World Trade Organization declared that India has complained about Turkey’s cotton yarn policy to the organization. India, claiming that Turkey’s precautions to protect domestic producers are not convenient to the international trade norms, has been become known that it informed WTO about warning Turkey third times and imposing punishment if it is necessary.
According to WTO’s declaration on its official website, India objects to security measures that Turkey has taken to support its own cotton sector. Security measures means that an industry is secured with temporary duty taxes when this industry faced with unexpected import threads and a management not contrary to WTO rules.
Indian authorities, asserting that this implementation carried out against some principles in Turkey is not convenient to WTO, have declared that this situation can cause 600 million dollar damage to Indian’s import per year.
In the complaint of India on the date of 13 February ,before coming to the stage of case India demanded consulting meetings used as the last chance of solving disagreements between Turkey and India. Indian authorities has said Turkey has started to apply security measures in 2008 year for 3 years but, when this duration finished in 2001 July, the country would extend the time and would apply temporary security measures before this decision.
Indian authorities, declaring that Turkey made decisions about the implementations for permanent maintenance after temporary measures, claim that Turkey has no right to implement permanent measures after the date of July 2011.
Previously Thailand and Hong Kong Complained Too
Turkey, one of the leading producers of cotton yarn all around the world ,brought extra taxes to this production after having experienced the major import in 2005. These taxes have been raised up to 15-20% rates by exceeding 5% that is approved as maximum level by WTO.It is indicated that Customs Union Treaty lies at the bottom of extra taxes carried out about textile and maintenance measures. Apart from India complaining about Turkey third times, there are two other countries that we have problems and that problems are become known by WTO. Thailand consulted Turkey as it implemented quantity restrictions about textile and ready-to-wear productions in the 20th of June 1996. Besides this, Hong Kong gave a complaint as well because of the same reason in the 12th February 1996.
