NORTH AMERICA AND GLOBAL ECONOMY

CPL2-561-781

TRADE REPORT ON TURKEY&

TRADE RELATIONS WITH CANADA

Prof. Kenneth Matziorinis

Funda Celikaksoy 260114332

Said Diarra 260102862

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Table of content:

1. COUNTRY PROFILE- Geography……………………………………….…………………………………….p 3

- Population............................................................................................................p 3

- Economy………………………………….……………………………………………p 4

- Government Finances…………..……………………………………………………p 6

- BOP position…………………………………………………………………………..p 6

- Exchange rate……………………………………………...………………………….p 7

- Politics………………………………………………………….………………………p 9

- International Organizations……………………………….……………………….…p 9

- Global Rankings…………………………………………………………………..…p 13

- Bilateral trade relations with Canada………….…………………………………..p 14

2. INTERNATIONAL TRADE- Exports………………………………..……………………………………………p 15

- Imports………………………………..……………………………………………p 18

- Bilateral trade with Canada……………………………………………………....p 18

- Bilateral trade with USA……………….………………………………………….p 18

- Exports/Imports with NAFTA………………….…………………………………p 19

- Capital Flows…………………………………….……………………………..…p 19

- International Trade Issues………………………..…………………………...…p 20

3. TURKEY’S TRADE POLICY - Trade policy …………………………………………………………….…………….p 23

- Policy objectives ……………………………………………………………………..p 24

4. UPCOMING TRADE EVENTS IN TURKEY………………………………p26

ANNEX... ………………………………………………………………..………………p 27

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1. COUNTRY PROFILE:

Turkey is a dynamic emerging market economy strategically located between

Europe and Asia, and bordering the Mediterranean, Aegean and Black Seas. Her

neighbors in the west are Bulgaria and Greece, in the east Armenia, Azerbaijan,

Georgia, Iran, in the south east Iraq and Syria. The total area of Turkey is 774,815

square kilometers. There are 81 cities in Turkey and the capital city is Ankara. The

other main cities are Istanbul, Izmir, Bursa, Eskisehir, Antalya, Mersin, Edirne,

Tekirdag, Adana, Gaziantep.

Turkey’s population is approximately about 70,712,000 (from the 2003

estimate) and the population growth rate is of 1.53%. The life expectancy was of 68.7

years in 2003. Age distribution is as follows; the population from 0-14 accounts for

26.6% of the total population, the population from 15-64 accounts for 66.8% and the

population over 65 years old accounts for 6.6%.

The different ethnic groups in Turkey are the following; Turks that accounts for

80% and Kurds with 20% estimate. The official language is Turkish. The majority of

the citizens are Muslim, at 99.8% the rest are Christian and Jewish for 0.02%.

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TURKEY'S SOCIAL INDICATORS    1999 2000 2001 2002 2003 2004

AREA (Km2) 774,815 774,815 774,815 774,815 774,815 774,815

POPULATION (000) MID YEAR 64,345 67,461 68,618 69,626 70,712 ...

  FEMALE 32,817 33,399 33,974 ... … ...

  MALE 33,476 34,062 34,636 ... ... ...

POPULATION GROWTH RATE % 1.75 1.71 1.67 1.57 1.53 ...

POPULATION DENSITY 83.05 87.07 88.56 89.86 91.26 ...

INFANT MORTALITY 3.63 3.48 3.87 3.94 3.83 ...

AV. LIFE EXPECTANCY 68.3 68.5 68.6 68.5 68.7 ...

  Female 70.7 70.9 71.0 70.9 71.0 ...

  Male 66.1 66.2 66.4 66.2 66.4 ...

POPULATION PER DOCTOR 820 834 776 744 ... ...

Economics:

TURKEY’S ECONOMIC INDICATORS  1999 2000 2001 2002 2003 2004 (1)

GNP (2004 Q3)            

Current prices (Milyon $) 185,267 200,002 145,693 180,892 239,235 ...

GNP per capita ( $ ) 2,879 2,965 2,123 2,598 3,383 ...

GDP per capita in PPP ( $ ) 6,135 6,730 6,046 6,448 6,718 ...

GNP SECTORAL GROWTH RATE (%) (2004 Q3)            

Agriculture -5.6 3.8 -6.0 7.4 -2.4 -1.6

Manufacturing -5.1 5.6 -7.4 7.9 7.3 6.3

Services -3.9 6.5 -6.1 6.0 5.1 4.4

GDP -6.1 6.3 -9.5 7.9 5.9 4.7

GDP COMPOSITION BY SECTOR (%) (2004 Q3)            

Agriculture 16.0 15.4 12.8 13.0 13.4 24.3

Industry/Manufacturing 19.0 20.0 21.1 19.7 18.5 15.3

Services 64.9 64.6 66.1 67.3 68.2 61.0

EMPLOYMENT (2000-2003 Q4) (2004 Q3)            

Civilian Labour Force (1000 persons) 22,925 22,031 22,269 24,347 23,206 25,265

Civilian employment (1000 persons) 21,236 20,579 20,367 21,658 20,811 22,874

Agriculture 8,595 7,103 7,217 7,618 6,799 8,222

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Industry/Manufacturing 3,664 3,738 3,734 3,953 3,836 4,035

Services 8,976 9,738 9,416 10,086 9,150 9,434

Unemployment rate (%) 7.4 6.6 8.5 11.0 10.3 9.5

Turkey’s GNP per capita with current prices in 2003 was USD 3,383; almost 1/8 of Canada’s GNP per capita. GDP per capita in Turkey in Canadian dollars was $5,009 and in Canada $39,459 in 2003. GDP growth rate for 2003 was 5.9% and for 2004 it was 4.7%. Between 1993-2003 Turkey has 2.7% average GDP growth rate where OECD average is 2.6% and Canada’s 3.6%.

The structure of the economy in 2004 is distributed like this; 24.3% for

agriculture, where we observe almost an 11% of increase in this particular sector

compared to the previous year, 15.3% in the manufacturing sector, and finally 61%

for the services. The main Turkish industries are textiles, iron-steel products,

machinery, glass-ceramics, gold jewelry, agriculture, mining and chemicals.

From our research, we noticed an increase in the unemployment rate even

though there was an economic crisis in 2000-2001. However, the unemployment rate

has fallen to a 9.5% rate in 2004.

PRICE & INTEREST FLUCTUATIONS 1999 2000 2001 2002 2003 2004 2005

Wholesale Price Index (*) 62.9 32.7 88.6 30.8 13.9 13.8 10.7

Consumer Price Index 68.8 39.0 68.5 29.7 18.4 9.3 9.2

After many years of chronicle high inflation, Turkey finally managed to

succeed in reaching a downward trend since 2001, which corresponds to the end of

the economic crisis. We were also able to establish that 2004’s wholesale price index

which was 13.8% and the consumer price index which was of 9.3%, were the lowest

data Turkey faced in thirty years, which shows the improvements that Turkey realized

in controlling its economy.

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Government finances:

(billion TL) 1999 2000 2001 2002 2003

Expenditure 28,084,685 46,705,028 80,579,065 115,485,633 140,053,981

Revenue 18,933,065 33,440,143 51,542,970 76,400,450 100,238,122

Budget balance -9,151,620 -13,264,885 -29,036,095 -39,085,183 -39,815,859

GDP 77,374,802 124,583,458 178,412,438 276,002,988 357,045,000

Outstanding

domestic debt22,920,145 36,420,620 122,157,260 149,869,691 194,386,700

Debt shares in

GDP(%)29.6 29.2 68.5 54.2 54.4

Source: state planning organization

Turkey has a huge public debt consequently its budget consecutively gives

continuous deficits. We were also able to find the public debt to GDP ratio which was

of 54.4% in 2003.

Balance of Payments position:

BOP    ANNUEL JAN-OCT

  (million dollars) 1999 2000 2001 2002 2003 2003 2004

A. CURRENT ACCOUNT -1,344 -9,819 3,390 -1,522 -8,037 -4,579

-10,719

Export f.o.b. 28,842 30,721 34,373 40,124 51,206 41,932 53,898

Import f.o.b. -39,027 -52,680 -38,106 -47,407 -65,216 -52,534

-

72,670

  GOODS BALANCE -10,185 -21,959 -3,733 -7,283 -14,010 -10,602

-

18,772

Service Revenues 16,800 20,364 16,030 14,783 19,025 16,681 20,499

Service Expenditure -9,313 -8,996 -6,900 -6,904 -8,520 -6,910 -8,893

  GOODS & SERVICE BALANCE -2,698 -10,591 5,397 596 -3,505 -831 -7,166

Investment Income Receipts 2,350 2,836 2,753 2,486 2,246 1,888 2,114

Investment Income Payments -5,887 -6,838 -7,753 -7,040 -7,805 -6,482 -6,606

  GOODS&SERVICE&INVESTMEN IN. BALANCE -6,235 -14,593 397 -3,958 -9,064 -5,425 -

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11,658

Transfers 4,891 4,774 2,993 2,436 1,027 846 939

                 

B. CAPITAL ACCOUNT  

C. FINANCIAL ACCOUNT 4,829 9,584 -14,643 1,161 7,091 6,091 13,169

TURKISH DIRECT INVESTMENT -645 -870 -497 -175 -499 -403 -716

FDI IN TURKEY 783 982 3,266 1,038 1,694 1,305 2,386

PORTFOLIO-ASSETS -759 -593 -788 -2,096 -1,386 -881 -1,079

PORTFOLIO-LIABILITIES 4,188 1,615 -3,727 1,503 3,955 3,600 5,622

OTHER INVESTMENTS-ASSETS -2,304 -1,939 -601 -777 -986 -528 -4,853

OTHER INVESTMENTS-LIABILITIES 3,566 10,389 -12,296 1,668 4,313 2,998 11,809

  Current,Capital&Financial Accounts 3,485 -235 -11,253 -361 -946 1,512 2,450

                 

D. Discrepancy 1,721 -2,762 -1,671 149 5,043 2,960 2,134

                 

  BALANCE 5,206 -2,997 -12,924 -212 4,097 4,472 4,584

                 

E. OFFICIAL REZERVES -5,206 2,997 12,924 212 -4,097 -4,472 -4,584

Source: Turkish Central Bank

Turkey has trade deficits after 1947. Its export earnings are not sufficient to

pay its import expenses, so Turkey has to borrow money in the form of direct

investment, portfolio investment and foreign debt.

Exchange rates:

1999 2000 2001 2002 2003 2004 2005

TL/Dollar (Selling prices) (1) (**) 419,542 626,486 1,228,837 1,511,055 1,502,995 1,429,778 1.3565

TL/EURO (Selling prices) (1) (**) ... ... ... 1,434,930 1,695,510 1,776,914 1.7873

(1)Since Jan. 2005 1,000,000TL is 1YTL

* March 4, 2005; YTL/USD 1.2620, YTL/EURO 1.6690, YTL/CAD 1.020

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Country’s currency was Turkish Lira (TL) and it has been changed to New Turkish

Lira (YTL) by January 1, 2005.

Foreign exchange reserves:

SDDS Data Category and Component

UnitDescription 1/Observations

Date of Latest Latestdata Previous period

International Reserves US $ Million (f)  Feb./18/05 38,433.4 36,671.8

 * Foreign currency reserves US $ Million (f)  Feb./18/05 36,608.3 34,847.9

 * IMF reserve position  US $ Million (f)  Feb./18/05 172.0 170.3

 * SDRs US $ Million (f)  Feb./18/05 18.1 18.5

 * Gold US $ Million (f)  Feb./18/05 1,635.0 1,635.0

The data shown here correspond to the data described on the International Monetary Fund's Dissemination Standards Bulletin Board

(DSBB).

International Investment Position & Foreign Debt:

International Investment Position, net (date of previous data: end of 2002)

US $ Million 2003 -111,225 -87,253 Central Bank

 * Asset US $ Million 2003 74,515 62,809  

 ** Direct Investment  US $ Million 2003 6,138 5,847  

 ** Portfolio Investment US $ Million 2003 1,956 810  

 *** Equity Securities US $ Million 2003 61 45  

 *** Debt Securities US $ Million 2003 1,895 765  

 ** Other Investment US $ Million 2003 31,217 28,035  

 ** Reserve Assests US $ Million 2003 35,204 28,117  

 * Liabilities US $ Million 2003 185,740 150,062  

 ** Direct Investment US $ Million 2003 32,334 18,846  

 ** Portfolio Investment US $ Million 2003 33,609 24,132  

 *** Equity Securities US $ Million 2003 8,954 3,450  

 *** Debt Securities US $ Million 2003 24,655 20,682  

 ** Other Investment US $ Million 2003 119,797 107,084  

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Gross External Debt US $ Million Q3/04 153,160 148,061 Treasury

Turkey is a large debtor nation. We can state that fact about this country after

analyzing some data such as the net total investment position as a percentage of the

GDP. In 2003 it was equal to 46%, consequently, Turkey’s foreign debt is equal to

64% of its GDP, which is non negligible because more than half of the economy is

financed by foreign debt.

Politics:Turkey is a republican parliamentary democracy. The chief of state is

President Ahmet Necdet Sezer, elected by the National Assembly for a seven-year

term. The Prime Minister is Recep Tayyip Erdogan and is appointed by the president

from among members of parliament. Grand National Assembly of Turkey has 550

seats and members are elected by popular vote to serve five year terms. Parties

surpassing the 10% threshold are entitled to parliamentary seats; seats by party as of

1 December 2004 – 368 for the AKP (Justice and Development Party, religious

democrats), 171 for the CHP (Republican People’s Party, social democrats), 4 for the

DYP (True Path Party, center right wing), 1 for the LDP (Liberal Democratic Party,

liberal), 5 for independents, 1 seat is vacant.

The Minister of Economy is Ali Babacan and the Minister of Industry and Trade is Ali

Coskun.

International Organizations:

Turkey oriented its political and economic structure towards the West,

becoming a member of NATO (1952) as well of the Council of Europe (1949), and

signing an association agreement with the then European Community (1963). A

customs union with the EU took effect in 1996. Turkey is a member of numerous

intergovernmental organizations, like the; UN, OECD, UNESCO, WHO. Turkey also

became a member of the WTO on March 26th 1995. Turkey is finally but not lastly a

member of IMF and World Bank.

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Turkey participates in several regional trade arrangements where the Customs

Union with the EU is its priority. Turkey also has a free trade agreement with EFTA

and is part of the Euro-Mediterranean Partnership aiming at establishing a free trade

area in the region by 2010. It is currently working towards achieving conclude a set of

bilateral trade agreements with southern Mediterranean countries. Turkey also

participates in the Economic Cooperation Organisation and the Black Sea Economic

Cooperation.

The Customs Union (CU) between Turkey and the EC entered into force on 1

January 1996 under decision of the Turkey-EC Association Council (CUD), which is

the main decision-making body of the association. The CUD provides for free trade

in, and a common external tariff (CET) on, industrial goods and the industrial

component of processed agricultural goods; there is no firm timetable for the

integration of agriculture, however, the free movement of agricultural goods is set as

a common objective. In 2002, 95% of Turkey's merchandise imports originated in the

EU, and 97% of its exports to the EU were subject to the CU regime. The CUD also

covers TRIPS, competition policies, commercial policies, customs provisions, and

technical barriers to trade. Moreover, in 2000, the two parties began negotiatiating

with the aim of reaching agreements on trade in services and government

procurement. After three rounds, the negotiations have been stopped in December

2001. The talks resumed in autumn 2003 but still no total agreement has been

reached. The negotiations on services and government procurement are conducted

in parallel sessions with the understanding that nothing is agreed until everything is

agreed on both issues.

The scope of the CUD excludes Turkey from some of the crucial aspects of

the EU's common market: the common agricultural policy (CAP); and moves towards

a single currency. Unlike countries in the European Economic Area (EEA), Turkey

may also be subject to anti-dumping and countervailing measures by the EU. Since

the Helsinki European Council in December 1999, when Turkey was declared a

candidate, these issues are being addressed in the perspective of accession.

Turkey has already adopted a wide range of EU trade and trade-related

legislation on manufactured goods. Turkey has eliminated tariffs and levies on

imports of non-agricultural products originating in the EU, and it applies the EU's CET

on imports of these products from third countries. This has led to a substantial

reduction of its tariffs on these imports. In the view of the EU, Turkey should: focus

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further efforts on aligning legislation on the customs aspects of control of dual-use

goods, counterfeits and pirated goods, and cultural goods; work more on free zones

and customs procedures with economic impact; align tariff preferences, as free-trade

agreements have not yet been concluded with all of the EU FTA partners; harmonize

activities in sectors such as foodstuffs, pharmaceuticals, and cosmetics, and improve

the functioning of various bodies (standardization, accreditation, and conformity

assessment); adopt competition implementing rules; strengthen the enforcement of

intellectual property rights; and adjust state monopolies of a commercial character to

ensure non-discrimination in market access between EC and Turkish operators.

At the Copenhagen European Council of December 2002, it was agreed that "if the

European Council in December 2004, on the basis of a report and a recommendation

from the Commission, decides that Turkey fulfils the Copenhagen political criteria, the

European Union will open accession negotiations with Turkey without delay".

The CUD has strengthened the already strong trade relations between Turkey and

the EU (Chart II.1). Total bilateral trade increased from US$27.9 billion in 1995 to

US$41.6 billion in 2002. The EU has become Turkey's main trading partner, while

Turkey has become the tenth largest trading partner of the EU. During 1995-00,

Turkey experienced an increasing trade deficit with the EU which started to narrow in

2001. Imports from the EU rose from US$16.8 billion in 1995 to US$23.3 billion in

2002, while exports to the EU went up from US$11 billion to US$18.3 billion in the

same period. The textiles and clothing subsector has the largest share in Turkey's

exports to the EU, accounting for 47% of total exports in 2002; followed by

agricultural and processed agricultural goods, motor vehicles, and electrical goods.

Main imports from the EU are chemical products, power engineering machinery, and

transport equipment.

A new EU regulation concerning pre-accession financial assistance for Turkey

entered into force in December 2001. This new regulatory framework is aimed at

ensuring an accession-driven approach to the EC's financial cooperation with Turkey,

and accelerating the process of disbursements. The new system has led to an upturn

in tendering and contracting in 2002 compared with previous years. Turkey also

benefits from European Investment Bank (EIB) assistance. In total, Turkey received

loan financing worth €544.5 million from 1992 to 1999. During 2000-02, the total

allocation for Turkey was €1,506 million, of which €750 million has been disbursed.

The free-trade agreement between Turkey and the EFTA entered into force on

1 April 1992. The agreement covers: industrial products such as fish and processed 11

agricultural products, with the exception of nine agriculture-based tariff items,

including mannitol, sorbitol, casein, and egg and milk albumin and dextrin. In 2002,

some 99% of Turkey's merchandise were imports from EFTA and 90% of its exports

to EFTA were covered by the free-trade agreement. The agreement also covers

intellectual property, competition, state aid, and anti-dumping.

The agreement is based on an asymmetrical model similar to Turkey's

agreement with the EU. Since 1 January 1993, Turkey has granted imports from

EFTA countries the same customs duty treatment as imports from the EU as regards

industrial products. For fish and fishery products, Turkey has provided better

treatment to EFTA countries compared with the EU. Trade in processed agricultural

goods follows the same system as between Turkey and the EU, i.e. the Mass

Housing Fund (MHF) levy on agricultural components of processed agricultural

goods was reduced on 1 January 1999 to achieve "target agricultural components".

On 1 April 1992, EFTA countries abolished all customs duties on imports and any

charges having equivalent effect on products from Turkey, except on textiles and

apparel goods. For textiles and apparel products, tariffs were eliminated on 1

January 1996.

In November 1995, the EU and 12 Mediterranean partners embarked on the

Euro-Mediterranean Partnership1, a political, economic, and social programme aimed

at creating "an area of shared prosperity", including a Euro-Mediterranean Free-

Trade Area by 2010. This is to be achieved through the Euro-Mediterranean

Association Agreements negotiated between the EU and its Mediterranean partners,

together with the Free Trade Agreements among the Mediterranean partners. Turkey

has concluded a bilateral Free Trade Agreement with Israel, and is in the process of

negotiating with its other non-EC Mediterranean partners to fulfil its obligations under

the Euro-Mediterranean Partnership.

The Black Sea Economic Cooperation (BSEC) aims to improve and diversify

economic and trade relations among its eleven members.2 Although the BSEC

provides for cooperation in various fields, it does not as yet provide for preferential

tariff concessions. The areas of cooperation include banking and finance, and

1 The Euro-Mediterranean Partnership was launched in Barcelona, hence it is also called the "Barcelona Process". The 12 Mediterranean Partners are: Morocco, Algeria, Tunisia, Cyprus, Egypt, Lebanon, Syria, Palestine, Jordan, Malta, Israel, and Turkey. At a later stage, it is also envisaged to include EFTA and Central and Eastern European candidates for EU enlargement as part of the Euro-Mediterranean free-trade area.

2 The BSEC Declaration was signed on 25 June 1992. The member countries are: Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldavia, Romania, the Russian Federation, Turkey, and Ukraine.

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exchange of statistical data and economic information regarding energy, transport,

telecommunications, trade and industry, agriculture and agro-industry, environmental

protection, tourism, and science and technology. In this context, the Black Sea Trade

and Development Bank became operational in 1999. On 7 February 1997, a

declaration of intent for the establishment of a BSEC free-trade area was adopted.

The declaration envisages examination of the ways and means for the progressive

establishment of such an area, taking into account each country's existing and future

links with the EU. Recently, in the Working Group on Trade, two projects were

launched: one, proposed by Turkey, is to eliminate non-tariff barriers on regional

trade and the other is to harmonize trade documents in the region.

Turkey has signed bilateral trade agreements with 14 countries in the

framework of aligning its trade regime on the EU’s in the context of the Custom

Union. Since Turkey's last TPR, bilateral agreements have entered into force with;

the Czech Republic, the Slovak Republic, Estonia, Latvia, Slovenia, Bulgaria, Poland,

the Republic of Macedonia, Croatia, and Bosnia Herzegovina. Turkey’s free-trade

agreements with Lithuania, Hungary, Estonia, Czech Republic, Slovak Republic,

Poland, Slovenia, and Latvia expired when these countries became EU members on

1 May 2004. Negotiations with Morocco, Egypt, Faroe Islands, Palestine, Lebanon,

Albania, and Tunisia are in progress, while draft texts have been forwarded to

Jordan, Malta, South Africa, Algeria, Syria, Serbia-Montenegro, and Mexico.

Global Rankings:

From our research, we found out that Turkey was ranked 65 th out of 80, on the

growth competitiveness ranking of 2003, which is exactly the same ranking as the

previous year 2002, but in 2004, Turkey’s rank slips to the 66 th place. Turkey was

also ranked 52nd out of 80 also, on the business competitiveness ranking of 2003.

We also think that we should focus on a few more data that contribute to a

better understanding of the opportunities that Turkey offer, these data are on the one

hand the Public Institutions Index in which it is ranked 63rd, and on the other hand the

Corruption Sub index where it is ranked 75th. The last data we were interested in is

the Microeconomic Competitiveness Index in which Turkey was ranked 54 th out of

80. These data taken altogether indicate that Turkey is located in the lower half of

the most efficient countries. We consider these results as being encouraging

because Turkey is not a full member of the European Union, and therefore it still has

13

some room to grow and become more and more efficient over the future years to

come. These data show that Turkey is a country full of opportunities that are just

waiting to be exploited the best way to boost the economy. We can finally compare

Turkey’s ranking to those of Canada and Finland. On the one hand, Canada was

ranked 10th in 2002, 12th in 2003, and on the other hand, Finland was ranked 2nd in

2002 and 1st in 2003. These numbers show that even though the current economic

and business is not in the worst case scenario, Turkey still has a lot of growing to do

in order to reach the higher standards set by developed countries. From the global

Information Technology Report we noticed that Turkish Network readiness rank is

50th out of 82. We also observed that Turkey ranks 88th out of 176 countries on the

human development index, where Canada ranks 4th, US ranks 8th and Norway 1st.

State of Bilateral Relations with Canada:

As a friend and ally, Turkey is an increasingly valued political, commercial,

strategic and bilateral partner for Canada. As an example, Ankara’s subway system,

which is a major business opportunity for any company specialized in the specific

field of expertise, was built by a Canadian consortium, which means that there is a

tight relationship between the two countries.

Building on each other’s strengths, Canada seeks to increase bilateral trade

and investment as well as being able to work with Turkey as a gateway to markets in

Russia, the Caucasus, and Central Asia. As an example of this cooperation, it was a

joint Turkish-Canadian venture that built the Almaty subway system in Kazakhstan.

A whirlwind November 2002 visit to Ankara by the Department of Foreign

Affairs and International Trade (DFAIT) Assistant Deputy Minister for Europe, Paul

Dubois, identified a mutually positive affinity of interests as well as a matching

institutional willingness to broaden and deepen Canadian-Turkish political,

commercial, investment, academic and social relations beyond their current modest

levels. A Double Taxation Agreement was concluded in April 2003 with the initialing

of an agreed text now subject to Parliamentary ratification. A Framework MOU was

signed during Foreign Affairs Minister Bill Graham's May 2003 visit, providing a

mechanism to enhance existing basic cooperative and friendly working relations.

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The Canadian trade mission to Turkey with 20 participants in May 2003 led by

Secretary of State Knutson and the signing of the MOU will solidify a foundation on

which to expand bilateral relations. Most symbolically, the construction of a new

modern Canadian Embassy has just begun in Ankara.

Canada and Turkey also share common membership in numerous

international organizations such as the UN, NATO, the OECD, OSCE, the Council of

Europe, and the G20.

Canadian Trade Activity with Turkey:

Turkey is important economically for Canada as it is Canada’s second largest

trading partner in Central and Eastern Europe after Russia, and also because it offers

important business potential opportunities for the sale of numerous Canadian goods

and services. Canada-Turkey trade has nearly tripled in the last decade. The annual

two-way trade in 2002 continued to grow and reached close to $700 million, about 2

to 1 in Turkey's favor. The trend in their total bilateral trade is positive and could

reach in a few years the $1 billion level. In 2002, Canadian exports to Turkey equaled

$268.71 million, a 56% increase from 2001, reflecting the improvement of Turkish

economic conditions, which is expected to continue in the medium term. Canada's

exports are primarily commodities (coal, durum wheat, newsprint, wood pulp) but also

include scrap iron, machinery parts and telephone components as foreign inputs for

the Nortel/NETAS production facilities in Istanbul.

The successful conclusion of negotiations for a Double Taxation Agreement,

the extension of the Energy MOU to 2006, the signing of a Canada-Turkey

Framework Agreement (setting out a framework for closer bilateral relations), and the

completion of the successful Canadian trade mission to Turkey in May 2003, should

spur a higher level of bilateral trade and investment.

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2. INTERNATIONAL TRADE

International Trade Values (US $ million)

 

2000 20012002

2003 2003* 2004* (%)**

Export 27 775 31 334 36 059 46 878 42 658  56 227 31,8

Import 54 503 41 399 51 554 68 734 61 105 86 824 42,1

Balance -26 728 -10 065 -15 495 -21 856 -18 448 -30 598 65,9

Ex./Imp. % 51 75,7 69,9 68,2 69,8 64,8 -7,2

Trade Volume 82 273 72 733 87 613 115 611 103 763 143 051 37,9

Source: State Institute of Statistics (DİE)* : Jan-Nov**: Change

Main exports of Turkey:

Textiles and clothing: The major export destination is to Germany, the U.S,

U.K, Italy, France, and Russian Federation. In 1998 total value of clothing exports

reached 6.6 billion dollars, giving it a 23 % share of Turkey’s total exports.

Iron & steel: This industry has become one of the major driving forces in the

development of Turkish exports. In 1998 Turkish steel industry exports reached a

level of $2.2 billion and 6.9 million tones. The steel industry has become the second

most important industry in Turkish exports. In 1998 steel products were exported to

more than 150 countries in the world. That same year, the major markets for Turkish

steel exports were Italy, USA, Algeria, Israel, Greece, Singapore, UK and Hong

Kong.

Agriculture: It represents the third biggest sector in Turkish exports. Main

products are olive, cotton, tobacco, tea, hazelnut, fruit (fig, sultana, apricot), wheat,

and barley. Turkish edible nuts and dried fruits production is considerably high and

dominates the world markets in this respect. Among edible nuts and dried fruits,

hazelnut, pistachios, sultanas, dried apricots and dried figs are of significant

importance for Turkish agricultural export. Due to this importance, they are called

traditional agricultural export products of Turkey.

16

Chemicals: Most of these export chemical products were plastic raw

materials and plastic products with an export value of $ 436 million in 1998. The

second major export products group are the soaps, detergents and other cleaning

products with an export value of $ 289.6 million. Inorganic chemicals, organic

chemicals, synthetic fibers, pharmaceutical products, paints and coatings, rubber and

rubber products, essential oils and cosmetics and fertilizers are the other exports of

the chemical subsectors.

Glass & Ceramics: The Turkish glass industry products are exported to about

100 countries in the world. The major destination countries are Germany, Italy, Egypt,

UK, France and Greece. Turkey ranks 5th in the world and 4th in Europe in the

production of ceramic tiles. Turkey ranks 5th in Europe concerning the production of

ceramic sanitary ware. Exports of the ceramic industry have been increasing steadily.

Approximately 80% of exports are directed to EU countries. The major export

countries are Germany, the United Kingdom, the USA, France and Israel.

Machinery: This particular market undertook a breakdown of countries

importing machinery made in Turkey. Still, Germany is the main customer of Turkish

made machines. Germany is followed by the United States, the United Kingdom,

Italy, France, and the Russian Federation. Algeria, Romania, Spain, the Netherlands,

Tunisia and Kazakhstan are the other important markets for Turkish machinery

exports.

Gold jewelry: Although gold jewelry is a new sector on the export scene of

Turkey, its performance is quite good and export value has increased dramatically. The

major countries for gold jewelry exports were Germany, the USA and Japan. Besides

exports, a big amount of gold jewelry is also sold to tourists visiting Turkey. In 1996,

about 50 tons had been sold to tourists.

Mining: Excluding oil and coal resources, there are about 4,400 mineral

deposits in Turkey. Copper, lead, zinc, chromites, mercury, boron, magnetite and

various industrial minerals and rocks are the main mineral resources. Currently 53

different kinds of minerals and rocks are being commercially mined in Turkey. Mineral

and ore exports of Turkey is 384 million $ in 1998 which is about 1.4% of total

exports of the country.

17

Turkey’s main exporting partners are Germany, the US, the UK, Italy, France,

Russian Federation, Holland, Spain, Israel.

Main Imports of Turkey:

Turkey’s main imports are machinery and transport equipments, chemicals,

petroleum and natural gas, paper, pharmaceutical products. Imported goods are from

industrial, mining and agricultural products.

Main imports to Turkey comes from Germany, the US, Russian Federation, Italy,

France, Japan, China.

Bilateral Trade with Canada:

In 2003 Canadian exports to Turkey was C$ 273,358,647 and Turkish exports

to Canada was C$ 466,707,839. Turkey has a trade surplus with Canada. In 1999

and 2000 there seems a trade balance but after 2001 Turkey has trade surpluses.

Bilateral trade has increased the last five years. Main Canadian exports to Turkey are

mineral, paper, agricultural, machinery products. Main Canadian imports from Turkey

are textile, mineral, base metal, glass products. Canadian direct investment in Turkey

is C$ 669 millions. Some of the CDI in Turkey are Four Seasons Hotel, SNC Lavalin

(construction company), InMet Mining (copper and zinc mine in Cayeli, Turkey),

Euromax-Resources Ltd. (oil and gas company), Eldorado Gold Corp, Nortel. There

is no Turkish FDI in Canada.

Current event with Canada is “Trade Mission & Annual Joint Conference Istanbul & Ankara May 8-12 2005”. The Canadian-Turkish Business Council (CTBC) and its Turkish partner the Turkish-Canadian Business Council of the Turkish Foreign Economic Relations Board (DEIK), are organizing a trade mission to its annual joint conference in Istanbul, May 9, 2005, and to Ankara, May 10-11, 2005. The trade mission will assist Canadian business in exploring and developing commercial opportunities in the region.

Bilateral Trade with the USA:

18

The US has always been one of the major trading partners of Turkey, ranking

second in exports and import with a share of 8 and 5 percent respectively. On the

contrary Turkey only represents 0,2% of imports and 0,4% of exports of the US. The

trade in volume between Turkey and the U.S. has been steadily increasing since the

1980's and reached 6,2 billion USD in 2002 and 6,5 billion USD in the January to

November 2003 period. This number accounted for 6.5 % of the total Turkish trade

volume of Turkey. Over time, Turkey has not only increased her exports in quantities

but also managed to diversify its trade both in terms of markets and products. In the

past, Turkish exports to the US used to consist mostly of “traditional” products such

as dried figs or raisins. In the 1990’s especially, Turkey’s exports drastically changed

because finished goods such as textile and clothing undertook an important role in

the bilateral exchange between Turkey and the US. The major export items to the US

can be listed as follows; iron and steel, pearls and precious stones, machinery and

mechanic parts, tobacco and cement. The major imports items from the US

comprised of machinery, electrical equipments, pharmaceuticals, organic chemicals,

aircraft and parts, optical and photographic instruments.

Bilateral Trade with NAFTA:

Turkey has a bilateral trade relation especially with the U.S and Canada within

the NAFTA region. It doesn’t have a significant trade relationship with Mexico. In

2003 exports from Turkey to NAFTA countries totaled US$ 3,675,000,000, in 2004

exports totaled US$ 4,848,000,000, both has 8.6% share in total exports. Imports

from NAFTA in 2003 was US$ 3,417,000,000 and in 2004 US$ 4,646,000,000, with a

5.4% share in total imports.

Capital Flows in Turkey:

Foreign Investment Figures as of the 1st half of 2003, accumulated foreign

direct investment in Turkey amounted to US$ 35.1 billion in terms of the value of

foreign capital approvals, and US$ 16 billion in terms of actual capital inflow. In terms

of accumulated foreign capital approvals up to today; the leading investors are

France, the Netherlands, Germany, USA, United Kingdom, Switzerland, Italy and 19

Japan. Among the group of countries, EU has a share of 68% in the total foreign

investment stock. The total OECD countries (including USA and EU countries)

account for 88% of the total foreign investment stock. The remaining 12% go for

Islamic countries 2%, East European countries 1% and other countries 9%. Sector

based composition of FDI inflows to Turkey displays a similar trend with that of FDI

flows in the world economy. While services represent around 50-55% of the total

stock of FDI, manufacturing sector investments account for some 35 to 40% of

annual flows. Share of agriculture and mining sector investments is close to 5% of

the total stock. Within the manufacturing industries, the leading sectors are;

automotive and transportation equipment, food, beverage and tobacco industries,

chemical and petroleum products, electrical machinery and electronics. Within

services sector, the leading sectors are; banking, trade and retail chain stores,

telecommunications, and tourism.

As of the end of 2003, 6584 foreign capital companies operate in Turkey. The

foreign partners of these companies include 108 of the 500 companies, which are

listed in the Top 500 companies list of the Fortune magazine. Some of the foreign

companies are Coca Cola, Pepsi, Shell, BP, Elf, Pfizer, Roch, Bayer, Carrefour,

Metro, HSBC Bank, Citibank, Allianz Insurance, Lafarge Cement, Bosch, Siemens,

Axa Insurance, Toyota, Fiat, Mercedes, Honda, Hyundai, Renault, Club Meds, Hilton,

Hyatt Hotels, P&G, Philip Morris and so on. The major Canadian companies present

in Turkey are ABCO Engineering & Ops Mgt Ltd, Bombardier Transportation, Nortel,

SNC-Lavallin group.

International Trade Issues and Trade Disputes:

Turkey has been involved in 12 cases under the WTO dispute settlement

mechanism, to date. Seven consultations have been requested regarding Turkey's

trade measures; three involved quantitative restrictions on imports of textile and

clothing products. Turkey has been the complainant in two cases (against Egypt and

South Africa). In the case against Egypt, concerning the definitive anti-dumping

measures on rebar from Turkey, the parties to the dispute agreed on the reasonable

period of time to implement the DSB recommendations and rulings. With respect to

South Africa, Turkey requested formal consultations on 15 April 2003 regarding the

definitive anti-dumping duty on Turkish imports of blanketing in roll form. Turkey has

20

also participated in WTO disputes as a third party, one against the United States on

"definitive safeguard measures on certain steel products"; and another against

Argentina on "definitive anti-dumping measures on imports of ceramic floor tiles from

Italy". On 2 May 2003, Turkey communicated its desire to join the consultations

requested by the United States and Australia regarding "the protection of trademarks

and geographical indications for agricultural products and foodstuffs in the EC".

Issues Regarding Bilateral Trade with the USA

Generalized System of Preferences:

The GSP of the US is instrumental in stimulating bilateral trade. Turkey’s

exports under the GSP program accounted for 14% (470 million USD) of Turkey’s

total exports in 2002. Turkey’s primary goals regarding GSP benefits are expansion

of Turkey’s GSP eligible product list and effective utilization of GSP potential. Total

exports of Turkey under the US GSP program account for 18 % of the total, which is

about 600 million USD. Turkey’s GSP benefits have been dependent on the

protection of intellectual property rights. In 1992, Turkey was included in Priority

Watch List as a result of Special 301 Review (an annual review which examines in

detail the adequacy and effectiveness of intellectual property protection in

approximately 74 countries). Since 2001, Turkey has been in the Watch List.

Intellectual Property Rights:

Turkey has made considerable and even satisfactory progress towards

updating and harmonizing its legislation with universally acclaimed principles in a

number of trade related fields in accordance with the Customs Union as well as in

compliance with its commitments under the World Trade Organization (WTO). At the

same time, for more effective protection of industrial and intellectual property rights,

Turkey has adhered to certain international treaties. On the other hand, as a result of

the investigations made by USTR, Turkey was first included in the “Watch List” in

1989, and in the “Priority Watch List” from 1992 to 2001, due to the reason that the

present state of the “Intellectual Property Rights” (IPR) in Turkey was insufficient to

protect the US exports. Since 2001 Turkey has been in the “Watch List” again.

21

Turkey in the context of its economic transformation is in the process of

revising her legislation related to IPR whereby honoring her obligations to the E.U. In

this framework, by the second half of 2004, Turkey intend to pass the legislation that

would cover the enforcement of Data Exclusivity in Turkey starting from 2008, as

stated in its national programme towards the E.U. accession.  

Anti-Dumping and Countervailing Duties:

Although Turkey’s export regime is fully compatible with its commitments on

subsidies under both the WTO and the EU, it is observed that the issue pertaining to

antidumping and countervailing duties on Turkish products still continues to occupy

the agenda of bilateral trade relations. Currently, the US has been applying anti-

dumping and countervailing duties against Turkish exports of construction rebars,

steel pipes and tubes, aspirin and non-egg dry pasta. The legal arrangements made

with respect to the protection of competition and governmental support on exports,

and also the negligible share of the mentioned commodities in the US market,

provide sufficient ground for the elimination of these duties.

Textiles Trade:

The United States is the largest importer of textiles and apparel products in the

world. The total imports in the year 2000 were 76.4 billion dollars. Yet, the share of

Turkey in this total was only 1,93 percent, or 1,5 billion dollars. The U.S. has been

applying quantitative restrictions on a large range of textiles and clothing categories

imported from Turkey under the Multi-Fiber Arrangement (MFA) since 1985, and

under the World Trade Organization Agreement on Textiles and Clothing (ATC) since

1995. Currently, 21 textiles and 18 clothing categories having a share of 85 percent

in Turkey’s total textiles and clothing exports to the U.S. are subject to quota limits,

most of the items under restriction being cotton-based products. All quantitative

restrictions will be abolished as of 2005 within the context of Agreement on Textiles

and Clothing (ATC). In accordance with the Article 7 of ATC, and also the Customs

Union provisions, Turkey has already undertaken most of its commitments in terms of

competition, market access and other fields without waiting the year 2005 and taken

significant steps for freer trade with its partners. In the context of the Turkey- EU

Custom Union, the EU member states do not impose any quantitative restrictions on

Turkish textiles and apparel exports. Also, through the Gentleman's Agreement

22

between the US and the EU, the two sides do not apply quotas on each others

exports. 

  Food and Drug Administration (FDA) Regulations:

According to the FDA standards, the tolerable limit of lead residues in raisins is

0.25 mg/kg, which is much lower than the prevailing international standards. As a

result of this limit, Turkey’s raisin exports to the U.S. have been adversely affected and

are not at the level, which otherwise would have been. On the other hand, as most of

the pesticide residues that are not allowed in the U.S. are placed in CODEX

Alimentarius and as these pesticides are widely used in the European Union countries,

Australia and South Africa, besides Turkey.

3. ASSESSMENT AND OUTLOOK FOR TRADE

Turkey’s Trade Policy:

The WTO Agreements as well as Turkey's current and future trade relations

with the European Union (EU) are the main factors influencing the Turkish trading

system. Since its last trade report, Turkey has continued to progressively align its

trade regime on that of the EU, and its domestic legislation has been amended to

reflect both its EU and WTO commitments. This, in turn, is likely to provide improved

and more secure conditions to its trading partners but also confusion in its trade

policy.

The main legislation relating to international trade is the Foreign Trade

Regulations Law (No. 2976 of 1984). The Law provides for the development and

regulation of foreign trade, including export promotion, as well as the imposition or

removal of "additional financial obligations" on foreign trade transactions.

In general, investment in Turkey is regulated by the Commercial Code.

Foreign investment, in particular, is governed by the Foreign Direct Investment Law,

and the Communiqué Concerning the Law. FDI is generally free of restrictions in

accordance with these regulations, however, some sectors are regulated through

sector-specific acts, such as for example the Banks Act, the Fishing Law, and the

Civil Aviation Law.

23

The hierarchy of legal instruments in Turkey is: the Constitution, international

agreements duly put into effect, laws, decrees having force of law, regulations,

implementing regulations, decisions of Council of Ministers, and other administrative

Acts such as circulars. International agreements, including the WTO Agreements,

duly put into effect carry the force of law in Turkey. Their provisions would apply in

the case of any inconsistencies between them and domestic law, which has to be

amended to reflect Turkey's international commitments.

Policy Objectives:The main factor in shaping Turkey’s foreign trade policy has been the

Customs Union with the EU. At the Helsinki European Council held on 10-11

December 1999, Turkey was officially recognized as a candidate State. In return,

Turkey was required to align its legislative framework with the whole EU “acquis

communautaire”.

At the national level, an export-oriented, technology-intensive production

structure, with emphasis on generating high value-added manufactured and services

products, is one of the basic objectives stipulated in Turkey's long-term strategy for

the period 2001-23, prepared by the Undersecretariat of State Planning Organization

(SPO) and approved by the Parliament on 27 June 2000. The strategy aims to

support export-oriented activities, particularly of small and medium size enterprises

(SMEs) by, inter alia, providing credit, guarantee, and insurance mechanisms through

the Turk Eximbank; further harmonizing foreign investment legislation with EU norms;

reducing bureaucratic procedures for exporters; and improving basic infrastructure.

Turkey’s trade policy also included a continuation of the industrialization policy

with, as said earlier, an emphasis on technology-intensive activities as well as a

financing of exports by providing sufficient resources through the Turk Eximbank.

Finally, contributing to the efficiency of free zones via the improvement of

infrastructure, and fostering trade relations with the Caucasian region, Central Asia,

and the Middle East is a goal that Turkey has fixed for itself to reach the higher

standards set by the other European countries. Turkey’s economic reforms could be

strengthened by continued structural adjustment, including more privatization, and by

the improvement of its multilateral commitments, both in goods and services. These

structural changes would then enhance its ability to attract foreign investment as well

24

as the predictability of its trade regime.

Turkey's long-term strategy also contains the eighth five-year development

plan for the period 2001-05. Some of the main trade-related strategies to be pursued

during this period are: enhancing the competitiveness of the economy by reducing

direct state intervention through the privatization of public enterprises; promoting

foreign direct investment by amending the legislation in line with the EU’s legal

framework and reducing the bureaucracy; making efficient use of subsidies, in

accordance with the relevant WTO rules; continuing the industrialization policy with

emphasis on technology-intensive activities; financing exports by providing sufficient

resources through the Turk Eximbank; contributing to the efficiency of free zones via

the improvement of infrastructure; and fostering trade relations with the Caucasian

region, Central Asia, and the Middle East.

Since its last trade report, Turkey has modified its domestic legislation on

intellectual property rights and telecommunications, and enacted new legislation on

customs, anti-dumping and countervailing measures, standards and technical

regulations, banking, energy, and government procurement to comply with its

obligations under the EU acquis communautaire and the WTO Agreements. Since

1998, Turkey has implemented four stabilization programs but they are yet to show

full and sustainable effects. The economic situation also remains fragile and the

country’s vast potential for attracting investment remains largely untapped, in part

because of politico-economic instability, high external indebtedness, slow progress in

the implementation of its privatization programs and restrictions on foreign direct

investment.

A resilient problem with Turkey is the tariffs which remain complex, and the

extension of the binding commitments to ensure further integration of Turkey into the

multilateral trading system.

Turkey accords at least MNE’s treatment to all its trading partners. Turkey is

not a signatory to the Plurilateral Agreements that resulted from the Uruguay Round;

it is only an observer to the Plurilateral Agreements on Government Procurement and

Trade in Civil Aircraft; and party to the Information Technology Agreement (ITA).

Turkey attaches great importance to the Doha Development Agenda (DDA). Its main

interests in the DDA are a fair, competitive, and predictable trading environment that

25

would stem from future multilateral reductions of tariffs, simplification of tariff

structures, and elimination of non-tariff barriers; future extension of the scope of

protection of geographical indications to products other than wines and spirits; and an

equitable agricultural trading environment. In line with Turkey’s Prime Minister’s line,

various technical committees and working groups have been established to follow up

issues related to the DDA and to determine the strategy to be pursued by Turkey in

multilateral negotiations. In terms of the on-going WTO negotiations on agriculture,

Turkey is of the view that further tariff reductions can be considered provided that the

developed countries substantially reduce or eliminate their export subsidies and

domestic support. Special and differential treatment should also be reflected in all

the negotiation issues. In general, Turkey is following with attention the position of

the EU in the WTO negotiations particularly on non-agricultural products, since any

further reductions by the EU would affect subsectors of the Turkish economy.

4. Upcoming Trade Events In Turkey:

There will be international specialization fairs in Turkey. Some of the most important ones in 2005 are as follows:

Fair Date PlaceIndustrial Automation March 17-21 Tuyap IstanbulJewellery March 24-27 CNR IstanbulFoteg (Food tech.) March31-April3 CNR IstanbulISAF 2005 (Security Automation) March31-April3 ANFA AnkaraCukurova 2005 (Electric/Electronic April28-May1 Tofas Birmot AdanaMachine&Automation Tech.)Construction 2005 May 4-8 Tuyap Istanbul3T 2005 (Metal Processing, Press May 5-8 Fair Port IzmirForm & Automation Tech.)Home textile May 18-22 CNR IstanbulIPAF 2005 (Plastic Packaging Tech) May 26-29 Fair Port Izmir74th Izmir Int. (general trade) Aug.26-Sept.4 IzmirCEBIT (communication and I.T) Sept.6-11 Tuyap IstanbulGift & Promotion Sept 7-11 CNR IstanbulTrakya Agriculture Sept 7-11 Corlu TekirdagFurniture&Decoration Sept 8-12 ANFA AnkaraIDEF 2005 (Defense Industry) Sept 27-30 Hipodrom AnkaraITS II 2005 (Textile&Accesory) Sept29-Oct 1 CNR IstanbulAutomotive 2005 Nov.17-20 CNR IstanbulCOMPEX 2005 (computer) Dec.1-4 Lutfi Kirdar, Istanbul

26

ANNEX:

EXPORT- Top 40 Countries

MILLION DOLLARS

 

Countries

January-November

2003 2004Change

% % %

1- Germany 6,828 16.0 7,901 14.1 15.7

2- U.K. 3,324 7.8 4,927 8.8 48.2

3- U.S.A 3,436 8.1 4,405 7.8 28.2

4- Italy 2,921 6.8 4,102 7.3 40.5

5- France 2,540 6.0 3,289 5.8 29.5

6- Spain 1,599 3.7 2,315 4.1 44.8

7- Holland 1,370 3.2 1,888 3.4 37.8

8- Russia 1,241 2.9 1,685 3.0 35.7

9- Iraq 671 1.6 1,607 2.9 139.6

10- Israel 986 2.3 1,151 2.0 16.7

11- Romania 782 1.8 1,088 1.9 39.1

12- Greece 830 1.9 1,013 1.8 22.1

13- Belguim 793 1.9 1,041 1.9 31.3

14- U.A.E. 614 1.4 1,022 1.8 66.4

15- Bulgaria 554 1.3 795 1.4 43.5

16- Iran 450 1.1 697 1.2 54.8

17- Algeria 515 1.2 698 1.2 35.6

18- Saudi Arabia 681 1.6 676 1.2 -0.7

19- Poland 446 1.0 636 1.1 42.6

27

20- Denmark 408 1.0 561 1.0 37.3

21- Sweeden 413 1.0 488 0.9 18.1

22- Ukraine 388 0.9 509 0.9 31.4

23- Austria 433 1.0 498 0.9 15.1

24- Eqypt 311 0.7 424 0.8 36.6

25- Switzerland 319 0.7 403 0.7 26.3

26- K.K.T.C. 285 0.7 408 0.7 42.9

27- Syria 371 0.9 348 0.6 -6.4

28- Azerbaijan 284 0.7 361 0.6 27.1

29- Portugal 274 0.6 360 0.6 31.6

30- Ireland 242 0.6 352 0.6 45.4

31- Canada 202 0.5 311 0.6 53.8

32- Hungary 259 0.6 315 0.6 21.8

33- China 447 1.0 355 0.6 -20.7

34- Kazakhstan 212 0.5 320 0.6 51.2

35- Morocco 165 0.4 291 0.5 76.4

36- Tunusia 201 0.5 222 0.4 10.2

37- Lebanon 135 0.3 217 0.4 59.9

38- Japan 132 0.3 174 0.3 31.8

39- Yemen 145 0.3 159 0.3 9.4

40- Slovenia 86 0.2 156 0.3 81.2

  List total 36,292 85.1 48,167 85.7 32.7

  Total 42,658 100.0 56,227 100.0 31.8

IMPORTS- Top 40 Countries

MILLION DOLLARS

COUNTRIES

JANUARY-NOVEMBER

2003share 

2004share  CHANGE

% % %

1- Germany 8,120 14.5 11,167 14.3 37.5

2- Russia 4,793 8.6 7,751 9.9 61.7

3- Italy 4,805 8.6 6,157 7.9 28.1

4- France 3,601 6.4 5,697 7.3 58.2

5- U.S.A 3,127 5.6 4,209 5.4 34.6

6- China 2,236 4.0 3,936 5.0 76

7- U.K. 3,143 5.6 3,885 5.0 23.6

8- Switzerland 2,721 4.9 3,040 3.9 11.7

9- Spain 1,719 3.1 2,913 3.7 69.4

28

10- Japan 1,662 3.0 2,384 3.1 43.4

11- S. Korea 1,132 2.0 2,291 2.9 102.4

12- Ukraine 1,172 2.1 2,194 2.8 87.3

13- Iran 1,702 3.0 1,820 2.3 6.9

14- Belgium 1,297 2.3 1,803 2.3 39.0

15- Holland 1,451 2.6 1,723 2.2 18.7

16- Libya 1,007 1.8 1,381 1.8 37.2

17- Romania 849 1.5 1,504 1.9 77.0

18- Algeria 986 1.8 1,086 1.4 10.2

19- Saudi Arabia 893 1.6 1,084 1.4 21.5

20- Taiwan 646 1.2 1,066 1.4 65.0

21- Sweden 719 1.3 1,003 1.3 39.4

22- Austria 726 1.3 981 1.3 35.2

23- India 635 1.1 939 1.2 47.9

24- Poland 365 0.7 878 1.1 140.2

25- S.Africa 299 0.5 871 1.1 191.6

26- Bulgaria 624 1.1 829 1.1 33.0

27- Finland 422 0.8 625 0.8 48.2

28- Ireland 447 0.8 633 0.8 41.6

29- Israel 415 0.7 641 0.8 54.4

30- Hungary 375 0.7 608 0.8 62.1

31- Brasil 354 0.6 529 0.7 49.4

32- Greece 374 0.7 509 0.7 36.0

33- Malezia 350 0.6 570 0.7 62.8

34- Endonesia 400 0.7 563 0.7 41.0

35- Chezch R. 385 0.7 577 0.7 50.0

36- Iraq 110 0.2 430 0.6 292.4

37- Thailand 252 0.5 446 0.6 76.5

38- Kazakhstan 246 0.4 364 0.5 48.1

39- Syria 352 0.6 324 0.4 -8.0

40- Denmark 302 0.5 301 0.4 -0.3

  List Total 55,214 98.8 79,712 102.0 44.4

  Total 55,860 100.0 78,159 100.0 39.9

29

30

Bibliography:

1. www.foriegntrade.gov.tr (undersecretariat of foreign trade)2. www.hazine.gov.tr (treasury)

3. www.igeme.org.tr (export development institute)

4. www.cia.gov/cia/publications/factbook

5. www.economist.com/countries

6. www.worldbank.org.tr/WBSITE/XXTERNAL/COUNTRIES

7. www.die.gov.tr (state statistics institute)

8. www.dfait-maeci.gc.ca/canadaeuropa/country_tur_c-en.asp

9. www.wto.org/english/tratop_e/tpr_e/s125-2_e.doc

10.www.wto.org/english/tratop_e/tpr_e/tp225-e/htm

11.www.imf.org (dissemination standards bulletin board)

12.www.ctbc.ca (Canadian-Turkish business council)

13.http://dsp-psd.pwgsc.gc.ca/collection/E12-9-19-13E.pdf (Turkey-Canada Bilateral trade)

14.www.un.org (human development index)

15.www.weforum.org (competitiveness index)

16.www.eia.doe.gov/emeu/cabs/turkey.html

17.www.dpt.gov.tr (state planning institute)

18.http://www.ctbc.ca/cgi-bin/membership.pl?language=en

19.http://www.foreigntrade.gov.tr/English/Director/turkihr/TREXP.htm

31

20.http://www.weforum.org/pdf/Gcr/GCR_2003_2004/ Competitiveness_Rankings.pdf#search='turkey%20competitiveness%202004%20ranking

21.http://www.abn-azimbusinessnetwork.com/itm00002.htm

22.http://www.indexmundi.com/turkey/disputes_international.html

23.http://www.turkishpress.com/news.asp?id=20222

24.http://www.fdimagazine.com/news/fullstory.php/aid/1046/Turkey.html

25. www.sanayi.gov.tr (ministry of industry)

26. www.oecd.org

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