“To get our share of the $125-billion Russian import cake, we should transform shuttle trade into foreign trade,” Karahan adds.
Russia has been modifying its customs regulations for two years.
Laleli tradesmen are also looking for a solution after the restrictions imposed on shuttle trade that caused a loss of $2 billion in 2004.
Shuttle Trade Yields
Years-Sum (in US BillionDollars)
1996: 8.842
1997: 5.849
1998: 3.689
1999: 2.255
2000: 2.944
2001: 3.040
2002: 4.068
2003: 3.954
2004: 3.880
2005: 2.468
Total: 40.989
A possible solution is to overcome the difficulties imposed by Moscow by establishing companies in Russia. Five or six shuttle traders could together and form a “foreign trade” company, with the aim of perpetuating trade through companies.
Karahan told Laleli tradesmen, “The end of shuttle trade does not mean end of trade between the two countries,” and called for the unification of systematic foreign trade.
According to Textile Exporters' Assosication Chairman Ismail Gulle Moscow hopes to “register” trade between the two countries, and says some Laleli firms that have already adapted to the transformation, and stressed that despite a drop in shuttle trade, export to Russia has increased 40 percent.
Fibre2fashion News Desk - Turkey
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