The representative of the clothing, footwear, fabric, and jewelry sector in the Jordan Chamber of Commerce Asaad al-Qawasmi Saturday said the negative effects of the coronavirus crisis continues despite the start of the winter and holiday season.

During this time of year, retail stores usually get their supply of winter products from wholesalers in preparation for the winter and holiday season, he said. However, this year it has not been the same, as merchants have only got the bare minimum in light of the pandemic and its repercussions, he added.

Qawasmi said there has been a significant decrease in citizens’ demand, which led to the accumulation of unsold goods. Many storeowners are unable to meet their financial obligations, which in turn affects importers and wholesalers.

He pointed out that the sector is still recovering from another crisis that began before the COVID-19 pandemic. The current crisis has added additional challenges due to the measures taken to confront the pandemic and prevent further spreading of the virus, he added.

The piling up of unsold goods, lack of liquidity, increase in tax and customs burdens and having to pay taxes and customs before selling products have negatively affected the flow of cash in the sector as a whole, he explained.

Qawasmi said that Jordan's clothing imports pay 47.5 percent in customs, income tax as well as sales and service allowances, while footwear pays 58 percent. He pointed out that Jordan's imports of clothes, footwear and winter fabric decreased by 25 percent in 2020.

The clothing, footwear and textile sector in Jordan employs 56,000 workers, the majority of whom are Jordanians, working in approximately 11,000 establishments across the kingdom.