UAE ruling irks Turkish iron exporters

UAE ruling irks Turkish iron exporters

ISTANBUL - Anatolia News Agency
Turkey’s iron and steel sector has been left up in arms by a recent United Arab Emirates decision to impose tariffs on Turkish steel imports.

The U.A.E., one of the top markets of Turkish steel and iron exporters, has lifted a customs tax exemption in the sector to protect local companies.

The U.A.E. will implement the 5 percent tariff on construction iron from Turkey starting Jan. 5, said Veysel Yayan, the secretary-general of the Turkish Iron and Steel Producers Association.

 “The U.A.E. market is crucial for us. It is a leading export market for us. We do not know the details of the new regulation in full, but it is negative for the sector,” he said.

The move will affect export prices by $35 per ton.

The U.A.E. bought 800,000 tons of iron from Turkey in the first 10 months of 2010, becoming the second market after Iraq, Yayan said.

Economy Minister Zafer Çağlayan said the ministry was in talks with both the U.A.E. and Egypt on the issue but he said he would have nothing to say if the implementations were in accordance with World Trade Organization (WTO) rules.