23008_Nearshoring Report

Türkiye is now one of the world’s largest exporters of textiles & apparel with Europe being its largest trading partner: over 69% of textiles and finished apparel made in Türkiye are exported to European countries, particularly Germany, UK, Spain, Netherlands and France. Major European and international businesses – including high profile retailers such as Inditex, Mango, H&M, Asos, Next and Zalando – have invested in facilities and created extensive relationships with suppliers in Türkiye . Türkiye offers lower costs and close proximity (meaning shorter order lead times and transport times and lower transport costs) as well as the opportunity to more easily monitor for impact, including worker conditions and environmental impact of manufacturing operations. Key production locations are centred in the North West (including around Istanbul, Bursa and Tekirdağ/Corlu), the West (including Izmir and Denizli) and the South (including Adana, Kahramanmara and Mersin).

Türkiye also enjoys free trade arrangements with the UK and other European countries not part of the EU Customs Union, reducing trade barriers, costs, limitations and delays. Türkiye’s efforts to join the EU over an extended period have brought significant market liberalisation through European trade and regulation standards. Türkiye has attracted significant investment from European businesses: of the USD 12.5 billion foreign direct investment in 2021, 60% was from companies in European countries with investment in manufacturing sectors accounting for a quarter of total investment. And Türkiye’s Government have put in place significant investment incentives , particularly those related to key targets such as growing high-tech and digital industries as well as export-related activities.

TÜRKIYE Trade between Türkiye and Europe has grown by more than 400% over the past 20 years: Europe as a whole is Türkiye’s largest trading partner and Türkiye is part of the Customs Union of the EU which effectively removes all tariff and non-tariff barriers to trade between member states.

MANGO

In its most recent supplier list released in early 2023, Mango reported that, at the close of 2022, it had 2,400 factories throughout the world, approximately 50% of which are in close proximity to Europe. Türkiye is the country

with the largest number of factories working for Mango (663) greater than both China (651) and India (264).

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