August 15, 2011
Issue #295 The
McPete Sez Lingerie Newsletter & Women's
Wear Journal 1/24
Intimate Apparel Sleepwear-Daywear-Foundations-Loungewear-Hosiery-
The Cost of Riots UK retailers, already under pressure from a slowdown in consumer spending, are now counting the cost after four
shocking days of rioting and looting in towns and cities across the UK caused widespread damage on the high street.
Stores including H&M, Debenhams, Miss Selfridge and JD Sports, as well as supermarkets Tesco, Sainsbury's and Asda, were
among those trashed, robbed and set alight by mobs of vandals after protests that started in north London and spread
throughout the country.
While most retailers argue the immediate safety of staff and customers is paramount, and that it is too early to assess
damages and costs, there is no doubt that the cost to insurers will run into tens, if not hundreds, of millions of pounds.
But on top of bills caused by damage and theft, there will inevitably be longer-term costs, with some businesses that
have been attacked never opening their doors again. Industry group the British Retail Consortium (BRC) is seeking
urgent reassurances that critical issues thrown up by the unmitigated violence and lawlessness are being addressed.
"It is imperative retailers know that resources and plans are in place to prevent any repeat of this trouble," said BRC
director general, Stephen Robertson.
"Targeting local shops as an expression of anger and frustration is mindless. These criminal acts are destroying
community resources, hurting local businesses and threatening people's jobs. Those responsible must be prosecuted and
In all, the Local Data Company claimed, 48,404 shops, pubs, restaurants and clubs had been directly or indirectly impacted
by the disorder, out of nearly 476,000 retail and leisure premises tracked across Great Britain.
Independent businesses with fewer than five outlets make up nearly two-thirds of that number, the company said, meaning
that they “have the most to lose”.
Matthew Hopkinson, director at the Local Data Company, said: “These figures are horrifying in terms of the damage that has
been done to an already struggling sector.
“These businesses are the livelihoods of many people and the ability to bounce back from this has yet to be seen.
“It is important that the law-abiding majority offer as much support as they can to these affected businesses.”
The riots come at a time when retailers are faced with declining consumer confidence, soaring inflation on basic
items like food and fuel, and austerity measures to cut public sector deficits.
Added to this, growing fears of a global economic slowdown and a sovereign debt crisis have sent shockwaves through financial
Labor Case Against
The US is upping its efforts to ensure Guatemala enforces its
labor laws under a free-trade agreement between the two countries.
It is requesting that an arbitration panel is set up to discuss the "apparent failure by the Government of Guatemala
to meet its obligations" under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), Trade
Representative Ron Kirk said August 9.
The latest move comes a year after the US requested formal consultations with the Guatemalan government over
labor rights violations, and is the first case ever brought under the labor
chapter of a trade agreement.
At the time, textile and apparel producers in Guatemala said the dispute would not disrupt the industry or its eligibility
for duty-free benefits under a central American free trade pact - and that makers took their commitment to corporate
social responsibility "very seriously" and maintained the highest levels of compliance in all production facilities.
Ambassador Kirk now says: "We are sending a strong message that the Obama Administration will act firmly to ensure
effective enforcement of labor laws by our trading partners."
"While Guatemala has taken some positive steps, its overall actions and proposals to date have been insufficient to
address the apparent systemic failures.
"We need to see concrete actions to protect the rights of workers as agreed under our trade agreement, and we are
prepared to act to obtain enforcement of those rights when and where necessary."
The case focuses on laws related to the right of association, the right of workers to
organize and bargain collectively, and acceptable conditions of work.
It is the latest move in a dispute that dates back to 2008, when the American Federation of Labor and Congress of
Industrial Organizations (AFL-CIO) and six Guatemalan worker organizations
first made the allegations.
Subsequent reviews by the US confirmed "significant weaknesses" in Guatemala's enforcement of its
labor laws, but consultations in Guatemala in September and December 2010 failed to agree on an adequate enforcement plan.
The move also comes as the The US - Colombia Free Trade Agreement continues to stumble over issues relating to
labor law and violence against workers.
President Obama is keen for a resolution this year as part of his goal of boosting the US economy by doubling the country's
exports by 2014 and creating new jobs.
Fashion Photo Brandy
is wearing Mystique
you would like more information about Fashion Photo
or would to be included in the McPete Sez Fashion
Jerome at firstname.lastname@example.org
TESA Bill Reintroduced
A group of US lawmakers has reintroduced textile-specific bill
that aims to close customs enforcement loopholes and crack down on illegal trafficking of yarn and duty evasion.
The Textile Enforcement and Security Act (TESA) is backed by 17 members of Congress and has garnered support from the US
"Our industry and its workers have seen job losses due to customs fraud grow dramatically over the last decade as
unscrupulous importers and producers have progressively discovered the loopholes in our enforcement rules and
regulations," said Cass Johnson, president of the National Council of Textile Organizations.
"At the same time, US Customs has significantly reduced resources dedicated to fighting textile fraud. Fraud schemes
include undervaluing goods, illegally claiming FTA preference, illegally trans-shipping goods, as well as front or ghost
companies that pose as US manufacturers," he added.
"These schemes cost textile jobs at home while also cheating the US government out of more than a billion dollars in
uncollected duties and penalties every year."
The TESA legislation seeks to increase US Customs and Border Protection (CBP) enforcement activities and boost trade
through improved targeting, increased resources, and enhanced authority.
Among its provisions are measures to increase the number of trained import specialists in textile and apparel
verifications at the 15 largest US ports; and a requirement that the government publish names of companies that violate
the rules of trade agreements.
It also calls on the US government to establish an electronic verification program that tracks yarn and fabric inputs in
free trade agreement countries; establish a textile and apparel new importer program and a non-resident importer
program; and set up a textile and apparel manufacturing and supplier registry.
CBP collects over $30bn in revenue each year, with 42% of all duties - more than $12bn - collected from textile imports.
Tia Lyn's NY Fashion Show with beautiful models of ALL SIZES!
US Calls for AGOA Extension The African Growth and Opportunity Act (AGOA) should have its third-country fabric provision extended to improve economic
opportunities in the textile and apparel sector, according to a US Congressman.
Democrat Jim McDermott, who authored legislation establishing and refining AGOA, said the extension was a “critical
component of the continued success of the law”, and called for AGOA to be updated to include the new Republic of South Sudan.
Passage of the bill, which is supported by the Obama administration, would align the third-country fabric provision
with the rest of the AGOA programme, which is due to expire in 2015.
“In 2010, textiles and apparel were one of the leading AGOA import categories – US$730m in trade last year alone,” said
“Much of these exports require fabric that is not commercially available in sub-Saharan Africa.
“It is critical that the AGOA third-country fabric provision be extended now. It’s critical for businesses and jobs in the
US and Africa.”
21/24 CLICK HERE to
watch Risque's Video on YouTube Mexico Plans
As it struggles to deal with soaring cotton prices, Mexico has launched an initiative to make its own and cut its growing
apparel supply chain costs.
Under the plan, the country hopes to boost production to 397,00 packs and increase harvesting space to 300,000 hectares
from 107,000 now by 2016. The scheme also aims to lift cotton production to 1.4m packs from 620,000 packs currently.
The initiative will prove a boon for the textiles industry which is bracing for lower growth this year amid soaring
raw-material prices. Currently, the country needs to import 1.3m packs of cotton to meet its textile production
Production increases will be carried out in the regions of Tamaulipas, La Laguna, Chihuahua, Baja California and Sonora.
Jorge Antonio Median, director for the government unit behind the initiative, Sistema Producto Algodon, said the action will
generate 7,000 direct jobs at a time when Mexican unemployment is rising due to a weakening economy.
"Mexico has ideal agricultural conditions in different regions and the technology and infrastructure to increase out cotton
yield," Median says.
Bolstering cotton output would add 0.7% to GDP and raise wages for more than 500,000 producers, he adds.
According to Medina, Mexico has the third-highest cotton yield per hectare in the world, at 6.40 packs. That has improved
from 4.62 hectares in 2000 before the country improved harvesting efficiency. 2/6
Cambodia's Labor Law
Change New research has warned that possible changes to Cambodia's
labour law could raise the risk of future strikes in the country and undermine the competitiveness of the garment
The concerns are raised in a report by Yale Law School's Allard K Lowenstein International Human Rights Clinic, which
claims the widespread use of temporary short-term employment contracts in Cambodia - called 'fixed-duration contracts'
(FDCs) - not only denies workers statutory benefits, but also restricts their rights under
international and local laws.
They also found it limits the competitiveness of the garment industry and introduces the threat of a major breakdown of
industrial relations - including the potential for massive strikes.
And worryingly, the Cambodian government is considering an amendment to the Labor Law that would ease restrictions on the
use of FDCs, according to the report, 'Tearing Apart at the Seams: How Widespread Use of Fixed-Duration Contracts
Threatens Cambodian Workers and the Cambodian Garment Industry.'
The study warns the widespread use of FDCs could damage the competitiveness of the Cambodian garment industry once it
becomes widely known to international buyers that the country is backsliding on workers' rights.
A number of international brands, including Gap, Nike and Wal-Mart, have already expressed concern over the use of FDCs.
And other international apparel buyers and their suppliers are now being urged to take steps to avoid using FDCs for their
regular workforce, and to award contracts not just to the lowest-cost producers, but to the lowest-cost rights-friendly
Click here for more details on the research findings.
The International Lingerie
Show Runway Video
Video by NANDOVISION
Don't miss the next International Lingerie Show
held September 19-21 at the Rio Hotel, Las Vegas.
ILS Fashion Show on Monday, September 19.
For more information go to www.spectrade.com
Apparel Exporters Push
for MLFPS Extension India's apparel industry is urging the government to extend benefits to garment exporters in the hope that higher demand
from overseas buyers will in turn drive up sales of locally produced cotton and yarn.
In particular, the Apparel Export Promotion Council (AEPC) wants the Market Linked Focus Product Scheme (MLFPS) to be to
reintroduced to compensate for the phasing out of the Duty
Entitlement Pass Book Scheme (DEPB) tax refund scheme, which finishes at the end of September. The DEPB incentive has
already been withdrawn for the US and EU markets.
Under the MLFPS, exporters received a 2% incentive on the value of exports - but they now want this to be lifted to 7.5%
as of October 1.
The calls come after the government in July, decided to restore tax incentives for raw cotton and cotton yarn exports.
The duty drawback - which offers exporters a refund of import duties - is 5.6% for raw cotton and 7.67% for cotton yarn. It
is being backdated to October 1, 2010 and April 1, 2011 respectively.
In a letter to Anand Sharma, the Minister of Commerce, Industry & Textiles, AEPC chairman Premal Udani says these
benefits "will definitely give a big boost to the producers and exporters of these basic/industrial raw materials."
He adds that the reason behind falling cotton demand and prices "is not fully understood," and goes on to say it is
because the "value added segment is facing severe competition and contraction of demand from the end consumers."
"Very few countries compete with us in terms of acreage/total production [of cotton/cotton yarn]. Unfortunately this
locational advantage...has no benefit for the value add apparel/made-up industry, as these sectors must compete with
international buyers for Indian raw materials.
"Consequently, in spite of being in the top three producers for cotton/cotton yarn, the value added segment has less than
2.5% share in world market of apparel."
Udani argues that a $1bn increase in apparel exports would require an extra 450m
meters of fabric and over 75m kilos of yarn.
"The point being made is that incentivization of value add product automatically creates demand for the entire value
He adds: "With fears of double dip recession and overall nervousness in overseas markets, the government's support is
CEPA in Effect Indian textile exporters are expected to be among the main beneficiaries of a new trade agreement with Japan, which came
into force on August 1.
The Comprehensive Economic Partnership Agreement (CEPA) is one of the largest agreements ever signed by India, and sets the
stage for free bilateral trade of goods and services between the two countries.
Under the pact, around 94% of the tariffs between Japan and India will be eliminated within 10 years. All items falling
into customs categories 61 and 62 (knit and woven garments), including woven fabrics, yarns, synthetic yarn, and readymade
garments are now duty free.
Talks on the CEPA began in November 2004 and were followed by 14 rounds of negotiations before the agreement was finally
signed on February 16.
According to industry group the Apparel Export Promotion Council (AEPC), Indian garment exports to Japan are worth
around US$125m a year, making India one of the country's top five apparel suppliers.
Shipments are almost equally divided between knitted and woven garments, with synthetic dresses the single largest category
in terms of quantity and value.
AEPC chairman Premal Udani has said he believes India's garment exports to Japan are likely to rise by nearly 50% now
that duty rates of around 11% no longer apply.
This is India's third Comprehensive Economic Partnership Agreement after Singapore and South Korea, and the most
comprehensive so far.
This Newsletter is Read by an
average 24,000 Readers each month,
11,000 subscribers. with over 24,000 Hits Per