Surge in Footwear Imports from Egypt Raises Concerns for Türkiye’s Industry
In December 2024, footwear imports from Egypt to Türkiye increased by over 12-fold, raising concerns about trade practices. The rise is attributed to companies exploiting free trade agreements and low labor costs by assembling Chinese components in Egypt. With minimal processing, these imports evade high customs duties, threatening local manufacturers. Regulatory action is urgently needed to address these inequities and protect domestic production.
Footwear imports from Egypt to Türkiye surged over 12-fold in December 2024, as companies increasingly imported shoes assembled in Egypt from components manufactured in China. This rise has raised concerns within the industry regarding the exploitation of free trade agreements and low labor costs abroad, particularly in relation to Türkiye’s customs duties.
Berke Icten, Chairman of the Footwear Industrialists Association of Türkiye (TASD), indicated that the rising production costs in Türkiye have led many firms to move operations abroad. He noted that the shift from the ready-to-wear clothing sector to the footwear industry is evident, with numerous companies now relocating their production to Egypt.
According to Icten, these imports often consist of shoe components—such as uppers and soles—sourced from China, which are merely assembled in Egypt before being shipped back to Türkiye. This practice allows products to be imported at reduced tariffs, even though they undergo insufficient processing to warrant such treatment.
Icten raised alarms concerning “origin fraud,” in which products predominantly made in China avoid comprehensive customs duties by claiming to be Egyptian due to minimal assembly in Egypt. He emphasized that substantial manufacturing must occur in Egypt for a product to be accurately classified as Egyptian-made.
Türkiye imposes customs duties between 60% and 70% on footwear imports, yet many companies managing assembly in Egypt successfully evade these fees. The decision by manufacturers to move to Egypt, perceived as the “new China” due to its low labor costs of approximately $150 per month, has further complicated the trade scenario.
Annual footwear imports from Egypt previously averaged around $560,000, but this figure experienced a dramatic rise to $750,000 in December 2024. The Turkish Statistical Institute (TurkStat) reported a staggering 1,223% increase in footwear imports from Egypt in January 2025 compared to the previous year, reaching $794,000, while Türkiye’s footwear exports to Egypt only amounted to $361,000, highlighting an expanding trade deficit.
Icten warned that without regulatory intervention, Türkiye may face significant losses in production and sustained damage to domestic manufacturers. He noted a similar trend occurring in the garment sector; if unaddressed, local producers in the footwear industry could face dire consequences.
The substantial increase in footwear imports from Egypt to Türkiye raises significant concerns regarding trade practices and domestic industry health. With minimal assembly of products in Egypt, firms are circumventing customs tariffs, leading to fierce competition for local manufacturers. The dramatic rise in imports underscores the urgent need for regulatory action to protect Türkiye’s footwear industry from potential collapse. Without intervention, the consequences could be severe, jeopardizing local production jobs and economic stability.
Original Source: www.turkiyetoday.com
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