{"id":16461,"date":"2016-08-01T10:51:56","date_gmt":"2016-08-01T07:51:56","guid":{"rendered":"http:\/\/localhost\/textilegence\/possible-impacts-of-brexit-on-turkish-textile-and-ready-wear-industry\/"},"modified":"2018-04-05T14:54:16","modified_gmt":"2018-04-05T11:54:16","slug":"possible-impacts-of-brexit-on-turkish-textile-and-ready-wear-industry","status":"publish","type":"post","link":"https:\/\/www.textilegence.com\/en\/possible-impacts-of-brexit-on-turkish-textile-and-ready-wear-industry\/","title":{"rendered":"Possible Impacts of Brexit on Turkish Textile and Ready-Wear Industry"},"content":{"rendered":"
\"Possible
Possible Impacts of Brexit on Turkish Textile and Ready-Wear Industry<\/figcaption><\/figure>\n

The UK has USD16 billion foreign trade volume with Turkey while the country has entered a new era following Brexit vote. Exports emphasize that rapid measures should be considered for the new term.<\/strong><\/em><\/p>\n

The UK (Consists of England, Scotland, Wales and North Ireland, but shortly called England) shook the balances with Brexit vote as the country is the fifth largest economy of the global market and the second of the European Union after Germany. This leave vote, shortly named as Brexit, will not only result in crucial changes for the UK and its economy (as a flexible part of the EU) but also for the whole region. The leaving process is expected to take 2-3 years and it is anticipated to have a major impact on Turkish economy. As an important partner in terms of both export and imports, The UK counts among crucial markets of textiles and ready-wear industries. Industry experts emphasize that rapid new trade regulations should be developed with the UK as it is set to exit Tariff Union once the Brexit process is completed.<\/p>\n

The UK had a domestic income of USD2.849 trillion in 2015, while the per capita income was USD40.958. Service industry counts for 78% in the country\u2019s economy. Having a strong finance system, the UK has aviation, drug industry, automotive and petroleum among crucial economy titles. Having 2.5 growth rate, the country has a population of around 65 million. London is already the largest city of the European Union in terms of economic size.<\/p>\n

The UK obtain an export income of USD503 billion during 2014 as the largest 9th<\/sup> exporter of the world. The country\u2019s major export destinations were Germany, China, the Netherlands, Switzerland and France. In the same period, it was the largest 4th<\/sup> importer of the world with USD802 billion. The major import markets were Germany, China, the Netherlands, the US and France. The UK achieved 2.1% growth in the first quarter of 2016 and was the fastest economy to grow among G7 nations.<\/p>\n

Recent Figures in Turkey-UK Foreign Trade<\/strong><\/h1>\n

In 2015, the total foreign trade volume between Turkey and the UK was approximately USD16 billion. Turkey has been importing more from the country since 2001. According to 2015 data, exports from Turkey to the UK were USD10.56 billion while imports were around USD5.54 billion. Exports to that country increased 80% in the last decade. Turkey\u2019s total exports to the UK were up to USD3.5 billion.<\/p>\n

Turkey exported textile and ready-wear products, electronic and non-electronic machines, motor vehicles and spares, iron-steel products to the UK, while importing electronic and non-electronic machines, automotive and sub-industry products, pharmacy items, iron-steel products as well as plastic and plastic end products. As an important partner supporting Turkey\u2019s EU membership, the UK is known to have USD1.3 billion investments in Turkey.<\/p>\n

\"Possible
Possible Impacts of Brexit on Turkish Textile and Ready-Wear Industry<\/figcaption><\/figure>\n

UK is the second largest market for ready-wear<\/strong><\/h2>\n

13% of Turkey\u2019s total 2015 ready-wear exports at USD17 billion, were made to the UK out of which USD2.2 million were achieved as income. Thus, the UK was the second largest market for Turkish ready-wear and apparel industry after Germany. The industry\u2019s exports to the UK were registered at USD671 million in January-April 2016. Meanwhile, Turkey imported for only around USD21.8 million from the UK during 2015.<\/p>\n

Textile and raw materials industry exported for USD330 million to the UK in 2015, while the country ranked as the fifth gaining 4% of textile exports. In January-April 2016, exports of textiles to the UK were down by 2.8% to around USD135.5 million. Looking at imports of textile and raw materials from the UK, it was USD76 million during 2015.<\/p>\n

Important textile and ready-wear goods that were exported to the UK during 2015 are; t-shirt, undershirt, other under wear (knitted) at USD286.4 million, woman\/young girl suit, two piece suit, jacket and etc at USD304,7 million, hosiery (knitted) at USD 286.4 million, slipover, sweater, cardigan, vest and etc knitted goods at USD240.9 million, woman\/young girl two piece suit, suit, jacket, pants and etc (knitted) at USD235.1 million, man\/young boy suit, two piece suit, jacket and etc at USD104 million, woman\/young girl blouse, shirt, blouse (knitted) at USD77.1 million, man-made fiber yarn (excluding sew yarn) gross at USD75.5 million, woman\/young girl shirt, blouse and etc at USD65.5 million, bed sheet, table cloth, bathroom and kitchen cloth at USD64.3 million, man-made yarn, monofilament, weaving with cord at USD49.6 million, shirts for man\/young boy at USD46.6 million, tufted carpets, non-tufted floor coating at USD43.220 million.<\/p>\n

Brexit May Create New Opportunities <\/strong><\/h3>\n

\u0130HK\u0130B<\/a> President Hikmet Tanr\u0131verdi said the UK is the second ready-wear market of Turkey following Germany, adding that exports were on a positive path during the first 5 months of 2016. Underlining the UK\u2019s prominent and strong position in industry exports once again, Tanr\u0131verdi evaluated Brexit vote: \u201cBrexit vote will result in lower Sterling and a contraction in the UK economy. Plus, analysts foresee that the country will grow 6% less until 2030 following the exit. Therefore, we will see some negative reflections on trade with England. Nevertheless, we may witness some positive impacts and Brexit may open new opportunity doors for our exports as well.\u201d<\/p>\n

Hikmet Tanr\u0131verdi further commented that Brexit will push the UK out of Tariff Union; and Turkey and the UK should create a new mechanism for foreign trade rapidly.<\/p>\n

Industry Exports May Face Negative Impact<\/strong><\/h4>\n

The UK is an important market for Turkish ready-wear industry<\/a>, according to TGSD President \u015eeref Fayat, as he said the country is the only one for which Turkey records foreign trade surplus. He argued; \u201cA UK leaving Tariff Union and possible duties on our exports will cause very negative affects particularly for ready-wear industry. If the UK does not sign FTA with Turkey once it leaves the EU; we may face a dramatic end-up similar to with the US; to which our export goods are due to 30% duty.\u201d<\/p>\n

Required Measures Should Be Taken Quickly<\/strong><\/h5>\n

BMD<\/a> President Sami Koriyo noted that the UK is among the most important trading partners of Turkey, Two topics are vital for Turkey during Brexit process, he claimed. \u201cWe wish to sustain our gains stemming from the first Tariff Union Agreement. We believe that the UK will act in sanity regarding the same way. However, we hold some concerns as well. Though we don\u2019t think those concerns will prove true. For second, pound weakened around 10% against USD and Euro. We believe this is a temporary situation which will recover. However, a severe loss for companies; which work with the UK is likely and required measures should be taken,\u201d he mentioned.<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK has USD16 billion foreign trade volume with Turkey while the country has entered a new era following Brexit vote. Exports emphasize that rapid measures should be considered for the new term. 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