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TEXTILES AND CLOTHING

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TEXTILES AND CLOTHING Powered By Docstoc
					Türkiye-AB Ticaret-Sanayi ve AKÇT Ürünleri 1. Alt Komitesi, Brüksel, 7.12.2000

Textiles and Clothing Industry

Textiles and Clothing Industry General Assesment The textile industry is the largest and one of the first established industries in Turkey. Clothing industry has begun to establish in the 1950s and served for domestic consumption, and its development remained limited until the end of the 1970s. However, the textile industry has started to develop by the influence of incentive measures applied after 1967. After January 24, 1980 economic reforms, the textiles and clothing industry has developed mainly due to the export-oriented economic policies, the rational use of incentive measures for investment, and the supports introduced for the import of machinery equipment and auxiliary materials. As a result, the international competitiveness of the textiles and clothing industry has increased, and important increases have been achieved in the exports of the textiles and clothing industry.  Production: The value of textiles and clothing industry production was around 16.8 billion dollars in 1999. Its shares in manufacturing valueadded and production in 1999 were 17 % and 14.8 %, respectively.  Domestic consumption: The value of textiles and clothing industry consumption was around 9.5 billion dollars, in 1999.  Exports: Textiles and clothing industry exports increased significantly during the last two decades, from 595 million dollars in 1979 to 9.5 billion dollars in 1999, by increasing 16 times. The important part of the textiles and clothing exports, more than two-thirds, has been directed to European Community (EC). Geographical closeness, relatively low wage levels, high quality of goods demanded by EC are the main causes of the increase in the textiles and clothing industry exports. The shares of the textiles and clothing industry in total exports and in manufacturing industry exports in 1999 were 35.5 % and 37.5 %, respectively. In other words, more than one third of total exports is realized by the textiles and clothing industry. In 2000, both the volume and value of the exports increased.  Imports: Textiles and clothing industry imports was around 2.1 billion dollars in 1999. Imports increased significantly, around 80%, during the first-half of the year 2000 compared to the same period of the 1999. This was mainly due to the the rise in the imports of the raw materials such as raw cotton and cotton yarn. The shares of the textiles and clothing industry’s imports in total imports and in manufacturing industry imports in 1999 were 5.5 % and 6.2 %, respectively.  Technology and Competitiveness: A general overview of Turkish economy shows that the principles and mechanisms of a market economy are well functioning. In Turkey, textiles and clothing industry is an outward –oriented industry and uses modern technology, and as a result, can compete with that of other countries in international markets. The main reason behind this is the increase in modern machinery imports and new investments in recent years. The performance of textiles and clothing industry affected positively by proximity to the EU market, trained work force, the progress achieved in infrastructure and telecommunication systems, together with the existence of large domestic market.

http://ekutup.dpt.gov.tr/imalatsa/ab/001207/textiles.doc

Türkiye-AB Ticaret-Sanayi ve AKÇT Ürünleri 1. Alt Komitesi, Brüksel, 7.12.2000

Textiles and Clothing Industry

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Capacity and Capacity Utilization: There were significant capacity improvements in textiles and clothing industry starting by the 1970s. The machinery stock increased from 1.2 million spindle to 5.7 million spindle and 418,200 rotor from 1970 to 1998. Especially due to expectation of the higher exports resulting from removal of quotas after Customs Union, there were significant increases in the new and modernization ınvestments in the textiles and clothing industry. The exports did not increase as much as expected, and as a result, capacity utilization rate decreased. Even though the capacity utilization rate differs by sub-sectors, overall it is around 70 % for the textiles and clothing industry. In 1995, 2360 investment incentive certificates were given to textiles and clothing industry, accounting for 48 % of the total investment incentive certificates. This number decreased to 749 in 1998, accounting for the 19 % of the total investment incentive cerificates. Firms and Regional Distribution: In the past, the State played an important role in the textiles and clothing industry, but now there is only two public economic enterprises (PEE), Sümer Holding and Sümer Halı, working in the textiles and clothing industry. Due to the expectation of the increase in cotton production in the south-eastern region as a result of the partial completition of GAP (South-eastern Anatolia Project), textiles and clothing investments were concentrated in this region. In 1998, the share of the south-eastern region in total yarn capacity reached to 38.2 %, and the share of this region in total yarn production increased to 41.3 %. Marmara (north-western) region followed the soth-eastern region by 21.4 % share in total capacity and 21.6 % share in total production. Then, comes the Akdeniz (Mediterranean) region wıth a 14.2 % share in capacity and 13 % share in production. Employment: Altogether, textiles, clothing and leather industries (ISIC 32) provide for more than one third of employment in the manufacturing industry. Concentration: In textiles and clothing industry, concentration ratio is very low because this sector has many establishments which can easily enter and exit this market. The traditional small production establishment is dominant in this sector. The manufacture of textiles not elsewhere classified and cordage rope industries are the most concentrated subsectors of the textiles and clothing industry. Foreign investment: In this industry, the share of foreign capital investment is limited even after the introduction of significant legislative and administrative arrangements to encourage foreign capital investments.

Harmonization of Legislation As far as the technical legislation is concerned, Turkey is continuing its efforts to prepare the relevant legal arrangements. In textiles and clothing ındustry, there are three directives needed to be harmonized (73/44/EEC, 96/73/EC, and 96/74/EC). These directives were translated into Turkish and Ministry of Industry and Trade and Undersecretary of Foreign Trade are continuing to work on the harmonization of these directives.

http://ekutup.dpt.gov.tr/imalatsa/ab/001207/textiles.doc

Türkiye-AB Ticaret-Sanayi ve AKÇT Ürünleri 1. Alt Komitesi, Brüksel, 7.12.2000

Textiles and Clothing Industry

Medium Term Sectoral Policies The major policies regarding this industry in the VIII. Five Year Development Plan are as follows:  Activities for the creation of fashion and private collection, and establishment of ‘’trade mark’’ will be supported.  Textiles and clothing industry will be protected from unfair competition through anti-damping legislations.  R&D activities for higher productivity and better quality will be supported.  Partnership with foreign firms (joint-venture) will be supported.  Enterance to new markets, in addition to keeping the old ones, will be encouraged.

http://ekutup.dpt.gov.tr/imalatsa/ab/001207/textiles.doc