Turkey feels India must phase out textile export subsidies gradually as it has reached export competitiveness. Subsidies hurt Turkey’s interests since its textile and apparel producers have to compete with subsidized Indian textile and apparel producers in domestic and export markets.

India’s textile and apparel export to Turkey has increased significantly in the last couple of years. Turkey’s textile and apparel exports were around $17 billion in 2013. In December 2008, Turkey implemented safeguard measures for all cotton yarn imports but subsequently after consultations with India, eliminated the safeguards a few years later even though cotton yarn is a crucial component of Turkey’s textile production.

The World Trade Organisation had calculated the export competitiveness of textile and apparel products from India. These calculations showed that India had reached export competitiveness on these products as far back as 2007, if not earlier.

Turkey has strong historical and cultural relations with Central Asia, Caucasia, West Asia and the Mediterranean region. It wants to extend its economic and commercial ties to these regions. Turkish companies are interested in exploring business opportunities in India. The two countries have decided to start talks on the Comprehensive Economic Partnership Agreement within the next three months and conclude the agreement as soon as possible.