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Texprocil hails Turkish cotton yarn safeguard duty removal
Jan '13
Turkey has repealed the safeguard duty imposed on import of cotton yarn with effect from 4th August 2011 for a period of 3 years on 31st December 2012. 

Welcoming this move, Shri Manikam Ramaswami, Chairman, Texprocil complimented the Government for its proactive efforts in ensuring that the unjustified measures imposed by Turkey were withdrawn well before their official expiry by August 2014.

It may be recalled that these measures were an extension of an earlier safeguard measure imposed by Turkey against the import of cotton yarn for a period of 3 years from 14.07.2008. 

India had held consultations with Turkey on 12th and 13th March 2012 and impressed upon them the serious violations that had taken place while imposing safeguard duties on import of cotton yarn and that Turkey had breached safeguard provisions of GATT and WTO Agreement on Safeguard Measures by illegally extending the duties after t he original period for which the safeguard measure was put in place had expired as there was no such provision in the Agreement.

The withdrawal of the Safeguard Measures on imports of cotton yarn into Turkey augurs well for exports of cotton yarn from India which had declined from US $ 198 Million in 2007(prior to imposition of Safeguard Measures) to US $ 94.57 Million in 2011. 

During January – October 2012 imports declined to US $ 20.77 million from US $ 85.30 million i.e. by (-) 75%.  In quantity terms imports declined to 4.20 million kg from 14.85 million kg during this period.   India also slipped to the 4th position in terms of supplier in 2012 from being the largest supplier in 2008. 

With Turkey being the gateway to Europe, removal of safeguard duties would enable India restore its exports to earlier levels and also increase its market share. The Council has already drawn up plans to participate in the Istanbul Yarn Fair in Turkey being organized from 29th May 2013 to 1st June 2013.

Shri Manikam Ramaswami stated that the Government of India had an excellent record in defending the trade interests of exporters especially in the textile sector which is highly vulnerable to various trade defense measures like Anti Dumping and Safeguard Action due to its importance in the economies worldwide.


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