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China files WTO complaint against Turkiye over trade restrictions

October 9, 2024 at 6:14 pm

The World Trade Organization (WTO) headquarters are seen in Geneva on April 12, 2018 [FABRICE COFFRINI/AFP via Getty Images]

China has officially lodged a complaint with the World Trade Organisation (WTO) against Turkiye, accusing Ankara of imposing unjustified trade restrictions on Chinese exports. The move marks a significant escalation in trade tensions between the two countries, both of which are key players in the global economy.

According to a statement released by China’s Ministry of Commerce, the Turkish government has been accused of applying a series of protectionist measures that have negatively impacted the ability of Chinese companies to operate in Turkiye. Beijing claims that these measures violate Turkiye’s obligations under WTO rules and have caused significant harm to Chinese exporters in sectors ranging from electronics to textiles.

“We urge the Turkish side to correct its discriminatory trade practices that hinder fair competition,” the Ministry of Commerce said. “China is committed to upholding the principles of free trade and will use all necessary means to protect its interests.”

Background of the dispute

The complaint comes amid growing trade imbalances between the two nations. Over the past few years, Turkiye has implemented several import duties and non-tariff barriers aimed at curbing what it describes as unfair competition from Chinese imports. These measures have particularly targeted products like steel, consumer electronics and textile goods—areas in which China is a dominant exporter.

In recent months, Turkish industry groups have called on the government to shield domestic manufacturers from what they perceive as market saturation by Chinese goods, citing dumping practices that undermine local businesses. While Turkiye has defended these actions as necessary to protect its economy, Beijing views them as an over-reach that undermines global trade rules.

WTO dispute process

China’s filing will initiate a formal dispute resolution process within the WTO, starting with a 60-day period during which the two countries will attempt to resolve the matter through consultations. If the dispute is not settled within this period, China may request a WTO panel to rule on the case.

Trade experts believe this case could have far-reaching implications for bilateral relations. “This is not just about trade; it reflects broader tensions in Sino-Turkish relations,” said Professor Chen Zhang, a trade analyst in Beijing. “The outcome of this dispute could set the tone for future interactions between the two emerging economies.”

Impact on bilateral relations

Relations between China and Turkiye have grown in complexity over recent years. While China is Turkiye’s largest trading partner, concerns over economic imbalances and competition have created friction. Additionally, geopolitical differences, particularly related to China’s Belt and Road Initiative and Turkiye’s growing regional assertiveness, have added strain.

Despite these challenges, both countries have expressed a desire to strengthen economic ties. However, analysts believe this WTO case could complicate future negotiations and affect investment flows between Beijing and Ankara.

The Turkish government has yet to issue an official response to China’s filing, but insiders suggest that Ankara will defend its trade policies, arguing that they are in line with international standards and necessary to protect local industries.

As the world watches closely, this WTO dispute is likely to test the resilience of Sino-Turkish relations in the face of growing global economic challenges.

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