Issue 361
February 26, 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

The phone number for our Bangladesh office has changed to 
+880-2-982-2339. Please update your records accordingly.


INTERVIEW WITH BOB BERG OF MAGIC

WRAP recently attended the Sourcing at MAGIC conference in Las Vegas where Communications Manager Russ Jowell talked with Bob Berg, MAGIC's Senior Sales Manager for International Sourcing, about the importance of WRAP and social compliance programs in the global garment industry. Click below to watch the interview

                                                                                                                                                      

Bangladesh
At least 25 people, including 10 police officers, were injured on February 22 after workers from 3 factories, one that has been closed since June, staged a protest over wages. Local authorities say that 1,300 workers of the Shomahar Sweaters factory gathered at the facility on the morning of February 22 after receiving word that it would be reopening. The workers became agitated after they saw a new sign on the facility stating that it would be closed for an indefinite period. ( The Daily Star

A fire broke out on the 8th floor of a sweater factory in Gazipur on February 23. Authorities say it took upwards of 10 firefighting units to control the blaze in 2 hours. No fatalities have been reported, however, and investigators say they are looking into what caused the blaze.

The Accord on Fire and Building Safety in Bangladesh says it has cut ties with 4 readymade garment factories after they reportedly failed to implement recommended workplace safety measures. Accord representatives say that the facilities failed to act on Corrective Action Plans issued by the Accord even after several reminders. This brings the total number of facilities that the Accord has cut ties with to 13.
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Bangladesh is a reliable sourcing destination for German fashion brands, according to German ambassador Thomas Prinz. Speaking at a recent press conference at the headquarters of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Prinz reaffirmed Germany's commitment to help Bangladesh build a "sustainable, compliant, and profitable RMG sector," while also helping to inform German consumers about the progress that has been made since the Rana Plaza incident. The press conference was held to announce the winners of a German journalism fellowship. ( Fibre2Fashion)  

Bangladesh's Commerce Minister Tofail Ahmed says that the government has agreed, in principle, to lower the corporate tax rate on the readymade garment sector. Ahmed also announced the country's 7th Five Year Plan which aims to increase the contributions of the textile industry from 29% of GDP to 33% of GDP. Both announcements came at a recent function in Dhaka where Ahmed awarded industry jobs to some 29 people from formerly Indian enclaves that now belong to Bangladesh. ( Fibre2Fashion)

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is seeking Turkish investment in Bangladesh's readymade garment sector. Speaking at a recent visit by a Turkish delegation arranged by the FBCCI, group leaders noted that Bangladesh has been experiencing growth of 6% over the last few years and that Turkey would make an ideal development partner. The delegates from Turkey met the proposal with enthusiasm and said that they would continue importing products from Bangladesh. ( Fibre2Fashion)
 
Cambodia 
Leaders in Cambodia say that they are taking a closer look at their membership in the Trans-Pacific Partnership (TPP) trade agreement and comparing it to the Regional Economic Comprehensive Partnership, a separate agreement that includes China and one that Cambodia is already negotiating for. The announcement came following a summit in the U.S. between President Barack Obama and the leaders of the ASEAN nations, most of whom have signed on to the TPP While leaders in Cambodia are confident that the TPP will give them a significant economic boost, some worry that joining the TPP could create a conflict with China, which owns most of Cambodia's debt. ( VOA News )

Nearly 2,000 workers at a Phnom Penh garment factory staged a strike on February 24 after the facility announced it would be cutting 500 staff members over the coming months. Union members say that factory officials have already decided not to renew the contracts of 100 workers and plan to release more workers over the course of the year. Cambodian law allows workers to be put on fixed-duration contracts for up to 6 months each, but for no longer than 2 years. ( Phnom Penh Post )

India
A Coimbatore-based think tank has published a new report alleging that 75% of the Tamil Nadu textile workforce is under the age of 18. During a recent event looking at issues facing textile workers in the state, representatives from the Centre for Social Education and Development also noted that 90% of workers below 18 were also migrant workers. They urged both the local and national governments to reinforce their policies against underage labor and ensure that legal workers under the age of 18 have the same rights as their older counterparts. ( Deccan Chronicle)
 
The government of Tamil Nadu has revised the minimum wage policy for those employed in the hosiery industry. While the base rate will remain unchanged, workers will now get an additional "dearness allowance" based on the average Chennai City Consumer Price Index. The new policy came into effect on February 17 after it was published in the government gazette. ( Fibre2Fashion)
 
Indonesia
Leaders with the Indonesian Textile Association say that while possible membership in the Trans-Pacific Partnership (TPP) trade agreement would greatly benefit the country, they are wary of the TPP's "yarn-forward" rule. Speaking at a recent press conference, the head of the association's Advisory Board noted that Indonesia would need to reform its industry to comply with the policy if it ever chooses to join.( Fibre2Fashion
 
Laos
Laos has signed a bilateral Trade and Investment Framework Agreement with the United States, creating a forum for the two countries to discuss trade and investment issues. Two-way goods trade between the countries has grown five-fold over the past decade to US$70 million, with apparel trade representing over 10% of that value. While low labor costs and duty-free access to Europe have generated interest from companies looking for sourcing in Southeast Asia, its status as a landlocked country that has not signed on to the Trans-Pacific Partnership (TPP) has simultaneously given those same companies pause.
( U.S. Trade Representative /  Just Style)   *NOTICE: Just Style article requires a paid subscription
 
Lesotho
A textile factory in Lesotho has reportedly fired over 900 employees for taking part in an illegal strike. Workers at the Ace Apparel factory stopped work on February 10 following a fight between a factory manager and a machine operator. They insisted that they would not return to work until the operator, who resigned shortly after the incident, was brought back to the job. The machine operator says he walked away because the manager was never held to account for the fight, even though he himself was reprimanded.  ( Star Africa )

Nepal
Nepali apparel products have been granted duty-free access to the U.S. market. The move comes after U.S. President Barack Obama signed the Trade Facilitation and Trade Enforcement Bill into law. The U.S. International Trade Commission says it is planning to send a team to the country next month to assess its capacity to take full advantage of these trade preferences. ( The Himalayan Times)
 
Nigeria
Nigerian garment workers are demanding a higher minimum wage in order to counter a recent devaluation of their country's currency. Workers group say that recent devaluation moves by the government have cut the value of their current N18,000 monthly minimum wage from roughly US$124 to US$60 and that they would need a wage of at least N48,000 to recover their lost purchasing power. Union leaders are also urging the government to reconsider any future devaluation moves. ( Fibre2Fashion)


Pakistan
An Joint Investigative Team (JIT) in Pakistan says that the deadly 2012 Ali Enterprises factory fire was an act of "planned sabotage and terrorist activity." The revelations were made in a new report issued by the JIT, which claimed that the fire was started by members of the Muttahida Qaumi Movement (MQM) after the factory owners failed to pay an extortion of Rs. 200 million (US$1.9 million). The report also criticizes the earlier investigation of the disaster, calling it a "classic manifestation of compromised and mutilated form of policing" that benefited the offenders and not the victims. ( Dawn)

United States
U.S. President Barack Obama has signed a new law closing a loophole that allowed some goods produced by underaged or forced labor to enter the United States. The Trade Facilitation and Trade Enforcement Act eliminates a clause in the 1930 Tariff Act that allowed some goods produced under these conditions to enter the country if there was no other way to meet the domestic demand for those goods. The new policy will allow the U.S. Customs and Border Protection Agency (CBP) to step in if any individual or group files a petition demonstrating "reasonably but not conclusively" that a certain product was manufactured using forced or underaged labor. Officials say that enforcement provisions under the 1930 act have only been used 39 times, most recently in 2000. ( Associated Press)

Any delay or failure by the U.S. Congress to approve the Trans-Pacific Partnership (TPP) agreement could cost U.S. exporters over US$90 billion, according to a new government report published by the Council of Economic Advisers. The 2016 "Economic Report of the President, received both by Congress and President Barack Obama, emphasized the importance of the TPP for the U.S. economy, noting that other major economic players like China, Europe, and Japan are engaged in negotiations for other trade agreements that could leave U.S. trade far behind should the TPP not get approval. The report points out that the TPP could help the U.S. economy grow by as much as 2.4% in 2018. ( Just Style)
*NOTICE: This article requires a paid subscription

Vietnam
Leaders in Vietnam's garment industry say they are confident that the country will reach its US$30 billion export target this year. Industry experts say that most manufacturers have either already secured sufficient orders to meet this quota or are confident that sufficient orders will be secured in the coming months. Vietnam exported US$2 billion in textiles and garments in January. ( Fibre2Fashion)

Manufacturers in Vietnam must ensure they have all of the latest technologies in order to take full advantage of the pending Trans-Pacific Partnership (TPP), according to a recent seminar in Ho Chi Minh City. Industry leaders insist that Vietnamese manufacturing facilities must ensure that their technologies in all processes, from design to production, are as modern as possible so that their goods can be competitive on the global market. ( Fibre2Fashion)


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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