BAKU, Azerbaijan, Dec. 29
By Fakhri Vakilov-Trend:
Starting from 2020, the export of raw cotton in Uzbekistan will be stopped and full-scale processing of cotton fiber in the country will begin, announced a representative of Uzbekistan’s Ministry of Economics Kuvonchbek Mustafayev at a press conference on the prospects of the textile industry, Trend reports citing Uzbek media.
“There are two stages in the development of the textile industry, one of the key sectors of the economy. The first is the complete processing of cotton fiber domestically. The second is the deep processing of yarn and the export of finished products to increase the value added tax. We are now proceeding to the first stage. Starting from 2020, the export of raw cotton will be stopped. We intend to proceed to the complete processing of cotton fiber in our country,” Mustafoev said.
It is reported that entering the EU market of Uzbek textile products is currently one of the key challenges facing the industry.
“The European Union is the main consumer of finished textile products worldwide. We must enter this market. To do this, we are trying to switch to the Generalized System of Preferences (GSP) + system, the mode of providing additional tariff preferences, by 2020. This system will provide better access to the EU market,” said the representative of the Ministry of Economy.
Uzbekistan is currently located in the GSP. This mode allows exporting duty free to the EU up to 3000 types of goods and 3200 types of goods at preferential rates. When switching to the GSP + system, more than 6,000 products can be exported duty free.
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