However, Turkey’s position in European and US markets started to appear increasingly vulnerable with the phasing-out of quotas, which had helped to protect Turkish interests by restricting exports from low cost competitors. Turkish firms feared that they would lose up to a third of their exports to Western Europe and North America because of a flood of cheap goods into those markets from China and other Asian sources.
In response, Turkey campaigned hard for the temporary re-imposition of quotas against China, in accordance with the safeguard clause included in the Protocol of China’s accession to the WTO.
At the same time the Turkish industry embarked on a vigorous campaign to move upmarket by adding value through innovation and superior design. The re-imposition of quotas against China has given Turkey valuable breathing space in which to develop this strategy.
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