The Clothing Department Of Kyrgyzstan Is At A Crossroads.
On February 13th, the clothing industry in Kyrgyzstan was at a critical juncture because the government was trying to join the customs union in Russia, Belarus and Kazakhstan.
The economic integration of Kyrgyzstan and the economic union means abolition of all existing borders among Member States. It will also mean the common customs duties of members from international imports from the customs union to the products of any country.
At present, Kyrgyzstan produces about 50 million pieces of clothing annually, worth about 4 billion som. More than 90% of these products are exported to Russia, Kazakhstan and some European countries.
Kyrgyzstan's clothing industry began to exist 10-15 years ago, and the company installed dozens of sewing machines on the lease. During that time, the number of employees in Kyrgyzstan's clothing companies increased to more than 100. They promoted their products by participating in international exhibitions.
Sandwiched among powerful competitive countries such as Turkey and China, Kyrgyzstan's clothing industry has used complex and interesting designs to survive by using cheap fabrics imported from China.
At present, Kyrgyzstan imports fabrics and accessories from low tariffs in China. However, the clothing department of Kyrgyzstan may lose their competitive advantage, because once the country has joined the customs union, the tariff rate of tariff Union will be applied.
After joining the customs union in Kyrgyzstan, tariffs on imported fabrics from China will be applied to 10-11%. This will lead to an increase in production costs and an increase in final product prices, thereby reducing the comparable competitive advantage of Kyrgyzstan's clothing sector in the Customs Union countries.
Experts suggest that the government of Kyrgyzstan should consult in the framework of the customs union and continue to reduce tariffs on imports of fabrics and accessories from Kyrgyzstan.
It is suggested that the government of Kyrgyzstan should give priority to tariff reductions because the Russian family has joined the world trade organization.
The future of Kyrgyzstan's clothing sector will depend on how the government deals with the situation in consultation with the members of the customs union.
Clothing companies in Kyrgyzstan also asked the government to allocate 9 hectares of land separately and build a garment city. In this garment city, the government can produce products that meet international standards and push the export of clothing sector again.
Entrepreneurs point out that a major problem facing the clothing sector in Kyrgyzstan is the lack of technical staff. To solve this problem, the government can design policies to train people, introduce courses in schools, improve the budget of schools that train female sewing workers, and even set up professional schools to provide training in clothing technology.
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