Anti-dumping duty by Turkey: $350 million textile exports in danger
KARACHI (January 20, 2011) : Pakistan's some $350 million worth textile exports are at stake as Turkey is considering imposing anti-dumping duty on import of fabrics and garments from many countries, including Pakistan. Exporters told Business Recorder on Wednesday that the Turkish government has initiated investigation on garments and fabrics from different counties.
This investigation covers Pakistan and other countries such as India, China, Indonesia and Thailand. As per the proposal, the initial duty on fabrics will increase from 6.4 percent to 35 percent and on garments from 9.6 percent to 52 percent. This is expected to come into effect immediately, if imposed. At present, the proposal is under discussion, and the Council of Ministers in Turkey will soon finalise the issue.
Sources said that several leading fabric importers and retailers in Turkey have already informed Pakistani exporters regarding this development, which has created panic among Pakistani exporters. Textile exporters have urged the federal government to take up this matter immediately at the highest level, and try to stop this immediately, otherwise exports of the county's largest sector would be hit directly, resulting in decline in export growth.
"Turkey was just becoming leading hub for Pakistan for textile as after USA and EU huge quantities are being shipped in grey and denim qualities,'' exporters said. It is already biggest textile market and in garments the biggest retailers like Collins, Mavi Jeans, Little Big, Collezione, LC Waikiki are being shipped, they added.
"Turkey is importing over $350 million textile products from Pakistan including $237 million fabrics. Rise in import duty would definitely be a very big loss for the fabric industry which was having excellent growth and many suppliers have established their offices," said Rana Mushtaq, chairman of Value-Added Textile Forum.
He said that textile export growth to Turkey is very encouraging and with current growth rate it is expected that textile export will cross one billion dollars mark in next two years. Mushtaq showed serious concern over the Turkish government decision to put manifold duty on fabrics and garments import from many countries including Pakistan.
"With this decision which is just now underway there would be a big mess for suppliers who have taken orders and goods are in pipeline along with goods which are in the ship," said Muhsin Ayub, a former chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA). He said that if the anti-dumping duty is imposed on textile export by Turkish government it will directly hit the overall export growth. Presently the country needs huge foreign exchange and these steps will result in decline in exports, he added.
The value added chairman along with PREGMEA chairman Ejaz Khokhar, chairman Pakistan Denim Association Shahid Soorty and Salamat Ali chairman PHA North have also jointly appealed to President, Prime Minister of Pakistan and Farooq, Minister for Textile Industry to discuss this matter at the highest level since Turkey is our brotherly country and it is one of the most important ally of Pakistan. They have asked government high officials that request should be made urgently to not to include Pakistan in this restriction and duty on export of Pakistani textile should remain unchanged.
Cotton and Textiles - Pakistan - Anti-dumping duty by Turkey: $350 million textile exports in danger
KARACHI (January 20, 2011) : Pakistan's some $350 million worth textile exports are at stake as Turkey is considering imposing anti-dumping duty on import of fabrics and garments from many countries, including Pakistan. Exporters told Business Recorder on Wednesday that the Turkish government has initiated investigation on garments and fabrics from different counties.
This investigation covers Pakistan and other countries such as India, China, Indonesia and Thailand. As per the proposal, the initial duty on fabrics will increase from 6.4 percent to 35 percent and on garments from 9.6 percent to 52 percent. This is expected to come into effect immediately, if imposed. At present, the proposal is under discussion, and the Council of Ministers in Turkey will soon finalise the issue.
Sources said that several leading fabric importers and retailers in Turkey have already informed Pakistani exporters regarding this development, which has created panic among Pakistani exporters. Textile exporters have urged the federal government to take up this matter immediately at the highest level, and try to stop this immediately, otherwise exports of the county's largest sector would be hit directly, resulting in decline in export growth.
"Turkey was just becoming leading hub for Pakistan for textile as after USA and EU huge quantities are being shipped in grey and denim qualities,'' exporters said. It is already biggest textile market and in garments the biggest retailers like Collins, Mavi Jeans, Little Big, Collezione, LC Waikiki are being shipped, they added.
"Turkey is importing over $350 million textile products from Pakistan including $237 million fabrics. Rise in import duty would definitely be a very big loss for the fabric industry which was having excellent growth and many suppliers have established their offices," said Rana Mushtaq, chairman of Value-Added Textile Forum.
He said that textile export growth to Turkey is very encouraging and with current growth rate it is expected that textile export will cross one billion dollars mark in next two years. Mushtaq showed serious concern over the Turkish government decision to put manifold duty on fabrics and garments import from many countries including Pakistan.
"With this decision which is just now underway there would be a big mess for suppliers who have taken orders and goods are in pipeline along with goods which are in the ship," said Muhsin Ayub, a former chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA). He said that if the anti-dumping duty is imposed on textile export by Turkish government it will directly hit the overall export growth. Presently the country needs huge foreign exchange and these steps will result in decline in exports, he added.
The value added chairman along with PREGMEA chairman Ejaz Khokhar, chairman Pakistan Denim Association Shahid Soorty and Salamat Ali chairman PHA North have also jointly appealed to President, Prime Minister of Pakistan and Farooq, Minister for Textile Industry to discuss this matter at the highest level since Turkey is our brotherly country and it is one of the most important ally of Pakistan. They have asked government high officials that request should be made urgently to not to include Pakistan in this restriction and duty on export of Pakistani textile should remain unchanged.
Cotton and Textiles - Pakistan - Anti-dumping duty by Turkey: $350 million textile exports in danger
