The following paper is based on the WTO’s liberalisation efforts in the textiles industry. It specifically studies the case of Turkey. Resulting from the WTO’s liberalisation efforts, the Turkish textiles market is facing various challenges. The paper is therefore occupied with proposing and critically analysing potential trade instruments to successfully realign the Turkish textiles industry. The measures taken into consideration are 1) a devaluation of the Turkish currency, 2) an introduction of subsidies with a corresponding increase in money supply, 3) a lowering of taxes on general textile employment, 4) the forging or deepening of new bilateral or multilateral trade agreements, 5) a shift towards higher value-add production, and 6).
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Inner state level of analysis
- Inter state level of analysis
- Global level of analysis
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the challenges facing the Turkish textiles industry in the wake of WTO liberalization efforts, specifically focusing on the impact of increased competition from low-cost producers in Asia. It proposes and critically evaluates potential trade instruments to help the industry realign and regain competitiveness.
- The impact of WTO liberalization on the Turkish textiles industry.
- Challenges faced by the Turkish textiles industry due to global competition.
- Potential trade instruments for realigning the Turkish textiles industry.
- The role of macroeconomic factors in the competitiveness of the Turkish textiles sector.
- Analysis of inner-state, inter-state, and global trade measures for boosting Turkish textiles exports.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides an overview of the liberalization efforts in the textiles and clothing sector, tracing the evolution of trade regulations from the GATT to the ATC. It highlights the challenges posed by these changes for developing countries like Turkey, particularly due to the rise of low-cost competitors in Asia.
- Inner state level of analysis: This chapter examines the potential benefits and drawbacks of devaluating the Turkish currency to boost exports. It discusses how a devaluation could affect the real exchange rate, leading to potential increases in Turkish textile exports.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this text include: Turkish textiles industry, WTO liberalization, trade instruments, competitiveness, global competition, low-cost producers, devaluation, subsidies, bilateral and multilateral trade agreements, value-add production, macroeconomic factors, demand and supply side measures.
Frequently Asked Questions
How has WTO liberalization affected the Turkish textile industry?
WTO liberalization efforts, specifically the phasing out of quotas, have led to increased global competition, forcing the Turkish textile market to realign its strategies to remain competitive against low-cost producers from Asia.
What are the main challenges for Turkish textiles due to global competition?
The primary challenges include price pressure from low-cost Asian countries, the need for higher quality standards, and the necessity to optimize production processes and supply chains.
Could a devaluation of the Turkish Lira boost textile exports?
Devaluation is one potential instrument discussed to make exports cheaper on the global market, although its long-term effectiveness depends on the real exchange rate and the cost of imported raw materials.
What is the importance of shifting to higher value-add production?
By focusing on higher value-add products, Turkey can differentiate itself from low-cost competitors through better design, branding, and specialized textiles, rather than competing on price alone.
What role do bilateral trade agreements play for Turkey?
Forging or deepening new bilateral and multilateral trade agreements is a key strategy to secure market access and reduce trade barriers for Turkish textile exports in important regions.
- Quote paper
- Anonym (Author), 2010, Trade and Development. Realigning the Textile Industry in Turkey, Munich, GRIN Verlag, https://www.grin.com/document/382042
