Government policies impact exports even in markets where its products are liked. This happened with Turkey which has lost significant textile sales in European countries and the Middle East because of its various conflicts with them.
Instances like the downing of a Russian airplane, the murder of a Saudi journalist in the Saudi embassy in Istanbul, and Turkey’s support of the Muslim Brotherhood group annoyed the Egyptian government.
This has resulted in unwritten prohibitions on Turkish textile products, followed by all products produced in Turkey. Turkish traders and exporters were deeply upset because Egypt and Saudi Arabia were highly profitable markets for Turkish goods.
Of late the Turkish government did try to mend relations with some of these economies to protect its exports. The Turkish leadership worked hard to reinstate its relations with the estranged government to win back its export markets. It mended its relations with Saudi Arabia, Egypt, and Israel for the sake of its businessmen.
Most of businesses consider the current overtures insufficient as the basic policies that annoyed some governments have not changed. They fear that this policy will result in Turkey losing its export markets in the long run. And even in potential markets that Turk businessmen have not yet explored.
Turkey’s apparel is a trusted name in the world. It is textile and clothing products are competitive in quality, fashion, and price. Turkish competitors have made inroads in its global markets taking advantage of its tense relations with some countries.
Its share in Europe, the Middle East, and Africa has been encroached upon by apparel suppliers from China, India, Vietnam, and Bangladesh. Even Egypt, Morocco, and Tunisia are emerging as competitors to Turkey.
