Taipei Times
Date: Aug 03, 2015
By: Ted Chen  /  Staff reporter

Deutsche Bank kept its “sell” rating on Taiwanese textile manufacturer Eclat Textile Co (儒鴻), saying that any tariff benefits that the company’s production facilities in Vietnam might gain from the potential passage of the Trans-Pacific Partnership (TPP) would not materialize until 2017, while stiffer competition is a more immediate threat.

Eclat, which produces high-end functional fabrics at its factories in Vietnam, would see benefits from the pact limited by the “Yarn Forward” Rules of Origin (ROO) demand that TPP signatory nations use yarn produced by TPP members to receive access to zero tariffs, and the 12-to-18-month waiting period required for the trade pact to clear the legislative processes in participating nations, Deutsche Bank analyst Anne Ling (林建純) said in a report released on Thursday last week.

“Consensus has been too optimistic about the benefits of the TPP this year and next year. We are more conservative as we expect wage increases to have negative impacts before     [FULL  STORY]