Protective measures are affecting domestic exports
President of Ukraine Volodymyr Zelenskyi called on the President of Turkey Recep Erdoğan to release imports of Ukrainian steel products from additional duties, according to a message on the President’s website.
“In April–June 2020 alone, additional customs duties were imposed on over 1.4 thousand commodities. This affects exports in our steel, light and confectionery industries,” said President Zelenskyi in his telephone conversation with the Turkish President.
The President of Ukraine urged President Erdoğan to exclude Ukraine from the list of countries subject to additional export duties. Also, President Zelenskyi called on Ankara to maintain parity-based bilateral trade relations.
President Erdoğan assured that he would instruct competent agencies to inquire into the issue.
In 2020, Turkey increased duties on imported steel products, first time on 18 April. On 15 July, the country extended protective measures until 30 September.
Increase in duties for the following exported steel products have the most critical implications for Ukraine:
- square billets — from 12% to 17%;
- hot-rolled products — from 13% to 18%.
These commodities account for over 60$ of Ukraine’s exports to Turkey.
“No increase in duties was initiated against the countries that signed free trade agreements with Turkey. It is quite likely that the conversation between the two presidents will trigger negotiations on signing such an agreement between Ukraine and Turkey,” suggests Andrii Glushchenko, GMK Center Analyst.