Project to build a new textile waste value chain in India

US apparel industry applauds passage of Uyghur Forced Labor bill

US brands and retailers have welcomed Congressional passage of the Uyghur Forced Labor Prevention Act.

In a joint statement, the American Apparel & Footwear Association (AAFA), National Retail Federation (NRF), the Retail Industry Leaders Association (RILA), the United States Fashion Industry Association (USFIA), and NAFTZ, the voice of the US Foreign-Trade Zones programme, said Congressional passage of the Uyghur Forced Labor Prevention Act is a “key component of a broad global strategy, and our shared goal, to end forced labour”.

The bill was passed by Congress yesterday (16 December) and is now on its way to the White House to be signed into law. It will all but ban imports connected at any point in the supply chain to China’s Xinjiang Uyghur Autonomous Region (XUAR). It poses a challenge for importers of goods from anywhere in the world that may use inputs made in this region, according to international trade law firm Sandler, Travis & Rosenberg (ST&R).

The firm explains the Act requires US Customs and Border Protection (CBP) to presume that all goods manufactured wholly or in part in the XUAR are made with forced labour and therefore prohibited from entry into the US.

ST&R adds this presumption can be overcome if (1) the importer provides “clear and convincing evidence” to CBP that the goods were not made with forced labour and (2) the importer has fully complied with due diligence guidance and regulations to be issued by the US government and responded to all related CBP inquiries.

The ACT initiative halts Myanmar engagement

Members of the ACT initiative, which campaigns for living wages for workers, have moved to cease action in Myanmar on the back of troubles experienced by local trade unions as a result of the military coup in the country. ACT published the decision on 15 December, adding Myanmar has been one of its priority countries since 2018.

“In December 2021, members took the difficult decision to cease ACT’s operations in Myanmar,” the statement read. “This is a consequence of the withdrawal of IndustriAll’s local trade union affiliate IWFM from the ACT operations, because they are no longer able to operate freely under the current circumstances. ACT will evaluate its potential future engagement if the situation in the country changes.”

On 1 February 2021, the Myanmar military (Tatmadaw) staged a coup d’etat hours before a parliamentary session to pre-empt the swearing-in of cabinet members. Dozens of elected leaders from the National League for Democracy (NLD) were detained by the military, including former president Win Myint and former state counsellor Aung San Suu Kyi.

UK clothing sales surpass pre-pandemic levels for first time

The latest data released by the Office for National Statistics (ONS) shows UK clothing store sales volumes in November were above pre-Coronavirus levels for the first time. Clothing stores reported an increase of 2.9% month-on-month to surpass their pre-Coronavirus level, with sales volumes 3.2% above levels in February last year.

Overall UK retail sales volumes rose by 1.4% month-on-month in November

and were 7.2% higher than their pre-pandemic levels.

Meanwhile, online spending values rose in November by 0.1% when compared with the month prior. Despite this small increase, the proportion of online sales fell to 26.9% in November from 27.3% in October. This is a continuation of a falling trend since its peak in February (36.8%).

While this is the lowest proportion of online retail spending since March 2020 (22.6%), it remains far higher than the proportion of online retail spending in February 2020, before the pandemic, which was 19.7%.

French Connection sold in GBP29m deal and founder steps down

French Connection has been acquired by a consortium, including its second-largest shareholder in a GBP29m (US$39.5m) deal.

French Connection accepted a deal of 30p per share from Apinder Singh Ghura and Amarjit Singh Grewal, as well as holding company KJR Brothers Ltd. The deal sees founder Stephen Marks step down from his role as chairman of the company.

Marks said: “Over the last five years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the French Connection Group to profitability. It was always our intention to look at the most appropriate ownership structure for the business once it was back on track, and, having conducted a formal sale process, the French Connection Board has concluded that the offer being made by MIP is fair and reasonable.

“When the transaction closes, I will retire from French Connection. This is an appropriate time for me to step back from the business that I founded in 1972, and I would like to take this opportunity to thank all our people for their contribution to our achievements over the years. I wish them all every success in the future.”