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Uzbekistan developing strategy for promoting textile products to EU market

Uzbekistan Materials 8 May 2021 11:41 (UTC +04:00)
Uzbekistan developing strategy for promoting textile products to EU market

BAKU, Azerbaijan, May 8

By Klavdiya Romakayeva - Trend:

Uzbekistan textile and garment industry Association (Uztekstilprom), together with GIZ and Gherzi international organizations and industrial enterprises, is developing a strategy for promoting textile products to the EU (European Union) market, Trend reports referring to the press service of Uztekstilprom Association.

On May 7, 2021, a textile conference was held on "New Uzbekistan - new textiles: the beneficiary of GSP + in the EU", dedicated to the development of the domestic textile industry and its further promotion in the EU market under the GSP + system.

It is noted that the forum is organized by the Uztekstilprom Association in cooperation with GIZ (German Society for International Cooperation), with the assistance of the Embassy of Uzbekistan in Belgium and the support of the Export Promotion Agency.

Earlier it was reported that by the decision of the European Commission, on April 10, 2021, a special system of preferences of the EU for sustainable development and good governance (GSP +) entered into force for Uzbekistan, into which Uzbekistan was admitted as a beneficiary country under the General Scheme of Preferences (GSP). The use of the GSP + system implies additional opportunities for increasing the export of textile products to the EU countries.

To achieve the intended results, the Uztekstilprom Association, together with international organizations (GIZ, Gherzi) and industrial enterprises, is developing a Strategy for promoting textile products to the EU market. In this connection, an international independent expert from Germany has been introduced to the Association, within the framework of the Global Program of the German Society for International Cooperation GIZ "Sustainable Development and Increase of Added Value in the Cotton Industry" and its component "Export Promotion and Development of a Business Incubator in the Fashion Industry".

According to experts, under the GSP + preferential trade regime, the expected volume of textile products in Uzbekistan by the end of the current year will amount to more than $150 million with a subsequent increase to $1.2 billion by 2025. Also, a tangible increase in the interest of investors and retailers is expected.

In addition, manufacturers of denim products will benefit more than all other players, rates for them are reduced from 17 percent to zero percent. Today, Uzbekistan exports more than $2.1 billion of textile products to 65 countries of the world, of which $74 million falls on the EU countries.

Until recently, Uzbekistan used the GSP regime, which allows exporting 3,000 goods to the EU without customs duties and 3,200 items at reduced rates. Under the GSP status, customs rates for textile products from Uzbekistan ranged from 4 to 12 percent.

In 2020, exports were carried out to 16 EU member states. The main share of exports accounted for yarn 49.1 percent ($13.5 million), fabric 21.9 percent ($6 million), knitwear 16.7 percent ($4.6 million), garments 11 percent ($2.9 million), hosiery 1.3 percent ($0.3 million). The three leaders in the import of Uzbek textiles are Poland - 56 percent ($15.4 million), Italy - 19.1 percent ($5.3 million), Germany - 7.3 percent ($2 million).

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Follow the author on Twitter: @romakayeva

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