Turkey apparel exports only rose 3.8% in November to US$888.80 million while increasing by 24.6% in the first eleven months of the year at US$10.52 billion, according to just released data by the Turkish Exporters Assembly (TI.. .
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Textile exports were up 3% at US$306 million in November, rising 19.9% in the January-November period at US$3.30 billion. .
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Total Turkish exports also slowed down in the past month, only up 9.9% in November at US$4.04 billion while growing by more than 30% in the January-November period at US$43.04 billion. .
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The slowdown in textile and apparel exports in November was confirmed by various industry associations. Members of Istanbul Textile and Apparel Exporters Association (IKTIB) announced a 5.7% increase in exports in November at US$957 million. Shipments rose 24.8% in the first eleven months of the year at US$10.86 billion.
Exports of woven apparel already slowed down in September when they were only up 5% at US$294 million, according to official data. Knitted apparel exports still rose 27% at the same time at US$451 million. .
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Shipments of man-made filaments and filament textiles (chapter 54) still increased by 36% in September while shipments of cotton and cotton textiles (HS 52) declined 2%. .
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The slowdown in orders may not be explained by the strength in the Turkish lira which actually fell against both the US dollar and the Euro in the past three months. .
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Lower demand from EU and US markets and a rise in cotton prices actually put an end to Turkey dramatic recovery this year. .
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The country benefited from a return to political stability after Prime Minister Erdogan and its Justice Party accessed to power a year ago. .
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Inflation dramatically fell and returned to between 18% and 19% while GDP growth will reach 5% this year. The lira is expected further declining, therefore boosting sales to foreign countries. .
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Any recovery in EU retail sales would benefit Turkish exports in the short term. In the longer term, Turkish exporters fear a dramatic surge of China exports on their traditional EU markets.Turkey will continue benefiting from its tax-free entry on EU territory after all quotas will have been removed. The duty-free status under the customs union will not be enough to limit China low-cost offensive, textile and apparel industries expect. .
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Turkish exporters already applauded US decision to re-impose quotas on certain textile and apparel products from China. .
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They urgently asked the EU to take similar steps. Brussels seems more interested in getting a better access on China textile markets than imposing new barriers on China exports, they said however. .
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Turkish textile industry also fear a surge in direct textile imports from China after 2004. Under pressure from Brussels, Ankara imposed quotas on its textile and apparel imports in the past decade, in exchange for benefiting from the customs union with the European Union. .
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Turkey will be forced removing these barriers after 2004, as any WTO member. .
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Cotton textile imports already surged this year in category 52, up 23% in the January-September period and even rising 55% in September. .
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Under pressure from their customers in the EU and the United States, Turkey apparel exporters increasingly prefer importing low-cost fabrics from Asian countries. .
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Textile exports from Italy or the United States would also suffer from competition with China on Turkish market, as a result.
Date:12/4/2003
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