Apparel Intelligence 34

Opinion

Zara, Uniqlo, & Skechers?are among the retailers facing fresh allegations of human rights abuses in Xinjiang and other parts of China in a new lawsuit filed by The European Uyghur Institute in Paris.

Adidas, H&M, Mango & several other brands?have committed to sourcing cowhide from deforestation-free supply chains by 2030, if not earlier. Deforestation is responsible for around 10% of global greenhouse gas emissions.

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By The Way

Vietnam's?intensely hot summer and unprecedented drought are straining energy supplies, prompting rolling blackouts and sudden power outages that have led to losses among local firms and foreign manufacturers.

Continued disruptive work actions?at the Seattle port led to containerized terminal operations coming to a halt, leading to workers being sent home. On another shift, the Union failed to dispatch longshore workers which effectively shut down the port.

6700 MSME businesses come to a standstill, 89,000 houses and huts were destroyed, 8600 cattle died, 475 boats owned by fishermen were ruined, about 100 trains were cancelled & cotton arrivals started reducing from around 25000 bales to 8000 bales a day, due to Cyclone Biparjoy that has struck India.

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What to Watch

Over 140 strikes at factories in China?have spiked as some factories closed or are struggling to pay wages or severance for laid-off workers. This is hurting consumer & business confidence just as it was recovering from 3 years of Covid-19 curbs.

Over 1,000 workers?of 5 state-run textile mills in Kerala, India, have been laid off due to the financial crunch, as they have not been able to pay off the pending salary or lay-off wages. This Industries department has not provided enough funds to procure cotton.

India has removed China?from a list of countries exempt from azo dye tests for imported textiles, as they are potentially harmful to health. This move by India's Directorate General of Foreign Trade might increase costs and delays for Indian importers.

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What Else Is Happening

H&M Group &?UNDP Bangladesh?signed an MoU that aims to empower all relevant stakeholders in the apparel industry of Bangladesh to drive climate action through a collaborative approach.

Bangladesh-Indonesia?are about to execute a PTA. Tipu Munshi emphasized the need for increased access to Bangladeshi products, such as readymade clothing, leather goods, & pharmaceuticals in the Indonesian market. This would help address the trade deficit & strengthen trade relations.