Peru'S Textile Industry Is Seriously Affected By The New Epidemic

According to the president of unete, Lima's gamara market is the country's leading textile and garment wholesale center, gathering nearly 31900 micro and medium-sized enterprises, of which up to 99% are micro manufacturers, employing 100000 employees. Gamara market has been closed for more than three months due to the new outbreak. Although it has resumed operation in late July 2020, it has only returned to 60% of the business volume before the outbreak. So far, it has lost more than 1 billion US dollars, and more than half of the market may be lost and a large number of unemployment may occur. Therefore, suggestions are put forward for the government to adopt.

At present, Peru and China's textile industry are facing low price competition

(1) it is difficult to apply for low interest loans under the "revitalizing Peru program": in order to help enterprises cope with the impact of the epidemic and maintain a virtuous circle of industrial payment chain, the government provides credit guarantee to assist enterprises to apply for low interest loans from banks. However, most of the micro businesses engaged in the gamara market operate through rural or local credit cooperatives and lack of bank correspondence So far, only 3% of the manufacturers have obtained the low interest loan.

(2) encounter unfair competition of low-cost textiles from China and other Asian countries: Although Peru's Ministry of production has applied to indecopi for defensive measures against China's ready-made clothing products at the end of June 2020, China's low-cost textiles continue to pour into the Peruvian market, with the price of each garment only $1-1.5, eroding the domestic industry The original market.

In addition to the financing difficulties of the national textile industry, the government of Peru proposes to ease the financing conditions of the small and medium-sized enterprises in Peru.

At present, there are still 50 stores in gamara market that can't be reopened. However, a large number of non regular stall operators gather around the market, which will cause unfair competition to the regular operators. Therefore, it is suggested that the government should clean up the illegal vendors in order to avoid expanding the losses of the manufacturers in gamara market and worsening the unemployment problem.