Turkey imposes additional duties on Chinese car imports to protect local industry
Date
6/10/2024 2:35:27 AM
(MENAFN) The Turkish Ministry of Commerce announced on Saturday that Turkey will impose an additional customs duty of 40 percent on car imports from China, as reported by a UK-based news agency. This move is part of a broader strategy aimed at preventing a potential deterioration in the country's current account balance and safeguarding domestic automobile manufacturers.
The decision reflects a growing global trend where China faces increased trade pressures due to its expanding electric car exports. Many countries argue that these exports are heavily subsidized by Beijing to bolster its struggling economy. In this context, the European Commission is also expected to announce next week whether it will impose temporary additional customs duties on Chinese imports.
According to a presidential decree published in the Turkish Official Gazette, the minimum additional fee will be set at USD7,000 per vehicle, effective from July 7. The Turkish Ministry of Commerce explained that the additional duties will apply to imports of both conventional and hybrid passenger vehicles from China. The objective is to boost and protect the declining share of domestic production in the automotive sector.
The ministry's statement emphasized that the decision to impose these duties was made in consideration of the targets for reducing the current account deficit and efforts to stimulate local investment and production. If the calculated duty of 40 percent of the car's price falls below USD7,000, the minimum customs duty will be applied instead.
In 2023, Turkey had already imposed additional duties on imports of electric cars from China and introduced regulations related to the maintenance and servicing of electric vehicles. The government’s broader economic policy includes encouraging increased production and exports to address the current account deficit, which amounted to USD45.2 billion last year.
This move by Turkey is a significant step in its ongoing efforts to protect its domestic automotive industry and improve its economic balance, highlighting the challenges and competitive pressures in the global automotive market, especially concerning Chinese exports.
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