Page 37 - TURKRptJun19

Turkey’s trade ministry implemented a reciprocal reduction in tariffs on US imports. The move is a response to the US halving tariffs on Turkish steel imports. Any easing in relations between Ankara and Washington will be welcomed by the markets in Turkey, given how bilateral ties remain undermined by a multi-faceted dispute over defence and foreign policy issues. The rows became so bad last August that Turkish President Recep Tayyip Erdogan even urged Turks not to buy US products such as iPhones—some fervent Erdogan backers took to social media, posting videos of iPhones being destroyed with hammers and by various other means. The US doubled tariffs on Turkish steel and aluminium imports last August amid the disagreements, a move that helped precipitate the Turkish lira crisis. Turkey retaliated by doubling tariffs on US cars, alcohol and tobacco imports. Turkey halved tariffs on passenger cars, alcoholic drinks, tobacco, cosmetics and PVC, via a presidential decree. Formerly, tariffs on US whiskey stand at 140%, while the rate is at 120% for passenger cars, 50% for PVC and 60% for cosmetic products.
Turkey exported $1.08bn of jewellery in the first four months of this year, recording $258.86mn of that figure in April, according to the Turkish Jewelry Exporters' Association. In April, most exports reportedly went to Near and Middle East countries with shipments registering a value of $81.1mn. Next were North America ($60mn), the European Union ($50.3mn), other Asian countries ($32mn) and other European countries ($14.4mn). Exports to the US were said to have skyrocketed by 140% to $58.1mn, while consignments to the United Arab Emirates were up 55% to $48.9mn and shipments to Germany rose 24% to $17.1mn. Around 75% of the April exports were from gold jewellery and goldsmith suppliers, while 11 % were unprocessed and semi- processed gold. Five percent were diamond and gold jewellery items, the report said.
Turkey pledges to raise trade with Kazakhstan to $5bn from $1.9bn.
Bilateral trade grew by 50% y/y in the first quarter of 2019 and amounted to $632mn. Pledges to boost trade drastically, without any indication of the deadlines being worked to, is not an uncommon feature of Kazakh-Turkish political and economic conferences. "At present, more than 2,200 enterprises with Turkish investments are operating in various sectors in Kazakhstan," Kazakh Foreign Minister Beibut Atamkulov said.
Slovenia, Israel and Turkey benefit from Kosovo’s politically motivated import tariffs. Kosovo’s imposition of 100% tariffs on goods imported from Serbia and Bosnia & Herzegovina failed to benefit the country, as — despite optimistic forecasts from the authorities — there was no corresponding increase in local production, The GAP Institute for Advanced Studies, a local think tank, said on May 12. Within five months of the imposition of the taxes, imports from Serbia decreased 88% (€160mn) while imports from Bosnia fell by 83% (€24mn), GAP said in a report. The biggest beneficiaries during this period were Slovenia, Israel and Turkey, whose exports to Kosovo increased significantly, it said.
37 TURKEY Country Report June 2019 www.intellinews.com