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WTO Terms Turkey Textile Plan for Deep Tariff Cuts as Strange

WTO Terms Turkey Textile Plan for Deep Tariff Cuts as Strange

Write: Reuel [2011-05-20]

World Trade Organization has put across Turkish textile plan of safeguarding certain textiles and clothing from deep tariff cuts as strange.

The WTO's 149 member states are seeking agreement on cutting tariffs across the world economy, but Turkey with the backing of some producers such as Mauritius, wants textiles made a special case.

The Turkish proposal, made last week to the WTO negotiating committee on industrial tariffs, was firmly opposed by China, which accused Turkey of attempting to re-institute restrictions on textile trade.

Lamy noted that while the WTO negotiations on industrial tariffs, known as NAMA in WTO-speak, allowed for separate sector treatment, this was normally aimed at securing even steeper cuts than those envisaged in an overall deal.

Turkey, like other textile and clothing producers, has struggled to compete against China and India since the WTO ended its global system of export quotas at the start of 2005.

Many countries have preferential access to the United States and other markets under various trade programmes and fear these benefits will be eroded under a pact that cuts textile and clothing duties aggressively.

The textile industry is one of the most vocal U.S. opponents to trade liberalization and many members of US Trade Representative Republican Party favor continued protection. But according to the U.S. officials in Geneva, Washington has not taken any position on the plan.