Pakistan’s exports to Turkey drop by 50pc due to 42pc duty

The country’s textile exports to Turkey have dropped by almost 50 per cent to around $500 million from $1 billion after the latter imposed safeguard duties to protect its domestic industry. The government of Pakistan, sources said, had raised the issue at the highest level with the Turkish officials, but there had been no developments.

This was discussed in the meeting of Pakistan Readymade Garments Manufacturers and Exporters Association with the officials of the Textile Ministry held at PRGMEA House on Saturday. The meeting was attended by the Executive Committee, central chairman Ijaz A Khokhar and vice chairman Naseer Malik.

The participants of the meeting observed that Pakistan’s bilateral trade with Turkey grew at good pace and crossed one billion dollar mark in 2010-11, but it started to decline after the imposition of safeguard duties in August 2011.

As both countries are engaged in talks over Free Trade Agreement (FTA), the PRGMEA urged the government to convince its Turkish counterpart to waive Safeguard Measures Duty of 42.2 percent which Turkey has placed on Pakistan’s apparel imports.

Addressing the meeting, PRGMEA central chairman Ijaz Khokhar said that Turkey had placed the extra Customs Duty on apparel imports from Pakistan, hampering mutual trade growth. He said Turkey had no threats from Pakistan garments since it manufactures 95 percent of fashion and casual wears.

Khokhar said bilateral trade decreased from $1.082 billion in 2010-11 to $630.46 million during current fiscal showing 42 per cent decrease. Pakistan’s exports decreased from $906.58 million in 2010-11 to $455.83 during current fiscal year, which is a 50 per cent decrease. He said Pakistan’s imports from Turkey showed a small decrease from $176.26 million in 2010-11 to $174.63 million which was only one percent decrease.

Major items of exports to Turkey include articles of apparel, cloth, knitted crochet, and articles of apparel of textile material, cotton fabric (woven), chemical material and product, chemical elements and compounds, cotton yarn, leather and rice. .

He said original customs duty is 9.2 percent on garment products, including denim, martial arts uniforms and home-textiles but 42.2 percent SMD increased the levy to 52 per cent which was too high to afford on the world market.