Business

Pakistan-Turkey : Tariff hike to affect textile exports

Industry officials say $240m worth of exports may be hurt.

Express March 29, 2011

FAISALABAD:

The proposed increase in custom tariff on Pakistani textiles by the Turkish government will jeopardise exports of garments, home textiles, made-ups and fabrics to Turkey, say officials of the Pakistan Textile Exporters Association (PTEA).

PTEA Chairman Wasim Latif and Vice Chairman Adil Manzoor Elahi said in a statement that heavy custom duties of 52 per cent would be imposed on Pakistani garments, 24.5 per cent on denim fabrics and 24.5 per cent on woven fabrics.

Turkey is a key market for Pakistan’s textile exports, which stood around $350 million last year. They pointed out that the increase in custom duties would likely hurt $240 million worth of exports.

The Turkish move would exacerbate troubles of the textile industry that has already been affected by power cuts, they said. They felt that the hike went against international trade standards and violated world trade regulations.

They said the decision was unexpected after an agreement reached between the two countries during the Pakistan-Turkey CEO Forum which targeted bilateral trade worth $2 billion.

PTEA officials said they would take up the matter with the Turkish government and inform them about the negative impact of the move on Pakistan’s textile sector and the economy.

Published in The Express Tribune, March 30^th, 2011.

COMMENTS (2)

Hedgefunder | 13 years ago | Reply What happened to the special relationship?? The so called Key market with worth of $350 million trade !! Its not that much !! So much for the forum ! Where the dreams of $ 2 million trade have just evaporated!!! Turkey currently too has its own economic crises, in terms of high unemployment rate, Inflation too is a issue, consumer confidance has dropped and have balance of payments issues too, however its not that bad and will be able to recover in 2012. International agreements in regards to trade are only as good as the state of economy and demand for products and consumer confidance !! they are not binded in any form of legal framework or contractual obligations!!!! So one should not waste time with silly protests and waste more resources!!! Anyway Textiles Industry has done well to get Amnesty on taxation at local level!!

Vicram Singh | 13 years ago | Reply Pakistan were cribbing about India creating issues in the EU-Pakistan negotiations for preferential access for Pakistani exports. It seems even your "brotherly Muslim country" is not helping you out too much - INSPITE OF HAVING MADE AGREEMENTS. Country/economy/people comes first AND then religion.

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