUTY-FREE ENTRY
US apparel imports from Haiti should be duty-free, a few US senators proposed for the second consecutive year. Under the bill introduced on March 30th, Haiti-based exporters would have the opportunity to use Asian materials, such as least developed countries in Sub-Saharan Africa.
As a result of recent political and military events, Haiti is expected facing more economic difficulties, although already the poorest country in the Western Hemisphere.
In addition, Haiti is not part of the recently completed CAFTA, a duty-free agreement between the United States and Central American countries. In order to maintain specific benefits for Dominican companies, a provision was added to the released duty-free agreement between the United States and the Dominican Republic.

INDIA
TEXTILE EXPORT MARKET SLUGGISH
Textile producers have been staring at a sluggish market for nearly a month now as lack of demand for both yarn and grey fabric has dampened their marketing. The slide in demand for coarser count yarn of 30s/40s is well pronounced now, said market sources.
While the export market (especially the Hong Kong and Korean and the South East (SE) Asian markets) for Indian yarn, has practically come to a standstill, local weaving centres consuming yarn for conversion into fabrics too have remained subdued for long.
The sluggish demand for the grey fabric produced in the South Indian weaving centres has in turn affected yarn off-take. Yarn traders, said the two primary SE Asian markets remained benefit of Indian yarn and the market for the 30s and 40s count yarn varieties, which used to be sold in high quantities earlier in the overseas markets, had come down significantly as there had been no enquiries from importers.

TEXTILE EXPORT TARGET RS 80,000 CRORE FOR 2006
Union Minister for Textiles Shankersinh Vaghela said his Ministry has targeted Rs 80,000 crore as exports in next two years from the present Rs 25,000 crore.
Vaghela told Gujarat Chamber of Commerce and Industry (GCCI) that his Ministry is planning sale of Rs 3,000 crore worth lands of National Textile Corporation (NTC) all over India. As part of Congress' resolve to solve unemployment, he said his ministry is engaged in efforts to provide work for the jobless.
BUDGET 2004-05 CRUCIAL FOR TEXTILE SECTOR
The Union Budget 2004-05 will be crucial for the textile sector as it would have to provide for measures to enable the industry to gear itself to face challenges and competition after the dismantling of Multi-Fibre Agreement end of this year, Joint Secretary in the Ministry of Textiles Atul Chaturvedi said at an 'Apparel Manufacturing Summit' at NIFT. Since the entire textile sector was brought under CENVAT, there have been protests by those who were out of the chain earlier.
ITALY
WORKERS’ CONTRACTS SIGNED ON FRESH TERMS
About 224,000 workers belonging to artisan companies in the textile and clothing sector have signed an agreement for the renewal of the collective national contract. The agreement will take into account application of agreed inflation rates until 31st December 2004.
Effective from January 2005, the new contract system would be implemented at regional level. The salary increases would be effected twice in two stages, starting July 1, 2004 and January 1, 2005.
MEXICO
CLOTHING SECTOR TO FOCUS ON QUALITY PRODUCTS
Following the accumulated losses of 180,000 jobs, earnings equal to 8% of the GDP, and decreasing international competitiveness during the last three years, the national clothing industry has decided to stop being a sector focused solely on supplying cheap labour force and instead a sector based on designer clothes, said Salomón Presburguer, President of the National Chamber of the Clothing Industry (Canainvest).
President added that the new goal for the industry is to raise the position of Mexican brands, in addition to design and the country's fashion, and the most important thing is now to make high quality products. In 2003, the industry's earnings fell 5%, while exports were reduced by 7%, compared to the previous year.
SOUTH AFRICA
S.A. SEEK QUICK FIX ON CHEAP IMPORTS
Impending talks between the Chinese and South African governments would focus on short-term remedies to protect the local clothing and textile industries from the flood of cheap imports from the Far East, Lionel October, a Deputy Director-general of the department of trade and industry, said.
China has an accession agreement with the World Trade Organisation, in terms of which countries that are adversely affected by a new member's entry can apply for relief. Measures to protect these industries included voluntary restraint and various co-operative safeguard mechanisms.
MADE IN S.A. LABELS DEMANDED
Manufacturers of clothing and textile, Seardel Investment Corporation is demanding the trade and industry department to urgently implement the "country of origin" labelling system and to increase tariffs on imported clothing from 40% to about 60%. This would give the local industry time to restructure. Most retailers have signed up to the proudly South African concept and have agreed to obtain at least 75% of their products from South African manufacturers, but once goods are labelled " Made in S.A." it will encourage consumers to support local industry.
Seardel said SA's average labour cost was $600 a month, against China's $100 and India's $60, and the big US retailers could source their goods from anywhere in the world. He said the group would normally spend R100 million on capital projects in a year but this year would be spending only about R40 million.

SYRIA
TEXTILE SECTOR LOSES $32 MILLION
Syria's state-run textile industry has lost $32 million in recent years, the ruling party's Al-Baath newspaper reported. The state textile industry has registered losses of 1.62 billion Syrian pounds ($32 million / 26.2 million euros) while some companies made a profit of only 78 million pounds ($1.5 million). It said the losses accumulated before the end of 2003, but did not specify a time period.
The textile industry is traditionally considered a pillar of the Syrian economy, but has been hamstrung by "high production and energy costs, as well as high levels of waste.
Syria has in recent years implemented reforms to develop its private sector, but the government insists that state industries will not be privatised.

SWITZERLAND
TEXTILES, APPAREL LAG IN INVESTMENT PROSPECTS
Global foreign direct investment is forecast to rebound during the years 2004-2007, following three years of decline and stagnation, a UN survey said. However, with the exception of Africa - where there's high optimism for the textiles and apparel industry - world-wide the sector ranks poorly as an attractive category for foreign investors, survey results show.
The survey - carried out earlier this year - polled 87 top international investment experts, including banking executives, and business consultants. Overall, the FDI prospects are brightest for China and India followed by the United States.

TAIWAN
COTTON YARN IMPORTS FELL IN FIRST QUARTER
Taiwan's cotton yarn imports dramatically fell in the first quarter of 2004, due to a new reduction in weaving capacities. Pakistani spinners were the main losers on the Taiwanese market, partly due to a surge in their prices while Indian competitors gained new shares.
Taiwan's imports of cotton yarns (HS number 5205) were down 33% in volume terms in the first three months of the year while falling 14% in value terms at US$32 million. Average unit price rose 27% from the same quarter last year to US$3.11 per kilo. The decline in yarn shipments was due to a new wave of relocation of Taiwanese textile industry with yarn and weaving capacities being substantially cut.
Pakistani spinners were the major victims of this new decline in the market with a fall of 63% in shipments over the first three months of the year to 2 million kilos.

USA
COTTON TROUSERS IMPORTS DECLINED
A dramatic change may be expected in US imports of cotton trousers in the post-quota era, with China for the first time in direct competition with other Asian suppliers, including Taiwanese and Korean plants in Nicaragua and Guatemala. Fearing US embargoes, importers this year focused on sources benefiting from US quota-free and duty-free entry before probably shifting to other countries in 2005.
US imports of cotton trousers in categories 347 (men and boys) and 348 (women and girls) declined 11.34% in the first two months of the year after rising 10.49% and 10.40% in 2002 and 2003, respectively.
With the current rebound in the US economy and US apparel consumption as a consequence, shipments to the United States could recover in the coming months.
In order to avoid similar difficulties in 2004, US importers and retailers clearly favoured quota-free origins or countries that were far from reaching US limits in 2003.

IMPORTS OF RAW COTTON TO BE PERMITTED
The US Department of Agriculture (USDA) has announced it will permit textile mills to import a limited amount of raw cotton under the programme designed to help make US textile manufacturers competitive in world markets. This is the third time this year the USDA has announced special import quotas in the 2003-04 marketing year. The special import quota will cover purchases made between May 20 and August 17 and entered into the US not later than Nov. 15. Despite some of the earlier import quotas, the USDA reports that only 2,600 bales of upland cotton have been imported since August 2003.

CUTS VIETNAM TEXTILE AND APPAREL IMPORTS
Bush administration trade officials have announced they will reduce Vietnam's textile and apparel import quota this year by 4.5% because some of the products used in establishing a quota base were illegal imports.
During negotiations of the US/Vietnam bilateral agreement, domestic textile interests charged that some of the products used to determine the base for the agreement were not made in Vietnam and, therefore, were illegal transhipments. Government trade officials have determined that in fact some of the imports entering this country had counterfeit certificates of origin. As a result, $80 million will be reduced from the current quota, worth $1.8 billion.

UGANDA
TEXTILE INDUSTRY SEEKS DUMPING LAW
The textile industry has requested Parliament to enact a law against dumping saying lower prices of dumped clothes were hindering growth of the industry.
“Dumping is killing us. Please put in place laws to stop it. We are Ugandans, where do you want us to be if our companies are out competed by cheap second hand clothes”, Eyasu Sarik, Managing Director of Eladam Enterprises, said. They accused the then Minister of Industry Henry Kajura of encouraging the importation of second hand clothes. MPs also heard that while Government had continued to offer incentives to Apparel Tri- Star, it had failed to help other textile companies realise full AGOA benefits.

USSR
LUXURY MARKET ACCOUNTS FOR €600 MILLION
The Russian market for luxury goods is valued at € 600 million according to Pambianco, the Milan-based consultancy for the textile and clothing sector, which held a conference on Russia.
With 98 brands represented in Russia, Italy is the market leader accounting for 65% of the luxury fashion market in the country, followed by France with 23 brands or a 20% market share.

VIETNAM
GOVT TO DISCUSS QUOTA ISSUE WITH USA
According to a report, for the reconsideration of the Bush Administration's recent decision to trim its bounded garment and textile quotas for Vietnam this year by 4.5%, or a lifting of the quota, the Deputy Minister of Trade Luong Van Tu is planning to visit Washington.
Tu will Head the Vietnamese delegation to attend the 3rd session of Vietnam-US Joint Committee, which has been held annually since the US - Vietnam Bilateral Trade Agreement (BTA) took effect on December 10, 2001.
The Deputy Minister hopes the two countries will inform each other of obligations and obstacles to the implementation of BTA during the event.
He wishes to ask the US to revoke quotas imposed on Vietnamese garment and textile exports under a roadmap similar to that applied to the World Trade Organization member-nations.

ZIMBABWE
LOCAL TEXTILE INDUSTRY LOSSES
The local textile manufacturing industry says it is seeking protection from government from a flurry of imported textile goods that have seen the industry losing more than 15% of the local market share.
The Secretary General of the Zimbabwe Textile Workers Union, Mr Silas Kuvheya, said there is need for government to come up with protective regulations and tariffs that protect the industry.
According to the Zimbabwe Textile Workers Union, the textile industry has lost more than half of its 1990 workforce. In 1990 the industry employed 24, 000 persons but as at December, the number had been cut to 11,500 workers.
The profile of the industry has been worsened by the continued importation of second-hand clothing. The Union says the industry requires modern technology for it to start competing on equal footing with others on the export market.

CAMBODIA
TAKING ADVANTAGE OF A FALL IN EXPORTS OF INDIA, SRI-LANKA & VIETNAM

US imports of cotton skirts in category 342 further surged in the first two months of the year with Cambodia benefiting from a fall in shipments from India, Sri Lanka and Vietnam. With the quota elimination and a consecutive decline in its prices, China could threaten Cambodia in the coming years while India could face increasing difficulties.
US imports of cotton dresses in category 342 were up more than 25% in the January-February period in volume terms after already rising 38% in 2001 and 14% in 2003. This year's increase is in sharp contrast with the overall decline in US imports observed in the first two months.
Woven products account for the largest part of skirt exports to the United States with Asia taking a substantial share of the market.
US imports from Cambodia dramatically surged in 2003 and the first two months of 2004, up 50.46% and 103% in volume terms, respectively. This sharp increase is due to the quota-free advantage of Cambodian exports, compared with new limits imposed on Vietnamese skirts from 1 May last year. Cambodia also took advantage of the fall in India's competitiveness after the rupee dramatically surged against the US dollar.

GERMANY
TEXTILE AND CLOTHING EXPORTS INCREASED

According to Customs, total export and import of textiles and clothing amounted to US$ 23.7 billion in the first quarter, up 22.18% compared to the same period last year.
Export of textiles and clothing totalled US$ 20.1 billion, up 24.94%, accounting for 16.64% of the total export, of which textile export was US$ 7.9 billion, a rise of 26.69% while clothing export US$ 12.2 billion, increased by 23.92%. Total imports were US$ 3.6 billion, up by 9.28%, taking up 2.9% of the total import. The total surplus reached US$ 15.6 billion in textile and clothing trade in the first quarter.
Japan, HK and US ranked the first three among major countries and regions for textiles and clothing exports in the January-March period. Total export to Japan, HK and US hit US$ 9.2 billion, a share of 47.93% in the total export.

HONG KONG
RE-EXPORT OF DENIM FABRICS DECLINES

Hong Kong's re-exports of cotton denim fabrics declined in volume terms in the first quarter due to better sales to China, Cambodia and a series of low-cost countries in Africa and Latin America.
Hong Kong's re-exports of cotton denim fabrics (HS 520942) were only down 2.60% in the first quarter in volume terms at 17.3 million square meters while rising 1.70% in US$ terms after prices were up more than 7%. Shipments had fallen 3.80% in 2003 in volume terms, down 4.70% in US$.
Sales to China even rebounded in the January-March period, up 8.40% in volume terms at 9 million square meters while rising more than 10% in value terms at US$45 million. China remains the prime destination of Hong Kong's re-exports of denim fabrics, accounting for 52.50% of total shipments in volume terms.

JAPAN
NEW "DYEING" PROCESS INVENTED

A new method of "dyeing" wool in black, navy and other dark colours without the use of traditional dyes has been developed by Kurabo Industries, Ltd., a major textile manufacturer based in Osaka.
Further research is being made to apply the natural coloration technique to silk, leather, and cellulosic fibers as well, Kurabo said. Animal textile fibers such wool, silk and leather possess functions, which, under certain conditions, result in the fibers colouring themselves, according to the Japanese textile manufacturer. There are no chemicals used in the dyestuff.The technique provides three advantages - natural dyeing, colour fastness, and environmental protection.