Cooper

National Day of Latvia organized by European Apparel National Day of Latvia organized by European Apparel and Textile Organization and Association of Latvian and Textile Organization and Association of Latvian

Textile and Clothing IndustryTextile and Clothing Industry

Cooperation between the Ministry of Economics and the Association of Latvian

Textile and Clothing IndustryDina Eglite

Deputy Director, Department of Foreign Economic Relations and Trade Policy

Ministry of Economics of Latvia

Riga, May 19, 2004

This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of of CAST and can therefore in no way be taken to reflect the official opinion of the European Commission

The specific weight of textiles The specific weight of textiles in Latvian foreign trade in in Latvian foreign trade in

20032003

The specific weight of textiles:

in total export of Latvia – 12,6%

in total imports of Latvia – 6,5%

84% of textiles produced in Latvia are exported

Development of foreign trade Development of foreign trade with textiles in 2000-2003with textiles in 2000-2003

262,2244,1

282,8260,1

291,8278,1

365,5340,3

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003

Export

Import

Export of textiles and textile articles in 2003

EU75,0%

CIS6,3%

Baltic states9,1%

EFTA2,9%

Others4,7%

CEFTA2,0%

Import of textiles and textile articles in 2003

EU66,5%

EFTA2,0% CIS

5,0%CEFTA

7,1%

Others10,7%

Baltic states8,7%

Challenges of Latvian textile and clothing industry Challenges of Latvian textile and clothing industry after EU enlargementafter EU enlargement

Wider possibilities in:EU common market ( EU –25)

framework of EU concluded preferential agreements

Introduction of import quotas and double-checking system from certain third countries (for 8 months of 2004)

Introduction of Common External Tariff Introduction of EU Trade Defence Measures

Preparation of Latvian companies for Preparation of Latvian companies for new regulatory environment after new regulatory environment after

enlargementenlargement

Seminars organized by the MoE and the Association (in Riga and regions)

Informative publications in mass media Individual consultations in the MoE and the Association Website of the MoE

Implications of enlargementImplications of enlargement

Latvia will drop their prerogatives in external

trade:

denounce or re-negotiate international

agreements incompatible with the obligations

of membership ( one of them Free Trade

agreement with Ukraine)

Main import partners among the third countries after Main import partners among the third countries after 01.05.2004.01.05.2004. (forecast)(forecast)22,8

12,711,1 10,5

7,8

4,3 3,7 3,3 2,8 2,4

0

5

10

15

20

25

Ch

ina

Tu

rkey

Ru

ssia

Nor

way

Uzb

ekis

tan

Bel

aru

s

US

A

Ind

ia

Sw

itze

rlan

d

Kaz

akh

stan

%

Main export partners among the third countries after Main export partners among the third countries after 01.05.2004. (forecast)01.05.2004. (forecast)

1,81,92,23,3

6,1

11,311,511,9

21,623,1

0

5

10

15

20

25R

ussi

a

USA

Bel

arus

Nor

way

Ukr

aine

Icel

and

Can

ada

Swit

zerl

and

Chi

le

Kaz

akhs

tan

%

Future tasks of the Ministry of Economics in Future tasks of the Ministry of Economics in the framework of EU textile industry policythe framework of EU textile industry policy

Innovation Labelling Research & Development

- knowing consumer- variation of products (fashion)- branding

Important issues for Latvia in the Important issues for Latvia in the framework of the EU Common Trade framework of the EU Common Trade

PolicyPolicy Widened access to third countries’ markets

- abolition of non–tariff barriers - abolition of additional taxes and duties

Regional integration with Euromediterranean countries (free trade area)

Protection of intellectual property Prevention of unfair trade

Latvian Export Promotion Policy Latvian Export Promotion Policy GuidelinesGuidelines

to strengthen export-promoting state institutions and their cooperation with non-governmental organisations;

to enhance the competitiveness of Latvian companies at regional and global level;

to provide quality information and financial support to companies to implement external marketing activities (market researches, international exhibitions, trade fairs and missions);

to facilitate entry into new markets and diversification of exports; to provide training to the managers of Latvian companies on

international trade practice and development and implementation of marketing strategy for the companies;

to provide access to export guarantees, credits and insurance services

Future prospects of cooperation Future prospects of cooperation between MoE and LATCbetween MoE and LATC

Close and active work on proposals for the EC improving t/c sector competitiveness conditions;

Establishment of favourable domestic framework;

Building confidence of t/c companies working in free and fair international trade environment