The Ministry of Economic Affairs on Friday said that a move by Turkey to impose an additional 25 percent tariff on hand tool imports could have an adverse impact on Taiwanese exporters.
The ministry said that as hand tools, such as socket wrenches, vehicle repair tools, hammers, screwdrivers and building tools, are part of Turkey’s unbound tariff lines under WTO rules, Taiwan would not likely seek relief from the WTO.
The ministry said that it has informed the Taiwan Hand Tool Manufacturers’ Association of the additional duties from Turkey and asked the association to help its members to deal with the new trade barriers.
According to government statistics, Taiwan’s hand tool exports to Turkey totaled US$46.55 million last year, up 5.47 percent from 2013, when hand tool exports to Turkey rose 4.55 percent year-on-year to US$36.88 million. In 2012, Taiwan sold US$31.03 million worth of hand tools to Turkey, up 4.01 percent from a year earlier, the data showed.
The nation faces another challenge resulting from the additional tariffs on hand tool sales, as it is expected to encounter increasing competition from its rivals, such as South Korea and the EU’s European Free Trade Association, which have signed free trade agreements with Turkey so that they are not to be affected by the new import duty, the ministry said.
The ministry said that the nation’s major rivals in the Turkish hand tool market are China, Germany, the US and Japan. Among them, Germany is expected to escape the additional tariff.
As Turkey has had a deficit in current accounts for years, the country has come up with trade protection measures, such as additional tariffs on hand tool imports, the ministry said.
The ministry said that under such unfavorable circumstances, the government is determined to assist Taiwanese exporters in dealing with Turkey’s protectionism.
The ministry said that the nation would keep expressing its concerns to Turkey through every possible channel. Last year, Taiwan’s exports to Turkey totaled US$1.7 billion, making Ankara the 21st-largest buyer of Taiwanese exported goods, and Taipei posted a trade surplus of US$1.5 billion, the ministry said.
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