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India's Apparel Exporters Push for EU Trade Pact
Page 1

Planned Garment Strikes Halted
Page 1

Shipping Costs from Asia to Increase
Page 1

The International Lingerie Fashion Show
Page 2

Intimate Graphics
Page 2

McPete Sez
Page 2

The International Lingerie Fashion Show Continued
Page 3

Business and Technology 
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Ask Kevin
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The International Lingerie Fashion Show Continued
Page 4

Diesel Posters Banned
Page 4

New Solution for Transporting Garments on Hangers
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The International Lingerie Fashion Show Continued
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  July 15, 2010                                                 Issue #269
     The McPete Sez Lingerie Newsletter & Women's Wear Journal           

                              Intimate Apparel

India's Apparel Exporters 
Push for EU Trade Pact
Indian apparel exporters are stepping up their calls for a free trade agreement with the European Union (EU) in the belief that it could add another US$3bn to the country's textile and clothing exports.
The EU and India launched negotiations for a trade pact in 2007, but despite several rounds of talks the discussions have stalled.
"This FTA has the potential of increasing India's textiles and clothing exports to the European Union by over US$3bn," claims Mr Premal Udani, chairman of the Apparel Export Promotion Council (AEPC).
"It will also create an additional 2.5m jobs in our economy," he said.
India exported garments worth $5.68bn to EU in 2009, accounting for 55% of the country's total apparel shipments that year.
But exporters are struggling to compete with low cost countries such as Bangladesh, Vietnam, Cambodia, and in fiscal 2009-10 (which runs from April to March) saw the value of India's garment exports fell by 2.6% to US$10.6bn.
And in the first two months of the current financial year, exports have fallen 5.23% in rupee terms, compared to the previous year, the AEPC says. 
"The unprecedented rise in price of raw materials (cotton and yarn) over the past few months, and also general increase in all other costs due to a hike in duty of petroleum products, has made Indian garments uncompetitive in the world market," Mr Udani claims.
The AEPC also wants the government to raise duty draw back rates to offset cost disadvantages in India.
Although India's apparel sector employs 6m people directly and 3m people indirectly, Udani sayd: "With the right government policies, this sector has the capacity to absorb another 5m workers directly within the next three years."
                Fashion Photo
          Janae is wearing Wacoal 
If you would like more information about Fashion Photo or 
      would to be included in the McPete Sez Fashion Photo 
                contact Jerome at  

              EU's Concerns Over 
  Ecuador's Tariff System
The European Union (EU) has voiced its concerns about changes in Ecuador's tariff system from an ad valorem system to a mixed system.
The changes were ushered in following an executive directive (No 372) issued on May 28, 2010, trade diplomats said.
In a session of the World Trade Organization's Goods Council this week, the EU delegation said the changes affected certain apparel, linen, and footwear goods.
A mixed system uses both ad valorem and specific duties.
The EU, backed by the United States, Japan and Canada, called on Ecuador to notify the changes to the WTO.
In response to the intervention by the EU and other WTO members, Ecuador said it respected its WTO obligations concerning its tariff bindings, sources said.
However, trade sources said the US also made known its concerns that some of the changes will entail the imposition of surcharges, which have not been approved by the global agency's balance of payments committee.

Tia Lyn

17/24 Watch Tia Lyn's NY Fashion Show with beautiful models of ALL SIZES!

Planned Garment Strikes
Garment workers in Cambodia have halted planned strike action after the government drafted out minimum wage terms.
A nationwide strike of garment workers was due to occur over the next three days, led by the local Free Trade Union (FTU).
However, the Cambodian government and five largely pro-government unions have reached an initial agreement for a minimum monthly wage of US$61.
"The Labor Advisory Committee decided on 8 July to increase the minimum wage from US$50 to US$61," Ken Loo, secretary general of Garment Manufacturer's Association in Cambodia (GMAC), which represents 230 factories employing about 200,000 people, said.
"The existing US$6 cost of living allowance will be abolished at the same time. This increase will be effective October 1,2010 through to 2014."
The final agreement is still being negotiated though, and the FTU's demands for a US$70 minimum wage has not been satisfied. The union is unhappy with the US$5 increase, and the four-year timeframe from October 1, this year.
The agreement was determined without the FTU, leading to claims it does not represent the majority of workers.
The FTU is requesting further negotiation in a bid to get a US$70 minimum wage, as well as focusing more on food, workplace seniority and overtime.
The garment industry is the backbone of the Cambodian economy, being the third-biggest currency earner behind agriculture and tourism.
In the first quarter of 2010, textile and garment exports reached $671m, representing an increase of 7.18% on last year as a result of strong recovery in exports to all its major markets.
Shipping Costs from Asia
             to Increase
Shippers say apparel buyers from Asia are likely to see shipping costs increase this year, in line with rising demand.
While shipping lines were laid off during the global downturn, trade – mainly out of the Far East towards Europe and the US - is now recovering. However, the re-supply of ships has not kept pace.
“Based on the current trend, buyers are likely to see freight costs increase from Asia,” Rohan Masakorala, the secretary general of the Asian Shippers Council, said.
“We expect demand for ship space to increase from Asia towards Christmas season. But the supply of ship space may not come in so fast. So we are expecting freight costs to increase for buyers from Asia.”
Already this year, freight rates out of Sri Lanka, have increased by as much as 50%, compared to last year.
“From the last quarter of 2009 to the end of the first quarter of 2010, rates have gone up by as much 50% in some sectors,” said Gehan Kuruppu, the chairman of the Sri Lanka Shippers’ Council.
Increasing shipping costs may also hit local apparel exporters - in addition to buyers. This is in spite of western buyers placing export orders on Free On Board (FOB) basis.
Shippers say shipping lines impose additional, non-freight, surcharges on exporters, because many Asian countries like Sri Lanka do not have laws controlling anti-competitive practices by shipping lines.
Therefore, the practice, by shipping lines, of inflicting surcharges on exporters, is expected to continue.
Because buyers pre-contract shipping lines, to keep their delivery deadlines apparel exporters have no choice but to pay extra non-freight surcharges demanded by the shipping line.

          A model shows off Xotic Eyes at
  International Lingerie Fashion Show at the 
 Rio Hotel, Las Vegas.
  Photo by Jerome Hamilton

Monsanto Fined $2.5M Over
  Mislabeled Cotton Seeds
The US Environmental Protection Agency (EPA) has slapped a $2.5m fine on seed giant Monsanto Company for selling mislabeled cotton seeds.
The EPA says it is the largest fine ever imposed under an act that regulates pesticides and fungicides.
The Bollgard and Bollgard II cotton seeds contained genetically engineered pesticides and were sold in ten Texas counties where these products were banned between 2002 and 2007.
Monsanto subsequently corrected the grower guides and in September 2008 EPA lifted the planting restriction for Bollgard II.
Monsanto Bollgard and Bollgard II cotton seed products contain genetically engineered pesticides, and face restrictions on where they can be sold and planted to prevent their genetically engineered component spreading uncontrollably.
News of the fine comes just a few months after a German newspaper alleged that organic cotton sourced from India by a number of retailers, including C&A and H&M, was grown from genetically modified (GM) seeds.
And it illustrates how important it is for retailers to continue in their efforts to boost traceability throughout the whole organic cotton supply chain, especially as the market for merchandise produced in a sustainable and 
environmentally friendly manner continues to grow.
While organic cotton production standards specifically prohibit the use of GMO material, it seems there is still an uphill struggle to improve the integrity of the organic cotton trade and verify organic claims.

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