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Turkey ends debate on fabric & garment import duty

03
Jan '12
Ending a debate that dragged for almost a year, the Government of Turkey has avowed to continue with the import duty on fabrics and garments that it imposed in January 2011.

The Government imposed anti-dumping duties on fabric and garment imports from several countries, including its major import destinations like Bangladesh and Pakistan.

The Government argued that products from these countries are very low priced and hence pose a threat to Turkish manufacturers. It even said that some of the import items contained carcinogens that were injurious to health.

This decision led to a debate in Turkish textile and apparel sector with one group hailing the Government's move as the one that would increase employment in the country and improve exports. On the other hand, a second group protested the decision saying it would increase prices of various items and also decrease the competitiveness of Turkish industry in international markets.

However, the latest figures indicate that Turkey's exports have grown in 2011 compared to 2010. The figures also reveal that employment in the textile sector has increased since the import duty was levied. The number of new companies entering the country's textile sector has also increased during the period.

The textiles sector is the only sector that has seen a trade surplus in Turkish economy.

Economy Minister Zafer Çaglayan said the dispute regarding the imposition of import duty is avoidable. He informed that the decision to levy anti-dumping tax was arrived at after months of discussion with two sides.

He added that the decision was taken to protect the domestic manufacturers from unfair competition.

Meanwhile, Turkish Confederation of Businessmen and Industrialists (TUSKON) said textile firms were doing better business than earlier and no company has gone into liquidation since imposition of anti-dumping duty on fabrics and garments.

TUSKON called on its textile sector members to avoid engaging in debates on the anti-dumping issue.

Fibre2fashion News Desk - India


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