Small iron and steel manufacturers could fail under heavy competition from the European Union, according to a survey carried out by the Izmir Chamber of Commerce (IZTO) on 538 such Turkish firms.
Of the firms polled, 21 percent firms said that during the process of Turkey's seeking EU membership, adjustment problems could arise due to differing economic systems, and fierce competition could quash small firms.
A total of 32 percent complained of a lack of quality standards for material supplies; 56 percent, of lengthy customs clearing, and 13 percent of transportation problems.
A total of 15 percent cited price instability as the greatest problem, and 14 percent of falling sales. Other major problems cited were the sector's working below capacity, cash shortages, and borrowing difficulties.
The firms suggested that the government bar imports of low-quality goods, set up specialized customs, and impose quotas on Russian products.
They also called for Turk Eximbank to increase its lending to the sector, a slowing of environmental investments that boost the sector's costs, and a review of energy pricing policies. — (Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)
