ISLAMABAD: Turkey has decided to impose safeguard duty on import of pet (Polyethylene Terephthalate) resin from Pakistan for a period of three years.The move will lead to reduction in market access for the export of raw materials to the Turkish market, it is learnt.
Technically, the safeguard duty will apply to imports of PET resin originating from all countries for a period of three years, which is extendable for another three years. However, this duty will specifically wipe out the market access for Pakistani exporters.
Pet resin is one of the leading materials for bottling carbonated soft drinks, mineral waters, juices, edible oils and personal care products and packaging pre-packed foods and meals etc.
A well informed source in the commerce ministry confirmed that the additional duty was Pakistan’s specific, as Islamabad has a share of one third in Turkey’s total imports of PET resin to bridge the domestic gap in production.
As per the Ankara decision, the source said Turkey has decided to enhance the normal customs duty from 3 per cent to eight per cent (5pc additional safeguard duty) to protect the European origin owners of the local production.
The local production in Turkey of PET resin stood at 150,000 tons, while it imports 160,000 tons to meet the domestic requirement.
Currently, the bilateral trade between Pakistan and Turkey stood at $997 million. Pakistan’s exports to Turkey stood at $640 million last year.
But of these, PET resin exports from Pakistan constitute 12 per cent share or ($71 million) to Turkey making it one of the leading exporter to Turkey.
Even the Turkish authorities, according to the source, are not considering Pakistan to be included in the list of those countries, which can qualify for availing 10 per cent duty-free quota of PET resin imports.
This indicates that the safeguard duty was directed at Pakistan, the source added.
However, an official in the commerce ministry said that the issue had been taken up by Pakistan’s ambassador to Turkey with relevant authorities to seek review of the decision.
This could be the second move of the Turkish government in a series against Pakistan’s exportable products as in March last it also proposed to impose 52 per cent duty on import of Pakistani garments, 24.5 per cent on denim fabrics and 24.5 per cent on woven fabrics.
This decision, experts say, will affect $250 million worth of exports. Pakistan’s total export of textile products to Turkey was $350 million last year.