As Turkey prepares to host the 28th Eurasian Economic Summit under the theme “Dialogue for a Livable World,” Mustafa Paşahan, Vice Chairman of the Istanbul Ready-to-Wear and Apparel Exporters’ Association (İHKİB), addressed the challenges confronting the Turkish apparel industry and outlined a strategic action plan for recovery.
Speaking during the summit’s promotional event, Paşahan emphasized the strategic importance of Turkey’s fashion and textile sector, noting that the country ranks as the world’s sixth-largest apparel exporter and the European Union’s third-largest supplier. However, he warned that surging production costs and unfavorable exchange rates have significantly eroded the industry’s global competitiveness.
“Today, Turkey’s production costs are 50–60% higher than countries such as Vietnam, Bangladesh, and India. Disturbingly, we are even more expensive than many European countries,” Paşahan stated.
Turkey’s ready-to-wear exports, which peaked at $21.2 billion in 2022, declined to $17.9 billion in 2024. The contraction has continued into the first quarter of 2025, while apparel imports neared $4 billion, dealing a blow to local production and employment. The sector’s workforce has shrunk from over 738,000 employees at the end of 2022 to fewer than 564,000 in January 2025.
In response to this alarming trend, İHKİB has proposed a four-point plan to revitalize the sector:
- Restoring balance between input costs and exchange rates to regain international competitiveness.
- Expanding access to the Employment Protection Support Program for all firms without discrimination.
- Increasing the social security premium discount from 5% to 10% for two years in labor-intensive sectors.
- Providing low-interest loans below 20%, with a two-year grace period for labor-intensive industries.
With the implementation of these four measures, we can rapidly restore momentum in our apparel exports,” Paşahan concluded.
Meanwhile, the 28th Eurasian Economic Summit, organized by the Marmara Group Foundation, has confirmed participation from 44 countries, including China, Taiwan, Russia, and Ukraine. However, Austria, Italy, Germany, and France have reportedly withdrawn from the summit, citing recent political developments in Turkey.
Despite these challenges, the Turkish apparel sector remains committed to adapting and thriving in an increasingly competitive global marketplace.
