Turkey is considering possibly scrapping of a safeguard duty imposed three years ago on import of two-wheelers, a decision that will benefit India that once enjoyed a five per cent market share in European country.
The Government of Turkey has informed the World Trade Organisation that it has begun the process of reviewing the safeguard measure that was levied against imports of motorcycles (including mopeds) and cycles in 2006.
"Imports of the product concerned dropped by 95 per cent in 2007 and by 29 per cent in 2008. Besides, the ratio of imports to domestic production decreased throughout the period the safeguard measure has been applied," Turkey told the WTO, which in turn notified the same to the missions of different countries, including India.
As per official figures, India's exports of two-wheelers to Turkey in 2006-07 was worth $5.44 million, which dropped by 27 per cent to $3.94 million the following fiscal.
"We hope Turkey will drop the duty after the review," Engineering Export Promotion Council Executive Director R K Maitra added.
In 2006, Turkey had initiated safeguard investigations on the imports of certain two-wheelers on grounds that soaring shipments were hurting the domestic industry.
In 2003, 2004 and 2005, imports had grown by 464 per cent, 608 per cent and 165 per cent, respectively, according to data provided by the country.
Source : Business Standard