While talking about their successful year ahead in 2024 notwithstanding difficulties experienced as the textile and raw materials sector in Turkey, Ahmet Öksüz, Chairman of the Board of Istanbul Textile and Raw Materials Exporters’ Association (İTHİB), said; “Despite the global contraction and increasing costs, we have shown our strength by maintaining our market share. However, we know that the key to the future is hidden in branding. On the other hand, we want to strengthen our place in giant markets like the USA and focus on new markets. In this context, it is also of great importance to make a preferential trading area with the USA that will cover the textile sector. We also follow the developments around us closely. The outlook is encouraging in particular in Syria. In this context, we believe that projects can be developed in Syria that will reduce our production costs.’’ Ahmet Öksüz, who stated that while aiming to make a difference on the global stage with projects such as Texhibition Istanbul and bringing the sector to a sustainable structure, underlined their core purpose to increase the brand power of Turkish textiles and gain a stronger position in world trade.
The textile and raw materials sector closed 2024 with $11.5 billion in exports. The sector, which experienced a 1.3 percent loss compared to the previous year, had exported $11.6 billion in 2023. The developments in the textile and raw materials sector in 2024 and expectations for 2025 were shared at the meeting hosted by Ahmet Öksüz, Chairman of the Board of Directors of the Istanbul Textile and Raw Materials Exporters' Association (İTHİB). Ahmet Öksüz, who made evaluations at the meeting held with the participation of İTHİB Board of Directors Vice Presidents M. Fatih Bilici and Ali Sami Aydın and İTHİB Board Member Sultan Tepe, said, “As a result of the earthquake disaster in 2023, the contraction in global trade, high inflation and high increases in production costs, 2024 was a difficult year for our sector, as it was for many other sectors. However, the main reason behind the problems experienced in 2024 was the global recession. There were large percentage of losses in the world's largest textile markets such as the EU and the US. Despite this loss, we are happy that we were able to maintain our market share in these regions. We have set a target of 12 billion dollars as a sector for 2025.”
''We Focused on Keeping the Wheels Turning’’
Ahmet Öksüz, who stated that while there was an increase in exports in terms of quantity, there was a decrease of 1.3 percent in exports, said, “In 2024, we aimed to keep the wheels turning rather than making a profit as a sector. We need to increase our export prices by 10-15 percent in 2025, but the reality of the competition in world markets do not allow this. At this point, we should not forget that Turkey is a strong supplier. We anticipate that the losses can be compensated with the positive influence of the global demand which will reveal its impact in the second half of the year.” Ahmet Öksüz, who said that there were serious increases in costs in terms of foreign currency, stated that the sector could not reflect these cost increases in its prices, especially due to the effect of the contraction experienced on a global scale, and said, “In addition to the contraction in global demand, our exports did not reach the desired level due to the increase in production costs in the domestic market, the increase in the foreign exchange rate and for the reasons for falling behind the inflation.”
''We Will Make a Difference in the US''
Ahmet Öksüz, who made critical statements about Turkey’s current status in the textile and raw materials sector and its future goals, drew attention to the fact that Turkey could increase its power in the US market and said the following; “The US is a very large market and we, as Turkey, are the 5th largest supplier in the world. We hope that negotiations with the US will resume under the leadership of our Ministry of Trade. Because the sectors that the US demands the most from Turkey are textile and ready-made clothing. Their own domestic production is limited, and the country meet their demand largely through imports. Our exports to the US currently exceed 780 million dollars in textiles and we are the 8th largest supplier in the US. We can increase this even further with the preferential trading area that will include the textile sector. On the other hand, our competitive power has slightly decreased due to reasons such as cost increases and the horizontal course of foreign exchange. Despite this, one in every four people employed in the manufacturing industry works in the textile sector. This is a very important rate. The number of employment in textile and ready-to-wear, which was 1.2 million in October 2022, decreased to 966 thousand as of October 2024. We hope for a recovery in 2025. The figures got a little better in the last quarter. We expect demand to be a little better globally in 2025. We have started to see this in Europe. On the other hand, the movement of foreign exchange rates will also support costs positively. The impact of labor on production costs increased by 30 percent. However, we cannot reflect the increase in prices.”
''We Can Achieve a Resilient Structure''
Ahmet Öksüz, who emphasized that Turkey will continue to maintain its leading position in the textile sector and show a strong performance in employment, export and added value production, pointed out the challenging process inwhich the country is going through where manufacturer costs are constantly on the rise and production conditions are constantly getting harder, Ahmet Öksüz said, “We believe that Turkey’s biggest starting point is branding. For this reason, we should carry out structural reforms by cooperating with the relevant ministries and sectors. Thus, our country can reach a stronger position in branded exports. We believe that if we can strengthen our branding efforts, we can have a more resilient structure against future economic challenges. Our primary goals include turning to technical textiles and producing products with high added value. We need to be better at branding. Despite the size of our sector, we have shortcomings in this regard.”
''We Made a Difference with Texhibition''
Ahmet Öksüz, while underlining their prediction on textile and ready-to-wear sectors to close 2025 with a production volume of over 80 billion dollars, said, “What is important is to keep our companies alive with valuable projects for our country and exports. For this purpose, we continue to work with perseverance and determination in line with our sustainable export targets. In this context, our ‘Texhibition Istanbul’ fair has become the most important source of motivation for our sector during this difficult process. While the world’s largest textile fairs tend to shrink and experience losses of 30 percent; Our Texhibition Istanbul fair has become the largest textile fair in Europe with over 500 qualified exhibitors and over 20 thousand visitors. We aim to achieve the export targets of our textile sector with our Texhibition Istanbul fair, which is the pride of the Turkish textile sector, our national participation organizations in international fairs and our trade delegations to distant markets.”
Attention to Imports Under 'DİR'
Ahmet Öksüz, whom underlining that while attaching great importance to preventing ‘unfair competition in imports’ as the textile sector, said, “Unfair competition directly affects the production, employment, exports and the Turkish economy of our companies. Increasing Additional Customs Duties at certain rates does not bring any benefit on its own. Because, the Inward Processing Regime is exempt from Additional Customs Duties in imports made from countries with which Turkey has a Free Trade Agreement and from European Union countries. While the Inward Processing Regime (DİR) Share in imports in Turkey in general is decreasing, this share is increasing in the textile and raw materials sector. In order to get results from the increasing Additional Customs Duties (İGV), the Inward Processing Regime needs to be disciplined. Because imports under DİR can reach 50 percent in our yarn sector. When we add the Free Trade Agreement and EU countries to this rate, the rate reaches 60 percent. More than 50 percent of imports are already made tax-free for various reasons. DIR, Free Trade Agreement and imports from EU that are exempt from Additional Customs Duties; not only causes a significant tax loss for the textile sector but also for the Turkish economy. Sample application should be implemented for imports made within the scope of DIR. We say that only samples should be taken and put in the file. At least what is imported should be included in the file. There is a gap for products brought within the scope of DIR. This gap should be closed.”
