Russia joining the WTO to hit Kyrgyzstan's garment exports

15 Nov '11

2 min read

Kyrgyzstan's garment exports would be affected due to Russia joining the World Trade Organization (WTO), Ismat Shamiyev, Dordoi Trade Union member said at a conference on “Employment in the KRG: problems and political choice”.

Mr. Shamiyev stated that the Kyrgyzstan garment industry is dually hit, as on one hand it lacks Government support, while on the other Russia no more requires garments or other goods from Kyrgyzstan after its acceptance of the WTO membership.

He said when Kyrgyzstan became a member of the WTO, low-cost Chinese products flooded the country's market and now Russia also would not purchase any garment or other products from Kyrgyzstan.

In addition, owing to Customs Union (CU), the borders of the republic are also closed, he said, and added that he does not expect any change even with implementation of the TC regulations in the republic.

Moreover, licenses to the Dordoi market, one of Asia's largest wholesale and retail markets in Bishkek region of Kyrgyzstan, have also become very costly for merchants, Mr. Shamiyev said.

He stated that introduction of licences came as a blow to the employment generation capacity of entrepreneurs in the country, as owing to a rise in costs they were forced to reduce their manpower, and thereafter a rise in licence cost forced them to further cut their workforce.

He contended that rather than helping the entrepreneurs to retain their workforce, the government is compelling them to cut on their workforce, by imposing taxes.

All these issues are leading to the collapse of the Dordoi garment industry in Kyrgyzstan, Mr. Shamiyev added.

Fibre2fashion News Desk - India

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