Economy Ministry announces launch of program to assist textile  industry in Armenia

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.