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An agreement was reached on digital tax between the USA and Turkey

The USA and Turkey have reached an agreement on digital tax. Thus, the additional customs tax decision, which was retaliated against Turkey’s exports, was lifted. Relaxed exporters say, “We have paved our way in the US market.”

Another critical threshold has been crossed in Turkey’s exports to the USA. The USA, which retaliated against the Digital Services Tax that Turkey received from companies such as Google, Facebook, Twitter, Amazon, Netflix, Spotify, announced that it would impose an additional 25% customs duty on 32 products to be purchased from Turkey. The previous day, Turkey and the USA agreed on the inclusion of Turkey in the joint agreement between the USA and Austria, France, England, Italy and Spain, which apply Digital Services Tax. Thus, the 25% additional customs duty that was planned to be applied on the export of 32 products from jewellery to textiles, from carpets to glass and ceramic products was lifted, and the exporter sighed.

WE BROKE A HISTORICAL RECORD

Jewelry Exporters’ Association President Mustafa Kamar said that they took a deep breath with the agreement signed between Turkey and the USA. Kamar, who informed that the sector broke the record of the history of the Republic between November 1-22 and signed a jewelry export of $920 million, said, “This export represents an increase of 300% compared to the same period of the previous year, in 20 days… The reflection of the trade tension between the USA and China on the supply chain was effective in reaching this point where we broke records. The slowdown in the supply chain led to new searches on the US side. We have become preferred by responding to the demand quickly and with high quality.”

WE ARE IN THE FIRST THREE EXPORTS

Explaining that they outperformed their targets by 170% with $5.5 billion of exports in 11 months, Kamar continued as follows: “We made $800 million of our $5.5 billion export to the USA. By the end of this year, we will increase our exports to the USA over $1 billion. We increase our total exports to over $6 billion. In 2-3 years, we can reach $3-4 billion in exports to the USA. We are currently in the top 3 in jewelry exports to the USA. We foresee that we will sit in the leadership in 2023.”

WE ARE THE MARKET LEADER IN MACHINE CARPET

President of ISTANBUL Carpet Exporters’ Association Ugur Uysal said, “Our state has signed a very important agreement, we are grateful. The USA is a very important market. We aim to close this year with $3 billion of exports. Almost half of this comes from our exports to the USA. We are the leader in machine carpets in the USA.” Explaining that the logistics crisis continues in the world, Uysal said, “The USA prefers Turkey instead of China for carpet imports. The increase in demand will continue. We predict that our exports will increase by 20% in 2022. We will do half of this to the USA.”

IT WOULD GO TO ZERO IF THERE WAS NO AGREEMENT

Mustafa Gultepe, President of ISTANBUL Ready-to-Wear Clothing and Apparel Exporters’ Association, stated that the decision made especially for the home textile sector, “The USA is a very big market for the home textile industry. If the additional customs application had been implemented, our exports to this market would have decreased to zero. Currently, we have $800 million of exports to the USA. We think this will reach $1 billion by the end of the year.”

Source: Sabah / Translated by Irem Yildiz

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