Our Foremost Priority is Competitiveness

We are navigating a period in which export performance has not progressed as desired. In addition to existing challenges, in March we were confronted with the stark reality of a new war in our immediate geography. The adverse repercussions of the Iran war were acutely felt from the very first month. In March, our exports to Gulf countries declined by 37 percent, falling to 1 billion 371 million dollars. Within a single month alone, we incurred a loss of 815 million dollars in exports to the countries of the region.

Under the combined impact of the war and the holiday period, our exports contracted by 6.4 percent in March, amounting to 21.9 billion dollars. We concluded the first three months of the year with exports totaling 63.3 billion dollars, marking a decrease of 3.1 percent. This emerging picture must be interpreted not solely through figures, but in conjunction with the prevailing conditions we are operating within.

Developments particularly in the Gulf countries have significantly affected our exporters. The slowdown in regional trade, the decline in demand, and disruptions in logistics lines have resulted in substantial losses. However, in such periods, it becomes all the more critical to develop new alternatives without severing ties with our existing markets. Together with the Türkiye Exporters' Assembly and our exporters' associations, we are focusing on compensating for losses while simultaneously identifying new markets. We are conducting intensive efforts to capitalize on emerging opportunities across a vast geography extending from America to Africa and from the Far East to Europe. Following the trade delegations we organized in March, we will continue to maintain a strong presence in the field with a highly robust program throughout April, May, and June.

Today, one of the most fundamental challenges facing our exporters is competitiveness. Energy costs are rising, raw material prices are increasing, and access to financing is becoming more constrained. Conversely, revenues on the sales side are not increasing at a commensurate rate. As the gap between input costs and output revenues widens, the burden on our industrialists and exporters intensifies. As we have consistently emphasized, many of our sectors are now struggling to price their products, secure orders, and compete effectively. This pressure is evident across numerous indicators, from PMI data to capacity utilization rates. Therefore, it is of critical importance that new support mechanisms aimed at strengthening production, industry, and exports are swiftly implemented during this period.

Nevertheless, despite all these challenges, we do not lose sight of the significant advantages Türkiye possesses. Our robust production infrastructure, high capacity, proximity-based supply advantage, flexibility, and agility in responding swiftly provide us with a substantial edge in adapting to evolving conditions. The Türkiye Exporters' Assembly and our exporters' associations continue their work with a dynamic and solution-oriented approach, closely monitoring the field. In this period we are navigating, we will not refrain from updating our strategies, formulating new roadmaps, and striving for measures that will pave the way for our exporters.

We are going through a challenging period. However, as the export family, we have overcome numerous trials together to date. With the same determination, we will continue to work, produce, reach new markets, and create value for our country. I firmly believe that, as long as we act with the right support, sound policies, and collective wisdom, the difficulties we face today will transform into stronger successes tomorrow.