Issue 320
April 16, 2015
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Welcome to the  WRAP Weekly Newsletter! Please enjoy it and thank you for being a loyal reader. 
The WRAP Up
Last week we certified 30 factories in 12 countries:
Bangladesh, Cambodia, China, Egypt, El Salvador, India, Indonesia, Pakistan, Sri Lanka, Thailand, USA, and Vietnam.



 



Bangladesh
Investigators looking into the collapse of the Rana Plaza building in 2013 have been granted extra time by a Dhaka court to submit their report. The Crime Investigation Department (CID) has now been given until May 21 to submit their findings in regards to the collapse. So far, 21 arrests have been made in connection to the tragedy. ( BD News 24)

Bangladesh's Anti-Corruption Commission (ACC) has filed corruption charges against the parents of Sohel Rana, owner of the Rana Plaza building, for possessing illegal wealth worth US$2.7 million. The charges come amid an investigation into the collapse of the Rana Plaza complex in 2013 looking at how Rana acquired the means to fund construction of the project. Investigators say that Rana's parents did not disclose the money during the initial phase of the investigation. (The Financial Express)


Representatives of the readymade garment industry in Bangladesh say that the demands from the two major Western safety initiatives, the Alliance and the Accord, are too stringent and, in some cases, illogical. Participants at a recent gathering in Dhaka organized by several of the country's major trade groups said that not only were the demands from the two groups becoming too cumbersome, but that the disagreements between them were also affecting the quality of their inspections. BGMEA President Atiqul Islam noted that the two groups should establish a presence in other major apparel producing countries as well in order to ensure a level playing field around the world. ( The Financial Express)

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has signed a Memorandum of Understanding (MoU) with German NGO For-Bangladesh to provide treatment for garment workers injured on the job. The agreement was signed by BGMEA President Atiqul Islam and For-Bangladesh President Hasnat Mia at a recent ceremony in Dhaka. ( Hawker)
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By: Kelli Hoggle Gordon

Atiqul Islam, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), says that the progress that the country has made in terms of worker safety since the Rana Plaza disaster has laid a foundation for great future success. Islam says that the sweeping changes that have occurred would not have been possible without the cooperation of dozens of global stakeholders, all of whom he praised for their willingness to participate in the process. He also says that he is confident that Bangladesh will one day be regarded as the safest apparel sourcing destination in the world. (Dhaka Tribune) 

 

The Commerce Ministry of Bangladesh says that China is becoming an ever more important export destination for its apparel and textile products. Data from the Export Promotion Bureau (EPB) says that garment exports to China grew by over 73% year-on-year during FY2013-14 and that China is now the country's second-largest Asian export market after Japan. Some even estimate that Bangladeshi garment exports to China could reach US$1 billion by 2018. (The Daily Star

 

Cambodia

The World Bank says that Cambodia's economic growth could be stymied over the next three years thanks to increasing production costs and rising competition from neighboring countries. The bank's recent East Asia and Pacific Economic Update says that the year-on-year growth rate of Cambodia's GDP could slow to just 6.9% this year and next and reduce even further to 6.8% by 2017. Bank officials say that Cambodia needs to address the stability in its labor market, improve the business environment, and invest in infrastructure improvements if it wants to stay competitive. (Cambodia Daily

   
India

At least 2 workers were killed after a tannery caught fire outside of the city of Kanpur on April 14. Firefighting authorities say that there were 6 people inside of the building when the blaze ignited and four of them managed to escape with minimal injuries. So far, the cause of the fire remains under investigation. (Times of India)

 

The Tirupur Exporters Association (TEA) says that knitwear exports from the state grew by over 15% year-on-year during FY2014-15 to reach US$3.3 billion. TEA President A. Sakthivel says that exports could grow by another 75% by FY2016-17 if the government addressed certain key issues, including expediting negotiations on two Free Trade Agreements with Europe and Canada. (Fibre2Fashion)

 

Government officials in India have vowed to expedite processing over US$480 million in backlogged payments owed under the Textile Upgradation Fund Scheme (TUFS). Textiles Minister Santosh Gangwar says that he has spoken to India's Finance Minister about the issue and has urged textile factory owners and operators to pressure the Prime Minister about the matter as well. The TUFS program is an interest subsidy scheme designed to help factories upgrade their equipment in order to remain competitive. (Fibre2Fashion)

 

Indian Textiles Minister Santosh Gangwar says that a national plan aimed at building more textile parks around the country is vital to keeping India at the top of the global apparel production market. Speaking at a recent event to update the progress on the parks, Gangwar noted that the Scheme for Integrated Textile Parks (SITP) has already led to the construction of 70 parks which would provide employment opportunities for over 11 million people and open the doors for significant investment opportunities. He also noted that the parks would play a vital role in the Prime Minister's "Make In India" scheme, which aims to promote all Indian-produced export goods around the world. (Fibre2Fashion)

 

The Apparel, Made Ups, and Home Furnishing Skill Sector Council (AMHFSSC) says that it will sign two Memorandums of Understanding (MoU) with Fanshawe Collge in Ottowa, Canada and the Canada-India Education Council during the upcoming visit of Indian Prime Minister Narendra Modi to Canada. The MoUs will aim to increase the number of trainers in the textile sector and also boost the quality of the training that they provide. Additionally, Indian officials hope to use the MoU to grow their expertise in the textile industry. (Fibre2Fashion)

 

The Chief Minister of India's Maharashtra state says that the Vidarbha region will soon be home to 8 new textile mills. The move is aimed at reinvigorating cotton production in the region, which has seen a slump in recent years. Government officials say they also plan to implement several new irrigation projects to spur growth in cotton production as well. (Fibre2Fashion)

  
Morocco

The head of Morocco's apex textile and apparel trade group says that his country is focused on creating a fully-integrated textile and garment industry over the next 15 years. Mohammed Tazi, head of Association Marocaine des Industries du Textiles et de l'Habillement (AMITH), says that he hopes to create a vibrant fast-fashion production hub to produce for the nearby European markets as well as for the growing domestic consumer base. Experts estimate that textiles and garments account for up to 10% of Morocco's total GDP. (Just Style) *NOTICE: This article requires a paid subscription.

 

Pakistan

Pakistan could soon see up to US$300 billion in textile investment from China, according to a Pakistani official who recently returned from China. The unnamed official made the announcement following meetings with Chinese government officials and business representatives, noting that the Industrial and Commerce Bank of China (ICBC) is already working on plans to build an industrial zone in Pakistan, possibly near the historic Silk Road. China is also reportedly working on making major investments in steel and concrete industries in Pakistan as well. (The Nation)

 

Sri Lanka

A garment factory outside of Colombo caught fire on the morning of April 13, according to local authorities. Firefighters say they were able to bring the blaze under control quickly though with no injuries occurring. So far, a cause has not been identified. (Adaderana)

 

Sweden

Sweden-based global apparel retailer H&M has released its latest sustainability report looking at the progress of over 80 "Conscious Actions" that the company has set out to accomplish. The report says that the company has collected over 13,000 tons of recycled textile products as part of its clothing recycling initiative and that they are aiming to triple the amount of products made with recycled fibers by the end of this year. The company says that it has also grown its public supplier list to include second-tier suppliers. (Sustainable Brands / H&M

 

United States

Officials in the United States have asked the World Trade Organization (WTO) to form a dispute settlement panel to address a Chinese export subsidy program. The Office of the U.S. Trade Representative says that China's "Demonstration Bases-Common Service Platform" grants unfair, and illegal, export subsidies to a large range of industries, including textiles. U.S. officials say that the WTO Dispute Settlement Body will establish the panel at its next meeting on April 22. (Reuters)

 

The American Apparel and Footwear Association (AAFA) recently sent a letter to U.S. Trade Representative Michael Froman urging him to pressure global online retailer AliBaba to crack down on counterfeit goods sold on its site. The letter comes after controversy surrounding the Taobao marketplace on AliBaba. Company officials say that they have robust measures to combat counterfeit goods and that it cooperates with both government and industry groups to keep counterfeit goods off of the site. (Reuters)

 

The U.S. Department of Commerce says that exports of U.S. footwear surged in February, even as imports declined. Commerce Department data says that footwear exports grew by 5% between January and February of this year, and rose by 7.5% year-on-year in February as well. Canada is the biggest market for U.S. footwear exports, followed by Japan and South Korea. (VAMP Footwear)

 

The U.S. Department of Commerce and the Office of the U.S. Trade Representative have released a new report saying that a growing number of U.S. jobs are being supported by exported goods, including textiles and apparel. The report lists specific details for all 50 states on how many businesses are supported by exports and also looks at trade data for countries involved in major trade deal negotiations, including the Trans-Pacific Partnership (TPP). The report also notes that U.S. President Barack Obama plans to introduce measures that will open up U.S. export opportunities to 95% of consumers who live outside of the country. (U.S. Trade Representative)

 

Vietnam

Small and Medium Enterprises (SMEs) in Vietnam should focus on improving their supply chain management if they hope to stay competitive in the future, according to experts at a recent supply chain workshop in Ho Chi Minh City. Experts at the event noted that Vietnamese producers would need to focus on updating their supply chain practices and policies if they hope to take full advantage of the numerous international trade deals pending with the country, including the Trans-Pacific Partnership  (TPP). The US-ASEAN Business Council estimates that 98% of garment and textile producers in the ASEAN region qualify as SMEs. (Fibre2Fashion)

 

Officials in Vietnam say that Morocco could be the key to future global growth for Vietnamese companies. During a recent business forum in Hanoi, Vietnamese trade officials said that Morocco has been a highly profitable export market for Vietnamese goods, growing by 48% year-on-year in 2014 alone, and that the country would be an ideal proving ground for Vietnamese companies to launch production hubs to serve markets in Northern Africa, Southwest Asia, and Europe. (VietNam Net)

 


About WRAP
Headquartered in Arlington, Virginia, U.S.A., with regional offices in Dhaka, Bangladesh, Hong Kong S.A.R., and representatives in India and Southeast Asia (Thailand and Vietnam), WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane, and ethical manufacturing around the world through certification and education.
To learn more about WRAP, please visit www.wrapcompliance.org.

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