textiles

Pakistan is preparing a new Strategic Trade Policy (STP) for 2026-31 to address structural weaknesses and improve export performance. Previous STPs (2015-20 and 2021-26) failed to meet export targets due to weak governance, lack of diversification, and unresolved industrial bottlenecks. The article emphasizes the need for governance reforms, realistic target-setting, and addressing issues like overvalued currency and high energy costs.

Brazil's coffee, beef, iron ore, aircraft parts, and pharmaceutical inputs are excluded from the US 25% tariff on manufactured goods, protecting key export sectors. However, footwear, textiles, seafood, sugar, ethanol, and pig iron remain subject to the tariff, posing risks to industrial exporters reliant on US demand.

India and the UK's trade pact took effect, reducing tariffs on goods and expanding services trade. The agreement benefits sectors like textiles, leather, and engineering exports for India, while Britain gains access to India's markets in automobiles and services. Bilateral trade data shows India had a $7.9 billion services surplus with Britain in 2024.

India's free-trade agreement with the United Kingdom will take effect, providing immediate tariff relief for businesses and testing India's trade strategies for future Western deals. The agreement benefits UK exports in luxury vehicles and spirits, while Indian textiles and leather products gain from eliminated tariffs on 99% of exports.

The article argues that devaluing the rupee to boost exports is ineffective due to high import dependency in production. Research shows exports respond weakly to exchange rate changes, and 37% of export value relies on imported inputs. Structural issues like energy costs, productivity, and trade facilitation are highlighted as critical factors, contrasting with examples of Vietnam and South Korea's success through diversification and reforms.

California landfills receive 1.2 million tons of textiles annually, costing $99 million in disposal costs. Senate Bill 707, the Responsible Textile Recovery Act of 2024, aims to shift textile waste management costs to producers and expand clothing collection systems to reduce landfill waste and create green jobs.