1. FOREIGN TRADE POLICY OF TURKEY Istanbul, 19 th October 2009 İclal SİNCER Foreign Trade Expert General Directorate of Economic Research and Assessment Undersecretariat for Foreign Trade

2. Before Republic : Customs Policies 1934 : Ministry of Economy Head of Foreign Trade 1939 : Ministry of Trade Head of Foreign Trade 1971 : Ministry of Foreign Economic Relations 1971 : General Secretariat For Foreign Trade 1983 : Undersecretariat For Treasury & Foreign Trade 1994 - : Undersecretariat For Foreign Trade HISTORICAL BACKROUND Undersecretariat for Foreign Trade

3. 3 PROVINCIAL ORGANIZATIONS Free Zone Directorates (20) Local Offices (DTS, 8) UNDERSECRETARY Exporters’ Unions Export Promotion Center (İGEME) Missions Abroad MINISTER of STATE General Directorate of Economic Research and Assessment General Directorate of Standardization General Directorate of Free Zones General Directorate of European Union Affairs General Directorate of Agreements General Directorate of Import General Directorate of Export MAIN SERVICE UNITS Control, Advisory and Supporting Units Board of Foreign Trade Controllers (DTKK) Legal Consultancy Press and Public Relations Coordinator Department of Security Department of Human Resources Department of Strategy Development Department of Administrative and Financial Affairs Undersecretariat for Foreign Trade

4. UFT FOREIGN MISSIONS

5. Undersecretariat for Foreign Trade MAIN OBJECTIVES Expanding foreign trade culture and consciousness throughout Turkey Making institutional development consistent Sustainable growth of export Progressing import policies to support production and to prevent economy from damages and threats Developing policies to provide supplying safe and quality products Making up strategies for facilitation of foreign trade and progressing international contracting and technical consultancy services

6.  Since 1980 Turkey implements an outward oriented trade policy  Turkey starting from 1980 left import substitution policy and opened its market by gradually lowering its customs tariffs  Membership to the WTO and the Customs Union with the EU are Turkey’s two major economic involvements determining the direction of foreign trade policies  As a founding member of the WTO, Turkey acts according to the rules and disciplines of the WTO and is committed to push forward liberalisation in the multilateral arena Undersecretariat for Foreign Trade FOREIGN TRADE POLICY OF TURKEY

7. Undersecretariat for Foreign Trade WTO  Member of the GATT (1951)  Founding member of the WTO (1995)  Developing country status in the WTO  Committed to the multilateral rules and principles

8.  DDA; new market-opening measures synchronized with rules for the creation of a fairer and more competitive international trade system  Agriculture; elimination of all trade distorting measures, gradual tariff liberalization and S&D flexibilities  NAMA; real market access opportunities & improvement in South-South trade  Trade facilitation; fair, competitive, predictable and transparent trading environment  Trade in services; progressively higher level of liberalization with appropriate flexibility for individual developing countries Undersecretariat for Foreign Trade TURKISH STANCE AT THE WTO

9.  Being a party to the Customs Union, Turkey’s trade policies are in line with the Common Commercial Policy of the EU  Decision No. 1/95 of the Turkey-EC Association Council:  Free movement of goods and Commercial Policy (Article 2-23)  Free circulation and elimination of customs duties (Article 4)  Elimination of quantitative restrictions (Articles 5-11)  Commercial Policy (Article 12)  Common Customs Tariff (Articles 13-15)  Preferential Tariff Policy (Article 16)   Preferential Agreements with third countries (Article 16/1)  Autonomous regimes (Article 16/1)  Identical rules of origin (Article 16/2) Undersecretariat for Foreign Trade EU

10. MAIN DUTIES Trade Protection Trade Promotion Multilateral and Bilateral Trade Relations (WTO, EU, FTAs) Undersecretariat for Foreign Trade MAIN DUTIES

11.  To formulate and conduct sector- and country-specific policies in connection with export loans and other state aids in line with WTO rules  Sectoral Studies,  State Aids for exporters,  Market Access Strategies,  Fairs and Promotion Activities,  Free Zones, increasing production, trade and foreign direct investment  Informing Exporters,  Observing, conducting researches on foreign trade of Turkey and World, and presenting reports.  e-trade. Undersecretariat for Foreign Trade TRADE PROMOTION

12.  Protective Trade Policy Instruments - Anti-Dumping and Countervailing Measures - Safeguard Measures  Technical Regulations & Standardization For Foreign Trade PROTECTION OF COMMERCIAL RIGHTS Undersecretariat for Foreign Trade

13. Bilateral/Regional Dimension Policy rationale for bilateral agreements  trade expansion  fostering reciprocal investments  building sound basis for economic, technical and commercial cooperation  promoting regional development  developing trade and economic relations with neighbouring and surrounding countries Key Turkish bilateral/regional agreements  Turkey-EEC Association Agreement  Customs Union Decision with the EU  Turkey-ECSC Free Trade Agreement  ACD No. 1/98 on trade in agriculture  Economic, commercial, industrial and technical cooperation agreements with 46 countries  Free Trade Agreements with EFTA, Balkan states, Mediterranean countries  Agreements on reciprocal promotion and protection of investments  ECO, BSEC, D-8, OIC Main objective is to create sound basis for collaboration, support development and eliminate trade barriers between the partners Undersecretariat for Foreign Trade

15. TRADE DEVELOPMENT STRATEGIES  Strategy of Neighbour and Surrounding Countries (2000)  Strategy of African Countries (2003)  Strategy of Asian and Pasific Countries (2005)  Strategy of USA (2006)  Strategy of Latin American Countries (2007)

16. Undersecretariat for Foreign Trade TRADE DEVELOPMENT STRATEGIES

17. Undersecretariat for Foreign Trade FOREIGN TRADE DEVELOPMENTS OF TURKEY

18.  17 th biggest economy  GDP per capita: 10.372 US$  Trade volume: 334 billion US$  Trade to GDP ratio: 45% 13 th biggest importer* 22 nd biggest exporter*  Ranks 16 th in commercial services exports*  Ranks 24 th in commercial services imports* 2008 (*) EU as single entity Turkey in the World Undersecretariat for Foreign Trade

19. World and Turkey (2008) Share of some countries Merchandise ExportsMerchandise Imports Undersecretariat for Foreign Trade

20. Foreign Trade Development Annual (2002-2009*) Billion $ * 2009 January-August

21.  %30 deceleration of export  %40 deceleration of import  nearly %60 decrease of foreign trade balance Undersecretariat for Foreign Trade Foreign Trade Development (2008*-2009*) * January-August

22. Undersecretariat for Foreign Trade EXPORT BY COUNTRY GROUPS

23. Undersecretariat for Foreign Trade IMPORT BY COUNTRY GROUPS

24. Undersecretariat for Foreign Trade BILATERAL TRADE WITH EU (2007-2009)

25. Undersecretariat for Foreign Trade SECTORAL BREAKDOWN OF EXPORT WTO Classification

26. Undersecretariat for Foreign Trade IMPORT (BEC)

27. Undersecretariat for Foreign Trade 2009 (January-August) Share of Energy Imports (%) Energy Imports

28. BILATERAL TRADE WITH MEMBER COUNTRIES OF OIC Undersecretariat for Foreign Trade

29. Billion $ * 2009 January-August Bilateral Foreign Trade Development Annual (2002-2009*)

30. Undersecretariat for Foreign Trade SECTORAL BREAKDOWN OF EXPORT

31. Undersecretariat for Foreign Trade SECTORAL BREAKDOWN OF IMPORT

32. Undersecretariat for Foreign Trade THANK YOU İclal SİNCER Foreign Trade Expert General Directorate of Economic Research and Assessment E-mail: sinceri@dtm.gov.tr Tel: +90 312 2047987