Texprocil chief hails duty repeal

Turkey has repealed the safeguard duty imposed on import of cotton yarn with effect

from August 4, 2011, for a period of three years. Welcoming this move, Manikam Ramaswami, Chairman, Texprocil, complimented the government for its proactive efforts in ensuring that the unjustified measures imposed by Turkey were withdrawn well before their official expiry by August 2014.

It may be recalled that these measures were an extension of an earlier safeguard measure imposed by Turkey against the import of cotton yarn for a period of three years from July 14, 2008. India had held consultations with Turkey on March 12 and 13, 2012, and impressed upon that country the serious violations that had taken place while imposing safeguard duties on import of cotton yarn and that Turkey had breached safeguard provisions of GATT and WTO Agreement on safeguard measures by illegally extending the duties after the original period.

The withdrawal of the safeguard measures on imports of cotton yarn into Turkey augurs well for exports of cotton yarn from India which had declined from US $ 198 million in 2007 (prior to imposition of safeguard measures) to US $ 94.57 million in 2011. India also slipped to the fourth position in terms of supplier in 2012 from being the largest supplier in 2008.

With Turkey being the gateway to Europe, removal of safeguard duties would enable India restore its exports to earlier levels and also increase its market share.