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Textile exports to Turkey decline to $500 million

LAHORE: The country’s textile export to Turkey has dropped by almost 50 percent to around $500 million from $1 billion after the latter imposed safeguard duties to protect its domestic industry.In a meeting with officials of the Textile Ministry on Saturday, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) said

By our correspondents
March 08, 2015
LAHORE: The country’s textile export to Turkey has dropped by almost 50 percent to around $500 million from $1 billion after the latter imposed safeguard duties to protect its domestic industry.
In a meeting with officials of the Textile Ministry on Saturday, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) said Pakistan’s bilateral trade with Turkey grew at good pace and crossed one billion dollar mark in 2010-11, but it declined by $500million after the imposition of safeguard duties in August 2011.
As both countries are engaged in talks over Free Trade Agreement (FTA), Pakistan Readymade Garments Manufacturers and Exporters Association urged the government to convince Turkish authorities to waive SMD of 42.2 percent which Turkey has placed on Pakistan’s apparel imports.
Pakistan Readymade Garments Manufacturers and Exporters Association Central Chairman Ijaz Khokhar said Turkey had placed the extra customs duty on apparel imports from Pakistan, hampering mutual trade growth.
He said Turkey has no threats from Pakistan garments since it manufactures 95 percent of fashion and casual wears.
Original customs duty is 9.2 percent on garment products, including denim, martial arts uniforms and home-textiles but 42.2 percent SMD increased the levy to 52 percent which is too high to afford on the world market.
Addressing the meeting Vice Chairman PRGMEA said Pakistani fabric exporters pay 35 percent total customs duty with additional 28.6 percent SMD at the import stage in Turkey, adding that the higher duties should be brought to the original size to help augment both nations’ mutual trade.
“Abolition of SMD will help Pakistani exporters reach Central Asian and Eastern European nations with their garment goods besides taking its trade with Turkey to a billion dollar.” The meeting was attended by the Executive Committee, Central Chairman Ijaz A Khokhar and Vice Chairman Naseer Malik.