Cemil CAKAR - HTA for TURKEY. Total Trade of Thailand with the World Total Trade of Thailand with...

An Overview of Trade Between Thailand and Turkey

Cemil CAKAR - HTA for TURKEY

Total Trade of Thailand with the

World

Total Trade of Thailand with

TurkeyTotal Trade Ratio of

Turkey to World Incremental

Change of Ratios

2012* 475,275,781,704 $ 1,343,517,759 $ 0.28% -11.36%

2011 451,358,899,284 $ 1,439,472,153 $ 0.32% -4.02%

2010 376,225,260,796 $ 1,250,121,114 $ 0.33% 15.54%

2009 286,130,273,739 $ 822,853,942 $ 0.29% -22.43%

2008 356,998,463,434 $ 1,323,591,933 $ 0.37%

* As of 2012, the trade volume with Turkey constitutes 0.28% of Thailand's total trade volume. This ratio has decreased by 11.36% over the previous year whereas the last five-year average of Turkey’s share within Thailand's total foreign trade volume remained at a level as low as 0.31%

*2012 Values are the estimated values with regard to the 9 month long actual data

SOURCE: Information and Communication Technology Center with the Cooperation of the Customs Department of Thailand

Total Exports to Turkey

Total Global Export Amount

The Ratio of Thailand's Exports

to Turkey to Global Exports

Incremental Change of Ratios

2012* 1,089,636,039 $ 229,782,909,984 $ 0.47 -16.07%

2011 1,249,866,919 $ 222,579,162,067 $ 0.56 7.69%

2010 999,446,959 $ 193,298,141,941 $ 0.52 15.56%

2009 690,627,890 $ 152,426,533,186 $ 0.45 -28.57%

2008 1,121,068,893 $ 177,775,202,223 $ 0.63

* As of the year 2012, exports to Turkey has a ratio of 0.47% in Thailand's total exports, this share has decreased by -16.07% over the previous year



Description of Products Export Amount to Turkey

Share in the Total Exports

to Turkey

Nuclear reactors, boilers, machinery and mechanical appliances ; parts thereof 154,149,056 $ 18.9%

Plastics and articles thereof 138,170,129 $ 16.9%

Vehicles other than raliway or tramway rolling-stock, and parts and accessories thereof 131,524,363 $ 16.1%

Rubber and articles thereof 123,398,668 $ 15.1%

Man - made staple fibres 69,968,925 $ 8.6%

Ships, boats and floating structures 23,062,075 $ 2.8%

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles

21,979,011 $ 2.7%

Man - made filaments 20,012,104 $ 2.4%

Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof ; imitation jewellery ; coin

17,449,701 $ 2.1%

Organic chemicals 16,134,545 $ 2.0%SOURCE: Information and Communication Technology Center with the Cooperation of the Customs Department of Thailand

* 75.6% of Turkey's exports to Thailand are composed of the first five items of goods consisting machinery and equipment, plastics, vehicle spare parts and accessories, rubbers and synthetic fibers


Total Import Amount from

Turkey

Total Global Import Amount

The Ratio of Thailand's

Imports from Turkey to Global

Imports

Incremental Change of Ratios

2012* 253,881,720 $ 245,492,871,708 $ 0.10% 25%

2011 189,605,234 $ 228,779,737,216 $ 0.08% -42.86%

2010 250,674,155 $ 182,927,118,855 $ 0.14% 40%

2009 132,226,052 $ 133,703,740,553 $ 0.10% -9.09%

2008 202,523,040 $ 179,223,261,212 $ 0.11%

* As of 2012, total imports of Thailand from Turkey has a share of 0.10% within its total import volume. This rate has increased by 25% over the past year




Description of ProductsImport Amount From

Turkey

Share in the Total Imports

from Turkey

Wheat or meslin flour. 18,045,573 $ 9.5%

Tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon.

15,100,110 $ 7.9%

Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal.

12,148,732 $ 6.4%

Ferro-alloys. 8,760,185 $ 4.6%

Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not

7,513,597 $ 3.9%

Tubes, pipes and hoses, of vulcanised rubber other than hard rubber, with or without their fittings (e.g. : joints, elbows, flanges etc.). 7,340,546 $ 3.9%

Electrical transformers, static converters (e.g. : rectifiers etc.) and inductors. 6,235,360 $ 3.3%

Parts suitable for use solely or principally with the engines of heading no. 84.07 (spark-ignition reciprocating or rotary internal combustion piston engines) or 84.08 (compression-ignition internal combustion pistion engines (diesel or semi-diesel engin

5,858,258 $ 3.1%

Parts and accessories of the motor vehicles of heading no. 87.01 to 87.05 (tractors, motor vehicles for the transport of ten or more persons (including the driver), motor cars and other motor vehicles principally designed for the transport of persons, i

5,695,533 $ 3.0%

Tractors, other than tractors of heading no. 87.09 (tractors of the type used on railway station platforms) 5,685,467 $ 3.0%


* Thailand's imports from Turkey are not solely condensed by certain goods and projects small amounts of variation. imports by 9.5 percent, Among these goods, the highest share belongs to flour imports by 9.5%, followed by nylon yarns for tire cord fabrics with a share of 7.9%. With a share of 6.4%, gold and silver jewelry and jewelry parts can be given as the third most imported good


Total Trade Volume Between Turkey and

Thailand

Total Trade Balance

Ratio of the Total Trade

Balance in the Total Trade

Volume

Yearly Incremental

Change in Total Trade Balance

2012* 1,343,517,759 $ 835,754,319 $ 62.21% -21.17%

2011 1,439,472,153 $ 1,060,261,685 $ 73.66% 41.60%

2010 1,250,121,114 $ 748,772,804 $ 59.90% 34.09%

2009 822,853,942 $ 558,401,837 $ 67.86% -39.21%

2008 1,323,591,933 $ 918,545,852 $ 69.40%

* In general, bilateral trade between Thailand and Turkey is always a surplus in favor of Thailand. As of 2012, the amount of surplus has been more than 76% and it has decreased by 9.58% over the last one year




2008 2009 2010 2011 2012* 2008 2009 2010 2011 2012*

Total Trade Volume Between Turkey and Thailand

1323591933 822853942 1250121114 1439472153 1343517759

Total Trade Balance

918545852 558401837 748772804 1060261685 835754319

Ratio of the Total Trade Balance in Total Trade Volume

0.6221 0.7366 0.599 0.6786 0.694

100,000,000

500,000,000

900,000,000

1,300,000,000

5%

25%

45%

65%

85%2008

2009

20102011 2012*

2008

20092010

20112012*

Total Trade Volume Between Turkey and Thailand Total Trade Balance

Ratio of the Total Trade Balance in Total Trade Volume

Years

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Turkish Market

Strategy for Turkey

Products and Services With High Potential

Channels That Could Expend the Bilateral Business Volume

New Cities And Regions Where Commercial Activities Could Be Developed

Activities and Institutions Fostering Commercial Relations

Mutual Resources of Raw Materials

Legal Barriers

Overseas Business Expansion To Gain New Market Access

Things That Can Be Done With Regard To The Prospective Country Images And Current Awareness Important Sectors And The Business Potentials Offered By These Sectors


PRODUCTS AND SERVICES WITH HIGH POTENTIAL FOR INCREASING BILATERAL TRADE

For the Exports from Turkey to Thailand:

Flour and Flour Products,Amylum Defense Industry Products, Armored Vehicles Electrical transformers,machines and cables. Mines and Marbles Automotive supply products,spare parts and equipments Construction Materials (Humidity Resistant Products, Insulation Materials) Ship Building and Maintenance Services ,Yachts Food Products (Dried Fruits such as nuts, Olive and Flower Oils, Chicken Legs etc.) Machines for Food Processing,Textile, Metal processing, Agriculture High Quality Home Textile Products Silver and Gold Jewelry, Jewelry Materials Iron & Metal products Agricultural Vehicles and Tractors Industrial Type Coolers and cooling systems

Cemil

CAKAR - HTA for TURKEY

For the Exports from Thailand to Turkey:

Chemical and Plastic Raw Materials Natural Rubber Products and Services Concerning Spa & Wellness Floristry and Horticultural Products Textile Raw Materials, Synthetic Fibers Shoes Electrical Goods Office Machines Air Conditioners Computers Commercial Vehicles and Pick-ups


CHANNELS THAT COULD EXPAND THE BILATERAL BUSINESS VOLUME

Organization of Joint Economic Committee meetings on a regular basis Scheduling top level visits by the Presidents and Primer Ministers of both countries Increasing the beneficiary banking relations between both countries or opening

branches/representative offices Attracting major Thai business groups for investing in Turkey Launching sectorial initiatives Arranging fair visits on a sectorial basis and under the coordination of relevant sectorial

organizations with regard to the sectorial fair schedules of both countries, and establishing a business-to-business meeting environment.

Promoting the investment opportunities in Thailand to the leading Turkish business groups which are wishing to penetrate the Thailand market, and establishing contact with the Thailand BOI

Cooperation of SMEs and supporting the cooperation between OSMEP and KOSGEP in addition to organizing fair visits as well as business meetings


NEW CITIES AND REGIONS WHERE COMMERCIAL ACTIVITIES COULD BE DEVELOPED

Mediterranean region, especially Antalya province, for horticultural and greenhouse cultivation

City of Gazi Antep and close areas for rubber and footwear products


ACTIVITIES AND INSTITUTIONS THAT COULD HELP FOSTER COMMERCIAL RELATIONS AND THE THINGS THAT CAN BE DONE

Turkish – Thai Business Councils Turkish Exporters Assembly DITP Thai and Turkish Contractors Association Education and health tourism business councils operating within the body of DEIK Supporting the production of documentary type programs promoting both countries, and

having them shown on national TV channels and on print media. Developing social relations between both countries by supporting mutual cultural and

artistic activities Supporting the business activities of SMEs through the cooperation of OSMEP and

KOSGEB Signing a Free-Trade Agreement


MUTUAL RESOURCES OF RAW MATERIALS

THAILAND

Rubber Plastics and Chemicals

TURKEY

Wheat Flour Iron and Steel Zinc Boron and its derivatives Cotton Marble


LEGAL BARRIERS

Efforts should be made in order to eliminate the anti-dumping codes applied to some

products by holding meetings between the relative sectorial representatives as well as the official authorities


OVERSEAS BUSINESS EXPANSION TO GAIN NEW MARKET ACCESS THROUGH BOTH COUNTRIES

ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Vietnam) + 3 more countries (China, Japan and Korea) could be gained through Thailand

Russia, Ukraine, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Georgia, Iran, Iraq, Syria, Eastern European and African countries could be gained through Turkey


THINGS THAT CAN BE DONE WITH REGARD TO THE PROSPECTIVE COUNTRY IMAGES AND CURRENT AWARENESS

Awareness of one another should be increased. One of the most crucial reasons for the sparse degree of business relations between both countries is the significantly low level of economic and social awareness of one another

Sectorial participation through devising country wise sections in fairs Thailand is mostly know as a touristic destination, hence other economical and

social characteristics of Thailand should be emphasized on in Turkey, in addition to supporting any promotional related activities for creating more recognition

Mutual business trips Conferences Sports activities Artistic organizations, student exchange programs, informative documentaries and

film festivals etc.


IMPORTANT SECTORS AND THE BUSINESS POTENTIALS OFFERED BY THESE SECTORS

Defense Industry Rubber and Plastic Sectors Food Industry Design Furniture and Decoration Materials Automotive Supply Industry Electrical & Electronic Equipment Machinery and Equipment Metal Industry

Things that should be done in order to develop new businesses are arranging business delegation trips, sectorial business forums, B-2-B meetings, fair visits and country wise participations as well as organizing SME meetings


GENERAL RECOMMENDATIONS

It is of great importance that the Free Trade Agreement (FTA) negotiations should begin between Thailand and Turkey as soon as possible. The first 5 products, which constitute 75.6% of the exports from Thailand to Turkey are Machines and Equipment, Plastic and Rubber raw materials, Commercial Vehicles, Electrical Equipment and Synthetic Fibers. S. Korea has already signed the FTA with Turkey and the regulation is expected to inure in 2013. Moreover, FTA negotiations are currently ongoing with Indonesia and Malaysia. In light of these activities, all of the countries stated above will gain significant level of advantages in exports to Turkey. These countries will be able to sell their products without having duty taxes. This matter can be accounted as one of the most crucial risks approaching in the near future since it will decrease the export volume of Thailand origin goods to Turkey

Increasing awareness among both of the countries with respect to the other country Cooperation between the sectorial representative organizations should be improved Top level official visits should be arranged


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