Issue 365 March 25, 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 39 factories in 12 countries:
Bangladesh, Cambodia, China, El Salvador, Honduras, India, Mauritius, Pakistan, Peru, Sri Lanka, Thailand, and Vietnam.


                                                                                                                                                      

Bangladesh
Attendees at a recent garment industry seminar in Bangladesh called on all global stakeholders to play a part in portraying the truth about Bangladesh's garment industry. Speaking at the event, Bangladesh's Minister for Foreign Affairs noted that the country has been making significant progress in the area of workers rights and that it is essential that an accurate narrative be portrayed to the rest of the world. He also called on foreign buyers to pay fair prices for the products they buy from the country. ( Fibre2Fashion)

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says that the country's garment industry needs to focus on "going green." Speaking at a recent seminar hosted by the BGMEA and Canadian diplomats, BGMEA officials stressed the importance of promoting environmental consciousness within the industry, saying that it could also contribute to the country's goal of achieving US$50 billion in exports by 2021. ( Fibre2Fashion

Cambodia
Several major trade unions in Cambodia are planning demonstrations in the coming days ahead of a scheduled vote on a controversial new union law. Organizers say that they are organizing individual demonstrations at over 130 factories across the country on March 27, with a larger collective event planned for the day of the vote on April 4. Workers' groups say that the proposed law weakens the power of unions in the country.

Security personnel at two factories in Cambodia have been arrested and charged with raping a teenage security guard. Authorities apprehended the men after the 19-year-old woman reported being raped by one of the men, reportedly the head of security at one of the facilities, after she refused his sexual advances. The man in question says that while he did make contact with the girl, he did not rape her. ( Cambodia Daily)

One of Cambodia's foremost labor leaders is facing accusations of forgery and disinformation. Pav Sina, head of the Collective Movement of the Union of Workers, was recently sued by a lawyer representing an anonymous factory in Cambodia claiming that he forged several documents. Attorneys for Mr. Sina say that the move may be a tactic used by factory representatives to prevent strikes. ( Cambodia Daily)

China
The government of China's Xinjiang Uygur Autonomous Region has announced a number of policies aimed at boosting the textile industry in the region. Among these include rent-free factories and favorable loan deals. Local officials say they hope to create 11,000 new jobs in the industry this year. ( Fibre2Fashion)
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Germany
Fairtrade International has released its new Textile Standard. Based on the group's existing "Hired Labor Standard," the new Textile Standard will focus on working conditions, living wages, and workers rights throughout the global supply chain.  The new standard will go into effect on June 1, at which point the group says it will begin audits against the standard.
( Fibre2Fashion  /  Fairtrade )
 
Hong Kong
A new report by the Hong Kong Trade Development Council (HKTDC) says that India could present a great source of opportunity for Hong Kong manufacturers looking to expand their operations. The HKTDC report notes that the costs of manufacturing on the Chinese mainland are becoming prohibitively high for some Hong Kong companies, where as India it not only more economical, but also includes a massive domestic consumer market. The report was published following a recent visit by the HKTDC to India. ( Fibre2Fashion)
 
India
The latest round of negotiations for wage increases between unions and manufacturers in Tirupur failed to reach a consensus and a new round is slated to take place on March 30. Manufacturer representatives have proposed an 18% raise in the first year follows by an additional 3% in the second, third, and fourth years. Workers' group say this level is too low and they are also seeking other provisions like a dearness allowance.
( Times of India )

The Associated Chambers of Commerce of India (ASSOCHAM) is pushing the government to do a thorough review of the country's international trade agreements in an effort to curb sliding exports. The group says that Indian exports could contract by as much as 18% this year to reach US$260 billion, close to the 2010-11 level of US$251 billion. ASSOCHAM claims that many of the trade agreements India has signed have been motivated by politics instead of business. ( Fibre2Fashion)
 
Japan
A Japanese manufacturing technology company may hold they key to reviving garment production in the country through automation. Shima Seiki's "Whole Garment" system is an all-in-one device that produces finished garments in a single process without any textile waste because the process does not involve cutting or sewing. The company says that the machine allows a single worker to perform the tasks of 10 workers, drastically cutting back labor costs. Nearly 800 companies around the world, about half of them Japanese, are using the technology. ( AFP)
 
Mexico
Textile industry leaders in Mexico are worried that the pending Trans-Pacific Partnership (TPP) along with the border wall proposed by U.S. presidential candidate Donald Trump could severely hurt the sector. While Mexico is also a signatory of the TPP, leaders with one of the main trade associations says that Vietnam poses a significant threat to their export markets in the U.S. thanks to massive government subsidies. As for the wall, analysts say that it could cut up to 20% of the textile trade between the United States and Mexico.
( Just Style )   *NOTICE: This article requires a paid subscription
 
United Kingdom
Cargo theft and natural disasters were among the top threats to global supply chains in 2015, according to a report by the BSI Group. In the latest edition of its "Global Supply Chain Intelligence" publication, the company says that global businesses lost over US$22 billion last year due to theft and US$33 billion due to natural disasters. They also point to labor unrest and threats from terrorism as other major issues. 

A conference is scheduled to take place in the U.K. next month looking at the long-term viability of manufacturing in the country. The event, hosted by the Association of Suppliers to the British Clothing Industry (ASBCI), will look at a number of issues related to commerce, sourcing, and ethics while also considering the implications of possibly leaving the European Union. The event will be held on April 19. ( Just Style   *NOTICE: This article requires a paid subscription
 
United States
The U.S. Department of Labor has released a new report raising "significant concerns" about the right to freedom of association in several of Peru's export sectors, including textiles and apparel. The report, released under the U.S.-Peru Trade Promotion Agreement, also raised questions about labor law enforcement in the country. Officials at the department say that they have given Peru six recommendations for remedying the indicated issues. ( U.S. Department of Labor /  Fibre2Fashion)

Denim company Levi Strauss & Co. has made public the techniques is uses to reduce water consumption during the garment finishing process, an effort it has dubbed "Water<Less." The techniques were introduced by the company in 2011 and since then, have reportedly helped the company save over 1 billion litres of water. The announcement was made in conjunction with World Water Day on March 22. ( Business Wire)

The National Retail Federation (NRF) is urging the U.S. Congress to reject any proposals for a consumption tax as lawmakers consider tax reform. NRF executives say that a consumption tax would further harm the U.S. economy at a time when it is already stagnant and consumer confidence is low. While no such proposals have even come close to becoming law, several have been proposed over the past 15 years, including a European-style Value Added Tax (VAT). ( NRF /  Sourcing Journal)
*NOTICE: Sourcing Journal article requires a subscription

Vietnam
While Vietnam's textile and garment industry is expected to benefit significantly from the pending Trans-Pacific Partnership (TPP), insiders also say the country has a number of significant hurdles to overcome in order to fully realize these benefits. Among these hurdles include making raw materials more accessible and affordable to the country's producers. Experts say that while it costs a typical cut-and-sew operation US$3,000 per employee to set up shop,  it costs nearly 66 times more (about US$200,000) to set up a typical textile or dyeing operation. Industry leaders are urging local businesses to work cooperatively to find solutions. ( Vietnam Net)

Vietnam will be getting some assistance from Japan in the promotion of its textile and garment industry ahead of the pending Trans-Pacific Partnership (TPP). The two countries finalized a new bilateral agreement in Hanoi on March 20 and also agreed to commence an industrial policy dialogue soon. ( 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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