Natalie Burrell, Loren Marano, Madeline Spitaels

FCFA 475
Region Report
April 8, 2014
The Middle East: Jordan, Israel, & Turkey
Jordan, the Middle Eastern kingdom, is located between
Saudi Arabia in the south and east, Syria and Iraq in the north, and
Israel in the west. The country is comparable in size to the state
Indiana. The country is made up of arid hills and mountains. The
southern section of the Jordan River flows through the country. Their
climate is hot and dry characterized by long, hot, dry summers and
short, cool winters. The climate is influenced by Jordans location
between the subtropical aridity of the Arabian Desert areas and the
subtropical humidity of the eastern Mediterranean area ("Jordan,").
The kingdom emerged from the post-World War I division of West Asia
by Britain and France. In 1946, Jordan became an independent
sovereign state officially known as the Hashemite Kingdom of
Transjordan. The capital of Jordan is Amman. This is the largest city in
Jordan ("Jordan," 2014).
The government in Jordan is a constitutional hereditary
monarchy. This type of government is a form of democratic
government in which a monarch acts as a nonpolitical head of state

within the boundaries of a constitution; however, the king holds wide

executive and legislative power. Their first king was Abdullah II and
their current prime minister is Abdullah Ensour ("Jordan," 2005). The
main languages spoken in Jordan are Arabic and English. 98% of the
population is Arab, 1% Circassian, and 1% Armenian. Most of the
people in Jordan are currently practicing Islam. A small percentage of
Jordanians are practicing Christianity and other types of religion. Of
these people, 92.6% of them can read. Their culture can be described
as a relatively secular society that is increasingly dealing with the
effects of globalization. Jordan is considered one of the Arab Worlds
most cosmopolitan countries ("Jordan,").
As far as the apparel and textile markets of Jordan go, their
market is considered small but significant. They mainly export textile
yarn, fabrics, made-up articles, and related products and apparel. With
a labor force of nearly 1.8 million, the textile and apparel industry
employs approximately 60,000 people, according to the World Bank
("Jordan's textile and," 2004). Jordans textile and apparel industry has
benefited from numerous free trade agreements the country has
signed as part of efforts to strengthen international cooperation and
increase exports. There is nothing particularly unique about their
market, however they are still being classified as an emerging market.
Industrial wise, most of their factories in QIZ zones have been built

with foreign investment funds from countries such as Hong Kong,

Israel, and South Korea ("Jordan," 2014).
The population in Jordan is 7,930,491. Currently the labor force of
Jordans textile and apparel sector are held by guest workers that are
brought in from other countries to work. These workers are primarily
from Bangladesh, India, and Sri Lanka. In 2000, Jordan joined the World
Trade Organization and signed the Jordan-United State Free Trade
Agreement. A year later then they signed an association agreement
with the European Union. Both the Jordan-United States FTA and the
Qualified Industrial Zone agreement have significantly increased
Jordans access to U.S. market. The FTA with the U.S. allows Jordanian
products made in designated areas containing Israeli inputs to enter
the U.S. duty-free and quota free ("Jordan,").
Jordans trading partners include the U.S., Iraq, India, Saudi
Arabia, China, Germany, Egypt, and Italy. Their largest trading partners
are Saudi Arabia and the EU. Their industries are clothing, fertilizers,
phosphate mining, pharmaceuticals, petroleum refining, cement,
inorganic chemicals, light manufacturing and tourism. They export
about $8,066 billion in clothing, phosphate, fertilizers, potash,
vegetables, and pharmaceuticals. 13.4% of those exports come from
apparel exports. They import $14.01 billion in crude oil, machinery,
transport equipment, food, live animals, and manufactured goods

("Jordan,"). The Jordanian textile and apparel industrys U.S. customers

include brands and retailers such as Gap, JCPenney, Levi Strauss & Co.,
Liz Claiborne, Calvin Klein, Tommy Hilfiger, Walmart, Kmart, Limited,
Sears, Columbia, New York Laundry and Victoria's Secret. They are
ranked 18th on the 2012 Global retail development Index, which lists
the 30 most attractive retail markets in the world ("Jordan's textile
and," 2004).
However, despite the attractive retail market, Jordan has been
faced with numerous issues impacting its textile and apparel industry.
A decreasing natural gas supply to the country and increasing oil prices
have necessitated the import of more expensive fuel to generate
electricity. Also there is labor unrest. Several of the countrys new
agencies have reported strikes by factory workers demanding
increased wages, improved health insurance coverage, and other
benefits ("Jordan's textile and," 2004). However, with this being said,
Jordan is focusing on sustainability and its natural resources. Jordan is
highly dependent on its fragile environment; they ensure that
environmental resources water, soil, and plants are used in a
sustainable manner. They have also created the SEE-U Jordan program,
which gives people a unique opportunity to study ecosystems,
biodiversity, and environmental sustainability in Jordan ("See-u
Jordan,).

Within the last decade Jordan has been working to improve labor
conditions and human rights in the textile and apparel sector. In 2008,
Better Work Jordan was created and launched. This is a partnership
between the International Labour Organisation and the World Banks
International Finance Corp. The ultimate goal of this partnership is
improving compliance with labor standards in the apparelmanufacturing sector. The ministry of Labour has mandated that all
apparel-producing and exporting factories participate in the program
("Jordan's textile and," 2004).
Israel has been recognized over the entire world as a high-tech
innovator in the apparel and textile industry. Their expertise has
created a successful dynamic in the world of fashion and textiles. Israel
set foot in the fashion world in the late 1960s and have established a
good reputation internationally over the past 50 years. Israel keeps
pushing forward using high quality and creativity to get them to the
top.
The culture of Israel is very diverse due to their population of
immigrants that came from 5 different continents and more than 100
countries. Because of these immigrants Israel has many different
significant subcultures; however, the roots of Israeli culture developed
way before the foundation of the state of Israel and strongly reflect
Jewish history. Research shows that Israel is a family-oriented society
with a strong sense of community. They have over 83 languages with

Arabic and Hebrew being the official languages of Israel. In 2012

statistics showed that Israel was the 2nd most educated country in the
entire world. Literature in Israel has shown creative orientation that is
influenced by the West and East. Classical music has been vibrant and
popular in their culture since the 1930s; however, traditional folk
dances and modern dance have taken over today. Cuisine in Israel is
another important piece of culture. It is said that a fusion of cuisine has
developed over the years and that food is strongly influenced on the
geography or region of the country. For example, you may have to be
in a certain region of the country in order to divulge in olives,
chickpeas, dairy, fish, and certain fruits and vegetables. They also
have a traditional dinner in Israel called the Shabbat dinner, which is
eaten with your family on Friday night. Family time and marriages are
strongly encouraged in this culture. Marriages have to be registered
with the Chief Rabbinate and civil ceremonies are not performed in
Israel. When spending time with loved ones, someone in this culture
may enjoy camping and hiking which are the most popular past time in
Israel partly because of their national parks. Israel also has very nice
beaches making beach volleyball a well liked past time. The weather in
Israel consists of hot and dry summers with cool and rainy winters.
Individuals who live in Israel will say that a hot spot is the City of Eilat
because it has good beach weather all year round. Although many

enjoy beach volleyball, basketball and soccer the most popular played
and watched sports in this culture (Encyclopedia of Nations).
Politics in Israel are very similar to the United States. The
government consists of three branches including the executive,
legislative, and judicial. The legislative branch is comprised of the
Knesset, which has 120 members. Their political parties consist of two
major parties with several small parties and religious parties. When it is
time for individuals to place their votes, they vote for party lists rather
than individual candidates. When a president of Israel is elected, he or
she has a term of seven years. The political system in Israel is pretty
effective and gets the job done. Although they do not have a
constitution, they have a set of rules called the Basic Laws which is
similar to a constitution (Encyclopedia of Nations).
Israel is considered to be a highly developed country with a high
standard of living. They have high life expectancy and a fair labor
force. Their labor force is made up of forty-seven percent women.
Individuals are only allowed to work if they are fifteen years or older.
Since the 1980s the government has created a weak political labor
force and economic structure based on significant differences between
rich and poor, men and women, and ethnic communities. Although the
labor force and free market system has caused some conflict with
individuals of Israel has experienced growth in trade. The US-Israel
Free Trade Agreement has given Israel a major boost and growth in

trade. This trade agreement has eliminated almost all tariffs for Israel
allowing them to benefit immensely in exponential growth. Their free
trade agreements include the United States, European Union, European
Free Trade Association, Canada, and Turkey. Israel is considered to have
a trade deficit meaning that their number of imports exceeds the
number of products that they export from their country. One of the
reasons that they have a trade deficit is because of the Jewish states
dependence on raw materials. Because Israel and experienced so
much growth with trade they have been able to create a thriving textile
and apparel industry (Encyclopedia of Nations).
Israel focuses on certain methods in their apparel and textile
industry that produce quality and cost competitive goods in the
market. They have also focused on niche markets in order to gain a
competitive edge. One of the reasons that Israel has been successful in
the apparel and textile industry is because of the Middle East Peace
Process, which has enabled companies to move production to lower
cost countries in the region making work more efficient. Another
reason they have been able to be successful is because of their free
trade agreements with two of the biggest apparel markets, which are
the United States and the European Union. The United States helps out
Israel by exporting computers, integrated circuits, aircraft parts,
defense equipment, wheat, automobiles, and many other vital
products. Israel also exports a lot to the United States. These exports

consist of cut diamonds, jewelry, integrated circuits, printing,

machinery, and telecommunications equipment. Specifically in the
apparel and textile industry Israel has earned their reputation in
swimwear in the 1960s. They have also created a good reputation
from the quality of their leather goods. Israel has been successful in
knitwear, home textiles, and sportswear. One of the major reasons they
have been able to be so successful is because of their technology and
equipment. Israel has been able to combine traditional industrial
tailoring, design and textile skills with advanced technology
innovations to produce a wide range of merchandise in the apparel and
textile industry. They have seen success in high performance fabrics
and their high tech threads. They have created seamless products by
discovering new ultrasonic functions. This means that Israel is able to
produce ultrasonic clothing, which cuts and seals fabric pieces with out
the need for conventional sewing. This technology and innovation has
created success for Israel in the apparel and textile industry and has
given them an advantage over other countries competing in the same
industry (Retailing in Israel).
Although the apparel and textile industry is booming in Israel,
they do have a slower growth rate when it comes down to their
industrial development. This is because of rising unit prices and a less
stable economy. Another result of their slower growth rate is
government interventions. Although some sections of the industry

have been experiencing slow growth, the Internet in Israel has

experienced exponential growth. Forecasters are also saying that the
growth of the industrial development and the growth of the apparel
and textile market are going to continue to keep growing (Retailing in
Israel).
Israel is striving to become the best innovators and make their
way to the top while also being sustainable. The United States Israel
Center on Innovation and Economic Sustainability is one of the main
contributors to the help of forcing sustainability into the industry in
Israel. This knowledge center and incubator of innovation is looking for
long-term economic success in Israel. There are many pioneers who
are striving for success in sustainability in Israel. He uses the phrase
do more with less in order to encourage individuals and businesses to
pick up the habit of being sustainable (US-Israel Center).
Israel has used their high tech machines to push forward in all
industries especially the apparel and textile industry. They have been
moving forward and striving to fain the upper hand against other
countries. They are forecasted to keep growing and are thriving off of
their exports. Changes in their history have helped them get where
they need to be today. In the 1990s Israeli companies relocated
production facilities to countries where manufacturing is more cost
effective in order to remain more competitive in world markets. During
this time they also saw reduction in price of clothes due to increase of

imports. Israel is very successful in the apparel and textile industry.

They have worked hard and experienced many changes in order to get
the results they have wanted.
Turkey is a country located in Eurasia. It is unique because it
straddles two continents, southeastern Europe and southwestern Asia.
97% of Turkeys area occupies a place called Anatolia, which is a
peninsula of land that lies between the Black Sea and the
Mediterranean Sea where the two continents meet. The other 3% of
land is in a place called Thrace, an area in the southeastern Balkan
Peninsula north of the Aegean Sea. Turkey has an area of 301,382
square miles with a total coastline of 5,238 miles (Encyclopedia of the
Nations). For something to compare to, Turkey is slightly larger than
the state of Texas. Its capital city is called Ankara and it is located in
the northwest center of Anatolia. Turkey is an interesting country
because it shares its borders with 8 countries, including Armenia,
Azerbaijan, Bulgaria, Georgia, Greece, Iran, Iraq, and Syria (Turkey Turkish Language, Culture, Customs and Etiquette).
The culture in Turkey is made up of 80% Turkish people and 20%
Kurdish people. Their religions include 99.8% of the country as Muslim,
mostly Sunni, and the other 0.2% is Christians and Jews. They have
three major groups, which include the Anatolian Turks, the Rumelian
Turks, and the Central Asian Turks. The Anatolian Turks lived in the
Central Anatolian Plateau for centuries. The Rumelian Turks who were

originally immigrants from the Ottoman territories in the Balkans. The

Central Asian Turks who descended from immigrants from the
Caucasus region, southern Russia, and Central Asia (Encyclopedia of
the Nations). The official language of the country is Turkish, which is
spoken by about 90% of the population. Minority languages include
Kurdish and a small amount of Arabic (Turkey Economy).
The government of Turkey is called a Parliamentary
Representative Democratic Republic. Interestingly, it is the only
country that has the majority populations being Muslim that operates
under a secular constitution and a democratic government. The
President of Turkeys name is Abdullah Gul and the Prime Ministers
name is Recep Tayyip Erdogan. The Prime Minister is the head of the
government and has control in most things, whereas the President is
only head of state and has more reserve powers (Turkey Central
Intelligence Agency).
The climate of Turkey is temperate. They have hot, dry summers
and mild, wet winters. The climate gets harsher in the more arid
interior. The coastal areas that border the Aegean Sea and the
Mediterranean Sea have a temperate Mediterranean climate. The
winters on the plateau can be very severe. The temperatures can drop
to as low as -22 degrees to -40 degrees Fahrenheit. Snow can lay on
the ground for as long as 120 days out of the year (Turkey Central
Intelligence Agency).

The apparel and textiles industry is huge for the country of

Turkey. The industrial expansion in the 1960s and 1970s brought about
the modern textile industry in Turkey. Textiles and apparel are one of
the most important sectors in the Turkish economy, accounting for 10%
of the GDP, 20% of the labor force, and 40% of the total manufacturing
output. Today, Turkey has become extremely competitive in
international markets. It was ranked sixth in world exports of clothing
in 1998. Turkey is a major grower and supplier of cotton, the third
largest mohair producer, and has the sixth largest synthetics capacity.
Another strong competitor in world markets is their home textile
industry. Turkish towels and bathrobes, which are mostly produced in
the cities of Denizli and Bursa, have a worldwide reputation for their
quality. The home textiles sector accounted for 3.2% of Turkeys total
exports in 1999 and it brought in about $859 million. Another major
part of Turkish textiles would be their cotton spinning. The capacity in
Turkey is equivalent to that of the European Union as a whole. Turkish
wholesalers include Bee Fashion Apparel, which is womens fashions,
Turkish Towel Store, which is wholesale towels, and Berna Erman, which
is high end evening wear. Some of their retailers include Migros Turk
TAS, which is the biggest supermarket chain that Turkey has to offer,
BIM, which is mainly groceries, and Bora Aksu, who is a Turkish fashion
designer (Turkey: Prospering Textile and Apparel Industry).

According to the International Monetary Fund, Turkey is

considered an emerging market. The CIA also considers Turkey to be a
developed country. Turkey is a world leader in producing agricultural
products, textiles, motor vehicles, ships and other transport
equipment, construction materials, consumer electronics, and home
appliances. The GDP of the country is $1.426 trillion (PPP, 2013). Their
population is around 81,619,392 people and was last calculated in June
of 2013. Their birthrate is 17 births for every 1000 in the population.
The life expectancy of Turkish people is 74.5 years, with a males being
72 years old and the females being 77.1 years old (Encyclopedia of the
Nations).
When it comes to trade barriers, the Turkish government made
the decision to increase tariffs on woven fabrics, apparel, and apparel
accessories in 2011. Also, Turkey has been a user of temporary trade
barriers, which mainly includes antidumping, since the 1990s. They
have also started to implement the use of global safeguards, China
specific safeguards, and countervailing duties. Turkeys imports include
apparel, foods, textiles, metal manufacturers, and transport
equipment. Their partners in trade include Germany, Iraq, Iran, UK,
UAE, Russia, Italy, and France, with Germany being their top partner in
exports. Their imports include machinery, chemicals, semi-finished
goods, fuels, and transport equipment. Their top partners include

Russia, Germany, China, USA, Italy, and Iran, with Russia being their
top partner in imports (Turkey Central Intelligence Agency).
While many countries around the world are trying to hop on the
sustainability bandwagon, Turkey is far from it. They are not famous for
having sustainable green policies. Istanbul has not even implemented
a proper recycling system yet. The city also allows dirty, polluting
buses and trucks into the territory. Another idea Turkey is planning is a
new highway that will need 1 million trees to be cut down in order to
finish (Sustainability in Turkish Cities: Dream or Reality?).

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