Turkey to raise PET tariff by 5 percent

Karachi: Turkey is likely to impose a safeguard duty on the import of PET (Polyethylene Terephthalate) resin from Pakistan for a period of three years which might reduce the market access to Turkish market for the export of raw materials.

According to Alfalah Securities Limited, PET is one of the top materials used in the manufacturing of carbonated drink bottles, mineral waters, juices edible oil etc. The duty is Pakistan specific as the total exports constitute to around 12% share (USD 71 mn) to Turkey, making it one of the leading exporter of PET. The customs duty would be raised to 8% (previously 3%) in order to protect the local producers.

The bilateral trade between Pakistan and Turkey stood at USD 997mn however, Pakistan has failed to qualify in the list of countries that can avail 10% duty free quota of PET resin which would affect our exports of up to USD 250mn. The local demand of PTA solely produced by Lotte PTA Pakistan would drop as it is being used as a major raw material in the manufacturing of PET. Hence, Alfalah Securities Limited, expects the sales volume of LotPTA in the local market would drop and would result in lower profitability.

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