Is Kemalism still relevant ? - Prof. Dr. Ahmet Taner Kışlalı [ Anadolu .. 30 31 32 33 34 35 36 37 38 39 .. ] Minister of Foreign Affairs of Turkey, Abdullah Gül



Is Kemalism still relevant ? - Prof. Dr. Ahmet Taner Kışlalı [ Anadolu .. 30 31 32 33 34 35 36 37 38 39 .. ] Minister of Foreign Affairs of Turkey, Abdullah Gül


The Turkish textile and apparel industry is ready Haluk Özelçi Permanent Representative  of the Turkish Textile & Apparel  Exporters Association / Brussels      The Turkish Textiles and Apparel Industry is representing; 5,5% of Turkish Gross Domestic  Product, 20,7% of Industrial Production, 22,6% of Manufacturing Industries Output, 21% of Manufacturing Labour Force, 32,2% of the Total Turkish Exports  Earnings in 2003.      The Turkish T/C industry has shown a remarkable achievement during the last decade. It has demonstrated a steady 9% annual growth rate during the past 10 years while the Turkish economy has only grown 3% on average per year. The growth rate of the textile industry during the past decade was around 9 % annually. Within the same period,  the growth rate for the Turkish apparel industry was % 8.1 per year.       It is a fact that the Turkish T/C industry has more than doubled the average growth rate of the Turkish economy during the last 10 years. This is a clear indication that the  textile and clothing industry has always been the driving force of the Turkish economy.       Turkish apparel exports has reached to 11 billion US $ in 2003 whereas textile exports achieved a performance of 3,9 billion US $ during the same period. The Turkish T/C imports in  2003 reached up to  5,04 billion $ in which the share of the textiles is 4,6 billion $ (including the imports relized under the inward processing regime). In 2003, the apparel imports were 405 million US $.      Turkish textile and apparel exports decreased in 1999 respecticely by % 2.8 and % 6.5 because of the low demand from main import markets in the world as a result of the economic crisis in East Asia (in 1997) and Russia (in 1998).       Another factor which has negatively affected the exports of the textile and apparel sectors in 1999 is the increasing production cost in Turkey depending on  the difficulties in the Turkish economy.      In 2000, the exports increased marginally. The apparel exports only  reached to 7.195 billion $ by 0.69 percent and textile exports to 2.8 billion $ by 0.97 percent. In 2001, the apparel exports have increased to 7.5 billion $ by 1.1 percent and textile exports to 2.9 billion $ by 7,6 percent. By the year of 2002, Turkish textile and apparel export has gained a positive trend and apparel export has increased by 21.3 per cent reaching to 8,9 billion $ and textile export by 3 percent to 3,2 billion $. In 2003, Turkish textile and apparel export has continued its ascending trend. Apparel export has increased by 24.6 percent reaching to 11,1 billion $ and textile export by 22,5 to 3,9 billion $.      Turkey is a major cotton growing country. It ranks among the 6 biggest cotton producers of the world. (China, USA, India, Pakistan and Uzbekistan)       In 1990 Turkish yarn production was around  739.000 tons out of which. 515.000 tons were cotton yarn, while 96.000 tons and 128.000 tons were wool yarn and synthetic yarn respectively. Until 2003, Turkish yarn production increased by 263,5% and reached approximately to 1.948.000 tons. Cotton yarn production increased to 1.164.000 tons while that of wool to 143.000 tons and synthetic yarn to 637.000 tons.       The situation of Turkish woven fabric market is similar to that of the yarn market. In 2003, total Turkish woven fabric production is expected to reach the level 2 billion 653 million meters with a total increase of 42,7% between 1990-2003. Woven cotton fabric production increased to 1.988.000.000 meters, and woven synthetic fabric production to 594 million meters. On the other hand, wool fabric production decreased to 55 million meters.
     The textile and apparel industry always scored higher capacity utilisation ratio than the average Turkish manufacturing industry. The capacity utilisation ratios were 79,2 percent for textiles, 85,7 percent for ready wear in  2003.      The art of carpet weaving has been a centuries-old tradition in Turkey. There are important carpet weaving centers in Turkey whose names reveal the value of their carpets. Each region produces its own unique style and design. The most well known of these include Hereke, Kula, Bünyan, Kayseri, Yahyalı, Uşak, Milas, Isparta, Yağcıbedir, Kars and Gördes Carpets. In 2003, Turkish carpet production is estimated to be 57.5 million meters including 2,3 million m2 of hand made carpets, 15,3 million m2 of machine made carpets and 39,9 million m2 of tufted, felt carpets and kilims.
     Turkish carpet exports has reached to 380 million US $ in 2003, of which the shares of hand made carpets is 18,7% and machine-made carpets is 81,3%. Saudi Arabia took the first place in our total carpet exports with a share of 11,9%. Almost a quarter of the Turkish carpet exports are targeted to the European Union and Germany is the second leading market with a share of 8,2% in total Turkish carpet exports.     With the above mentioned export performance of the textiles and apparel industry in 2002, Turkey became 10th among the world largest textile exporting countries with a share of 2.8% in the world textile exports and a share of 4.0% in the world apparel exports, Turkey enjoyed the 4th rank among apparel exporters in the world.   The main export market for Turkish textile and apparel goods is the European Union. For the year of the 2002, Turkey is the; second largest apparel supplier of the EU following China with a share of 13.7% second biggest textile supplier of the EU with a share of 8,7%.      In 2002 Turkey is the; 11th apparel supplier of the USA with a share of 2.2% and also 11th textile supplier of the USA with a share 2,1%.      According to figures of 2003, European Union is the biggest and most important market for Turkish textile and apparel, the EU's share in Turkey's total apparel export  is 73,1% (8.1 billion US $) and its share in total textile export is 37,4% (1.46 billion US $) in 2003.      The USA is the second largest market for Turkish textile and apparel, after the EU. However, export figures in 2003 has demonstrated a decrease in volume terms (-3.9%) and an increase in value terms (3,0%), and reached to 1.7 billion US $.      As one of the largest textile and apparel producer and exporter of the world, Turkey imports considerable amount of textile machinery. In the past 10 years prior to 1993, total Turkish textile machinery imports reached the level of 5 billion 300 million US $. There are 3 leaps in Turkish textile machinery imports: first one in 1984, second one in 1986 and third one in 1990. In 1995 Turkish textile machinery imports exceeded easily the level 1,5 billion US $ due to the preparation of the industry for the Customs Union with EU. As of 2003, Turkey imported textile machineries worth of 2,3 US $.      The new investments of Turkish textile and apparel industry are directed towards new areas in Turkey. Until last years, the biggest investments were realised in the Marmara Region, around İstanbul and Bursa. During the last years, 56% of the new spinning investments took place in  GAP (Southeast Anatolia Project) Region. GAP is a project which is composed of dams and irrigation tunnels. It is anticipated that Turkish raw cotton production will more than double once the project becomes operational. That is one of the main reasons for which industrialists prefer to invest in GAP Region. Another reason is the relatively cheap labour cost of the region if compared with other more developed regions of  Turkey. GAP Region is followed by Marmara Region which is traditional industrial base of Turkey.      Turkish investments can be closely followed through the so-called investment permissions granted by the Undersecretariat of Treasury. These investment permissions enable entrepreneurs to import duty free machinery, to be exempted from VAT and other import and bank taxes and charges.      In 1995, Turkish textile and apparel industry had a large share (63% according to the number of permissions) of the total investment permissions granted in Turkey. Although this figure decreased to 34% in 1996 and 38% in 1997, 15% in 1999. And It has begun to increase by 2000 and reached to 29,7% in 2003.      One of the factors influencing the competitive force of any textile and apparel industry is the labour cost. Werner International USA, studies textile industry labour costs in different countries for years. The latest version of this study in autumn of 2002, illustrates that Turkish textile industry labour cost ranks between the expensive European countries and cheap East Asian countries.      In 2002, hourly labour cost of Turkish textile industry has been 2.13 US $ per hour. It is fact that textile labour cost in Turkey is 5 times higher than  in most of the Asian countries. Taking into account the productivity of Turkish labour force which is equal to that of Portugal and Greece, it is still profitable to produce in Turkey.      Turkey has been the cradle of textile in the world, where textiles art flourished as a tradition with the harmonisation of many cultures and civilisation in its history.      The average export prices of Turkey indicate that Turkish textile and apparel industry managed an increased performance in export prices. This performance is the result of the approach to produce value added high quality goods. Comparison of the EU import prices gives a good example of the Turkish textile and apparel industry's performance in quality on the basis of price. According to data, Turkish exports are much higher than average import prices of the EU. But one has to borne in mind that, besides the geographic proximity of Turkey to EU, the good trade relations between the EU importers and the Turkish exporters that goes back to several decades is another reason which compensates the price difference. On the other hand, supplying the quality within the shortest time along with excellent service has some advantages which are not directly related with cost but affect the competitiveness.
     Turkish textile and apparel industry is ready to face the competition in the world markets and the challenges of 2005 syndrome. The motto of the Turkish industry is "free but fair trade". The competitiveness of the industry is high enough to face any competition coming from a supplier country as far as it is compatible with the international trade rules.q