TIM President Gültepe's 'dollar' comment: He gave a figure, saying 'It's even cheaper than watermelon'

Turkish Exporters Assembly (TIM) President Mustafa Gültepe complained about the exchange rate.

TIM President Gültepe stated that the taxes imposed should be at a level that does not increase prices too much and allows for competitiveness, adding that the ready-to-wear sector is currently among the worst-performing sectors in terms of both turnover and profit.

'THERE IS NO CHANCE FOR INDUSTRY TO SURVIVE'

Gültepe continued as follows:

"It is the same in textiles... Due to a slight decrease in demand in the sector, the decline in competitiveness in Turkey, and the fact that Turkey is not just expensive, but very, very expensive, orders are not being kept in Turkey. In other words, you are forced to offer the same prices. Currently, Turkey is 40-50 percent more expensive than its distant competitors.

As long as this exchange rate policy does not change in Turkey, there is no chance for industry to survive. People have gone to Egypt. They are also directing their customers there. Everyone is shrinking. Is it not a pity for this industry? This industry generates 30 billion dollars. We earn 30 billion dollars for the country. 20 billion dollars of this is net foreign currency inflow. Countries that export on a sectoral basis in the world are 40-50 percent cheaper than you. The increase in the exchange rate in one year is 25 percent.

The increase in my costs is 110 percent. Instead of doing it this way, let those who fall, fall; those who remain, remain; those who go, go. If it is to be done, let it be done all at once. It should not continue like this. The gap level in our country is very different. In our country, the exporter is not concerned with making a profit, but with surviving. All sectors are shrinking, the industry is shrinking. Without seeing that downward slide, the industrialist's job is difficult."

'FOREIGN CURRENCY IS CHEAPER THAN WATERMELON IN TURKEY'

When asked, "Are you complaining about Mehmet Şimşek's policies?", Mustafa Gültepe said that there is a problem called "inflation", that they recorded 3 months of negative and 3 months of positive growth in exports in the first 6 months, that exports stagnated in 2023, and that businesses are losing money on orders received and cannot set prices.

Gültepe said, "We need to fight inflation. I think the industrial side has been somewhat forgotten. I mean, of course, we can make a loss. We should in such situations, but the scale is important. But after a certain point, it is no longer sustainable. Currently, the industrialist and the exporter are below the iceberg. We need to get to the top of that iceberg. Turkey is not expensive, it is very, very expensive. The cheapest thing in Turkey right now is foreign currency. It is even cheaper than watermelon." Stating that the exchange rate has not increased at all in the last 3 months but inflation has risen, Gültepe said, "There is no difference between (the dollar being) 33 (lira) and 37 (lira). Make it 37 (lira)."