There was a modest improvement in the value of Turkish textile exports in February. Apparel shipments are still lower than a year ago but the difference is not as bad compared with January. Production during the first month of the year was again at lower levels. In addition, the IMF has reacted to Turkey's VAT cut for textiles.
The value of Turkish textiles and fibre exports were nearly 9 per cent higher in February compared with the same month last year, latest data from Turkey's Exporters' Union (TIM) confirm.
Apparel shipments remain in the negative however, being 3.15 per cent lower.
Both apparel and textile values have increased from a poor January when total exports were nearly 10 per cent lower.
Large fall in non-knit apparel
Shipments of knitted apparel (HS Chapter 61) in that month were 13.6 per cent lower compared with January 2005.
There was a bigger fall of non-knitted apparel (Chapter 62) that dropped 24 per cent from one year ago.
Imports of some categories in January had recovered on the other hand.
HS Chapter 52 (cotton yarns/fabrics) for example, increased 4.6 per cent as against imports for the same month last year.
The value of incoming non-knitted apparel goods (Chapter 62) rose by over 20 per cent.
Production in the country's 40,000-plus apparel and textile companies remains at low levels.
In the textile sector, output was 24.5 per cent lower in January compared with December and 17.5 per cent versus January 2005.
Apparel was similar being 18.4 per cent and 35.4 per cent lower for the same comparative periods.
IMF understands Turkey's textile problems
Turkey recently moved to cut VAT (Value Added Tax) on textiles from 18 per cent to eight.
The International Monetary Fund (IMF) reacted with concern by announcing this could put off competition in the sector.
An IMF official did however confirm that there are difficulties in the Turkish textile sector which are "understandable" since the end of world quotas at the start of last year.
Ankara has also responded by insisting this will not damage economic stability.
