Home / Knowledge / News / Apparel/Garments / US Sanctions on Iran hit Turkish apparel exports
US Sanctions on Iran hit Turkish apparel exports
Mar '12
The fresh wave of unilateral sanctions imposed by the US and EU on Iran is affecting apparel exports from Turkey, a member North Atlantic Treaty Organization.

Turkish exports to Iran surged 12-fold during the last ten years to touch US$ 3.5 billion in 2011 due to improved bilateral relations and growing trade between the two countries.

The new US sanctions targeting Iran's central bank, imposed in January this year, led to a decline in value of Iran's currency 'rial' by more than 50 percent against the dollar. As a result, the relative cost of Turkish items nearly doubled in a span of few days.

The effect was immediately visible and overall Turkish exports to Iran fell sharply by 25 percent in January 2012 from a month earlier.

Meanwhile, all Turkish banks except for the state-owned Halkbank have stopped processing payments for Iranian customers.

The net result is that Turkish apparel exporters, who expected their sales to grow during the days before the Persian New Year, are witnessing a slump and their stocks are getting piled up.

Speaking to fibre2fashion, Mr. Ali Ulvi Orhan, Head of Osmanbey Textiles Businessmen Association (OTIAD), which represents around 800 Turkish textile and apparel firms, said, “The Turkish textile and apparel industry got affected by the results of the sanctions immensely as significant volume of garment exports from Turkey to Iran has received an abrupt and unforeseen halt.”

“The ramifications of this chain of events has resulted in Turkish companies holding significant supplies of apparels that they had produced, but could not sell, in anticipation of a growth between Turkish and Iranian trade,” he explains.

Suggesting a solution to ease the situation, he opines, “A long lasting solution seems improbable due to sustained heat in the political arena between Iran and the West. But a temporary solution between Turkey and Iran could be to use a bartering system between the two countries.”

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search