WORLD NEWS 31

BULETIN TEKSTIL.COM

BANGLADESH

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and H&M Group have signed a memorandum of understanding (MOU) to collaborate on a circular and neutral clothing industry in Bangladesh.

The CEO of H&M Group met with Bangladesh Prime Minister Sheikh Hasina, who was accompanied by the Minister of State for the Ministry of Foreign Affairs of Bangladesh, to discuss efforts to transform the circular garment industry and promote the development of the renewable energy market for the garment industry.

With State Minister Shahriar Alam, the meeting also reviewed reform efforts to boost Bangladesh’s competitive position as a source of garment manufacturing, as well as issues concerning the rules and regulations of several Bangladeshi garment export destination nations.

Bangladesh has been a key supplier of H&M garment items since the H&M Group’s 1982 relationship with a Bangladeshi garment manufacturer. H&M Group’s 500-person local team in Dhaka will continue to maintain a sustainability engagement with Bangladesh Garment stakeholders.

A meeting was also held between H&M Group CEO Helmersson and BGMEA President Faruque Hassan to discuss cooperation in encouraging a circular and environmentally sustainable garment industry. During this meeting, an MOU was signed between H&M Group and BGMEA to take steps toward strengthening their partnership.

Cooperation that leverages each party’s capabilities is projected to mainstream circularity and decarbonization throughout Bangladesh’s grain producing activities. H&M believes that the secret to this accomplishment is a solid cooperation combined with a clear industrial policy from the government.

UNITED STATES OF AMERICA

On May 27, 2023, the Indo Pacific Economic Forum (IPEF) Ministerial Meeting was held in Detroit, Michigan to explore boosting international supply chains. Ministers from 14 partner nations attended the summit, including Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Vietnam. The meeting’s key themes of discussion included: supply chain resilience, efficiency, productivity, sustainability, transparency, diversity, security, and supply chain inclusion.

Partner nations are expected to attempt the following in this supply chain agreement:

1. offer a framework for developing their collective awareness of critical supply chain risks, supported by each partner’s own identification and monitoring of key industries and key items;
2. strengthen supply chain disruption coordination and crisis response, and collaborate to ensure timely delivery of impacted commodities during crises
3. ensuring that workers and companies, particularly micro, small, and medium enterprises, benefit together in IPEF partner economies;
4. improve business preparation in IPEF partner economies for identifying, managing, and resolving supply chain bottlenecks, particularly through enhancing supply chain logistics and infrastructure;
5. facilitation of collaboration, mobilization of investment, and promotion of regulatory openness in industrys and goods critical to national security, public health and safety, or the prevention of major or widespread economic disruption;
6. Respect, promote, and realize labor rights in IPEF partners’ supply chains in good faith, recognizing the critical role workers play in achieving greater supply chain resilience; ensuring the availability of sufficient numbers of skilled workers in essential industrys and key goods, including by upgrading and retraining workers, promoting inclusivity and equal access, and increasing the comparability of skills credentialing frameworks;
7. discover possibilities for technical support and capacity building in enhancing IPEF partners’ supply chains; and follow market principles, such as minimizing market distortions such as needless restrictions and trade barriers, and protecting sensitive company information.

To support this collaboration, it was proposed to form three Supply Chain Bodies. Partner nations acknowledged their commitment in all pillars, including clean economy, fair economy, supply chain, and trade, with the exception of India, which is not included in this trade pillar.

ITALY

Experts in the European textile industry believe that investment in digitization and technology by all stakeholders is critical for shifting the direction of this industry’s progress in the future. Euratex hosted a meeting in Milan in June to address the relationship between innovation, sustainability, and future textile industry participants in this context.

They discussed critical concerns involving the establishment of new competitive textile industry firms for the future, subscribing to the concept of industry 5.0, with Sistema Moda Italia (SMI) as the host. The European Commission established industry 5.0 in 2021, with the primary focus on worker welfare and the utilization of new technology to propel the textile industry ahead.

Keynote speakers Francesco Pinto (Chairman of Yamamay) and Claudio Cavacini (Director of Salesforce) discussed how digital transformation is affecting retail firms and how they must adapt to remain competitive.

In addition, a panel of textile machine makers discussed how their firms might aid in this shift by providing cutting-edge technology. They all agreed that making the necessary investments would need a collaborative effort from all stakeholders along the textile value chain, as well as public backing.

President Euratex stressed that we are prepared to confront new difficulties in the future, noting that the transition to textile 5.0 can only be completed if all stakeholders commit to supporting it, from policymaking to the display window for textile items being marketed.

It was said that the conference provided an opportunity to evaluate the EU’s newly established transitional pathway for the Textile Ecosystem, which is envisaged to be a road for the cooperation of all players in the European TPT industry. It is envisaged that this European Union effort would be followed by a legislative proposal from the EU that will foster a collaborative creative approach to strengthen the European textile industry.

Players in the European textile industry are warmly welcomed. The European Commission established the Textile transformation Pathway in early June 2023, calling it a beneficial roadmap to enable the successful green transformation and digitisation of the TPT industry.

HAITI

A group of American textile and retail organizations urged the US Congress to immediately update or extend the provisions of the Haitian Hemispheric Opportunity Through Partnership Encouragement (HOPE) AND the Haiti Economic Lift Program (HELP) in order to keep apparel factories open.

America Apparel and Footwear Association (AAFA), United States Fashion Industry Association (USFIA), National Retail Federation (NRF), Outdoor Industry Association (OIA), and Retail Industry Leaders Association (RILA) joined in submitting the call, urging that HOPE and HELP be extended immediately before their validity period expires in 2025. These two trade preference agreements govern duty-free access for Haitian garments to the United States, with the goal of expanding Haiti’s apparel manufacturing industry.

According to US International Trade Commission data, garment imports from Haiti climbed by 2.1% to US$866.7 million, while those covered under the HOPE/HLE framework increased by 7.9% to US$577 million. The group that issued the request believed that Haiti would become the nearest adjacent country to become a supply of clothing for the United States.

The letter to Congress argues that they represent US firms investing in the garment industry that demand dependable business certainty and ask Congress to amend the statute for at least the next 10 years. A HOPE/HELP extension will decide whether or not US producers and purchasers will continue to invest in Haiti.

The HOPE/HELP clauses have served as the foundation for investment in Haiti’s garment industry, and their expiration might create commercial uncertainty for US clothes producers and retailers. Furthermore, these businesses believe that, despite the many hurdles in Haiti, the HOPE/HELP initiative has facilitated the fast expansion of Haiti’s garment industry in recent years.

According to reports, the US administration firmly supports the renewal of the HOPE/HELP program and has recommended that the US Congress take appropriate action. It was highlighted that at this critical juncture, it is vital for Haitian manufacturers and investors, as well as those who do business with these manufacturers and garment workers, to have clarity about the continuance of the HOPE/HELP program

(Red B-Teks/Indra I)

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