Textile Imports came to life again in 2012

Textile sector’s imports of raw materials other than machines; fiber, yarn and processed and semi-processed fabrics are listed as the major products. According to data from the Ministry of Economy, during the 2010-2011 period, the dependence of Turkish manufacturing industry on imported intermediate goods increased from 40% to 43%. Taking a closer look, it is found that textile industry depended on imported intermediate goods by 43 percent, apparel sector by 19 per cent, and leather and leather products sectors by 30 percent.

Again, according to the Ministry of Economy, USD 1 textile import corresponds to USD 2.1 export; USD 1 apparel import corresponds to USD 4.1 export. In 2011, textile sector performed USD 11.5 billion export corresponding to USD 10.8 billion import and achieved a foreign trade surplus of USD 0.7 billion. However, this foreign trade surplus is noted to have been in a constant downward trend for years. In 2011, apparel sector performed USD 13.53 billion export corresponding to USD 2.96 billion import and increased the foreign trade surplus to USD 10.57 billion. Therefore, the foreign trade surplus of it increased from 9 percent to 15 percent.

2011 was a year of break in textile imports. As a result of the applications to the Ministry of Economy filed by the domestic textile and apparel manufacturers, with regard to Safeguard Measures on Imports Notice 2011/1 and 2011/2 and in specific Customs Tariff Statistics Positions, an investigation was launched for textile and apparel products in January 2011. The increase in import rates more than textile and apparel rates was instrumental in this process. In January to July 2011, imports in the field of textile and apparel reached USD 3.4 million, one of the highest numbers.

With the prediction that in case no measure was taken, the domestic sector would shrink, on 09/15/2011 the countervailing duty was decided to be imposed on apparel by 17-30 per cent and on fabric by 11-20 per cent with No. 2011/2203 Supplementary Decree for the Import Regime Decree Published in the Official Gazette No. 28 055. With the countervailing duties covering 54 items of imported products, decrease in imports was obtained in the second half of 2011.

In July-August 2011 period when the countervailing duty was implemented, the value of imports fell to USD 1.3 million. Namely, imports were reduced by more than 50 per cent in a short period of 6 months. However, considering the first half of 2012, imports are seen to have tended to increase and reached USD 1.7 million compared to the last half of 2011. Given this situation, the sector cannot give up imports easily and the commitment to exports still continues.

Fiber is the most important item in Turkey’s imports of textile raw materials. In January-November period of 2011, while the value of fiber imports reached USD 3.1 billion, the imports amounted to 1 million tons. In 2011, fiber imports were followed by the following items respectively; USD 2.8 billion of yarn, USD 2.3 billion of woven fabric, USD 488.7 million of knitted fabric, USD 330.7 million of nonwovens, wadding and felt. The value of textile imports in other items amounted to USD 567.2 million.

When we look at the textile importing countries, we see clearly that China was in the lead with USD 2.195 million in 2011. China was followed by USA, India, Indonesia and Italy. While China was ranked first in apparel imports with USD 1.093 million; it was followed by Bangladesh, India, Italy, and Vietnam. According to the 2010-2011 exchange values, Turkey continued by increasing traditional intake from these markets.

Import Measures Losing Effect in 2012

Having been very effective in the second half of 2011, the additional tax is seen to have created a weaker effect on imports in the second half of 2012. Although textile imports during the period January to June 2012 was well below the same period of 2011, they increased above the second half of 2011. Textile imports during the period January to June 2012 amounted to USD 7.1 million. When the first 3 months of 2012 is compared with the same period of 2011, the decrease in imports can be summarized as follows: 20 percent silk, 97 percent cotton, wadding-felt, nonwovens and special yarns 34 per cent, 74 per cent knitted products.

According to official data, in January-May period of 2012, textile imports decreased by 25.8% percent compared with the same period of 2011, and amounted to USD 3.7 billion. In this decreasing import table, fibers amounted to 32.1 per cent, yarns 33.5 per cent, woven fabrics 21 per cent, knitted fabrics 3 percent and nonwoven products 3.1 percent. In this 5-month period, textile and raw material imports decreased in both quantity and value. While value-based decrease was 10.6 percent, impairment in USD was as high as 25.8 percent.