India Seeks Compensation From Turkiye Over Polyester Safeguards
India has formally requested compensation from Turkiye following Ankara’s decision to extend safeguard measures on polyester staple fibres, which has adversely affected Indian exports of the product. An official confirmed that India raised its concerns during recent bilateral consultations with Turkiye under the WTO’s safeguard agreement.
On October 14, India initiated consultations with Turkiye regarding the extended safeguard measures. “We have sought compensation due to a loss of trade,” the official stated, adding that if the consultations do not resolve the issue, India may propose retaliatory customs duties equivalent to the value of the export loss.
In the fiscal year 2023-24, India exported polyester staple fibres worth USD 22.18 million, down from USD 23.55 million in 2022-23. Turkiye decided to extend its safeguard measures on these imports in September, prompting India to request consultations due to its significant trade interest in the affected product.
According to the WTO Agreement on Safeguards, a member country intending to apply safeguard measures must provide prior consultation opportunities to those countries with substantial export interests.
In the context of overall trade, India’s exports to Turkiye reached USD 6.65 billion in 2023-24, while imports totaled USD 3.78 billion. Experts note that India has been proactive in addressing trade remedy measures, seeking consultations whenever its trade interests are impacted.
Last month, India also proposed retaliatory customs duties on certain goods imported from the EU due to ongoing disagreements regarding the European Union’s safeguard measures on specific steel products. The EU has extended safeguard duties on certain steel imports for an additional two years, until 2026. In 2022, India proposed similar retaliatory measures against the UK following the extension of safeguard duties on steel imports.
