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This year Haining leather garment export to Russia continued to decrease. According to statistics, in 2003, Haining exported leather apparel worthy 0 million to Russian market; last year, it fell to .03 million; this year it is estimated to drop to million.
It is understood that Russia is the largest export market for Haining leather garment, accounting for 80 per cent of its exports, which played an important role in promoting the development of Haining leather garment industry. Since 2003, with the implementation of Russia's new Customs Law and the advance of the process to apply to join the WTO, Haining garment export to Russia have been decreasing year after year.
Some experts believe that this export reduction is partly caused by Russia’s restrictive policy and also because Haining’s products to Russia are mainly middle and low grade with low added value and it fails to make timely adjustment of their development strategies, therefore its competitive advantage has been behind Vietnam, India, Turkey, etc. The appreciation of the Renminbi, reduced export tax rebates, and price rise in raw material increase the enterprise's production costs to a certain extent, which results in company profits and market share decreasing.
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