AGP Executive Report

Policy Push (South Asia): Bangladesh’s textiles and jute minister says the country is moving both sectors toward “modern, sustainable and export-oriented” growth, backed by enforcement of the jute packaging law, cash incentives for exporters, and support for small jute entrepreneurs. Trade Expansion (Jute & Agri): Pakistan’s state trading body is seeking deeper Bangladesh trade, aiming to export rice, lentils, chickpeas, fertilizer and edible oil while importing higher-quality Bangladeshi jute and jute products; an MoU between the two trading corporations is nearing completion. India Cluster Support (Tirupur): India’s textiles minister urged Tirupur knitwear makers to accelerate shifts toward blended and man-made fibre production and sustainability, while promising help on women’s worker hostels, new industrial clusters, and advanced manufacturing tech. Budget Outlook (Bangladesh RMG): A proposed FY26-27 budget is framed as a potential boost for apparel via tax cuts, levy adjustments, MMF diversification support, renewable energy incentives, and lighter compliance burdens. Sourcing & Events (China): Shaoxing is accelerating textile upgrades with automation, digitalization and AI as it targets CNY1 trillion GDP; Intertextile Shenzhen also reported strong buyer turnout and a stronger innovation focus. Sustainability & Regulation (EU): Germany backs tougher EU rules to curb ultra-fast fashion, pushing for more recycled content and easier repair and recycling to reduce textile waste. Corporate Sustainability (Canada): Gildan earns repeat sustainability recognition from Corporate Knights and TIME’s Most Sustainable Companies list.

MSME Push in Bangladesh: Experts marking International MSME Day urged simpler rules, a one-stop digital licensing system, and better access to support services, noting nearly 90% of businesses remain informal and compliance info is scattered. Bangladesh Investment Drive: Twelve Chinese firms proposed $9.21b for Bangladesh, including waste-to-energy, gas exploration, and a Mongla Port Economic Zone with bonded warehousing and logistics. EU Market Stakes for Bangladesh: Bangladesh is negotiating an FTA and seeking GSP Plus to protect duty-free access as it faces LDC graduation, with about half of exports going to the EU. Nigeria Textile Policy Warning: CPPE urged Nigeria’s Senate to drop a proposed textile import ban, warning it could disrupt supply chains and threaten around 10m jobs, calling instead for cotton, power, financing, and competitiveness reforms. Nigeria Cotton Revival Plan: A textile expert backed a phased rebuild starting with certified seeds, extension services, security for cotton communities, reliable electricity, and long-term single-digit financing. Textile Recycling in Limerick: A councillor called for better coordination with textile recycling operators to stop overflowing bring banks while keeping recycling access clear for residents. Italian Machinery Workshop in Mongolia: ACIMIT and partners hosted an Italian textile technology workshop in Ulaanbaatar to support Mongolia’s modernization across wool, cashmere, spinning, finishing, and sustainable production. Textile Innovation Spotlight: A University of Texas jacket uses textile fibers to harvest moisture from air, producing up to about 1.5 pints of drinkable water per day in field conditions.

Bangladesh–China Investment Push: Twelve Chinese firms have proposed about US$9.2bn in Bangladesh during PM Tarique Rahman’s June 22–26 visit, spanning Mongla Port expansion, a Chattogram industrial park, highways, and waste-to-energy—aimed at tens of thousands of jobs and stronger supply chains. MSME Focus: Bangladesh’s industries minister called MSMEs the “lifeblood” of the economy, while India’s World MSME Day event in Hyderabad echoed the same push for jobs and entrepreneurship. Nigeria Textile Import Ban Backlash: Nigeria’s CPPE warned that a Senate-backed textile import ban could disrupt downstream fashion and garment work, threatening millions of jobs and supply chains instead of fixing structural issues like energy, credit, and logistics. Pakistan Cotton Market Disruption: Pakistan’s Karachi Chamber of Commerce flagged the sealing/occupation of the historic Cotton Exchange building, saying it has stalled hundreds of offices tied to cotton trade and hurts exporter confidence. Traceability Tech for Fibres: Lectra’s TextileGenesis is now powering NATIVA’s wool and cotton programs with a digital chain of custody to replace paper certificates and improve audit-ready traceability. Ultra-Fast Fashion Regulation Push (EU): Germany, France, and the Netherlands urged tougher coordinated EU action against ultra-fast fashion, targeting short-lived, low-quality textiles.

Leadership Move (India Textiles): Grasim Industries appointed Sangeeta Tanwani as CEO (Designate) for its Textiles business from Aug 1, 2026, with the CEO role starting Nov 1 as Kapil Agrawal exits to a new Aditya Birla Group position. Sustainability Data (Cotton): Cotton Incorporated released an ISO-compliant 2026 life cycle assessment for U.S. cotton fiber, using primary grower inputs from 753 growers to quantify cradle-to-gate emissions and key drivers for decarbonization reporting. Trade & Market Access (India): Union Textiles Minister Giriraj Singh said India’s FTA network now covers 56 countries and is expanding export potential for textiles. Circularity & Waste (EU): EU watchdog reporting highlights large-scale illegal textile waste trafficking into Turkey, adding pressure on enforcement and EPR-style systems. Investment Signals (Bangladesh): Eleven Chinese firms proposed $9.21bn investment in Bangladesh, spanning energy, logistics, manufacturing, and waste-to-energy—relevant for textile supply chains. Craft & Heritage (Textiles in Culture): A new exhibition on embroidered traditions across Morocco to Afghanistan spotlights SWANA textile heritage and identity through centuries-old techniques.

Textile Waste & Recycling: Oregon’s St. Vincent de Paul of Lane County is diverting nearly 3 million pounds of textiles from landfills by sorting donations into resale, reuse, upcycling, rags, and bales. Circularity & Community: Dayton’s 7 Circle of Kindness Community Recycling Drive returns June 27, collecting hard-to-recycle items and hundreds of pounds of clothing and other goods. Labour & Compliance: A US delegation urged Bangladesh’s BTMA to protect labour rights and align with ILO standards as it discusses post-LDC graduation competitiveness. Trade & Policy: India’s Commerce Ministry reviewed its Export Promotion Mission with EPCs, adding fixed DGFT committee schedules to speed facilitation. EPR & Regulation: California’s textile recycling law faces a July 1, 2026 deadline, while Europe’s Textile PRO Forum calls for harmonised EPR rules. Industry Events: ITM 2026 in Istanbul drew 48,257 professional visitors from 105 countries, underscoring global demand for textile machinery. Local Textile Culture: Bewdley’s River Festival features 18-foot canvas banners made by volunteers to raise awareness of river pollution.

Textile Recycling in India: Navi Mumbai’s municipal textile recycling facility was showcased as a national model at a New Delhi summit, with the project backed by household participation and training for women to support circular textile waste management. New Textile Park Jobs Push: Chhattisgarh is moving ahead with a Nava Raipur textile park, where Swift Textiles has started a ₹235 crore garment unit aimed at children’s apparel and knitwear, targeting thousands of jobs and export markets. Circular Tech & Machinery: Stäubli highlighted demand at ITM Istanbul 2026 for automated weaving preparation, Jacquard, and digital services focused on productivity and energy efficiency. Trade Talks With Sector Pressure: India-US “Mission 500” talks are said to be making “substantial progress,” but the key sector concessions and “competitive advantage” details remain unclear—raising stakes for textile-linked industries. Brand Expansion Using Indian Craft: Fabindia launched “Fabels” to enter western wear, blending global styles with Indian textile techniques like Ajrakh, indigo, Dabu printing, and hand embroidery. Policy & Compliance Watch: EU investigators and watchdogs continue to flag large-scale illegal textile waste exports and dumping, keeping enforcement pressure on supply chains. Local Industry & Employment: Ghana lawmakers urged sustaining the 1D1F factory initiative to tackle youth unemployment, echoing broader manufacturing-first approaches.

Freight & cotton pulse: Drewry’s World Container Index jumped 5% to $4,166/FEU, the highest since Sep 2024, as Transpacific demand stayed firm and capacity looks tight; meanwhile US upland cotton export sales slid 53% week-on-week (Pima also down) even as shipments rebounded, while ICE cotton futures bounced after a losing streak on a weaker dollar and firmer crude. Bangladesh investment & compliance pressure: PM Tarique Rahman says Bangladesh will open its first investment office in China soon to speed decisions and deepen manufacturing links; BGMEA also urged a science-based, realistic environmental compliance roadmap for RMG, warning current effluent standards are hard to meet. Trade & market access moves: BTMA asked the US to speed duty-free implementation for apparel made with US cotton/MMF; EU regulators backed tighter workplace cancer rules in a chemicals deal, and OLAF flagged large-scale acrylic-rich textile waste trafficking from Italy to Turkey. Circularity & materials: Europe’s textile waste rules tighten further as brands face limits on landfilling/incineration of unsold stock; Shenzhen’s Intertextile Shenzhen 2026 highlighted innovation-led sourcing, including smarter, more sustainable fibre choices. Regional industry support: ADB approved $42.2m to build Northeast India’s bamboo value chains, aiming at jobs and reduced imports.

Circularity & Compliance: EU investigators (OLAF) say they uncovered large-scale illegal textile waste exports from Italy to Turkey, seizing thousands of tons and €12m in assets, with shipments allegedly misdeclared to dodge recycling rules. Brand Claims Under Scrutiny: The UK Advertising Standards Authority banned ads by Adidas, Calvin Klein and Uniqlo over misleading “recycled” fabric claims, saying the wording implied products were entirely recycled without support. Textile Waste-to-Value Tech: Nova Carbon and CMP Composites partnered to collect and recycle CMP’s carbon-fiber offcuts, with the first industrial use reported in small offshore wind turbine blades using recycled aligned fibers. Industry Investment: India’s Winsome Textile Industries approved about Rs 170 crore capex to modernise spinning, expand dyeing, and upgrade effluent recycling/ETP and sludge handling. Policy & Trade: Tunisia’s 22nd Investment Forum highlighted growing FDI in high-value sectors including technical textiles; separately, Bangladesh’s PM in China pushed Chinese investment and a planned Bangladesh investment office in China, while Pakistan-Iran trade revival faces banking and smuggling hurdles. Market & Supply Chain Signals: Crisil says West Asia tensions’ profit hit to India Inc may be limited as crude prices ease and shipping routes reopen. Design & Materials Spotlight: Louis Vuitton’s SS27 menswear editorial leans on surf-inspired materials and weathered textures, while Wales Bonner’s SS27 “Sun Poem” ties portraiture/documentary photography to tailored menswear textiles. Heritage Textiles: Archaeologists in Denmark report a major Viking Age settlement at Søften with large-scale flax processing and textile production tied to trade networks.

Bangladesh RMG Compliance Push: BGMEA urged Bangladesh’s environment ministry to adopt more practical, science-based rules for effluent treatment and to shift ZLD toward a phased, performance-based roadmap so exporters can stay competitive. EU Chemical Limits: The EU Parliament and Council reached a provisional deal tightening worker exposure rules for dangerous chemicals, a direct compliance headache for textile suppliers selling into Europe. Circular Textiles Deal: HKRITA signed an MoU with Jeanologia and Looptworks to scale hydrothermal recycling of blended textiles via its Green Machine 4.0, targeting high-purity polyester recovery. Bangladesh Export Slowdown: Bangladesh garment exports fell 3.41% in July–May FY26 to $35.31bn as demand weakened and costs rose, with pressure spreading beyond traditional markets. EU Anti-dumping on Textile Chemical Inputs: The European Commission imposed definitive anti-dumping duties on 1,4-Butanediol (BDO) from China, Saudi Arabia and the US, a key intermediate used across textiles and other industries. India Polyester Cost Relief: India’s polyester industry asked for an extension of PTA/MEG duty exemptions to Sept 30, 2026 to protect MMF competitiveness amid logistics and raw-material volatility. US Forced-Labour Tariff Risk: Sri Lankan apparel exporters warned a US forced-labour-linked tariff framework could leave them paying higher duties than peers. Market Signals: ICE cotton futures slid for a fourth straight session as the dollar strengthened and crude eased, while UK manufacturing order books hit a near six-year low.

Bangladesh RMG Environment Push: BGMEA asked Bangladesh’s environment ministry for a science-based, realistic compliance roadmap for the ready-made garment sector, saying current Environment Conservation Rules 2023 effluent color parameters and ZLD expectations are hard to meet with existing ETP tech and that monitoring results can swing with rainfall and humidity. Bangladesh Factory Stress: New data says 151 garment and textile factories have permanently shut between Aug 2024 and Jun 2026, blamed on weak export orders, higher costs, raw material price pressure and global uncertainty, with government incentives now being sought by hundreds of distressed units. Pakistan Budget Signals for Textiles: Pakistan’s FY27 outlook is mixed, but exporters may get relief as a 1% turnover tax and advance tax on exports are removed, improving cash flow; the PSX rally also cited the move as a boost for textile stocks. India Surat Safety Checks: After a deadly Lucknow coaching-centre fire, Surat’s fire department is stepping up inspections in the textile hub, issuing notices for non-compliance with fire safety rules. Recycling Compliance Shift: US states are tightening packaging and producer-responsibility rules, raising demand for verifiable recycled materials—SMX says proof, not promises, will define the next phase of textile and plastics circularity. Denmark Viking Textile Find: Archaeologists uncovered a large, organized Viking-era textile production site in Denmark, suggesting advanced flax processing and a wider trade network. Circular Laundry Investment: Loop Linen Service broke ground on a $16.4M, 62,000-sq-ft Avondale laundry facility, part of a $25.1M investment to modernize operations and retain 125 jobs.

Textile Recycling & Circularity: Circulose says it has signed new brand partners—Eileen Fisher, Marimekko, Samsøe Samsøe and King Louie—using its Circulose pulp as it prepares to restart commercial production at Ortviken in Sweden in Q4 2026. Fashion & Heritage on Display: Morocco’s UNESCO-listed caftan culture lands at the China National Silk Museum with “The Moroccan Caftan: A Living National Heritage,” running through Sept 23, 2026, while “Longmen Realm” (Ecust Creplus Design) wins a Bronze A’ Design Award for exhibition design featuring Longmen Grottoes artifacts. Industry Growth Signals: Sri Lanka reports May 2026 apparel/textile exports up 7.96% to $394.14m, but warns of possible US forced-labour tariffs under Section 301. Market Watch: MOFSL begins coverage on several Indian textile names, including Pearl Global Industries (PGIL), with “Buy” calls and growth expectations tied to capacity expansion. Trade & Policy Pressure: Bangladesh faces factory closures amid weak global demand, while Bangladesh’s trade deficit widened to $24.17b in FY25—both adding pressure to the textile supply chain. Events for the Sector: Performance Days expands into three halls at Messe München in Oct 2026 as demand from the international textile industry keeps climbing.

Regulatory Crackdown on “Recycled” Ads: The UK Advertising Standards Authority banned ads from Calvin Klein, Adidas and Uniqlo after “recycled” claims were deemed misleading without clear detail on what parts were actually recycled. Export Push for Bangladesh: Commerce Minister Khandakar Abdul Muktadir says Bangladesh can lift exports from $50–55bn to $150bn by targeting 5–7 priority sectors, including leather and light engineering skill hubs. Apparel Supply-Chain Tech: CreateMe teamed with Avalo and Laguna Fabrics on “Seed to System,” linking climate-smart cotton, domestic textile manufacturing and robotic assembly into an AI-assisted ecosystem. Industry Expansion in the US: Loop Linen Service will break ground on a $25.1m, 62,000-sq-ft laundry facility in Avondale, aiming to retain 125 jobs and modernize operations. Sustainability in Fashion Education: Ghana’s Angel Institute of Fashion and Design launched a Zero-Waste Initiative, claiming up to 95% fabric use by repurposing offcuts into accessories and garments. Global Trade Signals for Textiles: Raymond Lifestyle said the UK-India FTA could boost its global expansion, pairing British tailoring with Indian manufacturing. Heritage Textiles on Display: Mystic Museum of Art previews “Luxe, CT: Velvet Mills to Modern Runways,” tracing Connecticut’s textile history from traditional craft to contemporary fashion.

India–UK Trade Boost: Motilal Oswal says India’s textile and apparel exports should gain momentum as global retailers grow more optimistic and the India–UK FTA is expected to remove import duties, helping India compete with duty-free rivals like Bangladesh, Turkey and Cambodia. Market Outlook: The same report points to stabilising inventories and improving sell-through in the US and Europe as drivers for healthier ordering cycles and better capacity use. Nepal–Spain Business Links: Nepal’s “Nepal–Spain Business Forum 2026” in Madrid highlighted opportunities for Nepali textile and garment exports, with officials citing textile trade stats and investor interest. Performance Fibres Shift: Textiles Intelligence reports performance apparel is moving toward natural and man-made cellulosic fibres to cut environmental impact and microplastics concerns while meeting comfort and odour-management expectations. Textile Tech Win: Taiwan’s NunoX Tech won an AI category at VivaTech 2026 for scanning real fabrics into digital materials, aiming to cut sampling waste and speed apparel development. Outdoor Canvas Expansion: Australia’s Bruck Textiles launched Australian Outdoor Fabrics, expanding into premium outdoor canvas for military, transport and recreational uses. Silica Sol Demand: A market update links silica sol growth to rising tire production, citing improved durability and traction benefits in automotive manufacturing.

Bangladesh GI Push: Bangladesh says it has 64 registered Geographical Indication products, including Jamdani saree, Dhakai Muslin, Rajshahi Silk and Shataranji, underlining how heritage textiles are getting legal protection. Cotton Science & Supply Risk: Mississippi State researchers help clarify cotton’s domestication origins, while separate reporting flags Punjab’s cotton cultivation shortfall and rising pressure on Pakistan’s “white gold” base. Outdoor Fabric Updates: W. L. Gore expands the GORE-TEX® portfolio with new WINDSTOPPER® Stretch options and laminates using textile-to-textile recycled face materials. Sustainable Packaging Scale-Up: Hébert Group and ANDRITZ are scaling Dry Molded Fiber production to replace plastic packaging with cellulose-based molded solutions. Trade & Standards Ahead of CETA: Experts urge Indian exporters to meet UK product standards to benefit from India-UK CETA, with textiles highlighted as a key growth area. Fashion & Education: Thomas Jefferson University appoints Marcia Weiss as Dean of its new College of Fashion and Textiles, while Ralph Lauren previews Spring 2027 menswear with a KUON capsule and sashiko detailing.

US Tariff Pressure on Apparel Exports: The U.S. is weighing Section 301 tariffs that could add up to 12.5% on imports from countries including India, putting fresh strain on already-thin margins and limiting any shift away from China. Bangladesh–Malaysia Trade & Tech Push: Bangladesh’s PM Tarique Rahman used a Malaysia visit to seek deeper ASEAN ties and RCEP entry, while both sides flagged cooperation beyond agriculture into AI, semiconductors, energy and advanced manufacturing. Textile Innovation at Scale: Fraunhofer IGB says functionalized gelatin can now be produced in reproducible batches from grams to kilograms, supporting coatings and textile-related applications. Local Textile Jobs Get a Boost: North Carolina’s rural funding package includes a grant to reuse a building for a mattress maker and a hub for an India-based textile manufacturer, targeting new jobs. Circularity & Waste Focus: London Climate Action Week is spotlighting zero waste with a Türkiye-led Zero Waste Hub, explicitly linking circular-economy ideas to fashion and textiles. Microplastics Alarm: A Ghana study warns microplastics are widespread in the Odaw River, with particles carrying other pollutants into ecosystems. Crafts & Heritage in the Spotlight: India’s tribal textiles brand RISA is expanding luxury access for artisans, while Nita Ambani’s Chikankari saree highlights Lucknow craft made over a year.

Cotton Innovation & Supply Chain: Cotton Incorporated’s Cotton ConneXions Insight to Impact drew 300+ leaders from 140 companies across 10 countries, spotlighting cotton-rich product development and new fabric tech as regulations and market dynamics shift. Bangladesh Investment Push: Commerce Minister Khandakar Abdul Muktadir said Bangladesh is building a centralized online one-stop investment service to speed licensing and approvals, including provisional licences for early operations. Uzbekistan Finance & Partnerships: At TIIF, Uzbekistan’s credit story and investor appetite were highlighted, while Türkiye-Uzbekistan business talks pointed to deeper economic cooperation. Pakistan Textile & Security Link: Pakistan’s CTD arrested a suspected suicide bomber in Karachi tied to militants linked to an attack on Chinese nationals at Liberty Textile Mills in 2024. Market Watch (Textile-linked): Dhaka Stock Exchange resumed real-time trading halts after unusual price moves, including for Sonargaon Textiles. Water-Tech for Outdoor Gear: Researchers unveiled a wearable jacket using moisture-harvesting textiles to produce up to 900ml of drinking water daily, targeting hikers and field workers. Design & Craft Mood Shift: Copenhagen’s 3 Days of Design emphasized warmth and craftsmanship over minimalism, with richer color palettes and heritage-led interiors.