Turkey Slaps SafeGuard Duty on Apparel Products

Turkey has slapped a provisional safeguard duty at the rate of 17 per cent on import of apparel products from the least developed countries (LDCs), including Bangladesh, with an aim to protect its domestic manufacturers.

Turkey announced the tariff imposition at the end of March, and the proposed duty is set to come into effect from July 21. Bangladesh has nearly $1.0 billion apparel market in Turkey.

The decision would temporarily affect apparel export to Turkey from Bangladesh which now enjoys zero duty status as a least developed country (LDC), said officials and exporters.

The present tariff increase, approved by the Turkish government, is 10 per cent lower than the proposed tariff increase in January when it unveiled a plan to impose 27 per cent safeguard duty on import of apparel products from the LDCs, including Bangladesh.

Turkey also proposed hike in duty rates for apparel imports from the developing and other countries to 37 per cent and 40 per cent respectively. However, the rates have been brought down by 10 per cent each.

The 10 per cent lower duty measure came after a six-member delegation of Bangladesh government and private sector representatives, headed by commerce secretary M Ghulam Hossain, attended a bilateral hearing in Ankara in March 7-8, Tariff Commission Chairman Mujibur Rahman told the FE.

The government is trying to handle the issue bilaterally, diplomatically and politically. The issue will be raised during the Prime Minister's upcoming visit to Turkey early next month, he said.

"If Turkey sticks to its decision, we will go to the World Trade Organisation (WTO) to keep Bangladesh out from the measure," he said.

Echoing Mr Rahman, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Shafiul Islam Mohiuddin said, "A positive result in this regard may come after the PM's visit to Turkey."

The recent Turkish decision to ratify the provisional anti-dumping duty will affect the Bangladesh apparel industry, as export to Turkey will decline temporarily, said Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).