Starting from 2020, exports of raw cotton will be stopped and a full-scale processing of cotton fiber in the country will begin. This was announced by a representative of the Economy Ministry Kuvonchbek Mustafoyev at a press conference dedicated to the prospects of the textile industry, Kun.uz correspondent reports.
“There are two stages in the development of the textile industry, which is one of the key sectors of the economy. The first is to fully process cotton fiber on our own. The second is to enhance processing yarn and export more finished products at an increased value-added tax. We are currently at the first stage. In 2020, exports of raw cotton will be stopped. We would like to switch to full processing of cotton fiber in our country,” Kuvonchbek Mustafoyev said.
It is reported that penetration into the EU market with textile products is now one of the key issues faced by the industry.
“The European Union is a major consumer of ready-to-wear textile products worldwide. We have to enter this market. To do this, we are trying to move to the GSP + system in 2020. This system will allow better access to the EU market,” the representative of the Economy Ministry said.
For information, Uzbekistan is currently in the Generalized System of Preferences (GSP). This allows us to export up to 3,000 goods to EU market free of tax and 3,200 goods at reduced tariffs. If we switch to the GSP + system, we will be able to export more than 6,000 goods free of tax.