A Government delegation headed by Mr. Rabi Shanker Sainju, Joint Secretary, Trade and Export Promotion Division of the Ministry of Industry, Commerce and Supplies is leaving Kathmandu this afternoon to hold bilateral talk on issues related to export of Nepali yarn in Turkey these days. The delegation comprises representatives from various Ministries including Ministry of Foreign Affairs, technical expert on yarn and textiles from the Ministry of Industry and Trade and Export Promotion Centre, and representatives from Yarn Producers' Association of Nepal.
The delegation will meet relevant authorities of the the Turkish Government (officials from the Ministry of Economy of Turkey) in Ankara and present Nepal's situation and highlight major problems faced by Nepali Yarn industries and exporters while exporting their products in Turkey these days. Following the withdrawal of LDC GSP by Turkish Government on Nepali yarn from the beginning of 2018, the Delegation, among others, will raise this issue with utmost priority and request Turkish Government to review its earlier decision and to resume LDC GSP on Nepali yarn export. The lifting of GSP facilities on Nepali yarn have put Nepali yarn industries in difficult position making their products costlier and less competitive in Turkish market compared to other countries' products.
During the bilateral talk with the Turkish Authorities, the Delegation will present Nepal's existing position in yarn production and export, and clarify several issues associated with Nepal's yarn business to Turkey particularly related to the export of Artificial and Artificial staple fiber yarns from Nepal. Following the notification published by the Ministry of Economy of Turkey in the Official Newspaper on 29 December 2017 and the subsequent investigation initiated on export of Nepali yarn to Turkey, the Delegation will try to convince Turkish Authorities that no circumvention or diversion of yarn has taken place via Nepal to Turkey. In this regard, Nepali Delegation will also present key findings of the field study report that was prepared by experts following the site inspection of major three yarn industries of Nepal. The Delegation is also scheduled to have a short interaction with key importers/buyers of Nepali yarn in Turkey.
Turkey is Nepal's largest export destination for its yarn products occupying almost 60% export share in recent years. Of the total Rs. 6 billion worth export in the last fiscal year, export to Turkey is recorded around Rs. 4 billion.
4 April 2018