Turkish rebar exporters protest against possible Egyptian protective measures

Friday, 08 January 2010 10:51:08 (GMT+2)

Turkish steel producers and exporters protested against the reports, saying Egypt will impose protective measures against Turkey's rebar exports to the country.

Recently, Egypt's Minister of Trade and Industry during a meeting with Egyptian steel mill owners indicated that the government is considering imposing protective measures on Turkish steel rebar imports in order to protect the domestic industry.

Turkish steel exports to Egypt surged significantly in 2009, climbing by 7.63 times as compared to 2008 and totaled 2.93 million metric tons, due to intense infrastructure works conducted in the country and insufficient local supply of required steel products.

Commenting on the issue, general secretary of the Turkish Steel Producers' Association, Veysel Yayan, said, "The traditional good relationship between Turkey and Egypt deepened following the recent improvements in economic and politic relations. With the free trade agreement between the parties taking effect as of March 1, 2007 and also due to the intensive investments of Turkish entrepreneurs in the country, the relationship between the two countries reached a new level of cooperation. It's hopeful to see the markets of Turkey and Egypt, along with the neighboring countries, linked together to form a union. The increase of Turkish steel exports to Egypt resulted from the high demand in Egypt and Egyptian consumers' choice of Turkish steel products, rather than Turkey's focus on the country. This situation can be clearly seen from the export volume to Egypt before and after the January-May period of 2009, when Turkey's exports to Egypt increased rapidly."

"The exports in question are made in the frame of the open market mechanism, shaped by the supply and demand balance. In fact, this can be proved by the current situation, in which Egypt's demand for Turkish steel products cannot be met, due to the low level of the buying prices accepted by the Egyptian buyers. We assess that the temporary increase in our exports to Egypt, driven by contextual factors and the rapid revival in Egyptian demand cannot be the reason for an investigation against Turkey's rebar exports, which will be contradictory to the extensive relationships between the countries and the spirit of the parties' free trade agreement," Mr. Yayan concluded.

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