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REACH &

Textile and Apparel Industry

Selim AKDOGANSelim AKDOGAN

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Istanbul Textile and Apparel Exporters’

Associations (ITKIB)

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ITKIB, established in 1986 and includes:

Istanbul Istanbul Textile and Raw Material Exporters’Textile and Raw Material Exporters’ Association,Association,

Istanbul Istanbul Ready Wear Garment Exporters’Ready Wear Garment Exporters’ Association,Association,

Istanbul Istanbul Leather and Leather Products Leather and Leather Products Exporters’Exporters’ Association, Association,

Istanbul Istanbul Carpet Exporter’sCarpet Exporter’s Association. Association.

Istanbul Textile and Apparel Exporters’ Associations (ITKIB)

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Main activities of ITKIB are :

Gathering and providing trade-related information Gathering and providing trade-related information to its members totaling more than 16,000,to its members totaling more than 16,000,

Carrying out market surveys, Carrying out market surveys,

Dealing with formalities of exports; providing the Dealing with formalities of exports; providing the necessary documentation,necessary documentation,

Keeping statistical data about the exportsKeeping statistical data about the exports

Cooperation between the textile and apparel Cooperation between the textile and apparel industries of Turkey and EU by becoming member industries of Turkey and EU by becoming member of EU industrial organisations like Euratex.of EU industrial organisations like Euratex.

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In 2007, Turkey’s :

Total export of Total export of apparelapparel: 15,6 billion $: 15,6 billion $ share of share of ITKIBITKIB in total export: 77% in total export: 77%

Total export ofTotal export of textile textile : 6,4 billion $ : 6,4 billion $ share of share of ITKIB ITKIB in total export: 56%in total export: 56%

Total export of Total export of leatherleather: 1,2 billion $: 1,2 billion $ share of share of ITKIBITKIB in total export: 83% in total export: 83%

Total export of Total export of carpetcarpet: 992 million $: 992 million $ share of share of ITKIBITKIB in total export: 28% in total export: 28%

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Textile and Apparel Industry

in Turkey

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The industry has a great contribution to theTurkish economy.

This can be seen in main macro economic indicators.

(2007)

8 % of GDP, 16.3 % of industrial production, 11.4 % of manufacturing labour force 22 % of total Turkish export earnings. USD 21.9 billion export

Textile and Apparel Industry in Turkey

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15,6

6,4

21,9

0,8

0

20

40

60

80

100

120

1980 1989 1998 2007YEARS

GE

NE

RA

L E

XP

OR

TS(B

il. U

S$)

0

5

10

15

20

25

TEX

T-A

PP

AR

EL

EX

PO

RTS

(Bil.

US

$)

GENERAL EXPORT APPAREL EXPORT TEXTILE EXPORT TEX+APP EXPORT

Textile and Apparel Exports in Turkey

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9.8

0,3

0

20

40

60

80

100

120

140

160

180

1985 1994 2003YEARS

GE

NE

RA

L IP

OR

TS(B

il. U

S$)

0

2

4

6

8

10

12

TEX

T-A

PP

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IMP

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TS(B

il. U

S$)

GENERAL IMPORT APPAREL IMPORT TEXTILE IMPORT TEX+APP IMPORT

Textile and Apparel Imports in Turkey

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ITKIB has informed the Turkish

Textile and Apparel Industryabout REACH. Seminars and meetings has

been organized A special part is reserved for

the REACH news on ITKIB Webpage

ITKIB’s “EU-CU and Agreements Department” has focused on the issue,

Close co-operation with Turkish Chemical Industry.

www.itkib.org.tr

ITKIB & REACH

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Challenges & Opportunities

of REACH

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Textile production is a chemical intensive process.

Important part of the EU production shift to Turkey, Asia

and Northern Africa, due to: Legal environmental requirements Increase of the costs of production

REACH changes the balance and lead the restucturing of the

textile market: Important tool in the competitive market EU producers better positioned to provide information Creation of unfair competition between complaint and non

complaint companies

Challenges & Opportunities of REACH

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Difficult position of the non-EU based producers Smaller obligations, Problems to identify the substances contained in

their products, Problems for tracking information.

Supply chains may need to change Registrations costs, Problems for re-organisation of company involved in

the process, Risk of manufacturers pre-registering all chemicals

regardless of the need defined in REACH regulations.

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Requests to supply REACH complaint products not only from

EU based customers

The process will cause complexities: Compliance may be required only by some customers, Confidence in the trade of information, Case of multiple suppliers for a specific product in the

same picture.

Real impact: Business costs, Risk of commercial information to be revealed.

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REACH will affect the way business to Europe is executed.

The firms need to: Prepare to manage the communication up and

downstream, Address the challenges in supply of materials and

customers demands, Handle the administrative and technical tasks.

REACH will provide: Market to be more transparent, Positive impact on product liability and quality, Substitution of harmfull chemicals, Benefits for human health and the environnement for

proportionate controls over hazardous chemicals.

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Trade diversion -> Re-substitution of Asian suppliers with

Turkey:

Need for more information and more co-operation between supply chain (lack of transparency in Asia)

Problems about cooperation with Asian suppliers about chemicals used in articles.

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REACH may bring serious business opportunities to those producers whowho start their preparation for start their preparation for

REACH nowREACH now ! !

Selim AKDOGANSelim AKDOGAN