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Textile exporters to be affected by Turkish policy
Jan '11
Following the Turkey's decision of imposing anti-dumping duty on imports of garments and fabrics in order to safeguard the domestic producers, at least 500 apparel firms in Bangladesh are apprehending to face severe setback.

Around 80 percent of Bangladesh's total annual readymade garments export worth $16.2 billion is towards Turkey, on which the Turkish government proposes to impose around 32 to 37 percent anti-dumping duty.

As specified under the World Trade Organisation (WTO) rules, export of any goods to any other country by a firm at a price lower than the one usually charged in the home country, constitutes 'dumping'.

This decision of the Turkish government came about when Dhaka and Ankara had taken firm steps to strengthen their trade relations so as to boost the mutual trade to three billion dollars by 2015.

Last year, Bangladesh earned $970 million solely from its apparel exports to Turkey. Turkish firms like Mevi Jeans, Alkan Tex, Mevi, Akin Textile, Tema, Collizione, Cons Jeans, Collins and Defactor have mostly imported these apparels.

The Turkey Council of Ministers' decision to shortly approve the proposal for anti-dumping duty may raise severe concerns for the apparel firms in Bangladesh that ship goods to Turkey.

If this proposal of the Turkish government gets a sanction, it would affect around 380 garment firms in Dhaka and 120 firms in Chittagong which includes the subcontracting firms.

These firms all together have booked orders worth US $600-650 million for the period between January and June, 2011 which may all become part of the stock if the duty is imposed.

Turkey proposes to impose an anti-dumping duty of around 40 percent on textile imports from India and Sri Lanka, 60 percent on imports from China and around 32 to 37 percent on that from Bangladesh.

Fibre2fashion News Desk - India

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