ISTANBUL, July 23 – Turkey’s jewelry exporters have blamed the country’s gold import quota for a sharp decline in overseas sales, arguing that the restrictions have undermined their global competitiveness and eroded the confidence of international buyers.
According to data released by the Jewelry Exporters’ Association (MIB), the sector’s exports fell 33% year-on-year in the first half of 2026, while exports of processed gold jewelry plunged 62%. The Turkish Exporters Assembly (TIM) ranked jewelry as the country’s worst-performing export sector during the period.
MIB Chairman Mustafa Özcan said the downturn stems primarily from the gold import quota introduced in 2023 to curb Turkey’s current account deficit. He argued that the policy has caused domestic gold prices to trade at premiums of up to $15,000 per kilogram above international market prices, significantly increasing production costs for Turkish manufacturers.
“The jewelry industry generates an average added labor value of $4,500 per kilogram, but the price gap created by the quota can reach $15,000 per kilogram,” Özcan said. “It is impossible to explain such a cost disadvantage to international customers, who naturally turn to suppliers in other countries.”
Turkey currently operates a monthly gold import quota of 12 metric tons, which exporters say weakens the industry’s ability to compete in global markets. Although the quota was intended to reduce imports, Özcan argued that it has failed to achieve its objective. Imports of finished jewelry rose from $700 million in 2021 to $6.6 billion in 2024, while Italy, one of Turkey’s key competitors, significantly increased its jewelry exports to the Turkish market.
Beyond the quota, exporters also highlighted bureaucratic obstacles, including restrictions under Turkey’s Inward Processing Regime (DIR), capacity limits on monthly gold imports, customs approval requirements before imports, and mandatory assay certification procedures that increase costs and delay deliveries.
Despite the current challenges, Özcan emphasized that Turkey remains the world’s third-largest jewelry producer, behind India and Italy, thanks to its manufacturing capacity, design expertise, and high-value-added production.
He said the industry has the potential to increase annual exports to $20 billion if structural issues—including import quotas, processing restrictions, and tax burdens—are addressed in coordination with government authorities.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök