Post on 27-Dec-2015
London, 16.10.2007
KAAN TOKATTÜRKİYE İŞ BANKASI LONDON
London, 16 October 2007
London, 16.10.2007
FACTS ABOUT TURKEYStable economic growth (and hence, growing imports
and exports)
Growing population, nearly 73 millionImproving quality of lifeMore stable political environmentSecular stateConvergence with the EU
London, 16.10.2007
London, 16.10.2007
LARGEST EU COUNTRIES vs.TURKEY
London, 16.10.2007
Population (≈mio)
Trade Balance (≈bn.$) (n.b. goods only, last 12
months)
GDP per capita ppp ($)
Germany
82 +228 31,095
France 64 -40 30,693
UK 60 -159 35,051
Italy 59 -16 30,732
Spain 45 -124 27,522
Poland 38 - 9 14,880
Total EU
493 +29 28,213
Turkey 73 -56 9,107
London, 16.10.2007
TURKEY’S RELATIONSHIP WITH THE EU AND THE IMPACT OF CUSTOMS UNIONAssociate member of the EEC since 1963Full membership application 1987Customs Union between EU and Turkey
effective as of 1996 (no customs restriction on industrial goods)
Became a candidate country officially in December 1999 at Helsinki Summit
Accession talks began in November 2005
London, 16.10.2007
London, 16.10.2007
THE IMPACT of THE CUSTOMS UNION
London, 16.10.2007
Weight of EU (%) – exports from Turkey
Weight of EU (%) – imports to Turkey
1980 44.7 29.8
1985 40.3 34.3
1993 47.5 37.2
1995 51.2 47.2
1996 49.7 53.0
1997 46.6 51.2
1998 50.0 52.4
2000 52.2 48.7
2003 51.8 45.7
London, 16.10.2007
BILATERAL TRADE BETWEEN TURKEY AND THE UK (mio.USD)
London, 16.10.2007
London, 16.10.2007
MAIN TRADE PARTNERS OF THE UKEXPORTS 1 H 07
(bn.£)SHARE
(%)
1.USA 15,495 14.6
2.GERMANY 11,839 11.2
3. FRANCE 9,000 8.5
4. IRELAND 8,378 7.9
5.NETHERLANDS
6,980 6.6
.
19.TURKEY 1,165 1.1
IMPORTS 1 H 07 (bn. £)
SHARE (%)
1.GERMANY 22,038 14.7
2.USA 13,330 8.9
3.NETHERLANDS
10,706 7.2
4.FRANCE 10,678 7.1
5. CHINA 8,525 5.7
.
17. TURKEY 2,290 1.5
London, 16.10.2007
London, 16.10.2007
UK EXPORTS TO TURKEY- FIRST 10 ITEMS1H 2007 Value(mio.
£)Share in total UK exports%
1. Medicaments of mxd/unmixed prods for therap/prophltc uses, in dosage
152 2.5
2.Ferrous waste and scrap; remelting scrap ingots or iron or steel
127 18.2
3.Parts & access of the motor vehicles 109 5.6
4.Motor vehicles designed for transportation incl car
53 0.8
5.Compression-ignition int combu piston eng (diesel or semi-diesel engine
46 8.3
6.Self-propelld bulldozer/angledozer/ grader/excavator/shovel loader
40 4.3
7.Turbo-jets, turbo-propellers and other gas turbines
23 0.6
8. Undenat ethyl alcohol;spirits liqueurs&o spir bev
14 1.1
9. Yachts & other vessels for pleasure or sports; rowing boats and cano
14 4.6
10.Polymers of propylene or of other olefins, in primary forms
11 9.7London, 16.10.2007
London, 16.10.2007
PAYMENT METHODS FOR IMPORTS FROM THE UK (mio. $)
London, 16.10.2007
Y 2004 % Y 2005 % Y 2006 %
Letters of credit 286 6.6 313 6.7 638 12.4
Cash against documents
532 12.3 633 13.5 550 10.7
Cash against goods
784 18.2 808 17.2 738 14.4
Advance Payment 2,366 54.8 2,692 57.4 2,992 58.3
Other (unknown etc.)
349 8.1 244 5.2 216 4.2
Total 4,317 4,690 5,134
London, 16.10.2007
WEIGHT OF GBP IN TURKISH FOREIGN TRADE (figures in $)
Y 2005 Y 2006 Y 2007 (8 MONTHS)
TOTAL EXPORTS FROM TURKEY
73,476,408
85,534,676 67,122,965
Funds received in GBP 4,105,918
4,367,914 3,370,271
Exports to the UK 5,892,330
6,811,868 5,308,450
GBP receipts from UK importers
69.7% 64.1% 63.5%
TOTAL IMPORTS TO TURKEY
116,774,151
139,576,174
107,589,019
Funds paid in GBP 1,460,709
1,426,947 967,871
Imports from the UK 4,663,058
5,081,887 3,491,097
GBP payments to UK exporters
31.3% 28.1% 27.7%
London, 16.10.2007
London, 16.10.2007
BRITISH EXPORTERS’ CURRENT SITUATION Get paid in GBP only in less than a third of
sales Exchange rate risk (mainly against EUR and
USD)Strong GBP making British products less
competitiveRelatively stronger TRY Reliance on “advance payments”
London, 16.10.2007
London, 16.10.2007
THE PREFERENTIAL TREATMENT OF TRADE BETWEEN TURKEY AND THE EU(AND THE UK)Industrial products qualify for preferential
treatment as a result of the Customs Unionwhen originated in EU/Turkeywhen in free circulation in EU/TurkeyATR (a status certificate)- used in industrialised
products Agricultural products : traditional preferential
arrangementsEUR1 document
Coal/steel: traditional preferential arrangementsEUR1 document
London, 16.10.2007
London, 16.10.2007
GENERAL ENVIRONMENT in TURKEY
Fairly liberal regulationsCustoms Union with the EU since 1997Payments can be made in any currency as
agreedTRY a convertible currency on its own rightAutomated customs offices Used motor vehicles incl. cars , yachts are
disallowed
London, 16.10.2007
London, 16.10.2007
OBJECTIVES OF IMPORT POLICY OF TURKEYIn general, to expedite the economic development,To foster manufacturing structures that are
export-oriented, technology-intensive, high added valued that comply with international standards,
To help in improving the competitiveness of the local producers in agricultural and industrial sectors which will in turn increase their production by achieving cost advantages in import of raw materials,
To protect both the end-consumer and the producer who may otherwise be adversely affected by unfair competition practices that can take place during importing
London, 16.10.2007
London, 16.10.2007
HOW TO BECOME AN IMPORTER IN TURKEY Any real or legal person with a tax ID can be
an importer with the below exceptions where no tax ID is requiredBook importersImporters of merchandise to be displayed at
fairs and exhibitions
London, 16.10.2007
London, 16.10.2007
IMPORT REGIMEFor definitive imports to Turkey
Two pro-forma invoices (one to be original)Customs Statement from the relevant Customs
OfficeReceipt of the duties payable
For temporary imports stemming from leasingthe lease agreement
For used goodsEvaluation report prepared by the relevant
Chamber of Commerce or University verifying the economic life of the underlying
London, 16.10.2007
London, 16.10.2007
PROS OF DOING BUSINESS WITH TURKEYProfessional business partnersRelatively good transportation opportunitiesIncreasing purchasing powerGrowing and vibrant economyDynamism of the populationStrong export potential boosting importsLiberal foreign exchange regime since 1980sAutomated customs officesCustoms Union with the EU
London, 16.10.2007
London, 16.10.2007
POSSIBLE AREAS of INTERESTRetail: supermarkets, off-licences, upmarket
brandsLeisure: Golf courses, restaurants, dep’t
stores, zoos, amusement & theme parks, leisure boats-equipment)
FMCG: soft drinks, snacks,Other: electrical equipment British re-locating to Turkey will play a role
London, 16.10.2007
London, 16.10.2007
WHAT CAN HAVE A POSITIVE IMPACTCompetitive pricing
Good quality
Better payment terms
London, 16.10.2007
London, 16.10.2007
FDIs to TURKEYMio USD 2002 2003 2004 2005 2006 ∑ 02-06
Netherlands
72 50 568 381 5,171 6,242
Belgium 5 54 25 1,088 3,456 4,628
UAE 1 0 0 1,625 1,548 3,174
Greece 0 24 38 11 2,787 2,860
France 22 120 34 2,107 444 2,727
Russia 0 0 0 1,605 7 1,612
UK 8 141 126 165 883 1,323
Total 622 745 1,291 8,534 17,817 29,009
London, 16.10.2007
London, 16.10.2007
YACHT IMPORTSHigh duties and taxes (8% special
consumption tax, 18% vat , high annual motor vehicle tax)
To avoid these costs, people prefer to fly foreign flags
Used yachts disallowed (like cars)
London, 16.10.2007