Issue 359
February 12, 2016
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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 62 factories in 8 countries:
Bangladesh, Cambodia, China, Egypt, India, Mexico, Myanmar, and Pakistan.



                                                                                                               


Antigua & Barbuda
The Trade Minister of the island nation of Antigua and Barbuda says that a new partnership with China could lead to a rebirth of the island's garment industry. Minister Paul Greene says that the partnership currently in the works would help the country grow its exports to other nearby Caribbean nations and potentially into mainland Latin America. A 3 month sewing workshop is being considered as one of the inaugural events for the venture. ( Antigua Observer

Bangladesh
Bangladesh's restoration of GSP (Generalized System of Preferences) trade benefits with the United States is solely dependent on the progress the country makes toward the GSP action plan laid out by the United States. That was the sentiment expressed by Marcia Bernicat, the U.S. ambassador to the country, during a social media chat session marking the first anniversary of her appointment to the post. Bernicat also noted that she has visited many production facilities across the country that have completed all of their safety remediations, but insists that much more work remains to be done before Bangladesh can re-qualify for GSP benefits. ( Dhaka Tribune)

The Accord on Fire and Building Safety says that 522 of its facilities have failed to achieve the desired level of progress in remediation. Accord officials say they have given the list of these factories to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in an effort to expedite the remediation process. Both groups say they will cooperate to ensure the required remediations are made in a timely manner.

Bangladesh's Commerce Minister Tofail Ahmed says that the new Dutch ambassador to the country has lauded the progress the country has made since the Rana Plaza tragedy of 2013. During a press conference that followed a meeting with Ambassador Leoni Cuelenaere, Ahmed thanked the Dutch government for their financial assistance following the tragedy and promised a further desire to cooperate. ( Fibre2Fashion)

Members of the Garments Sramik Front staged a protest rally on February 11 calling on the government to increase the minimum wage to Tk. 15,000 per month (US$190). They say that the current level is far below the necessary amount to raise a family in the city of Dhaka and indicated that public and government officials had recently received increases in pay. ( New Age BD)

AKH Group has opened a new eco-friendly garment factory outside of Dhaka. The new facility will reportedly be able to greatly reduce its energy consumption and generate about a quarter of that needed energy from solar sources. It has already received a Gold certification from LEED (Leadership in Energy and Environmental Design) and company leaders hope the new facility will be able to produce upwards of US$80 million in goods per year. ( The Daily Star)
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Belgium
The European Commission says it may accept a European Court of Justice (ECJ) ruling against anti-dumping duties imposed on leather footwear made in China and Vietnam. The duties were first imposed in 2006 over concerns that these items were being sold below cost, though several retailers now say the duties were illegal and are demanding a refund. ( Just Style *NOTICE: This article requires a paid subscription

Cambodia
At least 2 people were killed and 17 others injured after a truck transporting garment workers crashed on the morning of February 6. Authorities say that the driver, who reportedly did not have a license, was speeding and driving recklessly when the collision occurred. The truck was carrying workers to their shifts in the 7NG Special Economic Zone.  ( Phnom Penh Post )  

Workers at the shuttered Weibo factory ended weeks of protests on February 1 after receiving their unpaid wages for December. The facility closed its doors last month amid massive debts, sparking a massive protest among workers who did not receive their pay. Factory officials say they sold off some of their machinery to cover the costs of the wage payments. ( Phnom Penh Post )

China
China's lead as the world's top apparel sourcing destination could begin to erode in 2017, according to a new industry report commissioned by the California Fashion Association. The report also confirms that Vietnam will claim the number two spot for the foreseeable future followed by India in third place. The report was based on a survey given to 50 apparel industry leaders in the Los Angeles area. ( Business Wire )
 
Denmark
The value of Danish fashion exports has overtaken the value of foreign sales of one of the country's most well-known products, bacon. This is according to a new report issued by Statistics Denmark at the conclusion of Copenhagen Fashion Week on February 5. While many Danish fashion brands may not be easily recognizable outside of the country, industry leaders say that Danish fashion products are economical and practical for everyday wear, which contributes to their popularity.
( Reuters )
 
Ethiopia
Global fashion retailer H&M has teamed up with the International Labor Organization (ILO) and the Swedish International Development Cooperation Agency (SIDA) to launch an industrial relations project in Ethiopia aiming to improve the development of a socially sustainable textile and garment industry in the country. In a statement, H&M said that promoting a "well-functioning" dialogue was a key step toward improving working conditions along its supply chain. The effort is part of a larger push by the country to have democratically elected and functional workplace representation in all of its supplier facilities by 2018. ( Fibre2Fashion)

Malaysia
Scientists in Malaysia have published a new study suggesting that textile workers have an elevated risk of contracting rheumatoid arthritis. The study, published in the journal "Annals of Rheumatic Diseases," says that prolonged exposure to textile dust could trigger changes in the lung tissue, which in turn could trigger an immune response in people genetically susceptible to the condition. While it is not clear whether or not textile dust directly causes the disease, researchers still urge workers and their managers to ensure proper respiratory protective measures are taken while on the job. ( Reuters )

Myanmar
The Myanmar Investment Commission has approved 14 new local and foreign projects in the garment sector, according to local media. These 14 are part of a total of 30 projects approved by the commission. Government leaders say that many potential foreign investors have been hesitant due to the changing political climate in the country, but that investment should increase once the country's new cabinet is in place. The country hopes to bring in upwards of US$6 billion in foreign investment during the current fiscal year. ( Fibre2Fashion)

United States
Nearly all of the top apparel exporters to the United States posted year-on-year growth in export volume during December, according to new data from the U.S. Office of Textiles and Apparel (OTEXA). Bangladesh showed the highest growth at 18.8%, followed by Cambodia at 13.2% and Vietnam at 10.7%. Mexico and Honduras both showed declines of 11% and 1.45% respectively. ( Just Style)
*NOTICE: This article requires a paid subscription

The U.S. Customs and Border Protection agency (CBP) says that members of the trade community are not adapting their new Automated Commercial Environment (ACE) program as quickly as originally hoped. The ACE initiative aims to streamline the import/export documentation process by putting most of the needed documents online. CBP officials say their talks with trade stakeholders indicate that the community may not be ready for the digital transition as early as originally hoped. It is hoped that the new system will be fully implemented by December. ( CBP /  Sourcing Journal)
*NOTICE: Sourcing Journal article requires a subscription


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.

Notice: The WRAP Weekly Newsletter is a collection of links to current news articles, relevant to social compliance. While most articles are freely available, some may require a paid subscription to access. WRAP is not responsible for the content of external internet sites.

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