The Trade Ministry announced that it does not share some of the assessments in the World Trade Organization (WTO) Panel's report on Turkey's automotive import measures, and that the report is not final in nature; legal review processes will be initiated.
The Ministry's written statement noted that new technologies emerging in recent years, increasing protectionist trends, and intensifying global competition and imbalances among major economies make it imperative for foreign trade policies to be carefully managed to safeguard the national economy and industrial infrastructure.
The statement, which noted that pressures from unfair trade practices in imports on domestic and national production and the sustainability of industrial production point to a process that must be carefully managed also for Turkey, stressed that the country pursues a balanced approach. This approach involves using trade policy tools effectively while protecting domestic and national industry against unfair trade, promoting production capabilities in emerging industrial fields, supporting exporters' competitiveness, and ensuring consumer confidence and welfare.
Turkey's measures deemed reasonable
The statement recalled that various measures were implemented for automotive imports, aimed at sustaining domestic production in the strategically important automotive sector under increasing unfair competition conditions, supporting adaptation capacity to new technologies especially in the transition to electric vehicles, protecting consumer safety and public health, and in line with international obligations. It highlighted that in the report published following the Panel evaluation process launched at the WTO two years ago regarding these measures, Turkey's practices were assessed as reasonable under the provisions concerning health, environment, and consumer protection.
The statement, which also included an assessment that in a few measures the objective of protecting domestic production was decisive in terms of implementation procedures and principles, along with some recommendations, said:
The Panel report also includes assessments and interpretations in favor of our country regarding some of the measures brought before the panel.
At a time when the world economy and the global automotive industry are undergoing a profound transformation, some assessments by the WTO Panel regarding our measures that protect our domestic automotive industry against unfair competition and prioritize consumer safety and welfare are not shared by our country.
It is clear that the Panel report contains elements that do not take into account the technological developments of the last 30 years and especially the transformation of the automotive sector towards electrification.
Turkey to exercise right to legal review
The statement recalled that Turkey is a founding member of the WTO and a strong advocate of a rules-based, predictable and open multilateral trading system, and stated that in the face of practices that distort the international competitive environment through excessive subsidies and overcapacity and negatively affect the healthy functioning of the multilateral trading system, the effective use of trade policy tools to ensure the sustainability of production and the national economy is seen as legitimate and necessary for all WTO members.
The statement, also noting that measures taken by many WTO member countries recently and the increasing disputes at the WTO reflect these legitimate concerns, added:
Under the WTO legal system, a panel report is by no means final in nature.
In this context, our country will exercise the right to initiate the necessary legal review processes granted to member countries within the WTO mechanisms regarding matters that are not found legally sound.
The statement also conveyed that consultations are being maintained with all WTO member countries on the issue within the framework of a balanced and fair trade perspective.
