MoC in desperate bid to avoid imminent Turkish textile duties

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KARACHI – To avoid huge potential losses likely to be incurred as a result of the imposition of anti-dumping duty on garments and fabrics imports in Turkey, Pakistan has started intense lobbying in the foreign country to protect its domestic manufacturers.
The Ministry of Commerce (MoC) has sent the Chief Executive of Trade Development Authority of Pakistan (TDAP) to Turkey, as part of diplomatic wrangling over the duties, he will hold talks with senior officials of the foreign country, sources said. TDAP CEO Tariq Iqbal Puri, who reportedly possesses strong diplomatic contacts in Turkey is currently in the foreign country who during his visit will try to convince the concerned authorities in Istanbul to curtail the losses of Pakistani exporters after the implementation of proposed safeguard measures by Turkey on fabric and garment imports.
During the last two days, sources indicated that the CEO has held a meeting with leading Turkish importers of fabric, denim fabric and ready made garments to rally the support of local importers and manufacturers. Interestingly, sources said, Turkish businessmen are apparently also unhappy by the fresh move to levy further duties on imports, saying that the measure was totally unjustified. They allegedly requested the Pakistani official to convey their sentiment to officials in Ankara and opposition to the decision.
On the TDAP’s chief agenda will be meetings with Turkish authorities in Ankara, including Minister of Commerce Zafar Caylan and Minister for Finance Ali Babacan to convey the views of the Pakistani Government and the businessmen of both countries. Pakistani exports of woven fabric to Turkey are likely to suffer a punishing blow when the intended anti-dumping duty on garments and fabrics imports is imposed. The decision is apparently to protect domestic manufacturers.
Pakistan has developed a strong toehold in the Turkish market, particularly in the Denim and Gray Cloth categories, sources said. The foreign country is ostensibly taking these measures under the provisions of the WTO Agreement on safeguards to preserve the domestic market and businesses. Most of the country’s apparel factories are also fearful of the imposition of the proposed huge tariff by the Turkish government.
It is pertinent to mention that the export of any product is considered ‘dumping’ if a company sells the product at a price lower than the price it normally charges in its home market, according to WTO regulations. Recently, Turkey Council of Ministers decided to ratify the anti-dumping duty proposal at the earliest to protect its domestic manufacturers from rising imports, while the Turkish government was to impose the duty on shipments of woven fabrics and ready made garments from countries with which it does not have a free trade agreement.
It is worth mentioning that Pakistan currently exports $341.6 million worth of textile products to Turkey, out of which $237.7 million was cotton cloth and $33.6 million in the form of yarn.