Turkey has cancelled protective tariffs on cotton yarn imports from Egypt and other countries, effective as of 1 January 2013, Minister of Industry and Foreign Trade Hatem Saleh stated on Thursday Al Ahramonline reported.
The decision represents a "great opportunity" for Egypt to increase exports of cotton yarn to Turkey, the minister said, noting that the tariffs had previously impeded such exports.
The move is especially likely to boost Egyptian exports of thin yarn (from 50 to 140 count), added Saleh, while thicker yarn (under 40 count) would face stiff competition from Indian and Pakistani yarn due to recent decreases in cotton prices in those countries.
Egyptian yarn exports will also benefit from the customs exemption granted it under a free trade agreement between Cairo and Ankara. Lower transport costs for Egyptian exports will also give Egyptian yarn an advantage over competitors from Southeast Asia.
The minister added that the Turkish decision to remove tariffs effectively terminated the quota system that had previously regulated Egyptian exports to the Turkish market.
Egyptian yarn exports to Turkey from 2007 to 2011 amounted to 7,790 tonnes worth some $66.2 million, 51 per cent of which were imported under the quota system. The system exempted Egypt's exports from custom duties, while the rest were subject to protective tariffs.
In light of the recent move, Saleh has tasked the Textile Export Council to ensure that Egyptian textile exporting companies redouble their efforts to increase Egypt's share of cotton yarn exports to Turkey.