“We Want to Grow in the Russian and US Markets in 2025”
Export projections for 2024 in the fashion industry, which is the locomotive of exports and employment, did not hold due to the recession in Europe, the largest export market, and the high inflation and low exchange rate process that the Turkish economy is going through. Chairman of Aegean Ready-to-Wear and Apparel Exporters’ Association (EHKIB), Burak Sertbaş said; “We aim to carry out intensive foreign market activity in order to compensate for our export loss.”
Sharing that there will be a 7% decrease in Turkiye’s ready-to-wear exports in 2024, falling from 19.2 billion dollars to 17.9 billion dollars, Turkish Exporters Assembly Sectors Council Member and Aegean Ready-to-Wear and Apparel Exporters’ Association Chairman Burak Sertbaş said: “2024 was quite difficult for ready-made garment exporters due to the economic contraction experienced all over the world, regional wars, high inflation in Turkiye, the exchange rate not increasing in proportion to inflation, increasing labor/raw material prices, and the contraction in the domestic market. In our estimates at the beginning of the year, we expected the recovery to be in the last quarter of the year. However, as a result of the recession in our main market Europe lasting longer than expected, we had to postpone our recovery expectations to early 2026. Frankly, we are currently looking for orders from the post-pandemic opening period. The sector is in a recession. I hope we will not have to talk about our expectations being postponed to 2027 next year.”
Sertbaş spoke at the 2024 financial general assembly meeting of the Aegean Ready-to-Wear and Apparel Exporters’ Association held at the Aegean Exporters’ Association. Stating that they, as EHKİB, increased their exports slightly compared to last year, Sertbaş shared that they made 1 billion 388 million dollars of exports, an increase of 4% in dollar terms. Sertbaş said; “Although we managed to maintain our total exports, profitability in the sector decreased due to our increasing costs.”
Chairman Sertbaş, who also provided information about the projects they will carry out in 2025, said, “We aim to carry out intensive foreign market activity in order to compensate for our export loss. We want to diversify our markets by opening up to regions outside of our traditional markets. In this context, we have started the necessary work and contacts to organize a sectoral trade delegation to Russia in October and to the USA in November.”
Speaking about the possible effects of the tariffs announced by US President Donald Trump on the ready-to-wear and garment sectors, Sertbaş said: “US President Donald Trump has announced new additional tariff to be applied to many countries, especially China. Turkiye is among the countries that will be subject to a 10% tariff. The new tariff rates that the US will apply to imports will significantly affect existing suppliers of knitted and woven clothing. High additional tariffs were imposed on the top six countries from which the US imports knitwear. China was taxed 54%, Vietnam 46%, Cambodia 49%, Bangladesh 37%, India 26% and Indonesia 32%. Thailand, Malaysia, Pakistan and Sri Lanka also faced high taxes. A 10% tax was imposed on Egypt and a 20% tax was imposed on Jordan, which are located in our region and export duty-free to the USA. It is clear that imposing additional tariff above the standard rate on the products of Far Eastern countries with which we compete in the US market will make the prices of our country’s products much more competitive. I think we can take some of China’s share in the US market. However, this time, Far Eastern countries will enter into a tougher competition with us in the European market. Although we seem to have an advantage in the short term, we will experience and see what kind of a picture will emerge in the long term.”
While the 2025 work program of the Aegean Ready-to-Wear and Apparel Exporters’ Association was accepted at the general assembly, the 2025 budget was set at 62 million 850 thousand TL.
