Identifier
Created
Classification
Origin
07ASTANA2728
2007-10-01 11:37:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Astana
Cable title:
KAZAKHSTAN'S TEXTILES AND APPAREL SECTION: UPDATED
how-toVZCZCXRO3189 RR RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHLN RUEHPW RUEHVK RUEHYG DE RUEHTA #2728 2741137 ZNR UUUUU ZZH R 011137Z OCT 07 FM AMEMBASSY ASTANA TO RUEHC/SECSTATE WASHDC 0843 INFO RUEHAST/USOFFICE ALMATY RUCNCIS/CIS COLLECTIVE 0269 RUCNCLS/SOUTH AND CENTRAL ASIA COLLECTIVE
UNCLAS ASTANA 002728
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR SCA/CEN - O'MARA
E.O. 12958: N/A
TAGS: ECON ETRD KTEX KZ
SUBJECT: KAZAKHSTAN'S TEXTILES AND APPAREL SECTION: UPDATED
STATISTICS AND PROJECTION OF FUTURE COMPETITIVENESS
Ref: (a) State 114799 (b) 06 Astana 150
UNCLAS ASTANA 002728
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR SCA/CEN - O'MARA
E.O. 12958: N/A
TAGS: ECON ETRD KTEX KZ
SUBJECT: KAZAKHSTAN'S TEXTILES AND APPAREL SECTION: UPDATED
STATISTICS AND PROJECTION OF FUTURE COMPETITIVENESS
Ref: (a) State 114799 (b) 06 Astana 150
1. (U) The following data for Kazakhstan in 2007, provided by Lubov
Khudova, representative of the Kazakhstani Association of Light
Industry Enterprises, and sources from the National Statistics
Agency, responds to questions in ref A and updates information
provided in ref B.
-- Industrial production (including extractive industry): $52.7
billion (2006); $38.7 billion (January - August 2006)
-- Total textile and apparel production: Approx $281 million
-- Exports in textiles and apparel to the U.S.: N/A (negligible)
-- Total manufacturing employment: 714,600 (as of July 2006)
-- Total employment in textiles and apparel: 21,000 (including
2,100 in shoe manufacturing)
2. (SBU) Khudova told Econoff that the internal textile and apparel
market remains very much unregulated. She said that the vast
majority of the textile and apparel products on the Kazakhstani
market are imports, of which 95% are undeclared. While Kazakhstan
has laws on the books which levies customs duties on textile and
apparel imports, customs enforcement is woefully inadequate. This,
Khudova stated, is due to rampant corruption on the part of customs
enforcement officers, and loopholes found in the Kazakhstani customs
code.
3. (SBU) Khudova expressed enthusiasm about regulations recently
passed by Parliament that attempt to close some of the loopholes in
the Customs Code. These new regulations primarily aim at preventing
illegal or undervalued (and hence, undertaxed) Chinese textile and
apparel products from entering the Kazakhstani market. Still,
Khudova was not optimistic about the prospects of a reduction in
corruption on the part of customs officials.
4. (SBU) Khudova stated that as a result of post-Soviet economic
decline and readjustment, Kazakhstan's textile industry is today
dominated by foreign imports, particularly counterfeit products.
She noted, however, that the quality of the counterfeit goods has
improved in recent years, most likely due to Chinese manufacturers'
improved production methods. Khudova added that the Government of
Kazakhstan has not provided any special support mechanisms for
recently unemployed Kazakhstani textile laborers.
MILAS
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR SCA/CEN - O'MARA
E.O. 12958: N/A
TAGS: ECON ETRD KTEX KZ
SUBJECT: KAZAKHSTAN'S TEXTILES AND APPAREL SECTION: UPDATED
STATISTICS AND PROJECTION OF FUTURE COMPETITIVENESS
Ref: (a) State 114799 (b) 06 Astana 150
1. (U) The following data for Kazakhstan in 2007, provided by Lubov
Khudova, representative of the Kazakhstani Association of Light
Industry Enterprises, and sources from the National Statistics
Agency, responds to questions in ref A and updates information
provided in ref B.
-- Industrial production (including extractive industry): $52.7
billion (2006); $38.7 billion (January - August 2006)
-- Total textile and apparel production: Approx $281 million
-- Exports in textiles and apparel to the U.S.: N/A (negligible)
-- Total manufacturing employment: 714,600 (as of July 2006)
-- Total employment in textiles and apparel: 21,000 (including
2,100 in shoe manufacturing)
2. (SBU) Khudova told Econoff that the internal textile and apparel
market remains very much unregulated. She said that the vast
majority of the textile and apparel products on the Kazakhstani
market are imports, of which 95% are undeclared. While Kazakhstan
has laws on the books which levies customs duties on textile and
apparel imports, customs enforcement is woefully inadequate. This,
Khudova stated, is due to rampant corruption on the part of customs
enforcement officers, and loopholes found in the Kazakhstani customs
code.
3. (SBU) Khudova expressed enthusiasm about regulations recently
passed by Parliament that attempt to close some of the loopholes in
the Customs Code. These new regulations primarily aim at preventing
illegal or undervalued (and hence, undertaxed) Chinese textile and
apparel products from entering the Kazakhstani market. Still,
Khudova was not optimistic about the prospects of a reduction in
corruption on the part of customs officials.
4. (SBU) Khudova stated that as a result of post-Soviet economic
decline and readjustment, Kazakhstan's textile industry is today
dominated by foreign imports, particularly counterfeit products.
She noted, however, that the quality of the counterfeit goods has
improved in recent years, most likely due to Chinese manufacturers'
improved production methods. Khudova added that the Government of
Kazakhstan has not provided any special support mechanisms for
recently unemployed Kazakhstani textile laborers.
MILAS