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Turkish safeguard duty to have severe impact on RMG exports
Apr '11
Turkey had imposed a provisional safeguard duty on many countries, including Bangladesh at the rate of 17 percent on import of apparel products, in order to protect its domestic manufacturers.

Having a Least Developed Country (LDC) status, Bangladeshi clothing enjoy duty-free access to Turkish markets, which has turned Turkey in to a major destination for shipments of garments from the country.

However, this new safeguard duty is expected to create an impact on the volumes and value of exports from the biggest foreign exchange earner from Bangladesh.

However, the 17 percent duty is a relief for garment exporters considering that the Turkish government had proposed a duty of 27 percent in January.

The 10 percent lower duty measure came after a delegation of Bangladesh government and private sector representatives met Turkish representatives in March.

Bangladesh is trying to have the 17 percent too removed by consultations. However, if it is not fruitful, Bangladesh is expected to take the case to the World Trade Organisation (WTO).

A positive result in this regard is expected as the Bangladeshi Prime Minister is expected to visit Turkey, early next month.

Editor's note –
This decision is expected to have a major impact on garment exports from the country. In recent years, due to the zero duty status, shipments of clothing had ballooned to around one billion dollars.

Fibre2fashion News Desk - India

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