Turkey and India have changed their minds about duties. A crisis is more convincing than any roundtable and any “moral suasion” operation to change opinions, regardless of editorial origin. The drop of demand for finished leather has pushed some chains, until now in a position of comfortable protectionism, to review the priorities. That’s the case for both Ankara and New Delhi.
Turkey no longer enjoys the fruits of duties
Turkish operators of the leather chain have asked to government to remove export duties on wet blue of bovine origin and from pickled ovine hides. As reported by Leatherbiz, there is a 40% duty on the first one, and a 500-USD-per-ton tax on the latter. Now that domestic demand is stagnant and foreign markets can provide more for the local tanners, they have demanded the abolition of the duties and tax. Or at least, for the government to lower them.
The situation in India is even more complex. Here the macro difficulties of the leather market, at a global level, overlap that of the national chain. For this reason, the Council for Leather Exports, the agency that supports the internationalization of businesses, asked the Modi government for favorable reforms that would put the manufacturers of finished goods in a better condition. What type? Liberalization of imports of raw material and support for exports, as early as inside the next government budget. We wonder what they think of these requests in New Delhi.