v     Sri Lanka's clothing exports are dramatically falling to the United States while surging to the European Union thanks to a 3-year duty-free access which is expected to expire at the end of 2008. The renewal of this so-called GSP-Plus provision is dependent on improvement of working conditions in a country confronted with civil war and 20% inflation. Apparel exporters are however developing a certification program aimed at proving ethical behaviour.

v     China's apparel exports are seriously slowing down this year, in line with a sharp drop in demand from the United States. A rising Yuan and higher raw material and labour costs are negatively affecting China's competitiveness. A surge in exports to Europe and a booming domestic market limited damages, although a new major textile restructuring is however in sight in China.

v     India's exports of spun yarns are showing a slight improvement over the last two months, after more or less declining since November-December 2007, while demand in the export market has improved, export prices remain under pressure. The rupee has depreciated almost 3% against the U.S. dollar since January, however making exports attractive once again.

v     Australia's cotton output will almost triple next year as farmers expand their fields, which have received beneficial rains. Production may soar to 1.50 million bales in the year ending September 2009, from 0.52 million bales in the year ending this September. Harvested area wills more than triple to 190,000 hectares.

v     A Russian apparel company is going to start recruiting workers from Bangladesh for its factory in the next two months. Skilled Bangladeshi textile workers are being hired to work in Russia, further evidence of Bangladesh's growing status as a world leader in garment expertise, said Abdul Matin Chowdhury, secretary to the Ministry of Expatriates' Welfare and Overseas Employment.

v     Cotton prices were last week stimulated by a new surge in crude oil prices, as speculation was again shifting from stock markets to commodities. Sales should now be suspended on the physical market, however, as spinners will not easily accept New York's new price above 70 cents. U.S. official data confirmed a slowdown in cotton consumption in 2007-08 and 2008-09 which could maintain prices at current levels over the long term.

v     China has made its export regime "considerably more restrictive" due in part to efforts to reduce its large trade surplus, said the World Trade Organisation in a review of the country's trade policies.

v     A variety of measures, including export taxes, reduced rebates of VAT on exports and export prohibitions, licensing and quotas, are used to restrain, if not prohibit, exports of a considerable and growing number of products, according to the WTO report.

v     The United States will not impose anti-dumping duties on apparel imports from Vietnam in the short term, the U.S. Department of Commerce officially announced. Unit prices of Vietnamese apparel monitored by the U.S. administration were not reduced. With labour and raw material costs surging in Vietnam, exporters warned they could, on the contrary, raise the prices even further.

v     The ready made garment (RMG) sector of the country will further expand to generate 1,80,000 new employment opportunities, provided the US grants Bangladeshi RMG products a duty free access through the passage of the New Partnership Development Act (NPDA), said First Vice President of BGMEA MA Salam.

v     India's textile exports may cross $40 billion in 2010-11, short of the government's stated target of $50 billion, weighed down by the rise in rupee over the past year, said  ShankerSinh Vaghela, Union Minister of Textiles.

v     Reflecting the current surge in crude oil futures, polyester raw material prices were higher in the last week  May 2008 in Asia with PTA and MEG both rising. The jump in paraxylene prices and the fall in PTA's production may result in higher PTA prices in the near term although demand from polyester makers is still depressed by textile crisis in China.

v     Stung by rupee appreciation, India's textile exports fell short of the targets by $4.5 billion in 2007-08, forcing the Textile Ministry to seek changes in the labour laws for enhancing competitiveness of exporters. Against the target of $25 billion, textile exports amounted to $20.5 billion in 2007-08, showing a growth of 9.4%, official data shows.

v     Thailand's apparel exports started declining in 2008 mainly due to a strong increase in the baht against both the US dollar and the Euro. Exporters try boosting sales to other markets but are still extremely dependent on the American and European buyers. The political situation is back to normal, however, while a free trade agreement with Japan may offer new prospects.

v     Unit prices of European clothing imports were mixed in the first three months of the year with significant increases observed for Vietnamese and Moroccan products. Bangladesh and Vietnam are still directly competing on the lower end of the market while India is opposed to Indonesia and Sri Lanka if considering averaged unit values. Morocco is now joining Tunisia and Turkey on the higher end of the European import market.

v     International yarn prices further rose in the past week on the cotton and polyester markets. Higher raw material costs are explaining the new increase in India and Pakistan. By contrast, viscose fiber prices continued falling, therefore pushing down yarn prices to lower levels.

v     Bangladesh garment manufacturers said they would distribute subsidised rice to thousands of lowest-paid workers to help them cope with sky-rocketing food prices. The announcement came after around 20,000 textile workers rioted in one of the main garment-making areas near the capital Dhaka, demanding relief from soaring rice prices and better pay.

v     U.S. imports of polyester filament fabrics surged from China in the last three years, even strongly rising in the first three months of 2008. E.U. anti-dumping tariffs may have diverted sales to the U.S. market to the detriment of Korean exports. Turkish suppliers successfully shifted to the higher end of the market.