Turkey’s US$2bn worth of textile and clothing exports to the UK would be dealt a “severe hit” in the event of a No-Deal Brexit with the EU, the head of the Istanbul Textile and Apparel Exporters’ Association (IHKIB) has warned.
In a local press interview, IHKIB president Mustafa Gültepe explained that should the UK leave the EU on 29 March with a No-Deal, apparel exports from Turkey would face a 12% duty. They currently enjoy duty-free access to the European Union through Euro-Mediterranean Economic Partnership Agreement.
“12% tax is a significant amount for the ready-made garment sector, our existing exports to this country (UK) of around $2bn will suffer a large blow,” Gultepe told Haber Turk.
According to the re:source by just-style strategic planning tool, Turkey is the world’s fifth largest textile supplier and the seventh largest exporter of clothing. The UK is Turkey’s second largest export destination, after Germany.
Earlier this month the UK prime minister, Theresa May, saw her plan for a divorce from the bloc shot down by MPs in the House of Commons.
The rejection has fuelled uncertainty over trade and other arrangements after the UK exits the EU – and leaves a number of potential scenarios for what happens next. These include a renegotiation on the deal’s terms with the EU; a suggestion for MPs to unite around an alternative plan; a request for Brussels to delay the entire process; a second national referendum; or a No-Deal Brexit which, in trade terms, would mean the UK immediately reverting to WTO rules (and new tariffs applying to UK-EU trade).
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
