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The European Union told Cambodia on Friday it will lose its special access to the world’s largest trading bloc, and said it was considering similar trade sanctions for Myanmar in a toughening of EU policy on human rights in Southeast Asia.
After months of pressure from rights groups and the European Parliament, the EU’s trade chief Cecilia Malmstrom said the bloc was ready to punish abuses in both countries by removing trade preferences.
The EU warned Cambodia in July that it could lose its special trade status after elections returned a strongman to power after 30 years in office, and it has censured Myanmar over its treatment of the Muslim Rohingya.
“Our trade policy is value-based. These are not just words. We have to act when there are severe violations,” Malmstrom told reporters after a meeting of EU trade ministers in Austria.
Malmstrom accused Myanmar of “the blatant violation of human rights” in Myanmar, referring to what the West says is ethnic cleansing of Rohingyas and the failure of civilian leader Aung San Suu Kyi to resolve the crisis.
A recent U.N. report accused Myanmar’s military of gang rapes and mass killings with “genocidal intent” in Rakhine state and called for its commander-in-chief and five generals to be prosecuted under international law.
Myanmar has denied most of the allegations in the report, blaming Rohingya “terrorists” for most accounts of atrocities.
The consideration of trade sanctions over the Rohingya crisis confirms a Reuters report on Wednesday.
However, the European Commission, which handles EU trade policy, is torn between supporting the development of Myanmar’s oil-and-textile economy and sanctioning the country.
The EU will send a fact-finding mission to Myanmar in the coming days, likely lasting up to four days, to see the extent of the rights abuses and the government’s willingness to change course, one EU official said.
“There is a clear possibility that a withdrawal (of EU trade preferences) could be the outcome,” Malmstrom later wrote in a blog post on the European Commission’s website.
Government spokesman Zaw Htay on Friday said removing the trade preferences would lead to job losses in the country’s garment sector.
He also said Myanmar had established a commission to probe allegations of human rights abuses and that the bloc should give the country time to report its findings.
“If a country is willing to do an investigation and if the process is not finished yet, the international community shouldn’t intervene,” Zaw Htay said.
Speaking to Reuters in Athens on Friday, the head of rights group Amnesty International said the EU should focus its pressure on Myanmar’s military leadership.
“We would rather see a targeted use of sanctions,” said Amnesty Secretary-General Kumi Naidoo.
He said Myanmar’s leader Suu Kyi, a Nobel peace laureate for her pro-democracy campaigning, had become “unrecognizable” after her actions in the Rohingya crisis.
“What Aung San Suu Kyi has done in a role as the leader of parliament has been a betrayal of press freedom, minorities in Myanmar, and democracy,” Naidoo said.
“She is unrecognizable to The Elders that she was part of, all the progressive things that she did in the past.”
Suu Kyi was an honorary member of The Elders, a group of former world leaders and Nobel laureates founded by South Africa’s Nelson Mandela.
CAMBODIA’S ELECTIONS
The EU’s Malmstrom said she had told Cambodia that the bloc had launched a six-month review of its duty-free access to the EU, meaning Cambodian sugar, garments and other exports could face tariffs within 12 months under EU rules.
“I have notified Cambodia today that we will launch the procedure for withdrawal of EBA,” said Malmstrom, referring to the bloc’s “Everything but Arms” (EBA) status, which allows the world’s poorest countries to sell any goods tariff-free into the EU, except weapons.
“Without clear and demonstrable improvements this will lead to suspension of trade preferences,” she said.
Cambodia’s exports to the European Union were worth 5 billion euros ($5.8 billion) last year, according to EU data, up from negligible levels less than a decade ago, with the EU using its trade policy to develop the country’s economy.
Cambodia’s July elections marked a turning point in relations with the West. Prime Minister Hun Sen was returned to power after three decades in charge and opposition supporters were stripped of their right to vote.
A Cambodian government spokesman said he was not able to comment immediately.
EU countries accounted for around 40 percent of Cambodia’s foreign sales in 2016. The bulk of those exports were from clothing factories that employ around 700,000 workers.
The European Union threatened to withdraw the trade preferences because of a crackdown on the opposition ahead of an election in July, which the European Union condemned as not being credible.
The main garment factory group said it remained optimistic.
“This is in the hands of the Cambodian government and the EU, and I believe that both would come to an amicable solution with mutual understanding,” said Kaing Monika, deputy secretary general of the Garment Manufacturers Association. “Continuous engagement, not sanctions, would be a way forward.”
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The United States can offer Sri Lanka investments backed by its development finance agency that could be an alternative to Chinese loans, a visiting American government official said.
“Investments backed by the U.S. government provide a financially-sound alternative to state-led solutions that lead nations like Sri Lanka into debt traps,” Executive Vice President of the Overseas Private Investment Corporation (OPIC) David Bohigian said.
OPIC is the U.S. government’s development finance institution, a U.S embassy statement said.
It is to be merged with a wing of the US Agency for International Development to create the US International Development Finance Corporation (USIDFC) that will increase the financial support that the US government provides to countries in the region.
The move comes in response to China’s “Belt and Road Initiative”.
“OPIC is committed to supporting projects that promote free and open societies while adhering to strong environmental and labor standards,” Bohigian said.
We look forward to partnering with Sri Lanka and other regional allies to identify opportunities for investment in ports and other infrastructure, which will fuel sustainable economic growth, create jobs, and leave countries better off.”
Historically, OPIC has invested $118 million in Sri Lanka and currently has almost $20 million invested across four projects, the embassy statement said.
Bohigian and other U.S. government officials visited Sri Lanka from October 3 to 5 to promote U.S. investment in the region and strengthen cooperation with regional allies to drive economic growth and stability.
The delegation met with Minister of Finance and Mass Media Mangala Samaraweera from as well as representatives of American businesses active in the Sri Lankan market.
“The United States seeks to build strong, reciprocal, and balanced bilateral trade and investment relationships throughout the Indo-Pacific,” said Chargé d’affaires Robert Hilton. “We work with the Sri Lankan government to ensure that American companies are given the opportunity to compete for government tenders and that tenders are conducted fairly and free from corruption. He added, “The United States is the single largest export market for “Made in Sri Lanka” garments. We would like to grow U.S. exports to Sri Lanka, from agricultural products to manufactured goods to software and entertainment.”
Cambodia on Friday raised the minimum monthly wage for workers in its crucial textiles and footwear industry to $182, an increase of seven percent, with effect from January.
The garment industry is Cambodia’s largest employer, generating $7 billion for the economy each year.
Boosted by a trade pact that allows Cambodia to export luggage items to the United States free of duty, garment exports grew 16.1 percent in the first half over the corresponding 2017 period, the World Bank has said.
“The minimum wage for textile, garment and shoe workers for 2019 is set at $182 per month,” Labour Minister Ith Sam Heng said in a directive on Friday, adding that the new wage takes effect from January 2019.
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The current minimum wage, at $170, makes it a challenge for Cambodia to stay competitive, with some employers arguing the wage hike reduces its appeal for some firms.
“We can’t anymore say we are a cheap hub for labour,” said Kaing Monika, deputy secretary general of the Garment Manufacturers Association, adding that the new figure puts Cambodia on par with Vietnam for the region’s highest wage.
“It will be a big test for Cambodia’s competitiveness which so far has been strongly helped by better international market access.”
The garment industry employs an estimated 700,000 Cambodians, helping to provide livelihoods in one of the world’s poorest countries. The new wage fell short of a proposal of $189 put forward by major unions, said Yang Sophorn, the president of the Cambodian Alliance of Trade Unions. “I am not satisfied with $182, because it does not allow workers to live with dignity,” she added, saying it did not allow them to keep up with rising prices.
Major traders’ associations across Uttar Pradesh observed a day-long strike on Friday in protest against foreign direct investment (FDI) in retail trade and also the Goods and Services Tax (GST).
The Uttar Pradesh Chemist and Druggist Association has also extended its support to the strike, demanding that the Centre put a cap on discounts allowed to online pharmacies, an office bearer said. More than 1 lakh shops across the state are closed as part of the protests, a traders’ association said.
The Communist Party of India (CPI) has backed the strike.
Banwari Lal Kanchal, President of the Uttar Pradesh Udyog Vyapar Mandal, said that the traders were facing serious problems due to the faulty roll out of the Goods and Services Tax (GST) and online trading was threatening retail traders due to which they have been forced to go on a strike.
Another trader leader Devendra Mishra said business for small time traders was already suffering because of malls where shops are allowed to open everyday of the week while that’s not the case for normal markets.
General Secretary of the chemists’ association, Suresh Gupta told IANS that the margin of profits for wholesalers and retailers were dwindling due to unfair and uneven discounts allowed to online medicine suppliers.
National Stock Exchange of India (NSE) on Friday signed an agreement with Confederation of Indian Textile Industry for To create awareness amongst CITI members on managing risk through NSE platforms.
Under the memorandum of understanding (MoU) the stock exchange will assist in imparting knowledge to CITI members on price risk management, hedging on NSE’s platform for products like commodity, currency and debt a release said here.
“This is significant for us as we are venturing in to commodities market soon. We extend our complete support in raising awareness levels for products like currency, commodity, debt and helping companies to manage their risks and also to assist CITI members in raising equity capital on NSE’s EMERGE platform,” NSE chief business development officer Ravi Varanasi said. NSE gets Sebi nod for launching derivatives contracts *
NSE on Friday said it has got regulatory approval for introducing derivatives contracts on gold 1 kg, gold mini 100 grams and silver 30 kg on its commodity derivatives segment.
The exchange had earlier received approval for launch of the Commodity Derivative Segment from Sebi on September 21, a release said here.
“We have received representations from several trading and clearing members suggesting that some more time be given to the market intermediaries to put in place appropriate systems at their end for effective trading of commodity derivatives.
NSE has decided to launch its commodity derivative segment on Friday, October 12, 2018. Suzuki Motorcycle launches special edition of Intruder *
Suzuki Motorcycle India has rolled out a special edition’ of cruiser bike Intruder and Inruder F1 ahead of the festive season.
The special edition variants will come equipped with anti-lock brake system offering a better riding experience.
The new Intruder is priced at Rs 1,00,500, Intruder Fi is priced at Rs 1,07,300. LIC offers group cover to SC Bar Association The national insurers LIC has launched group insurance policy for the members of Supreme Court Bar Association.
Addressing the function, Chief Justice Dipak Misra urged LIC to offer such insurance covers to the district bar members as well as other bar associations. Chief Justice-designate Ranjan Gagoi was also present at the function held at the SC bar Thursday, LIC said in a statement Friday.
LIC chairman VK Sharma said the policy envisages the cover of 20 lakh for the members in case of untimely death due to any reason.
About 200 buyers from leading textile and garmenting companies over 35 countries will be in the city for three days from September 21 to crack deals with firms from Surat and other centres at the second edition of “Source -India- 2018”, India’s largest man-made fibre MMF Exhibition.
Union Minister of Textiles Smriti Irani will be inaugurating the exhibition on Friday in the presence of leading textile company owners at the Surat International Exhibition and Convention Centre SIECC at Sarsana.
The exhibition organized by Synthetic Rayon Textile Export Promotion Council SRTEPC, has set the target of the business turnover at Rs 1,400 Crore. This global buyer-seller meet focus on showcasing Surat’s MMF value chain on the international buyers and establish it as the leading centre production for MMF and textile products in India.
“The first edition saw business turnover of $75 million. This time around we are targeting the turnover of over $100 million. About half of the foreign buyers from 40 countries will be visiting Surat for the first time”. said Narain Aggarwal chairman of SRTEPC.
Around 100 textile exhibitors will be showcasing their products during the exhibition. Over 50% exhibitors belong to Surat and surrounding areas.
Aggarwal added, “The exhibition will show a comprehensive range of Indian MMF products including, fabrics, made-ups, home textile, technical textiles, fashion accessories, yarn and fibre to the International buyers.
Operating with a wafer-thin margin, synthetic textile players to pass on the raw material price hike to the consumer
Synthetic fabric and textiles are likely to become costlier by 2-5 per cent due to an unabated increase in their production cost on rising raw material prices following crude oil move and a weak rupee.
Synthetic yarns are made from petrochemicals like DMT, PTA, which are refined from crude oil and usually domestic makers of these raw materials also price them at import price parity. Therefore, Prices of these raw materials for synthetic yarns are rising in the Indian market.
The spurt in raw material price is a clear indication of a proportionate increase in cost pressure for user industries. Apart from a steep depreciation in rupee against the dollar is set to make import of raw materials costlier, leaving thereby no room for synthetic textiles manufacturers but to raise their product prices.
“Rising raw material prices and rupee depreciation are going to make the entire textile products costlier. Synthetic textile industry is already working with a wafer thin margin. Since there is no room for the industry to absorb the raw material price hike, the cost-push, therefore, has to be passed on to consumers,” said O P Lohia, Managing Director, Indo Rama Synthetics (India) Ltd, one of India’s largest producers of synthetic textiles.
The benchmark Brent crude oil prices have jumped by a staggering 12.9 per cent in the previous one month to trade at $78.9 a barrel on Tuesday. Also, the rupee has depreciated by 4.1 per cent in the last one month to quote at 72.9 against a dollar on Tuesday.
Meanwhile, the Union Ministry of Agriculture has estimated India’s cotton output at 34.89 million bales (of 170 kgs each) for the crop year 2017-18 (ending September 2018), a rise of 32.58 million bales from the previous year. For the ongoing kharif sowing season, however, pink bollworm attack is set to affect India’s cotton crop area by 10-20 per cent of the total area sown of 12.06 million hectares as of September 14.
Demand from China is set to increase in favour of India following a heavy import duty levied on cotton imports from China and also a 20-25 per cent of cotton output in Pakistan expected to decline by a fourth, the fibre prices are likely to remain elevated.
“With limited supply in the market during H1 cotton season 2018-19 on account of increased orders from China, prices are expected to register a growth of about 5-7 per cent and reach Rs 122-125 per kg during this period and average at about Rs 127-130 per kg for the season 2018-19 registering a y-o-y growth of about 9-11 per cent,” said Madan Sabnavis, Chief Economist, Care Ratings. But, given that analysts forecast crude oil price to remain firm, synthetic fibre and yarn prices may also remain firm with its consumption to partly replace by derivatives of the natural fibre.
“An improvement in cotton price to polyester staple fibre price spread is likely to result in volume growth of synthetic textiles and support the profitability of the synthetic value chain,” said Prakash P, Analyst, India Ratings and Research.
ICICI Bank, one of India’s largest private sector banks, on Wednesday announced the launch of a new working capital facility that will enable MSMEs (micro, small and medium enterprises) to get an overdraft (OD) based on the turnover reported in their Good and Services Tax (GST) returns. Christened ‘GST Business Loan’, the facility is available to any MSME, including non-customers of ICICI Bank, for up to Rs 1 crore. According to the bank, this facility brings in the improved convenience of availing quick OD facility, by doing away with the requirement of paper-intensive assessment of financial documents including balance sheets of previous years.
Further, the process for sanction of the OD is reduced to two working days. Sharing his view on the launch, Anup Bagchi, Executive Director, ICICI Bank, said,
“Since GST takes in to account comprehensive business flows, we believe that GST returns will change the lending paradigm for MSMEs with faster and hassle-free access to working capital finance from financial institutions.
He further added, “With over one crore MSMEs registered in the GSTN network, we believe that this facility will give a boost to the MSME industry as a whole and open new avenues for business expansion for them. This new proposition resonates our effort in developing pathbreaking innovations for MSME customers, thereby offering them with solutions that cater to all their business needs.“ The ‘GST Business Loan’ facility is a collateral loan that can be availed by an MSME against mortgage of residential, commercial or industrial property. The amount of the loan varies from Rs 10 lakh and goes all the way to Rs 1 crore.
To avail the loan, customers are required to submit the GST return of the past six months, with no requirement of submitting financial statements. OD is sanctioned up to 20 percent of the turnover reported in the GST returns. The bank also said that ‘GST Business Loan’ is renewable on an annual basis, depending on the repayment track record of the overdraft facility by the customer. However, ICICI Bank is not the first bank to launch this facility. YES Bank had launched a similar facility for MSMEs in April 2018.
The India Meteorological Department (IMD) has predicted that the southwest monsoon will remain here till October 1. There is no chance of start of withdrawal of monsoon till October 1 due to the passage of western disturbance and the formation of a potential depression and low pressure area in Bay of Bengal caused by the erstwhile Pacific super typhoon Mangkhut. Both the systems are likely to infuse a fresh surge of monsoon.
The official date for the commencement of withdrawal of southwest monsoon is September 1.
The prolonged stay of monsoon season may sound as good news, but it comes with some repercussions. “The delay in the withdrawal of monsoon will further delay the onset of the next season. The delay will also push forward the onset of winter. And with El Nino all set to make appearance by the end of the year, it may impact the upcoming season, which turn mild due to all these factors,” IMD officials said.
Private weather forecaster Skymet too predicted that southwest monsoon will prolong its stay at least till September end.
Due to this, low pressure and depression over the Bay of Bengal from east to northwest India are likely to record moderate to heavy showers. A few areas might see some heavy downpour. Besides this, monsoon will also revive along the West Coast and Mumbai, which has been dry for last many days.
Officials said southwest monsoon is primarily governed by low pressure and depression.
The IMD said a preparatory cyclonic circulation sent in from the West Pacific lies over the central Bay of Bengal and neighbourhood. As a result, rain will start lashing coastal parts of Odisha, Madhya Pradesh and adjoining Andhra Pradesh by September 20 and 21; Chhattisgarh & Telangana on September 20 and 21; over Madhya Pradesh on September 21 and 22, and over parts of northwest India on September 22 and 23. East Rajasthan and north India will receive rainfall on September 23 and 24.
The US National Weather Services agency said depression would erupt in intensely heavy precipitation over North-West India: South Rajasthan, West Madhya Pradesh, East and North Gujarat, Delhi and West UP. This is likely to pan out over the next 12 to 15 days.
As per IMD data, monsoon withdrawal was most delayed in 2017 and had begun on September 27. In 2016, monsoon withdrew on September 15. Monsoon withdrew on September 4 in 2015 while in 2014 it withdrew on September 23. Monsoon withdrawal saw on September 9 in 2013 while it had withdrew on September 24 on 2012. Prevalence of dry weather for five straight days and reduction in moisture content are among the main factors considered for announcing monsoon’s withdrawal. Another condition is the setting of anti-cyclonic circulation over western Rajasthan. Agriculturists said the late retreat is not a cause for worry as rains aren’t heavy now and hence would help paddy, cotton and coarse cereals, though crops ready for harvesting may face some damage.
Presently, rainfall deficiency is over 10 per cent till September 19. The monthly deficit has increased from 5 per cent in June, to 5.8 in July and 7.6 in August. The country witnessed 750.5 mm rainfall as against the normal of 834.5 mm till date.
Out of total 36 sub-divisions, as many as 26 have witnessed normal rains, while nine continue to remain rain-deficient and only Kerala has recorded excess rain. Despite deficiency the sowing of paddy has been carried out over an area of 1,053 lakh hectare (lh) as against 1,046 lakh hectare covered in the corresponding week last year. Rice, oilseeds and sugarcane have reported a jump in acreage, while the planting of pulses and cotton is marginally lower. At 383 lakh hectare, rice planting is 2.28 per cent higher than that reported in the same week last year.
Odisha has lot of potential of exporting various commodities like, mineral, engineering, handicraft, textile, handloom, marine products etc. The Odisha products has a separate identity in foreign market. In this context Odisha performed exceptionally well in exports during 2016-17 by transacting business worth Rs. 40,872 crore – a 114 per cent increase over the previous financial year.
All the infrastructural facilities like inland container depot, full fledged Air Cargo Terminal at Bhubaneswar, International Cargo Terminal at Paradip will increase the potentiality of exports from the State. A full fledged testing laboratory set up by MPEDA & EIA also help the exporters to test their products.
A seminar on “Export Awareness and Documentation” was organized by Federation of Indian Exports Organisations (FIEO), Odisha Chapter in association with North Orissa Chamber of Commerce & Industry (NOCCi), and ICICI Bank Ltd. on 19th September 2018 at the NOCCi Business Park, Balasore. Sri Kunal Kumar, IRS, Asst. Commissioner of CGST, CE, Balasore Range inaugurated the seminar as the chief guest, presided by Shri Ramesh Kumar Mohapatra, State Head, FIEO, Odisha Chapter who also delivered the welcome address.
Sri Satya N Padhi, Regional Head, ICICI Bank, Bhubaneswar, Sri S. K. Jena, Branch Head, ECGC Ltd., Sri Dillip Kumar Mohapatra, Regional Head, ICICI Bank, Balasore spoke on various technical aspect like the rules & regulations related to different Govt. authorities like Customs & GST, Commercial Taxes, Directorate General of Foreign Trade, Export Credit Guarantee Corporation of India Ltd (ECGC) & Plant & Quarantine to guide them for handling their business in hassle free, apart from creating awareness amongst potential exporters. Expert Speakers delivered detailed presentation on the subject. The senior officials from FIEO and ICICI bank interacted with the participants and replied on doubts asked by the participants. Entrepreneurs, representatives from export units, officials from banks, Start-ups, participated in this seminar. Sri Harish Patel, Secretary NOCCi offered a vote of thanks to all.
