The ban is no longer temporary for Kazahkstan’s export of raw hides. The Asian country’s government is working to make the ban definitive, while the law until now, since January 2018, had to be renewed every six months. Duration: 5 years. Objective: to encourage, read local newspapers, local operators to increment internal production. Conclusion: not much change with regards to protectionism.
3-year plan
The decision is part of a series of actions planned for the 2019-2021 triennium. Each one should focus on supporting the light industry of Kazakhstan. The “hottest” point has to do with regulating exports, in order to prevent a drop of the revenue and incrementing the value of national production. Direct consequence: the government expects an increase in profits thanks to the taxes, along with the creation of new jobs, mainly inside the leather chain.
Supply
The ministers of Industry and Agriculture are working together to re-invigorate the supply chain of the country. The first problem that they are facing is the availability of credit to livestock farmers and entrepreneurs, particularly those specialized in leather and accessories. As of today, Kazakhstan only has about 1,000 companies active in light industrial activities such as textiles, clothing and leather goods.
