06ASTANA150, KAZAKHSTAN’S TEXTILES AND APPAREL SECTOR: UPDATED STATISTICS

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06ASTANA150.
Reference ID Created Released Classification Origin
06ASTANA150 2006-09-29 04:55 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO4177
RR RUEHAST
DE RUEHAST #0150 2720455
ZNR UUUUU ZZH
R 290455Z SEP 06
FM USOFFICE ASTANA
TO RUEHC/SECSTATE WASHDC 0270
INFO RUEHTA/AMEMBASSY ALMATY 0237
RUEHAST/USOFFICE ASTANA 0291

UNCLAS ASTANA 000150 
 
SIPDIS 
 
SENSITIVE 
 
SCA/CEN - O'MARA 
STATE/EB/TPP/ABT - LERSTEN 
COMMERCE/ITA/OTEXA - D'ANDREA 
USTR - HEYLIGER 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KTEX KZ
SUBJECT: KAZAKHSTAN'S TEXTILES AND APPAREL SECTOR: UPDATED STATISTICS 
AND PROJECTION OF FUTURE COMPETITIVENESS 
 
1. (U) The following data for Kazakhstan in 2005, provided by 
Lubov Khudova, representative of the Kazakhstani Association of 
Light Industry Enterprises, and sources from the National 
Statistics Agency, responds to the questions in reftel. 
 
--  Industrial production: $38.6 billion 
 
--  Total textile and apparel production: $242 million 
 
--  Exports in textiles and apparel to the U.S.:  N/A 
(negligible) 
 
--  Total manufacturing employment:  540,500 people (892,000 
including mining, metallurgy, and extractive industries) 
 
--  Total employment in textiles and apparel:  22,800 (including 
1,300 in shoe manufacturing). 
 
2. (SBU) According Khudova, a representative of the Kazakhstani 
Association of Light Industry Enterprises, the country's textile 
and apparel industry "has not felt" the impact of the end of 
global textile quotas.   Khudova described the internal textile 
and apparel market as "wild and unregulated."  The reason, she 
said, is that the vast majority of the textile and apparel 
products on the Kazakhstani market are imports, of which roughly 
95% are undeclared.  While Kazakhstan does impose import duties 
on textile products, Khudova explained, customs enforcement is 
woefully inadequate.  This is partially due to gaping loopholes 
in customs regulations, which allow enterprises classified as 
small and medium to import large quantities of goods 
uninspected.  It is also partially the result of ineffectiveness 
and corruption at the customs checkpoints.  The government has 
to date failed to adequately address this problem, said Khudova. 
 
3. (SBU) Kazakhstan's "light industry" (which includes textile 
and shoe manufacturing) has, according to Khudova, contracted 
dramatically from 15.8% of GDP in the early 1990's to 0.6% of 
GDP now.  Post-Soviet economic decline and readjustment, 
combined with a flood of cheap imports, particularly from China 
and Turkey, has led to a collapse of the domestic textile 
industry.  The failure of customs controls, she added, has 
resulted in domination of the Kazakhstani textile and apparel 
market by low-grade counterfeit goods.  While Kazakhstan still 
has a substantial government-subsidized cotton-growing sector, 
96% of the Kazakhstani cotton is exported.  On the other hand, 
the vast majority of finished goods are imported; only about 8% 
of textile and apparel products and 1% of shoes purchased on the 
Kazakhstani market are domestically manufactured. 
 
 
MILAS 
 
 
ORDWAY 
 
MILAS

Wikileaks

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: