The Government of Castilla-La Mancha supports the allegations of the footwear industry / Clara Manzano
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The regional executive has promised to defend the response of the sector to the tariffs derived from the application of the Google Rate and has rejected that the effects of the tax measure fall more intensely on only some of the autonomous communities. The Minister of Economy, Business and Employment, Patricia Franco, has advanced to those responsible for the textile and footwear sector their inclusion in the direct aid derived from state funds once the central government authorizes the autonomies to extend the CNAE.
The Government of Castilla-La Mancha has pledged its support to the allegations that the footwear and leather goods industry is going to present to try to lessen the possible impact of the application of tariffs to the exports of the sector by the United States, derived from the launch in Spain of the so-called Google Rate.
The Minister of Economy, Business and Employment, Patricia Franco, has transferred the support of the regional government to the representatives of the footwear and leather goods industry in the region, with whom she has met online today and with whom It has also anticipated the decision to include both activities in the direct aid that emanates from the state funds of RD 5/2021, once the central Executive authorizes the autonomies to expand the CNAE that could be beneficiaries of this aid.
At the meeting, the Minister of Economy, Business and Employment was accompanied by the General Director of Business, Javier Rosell; and the director of the Institute for Foreign Promotion, Luis Noé. During the meeting, the importance of the US market for exports of the footwear sector in the region was highlighted, which touched 30 million euros in 2019, the last year before the effects of COVID on the international market , intensively concentrated in the province of Albacete and, to a lesser extent, in the province of Toledo.
The intention of the US Government is to apply an extra tariff of 25 percent to US imports of this industry from the European Union, which would imply an extra cost for regional companies that export their products to the US market, in response to the application. in Spain and in the European territory of the Google Rate, in addition to the contraction of the market that is already having repercussions on the orders of a highly seasonal product.
Patricia Franco has transferred the support of the regional executive to the sector in the presentation of the allegations of the footwear industry before this decision, which must materialize before May 13, in addition to making the dialogue of the regional government available to companies in the sector before the State and before other affected autonomies. The counselor stressed that the regional government will defend that the Google Rate cannot have an unequal impact on the different territories of the country, since the tariff that the United States has put on the table will have intense effects on Castilla-La Mancha and other autonomous communities such as the Valencian Community, which together account for 75 percent of the sector’s exports to the US.
At the meeting, the counselor underlined the commitment of the Government of Castilla-La Mancha to the sector, which has advanced its inclusion, in addition to the textile and leather goods sector, in the list of CNAE that may be eligible for aid Direct initiatives promoted through the state funds of RD 5/2021, once the central Executive materializes the authorization to the autonomies to expand the activities that may be beneficiaries of this aid, a decision that the sector has welcomed with gratitude to the regional government .
CLM leads the growth of business confidence in the country
The Minister of Economy, Business and Employment has also valued that Castilla-La Mancha is the autonomous community in the entire country in which business confidence grows the most in the second quarter of the year, and that it is the second autonomous community with the highest index confidence by businessmen for the April-June period, according to data published this morning by the INE.
This statistic reflects that business confidence has rebounded in the region in the second quarter of the year by 8.3 percent, which means it grows 3.3 points more than in the country as a whole, where it has rebounded by 5 percent. and do it with greater intensity than in any other autonomous community. Thus, after this growth, Castilla-La Mancha ranks as the second autonomous region in the whole country with the highest business confidence index, with 127.2 percent, almost 13 points above the average registered in Spain, which is 114.8 percent.
“The growth of business confidence encourages us to continue implementing measures on the double plane in which we have been working since the beginning of the pandemic, which is, on the one hand, to cushion as much as possible the effects of the health crisis and on the other, continue supporting investment projects and improvement of the competitiveness of our business fabric, which result in the improvement and maintenance of employment ”, concluded Patricia Franco.