Turkey Hikes Duty By 30-100% On Textile Product Imports

The Turkish government has hiked tariffs by 30-100 percent on several textile imports in a bid to support the local textile industry that had appealed to restrict the increasing imports of textiles

After the Turkish government increased import duties on textile imports, Turkish garment manufacturers face the prospect of higher manufacturing costs.

Turkey is the third largest exporter of clothing to the EU and this hike may also increase the risk of falling behind their Asian competitors.

The apparel industry anticipates that manufacturers may shutdown factories if their production costs are not as competitive as their Asian rivals, which would lead to job losses in the sector.

“As per Turkish laws, exporters can apply for exemptions from import duties, but exemption process is costly and time-consuming, and in practice does not work for many companies,” DuvaR reported.

The sector was already facing challenges of soaring inflation, reduced demand from export markets as well as an over-valued Lira

According to a garment manufacturer, the price of a Turkish made t-shirt for a European consumer will be 40 percent higher than that of one made in Bangladesh, which is just 15 percent now.

In order to beat the impact of the high import duties, the industry will have to move from production of mass production to value-added garments, because it cannot hope to compete in t-shirt manufacturing.

In 2022, Turkey exported $10.4 billion worth of textiles making it the world’s fifth largest exporter and $21.2 billion in clothing and so is sixth biggest global exporter.

European brands had turned to Turkey during and post COVID-19 pandemic to cut freight costs amid supply disruptions, but a combination of plunging shipping costs and rising domestic inflation dulled its competitive edge.