Mr. Ramzi Gabbay, CEO of Offis Textile and chairman of the Manufacturers Association's textile and fashion division, said last week that although the textile industry will dismiss a few hundredworkers this year,2005 is expected to be a very good year for the industry.
Gabbay predicted that exports will increase by 2% in real terms and reach $1.12 billions. Local sales will increase by 5% to $1.15 billions. Total sales will increase in 2005 by 8% compared to last year and will reach $2.27 billions.
Gabbay noted that some 60 percent of Israel's textile companies moved their manufacturing operations overseas last year, to locations with lower labor costs, and another 30 percent plan to do so this year.
Gabbay expect the trend of moving textile plants to Egypt, Jordan and the Palestinian Authority to accelerate due to two recent developments: A recently signed American-Israeli-Egyptian trade agreement, which allows Egyptian textiles to be exported duty free to the U.S. if they contain a certain amount of Israeli content, and a EU plan to eliminate customs duties on goods produced through joint ventures between Israel and its neighbors.
Gabbay noted that the EU will declare a customs exemption for Jordanian-Israeli exports in the first stage, likely next month. Later on, it will consider easing duties on Israeli-Egyptian exports, and thereafter Israeli-Palestinian exports.
