Recent news on Turkey increasing the anti-dumping duties imposed on exports of Pakistani garments from 9.5 percent to 52 percent and on fabric from 6.4 percent to 35 percent has caused tumult in the textile industry as the increase could potentially hamper textile exports to the tune of $300 million.
Turkey's plan to mitigate the unfair trade practice of dumping by various countries is in accordance with the WTO rules (Pakistan is also a signatory) and has been highlighted by most quarters to potentially hamper Pakistani textile exports while some believe that this punitive duty will actually benefit our textile exports. Both point of views have their merits and it would be prudent to analyse why anti-dumping duties are imposed and what Pakistan should do to proactively ensure that our exporters not only understand but comply with the WTO rules so that such punitive duties are not imposed in the future given how critical the textile industry is to the Pakistani economy.
Just to emphasise on a few key facts: the textile industry comprises of 60-65 percent of exports, is 27 percent of total industrial output, employs 38 percent of the countries labour force, comprises of 46 percent of Pakistan total manufacturing and is 8.5 percent of the total GDP.
In the last Pakistan-Turkey CEO Forum held in Islamabad under the leadership of the President of Turkey and the Prime Minister of Pakistan, it was agreed to enhance the volume of the bilateral trade between the two countries to the level of US $2 billion. Such agreements are not above the rules and regulations of the WTO. The WTO agreement focuses on how governments can or cannot react to dumping and allows governments to act against dumping when there is material injury to the domestic industry.-PR
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