ISLAMABAD
Ministry of Textiles is considering on ways to convince the Turkish government to waive off 42.2 per cent safeguard measures duty on Pakistan’s apparel imports, which resulted in slicing country’s textile exports by almost 50 per cent to around $500 million from $1 billion after the latter imposed duties to protect its domestic industry.
According to officials, ministry has taken up the matter on the request of the textile industry representatives. Textile industry association, in a meeting, pointed out that bilateral trade with Turkey had grown to one billion dollar mark in 2010-11 but was reversed after the imposition of safeguard measures duty since August 2011.
According to the officials, the department is streamlining all possible ways to waive off the duty. Government is already in the process of striking trade agreements in software insurance and banking services, as both the countries are engaged in talks over Free Trade Agreement (FTA).
The officials said that initial attempts failed to bear any fruit and now government was considering launching a comprehensive campaign to waive off the duties, so that textile goods could reach Turkish markets.
The local industrialists say that Turkish textile industry has no threat from Pakistan but still it has placed extra Customs duty on apparel imports from Pakistan. Garment industry says that the original Customs duty on garment products, including denim, martial arts uniforms and home textiles in Turkey was 9.2 per cent, which has been increased to 52 per cent. This increase in duty by Turkey has blocked apparel industry exports to Turkey.
It is pertinent to mention that Pakistan’s imports from Turkey showed a small decrease from $176.26 million in 2010-11 to $174.63 million which was only one per cent decrease.
Major items of exports to Turkey include articles of apparel, cloth, knitted crochet, and articles of apparel of textile material, cotton fabric (woven), chemical material and product, chemical elements and compounds, cotton yarn, leather and rice.