Ahmet Fikret Kileci, Chairman of Southeast Anatolian Exporters’ Association evaluated the development of the textile industry for the year and indicated that they are the second association in terms of textile and raw material exports.
“Exports realized to 192 countries”
Can you evaluate 2019 for the Southeast Anatolian Exporters’ Association?
I regard 2019 as a year of change and transformation both for our country and region. The digital transformation strategy implemented by the government for export policies has started to reveal its effects. The innovative projects conducted by the Turkish Exporters’ Council and Associations are the proof. As the Southeast Anatolian Exporters’ Association, we do our best to channel our facilities for this transformation movement.
If we evaluate 2019 in terms of the export figures of our associations, we can say that in the first 10 months of 2019, an export valuing 8.175.705 USD has been conducted to 192 countries from Southeast Anatolia Region with an increase of 5,4% compared to the previous year. The total share of our region within Turkey’s total exports is by 5,4%. 32,5% of the total exports for 2019 January-November period is constituted by our Textile and Raw Materials Association.
“Our Region Will Always Continue to Move Exports Forward”
What can you share about export figures?
In 2018, an export register of 1 Billion 800 Million dollars is found for Textile on behalf of Southeast Anatolia Exporters Association. For 2019 January-November period, a total of 1,6 Billion USD exports have been conducted by our Textile and Raw Material Association. Given with that figures, we are the second association in terms of the largest Textile and Raw Materials export in Turkey. When we have a look for the city-wise textile exports distribution, Gaziantep being the leader in our region ranks the second in Turkey. Our region; mainly with Gaziantep being the heart of the textile industry and exports along with other cities, will constantly continue to move exports forward with the help of its experience.
What were the main problems experienced by the textile exporters in 2019?
One of our most fundamental problems in 2019 was the fact that the textile industry is not adequately protected. Especially, the products manufactured by us loses value against increasing imports. For instance, cotton yarn and artificial yarn are facing import pressure. However, our exporters were comforted by increasing import taxes.
“Duty-free Products Challenge Local Manufacturers and Exporters”
Another issue is the fact that the textile industry is regarded as an industry to make compromise in Free Trade Agreements. As a result of the Free Trade Agreement made with the related country, our local manufacturers and exporters are challenged due to duty-free products. Excluding our industry from the Free Trade Agreements will have a great contribution to the textile exporters.
“Investments Should be Encouraged”
The high interest rates applied by the banks are contributing to production, employment and investment by enabling the investor to make use of their money in the banks. It is really hard to have investment decision given that high interest rates for the textile and raw materials industry having high installment costs. The high interest rates applied by banks should be prevented with the public authority and the investments should be encouraged.
What kind of precautions were taken for the issues?
As I have previously mentioned, the import taxes applied for some textile products have been increased. On the other hand, no solution has been found for the problems encountered in 2019. Our expectation is to have immediate solutions for the aforementioned problems in 2020 and consequently comforting our exporters.
Meanwhile, there have been some revisions by conducting investments in specific fields in our region. New plants for cotton yarn, polyester and mixed yarns have been set up in 2019 in the region. These new modern plants will strengthen our infrastructure by providing quality yarn and fabric. There are also apparel investments in our region. We see revisions in printing, dyeing and finishing departments at the plants. In the forthcoming period, I believe that these investments will increase our production capacity and thus we will be able to reach more potential customers in our target markets.
What can you say about the export for 2018 and 2019?
The textile exports conducted by our association in 2019 (the first 11 months) was realized as 1 590 Billion USD with an increase of 4% compared to 2018. In addition, the total exports conducted by our association in 2019’s first 11 months was realized as 2 660 Billion USD. Our association’s share in Turkey’s textile export for 2019 in the first 11 months was 21,7% and the total exports conducted from our region is 33%.
“We expect an increase of 10% and over”
What are your expectations for the year 2020?
We expect an increase of 10% or over for Gaziantep, in the forthcoming 10 years in accordance with the city’s potential. However, there are two important issues which can decrease our export’s increase rate. One of them is Iraq, being the country where our exports considerably decreased. The high duty taxes applied by Iraq to Turkey and some bans applied on several products narrow down our markets in that country. The other one, is the financial access problem experienced by the exports. Our SMEs have problem to find low-interest loans. Even Eximbank provides a financial need at a certain level, there are still long paths to go.
At the worst scenario, even not all the problems are solved, we believe that in the forthcoming 10 years there will be an increase of at least 6-7 %.
“Manufacturers and Exporters should invest on Qualified Human Force”
Is there anything else you want to add?
Lastly, I would like to say a few things as advice. Our exporters should prioritize value-added production and exports. We should have creativity, innovation and R&D concepts. It is obvious that the competitiveness will not be sustainable in the middle and long term by reducing costs. Fields that remains undiscovered should be discovered in creative textile industry and we should step forward with designs appealing the world market. Manufacturers and exporters should invest on human force and provide value-added products to the whole world by digitalizing the export processes.
“The Key Point is to Equip our Exporters with Technology”
As Gaziantep Exporters Association, we would like to state a point that we keep underlying in every platform. The key point for increasing our exports is to equip our exporters with technology and train them. Our Association conducts various training activities and information meetings to encourage micro exports and creating qualified human infrastructure in the region in terms of digitalization.
