Textile Briefs - National

. All Pakistan Textile Mills Association (APTMA) has refuted the claim of the value-adding textile sector that there is a shortage of yarn in the country; therefore a mechanism should be brought in place to regulate the export of domestically produced yarn.

. Pakistan has fixed the cotton production target for the year 2004 at 10.72 million bales because cotton sowing area was fixed at 7.75 million acres (3.14 million hectares) while the Ministry of Food and Agriculture is expecting that 25% more area would be brought under cotton crop because farmers have got fair return of their produce this year.

. Exporters have taken strong exception to the customs authorities move to send high tariff areas exports to Price Check Committee (PCC), resulting in long delays in payment of duty drawback thereby causing liquidity problem to exporters.

. Minister for Agriculture, Punjab Arshad Khan Lodhi has directed the authorities of Agriculture Department to work on war footing basis to control the early attack of pests on cotton crop.

. The Government has exempted around 100 items from customs duty following the post-budget consultations with stakeholders. Officials at the Central Board of Revenue said that customs duty on these items were earlier scaled down to 5% from 25%, 20%, 15% and 10% in the Budget 2004-05.

. In the Federal Budget for fiscal year 2004-05, the government has reduced the customs duty on all types of plants, machinery and equipment, not locally manufactured, to 5% and reduced duty on raw materials.

. The Federal Government has set up anomalies committee to examine anomalies relating to customs duty tariff after the announcement of the new Federal Budget 2004-05.

. The Chairman, All Pakistan Textile Mills Association, Mian Waqar Monno urged the government recently to foil all such efforts by the lobbyists trying to get an extension in the textile quota regime. He said that the extension in the textile quota regime is against the interest of the country and it would block the growth of Pakistan's textile sector besides eliminating the small and medium scale exporters.

. All Pakistan Textile Mills Association (APTMA) appreciated the Federal Budget for 2004-05 fiscal year, saying relief measures announced by the government would result in Rs. 1 billion to Rs. 2 billion increase in textile-related exports.

. Pakistan Cotton Ginners Association (PCGA) has expressed its concern over the levy of sales tax on 'banola' and has urged the government to withdraw the decision.

. Cotton ginners have decided to start ginning factories in lower Sindh from August 15, and from September 15, in the rest of Sindh and Punjab. This decision was taken at a meeting of Pakistan Cotton Ginners Association (PCGA).

. G.R. Arshad, Chairman, action committee of the All Pakistan Textile Processing Mills Association and former KCCI President in a statement said the proposed measures in the Budget 2004-05 would help accelerate the pace of investment and industrial growth in the country.

. According to Economic Survey 2003-04, manufacturing sector continued to maintain its growth momentum during the fiscal year 2003-04 and recorded an impressive and broad-based growth of 13.4%, against the target of 7.8% and the last year's growth of 6.9%.

. The growers organisations remained unsatisfied with the relief package announced by the President Gen Pervez Musharraf and have demanded of the government to take solid measures to promote the agriculture sector of the country.

. The Provincial Government is considering establishing more export processing zones in the Punjab. The proposed export processing zones would be established at Gujranwala, Faisalabad, Lahore, Multan, Rahim Yar Khan, Sargodha, and Gujrat.

. Pakistan has a totally free trade regime and will continue with trade liberalization process for the strengthening of the economy. This was informed to the first meeting of the Senate's Standing Committee on Commerce.

Textile Briefs - International

. The European Union (EU) and China have set up a high level policy forum to discuss trade in textiles and clothing in the run up to the elimination of remaining WTO quotas by 2005.

. Hong Kong's re-exports of cotton T-shirts sharply rebounded in the first quarter this year, reflecting a surge in sales to a large series of countries, including EU members, and a new rise in China's exports to Hong Kong. Shipments to the US were down, mainly due to the high level in quota fees.

. India's textile industry is increasingly using polyester and other man-made fibers to the detriment of cotton. Growth rate of India's cotton textile industry in the coming years will mainly depend on price difference between polyester and cotton. The level in textile and apparel exports will also play a major role in cotton consumption.

. US imports from China slowed down in the first quarter this year in quota-free category 350/650 after Washington re-imposed a limit on shipments from the PRC. Imports from a series of Asian low-cost countries surged at the same time, including Indonesia, Sri Lanka and Cambodia.

. India and China have established a task force to study the forthcoming challenges in textiles trade and the Chinese government has offered its full co-operation to Pakistan in the preparation of new export strategies with a view to obviating the possibilities of ruthless competition among the countries of this region in major markets, USA and Europe.

. According to ICAC, the textile industry will be positively affected by higher economic growth and by the elimination of quotas on textiles and apparel trade after January 1, 2005. However, cotton's market share continues to erode because polyester remains cheaper than cotton.

. EU's textile industry will be forced shifting to an anti-dumping procedure. The European Union already imposed anti-dumping duties on a large number of products from China, from man-made fibers to bicycles.

. EU textiles and clothing industries "fear a surge when textile quotas are abolished on 1 January 2005," EU's Commission said. Top trade officials from China and the EU will meet "with the frequency necessary" to address a series of issues, especially the access of European products to China's market and the level in EU's textile and apparel imports from China.

. Guatemala's quota fill rate "only" was 80% in 2003, leaving room for additional shipments in 2004. In addition to US investors, apparel groups from Taiwan and Korea are taking full advantage of low wages and proximity with the US market.

. World cotton production next season (2004-05) is likely to reach a record 21.85 million tonnes, the increase being essentially price driven.

. The duty-free agreement signed between the United States and five Central American countries will not be approved by the US Congress before November Presidential elections, US top trade official made it clear. A delay until after the end of the year would dramatically weaken Central America's competitiveness in a post-quota world.

. Cotton yarn prices further declined in the past two months in China in line with a slowdown in demand and lower cotton prices. In sharp contrast, prices rose in Pakistan after cotton prices rebounded.

. Textile manufacturers from various countries have signed the Istanbul Declaration, which tries to prevent China from swamping the local textile industry by pushing for the extension of the abolition of garment quota in January 2005. The Istanbul Declaration is requesting the WTO to move the deadline to 2008 because of the threat posed by China on the textile trade.

. With the fag end of the MFA in sight, many organised Indian players are expanding textile capacities substantially to take advantage of the `free-for-all' in trading opportunities after 1st Jan. 2005.

. Wool prices declined in A$ terms on June 28 while increasing in US$ terms as a result of a rise in the Australian currency. Demand was depressed by new exchange rates but optimism was not affected in Australia, brokers said.