ArmInfo.The Ministry of Economy announced the launch of a program to assist the textile industry in Armenia. According to the press service of the Ministry, the program is being implemented in Armenia with the financing of the "Good Governance Fund" of the United Kingdom government, with the support of the European Bank for Reconstruction and Development (EBRD), in cooperation with the Business Assistance Office. The program is aimed at the sustainable, inclusive development of the textile industry in Armenia.
Deputy Minister of Economy Rafael Gevorgyan noted that based on the study on the consequences of the termination of the GSP+ trade preferences regime, a 5-year strategy for the textile industry will be developed.
The strategy, he said, will cover not only textile production, but also other areas of light industry. Ambassador Extraordinary and Plenipotentiary of the United Kingdom John Gallagher noted that the textile industry is one of the dynamically developing industries in Armenia, which has a high growth potential. He expressed hope that the implementation of the program will help increase competition in the field. According to the diplomat, the program is focused on the development of entrepreneurship among women and environmental protection.
Head of EBRD Armenia Office Dimitri Gvindadze, in turn noted that the Bank is consistently increasing its investments in the Armenian market. In addition to the financial and energy sector, he said, the EBRD is also interested in cooperation opportunities in Armenia in the areas of real estate, services, tourism, telecommunications, and agriculture.
Noting that the textile industry is among the priorities of the Bank, Gvindadze expressed his readiness to assist the development of this sector.
According to the source, within the framework of the program, proposals will be developed on the possibilities of increasing the value added of textile products produced in Armenia in order to increase its competitiveness, taking into account the fact that this category of products is no longer covered by the GSP + regime.
According to the Statistical Committee, the revenue of the textile industry in Armenia in January- November 2021 compared to the same period in 2020 increased 2.2-fold, exceeding 1.7 billion drams. Such dynamics was provoked by a significant increase in the production of bed linen and fabrics. In particular, during the reporting period, Armenian factories produced 21.3 tons of fabrics, which is 59% more than in the same period a year ago. At the same time, the volume of production of bed linen increased 2.2-fold- up to 121.6 thousand pieces. In addition, the production of tights, leggings, socks and other hosiery increased by 1%, amounting to 19,003.7 thousand pairs. The production of jumpers, pullovers, jackets, jackets (vests) or similar products (knitted/knitted) was in decline, with a decrease in volumes by 65.2% to 2,700.2 thousand pieces, and the production of carpets and rugs - by 56, 7% up to 2.9 tons.
From January 1, 2022, Armenian exporters will no longer be able to use the European Union's GSP + trade preferences regime. The EU Preferential Regime (GSP+) is a system of customs preferences that allows low- and lower-middle income countries to export more than 6,200 items to the EU market at zero or reduced customs duties. According to experts, as a result of exclusion from the GSP+ system of trade preferences, Armenia will lose 20% of its exports to the EU this year, or about $114 million.
