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Textile sector seeks removal of Turkish safeguard duties
06
Apr '11
Indonesian businessmen have requested Turkish President Abdullah Gul to lift trade barriers imposed on some Indonesian products. Turkish President Abdullah Gul arrived in Jakarta on Monday on a four-day official visit of Indonesia.

Recently, Turkey had imposed some restrictions on exports from Indonesia. As per official data provided by Indonesian Trade Ministry, Turkey has imposed antidumping and safeguard duties ranging from 5 to 33 percent on 58 Indonesian products, including woven fabrics and apparel.

Turkey imposed these duties in addition to the previous 6.4 percent duty already in effect.

Indonesia's Communication Forum of the National Industry Associations appealed President Susilo Bambang Yudhoyono to discuss the trade issues with his Turkish counterpart. Forum's co-coordinator Franky Sibarani told that they wanted the Government to strengthen Indonesia's trade relations with Turkey on very fair grounds.

For Indonesian products, Turkey is the gateway to both Eastern and Western Europe markets. But because of such harsh duties, Indonesian textile products have become uncompetitive in Turkey markets.

Indonesian Textile Association chairman Ade Sudrajat said that they were losing their clients because of the high costs. He said the additional duties had pushed up the prices of Indonesian goods making them uncompetitive.

He cited an example of unprocessed polyester synthetic staple fibers which had been slapped with an anti-dumping duty from 6.2 to 12 percent. In case of woven fabrics and apparels, safeguard duties of 18 to 27 percent has been imposed.

Indonesia's exports to Turkey recorded $1.07 billion last year while imports stood at $304.76 million. Its exports mainly consist of textiles, chemical, plastic and steel products.

Fibre2fashion News Desk - India

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