Turkish footwear industry calls for crisis relief package following sharp decline in exports and employment
Berke İçten, president of the Turkish Footwear Industry Association (TASD), has presented a four-point proposal aimed at steering the Turkish footwear sector out of a deep crisis.
He points out that the sector has experienced a dramatic decline, with a 40 percent reduction in employment over the past three and a half years.
Simultaneously, exports—measured by unit count—have fallen by a staggering 50 percent during the same period, underscoring the severity of the situation for a vital branch of Turkish industry. These significant declines in both staff numbers and export volumes signal a challenging period for the footwear industry, which is essential to Turkey' s economy.
The loss of jobs affects thousands of households and contributes to rising unemployment, which in turn can reduce purchasing power and create social challenges.
The halved export volume directly impacts the country’s foreign currency earnings, which may exacerbate Turkey' s trade balance and put further pressure on the national currency, the lira. As part of his crisis relief proposal, Berke İçten has submitted two primary demands to the government.
First, it is proposed that taxes on raw materials used in footwear production be zero-rated.
This measure is intended to significantly reduce production costs for Turkish manufacturers, potentially making them more competitive in both domestic and international markets.
Lower raw material costs could help maintain production levels, alleviate price pressure, and prevent further decline in the sector, thereby helping to preserve existing jobs. Secondly, TASD is requesting an increase in state support for currency conversion for exporters to 10 percent.
This support is designed to compensate exporters for converting foreign currency into Turkish lira, thereby encouraging exports.
Increasing this subsidy would improve the profitability of export-oriented companies, stimulate increased export activity, and help strengthen the country' s foreign currency reserves.
This is a direct measure intended to address the sharp drop in exports and make selling Turkish shoes globally more attractive. The footwear industry is a major employer and exporter in Turkey, and such a profound crisis within this sector carries broad repercussions for the national economy.
The proposed measures are not only crucial for the industry' s immediate survival but also for the overall economic stability of the country.
Strengthening exports is particularly vital for the Turkish economy, which often struggles with trade balance deficits and a need for foreign currency to finance imports and service national debt. The government' s response to these proposals will be critical for thousands of businesses and their employees.
Implementing these measures could help reverse the negative trend, secure jobs, and restore the sector’s international competitiveness.
Without targeted support, Turkey risks losing significant industrial capacity, resulting in the loss of valuable export revenues and further weakening the nation' s employment situation.
Source: Bloomberght
