foreign trade policy of turkey istanbul, 19 th october 2009 İclal sİncer foreign trade expert...

FOREIGN TRADE POLICY OF

TURKEY

Istanbul, 19th October 2009

İclal SİNCER

Foreign Trade Expert

General Directorate of Economic Research and Assessment

Undersecretariat for Foreign Trade

Before Republic : Customs Policies

1934 : Ministry of Economy

Head of Foreign Trade

1939 : Ministry of Trade

Head of Foreign Trade

1971 : Ministry of Foreign Economic Relations

1971 : General Secretariat For Foreign Trade

1983 : Undersecretariat For Treasury & Foreign Trade

1994 - : Undersecretariat For Foreign Trade

HISTORICAL BACKROUNDUndersecretariat for Foreign Trade

3

PROVINCIAL ORGANIZATIONS

Free Zone Directorates (20)

Local Offices (DTS, 8)

UNDERSECRETARYExporters’ Unions

Export Promotion Center (İGEME)Missions Abroad

MINISTER of STATE


General Directorate of Standardization

General Directorate of Free Zones

General Directorate of European Union Affairs

General Directorate of Agreements

General Directorate of Import

General Directorate of Export

MAIN SERVICE UNITSControl, Advisory and

Supporting Units

Board of Foreign Trade Controllers (DTKK)

Legal Consultancy

Press and Public Relations Coordinator

Department of Security

Department of Human Resources

Department of Strategy Development

Department of Administrative and Financial Affairs


UFT FOREIGN MISSIONS

AMERICABUENOS AIRES LOS ANGELES NEW YORK OTTAWA SAO PAULOCHICAGOWASINGTON

EUROPEATHENS HAMBURG PRAGBELGRAD HANNOVER ROMABERLIN HELSİNKİ SARAJEVOBERN KOPENHAG SOFIABRUSSELS LAHEY STOKHOLM BUDAPEST NICOSIA TIRANEBUCHAREST LONDON SKOPJEDUBLİN MADRİD WARSAWDUSSELDORF MİLANO VIENNA

PARİS ZAGREB

AFRICAABUJA ADDİSABABA ALGERIADAKAR KHARTOUMALEXHANDRIACAIRONAIROBIPRETORIA RABAT TRABLUS TUNUSIA

ASIAABU DHABI BISHKEK KARACHI MOSKOW SHANGHAIAMMAN JAKARTA KAZAN MUSKAT TEHRANASTANA J IDDA KIEV NOVOROSSISK TASHKENTASHKHABAD DOHA CHISINAU ODESSA TEL AVİVBAGHDAD DUBAİ KUALALUMPUR BEIJ ING TBILISIBAKU DUSHANBE JERUSALEM RIYADH TOKYOBANGKOK HALAB KUWAIT SANAA ULAN BATURBATUMI HONG KONG MANAMA SEUL NEW DELHIBEIRUT ISLAMABAD MANILA SINGAPORE

KABUL MINSK DAMASCUS

AUSTRALIAMELBOURNESYDNEY

PERMANENT MISSIONSEU-BRUSSEL WTO-GENEVAOECD-PARİS


MAIN OBJECTIVES

Expanding foreign trade culture and consciousness throughout Turkey

Making institutional development consistent

Sustainable growth of export

Progressing import policies to support production and to prevent economy from damages and threats

Developing policies to provide supplying safe and quality products

Making up strategies for facilitation of foreign trade and progressing international contracting and

technical consultancy services

Since 1980 Turkey implements an outward oriented trade policy

Turkey starting from 1980 left import substitution policy and opened its market by gradually lowering its customs tariffs

Membership to the WTO and the Customs Union with the EU are Turkey’s two major economic involvements determining the direction of foreign trade policies

As a founding member of the WTO, Turkey acts according to the rules and disciplines of the WTO and is committed to push forward liberalisation in the multilateral arena


FOREIGN TRADE POLICY OF TURKEY


WTO

Member of the GATT (1951)

Founding member of the WTO (1995)

Developing country status in the WTO

Committed to the multilateral rules and principles

DDA; new market-opening measures synchronized with rules for the creation of a fairer and more competitive international trade system

Agriculture; elimination of all trade distorting measures, gradual tariff liberalization and S&D flexibilities

NAMA; real market access opportunities & improvement in South-South trade

Trade facilitation; fair, competitive, predictable and transparent trading environment

Trade in services; progressively higher level of liberalization with appropriate flexibility for individual developing countries


TURKISH STANCE AT THE WTO

Being a party to the Customs Union, Turkey’s trade policies are in line with the Common Commercial Policy of the EU

Decision No. 1/95 of the Turkey-EC Association Council: Free movement of goods and Commercial Policy (Article 2-23)

Free circulation and elimination of customs duties (Article 4)

Elimination of quantitative restrictions (Articles 5-11) Commercial Policy (Article 12) Common Customs Tariff (Articles 13-15) Preferential Tariff Policy (Article 16)

Preferential Agreements with third countries (Article 16/1) Autonomous regimes (Article 16/1) Identical rules of origin (Article 16/2)


EU

MAIN DUTIES

Trade Protection

Trade Promotion

Multilateral and Bilateral Trade Relations

(WTO, EU, FTAs)


MAIN DUTIES

To formulate and conduct sector- and country-specific policies in connection with export loans and other state aids in line with WTO rules

Sectoral Studies, State Aids for exporters, Market Access Strategies, Fairs and Promotion Activities, Free Zones , increasing production, trade and foreign

direct investment Informing Exporters, Observing, conducting researches on foreign trade of

Turkey and World, and presenting reports. e-trade.


TRADE PROMOTION

Protective Trade Policy Instruments

- Anti-Dumping and Countervailing Measures

- Safeguard Measures

Technical Regulations & Standardization For Foreign Trade

PROTECTION OF COMMERCIAL RIGHTSUndersecretariat for

Foreign Trade

Bilateral/Regional Dimension

Policy rationale for bilateral agreements

trade expansion fostering reciprocal investments building sound basis for economic, technical and commercial cooperation promoting regional development developing trade and economic relations with neighbouring and

surrounding countries

Key Turkish bilateral/regional agreements

Turkey-EEC Association Agreement Customs Union Decision with the EU Turkey-ECSC Free Trade Agreement ACD No. 1/98 on trade in agriculture Economic, commercial, industrial and

technical cooperation agreements with 46 countries Free Trade Agreements with EFTA,

Balkan states, Mediterranean countries Agreements on reciprocal promotion and protection of investments ECO, BSEC, D-8, OIC

Main objective is to create sound basis for collaboration, support development and eliminate trade barriers between the partners


TURKEY’ S FREE TRADE AGR EEMENTS

Agreements signed(*)

Attempts for FTA Negotiations

1. EFTA (Switzerland, L ichtenstein,

Iceland, Norway)

2. Israel

3. Macedonia

4. Croatia

5. Bosnia and Herzegovina

6. Palest ine Authority

7. Tunisia

8. Morocco

9. Syria

10. Egypt

11. Albania

12. Georgia

13. Montenegro

14. Serbia

15. Chile

1. Faroe I slands

2. Lebanon3. Jordan4. GCC5. Mercosur

6. Ukraine7. Mauritius

Ongoing Negotiations

1. Algeria 7. South Africa2. S. Korea 8. ACP Countries3. ANDEAN 9. ASEAN4. India 10. Canada5. CACM 11. Libya6. Mexico



TRADE DEVELOPMENT STRATEGIES

Strategy of Neighbour and Surrounding Countries (2000)

Strategy of African Countries (2003)

Strategy of Asian and Pasific Countries (2005)

Strategy of USA (2006)

Strategy of Latin American Countries (2007)


Change (%)

Jan-Aug Share (%) Jan-Aug Share (%) Jan-Aug

Neighbour&Surrounding Countries 39.053 42,3 27.550 42,6 -29,5

African Countries 6.221 6,7 7.047 10,9 13,3

Asian and Pasific Countries 3.938 4,3 2.845 4,4 -27,8

Latin American Countries 918 1,0 498 0,8 -45,8

Export (Million $)2008 2009

TRADE DEVELOPMENT STRATEGIES


FOREIGN TRADE DEVELOPMENTS OF

TURKEY

17th biggest economy

GDP per capita: 10.372

US$

Trade volume: 334 billion

US$

Trade to GDP ratio: 45%

13th

biggest importer*

22nd biggest

exporter*

Ranks 16th in commercial

services exports*

Ranks 24th in commercial

services imports*

2008

(*) EU as single entity

Turkey in the World


World and Turkey (2008)

Share of some countries Share of some countries

Merchandise Exports Merchandise Imports

USA8%

China9%

Germany9%

Netherlands4%

Turkey1%

Japan5%

Other countries

64%

China7%

Germany7%

USA13%

France4%

Japan5%

Other countries

62%

Turkey2%



Foreign Trade DevelopmentAnnual (2002-2009*)

36,1 51,6

-15,5

47,369,3

-22,1

63,2

97,5

-34,4

73,5

116,8

-43,3

85,5

139,6

-54,0

107,3

170,1

-62,8

132,0

202,0

-69,9

64,687,6

-23,0

-100

-50

0

50

100

150

200

250

2002 2003 2004 2005 2006 2007 2008 2009 (1-8)

Export Import Balance

Billion $

* 2009 January-August

%30 deceleration of export

%40 deceleration of import

nearly %60 decrease of foreign trade balance


Foreign Trade Development (2008*-2009*)

Jan-Aug.2008 Jan-Aug.2009 Change

Billion $ Billion $ (%)

Export (FOB) 92,4 64,6 -30,1

Import (CIF) 145,7 87,6 -39,9

Energy Import 34,0 18,9 -44,3

Foreign Trade Volume 238,1 152,2 -36,1

Foreign Trade Balance -53,3 -23,0 56,9

Balance exc. Energy -19,3 -4,1 78,8

* January-August


Million $ Change (%)

Jan-Aug Share (%) Jan-Aug Share (%) 09/08Europe 56.542 61,2 36.381 56,3 -36,5 EU (27) 45.548 49,3 28.723 44,4 -38,4 Other Europe 10.994 11,9 7.658 11,9 -28,2Africa 6.221 6,7 7.047 10,9 16,6 North Africa 3.898 4,2 5.045 7,8 33,6 Other Africa 2.323 2,5 2.003 3,1 -11,4America 4.189 4,5 2.961 4,6 -26,5 North America 2.998 3,2 2.240 3,5 -23,9 Other America 1.191 1,3 721 1,1 -33,6Asia 22.094 23,9 16.338 25,3 -25,1 Near and Center East 17.191 18,6 12.476 19,3 -25 Other Asia 4.903 5,3 3.862 6,0 -25,3Other 3.348 3,6 1.895 2,9 -45,6Total 92.394 100 64.622 100 -30,2

2008 2009

EXPORT BY COUNTRY GROUPS


IMPORT BY COUNTRY GROUPS


Jan-Aug Share (%) Jan-Aug Share (%) 09/08Europe 86.857 59,6 51.286 58,6 -41,0 EU (27) 54.423 37,4 34.907 39,9 -35,9 Other Europe 32.434 22,3 16.379 18,7 -49,5Africa 5.840 4,0 3.747 4,3 -35,8 North Africa 3.906 2,7 2.298 2,6 -41,2 Other Africa 1.935 1,3 1.450 1,7 -25,1America 11.795 8,1 7.765 8,9 -34,2 North America 9.113 6,3 6.051 6,9 -33,6 Other America 2.682 1,8 1.715 2,0 -36,1Asia 39.598 27,2 23.679 27,0 -40,2 Near and Center East 12.834 8,8 6.055 6,9 -52,8 Other Asia 26.764 18,4 17.624 20,1 -34,1Other 1.568 1,1 1.095 1,3 -30,1Total 145.658 100 87.574 100 -39,9

2008 2009


60,4

68,6

-8,2

63,4

74,8

-11,4

28,7

34,9

-6,2

-20

-10

0

10

20

30

40

50

60

70

80

Bill

ion

$

2007 2008 2009 (Jan-Aug)


BILATERAL TRADE WITH EU(2007-2009)



Jan-Aug Share (%) Jan-Aug Share (%) 09/08Agricultural products 7.002 7,6 6.698 10,4 -4,3Food 6.436 7,0 6.327 9,8 -1,7Ag. Raw Materials 566 0,6 371 0,6 -34,5Mining products 8.682 9,4 4.143 6,4 -52,3Metalliferous ores and metal scrap 1.777 1,9 1.027 1,6 -42,2Mineral fuels, lubricants & related materials 5.359 5,8 2.298 3,6 -57,1Non-ferrous metals 1.546 1,7 817 1,3 -47,1Manufactures 73.943 80,0 49.477 76,6 -33,1Iron-Steel 12.172 13,2 6.083 9,4 -50,0Chemicals 4.199 4,5 3.304 5,1 -21,3Oth. Semi-manufacures 8.580 9,3 6.605 10,2 -23,0Machinery and Transport Equipment 28.197 30,5 17.648 27,3 -37,4Textiles 6.458 7,0 4.773 7,4 -26,1Clothing 9.700 10,5 7.498 11,6 -22,7Oth. Consumer goods 4.637 5,0 3.567 5,5 -23,1Other Products 2.767 3,0 4.304 6,7 55,6Total 92.394 100 64.622 100 -30,1

2008 2009

SECTORAL BREAKDOWN OFEXPORT

WTO Classification


IMPORT (BEC)

Capitalgoods Intermediate

goods Consumergoods Other goods

15,3

70,9

13,3

0,5

13,4

75,8

10,4

0,30,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

2008 Share (%) 2009 Share (%)

Annual Jan-Aug Jan-Aug Jan-AugCrude Oil 15.639 12.330 3.965 -67,8Natural Gas 15.470 9.779 6.553 -33,0

Electricity 15 8 12 50,0Others 384 1.219 1.164 -4,5

Total Energy 48.281 34.026 18.948 -44,3

Total Import 201.964 145.658 87.574 -39,9

Share (%) 23,9 23,4 21,6 -7,4

Coal, Lignite etc.

Other Oil Gas

Change (% )

Oil Concoctions

3.429 2.133 1.987 -6,8

10.995 6.923 4.262 -38,4

2.350 1.634 1.005 -38,5

2008 2008 2009Million $


0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0

Electricity

Others

Other Oil Gases*

Coal, Lignite etc.

Crude Oil

Oil Concoctions

Natural Gas

2009 (January-August)

Share of Energy Imports (%)

Energy Imports

BILATERAL TRADE WITH MEMBER COUNTRIES OF OIC


4,76,1

-1,3

7,28,2

-1,0

10,210,6

-0,4

13,114,5

-1,4

15,0

19,1

-4,1

20,321,5

-1,2

32,629,2

3,4

18,7

11,0

7,7

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

2002 2003 2004 2005 2006 2007 2008 2009 (1-8)



Billion $

* 2009 January-August

Bilateral Foreign Trade DevelopmentAnnual (2002-2009*)

Million $ Change (% )

Jan-Aug Share (% ) Jan-Aug Share (% ) 09/ 08Agricultural products 2.085 9,5 2.406 12,8 15,4Food 1.960 8,9 2.305 12,3 17,6Ag. Raw Materials 125 0,6 100 0,5 -19,7Mining products 1.497 6,8 1.157 6,2 -22,7Metalliferous ores and metal scrap 81 0,4 78 0,4 -4,2Mineral fuels, lubricants & related materials 1.247 5,7 898 4,8 -28,0Non-ferrous metals 169 0,8 181 1,0 7,3Manufactures 17.909 81,8 14.674 78,3 -18,1Iron-Steel 7.614 34,8 4.106 21,9 -46,1Chemicals 1.239 5,7 1.312 7,0 5,9Oth. Semi-manufacures 2.314 10,6 2.615 14,0 13,0Machinery and Transport Equipment 3.933 18,0 3.729 19,9 -5,2Textiles 1.066 4,9 1.034 5,5 -3,1Clothing 427 1,9 489 2,6 14,6Oth. Consumer goods 1.316 6,0 1.391 7,4 5,7Other Products 413 1,9 498 2,7 20,6Total 21.904 100 18.734 100 -14,5

2008 2009


SECTORAL BREAKDOWN OF

EXPORT


SECTORAL BREAKDOWN OF

IMPORTMillion $ Change (% )

Jan-Aug Share (% ) Jan-Aug Share (% ) 09/ 08

Agricultural products 1.681 7,9 791 7,2 -52,9Food 1.259 5,9 554 5,0 -56,0Ag. Raw Materials 421 2,0 237 2,2 -43,8Mining products 15.047 70,5 6.888 62,6 -54,2Metalliferous ores and metal scrap 639 3,0 245 2,2 -61,6Mineral fuels, lubricants & related materials 12.636 59,2 5.903 53,6 -53,3Non-ferrous metals 1.772 8,3 740 6,7 -58,2Manufactures 4.403 20,6 3.028 27,5 -31,2Iron-Steel 303 1,4 119 1,1 -60,9Chemicals 1.791 8,4 1.094 9,9 -38,9Oth. Semi-manufacures 226 1,1 124 1,1 -45,0Machinery and Transport Equipment 510 2,4 309 2,8 -39,5Textiles 896 4,2 734 6,7 -18,1Clothing 471 2,2 500 4,5 6,2Oth. Consumer goods 206 1,0 148 1,3 -27,8Other Products 217 1,0 303 2,8 39,3Total 21.348 100 11.010 100 -48,4

2008 2009


THANK YOU

İclal SİNCER

Foreign Trade Expert


E-mail: [email protected]

Tel: +90 312 2047987

foreign trade policy of turkey istanbul, 19 th october 2009 İclal sİncer foreign trade expert...

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