Issue 363
March 11, 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 35 factories in 13 countries:
Bangladesh, Cambodia, China, Haiti, Honduras, India, Indonesia, Madagascar, Mexico, Nicaragua, Pakistan, Sri Lanka, and Vietnam.


WRAP's President & CEO Avedis Seferian recently wrote a Guest Editorial column for Sourcing Journal looking at the issue of working hours and talking about WRAP's recent updates to Principle 6.
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Bangladesh
Garment industry leaders in Bangladesh are expressing concern after the British government announced a ban on direct cargo flights from the Dhaka airport. British inspectors say that they identified numerous security issues at the airport, including inadequately trained security screeners, and that direct cargo shipments between Dhaka and the U.K. would be suspended until further notice. A similar ban was implemented by Australia in December of last year.

The Alliance for Bangladesh Worker Safety says that it has cut ties with 5 factories in Dhaka and Chittagong. Alliance representatives say 4 of the factories in question failed to act on safety recommendations, while another failed to make adequate progress on remediations. This brings the total number of facilities suspended by the group to 31. ( New Age BD)

Better Work Bangladesh has made a significant impact on the country's readymade garment industry, according to attendees at the program's first stakeholders and buyers forum held recently in Dhaka. Srinivas Reddy, Bangladesh Country Director for the International Labor Organization (ILO), noted that the program had gained "excellent support" from government, workers, and employers alike and has engaged over 100 factories in efforts to improve working conditions. Initiated in 2014, it's estimated that the program now impacts over 180,000 workers. ( Fibre2Fashion)
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Dhaka, Bangladesh

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The attention being paid to worker rights and well-being in the Bangladesh garment industry has grown significantly since the Rana Plaza tragedy nearly 3 years ago. One such program, Fair Trade USA, says it grew by 358% in 2014. A representative with the group attributes the growth to increased awareness about the importance of social responsibility within the industry. ( Just Style)
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Global apparel brand H&M says that it will continue to source products from Bangladesh for the foreseeable future, even as the company searches for alternative sourcing destinations. During a recent meeting with Bangladeshi journalists in the company's German office, a top executive with H&M said that the company has had a good relationship with Bangladesh for the past 30 years and that business would continue. H&M reportedly purchases over US$5 billion in goods from Bangladesh each year. ( Fibre2Fashion)

Bangladesh imports about half of its cotton from India, according to the Bangladesh Textile Mills Association (BTMA). Group leaders say that quick shipping times, price competitiveness, and product quality all make India a very attractive option for cotton imports. ( Fibre2Fashion)
 
Cambodia
A controversial proposed law affecting unions in Cambodia is one step closer to becoming reality. The head of the National Assembly's legislative commission says he hopes to have a draft law passed "very soon" folloing the latest round of feedback from unions and employers. The new policy would set new rules for forming, running and dissolving unions and while workers' groups say the law goes to far, employers say it does not go far enough. ( Cambodia Daily)
 
Canada
Canada's first-ever apparel and textile sourcing trade show will take place in August of this year at Toronto's International Centre. The show, produced by JP Communications in coordination with a major Chinese textile trade association, will give Canadian retailers an opportunity to connect with manufacturers from around the world. ( Business Wire)
 
India
India's Textile Secretary says that the country's new textile policy will be a "simplified" one. In a newspaper interview, Secretary Rashmi Verma noted that the new policy would focus on growing the production of the textile sector by growing employment, identifying new export markets, and introducing new value added products. Verma also says that the ministry is considering revising some of its working hour policies, including possibly allowing women to work at night. ( Fibre2Fashion )  

India's Department of Industrial Policy and Promotion says that the country received nearly US$30 billion in Foreign Direct Investment between April and December of last year.Analysts credit this influx to concerted efforts by the government to make conducting business in the country as seamless as possible. ( Fibre2Fashion )  

The Clothing Manufacturers Association of India (CMAI) has reinforced its opposition to a proposed excise duty on branded readymade garments. CMAI leaders say they are urging the government to instead continue with the current optional duty regime. In his recent budget speech, Finance Minister Arun Jaitley floated the idea of a 2% excise duty on such products. ( Fibre2Fashion )
 
Nigeria
Numerous textile manufacturers in Nigeria are speaking out against high interest rates saying that they are a major barricade to moving the industry forward. Industry leaders say that the country is being flooded with cheaper imported fabrics from places like India and China as they contend with interest rates as high as 30%. The government says it has provided low-cost financing programs in the past, but industry representatives say most of that money was used to refinance existing loans and was not put toward capital improvements. ( Fibre2Fashion)
 
Pakistan
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is urging Prime Minister Nawaz Sharif to appoint a new Textile Minister soon. While the position has reportedly been vacant for upwards of 2 years, FPCCI leaders emphasized the importance of the office because of the vital role textiles play in Pakistan's overall economy. They also point to a number of pressing issues that need to be addressed including unpaid sales tax refunds and drawbacks of local taxes. ( Fibre2Fashion)  

United States
There is growing opposition to the pending Trans-Pacific Partnership (TPP) trade agreement from both Republican and Democratic politicians in the United States. Presidential candidates Donald Trump, Hillary Clinton, and Bernie Sanders have all publicly expressed their opposition to the deal, joining a growing list of congresspeople who say the TPP would kill U.S. jobs. While the agreement has been signed by its 12 constituent nations, it still must be approved by the legislatures of those nations, a proposition that many U.S. pundits see as tough during an election year. ( Sourcing Journal
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Levi Strauss & Co. and H&M have named in Ethisphere's 2016 list of the "World's Most Ethical Companies." First published in 2007, the list recognizes companies around the world that promote ethical business standards, enable all employees to make responsible business decisions, and implement innovative best practices. The full 2016 list includes 131 companies in 21 countries. ( Ethisphere /  Fibre2Fashion)

Vietnam
The Vietnam Textile and Apparel Association is denying reports that Cambodia has surpassed Vietnam in apparel exports to Europe. This comes after several local news outlets reportedly published such stories, claiming that Cambodia was now the 5th-largest exporter of garment and textile products to Europe. Association leaders attributed the error to a misinterpretation of European import data. ( Vietnam News)

The Investment and Trade Promotion Centre of Ho Chi Minh City has finalized a Memorandum of Understanding (MoU) with the Korea Trade-Investment Promotion Agency aimed at facilitating the exchange of investment and trade information. The MoU also aims to boost the flow of goods between the two countries. ( 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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