Turkiye’s measures in the field of polyester staple fibers have consequences for exports: India is seeking compensation

India has asked Turkiye for compensation as Ankara’s decision to extend safeguard measures on polyester staple fibers has affected exports of the product, an official said.

India highlighted the concerns and implications of these measures during a recent bilateral consultation with Turkiye under the WTO Safeguards Agreement.

On October 14, India sought consultations with Turkiye under the agreement following Ankara’s decision to extend safeguard measures on polyester staple fibres.

“We have sought compensation because we are suffering trading losses. “India has the option to propose retaliatory tariffs equal to the value of export loss if the issue cannot be resolved through consultation,” the official said.

India has exported these fibers worth USD 22.18 million during 2023-2024. In 2022-2023 this amounted to $23.55 million.

In September, Turkiye decided to extend safeguard measures against imports of polyester staple fibres.

“As a member with a substantial trade interest in exports of the affected products, India had requested consultations with Turkiye on the extension of the measures,” the official added.

According to a provision of the Agreement on Safeguards, a WTO Member State wishing to apply safeguard measures must provide adequate opportunity for prior consultation with Members with a significant interest as exporters of the product concerned, with a view to assessing the information provided, exchanging views on the measure and agreeing on ways to achieve the objective set out in the agreement.

Total Indian exports to Turkiye between 2023 and 2024 amounted to $6.65 billion, while imports amounted to $3.78 billion.

An expert said India has been “very proactive” on trade recovery measures in the recent past and is seeking consultations with its trading partners if its trade is affected.

Last month, India proposed imposing retaliatory duties, under World Trade Organization (WTO) standards, on a certain value of goods imported from the EU after the two sides failed to reach an agreement on safeguard measures of the European Union for certain goods. steel products.

The EU has extended safeguard measures on imports of certain categories of steel products with an extra-quota duty of 25 percent for a further two years, until 2026.

In 2022, India had also proposed to impose retaliatory duties under WTO norms on approximately $250 million worth of goods imported from Britain, against Britain’s decision to impose safeguard duties and quota restrictions on imports of certain steel products until 2024.