Pakistan-Turkey trade drops due to protective duties

[Nilgiri]

https://tribune.com.pk/story/2012156/2-pakistan-turkey-trade-drops-due-protective-duties/

Pakistan-Turkey trade drops due to protective duties

KARACHI:
The volume of bilateral trade between Pakistan and Turkey has dropped drastically from $1.08 billion to $792 million after the imposition of protective duty on textile by the latter.

Previously, textile exports to Turkey were based on normal tariffs, but later Turkey imposed a protective duty of 18%, which was very high, leading to a decline in textile exports to Turkey, said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Daroo Khan Achakzai.

“Turkey should remove local preventive duties in the preferential trade agreement (PTA) and prospective free trade agreement (FTA) with Pakistan,” Achakzai suggested.

He said he appreciated efforts of the government of Pakistan and Turkey to enter into a strategic economic framework (SEF) for enhancement of bilateral relations in trade, tourism, health care, hospitality, industry, education, housing, agriculture, aviation and banking.

Pakistan and Turkey had concluded nine rounds of negotiations, including the SEF, but so far the outcome of talks had not been shared with the stakeholders concerned, he pointed out, adding that the government needed to consult the stakeholders for formulating a list of concessionary items to be included in the FTA with Turkey.



Pakistan expected Turkey, being part of customs union with the European Union, to provide access to the Turkish market under a status similar to the GSP+. This assumption was, however, dashed due to the refusal of Turkey to extend the GSP+ status to Pakistan. Instead, Turkey conducted negotiations on the FTA between the two countries.

The FPCCI president urged the government to help remove all anti-dumping and non-tariff barriers before entering into SEF.

He also underlined the need for activating a train service with Turkey in order to reduce trade cost and transit time as trade through sea was not cost-effective for both nations.

He added that Turkey should promote direct trade with Pakistan, instead of third countries like import of surgical items from Germany, which were originally manufactured in Pakistan.

Published in The Express Tribune, July 13th, 2019.

 

[Death Professor]

Interesting though it's upto Turkey to decide whats best for them. Lets wait for the outcome of negotiations. Surgical items/textiles, its probably good for them to buy more and directly from us.

 

[KediKesenFare3]

Our textile industry has shrinked drastically due to cheap imports from China, Vietnam and now Bangladesh but it has survived and that's very impressive for a country like Turkey. The textile industry is extremely competitive and mobile. They shift from one country to another within a year or so.

So, for Turkey the industry is very important and I guess they won't sacrifice it for Pakistan.

Many industry branches are supporting the trade deal with Pakistan while the textile industry is fiercely opposing it. However, Pakistan has also some things to offer. The automobile industry is seeking access to the Pakistani market. But Pakistan in return wants access to Turkey's textile market.

So, basically it's a negotiation between the two nations.

Personally, I'm against this policy of Pakistan. The country is suffering from its FTAs. Pakistan needs protection, opening the vulnerable Pakistani companies to international competition is wrong at this point. Even China, Japan, America, Germany and many others needed protection at the beginning of their industrialisation.

This policy is ruining Pakistan.

 

[Nilgiri]

Our textile industry has shrinked drastically due to cheap imports from China, Vietnam and now Bangladesh but it has survived and that's very impressive for a country like Turkey. The textile industry is extremely competitive and mobile. They shift from one country to another within a year or so.

So, for Turkey the industry is very important and I guess they won't sacrifice it for Pakistan.

Many industry branches are supporting the trade deal with Pakistan while the textile industry is fiercely opposing it. However, Pakistan has also some things to offer. The automobile industry is seeking access to the Pakistani market. But Pakistan in return wants access to Turkey's textile market.

So, basically it's a negotiation between the two nations.

Personally, I'm against this policy of Pakistan. The country is suffering from its FTAs. Pakistan needs protection, opening the vulnerable Pakistani companies to international competition is wrong at this point. Even China, Japan, America, Germany and many others needed protection at the beginning of their industrialisation.

This policy is ruining Pakistan.

Actually its interesting what you mentioned here.

Turkey imports about 12 billion of textiles and exports around 30 billion worth according to OEC, so your net trade in textiles is about +18 billion USD:

https://oec.world/en/profile/country/tur/

Also most of the textile imports are raw materials, base fabric and yarn.

 

[dBSPL]

Also most of the textile imports are raw materials, base fabric and yarn.

There is a draft law on, low THC industrial hemp production. Academicly, hemp breeding works still continues in Turkey.The standards developing by Canada and the EU are closely monitored.

Within the scope of the project, if low-cost and acceptable quality natural fibers are obtained from the flax, hemp and nettle plants, machinery will be developed for their separation and processing.

In this respect, it is aimed to provide cost advantage especially in textile sector, as well as other industrial outputs like natural fiber parts in the automobile industry, woodworking industry, natural construction materials from hemp shavings, wood materials, fabrics and canvas products, ship rope, insulation materials, cosmetics products, biodiesel, energy production through biomass, hemp oil, food and feed, paper industry etc.

The dominant forest industry in the world, and especially theirs US lobby, is in a way that prevents these efforts, but the world inevitably going to this point.

 

[KediKesenFare3]

Actually its interesting what you mentioned here.

Turkey imports about 12 billion of textiles and exports around 30 billion worth according to OEC, so your net trade in textiles is about +18 billion USD:

https://oec.world/en/profile/country/tur/

Also most of the textile imports are raw materials, base fabric and yarn.

Yes, only few people are aware of these facts. Many of the clothing that is considered to be 'en vogue' in Europe can be purchased in advance in Turkey.

 

[maithil]

Doing this to a brother Islamic country. Especially when CAD is major headache for Pakistan.