“Transformation Journey of the Turkish Apparel Industry” event successfully held in Istanbul

"In order to strengthen our competitiveness, the Customs Union should be updated without further delay."

Mustafa Gültepe, Chairman of the Turkish Exporters Assembly (TIM), said that the Customs Union between the European Union (EU) and Türkiye in its current form has a limiting effect rather than supporting cooperation between the parties.

Gültepe, who also holds the position of Chairman of the Istanbul Apparel Exporters’ Association (IHKIB), underlined that a permanent competitive edge in the EU market can only be attained through the full and comprehensive modernization of the Customs Union.

The event titled “The Transformation Journey of the Turkish Apparel Industry,” organized by the Istanbul Apparel Exporters’ Association (IHKIB), brought together exporters, international brands, industry professionals and experts.

In his opening remarks, Mustafa Gültepe emphasized that the apparel industry is among Türkiye’s most vital sectors, thanks to its high value-added production, employment generation, and export performance.

"TÜRKIYE SHOULD BE INCLUDED IN THE EU'S FTAs WITH THIRD COUNTRIES"

Highlighting the European Union as a strategic market for the Turkish apparel sector, Gültepe continued as follows:

“We export approximately 70 percent of our apparel products to Europe. We hold a strong position in many European markets, particularly in Germany, Spain, and the Netherlands. Our strategic advantage as a nearshore supplier further reinforces our competitive standing. However, we are aware that in the medium and long term, these advantages alone will not be sufficient.

With this awareness, we are determined to accelerate our twin transformation—digital and green. We are effectively utilizing EU funds to support this transition. To date, we have secured a total of 37 million euros in grant funding from the EU for our completed and ongoing projects.

Today, in areas such as recycling, carbon footprint reduction, digitalization, and social compliance, we have reached—or even surpassed—European standards. I have no doubt that we will successfully complete the twin transformation.

However, I would like to emphasize that in its current form, the Customs Union serves more as a constraint than a facilitator of our cooperation. We hope the ongoing technical negotiations will be concluded without further delay, as we firmly believe that achieving sustainable competitive advantage in the EU market is only possible through the full modernization of the Customs Union.

In this context, we also believe that the Customs Union must be updated in line with transforming economic paradigms. Furthermore, we consider it essential—and strongly recommend—that Türkiye should be included in the free trade agreements (FTAs) the EU signs with third countries, in order to establish diagonal cumulation.”

"WE ARE THE MOST RELIABLE REPRESENTATIVE OF THE NEARSHORING MODEL"

Reminding the rising uncertainties in global trade, Mr. Mustafa Gültepe pointed out attention to the escalating tensions following the long-standing conflict between Israel and Iran turning into open hostilities. He also emphasized that protective trade policies have been disrupting global value chains, and stated:

“Protective measures not only target specific countries but also negatively affect all suppliers by creating cost pressures and strategic uncertainties. Unpredictable policy shifts threaten the financial sustainability of apparel manufacturers. In such a period marked by heightened uncertainty, cost is no longer the only factor — speed, flexibility, and efficient production have gained strategic importance.

At this critical juncture, the Turkish apparel industry stands out as a key strategic partner. With our geographic proximity to Europe, robust logistics infrastructure, high-quality production, and swift compliance with environmental regulations, we are the most reliable representative of the nearshoring model.

We have a strong production infrastructure at every stage — from fabric to accessories, dyeing to sewing. This capacity translates into shorter lead times, flexible production, lower carbon emissions, and faster delivery to the end consumer.

As IHKIB, we actively support this transformation through our Digital Transformation Center, Ekoteks Laboratory, Istanbul Moda Academy, and IHKIB Academy. Last month, we launched our Midas Project, funded by the EU under the European Digital Innovation Hubs (EDIH) Network. Through this project, we will provide the necessary infrastructure to support twin transformation for our SME-scale manufacturers.”

"BUYERS SHOULD PRIORITIZE LONG-TERM, VALUE-DRIVEN PARTNERSHIPS OVER SHORT-TERM PRICE COMPETITION"

Mustafa Gültepe underlined that the transformation journey requires not only a shared vision but also collective responsibility, coordinated action, and investment. Emphasizing that all stakeholders have critical roles to play in this process, Gültepe stated: "It is essential that public institutions incentivize transformation investments that will accelerate modernization; international buyers shift their focus from short-term price competition to long-term, value-driven partnerships; financial institutions prioritize the apparel sector in sustainability-linked lending; and testing and verification bodies provide guidance that aligns with real-world conditions in the field."

MR. ALTAN, PRESIDENT OF IAF: "THE TURKISH APPAREL INDUSTRY HAS EMBARKED A COMPREHENSIVE TRANSFORMATION PROCESS"

Mr. Cem Altan, President of the International Apparel Federation (IAF), noted in his speech that the Turkish apparel industry has embarked on a comprehensive transformation journey aligned with global sustainability standards and the strategic objectives of the European Green Deal.

Underlining that the event titled “The Transformation Journey of the Turkish Apparel Industry” is an integral part of this transition, Mr.Altan stated: "By bringing together policymakers, international brands, industry professionals, and experts, this event aims to accelerate the integration of Türkiye’s apparel ecosystem with the European Union’s green and digital transformation agenda. It serves as a signal of a new era focused on sustainable, value-driven growth for the sector."

EURATEX PRESIDENT MACHADO CALLS FOR URGENT MODERNISATION OF EU–TÜRKIYE CUSTOMS UNION

Mario Jorge Machado, President of the European Apparel and Textile Confederation (EURATEX), emphasized in his remarks that global trade is currently facing increasing fragmentation and uncertainty. He said: “In a time when global trade faces fragmentation and uncertainty, the EU and Türkiye can offer the world a different model: one of strategic resilience, sustainable innovation, and shared prosperity. Let us seize this opportunity to weave a stronger future. To unlock the full potential of EU– Türkiye textile cooperation, EURATEX therefore calls for a rapid launch of the modernisation process of this Customs Union.”

AAFA PRESIDENT AND CEO STEVE LAMAR HIGHLIGHTS TÜRKIYE’S STRATEGIC ROLE IN GLOBAL FASHION SUPPLY CHAINS

In today’s rapidly evolving global supply landscape, resilience, reliability, and shared values have become essential. Speaking on the strategic role of Türkiye in the fashion and retail industries, Steve Lamar, President and CEO of the American Apparel & Footwear Association (AAFA), emphasized the country’s unique advantages and future potential: “Türkiye’s industry boasts strong craftsmanship, a reputation for quality, proximity and knowledge of European markets, and existing strong US brand partnerships. As we all look for certainty and predictability in the months and years to come, I believe Türkiye can leverage these characteristics successfully. Brands and retailers want a smaller number of more dependable partners who share similar values, and there is every reason to believe that, with the right approach, the Turkish industry can be part of that transformation journey.”