Surat: The Textile Policy 2024 promises to be a game changer for the country’s largest man-made fiber (MMF) industry. The reason for this is that, for the first time, the Gujarat government has boosted the capital investment subsidy from 10% to 35% on new textile machines, while the interest subsidy has been increased to 8% for new textile companies establishing themselves in Gujarat. Textile businesses (garmenting and technical textile) developed in talukas classified under Category-3 will receive a maximum capital subsidy of Rs 50 crore. Textile enterprises developed in Category-3 talukas in the fields of weaving, knitting, and processing will be eligible for subsidies of up to Rs 40 crore. Weaving, knitting, processing, or spinning units created in Category 1 talukas will also be eligible for a maximum capital subsidy of Rs 50 crore. In the garmenting and technical textile sectors, the amount will rise to Rs 100 crore. Apart from that, PM Mitra Park has been granted the maximum benefits, similar to category one, whereas textile units established in PM Mitra Park would receive the maximum benefit. Spinning machines that produce yarn from fiber have also been included for the first time in Gujarat’s new Textile Policy- R0R4, following the SGCCI continous submission to the Gujarat government.
Many textile units in Surat were relocating to Navapur, Maharashtra, due to a lack of textile policy. The shifting of textile units in Surat would be curtailed following the announcement of the new textile policy. This program includes a number of incentive schemes for the garment industry, including capital, electricity, and interest subsidies, as well as payroll assessment, which is a very welcome initiative. As a result, the garment sector will expand dramatically throughout South Gujarat, including Surat. While the SGCCI has long advocated for particular incentives in the garment sector, the new textile policy has maximized benefits for the garment sector, benefiting the majority of the textile business in South Gujarat.
The Blunt Times interviewed several of the textile industry’s leading figures.
Kamalvijay Tulsian, President of the Pandesara Industries Association (PIA): Gujarat’s new textile strategy will help the MMF industry. Surat Textile Industrialists received a desired Diwali gift thanks to the collaborative efforts of Chief Minister Bhupendrabhai Patel, State BJP President CR Patil, Industries Minister Balwantsinh Rajput, and Minister of State for Industries Harshabhai Sanghvi. The Gujarat government provides a capital investment subsidy ranging from 10% to 35% on new textile machinery, while the interest subsidy for new textile businesses has been extended to 7-8%.Aside from that, a Rs.1 per unit subsidy is acceptable in the power rate system. Due to this decision, industrial units from Surat that were relocating to Navapur in Maharashtra would remain in Surat.
Mayur Golwala, secretary of the Sachin Industrial Society: For the first time, the Gujarat government has included the weaving industry in its new textile strategy. The Gujarat government has declared that it will grant capital investment subsidies in various categories to individuals who invest in Gujarat’s textile industry. In addition to the one rupee per unit subsidy for power tariffs, interest subsidies have been maintained. This will have a significant impact on the textile industry. The announcement of this regulation will prevent the textile sector from moving to Navapur in Maharashtra. However, I urge the administration to rapidly implement this policy. According to my information, hundreds of textile policy files have been accepted and are pending implementation in the local DIC, and recipients should receive their benefits as soon as possible. As a result, it is critical to undertake efforts to accelerate the execution of the Gujarat government’s industrial policies.In addition, the five-year time limit of the Gujarat Textile Policy, which expired on December 31, 2023, and the nine-month blackout period must be defined.
Ashish Gujarati, leader of the textile industry: It is a good and reasonable policy. This policy will recover anything from 25% to 40% of your machine’s cost. This will assist both the MSMEs and the large-scale industries. Migration of textile industry to other states would reduce.
Vijay Mewawala, President of the Southern Gujarat Chamber of Commerce and Industry: The state’s new textile policy had been avidly anticipated for some time, and the SGCCI was working tirelessly to bring it to fruition. The chamber demanded that an upfront capital subsidy be included in the state’s new textile strategy, as the TUF subsidy on textiles was eliminated. The state’s new textile policy includes an increase in upfront capital subsidies from 10% to 35% in response to the SGCCI’s demand. In addition, interest subsidies ranging from five to seven percent will be offered for a minimum of five years and a maximum of eight years. In addition, a one rupee power subsidy has been provided. Even if textile industrialists acquire power from discoms and have unfettered access, they will receive a one-rupee subsidy per unit.
Nikhil Madrasi, VP of the SGCCI: The textile industry contributes significantly to the economic development and employment sectors of South Gujarat, particularly Surat. In such conditions, the release of the new textile policy will cause Surat, which is known as the hub of MMF fabric, to also become the center of MMF clothes. Overall, the state’s new textile policy applies to the whole textile industry. Textile units that manufacture yarn from polyester staple fiber and viscose staple fiber have also received incentives, particularly in MMF spinning, which has long been a Chamber of Commerce demand. While spinning was not included in the previous textile policy of 2019, the SGCCI attempted to provide benefits to MMF, which is stated in the current textile policy.
Source: Blunt Times
Quality Control Orders (QCOs) that restrict the import and sale of substandard items in the country have been extended to 732 products to align with international standards and boost exports, Commerce Minister Piyush Goyal said on Wednesday. QCOs are a key mechanism through which India is not only raising quality standards to enter the global value chain but is also restricting imports from China. Imports from China have already crossed $60 billion during the first seven months of 2024, which is 10 per cent higher than the $55 billion recorded during the same period last year. Speaking at the annual symposium of the Indian Foundation of Quality Management, Goyal stated that, until 2014, there were only 14 QCOs covering 106 products. However, in the past 10 years, the government has issued 174 such orders, now covering 732 products. “Our export competitiveness is not going to come from subsidies or government support. It will not come from closing our doors to the rest of the world. If we are aiming for a selfreliant India, it can only happen when India is self-confident, and that confidence will only come when we all accept that quality is not just our responsibility, it is our duty,” the minister said. “We still have a lot of work to do in terms of getting industry aligned with these QCOs,” he added, noting that India was unable to become a partner in a pharma sector protocol as “every time we try to join that protocol, which has certain strict conditions attached to it, there is opposition from those (industries) who are looking for shortcuts.” Under the order, an item cannot be produced, sold, traded, imported, or stocked unless it bears the Bureau of Indian Standards (BIS) mark. Trade experts say that the BIS is selective when it comes to approving items, particularly from certain geographies. Notably, violations of the provisions of the BIS Act can attract imprisonment of up to two years or a fine of at least Rs 2 lakh for the first offence. In the case of second and subsequent offences, the fine will increase to a minimum of Rs 5 lakh and may extend to up to 10 times the value of the goods or articles. QCOs are issued in accordance with the WTO Agreement on Technical Barriers to Trade. Goyal also remarked that manufacturing high-quality goods helps boost economic activity, generates jobs, and increases exports.
Source: Indian Express
A MARGINAL increase in exports, driven by textiles, engineering and electronic goods that compensated for lower petroleum exports, alongside a sharp decline in gold imports, helped India’s goods trade deficit ease to a five-month low of $21 billion in September, compared to a ten-month high of $30 billion in August, official data released on Wednesday showed. Amid several geopolitical challenges, India’s exports managed to register a slight increase in September, reaching $35 billion compared to $34 billion last September. A consistent rise in engineering goods exports to Russia and Europe, where military spending is increasing, and export of electronic items such as mobile phones to the US, added to total exports. In a sharp reversal of trends, India’s textile exports recorded a 17 per cent surge in September, as garment orders began shifting partially to India from conflict-hit Bangladesh. Over the last two years, garment and textile exports have struggled due to a slowdown in demand from the West. India’s chief export promotion body, the Federation of Indian Export Organisations (FIEO), said that ongoing international trade disruptions, along with volatility in crude and metal prices, have played a key role in reducing the value of exports. “Rising tensions between Israel and Iran have led to logistical challenges impacting international trade, as much of our trade with Europe, Africa, CIS, and the Gulf region passes through the Red Sea or the Gulf,” FIEO President Ashwani Kumar said. Kumar noted that trade finance remains a significant challenge for MSMEs, as it affects the competitiveness of Indian products in global markets. During a press briefing, Commerce Secretary Sunil Barthwal said that, despite the challenges, India’s exports in September remained positive. While engineering exports, which contribute to nearly a quarter of total exports, jumped 10 per cent in September, electronic exports rose 9 per cent. “We are working with the shipping ministry to assess the situation in West Asia and are engaging to increase Indian shipping capacity to prevent the negative impact of the conflict on Indian exports,” Barthwal said The World Trade Organisation (WTO) had earlier this month reduced its growth forecast for the volume of global merchandise trade in 2025 to 3 per cent, down from 3.3 per cent, amid the escalating conflict in West Asia, which has blocked the crucial Red Sea shipping route for nearly a year. This follows a significant escalation of the year-long conflict in West Asia earlier this month, when Israel shifted its focus to Hezbollah, an Iran-backed militant group, by launching a military operation in Lebanon. This came after dramatic explosions involving pagers and walkie-talkies targeted Hezbollah members, as well as the assassination of its leader, Hassan Nasrallah. The trade body warned that an intensification of the conflict in West Asia could have adverse consequences for global and regional trade flows, with effects also being felt in other regions. These may include “further disruptions” to shipping and rising energy prices due to higher risk premiums. Official data showed that gold imports fell by 60 per cent, from $10 billion in August to $4 billion in September, bringing overall goods imports to $55 billion. FIEO Director General & CEO Ajay Sahai said traders often place orders in advance to prepare for the festive season, which could explain the bump in August. Sahai said India’s declining petroleum exports could be a concern going forward, as petroleum exports in September dropped by a significant 26 per cent. “Prices have remained low despite the ongoing war in West Asia, as global fuel demand has been weak. This could be a concern for Indian exports in the future. The prices affecting India’s refined petroleum exports declined further after Israel stated it would not target Iran’s nuclear or oil sites,” Sahai said. Engineering Export Promotion Council Chairman Arun Kumar Garodia said that engineering goods exports in the April-September 2024-25 period registered a growth of 5.3 per cent over the same period last year and have emerged as the primary drivers of overall shipments. “Some engineering goods segments, such as industrial machinery and auto & auto components, have performed well so far in this fiscal year, but the metal sector’s performance has been below par due to pricing issues and logistics costs. Protectionist policies adopted by some countries have also affected metal exports from India,” Garodia said. The Commerce and Industry Ministry, in a statement, said India’s top five export destinations in terms of growth in value in September 2024 compared to September 2023 were the Netherlands, the UAE, the US, Brazil, and Japan and the top five import sources, showing growth in value, were the UAE, China, Germany, Japan, and Taiwan.
Source: Indian Express
Amid a widening trade deficit with the Association of Southeast Asian Nations (ASEAN), a senior government official said on Wednesday that India is facing tariff asymmetry in the ASEAN agreement and is aiming to complete the review by next year. The review of the India-ASEAN trade deal was mentioned in Prime Minister Narendra Modi’s 10-point plan to enhance cooperation between the two regions during the ongoing 21st ASEAN-India Summit. Rajesh Agrawal, Additional Secretary in the Department of Commerce, said during a press briefing that India has strongly urged the completion of the review of the free trade agreement in goods by 2025. The review is important, as India faces tariff asymmetry in the agreement, with a blanket “74 per cent plus” tariff elimination for ASEAN nations, he said. “We have higher tariff elimination from lower-order economies and lower tariff elimination from fast-growing and major economies. This tariff asymmetry needs to be addressed to ensure a balanced FTA during the review process,” Agrawal explained. India is also exploring a country-wise approach in the ASEAN review talks. “ASEAN is a 10-country bloc, but not a customs union. We’d like to see differentiation, as they are at various stages of economic development,” he said, emphasising that bilateral talks could offer India more flexibility in negotiating tariff concessions. However, ASEAN typically follows a single set of concessions, which India is attempting to adjust. The India-ASEAN trade deal was signed in 2009 during the UPA era and has become an important source of input materials for Indian industry. While palm oil and natural gas are sourced from Indonesia and Malaysia, items like natural rubber come from Thailand. However, Indian industry has begun calling for anti-subsidy measures against industrial imports from ASEAN, on the grounds that Chinese products are being rerouted through the region to claim benefits under the India-ASEAN trade deal. Moreover, the trade deficit between the two regions is rapidly rising, especially after the pandemic. Fears of a fresh surge in imports have also emerged as ASEAN has joined the China-led Regional Comprehensive Economic Partnership (RCEP) trade deal. India exited the RCEP negotiations in 2019 due to concerns over rising imports from China. Notably, China ASEAN trade is on the rise, with trade between the two regions growing by 15 per cent in 2022 after the deal came into effect. A senior government official from the Ministry of Commerce and Industry had earlier stated that the review process is “moving slowly,” even as India pushes for revisions, as the deal is seen to disproportionately benefit ASEAN over India. The two sides agreed to initiate a review during the 16th ASEAN-India Economic Ministers Meeting (AIEMM) in September 2019. However, it took three years to barely agree on the scope of the review at the 19th AIEMM in September 2022. This is concerning, as India’s trade deficit with ASEAN has risen to $44 billion in FY23, compared to $8 billion in FY13. An Indian Economic Service research paper on India’s trade patterns with the 10 ASEAN nations between 1991 and 2020 highlights that while imports have grown, exports have declined since 2010, resulting in increasing trade deficits with all ASEAN countries. The report suggests that India’s experience with ASEAN may have influenced its decision to opt out of the China-led RCEP agreement, despite nearly a decade of negotiations. ASEAN countries include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The review is a long-standing request of Indian industry, with India seeking an upgraded agreement to eliminate trade barriers and prevent the misuse of the trade pact, which was signed in 2009. ASEAN remains a crucial trading partner for India, accounting for about 11 per cent of India’s global trade. India’s exports to ASEAN totalled $41.2 billion in 2023-24, while imports stood at $80 billion.
Source: Indian Express
The Centre aims to promote methanol as a green fuel, and based on initial discussions, it anticipates multiple methanol plants to be established over the next five years, Niti Aayog member VK Saraswat said on Wednesday.
“We hope that as part of the coal gasification mission, there will be at least a couple of plants manufacturing coal-to-methanol in the next five to seven years. We are also collaborating with public and private industry to set up bamboo-to-methanol plants to produce green methanol, which will then be utilised for both domestic and export purposes,” Saraswat said. The Centre is developing a regulatory framework for methanol production and usage based on global standards, he added.
Saraswat was speaking to reporters ahead of the second International Methanol Seminar and Expo in New Delhi, which begins on Thursday. This seminar, held after eight years, aims to highlight progress in the methanol economy since the first edition.
“Key Indian industries like Kirloskar, Ashok Leyland, Volvo Penta, FCTecNrgy, Wesman Thermal Process, Metfuel, Thermax, BHEL, NTPC, and Defence labs like NMRL have developed 100 per cent methanol buses, trucks, light commercial vehicles (LCVs), gensets, fuel cell and reformed-based energy applications, boilers, gas turbines, and other cutting-edge applications. The full range of products and technologies will be showcased at the Expo,” the Aayog stated in a press release.
India currently produces 0.8 million tonnes of methanol annually against a demand of 4 million tonnes. The government policy think tank expects this demand to rise to 10-15 million tonnes by 2030, which will necessitate a strong push to boost domestic production. Methanol, in addition to being a transportation fuel, is used in chemical production, petrochemicals, and pharmaceuticals. The Aayog projects a 35 per cent reduction in carbon emissions with large-scale methanol adoption. The government has also been working to replace diesel-consuming ships on inland waterways—about 50 vessels a day—with methanol-powered alternatives. Methanol, in addition to being a transportation fuel, is used in chemical production, petrochemicals, and pharmaceuticals. The Aayog projects a 35 per cent reduction in carbon emissions with large-scale methanol adoption.
Source: Business Standard
Synopsis India's trade deficit widened to $20.78 billion on an annual basis in September from $20.08 billion in the same month last year, data from the Commerce Ministry showed on Wednesday. India's trade deficit widened to $20.78 billion on an annual basis in September from $20.08 billion in the same month last year, data from the Commerce Ministry showed on Wednesday. As per a Reuters poll, the economists had expected the country's September data to be $25 billion. India's merchandise trade deficit widened to a ten-month high of $29.65 billion in August India's merchandise exports in September stood at $34.58 billion, while imports were $55.36 billion, government data showed. In the previous month, merchandise exports were $34.71 billion, while imports stood at $64.36 billion. In September, services exports were an estimated $30.61 billion, while imports were $16.32 billion. In August, services exports were $30.69 billion and imports were $15.70 billion.
Source: Economic Times
Synopsis A group of ministers decided not to extend the GST compensation cess to new items until determining its future post-March 2026. The panel, led by Union minister Pankaj Chaudhary, will reconvene in November to deliberate on whether to continue the cess beyond repaying state-assisting loans or subsume it into the highest tax bracket. The 10-member group of ministers (GoM) on compensation cess decided in its first meeting on Wednesday not to extend the levy to any new item until a final call on its future is taken, said people with knowledge of the matter. The panel, headed by Union minister of state for finance Pankaj Chaudhary, is tasked with deciding on the future of compensation cess levied on sin goods under the goods and services tax (GST) regime beyond March 2026. The GoM will meet again in November second week to hear members' views on the future of the cess. "It was just an introductory meeting with general discussion, and a detailed agenda will be set and discussed in the next meeting," said one of the persons, who did not wish to be identified. Compensation cess, imposed on products in the 28% slab, was introduced after the 2017 rollout of GST to cover any shortfall in states' revenue due to the switchover to the new regime for five years. The panel will consider whether the ongoing compensation cess should continue after repayment of the back-to-back loans taken to assist the states or whether it should be subsumed into the highest tax bracket. It will also decide on what to do with the excessive cess collections expected after the repayment of these loans and their associated interest
Source: Economic Times
India is hoping that free trade agreement (FTA) negotiations with the United Kingdom (UK) will restart in November, a senior government official said on Monday. It expects the UK to come forward for the next round of negotiations, after the Budget presentation later this month. “There is a Budget presentation in the UK on October 30… Negotiations should start in November,” the official said on Wednesday. Officials in the UK are also briefing their new ministers about the proposed FTA. A formal announcement of the restart of FTA talks is yet to be made. India and the UK have been negotiating.
Source: Business Standard
Synopsis India is expediting FTA talks with Australia, aiming for a comprehensive economic cooperation agreement before Australia's 2024 elections. Current bilateral trade is around USD 24 billion. India is also pushing for a balanced review of its FTA with ASEAN, addressing tariff asymmetries by 2025. India is looking at expediting the free trade agreement talks with Australia in the next two months to bridge differences on the sensitive issues and close the negotiations, a senior government official said on Wednesday. "Otherwise Australia goes for election next year, maybe the (talks for the) agreement will go beyond that depending on the work, we are able to do in these two months," Additional Secretary in the Department of Commerce Rajesh Agrawal told reporters here. The eleventh round of negotiations are expected to be held next month. The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) came into effect from December 2022. Now both the sides are negotiating to widen the scope of ECTA through a comprehensive economic cooperation agreement (CECA). The utilisation of the trade agreement so far is more than 80 per cent, which means that businesses of both the countries are benefitting out of this, he said. "They have guided the officials to see in case the CECA can be expedited if possible. There are sensitivities on both sides, and we will be engaging with each other over the next two months to see that those sensitivities can be brought down and can be reduced until we can achieve a closure," Agrawal added. Australia is an important trading partner of India in the Oceania region, with merchandise trade between India and Australia reaching around USD 24 billion in 2023-24. India's exports to Australia last fiscal stood at USD 7.94 billion, while imports were USD 16.15 billion. The trade between the two countries has been hovering at around USD 25 billion since 2021-22. On India-Asean (Association of South East Asian Nations) review of free trade agreement in goods, Agrawal said that India has pitched strongly to complete the exercise by 2025. The review assumes significance as India is facing tariff asymmetry in the agreement wherein it has given out blanket "74 per cent plus" tariff elimination for all the Asean countries. "But we have got higher tariff elimination from low order economies and low tariff elimination from fast growing and big economies. This tariff asymmetry needs to be addressed so that it is a balanced FTA in the review process," he added. India is also discussing with the bloc to undertake the review talks country wise. "Asean is a 10-country block but they are not a customs union. We would like to see a certain amount of differentiation because all of them are at different levels of economic development," he said. Talking bilaterally, he said, will give India "a latitude to have a better fit" of the tariff concessions. But as a practice, Asean does not follow this and they like to have a single set of concessions. "We are trying to discuss it and trying to see what flexibility we can build in the review so that asymmetries can be ironed out," he added. ASEAN countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The review of the agreement is a long-standing demand of Indian industry and India is looking forward to an upgraded pact. India is asking for a review of the agreement to eliminate barriers and misuse of the trade pact. The pact was signed in 2009. ASEAN is an important trade partner of India with about 11 per cent share in India's global trade. India's exports to the 10-nation bloc ASEAN were USD 41.2 billion in 2023-24, while imports aggregated at USD 80 billion in the last fiscal. ASEAN accounts for 10.9 per cent of India's global trade.
Source: Economic Times
Synopsis China is now India's top import source with USD 56.29 billion in shipments from April to September this fiscal. The US is the leading export destination, with goods worth USD 40.38 billion. Imports from Russia, the UAE, and other countries also increased. The US remains India's largest trading partner, followed by China. China has emerged as India's top import source with USD 56.29 billion worth of inbound shipments during the April-September period of this fiscal, according to the commerce ministry data. During the period, the US emerged as the top export destination for the country with outbound shipments increasing by 5.62 per cent to USD 40.38 billion. The imports from China rose by 11.5 per cent during the first half of this fiscal. The imports stood at USD 50.48 billion during April-September 2023. During the period, the top 10 import sources of India were China, Russia, the UAE, the US, Iraq, Saudi Arabia, Indonesia, Korea, Switzerland and Singapore, the data showed. Imports from Russia rose to USD 32.18 billion during April-September this fiscal from USD 30.43 billion a year ago. Similarly, the inbound shipments from the UAE rose to USD 31.46 billion from USD 20.70 billion in the first half of the last fiscal. the UAE, the Netherlands, the UK, China, Singapore, Saudi Arabia, Bangladesh, Germany and South Africa. Exports to the UAE rose from USD 15.47 billion during April-September 2023 to USD 17.24 billion during April-September this fiscal. Similarly, outbound shipments to China increased to USD 6.91 billion from USD 7.63 billion in the first half of the last fiscal. In 2023-24, the US was India's largest trading partner, followed by China. China was India's top trading partner from 2013-14 till 2017-18 and in 2020- 21. Before China, the UAE was the country's largest trading partner. The US was also the largest partner in 2021-22 and 2022-23.
Source: Economic Times
September data indicated a fractional downturn in business activity across Germany’s overseas markets after a marginal expansion in exports during the previous month, according to Hamburg Commercial Bank (HCOB) purchasing managers’ index (PMI) data. The headline HCOB Germany manufacturing PMI export conditions index posted 49.8 in September, down from 50.7 in August and the lowest reading since January. All three main global regions registered a loss of momentum in September. North America (52.7) remained the fastest-growing, despite the rate of expansion easing to a five-month low in September. Moreover, on a trade-weighted basis, output growth in Asia (51.1) increased at the weakest pace since October 2023. This was largely due to a slowdown in private sector activity growth across China. Meanwhile, lacklustre export demand persisted in Europe (48.6), with this index in contraction territory for the fourth consecutive month. Renewed declines in private sector output in France and Italy more than offset pockets of growth in Spain, the United Kingdom and Ireland. German manufacturers signalled a steep and accelerated decline in their volumes of new work from abroad in September. At 39.7, down from 40.8 in August, the seasonally adjusted HCOB Germany manufacturing PMI new export orders index was below the 50 no-change mark for the thirty-first month in a row. Moreover, the rate of contraction was the fastest since October 2023. Survey respondents widely linked falling export sales to weak global demand for manufactured goods, as well as challenging market conditions, a release from S&P Global said. There were also reports that heightened geopolitical uncertainty had led to delayed decision-making among clients, especially on major capital spending projects. Where growth was reported, firms mostly noted rising demand from US clients. This contrasted with relatively weak spending patterns across Europe and Asia. While the latest decline in new orders from abroad partly reflected an unfavourable global economic backdrop, the downturn in exports across Germany's manufacturing sector continued to exceed the worldwide trend by a wide margin. In fact, the rate of decline in new export orders was the second-fastest of the 29 economies monitored by PMI surveys in September, exceeded only by Austria.
Source: Fibre2fashion
The United Kingdom (UK) on Monday resumed the negotiations with Switzerland on an enhanced and upgraded free trade agreement (FTA). Switzerland is the UK’s 10th largest trading partner and 7th largest export market, as the total trade between both the countries reached £51 billion (~$67.8 billion) in 2023. The talks, the first to take place under this government, provide a chance to further strengthen the trading relationship, drive economic growth and create jobs across the UK, according to a press release by the government of UK. The UK and Switzerland are both leading service-based economies, with services trade accounting for nearly £30 billion (~$39.24 billion) of UK-Swiss trade, despite the existing trade agreement focusing mostly on goods. A modern deal could support jobs in all UK nations and regions, including 130,000 services jobs supported by exports to Switzerland, and provide much needed long-term certainty on travel arrangements for UK firms. Negotiations resumed as the UK government welcomed global investors to the international investment summit in London. The summit will make clear that the UK is ‘open for business’ as the government resets relations with trading partners around the globe, as per the press release. The upgraded UK-Switzerland FTA will include detailed commitments on services and investment for the first time, providing both the countries’ businesses with guaranteed access to one another’s markets to encourage investment and services trade in both directions.
Source: Fibre2fashion
VOV.VN - Two-way trade between Vietnam and the US surpassed the US$100 billion mark in the first nine months of the year, with the US remaining as the largest market for Vietnamese goods. The latest report compiled by the Ministry of Industry and Trade (MoIT) indicates that during the nine-month period, the United States represented the largest export market for Vietnamese goods with an estimated turnover of US$89.4 billion, thereby accounting for 29.8% of the country's total export turnover and soaring by 27.4% over the same period from last year. The Ministry assessed that the US market is showing signs of stimulating consumption once again, expanding the import and export needs of businesses. Due to this, the demand for wooden products, seafood, and garments and textiles is witnessing a solid upswing. Regarding imports, the US is also one of the nation’s largest import markets with a turnover of US$10.9 billion after nine months, an increase of 6.2%. Thus, after nine months, two-way trade has officially surpassed the US$100 billion mark to hit US$100.3 billion. According to details given by the Vietnam Trade Office in the US, there are many reasons for the continuous growth of trade between the two countries in recent times, even amid many fluctuations in the global situation. First of all, the relationship between both sides is growing steadily. In 2013, the two nations established a Comprehensive Partnership. In 2023 they officially upgraded it to a Comprehensive Strategic Partnership. Furthermore, Vietnamese goods are increasingly popular in the US market due to their continuously improved quality, updated trends, and competitive prices. On the other hand, changes in the supply chain, as well as the wave of investment shifts, have contributed to enhancing the production capacity of Vietnamese enterprises. This simultaneously creates opportunities and room for Vietnamese goods to increase exports to the world in general and the US market in particular.
According to Dr. Nguyen Minh Phong, an economic expert, moving forward exports to the US will continue to recover and grow amid growing market demand and falling inventories. The biggest concern regarding exports to the US is the country's increasing application of trade defence measures on imported goods.
To limit the risk of being investigated and facing defence measures, Vietnamese enterprises need to increase their understanding of the law on trade defence regulations, create added value on exported products, and store export data to co-operate with the investigation agency when an incident occurs. According to the General Department of Customs, joint trade reached the US$100 billion mark for the first time in 2021, reaching a figure of US$111.55 billion. Of which, Vietnamese exports stood at US$96.27 billion, and imports hit US$15.28 billion. In 2022, despite facing plenty of difficulties due to the impact of the COVID-19 pandemic, joint trade still recorded remarkable growth with a turnover of nearly US$124 billion. Last year’s total import-export turnover between the two countries reached nearly US$111 billion.
Source: Vov
