Spanish label Mango seeks alternative suppliers as made-in-Turkey goods caught in Ankara-Riyadh rivalry
Laura Pitel in Ankara, Simeon Kerr in Dubai, Patricia Nilsson and Andrew England in
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A de facto Saudi ban on Turkish goods has hit global fashion brands in the latest sign of the escalating rivalry between the regional powers. Saudi Arabia has “banned all imports for made in Turkey products”, an employee at clothing group Mango told Turkish suppliers in an email seen by the Financial Times. The Spanish company, which is one of a number of European and US fashion retailers with manufacturing facilities in Turkey, said in a statement that its teams “are looking into alternatives to the slowing down of custom processes for products of Turkish origin in Saudi Arabia”. Mustafa Gultepe, head of Istanbul Apparel Exporters’ Association (IHKIB), said all retailers producing in Turkey and exporting to the Gulf state were affected. “We are talking about all global brands that have stores in Saudi Arabia, produce in Turkey and sell over there,” he told the FT. Turkish exporters have complained that their products have faced long delays at Saudi customs over the past month. The problems have been viewed by businesses as an attempt by Riyadh and its close ally the United Arab Emirates to punish Ankara for what they deem to be its destabilising interventions in the Arab world. The trade dispute marks a significant escalation of the quarrel between the regional rivals. “Anything made in Turkey or coming through Turkey is . . . not allowed in Saudi,” said one person in the Gulf briefed on the issue. The Saudi government said it had not “placed any restrictions on Turkish goods”, adding that trade between the two countries had not “witnessed any noticeable decline, except for the general impact of the repercussions of the Covid-19 pandemic”.
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In a statement from the government’s media office, Riyadh also said it was committed to free trade and international agreements and treaties. But this month, Ajlan al-Ajlan, the chairman of the Riyadh Chamber of Commerce, called for a boycott of “everything Turkish” in response “to the continued hostility of the Turkish government against our leadership, country and citizens”. Turkey’s relations with Saudi Arabia and the UAE, the Middle East’s two biggest economies, have become ever more fraught as they accuse President Recep Tayyip Erdogan of meddling in Arab affairs and supporting Islamist groups. The rivals back opposing factions in the civil war in Libya, where Turkey’s military intervention this year led to a string of defeats for the Gulf states’ Libyan proxy, renegade general Khalifa Haftar. Saudi Arabia has previously sought to use economic measures against governments to apply diplomatic pressure. In 2017, Riyadh and Abu Dhabi spearheaded a regional embargo against Qatar.