Bangladesh presses Turkey to lift curbs on fabrics imports
Bangladesh has urged the Turkish government to withdraw proposed measures to restrict imports of fabrics and garment items to boost trade between the two countries.
The demand was raised at a discussion meeting between a business delegation from Turkey and the Bangladeshi businessmen at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) yesterday.
Turkey plans to impose a 17 percent duty on imports of fabrics and ready-made garment products from all least developed countries from July of the year as a measure to protect its own garment industry.
Currently, garment exports to Turkey from Bangladesh are duty-free.
As a result, Bangladesh as an LDC will be liable to pay the duty while exporting garments to Turkey, a major garment export destination for the country, said Jashim Uddin, first vice-president of FBCCI, who led the Bangladesh team to the meeting.
He said if Turkey does not change its decision or exempt Bangladesh from paying the levied duty, the targeted trade between Bangladesh and Turkey of $3 billion by 2015 might not be possible to attain, because the exporters will not feel much encouraged by such a move.
"We will take up the issue with the Turkish government again when Prime Minister Sheikh Hasina visits Turkey next month to attend at the LDC meeting," he added.
Mohammad Hatem, vice-president of Bangladesh Knitwear Manufacturers and Exporters Association BKMEA, told the meeting that a team led by Commerce Secretary Ghulam Hussain attended a hearing on the issue on March 7-8.
"During the hearing, the Turkish government agreed to reduce the duty from the earlier proposed 27 percent to 17 percent for the LDCs, but we demanded a total waiver or further reduction of the duty to around 10 percent," he said.
Hatem said the Turkish government can adopt temporary safeguard measures to protect the local industry, but it is going to impose the measure without the approval of the World Trade Organisation (WTO).
At the meeting, Ahmet Cakir, general secretary to the Confederation of Businessmen and Industrialists of Turkey (TUSKON), said he will raise the issue of the safeguard measures to the Turkish government for necessary actions in this regard.
"The Turkish government is trying to save the local industry by imposing the safeguard measures. The tenure of the safeguard will be reduced gradually and at one stage it will be eliminated," Cakir said.
The data from the FBCCI shows that trade between the two countries is in favour of Bangladesh. During the July-December period of fiscal 2010-11, Bangladesh exported goods worth $323.35 million and imported goods worth $75.29 million.
Bangladesh mainly exported knitwear, woven items, jute goods, raw jute and agri-products. The imported items include machinery and mechanical appliances, base metals, textiles and textile articles and medical and surgical instruments.
During his visit to Bangladesh in November last year, Turkish Prime Minister Recep Tayyip Erdogan expressed hope that the trade between the countries will cross the $3 billion mark by 2015.
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