Final Report of Turkey Trade and Commerce.2003

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    A

    GLOBAL / COUNTRY STUDY AND REPORTON

    General Overview of Trade and Commerce of TurkeySubmitted to

    L.J.INSTITUTION OF MANAGEMENT STUDIES

    IN PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE AWARD FOR THE DEGREE OF

    MASTER OF BUSINESS ASMINISTRATIONIn

    Gujarat Technological University

    Under the guidance of faculty guidePRIYANKA SHAH

    P f

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    Students Declaration

    We, Patel Mrugesh, Balla Arun, Mehta Chintan, Ram Ranjan, Jandhlani Neeta, Panchal Gopal

    hereby declare that the report for Global/ Country Study Report entitled GENERAL OVERVIEW

    OF TRADE AND COMMERCE in Turkey is a result of our own work and our indebtedness to other

    work publications, references, if any, have been duly acknowledged.

    Place: Ahmedabad

    SignatureDate:

    Patel Mrugesh

    Balla Arun

    Mehta Chintan

    Ram Ranjan

    Jandhlani Neeta

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    TABLE OF CONTENTS

    SR NO. PARTICULARS PAGE NO.

    1. CH.1 Brief introduction of Turkey 32. CH.2 History ofTurkey 4

    3. CH.3 Introduction of Turkey Market 6

    4. CH.4 General Overview of Trade and Commerce Of Turkey 7

    5. CH.5 Trading Policies in Turkey 8

    6. CH.6 Channels of Distribution of Turkey 9

    7. CH.7 Trade statistics of Turkey 11

    8. CH.8 Bibliography 20

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    CH 1. BRIEF INTRODUCTION OF TURKEY

    Turkey known officially as the Republic of Tureky, it is a Eurasian country locatedin Western Asia and in East Thrace in South-eastern.

    Turkey is one of the six independent Turkic states. The country's official language is Turkish,which is spoken by approximately 85% of the population as mother tongue.

    Turkey today still holds a very strategic position on the world map.

    This vast land of 67.8 million people has tackled the challenges of the future through its journeyalong the road towards modernisation and democracy.

    Today, it has a vibrant society, a dynamic economy, an active political lire and great confidence in

    its future.

    Ankara is the capital of Turkey and the countrys second largest city after Istanbul.

    Turkey is a paradise of sun, sea, mountains, and lakes offering the holiday maker a completechange from the anxieties and routine of everyday life.

    From April to October, most parts of Turkey have an ideal climate, providing perfect conditions in

    which a visitor can relax on sandy beaches or enjoy the peace of mountains and lakes.

    Turkey has a magnificent past and is a land full of historic treasures covering 13 successive

    i ili ti

    http://en.wikipedia.org/wiki/Eurasiahttp://en.wikipedia.org/wiki/Western_Asiahttp://en.wikipedia.org/wiki/East_Thracehttp://en.wikipedia.org/wiki/List_of_Turkic_states_and_empireshttp://en.wikipedia.org/wiki/Eurasiahttp://en.wikipedia.org/wiki/Western_Asiahttp://en.wikipedia.org/wiki/East_Thracehttp://en.wikipedia.org/wiki/List_of_Turkic_states_and_empires
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    CH.2 History of Turkey

    The occupation of Constantinople and Smyrna by the Allies in the aftermath of World War I

    prompted the establishment of the Turkish national movement. Under the leadership ofMustafa KemalPasha, a military commander who had distinguished himself during theBattle of Gallipoli, the Turkish War of Independence was waged with the aim of revoking theterms of the Treaty of Svres.

    By 18 September 1922, the occupying armies were expelled, and the new Turkish state wasestablished. On 1 November, the newly founded parliament formally abolishedthe Sultanate, thus ending 623 years of Ottoman rule. The Treaty of Lausanne of 24 July

    1923, led to the international recognition of the sovereignty of the newly formed "Republic ofTurkey" as the successor state of the Ottoman Empire, and the republic was officiallyproclaimed on 29 October 1923, in the new capital ofAnkara. The Lausanne treatystipulated a population exchange between Greece and Turkey, whereby 1.1 million Greeksleft Turkey for Greece in exchange for 380,000 Muslims transferred from Greece to Turkey.

    Mustafa Kemal became the republic's first President and subsequently introduced manyradical reforms with the aim of founding a new secular republic from the remnants of its

    Ottoman past.[13] With the Surname Law of 1934, the Turkish Parliament bestowed uponMustafa Kemal the honorific surname "Atatrk".

    Turkey remained neutral during most ofWorld War II, but entered the war on the side oftheAllies on 23 February 1945, as a ceremonial gesture; and on 26 June 1945, becamea charter memberof the United Nations. Difficulties faced by Greece after the war in quellinga communist rebellion, along with demands by the Soviet Union for military bases inthe Turkish Straits, prompted the United States to declare the Truman Doctrine in 1947. The

    f G

    http://en.wikipedia.org/wiki/Occupation_of_Constantinoplehttp://en.wikipedia.org/wiki/Occupation_of_Smyrnahttp://en.wikipedia.org/wiki/Establishment_of_the_Turkish_national_movementhttp://en.wikipedia.org/wiki/Mustafa_Kemal_Atat%C3%BCrkhttp://en.wikipedia.org/wiki/Pashahttp://en.wikipedia.org/wiki/Battle_of_Gallipolihttp://en.wikipedia.org/wiki/Turkish_War_of_Independencehttp://en.wikipedia.org/wiki/Grand_National_Assembly_of_Turkeyhttp://en.wikipedia.org/wiki/Sultanhttp://en.wikipedia.org/wiki/Treaty_of_Lausannehttp://en.wikipedia.org/wiki/Successor_statehttp://en.wikipedia.org/wiki/Ankarahttp://en.wikipedia.org/wiki/Population_exchange_between_Greece_and_Turkeyhttp://en.wikipedia.org/wiki/President_of_Turkeyhttp://en.wikipedia.org/wiki/Turkey#cite_note-Ottoman_Turkey-12http://en.wikipedia.org/wiki/Surname_Law_(Turkey)http://en.wikipedia.org/wiki/Turkish_Parliamenthttp://en.wikipedia.org/wiki/Second_Cairo_Conferencehttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Allies_of_World_War_IIhttp://en.wikipedia.org/wiki/United_Nations_Charterhttp://en.wikipedia.org/wiki/Greek_Civil_Warhttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Turkish_Straitshttp://en.wikipedia.org/wiki/Truman_Doctrinehttp://en.wikipedia.org/wiki/Occupation_of_Constantinoplehttp://en.wikipedia.org/wiki/Occupation_of_Smyrnahttp://en.wikipedia.org/wiki/Establishment_of_the_Turkish_national_movementhttp://en.wikipedia.org/wiki/Mustafa_Kemal_Atat%C3%BCrkhttp://en.wikipedia.org/wiki/Pashahttp://en.wikipedia.org/wiki/Battle_of_Gallipolihttp://en.wikipedia.org/wiki/Turkish_War_of_Independencehttp://en.wikipedia.org/wiki/Grand_National_Assembly_of_Turkeyhttp://en.wikipedia.org/wiki/Sultanhttp://en.wikipedia.org/wiki/Treaty_of_Lausannehttp://en.wikipedia.org/wiki/Successor_statehttp://en.wikipedia.org/wiki/Ankarahttp://en.wikipedia.org/wiki/Population_exchange_between_Greece_and_Turkeyhttp://en.wikipedia.org/wiki/President_of_Turkeyhttp://en.wikipedia.org/wiki/Turkey#cite_note-Ottoman_Turkey-12http://en.wikipedia.org/wiki/Surname_Law_(Turkey)http://en.wikipedia.org/wiki/Turkish_Parliamenthttp://en.wikipedia.org/wiki/Second_Cairo_Conferencehttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Allies_of_World_War_IIhttp://en.wikipedia.org/wiki/United_Nations_Charterhttp://en.wikipedia.org/wiki/Greek_Civil_Warhttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Turkish_Straitshttp://en.wikipedia.org/wiki/Truman_Doctrine
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    The President of the Republic is the head of state and has a largely ceremonial role. Thepresident is elected for a five-year term by direct elections.Abdullah Gl was elected aspresident on 28 August 2007, by a popular parliament round of votes, succeeding AhmetNecdet Sezer.

    Executive poweris exercised by the Prime Ministerand the Council of Ministers which make

    up the government, while the legislative power is vested in the unicameral parliament,the Grand National Assembly of Turkey. Thejudiciary is independent of the executive andthe legislature, and the Constitutional Court is charged with ruling on the conformity of lawsand decrees with the constitution. The Council of State is the tribunal of last resort foradministrative cases, and the High Court of Appeals for all others.

    The prime minister is elected by the parliament through a vote of confidence in thegovernment and is most often the head of the party having the most seats in parliament. Thecurrent prime minister is the former mayor of stanbul, Recep Tayyip Erdoan, whoseconservative Justice and Development Party won an absolute majority of parliamentaryseats in the 2002 general elections, organized in the aftermath of the economic crisis of2001, with 34% of the suffrage.

    Universal suffrage for both sexes has been applied throughout Turkey since 1933, and everyTurkish citizen who has turned 18 years of age has the right to vote. As of 2004, there were

    50 registered political parties in the country. The Constitutional Court can strip the publicfinancing of political parties that it deems anti-secular orseparatist, or ban their existencealtogether.

    There are 550 members of parliament who are elected for a four-year term by a party-listproportional representation system from 85 electoral districts which represent the 81administrative provinces of Turkey. To avoid a hung parliament and its excessive politicalfragmentation, only parties winning at least 10% of the votes cast in a national parliamentary

    http://en.wikipedia.org/wiki/List_of_Presidents_of_Turkeyhttp://en.wikipedia.org/wiki/Head_of_statehttp://en.wikipedia.org/wiki/Abdullah_G%C3%BClhttp://en.wikipedia.org/wiki/Ahmet_Necdet_Sezerhttp://en.wikipedia.org/wiki/Ahmet_Necdet_Sezerhttp://en.wikipedia.org/wiki/Executive_(government)http://en.wikipedia.org/wiki/List_of_Prime_Ministers_of_Turkeyhttp://en.wikipedia.org/wiki/Council_of_Ministers_of_Turkeyhttp://en.wikipedia.org/wiki/Legislaturehttp://en.wikipedia.org/wiki/Grand_National_Assembly_of_Turkeyhttp://en.wikipedia.org/wiki/Judiciaryhttp://en.wikipedia.org/wiki/Legal_System_in_the_Republic_of_Turkeyhttp://en.wikipedia.org/wiki/Legal_System_in_the_Republic_of_Turkeyhttp://en.wikipedia.org/wiki/Turkish_Council_of_Statehttp://en.wikipedia.org/wiki/High_Court_of_Appeals_of_Turkeyhttp://en.wikipedia.org/wiki/List_of_political_parties_in_Turkeyhttp://en.wikipedia.org/wiki/Recep_Tayyip_Erdo%C4%9Fanhttp://en.wikipedia.org/wiki/Justice_and_Development_Party_(Turkey)http://en.wikipedia.org/wiki/Turkish_general_election,_2002http://en.wikipedia.org/wiki/Universal_suffragehttp://en.wikipedia.org/wiki/List_of_political_parties_in_Turkeyhttp://en.wikipedia.org/wiki/Separatismhttp://en.wikipedia.org/wiki/Party-list_proportional_representationhttp://en.wikipedia.org/wiki/Party-list_proportional_representationhttp://en.wikipedia.org/wiki/Provinces_of_Turkeyhttp://en.wikipedia.org/wiki/Hung_parliamenthttp://en.wikipedia.org/wiki/Election_thresholdhttp://en.wikipedia.org/wiki/List_of_Presidents_of_Turkeyhttp://en.wikipedia.org/wiki/Head_of_statehttp://en.wikipedia.org/wiki/Abdullah_G%C3%BClhttp://en.wikipedia.org/wiki/Ahmet_Necdet_Sezerhttp://en.wikipedia.org/wiki/Ahmet_Necdet_Sezerhttp://en.wikipedia.org/wiki/Executive_(government)http://en.wikipedia.org/wiki/List_of_Prime_Ministers_of_Turkeyhttp://en.wikipedia.org/wiki/Council_of_Ministers_of_Turkeyhttp://en.wikipedia.org/wiki/Legislaturehttp://en.wikipedia.org/wiki/Grand_National_Assembly_of_Turkeyhttp://en.wikipedia.org/wiki/Judiciaryhttp://en.wikipedia.org/wiki/Legal_System_in_the_Republic_of_Turkeyhttp://en.wikipedia.org/wiki/Legal_System_in_the_Republic_of_Turkeyhttp://en.wikipedia.org/wiki/Turkish_Council_of_Statehttp://en.wikipedia.org/wiki/High_Court_of_Appeals_of_Turkeyhttp://en.wikipedia.org/wiki/List_of_political_parties_in_Turkeyhttp://en.wikipedia.org/wiki/Recep_Tayyip_Erdo%C4%9Fanhttp://en.wikipedia.org/wiki/Justice_and_Development_Party_(Turkey)http://en.wikipedia.org/wiki/Turkish_general_election,_2002http://en.wikipedia.org/wiki/Universal_suffragehttp://en.wikipedia.org/wiki/List_of_political_parties_in_Turkeyhttp://en.wikipedia.org/wiki/Separatismhttp://en.wikipedia.org/wiki/Party-list_proportional_representationhttp://en.wikipedia.org/wiki/Party-list_proportional_representationhttp://en.wikipedia.org/wiki/Provinces_of_Turkeyhttp://en.wikipedia.org/wiki/Hung_parliamenthttp://en.wikipedia.org/wiki/Election_threshold
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    CH.3 INTRODUCTION OF TURKEY MARKET

    The Overall Economic Situation:

    Turkey is normally called the Gateway to Europe from Asia as it is in the middle of the twocontinents. It is situated between Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Iran, Iraqand Syria, with theMediterranean, Aegean, Black and Sea of Marmara forming its coastline. The abundantnatural resources such as natural stone, marble, boron, chromium, thorimn, coal, with a total

    value of US$2,000 billion. Natural stones and marbles account for 40% of the resourcereserves and also rank first in different varieties available. Boron trioxide reserves 700 billiontons, worth about US$356 billion while chromium reserves of 0.1 billion tons, and thoriumaccounts for 22% and the greatest amount ofany one country. Gold reserves stand at 450 tons, silver 1,100 tons and coal 8.5 billion tons,although oil and natural gas are in short supply and it is therefore necessary to import these.Water is also in short supply as there is only 1,430 cubic metres per head in storage.

    Business Opportunities:

    AgricultureTurkey is traditionally a farming country, therefore the foundation of agriculture is sound. Thecountry is self sufficient in grain, cotton, fruit, vegetables and meat. Agriculture accounts for20% of the gross domestic product and the population employed in agriculture accounts for

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    CH.4 GENERAL OVERVIEW OF TRADE AND COMMERCE OF TURKEY

    Turkey has one of the most liberal trade regimes, based on its 1.5 percent MFN Tariff TradeRestrictiveness Index (TTRI).1 It ranks as the 5th least restrictive tariff regime out of a 125country sample. Turkey has a trade regime that is less restrictive than that of an averageEurope and Central Asia (ECA) (4.4 percent) or upper-middle-income country (6.9 percent).The TTRI for non-agricultural products, for which the tariffs are based on the EU commonexternal tariff due to Turkeys participation in the customs union with the EU, is 1.3 percent,which is lower than that of its comparators. But Turkey is much more protective of its

    agricultural products. Its latest TTRI for agricultural products is 21.8 percent.

    Foreign Trade Overview

    The spearheads of Turkish foreign trade are the automobile and textile industries , followedby the food industry, machinery and equipment and electronic equipment, steel andchemical sectors respectively. The European Union is by far Turkey's leading customer,

    followed by the United States, China and Iraq. Yet the country shows a high trade deficitlevel because of its high energy dependency on Russia and its Middle Eastern neighbours.In addition, like the household appliance sector, which paradoxically is a high exportindustry, many components are imported to subsequently be assembled in Turkey. Despitegovernment efforts to promote innovation , Turkish exports have relatively low added value.Similarly, Turkish exports are still not very present on markets with high developmentpotential and suffer from being compared to German ones.

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    CH.5 Trading Policies in Turkey

    The objective of Turkeys trade policies at all levels is to effectuate the principle of "free and

    fair trade" in its relations. The World Trade Organization (WTO), which regulates the courseof the multilateral trade system, and the ongoing Doha Development Round negotiations areconsidered as invaluable platforms by Turkey to voice its concerns and endorse its interests.

    The Customs Union established with the European Community (EC) in 1995, which cameinto force in 1996 right after the completion of the Uruguay Round has also been acornerstone in Turkeys trade policies. The ECs determining influence in Turkeys traderelations has intensified even more with the beginning of the full membership process.

    Turkey also makes efforts to achieve a liberalized world trade and beginning from its region,works to enhance its commercial and economic relations with its neighbours. Turkeyexpects its trade policy to contribute to the economic and also political stability in its region.Towards that end, Turkey also pursues ambitious trade agendas from a regional perspectivein organizations such as Economic Cooperation Organization (ECO), Black Sea EconomicCooperation (BSEC), Organization of Islamic Conference (OIC) and Developing-8 as a

    member.

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    CH.6 CHANNELS OF DISTRIBUTION OF TURKEY

    RETAILERS

    In 2011 for the first time, Turkey ranked among the ten most attractive destinations for retailinvestments. Compared to the previous year, the country thereby moved up eight positions. This isshown in the Global Retail Development Index (GRDI) 2011 of A.T. Kearney, the consulting firm,which, for the tenth consecutive time, assessed the attractiveness of 30 emerging markets fortrading companies. According to this assessment, the Turkish market shows great potential.

    Especially in Istanbul and other major Turkish cities, the propensity to consume is constantlygrowing. The number of shopping centres, supermarkets and hypermarkets is growing. But also inmedium sized cities, retail companies are beginning to invest in more compact store formats andestablishing new locations.

    Trade characterised by tradition: The Turkish retail landscape is still organised rathertraditionally. Currently, the top five retail companies hold a market share of less than tenpercent. Independent, family-owned shops, the so-called Bakkallar, as well as open marketsand bazaars are still very common across the country. According to estimates, Turkeycurrently has 550,000 Bakkalar shops. Especially in rural areas and smaller cities, wheremodern supermarkets and hypermarkets are still rare, traditional shops assume an importantlocal supply function.

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    4. Magazines

    5. Journals

    Some of the leading newspaper of turkey are Zaman, Todays Zaman, Posta Saboh, Taraf, Agos.These are some news paper which are useful in the mass circulation of news in the turkey market.

    Radio News Channnel like Deta FM, Billboard Radio, TRT- 3, and Radio Istanbul are some turkey

    radio stations are available as free streaming audio service on internet.

    Television network comprises of Satellite, cable, Terrestrial and mobile network.

    CH.7 TRADE STATISTICS OF TURKEY

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    Exports 1,1% 1,1% 1,0% Exports 4,0% 4,5% 4,7%

    EU27 MERCHANDISE TRADE WITH TURKEY BY PRODUCT (2011) - SITC* (UN, WTO/ITS) & AMA/NAMA (WTO) BREAKDOWNS

    Millions of euros Source: Eurostat (Comext, Statistical Regime 4)

    32 513

    17 622

    8 653

    Imports Exports Balance

    14 891 12 113 13 7569 077

    Millions of euros

    80 00070 00060 00050 000 43 817

    Imports Exports Balance

    68 351

    -10 000-20 000

    3 831 2 101

    -10 012

    4 679 40 00030 00020 000

    10 0000

    3 490 3 274

    24 534

    286 1 039 753

    Agri. Prod. (Food(incl. Fish) & Raw

    Materials)

    Fuels and miningproducts

    Chemicals Machinery andtransport equipment

    Textiles & Clothing Other Products -10 000 -216

    Agricultural Products

    (AMA/WTO)

    Non-Agricultural

    Products (NAMA/WTO)

    Other Products

    * SITC Rev. 3: Agri. Prod. (Food (incl. Fish) & Raw Materials): 0, 1, 2, 4, excl. 27, excl. 28; Fuels and mining products: 3, 27, 28, 68; Chemicals: 5; Machinery and transport equipment: 7; Textiles & Clothing: 65, 84

    TRADE IN COMMERCIAL SERVICES (SERVICES EXCLUDING "GOVERNMENT SERVICES")

    TURKEY WITH THE WORLD EU27 WITH TURKEY

    Billions of eurosImports Exports Balance Billions of euros Imports Exports Balance

    30,0

    25,0

    20,0

    23,4 23,4

    13,9

    25,215,0

    10,0

    5,0

    12,8

    6,8

    11,5

    6,4

    13,7

    8,0

    15,0

    10,0

    5,0

    0,0

    11,3 12,1 11,1 12,2 11,30,0

    -5,0

    -10,0-6,0

    -5,0 -5,8

    2008 2009 20102008 2009 2010

    Source: World Trade Organisation Source: Eurostat (NewCronos)

    % OF THE WORLD (excluding Intra-EU Trade) 2008 2009 2010 % OF TOTAL EXTRA-EU27 2008 2009 2010

    Imports 0,6% 0,7% 0,7% Imports 2,9% 2,8% 3,1%

    Exports 1,2% 1,3% 1,2% Exports 1,3% 1,4% 1,5%

    FOREIGN DIRECT INVESTMENTEU27 FDI WITH TURKEY EU27 STOCKS OF FDI WITH TURKEY

    Billions of euros

    7,0

    6,0

    6,2 6,5Inflows Outflows Balance

    5,85,0

    Billions of euros

    70,0

    60,0

    Inward Stocks Outward Stocks Balance65,5

    54,057,3

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    EU'S TRADE BALANCE WITH TURKEY

    European Union, Trade with Turkey millions of euro, %

    Period ImportsVariation

    (%, y-o-y)

    Share oftotal

    EU Imports

    (%)

    ExportsVariation

    (%, y-o-y)

    Share oftotal

    EU Exports

    (%)

    Balance Trade

    2007

    2008

    2009

    2010

    2011

    47 028 12,7

    45 960 -2,3

    36 197 -21,2

    42 323 16,9

    47 588 12,4

    3,3

    2,9

    3,0

    2,8

    2,8

    52 650 5,2

    54 093 2,7

    44 101 -18,5

    61 253 38,9

    72 588 18,5

    4,2

    4,1

    4,0

    4,5

    4,7

    5 621

    8 133

    7 903

    18 930

    24 999

    99 678

    100 053

    80 298

    103 577

    120 176

    2011Q1

    2011Q2

    2011Q3

    2011Q4

    2012Q1

    2012Q2

    2012Q3

    2012Q4

    12 461 -

    12 186 -

    11 271 -

    11 670 -

    - -

    - -

    - -

    - -

    3,0

    2,9

    2,7

    2,8

    -

    -

    -

    -

    18 590 -

    19 230 -

    17 597 -

    17 170 -

    - -

    - -

    - -

    - -

    5,1

    5,1

    4,6

    4,3

    -

    -

    -

    -

    6 129

    7 044

    6 325

    5 501

    -

    -

    -

    -

    31 052

    31 417

    28 868

    28 840

    -

    -

    -

    -

    Average annual growth (2007-2011) 0,3 8,4 4,8

    80 000

    70 000

    60 000

    50 000

    40 000

    30 000

    20 000

    10 000

    0

    2007 2008 2009 2010 2011

    Imports Exports Balance

    European Union, Trade with the World millions of euro, %

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    TURKEY'S TRADE WITH MAIN PARTNERS (2010)

    1 EU27 39 754,5 46,3%

    23

    4

    5

    Iraq 4 564,0 5,3%Russia 3 497,5 4,1%

    United States 2 906,2 3,4%

    United Arab Emirat 2 522,1 2,9%

    6

    7

    8

    9

    10

    Iran 2 300,3 2,7%

    China 1 716,2 2,0%

    Egypt 1 698,9 2,0%

    Saudi Arabia 1 683,7 2,0%

    Switzerland 1 587,2 1,8%

    11

    12

    13

    14

    15

    Israel 1 569,3 1,8%

    Libya 1 464,4 1,7%

    Syria 1 391,9 1,6%

    Azerbaijan 1 173,1 1,4%

    Algeria 1 134,1 1,3%

    16

    17

    18

    19

    20

    Ukraine 949,6 1,1%

    Turkmenistan 861,4 1,0%

    Kazakhstan 620,5 0,7%

    Georgia 582,6 0,7%

    Tunisia 539,0 0,6%

    21

    22

    23

    24

    25

    Morocco 469,8 0,5%

    Brazil 466,3 0,5%

    Lebanon 466,2 0,5%

    India 458,0 0,5%

    Singapore 447,8 0,5%26

    27

    28

    29

    30

    Jordan 434,0 0,5%

    Canada 361,3 0,4%

    Kuwait 302,7 0,4%

    South Africa 280,9 0,3%

    Norway 260,0 0,3%

    31

    32

    33

    34

    35

    Australia 253,5 0,3%

    Yemen 250,6 0,3%

    Serbia 230,9 0,3%

    South Korea 229,2 0,3%

    Kosovo 222,5 0,3%

    1 EU27 94 364,1 42,0%

    23

    4

    5

    Russia 19 788,3 8,8%China 14 715,2 6,5%

    United States 12 244,4 5,4%

    Iran 8 091,5 3,6%

    6

    7

    8

    9

    10

    Iraq 5 586,3 2,5%

    Switzerland 3 976,5 1,8%

    Ukraine 3 853,2 1,7%

    South Korea 3 838,1 1,7%

    Saudi Arabia 3 529,1 1,6%

    11

    12

    13

    14

    15

    United Arab Emirate 3 049,3 1,4%

    India 3 043,8 1,4%

    Algeria 2 845,6 1,3%

    Japan 2 700,9 1,2%

    Israel 2 602,4 1,2%

    16

    17

    18

    19

    20

    Kazakhstan 2 480,4 1,1%

    Egypt 2 399,0 1,1%

    Syria 1 898,7 0,8%

    Azerbaijan 1 826,7 0,8%

    Libya 1 791,1 0,8%

    21

    22

    23

    24

    25

    Brazil 1 485,9 0,7%

    Indonesia 1 306,4 0,6%

    Turkmenistan 1 152,9 0,5%

    Thailand 1 134,0 0,5%

    Canada 1 052,7 0,5%26

    27

    28

    29

    30

    Malaysia 1 020,9 0,5%

    South Africa 958,4 0,4%

    Norway 879,7 0,4%

    Uzbekistan 866,0 0,4%

    Georgia 802,6 0,4%

    31

    32

    33

    34

    35

    Morocco 770,8 0,3%

    Bangladesh 769,8 0,3%

    Pakistan 753,6 0,3%

    Tunisia 750,8 0,3%

    Vietnam 646,2 0,3%

    The Major Imports Partners The Major Export Partners The Major Trade Partners

    Rk Partners Mio euro % Rk Partners Mio euro % Rk Partners Mio euro %

    World (all countrie 138 894,2 100,0% World (all countrie 85 949,4 100,0% World (all countrie 224 843,7 100,0%

    1 EU27 54 609,7 39,3%

    23

    4

    5

    Russia 16 290,8 11,7%China 12 999,0 9,4%

    United States 9 338,2 6,7%

    Iran 5 791,1 4,2%

    6

    7

    8

    9

    10

    South Korea 3 608,9 2,6%

    Ukraine 2 903,5 2,1%

    India 2 585,8 1,9%

    Japan 2 495,7 1,8%

    Switzerland 2 389,3 1,7%

    11

    12

    13

    14

    15

    Kazakhstan 1 859,9 1,3%

    Saudi Arabia 1 845,3 1,3%

    Algeria 1 711,5 1,2%

    Indonesia 1 117,1 0,8%

    Israel 1 033,2 0,7%

    16

    17

    18

    19

    20

    Iraq 1 022,3 0,7%

    Brazil 1 019,6 0,7%

    Thailand 967,0 0,7%

    Malaysia 849,9 0,6%

    Egypt 700,1 0,5%

    21

    22

    23

    24

    25

    Canada 691,4 0,5%

    South Africa 677,5 0,5%

    Azerbaijan 653,6 0,5%

    Uzbekistan 652,4 0,5%

    Bangladesh 640,9 0,5%26

    27

    28

    29

    30

    Norway 619,7 0,4%

    Pakistan 567,7 0,4%

    Vietnam 566,4 0,4%

    United Arab Emirat 527,2 0,4%

    Syria 506,8 0,4%

    31

    32

    33

    34

    35

    Nigeria 450,2 0,3%

    Mexico 373,9 0,3%

    Australia 337,2 0,2%

    Libya 326,6 0,2%

    Morocco 300,9 0,2%

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    EUROPEAN UNION, TRADE WITH THE WORLD AND TURKEY, BY SITC SECTION (2011)*

    European Union, Imports from the World European Union, Imports from... Turkey

    SITC

    CodesSITC Sections

    Value

    (millions of

    euro)

    Share of

    Total (%)

    SITC

    CodesSITC Sections

    Value

    (Millions of

    euro)

    Share of

    Total (%)

    Share of

    total EU

    Imports

    TOTAL 1 683 931 100,0% TOTAL 47 588 100,0% 2,8%SITC 3 Mineral fuels, lubricants and related materials 485 445 28,8% SITC 7 Machinery and transport equipment 17 622 37,0% 4,0%

    SITC 7 Machinery and transport equipment 438 645 26,0% SITC 6 Manufactured goods classified chiefly by material 11 227 23,6% 6,1%

    SITC 8 Miscellaneous manufacturedarticles 214 871 12,8% SITC 8 Miscellaneous manufacturedarticles 10 952 23,0% 5,1%

    SITC 6 Manufactured goods classified chiefly by material 183 699 10,9% SITC 0 Food and live animals 3 257 6,8% 3,9%

    SITC 5 Chemicals and related prod, n.e.s. 152 490 9,1% SITC 5 Chemicals and related prod, n.e.s. 2 069 4,3% 1,4%

    SITC 0 Food and live animals 83 827 5,0% SITC 2 Crude materials, inedible, except fuels 1 201 2,5% 1,6%

    SITC 2 Crude materials, inedible, except fuels 76 944 4,6% SITC 3 Mineral fuels, lubricants and related materials 765 1,6% 0,2%

    SITC 9 Commodities and transactions n.c.e. 30 003 1,8% SITC 9 Commodities and transactions n.c.e. 223 0,5% 0,7%

    SITC 4 Animal and vegetable oils, fats and waxes 8 596 0,5% SITC 1 Beverages and tobacco 165 0,3% 2,3%

    SITC 1 Beverages and tobacco 7 061 0,4% SITC 4 Animal and vegetable oils, fats and waxes 18 0,0% 0,2%

    European Union, Imports from the World European Union, Imports from... Turkey

    SITC 5

    9,1%

    SITC 0

    5,0%

    SITC 2

    4,6%

    SITSCSITI

    O9TCtCh4e

    1r

    1,8%00,05

    ,4,%1%%

    SITC 3

    28,8%

    SITC 0

    6,8%

    SITC

    2SITSCSISTIO3TI

    CTtChC9e1r4

    SITC 5 2,5%1,6%00,05,3,%02%%

    4,3%

    SITC 7

    37,0%

    SITC 610,9% SITC 8

    23,0%

    SITC 8

    12,8%SITC 7

    26,0% SITC 6

    23 6%

    European Union, Exports to the World European Union, Exports to... Turkey

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    * The sums of the individual SITC product categories are less than the totals due to confidentiality reasons. DG TRADE

    Source: EUROSTAT (Comext, Statistical regime 4); World excluding Intra-EU trade and European Union: 27 members. 21-Mar-12

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    23 6 709,9 14,1% 1,0%

    8

    8

    19

    6

    20

    31

    14

    39

    34

    23

    95

    3 830,4 8,0% 2,9%

    3 477,4 7,3% 3,2%

    241,7 0,5% 1,3%

    3 235,7 6,8% 3,7%

    353,0 0,7% 1,3%

    2 879,4 6,1% 0,5%

    811,1 1,7% 1,9%

    765,2 1,6% 0,2%

    629,8 1,3% 0,2%

    135,4 0,3% 0,1%

    1 303,1 2,7% 3,1%40 547,2 85,2% 4,3%

    4

    14

    13

    7

    16

    5

    6

    15

    21

    11

    25

    3

    2

    8

    5

    8

    6

    5

    2

    2

    8

    6

    2 066,7 4,3% 6,1%

    2 069,0 4,3% 1,4%

    243,6 0,5% 0,5%

    881,2 1,9% 4,6%

    944,1 2,0% 1,2%

    4 113,6 8,6% 4,8%

    17 621,9 37,0% 4,0%

    1 410,1 3,0% 0,8%

    70,4 0,1% 0,1%

    1 317,6 2,8% 1,8%

    22,2 0,0% 0,1%

    10 535,3 22,1% 10,3%

    9 131,5 19,2% 18,7%

    1 403,7 2,9% 2,6%

    5 676,6 11,9% 3,6%

    417,2 0,9% 1,4%

    1 892,5 4,0% 2,9%

    3 366,8 7,1% 5,4%

    3 743,8 7,9% 16,7%

    8 366,4 17,6% 11,6%

    2 565,9 5,4% 1,8%

    924,4 1,9% 2,6%

    5 12 344,2 17,0% 4,8%

    8

    10

    36

    10

    4

    4

    2

    5

    5

    13

    5

    5

    3 779,5 5,2% 3,3%

    2 561,9 3,5% 2,7%

    13,9 0,0% 0,4%

    2 548,0 3,5% 2,8%

    1 217,6 1,7% 5,8%

    8 564,8 11,8% 6,0%

    3 420,0 4,7% 17,6%

    3 857,8 5,3% 3,9%

    3 771,1 5,2% 4,1%

    86,7 0,1% 1,3%

    1 286,9 1,8% 5,0%

    58 764,7 81,0% 4,8%

    2

    6

    8

    1

    6

    7

    4

    6

    6

    4

    16

    44

    6

    5

    6

    4

    5

    4

    6

    8

    8

    6

    3 428,9 4,7% 8,4%

    11 857,8 16,3% 4,7%

    2 680,3 3,7% 2,7%

    3 981,9 5,5% 11,3%

    5 195,7 7,2% 4,4%

    4 487,2 6,2% 4,0%

    32 471,8 44,7% 5,0%

    4 352,2 6,0% 5,4%

    1 345,4 1,9% 5,4%

    2 781,7 3,8% 6,8%

    225,1 0,3% 1,5%

    14 737,9 20,3% 6,1%12 019,3 16,6% 7,4%

    2 718,6 3,7% 3,4%

    13 308,2 18,3% 4,1%

    1 538,5 2,1% 3,3%

    8 716,4 12,0% 4,3%

    3 053,4 4,2% 4,2%

    1 282,0 1,8% 7,5%

    819,0 1,1% 4,0%

    4 414,6 6,1% 3,3%

    694,2 1,0% 2,8%

    1 544,7 2,1% 3,4%

    5 634,4

    -51,0

    -915,6

    -227,8

    -687,7

    864,6

    5 685,4

    2 608,9

    3 092,6

    3 141,3

    -48,7

    -16,2

    18 217,5

    1 362,2

    9 788,9

    RANK OF TURKEY IN EUROPEAN UNION TRADE (2011)*

    EU Imports EU Exports EU Balance

    SITC Rev.3 (UN, WTO/ITS) & AMA/NAMA** (WTO)

    Product GroupsRank

    Value

    (in millions

    ofeuro)

    Share of

    Product in

    Total (%)

    Share of

    Partner in EU

    Imports

    (%)

    Rank

    Value

    (in millions

    ofeuro)

    Share of

    Product in

    Total (%)

    Share of

    Partner in EU

    Exports

    (%)

    Value

    (in millions

    ofeuro)

    TOTAL 7 47 588,4 100,0% 2,8% 5 72 587,6 100,0% 4,7% 24 999,2

    1000 - Primary products

    1100 - Agricultural products (Food (incl. Fish) & Raw Materials)

    1110 - Food

    1111 - Fish

    1112 - Other food products and live animals

    1120 - Raw materials

    1200 - Fuels and mining products

    1210 - Ores and other minerals

    1220 - Fuels

    1221 - Petroleum and petroleum products

    1222 - Other fuels

    1230 - Non ferrous metals2000 - Manufactures

    2100 - Iron and steel

    2200 - Chemicals

    2210 - Pharmaceuticals

    2220 - Plastics

    2230 - Other chemicals

    2300 - Other semi-manufactures

    2400 - Machinery and transport equipment

    2410 - Office and telecommunication equipment

    2411 - Electronic data processing and office equipment

    2412 - Telecommunications equipment

    2413 - Integrated circuits and electronic components

    2 436,6

    3 100,7

    4 251,6

    373,6

    14 849,9

    2 942,0

    1 275,0

    1 464,1

    202,9

    2420 - Transport equipment

    2421 - Automotive products

    2422 - Other transport equipment

    2430 - Other machinery

    4 202,6

    2 887,8

    1 314,8

    7 631,6

    2431 - Power generating machinery 1 121,3

    2432 - Non electrical machinery 6 823,9

    2433 - Electrical machinery -313,5

    2500 - Textiles -2 461,8

    2600 - Clothing -7 547,5

    2700 - Other manufactures 1 848,7

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    * The sums of the individual SITC product categories are less than the totals due to confidentiality reasons. DG TRADE

    ** Based on: http://www.wto.org/english/tratop_e/markacc_e/namachairtxt_dec08_e.pdf

    Source: EUROSTAT (Comext, Statistical regime 4); Share by products in EU 27 Total Trade excluding Intra-EU trade.

    21-Mar-12

    http://www.wto.org/english/tratop_e/markacc_e/namachairtxt_dec08_e.pdfhttp://www.wto.org/english/tratop_e/markacc_e/namachairtxt_dec08_e.pdf
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    EU Exports to

    TDC Sections World

    Turkey

    Share ofMillions Share of

    total EUof euro Total

    Exports

    EU Balance with

    TDC Sections World Turkey

    TOTAL 1 531 122 72 588 100,0% 4,7%

    TDC 16

    TDC 17

    TDC 15

    TDC 06

    TDC 07

    TDC 05

    TDC 11

    TDC 18

    TDC 10

    TDC 04

    TDC 01

    TDC 02

    TDC 20

    TDC 13

    TDC 08

    TDC 09

    TDC 14

    TDC 12

    TDC 03

    TDC 19

    TDC 21

    425 431

    224 819

    109 013

    223 961

    59 934

    104 786

    38 722

    69 879

    30 249

    53 583

    21 813

    20 493

    23 413

    17 106

    13 408

    10 093

    49 608

    7 072

    3 946

    2 326

    4 611

    20 359

    12 422

    9 249

    8 047

    5 472

    4 211

    2 451

    2 098

    1 572

    1 239

    794

    663

    639

    520

    445

    432

    401

    349

    27

    24

    23

    28,0%

    17,1%

    12,7%

    11,1%

    7,5%

    5,8%

    3,4%

    2,9%

    2,2%

    1,7%

    1,1%

    0,9%

    0,9%

    0,7%

    0,6%

    0,6%

    0,6%

    0,5%

    0,0%

    0,0%

    0,0%

    4,8%

    5,5%

    8,5%

    3,6%

    9,1%

    4,0%

    6,3%

    3,0%

    5,2%

    2,3%

    3,6%

    3,2%

    2,7%

    3,0%

    3,3%

    4,3%

    0,8%

    4,9%

    0,7%

    1,0%

    0,5%

    TOTAL -152 809 24 999

    TDC 06 87 026 6 854

    TDC 15 3 611 3 857

    TDC 17 133 928 3 148

    TDC 07 11 181 2 839

    TDC 05 -413 721 2 737

    TDC 18 15 028 1 885

    TDC 10 13 985 1 229

    TDC 01 530 534

    TDC 09 -444 390

    TDC 12 -10 522 245

    TDC 14 2 650 170

    TDC 08 430 86

    TDC 21 1 664 21

    TDC 03 -4 899 6

    TDC 19 1 259 4

    TDC 20 -13 557 -187

    TDC 04 15 132 -216

    TDC 13 6 217 -387

    TDC 02 -23 060 -1 184

    TDC 11 -54 338 -9 688

    EU TRADE WITH THE WORLD AND EU TRADE WITH TURKEY (2011)*(Ranking by Trade Flows in 2011)

    EU Imports from

    TDC Sections World

    Turkey

    Share ofMillions Share of

    total EUof euro Total

    Imports

    TOTAL 1 683 931 47 588 100,0% 2,8%

    TDC 11

    TDC 17

    TDC 16

    TDC 15

    TDC 07

    TDC 02

    TDC 05

    TDC 04

    TDC 06

    TDC 13

    TDC 20

    TDC 08

    TDC 10

    TDC 01

    TDC 14

    TDC 18

    TDC 12

    TDC 09

    TDC 03

    TDC 19

    TDC 21

    93 060

    90 891

    350 449

    105 402

    48 752

    43 553

    518 507

    38 451

    136 934

    10 889

    36 970

    12 978

    16 265

    21 283

    46 959

    54 851

    17 595

    10 536

    8 845

    1 067

    2 947

    12 140

    9 274

    8 568

    5 391

    2 633

    1 847

    1 474

    1 455

    1 193

    907

    826

    358

    343

    260

    231

    214

    104

    42

    21

    20

    3

    25,5%

    19,5%

    18,0%

    11,3%

    5,5%

    3,9%

    3,1%

    3,1%

    2,5%

    1,9%

    1,7%

    0,8%

    0,7%

    0,5%

    0,5%

    0,4%

    0,2%

    0,1%

    0,0%

    0,0%

    0,0%

    13,0%

    10,2%

    2,4%

    5,1%

    5,4%

    4,2%

    0,3%

    3,8%

    0,9%

    8,3%

    2,2%

    2,8%

    2,1%

    1,2%

    0,5%

    0,4%

    0,6%

    0,4%

    0,2%

    1,9%

    0,1%

    TDC sections (Harmonized System):

    TDC 01 Ch.01-05 Live animals; animal products TDC 11 Ch.50-63 Textiles and textile articles

    TDC 02 Ch.06-14 Vegetable products TDC 12 Ch. 64-67 Footwear, headgear, umbrellas, sun umbrellas, walking-sticksTDC 03 Ch.15 Animal or vegetable fats and oils and their cleavage products TDC 13 Ch.68-70 Articles of stone, plaster, cement, asbestos, mica or similar material

    TDC 04 Ch.16-24 Prepared foodstuffs; beverages, spirits and vinegar; tobacco... TDC 14 Ch.71 Natural or cultured pearls, precious or semi-precious stones

    TDC 05 Ch.25-27 Mineral Products TDC 15 Ch.72-83 Base metals and articles of base metal

    TDC 06 Ch.28-38 Products of the chemical or allied industries TDC 16 Ch.84-85 Machinery and mechanical appliances; electrical equipment

    TDC 07 Ch.39-40 Plastics and articles thereof; rubber and articles thereof TDC 17 Ch.86-89 Vehicles, aircraft, vessels and associated transport equipment

    TDC 08 Ch.41-43 Raw hides and skins, leather, furskins and articles thereof TDC 18 Ch.90-92 Optical, photographic, cinematographic, measuring, checking, precision

    TDC 09 Ch.44-46 Wood and articles of wood; wood charcoal; cork and articles ofcork TDC 19 Ch. 93 Arms and ammunition; parts and accessories thereof

    TDC 10 Ch.47-49 Pulp of wood or of other fibrous cellulosic material; paper or paperboard TDC 20 Ch.94-96 Miscellaneous manufactured articles

    TDC 21 Ch.97 Works of art, collectors pieces and antiques

    * The sums of the individual TDC categories are less than the totals due to confidentiality reasons. DG TRADE

    Source: EUROSTAT (Comext, Statistical regime 4); World excluding Intra-EU trade and European Union: 27 members.

    21 Mar 12

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    21-Mar-12

    CH.8 BIBLIOGRAPHY

    1. WWW.ENCYCLOPEDIA.COM2. WWW.WTO.COM3. WWW.TURKSTAT.GOV.COM

    4

    http://www.wto.com/http://www.wto.com/
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    4.