Memorandum submitted by Debenhams
With relation to your e-mail, the biggest barrier
across its business in Turkey is the Chinese Quota system that
the Turkish Government imposed without warning just over a year
ago. As a result we have failed to open any further Debenhams
stores other than our first store Cevahir. This is because we
do not have enough Quota to supply these stores.
Debenhams sources approximately 45% of its mix
from China.
In the year 1 September 2006 to 31 August 2007
we exported £3 million to Turkey.
Due to the Quota system we were unable to export
a further £1.2 million.
On the original Business Plan we were due to
have our second store opening in March 2008. This is now not possible
and as a result there will be a yearly export loss of £4.8
million.
I also attach copies of letters which I sent
to the Ambassador of Turkey and the Minister of State for Trade
in the UK which identifies this issue from which we have had very
little progress.
I also give below a couple of points that have
been suggested by our Imports Division:
The duty rates are not the concern, it is the
impact of the unilateral imposition by Turkey on Chinese origin
product. We thought that the bilateral agreement between EU-Turkey
was that goods imported and duty paid in the EU would be treated
as goods in free circulation, meaning no further restriction or
duty imposition. In importing goods into EU we have already confirmed
to EU quota restrictions (on the limited categories in force)
and yet still have further restrictions placed by Turkey. These
restrictions have forcibly stopped our store opening opportunities/programme
in Turkey.
The EU will be removing all quota restrictions
on Chinese origin product next year. What are Turkey going to
do?
We now have sourcing/buying office in Turkey
and have increased the volume of Turkish origin product we now
source. the purpose of quotas are to restrict imports and promote
local production. If Turkey continue to insist on quota's can
we not agree on these being set for Importers/Exporters such as
ourselves on an exchange basis eg one China garment allowed in
for every Turkish garment we buy?
31 January 2008
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