Issue 366 April 2, 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 42 factories in 11 countries:
Bangladesh, China, Dominican Republic, El Salvador, Honduras, India, Indonesia, Pakistan, Peru, Thailand, and Vietnam.


                                                                                                                                                      
 

Argentina
Textile and garment industry leaders in Argentina are hopeful that a new trade agreement with the United States will give them a significant boost. The agreement, signed during the recent visit of U.S. President Barack Obama, paves the way for strengthening trade ties between the U.S. and Argentina, which is one of the largest economies in South America.
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Bangladesh
The National Fire Protection Association (NFPA) has released a report looking at the current status of fire and building safety in the country amid the ongoing work of the Alliance for Bangladesh Worker Safety. The NFPA report praised the work of the Alliance thus far, which has included training of over 1 million workers and the implementation of a hotline for workers to report security concerns, though they admit that much work remains to be done as the Alliance enters the second half of its 5-year mandate. The report was based on data collected by NFPA officials during a visit to Bangladesh in August of last year. ( Fibre2Fashion /  NFPA)

The Accord on Fire and Building Safety in Bangladesh says that it has cut ties with 10 additional facilities for failing to make sufficient remediations in regards to safety. In a statement, the group said that it made "many attempts" to get the facilities in question to comply, but is now asking all Accord signatory companies sourcing from these facilities to terminate their relationship with them. This now brings the total number of facilities terminated by the Accord to 23. ( Apparel Resources /  Bangladesh Accord)

The Bangladesh Tariff Commission (BTC) says that the country would gain nothing in a potential future bid to join the Trans-Pacific Partnership (TPP). The BTC, which is a government agency with the mission of protecting local industries, says that trade preferences provided by the TPP would only be redundant to preferences already secured through other means like individual bilateral agreements. BTC officials do note however that Bangladesh would face significant competition from countries like Vietnam once the TPP is enacted. ( Fibre2Fashion)

Over 90% of Nordic companies operating in Bangladesh say that they plan to increase their activities in the country over the next 3 years, according to a new survey. The "Business Confidence Survey," jointly conducted by several Nordic business groups in the country, said that the ease of doing business in Bangladesh has risen by 9% since 2013 and that 56% of Nordic businesses reported a "favorable outlook" last year. Textiles and readymade garments are the second-largest sector for Nordic companies in Bangladesh. ( Fibre2Fashion

The government of Bangladesh says that it has lifted a ban on jute exports just four months after implementing it. Exports were cut late last year in an effort to replenish the domestic supply of jute, a goal which industry leaders say has been achieved. Several other jute importing countries, like India and Nepal, also praised the news as they looked to Bangladesh as a major source. ( Fibre2Fashion)

Cambodia
The United Nations Human Rights Commission in Cambodia says that the proposed trade union law currently under consideration violates several existing Cambodian laws in addition to several International Labor Organization (ILO) conventions. The commission says that many provisions of the new law could pave the way for increased government overreach and discrimination. A vote on the new law is expected on April 4. ( Phnom Penh Post)

Government leaders in Cambodia say that they are working to revitalize the country's silk industry by focusing on modernization, inclusivity, and sustainability. Government officials say that they will seek the support of international donors and investors to assist in producing more high-value silk products in order to create jobs and reduce poverty. Historically, silk weaving has been a way for rural Cambodian women to earn more income. ( Fibre2Fashion)
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Purchasing Managers
Index (PMI)

March 2016 Readings
Brazil: 46.0
China: 49.7
Indonesia: 48.4
Mexico: 53.2
South Korea: 49.5
Taiwan: 51.1
USA: 51.5
Vietnam: 50.7
Source:  Markit Economics 
 
The Purchasing Managers Index ( PMI  ) measures growth in a country's manufacturing based on surveys of selected companies. Readings above 50 indicate growth while readings below 50 indicate contraction.  
China
Efforts to revitalize the textile and garment industry in China's western Xinjiang region are paying off. Local government data indicates that textile and apparel exports grew 76.3% year-on-year and 14.2% month-on-month in January. Within the sector, garment and accessory exports nearly doubled year-on-year during January. Kyrgyzstan and Russia are two of the biggest export markets for the region. ( Fibre2Fashion )
 
Egypt
The Prime Minister of Egypt has pledged the full support of the government in supporting the country's industrial sectors, including textiles. Prime Minister Ismail Sherif has called for the creation of a comprehensive plan to develop the country's industry and help them increase their exports.
( Fibre2Fashion )
 
India
The most recent round of wage revision talks held on March 30 showed significant progress and participants say that an agreement could be finalized as soon as April 6. Representatives of both unions and factory owners eased their demands during the latest round of talks in the interest of compromise and progress. ( The Hindu )
 
Kenya
Business leaders in Kenya are looking to Chinese investors to help boost a number of local sectors, including textiles. In a statement, Kenya's Industrialization Cabinet Secretary said that the country has created a "favourable and enabling environment" for investment and called on Chinese businessmen to consider investing in one of the country's Special Economic Zones. Kenyan leaders are also pushing China to give duty-free access to their exports.  ( Fibre2Fashion )
 
Myanmar
Local Myanmar workers' rights group "Action Labor Rights" has released a new report examining the working conditions in factories that are either wholly or partly Korean owned. The report, dubbed "Under Pressure," says that many of the factories in question were not in compliance with local labor laws. Specifically, the group found that nearly 30% of the factories examined did not abide by the country's 16 hour weekly overtime limit while 66% of workers surveyed claimed that they were not able to refuse overtime. The report is based on data collected in the middle of last year.
 
Pakistan
The All Pakistan Textile Mills Association (APTMA) is urging the government to impose a 15% regulatory duty on imports of man-made fibers, particularly polyester products. During a recent meeting, APTMA leaders noted that consumption of such products had increased four-fold over the past four years, putting domestic producers at risk. They also note that if imports are not controlled, thousands of jobs could be at risk.  ( Fibre2Fashion )

Pakistan has signed a Memorandum of Understanding (MoU) with China to expand bilateral cooperation in the textile and apparel trade. While China has not traditionally been a major export market for Pakistan, industry leaders say that China's growing economy could offer major opportunities for Pakistani garment and textile exporters. In addition to trade growth, the agreement will also allow both countries to cooperate on business development.  ( Fibre2Fashion )
 
United States
Five manufacturing plants operated by Hanesbrands have been honored by the U.S. Environmental Protection Agency (EPA) for their energy conservation efforts. The facilities, located in El Salvador, the Dominican Republic, Honduras, Thailand, and Vietnam, received the "Energy Star Challenge for Industry" honor from the EPA after increasing their energy efficiency by 18%. In total, 23 Hanesbrands facilities have been honored with this award. ( Business Wire)

The World Bank has released a new report looking at the long-term prospects of the South Asia textiles and apparel sector. The report, titled "Stitches to Riches," says that 1 million workers are expected to enter the labor pool of the region every month for the next few decades and that in order for countries in the region to take full advantage of this, they must ensure that there are enough good jobs to be had by motivated workers. The World Bank estimates that apparel and textiles comprise 40% of manufacturing employment in the region, which includes India, Bangladesh, Pakistan, and Sri Lanka. ( Fibre2Fashion /  World Bank)

Vietnam
Some textile and garment companies within Vietnam say that the country does not have much to gain from the pending Trans-Pacific Partnership (TPP). Speaking at a recent workshop organized by the World Bank and the Vietnam Chamber of Commerce and Industry (VCCI), some factory owners decried the multiple layers of government bureaucracy that often hinder factories in the country from reaching their full potential. Some factory operators have even reported pulling out of the country in favor of a more relaxed regulatory environment. Local industrial leaders are urging the government to implement business-friendly policies instead of the cumbersome ones currently in place. ( Fibre2Fashion)

Vietnamese law makers are pushing for the draft of an export-import tariff law to be finalized as soon as possible during the ongoing session of Parliament. Government leaders say the new law will set a legal foundation to support the pending Trans-Pacific Partnership (TPP) as well as other trade agreements currently in the works. They also recognize that any impacts to domestic consumers should be considered in any legal proposal. ( 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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