Turkey seeks US trade deal as textile makers lose ground in Europe

Turkey pursues US deal to offset European losses

Turkey's textile sector is pursuing a free trade agreement with the United States as a strategic necessity to make up for market share it is losing in Europe, where Chinese and Indian competition is intensifying, industry leaders told Türkiye Today. Istanbul Textile and Raw Materials Exporters Association (ITHIB) Chairman Ahmet Oksuz said a deal with Washington has become imperative for the sector's future.

"A Free Trade Agreement (FTA) with the U.S. or a Preferential Trade Agreement specifically for our textile sector is now a strategic necessity," Oksuz told Turkish outlet Hurriyet on Friday during the Premiere Vision Fair in Paris, held Feb. 3-5. "We need to accelerate the FTA process. This way, we can compensate for the market we lose in Europe with the U.S. market."

Europe under pressure from Asian rivals

Turkey's textile and raw materials sector closed 2025 with $11.4 billion in exports. Combined with ready-made garments, the industry reached $26 billion in total exports. The sector aims for "loss-free exports" in 2026, but Oksuz said global developments require new strategies.

Roughly 50 percent of total exports go to European countries, Turkey's primary market. "China is very aggressive regarding the European market," Oksuz said. "They are trying to capture in Europe what they lost in the U.S. market due to high tariffs. India is acting similarly." He warned that India's Free Trade Agreement with Europe, set to take effect in 2027, will directly harm Turkish competitiveness. "With this agreement coming into force in 2027, we will largely lose our Customs Union advantage."

Small US share, room to grow

Turkey currently holds only 3% of U.S. textile imports, a level Oksuz called insufficient. "If a bilateral trade agreement is signed, we could increase this ratio to 5 percent within two years and expand our market share in the region," he said.

According to Turkish Exporters Assembly data, Turkey exported $792 million worth of textiles and raw materials to the United States last year. An FTA could raise that figure to $1.32 billion within two years. Oksuz said trade with the U.S. is relatively balanced but currently favors America. "The textile sector remains a serious instrument in our hands. Serious work is being carried out on an agreement with the U.S."

Global brands sourcing Turkish fabric

World-famous brands from Gucci to Dior and Burberry to Nike now use Turkish fabrics, Oksuz confirmed. "We had meetings with brands like Burberry, Nike and Patagonia, as well as e-commerce companies like Ozon," he said. He added that the association also met with Japan-based Uniqlo, which has been buying from Turkey, and said new meetings would take place after March.