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US to Pay $147.3M to Brazilian Cotton Farmers
Colombia's Contraband Worries
India/Japan Trade Pact
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March 1, 2011
Issue #284 The
McPete Sez Lingerie Newsletter & Women's
US to Pay $147.3M to
Brazilian Cotton Farmers
US lawmakers have agreed to continue to compensate Brazilian cotton
farmers to the tune of $147.3m a year after voting against a proposal to end the annual payments.
The amendment was put forward as part of the the government-wide spending bill voted on by members of the House Appropriations
Committee, but was rejected by 183 votes to 246.
The payments are part of a deal struck with Brazil, which has agreed to postpone until 2012 a series of retaliatory measures against American
goods which had been planned as part of a long-running dispute over cotton subsidies.
Under the deal, which is supported by the World Trade Organization (WTO), Brazil will put off more than $830m worth of tariffs on US
imports in return for the $147.3m annual payment to Brazilian farmers.
Colombia's textiles and apparel industry has urged the Government to
tackle a growing contraband trade, which now accounts for 30% of all clothing sold in the South American country.
Eduardo Botero, president of the National Institute for Exports and Fashion, said: "We have to end contraband once and for all and the
government needs to introduce measures to do this."
He added tougher measures such as jail sentences and stricter customs controls must be implemented to end the activity and added the industry
will collaborate at every step to eliminate the trade.
Botero said fighting contraband has never been more crucial especially as the industry battles with rising raw material costs from a hike in
global cotton and other feedstock prices.
Botero added China's rising labor costs is making Latin America a more attractive destination for US apparel companies looking to source
He said Colombia has a "strong and innovative" industry that can attract more US investment. The country also produces more "value
added" clothing that Central America which can compete through lower duty costs because of the DR-CAFTA agreement.
Nevertheless, Botero boasted Colombian exports should grow 20% this year and domestic consumption 4%, so the industry will have a strong
Last year, the industry's exports reached US$1bn, while the local market posted sales of $10bn. While Colombia has suffered from falling
exports to its largest market Venezuela in recent years, these have been offset by growing sales to Ecuador, Peru, Mexico and the US,
He also said Venezuela owes $80m to Colombian exporters which have had a hard time collecting receivables due to the two countries' tense
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El Salvador Textile Industry
El Salvador's textile and apparel industry expects to grow 12% in 2011
on the back of rising US exports and efforts to bolster its competitiveness, according to Patricia Figueroa, general manager of top
trade lobby Camtex.
The growth spurt, however, will be less than the 32% achieved last year when the industry recovered from a sharp contraction in 2009.
According to Figueroa, the industry has won several new sourcing contracts with US customers that will significantly boost exports in
"Our companies are constantly marketing themselves and many have won new contracts in recent months," Figueroa said without disclosing more
According to Camtex, employment will also grow this year to 70,244 workers - accounting for 13% of the country's total.
Tia Lyn's NY Fashion Show with beautiful models of ALL SIZES!
India/Japan Trade Pact
Indian apparel exporters have welcomed an agreement to boost trade with Japan, which was signed last week.
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. For garments, all items falling into
customs categories 61 and 62 (knit and woven 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.
Mr Premal Udani, chairman of AEPC, believes India’s garment exports to Japan are likely to rise by nearly 50% now that duty rates of around
11% no longer apply.
He also said that AEPC is planning to at the International Fashion Fair in Tokyo in July, and has already met with major buyers like Fast
Retailing, which operates the Uniqlo casual clothing chain.
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Arafa to Reopen Factories
Arafa Holding, Egypt's biggest garment exporter, is to reopen its
factories at the weekend after reaching a deal with striking workers.
The company said it had been forced to shutter its Swiss Garments, Egyptian Tailoring and Goldentex factories in 10th of Ramadan city,
along with its Beni Sweif facilities after several thousand workers joined nationwide protests demanding higher wages and better working
Arafa, which is headquartered in Nasr City, Cairo, makes clothing for Zara, JC Penney, Macy's, Banana Republic and Gap, with around 78% of
its local manufacturing sales shipped overseas.
It now expects all group operations to resume work again by February 19.
“Following extended meetings yesterday and today with representatives from the striking
labor force, satisfactory agreement has been reached on all issues discussed," the company said in a statement. It added
that February 16 and 17 would be granted as a fully paid holiday.
Earlier Arafa said production was back to full capacity after two weeks of political unrest, and that none of its orders had been cancelled.
Workers across Egypt are emboldened by the ousting of President Hosni Mubarak at the weekend, and have refocused their anger on improving
their own pay and conditions.
Workers at the state-owned Misr Spinning and Weaving textile firm, Egypt's largest factory with 24,000 employees, have reportedly gone
back to work after going a strike earlier in the month. But they say they will continue to demand a rise in the minimum wage.
Egypt's newly formed government says it will raise public sector salaries and pensions by 15%. But the minimum wage has remained
unchanged at EGP35 (US$6) per month since 1984, according to reports.
Gozooko's Free Workshop
Good news for all the March International Lingerie Show attendees and exhibitors!
The Gozooko Guys will be holding a free workshop on Search Engine Optimization and Social Networking for your Business.
This is a workshop you won’t want to miss!
Learn how to improve your search engine results and expand your presence in the growing social media market.
Planning on attending the workshop and have questions regarding these topics?
Send an email to email@example.com
so they can be answered at the workshop.
The workshop will be held in the Tango Room on Tuesday, March 29th, directly after the show closes for the day.
To RSVP to the Free Workshop email Gozookoguys@gozooko.com
Meet the Gozooko Guys at booth 301 at the International Lingerie Show
March 28-30 at the Rio Hotel, Las Vegas.
Liquid Wood Hangers
Italian fashion retailer Benetton plans to save 600 tons of plastic
this year by switching to innovative, lightweight "liquid wood" clothes hangers instead of the plastic hangers usually used to display its
The 100% biodegradable and recyclable eco-hangers were developed in partnership with the Fraunhofer-Institut für Chemische Technologie in
Pfinztal-Berghausen in Germany, and will gradually replace plastic versions in Benetton's worldwide store network.
The new hangers, which appear to be made from wooden pellets molded into the shape of hangers, are part of a broader eco-business plan that
also involves organic cotton garments and eco-friendly paper shopping bags.
These products are all certified according to the GOTS (Global Organic Textile Standard) ethical and environmental criteria, a worldwide
benchmark that guarantees key organic standards in fiber production.
And since January 2010, customers shopping at the United Colors of Benetton stores have been taking their purchases home in an
eco-friendly paper shopping bag, processed using water-based inks and sourced from a paper factory that uses timber from managed forests.
Benetton is Italy's largest clothing retailer, and sells brands like United Colours of Benetton, Sisley and Playlife in 120 countries
Chinese Exports Continue
to Rise Amid Price Hikes
China's textile and clothing exports are reported to have climbed by a third last month, amid warnings that export prices are on the up.
A Global Sources survey among exporters in the country revealed that 74% lifted prices last year, citing higher material and component
Furthermore, 24% plan a further round of price rises this year, according to the survey of 232 exporters including garment and textile
"In past surveys, suppliers indicated they would make operational adjustments to boost profit margins," said Craig Pepples, Global
Sources' president of corporate affairs. "This is no longer an option with material and labour costs up across nearly every industry.
"As a result, we are seeing a larger number of suppliers raising prices and transitioning to produce higher-end products. This is a natural
evolution for China's economy, as more makers shift from low-cost supplier to high-quality manufacturer for global brands as well as
Meanwhile, China's textile and apparel exports January surged 38.58% from a year earlier, according to Asia Pulse citing China's General
Administration of Customs (GAC).
Global Sources also said that while the Chinese yuan has strengthened by about 3.5% since June 2010, Chinese manufacturers do not seem to
have benefited from importing materials and components at a lower cost.
"The need for China exporters to work harder to market themselves and justify their higher prices in terms of service, product quality or
production volume is more apparent than ever," added Pepples.
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