Page 61 - May-June-2020
P. 61
tures complained about the unbalance in the
exports to China as the second phase of the Free
deal, especially the textile sector which raised
Trade Agreement (FTA) between China and
concerns about the favours it granted the
Pakistan will offer the same tariff concessions
Chinese textile industry. They believed that the
enjoyed by the ASEAN countries.
FTA was damaging the local industry and giving
undue advantage to the Chinese. The govern-
The agreement covers 313 tariff lines of US $8.7
billion Pakistan's overall exports and US $64
ment took note of the demands by the industry
as they pointed out that during the first phase,
billion of China’s global imports. Textile and
tariffs were imposed on Pakistani textile exports.
garments sector is at the forefront of this deal
and will help enhance the sector’s exports to
At the same time, they complained that the
country’s competitors from the ASEAN had duty
China as it offers the same duty free access to
ASEAN countries.
free access to the Chinese market.
To fix this disparity, the Pakistani government held
The agreement is already bearing fruits as the
Indian yarn exports dropped more than 38
several rounds of negotiations with their Chinese
counterparts and now hope that the second
percent for the first six months of the current
phase of the FTA would overcome the concerns
fiscal year. According to reports in the Indian
of the local manufacturers and increase exports.
press, the cotton yarn exports between April and
September of this year dropped from US $2.08
As a counter-measure, the sensitive list had been
billion to US $1.27 billion compared to the same
increased from 10% to 25%, totaling 1760 tariff
lines and covers 37% of Pakistan's imports from
period from last year.
China. This, the two sides hope, will give protec-
tion to Pakistani industry from Chinese import,
The Indian report cited the FTA’s second as a
and the textile and garments sector is a major
major reason for the decline as it said that the
India did not enjoy the same tariff free access to
beneficiary of this sensitive list. Whereas, the
the Chinese market, whereas India had to pay 3.5
tariffs from the industry had also been lifted to
increase the export of the sector. The Chinese
to 5 percent tariffs.
side also agreed to immediate market access on
The full effects of the second phase of the FTA
its priority products, tariff reduction and measures
for protection of the domestic industry on
could be gauged after the deal comes into effect
Pakistan’s request.
from December 1, which would boost the exports
of Pakistani products to the Chinese market.
Earlier in the month, Abdul Razak Dawood,
The first phase of FTA between China and
Adviser to the Prime Minister for Commerce,
Pakistan was signed on November 24, 2006 and
became operational in 2007. The negotiations for
Textile, Industry & Production and Investment,
the second phase began in 2011 and after eleven
announced that the second phase would come
rounds, both sides signed the agreement in April
into effect from December 1 and it was becoming
operational earlier than usual. He said that it
of 2019 in Beijing.
usually took a year to make such agreements
operational between countries but because of the
Now, the second phase is about to take effect
special relations enjoyed by both the countries.
which is already showing some positive signs.
60 16 The textile sector of Pakistan will get a boost in During the first phase of the FTA, local manufac- 79
Econyl yarn by Aquafil, A
Cotton season 2018/19 featured:
new capsule collection
Rollercoaster prices, with decreasing
launched by Burberry
production, area and yields Gap taking initiative for
A new capsule collection has been launched by sustainable denim waterless
After a few years of relative calm, world agricultural
Burberry crafted with Econyl yarn by Aquafil. The
capsule includes a reinvention of the luxury brand’s
markets face policy uncertainty and trade tensions: ICAC dyeing by 2020
lightweight classic car coat, which was created using
Econyl regenerated nylon made from fishing nets,
fabric scraps and industrial nylon waste.
Highlights from the latest ‘Review’ regarding the Weakening economic growth amidst trade issues set
2018/19 season include: Global area decreased by the environment for a decrease in consumption with
Mr Giulio Bonazzi, President and CEO at Aquafil
1% to 32.6 million hectares (ha) and yield declined a near 1% loss to 26.2 million tonnes. With
commented, “We are delighted to collaborate with
2% to 790 kg/ha; World production slipped 3% to consumption exceeding production, global ending
Burberry for this capsule collection. We believe
25.7 million tonnes; More than half of global stocks stocks for the season decreased by 2% to 18.3
innovative fibers like Econyl regenerated nylon are
(52%) are now being held outside of China. million tonnes.
the future and are proud to support brands who
use our yarns, transforming waste into incredible Textile and apparel are the largest water consuming
Global stocks at the start of the 2018/19 season were As ending stock levels in China lowered, the ratio of industries. In order to get sustainability and to save
designs and raising the profile and possibilities of
1% higher than the previous season at an estimated stocks held in China and stocks held outside of water, the renowned global apparel brand “Gap” has
a more circular fashion system.”
18.7 million tonnes. At 84 cents per pound, the China inverted with 52% of global stocks now being taken the initiative of waterless indigo dyeing of denim
international reference price of cotton was lower than held outside of China. Trade in cotton lint increased similar to their previously implemented water-saving
Burberry’s heritage is anchored in material innovation
the previous season’s ending average of 88 cents by 2% to 9.2 million tonnes with the USA, Brazil, West technologies like “Washwell”. The innovative process
and the Econyl yarn collection is one example of the
per pound. Africa and Australia leading in global exports. “Dry indigo” is going to be launched in 2020 by the
50 disruptions Burberry is making throughout its
supply chain to create a more sustainable future for combined efforts of Banana Republic and Spanish
After a 99.5 cent per pound price at the start of the New uncertainties have emerged in addition to the denim mill, Tejidos Royory. Water usage could be
fashion, according to the brand.
season, prices fell throughout the year. Global area usual risks facing agriculture. Following several years reduced by up to 99%, while also using 89% less
under cotton decreased by 1% to 32.6 million of relatively calm market conditions, world chemicals, reducing energy usage by 65% with no
hectares. Global yield decreased slightly by 2% to agricultural markets today face mounting risks, water wastage at all.
790 kg/ha but remained above the ten-year average including policy uncertainty from trade tensions.
Open, transparent and predictable trade is important
of 776 kg/ha. As a result, global production for the cotton market and its role as an important “By application of this revolutionary, ecofriendly dry
Due to increased interest of wearable electronics and scope of such
decreased by 3% to 25.7 million tonnes. device, researchers have been producing high-performance sensors dyeing, Gap Inc.’s manufacturing objective is to
commodity in the global economy.
KIST manufactured hydrogel on surfaces of various shapes and types. Recently, high conserve 10 billion litres of water by the end of 2020”
said Christophe Roussel. The aesthetic, hand feel,
performance flexible sensor was developed and proclaimed by
and nano ink -based flexible researchers of The Korea Institute of Science and Technology (KIST) functionality, and washability of such foam dyed denim
would be comparable to traditional dyed denim along
APTMA demands textile policy capable of doubling exports with less space requirement compared with
team working with Dr Hyunjung Yi.
sensors for wearable
conventional dyeing machine.
The transfer printing technique was used for aqueous solution based
electronics
APTMA Chairman Amanullah Machera said that textile exports in the next five years. Currently, dry process is exclusive to Tejidos Royo.
nano-inks to be printed on the porous and hydrophilic hydrogels
Pakistani exporters are facing stiff competition from Banana Republic is one of the first brands to try this
layer that afterwards solidified. The nano-ink passes through porous
Bangladesh and Vietnam. The chairman was of the APTMA officials informed that 70 percent of the textile technology and going to launch its Indigo dyed
surface leaving only hydrophobic nanomaterial at surface allowing
view that Pakistan can counter the competition only industry is in Punjab, where more than 100 mills have collection for both men and women by spring 2020
the construction of desired electrode pattern. The electrical
after exporters get a five year textile policy at hand, been closed due to poor energy policies of the with 100% Global recycle Standard (GRS) certified
properties of such flexible electrodes are extraordinary due to purity
so they know what will be the tax rates and energy previous governments. accessories/trims.
and uniformity of formed nanonetworks. The hydrophobic nature of
prices. the nanomaterial causes low interaction between it and the hydrogel,
The previous textile policies have not been much of a
allowing the easy transfer of electrodes onto various topographic Gap claimed that by 2025, 100% of its used cotton will
Meanwhile, APTMA Punjab Chairman Adil Bashir has success story, as the Textile Policy 2014-19 failed to be procured by sustainable sources, starting from
surfaces.
said that the government needs to announce a long achieve all its targets including doubling value Better Cotton Initiative (BCI) that is organic, recycled
term and comprehensive textile policy if it wants to addition from $1 billion per million cotton bales to $2 American or Australian grown. Gap and Old Navy will
Transfer printing was restricted to flat surfaces only and creation of
see a return of capital investment in the country. The billion per million cotton bales, increasing textile launch their recycled cotton denim in Holiday 2019,
such devices onto substrate directly was limitation of transfer printing
APTMA Punjab Chairman added that if government exports from $13.1 billion to $26 billion as well as while Banana Republic will launch in Spring 2020.
that could be chemically or thermally sensitive. Therefore, KIST team
accepts this demand, they are capable of doubling creation of 3 million jobs in five years.
dealt with these barriers.
May/June 2020
October/November 2019 July/August 2019

