Representing 4.43 per cent of the total world trade, the Turkish textile industry emerged as the fifth largest exporter in 2020. Its operations were mainly affected by the war as many orders of both textile and ready-to-wear garments are cancelled. Seref Fayat, President, TOBB Turkey Garment and Apparel Industry Councils Assembly points out, orders worth approximately $200 million were cancelled including goods already produced.

Russia, Ukraine important export destinations

In the first two months of 2022, Turkish ready-to-wear and apparel industry exported goods worth $3.4 billion. Data from the Turkish Exporters Assembly (TIM) shows, ready-to-wear and apparel exports to Russia amounted to $286.5 million in 2021 while exports of textiles and raw materials amounted to an average of $298 million. Russia emerged the second largest export destination after Germany with a 7.7 per cent share in 2021, points out Mustafa Senocak, President, Istanbul Leather and Leather Products Exporters’ Association (IDMIB).

Turkey exported approximately $173 million worth of ready-to-wear and apparels, $115 million worth of textiles and raw materials to Ukraine in 2021. It signed an FTA with Ukraine during President Recep Tayyip Erdo?an’s visit to the country on February 3, 2022.

Ukraine poses strong competition to Turkey

Ukraine exports around 80 per cent of its textile products. With 2,500 textile production workshops/factories, the country can become a strong competitor to Turkey. It has over 500 fabric production factories employing more than 16,000 people. All major fashion brands including Adidas, Hugo Boss, Marks & Spencer, Tommy Hilfiger, Zara have production centers in Ukraine. The first three product groups that Turkey imports the most from Ukraine are light rubberized knitted fabrics, knitted sweaters and non-knitted men’s suits, according to the 2019 reports.

Russia introduces new policies to boost production

In 2021, Turkey’s foreign trade with Russia was worth $32.5 billion, of which products worth $27.5 billion were imported from Russia, primarily natural gas. In 2020, Russia exported ready-to-wear garments worth approximately $30.5 billion. Of this, women’s clothing made up the biggest part of $16.6 billion while the rest belonged to men’s and children’s clothing. The most imported product groups included non-knitted women’s suits, women’s non-knitted coats, and knitted sweaters.

To boost textile and apparel production, Russia has introduced new policies. The country has around 40 large and 2,000 medium-sized textile enterprises in Ivanova. Moreover four Turkish companies operate in the region. However, employment in Russia’s textile sector has declined to 85.2,000 from 749,000 in 2000. The ongoing war has made Turkey’s textile and clothing market uncertain with manufacturers seeking to diversify with minimum losses.

Source: FW