India has initiated a trade dispute with Turkey, seeking compensation for losses incurred due to Ankara’s extension of safeguard measures on polyester staple fibres. This move comes after India raised concerns during bilateral consultations under the World Trade Organization’s (WTO) Safeguard Agreement.
Turkey’s decision to extend the safeguard measures in September 2023 has significantly impacted India’s exports of polyester staple fibres, a crucial textile raw material. India exported these fibres worth USD 22.18 million to Turkey in the fiscal year 2023-24.
India has the option to impose retaliatory customs duties on Turkish goods if the issue remains unresolved through consultations. This move aligns with India’s recent proactive stance on trade remedy measures, as seen in similar disputes with the European Union and the United Kingdom over steel product imports.
The textile industry, a major contributor to India’s economy, is closely monitoring the situation. The imposition of safeguard measures by Turkey has not only affected the export of polyester staple fibres but also has implications for the broader textile value chain.
