KARACHI – Pakistan is mulling using diplomatic channels to protect its exports of woven fabric which are likely to suffer a major blow in Turkey which intends to levy anti-dumping duty on garments and fabrics imports to protect its domestic manufacturers. As Pakistan has garnered a significant share in Turkish imports, particularly in the markets of Denim and Gray Cloth, the fresh move would impact strongly on Islamabad’s exports to the foreign country, sources have said.
The foreign country is taking these measures under the provisions of the WTO Agreement on Safeguards in order to protect its own domestic market. Pakistan’s textile manufacturers fear a serious blow after imposition of proposed large tariff by the Turkish government.
It is pertinent to mention that 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 the WTO rules. The recent decision by the Turkish council of ministers to ratify the anti-dumping duty proposal as early as January 18, 2011 to protect its domestic manufacturers from increasing imports, while the Turkish government is imposing the duty on shipments of woven fabrics and ready-made garments from countries with which it does not have a free trade agreement.
To take the issue at ministerial level, an urgent meeting was also organised by Trade development Authority of Pakistan (TDAP) on Tuesday, in which representatives of all stakeholders in woven fabric export to Turkey including Ministry of Textile Advisor Dr Mirza Ikhtiar Baig, Shahid Soorty, Tariq Raf, and others were invited.
The exporters in the meeting, which was held to discuss the anticipated additional customs duty on imports into Turkey, were unanimous in demanding that immediate diplomatic and political channels be utilised to protect Pakistan exports.
The participants discussed a possible course of action to protect the country’s exports from imposition of heavy tariff by Turkey, as Pakistan enjoys a good share in the Turkish imports. According to sources, Pakistan currently exports $341.6 million worth of textile to Turkey out of which $237.7 million is cotton cloth and $33.6 million yarn.
