ukrainian textile & leather industryeu fta canada fta ... non-equal conditions of competition in...
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Ukrainian Textile & Leather industry
Textile industry
• 475
• 16,9 thsd..
Apparel
• 1547
• 47,1 thsd.
Leather&Footwear
• 319
• 21,0 thsd.
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Textile & Leather Industry 2017
Staff workforce
Production
Export
+4,2%
+7,3%
+13,3%
+13,8%
Capital Investments
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Partners of Ukrainian Textile&Leather industry
America 28 Africa
30 Australia
8
Europe35 Asia
35
CIS 10
146 countries
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Continental structure of Ukrainian export
2016 – 963,1 mln.$ 2013 – 1159 mln.$
CIS 24%
Europe 71%
Asia 2%
Others 3%
CIS 12,8%
Europe 84,4%
Asia 1,8%
Others 1,0%
813,3 mln.$ 819,6 mln.$
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ТОP-10 countries of Ukrainian export
Germany 21,7%
Poland 14,4%
Romania 10,7%
Italy 9,0%
Russia 7,6%
Denmark 5,8%
Hungary 4,8%
France 3,0%
Belarus 3,0%
Slovakia 1,9%
Others 18,1%
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ТОP-10 import countries to Ukraine
China 27,4% Poland
10,2%
Turkey 9,2%
Germany 8,2%
Italy 7,1%
Bangladesh 2,5%
USA 2,5%
Belarus 2,5%
Russia 2,4%
India 2,1%
Others 25,9%
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Commodity structure
16,6%
12,5%
10,0%
3,9%
54,7%
2,3%
іmport
48,0%
16,0%
10,4%
5,9%
18,0%
1,6%
export clothes
footwear
other finished textile products
leather and fur products
raw materials (fibers,yarn, fabrics,leather)
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Ukrainian export of apparel
Outerwear 64,2%
Underwear 17,4%
Other clothing and accessories
10,7%
Clothes made of leather
3,1% Hosiery
3,1%
Others 1,5%
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Capital investments in Ukraine, %
2011 2012 2013 2014 2015 2016
164,1
111,5 107,0
81,2 101,7
129,1 113,5
85,8
107,3 137,1
168,4 185,1
Іndustry Textile&Leather industry
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Ukraine interest of equipment’s import
equipment for processing of textile
materials 4%
spinning 8% weaving
3% knitting 20%
auxiliary 3%
others 1%
wet-heat treatment
&decoration 22%
sewing 31%
leather& footwear 8%
Directions of modernization 2016
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Ukraine is attractive to Europe
Labor resources
Advantageous geographic location and logistics
EU FTA
Canada FTA
Developed border and customs services
Textile, apparel and footwear production
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Potential of Textile&Leather industry
EU-Ukraine DCFTA Canada-Ukraine FTA
Active companies – 2340
Staff workforce by 2 times
Ukrainian export up to 2.5 times
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Potential of Textile & Leather industry
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Ukrainian genetic center for sheep breeding
Institute of Animal Husbandry "Askania-Nova”
Transcarpathian State Agricultural Experimental Station
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Flax and industrial hemp for textiles
The climate in Ukraine is suitable for the production of cheap and high quality linseed and hemp fiber
Ukraine has varieties, cultivating, harvesting and processing technologies and business interests
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carpets natural cloth, mixed fabric technical textiles yarn, canvas geotextiles high-quality ropes, twine non-woven materials a wick for candles fire hoses clothes footwear
Flax and industrial hemp for textiles
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Ukrainian consumer market 42,7 million people
Adult 34,6 mln.
81%
Child 0-5
years 2,8 mln.
Child 6-18 years
5,1 mln. 12%
Textile and leather goods market - second after food consumption more than 5 billion.$ per year
7%
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The problems of development of industry
Non-equal conditions of competition in domestic market • lack of complete accounting of trade ( tax legislation) • lack of monitoring the safety of the products
Limited own raw material resources
Lack of skilled staff
Low productivity
Imperfect management system Lack of available loans and state support
• for modernization and expansion of production • for the introduction of new technologies
Lack of state support for participation in international exhibitions
Ukrainian
production 12,1%
Import 45,2%
Second-hand 17,3%
Smuggling, shadow
production 25,4%
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Europe is the main importer of second hand to Ukraine
The largest volumes, tons
Poland 31,5%
Germany 23,1% Switzerland
10,8%
United Kingdom
10,6%
Latvia 7,3%
Belgium 4,8%
Finland 3,6%
Netherlands 3,6%
Czech Republic
1,0% Norway
0,5%
Others 3,3%
9 months 2017 Import - 93,7 thsd.tons
(+29,6% to 2016)
The range of imports price
0$- 1.3$ per 1kg
Max price - 2.6 $ / 1kg
from Finland
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Ukrainian import of second hand
2016: 2.6 kg was imported for each inhabitant of
Ukraine
(in 2006 – 1,7 kg, in 2010 – 2,0 kg) 0
20
40
60
80
100
120
77 78,8 91
73,3
90,9 93,1 98,6 102,4 91,1 93,2
111,8
1 million tons 1 billion $
thsd. tons 2006-2016
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Association «Ukrlegprom» since 2000
outwear and underwear, knitwear, sportswear
leather wear, fur wear
work wear, uniforms, military clothing
fabrics, knitted materials, non-woven materials, technical textiles
home textiles, interior decorations, toys
leather, leather haberdashery, fur
footwear, safety shoes
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Association «Ukrlegprom»
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The main activities of Ukrlegprom
Industry Legislation
Foreign Trade
Military Uniform
Environmental protection
Taxes & Customs
Fashion & Exhibition
Technical regulation
Staff & Training
Market monitoring
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Strategy of industry development
❶ STAFF and TECHNOLOGY MODERNIZATION
❷ LEGALIZATION
❸ COMPETITION
❹ INVESTMENT
❺ INNOVATION
❻ POPULARIZATION
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Ukrlegprom’s steps & results
Cooperation with the Ministry of Economic Development and Trade of Ukraine • Initiation of Pan-Euro-Med process (due the problem with EUR-1 for apparel according to EU-DCFTA) • Protection of equal customs duties (0%) for footwear & individual items to EU-DCFTA (it was 10% till 2017.10.30 for Ukraine) • Protection of import duties on apparel, footwear, carpets within the UA-Turkey FTA (now in negotiations process) • Prioritization of Textile & Leather industry in National Export Strategy of Ukraine
Cooperation with the Ministry of Foreign Affairs, EBRD, CUTIS, E4U, WNISEF, etc. • representation of potential business opportunities for the export • search and suggestion of investment proposals • providing information, analytic and proposals for industry development • B2B, B2G, training programs for producers, etc.
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Strategy directions UA - EU
❶ Increase of fabrics, leathers and applied materials production in Ukraine
❷ Increase of employment and decrease of migration
❸ Increase of productivity
❹ Promoting of investment & innovation
❺ Upgrate of equipment & technology
❻ Harmonization of technical regulations
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Executive Directorate of Ukrlegprom
Tetyana Izovit President – Head of the Board [email protected]
Iryna Naumenko Senior Executive Officer
Anna Nesterenko Senior Legislation Officer [email protected]
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Thank you!
tel.+380445281424, +380445283494 03150, Ukraine, Kyiv, Zahorodnya str.,15
www. ukrlegprom.org.ua