Memorandum submitted by Turkish -British
Chamber of Commerce and Industry
This report presents a review of the trends
and opportunities in bilateral trade and investment between Turkey
and the UK. The report includes assessment of factors of strength
and prospects in trade and investment between the two countries
areas that need progress. the role of Governmental authorities
and the relations between Turkey and the EU.
1. THE BACKGROUND
1.1 The international political setting and
trade agreements
1.1.1 Turkey-UK relations
Turkey and the United Kingdom share many common
goals and ties on a wide range of international matters. The relationship
between the two countries has been and will continue to be of
crucial and growing importance. This state of affairs has been
witnessed and strengthened by the recent Strategic Partnership
between Turkey and the United Kingdom drawn by the British and
Turkish Prime Ministers on 23 October 2007. The Strategic Partnership
priorities include:
— Increasing bilateral trade and investment.
— Promoting Turkey as a high growth,
high priority market.
— Raising awareness of mutually beneficial
business opportunities.
— Supporting economic reform.
— Supporting co-operation many other
areas of business.
— Supporting Turkey's EU accession
talks.
Other areas of co-operation covered by the Strategic
Partnership are; defence, global security, promotion of the transatlantic
partnership, regional stability and peace, tackling climate change,
promotion of education and culture, including the establishment
of a British University in Turkey, and six monthly consultations
to take forward on these subjects.
1.1.2 Turkey's Memberships, Regional Relations
and Trade Agreements
Turkey—EU Customs Union
Turkey membership of the EU Customs Union, which
came into force on 31 December 1995, pursuant to the 1963 EU-Turkey
Association Agreement. The Customs Union covers all industrial
goods but excludes agriculture (except processed agricultural
products), services and public procurement. In 1996 a free trade
area was established between Turkey and the European Union for
products covered by the European Coal and Steel Community.
Free Trade Agreements
In addition to the Custom Union with the EU,
Turkey is a signatory to the Free Trade Agreements with, EFTA,
Israel! Macedonia, Croatia, Bosnia-Herzegovina! Tunisia, Morocco,
the Palestinian Authority! Syria! Egypt and Albania.
Turkey is a member of:
— Associate member of the Western European
Union.
— Black Sea Economic Cooperation.
— Economic Cooperation Organization.
— Organisation for Islamic Conference
and Islamic Development Bank.
— Caspian and Turkey Business Group.
— Euro-Mediterranean partnership.
Unique Geographical Location and strong ties with
near Emerging Markets
Turkey, in addition to the Customs Union relationship
with the EU, enjoys strong regulatory and geographical position
to trade with Central Asian, Middle East and Caucasian countries.
Turkey is at the crossroads between East and West, overlapping
Europe and Asia geographically. The proximity to and bilateral
trade relations with the new emerging markets in the Middle East,
Caucasian republics and Central Asia create unique business opportunities.
Turkey is one of the leading investors in Caucasian and Central
Asian Turkic Republics. Its strong cultural and historic ties,
provides Turkey with privileged access and a strong base to develop
business with to these countries.
1.2 Trade between the UK and Turkey
1.2.1 Trade Volume
In terms of IMF and WorldBank rankings, we are
assessing here the bilateral trade prospects of the UK, world's
5th largest economy, and Turkey, the worlds 17th and Europe's
6th largest economy.
For Turkey, UK is a major trade partner
The trade between UK and Turkey showed significant
growth from 2001. (Please see the Chart)
— In 2006, Turkey exports totaling
US$ 6.8 billion to UK, made the UK Turkey's 2nd biggest export
market.
— UK exported US$ 4.7 billion worth
of goods to Turkey in 2006, making the UK Turkey's 8th biggest
import market.
The total trade in 2006 was US$ 11.8 billion
(about £6.5 billion). These results were even furthered in
2007 which saw the highest trade volume to date (about £7.7
billion) with an increase of 17.6% over 2006.
1996-2007 UK-Turkey Trade Data
2007 - January-November: Actual
2007 - December: Estimate
[in billion US Dollars]
| | |
|
| January-November | 2007
| 2006 | Change
|
| UK Exports to Turkey | 4.9 |
4.7 | 5.3% |
| UK Imports from Turkey | 7.8
| 6.1 | 29.3% |
| Total Trade | 12.7 | 10.8
| 17.6% |
For UK, Turkey is an important trade partner
While UK is a major trade partner for Turkey, Turkey has
recently become an important trade partner for the UK; Turkey
now ranks 19th and 18th biggest exporting and importing partner
for the UK.
There is however another important trend that must not be overlooked:
While Turkey ranks 18th-19th in terms of UK international
trade, the difference in volume between the 15th and the 19th
partners are not significant. More significantly however, in terms
of the highest "Average Annual Growth Rate" in both
exports from and imports to the UK, Turkey ranks 3rd among all
UK trading partners. In the period from 1999 through to 2006,
UK exports to Turkey achieved an annual increase of 8.9%. On the
other hand, in the same period, the "Average Annual Growth
Rate" for Turkish exports to the UK reached 15.4%. The only
UK trade partners which have had higher growth rate than Turkey
were China, Dubai and Poland for UK exports, and China and Dubai
for UK imports. This trend supports the "important"
status attributed above to the UK-Turkey trade.
1.2.1 Trade Categories
UK Exports To Turkey
In 2006, the leading 14 categories of goods exported from
the UK to Turkey representing 90% of the total volume were; automotive
products, electrical & non-electrical machinery, equipment
for transport, telecommunications, office, professional, scientific,
ores, metal scrap, chemicals, pharmaceutical, plastics, manufactured
items, textiles.
Turkish Exports to the UK
In 2006, the top 11 categories of Turkey's exports to the
UK made up 98.9% of the total: clothing, automotive products,
electrical & non-electrical machinery, electrical and non-electrical
machinery, equipment (for transport, office, telecommunications),
Textiles, Vegetables, fruit, Iron, steel, prefabricated buildings;
sanitary plumbing, heating, lighting fixtures. For a detailed
list of these product categories and products, please see the
attached "Trade Categories" document.
1.3 Investing in the uk and turkey
1.3.1 Changes in the Turkish Investment Regulations and
Policy
In July 2003, the regulatory framework of FDI (Foreign Direct
Investment) was changed to better meet the requirements of potential
investors. Specifically:
— Foreign investments were treated as equal to domestic
Investing (FDI no longer subject to a prior authorisation).
— Administrative barriers for the setting up or
the acquisition of a company minimised.
— Legislative changes made for the transparency
of work permits of foreign personnel.
The EU decision in October 2005 to start Turkey's EU membership
negotiations brought in another appealing feature for investing
in Turkey. As a result of the opportunities and regulatory changes,
the number of FDI companies in Turkey enjoyed a sharp increase;
rising from 6,586 to 14,955 in the period form July 2003 to the
end of 2006 with a 127% increase. Mergers, acquisitions and privatisation
in financial services and telecommunication sectors the largest
part of FDI in 2006. The FDIs included 104 of the Fortune Top
5000 companies.
To increase further the appeal of investing, an agency reporting
directly to the Turkish Prime Minister has recently been set up
to facilitate targeted investment initiatives. The "Investment
Support and Promotion Agency" was launched in London on 23
October 2007, with the Turkish Prime Minister as the key speaker.
1.3.2 UK Investments in Turkey
While between July 2003 and the end of 2006, number of FDI
companies in Turkey increased by 127%, for UK based entities the
increase was 244%. UK ranked third in terms of paid capital figures
following Germany and Holland; with UK based investors rising
rapidly from US$ 165 million in 2005 to 883 million in 2006.
1.3.3 Major UK Companies in Turkey
At the end of 2006, there were 1,420 UK based companies in
Turkey; a significant increase from 413 before the regulatory
changes in June 2003. There has also been an increase of medium
size companies doing or starting business with or in Turkey. Among
the major UK firms trading with Turkish counterparts investing
in Turkey or in partnership with Turkish companies, we can cite
Vodafone, HSBC, TESCO, Cadbury Schweppes, Marks & Spencer,
Argos, John Lewis, Matalan, Next, Sainsbury, Morrisons, Dagenham
and Harvey Nichols. Aviva, BP, Shell, Unilever, Thames Water.
1.3.4 Major Turkish Companies in the UK
Major Turkish enterprises doing business in the UK are Beko,
ExSA, Vitra, Vestel, BMC, Sabancı, Koç, Doğan,
Doğus, Iş Bank, Ziraat Bank and Akbank. Together
with medium size concerns, there are about 65 Turkish companies
operating in the UK.
2. SOME FACTS
ABOUT TURKEY
AND TURKISH
ECONOMY
— Turkey is in the top 10 emerging markets alongside
Brazil, Russia, India & China.
— Turkey's GNP is expected to surpass Australia's
in 2008.
— Turkey is an important energy corridor between
East and West and around 8% of world oil import is currently carried
out through Turkey.
— Turkey attracted $30 billion FDI in 2005 and 2006
and $17 billion in the first 11 months of 2007.
— In 2007, the number of visitors from the UK to
Turkey approached two million. Turkey's tourism sector is one
of the biggest in the world and it is the 9th tourist destination;
hosting around 20 million tourists per year.
— Turkey is opening 10 embassies in sub-Saharan
Africa and diplomatic missions in India and other regions.
— Five Turkish companies are among the world's top
100 construction companies. Construction projects to date: $84
billion.
— Twenty Turkish companies are in the top 225.
— One in four of the largest companies in and 65%
of industrial exports from Middle East and North Africa Region
are Turkish.
— Turkish businessmen in Europe run 40 billion Euro
worth business employing 500,000.
— Turkey is among the top refrigerator producers
in the world; even in UK, one out of every 10 refrigerators is
made in Turkey.
— The largest TV and DVD player producer in Europe.
One in every four TVs sold in Germany, UK and France is made in
Turkey.
— Among the top refrigerator producers in the world;
even in UK, one of every 10 refrigerators is made in Turkey.
— The largest TV and DVD player producer in Europe.
One in every four TVs sold in Germany, UK and France is made in
Turkey.
— After China, India and Italy, Turkey is the world's
4th largest textile exporter. Most of the products of H&M,
Marks and Spencer, Paul and Shark, Benetton and 30% of Calvin
Klein Jeanswear Europe production are made in Turkey.
— Turkey is the largest producer of buses, 2nd largest
of light commercial vehicles and 3rd largest of lorries in Europe.
More than 7% of Europe's motor vehicles come from Turkey. Brands
such as Toyota, Honda, Renault, Hyundai and Ford produce their
new models in Turkey; 80% of which are exported to Europe.
— Turkey has become one of the most favourite property
destinations for UK nationals. The number of number of properties
owned by British nationals in Turkey rose to 12,739 in 2006 from
2,420 in 2003; value over half a billion US$.
3. FUTURE PROSPECTS
3.1 Reasons for doing business and investing in Turkey
Many factors about the appeal of setting up businesses and
investing in Turkey such as the strength and resilience of the
economy, political and economic stability, recent reform initiatives
are summarised below.
A Fast Developing and Stable Economy
— In the last five years, Turkey's GDP grew by almost
40%, on a cumulative basis and in real terms. In 2006, Turkey's
real GDP / GNP increased by 6.1%/6.0%, making it one of the fastest
growing economies in the world. GNP per capita recorded $5.477,
an all times high. Turkey is expected to grow by more than 5%
a year in the next five to 10 years. Since 2004, the average growth
has been 7.3%, 3rd highest in OECD.
— Political stability is today established and enhanced,
to a large degree; presidential and general elections are now
over, the speed and direction of reforms and privatisation have
been positively affected.
— Inflation has been reduced to a single digit level.
— EU accession process will continue to be a driving
force for Turkey's reform efforts. Liberalisation of trade under
the EC-Turkey Customs Union has made Turkish firms more efficient
and competitive.
— In 2006, the business registration process was
further streamlined. As a result, it now takes on average only
nine days to open a business, one of the fastest registrations
in the world. Almost 100,000 enterprises were established in 2005
and 2006, same in the previous year.
— Turkey's financial industry is largely unaffected
by the negative outcome of the sub-prime mortgage crisis that
had an adverse affect on many leading economies.and enterprises
worldwide.
A Strong International Investment Record and Outlook
As described in Section 1.3.1 (Changes in the Turkish Investment
Regulations & Policy):
— Regulatory framework changed to make investing
more attractive.
— Investment Support and Promotion Agency set up
to facilitate targeted initiatives.
— Rapid investment progress achieved; at the end
of 2006 there were 15,000 foreign capital establishments in Turkey,
including 104 of the Fortune Top 5000 companies.
— UK Trade & Invest has designated Turkey as
a priority emerging market in their new trade strategy.
A Huge Domestic Market
With a population of 73 million (40% under 22) and an increasing
consumer purchasing power and spending tendency, Turkey has the
world's 13th largest urban population (about 50 million), offering
a dynamic market to exporters and investors.
High Quality Standards
There is a new quality oriented generation in Turkey in both
manufacturing and service sectors. This outlook was supported
by the EU that helped to move forward in Turkey's quality infrastructure,
with significant investments into projects supporting the assessment
of products' conformity to safety norms, the accreditation of
conformity assessment laboratories, surveillance of the safety
of products, heightened awareness of CE (Conformité Européene)
marking. Progress in this area and in Turkish economy in general,
is witnessed by the confidence shown by the EU whose share of
FDI in Turkey rose to 82% in 2006, increasing sharply from 58%
in the previous year, and from 54% average EU share between 2000
and 2004.
Privatisation
Major public companies Turkish Telecom, Turkish Petroleum
Refineries, two major ports and Petkim (petrochemical) have been
privatised in 2005 and 2006.
Key state assets such as:
— Turkish Electricity Distribution
— Natural gas distribution regions
— Public Banks (Turkish Ziraat Bank and Halk Bank),
— Tobacco and Cigarette Factories
— National Lottery Licences
are in the privatisation portfolio. The 87 privatisation
cases concluded in 2006 corresponded to 2% of GDP.
High-Skilled, Competitive Labour
Competitive labour rates offer significant advantage for
businesses. Labour productivity has been increasing about 10%
a year for the last three years.
State-of-the-art Telecommunications Network
Turkey has a relatively young telecommunications network
with the latest technology, which can easily compete with the
developed countries.
Competition law and the Competition Authority
The competition law and the Competition Authority are overall
very effective and their existence helps provide a safety zone
to foreign businesses entering the Turkish market.
Banking Regulations
In the aftermath of the economic crisis in 2001, banking
regulations had been strengthened, and today Turkey enjoys a much
stronger and resilient financial services industry. In cooperation
with the IMF, additional responsibilities were transfers to the
Banking Regulation and Supervision Authority, principally for
financial holding, leasing and factoring companies.
Progress in Regulatory Framework
Progress has been made in reducing administrative barriers
to business entry, operation and closure.
The Gateway of Energy Resources
Turkey is located at the gateway of the Middle East, Caspian
petroleum and Central Asian natural gas to the west, which are
regarded as the future energy reserves of the world. Current natural
gas pipeline networks for imports from Russia and Iran, LNG-routes
from Algeria, and Nigeria, oil imports through the BTC pipeline
and future energy projects will make Turkey an energy gateway.
Trade facilitation
The EU has made a solid contribution to the modernisation
of Turkey's customs via significant investments in equipment providing
state-of-the-art technology.
Unique Geographical Location and Strong Ties with near Emerging
Markets
Turkey is at the crossroads between East and West, overlapping
Europe and Asia geographically. The proximity to and bilateral
trade relations with the new emerging markets in the Middle East,
Caucasian republics and Central Asia can create unique business
opportunities. Turkey is one of the leading investors in Caucasian
and Central Asian Turkic Republics and rapidly becoming an "operation
and production hub" for multinational companies. Due to her
strong cultural and historic ties, Turkey provides privileged
access and a strong base to develop business with and re-export
to these countries. Owing to its geographical location and traditional
economic and cultural ties with these regions, the export markets
of Turkey are geographically diversified, which helps in minimizing
the effects of external shocks.
Simple Export Procedure for Duty free Rates
There is a simple facilitating procedure for duty free rates
for exports from the UK to Turkey. Under the terms of the EU Customs
Union agreement, the main export process from the UK to Turkey
is the ATR procedure that is applicable to Turkey alone. To be
entitled to preferential duty rates, usually zero, it is sufficient
to submit a certified ATR certificate for preferential, usually
zero rate Turkish importation.
The ATR process requires simply An Export Declaration to
declare that the goods originate or are in "free circulation"
in the EU or Turkey, An Export Invoice and the completion of a
relatively simple ATR form. Other than its relative simplicity,
the ATR also constitutes an advantage over the other existing
preferential agreements (for example over the certificates applicable
to other non-EU countries) in that the qualification for "free
circulation" is valid irrespective of the "origin"
of the goods; this, facilitating re-exportation from the UK. Now
most Chambers of Commerce in the UK are authorised to certify
ATR documents.
3.2 Areas that need progress
Reducing Administrative Barriers
Although very big progress has been made in Turkey in reducing
administrative barriers to business set up, some foreign businesses
still point out to the need of reducing start up costs and streamline
business registration; specifically to reduce the time and cost
of licensing, both for general and for sector-specific licenses.
Factors that are claimed to complicate licensing are cited as
multiplicity of licenses overlapping responsibilities of several
agencies and municipalities and requests for too much documentation.
Such requests should be complied and presented to the authorities
in a systematic manner.
Contract Enforcement
Since 2000, Turkish authorities and the judiciary have taken
important steps to speed the resolution of commercial disputes.
Further reforms are suggested to reduce backlogs in the commercial
courts and enforcement proceedings. Such requests should be complied
and presented to the authorities in a systematic manner.
UK visas for Turkish Businessmen
There are delays and difficulties in obtaining a UK visa
for Turkish businesspersons who may have to meet tight business
schedules.
Restriction for Exports from Turkey
While the above mentioned preferential ATR procedure for
exports-imports is applicable to most industrial goods, all Coal
products, all Steel products and most Agricultural products do
not qualify for ATR preference. In July 2007, there was progress
regarding the qualification of additional agricultural products
for ATR preference. A new EU commission regulation opened annual
tariff quotas for certain agricultural products and allowed the
application of ATR preference. This is a mixed development, because
while Duty free tariff was brought to certain products under ATR
preference, quotas were also introduced.
Market Information
To assist exporters' and investors' enquiries with speed
and accuracy, an extensive central database should be set up.
This will facilitate potential exporters' and investors' market
research and product development and search for partnerships before
entry into the market. The database would have varied and wide
information, so that if a company of a particular sector or a
product of a particular category is sought, the database should
provide not only sector or category data, but also:
— Information about its sub-sectors and sub-products.
— Government circulars and decrees related with
the sector or the product.
— Reports and studies about the sector or the product.
Such a task would require the cooperation of agencies of
both governments, Chambers of commerce, Sector and Trade Associations
and other institutions. Governmental agencies may have to be involved
because there may be a need to formulate the accessibility of
third parties to this database; that is which information shall
be open to the public, and which shall be accessible, on membership
basis.
3.3 Opportunities in trade and investment
The fast growing economy and the demanding big domestic market
of Turkey require new services, products and investments. Priority
sectors that present opportunities for UK businesses include:
Energy/Power
— As an energy provision initiative, the Turkish
parliament passed a bill in November 2007 for the establishment
and operation of nuclear power plants and the sale of energy in
Turkey. The Turkish Electricity Trade and Contract Corporation
will open a tender for construction of nuclear power plants.
— Privatisation Administration of Turkey has listed
electricity distribution and generation assets in the Privatisation
portfolio. Turkey has rich lignite reserves and arranging auctions
for transferring the State reserves to private sector provided
that new investors commit to build new electricity generation
plants.
— Construction of new hydroelectric power plants
is encouraged.
— Current lignite-fired power plants need environmental
friendly investments especially in terms of coal-cleaning and
CO filtering.
Agri-Business: In view of the Memorandum of Understanding
signed in March 2007, Turkey can become a destination for agri-business,
particularly in relation to livestock, crop development, fisheries,
post harvest technology, and R&D. Also, in soil and environment
quality, plant breeding materials, crops, food supply chain technologies,
livestock-meat and dairy supply.
Banking: In line with the practice in the countries that
recently joined EU, major mergers and acquisitions in the Turkish
banking system has started over the last few years. Further foreign
investor interest should be expected in the whole financial industry.
Transportation/Transport Infrastructure (Roads, Rail and
Airports),
Renovation/Construction Projects/Construction Materials
Engineering (Security market, electronic equipments; cash-in-transit
equipment, hand-held and walk-through metal detectors, CCTV, access
control and intruder).
Insurance: The size of the insurance sector in Turkey
is small compared to the EU. As an outcome of progress and convergence,
Insurance requirements will be more of a norm, and opportunities
in the this sector will be available for investors.
Financial, Legal and Insurance services:
Investment needed in new products, services and technologies)
Environment (Landfill sites, waste treatment, incineration)
Water (Thames Water operates the world's largest privately
financed water project)
Other Sectors
Telecommunications, Software, Education, Training, Automotive,
Textiles, Clothing, Healthcare, Medical, Pharmaceutical, Mining,
Minerals, Oil, Gas
4. TURKEY-EU RELATIONS
Accession Progress
Turkey's EU accession negotiations were launched on 20 October
2005. The accession negotiations are conducted over 33 chapters,
each Chapter describing the total body of EU law accumulated to
date under each Chapter heading. Each Chapter define the conditionality
the candidate nation must meet. So far, 10 Chapters were opened
for Turkey, 23 not yet opened. One Chapter was closed (completed)
in June 2006, but, in December 2006, EU froze talks on eight chapters
and announced that no chapters would be closed until a resolution
is found regarding the dispute over Cyprus. (For the full list
of the status of the Chapters, please see attached "Turkey-EU
Chapters" file). France and Germany have proposed offering
a "privileged partnership" instead of full membership,
a status flatly rejected by Turkey. The Turkish government confirmed
again that no less than full membership would be acceptable and
that Turkey will continue to give top priority to keep up the
momentum of alignment and convergence with the EU. In the setting
of a diversified new Europe, the EU membership of Turkey has become
unavoidable; it's just a matter of time. It should be pleasantly
noted here that the UK has been and is supporting full membership
status for Turkey.
Effects of Turkey-EU relations to date
Current EU-Turkey relations and associations, particularly
the Customs Union, have constituted a strong incentive for the
Turkey to pursue the EU economic and other criteria. In particular,
the Customs Union played a significant role in:
— The restructuring of Turkey's foreign trade regime.
— Increasing the traditional trade with EU member
states and non-EU states.
— Increasing the pace of Turkey's opening to world
trade.
— Opening the way to Turkey's new regional trade
structuring.
Subsequent to the changes brought about also by the Customs
Union, the EU constituted about 50% of Turkish foreign trade and
82% of the FDI becoming Turkey's biggest trade and investment
partner, contributing to a further increase in bilateral EU-Turkey
trade, which reached 85 billion Euro in 2006, making Turkey the
EU's seventh trading partner. The share of foreign trade in the
GNP rose to 55.2% in 2004, compared to 30.6% in 1994.
These positively results are in most part due to the effects
of Turkey-EU relations to date. They are also the evidence of
Turkey's progress in reforms towards the convergence with the
EU economic criteria. The EU accession process will continue to
be a driving force for Turkey's reform efforts. EU accession negotiations,
which are the key driving force for change in Turkish business
environment, give rise to a lot of business opportunities in Turkey.
In summary, the effects of Turkey-EU relations to date have been
beneficial to trade between Turkey and EU, and to the trade between
the UK and Turkey.
Effect of Turkey's EU membership
In this report, the effect of Turkey's EU membership to the
UK and Turkey are reviewed from trade, investment and general
economics perspectives only; the political, cultural and other
ramifications of full membership are not dealt here.
EU Budget Perspective
It has been pointed out that Turkey's full membership would
cause substantial asymmetric financial cross-border flows, due
to Turkey's relatively low per capita income and a huge population.
It is noted that the 1.04% of its GDP that Turkey will have to
pay towards the EU budget will be small compared to the amount
of financial resources it would receive from the budget; Turkey
becoming one of the e largest net beneficiaries. It should also
be noted however that its per capita income will rise at a higher
rate than its population. The rapid raise in per capita income
is demonstrated in the recent progress in Turkish economy and
will continue to do so as Turkish economy becomes stronger during
the convergence period with the EU.
Trade and Investment Perspective
We have already seen the mutual benefits of Europe's engagement
with Turkey as summarised in the preceding sections. For Turkey,
EU membership will further enhance its trade and investment environment
already strengthened by the pre-accession economic reforms. On
the other hand, Turkey with a stronger.and more diversified domestic
market and as a trading gateway to many neighbouring emerging
markets will offer more opportunities to the UK for export across
a wide range of sectors.
5. CONCLUSION
— This report aimed to present a review of the trends
and opportunities in respect of bilateral trade and investment
between Turkey and the UK. Also included were an assessment of
factors of strength and future prospects in trade and investment
between the two countries, identification of areas that need progress,
the role of Governmental authorities and the current relations
between Turkey and the EU.
— Turkey and the United Kingdom share many common
goals and ties on a wide range of international matters and the
relationship between the two countries has been and will continue
to be of crucial and growing importance in trade and other areas.
In both countries there are governmental.
— For Turkey, UK is a major trade partner, and for
UK, Turkey is an important trade partner. The trade and investment
between the two countries have reached significant volumes and
is growing at a considerably high rate. There are governmental
departments assisting targeted trade and investment in the respective
countries.
— Turkey's membership of major international organisations
and regional associations, and its regional relations and trade
agreements, economic potential and unique geographical location
with strong ties with near emerging markets have made itself a
major economic and political state.
— There are many reasons for doing business and
investing in Turkey; notably the success of economic reforms and
EU convergence progress witnessed by a fast developing and stable
economy, a strong international investment record and outlook,
a huge domestic market, high-skilled, competitive labour, high
quality standards, new banking regulations, state of art telecommunications
network, progress in regulatory framework, competition law and
the competition authority, privatisation, unique geographical
location and strong ties with near emerging markets, the gateway
of energy resources, simple export procedure for duty free rates
and trade facilitation.
— There are areas that need progress; reducing administrative
barriers, contract enforcement; as Turkish economy continues to
become stronger, the progress towards these targets will be speeded
up. Other areas are: restriction for exports from Turkey, UK visas
for Turkish businessmen and market information.
— There are many trade and investment opportunities
in Turkey for UK businesses in energy, power, agri-business, banking,
transport, construction engineering, insurance, financial, legal
and insurance services, environment, telecommunications, water,
ICT, software, education, training textiles, clothing, automotive,
healthcare, medical, pharmaceutical, mining, minerals, oil and
gas. Turkey's expanding economy is a big and growing market for
British business and increasingly Turkey is a source of crucial
investment in the UK.
— The effects of Turkey-EU relations to date have
been beneficial to trade between Turkey and the EU and to the
trade between the UK and Turkey. EU accession negotiations, which
have been the key driving force for change in Turkish business
environment, has given rise to a lot of business opportunities
in Turkey.
— In regards to the effects of Turkey's EU membership,
For Turkey, EU membership will further enhance its trade and investment
environment already strengthened by the pre-accession economic
reforms. On the other hand, with a stronger and more diversified
domestic market and as a trading gateway to many neighbouring
emerging markets, Turkey will offer more opportunities to the
UK for export across a wide range of sectors.
— Turkey is becoming a leading actor in global politics
and economy, and in the context of the vibrant economy of the
UK, Turkey will be a major business partner.
30 January 2008
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