The Turkish textile, garment, and apparel industries have been significantly impacted by the global inflationary environment, ongoing wars, and domestic economic policies. Additionally, the devastating earthquakes in February 2023 disrupted production, further weakening the sector.
Despite these challenges, industry leaders are continuing their efforts to maintain their competitive edge in the global market. However, manufacturers frequently emphasize the need for government support and regulations to help them stay competitive.
At the opening of the Texhibition Istanbul Fabric, Yarn, and Textile Accessories Fair, held at the Istanbul Expo Center (IFM) from September 11-13, Trade Minister Ömer Bolat addressed some of the concerns facing the industry. He noted that manufacturers had voiced strong complaints regarding irregular import practices that have led to unfair competition.
“In the past 15 months, we at the Ministry of Trade have resolved a large number of these issues through our General Directorate of Export and Import,” Bolat said. He also highlighted the increase in Eximbank resources and rediscount credits, which have been expanded tenfold, alongside a reduction in the foreign exchange requirement from 80% to 30%.
Growth of Turkish Brands in Textiles and Garments
Bolat underscored the government’s commitment to supporting the textile and garment sectors, highlighting their strategic importance to Türkiye’s economy. “Turkish brands will continue to grow in both textiles and garments,” he said, emphasizing that state support, innovation, and branding would allow manufacturers to produce higher-priced, more profitable products in the global market.
The Minister also announced a support package of 10 million liras per company, providing up to 50% grant assistance for companies initiating green transformation efforts. These companies will also be eligible for green transformation financing packages from the Ministry of Industry and Technology and Eximbank.
Efforts to Reduce Costs and Boost Exports
Bolat further expressed the government’s dedication to improving access to financing and reducing costs, particularly in labor-intensive industries. Despite the challenges, the textile sector has continued to thrive, with exports reaching $21.2 billion in the first eight months of 2023. He concluded by noting that the factory output and export trends have remained strong, showing resilience amidst adversity.
