KARACHI, Jan 20: Turkey`s plan to take safeguard action under the WTO rules by imposing anti-dumping duty on textile imports, including fabrics is expected to prove a blessing in disguise for Pakistan, said textile exporters.

Pakistan presently exports woven cotton and mixed (with man made fabrics) fabrics to Turkey to the tune of $300 million annually. The imported fabrics are converted by Turkey`s value-added textile sector into made-ups and fetch much higher foreign exchange.

The fabrics exported to Turkey if converted by domestic industry into jeans and trousers could earn around $1 to $1.5 billion for the country and easily capture the EU and US markets, said Khawja Usman, chairman Pakistan cotton Fashion Apparel Manufacturers and Exporters Association (Pcfamea).

He said this challenge might prove to be an opportunity for creating joint-ventures between Pakistani and Turkish manufacturers and exporters of jean and trousers to EU and US markets.

Much of the fabrics exported from Pakistan to Turkey constitutes grey cloth and denim, which is used for making jeans and other high value made-ups and are mainly exported to EU and US markets.

Turkey is a hub of jeans and trousers for export to EU and US and this position had been captured from Tunis on getting competitive fabrics from Pakistan.

Once export of fabrics and denim to Turkey take a pause the domestic value-added sector would benefit and get raw material in abundance and at competitive prices, stated Javed Chinoi, chairman Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea).

For the last several years Pakistan had been a secure source of supply of good quality and competitively priced fabrics to Turkey but now it seems that an opportunity was on it way for Pakistani exporters to make inroads into EU and US jeans and trousers markets, stated former chairman Prgmea Moshin Ayub.

After Turkey`s domestic industry lodged a complaint against cheap imports of textiles and fabrics causing injury compelled Istanbul to consider imposing punitive duties.

According to some details Turkey plans to impose anti-dumping duty at 28 per cent on imports from developing countries, 21 per cent on least developed countries and 30 per cent on developed countries.

Pakistan falling under the category of developing countries will have to pay 28 per cent punitive duty. However, officials at the Trade Development Authority of Pakistan (TDAP) when contracted by Dawn were confused over the duty slabs.

They were unable to differentiate or calculate if the proposed punitive duty is over and above the existing duty of 6.4 per cent or it is 28 per cent increase in existing duty which will take it to 8.2 per cent.

The TDAP officials disclosed that under the WTO agreement when a country restricts imports in order to safeguard domestic producers, it must give something in compensation through consultations.

However, if no agreement is reached the exporting country can retaliate by taking similar action such as raising tariffs on exports from that country in this case Turkey, the official maintained.