Since ready wear’s share within total Turkish exports is 21.6 %, such stagnation is becoming a major concern both for the exporters and the Turkish planners. .
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In the textile sector, the problem is more obvious: only $8.6 billion was exported within the first 8 months of this year, representing a comparable drop of 25 % over the last year. .
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Reason for the above figures are said to be cheap Chinese and Indian ready wear eating in to Turkish exports share on the global level, and fast too! .
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Market pressure this year has been so tough that some Turkish exporters, under threat of losing valuable accounts developed over three to five years, made distress selling of their stock at a loss to maintain a toe-hold in the global market. Tarik Bozbey, President, Chamber of Turkish Ready Wear Exporters, Union of Mediterranean Exporters (AKIB) speaking about the figures said, “We are especially hurting from the textile subsidy the Chinese state is providing for the Chinese exporters. A pair of pajamas weighs about 500 grams. You need to use 1 kg of cotton to manufacture that pair. One kilogram of cotton costs $ 1.5 dollars. But China sells the pajamas for only 85 cents. That’s why the Europeans prefer Chinese and Indian ready wear over ours.” .
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Bozbey added that the ready wear sector needs urgent support to stem the rot on the exports front. .
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“Perhaps it is time for Turkey to shift from manufacturing ready wear products to generating the software… that drive the computerized machines… that Chinese and Indians use to manufacture the products… that they subsidize. However, I’m afraid China and India might be ahead of Turkey in that sector as well.” “This reminds me of a conversation I had a couple of years ago with a young and patriotic Turkish engineer regarding the pirated software sold back then on the streets of major Turkish cities (how about MS Office Suite, complete with Access DB, for only $5?),” he said. .
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The young engineer defended the practice as some sort of global wealth redistribution exercise in “getting back even with the imperialists.” If Robin Hood lived today, he would take it from the Microsoft and distribute it to the poor of the world… sort of argument.” .
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He added, “When I reminded him that it was actually a shot in the foot of the local Turkish software industry (because no Turkish engineer would generate code for profit when you can buy the same or better code for $5 on the street) he did not have a plausible reply that would satisfy both his sense of admirable patriotism and the elemental rules of logic.” .
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“I can’t help but thinking if that kind of shortcut in “software acquisition” may now end up leaving Turkey exposed as its market share in ready wear exports draines away, with little to replace it within the same sector. I hope I am wrong.” .
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In the ultimate analysis, it is said what goes round comes back to rule and roost.
Date:10/3/2004
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