HCMC – Turkey has decided not to impose a safeguard tariff on mobile phones imported from Vietnam after calling off an investigation into the product, said the Vietnam Competition Authority under the Ministry of Industry and Trade. 

In July last year, Turkish Minister of Economy Nihat Zeybekci announced the nation might slap safeguard tariffs of 10-15% on imported cell phones. In early December 2014, Turkey opened a safeguard investigation into Vietnamese-made mobile phones following a lawsuit filed by local firm Vestel Elektronik Sanayi Ve Ticaret A.Ş.

Turkish investigators worked with relevant parties, including Vietnam’s Trade Office in Turkey and a couple of Vietnamese enterprises, in the foreign country in March last year.

South Korea’s Samsung Electronics, which may be affected by the investigation, sent a document to oppose the plaintiff’s claim. Samsung said in a joint statement of its subsidiaries in Vietnam, China and India that the enterprise holds a big share of Turkish’s mobile phone market and makes investment in the country as well.  

According to the Vietnam Competition Authority, Vietnam exported US$643 million worth of cell phones to Turkey in the January-November period of 2014. The figure was US$418 million in all of 2013.

Vietnam is the second biggest exporter of mobile phones to Turkey, accounting for 23.4% of Turkey’s total imports, while China ranked first with 67.5%, according to Turkey’s document sent to the World Trade Organization (WTO) in December 2014. 

Vietnam’s Trade Office in Turkey said due to a huge trade deficit, Turkey usually uses trade defense measures to restrict imports. Vietnam has faced a number of anti-dumping, safeguard and avoidance of anti-dumping investigations conducted by Turkey.

The foreign country has investigated the avoidance of anti-dumping taxes on Vietnamese plywood, granite and cold rolled stainless steel welded tubes, and launched anti-dumping probes into Vietnam’s polyester fibers, fiber, air-conditioners and auto tires, besides safeguard investigations into mobile phones, woven fabric, clothing and shoes produced in the ASEAN nation.  

Among them, the safeguard investigation into Vietnamese-made mobile phones was a rare case as Vietnam usually had to deal with trade defense investigations into labor-intensive items.