RESTRICTED  
  
WT/TPR/S/439  
1 February 2023  
(23-0627) Page: 1/169 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
TÜRKIYE  
This report, prepared for the seventh Trade Policy Review of Türkiye, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Türkiye on its trade policies and practices.  
 
Any technical questions arising from this repor t may be addressed to Mark Koulen (tel. 022 739 
5224), Ricardo  Barba (tel.022  739 5088), Katie Waters (tel. 022 739 5067) , and Fatima  Chaudhri 
(tel. 022 739 6384 ). 
 
Document WT/TPR/G/ 439 contains the policy statement submitted by Türkiye.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Türkiye. This report was drafted 
in English.  
  WT/TPR/S/ 439 • Türkiye  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  9 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  14 
1.1   Main features of the economy  ................................ ................................ ....................  14 
1.2   Recent economic developments  ................................ ................................ ..................  15 
1.2.1   Monetary and exchange rate policies  ................................ ................................ ........  17 
1.2.2   Fiscal policy  ................................ ................................ ................................ ..........  19 
1.2.3   Balance of payments  ................................ ................................ ..............................  20 
1.3   Trade and investment performance  ................................ ................................ .............  20 
1.3.1   Trade in goods  ................................ ................................ ................................ ...... 20 
1.3.2   Trade in services  ................................ ................................ ................................ ... 24 
1.3.3   Foreign direct investment ................................ ................................ ........................  24 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  27 
2.1   General framework  ................................ ................................ ................................ ... 27 
2.2   Trade policy formulation and objectives  ................................ ................................ ....... 30 
2.3   Trade agreements and arrangements  ................................ ................................ ..........  31 
2.3.1   WTO ................................ ................................ ................................ ....................  31 
2.3.2   Regional and preferential trade agreements  ................................ ...............................  32 
2.3.2.1    Regional trade agreements  ................................ ................................ ...................  32 
2.3.2.1.1    RTA developments over the review period  ................................ ............................  33 
2.3.2.2    Preferential trade arrangements  ................................ ................................ ............  37 
2.3.3   Other agreements and arrangements  ................................ ................................ ........  38 
2.4   Investment regime  ................................ ................................ ................................ ... 38 
2.4.1   Overview and framework for FDI  ................................ ................................ ..............  38 
2.4.2   Investment policy and promotion  ................................ ................................ .............  39 
2.4.3   Investment incentive schemes  ................................ ................................ .................  39 
2.4.4   Investment zones  ................................ ................................ ................................ .. 41 
2.4.4.1    Technology Development Zones (TDZs)  ................................ ................................ . 42 
2.4.4.2    Organized Industrial Zones  ................................ ................................ ...................  42 
2.4.4.3    Free Zones (FZs)  ................................ ................................ ................................  43 
2.5   E-commerce developments  ................................ ................................ ........................  44 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  46 
3.1   Measures directly affecting imports  ................................ ................................ .............  46 
3.1.1   Customs procedures, valuation, and requirements  ................................ ......................  46 
3.1.1.1    Customs procedures  ................................ ................................ ............................  46 
3.1.1.2    Trade facilitation  ................................ ................................ ................................ . 48 
3.1.1.3    Customs valuation  ................................ ................................ ...............................  49 
3.1.2   Rules of origin  ................................ ................................ ................................ ....... 49 
3.1.3   Tariffs  ................................ ................................ ................................ ..................  49 
3.1.3.1    Applied MFN duties  ................................ ................................ ..............................  49 WT/TPR/S/ 439 • Türkiye  
 
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  3.1.3.2    WTO bound duties  ................................ ................................ ...............................  54 
3.1.3.3    Tariff reductions and exemptions  ................................ ................................ ...........  55 
3.1.3.4    Preferential tariffs  ................................ ................................ ...............................  55 
3.1.3.5    Other duties and charges (ODCs)  ................................ ................................ ..........  56 
3.1.3.6    Tariff rate quotas (TRQs)  ................................ ................................ ......................  57 
3.1.4   Other charges affecting imports  ................................ ................................ ...............  57 
3.1.4.1    Value added tax  ................................ ................................ ................................ .. 57 
3.1.4.2    Special Consumption Tax  ................................ ................................ .....................  59 
3.1.4.3    Digital Services Tax  ................................ ................................ .............................  60 
3.1.4.4    Strip stamps for alcoholic beverages and tobacco products  ................................ ........  60 
3.1.4.5    Other taxes an d charges on imports  ................................ ................................ ...... 60 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ ...........................  61 
3.1.5.1    Import licensing  ................................ ................................ ................................ .. 62 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ...............  63 
3.1.6.1    Anti-dumping and countervailing measures  ................................ .............................  63 
3.1.6.2    Safeguard measures  ................................ ................................ ............................  65 
3.1.7   Other measures affecting imports  ................................ ................................ ............  66 
3.1.7.1    Local content measures  ................................ ................................ .......................  66 
3.2   Measures directly affecting exports  ................................ ................................ .............  67 
3.2.1   Customs procedures and requirements  ................................ ................................ ..... 67 
3.2.2   Taxes, charges, and levies  ................................ ................................ ......................  69 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  69 
3.2.3.1    Export prohibitions  ................................ ................................ ..............................  69 
3.2.3.2    Export quotas  ................................ ................................ ................................ ..... 70 
3.2.3.3    Export licensing  ................................ ................................ ................................ .. 70 
3.2.3.3.1    Export support and promotion  ................................ ................................ ............  70 
3.2.4   Export finance, insurance, and guarantees  ................................ ................................  72 
3.3   Measures affecting production and trade  ................................ ................................ ...... 74 
3.3.1   Incentives  ................................ ................................ ................................ ............  74 
3.3.1.1    Introduction  ................................ ................................ ................................ ....... 74 
3.3.1.2    TÜBITAK support schemes  ................................ ................................ ....................  74 
3.3.1.3    KOSGEB support schemes  ................................ ................................ ....................  77 
3.3.1.4    WTO notifications on subsidies  ................................ ................................ ..............  79 
3.3.2   Standards and other technical requirements  ................................ ..............................  80 
3.3.2.1    Legal and institutional framework  ................................ ................................ ..........  80 
3.3.2.2    Standards  ................................ ................................ ................................ ..........  82 
3.3.2.3    Technical regulations  ................................ ................................ ...........................  82 
3.3.2.4    Conformity assessment and inspection  ................................ ................................ ... 83 
3.3.2.5    Market surveillance  ................................ ................................ .............................  83 
3.3.2.6    Labelling requirements  ................................ ................................ .........................  84 WT/TPR/S/ 439 • Türkiye  
 
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  3.3.2.7    WTO and bilateral agreements  ................................ ................................ ..............  84 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .. 85 
3.3.3.1    Legal and institutional framework  ................................ ................................ ..........  85 
3.3.3.2    Developments over the review period  ................................ ................................ .... 85 
3.3.3.3    Genetically modified organisms  ................................ ................................ .............  87 
3.3.3.4    WTO, regional, and bilateral agreements  ................................ ................................  87 
3.3.4   Competition policy and price controls  ................................ ................................ ........  88 
3.3.4.1    Price controls  ................................ ................................ ................................ ..... 88 
3.3.4.2    Competition policy  ................................ ................................ ..............................  89 
3.3.4.2.1    Legal and institutional framework  ................................ ................................ ....... 89 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............  92 
3.3.5.1    State trading  ................................ ................................ ................................ ...... 92 
3.3.5.2    State -owned enterprises  ................................ ................................ ......................  92 
3.3.5.2.1    Public economic enterprises under the MoTF portfolio  ................................ ............  92 
3.3.5.2.2    SOEs under the privatization portfolio ................................ ................................ .. 93 
3.3.5.2.3    SOEs under the Türkiye Wealt h Fund  ................................ ................................ .. 93 
3.3.5.2.4    Other SOEs  ................................ ................................ ................................ ..... 94 
3.3.5.3    Privatization  ................................ ................................ ................................ ....... 95 
3.3.6   Government procurement  ................................ ................................ .......................  96 
3.3.6.1    Basic legal and institutional framework  ................................ ................................ ... 96 
3.3.6.2    Procurement market and statistics  ................................ ................................ .........  98 
3.3.6.3    National preferences  ................................ ................................ ............................  99 
3.3.6.4    Recent developments  ................................ ................................ ..........................  99 
3.3.7   Intellectual property rights  ................................ ................................ ....................  100 
3.3.7.1    Legal and institutional framework  ................................ ................................ ........  102 
3.3.7.2    International agreements and conventions  ................................ ............................  105 
3.3.7.3    Border measures and enforcement  ................................ ................................ ...... 105 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  109  
4.1   Agriculture  ................................ ................................ ................................ ............  109 
4.1.1   Features  ................................ ................................ ................................ .............  109 
4.1.2   Production  ................................ ................................ ................................ ..........  109 
4.1.3   Trade  ................................ ................................ ................................ .................  111 
4.1.3.1    Overview ................................ ................................ ................................ .........  111 
4.1.4   Institutional and legal framework  ................................ ................................ ...........  113 
4.1.5   Agriculture policy  ................................ ................................ ................................ . 114 
4.1.6   Market access  ................................ ................................ ................................ ..... 115 
4.2   Support programmes  ................................ ................................ ..............................  117 
4.2.1   Export subsidies  ................................ ................................ ................................ .. 120 
4.3   Manufacturing  ................................ ................................ ................................ ........  121 
4.3.1   Features  ................................ ................................ ................................ .............  121 WT/TPR/S/ 439 • Türkiye  
 
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  4.3.2   Trade  ................................ ................................ ................................ .................  122 
4.3.3   Policy and institutional developments  ................................ ................................ ...... 123 
4.3.4   Automotive  ................................ ................................ ................................ .........  123 
4.3.5   Chemicals  ................................ ................................ ................................ ...........  124 
4.3.6   Textiles and clothing  ................................ ................................ ............................  125 
4.4   Services  ................................ ................................ ................................ ................  126 
4.4.1   Financial services  ................................ ................................ ................................ . 126 
4.4.1.1    Features  ................................ ................................ ................................ ..........  126 
4.4.1.2    Institutional and legal framework  ................................ ................................ ........  127 
4.4.1.3    Specific sectors  ................................ ................................ ................................ . 127 
4.4.1.3.1    Banking  ................................ ................................ ................................ ........  127 
4.4.1.3.2    Securities  ................................ ................................ ................................ ...... 132 
4.4.2   Telecommunications  ................................ ................................ .............................  134 
4.4.2.1    Features  ................................ ................................ ................................ ..........  134 
4.4.3   Institutional and legal framework  ................................ ................................ ...........  136 
4.4.4   Transport services  ................................ ................................ ...............................  138 
4.4.4.1    Main features  ................................ ................................ ................................ ... 138 
4.4.4.2    Maritime transport  ................................ ................................ ............................  139 
4.4.4.3    Road ................................ ................................ ................................ ...............  140 
4.4.4.4    Air transport  ................................ ................................ ................................ ..... 141 
4.4.5   Health services  ................................ ................................ ................................ .... 144 
4.4.5.1    Features  ................................ ................................ ................................ ..........  144 
4.4.5.2    Policy and regulatory framework  ................................ ................................ .........  145 
4.4.5.3    Health tourism subsector  ................................ ................................ ...................  146 
4.4.6   Tourism services  ................................ ................................ ................................ .. 148 
4.4.6.1    Features  ................................ ................................ ................................ ..........  148 
4.4.6.2    Institutional and legal framework  ................................ ................................ ........  149 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 153  
 
CHARTS  
 
Chart 1.1 Gross domestic product by economic activity (at basic current prices), 2021  ...............  14 
Chart 1.2 Merchandise trade by main products, 2016 and 2021  ................................ ..............  22 
Chart 1.3 Direction of merchandise trade, 2016 and 2021  ................................ ......................  23 
Chart 1.4 FDI stock and flows, 2015 -21 ................................ ................................ ..............  26 
Chart 3.1 Distribution of MFN tariff rates, 2015 and 2022  ................................ ......................  53 
Chart 3.2 Average applied MFN tariff rates, by HS section, 2015 and 2022  ...............................  53 
Chart 3.3 Anti -dumping measures in force, by product, 30  June 2022 ................................ ...... 65 
Chart  3.4 Charges for the use of intellectual property rights, 2013 -21 ................................ ... 101 
Chart 3.5 The nu mber of applications for action, 2017 -21 ................................ ....................  106 
Chart 3.6 IPR seizures, 2017 -21 ................................ ................................ ......................  106 WT/TPR/S/ 439 • Türkiye  
 
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  Chart  4.1 Trade in agriculture, 2016 -21 ................................ ................................ ............  112 
Chart  4.2 Support to agriculture, 2016 -21 ................................ ................................ .........  119 
Chart  4.3 SMEs' and large -scale enterprises' participation in the manufa cturing  
industry by technology level, 2020  ................................ ................................ ...................  122 
Chart  4.4 Structure of financial services regulation  ................................ .............................  127 
Chart  4.5 Tourism: Incoming tourists and domestic visitors by purpose of visit, 2021  ..............  149 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2016 -21 ................................ .........................  16 
Table 1.2 Balance of payments, 2016 -21 ................................ ................................ .............  20 
Table 1.3 Trade in services, 2016 -21 ................................ ................................ ..................  24 
Table 1.4 FDI stock by sector and origin, 2016 -21 ................................ ................................  25 
Table 2.1 Türkiye's participation in WTO dispute settlement cases, J anuary 2016  
to October 2022  ................................ ................................ ................................ ..............  32 
Table 2.2 Entry into force of new, and expansion of existing RTAs, 2016 -22 .............................  34 
Table 2.3 Overview of Türkiye's investment incentive schemes  ................................ ...............  40 
Table 2.4 Overview of fixed capital investments under the incentive schemes, 2018  
to August 2022  ................................ ................................ ................................ ................  41 
Table 2.5 Overview of Technology Development Zones, 2016 -21 ................................ ............  42 
Table 2.6 Overview of Free Zones, 2016 -21 ................................ ................................ .........  44 
Table 3.1 Tariff lines subject to AFLs, 2022  ................................ ................................ ..........  50 
Table 3.2 Tariff lines subject to ACDs, 2022  ................................ ................................ .........  51 
Table 3.3 Structure of MFN tariffs in Türkiye, 2015 and 2022  ................................ .................  52 
Table 3.4 Tariff lines where applied tariff rates exceed bound tariff rates, 2022  .........................  54 
Table 3.5 Key features of concessional entry schemes, 2022  ................................ ..................  55 
Table 3.6 Summary analysis of the Turkish preferential tariffs, 2022  ................................ ....... 56 
Table 3.7 Türkiye's TRQs on industrial products, 2022  ................................ ...........................  57 
Table  3.8 VAT rates, 2022  ................................ ................................ ................................ . 58 
Table 3.9 New VAT exemptions, 2016 to 2022  ................................ ................................ ..... 58 
Table 3.10 Strip stamp price list, 2015 and 2002  ................................ ................................ .. 60 
Table 3.11 Import prohibitions, 2022  ................................ ................................ ..................  61 
Table 3.12 Imports requiring a licence, 2022  ................................ ................................ ....... 62 
Table 3.13 Anti -dumping original investigations and measures, 1  January  2016-1 July 2022 ....... 64 
Table 3.14 Anti -dumping measures in force, by trading partner/region,  
January 2016 -July 2022  ................................ ................................ ................................ .... 64 
Table 3.15 Safeguard activity, 1  January  2016-1 September  2022 ................................ ..........  65 
Table 3.16 FIT rates and local content support under the Renewable Energy Law and  
Presidential Decree No.  3453, 1  July 2021-December 2025  ................................ ....................  67 
Table  3.17 Türk Eximbank overview, credits, loans, and export credit insurance, 2016 -21 ..........  73 
Table 3.18 Key features of TÜBITAK support schemes  ................................ ...........................  75 
Table  3.19 Key features of KOSGEB support schemes, 2022  ................................ ...................  78 WT/TPR/S/ 439 • Türkiye  
 
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  Table 3.20 Files concluded by the TCA, 2016 -21 ................................ ................................ ... 91 
Table 3.21 Capital injections to SOEs, 2016 -21 ................................ ................................ .... 92 
Table 3.22 Public economic enterprises under the MoTF portfolio  ................................ ............  93 
Table  3.23 SOEs under the privatization portfolio, October 2022  ................................ .............  93 
Table  3.24 TWF Portfolio of companies, 2022  ................................ ................................ ....... 94 
Table  3.25 Privatization activity, 2016 -22 ................................ ................................ ............  95 
Table 3.26 Procurement values, 2016 -21 ................................ ................................ ............  98 
Table 3.27 Domestic preferences, 2016 -21 ................................ ................................ ..........  98 
Table 3.28 Major procurement suppliers, 2016 -21 ................................ ................................  98 
Table 3.29 Appeals to the Public Procurement Authority, 2016 -21 ................................ ...........  99 
Table 3.30 GII rankings for Türkiye, 2019 -2022 ................................ ................................ . 100 
Table  3.31 Applications for trademarks, industrial designs, and patents, and patents granted, 
2017-21 ................................ ................................ ................................ .......................  101 
Table 3.32 Nationwide operations related to copyright crimes carried out by police, 2020 -22 .... 108 
Table 3.33 Nationwide operations related to industrial property crimes carried out by police, 
2020-22 ................................ ................................ ................................ .......................  108 
Table  4.1 Major crop production, 2016 -21 ................................ ................................ .........  110 
Table  4.2 Major animal production, 2016 -20 ................................ ................................ ...... 111 
Table  4.3 Exports of agricultural products, 2016 -21 ................................ ............................  112 
Table  4.4 Imports of agricultural products, 2016 -21 ................................ ............................  113 
Table  4.5 Agriculture in the Eleventh Development Plan, 2019 and 2023  ................................  114 
Table  4.6 Autonomous tariff rate quotas, 2016 -22 ................................ ..............................  116 
Table  4.7 Türkiye agriculture support programmes, 2021  ................................ ....................  117 
Table  4.8 Total PSE and SCT values for selected commodities, 2016 -21 ................................ . 119 
Table  4.9 Türkiye's export subsidies on agricultural products, as notified to the 
SCM Committee, 2016 -21 ................................ ................................ ...............................  120 
Table  4.10 Manufacturing's contribution to GDP and employment, 2016 -21 ............................  121 
Table  4.11 Financial intermediary institutions statistics, 2016 -21 ................................ ..........  126 
Table  4.12 Banking sector – main indicators, 2019 -21 ................................ .........................  128 
Table  4.13 Top 10 banks by total assets, 2021  ................................ ................................ ... 128 
Table  4.14 Insurance sector – number of companies, 201 9-22 ................................ .............  130 
Table  4.15 Main indicators – Borsa Istanbul  ................................ ................................ ....... 132 
Table  4.16 Institutions in the securities market, December  2021 ................................ ..........  133 
Table  4.17 Telecommunications indicators, 2016 -21 ................................ ...........................  134 
Table  4.18 Interconnection fees, 2022 -24 ................................ ................................ .........  135 
Table  4.19 Basic indicators for transport services sector, 201 6-21 ................................ .........  138 
Table  4.20 Trade by mode of transport, 2016 -22 ................................ ................................  138 
Table  4.21 National fleet, 2016 -21 ................................ ................................ ...................  139 
Table  4.22 Air transport statistics, 2016 -21 ................................ ................................ ....... 142 
Table  4.23 Air transport agreements concluded between 2016 and 2021  ................................  143 
Table  4.24 Overview of health services sector, 2016 -20 ................................ ......................  144 WT/TPR/S/ 439 • Türkiye  
 
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  Table  4.25 Structure of healthcare sector, 2016 -21 ................................ .............................  144 
Table  4.26 Health tourism statistics, 2016 -21 ................................ ................................ .... 146 
Table  4.27 Health tourism incentives, 2022  ................................ ................................ ....... 147 
Table  4.28 Main tourism indicators, 2016 -21 ................................ ................................ ...... 148 
 
BOXES  
 
Box 3.1 Goods subject to export registration  ................................ ................................ ........  68 
Box 3.2 Government bodies and their areas of activity on TBT matters  ................................ .... 80 
 
APPENDIX TABLES  
 
Table  A1.1 Merchandise exports by group of products, 2016 -21 ................................ ............  153 
Table  A1.2 Merchandise exports by destination, 2016 -21 ................................ .....................  154 
Table  A1.3 Merchandise imports by group of products, 2016 -21 ................................ ...........  155 
Table A1.4 Merchandise imports by or igin, 2016 -21 ................................ ............................  156 
Table  A2.1 Notifications made by Türkiye to the WTO, 1  January  2016 to 31 October  2022 ....... 157 
Table  A3.1 Tax revenue, 2016 -21 ................................ ................................ ....................  159 
Table  A3.2 MFN applied tariff summary, 2022  ................................ ................................ .... 160 
Table  A3.3 Export prohibitions notified to the WTO, 2022  ................................ ....................  161 
Table  A3.4 Exports requiring a licence, 2022  ................................ ................................ ...... 162 
Table  A3.5 Communiqués on product safety and inspection, 2022  ................................ .........  164 
Table  A3.6 Summary of Türkiye's protection of IPRs, 2022  ................................ ...................  166 
 
  WT/TPR/S/ 439 • Türkiye  
 
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  SUMMARY  
1. The period covered by this Review1 witnessed important changes in the structure of 
Türkiye's  economy and the role of trade. While the services sector is the main contributor to GDP, 
with a share of 59.0% in 2021 (61.2% in 2016), during 2016 -21, there was a 6 percentage  point 
increase in the share of the manufacturing sector in GDP, reaching 24.8% in 2021.  
2. Trade as a share in GDP increased substantially, from 48.0% in 2016 to 69.8% in 2021. The 
relatively big size of the economy and Türkiye's strategic loca tion with close access to large markets 
and suppliers have helped firms to participate in global value chains ( GVCs ) and exploit economies 
of scale and to export. Exports of goods grew 47.2% in value terms between 2016 and 2021 while 
imports of goods incre ased by 31.9% over the same period. In 2021, base metals and articles thereof 
and textiles and textile articles represented about one third of Türkiye's total merchandise exports 
while almost 40% of its imports were petroleum and mineral products, and mach inery and electrical 
equipment. The EU -27 remains Türkiye's largest trading partner, accounting for 41.9% and 31.5% 
of total merchandise exports and imports, respectively. Türkiye remains a net exporter of services, 
an important source of foreign exchange.  As a result of the COVID -19 pandemic, the services surplus 
declined significantly in 2020 before recovering in 2021. The most important services export sectors 
are travel and transport, which in 2021 accounted for, respectively,  43.4% and 39.8% of total 
services exports.  
3. Over the review period, Türkiye had positive GDP growth rates despite the pandemic. Indeed, 
Türkiye was one of the few countries with a positive growth performance in 2020, estimated at  1.9%, 
mainly due to large interest rate cuts, rapid monetary and credit expansion, and extensive liquidity 
support. In 2021, Türkiye's real GDP growth was 11.4%, the highest rate among G20  countries, 
boosted by high consumer spending and strong exports. According to the authorities, monetary 
policy ai ms to enable Turkish firms to increase investment, production, and export capacity so as to 
benefit from recent international trade developments that are favourable to Türkiye.  Nonetheless, 
the loose monetary strategy adopted has also caused deteriorating macro -financial conditions, 
particularly record depreciation of the lira, and record inflation that reached 85.5% in October  2022. 
At the same time, exports of goods have grown considerably over the last few years supported by 
external demand, with Türkiye  benefitting from supply chain disruptions elsewhere and its strong 
export capacity.  
4. In March 2021, Türkiye's Economic Reform Package (ERP) 2021 -23 was launched to tackle 
inflation, promote de-dollarization of the economy , and place the country among the w orld's top  10 
economies in 2023 by fostering local and foreign investment, production, employment, exports, and 
current account surplus. According to the authorities, the ERP is being implemented to ensure 
macroeconomic stability, increase competition and efficiency in the economy, take advantage of the 
opportunities that emerged after the pandemic, encourage high value -added production, and 
promote further integration into GVCs.  
5. During the review period, Türkiye  took steps to facilitate foreign direct inve stment (FDI), 
notably through the Investment Office of the Presidency and its FDI Strategy 2021 -23, and the 
development of public-private partnerships for major infrastructure projects. Türkiye has also been 
benefitting from its position as a relatively lo w-cost manufacturing hub close to EU markets. 
Nonetheless, Türkiye 's stock of FDI decreased in  2021, after peaking in 2020, despite the global 
economic uncertainty caused by the pandemic. A ccording to the OECD, recent unorthodox economic 
policies have discouraged investors, and Türkiye would also benefit from reinforcing the governance 
environment as envisaged in the Eleventh Development Plan  (2019 -23), which requires 
improvements, inter alia, regarding rule of law, judicial credibility, and corruption.  
6. Amendments to the Turkish Constitution in 2018 resulted in the introduction of a presidential 
system of government. Executive power has been concentrated in the Presidency with the abolition 
of the Council of Ministers and the Office of Prime Minister. Th e President, inter alia, has the authority 
to make high -level appointments and issue presidential decrees under certain conditions. There have 
been changes to the legislative and judicial branches of government , as well as to the legislative 
process and th e hierarchy of laws. Trade and investment policies are now largely regulated through 
presidential decrees and decisions. In 2018, the President created new policy councils and 
 
1 The review period covers January 2016 to end -October 2022, subject to data availability.  WT/TPR/S/ 439 • Türkiye  
 
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  restructured several government ministries and agencies. This included merging o f the Ministry of 
Customs and Trade and the Ministry of Economy to form the Ministry of Trade.  
7. Turkish trade policy as set out in its Exports Strategy for 2023 and its Eleventh Development 
Plan (2019 -23) is geared towards an export -oriented transformation of the Turkish economy. It 
seeks to increase exports of high value -added goods as well as services , improve Türkiye's position 
in the hierarchy of GVCs , and make the country a regional hub for trade in e -commerce.  
8. With respect to its WTO -related activities , Türkiye accepted the  2014 Protocol concerning the 
Trade Facilitation Agreement (TFA) in 2016. It supports the Buenos  Aires Declaration on Women and 
Trade and actively participates in several Joint Statement Initiatives and in the Trade and 
Environmental Sustainability Structured Discussions. Over the review period, Türkiye was involved 
in four new dispute settlement cases as complainant and in three cases as respondent. It maintained 
a solid record of notifications to the WTO, with some outstanding in the  areas of agriculture, 
intellectual property rights , and regional trade agreements.  
9. Türkiye has 26 RTAs in force with 63 trading partners. The Türkiye -EU Customs  Union (in force 
since 1996) constitutes the main legal basis for Türkiye's regional trade agre ements (RTAs) and 
GSP scheme since it has provisions obliging Türkiye to align its commercial policy with the 
European  Union 's Common Commercial Policy. This alignment has become more challenging from 
the Turkish perspective as a consequence of the Europea n Union 's conclusion of deep and 
comprehensive RTAs with third countries. Modernization of the Customs Union agreement has not 
progressed and Türkiye's accession negotiations to the European  Union  have been at a standstill 
since 2018. Nevertheless, legisla tive alignment with the EU acquis  continues in areas such as 
technical regulations and sanitary and phytosanitary measures.  
10. Over the review period, new RTAs entered into force with the Republic of Moldova, the 
Faroe  Islands, Singapore, Kosovo2, the Boliva rian Republic of Venezuela, the United  Kingdom, 
Azerbaijan, the Organi sation of Islamic Cooperation Trade Preferential System partners , and the 
Developing -8 members. Moreover, some existing RTAs were expanded to include services, 
investment, and/or increas ed agricultural liberalization. Until 2017, Türkiye's RTAs only covered 
goods , and a key trend during this review period is the inclusion of services provisions and 
liberalization commitments. Türkiye's RTA with Jordan was terminated in 2018. While Türkiye  applies 
the same GSP rules as the European  Union , it narrowed the scope of beneficiary countries and 
product groups in  2018, including terminating GSP+ preferences. In 2022, it provided unilateral 
preferences to 66 economies, compared with 88 in 2015. Ove rall, preferences granted under  RTAs 
are more extensive than under unilateral preference schemes.  
11. There have been no changes to FDI restrictions in Türkiye since its previous Review . The 
restrictions  apply to 12 sectors : TV broadcasting, civil aviation, ma ritime transport, port services, 
fishing, accounting, auditing and book -keeping services, financial services, mining, real -estate 
trading, electricity, and education.  
12. Türkiye provides support to business through various schemes or special zones, inter alia, to 
attract investment; promote regional development; encourage domestic manufacturing of specific 
products; stimulate research and development; support small and medium -sized 
enterprises  (SMEs) ; and promote exports. In 2016, Türkiye operationalized a pro ject-based 
investment incentive scheme that supports the production of high value -added or strategic products. 
Other support schemes have been modified.  
13. E-commerce -related developments over the review period included legislative reforms to 
ensure fair competition in digital markets/e -commerce and t o protect data , new fiscal and export 
incentive measures , the introduction of data localization and product safety requirements , new 
registration and data collection requirements , and the introduction of a trust stamp system.  
14. Over the review period , Türkiy e's Single Window System, which allows traders to obtain the 
required import documents and licences through a single point , was extended to include more 
documents used in import and export transactions. Pre -arrival processing has been implemented for 
 
2 References to Kosovo shall be understood to be in the context of UN Security Council Resolution 1244 
(1999).  WT/TPR/S/ 439 • Türkiye  
 
- 11 - 
 
  impor ts of raw and semi -finished goods arriving by air and sea to speed up customs clearance. A 
Port Single Window System was established in July 2018 , and an electronic portal was launched for 
the submission and issuance of advance rulings on tariff classifica tion. A Coordination Committee on 
Trade Facilitation was established to enable the implementation of the TFA and other international 
regulations on simplification of border procedures. Türkiye continues to engage in efforts to facilitate 
trade with borderi ng nations, through simplified customs procedures and through cooperation 
protocols/agreements , and to monitor the import prices of selected goods under its import 
surveillance mechanism. Surveillance certificates must be obtained for the import of certain  
products , which involves the provision of additional data and/or information. These  data are used to 
evaluate domestic producers' claims of injury that might lead Türkiye to initiate a safeguard or 
anti-dumping investigation or to monitor if there is circ umvention of trade remedy measures already 
in place.  
15. Türkiye applies three different types of duty on imports only: (i)  customs duties; (ii)  additional 
financial liabilities (AFLs); and (iii)  additional customs duties (ACDs). The combination of these 
different types of duty comprises Türkiye's MFN tariff, and marks a significant change from the 
situation at the time of Türkiye's previous Review when the MFN applied tariff was calculated as 
being composed of the customs duty and the "Fund as Agricultural Com ponent" as applied to 
processed agricultural products. Consequently, Türkiye's average applied MFN tariff is considerably 
higher in 2022 than at the time of its previous Review. Its simple average MFN applied tariff rate, 
including the customs duty, AFLs, and ACDs, was 19.6% in 2022, compared with 12.8% in  2015. 
International tariff peaks now affect 36.2% of tariff lines, up from 16.1% in 2015. Applied rates 
range from 0 to 225%. There has also been a reduction in the number of duty -free lines from 23.5% 
in 2015 to 18.8% in 2022.  
16. While average MFN tariff rates remain high on live animals, vegetable products, and prepared 
food and beverages, reflecting the situation at the time of Türkiye's previous Review, the inclusion 
of ACDs in the applied tariff has sign ificantly increased tariff protection in other HS sections, notably 
hides and skins, pulp and paper, textiles and articles, footwear and headgear, and miscellaneous 
manufactured products. Türkiye has bound 50.4% of its tariff lines at rates ranging from 0 to 225%. 
Applied MFN rates exceed bound rates in certain instances.  
17. Major changes to other types of internal tax falling on imports (and domestic products) 
included a substantial increase of the Special Consumption Tax on alcoholic beverages and strip 
stamp prices for tobacco and alcohol, as well as the introduction of a Digital Services Tax in 2020 , 
which is applied to revenue generated from the sale of specific digital services.  
18. Türkiye continues to be a major user of trade remedies. As of July 2022, 131 anti-dumping 
definitive measures, affecting imports from 23 economies, notably China, were in force. Textile 
products accounted for most of these measures, followed by mining and metals , and plastic and 
rubber products. At this time, it continued to enforc e one countervailing measure, following a sunset 
review, and enforced five final safeguard measures.  
19. Over the review period, changes to Türkiye's export regime included an increase in the goods 
subject to export registration; the launch of a paperless cust oms project and an automation system 
for certificates of origin and movement certificates; the implementation of export bans, mostly 
temporary, on some food products to stabilize domestic prices of agricultural products; and the 
introduction and removal of  non-automatic licensing requirements on lemons, onions , and potatoes, 
and on personal protective and certain medical equipment and devices. Export taxes are applied to 
hazelnuts, raw hides and skins, and wet -blue products.  
20. Türk Eximbank, a state -owned ban k, continues to be the sole official provider of export credit. 
In 2021, it supported 14,092  exporting companies, providing USD  22.5 billion in credit and 
USD 23.5 billion in insurance/reinsurance. An Export Development Corporation was established in 
Octob er 2021, which is jointly owned by banks, exporters associations , and Eximbank , to help 
exporters lacking capital or collateral to access Eximbank's services.  
21. With respect to standards and technical regulations, a new Product Safety and Technical 
Regulatio ns Law entered into force in 2021, which transposes EU rules on harmonized products. A 
Presidential Decree on the Regime Regarding Technical Regulations was issued in  2022, which 
replaces previous legislation and contains new provisions on responsibilities  of exporters and WT/TPR/S/ 439 • Türkiye  
 
- 12 - 
 
  importers and fines to be applied. Various new implementing regulations have been issued. 
Additionally, a new Halal Accreditation Agency was established in 2018 to accredit halal conformity 
assessment bodies. Specific trade concerns were raised over the review period regarding energy 
labelling regulations, inspection requirements on toys, and cosmetic product requirements. Türkiye 
now requires labels and price lists of goods offered for retail sale to include a "domestic production 
logo" i f the goods are produced within Türkiye.  
22. Over the review period, Türkiye issued a handful of food -related SPS regulation s that impose 
higher than international standards. It also developed its own SPS measures in areas where no 
international standards exis t or where regulations are not harmonized with the EU acquis . The 
Biosafety Board was abolished in 2018 and responsibility for approving GMOs and GM products now 
rests with the Ministry of Agriculture and Forestry. As of end -October , there were 45 GM approvals 
for maize, soybeans , and genetically modified microorganisms. Specific trade concerns were raised 
in the WTO Committee on Sanitary and Phytosanitary measures about Turkish import restrictions on 
sheep meat, rough rice , and cows for fattening and slaughter.  
23. In 2020, Türkiye's law on the Protection of Competition underwent a major revision 
introducing, inter alia, the concept of the de minimis  principle and new provisions on settlement and 
remedies. According to the authorities, th e amendments were made with the aim of increasing the 
effectiveness of competition law instruments and ensuring compliance with EU regulations. Various 
new implementing regulations were also issued.  
24. There were significant changes to the ownership of State -Owned Enterprises (SOEs) over the 
review period , with five SOEs being transferred from the Ministry of Treasury and Finance portfolio 
to the Türkiye Wealth Fund (TWF), created in 2016. Major capital injections from the Government 
were related to increased investments in the railway company and capital transfers to the natural 
gas importing company to ensure energy supply. Privatization activity has continued, largely focused 
on energy (mainly hydroelectric power plants), maritime ports and marinas, and suga r factories. The 
TWF falls under the responsibility of the Presidency; it has expanded and diversified its portfolio to 
include 26 companies in a variety of sectors.  
25. With respect to government procurement procedures, the main developments over the review 
period were the introduction of e -tendering in 2019, and the requirement to use e -procurement for 
open and negotiated tendering procedures in 2022. The size of Türkiye's public procurement market, 
as a percentage of GDP, dropped significantly over the revie w period. Since 2016, new mandatory 
national preferences have been introduced. The percentage of international tenders where domestic 
price advantages are applied increased from 37% in 2017 to 45% in 2021. On average , 98% of 
annual procurement is from Turk ish suppliers. Türkiye is not a party to the Agreement on 
Government Procurement; it has observer status.  
26. While Türkiye is a net importer of intellectual property (IP), it has made concrete progress in 
developing its capacity for innovation as shown by imp roved rankings in international indexes. 
Moreover, the review period saw an overall growth in the use of most forms of IP. A new Industrial 
Property Code entered into force in 2017, replacing a series of laws, executive decrees , and 
regulations. It covers all matters related to trademarks, geographical signs, designs, patents, utility 
models, and traditional product names , harmonizing national legislation with EU standards and 
introducing various new provisions. The Copyright Law was amended in 2021 to refl ect the 
EU Information Society Directive and cover all works, performances, phonograms, productions , and 
broadcasts. In 2021, Türkiye ratified the WIPO  Marrakesh Treaty to Facilitate Access to Published 
Works for Persons who are Blind, Visually Impaired or  Otherwise Print Disabled.  
27. Agriculture continues to play an important role in Türkiye's economy, accounting for 5.5% 
of GDP. Trade is important to the sector; both imports and exports grew over the period 2016 -21, 
contributing to a growing trade surplus in  agricultural products with exports of USD  24.2 billion and 
imports of USD  20.2 billion in 2021. Türkiye continued to support the agriculture sector , and the 
value of support programmes doubled during the review period. Export subsidies continued to be 
granted to reduce exporters' debts (such as taxes, and telecommunications or energy costs ) to public 
corporations. There were no changes to the percentage share of products eligible to receive 
subsidies, except honey , where the share declined.  WT/TPR/S/ 439 • Türkiye  
 
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  28. SMEs continue t o play an important role in the manufacturing sector. Slightly more than 12% 
(12.3% ) of all SMEs participated in the sector, accounting for  42% of the production value. Türkiye 
is a large exporter of manufacturing goods, which accounted for 94.5% of total exports of goods 
in 2021. Key exports in the sector are machinery and transport equipment, automotive, textiles and 
clothing, chemicals, iron and steel, electronics, and jewellery. In 2021, 36% of manufacturing 
exports consisted of medium -tech products and  3% of high -tech products.  
29.  The value added of financial and insurance services activities more than doubled from  2016 
to 2020 , and the number of enterprises also increased. Bank assets are now equivalent to 127.8% 
of GDP and, according to the IMF , growth was mostly driven by state -owned banks. Between  2016 
and 20 21, foreign presence in the banking subsector increased and , as of October 2022 , 3 of the top 
10 banks are foreign owned. The banking sector is adequately capitalized with a capital adequacy 
ratio well above the levels stipulated by international standards. The ratio of non -performing loans 
to total lending stood at 3.9% in  December  2021. As of 2016 , Türkiye's risk -based capital regulations 
and liquidity coverage ratio regulation are considered by the Basel Committee as being fully in line 
with Basel III standards.  
30. The review period witnessed strong growth in the telecommunications market, as reflected in 
the substantial increases in revenue, number of subscriptions (particularly mobile and fixed 
broadband), and investments. Fixed -line services continued to be dominated by a single supplier. 
However, the market has more players in mobile and Internet services. International trade in 
telecommunications services decline d during the review period, with a particularly drastic decrease 
in imports.  
31. During the review period, the transport services sector's contribution to GDP increased slightly. 
Transport is Türkiye's largest services exports category, and both exports and im ports increased 
during the review period, except in 2020 due to the COVID -19 pandemic. Maritime transport was 
the main mode of transportation for exports of goods between 2016  and 20 21, followed by air and 
road transportation.  
32. The h ealth services sector is  a priority in the diversification process of the economy and 
between 2016 and 2021 the sector continued to grow in terms of health expenditures and number 
of hospitals. The authorities place priority on universal health coverage and in 2020 98.8% of the 
population was covered by government health insurance. The Ministry of Health continued to be the 
main provider of healthcare. Recent regulatory developments include the procedures and principles 
regarding the provision of remote health services and supervi sion of health facilities. Health tourism 
subsector revenues increased during the review period, except in 2020 due to COVID -19 restrictions. 
Health services commitments under the GATS are only included in hospital services , which have 
market access restri ctions.  
33. Tourism is the second -largest category in Türkiye's exports of services and accounts for more 
than half of its net trade balance in services in 2021. Türkiye ranked 7th among the top 10 European 
countries for tourism FDI  between  2016 and 2020 , with 36 FDI projects. The tourism sector 
expanded significantly from  2016 to 2019 ; however , it suffered a severe decline in 2020 as a 
consequence of COVID -19-related travel restrictions, and rebounded in  2021, when its share of GDP 
reached 3.7%. Travel agencie s and tour operator services have certain limitations on market access 
or national treatment.  
 WT/TPR/S/ 439 • Türkiye  
 
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 1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  The Republic of Türkiye1 covers an area of over 784,000 km2 (including lakes). It has a 
relatively young  population of almost 85  million, with median age of 31.5 years in 2021. P opulation 
growth has been declining steadily in recent years, and currently averages 1.1% per  year.2 
Workers'  remittances, once an important source of foreign exchange, have continued to steadily 
decline, reaching USD  181 million in 2021 (down from USD  575 million in 2016). There are around 
four million  refugees  in Türkiye, the largest  refugee  hosting cou ntry in the world for the past 
eight years.3 According to one study, in the short  term, migration, inter alia , increases inflation and 
unemployment and later on it can stimulate the economy depending on how quickly refugees find 
jobs and integrate into the labour market.4 Türkiye ranks 54th among 189 countries on the basis of 
the latest UNDP Human Develop ment Index.5 
1.2.  During the review period , there was a substantial increase in the share of the manufacturing 
sector to GDP from 18.8% in 2 016 to 24.8% in 2021, partly due to Türkiye's improved position in 
global value chains (GVCs), especially after the C OVID -19 pandemic (Section  1.3.1). Nonetheless, 
as shown in Chart 1.1, the services sector remains the main contributor (59.0% in 2021, comp ared 
with 61.2% in  2016). The participation of construction in the economy decreased from 9.6% in  2016 
to 5.7% in 2021, while that of agriculture, forestry, and fishing also went down from 7.0% in  2016 
to 6.2% in 2021. Mineral resources are abundant but re main underexploited, with mining 
and quarrying contributing  1.5% to GDP in 2021 (0.9% in 2016) . The recent discovery of natural 
gas in the Black  Sea could help to further increase this activity 's share  in the economy.  
Chart 1.1 Gross domestic product by economic activity (at basic current prices), 2021  
 
Source:  WTO Secretariat  calculations  based on Turkish Statistical Institute, National Accounts . Viewed at: 
https://www.tuik.gov.tr/ . 
 
1 Formerly "Turkey". See Membership of the World Trade Organization (WTO document 
WT/INF/43/Rev.23, 4  June 2022). We refer to "Türkiye" in this Review, except when citing original sources that 
refer to "Turkey".  
2 Nearly 67% of the population is aged betwee n 15 and 64 years old, and 8.7% is over 65 years  old. 
Around two  thirds  of the inhabitants live in urban areas, the largest cities being Istanbul, Ankara, and Izmir. 
More than  6.5 million  Turks live abroad, including around 5.5  million in Western Europe. Ministry of Foreign 
Affairs, Turkish Citizens Living Abroad . Viewed at: https://www.mfa.gov.tr/the -expatriate -turkish -
citizens.en.mfa . 
3 UNHCR, Türkiye . Viewed at: https://reporting.unhcr.org/turkey . 
4 F. Tanrikulu (2020), "The Political Economy of Migration and Integration: Effects of Immigrants on the 
Economy in Turkey ", Journal of Immigrant & Refugee Studies , 27 August. Viewed at: 
https://www.tandfonline.com/doi/abs/10.1080/15562948.2020.1810840 . 
5 Between 1990 and 2019, life expectancy at birth increased by 13.4 years, mean years of  schooling 
increased by 3.6 years, and expected years of schooling increased by 7.7 years. UNDP, Human Development 
Index: Turkey . Viewed at: https://hdr.undp.org/dat a-center/specific -country -data#/countries/TUR . 
Agriculture, forestry 
and fishing
6.2%Mining and quarrying
1.5%Manufacturing
24.8%Construction
5.7%Other
2.8%
Wholesale and 
retail trade
14.6%Transport, 
storage
9.8%Real estate activities
5.5%Public 
administration 
and defence
5.0%
Education
3.9%
Financial and 
insurance 
activities
3.3%
Information and 
communication
3.1%
Human health and 
social work 
activities
3.0%Other services
10.8%Services 59.0%Chart 1.[TUR] Gross domestic product by economic activity (at basic current prices), 2021
Source:  TurkStat, National Accounts . Viewed at: https://www.tuik.gov.tr/.WT/TPR/S/ 439 • Türkiye  
 
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 1.3.  The size of the informal sector, difficult labour market conditions (particularly among females 
and young people), low levels of workforce productivity, and income inequality remain long -standing 
challenges. According to the OECD, "low labour force participation of women, widespread informality, 
weak skills, rigid employment rules hampering reallocation and large share of low -quality 
employment have to be addressed for a more inclusive and sustained recovery".6 According to OECD 
estimates, productivity per hour worked is 30% lower than that of OECD best performers, while the 
poorest 20% of households earn 6.1% of total income.7 
1.4.  Businesses can be broadly classified into three categories: large firms, which account for 
one quarter of  employment, one half of the business sector's value added , and are diversified across 
industries and export markets; medium -sized family firms, with some formal and informal 
workforce; and small, mostly unregistered firms, with low productivity.8 
1.5.  Türkiye  is located in the Mediterranean Basin, one of the regions in the world expected to be 
most affected by climate change.9 Recent floods, forest fires, and sea pollution have also shown how 
highly vulnerable the country is to the impacts of climate change. In addition, energy supply 
disruptions and fuel price increases because of geopolitical conflicts have underscored the ur gency 
of climate action in support of energy security and affordability. As part of its efforts to tackle these 
challenges, Türkiye adopted its  Green Deal Action Plan in August 2021 to comply with the 
European  Union's  European Green Deal. Some of the main actions under the Green Deal Action Plan 
include limiting carbon emissions; promoting green financing and circular economy; encouraging 
clean, economic, and safe energy supply; supporting sustainable agriculture; and fostering 
sustainable smart travels.10 
1.6.  Türkiye ratified the Paris Agreement in October 2021 and has committed to net  zero emissions 
by 2053.11 Nonetheless, there is no target for phasing out coal, the most polluting way of producing 
electricity. Moreover, in June 2022 a new coal -fired power pla nt became operational.12 According to 
the authorities, Türkiye's new long -term National Energy Plan is soon to be published.  
1.2  Recent economic developments  
1.7.  At the time of the previous Review in 2016, the Turkish economy had grown every year except 
in 2009. However, since 2009, GDP growth has fluctuated from 9.2% in 2010 to 2.1% in  2012, 
reflecting the economy's vulnerability to capital inflows and contraction in agricultural ou tput due to 
adverse weather conditions. Furthermore, a high current account deficit, although declining, had left 
the country exposed to external shocks in an environment of increased currency and financial market 
volatility coupled with high inflation sin ce mid -2013. Geopolitical cris es in the region and the 
associated influx of refugees were also posing challenges to sustained economic growth.13 
1.8.  During 2016 -21, Türkiye enjoyed positive GDP growth rates despite the pandemic. 
Nonetheless, GDP per capita dec lined in the period (Table 1.1).14 According to the IMF, before the 
pandemic , productivity growth had slowed as reform momentum waned and economic growth 
 
6 OECD, Going for Growth 2021 – Turkey . Viewed at: https://www.oecd.org/economy/growth/Turkey -
country -note-going-for-growth -2021.pdf . 
7 OECD, Türkiye  Economic Snapshot . Viewed at: https://www.oecd.org/economy/turkey -economic -
snapshot/ . 
8 OECD, Türkiye  Economic Snapshot . 
9 The Intergovernmental P anel on Climate Change (IPCC) estimates an increase of 2.5°C -4°C in annual 
average temperatures in Türkiye, and that the country will be hotter and more arid and have a more uncertain 
climate structure in terms of precipitation. Iklimin (2019), Türkiye's Climate Change Policy, Legal and 
Institutional Framework . Viewed at: http://www.iklimin.org/wp -content/uploads/2020/03/modul_04_en -1.pdf. 
10 M. Arseven  (2021), "Turkey Adopt s Action Plan to Comply with European Green Deal ", Lexology , 
17 August. Viewed at: https://www.lexology.com/library/detail.aspx?g=1d5cf7b3 -0fc7-40b1-9385-
caddd2760443 . 
11 World Bank Group, Türkiye: Country Climate and Development Report . Viewed at: 
https://openkn owledge.worldbank.org/bitstream/handle/10986/37521/T%C3%BCrkiye%20CCDR%20Executiv
e%20Summary.pdf?sequence=2&isAllowed=y . 
12 The USD  2.17 billion Hunutlu power plant, the largest FDI project in Türkiye by China, consists of 
two power generation units, the second of which is not yet operational. Financial Times  (2022), "Turkey's New 
Power Plant Exposes 'Huge Contradictions' of Net Zero Pledge", 27  July. 
13 WTO document WT/TPR/S/331/Rev.1, 9  August  2016. 
14 The OECD estimates that GDP per capita in Türkiye is 46% lower than that of OECD best performers. 
OECD, Türkiye Economic Snapshot . Viewed at: https://www.oecd.org/economy/turkey -economic -snapshot/ . WT/TPR/S/ 439 • Türkiye  
 
- 16 - 
 
 became increasingly dependent on externally funded credit and demand stimulus.15 In addition, an 
excha nge rate crisis in the second half of 2018 resulted in weak GDP growth performance in 2019.16 
By early 2020, the economy had started to recover, just as it was hit by the pandemic. Also, rapid 
credit growth, led by state -owned banks, and high inflation und ermined monetary policy credibility 
and caused deposit dollarization (Section  1.2.1).17 Furthermore, according to the OECD, recent 
unorthodox economic policies have discouraged FDI inflows into Türkiye's 
economy  (Section  1.3.3).18 
Table 1.1 Selected macroeconomic indicators, 2016 -21 
  2016  2017  2018  2019  2020  2021  
GDP at current prices (TRY  billion)  2,626.6  3,133.7  3,758.8  4,311.7  5,048.2  7,248.8  
GDP at current prices (USD  billion)  869.2  859.1  797.2  759.3  717.1  807.1  
Real GDP (% change in chain linked 
volume  2009=100)  3.3 7.5 3.0 0.8 1.9 11.4 
Population (million)  79.3 80.3 81.4 82.6 83.4 84.1 
GDP per capita (USD)  10,965  10,696  9,793  9,195  8,600  9,592  
Unemployment rate  10.9 10.9 11.0 13.7 13.2 12.0 
Inflation, (CPI % change, period average)  7.8 11.1 16.3 15.2 12.3 19.6 
Inflation, (CPI % change, end of period)  8.5 11.9 20.3 11.8 14.6 36.1 
GDP by expenditure approach (% of GDP at current prices)  
Final consumption expenditure of resident 
households  59.1 58.3 55.8 56.6 56.4 54.9 
Final consumption expenditure of non -profit 
institutions serving households  0.3 0.3 0.3 0.3 0.4 0.3 
Government final consumption expenditure  14.7 14.4 14.7 15.4 15.2 13.1 
Gross fixed capital formation  29.1 29.9 29.7 25.9 27.4 28.1 
Change in stocks  -1.1 0.8 -0.3 -0.7 4.1 3.7 
Exports of goods and services  23.1 26.0 31.2 32.5 28.7 35.3 
Imports of goods and services  25.2 29.7 31.4 30.2 32.2 35.5 
GDP by expenditure approach (% change in chain linked volume 2009=100)  
Gross domestic product (TRY '000)  3.3 7.5 3.0 0.8 1.9 11.4 
Final consumption expenditure of resident 
households  3.7 5.9 0.5 1.5 3.2 15.3 
Final consumption expenditure of non -profit 
institutions serving households (NPISH)  11.6 7.1 13.4 -1.2 12.1 14.1 
Government final consumption expenditure  9.5 5.0 6.5 3.8 2.5 2.6 
Gross fixed capital formation  2.2 8.3 -0.2 -12.5 7.4 7.4 
Exports of goods and services  -1.7 12.4 8.8 4.2 -14.4 24.9 
Imports of goods and services  3.0 10.6 -6.2 -5.0 6.7 2.4 
Central government budget (% of GDP)  
Revenue  21.1 20.1 20.2 20.3 20.4 19.3 
Expenditure  22.2 21.6 22.1 23.2 23.9 22.2 
Primary expenditure  20.3 19.8 20.1 20.8 21.2 19.7 
Balance  -1.1 -1.5 -1.9 -2.9 -3.5 -2.8 
Primary balance  0.8 0.3 0.0 -0.6 -0.8 -0.2 
Total debt stock  28.9 28.0 28.4 30.8 35.9 37.9 
Domestic debt stock  17.8 17.1 15.6 17.5 21.0 18.1 
External debt stock  11.1 10.9 12.8 13.3 14.9 19.8 
Money and interest rate  
Broad money growth (annual %)  17.2 15.5 18.6 29.5 32.8 51.1 
Broad money (% of GDP)  55.2 53.5 52.9 59.6 67.7 71.7 
CBRT 1 -week repo interest rate  8.0 8.0 24.0 12.0 17.0 14.0 
Weighted average cost of the CBRT funding  8.3 12.8 24.1 11.4 17.0 14.0 
External sector        
Current account (% of GDP)  -3.1 -4.7 -2.6 1.4 -4.4 -0.9 
Trade (goods and services, BOP) (% of GDP)  48.0 55.6 62.4 62.1 60.3 69.8 
Exports/imports ratio (goods and services, BOP)  91.1 87.4 95.7 107.6  88.6 99.0 
Exports/imports ratio (goods, BOP)  79.3 74.3 81.5 91.6 81.6 88.5 
Real effective exchange rate (year -on-year 
% change)  0.0 -10.3 -14.4 -2.7 -10.3 -10.2 
TYR/USD (period average)  3.0 3.6 4.8 5.7 7.0 8.9 
TYR/EUR (period average)  3.3 4.1 5.7 6.4 8.0 10.5 
 
15 IMF (2021), Turkey:  Staff Report for the  2021 Article  IV Consultation , IMF Country Report 
No. 21/110, p.  4. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2021/06/11/Turkey -2021-Article -
IV-Consultation -Press -Release-Staff-Report -and-Statement -by-the-50205 . 
16 In general, an unstable currency discourages capital from foreign investors affecting GDP growth.  
17 IMF (2021), "IMF Executive Board Concludes 2021 Article  IV Consultation with Turkey", Press 
Release  21/169, 1 1 June.  
18 OECD (2021), Türkiye: Executive Summary . Viewed at: 
https://www.oecd.org/economy/surveys/TURKEY -2021-OECD -economic -survey -executive -summar y.pdf. WT/TPR/S/ 439 • Türkiye  
 
- 17 - 
 
   2016  2017  2018  2019  2020  2021  
Total reserves including gold (USD  billion)  104.8  107.7  93.0 105.6  93.5 109.5  
 in months of imports  5.4 4.8 4.2 5.1 4.6 4.3 
Gross external debt stock (USD  billion)  405.9  450.9  426.8  415.9  432.8  442.5  
Gross external debt stock (% of GDP)  46.7 52.5 53.5 54.7 60.4 55.1 
Net external debt stock (USD  billion)  245.0  280.8  253.0  220.7  244.0  222.5  
Net external debt stock (% of GDP)  28.2 32.7 31.7 29.0 34.0 27.7 
Source:  Central Bank of the Republic of Türkiye (CBRT), Electronic Data Delivery System . Viewed at: 
https://evds2.tcmb.gov.tr ; Turkish Statistical Institute, Data Portal for Statistics . Viewed at: 
https://data.tuik.gov.tr/ ; Ministry of Treasury and Finance, Statistics . View ed at: 
https://en.hmb.gov.tr/ ; World Bank, DataBank World Development Indicators . Viewed at: 
https://databank.worldbank.org/source/world -development -indicators ; and information provided by 
the authorities.  
1.9.  The initial economic and financial impact of the pandemic was acute: GDP fell sharply 
in Q2 2020, as containment measures were put in place and external demand and tourism 
plummeted. Employment registered its largest fall on record in the first half of 2020, while poverty 
is estimated by the IMF to have risen by abou t 1.5 million people due to the pandemic.19 The policy 
response to the pandemic relied initially on loosening the monetary policy 
framework  (Section  1.2.1), while fiscal support was relatively modest (Section  1.2.2). Türkiye was 
one of the few countries wi th a positive growth performance in 2020, estimated at 1.9%, mainly 
due to large interest rate cuts, rapid monetary and credit expansion, and extensive liquidity support. 
According to the IMF, quasi -fiscal measures were also used, including loan guarantees  to firms and 
loan service deferrals by state -owned banks; these measures came to nearly 10% of GDP, among 
the highest in emerging markets.20 
1.10.  In 2021, Türkiye's real GDP growth rate was the highest among G20 countries, boosted by 
high consumer spending , a large domestic market, and strong exports. Indeed, exports of goods 
reached a record high in 2021 supported by external demand, including from the Russian  Federation 
and Asia, with Türkiye benefitting from supply chain disruptions elsewhere and its strong export 
capacity ( Section  1.3.1). As a result of the surge in economic activity, the unemployment rate 
decreased in 2021 and is forecast to further fall to 11% in 2022. R eal GDP growth is estimated by 
the IMF at 5.0% for 2022 and 3.5% for 2023.21 
1.11.  In March 2 021, Türkiye's  New Economic Reform Package (ERP) 2021 -23 was launched to 
tackle inflation, fortify financial stability, promote de-dollarization of the economy , and place the 
country among the world's top  10 economies by promoting local and foreign investm ent, production, 
employment, exports, and current account surplus.22 According to the authorities, the ERP is being 
implemented to ensure macroeconomic stability, increase competition and efficiency in the economy, 
take advantage of the opportunities that emerged after the pandemic, encourage high value -added 
production, and promote further integration to GVCs. Some of the measures in the ERP include 
establishing a new Price Stability Committee (Section  1.2.1); reforming both SOEs and public 
procurement ten ders; enacting the Public -Private Partnership (PPP) F ramework Law; restructuring 
the Credit Guarantee Fund to focus on high value -added investment; prioritizing import substitution 
and exports in less developed regions; and reductions in social security an d unemployment insurance 
contributions for new hires.23 
1.2.1   Monetary and exchange rate policies  
1.12.  The Central Bank of the Republic of Türkiye (CBRT) is responsible for conducting monetary 
and exchange rate policies; its  primary objective is to achieve and maintain price stability.24 The 
CBRT  is responsible for taking precautionary  measures to  enhanc e the stability in the financial 
system and for taking regulatory measures with respect to money and foreign exchange market s. 
It also determines the exchange rate regime jointly with the Government. In addition, the CBRT is 
 
19 IMF Country Report No.  21/110, p.5.  
20 IMF Country Report No.  21/110, p. 7.  
21 IMF (2022), World Economic Outlook Update , July. Viewed at: 
https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world -economic -outlook -update -july-2022. 
22 Investment Office (2022), Invest in Türkiye , Issue 95, January . Viewed at: 
https://www.invest.gov.tr/en/news/newsletters/lists/investnewsletter/investment -office -jan-2022-
newsletter.pdf . 
23 IMF Country Repor t No. 21/110, p. 14.  
24 Price stability refers to an inflation rate low enough to be ignored in economic decisions.  WT/TPR/S/ 439 • Türkiye  
 
- 18 - 
 
 responsible for keeping and managing Türkiye 's gold and foreign exchange reserves.25 Since 
10 July 2018, the CBRT Governor is appointed for a four-year term by president ial decree .26 
1.13.  According to the IMF, the de jure  exchange rate arrangement is free floating; the de facto 
exchange rate arrangement is floating. Türkiye accepted the obligations of Article  VIII of the 
IMF Articles of Agreement on 22  March  1990. The exchange system is free of restrictions on the 
making of payments and transfers for current international transa ctions except for those maintained 
solely for the preservation of national or international security.27 The CBRT does not have a nominal 
or real exchange rate target.  
1.14.  In May 2018, the CBRT simplified its monetary policy framework with the aim of enhancing 
its predictability and reinforcing the transmission mechanism.28 Since 1  June 2018, the one -week 
repo auction rate has become the CBRT's key policy interest rate. Moreover, it was decided that 
the CBRT's overnight -borrowing and lending rates would be set w ith a margin of +/ - 150 basis points 
around the one -week auction repo rate. Since then, this interest rate has fluctuated from as low 
as 8.75% to a peak of 24%. The CBRT's Monetary Policy Committee gradually reduced its main 
interest rate from 19% in Septe mber 2021 to 9% on 24  November  2022. According to the 
authorities, Türkiye's monetary policy aims to enable Turkish firms to increase investment, 
production, and exports so as to benefit from recent international trade developments that are 
favourable  to Türkiye.  Also, the authorities are using a targeted credit approach and aim at achieving 
price stability in the medium -term. According to the OECD, Türkiye would benefit from bringing the 
real policy interest rate into positive territory as long as inflatio n and inflation expectations diverge 
from official projections and targets. Restoring the independence of the CBRT would also be 
important .29 
1.15.  The loose monetary strategy adopted has also caused deteriorating macro -financial 
conditions, particularly record depreciation of the lira, and the highest inflation rate since 1998. With 
the exception of 2016, the real effective exchange rate depreciated throughout the review 
period  (Table  1.1). In 2021, the lira depreciated 26.8% against the US  dollar. In the 
first eight months of 2022, the lira depreciated 74.8% vis-à-vis the US  dollar.30 
1.16.  Between 2016 and the end of 2020, the inflation rate, as measured by the Consumer Price 
Index (CPI), increased to a level well above the CBRT's medium -term target of 5% by  2023 
(Table  1.1). The inflation rate soared to 36.1% at the end of 2021 and reached 85.5 % in 
October  202231, the biggest annual increase since 1998. According to the OECD, the big jump in the 
inflation rate  has largely been driven by the loose monetary policy strategy adopted by the CBRT, 
which involved dipping into foreign reserves to support the  lira, with excess money fed into increased 
demand for imports and foreign assets.32 According to the CBRT, inflation has been largely the result 
of rising food and energy costs "resulting from geopolitical developments [and] temporary effects of 
pricing formations that are not supported by economic fundamentals ".33 For 2022, the IMF estimates 
 
25 The Grand National Assembly of Türkiye has indefinitely delegated its authority to print and issue 
banknotes to the CBRT.  It is responsible  for establishing payment and securities settlement systems to ensure 
fast and secure transfer and settlement of funds and securities, and for introducing necessary regulations to 
ensure the uninterrupted operation and oversight of the existing or future s ystems. CBRT, At a Glance . Viewed 
at: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/About+the+Bank/At+a+Glance . 
26 The Governor may be rea ppointed upon the expiration of this term. CBRT, Governor . Viewed at: 
https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+ Menu/About+The+Bank/Organization/Decisio
n+Making/Governor . 
27 Notified to the IMF pursuant to Executive Board Decision No.  144-(52/51). IMF Country 
Report  No. 21/110.  
28 Monetary policy transmission mechanisms are  the channels through which changes in the policy rate 
affect the behaviour  of other economic variables, mainly prices and output. Before the change in its monetary 
policy, the CBRT relied on a different system with four main key interest rates, with the late liquidity window 
lending rate being one of the most followed.  
29 The CBRT Governor was replaced more t han once during the review period. The last time was 
in March 2021. OECD (2021), Turkey: Executive Summary . Viewed at: 
https://www.oecd.org/economy/ surveys/TURKEY -2021-OECD -economic -survey -executive -summary.pdf . 
30 Trading Economics, Turkish Lira . Viewed at: https://tradingeconomics.com/turkey/currency . 
31 CBRT, Consumer Prices . Viewed at: 
https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Inflation+Data . 
32 OECD (2021), Turkey: Executive Summary . Viewed at: 
https://www.oecd.org/economy/surveys/TURKEY -2021-OECD -economic -survey -executive -summary.pdf . 
33 CBRT (2022), Press Release on Interest Rates , No. 2022-26, 26  May. WT/TPR/S/ 439 • Türkiye  
 
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 an average inflation ra te of 73.1%.34 In October 2022, the  authorities' inflation rate forecast for  2022 
ranged from  60.4%  (CBRT) to 72.0%.35 
1.17.  In June 2021, a new Price Stability Committee  was established  and tasked with "advancing 
and maintaining domestic price stability by identifying threats to price stability, structuring, and 
implementing appropriately coordinated fiscal and monetary policies and price controls".36 
1.18.  The depreciation of the lira has boosted  the debts of companies and the Government, which 
have increased their foreign borrowings.37 Dollarization has also increased, reaching 64.5% of bank 
deposits at the end of 2021, with the authorities taking measures to curb it, decreasing this share 
to 54. 0% as of 20  September  2022. In January 2022 exporters were asked to hand over 25% of 
their hard currency earning s to the CBRT, which was raised to 40% in April 2022. On 24  June 2022, 
the Banking Regulation and Supervision Agency also announced a new direct ive banning  lira-based 
commercial loans to some firms. According to the directive, a company with foreign -currency cash 
assets of more than TRY  15 million (about USD  895,000) and exceeding 10%  of total assets or 
annual sales will not be able to obtain a ne w local -currency loan.38 
1.2.2   Fiscal policy  
1.19.  A prudent fiscal policy has been a strong anchor of Türkiye 's economy for many years. This 
was also the case during the review period, including in the pandemic. R evenues were stronger than 
expected, helped by solid v alue-added and Special Consumption Tax revenues (Section  3.1.4), as 
well as large transfers from the CBRT and high interest receipts. At the same time, d irect fiscal 
support has been modest, with s pending on healthcare and on direct support to household fi rms and 
employees amounting to about 2% of GDP, among the lowest in emerging markets.39 Tax and social 
security premium deferrals were used to support the most vulnerable segments of society during 
the pandemic, while fuel subsidies were deployed to dampen the impact of inflation.40 
1.20.  As a result of modest spending and robust revenues, the ove rall central government deficit , 
as a share of  GDP, decreased in 2021. Because of the prudent fiscal policy, total government debt 
stock is relatively low (Table 1.1). The composition of the government debt deteriorated during the 
review period due to a re duction in the average borrowing maturities41, and an increase in the share 
of the external government debt stock due to dollarization (Table  1.1). According to the authorities, 
one of the main pillars of Türkiye 's borrowing strategy is to decrease the sha re of foreign currency 
denominated debt stock in total stock.  
1.21.  According to the OECD, Türkiye could use the room available in public finances for 
transparent, temporary, and targeted direct fiscal support to continue tackling the pandemic and 
resume fiscal tightening once the recovery is firmly under way.42 According to the authorities, fiscal 
consolidation will be the priority as soon as market conditions allow, in order to again set the trend 
of public debt on a downward trajectory. Fiscal risk assessments  will continue to be scrutinized 
carefully, including the contingencies from PPPs and SOEs.43 
 
34 IMF (2022), World Economic Outlook Database , April.  
35 Data provided by the Ministry of Treasury and Finance.  
36 Article  2 of Presidential Decree No.  74 published in Official Gazette dated 30  June 2021. The 
Committee , under the coordination of the Ministry of Treasury and Finance, also includes members from the 
Ministries of Industry and Technology, Energy and Natural Resources, and Trade and Agriculture.  
37 According to OECD estimates, since the pandemic started and until 2021, non -financial corporate debt 
had risen by 20  percentage points of GDP, the highest among emerging economies. OECD (2021), Turkey: 
Executive Summary . Viewed at: https://www.oecd.org/economy/surveys/TURKEY -2021-OECD -economic -
survey -executive -summary.pdf . 
38 DW News (2022), "Turkey Mulls Capital Controls amid Currency Crisis and Re cord Inflation ", 1 July. 
Viewed at: https://www.dw.com/en/turkey -mulls -capital -controls -amid-currency -crisis-and-record -inflation/a -
62326997 . 
39 IMF Country Report No.  21/110, p. 8.  
40 IMF Country Report No.  21/110, p. 8.  
41 IMF Country Report No.  21/110, p. 9.  
42 OECD (2021), Turkey: Executive Summary . Viewed at: 
https://www.oecd.org/economy/surveys/TURKEY -2021-OECD -economic -survey -executive -summary.pdf . 
43 Currently, all revenue guarantee payments for PPPs are budgeted in a three -year rolling horizon.  WT/TPR/S/ 439 • Türkiye  
 
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 1.2.3   Balance of payments  
1.22.  Traditionally, Türkiye has run a current account deficit, reflecting a long -standing structural 
savings -investment imbalance financed by overs eas borrowing. This was also the case during most 
of the review period, fuelled by a large foreign trade deficit arising from imports of intermediate 
goods coupled with high dependence on energy products. Nonetheless, in 2019 the current account 
registered  a surplus for the first time since 2002 (Table  1.2), on account of weak domestic demand. 
As a percentage of GDP, the current account deficit decreased in 2021 (Table  1.1). As already 
indicated, a key aim under the ERP 2021 -23 is to achieve a current accou nt surplus. According to 
the authorities, Türkiye's current account is structurally positive abstracting from temporary factors 
such as energy prices.  
Table 1.2 Balance of payments, 2016 -21 
(USD million)  
  2016 2017  2018  2019  2020  2021a 
Current account  -26,668  -39,955  -20,114  10,798  -31,878  -7,231  
 Balance on goods -39,923  -58,575  -40,726  -16,781  -37,863  -29,313  
 Exports  152,645  169,214  178,909  182,200  168,387  224,686  
 Imports  192,568  227,789  219,635  198,981  206,250  253,999  
 Balance on services  20,893  26,823  30,888  38,560  14,359  31,812  
 Credit  46,698  53,971  59,341  67,217  38,243  61,408  
 Debit  25,805  27,148  28,453  28,657  23,884  29,596  
 Primary income  -9,181  -10,728  -11,038  -11,844  -8,569  -10,678  
 Secondary income  1,543  2,525  762 863 195 948 
Capital account  22 15 80 34 -36 -64 
Financial account  -17,537  -41,458  11,427  -1,269  -7,618  -29,260  
 Direct investment, net   
 Net acquisition of financial assets  3,138  2,703  3,590  2,945  3,239  6,447  
 Net incurrence of liabilities  13,835  11,190  12,505  9,573  7,831  13,224  
 Portfolio investment   
 Net acquisition of financial assets  -329 -583 1,092  6,342  2,894  2,260  
 Net incurrence of liabilities  8,083  23,857  176 3,579  -6,662  3,011  
 Other investment, net   
 Net acquisition of financial assets  7,956  4,605  12,281  8,789  -1,884  13,409  
 Net incurrence of liabilities  6,384  13,136  -7,145  6,193  10,698  35,141  
Current, capital and financial accounts  -9,109  1,518  -31,461  12,101  -24,296  21,965  
Net errors and omissions  9,922  -9,725  21,084  -5,777  -7,566  1,365  
Reserve assets  813 -8,207  -10,377  6,324  -31,862  23,330  
a Provisional.  
Source:  CBRT, Statistics: Balance of Payments . Viewed at: https://www.tcmb.gov.tr/ ; and information 
provided by the authorities.  
1.23.  Over the last few years , the current account deficits have been financed mainly by debt, which 
led in turn to high external financing needs, and by increases in net errors and omissions inflows in 
some years (Table 1.2).44 Moreover, according to the IMF, recently the quality of e xternal financing 
worsened, with increased reliance on short -term funding and a slowdown in net FDI inflows. Weaker 
monetary policy credibility led to a surge in gold imports, adding to the current account deficit.45 
1.24.  Official external reserves increased from USD  104.8  billion in 2016 (5.4 months of imports) 
to USD  109.5  billion  (4.3 months of imports) in 2021 (Table  1.1). According to the IMF, this level of 
gross international reserves is well below the recommended adequacy range; net internatio nal 
reserves are negative once foreign exchange swaps with the CBRT are subtracted.46 
1.3  Trade and investment performance  
1.3.1   Trade in goods  
1.25.  International trade plays an important role in the economy. Trade (exports and imports of 
goods and services), as a share of GDP, increased from 48.0% in 2016 to 69.8% of GDP in 2021 
(Table  1.1) reflecting Türkiye's  strong export capacity, improved position in GVCs, and despite the 
 
44 Net errors and omissions reflect the imbalances resulting from imperfections in source data and 
compilation of the balance of payments accounts.  
45 IMF Country Report No.  21/110, p. 19.  
46 IMF Country Report No.  21/110, p. 20.  WT/TPR/S/ 439 • Türkiye  
 
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 negative impact the pandemic had on both exports and imports of goods (Tables A1.1 to A1.4) and  
services (Table 1.3). T he relatively big size of the economy and Türkiye's strategic location with 
close access to large markets and suppliers have facilitated the ability of firms to participate in GVCs 
and exploit economies of scale and to export.47 According to the OECD, Türkiye increased its 
participation in GVCs from 8.8% in 1995 to 20.9% in 2018, mostly due to the manufacturing sector 
whose domestic share of value -added meeting foreign final demand rose from 33.8% to 41.7% over 
the period.48 
1.26.  Accordin g to the World Bank, Türkiye's rising GVC participation coincides with increased 
value -added from exports. It has significant potential to expand exports, and GVC exports, especially 
in higher technology sectors. Nonetheless, its  GVC participation remains relatively low, its products 
are of limited sophistication , and innovation earnings are limited. Domestic GVC supply chains have 
expanded, but GVC suppliers can do more to realize productivity gains. Even though exports are 
sizeable, they are still 50% bel ow potential .49 The Government's Eleventh Development Plan 
(2019 -23), inter alia , aims to improve Türkiye's position in the hierarchy of GVCs (Section  2.2). 
1.27.  In 2021, Türkiye  ranked 23rd among world merchandise exporters and 17th among 
importers  (considering the member States of the European  Union together and excluding intra -EU 
trade). In services trade, Türkiye  ranked 14th among exporters and 24th among importers.50 Services 
exports, ma inly tourism, are also a significant source of foreign exchange earnings.  
1.28.  Since most of Türkiye's  exports are tied to imports of intermediate, semi -finished, or raw 
products, the evolution of its trade balance is sensitive to movements in foreign exchange rates, 
notably  the lira's value against the US  dollar and the  euro.51 According to the authorities, the real 
effective exchange rate is not a major factor explaining export performance. The global spread of 
the pandemic and the resulting containment measur es took a toll on Türkiye's merchandise exports 
and imports but not as much as expected, partly because the country benefited from supply chain 
disruptions in Asia52, and also from recent international trade developments favourable to Türkiye.  
1.29.  Türkiye's tr ade balance has not been in surplus since 2001. Based on balance -of-payments 
figures, exports of goods in value terms grew 47.2% between 2016 and 2021, while imports 
increased by 31.9% between the same years. As a result, the trade deficit decreased during  the 
period (Table  1.2), with a depreciating  lira pressuring imports and making exports more competitive. 
The trade deficit decreased despite higher oil prices, which drove up the cost of energy imports.  
1.30.  Base metals and articles thereof are the most import ant contributor to export earnings, 
representing 15.8% of total merchandise exports in 2021 (compared with 10.5% in 2016). Next 
comes textiles and textile articles, which contributed 15.3% of total merchandise exports in  2021 
(down from 18.1% in 2016), fol lowed by machinery and electrical equipment (14.6% in 2021). The 
share of transport equipment in total merchandise exports decreased from 15.0% in 2016 to 
12.8%  in 2021 (Table  A1.1 and Chart  1.2). 
 
47 OECD, Going for Growth 2021 – Turkey . Viewed at: https://www.oecd.org/economy/growth/Turkey -
country -note-going -for-growth -2021.pdf . 
48 Trade in Value Added indicators provide a proxy abou t the creation of value along each stage of 
GVCs. OECD (2022), Trade in Value Added: Turkey . Viewed at: 
https://www.oecd.org/sti/ind/CN2021_TUR.pdf , p. 1.  
49 World Bank (2022), Country Economic Mem orandum: Leveraging Global Value Chains for Growth in 
Turkey . Viewed at: https://www.worldbank.org/en/c ountry/turkey/publication/ -country -economic -
memorandum -leveraging -global -value -chains -for-growth -in-turkey . 
50 WTO Statistics database, Trade Profiles: Turkey . Viewed at: 
https://www.wto.org/english/res_e/statis_e/daily_update_e/trade_profiles/TR_e.pdf . 
51 Due to imports of fuels and energy products, and trade with Asian countries, Türkiye's imports are 
mainly denominated in US  dollars. On the other hand, exports  of manufactures to traditional markets, primarily 
in Europe, result in exports being, to a large extent, settled in euro. 
52 OECD (2021), Turkey: Executive Summary . Viewed at: 
https://www.oecd.org/economy/surveys/TURKEY -2021-OECD -economic -survey -executive -summary.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 Chart 1.2 Merchandise trade by main products, 2016 and 2021  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.31.  The EU -27 remains Türkiye's largest trading partner, accounting for 41.9% of total 
merchandise exports in 2021 (up from 40.8% in 2016) . Germany continues to be its largest export 
market, taking 8.6% of total exports in 2021 (down from 10.2% in 2016) , followed by 
the United  States (6.5%) and Italy (5.1%). Other important export destinations in 2021 were 
Iraq (4.9%) and other Middle East e conomies, while Asia's share rose from 5.4% in  2016 
to 6.0%  in 2021 (Table  A1.2 and Chart  1.3). The Russian  Federation also increased its share 
from 1.2% to  2.6% over the period. Moreover, during January -September 2022, Türkiye's exports 
to the Russian  Federation grew 43.2% compared with the same period in 2021 .53 
 
53 WTO Secretariat calculations, based on UN Comtrade database.  
WT/TPR/S/ 439 • Türkiye  
 
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 Chart 1.3 Direction of merchandise trade, 2016 and 2021  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.32.  Türkiye 's imports are dominated by petroleum and mineral products, representing 19.7% of 
the total in 2021 (up from 14.1% in 2016). Next comes machinery and electrical equipment 
with 18.8% share in 2021 (down from 23.5% in 2016), and base metals and articles thereo f 
with 16.9% share in  2021 (up from 11.9% in 2016). The share of chemical products in total 
merchandise imports increased from 8.8% in 2016 to 10.6% in 2021, while transport equipment 
decreased its  participation from 11.7% to 7.3% during the period (Table  A1.3 and Chart  1.2). 
1.33.  The EU -27 was the source of 31.5% of Türkiye 's total merchandise imports in 2021 (down 
from 37.3% in  2016), partly due to the reduction in Germany's share from 11.2% to 8.0% during 
the period. Led by China (11.9%), Asia represented 24. 0% of total merchandise imports in  2021, 
compared with 25.8% in  2016. The participation of the United  States decreased from 5.6% in  2016 
to 4.8% in  2021, while that of the Russian  Federation increased from 7.6% in 2016 to 10.7% in  2021 
(Table  A1.4 and Char t 1.3). 
Chart 1.2  Direction of merchandise trade, 2016 and 2021
2016 2021
Exports (f.o.b.)
Middle East
20.9%
Total:   USD 149.2 billion Total:  USD 225.2 billion
Other
11.6%
Other EU -27
17.0%Middle East
6.8%
United States
5.6%Imports (c.i.f.)
Other EU -27
16.3%Germany
8.0%Other
18.5%
United States
4.8%
Total:   USD 202.2 billion Total:   USD 271.4 billionIraq
5.7%
Middle East
5.5%United States
4.9%Asia
5.4%
United States
6.5%Iraq
4.9%
Source :  WTO Secretariat calculations, based on UN Comtrade database.China
12.3%
United Kingdom
2.7%Other EU -27
19.9%Italy
5.3%
Other Asia
13.5%Italy
5.1%Other EU -27
17.7%Africa
8.0%
Germany
10.2%
Spain
3.5%Other
10.8%Africa
9.4%
Germany
11.2%Other
12.3%
Africa
2.7%Other Middle 
East 15.2 %
Germany
8.6%Other Middle 
East 10.3%
Italy
5.3%Asia
24.0%Asia
25.8%Middle East
15.2%
United Kingdom
2.0%Spain
4.3%
Africa  3.0%
Italy
4.3%Asia
6.0%
China
11.9%EU-27
40.8%EU-27
41.9%
EU-27
37.3%EU-27
31.5%United Kingdom
8.0%United Kingdom
6.1%
Russian
Federation
7.6%Other Asia
12.1%
Russian 
Federation
10.7%
France
3.8%France
4.1%France
4.2%
France
2.9%Russian Federation
2.6%Russian 
Federation
1.2%WT/TPR/S/ 439 • Türkiye  
 
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 1.3.2   Trade in services  
1.34.  Türkiye remains a net exporter of services, an important source of foreign exchange. 
Unsurprisingly, the trading sectors hardest hit by the pandemic have been the services sectors, 
where restrictions on international travel signif icantly impaired the ability to trade. Indeed, t he 
services surplus peaked in 2019, declined significantly in 2020, and recovered in 2021 (Table  1.3). 
Table 1.3 Trade in services, 2016 -21 
(USD million)  
  2016  2017  2018  2019  2020  2021a 
Trade balance in services  20,893  26,823  30,888  38,560  14,359  31,812  
Services exports  46,698  53,971  59,341  67,217  38,243  61,408  
 (% of total exports)  
 Manufacturing services on physical inputs 
owned by others  0.8 0.6 0.5 0.5 0.7 0.5 
 Maintenance and repair services  1.7 1.9 1.9 1.8 3.0 2.3 
 Transport  42.3 41.0 41.0 34.8 42.1 39.8 
 Passenger  16.6 17.6 19.5 17.1 8.9 11.5 
 Freight  17.6 16.6 15.3 12.4 24.5 20.9 
 Other  8.1 6.8 6.2 5.3 8.7 7.4 
 Travel  40.9 42.6 43.7 51.0 34.9 43.4 
 Construction  1.0 1.0 0.9 0.5 0.6 0.4 
 Insurance and pension services  2.0 2.5 2.2 1.9 2.5 1.6 
 Financial services  0.8 0.9 0.9 0.7 1.0 0.6 
 Charges for the use of intellectual property  0.2 0.2 0.3 0.3 0.7 0.6 
 Telecommunications, computer, and 
information services  2.3 2.2 2.4 2.2 5.5 4.2 
 Other business services  5.8 5.5 4.6 4.7 7.6 5.7 
 Personal, cultural, and recreational services  0.3 0.3 0.2 0.3 0.4 0.3 
 Government goods and services  1.9 1.4 1.3 1.2 1.0 0.6 
Services imports  25,805  27,148  28,453  28,657  23,884  29,596  
 (% of total imports)  
 Manufacturing services on physical inputs 
owned by others  0.6 0.5 0.5 0.2 0.3 0.5 
 Maintenance and repair services  3.3 2.4 2.6 2.7 2.5 2.3 
 Transport  27.3 28.9 33.2 33.4 33.5 36.9 
 Passenger  3.5 3.8 5.2 4.0 1.5 1.5 
 Freight  18.2 18.2 19.6 21.1 26.8 29.5 
 Other  5.6 6.9 8.4 8.3 5.1 5.9 
 Travel  18.5 17.8 16.1 14.3 4.4 5.6 
 Construction  0.8 0.5 0.7 0.2 0.1 0.1 
 Insurance and pension services  7.8 9.2 6.9 6.5 8.5 7.7 
 Financial services  3.8 2.5 2.4 1.7 2.5 1.8 
 Charges for the use of intellectual property  7.3 6.5 7.4 7.6 9.8 9.3 
 Telecommunications, computer, and 
information services  7.9 8.8 7.5 9.3 13.1 11.0 
 Other business services  17.1 18.3 18.4 19.2 20.2 20.3 
 Personal, cultural, and recreational services  0.6 0.5 0.4 0.6 1.1 1.0 
 Government goods and services  5.1 4.1 3.8 4.2 4.0 3.5 
a Provisional.  
Source:  CBRT , Statistics: Balance of Payments . Viewed at: https://www.tcmb.gov.tr/ ; and information 
provided by the authorities.  
1.35.  Despite the pandemic, travel (tourism) was the most important services category, 
contributing  43.4% of total services exports in 2021, followed by transport with 39.8% . Imports of 
services are led by transport, accounting for 36.9% of total services imports in  2021, followed by 
other business services with 20.3% (Table  1.3). 
1.3.3   Foreign direct investment  
1.36.  During the review period, Türkiye  took steps to facilitate FDI, notably through the Investment 
Office of the Presidency and its FDI Strategy 2021 -23 (Section  2.4.1) , and the development  of 
PPPs for major infrastructure projects. In addition, Türkiye has been benefitting from its position as 
a relatively low-cost manufacturing hub close to EU markets . Nonetheless, according to the OECD, 
recent unorthodox economic policies have discouraged  investors; Türkiye would also benefit from 
reinforcing the governance environment as envisaged in the Eleventh Development Plan  (2019 -23), 
which requires improvements, inter alia , regarding rule of law, judicial credibility, and WT/TPR/S/ 439 • Türkiye  
 
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 corruption  (e.g. money lau ndering and terrorism financing).54 Türkiye 's stock of FDI decreased 
in 2021, after peaking in 2020 (Table  1.4 and Chart  1.4), despite the global economic uncertainty 
caused by the pandemic.  
Table 1.4 FDI stoc k by sector and origin, 2016 -21 
(USD million)  
 2016  2017  2018  2019  2020  2021  
Total FDI stocka 136,435  182,721  132,203  148,934  217,743  129,761  
 (% of total)  
By sector   
Agriculture, forestry, and fishing  0.5 0.7 0.3 0.5 0.6 0.8 
Mining and quarrying  1.6 2.5 2.5 2.3 1.2 1.5 
Manufacturing, of which:  31.4 31.5 23.3 23.5 35.4 36.1 
 Transport equipment  6.4 6.7 4.6 4.4 4.6 6.9 
 Food products, beverages, and 
 tobacco  7.0 6.4 4.4 4.9 9.3 6.2 
 Chemicals, chemical products, 
 basic pharmaceutical products,  and 
materials  3.5 3.9 3.5 2.6 4.0 6.2 
 Manufacturing  0.8 0.9 1.3 2.4 5.1 5.1 
  Computers, electronic -electrical  and 
optical equipment  3.9 3.6 2.2 2.0 2.3 3.6 
 Coke, refined petroleum products  and 
nuclear fuel  4.1 3.9 3.5 2.7 3.8 2.8 
Electricity, gas, steam, and air -conditioning 
supply  8.2 9.9 3.8 5.4 5.8 7.0 
Water supply; sewerage, waste 
management and remediation  0.0 0.0 0.0 0.0 0.0 0.0 
Services, of which:  58.3 55.3 70.1 68.2 57.0 54.5 
 Construction  0.4 0.3 0.2 0.1 0.1 0.7 
 Wholesale and retail trade  22.6 21.1 32.9 24.5 21.5 27.6 
 Transportation and storage  1.3 2.7 1.7 0.6 0.4 1.5 
 Accommodation and food  service 
 activities  0.2 0.4 0.2 0.4 0.8 2.2 
  Information and communication 
 services  8.2 8.1 5.8 4.5 2.9 4.3 
 Financial and insurance activities  22.9 20.2 27.9 36.1 29.5 16.3 
 Financial service activities 
 (Banks)  15.4 13.3 21.9 28.2 24.2 12.5 
 Insurance, reinsurance, and 
 pension funding (except 
 compulsory social security)  4.0 3.6 2.8 2.4 2.2 1.6 
 Activities of holding companies  2.9 2.8 2.3 3.0 1.5 1.5 
 Other activities auxiliary to 
 financial services  0.6 0.5 0.9 2.5 1.5 0.6 
 Other activities auxiliary to  financial 
services  0.6 0.6 0.4 0.3 0.4 0.3 
 Real estate activities  4.0 3.6 2.8 2.4 2.2 1.6 
By origin  
 Netherlands  18.4 22.2 29.0 21.7 17.5 18.7 
 Germany  10.0 9.7 8.0 9.8 9.7 10.2 
 Qatar  3.6 3.1 4.7 14.8 15.2 8.0 
 Singapore  0.6 0.7 0.7 1.3 1.9 8.3 
 United Kingdom  5.3 4.8 4.1 4.9 8.4 5.6 
 Luxembourg  5.8 6.7 4.1 5.1 6.1 5.3 
 Russian  Federation  7.6 6.9 12.1 3.7 3.5 5.3 
 France  4.1 4.0 3.0 3.2 3.7 4.3 
 Switzerland  3.5 4.2 4.4 4.7 5.1 4.3 
 Spain  6.1 6.5 4.9 4.7 3.5 3.7 
 Azerbaijan  4.2 5.1 4.4 3.2 3.5 3.6 
 United  States  3.4 3.9 3.2 2.0 2.4 3.3 
a Figures refer to equity capital (excluding "other capital", which covers inter -company loans between 
direct investment enterprises and direct investors).  
Source:  CBRT, Statistics: International Investment Position . Viewed at: https://www.tcmb.gov.tr/ ; and 
information provided by the authorities.  
 
54 OECD (2021), Turkey: Executive Summary . Viewed at: 
https://www.oecd.org/economy/surveys/TURKEY -2021-OECD -economic -survey -executive -summary.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 Chart 1.4 FDI stock and flows, 20 15-21 
(USD billion)  
 
Source:  CBRT, Electronic Data Delivery System. Viewed at: https://evds2.tcmb.gov.tr . 
1.37.   The number of companies with foreign capital in Türkiye went up from 5,600 in  2002 
to 73,675  in 2020. The s ectoral breakdown of FDI has become more diversified in line with the 
country's position in GVCs.55 Services (led by wholesale and retail trade and financial and insurance 
activities) is the sector that attracts the highest amount of FDI stock in Türk iye, accounting 
for 54.5% of the total in 2021, followed by manufacturing (36.1%) and electricity (7.0%). 
European  economies continue to account for the majority of inward FDI stock in 2021, led by 
the Netherlands (18.7%), Germany (10.2%), and the United  Kingdom (5.6%). Qatar, Singapore, 
the Russian  Federation, Azerbaijan56, and the United  States are also significant investors.  
 
55 Investment Office, FDI in Türkiye . Viewed at: https://www.invest.gov.tr/en/whyturkey/pages/fdi -in-
turkey.aspx . 
56 Recently, FDI increased due to  the refinancing of project debt across several oil and gas assets 
in Türkiye  by Socar, based in Azerbaijan.  
02468101214
050100150200250
 2015  2016  2017  2018  2019  2020  2021 FDI inward stock  FDI outward stockChart 1.[TUR] Foreign Direct Investment, 2016 -21
Stock Flows
Source: Central Bank of the Republic of Türkiye, EVDS, Viewed at: https://evds2.tcmb.gov.tr.WT/TPR/S/ 439 • Türkiye  
 
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 2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  While Türkiye's Constitution sets out the shared powers among the legislature, executive, and 
judiciary, amendments in 2018 significantly strengthened the executive branch, which was 
consolidated into the Presidency .1 The rationale of th e proponents for constitutional change  was that 
the move to a presidential system of government was needed to ensure a strong and stable Türkiye. 
However, concerns have been expressed about a resulting erosion of the separation of powers, as 
well as the environment in which constitutional amend ments took place, inter alia,  during a state of 
emergency.2 
2.2.  Constitutional amendments made the President the Head of Government in addition to being 
the Head of State and abolished the Council of Ministers and the Office of Prime Minister within the 
execu tive branch. The President has been given the authority to appoint and dismiss ministers and 
the Vice President(s) and high -level state officials without parliamentary approval, issue presidential 
decrees (see below), as well as to declare a state of emerg ency, subject to limitations.3 As before, 
the President is responsible for promulgating laws adopted by the Parliament. The President can 
resend laws back to Parliament within 15  days to be debated again if s/he considers the laws fully 
or partially unsui table. Constitutional changes made in  2018 require an absolute majority (301  out 
of 600 votes) of Parliament to re -adopt the same bill, rather than a simple majority under the 
previous Constitution.4 Eligibility requirements for presidential candidates ha ve been modified, and 
elected Presidents now do not need to end their party membership. The President also has 
new powers to: (i)  propose a budget to Parliament; (ii)  determine national security policies and take 
the necessary measures; (iii)  appoint 4 of the 13  members of the Council of Judges and Prosecutors; 
and (iv)  dissolve Parliament (triggering  elections).  
2.3.  Changes to the legislative branch have included, inter alia , the extension of the term of 
Parliament from four years to five , an increase in the n umber of parliamentary seats , and changes 
to the eligibility of Members of Parliament  (MPs). Elections for both the President and MPs are now 
held on the same day. The ability of MPs to pose oral questions to the executive has been abolished; 
instead, writ ten requests for information may be addressed to the Vice President(s). Parliament's 
powers to open investigations and to indict the President have been amended, including by requiring 
an absolute majority vote by Parliament to open an investigation rather  than a one -third vote as 
previously.  
2.4.  Constitutional changes also affected the judicial branch, principally with respect to appointment 
processes (see above) and the abolition of the supreme military courts (the High Military 
Administrative Court and the M ilitary Court of Cassation). The Constitution now specifies that 
independent courts must be impartial.  
2.5.  Work is ongoing to draft a new Constitution; as of November 2022, a draft text had not been 
revealed.  
 
1 The draft law (No.  6771) amending the Constitution was adopted by Parliament on 21  January  2017. 
It is composed of 18 articles that modified around 50 constitutional provisions and repealed a further 21. It 
was signed by the President on 10  February  2017.  It was then submitted to a national referendum on 
16 April 2017. All constitutional amendments became effective on 9  July 2018. The text (in English ) of the 
amended Constitution may be viewed at: https://global.tbmm.gov.tr/constitution . 
2 For example, see Venice Commission (2017), Turkey: Opinion on the Amendments to the Constitution 
Adopted by the Grand National Assembly on 21 January 2017 and to Be Submitted to a National Referendum 
on 16 April 2017 . Viewed at: https://www.venice.coe.int/webforms/documents/default.aspx?pdffile=cdl -
ad(2017)005 -e; and Yazici, S. (2017),  Constitutional Amendments of 2017: Transition to Presidentialism in 
Turkey . Viewed at: https://www.nyulawglobal.org/globalex/2017_Türkiye_Constitution_Amendmen ts.html . 
3 Under the Constitution as amended in 2011, the Council of Ministers under the Chairmanship of the 
President could declare a state of emergency in the event of natural disaster, dangerous epidemic diseases, or 
a serious economic crisis. With the 2018 constitutional amendments, the President can declare a state of 
emergency under a broader range of circumstances. Presidential decrees issued during a state of emergency 
may cover the fundamental, individual, and political rights and duties that are e xcluded during normal 
circumstances, but require the approval of Parliament (Article  119).  
4 Previously, the requirement was half plus one of those attending the meeting, provided that it is not 
less than one fourth (150) of the total number of MPs. WT/TPR/S/ 439 • Türkiye  
 
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 2.6.  Constitutional amendments and the move to a preside ntial system in Türkiye have resulted in 
fundamental changes to the legislative process and the hierarchy of laws. Certain legislative 
instruments issued by the executive branch were abolished (decree -laws, by -laws, and Cabinet 
decisions) and new ones intr oduced ( presidential decrees and presidential decisions5). The President 
has the authority to issue presidential decrees on all matters excluding: (i)  fundamental rights, 
individual rights , and duties included in the first and second chapters of the Const itution; (ii)  political 
rights and duties listed in the fourth chapter of the second part of the Constitution; and (iii)  matters 
stipulated in the Constitution to be explicitly regulated by law.6 In addition, there are several issues 
that can only be regu lated through presidential decree: (i)  the procedures and principles governing 
the appointment of high -ranking executives; (ii)  the establishment, abolition, the duties and powers, 
the organization structure of ministries , and the establishment of their ce ntral and provincial 
organizations; (iii)  the functioning of the State Supervisory Council, the term of office of its 
members , and other personnel matters relating to their status; and (iv) the organization and duties 
of the General Secretariat of the National Security Council. The power to propose laws, which 
previously belonged to the executive branch and members of the legislative branch , has been given 
to the Turkish Grand National Assembly (TGNA). In the case of a discrepancy between provisions of 
presidential decrees and laws, the provisions in laws shall prevail. In addition, a presidential decree 
becomes null and void if the TGNA enacts a law on the same matter. The authority to establish public 
corporate bodies is granted to both the TGNA and to  the President.  
2.7.  To a large extent trade and investment policy is now regulated through presidential decrees 
and decisions. Presidential decrees regulate the organization and duties of public institutions that 
direct trade and investment policies such as th e Ministry of Trade , the Ministry of Industry and 
Technology, the Economic Policies Council , and the Investment Office. Presidential decisions, which 
are not directly aimed at policy  making, are published on various issues that affect the commercial 
and in vestment environment, such as codes of practice regarding imports and exports, reducing and 
raising customs duties, introducing additional customs duties and additional financial liabilities on 
the import of certain goods  (Section  3.1.3) , and implementing government incentives for 
investments (Section  2.4.3). 
2.8.  The President has the power to ratify, promulgate, terminate, and withdraw from international 
treaties, including trade or investment -related ones; the ratification of such treaties is subject to 
appro val by the TGNA.7 The only change over the review period is that the ratification process is 
regulated by a presidential decree (Presidential Decree No. 9 on the Procedures and Principles 
Regarding the Approval of International Treaties), instead of a law . 
2.9.  Regulations regarding the organization of the Presidency were implemented through 
Decree  Law No.  703 and presidential decrees.8 With the presidential decrees, the Vice Presidency, 
the Directorate of Administrative Affairs, policy councils, and several n ew offices were established. 
The newly established position of Vice  President(s) performs the duties assigned by the President 
and is accountable to him/her. The Directorate of Administrative Affairs takes over many of the 
responsibilities of the Secretari at General of the Presidency and the Prime Ministry (both of which 
were abolished). Nine policy councils were established under the Presidency  in the following areas: 
health and food; culture and arts; education and training; economy; science, technology, and 
innovation; social policy; foreign and security policy; local government; and legal policy. These 
councils are obliged to work closely with the Ministries, other public institutions, state economic 
enterprises, and other administrative units on matters  they oversee.9 Four new offices were 
 
5 Presidential decisions are regulatory actions to implement laws and presidential decrees. As indicated 
by the authorities, they are effectively the same as the former Council of Ministers' decisions. They are subject 
to judicial review.  
6 The issues that can o nly be regulated by law  include,  inter alia , limitation of fundamental rights and 
freedoms, personal immunity, material and spiritual existence, prohibition of forced labour, personal freedom 
and security, privacy of private life, inviolability of domicile , freedom of communication, freedom of residence 
and travel, freedom of expression and dissemination, freedom of the press, temporary and indefinite 
broadcasting rights, property rights, principles regarding crime and punishment, the right to education and  
training, use of coasts, and land ownership.  
7 The responsibilities of the President and the TGNA with respect to ratification and approval of 
international treaties are set out in Articles 87, 90 , and 104 of the Constitution. Viewed at: 
https://global.tbmm.gov.tr/DownloadFile?fileId=a880a8e4 -7e68-45ae-8f38-0182f7e0d82f . 
8 Decree Law No.  703. Viewed a t: https://www.resmigazete.gov.tr/eskiler/2018/07/20180709M3 -1.pdf. 
9 These councils were established under Presidential Decree No.  1 about the Organization of the 
Presidency ( Official Gazette  (2018), No.  3047, 7  October). Their duties are to: (i)  receive feedback from 
ministries, public institutions, civil society and representatives of relevant business sectors, and specialists; WT/TPR/S/ 439 • Türkiye  
 
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 established as public corporate bodies with private budgets attached to the Presidency, namely the 
Digital Transformation Office, the Finance Office, the Human Resources Office, and the Investment 
Office. Various chan ges were made to the organization of Ministries and public institutions; among 
the changes relevant to economic, trade, and investment policy are:  
• The Türkiye Wealth Fund Management Co. was attached to the Presidency (without 
changes);  
• The Ministry of Deve lopment was abolished. Most of its duties and responsibilities, 
together with the budgetary responsibilities of the Ministry of Finance, were transferred 
to the Strategy and Budgeting Directorate under the Presidency ; 
• Some changes were made to the service units in the Ministry of Justice including, 
inter alia, the transfer of the Personal Data Protection Authority to the Ministry of Justice 
(previously it was an affiliated institution of the Prime Ministry);  
• The Ministry of Environment and Urbanization was renamed the Ministry of 
Environment, Urbanization and Climate Change. Its competences were enlarged to 
include a new mission on climate change. It took over the Ministry of 
Interior's  responsibilities for local administrations, the Ministry of Finance's 
responsibilities for public/treasury -owned properties, and the Ministry of Agriculture and 
Forestry's duties for tackling desertification and erosion and also for housing the General 
Directorate of Meteorology. The Turkish Environmental Agency wa s established under 
the Ministry to combat environmental pollution, and the Climate Change Presidency was 
established as an affiliated institution;  
• The Ministry of European  Union Affairs was abolished. Its duties were taken over by the 
Directorate for EU A ffairs, which became an affiliated institution of the Ministry of 
Foreign  Affairs;  
• The Turkish Accreditation Agency was assigned to the Ministry of Foreign Affairs;  
• Within the Ministry of Energy and Natural Resources, the General Directorate of Mining 
Affairs and the General Directorate of Petroleum Affairs were merged to form the 
General Directorate of Mining and Petroleum Affairs as the Ministry's affiliated 
institution. The Nuclear Regulatory Authority was established as the Ministry's 
associated institu tion. The Turkish Atomic Energy Authority, the Boron Research 
Institute, and the Rare Earth Elements Research Institute were merged to form the 
Turkish Energy, Nuclear, and Mineral Research Agency which was created as a related 
institution of the Ministry.  Additionally, the Clean Energy Research Institute and the 
Energy Research Institute operate within this institution;  
• The Ministry of Treasury and Finance was established by merger of the Ministry of 
Finance and the Undersecretariat of the Treasury. It is now responsible for the Turkish 
Statistical Institute (previously under the Ministry of Development), the Capital Markets 
Board, the Development Bank of Türkiye, and the Banking Regulation and Supervision 
Authority (previously under the Off ice of the Prime Minister ), the Central Bank of the 
Republic of  Türkiye (CBRT), Ziraat Bank, Halk Bank, and Vakiflar Bank. The General 
Directorate of Insurance and the Insurance Supervisory Board were abolished, and their 
duties were transferred to the Ins urance and Private Pension Regulation and Supervision 
Agency. The Turkish Statistical Institute was turned into a  related institution of 
the Ministry;  
• The Ministry of Culture and Tourism has taken on various institutions previously 
affiliated with the Prim e Ministry. The Türkiye Tourism Promotion and Development 
 
(ii) monitor policy implementation and developme nts and report them to the President; (iii)  invite 
representatives of ministries, public  institutions, civil society and relevant business sectors, experts, and other 
stakeholders to extended council meetings; (iv)  analyse demands, needs, and impacts relat ed to their 
missions; and (v)  make necessary research and recommendations about the issues within their responsibility.  WT/TPR/S/ 439 • Türkiye  
 
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 Agency was established to support and develop tourism activities as a related institution 
of the Ministry;  
• The International Health Services Joint Stock Company (USHAS) was established as 
a related company of the Ministry of Health; it became operational in 
February  2019 (Section  4.4.5); 
• The Ministry of Industry and Technology was changed to Ministry of Industry and 
Technology. It took over responsibility for investment incentives from the abolished 
Ministry of Economy and the coordination of sectoral and regional growth and 
development agencies from the abolished Ministry of Development. The Turkish Space 
Agency was created and is related to the Ministry; it is responsible for executing the 
aviation and space -related activities previously carried out by the Ministry of 
Transport ation and Infrastructure. The Ministry is also assigned responsibilities for 
implementing the National Technology Move Programme10, which is aimed at developing 
high value -added local production of critical technical products (Section  2.4.3);  
• The Ministry of Food, Agriculture and Livestock and the Ministry of Forestry and Water 
were merged under the Ministry of Agriculture and Forestry;  
• The Ministry of Customs and Trade and Mini stry of Economy were merged under the 
Ministry of Trade;  and 
• The Ministry of Transport and Communications was renamed the Ministry of 
Transportation and Infrastructure. The task of installing intelligent transportation 
systems was assigned to the Ministry.  
2.10.  In February 2022, a Regulation on the Procedures and Principles of Preparation of Legislation 
was issued through Presidential Decision No.  5210, which, inter alia , introduces new provisions that 
principles of consultation and participation of governmental  and non -governmental stakeholders 
should be taken into account while drafting legislation, and that a reasonable period of time should 
be left, where possible, between the publication date and the entry into force of draft legislation 
affecting the econom ic and commercial areas and the business and investment environment. Under 
Article  26 of the Regulation, the preparation of a regulatory impact analysis (RIA) for draft laws and 
presidential decrees is envisaged. In this regard, a Presidential Decision on Procedures and Principles 
for the Preparation of Regulatory Impact Analysis was issued in June 2022; this,  inter alia,  specifies 
the draft laws or presidential decree s for which RIAs are  required  and the issues to be included in 
the analysis.11 As indicate d by the authorities, RIAs will be undertaken once guidance on how to 
conduct them has been issued , and they will be publicly available.  
2.11.  Since January 2016, new trade and investment -related laws have entered into force in the 
areas of product safety and te chnical regulations (Section  3.3.2); industrial property 
(Section  3.3.7); and data protection (Section  2.5). Existing laws have been amended in the areas 
of customs  (Section  3.3.1), Technology Development Zones (Section  2.4.4.1) , Free Zones 
(Section  2.4.4.3) , anti -dumping (Section  3.1.6), local content measures (Section  3.1.7.1), 
competition policy (Section  3.3.4.2) , and copyright (Section  3.3.7.1).  
2.2  Trade policy formulation and objectives  
2.12.  The Ministry of Trade has responsibility for customs a nd foreign trade in Türkiye. Its mandate 
is set out in Presidential Decree No.  112, and includes: (i)  determining and implementing policies 
regarding domestic and foreign trade and customs, in coordination with other stakeholders; 
(ii) maintaining commerci al and customs relations with other countries and international 
 
10 Digital Transformation Office (2021), Türkiye's First Artificial Intelligence Strategy , 20 August. Viewed 
at: https://cbddo.gov.tr/en/news/6135/turkiye -nin-ilk-yapay -zeka-
stratejisi#:~:text=The%20N ational%20Technology%20Move%20aims,to%20breakthroughs%20in%20critical
%20technologies . 
11 Presidential Decision No.  5681. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2022/06 /20220604 -13.pdf . 
12 Presidential Decree No.  1 on Organization of the Presidency. Official Gazette  (2018),  No. 30474 , 
10 July. WT/TPR/S/ 439 • Türkiye  
 
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 organizations; (iii)  overseeing domestic and foreign goods and services trade; (iv)  ensuring the 
policies of other national public institutions are in conformity with Türkiye's  international o bligations, 
including those arising from WTO agreements; (v)  ensuring efficient customs services and 
monitoring thereof; (vi) implementing customs controls and undertaking inspections; (vii)  preparing 
customs tariff schedules and collecting tariffs and rel ated fees; and (viii)  monitoring and inspection 
of goods that are sold in the internal market.  
2.13.  Trade policy objectives are contained in the Turkish Exports Strategy for 2023, which was 
launched by the Ministry of Trade (the Ministry of Economy at the time)  and the Turkish Exporters 
Assembly in 2009. It sets a long -term target of Türkiye having a 1.5% share in world trade and 
an 80% export/import ratio for goods by 202313, inter alia , through shifting production from 
low-technology sectors to high value -added areas and generating investments in high -tech sectors.14 
To reach these targets, the Government is supporting firms to expand their production capacity, 
particularly in the target sectors of machinery, automotive, electric -electronic, chemicals, and food . 
2.14.  Trade policy objectives are also contained in the Government's Eleventh Development 
Plan (2019 -23), which emphasizes the importance of exports of goods and services for ensuring 
balanced economic growth and in improving Türkiye's position in the hierarch y of GVCs . It foresees 
an export -orientated transformation of the Turkish economy, inter alia, through policies to increase 
the competitiveness and productivity of the industrial sector as well as through support to sectors 
with a competitive potential and  a high foreign trade deficit. The Plan also envisages the negotiation 
of new, and expansion of existing, free trade agreements, as well as the Government's  aim to make 
the country a regional hub for trade in e -commerce.15 
2.15.  Türkiye has also been implementin g a new guiding strategy for faraway countries 
since July 2022. This lists countries of focus for Turkish exports, based on the following criteria: 
countries that are more than 2,500  km from Türkiye, that import over USD  60 billion of merchandise 
from all over the world, and that Türkiye has a share of less than 1% in their imports. The 
18 countries selected are Australia, Brazil, Canada, China, Chile, India, Indonesia, Japan, the 
Republic of Korea, Malaysia, Mexico, Nigeria, Pakistan, Philippines, Thailand , Viet Nam, South  Africa, 
and the United  States. With this strategy, Türkiye aims to quadruple the exports of Turkish goods 
to these countries from recent levels (approximately USD  20 billion on average in  2018-20) to 
around USD  80 billion.16 
2.16.  As indicated by the authorities, the Ministry of Trade has institutional ties with the Turkish 
Exporters Assembly (TIM), the Foreign Economic Relations Board (DEIK) , and the chambers of 
commerce, and it consults on trade policy issues on an ad hoc  basis on specific iss ues. 
Türkiye's  WTO Coordination Council was renewed by Presidency Circular No.  2019/7. Its role is to 
ensure policy coherence and information -sharing among relevant stakeholders regarding 
WTO Agreements and negotiations. As indicated by the authorities, be sides the relevant public 
institutions, NGOs, universities, business associations , and private sector representatives could be 
included in the meetings depending on the agenda. In case technical expertise and evaluations are 
needed in the negotiations, sub -working groups c an be established , which  are composed of relevant 
stakeholders, including NGOs. There has been no recent meeting of the Council.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.17.  Türkiye, a contracting party to the GATT since 1951, has been a WTO Member since  1995. It 
is a participant in the Information Technology Agreement and is an observer to the Agreement on 
Government Procurement and the Agreement on Trade in Civil Aircraft. T ürkiye accepted the  2014 
Protocol concerning the Trade Facilitation Agreement on 16  March  2016 and it participated in the 
 
13 This ratio considers the total value of exports of goods divided by the total value of imports of goods.  
14 Ministry of Trade, The Exports Strategy of Turkey for 2023 . Viewed at: 
https://www.trade.gov.tr/data/5b90d2eb13b8760beca887fd/2023%20EXPORT%20STRATEGY -
15%20%C5%9Eubat%202022.pdf . 
15 Presidency of Strategy and Budget, Eleventh Development Plan (2019 -2023) . Viewed at: 
https://www.sbb.gov.tr/kalkinma -planlari/ . 
16 Ministry of Trade, Strategy for Far Away Countries . Viewed at: https://ticaret.gov.tr/ihracat/uzak -
ulkeler -stratejisi . WT/TPR/S/ 439 • Türkiye  
 
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 following Joint Statement Initiatives issued at the WTO's 11th Ministerial Conference 
in December  2017: e -commerce; investment facilit ation for development; micro, small, and 
medium -sized enterprises; domestic regulation of trade in services; and trade and environmental 
sustainability. It supported the Buenos  Aires Declaration on Women and Trade and is a participant 
in the Trade and Envi ronmental Sustainability Structured Discussions. During the 2022  WTO 
12th Ministerial Conference, the Minister of Trade of Türkiye emphasized the importance of 
strengthening and reforming the multilateral trading system, including by reforming the dispute 
settlement mechanism, updating the WTO rule -book in certain fields such as agriculture, establishing 
new rules to reflect today's global conditions, and delivering solutions to pressing global issues 
including pandemic -related problems, global overfishing,  and food security.17 
2.18.  Since 1  January  2016, Türkiye has been involved in 4 new dispute settlement cases as 
complainant, 3 cases as respondent, and 37 cases as third party (Table  2.1). It has maintained a 
solid record of notifications to the WTO (Table  A2.1), with those outstanding in the areas of 
agriculture (export subsidies notifications from 2016 -21 and domestic support notifications 
from 2017-21) and intellectual property rights (Industrial Property Code (Section  3.3.7)). 
Additionally, Türkiye's regiona l trade agreements (RTAs) with the Bolivarian Republic of Venezuela, 
Azerbaijan , and the Islamic Republic of Iran ; its participation in the Developing 8 (D -8) preferential 
agreement and the Organisation  of Islamic Cooperation's Trade Preferential System  (OIC-TPS); and 
recent amendments to its RTAs with Bosnia and Herzegovina and with Montenegro have not yet 
been notified to the WTO.  
Table 2.1 Türkiye's participation in WTO dispute settlement cases, January 2016 to 
October 2022  
 Cases  
(date consultations requested)  
As complainant  DS595 European  Union – Safeguard Measures on Certain Steel Products  (13/03/2020)  
DS564 United  States – Certain Meas ures on Steel and Aluminium Products  (15/08/2018)  
DS523 United  States – Countervailing Measures on Certain Pipe and Tube  
Products  (08/03/2017)  
DS513 Morocco – Anti-Dumping Measures on Certain Hot -Rolled Steel from 
Turkey  (03/10/2016)  
As respondent  DS583 Turkey – Certain Measures Concerning the Production, Importation and Marketing of 
Pharmaceutical Products  (02/04/2019). Complainant: European  Union  
DS573 Turkey – Additional Duties on Imports of Air Conditioning Machines from Thailand  
(05/12/2018). Complainant: Thailand  
DS561 Turkey – Additional Duties on Certain Products from the United  States  (16/07/2018). 
Complainant: United  States  
As third party  DS602 (22/06/2021); DS600 (15/01/2021); DS597 (30/10/2020); DS593 (09/12/2019); 
DS592 (22/11/2019); DS591 (15/11/2019); DS590 (11/09/2019); DS588 (02/09/2019); 
DS585 (03/07/2019); DS584 (10/05/2019); DS582 (02/04/2019); DS577 (29/01/2019); 
DS576 (28/01/2019); DS567 (01/10/2018); DS566 (27/08/2018); DS560 (16/07/2018); 
DS559 (16/07/2018); DS558 (16/07/2018); DS557 (16/07/2018); DS556 (09/07/2018); 
DS554 (29/06/2018); DS552 (12/06/2018); DS551 (05/06/2018); DS550 (01/06/2018); 
DS548 (01/06/2018);DS547 (18/05/2018); DS544 (05/04/2018); DS543 (04/04/2018); 
DS542 (23/03/2018);  DS533 (28/11/2017); DS526 (31/07/2017); DS516 (12/12/2016); 
DS512 (14/09/2016); DS511 (13/09/2016); DS501 (09/09/2016); DS505 (30/03/2016); 
DS504 (15/03/2016)  
Source:  WTO, Türkiye and the WTO . Viewed at: 
https://www.wto.org/english/thewto_e/countries_e/turkey_e.htm . 
2.3.2   Regional and preferential trade agreements  
2.3.2.1   Regional trade agreements  
2.19.  Türkiye has 26 RTAs in force with 63 trading partners. It continues to negotiate RTAs, which 
it considers provide multiple benefits including increased productivity and reduced costs through 
enabling economies of scale in production; increased national income, social welfare , and 
competitiveness; a more attractive environment for investment; and stre ngthened ties between 
trading partners and their respective business communities.  
2.20.  As indicated by the authorities, without prejudice to WTO provisions, the 
Türkiye -EU Customs  Union , in force since 1996,  constitutes the main legal basis for Türkiye's RTAs 
 
17 WTO document WT/MIN(22)/ST/32, 12  June 2022.  WT/TPR/S/ 439 • Türkiye  
 
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 and preferential trade agreements (PTAs) , since it has provisions obliging Türkiye to align its 
commercial policy with the E uropean  Union's Common Commercial Policy. In the context of this 
Review, the Turkish  authorities indicated that this alignment has be come more challenging from  the 
Turkish  perspective since the E uropean  Union started concluding deep and comprehensive RTAs. 
They noted some of the E uropean  Union's RTA partners have been reluctant to negotiate RTAs with 
Türkiye, as once their industrial pr oducts have entered the EU  market, they can then enter the 
Turkish market free of customs duties. They emphasized the need to address this asymmetric 
structure of the Customs Union. The European  Union is by far  Türkiye's main trading partner, 
accounting fo r 31.5% of imports of goods and 41.9% of exports of goods in 2021 (Section  1.3.1). 
Türkiye's 1995 Customs Union Agreement with the European  Union covers only liberalization of 
goods and not services. Tariffs on industrial goods and processed agricultural p roducts have been 
abolished under the agreement, and these goods are subject to the  European  Union's common 
external tariff. Agricultural, coal, and steel products are governed by bilateral trade concessions.18 
Türkiye has additional RTAs in force with Israel, North  Macedonia, Bosnia and Herzegovina, 
Palestine, Tunisia, Morocco, Egypt, Albania, Georgia, Montenegro, Serbia, the Republic of Korea, 
Mauritius, the Islamic Republic of Iran, Malaysia, the D-8, the Republic of Moldova, Faroe Islands, 
Singapore, the European Free  Trade Association ( EFTA), Kosovo19, the Bolivarian Republic of 
Venezuela, the United  Kingdom, Azerbaijan, and the  OIC-TPS. 
2.21.  Most of Türkiye's RTAs cover goods only, with services provisions and c ommitments contained 
only in the recent RTAs with Bosnia and Herzegovina, Montenegro, Serbia, the Republic of Korea, 
Singapore, and the modernized RTA with EFTA. In recent years, some RTAs have included provisions 
on the environment  (Chile, the Republic of  Korea, Malaysia, and EFTA), e -commerce (Serbia, the 
Republic of  Korea, Malaysia, Singapore, and EFTA), labour (Chile, the Republic of Korea, and EFTA), 
and investment liberalization  (the Republic  of Korea and Singapore). Several of Türkiye's RTAs 
contain provisions on SMEs and investment promotion. Factual presentations on all but a few of 
these agreements have been issued by the WTO  Secretariat.20 Some RTAs have not been notified to 
the WTO (Section  2.3.1).  
2.3.2.1.1   RTA developments over the review period  
2.22.  In 2016, the European Commission proposed to modernize the Türkiye -EU Customs Union to 
extend bilateral trade relations to services, public procurement, and sustainable development. 
However, the  European Council has not yet adopted the mandate.21 Türkiye h as been a candidate 
for accession to the European  Union since 1999; however, accession negotiations have been at a 
standstill since  2018.22 In 2021, Türkiye and the European Commission signed agreements granting 
Türkiye  association status to three  programm es for the period 2021 -27, namely the 
European  Union's Framework Programme for Research and Innovation (Horizon Europe 
Programme); the EU programme for education, training, youth, and sport (ERASMUS+) ; and the 
Solidarity Corps.23 
2.23.  Over the review period , new RTAs entered into force with the Republic of Moldova, the 
Faroe  Islands, Singapore, Kosovo24, the Bolivarian Republic of Venezuela, the United  Kingdom, 
 
18 The Customs Union Agreement is described in detail in  Türkiye's previous Review. WTO  document 
WT/TPR/S/331/Rev.1, 9  August  2016.  
19 References to Kosovo shall be understood to be in the context of UN Security Council 
Resolution  1244 (1999).  
20 As of 1  August  2022, the only agreements for which factual presenta tions had not been issued were 
the RTAs between Türkiye and Palestine, Serbia (services); the Faroe Islands; the Republic of Korea (services); 
EFTA (modernized); Kosovo; and the Bolivarian Republic of Venezuela. (Note that references to Kosovo shall 
be und erstood to be in the context of UN Security Council Resolution 1244 (1999) .) 
21 European Commission, EU Trade by Country/Region . Viewed at: 
https://ec.europa.eu/trade /policy/countries -and-regions/countries/Türkiye/ . 
22 European Commission, European Neighbourhood Policy and Enlargement Negotiations: Turkey . 
Viewed at: https://ec.europa.eu/neighbourhood -enlargement/enlargement -policy/negotiations -
status/Türkiye_en ; and Council of the European  Union (2018), Council Conclusions on Enlargement and 
Stabilisation and Association Process . Viewed at: https://www.consilium.europa.eu/media/35863/st10555 -
en18.pdf . 
23 European Commission (2021), "Turkey Joints the Horizon Europe, Erasmus+ and Solidarity Corps 
Programmes", 27  October. Viewed at: https://research -and-innovation.ec.europa.eu/news/all -research -and-
innovation -news/turkey -joins-horizon -europe -erasmus -and-solidarity -corps -programmes -2021-10-27_en . 
24 References to Kosovo shall be understood to be in the context of UN Security Council 
Resolution  1244 (1999).  WT/TPR/S/ 439 • Türkiye  
 
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 Azerbaijan, OIC -TPS partners , and the D -8. Moreover, some existing RTAs were expanded to include 
provisions on services and/or investment and in some cases increased agricultural 
liberalization  (Table  2.2). In addition, the RTA between Türkiye and Morocco was amended 
in April 2022 to enable Morocco to reintroduce customs duties (at the MFN level of 90%) on  certain 
industrial products originating in Türkiye for a five -year period .25 The RTA with Jordan was 
terminated in 2018.  
Table 2.2 Entry into force of new, and expansion of existing RTAs, 2016 -22 
Trading 
partner(s)  Developments  
OIC-TPSa Entry into force of the OIC -TPS – July 2022  
The OIC-TPS provides for reciprocal preferential access by providing a margin of preference 
on 2003 MFN duty rates. The tariff preferences apply to goods covering 7% of e ach contracting 
member's total HS lines with tariff rates above 10%. Each country is free to choose which tariff 
lines to liberalize. Tariffs above 25% are reduced to 25%; tariffs above 15% and up to  25% are 
reduced to 15%; and tariffs above 10% and up to 15% are reduced to 10%. Completion of the 
tariff liberalization transition period for Türkiye is 2025.  
Montenegro  Entry into force of a revised Protocol I (on liberalization of agricultural products) and a 
new Protocol III (on trade in services) to the RTA between Türkiye and Montenegro – 
December 2021  
- Under the revised Protocol I, further concessions were provided on certain agricultural and 
processed agricultural products, such as meat, fruits, vegetables, chocolates, pasta, and 
mushrooms.  
- Schedule s of services specific commitments follow a positive list approach. GATS+ 
commitments in business tax planning and consulting services; architectural services, integrated 
engineering services; landscape architecture services; veterinary services; certain d atabase 
services; research and development services (excluding R&D financed in whole or in part by 
public funds); rental/leasing services without operators; some subsectors of technical testing and 
analysis services; maintenance and repair of equipment (no t including maritime vessels, aircraft 
or other transport equipment); building -cleaning services; photographic services except 
speciality photography services; printing services; publishing services; convention services; 
translation and interpretation serv ices; combined postal and courier services with further 
commitments; audio -visual services (excluding broadcasting); distribution services; adult 
education services; some sectors of recreational, cultural and sporting services; supporting 
services for road  transport; and services auxiliary to all modes of transport.  
- Annexes on telecommunications services, financial services, e -commerce, co -production, and 
movement of natural persons.  
Bosnia and 
Herzegovina  Entry into force of revisions to the RTA between  Türkiye and Bosnia and Herzegovina 
to incorporate a chapter on trade in services – August 2021  
- Schedules of services specific commitments follow a positive list approach. GATS+ 
commitments in business tax planning and consulting services; architectural services, integrated 
engineering services; landscape architecture services; veterinary services; certain database 
services; rental/leasing without operators; some subsectors of technical testing and analysis 
services; maintenance and repair of equipment (n ot including maritime vessels, aircraft or other 
transport equipment); building -cleaning services; photographic services (except speciality 
photography services); printing services; publishing services; convention services; translation 
and interpretation s ervices; combined postal and courier services with further commitments; 
audio -visual services (excluding broadcasting); distribution services; adult education services; 
some subsectors of recreational, cultural and sporting services; ground handling servic es 
(excluding flight operations, crew administration and flight planning); airport operation and 
management services; supporting services for road transport; services auxiliary to all modes of 
transport.  
- Full MFN commitment. Annexes on telecommunications  services, financial services, road 
transport and logistics services, e -commerce, domestic regulation and movement of 
natural  persons.  
Azerbaijan  Entry into force of an RTA between Türkiye and Azerbaijan – March 2021  
- Reciprocal liberalization of a limit ed range of agricultural and food products.  
United  Kingdom  Entry into force of an RTA between Türkiye and the United Kingdom – May 2021  
The agreement was provisionally put into effect on 1  January  2021 before entering into force in 
May. It provides for liberalization of goods only with elimination of customs duties on industrial 
products (with exceptions) and elimination/reduction of customs duties on agricultural products 
(with exceptions) upon entry into force of agreement. Tariff rate quo tas (TRQs) are applied. 
2,750 of Türkiye's  tariff lines remain dutiable (17.2% of total).  
Moldova, Rep ublic 
of Entry into force of an RTA between Türkiye and the Republic of Moldova – May 2021  
The agreement provides for liberalization of goods only with elimination of customs duties on 
industrial products and some agricultural products (meat, dairy products, fruits, cereals, oil, 
prepared agricultural goods, wine, and tobacco) by Türkiye upon entry into force of agreement. 
TRQs are applied. 2,825  tariff lines remain dutiable (17.1% of total).  
 
25 Official Gazette  (2022), No.  31819, 24  April. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2022/04/20220424 -2.pdf. WT/TPR/S/ 439 • Türkiye  
 
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 Trading 
partner(s)  Developments  
Bolivarian Republic 
of Venezuela  Entry into force of an RTA between Türkiye and the Bolivarian Republic of Venezuela – 
August 2020  
The agreement provides for liberalization of goods only. Elimination of customs duties or partial 
tariff reductions upon entry into force of the agreement for certain tariff lines and staged 
liberalization over a three - to seven -year period until 2027, for others. Certain products are 
excluded from liberalization. TRQs are applied.  
Kosovob Entry into force of an RTA between Türkiye and Kosovo – September 2019  
The agreement provides for liberalization of goods only. Türkiye abolished customs duties on 
imports of all industrial goods, and selected agricultural goods upon entry into for ce of the 
agreement. No TRQs are applied.  
Serbia  Entry into force of a revised Protocol I (on liberalization of agricultural products) and a 
new Protocol III (on services) to the RTA between Türkiye and Serbia – June  2019  
- Liberalization of various agric ultural products as set out in Protocol I, including flowers, trees, 
seeds, fruits and fruit juices, vegetables, dairy products, fish, confection ery, infant preparations, 
pasta, bread, nuts, soup , and wine.  
- Schedules of services specific commitments foll ow a positive list approach. GATS+ 
commitments in business tax planning and consulting services; architectural services, integrated 
engineering services; landscape architecture services; veterinary services; certain database 
services; R&D services (excludi ng R&D financed in whole or in part by public funds); 
rental/leasing services without operators; some subsectors of technical testing and analysis 
services; maintenance and repair of equipment (not including maritime vessels, aircraft , or other 
transport e quipment); building -cleaning services; photographic services except speciality 
photography services; printing services; publishing services; convention services; translation and 
interpretation services; combined postal and courier services with further com mitments; 
distribution services; adult education services; some sectors of recreational, cultural , and 
sporting services; supporting services for road transport; and services auxiliary to all modes of 
transport.  
- Annexes on telecommunications services, fi nancial services, road transport and auxiliary 
services, e -commerce, domestic regulation , and movement of natural persons and co -production 
on film or TV series.  
EFTAc Entry into force of the modernized RTA between Türkiye and EFTA to include services, 
a new chapter on trade and sustainable development and updated agricultural 
agreements with Switzerland – 1 October  2018  
- Schedules of services specific commitments follow a positive list approach. GATS+ 
commitments in taxation services ; integrated engineering services ; landscape architecture 
services ; veterinary services ; database services including data storage, data hosting and web 
hosting services; R&D services (excluding R&D financed in whole or in part by public funds ); 
rental/leasi ng without operators; composition and purity testing and analysis services; 
building -cleaning services; printing publishing services; convention services; translation and 
interpretation services; combined postal and courier services with further commitment s; audio -
visual services except broadcasting; distribution services; some subsectors of recreational, 
cultural , and sporting services; maritime auxiliary services; ground -handling services; airport 
management services; supporting services for road transpor t; services auxiliary to all modes of 
transport except maritime and internal waterways; and hairdressing and other beauty services.  
Annexes on telecommunications services, financial services, e -commerce, movement of natural 
persons, international road tran sport and logistics services, co -production, healthcare services, 
recognition of qualifications, and tourism and travel services.  
The bilateral agricultural agreements have been updated to include concessions previously 
granted autonomously through an exch ange of letters, as well as new concessions for 
Switzerland on imports into Türkiye of certain vegetables, meat products, cheeses, fruit juices, 
wine, and other alcoholic beverages.  
Korea,  Republic of  Expansion of RTA with Republic of Korea to include ser vices and investment – 
August  2018  
- Schedules of services specific commitments follow a positive list approach. GATS+ 
commitments in integrated engineering services; veterinary services; R&D services on natural 
sciences; rental/leasing services without op erators ; building -cleaning services ; printing services ; 
publishing services ; convention services ; translation and interpretation services ; audio -visual 
services except broadcasting ; and some subsectors of recreational, cultural , and sporting 
services.  
- Annexes on telecommunication services, financial services, and temporary movement of natural 
persons.  
- The chapter on investment replaces a 1991 agreement on reciprocal promotion and 
investments between the two countries; it inco rporates principles of national treatment and 
most-favoured -nation (MFN) treatment for investors and investments during the market access 
stage, with some listed exceptions.  WT/TPR/S/ 439 • Türkiye  
 
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 Trading 
partner(s)  Developments  
Singapore  The entry into force of an RTA with Singapore – October 2017  
- Covers liberalization of goods and services, and inter alia  has chapters on investment and 
e-commerce.  
- Staged annual customs duty liberalization from entry into force of agreement until 2027 for 
Türkiye. At the end of this transition period, 828 of its  tariff lines will remain subject to duties. No 
TRQs are applied.  
- Negative list approach to scheduling of services commitments. GATS+ commitments for 
Modes  1-3 in professional services, computer and related services, R&D services, other business 
services , telecommunications services, audio -visual services, construction and related 
engineering services, distribution services , and other environmental services.  
- Sector -specific chapters on telecommunications and financial services.  
- The investment chapter replaces the bilateral investment treaty previously in force and 
incorporates principles of national treatment and most -favoured -nation (MFN) treatment for 
investors and investments during the market access stage, with some listed exceptions.  
Faroe  Island s The entry into force of an RTA with Faroe Islands – October 2017  
- Elimination of customs duties on imports of industrial goods upon entry into force of 
agreement. With respect to agricultural goods, Türkiye committed to give preferential treatment 
not less favourable than accorded in January 2014 to EFTA member states.  
D-8d The entry into operation of the D -8 Preferential Agreement – July 2016  
The agreement provides for a margin of preference on MFN duty rates through tariff reductions 
to 8% of the tariff lines in each country's tariff schedule that exceed  10%. The member states 
are free to choose their designated tariff lines. Tariffs are reduced within three bands: (i)  from 
above 25% down to 25%; (ii)  from between 15% -25% to 15%; and (iii)  from 10%-15% to  10%. 
LDC members have longer timeframes to reduce or eliminate tariffs.26 Türkiye reduced its tariffs 
in four annual instalments ending in 2020.  
a OIC-TPS participants are the Kingdom of Bahrain, Bangladesh, the Islamic Republic of Iran, Jordan , 
the State of Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, the Kingdom of Saudi Arabia, 
Türkiye , and the United Arab Emirates.  
b References to Kosovo shall be understood to be in the context of UN Security Council 
Resolution  1244 (1999).  
c EFTA compr ises Switzerland, Norway, Iceland, and Liechtenstein.  
d The D -8 participating economies are Bangladesh, Egypt, Indonesia, the Islamic Republic of Iran, 
Malaysia, Nigeria , Pakistan, and Türkiye ; however, as of September 2022, only 
the Islamic  Republic  of Iran, Malaysia, and Türkiye were implementing the agreement.  
Note:  RTAs are reciprocal preferential trade agreements between two or more partners.  
Source : WTO RTA database. Viewed at: http://rtais.wto.org ; Ministry of Tr ade, Free Trade Agreements . 
Viewed at: https://www.trade.gov.tr/free -trade -agreements ; UN Comtrade database; and 
information provided by the authorities on GATS+ commitments.  
2.24.  RTAs have been sig ned with Lebanon, Qatar, Sudan, Ukraine, Pakistan, and Uzbekistan and 
are awaiting ratification. Negotiations are ongoing to conclude RTAs with Cameroon, Colombia, 
Djibouti, Ecuador, the Gulf Cooperation Council, Indonesia, Japan, MERCOSUR, Mexico, Peru, 
Seychelles, Somalia, Thailand, and the United Arab Emirates. A stand -alone trade in services 
agreement with Belarus is under negotiation. Additionally, the following RTAs are being modernized:  
• Negotiations on trade in services and investment under the Türki ye-Malaysia RTA have 
been conclude d and the expansion protocol was signed in September 2022 . 
• A protocol on services to the Türkiye -Georgia RTA and revised product lists regarding 
concessions on agricultural products were signed in September 2022. As of 
November  2022, the protocol had not yet been ratified . 
• Negotiations have started to update the  Türkiye -North Macedonia RTA to include trade 
in services and additional agricultural products . 
• Negotiations have started to update the  Türkiye -Republic of Moldova RTA to include 
trade in services and additional agricultural products.  
 
26 Ministry of Foreign Affairs, Developing Eight (D -8): General . Viewed at: https://www.mfa.gov.tr/_d -
8_.en.mfa . WT/TPR/S/ 439 • Türkiye  
 
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 2.25.  A Memorandum of Understanding (MOU) was signed between Türkiye and Azerbaijan in  2021 
to promote cooperation in the field of digital trade; this is a first s tep in exploring the launch of 
negotiations on a Digital Economy Partnership Agreement.27 
2.26.  Türkiye is a signatory to the Economic Cooperation Organization (ECO) Trade 
Agreement  (ECOTA) with Afghanistan, the Islamic Republic of Iran, Pakistan, and Tajikistan.28 The 
Agreement falls under the auspices of the ECO, which has a broader membership than just these 
countries and a larger remit.29 The ECOTA provides for tariff liberalization over an eight -year period 
to achieve a maximum tariff of 15% on 80%  of tariff lines. The agreement was signed in  2003 and 
entered into force de jure  by virtue of Article  39 in 2008, when the Islamic Republic of Iran submitted 
its instrument of ratification (being the fifth member state to do so). However, it could not ent er into 
force de facto since concession lists were not negotiated or exchanged among the parties. Hence, 
there are no trade preferences currently being provided under the Agreement.  As set out in the 
ECO's  Vision  2025, adopted in 2017, efforts to enhance t rade involve the "early operationalization 
of ECOTA followed by further incremental trade liberalization to ultimately make ECO a free trade 
area".30 As indicated by the authorities, no progress has been achieved since the Vision's adoption 
and the Agreeme nt is not expected to become operational soon.  
2.27.  Türkiye remains 1 of 13 members of the Black Sea Economic Cooperation (BSEC).31 As 
indicated in Türkiye's previous Review, a declaration to launch an RTA was made in 1997. However , 
as of August  2022, this init iative had still not been implemented. The authorities indicate d that 
establishing an RTA among interested members remains a long -term objective.  
2.3.2.2   Preferential trade arrangements  
2.28.  EU Regulation No.  978/2012/EU, as amended, remains the basis for Türkiye's GSP  scheme 
(including the Everything But Arms (EBA) scheme), which is contained in Import 
Communiqué  2015/1.32 Rules of origin requirements to benefit from unilateral preferences have not 
changed since  201433, and were notified by Türkiye to the WTO in 2019.34 While Türkiye applies the 
same GSP rules as the E uropean  Union, it narrowed the scope of beneficiary countries and product 
groups in  2018, including terminating GSP+ preferences to the Plurinational State of Bolivia, 
Cabo Verde , and Mongolia.  
2.29.  Türkiye's p references are extended to a total of 66 economies in 2022 compared 
to 88 in 2015. Azerbaijan, China, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, India, 
Indonesia, the Islamic Republic of Iran, Iraq, Maldives, Marshall Island s, the Republic of Moldova, 
Nicaragua, Panama, Paraguay, Peru, El Salvador, Thailand, Turkmenistan, Ukraine, and Viet  Nam 
have been graduated from the scheme, and Kenya was added to the list. Sectoral exclusions apply 
for Bangladesh (textiles and clothing); Cambodia (clothin g and footwear); Ethiopia (certain textiles); 
Nepal (certain textiles); Pakistan (textiles, clothing, leather products, and furs/skins); and 
Sri Lanka  (clothing).  Each year, the beneficiary countries and exempt product groups are 
reconsidered and listed in  the annexes of the Import Regime (Section  3.1.3), which is published in 
the Official Gazette.35 
 
27 Official Gazette  (2021), No.  31579, 25  August. Viewed at: 
https://www.resmigazete.gov.tr/ eskiler/2021/08/20210825 -2.pdf. 
28 ECOTA. Viewed at: https://www.worldtradelaw.net/document.php?id=fta/agreements/ecota.pdf . 
29 The ECO has nine members and promotes economic, technical, and cultural cooperation. See 
WTO document WT/TPR/S/331/Rev.1, 9  August  2016.  
30 ECO (2017), ECO Vision 2025: An Overview. Viewed at: 
http://www.eco.int/parameters/eco/modules/cdk/upload/content/general_content/3624/150814561891935csf
dk3kfgkbqp3np70hjp595.pdf . 
31 The BSEC members are Albania, Armenia, Azerbaija n, Bulgaria, Greece, the Republic of Moldova, 
North  Macedonia, Romania, the Russian  Federation, Serbia, Türkiye, and Ukraine.  
32 EU Regulation No.  978/2012/EU, as amended. Viewed at: https://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=CELEX%3A02012R0978 -20220101 ; and Import Communiqué 2015/1, Official 
Gazette  (2014), No.  29222 bis 2, 31 December.  
33 These are contained in Ministerial Decree No.  2014/7064 on Determin ation of Origin of Goods 
Benefiting from Preferential Regime for the Purposes of the Generalized System of Preference. Official 
Gazette  (2014), No.  29222 bis 4, 31 December.  
34 WTO document G/RO/LDC/N/TUR/1, 18  September  2019.  
35 GSP country beneficiaries for  2022 are listed in the Official Gazette  (2021), No.  31706 , 
31 December  2021, pp. 518-541. WT/TPR/S/ 439 • Türkiye  
 
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 2.3.3   Other agreements and arrangements  
2.30.  Over the review period, Türkiye ratified or approved trade and economic cooperation 
agreements with Zimbabwe, Togo, Sao Tom é and Principe, Lesotho, Mozambique, Jordan, Burundi, 
and Myanmar. These agreements provide for strengthened cooperation in specific areas that differ 
in each respective agreement. Some of the areas of cooperation are trade development, investment, 
promotion  of employment and competitiveness, infrastructure development, customs, consumer 
protection, intellectual property rights, human resources, science and technology, 
SME development, and specific sectors/economic activities. Türkiye also signed an MOU on tr ade 
and economic cooperation with Nigeria, a protocol on the development of trade and economic 
cooperation with Northern Cyprus, an agreement on economic cooperation with Bulgaria, and an 
agreement on mutual trade promotion with Belarus.  
2.4  Investment regime  
2.4.1   Overview and framework for FDI  
2.31.  Türkiye continues to recognize the importance of attracting FDI for its economic growth and 
has in put in place several schemes and initiatives in this regard (see below). The stock of FDI is 
concentrated in the services sect or, particularly in wholesale and retail trade services and financial 
and insurance activities (Section  1.3.3).  
2.32.  The Investment Office of the Presidency is responsible for promoting investment opportunities 
in Türkiye and for assisting investors, both domes tic and foreign.36 It houses the secretariat of the 
Investment Advisory Council, which brings together senior executives from multinational companies 
to address investment barriers and reforms.37 In 2021, the Investment Office of the Presidency 
released it s Foreign Direct Investment Strategy for the period 2021 -23. The Strategy's aim is to 
increase Türkiye's share in global FDI inflows to 1.5% in  2023 (from an estimated 0.8% in  2020) 
and to attract quality FDI, which is defined as investments supporting tec hnological transformation, 
employment, and the current account balance. It also highlights the importance of aligning the 
business environment with the United Nations Sustainable Development Goals (SDGs), especially 
the green economy and sustainable develo pment, to meet the needs of foreign investors. It 
contains  11 strategies and 72 actions, as well as a framework for monitoring and evaluation.38 The 
authorities indicate that they anticipate all targets will be fully achieved by end -2023.  
2.33.  The legal framewo rk governing foreign investment is composed of the Foreign Direct 
Investment Law No.  4875 (last amended in 2003)39 and its implementing regulation, the Regulation 
for Implementation of the Foreign Direct Investment Law.40 Türkiye does not have an investmen t 
screening process. FDI restrictions are contained in various laws, and apply to 12 sectors: 
TV broadcasting, civil aviation, maritime transport, port services, fishing, accounting, auditing and 
 
36 The Support and Promotion Agency was established in 2006 under the Prime Minister's Office; it was 
restructured in 2019 through Presidential Decree No.  1 of 24 October  2019 to become the Investment Office of 
the Presidency.  
37 Coordination Council for the Improvement of the Investment Environment  (YOIKK), Investment 
Advisory Council of Turkey (IAC) . Viewed at: https://www.yoikk.gov.tr/Home/Detay/514?MID=7 . 
38 Investment Office, Foreign Direct Inve stment (FDI) Strategy of Turkey, 2021 -2023. Viewed at: 
https://www.invest.gov.tr/en/library/publications/list s/investpublications/Türkiye -foreign -direct -investment -
strategy -2021-2023.pdf . 
39 Law No.  4875, Official Gazette  (2003), No.  25141, 16  June. As indicated in Türkiye's previous Review, 
the main provisions of the Law provide for national treatment, free trans fer of proceeds, dispute settlement, 
compensation in the case of expropriation or nationalization, employment of expatriates, and the submission of 
statistical information. The Regulation requires companies to provide FDI -related data. It stipulates that f oreign 
investors may set up any of the types of company set out in the Turkish Commercial Code. These are corporate 
forms (joint -stock company and limited liability company) and non -corporate forms (general partnership, 
limited partnership , and partnership  limited by shares).  
40 Regulation for Implementation of Foreign Direct Investment Law. Viewed at: 
http://www.lawsTürkiye.com/regulation/25205 -regulation -for-implementation -of-fdi-
law#:~:text=The%20Regulation%20for%20Implementation%20of,Investment%20(FDI)%20Law%20No , as 
amended in 2018 ( Official Gazette  (2018), No.  30438, 1  June), 2020 ( Official Gazette  (2020), No.  31276, 
16 October), and 2021  (Official Gazette  (2021), No.  31436, 27  March).  WT/TPR/S/ 439 • Türkiye  
 
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 book-keeping services, financial services, mining, real -estate trading, electricity, and education. 
These restrictions are described in Türkiye's previous Review and remain unchanged.41 
2.34.  To build a more secure climate for foreign investors, Türkiye has bilateral investment 
treaties  (BITs) in force with 88 economies and double taxation agreements in force with 
89 economies. Türkiye has a model BIT that it keeps up to date by observing developments in 
international investment agreements. Over the review period, new BITs entered into force between 
Türkiye and Bangladesh , China, Djibouti, Gambia, Georgia, Guatemala, Guinea, Kyrgyz  Republic, 
Mauritius, Mexico, Montenegro, Tanzania, Uzbekistan, Viet  Nam, and Zambia.42 Over the review 
period, Türkiye  ratified the United  Nations Convention on International Settlement Agreements 
Resulting from Mediation; it entered into force in April 2022.43 
2.4.2   Investment policy and promotion  
2.35.  The Coordination Council for the Improvement of the Investment Environment  (YOIKK) 
continues to provide the policy dialogue platform through which the private sector can suggest 
improvements to the investment climate. In 2018, its structure was revised; the Presidency of YOIKK 
now falls under the Deputy  President with the aim of increasing political ownership of the reform 
process. It brings together government (10 Ministers/Presidents of Presidential Offices) and 
non-government entities ( 6 presidents of business -related institutions). YOIKK's secretaria t is 
housed within the Ministry of Industry and Technology, and its work is carried out through annual 
actions plans. As indicated by the authorities, over the review period several legislative changes 
were made as a result of YOIKK studies either directly  or indirectly, including in the areas of litigation 
processes; access to finance; data protection; simplification of company establishment  procedures ; 
bankruptcy; construction, telecommunications and infrastructure permits; foreign trade; mediation; 
Organ ized I ndustrial Zones and Technology Development Zones; land transfer; R&D activities; 
remote work; and e-communications and e -commerce.  
2.36.  Under Türkiye's New Economic Reform Package 2021 -23 (Section  1.2), new initiatives to 
encourage investments (both forei gn and domestic) will include the enactment of a law on the 
protection of private sector investments to enhance the predictability in investments, reduce 
red tape, and offer solutions to issues encountered during the investment process.44 No information 
was available on the state -of-play of legislative reform in this area.  
2.4.3   Investment incentive schemes  
2.37.  Türkiye has four investment incentive schemes that fall under the Decree on State Aid for 
Investments and aim to promote regional developmen t; these are the General Investment Incentive 
Scheme, the Regional Investment Incentive Scheme, the Strategic Investment Incentive Scheme, 
and the Priority Investment Incentive Scheme. All of these schemes were operational at the time 
of Türkiye's previous  Review , although some modifications have been introduced (Table  2.3). The 
Large -Scale Investment Incentive Scheme was discontinued in 2019.  
2.38.  A Project -Based Investment Incentive Scheme was introduced in 2016 and falls under the 
Council of Ministers Decree No. 7495 Granting Project -Based Government Support for the 
Investment Decision. It is designed to encourage production in Türkiye of certain high value added 
or strategic products (Table  2.3). 
2.39.  All of the above schemes fall under the responsibility of the M inistry of Industry and 
Technology. In  2019, the Technology -Orientated Industry Move Program (TFIMP) was launched; this 
seeks to focus the Ministry of Industry and Technology's incentives and support to the medium -high 
 
41 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, Table A2.3.  
42 UNCTAD Investment Policy Hub, International Investment Agreements Naviga tor: Türkiye . Viewed at: 
https://investmentpolicy.unctad.org/international -investment -agreements/countries/214/Türkiye . 
43 United Nations Informati on Service (2021), "Turkey Ratifies the United Nations Convention on 
International Settlement Agreements Resulting from Mediation", 13  October. Viewed at: 
https://unis.unvienna.org/unis/en/pressrels/2021/unisl322.html ; Official Gazette  (2021), No.  31462, 22  April. 
Viewed at: https://www.resmigazete.gov.tr/22.04.2021 . 
44 Investment Office (2021), Invest in Türkiye , Issue 86. Viewed at: 
https://www.invest .gov.tr/en/news/newsletters/lists/investnewsletter/investment -office -apr-2021-
newsletter.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 and high -tech manufacturing sectors t o expand value -added domestic production. The Program is 
based on thematic calls with priority lists announced for each call. It provides a single channel to 
reach different incentive mechanisms (those run by the Ministry of Industry and Technology 
(Table  2.3)), the Scientific and Technological Research Institution of Türkiye (TÜBITAK) 
(Section  3.3.1.2) , and the Turkish Small and Medium Enterprises Development and Support 
Administration (KOSGEB) (Section  3.3.1.3).  
Table 2.3 Overview of Türkiye's investment incentive schemes  
Scheme  Overview  Main benefits  Changes since 2016  
Investment incentives under the Decree on State Aid  
General Investment 
Incentive Scheme  General scheme for a minimum fixed 
investment of TRY  3 million in 
Regions  I and II, and TRY  1.5 million 
in Regions III, IV, V, and VI.  VAT exemption, customs duty 
exemption, and income tax 
withholding support only for 
Region VI.  Increase in minimum fixed 
investment from TRY  1 million 
in Reg ions I and II and from 
TRY 1.5 million in Regions III, 
IV, V, and VI.  
Regional Investment 
Incentive Scheme  Supports different sectors, 
depending on the potential in 
different regions. Level of support 
and length dependent on the region. 
Fixed investment a mounts are 
defined separately for each sector 
and each region.  VAT exemption; customs duty 
exemption; income tax 
withholding support only for 
Region VI; tax deduction; 
social security premium 
support  (employer's share); 
social security premium 
support (emp loyees share) 
only for Region IV; interest 
support for investment loans 
Region III, IV, V, or VI; and 
land allocation.  A district -based regional 
(attractions centres) incentive 
programme was introduced 
within the Regional Investment 
Incentive Scheme in  2018. 
Strategic Investment 
Incentive Scheme  Supports production of strategically 
important intermediate and final 
products and high -tech and high -
value -added investments. 
Contingent on a minimum 
investment of TRY  50 million, 
minimum of 40% value -added, and 
that the goods have a 
USD 50 million import value in the 
last year.  VAT exemption; customs duty 
exemption; income tax 
withholding support only for 
Region  VI; tax deduction; 
social security premium 
support (employer's share); 
social securit y premium 
support (employee's share) 
only for TFIMP incentive 
scheme; interest support; 
land allocation; and VAT 
refund for fixed investments 
of at least TRY  500 million.  Upper limit of total value of 
support has been revised.  
Priority Investment 
Incentiv e Scheme  Supports priority investments in 
certain listed areas.  VAT exemption; customs duty 
exemption; tax deduction; 
social security premium 
support (employer's share); 
interest support for 
investment loans in Region V; 
and land allocation.  Topics added t o the list: 
(i) investments subject to 
environmental licence; 
(ii) investments in the 
production of software and 
IT products to be made in free 
zones without a minimum 
investment requirement; 
(iii) R&D and environmental 
investments; and (iv)  data 
centre in vestments that meet 
international technical 
standards and a minimum 
white space requirement 
of 5,000  m2. 
Large -Scale 
Investment Incentive 
Scheme  n.a. n.a. Terminated in August  2019.  WT/TPR/S/ 439 • Türkiye  
 
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 Scheme  Overview  Main benefits  Changes since 2016  
Investment incentives under Council of Ministers Decree on Granting Project -Based Government Support for the 
Investment Decision  
Project -Based 
Investment Incentive 
Scheme  Supports investments that are in line 
with targets in development plans 
and annual program mes: meet 
Türkiye's  current/future critical 
needs; en sure the security of 
supply; implement technological 
transformation; or are innovative, 
R&D intensive , or high value -added. 
Minimum fixed investment required.  Customs duty exemption; 
VAT exemption; VAT refund; 
tax deduction; social security 
premium support  (employer's 
share); income tax 
withholding support; qualified 
personnel employment 
support; interest support; 
capital contribution support; 
grant support; energy 
support; purchasing 
guarantee; land allocation; 
infrastructure support; 
facilitation for the 
permissions, licences, 
allocations and registrations.  New scheme that entered into 
force in  2016. Minimum fixed 
investment was increased to 
TRY 1 billion (except for 
investments falling under the 
scope of the TFIMP where the 
minimum fixed investment is 
TRY 50 million).  
n.a. Not applicable.  
Source:  Information provided by the Ministry of Industry and Technology ; and Esin Attorney Partnership 
(2019), "New Amendments to the Investment Incentive Legislation", 9  August. Viewed at: 
https://esinxchange.com/rv/ff004ff0abb50d3c8673f58ccb408e463f54e91d . 
2.40.  The use of investment schemes varies each year. As before, the General Investment Scheme 
and the Regional Investment Scheme were the most used. Beneficiaries of the schemes are largely 
domestic investors (Table  2.4). 
Table 2.4 Overview of fixed capital investments under the incentive schemes,  
2018 to August 2022  
(TRY million)  
 2018  2019  2020  2021  2022  
(August) 
General Investment Incentive Scheme  
- Foreign investment  2,563  2,800  6,946  4,585  2,454  
- Domestic capital  47,314  88,479  99,215  81,578  55,543  
Regional Investment Incentive Scheme  
- Foreign investment  7,456  11,465  18,046  12,607  18,671  
- Domestic capital  74,336  78,712  170,235  183,270  166,434  
Strategic Investment Incentive Scheme  
- Foreign Investment  23,098  1,573  0 611 129 
- Domestic capital  9,093  5,763  5,403  3,550  2,521  
Project -Based Investment Incentive Scheme  
- Foreign investment  10,790  2,035  1,874  33,335  10,108  
- Domestic capital  14,981  16,343  33,136  25,902  164,947  
Priority Investment Incentive Scheme  
- Foreign investment  21,329  6,087  4,787  12,381  1,922  
- Domestic capital  22,017  36,788  47,320  46,004  58,773  
Large -Scale Investment Incentive Scheme  
- Foreign investment  1,924  2,916  0 0 0 
- Domestic capital  7,513  515 0 0 0 
Source:  Information provided by the Ministry of Industry and Technology.  
2.41.  A Technological Product Investment Support Programme was introduced in 2014 and 
amended in 2022; no further information on this programme was available. In 2018, to encourage 
foreign investment and boost the real estate sector, Türkiye introduced a scheme to grant citizenship 
to persons making a fixed capital investment of USD  500,000 or equivalent in foreign currency or 
Turkish lira.45 There is no limitation on the sectors that can be  invested in. Real estate investments 
must be in commercial not residential property and in a foreign currency.  
2.4.4   Investment zones  
2.42.  Türkiye continues to maintain special zones that provide support services or incentives to 
attract investment (both domestic an d foreign). These are Technology Development Zones  (TDZs), 
 
45 Regulation Amending the Regulation on the Implementation of the Turkish Citizenship Law,  Official 
Gazette  (2018), No.  30540, 19  September. See also Ministry of Industry and Technology. Viewed at: 
https://www.sanayi.gov.tr/destek -ve-tesvikler/yatirim -tesvik -sistemleri . WT/TPR/S/ 439 • Türkiye  
 
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 Organized Industrial Zones (OIZs), and Free Zones (FZs). If a company is simultaneously a 
participant in an investment scheme (Section  2.4.3) and is also a beneficiary under an OIZ or TDZ, 
benefits  may be adjusted.  
2.4.4.1   Technology Development Zones (TDZs)  
2.43.  As at end -2021, there were 73 TDZs operational in Türkiye dedicated to developing the 
high-technology sector through support to R&D.46 The governing legislation is the Technology 
Development Zones Law o f 2001 and its implementing regulation.47 The Law was amended in  2021 
to extend the scope of incentives and exemptions set to expire in  2023, until 2028; provide support 
for employment of R&D graduates; and provide subsidies for the employment of doctoral students, 
the construction of workshops and R&D buildings in technoparks, and the financing of the machinery, 
equipment , and software to be used in these workshops. The implementing regulation was amended 
to reflect changes to the law.  
2.44.  The benefits for com panies establishing in TDZs are the following tax exemptions 
until 31 December 2028: (i)  personal and corporate income tax exemptions for profits derived from 
software development, R&D, and design activities; (ii)  VAT exemptions for sales of application 
software produced exclusively in TDZs; (iii)  full tax exemptions for remuneration of R&D, design, 
and support personnel, with limitations on the number of support personnel who may benefit; and 
(iv) payment by the Government of 50% of the employer's share of  the social security premium. 
Companies are eligible for non -time-limited customs duty exemptions on imports, and stamp duty 
exemptions for certain documents relating to R&D, design, and software development projects. 
Additionally, production of the R&D pr oduct in the TDZ may be permitted. An overview of the 
evolution of TDZs over the review period is contained in Table  2.5. 
Table 2.5 Overview of Technology Development Zones, 2016 -21 
 2016  2017  2018  2019  2020  2021  
TDZs established in operation at the end 
of the year  (No.) 52 56 61 67 72 73 
Companies operating in TDZs  (No.) 4,011 4,433 5,010 5,460 6,251 7,363 
Foreign companies operating in TDZs  
(No.) 185 250 288 310 321 282 
Tax exemptions (TRY  billion)a 
 VAT 0.4 0.5 0.6 0.8 1.0 1.7 
 Corporate tax  0.6 0.8 0.9 1.2 2.7 4.7 
 Personal income tax  7 39 31 95 102 196 
 Social security tax  0.6 0.7 0.9 1.2 1.6 2.7 
Loan amounts (TRY '000)  88,222  130,656  56,228.8  67,661.5  59,947.7  152,000  
Trade  
Total exports (annually; USD  million)  .. 0.5 0.8 0.7 1.1 1.3 
Total exports (cumulative; USD  billion)  2.4 2.9 3.7 4.4 5.5 6.8 
.. Not available.  
a Represents forgone revenue.  
Source:  Information provided by the authorities.  
2.4.4.2   Organized Industrial Zones  
2.45.  Türkiye's OIZs were established by law in 2000 to provide an investor -friendly environment 
with well -established infrastructure for businesses, as well as to allow for pla nned development in 
different regions. The zones are established in different areas pursuant to approval of the Ministry  of 
Industry and Technology, which also provides loans to firms for the establishment, construction, and 
operation of OIZs. As of 2022, loan interest rates were 3% with 3 years non -payable followed by 
a 13-year repayment period.  
 
46 As indicated in Türkiye's previous Review, among the main  objectives of TDZs are to develop 
innovative products and production methods, enhance quality standards, decrease production costs, develop 
and commercialize technical know -how, support entrepreneurship, and create investment opportunities 
in technology -intensive areas.  
47 Law No.  4691 of 6  July 2001 (last amended in 2021 ( Official  Gazette  (2021), No.  31384, 3  February)) 
and Technology Development Zones Implementation Regulation ( Official  Gazette  (2014), No.  28939, 12  March) 
(last amended in 2018 (No.  30340 , 22 February)).  WT/TPR/S/ 439 • Türkiye  
 
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 2.46.  Changes to the Organized Industrial Zones Implementation Regulation over the review period 
have, inter alia , (i) lifted restrictions on the types of activities tha t could not be established in an  OIZ 
(previously these were refining, nuclear power generation, cement manufacturing, petrochemical 
complexes, and integrated sugar factories), and ( ii) simplified provisions on interest support given 
by the Ministry to the loans used by OIZs from banks for their investment projects. Incentives 
available in OIZs are VAT exemptions for land acquisitions, a five -year exemption from real estate 
duties, no tax payable in cases of merging and/or separation of plots, exemption from  municipality 
tax in certain cases, and an exemption from building tax. As of 2022, there were 264 OIZs in 
operation. The main business activities in OIZs are the production of food, textiles, leather products, 
furniture and wood products, paper, chemicals , pharmaceutical products, plastic, basic metal 
industry, electric -electronics, automobile sub -industry activities, and land vehicle manufacturing . 
2.4.4.3   Free Zones (FZs)  
2.47.  Türkiye continues to operate FZs, which are defined as special sites within the country tha t 
are deemed to be outside the customs territory with respect to import measures and foreign 
exchange legislation. They aim to provide a supportive environment for export -orientated 
investment and production, through exemptions from the following taxes/fee s: customs duties and 
other assorted duties, corporate income tax for manufacturing companies, VAT and Special 
Consumption Tax, stamp duties for applicable documents, real estate tax, income and corporate tax 
for certain logistics services offered in FZs  provided they are export -orientated, income tax on 
employee's wages for companies that export  85% of the f.o.b. value of the goods they produce in 
the FZs, title deed fees when buying and selling a property, VAT exemption for services rendered 
in FZs, and V AT and other taxes for available infrastructure (i.e. electricity, water, gas, and sewage) . 
Goods may remain in FZs  for an unlimited period  and companies may freely transfer profits 
generated from FZs  abroad.  
2.48.  The legal framework remains the Law on Free Zon es (Law No.  3128 of 1985) and the 
Free Zones Implementation Regulation. Amendments to this Law in 201748: (i) authorized the 
President to decrease to zero the free zone fee rates for strategic, large -scale, or priority 
investments, and for project -based scheme investments (Table 2.3)49; (ii) made it possible to 
establish FZs, special zones, foreign trade centres, and logistics centres abroad; and (iii)  gave the 
President authority to modify income tax rates on employee salaries for companies  that export at 
least 85% of the f.o.b. value of goods produced in FZs.50 Further amendments to the Law on Free 
Zones in  2021 limit corporate and income tax exemptions provided to companies operating in FZs 
to a maximum of 30 years; this applies only to FZ s operational after 2021.  
2.49.  As at mid -2022, there were 18 operational FZs in Türkiye. In  2020, an existing FZ (the 
Istanbul Atatürk Airport Free Zone) was designated as a "specialized free zone" for information 
technology.51 The West Anatolian Free Zone is i n the establishment phase.  
2.50.  In 2021, there were 1,958 companies operating within Türkiye's FZs, employing 
over 85,000  persons. Continuing a trend evident at the time of Türkiye's previous Review, 
employment in FZs has steadily increased. In 2021, 70% of sal es by companies operating within 
FZs were exports (Table  2.6). No information was available on the main industries operating in FZs.  
 
48 Law on Amending Free Zones Law and Some Laws and Decrees No.  6772. Official Gazette  (2017), 
No. 29989, 24  February.  
49 As set out in Law No.  3218, free zone fees are fees equal to 0.1% of the c.i.f. value of goods entering 
the free zone f rom abroad; fees equal to 0.9% of the f.o.b. value of goods leaving the free zones towards 
Türkiye; payments specified in the contracts made by the free zone operator companies; and other revenues 
obtained from the zone activities.  
50 An export -linked incom e tax exemption was already provided for under Law No.  3218. The 
amendment made in 2017 allowed the President to reduce the rate to 50% and to increase it to its statutory 
level. The rate can also be differentiated according to the region, sector, or field  of activity of strategic, 
large-scale, or priority investments, and to project -based investment incentives.  
51 Presidential Decree No.  2117 of 19  February  2020.  WT/TPR/S/ 439 • Türkiye  
 
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 Table 2.6 Overview of Free Zones, 2016 -21 
 2016  2017  2018  2019  2020  2021  
Total trade volume (imports and exports) 
(USD  million)  19,033  20,376  20,929  19,656  22,058  24,618  
Sales to third countries (USD  million)  7,041  7,525  8,147  7,978  7,727  9,755  
Sales to Türkiye (USD  million)  3,999  4,073  3,766  3,379  4,729  4,325  
Employment (No.)  66,095  66,984  70,808  74,214  79,553  85,248  
Total companies (No.)  2,025  1,989  1,912  1,869  1,901  1,958  
Total foreign companies (No.)  530 542 528 505 499 502 
Source:  Information provided by the Ministry of Trade.  
2.5  E-commerce developments  
2.51.  Türkiye is ranked 57th out of 152 economies included in UNCTAD's B2C Ecommerce 
Index  2020 and is among the top 10 developing and transition economies within the West Asia 
region.52 As noted by UNCTAD, Türkiye also has laws in place in the four  key e -commerce -facilitating 
areas of: (i)  e-transactions (Law No.  5070 of 2004 on Electronic Signature); (ii)  consumer protection 
(Law No.  6502 on Consumer Protection); ( iii) data protection and privacy (Law No.  6698 of 2016 on 
Protection of Personal Data ); and ( iv) cybercrime (the Turkish Criminal Law).53 Payment systems 
for electronic commerce are governed by Law No.  6493 of 2015 on Payment and Securities 
Settlement Systems, Payment Services and Electronic Money Institutions; Law No.  5464 of 2006 on 
Bank Cards and Credit Cards; Law No.  5651 of 2007 on the Regulation of Broadcasts via Internet 
and Prevention of Crimes Committed Through These Broadcasts; and Law No.  5809 on Electronic 
Communication.  
2.52.  There were several e -commerce -related developments over th e review period, including:  
• Significant changes were made to the 2014 Law on the Regulation of Electronic 
Commerce in 2022 , which regulates e -commerce principles and procedures. Except for 
a few provisions, the new Law will come into effect on 1  January  2023. As indicated by 
the authorities, these changes were largely in response to concerns regarding the 
tendency of the e -commerce market towards monopolistic market structure and the 
need to ensure a well -functioning and fair competition environment in digi tal markets 
and e -commerce. The Ministry of Trade has been given the responsibility to ensure the 
development of e -commerce in a way that maintains an effective and fair competition 
environment and to regulate the activities of e -commerce service providers  and 
intermediary service providers. The Law also imposes various new obligations on 
e-commerce intermediary service providers. They must (i)  prevent intellectual and 
industrial property rights violations and the existence of illegal content on e -commerce 
marketplaces; (ii)  refrain from engaging in unfair trade practices; (iii)  make payments 
to sellers within five business days of receiving payment from payment service 
providers; (iv)  refrain from unfair competition with sellers by using sellers' data 
obtained on online marketplaces; (v)  protect the ability of sellers to transfer their data 
to other e -commerce platforms; (vi) enable sellers to offers goods or services at the 
same or different prices through alternative channels; and (vii) submit an annual audit 
report prepared by an indepe ndent audit firm the Ministry. In addition, both 
e-commerce intermediary services providers and e -commerce service providers with a 
gross merchandise volume of TRY  10 billion and over must obtain an e -commerce 
licence from the Ministry ; 
• The implementation of e -export incentives (Section  3.2.4. 1) in 2022;  
• An amendment to VAT legislation requires services providers not resident in Türkiye  to 
pay VAT on electronic services provided to final consumers (Section  3.1.4.1);  
 
52 UNCTAD, The UNCTAD B2C E -Commerce Index . Viewed at: https://unctad.org/system/files/official -
document/tn_unctad_ict4d17_en.pdf . 
53 UNCTAD, Global Cyberlaw Tracker . Viewed at: https://unctad.org/page/cyberlaw -tracker -country -
detail?country=tr . The Cyberlaw Tracker is UNCTAD's database on e -commerce -facilitating laws.  WT/TPR/S/ 439 • Türkiye  
 
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 • The introduction of new pr ovisions regulating product safety in e -commerce under 
the 2021 Product Safety and Technical Regulation Law (Section  3.3.2.1 ); 
• The introduction in 2020 of new obligations on large foreign social media companies; 
these include data localization requirements  and the requirement to appoint a local 
representative in Türkiye. The latter effectively enables the Turkish Information and 
Communication Technologies Authority (ICTA) to block content accessed on these 
platforms from within the country54; 
• The launch in 2020 of an Electronic Commerce Information Platform as an information 
resource for use by consumers and businesses who want to move their businesses to 
the digital environment;  
• The introduction of a Digital Services Tax in March 2020 (Section  3.1.4.3);  
• The implementation of an Electronic Commerce Information System (ETBIS) in 2017 to 
collect and analyse electronic commerce data and register service and intermediary 
service providers.55 E-commerce enterprises must be registered before they start their 
activi ties and must notify the system about the websites, mobile sites, or mobile 
applications they operate as well as their contact details; this is accessible to the public 
on www.eticaret.gov.tr . Enterprises must report a dditional information , which 
reportedly is used by the Government to make sustainable e -commerce policies and 
strategies56; 
• The introduction of a trust stamp system in 2017 to encourage online transactions by 
building consumer trus t. Online sites that have obtained the authorization to use this 
marking must meet minimum security and quality service standards.57 Trust stamps are 
provided by the Union of Chambers and Commodity Exchanges of Türkiye (TOBB) as 
the entity designated by th e Ministry of Commerce58; and 
• The entry into force of Law No.  6698 on Protection of Personal Data in 2016.59 Previously 
data protection fell under the legal framework of the Constitution and other sectoral 
laws and regulations.  
 
 
54 An amendment in 2020 to Law No.  5651 on regulating Internet Publications and Combatting Crimes 
Committed by Means of Such Publication. Library of Congress (2020), "Turkey: Parliament Passes Law 
Imposing New Obligations on Social Media Companies", 6 August. Viewed at: https://www.loc.gov/item/global -
legal-monitor/2020 -08-06/turkey -parliament -passes -law-imposing -new-obligations -on-social -media -
companies/ . 
55 Official Gazette  (2017), No.  30151, 11  August. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2017/08/20170811 -7.htm . 
56 This additional information includes typ es of goods and services offered on e -commerce platforms; 
cargo and logistics information; transactions related to cross -border e -commerce; production location; 
warehouse address; and payment methods.  
57 Communiqué on Trust Stamp in Electronic Commerce, Official Gazette  (2017), No.  30088, 6  June. 
Viewed at: https://www.resmigazete.gov.tr/eskiler/2017/06/20170606 -12.htm , as amen ded in 2020 
(https://www.resmigazete.gov.tr/eskiler/2020/08/20200813 -6.htm ) and 2021 
(https://www.re smigazete.gov.tr/eskiler/2021/02/20210225 -4.htm ). 
58 TOBB. Viewed at: https://www.guvendamgasi.org.tr/index.php . 
59 Law No.  6698 on Protection of Personal Data, Official Gazette  (2016), No.  29677, 7  April. An English 
version of the Law was viewed at: https://www.kvkk.gov.tr/Icerik/6649/Personal -Data-Protection -Law. WT/TPR/S/ 439 • Türkiye  
 
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 3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.1.1   Customs procedures  
3.1.  The Ministry of Trade is responsible for customs procedures in Türkiye, through its directorates 
general of customs and customs enforcement.  
3.2.  The Law on Customs and the Customs Regulation continue to provide the main legal an d 
regulatory framework for customs procedures.1 As indicated by the authorities , the main changes to 
the Law on Customs over the review period were to expand the exceptional circumstances under 
which goods can remain under the temporary admission procedur e for more than 24 hours and to 
modify penalties applied to goods that fail import inspections.2 The main changes to the Customs 
Regulation were related to proof of origin documentary requirements (Section  3.1.2).  
3.3.  A summary pre -arrival declaration must be  submitted online through the Computerized 
Customs Operations System (BILGE) system (see below) for all goods entering the Turkish  customs 
territory, except for cargo in transit; this enables Customs to undertake risk analysis for safety and 
security purpo ses. The timeframe for submitting this declaration depends on the mode of transport. 
Imports into Türkiye must be accompanied by a customs declaration, a preferential or 
non-preferential certificate of origin, a commercial invoice, a customs value statemen t of imported 
goods, and a bill of lading or airway bill. Other documents that may be required include certificates 
for SPS reasons (Section  3.3.3), certification to prove conformity with the CE mark  (Section  3.3.2), 
and import licences or additional docum entary requirements for restricted imports  (Section  3.1.5) 
or imports subject to surveillance ( see below ). The use of customs brokers is not compulsory.  
3.4.  Türkiye's Single Window System allows traders to obtain the required import documents and 
licences thro ugh a single point. Once such applications have been submitted and approved through 
the system, an e -document number is generated. This number is then declared in the relevant 
customs declaration, which is then processed through BILGE. According to the aut horities, 
since Türkiye's previous Review, the Single Window System has been extended to include more 
documents used in import and export transactions.  
3.5.  Certain goods must be imported through specialized customs offices. The General Directorate 
of Customs w ithin the Ministry of Trade has responsibility for authorizing new customs offices as 
specialized ones or removing this designation. These goods are: (i)  motor vehicles, tractors, 
motorcycles , and their spare parts and accessories3; (ii) textile products4; (iii)  fertilizers5; and 
(iv) solvents and petrochemical products and products to be used in the food industry.6 The 
authorities indicate that the rationale for port of entry requirements is to ensure the availability of 
specialized customs expertise. These requirements are not applied to the E uropean  Union, the 
United  Kingdom, and in some instances, Switzerland; reportedly this is because there is not the 
same need for specialized controls . 
 
1 Law No.  4458 of 27/10/1999 on Customs. Viewed (in Turkis h) at: 
https://kms.kaysis.gov.tr/Home/Kurum/24308261#collapse1 . The Customs Regulation is contained in the 
Official Gazette  (2009), No.  27369, 7  October. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2009/10/20091007M1 -1.htm . 
2 The amount of administrative penalties charged was reduced in certain cases. Additionally, it is 
stipulated tha t the penalty will be applied at a rate of 10% if the violation is reported by the declarant prior to 
its detection. Violating goods may now be returned to their country of export or transited to a third country 
upon the request of the economic operator, i nstead of being confiscated.  
3 Customs General Communiqué on Customs Procedures No.  94. Viewed at: 
https://mevzuat.gov.tr/mevzuat?MevzuatNo=16460&MevzuatTur=9&Mevzu atTertip=5 . 
4 Customs General Communiqué on Customs Procedures No.  105. Viewed at: 
https://mevzuat.gov.tr/mevzuat?MevzuatNo=17158&MevzuatTur=9&MevzuatTertip=5 . 
5 Customs General Communiqué on Customs Procedures No.  105. 
6 Customs General Communiqué on Customs Procedures No.  100. Viewed at: 
https://mevzuat.gov.tr/mevzuat?Mevzua tNo=16761&MevzuatTur=9&MevzuatTertip=5 . WT/TPR/S/ 439 • Türkiye  
 
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 3.6.  Risk assessment of imports of various industrial goods for product safety purposes and risk 
assessment of imports and exports of certain agricultural commodities for quality control purposes 
are undertaken by the online Risk -Based Trade Control System (T AREKS). Importers (and exporters) 
of these items must apply through the system to have their products inspected. TAREKS categorizes 
the imports with a level of risk (low to high) and determines which imported goods must be physically 
inspected.7 Within th e customs administration, a different customs module is used to undertake 
risk assessment of all imports.  
3.7.  At the time of Türkiye's previous Review, import clearance was normally completed within 
24 hours for imports of goods through all transport modes, pr ovided documentary requirements 
were met. In 2021, 25% of imports passed through the "green channel ", which is reserved for 
authorized economic operators (AEOs) (Section  3.1.1.2) and involves immediate release without 
examination; 60%  passed through the "y ellow channel" , which entails documentary checks, and 
15% passed through the "red channel" and were subject to physical inspections. Pre -arrival 
processing has been implemented for imports of raw and semi -finished goods (goods that are inputs 
to production ) arriving by maritime transport (from 2019) and air transport (from 2021). Declaration 
data must be submitted prior to arrival and the aim is to speed up customs clearance of these items. 
To simplify the exchange of messages and data that need to be submi tted by ships and shipping 
agents, a Port Single Window System was established in July 2018.  
3.8.  The Law on Customs and its implementing regulation provide for Customs to issue advance 
rulings on both tariff classification  and rules o f origin .8 Over the review period, an electronic portal 
was established for the submission and issuance of advance rulings on tariff classification.9 The Law 
on Customs provides for the right of appeal for customs decisions . Over the period 2016 -21, there 
were an average of 35 su ch appeals per year.  
3.9.  Fees levied by customs include a bill of lading fee of USD  100 per customs declaration and a 
stamp duty of TRY  176. Customs clearance outside normal working hours incurs charges of 
TRY 50.99 per hour for imports, TRY  21.83 per hour for  exports, and TRY  50.99 per hour for other 
operations.10 Costs for analyses or examination carried out in customs laboratories or outsourced 
units are borne by declarants.  
3.10.  Türkiye continues to monitor the import prices of, and collect specific data on, sel ected goods 
under its import surveillance mechanism.11 Under the system, surveillance certificates must be 
obtained for the import of certain products; to obtain this certificate, additional data and/or 
information must be provided. As indicated by the aut horities, data collected during this surveillance 
process are used to evaluate domestic producers' claim s on injury that might lead Türkiye to initiate 
a safeguard or anti -dumping investigation. Surveillance is also used to monitor if there is 
circumventio n of trade remedy measures already in place. For some products, import surveillance 
is implemented to products below a certain c.i.f. value. For other products , there is no set price 
criteria. According to the authorities, this determination is made based on the characteristics of the 
product itself or the target of the surveillance application. For the products for which surveillance is 
applied to products below a certain c.i.f. value, the authorities indicate that this is to have the least 
effect on other  trade. However, concerns have been expressed that this may lead to over -invoicing, 
as importers may choose to declare a customs value above the c.i.f. threshold to avoid the process 
of obtaining a certificate and providing the associated information.12 A list of the items currently 
subject to import surveillance was not available.  
 
7 UNESCAP (2017), Facilitating Export & Import Inspection Procedures through Risk Assessment and 
Paperless Documentation , Brief No.  20. Viewed at: https://www.unescap.org/sites/default/d8files/knowledge -
products/UNNExT%20Brief%20No.20.pdf . 
8 Law on Customs, Article  8; and Customs Regulation , Articles 28 and 29.  
9 Customs General Communiqué (Tariffs)  (No. 14). Official Gazette  (2016), No.  29731 , 3 June.  
10 Customs General Communiqué (Customs Clearance)  (Serial No.  181). Viewed at: 
https://mevzuat.gov.tr/mevzuat?MevzuatNo=39150&MevzuatTur=9&MevzuatTertip=5 . 
11 The import surveillance system is based on Council of Ministers Decision No.  2004/7304.  Official 
Gazette  (2004), No.  25476 , 29 May. 
12 This issue was, for example, raised in a complaint by the Confederation of European Paper Industries 
in 2017. Viewed at: https://trade.ec.europa.eu/doclib/docs/2018/  
march/tradoc_156626.02.23%20REPORT%20TO%20THE%20COMMITTEE%20NON -CONF.pdf . A working paper 
by staff of the Central Bank of Türkiye concluded that the import surveillan ce mechanism was resulting in WT/TPR/S/ 439 • Türkiye  
 
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 3.1.1.2   Trade facilitation  
3.11.  Türkiye ratified the Agreement on Trade Facilitation (TFA) on 16  March  2016; it notified all 
provisions of the TFA in category A, which signifies that it is im plementing the Agreement in full.13 
It continues to maintain an AEO scheme to enhance security and facilitate trade; as at 
end-September 2022, there were 647 AEOs, whose imports and exports covered around 32.62% of 
the value of total trade. Eligibility for and benefits from AEO status are described in 
Türkiye's  previous Review.14 The Regulation on the Facilitation of Customs Procedures, which 
regulates the AEO programme in Türkiye was amended several times over the review period . These 
did no t result in changes to the eligibility criteria, benefits granted, or application/assessment 
procedures for AEOs.15 
3.12.  A Coordination Committee on Trade Facilitation was established in 2016 to enable the 
implementation of the TFA and other international regul ations on simplification of border procedures. 
Following a reorganization in 2019, the Committee now brings together 23 members , of which  12 are 
from the private sector, ranging from exporters to road transporters to customs brokers. Each 
member has an equ al weight of vote in the decisions taken within the meetings. As indicated by the 
authorities, these experts , who come from different parts of the international supply chain , help to 
identify deficient border procedures and suggest solutions for these bott lenecks, while 
representatives at the political level ensure implementation of these solutions. The Committee has 
issued a National Trade Facilitation Strategy and Action plan that serves both as a roadmap for its 
own work as well as having broader applica tion. It has 46 actions, 16 of which have been completed.  
3.13.  Simplified customs procedures apply to border trade through authorized customs gates 
between the Turkish provinces in the eastern and south -eastern Anatolian regions and their 
neighbouring countries . The legal basis for this measure is Presidential Decree No.  2021/4874 on 
the Regulation of Border Trade and the Communiqué on the Implementation of Border 
Trade  No. 2016/11. The import of certain products (both agricultural and industrial) is prohibited 
within the scope of border trade to protect domestic production and manufacturing and to prevent 
unfair competition. These products are contained in the Communiqué.  
3.14.  Türkiye has continued to engage in efforts to facilitate trade with bordering nations. In t his 
regard, it signed a protocol with Azerbaijan and Georgia on the establishment of a Trilateral 
Committee on Customs Matters in 2022 which, inter alia , aims to enhance customs cooperation and 
enforcement and facilitate trade.16 It has approved agreements  with Azerbaijan and Georgia on 
simplified customs corridors, allowing participating and eligible economic operators from the 
countries to benefit from priority at customs points, facilitated customs formalities, and reduced 
customs examination.17 The agre ement with Azerbaijan is being implemented in a pilot phase and 
the agreement with Georgia has not yet entered into force.  
3.15.  Türkiye applies the Common Transit Procedure for goods moved between EU member States, 
EFTA countries, North  Macedonia, and Serbia. U nder this regime, customs formalities are reduced, 
and customs duties and other charges are suspended while the goods are being moved between 
 
over-invoicing and estimated that Turkish import figures were inflated by around USD  2 billion -USD 3 billion 
in 2011.  
13 WTO TFA database. Viewed at: https://tfadatabase.or g/members/turkey . 
14 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, Section  3.1.2.  
15 Amendments to Regulation on the Facilitation of Customs Procedures are contained in Official Gazette  
(2017) No.  30209 , 13 October ; Official Gazette  (2018) No.  30459 , 25 June; and Official Gazette  (2020) 
No. 31046 , 21 February. Main changes were extension of time periods for monitoring of AEO holders; 
procedural changes regarding AEO annual activity reports; and matters relating to local clearance of imports 
and exports.  
16 Official Gazette  (2022), No.  31712, 7  January. Viewed at: https://www.resmigazete.gov.tr/eskiler  
/2022/01/20220107 -3.pdf. 
17 Agreement Between the Government of the Republic of Tür kiye and the Government of Georgia on 
Simplified Customs Corridor. Official Gazette  (2022), No.  31712, 7  October. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2022/01/202201 07-2.pdf; and Decision on Approval of the 
Memorandum of Understanding of the Government of Türkiye and the Government of the Republic of 
Azerbaijan on the Simplified Customs Line. Official Gazette  (2020), No.  30996, 2  January. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2020/01/20200102 -6.pdf. WT/TPR/S/ 439 • Türkiye  
 
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 participating nations. This is supported by the New Computerized Transit System, an online 
IT system through which  transit documents are submitted and processed.  
3.1.1.3   Customs valuation  
3.16.  There were no changes to Türkiye's rules on customs valuation over the review period.18 
3.1.2   Rules of origin  
3.17.  As indicated in the previous Review, the legal provisions on Türkiye's non -preferentia l rules 
of origin are contained in the Law on Customs and the Customs Regulations.19 Non-preferential rules 
of origin regulate trade policy measures, such as surveillance and safeguard measures, quotas, and 
anti-dumping duties, against third countries beyo nd the preferential regime. They are applied to the 
countries that have not signed any preferential trade agreements with Türkiye.  
3.18.  Each of Türkiye's RTAs (Section  2.3.2) sets out the applicable preferential rules of origin . As 
indicated in Türkiye's previo us Review, these are normally based on a wholly obtained or substantial 
transformation criterion, with scope for cumulation. Türkiye is part of the Regional Convention on 
the Pan -Euro-Mediterranean (PEM) Cumulation System, which allows the use of a materia l from 
countries with which Türkiye has an RTA within the PEM zone. However, for diagonal cumulation to 
be operational, rules of origin need to be identical, and this is being achieved through the 
incorporation of the uniform rules of origin of the PEM  Convention into Türkiye's  RTAs.  
3.19.  Türkiye amended certain provisions of the Customs Regulation in December 2020 so that 
certificates of origin are not required from 1  January  2021 for goods that are subject to additional 
financial liabilities (AFLs) and additional customs duties (ACDs) (Section  3.1.3.1) if the status of the 
goods with respect to free circulation is proved through an A.TR Movement Certificate. Türkiye has 
been applying the same rules of origin as the European  Union to  third countries 
since 1 January  1996.  
3.1.3   Tariffs  
3.1.3.1   Applied MFN duties  
3.20.  Türkiye's tariff is based on HS22 nomenclature. The 2022 tariff, as notified to the  WTO, 
comprises 11,581 tariff lines at the 10 -digit level. As the 2015 tariff analysed  at the time of 
Türkiye's previous Review was notified at the 12 -digit level and comprised 16,515 tariff lines, certain 
comparisons between the 2015 and 2022 tariff cannot be made.20 The first  six digits of the 
2022 tariff reflect the HS nomenclature, the 7th and 8th digits co rrespond to the combined 
nomenclature of the European  Union, and the 9th and 10th digits are used to display taxation 
subheadings. In 2021, customs duties accounted for 3% of total government tax revenue, up 
from 2% in  2016 (Table  A3.1). 
3.21.  Türkiye applies th ree different types of duty on imports  only: (i) customs duties; (ii)  additional 
financial liabilities (AFLs); and (iii)  additional customs duties (ACDs). The combination of these 
different types of duty comprises Türkiye's MFN tariff, and marks a signific ant change from the 
situation at the time of Türkiye's previous Review when the MFN applied tariff was calculated as 
being composed of the customs duty and the "Fund as Agricultural Component" as applied to 
processed agricultural products. Consequently, Tü rkiye's average applied MFN tariff is considerably 
higher in 2022 than at the time of its previous Review. It has also been observed that 
Türkiye's  import regime is marked by relatively frequent unilateral variations in tariffs.21 
 
18 A description of Türkiye's customs valuation provisions is contained in WTO  document 
WT/TPR/S/331/Rev.1, 9  August  2016. 
19 Legal provisions on origin are contained in the Customs Law (Articles 17 to 22) and in the Customs 
Regulations (Articles 29 and 33 -42). 
20 At the time of Türkiye's previous Review, the 2015 tariff schedule was based on the HS12 
nomenclature consistin g of 16,515 tariff lines at the 12 -digit tariff line level, with the 11th and 12th digits being 
used for data collection. The 2022 tariff has been notified to the WTO at the 10 -digit level.  
21 World Bank (2022) , Leveraging Global Value Chains for Growth in Turkey. A Turkey Country Economic 
Memorandum , p. 121.  WT/TPR/S/ 439 • Türkiye  
 
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 3.22.  Türkiye's customs duty an d AFL rates are issued within the framework of annual updates to 
Türkiye's  overall Import Regime. The regulatory framework for the Import Regime is Presidential 
Decision No.  3350 of 2020.22 This Decision contains rules on the regulation of imports and has 
seven  attached lists as well as annexes, tables, and communiqués. The seven lists attached to the 
Import Regime Decision indicate the rates of customs duties applied to certain product categor y 
groups based on the country or country groups where the produc ts originate.23 Each year the lists, 
tables, annexes , and communiqués  to the Import Regime are updated by the Ministry of Trade, in 
collaboration with relevant Ministries. Once approved by the President, they are published in the 
Official Gazette on 31 December of each year and enter into force on 1  January of the subsequent 
year as an Additional Decision to Presidential Decision No.  3350. Parliamentary approval of customs 
duties is no longer required.24 The Import Regime Decision in force for 2022 is contained in 
Presidential Decision 5052 of 2021.25 Outside of this annual exercise, customs duties and AFLs  can 
be modified by an additional Presidential Decision to the Import Regime. Over the review period , 
rates have been modified (increased or lowered) on an ad hoc  basis several times, either on a 
permanent or temporary basis.26 
3.23.  Customs duty rates comprise the EU common external tariff (CET) rates for industrial and 
processed agricultural products, and Tü rkiye's independently set rates for agricultural products. 
AFLs are levied on: (i)  processed agricultural products covered by List III of the Import Regime as 
an agricultural share on a specific duty basis (i.e. the specific duty is applied to the agricult ural 
component used in processed agricultural products depending on the content of starch, glucose, 
milkfat, milk protein, and/or sucrose); (ii)  fish and fishery products covered under List IV of the 
Import Regime on an ad valorem basis (these were previou sly levied under the Mass Housing Fund 
as other duties and charges (ODCs)); and (iii)  some basic agricultural products covered by List I of 
the Import Regime on a specific duty basis (Table 3.1).27 AFLs are levied on 598 tariff lines at 
the HS 10-digit lev el, representing 5.2% of all tariff lines (Table 3.1).28 Reduced or eliminated AFLs 
can be applied depending on the concessions given to the E uropean  Union and RTA partners . 
Table 3.1 Tariff lines subject to A FLs, 2022  
(No. of tariff lines at the 10 -digit level)  
Category  Additional financial liabilities  
Total  List III 
(processed 
agri. products)  List IV (fish)  List I with AFL 
(some other 
products – 
List I)  
Total  598 (5.2%)  162 410 26 
By WTO definition      
WTO agriculture  187 161 0 26 
WTO non -agriculture  411 1 410 0 
By HS level      
HS 01 -24 581 145 410 26 
HS 25 -97 17 17 0 0 
By HS section      
 01 Live animals and products  425 15 410 0 
 02 Vegetable products  25 2 0 23 
 03 Fats and oils 2 2 0 0 
 
22 Viewed at: https://www.resmigazete.gov.tr/eskiler/2020/12/20201231M3 -1.pdf. 
23 List I: agricultural products; List II: in dustrial products; List III: processed agricultural products; 
List IV: fish and fishery products; List V: industrial products on which customs duties are suspended in 
accordance with Council Regulation 1255/96/EE; List VI: products for use in civil aircraf t that benefit from 
reduced customs duties within the scope of end -use application; and List VII: agricultural products that will 
benefit from reduced customs duties within the scope of end -use application.  
24 As indicated in Türkiye's previous Review, prio r to constitutional amendments and the transition to a 
presidential system of government, customs duties were adopted annually by the Council of Ministers and were 
authorized by the TGNA. WTO document WT/TPR/M/331/Add.1, 9  May 2016.  
25 Official Gazette  (2021), No.  31706, 31  December. Viewed at: https://www.resmigazete.gov.tr/  
eskiler/2021/12/20211231M3 -1.pdf. 
26 Further information on ad hoc  tariff changes over the review period is contained in the WTO Trade 
Monitoring database. Viewed at: https://tmdb.wto.org/en . 
27 It should be noted however that in 2018 Türkiye introduced a second, different type of A FL. This 
AFL is applied to certain goods originating in Indonesia, India, Sri Lanka, Viet  Nam, Bangladesh, Cambodia , 
and Pakistan that are imported into Türkiye from an EU member State accompanied by an A.TR certificate to 
compensate for differences between the European  Union and Türkiye in the GSP treatment accorded to these 
products.  
28 The legal basis for levying AFLs is Law No.  2976 on Foreign Trade Regulations.  WT/TPR/S/ 439 • Türkiye  
 
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 Category  Additional financial liabilities  
Total  List III 
(processed 
agri. products)  List IV (fish)  List I with AFL 
(some other 
products – 
List I)  
 04 Prepared food, beverages 
 and tobacco  129 126 0 3 
 05 Mineral products      
 06 Chemicals and products thereof  17 17 0 0 
Note:  Figures refer only to dutiable lines. Figures in parentheses denote the share of total lines.  
Source:  WTO Secretariat calculations, based on tariff information provided by the authorities.  
3.24.  Additional customs duties (ACDs) are applied to imports from all trading partners, except the 
European  Union and certain countries with which Türkiye has a n RTA (for whom an ACD zero rate is 
applied).29 ACDs are introduced, amended, or abolished by Presidential Decision and are not part of 
the annual Import Regime decisions. According to the authorities, the purpose of these duties is to 
defend domestic producers ' interests against imports that cause injury to the domestic industry. 
ACDs are applied to 3,206 tariff lines (at the HS  10-digit level) , representing 27.7% of all tariff lines. 
Rates ranging from 2% to 30% (Table 3.2).30 
Table 3.2 Tariff lines subject to ACDs, 2022  
HS Section  No. of 
tariff  lines  Averages for 
dutiable lines 
(%) Range (%)  
Total 3,206  16.3 2-30 
 02 Vegetable products  1 20.0 20.0 
 04 Prepared food, beverages and tobacco  17 8.6 4.3-20 
 05 Mineral products  8 22.5 5-25 
 06 Chemicals and products thereof  76 19.9 5-25 
 07 Plastics, rubber, and articles thereof  182 11.2 5-25 
 08 Raw hides and skins, leather, and its products  116 20.0 10-30 
 09 Wood and articles of wood  25 20.0 20.0 
 10 Pulp of wood, paper and paperboard  73 16.5 5-25 
 11 Textiles and textile articles  1,098  19.7 2-30 
 12 Footwear, headgear, etc.  110 25.4 8-30 
 13 Articles of stone, plaster, cement  83 18.6 2-25 
 14 Precious stones and metals, pearls  25 11.0 5-15 
 15 Base metals and articles thereof  393 15.4 5-25 
 16 Machinery, electrical equipment, etc.  640 9.4 2.1-30 
 17 Transport equipment  44 13.7 5-21 
 18 Precision equipment  112 11.0 5-25 
 20 Miscellaneous manufactured articles  203 21.1 5-30 
Note:  ACD rates are those that were revised in February 2022.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.25.  Türkiye's applied MFN tariff mainly consists of ad valorem  rates; these apply to 97.9% of all 
tariff lines. Its simple average MFN applied tariff rate, including the customs duty, AFLs, and ACDs, 
in 2022 was 19.6%. This shows a considerable increase compared with the previous Review (12.8% 
in 2015) and is due to the inclusion of AFLs and ACDs into the applied MFN tariff. I nternational tariff 
peaks now affect 36.2% of tariff lines, up from 16.1% in 2015. There has been a reduction in the 
number of duty -free lines from 23.5% in 2015 to 18.8% in 2022. There remains a marked difference 
between tariff protection to agricultural products (WTO definition) as compared with the 
non-agricultural sector (Table  3.3). 
 
29 RTA partners for which ACDs are zero -rated are Albania, Bosnia and Herzeg ovina , Chile, EFTA, Egypt, 
Faroe Islands, Georgia, Israel, the Republic of Korea, Kosovo, Malaysia , Mauritius , the Republic of Moldova , 
Morocco , Montenegro , North  Macedonia, Palestine , Serbia , Singapore , Tunisia , the United  Kingdom , and the 
Bolivarian Repu blic of Venezuela.  
30 Presidential Decision No.  5207. Official Gazette  (2022), No.  31760 , 24 February. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2022/02/20220224 -27.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 Table 3.3 Structure of MFN tariffs in Türkiye, 2015 and 2022  
(%) 
 Applied MFN tariff  
Final boundc 2015a 2022 incl. all 
dutiesb 
1 - Bound tariff lines (% of all tariff lines)  n.a. n.a. 50.4 
2 - Simple average tariff rate  12.8 19.6 37.5 
 Agricultural products (WTO definition)  49.0 49.2 72.1 
 Non-agricultural products (WTO definition)  5.5 12.3 17.6 
 Agriculture, hunting, forestry and fishing (ISIC 1)  27.1 29.4 46.2 
 Mining and quarrying (ISIC 2)  0.2 1.7 9.3 
 Manufacturing (ISIC 3)  12.1 19.1 36.8 
3 - Duty-free tariff lines (% of all tariff lines)  23.5 18.8 2.8 
4 - Non-ad valorem  tariffs (% of all tariff lines)  1.7 2.1 0.2 
5 - Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  0.2 1.1 0.2 
6 - Simple average rate of dutiable lines only  16.8 24.1 39.8 
7 - Tariff quotas (% of all tariff lines)  .. .. 0 
8 - Domestic tariff peaks (% of all tariff lines)d 9.0 5.6 3.7 
9 - International tariff peaks (% of all tariff lines)e 16.1 36.2 32.7 
10 - Overall standard deviation of applied rates  27.6 30.3 44.7 
11 - Nuisance applied rates (% of all tariff lines)f 5.5 3.5 0.04 
12 - Total number of tariff lines at the national tariff  line level 16,515  11,581  12,407  
 Duty-free rates  3,882  2,177  351 
 Ad valorem  rates (> than 0%)  12,358  9,162  5,881  
 Specific rates  24 20 23 
 Compound rates  110 119 0 
 Mixed rates  48 34 0 
 Other (variable rates for applied MFN tariff)  93 69 6,152 (Unbound)  
.. Not available.  
n.a. Not applicable.  
a Calculations include "tariff rate" and agricultural components for processed agricultural 
products  (List III). 
b Calculations include customs duties, AFLs, and ACDs. ACD rates are those that were revised in 
February 2022.  
c Calculations for final bound rates are taken from the CTS database. The final bound schedule is 
based on HS02 nomenclature (at the 10 -digit tarif f line level) and consists of 12,407 tariff lines, 
of which 6,255 are bound (at the 10 -digit tariff line level).  
d Domestic tariff peaks are defined as those exceeding three times the overall simple average 
applied  rate. 
e International tariff peaks are de fined as those exceeding 15%.  
f Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  Calculations are based on the national tariff line level (12 -digit for 2015; 10 -digit for 2022). The 
2015 and 2022 tariffs are based on the HS12  and HS22 nomenclatures, respectively. For  2015, 
ad valorem  equivalents (AVEs) were provided by the authorities; for 2022, AVEs were estimated by 
the WTO Secretariat based on 2021 import data at the 10 -digit tariff from the authorities. In case of 
unavaila bility of AVEs, the ad valorem  part is used for compound and mixed duty rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and WTO CTS database.  
3.26.  Chart  3.1 shows the distribution of applied MFN  tariff rates in 2015 and 20 22. There was a 
significant decrease over the review period in tariffs falling within the duty -free and up to 10% 
bands, and a corresponding increase in tariffs falling with the bands from over 10% to over 70%. 
The highest tariffs are found in HS Sections  01 (live animals and products) with tariffs ranging from 
0 to 225%, 02 (vegetable products) with a tariff range from 0 -175.5%, and 04 (prepared food, 
beverages and tobacco) with a range of 0  to 135.9% (Table  A3.2). The very highest tariffs of 225%  
apply to 68  tariff lines at the HS 10 -digit level: bovine meat (fresh, chilled, and frozen); meat of 
swine, sheep, goats, horses, asses, mules or hinnies (fresh, chilled and frozen); and fresh, chilled 
or frozen edible offal of the aforementioned animals.  WT/TPR/S/ 439 • Türkiye  
 
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 Chart 3.1 Distribution of MFN tariff rates, 2015 and 2022  
(% of total lines)  
 
Note:  2015 tariff at the 12 -digit level (total lines: 16,515) is based on HS12 nomenclature; 2022 tariff at 
the 10 -digit level (total lines: 11,581) is based on HS17. Calculations include AVEs. In case of 
unavailability, the ad valorem  part is used for compound and mixed rates. They do not add to 100% 
due to unavailability  of AVEs for tariff lines (0.1% of total tariff lines).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Chart 3.2 Average applied MFN tariff rates, by HS section, 2015 and 2022  
(% of total lines)  
 
Note:  Duty-free treatment applied to HS Section 10 in 2015 and HS Section 21 in 2015 and 2021.  
Source:  WTO Secretariat calculations, based on data provided by the authoriti es. 
3.27.  While average MFN tariff rates remain high on live animals, vegetable products, and prepared 
food and beverages, reflecting the situation at the time of Türkiye's previous Review, the inclusion 
of ACDs in the applied tariff has significantly increased tariff protection in other HS sections, notably 
23.5%54.6%
7.8%
3.3%2.3%1.4%2.5%1.5%0.4%2.6%18.8%38.9%
11.7%10.2%
4.2%6.1%
4.4%
2.3%
0.5%2.8%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%
Duty free 10 >10-20 >20-30 >30-40 >40-50 >50-60 >60-70 >70-80 >802015 2022Chart 3. [TUR] Distribution of MFN tariff rates, 2015 and 2022
(% of total lines )
Note: 2015 tariff at the 12 -digit level (total lines: 16,515) is based on HS 12 nomenclature;
2022 tariff at the 10 -digit level (total lines: 11,581) is based on HS 17. 
Calculations include AVEs. In case of unavailability, the ad valorem part is used for compound and mixed rates. 
They do not add to 100% due to unavailablity of AVEs for tariff lines (0.1% of total tariff lines).
Source: WTO Secretariat calculations, based on data provided by the authorities.
0%10%20%30%40%50%60%70%80%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, beverages
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instruments19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.MFN 2015 (No. of tariff lines: 16,515 at the 12 -digit level)
MFN 2022 (No. of tariff lines: 11,581 at the 10 -digit level)Chart 3.[TUR] Average applied MFN tariff rates, by HS Section, 2015 and 2022
2015 (12.8%)  
Source: WTO Secretariat calculations, based on data provided by the authorities.2022 (19.6%)  
Note: Duty-free treatment applied to HS section 10 in 2015 and HS section 21 in 2015 and 2021.WT/TPR/S/ 439 • Türkiye  
 
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 hides and skins, pulp and paper, textiles and articles, footwear and headgear, and miscellaneous 
manufacturing (Chart  3.2). 
3.28.  Türkiye made some changes regarding low -value import s transported via mail or expres s 
cargo in March 2022. The import of goods of a non -commercial nature worth up to EUR 150 and 
weighing up to 30  kg (including business -to-consumer, and consumer -to-consumer transactions) is 
subject to a fixed duty rate of 18% for goods coming directly from  the European  Union, and 30% 
for all other goods. If the goods are subject to the Special Consumption Tax (SCT) on durable 
consumer goods  (SCT List IV), an additional 20% SCT is charged. The rationale behind fixed rate 
duty implementation is to facilitate customs transactions for low -value shipments.  
3.1.3.2   WTO bound duties  
3.29.  Türkiye bound 50.4% of its tariff lines in the Uruguay Round  at rates ranging from zero 
to 225% . The final bound schedule is based on the HS02 nomenclature and contains bindings 
for 100% of agricultural tariff lines and  33.5% of industrial product tariff lines.31 The simple average 
bound tariff rate on agricultural products (WTO definition) is 72.1%, while on non -agricultural 
products it is 17.6% (Table  3.3). 
3.30.  As at the time of the previous Re view, a full comparison between Türkiye's bound and applied 
rates was not possible due to nomenclature differences (Türkiye's schedule of bound commitments 
is in the HS02 nomenclature, while its MFN applied tariff is based on the HS22 nomenclature). As 
such, about 36% of tariff lines could not be compared. This notwithstanding, it appears that for at 
least 31 tariff lines the applied MFN rates exceed bound rates (Table  3.4). 
Table 3.4 Tariff lines where applied  tariff rates exceed bound tariff rates, 2022  
 2022 
applied 
tariff rates 
(%) Bound 
tariff rates 
(%) 
HS 2938 Glycosides, natural or reproduced by synthesis, and their salts, ethers, esters and other derivatives  
 2938100000  6.5 5.0 
HS 2941 Antibiotics  
 2941203000  5.3 0.0 
HS 3701 Photographic plates and film in the flat, sensitized, unexposed; for X -ray 
 3701100000  6.5 0.0 
HS 5607 Twine, cordage, ropes and cables; Binder or baler twine  
 5607210000  12.0 10.0 
HS 5911 Textile products and articles, for technical uses  
 5911100000  5.3 5.0 
 5911311100  5.8 5.0 
 5911311900  5.8 5.0 
 5911321100  5.8 5.0 
 5911321900  5.8 5.0 
 5911400000  6.0 5.0 
 5911901000  6.0 5.0 
 5911909900  6.0 5.0 
HS 7202 Ferro -alloys  
 7202210000  5.7 0.0 
 7202291000  5.7 0.0 
 7202299000  5.7 0.0 
HS 8104 Magnesium and articles thereof, including waste and scrap  
 8104110000  5.3 5.0 
HS 8482 Ball or roller bearings  
 8482101000  8.0 5.0 
 8482109000  8.0 5.0 
 8482200000  8.0 5.0 
 8482300000  8.0 5.0 
 8482400000  8.0 5.0 
 8482500000  8.0 5.0 
 8482800000  8.0 5.0 
 8482911000  8.0 5.0 
 8482919000  7.7 5.0 
 8482990000  8.0 5.0 
 
31 Türkiye has submitted its schedule of commitments based on the HS07. It is being reviewed by the 
WTO Secretariat.  WT/TPR/S/ 439 • Türkiye  
 
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  2022 
applied 
tariff rates 
(%) Bound 
tariff rates 
(%) 
HS 8528 Monitors and projectors, not incorporating television reception apparatus; other, monochrome  
 8528730000  2.0 0.0 
HS 8540 Thermionic, cold cathode or photo -cathode valves and tubes  
 8540110000  14.0 10.0 
HS 8706 Chassis fitted with engines, for the motor vehicles of headings  87.01 to 87.05   
 8706001100  19.0 10.0 
HS 9011 Compound optical microscopes, including those for photomicrography,  cinephotomicrography 
or microprojection  
 9011800000  6.7 5.0 
HS 9022 Apparatus based on the use of X -rays 
 9022300000  2.1 0.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities and the WTO CTS database.  
3.1.3.3   Tariff reductions and exemptions  
3.31.  Türkiye maintains tariff exemptions under different laws, programmes, and 
schemes  (Table  3.5). Additionally, exemptions are available under Türkiye's investment incentive 
schemes and for operators within special z ones (Section  2.4). Tariff exemptions for various industrial 
and agricultural products are also contained in the annual Import Regime Decision in footnotes to 
List No.  II (Industrial Products) and List No. VII (Agricultural Products to Benefit from the Red uced 
Customs Tax within the Scope of End -Use Practice). Additions and modifications to the latter lists 
may be made on an ad hoc  basis through Presidential Decision. There are temporary customs duty 
reductions for some iron and steel products destined to b e used as inputs in the specific production 
within the scope of end -use practice. In addition, another tariff suspension application is conducted 
with the European Commission under the European Tariff Questions Group (ETOG); under ETOG, 
customs duties of s ome industrial goods (raw and intermediate goods) are suspended only if there 
is no production of the good within the EU member States and Türkiye. The list of the suspended 
customs duties is published annually in the Import Regime Decision (List No.  V). 
Table 3.5 Key features of concessional entry schemes, 2022  
Scheme  Eligibility  Benefits  
Inward 
processing 
regime  Conditional exemptions for imports 
(suspension scheme for goods to be 
re-exported). Available to all exporters . Suspension of duty and VAT on raw materials, 
auxiliary materials, semi -finished and finished 
products, and packaging materials.  
Use of equivalent goods. Available to all 
exporters . Suspension of customs duties and VAT on imported 
inputs after the export of compensating products.  
Repayment of duties collected on imports. 
Available to all exporters . Refund of customs duty and VAT paid on imported 
inputs, after export of goods with imported inputs, 
based on drawback method.  
Financial leasing  Vessels, air carriers , and railway vehicles 
for commercial use. Available to all 
importers . Total or partial relief from import duties up to the 
date the leasing contract is over; VAT reductions.  
Moveable and unmovable property. 
Available to all importers . Suspension of all customs duties and exemption from 
duties, charges and fees for the leasing contract up 
to the date the leasing contract is over.  
Temporary 
imports  Certain commercial or personal items. 
Available to a ll importers . Temporary or partial relief from import duties on 
imports for temporary use without any change, 
except normal depreciation resulting from use.  
Source:  Information provided by the authorities.  
3.1.3.4   Preferential tariffs  
3.32.  Under Türkiye's RTAs, preferential tariffs significantly increase market access for most trading 
partners. While the percentage of duty -free rates under the MFN tariff was 18.8% in 2022, it ranged 
from 70.4% to 97.4% for RTA partners (except for the limite d agreements with the 
Islamic  Republic  of Iran, the D -8 economies, and most likely Azerbaijan and Organisation of Islamic 
Cooperation's (OIC) Trade Preferential System ( OIC-TPS) countries for which data are not available). 
While tariff liberalization is ex tensive for non -agricultural products, there has been considerably less 
liberalization of agricultural commodities and processed agricultural products (WTO  agriculture) 
(Table  3.6). WT/TPR/S/ 439 • Türkiye  
 
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 3.33.  Overall, preferences granted under RTAs are more extensive than under unil ateral preference 
schemes. The percentage of duty -free rates ranges from 39.8% under the GSP scheme to 49.1% 
under its preferences for LDCs. As with RTA partners, tariff liberalization is concentrated in 
non-agricultural products (Table  3.6). 
Table 3.6 Summary analysis of the Turkish preferential tariffs, 2022  
 Overall  WTO agriculture  WTO non -agriculture  
Average 
(%) Duty -free 
rates (%)a Average 
(%) Duty -free 
rates (%)a Average 
(%) Duty -free 
rates (%)a 
MFN 19.6 18.8 49.2 13.7 12.3 20.1 
EU 10.9 79.9 48.0 19.8 2.2 94.6 
RTAs       
 Albania  11.9 79.0 49.1 15.7 2.8 94.5 
 Azerbaijan  .. .. .. .. .. .. 
 Bosnia and 
 Herzegovina  1.5 97.4 7.7 86.9 0.0 100.0  
 Chile 11.9 79.0 49.1 15.7 2.8 94.5 
 Developing -8 (D-8)b 19.4 18.8 48.5 13.7 12.3 20.1 
 EFTA 9.4 84.2 49.3 19.9 0.0 100.0  
 Egypt  11.9 79.0 49.1 15.7 2.8 94.5 
 Faroe Islands  9.4 84.2 49.3 19.9 0.0 100.0  
 Georgia  10.0 82.2 42.5 32.0 2.0 94.5 
 Iran, Islamic Rep. of  18.9 18.8 50.0 13.7 11.5 20.1 
 Israel  11.9 79.0 49.1 15.7 2.8 94.5 
 Korea, Republic of  7.0 80.9 35.6 24.9 0.3 94.6 
 Kosovoc 7.4 86.8 26.2 54.9 2.7 94.7 
 Malaysia  9.4 76.2 46.3 23.7 0.7 89.1 
 Mauritius  11.9 79.0 49.1 15.7 2.8 94.5 
 Moldova, Republic of  11.9 79.0 49.1 15.7 2.8 94.5 
 Montenegro  11.9 79.0 49.1 15.7 2.8 94.5 
 Morocco  11.9 79.0 49.1 15.7 2.8 94.5 
 North  Macedonia  11.9 79.0 49.1 15.7 2.8 94.5 
 OIC-TPSd .. .. .. .. .. .. 
 Palestine  11.9 79.0 49.1 15.7 2.8 94.5 
 Serbia  11.9 79.0 49.1 15.7 2.8 94.5 
 Singapore  6.0 78.7 25.8 21.0 1.1 92.8 
 Tunisia  11.9 79.0 49.1 15.7 2.8 94.5 
 United Kingdom  10.9 79.9 48.0 19.8 2.2 94.6 
 Venezuela, Bolivarian 
 Republic of  9.2 70.4 41.1 29.7 1.3 80.3 
Unilateral preference schemes  
 GSP 17.8 39.8 48.8 16.0 10.2 45.7 
 LDC (EBA)  16.7 49.1 49.7 19.0 8.9 56.5 
.. Not available.  
a Duty-free lines as a percentage of total tariff lines.  
b The D -8 group includes Indonesia, the Islamic Republic of Iran, Malaysia, Nigeria , and Pakistan. 
However, as of mid -August 2022, the agreement was only being implemented by Türkiye, the 
Islamic Republic of Iran, and Malaysia.  
c References to Kosovo shall be understood to be in the context of UN Security Council 
Resolution  1244 (1999).  
d OIC-TPS includes the Kingdom of Bahrain, Bangladesh, the Islamic Republic of Iran, Jordan, 
the State of Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, the Kingdom of Saudi  Arabia, 
Türkiye, and the United Arab Emirates.  
Note:  The 2022 tariff schedule is  based on HS22 nomenclature (at the 10 -digit tariff line level). Ad valorem  
equivalents (AVEs) were estimated based on 2021 import data at the 10 -digit tariff from the 
authorities.  
3.1.3.5   Other duties and charges (ODCs)  
3.34.  For all tariff items in its Goods Schedule,  Türkiye has bound "other duties and 
charges"  (Article  II.1(b) of the GATT) at non -zero rates for all items except for those marked 
"free"  (646 tariff lines according to the latest certified bound schedule). As indicated above, the Mass 
Housing Fund levy h as been abolished, and has effectively been integrated into the MFN applied 
tariff as part of the AFLs. As indicated in Türkiye's previous Review, taxes of 4% applied to imports WT/TPR/S/ 439 • Türkiye  
 
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 arriving by maritime transport and 3% for imports arriving by road, rail, or a ir transport . Information 
was not available on whether these taxes are still levied.32 
3.1.3.6   Tariff rate quotas  (TRQs)  
3.35.  Türkiye does not have any TRQs in its WTO Schedule of tariff commitments. However, it does 
have autonomous TRQs and TRQs pursuant to RTAs. In 2022 autonomous TRQs were applied on 
several tariff lines, mainly agricultural products (see Section  4.1.3.2 for t he description of 
autonomous agricultural TRQs and their administration). There were 10 industrial tariff lines with 
autonomous quotas in place (Table  3.7). These TRQs  provide for a zero rate of duty, for a limited 
quantity of the product, to industrialist s or importers based on the production capacity or past 
performance methods of allocation. These TRQs are available to imports from all countries.  
Table 3.7 Türkiye's TRQs on industrial products, 2022  
HS 
2-digit Product  
description  No tariff 
lines  
(12-digit)  In-quota 
rate 
average  
(%) Range 
(%) Out-of- 
quota rate 
average  
(%) Range  
(%) Volume  
28 Inorganic chemicals  1 0 0 5.3 0-5.5 2,000 (tonnes)  
29 Organic chemicals  7 0 0 6 0-6.5 1,100; 70,000;  
100,000;  
65,000;  
120,000;  
5,000  
800; 
3,500  (tonnes)  
38 Miscellaneous  
chemical products  3 0 0 5.6 0-6.5 1,800  
40,000  
450 (tonnes)  
39 Plastics and articles thereof  4 0 0 6.5 0-6.5 4,000; 800; 
14,500; 
700 (tonnes)  
76 Aluminium and articles thereof  1 0 0 7.5 7.5 15 (tonnes)  
84 Nuclear reactors, boilers, 
machinery and mechanical 
appliances, parts thereof  1 0 0 2.2 2.2 1,000,000  
(pieces)  
85 
94 Electrical 
machinery/equipment/parts; 
sound and TV image recorders 
and 
reproducers/parts/accessories; 
certain stuffed furnishings; 
lamps, lighting fittings, 
illuminated signs and 
nameplates; and prefabricated 
buildings  1 0 0 4.7-5 4.7-5 40,000,000  
(pieces)  
59 Impregnated, coated, covered 
or laminated textile fabrics; 
textile articles suitable for 
industrial use  3 0 0 14 0 10,000,000  m2 
39 
59 Plastics and articles thereof; 
impregnated, coated, covered 
or laminated textile fabrics; 
textile articles of a kind suitable 
for industrial use  3 0 0 12.6 10-14 5,000,000  m2 
Source:  Information provided by the authorities.  
3.1.4   Other charges affecting imports  
3.1.4.1   Value  added tax  
3.36.  In 2021, VAT revenue contributed 33.1% to total government revenue, with just over 
two thirds of VAT revenue falling on imports of goods and services33, and just under one third falling 
on domestic production (Table  A3.1). The applicable legislation is Law No.  3065 of 1984 on Value 
Added Tax (VAT Law). The VAT Law was amended in 2017 to require service providers not 
resident/based in Türkiye to declare a nd pay the VAT on electronic services provided to final 
 
32 WTO document WT/TPR/S/331/Rev.1, 9  August  2016.  
33 As indicated in the previous Review, the VAT on imports is calculated on the import price, inclusive of 
customs duties and Special Consumption Tax, if applicable.  WT/TPR/S/ 439 • Türkiye  
 
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 consumers.34 The VAT Law has also been amended various times to introduce new or extend 
existing  VAT exemptions (see below).  
3.37.  VAT rates are contained in the Council of Ministers Decision No.  2007/13033  of 
24 December  2007 on Determination of Value Added Tax Rates to be Applied to Goods and Services, 
as amended. Amendments to VAT rates are made through Presidential Decision.35 The general VAT 
rate remains 18% with reduced rates of 8% and 1% applying to s pecific products (Table  3.8). There 
have been various changes to VAT rates since 2016  (either temporary or permanent) , in several 
cases to mitigate the impact of the COVID -19 pandemic and of rising prices.  
Table  3.8 VAT rates, 2022  
Rate  Products  
18% General rate  
8% Clothing products; some furniture; healthcare services; pharmaceuticals and medical devices; care 
services for the young, elderly, sick or disabled provided by nursing homes and orphanages; 
educational services and related services; admission charges for cinemas, operas, operettas, ballets 
and museums; restaurants and catering services (excluding alcoholic beverages); accommodation 
services; textile and confection products and cus tom manufacturing of them; some construction and 
agricultural machines; stationery goods; waste water services; residences up to 150  m2; tolls of 
bridges built in the build -operate -transfer model framework; LPG deliveries to be used in houses; 
some furnitu re; plot and land deliveries; electricity delivery to residences and agriculture irrigation 
subscribers; certain attorney services; and basic cleaning and hygiene products  
1% All foodstuffs, agricultural products, and livestock; certified seeds; residence s up to 150  m2 built in 
risky areas and within the scope of transformation projects for risky buildings; funeral services; used 
mobile phones under certain conditions; construction contracting works for urban transformation 
projects; leasing of machinery a nd equipment covered by the Investment Incentive Certificate related 
to the financial leasing legislation  
Source:  Information provided by the authorities.  
3.38.  Various new VAT exemptions were introduced over the review period (Table  3.9). 
Table 3.9 New VAT exemptions, 2016 to 2022  
Legal basis  VAT exemptions introduced  
Law 7394  
Official Gazette  (2022), No.  31810, 
15 April - Temporary VAT exemptions until end -December 2025 for the supply of goods 
and services related to construction works to taxpayers holding investment 
incentive certificates for manufacturing and tourism  
- The purchase of technologies that eliminate greenhouse gas emissions as well 
as engineering services provided to taxpayers who man ufacture electric motor 
vehicles in Türkiye, based on R&D undertaken in the country  
Law No.  7104 
Official Gazette  (2018) , No. 30383, 
6 April - Preventative medicine, diagnosis, treatment, and rehabilitation services that 
are provided exclusively by health institutions to foreign persons who are not 
resident in Türkiye  
- The supply of new machinery and equipment to those who engage in  R&D, 
innovation, and design activities in Technology Development Zones; R&D and 
design centres within t he scope of Law  No. 5746 on Supporting Research, 
Development and Design Activities; and in research laboratories within the 
scope of Law No.  6550 on Supporting Research Infrastructures  
Law No.  6824 
Official Gazette  (2017) , No. 30001, 
8 March  - Purchase of  houses and offices in Türkiye by Turkish  citizens living abroad and 
foreign investors that are paid for in foreign currency  
Law No.  6761 
Official Gazette  (2016) , No. 29898, 
24 November  - Freight transport to FZs and freight transport from FZs for export  
Law No.  6663 
Official Gazette  (2016), No.  29620 , 
10 February  - Supply of fertilizer and raw materials to fertilizer manufacturers as well as for 
the supply of animal feed  
Source:  Information provided by the authorities.  
3.39.  As indicated in Türkiye's previous  Review, other goods and services exempt from VAT 
are transactions effected by banks and insurance companies; goods imported in accordance with an 
investment incentive certificate; exported goods and services; goods in transit; goods purchased by 
tourists;  mobile telephone roaming services provided in Türkiye for non -resident customers, where 
 
34 Law No.  7061, Official Gazette  (2017), No.  30261, 5  December.  
35 The President is authorize d to increase the VAT rate specified in the VAT Law up to four time s, to 
reduce it to 1%, and to determine different tax rates for various goods and services within these rates. 
Before  July 2018, the VAT rates were regulated by Council of Ministers decisio ns. WT/TPR/S/ 439 • Türkiye  
 
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 a reciprocity condition exists; supply of goods and services purchased by persons/entities engaged 
in petroleum exploration or related to production, construction, mai ntenance, and repair of marine, 
air, and rail vehicles and also floating dry -docks and their equipment; deliveries of goods/services 
to foreign diplomatic personnel in Türkiye; and most deliveries made and services provided by 
military factories and shipya rds.36 VAT exemptions are also under various incentive 
schemes  (Section s 2.4.3 and 3.3.1).  
3.1.4.2   Special Consumption Tax 
3.40.  The Special Consumption Tax (SCT) continues to be levied on imports and domestic 
production of the following goods that are contained in the additional lists to the Special Consumption 
Tax Law.37 These are petroleum products (List I); motor vehicles, aircraft, and vessels  (List II); 
alcoholic beverages and tobacco products (List III); and durable consumer goods  (List IV). In  2021, 
SCT revenue accounted for 17.6% of total government tax revenue, compared with 26.2% in  2016 
(Table  A3.1); this decrease in share is due to the faster expansion of other revenue streams. 
Following Constitutional amendments, the President is authorized to determine SCT rates; previously 
this was the responsibility of the Council of Ministers.38 
3.41.  SCTs on petroleum products are specific rates (either TRY/m3, TRY/kg, or TRY/litre). 
Compared with 2015, SCT rates on most petroleum products have increased sligh tly, except for fuel 
oils, liquefied natural gas (LNG), auto and fuel biodiesel, and zero -rated items. Exemptions are 
applied to energy products delivered to the armed forces; energy products used for petroleum 
exploration and production activities; and diesel for vehicles leaving Türkiye for export.  
3.42.  The SCT rates on motor vehicles, aircraft, and vessels are ad valorem . They range from  1% 
to 220%. As previously, the highest rates apply to motor vehicles with a large cylinder capacity. 
Compared with 2015, SC T rate bands have been expanded for passenger vehicles, and SCT rates 
have been lowered for some categories of lower -priced vehicles and substantially increased for 
higher -priced cars and/or with a bigger cylinder capacity. According to local sources, this  is expected 
to prompt price decreases of between  6% and 11% for certain petrol and hybrid cars, including 
some models that are locally produced.39 Certain exemptions apply.40 
3.43.  The SCT on alcoholic beverages is levied at specific rates (TRY/litre), except f or beer where 
the tax rate is the higher of 63% or TRY  4.4096 per litre. Since Türkiye's previous Review, SCT rates 
have been increased substantially on all items.  
3.44.  The SCT on tobacco products is calculated on an ad valorem  basis with a specific tax floor; 
the ad valorem  tax is then compared with the minimum specific tax amount, and the higher one is 
applied by adding the specific tax amount. Compared with 2015, SCT rates have increased slightly 
on cigars, cheroots, and cigarillos, but have been lowered on o ther tobacco products.  
3.45.  The SCT on durable consumer goods is applied at rates of 3%, 6.7%, 20%, 25%, 40%, 
and 50%. At the time of Türkiye's previous Review, the highest rate band was 25%. Over the review 
period, new rate bands were added, namely 40% for cel lular transmitter telephone sets with receiver 
with an SCT base over TRY  1,500 and under TRY  3,000 , and 50% for other cellular transmitter 
telephone sets with receiver.  
3.46.  General SCT exemptions are in place for goods subject to certain regimes (transit, cust oms 
warehouse, inward processing, free zones and provisional warehousing; exports; imports by 
 
36 WTO document WT/TPR/S/331/Rev.1, 9  August  2016.  
37 Law No.  4760 of 6  June 2002 on Special Consumption Tax. SCT rates in force were viewed (in 
Turkish) at: https://www.gib.gov.tr/fileadmin/mevzuatek/otv_oranlari_tum/ozeltuketimoranlari -
OpenPage.htm . 
38 Decree No.  700 on Making Amendments to Certain Laws and Decrees in order to Adapt to the 
Amendments to the Constitution. Official Gazette  (2018), N o. 30471 , 7 July.  
39 Hurriyet Daily News  (2022), "Turkey Revises Special Tax Brackets for Cars", 14  January. Viewed at: 
https://www.hurriyetdailynews.com/t urkey -revises -special -tax-brackets -for-cars-170757 . 
40 Exemptions apply to the first acquisition of vehicles by relatives of taxpayers who lost their lives in 
war and duty; certain motor vehicles by disabled persons; planes and helicopters by the Turkish Ae ronautical 
Association; all vehicles by the central organization of the Presidency; and certain vehicles for the purpose s of 
petroleum exploration.  WT/TPR/S/ 439 • Türkiye  
 
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 diplomats (except List IV); and import of goods that are free of customs duty for the goods in  Lists II, 
III, and IV).  The SCT is zero -rated on marine fuels (Sect ion 3.3.1.4).  
3.1.4.3   Digital Services Tax 
3.47.  Through Law No.  7194, which entered into force in March 2020, Türkiye introduced a Digital 
Services Tax of 7.5% on digital service providers.41 The tax is applied on the revenue generated 
from the sale of specified digital services, namely advertising services in the digital environment; 
audible, visual, or digital content in the digital environment; services for listening, watching, playing, 
or recording of digital content on electronic devices; services for the provision and operation of 
digital environments involving user interaction; and intermediary services provided by digital 
services providers.42 Various exemptions apply.43 In 2021, the Di gital Service Tax accounted for 
0.2% of total government revenue (Table  A3.1). It is applied both to domestically produced services 
and imports of services. As indicated by the authorities, in the context of the ongoing OECD Base 
Erosion and Profit Shiftin g (BEPS) negotiations on the taxation of digital services, once the 
OECD  reaches an agreement, the Digital Services Tax will be removed and replaced with the 
OECD  outcome.  
3.1.4.4   Strip stamps for alcoholic beverages and tobacco products  
3.48.  Türkiye continues to implement a strip stamp requirement for alcoholic beverages and tobacco 
products, with exemptions applying to alcoholic beverages of 5  cl or less and wine during the ageing 
process. As indicated in the previous Review, strip stamp pric es are the same for domestically 
produced and imported products, except for beer, where apparently the price difference is due to 
the cost of the stamp paper (Table 3.10). Stamp prices increased significantly over the review period. 
For imported goods, the  codified label may be affixed at production sites abroad before the products 
are shipped to Türkiye, in the customs areas in Türkiye, or at the facilities of an authorized company 
in the provinces of Istanbul, Izmir, or Mersin. Strip stamps are an importa nt element in preventing 
IP piracy.  
Table 3.10 Strip stamp p rice list, 2015 and 2002  
Product  2015  
(TRY '000)  2022  
(TRY '000)  
Tobacco (for domestic products)  10.15  88.07  
Tobacco (for imported products)  10.15  88.07  
Alcohol (for domestic products)  58.19  504.43  
Alcohol (for imported products)  58.19  504.43  
Beer code (for domestic production)  3.23 56.02  
Coded beer label (for imported products)  3.23 97.23  
Source:  Information provided by the authorities.  
3.1.4.5   Other taxes and charges on imports  
3.49.  The importation of goods on a credit basis continues to be subject to a Resource Utilization 
Support Fund surcharge. It is imposed at a rate of 6% on credit -based import transactions with 
maturity periods.44 Since 2015, a rate of 0% has been applied for certain listed imported goods.45 
No surcharge is imposed on import transactions made with the cash payment method.  
3.50.  Under the Turkish Radio -Television Revenues Law (Law No.  3093), imports of radios, 
televisions,  video players , and combined devices that can receive visual and/or audio broadcast into 
 
41 Law No.  7194, Official Gazette  (2019), No.  30971, 7  December. The General Communiqué on the 
Implementation  of the Digital Service Tax was published in Official Gazette  (2020), No.  31074, 20  March. 
Viewed at: https://www.resmigazete.gov.tr/eskiler/2020/03/20200320 -4.htm . This provides  information on 
implementation of the tax.  
42 Türkiye Revenue Administration (2021), Turkish Taxation System 2021.  Viewed at: 
https://www.gib.gov.tr/sites/default/f iles/fileadmin/taxation_system2021.pdf . 
43 Exemptions include providers with revenues below a certain threshold; services whereby there is a 
payment to the treasure under Law No.  406 on Telegraph and Telephone; services subject to the special 
communication tax; services under Article  4 of the Law on Banking; sales of certain products as a result of 
R&D activities; and payment services.  
44 Council of Ministers Decision No.  2011/2304. This entered into force on 13  October  2011.  
45 Cabinet Decision No. 2015/7511 of 8  April 2015.  WT/TPR/S/ 439 • Türkiye  
 
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 Türkiye must have obtained a tax stamp prior to importation and are subject to a fee upon import 
of between 2% and 12% of the invoice price including VAT.46 Fees are a lso charged to domestic 
manufacturers of these items. The revenue from these taxes is used to fund public service 
broadcasting.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.51.  Import prohibitions apply to various products for reasons of health, environment, compliance 
with domestic law, security, and public morals (Table  3.11). Over the review period, some of the 
strict prohibitions on wastes and persistent organic pollutants were revised and certain previously 
prohibited wastes were allowed unde r certain licensing or other specific requirements.  
Table 3.11 Import prohibitions, 2022  
Description  Rationale (invocation 
of WTO  article)  Legal/regulatory basis  
Narcotics, hashish and prepared 
opiuma Health, IAb Law No.  2313 of 21  November  1982 on the Control of 
Narcotics, and the Single Convention on Narcotics 
Drugs  (1961)  
Certain wastes and metal scraps  Environment  Communiqué on the Import Inspection of Wastes under 
Control for Environmental Protection (Product Safety and 
Inspection No.  2022/3). Communiqué on the Import 
Inspection of Metal Scraps under Control for Environmental 
Protection (Product and Safety Inspection No.  2022/23)  
Ozone -depleting substancesa,c Environment  Commu niqué on Import of Ozone Depleting Substances 
and Fluorinated Greenhouse Gases  No. 2022/14. 
Communiqué on the Import Inspection of Certain 
Chemicals under Control for Environmental Protection 
(Product Safety and Inspection No.  2022/6)  
Persistent organic p ollutants  Environment  By-law on Persistent Organic Pollutants  
Colouring matter  Health  Law No.  1593 on the Protection of Public Health; 
Regulation on Special Conditions of Foodstuffs and Supplies 
and Objects Concerning Public Health Import Regime 
Communiqu é No.  2022/5052 Add  II (List)  
Chemical weapons scheduled in 
Annexes I and II of the Conventionc Environment  Communiqué on Import of Chemical Substances Annexed 
to the Chemical Weapons Convention  No. 2022/17  
Measurement instruments not 
confirming to Turkish legal norms  Compliance with domestic 
law Law No.  3516 on Standards and Accords  
Weapons (excluding military 
weapons)a Security  Law No.  6136 on Firearms of 10  July 1953 and 
Communiqué on the Importation of Firearms and 
their Parts No.  2022/2  
Military weapons and their parts 
and accessoriesa Security  Law No.  5201 on Control of Industrial Enterprises 
Producing War Weapons, Vehicles, Equipment, Ammunition 
and Explosives  
Communiqué on Import of War Weapons and Parts Thereof 
No. 2022/2  
Gambling instruments (except for 
specified tourism purposes)a Public morals  Law No.  1072 on Gambling Instruments like Roulette, Tilt, 
and Pinball  
Products making illegal use of a 
trademark (all industrial products)  Compliance with domestic 
law; IAa 
Public morals  Paris Convention 1883 annexed to the Law of 1930 on 
Accession to the 1925 Hague Agreement on International 
Industrial Property (1925); Industrial Property Code, Law 
No. 6769 of 2017; Customs Law (No.  4458 of 1999)  
Counterfeit labels and prod ucts for 
packing  Public morals  Law No.  4458 of 27  October  1999 on Customs  
Soil, leaf, stem, straw, and natural 
manure used for agricultural 
purposes (excluding turf and perlite 
cultivated in culture environment)  Health  Law No.  5996 of 13  June 2010 on Vet erinary Services, 
Plant Health, Food and Livestock and Regulation on 
Agricultural Quarantine  
Spawn of silk -worm  Not indicated  Law No.  856 of Cultivation and Sale of Silk -work and Silk -
worm Spawn  
a Prohibited except when imported by authorized government bodies.  
b IA: Undertaken in pursuance of obligations under intergovernmental commodity agreements.  
c Imports prohibited only from non -members of the international agreements.  
Source:  WTO document G/MA/QR/N/TUR/2/Add.3, 15  February  2022; and info rmation provided by 
the authorities.  
 
46 Turkish Radio -Television Institution Revenues Law No.  6537. Official Gazette  (1984) , No. 18606 , 
15 December. Viewed at: https://www.mevzuat.gov.tr/Mevzua tMetin/1.5.3093.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 3.52.  Türkiye applies all UN trade sanctions. With respect to EU trade sanctions, Türkiye may or 
may not apply them, as they are not binding on Türkiye. As indicated by the authorities, there are 
no import prohibitions target ing specific countries, outside of UN trade sanctions.  
3.1.5.1   Import licensing  
3.53.  Importers must be licensed by the Department of Tobacco and Alcoholic Drinks within the 
Ministry of Agriculture and Forestry to import alcohol. Only members of the Borsa Istanbul Preci ous 
Metals Market may import unwrought precious metals. Importers of rough diamonds must be 
authorized by the Ministry of Treasury and Finance (MoTF) in accordance with the Kimberley Process 
Certification Scheme. Importers must obtain a control certificate  to import pharmaceuticals, certain 
organic chemicals, vaccines for humans and animals, chemicals used in cleaning and the food 
industry; hormones; and certain animals, animal products, and plant materials for production.47 
Import licensing (certification)  requirements for consignments of goods subject to import 
surveillance are set out in Section  3.1.1.1.  
3.54.  Türkiye's latest notification of its import licensing procedures was submitted 
in September  2022.48 As previously, import licensing applies to certain go ods to enforce compliance 
with international conventions, for national security , or for  public/worker safety (Table  3.12).  
Table 3.12 Imports requiring a licence, 2022  
Description (legal  basis)  Requirements and rationale  Changes over the 
review period  
Radioactive materials and 
devices using them  
(Import Communiqué 
2022/3, Official Gazette  
(OG) (2021), No.  31706 
bis, 31  December)  Requirements:  Import permission and licence to be 
obtained from the Nuclear Regulation Authority. For certain 
items, importers themselves must have an import -export 
transportation licence or a use -possession licence. Import 
permission and licence fees are levied.  
Ratio nale:  To ensure patients ' security against the probable 
harmful effect of radioactivity.  The number of products 
subject to the 
Communiqué and 
licence fees were 
changed.  
High intensity sweeteners  
(Import Communiqué 
2022/4, OG (2021), 
No. 31706 bis)  Requir ements:  Approval from the Ministry of Agriculture 
and Forestry at least 10 days before import. Licences are 
automatically issued within 10 days if documentation 
requirements are met. Licence is valid for six months. No fees 
are levied.  
Rationale:  To monito r the impact of imports of high intensity 
sweeteners on the Turkish sugar market and for statistical 
purposes.  The licence fee was 
changed.  
Maps and products 
including map information  
(Import Communiqué 
2022/5, OG (2021), 
No. 31706 bis)  Requirements:  Approval from Commandership of Maritime 
Forces for import of sea maps. Approval of General 
Commandership of Cartography within the Ministry of 
National Defence for import of other items. Fees are levied 
for map inspection. Import approvals are per product.  
Rationale:  To provide accurate information to the public.  The licence fee was 
changed.  
Vehicles  
(Import Communiqué 
2022/7, OG (2021), 
No. 31706 bis)  Requirements:  Approval from Ministry of Industry and 
Technology or Turkish Standard Institution. Inspection fees 
are levied.  
Rationale:  To ensure that imported vehicles are suitable for 
highways.  Requirement for 
a pro forma invoice 
certified by the Ministry 
of Industry and 
Technology has been 
removed . 
Civil aircraft  
(Import Communiqué 
2022/8, OG (2021), 
No. 31706 bis)  Requirements:  Approval from the General Directorate of 
Civil Aviation, seven days in advance of import.  
Rationale:  To prevent usage of imported goods in areas 
other than civil aviation. Fees are levied.  The number of products 
subject to Communiqué 
and licence fees were 
changed.  
Certain explosives, 
firearms, knives and similar 
products  
(Import Communiqué 
2022/11, OG (2021), 
No. 31706 bis)  Require ments:  Approval from the General Directorate of 
Security within the Ministry of Interior. Importers must have 
a production, sales, and usage licence document obtained 
from the relevant Governorates of provinces for import of 
certain items.  
Rationale:  To protection national security and public  safety.  No changes  
 
47 U.S. International Trade Administration. Viewed at: https://www.trade.gov/country -commercial -
guides/Türkiye -import -requirem ents-and-documentation . 
48 WTO document WT/LIC/N/3/TUR/19, 22  September  2022.  WT/TPR/S/ 439 • Türkiye  
 
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 Description (legal  basis)  Requirements and rationale  Changes over the 
review period  
Certain substances affecting 
labourer 's health and 
security  
(Import Communiqué 
2022/13, OG (2021), 
No. 31706 bis)  Requirement:  Approval from the Institute of Workers ' 
Health and Labour Security within the Ministry of Labour, 
Social Services and Family. No fees are levied.  
Rationale:  To protect workers ' health.  .. 
Papers of a kind used for 
printing banknotes and 
securities  
(Impor t Communiqué 
2022/10, OG (2021), 
No. 31706 bis)  Requirement:  Approval from Ministry of Trade or the 
Board  of Capital Markets depending on the product.  
Rationale:  To ensure confidence for persons in the capital 
markets.  No changes  
Fertilizers  
(Import Comm uniqué 
2022/16, OG (2021), 
No. 31706 bis)  Requirement:  Approval from Ministry of Agriculture and 
Forestry. The European  Union is exempt from import licensing 
requirements applied to most fertilizers. Licence validity is for 
six months, which can be extend ed up to the end of the 
calendar year. Licence fees apply.  
Rationale:  To help ensure proper use of resources in 
agricultural production that may cause damage to health or 
lifecycle of plants, animals, or humans when treated 
without  control.  Import licence is not 
required for the import 
of some products that 
are not to be us ed as 
fertilizers.  
Endangered species of wild 
fauna and flora  
(Foreign Trade 
Communiqué 2011/1, OG 
(2011), No.  27859  bis, 
27 February)  Requirement:  CITES document issued by the Ministry of 
Agriculture and Forestry is required for the import of listed 
species. This document is valid for 12 months. Licence fees 
are levied.  
Rationale:  To conform with the Convention on International 
Trade in Endangered Species of Wild Fauna and Flora 
(CITES).  If the wild species to be 
imported is invasive 
and harms the native 
species and 
biodiversity, its import 
is prohibited.  
.. Not available.  
Source:  WTO document G/LIC/N/3/TUR/17, 5  January  2021.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.55.  As indicated in Section  3.1.1.1, through its import surveillance mechanism, Türkiye requires 
importers of certain products to provide additional data/information beyond that  which is included 
in the customs declaration, as this may be needed for future anti -dumping and safeguard 
investigations. It is also used to monito r circumvention.  
3.1.6.1   Anti-dumping and countervailing measures  
3.56.  Türkiye's laws and implementing regulations on anti -dumping and countervailing measures 
remain: Law No.  3577 of 1989 on the Prevention of Unfair Competition in Imports (as amended by 
Law No.  4412 of  1999); Decree  No. 13482/1999 on the Prevention of Unfair Competition in Imports, 
as amended in  2005 and 2020; and the Regulation on the Prevention of Unfair Competition in 
imports, as amended in  2002 and 2006. Article  9 of Decree No.  13482 was amended in 2020 to 
allow the Board, with the approval of the Ministry of Trade, to partially or wholly suspend or amend 
an anti -dumping measure in force when imports of a product are also subject to safeguard measures. 
Such decisions are applicable prospectively from  their date of entry into force and refund of amounts 
collected prior to such a decision may not be made.49 
3.57.  The competent authorities for anti -dumping investigations are the Department of Dumping 
and Subsidy (for dumping and subsidy practices) and Departme nt of Monitoring and Assessment of 
Import Policies (for circumvention practices). Both fall within the Ministry of 
Trade's  General  Directorate of Imports.50 
3.58.  Türkiye initiated 44 anti -dumping investigations during the period from 1  January  2016 
to 1 July 2022; it imposed 1 provisional measure and 33 definitive measures following original 
investigations. A total of 27 measures expired or were terminated (Table  3.13).  
 
49 WTO document G/ADP/N/1/TUR/3/Suppl.4 and G/SCM/N/1/TUR/3/Suppl.4, 4  November  2020.  
50 WTO document G/ADP/N/14/Add.56, G/SCM/N/18/Add.56, 21  April 2022.  WT/TPR/S/ 439 • Türkiye  
 
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 Table 3.13 Anti-dumping original investigations and measures, 
1 January  2016 -1 July 2022  
 2016  2017  2018  2019  2020  2021  2022 
Investigation initiations  16 8 6 2 3 9 0 
Provisional measuresa 1 0 0 0 0 0 0 
Final measuresa 9 10 10 0 2 1 1 
Expired/terminated measures  2 4 3 8 1 5 4 
a Data cover provisional and final measures imposed following an original investigation. They do not 
cover final measures imposed following reviews or other subsequent proceedings.  
Source:  Türkiye's semi-annual reports to the WTO Committee on Anti -Dumping Practices.  
3.59.  As of July 2022, Türkiye was enforcing 131 anti -dumping definitive measures, less than in 
previous years . Imports from 23 economies were affected. Imports from China were subject to 
around  half of all anti -dumping measures each year over the review period. Other trading partners 
regularly subject to several measures include India, Indonesia, the Republic of Korea, Malaysia, 
Chinese  Taipei, Thailand, and Viet  Nam (Table  3.14).  
Table 3.14 Anti-dumping measures in force, by trading partner/region, January 2016 -
July 2022  
 2016  2017  2018  2019  2020  2021  2022a 
Bangladesh  0 0 1 1 1 0 0 
Brazil  1 1 2 2 2 2 2 
Bulgaria  4 4 4 4 4 1 1 
Canada  1 1 1 0 0 0 0 
China  59 62 54 60 60 56 58 
Egypt  1 1 1 1 1 0 0 
Finland  0 0 1 1 1 1 1 
Germany  2 2 3 3 3 3 3 
Greece  0 2 2 4 4 1 1 
Hong Kong, China  1 1 1 1 1 1 0 
India 9 9 9 11 11 8 8 
Indonesia  11 10 11 11 11 7 6 
Iran, Islamic Rep. of  0 0 2 2 2 1 1 
Israel  2 2 2 2 2 1 1 
Italy 1 2 2 2 2 1 1 
Korea, Republic of  5 9 9 10 10 7 8 
Malaysia  11 11 12 12 13 1 7 
Pakistan  2 2 2 2 2 1 1 
Philippines  2 2 2 2 2 0 0 
Poland  1 1 2 2 2 1 1 
Romania  1 1 0 0 0 0 0 
Russian  Federation  3 3 4 4 4 3 3 
Serbia  1 1 1 1 1 1 1 
Spain  0 1 1 2 2 0 0 
Sri Lanka  1 1 1 2 2 1 1 
Sweden  0 0 1 1 1 1 1 
Chinese  Taipei  12 12 13 12 12 7 7 
Thailand  9 10 11 11 12 9 9 
Ukraine  1 0 0 0 0 0 0 
United  States  4 4 4 3 3 2 1 
Viet Nam 11 11 14 13 13 8 8 
Total  156 166 173 182 184 131 131 
a Figures are for measures in force on 30  June 2022.  
Note:  Figures reflect anti -dumping and measures in force on 31  December of each year (except for 2022). 
Undertakings and duties are considered as separate measures.  
Source:  Türkiye's semi -annual reports to  the WTO Committee on Anti -Dumping Practices.  
3.60.  Textile products accounted for most measures in force on 1  July 2022, followed by mining 
and metals, and then plastic and rubber products (Chart  3.3). WT/TPR/S/ 439 • Türkiye  
 
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 Chart 3.3 Anti-dumping measures in force, by product, 30  June  2022  
 
Source:  Türkiye's semi -annual reports to the WTO Committee on Anti -Dumping Practices.  
3.61.  Over the review period, Türkiye undertook one countervailing investigation, on acr ylic or 
modacrylic from China, in March 2018, which was terminated without a measure.51 An investigation 
initiated in 2015 on seamless tubes and pipes of iron and steel was also terminated without a 
measure in October 2016.52 As of 1  September  2022, Türkiye had one countervailing measure in 
force, on PET films from India . A sunset review was initiated on 12  September  2020, and concluded 
on 6 March  2022 with a decision to continue the measure.53 
3.1.6.2   Safeguard measures  
3.62.  Türkiye's leg al framework for the imposition of safeguard measures is composed of the Decree 
on Safeguards Measures for Imports and the Regulation on Safeguards for Imports. There were no 
changes to the law or regulation over the review period. The authority to propose , apply, and monitor 
safeguard measures rests with the Ministry of Trade (previously with the Ministry of Economy). 
Procedures for initiating a safeguard investigation and for adopting, reviewing, extending, modifying, 
and abolishing any provisional or def initive safeguard measures are unchanged; they are described 
in Türkiye's previous Review.54 
3.63.  As of 1  September  2022, Türkiye was enforcing a total of five final safeguard measures. 
Since  1 January  2016, Türkiye initiated seven new safeguard investigations,  with five of these 
resulting in the application of final measures. Three pre -existing safeguard measures were 
extended  (Table  3.15).  
Table 3.15 Safeguard activity, 1  January  2016 -1 September  2022  
Date of init iation 
of investigation  Goods  Measures  Latest notification(s) to the WTO  
New investigations  
5 December  2014 Transmission 
apparatus 
incorporating 
reception apparatus 
(cellular) portable 
telephone  Terminated without measure 
on 4 March 2016  G/SG/N/9/TUR/6, 15  March  2016 
25 April 2015 Porcelain and 
ceramic tableware, 
kitchenware  Terminated without measure 
on 25 January  2016 G/SG/N/9/TUR/7, 6  February  2017 
 
51 WTO document G/SCM/N/349 /TUR, 22  October  2019.  
52 WTO document G/SCM/N/313/TUR, 8  March  2017.  
53 WTO document G/SCM/N/386/TUR, 25  February  2022.  
54 WTO document WT/TPR/S/331/Rev.1, 9  August  2016.  
Textile
40Mining and metals
30Plastic and rubber
22Machinery
11Petro-chemistry and chemistry
9
Other 8
Paper 4
Wood 3
Electrics and 
electronics
2Chart 3.[TUR]   Anti -dumping measures in force, by sector, as of 30 June 2022
Total:  129
Source: WTO notifications.WT/TPR/S/ 439 • Türkiye  
 
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 Date of init iation 
of investigation  Goods  Measures  Latest notification(s) to the WTO  
6 April 2017 Pneumatic tyres  Terminated without measure 
on 5 January  2018 G/SG/N/6/TUR/22/Suppl.1,  
G/SG/N/7/TUR/12/Suppl.1,  
G/SG/N/11/TUR/21/Suppl.1,  
17 January  2018 
22 April 2017 Toothbrushes  Final measure imposed 
on 3 February 2018  G/SG/N/8/TUR/16,  
G/SG/N/10/TUR/16,  
G/SG/N/11/TUR/22,  
19 October  2017 
27 April 2018 Certain steel 
products  Provisional duty imposed 
on 17 October 2018.  Terminated 
without measure on 7  May 2019 G/SG/N/7/TUR/13/Suppl.1,  
13 May 2019 
30 December  2018 Yarn of nylon or 
other polyamides  Final measure imposed 
on 21 October 2019  G/SG/N/8/TUR/17,  
G/SG/N/10/TUR/17,  
G/SG/N/11/TUR/24,  
23 October  2019 
11 June 2020 Polyethylene 
terephthalate chips  Final measure imposed 
on 13 December 2020  G/SG/N/8/TUR/18,  
G/SG/N/10/TUR/18,  
G/SG/N/11/TUR/25,  
16 November  2020 
30 May 2020 Staple fibres o f 
polyesters, not 
carded, combed or 
otherwise processed 
for spinning  Final measure imposed 
on 23 September 2021  G/SG/N/8/TUR/19,  
G/SG/N/10/TUR/19,  
G/SG/N/11/TUR/26,  
30 August  2021 
9 October  2021 Grinding balls and 
similar articles for 
mills Final measure imposed 
on 26 August 2022  G/SG/N/8/TUR/20,  
G/SG/N/10/TUR/20,  
G/SG/N/11/TUR/27,  
5 August  2022 
Investigations to extend existing measures  
17 June 2017 Polyethylene 
terephthalate chips  Final measure imposed 
8 November 2017  G/SG/N/8/TUR/13/Suppl.2,  
G/SG/N/10/TUR/13/Suppl.3,  
G/SG/N/11/TUR/16/Suppl.2,  
9 November  2018 
3 June 2020 Toothbrushes  Extension of final measures 
from 3 February  2021 G/SG/N/10/TUR/16/Suppl.2,  
G/SG/N/11/TUR/22/Suppl.2,  
14 January  2021 
16 January  2021 Wallpaper and 
similar 
wallcoverings  Extension of final measure 
from 6 August  2021 G/SG/N/10/TUR/15/Suppl.2,  
G/SG/N/11/TUR/20/Suppl.2,  
15 July 2021 
26 January  2022 Yarn of nylon or 
other polyamides  No further developments  G/SG/N/6/TUR/25/Suppl.1,  
G/SG/N/14/TUR/12, 
4 February  2022 
Source:  Türkiye's notifications to the WTO Committee on Safeguards.  
3.64.  Over the review period, Türkiye notified the Council for Trade in Goods of its proposed 
suspension of concessions pursuant to th e Agreement on Safeguards in the form an increase in 
duties on selected products from Thailand55, the United  States56, Egypt57, and the European  Union.58 
3.1.7   Other measures affecting imports  
3.1.7.1   Local content measures  
3.65.  Under the Law on the Utilization of Renewable Energy Resources for the Purposes of 
Generating Electrical Energy as amended in 2010 (Law on Renewable Energy Law)59, and Presidential 
Decree No.  3453 of 20  January  202160, the State guarantees feed -in tariff (FIT) rates for the 
purchase of electrical energy by renewable energy power plants. It also provides additional 
incentives to power plants using domestically produced mechanical and/or electro -mechanical 
products in th e form of a top -up to the FIT (the so -called RER support mechanism). The objectives 
 
55 WTO document G/L/1183, G/SG/N/12/TUR/5, 3  August  2017.  
56 WTO documents G/L/1242, G/SG/N/12/TUR/6, 22  May 2018; G/L/1242/Suppl.1, 
G/SG/N/12/TUR/6/Suppl.1, 15  August  2018; and G/L/1242/Suppl.2, G/SG/N/12/TUR/6/Suppl.2, 23  May 2019.  
57 WTO document G/L/1350, G/SG/N/12/TUR/7, 11  December  2019.  
58 WTO documents G/L/1359, G/SG/N/12/TUR/9, 25  May 2020; G/L/1359/Rev.1, 
G/SG/N/12/TUR/9/Rev.1, 24  July 2020; and G/L/1359/Rev.2, G/SG/N/12/TUR/9/Rev.2, 30  June 2021.  
59 Law No.  5346 of 2005, as amended by Law No.  6094 of 2 010. The 2010 amendment, inter alia, 
introduced Articles 6 and 6B on the use of domestic products.  
60 Presidential Decree No.  3453 of 20  January  2021, Official Gazette  (2021), No.  31380, 30  January.  WT/TPR/S/ 439 • Türkiye  
 
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 of this scheme are to increase the share of renewable energy sources in total electricity production, 
reduce dependency on imported energy, and support renewable industry d evelopment in Türkiye, 
including through job creation and reduced dependency on imports of these components.61 The 
application of FIT and RER support was originally for eligible power plants commissioned 
before  December 2020; the deadline was subsequently extended to 30  June 2021. These supports 
were intended to be temporary. However, through Presidential Decree No.  3453, a new mechanism 
was introduced for power plants commissioned between 1  July 2021 and December 2025 under 
which the FIT rates are set for 10 years and the RER support mechanism incentives for 5 years. 
Local content rates were decreased; previously they ranged from 0.023 USD/kWh to 0.092 USD/kWh  
according to the type of production facility and they are now 0.08  TRY/kWh (Table  3.16). The 
FIT rates and RER supports are adjusted quarterly according to a basket composed of currencies 
and price indexes, and are subject to a USD cap.62 
Table 3.16 FIT rates and local content support under the Renewable E nergy Law and 
Presidential Decree No.  3453, 1  July 2021 -December 2025  
Type of power plant  Feed -in tariff (FIT) 
rate 
(TRY/kWh)  Cap for FIT rate 
after adjustment 
(USD/kWh)  Local content 
support under the 
RER support 
mechanism 
(TRY/kWh)  
Hydropower  0.40 0.064  0.08 
Wind 0.32 0.051  0.08 
Geothermal  0.54 0.086  0.08 
Biomass  
 Landfill gas  0.32 0.051  0.08 
 Biomethanization  0.54 0.086  0.08 
 Thermal disposal  0.50 0.080  0.08 
Solar 0.32 0.051  0.08 
Source:  Ergün Avukatlik Büosu Law Offices (2021 ), New YEKDEM (Renewable Energy Support) Mechanism in 
Turkey . Viewed at: https://www.cergun.av.tr/publication/new -yekdem -renewable -energy -support -
mechanism -in-
Türkiye/#:~:text=According%20to%20the%20Presidential%20Decree,2021%20and%2031%20Dec
ember%202025 . 
3.66.  Local content requirements are contained in some government p rocurement tender 
specifications (Section  3.3.6). As indicated in Türkiye's previous Review, under the Law on 
Healthcare Public -Private Partnerships (PPPs), at least 20% of the medical equipment used in PPP 
healthcare facilities must be locally produced.63 The DS583 dispute concerned the application of a 
localization requirement as a condition for the reimbursement of pharmaceutical products under 
Türkiye's universal health insurance scheme. In August 2022, Türkiye indicated its intention to 
implement the r ecommendations and rulings of the Panel and Arbitrators in this dispute.64 
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.67.  Export procedures are set out in Türkiye's Law on Customs, the Customs Regulation, the 
Export Regulation, and  the Export Regime Decree.65 
3.68.  As at the time of Türkiye's previous Review, exporters (persons and legal entities) must 
become a member of an exporters association prior to undertaking export transactions. Export 
declarations must be prepared and approved by  the relevant exporters association before being 
presented to the customs authorities. As indicated by the authorities, the purpose of this procedure 
is to help guide exporters in their export transactions and facilitate and increase exports through 
 
61 WTO document WT/TPR/M/331/Add.1, 9  May 2016.  
62 The basket is composed of Producers Price Index (26% weight), Consumer Price Index  (26%  weight), 
US dollars  (24% weight), and euro (24% weight).  
63 Law on Healthcare Public -Private Partnerships No.  6428, Official Gazette  (2013) No.  28582 , 9 March. 
Viewed at: https://www.resmigazete.gov.tr/eskiler/2013/03/20130309 -1.htm . WTO document 
WT/TPR/S/331/Rev.1, 8  August  2016.  
64 WTO document WT /DSB/M/46 9, 10 October  2022, para. 2.2. 
65 Export Regulation, Official Gazette  (2006), No.  26109, 6  June, and Export Regime Decree (Council of 
Ministers Decision No.  95/7623 of 22  December  1995).  WT/TPR/S/ 439 • Türkiye  
 
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 sustai ned cooperation. Export registration is required for several goods for monitoring 
purposes  (Box 3.1)66; the customs declarations of these goods are registered by the General 
Secretariat of the relevant exporters association. There was a significant expansi on of the goods 
subject to export registration over the review period, and two categories of good were removed from 
the list.67 
Box 3.1 Goods subject to export registration  
Substances subject to deduction of Support and Price Stabilization Fund premium; substances paid from 
Support and Price Stabilization Fund; exports in the special accounts framework; exports in framework of the 
Türkiye -Russian Federation natural gas agreement; goods for which t rading partners apply quantitative 
restrictions; exports to countries subject to economic sanctions according to UN decisions; goods requiring a 
certificate in the framework of Regulation No.  25841  of 10 June 2005; raw olive oil, finished bulk olive oil an d 
olive oil in barrel; liquorice; raw meerschaum and draft pipe; goods in context of Vienna Convention for the 
Protection of the Ozone Layer to countries which are parties; raw olive in sachet, sack and box; original 
intestine; live sheep, goat hair; pigs;  bulk and kapya type red pepper; raw olive (not completely fermented); 
copper and zinc waste and scrap; white marble, colourful and ribbed marble, onyx, travertine and others; 
cement; gherkins; pine nuts; wheat and meslin, buckwheat and triticale; lentils;  barley and maize; and 
chrome leather.  
Items added over the review period:  poppy seeds (not for sowing); timbers of forest trees, except for the 
ones that are subject to export prohibitions and licensing requirements; printed electronic circuit boards and 
plates in the form of waste or scrap; corn brans; barley brans; wheat brans; rice; rye; melt blown fabric; 
cotton (not carded or combed); cotton scraps; cotton carded or combed; pasta; bulgur wheat; meal of wheat; 
particle board, orientated strand board an d similar boards of wood or other woody materials; fibreboards of 
wood or other woody materials; wood sawn or chipped lengthwise, sliced or split of a thickness exceeding 
6 mm (except for timber that is subject to prohibition); fertilizers; chickpea; sulph uric acid, oleum; pure 
ammonia; sugar; certain wood products (sheets for veneering, for plywood or for similar laminated wood and 
other wood, sawn lengthwise, sliced or peeled ); kaolin and other kaolin clays; other clays; and tomato paste.  
3.69.  Since the Minis try of Trade's launch of a Paperless Customs Project in 2019, all export 
declarations and associated documents must be submitted, processed, and stored online. Export 
documents and licences are obtained through the Single Window System, and export declarat ions 
are submitted and processed through the BILGE system (Section  3.1.1.1). Risk assessment of 
exports for certain agricultural commodities for quality control purposes is undertaken through 
TAREKS (Section  3.1.1.1). In 2018, an Automation System for Cert ificates of Origin and Movement 
Certificates (Medos) was developed for proof of origin and movement certificates to be issued, 
approved, and endorsed electronically.68 As indicated by the authorities, implementation of this 
system has resulted in rapid and  effective completion of these processes by eliminating the need to 
visit authorized bodies and customs authorities physically, and it has facilitated the post -release 
control process, and reduced paperwork.  
3.70.  Türkiye has provisions for the export quality co ntrol of certain agricultural goods pursuant to 
Communiqué No.  2022/21 on Product Safety and Inspection. Exports of certain other products, 
again for commercial quality, are also undertaken under Communiqué No.  2021/22 on Product 
Safety and Inspection.69 Inspection requirements are, inter alia , implemented to promote 
high-quality production, protect the image of Turkish products in world markets, and improve the 
competitiveness of the export products. Inspection fees of TRY  10 are levied.  
 
66 The legislative basis for this requirement is Communiqué 20 06/7 Regarding Goods Subject to Export 
Registration, Official Gazette  (2006) , No. 26190 , 6 June.  
67 Ethyl alcohol, eau de cologne, disinfectant and hydrogen peroxide were added to the Annex list 
in March 2020 and removed from it in May 2020. Additionally, r ecycled paper or cardboard clippings and scraps 
was removed from the list in June 2018 and alumin ium waste and scraps was removed from the list in  2017.  
68 A.TR movement certificates (the customs certificates used in trade between Türkiye and the 
European  Union certifying that goods are in free circulation) and proof of origin documents are issued by 
exporters or their legal representatives. They have to be approved by an authorized body (either the Union of 
Chambers and Stock Exchanges of Türkiye (TOBB), th e Turkish Exporters Assembly (TIM), or the 
Confederation of Turkish Tradesmen and Craftsmen (TESK). Finally they are endorsed by customs authorities.  
69 Ministry of Trade, Product Safety and Quality Control System on Import and Export in Turkey . Viewed 
at: https://www.trade.gov.tr/legislation/product -safety -and-technical -regulation/prod uct-safety -and-quality -
control -system -on-import -export -in-turkey . WT/TPR/S/ 439 • Türkiye  
 
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 3.2.2   Taxes, charges, an d levies  
3.71.  Under the framework of the Support and Price Stabilization Fund, which is used for state aid 
payments for exports such as agricultural refunds (Section  4.2.1), Türkiye levies taxes on certain 
exported products.70 The objective is to increase the value added of exported products. As at 
end-October 2022, export taxes were levied on hazelnuts (USD  0.04/kg); hazelnuts in shell 
(USD  0.08/kg); raw hides and skins; and wet -blue products (raw hides and skins at a rate of 
USD 0.5/kg and wet -blue at a rate of USD  0.5/kg or 20% of the f.o.b. export value depending on 
the HS codes).  
3.72.  VAT is not charged on exports. Exports are exempt from the stamp duty that is applied to 
documents. There are no other duties or charges applied t o exports.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.2.3.1   Export prohibitions  
3.73.  Türkiye's Export Regime Decree (No.  95/7623) stipulates that all goods can be freely exported 
other than those whose exportation is explicitly prohibited by laws, decrees, and international 
agreements. Nevertheless, the Decree also authorizes the Ministry of Trade to impose restrictions 
or prohibitions on exports. Other relevant public authorities are also authorized to make decisions 
regarding the export regime and must obtain the opinion of the Ministry of Trade. Export prohibitions 
notified to the WTO are largely unchanged . They are in place for reasons of environment, health, 
and protection of national treasures, and to comply with Türkiye's commitments under international 
conventions. They are contained in various laws and regulations (Table  A3.3). 
3.74.  In addition, in recent years both the Ministry of Agriculture and Forestry (through a temporary 
authorization to regulate the export of certain agricultural products for food secur ity purposes71) and 
the Ministry of Trade ha ve imposed export bans on certain products, largely to stabilize domestic 
prices of agricultural products. These bans include  the following : 
• An export ban on butter introduced in April 2022 by the Ministry of Agr iculture and 
Forestry. This was followed by the introduction of temporary export permission between 
June and September 2022 with no limitation on the export amount or eligible exporters.  
• A prudential suspension introduced by the Ministry of Trade in March 2022, upon the 
request of the Ministry of Agriculture and Forestry, on the export of imported grains, oil 
seeds, cooking oils, and some other agricultural commodities held in bonded 
warehouses; this suspension was lifted shortly after it was imposed.  
• A temporary ban on the exports of olive oil, beans, and lentils from 26  February  2022 
until end -2022 issued by the Ministry of Agriculture and Forestry. Export restrictions on 
olive oil were removed on 7  July 2022.72 
• A temporary ban on the exports of soyabea n oil, sunflower seed oil, vegetable fats and 
oils, and margarine from 9  March  2022 until end -2022 issued by the Ministry of 
Agriculture and Forestry. Restrictions on soybean oil, vegetable fats and oils, and 
margarine were lifted by 29  August  2022.73 
• A temporary ban on bulk olive oil issued by the Ministry of Agriculture and Forestry 
on 11 March 2021. The ban was lifted on 27  July 2021.  
• A ban on certain forage products issued by the Ministry of Agriculture and Forestry (for 
hay on 23  May 2021 and for alfalfa on 26  August  2020). This is implemented by the 
 
70 Council of Ministers Decision on the Support and Price Stabilization Fund 1 -13/10/1988, 
Official  Gazette  (1988),  No. 19959, 14  October.  
71 Communiqué on Exportation of Certain Agricultural Products 2022/1, Official Gazette  (2022), 
No. 31732, 27  January. As amended by Communiqué 2022/2, Official Gazette  (2022), No.  31768 , 4 March.  
72 WTO Trade Monitoring database. Viewed at: https://tmdb.wto.org/en . 
73 WTO Trade Monitoring database. Viewed at: https://tmdb.wto.org/en . WT/TPR/S/ 439 • Türkiye  
 
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 non-issuance of export licences for an indefinite period; although in theory licences can 
be issued periodically.74 
• A ban on the exports of wheat flour from domestically produced grain imposed by the 
Ministry of Trade in September 2018. The objective was to ensure stability in domestic 
flour prices, protect Turkish consumers, and prevent speculation; it was intended to be 
a temporary measure.75 According to the authorities, there was a short period in 2018 
when a quota was implemented.  
3.2.3.2   Export quotas  
3.75.  Türkiye maintains export quotas on eels and medicinal leeches in accordance with its 
commitments under the CITES Convention . The quotas are adjusted annually by the  General  
Directorate of Fisheries and Aquac ulture within the Ministry of Agriculture and Forestry.76 In 2022, 
the quota for eels was 100,000  kg and for medicinal leeches, 1,500  kg.77 
3.2.3.3   Export licensing  
3.76.  Export licences are still required for 26 categories of goods under various legal/regulatory 
instru ments. Export licensing  requirements apply to all trading partners and most are non -automatic 
(Table  A3.4).  As at the time of Türkiye's previous Review, many are agriculture -related as required 
by the Ministry of Agriculture and Forestry. Developments over  the review period included changes 
to the responsible ministries in some cases and the introduction and removal of non -automatic 
export licensing requirements in 2020 on lemons , onions and potatoes78, personal protective 
equipment79, and certain medical e quipment and devices.80 
3.2.3.3.1   Export support and promotion  
3.77.  Türkiye's Inward Processing Regime allows the import of raw materials and inputs to be 
imported without the payment of customs duties and other taxes if they are used for or incorporated 
into exported pr oducts.81 There remain two kinds of inward processing types: (i)  suspension 
(temporary imports without payment of import duties under a security bond); and (ii)  drawback 
(refund of import duties when products are exported).  
3.78.  The Ministry of Trade and the Tu rkish Exporters Assembly (TIM) continue to pursue the actions 
contained in the Exports Strategy of Türkiye for 2023.82 This aims to support a modern and flexible 
 
74 Global Trade Alert (2020), "Turkey: The Government Issues an Export Ban on Certain Forage 
Products", 27  August. Viewed at: https://www.globaltradealert.org/state -act/60475/turkey -the-government -
issues -an-export -ban-on-certain -forage -products . 
75 Ministry of Trade. Viewed  at: https://www.ticaret.gov.tr/haberler/un -ihracatinda -yapilan -
duzenlemeye -iliskin -basin -aciklamasi . 
76 Communiqué No. 2021/9 on Issuance of CIT ES Licence and Allocation of Annual Export Quota for Eels 
(Anguilla Anguilla). Official Gazette  (2021) No. 31436, 27 March. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021 /03/20210327 -6.htm . Communiqué No.  2021/50 on Issuance of 
CITES Licence and Allocation of Annual Export Quota for Medicinal Leeches. Official Gazette  (2021) No.  31706 , 
31 December. Viewed at: https://www.resmigazete.gov.tr/eskiler/2021/12/20211231 -11.htm . 
77 Ministry of Agriculture and Forestry. Viewed at: 
https://www.tarimorman.gov.tr/BSGM/Duyuru/148/Yilan -Baligi -Ve-Tibbi-Suluk -Icin-2022-Yili-Ihracat -Kotalari -
Belirlenmistir . 
78 Global Trade Alert (2020), "Turkey: Imposition of Permissio n Requirement on Exports of Onions and 
Potatoes", 7 January. Viewed at: https://www.globaltradealert.org/state -act/43037/turkey -imposition -of-
permission -requirement -on-exports -of-onions -and-potatoes . 
79 European Commission, Trade Barriers . Viewed at: https://tra de.ec.europa.eu/access -to-
markets/en/barriers/details?barrier_id=16522&sps=false . 
80 European Commission, Trade Barriers ; and Global Trade Alert (2020),  "Turkey: Turkish Government 
Introduces Permission Requirement on the Export of Certain Medical Equipment  and Devices", 26  March. 
Viewed at: https:// www.globaltradealert.org/intervention/78867/export -licensing -requirement/turkey -turkish -
government -introduces -permission -requirement -on-the-export -of-certain -medical -equipment -and-devices . 
81 Inward Processing Regime Communiqué No.  2006/12, Official Gazette  (2006), No.  26382, 
20 December.  
82 Ministry of Trade, The Exports Strategy for Türkiye for  2023.  Viewed at: 
https://www.trade.gov.tr/ data/5b90d2eb13b8760beca887fd/2023%20EXPORT%20STRATEGY -
15%20%C5%9Eubat%202022.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 export structure that is based on advanced technology and R&D to respond to the demands of the  
current and future business environment. Some of the goals of the strategy include 
export -orientated growth; diversifying exports by countries and products; prioritizing products based 
on research and development  (R&D) , innovation, high tech , and/or high value -added; enhancing the 
export capacity of SMEs; increasing the number of global Turkish brands in the world; and improving 
the logistics facilities of Türkiye. In addition, the Ministry of Trade prepared an e -Export Strategy 
and Action Plan (2018 -2020)  that contains various strategic aims designed to make e -export easier 
and more accessible for exporters. These include enhancing logistical capacity , enhancing customs 
procedures related to the requirements of cross -border e -commerce , ensuring product sec urity and 
auditing capabilities related to cross -border e -commerce , enhancing the competitiveness of domestic 
firms carrying out e -commerce activities , ensuring that micro entrepreneurs develop into 
e-exporters , and participating in international collabora tions aimed at enhancing e -export 
activities.83 
3.79.  The Ministry of Trade continues to offer services to help exporters. New initiatives taken over 
the review period include the launch of an "Easy Export Platform" that provides intelligence to 
exporters on mar ket opportunities and export processes and other services84, and incentives under 
Presidential Decision No. 5986 on e -export supports including for B2C marketplace promotion and 
fulfilment services.85 In addition, the Ministry is developing a Türkiye E -export Platform that will help 
existing exporters switch to the digital environment and help make Turkish exporters easily 
accessible to importers abroad.86 
3.80.  Other support programmes provided by the Minis try of Trade, either on its own or in 
conjunction with the exporters' unions, in place at the time of Türkiye's  previous Review are: 
(i) support to companies and producers/manufacturers organizations to participate in fairs abroad 
with support ranging betw een 50% and 75% of the approximate total cost; (ii)  support for 
companies in the certification process relating to foreign market access certificates to ensure 
compliance with technical legislation regarding the environment, quality, and human health, and 
support for companies' licensing and registration costs in the medical sector (50% of expenses); 
(iii) overseas store, brand, and promotion support for companies operating units in foreign countries 
for marketing products produced in Türkiye (50% of advert ising costs; 40% -50% of rent of 
companies operating a store abroad and 50% of fees for the registration of trademarks; (iv)  market 
research and market access support to increase market share in traditional markets (50% of foreign 
market research trips; 50%  of costs for buying market research reports; 50% of costs for financial 
and legal due diligence costs for mergers and acquisitions as well as for the acquisitions of brands 
abroad; and 50% of costs for participating in sectoral trade missions abroad and i n procurement 
committee programs); (v)  support for needs analysis, training/consulting and promotional activities 
to improve international competitiveness through clustering (75% of project -based common 
activities organized by cooperation organizations); ( vi) promotion of designer companies 
abroad  (50% of consultancy fees, rental fees, advertising costs, and certification expenses, and for 
the registration of trademarks); and (vii) support to encourage technical consultancy companies to 
operate abroad (at l east 50% of rental fees; advertising; market research projects; and participation 
fees for fairs, conferences, exhibitions, training programmes, and professional competitions); and 
the TURQUALITY programmes (see below).  
3.81.  With respect to supporting Turkish s ervices exports, the Ministry of Trade continues to provide 
support through its Foreign Exchange Earning Support for Trade in Services programme 
 
83 Official Gazette  (2018), No.  30324, 6 February; and Mondaq (2018), "Turkey: E -Export Strategy and 
Action Plan of the Ministry of Trade (2018 -2020) Is Published in the Official Gazette", 24 October. Viewed at: 
https://www.mondaq.com/turkey/international -trade -investment/740302/e -export -strategy -and-action -plan-
of-the-ministry -of-trade -2018-2020-is-published -in-the-official -gazette . 
84 In the first phase of the project, an AI -enabled Smart Export Robot was developed to provide 
alternative market options to potential exporters. In the second phase, the project incorporated several 
additional modules including the "AskTürkiye" service ( www.askturkiye.com ), which brings exporters together 
with potential buyers; buyers information; training; and a smart chatbot. According to the authorities , the 
platform has been visited more than 2.6 million times since August 2020.  
85 Presidential Decision No.  5986 on e-export supports. Official Gazette  (2022), No.  31934 , 25 August. 
Viewed at: https://www.resmigazete.gov.tr/eskiler/2022/08/20220825 -16.pdf ; and Esin Attorney Partnership. 
Viewed at: https://www.esin.av.tr/2022/09/08/new -decree -on-electronic -export -incentives/ . 
86 Ministry of Trade. Viewed at: https://www.ticaret.gov.tr/haberler/ihracat -desteklerine -yonelik -
prefinansman -modeli -hayata -geciriliyor . WT/TPR/S/ 439 • Türkiye  
 
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 first implemented in 2012; the programme was updated in 2022.87 State support is provided for 
health and sports  services , informatics , film-TV series and cultural services , education , management 
consultancy , green services , publishing , organization of fairs , logistics , gastronomy , accommodation , 
and other business services. Successful applicants are eligible for th e State to cover  50%-70% of a 
company's market -access -related expenses, office rent, office set -up costs, certification, advertising 
and marketing activities, fair organizations, and various expenses  (participation in national and 
international events and trade committees as well as staffing and reporting costs). The maximum 
amount of support and the number of years a company is supported depend on the type of expense 
and the sector.  
3.82.  In addition, the Ministry of Trade and TIM are responsible for implementin g TURQUALITY, the 
country's national branding programme designed to facilitate and support Turkish brands in 
international markets, through funding provided through two  main support programmes: "Marka" 
and "TURQUALITY®". Successful applicants are eligible for the State to cover 50% of a company's 
development roadmap, and 50% of the following expenses: patents, promotional materials, office 
rent, office set -up costs, certification, showcase and showroom rent, franchise fees, consulting fees, 
and staffing cos ts. The maximum amount of support and the number of years that a company is 
supported depend on the type of expense and the programme. As at mid -October 2022, there 
were 32 brands, with 303 companies participating.  
3.83.  The chambers of commerce, the Foreign Eco nomic Relations Board of Türkiye (DEIK), and 
the TIM also continue to play a pivotal role in supporting and promoting Turkish exports. Initiatives 
taken over the review period included the launch by TIM of a Türkiye Logistics Portal in 2021 , which 
provides  a data link between exporters and freight companies, facilitating  transactions between the 
two; the implementation of an "Export Radar" service ( https://www.ihracatpusulasi.org.tr ), which 
provides exporte rs with a database for finding target markets; and the launch of a telephone hotline 
called "ALO" through which TIM can respond to questions from its members regarding foreign trade.  
3.84.  Türkiye continues to provide export subsidies for certain agricultural pr oducts (Section  4.2.1).  
3.2.4   Export finance, insurance, and guarantees  
3.85.  The Türk Eximbank is a state -owned bank and the sole official provider of export credit in the 
country. Its clients are Turkish exporters, Turkish contractors and investors operating abroad , as 
well as international transport and tourism companies resident in Türkiye. In 2021, it supported 
14,092  exporting companies, providing USD  22.5 billion in credit and USD  23.6 billion in 
insurance/reinsurance.88 Its objectives are to increase the volume  of exports; diversify export goods 
and services; develop new export markets; increase the exporters' share of international trade and 
provide necessary support for their initiatives; gain competitiveness and bring assurance to 
exporters, overseas contract ors, and investors on international markets; and promote and support 
the production and sale of investment goods for export through overseas investments. Over the 
review period, the Government boosted Türk Eximbank's paid -up capital through cash transfers from 
the MoTF.89 Some long -term funds Türk Eximbank uses from international financial institutions (IFI) 
or uses under IFI guarantees are guaranteed or counter -guaranteed by the MoTF. As of 
30 September  2022, the balance of guaranteed transactions was USD  1.2 billion and the balance of 
counter -guaranteed transactions was EUR  250 million.  
3.86.  As indicated in Türkiye's previous Review, Türk Eximbank has three main areas of operation, 
providing: (i)  short-, medium -, and long -term cash and non -cash credits; (ii)  international 
loans/guarantees for the financing of exports or overseas projects of Turkish companies; and 
(iii) export credit insurance to protect against commercial and political risks (Table  3.17). A detailed 
 
87 Presidential Decision on Defining, Classifying, and Supporting the Export of Services. Official Gazette  
(2022), No.  31815 , 20 April. Viewed at: https://www.resmigazete.gov.tr/eskiler/2022/04/20220420 -10.pdf . 
88 Türk Eximbank (2022), Annual Report 2021 . Viewed at: https://www.eximbank.gov.tr/interaktif -
faaliyet -raporlari/2021/files/en -eximbank.pdf . 
89 In 2018, Türk Eximbank's paid -up capital was raised from TRY 4.8 billion to TRY 6.35 billion with a 
cash capital transfer of TRY 1 billion by the MoTF. In 2020, the cap ital was raised from TRY 7.16 billion 
to TRY 9.27 billion, with a transfer of TRY 750 million by the Ministry. In 2021, the capital was raised 
from TRY 9.27 billion to TRY 10.8 billion, with a transfer of TRY 100 million from the Ministry. The latest 
transfer (of  TRY 3.0 billion) was in February 2022.  WT/TPR/S/ 439 • Türkiye  
 
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 description of the specific facilities provided under each of these areas of operation was notified to 
the WTO  Committee on Subsidies and Countervailing Measures.90 
Table  3.17 Türk Eximbank overview, credits, loans, and export credit insurance, 2016 -21 
 2016  2017  2018  2019 2020  2021  
Total financial support (USD  billion)  33.5 39.5 44.5 44.2 45.7 46.0 
As a percentage of Türkiye's exports  (%) 23.1 25.0 26.3 24.4 26.9 20.4 
Total assets (USD  billion)  19.4 22.6 26.4 27.4 27.8 24.4 
Credits (short -, medium -, and long -term 
domestic credits) (USD  billion)  22.0 24.1 27.3 26.7 28.5 22.5 
International loans (USD  billion)  0.6 0.2 0.3 0.1 0.0 0.0 
Short -term export credit insurance 
(USD  billion)  11.0 15.0 16.7 17.3 17.1 23.5 
Medium - and long -term export credit 
insurance (USD billion)  0.1 0.2 0.2 0.2 0.0 0.0 
Source:  Information provided by Türk Eximbank.  
3.87.  According to the authorities, Türk Eximbank 's interest rates differ on a programme basis, but 
they are broadly in line with market rates. They indicate that the Bank may have a different risk 
appetite compared to private lenders, especially in times of economic turmoil, as seen during 
the COVID -19 pandemic. It can also offer customers niche products addressing their specific needs 
and provide finance with longer tenors  than the private sector, while remaining in line with the 
OECD  Arrangement on Officially Supported Export Credits.  
3.88.  During the review period, Türk Eximbank successively lowered lending rates for SMEs and 
exporters of high -tech products from 15.19% in Augus t 2019 to 7.95% in November 2019 in order 
to strengthen their competitiveness.91 An export credit scheme for young entrepreneurs was 
launched in May 2019 together with Turk Is Bank, with preferential interest rates for eligible 
companies.92 The bank also l aunched an initiative in March 2019 to give loans through partner banks 
at preferential rates to female entrepreneurs; this initiative was expanded in May 2019 to include 
more partner banks and increased resources.93 
3.89.  Other facilities introduced by Türk Exi mbank over the review period, which have been notified 
to the WTO, were a Credit for Leasing Companies (put into effect in 2019), a Credit Program Based 
on the Insured Export Receivables (2020), a Participation Finance Investment Loan (2020), and a 
Letter of Guarantee Programme (2020).94 
3.90.  In October 2021, the Export Development Corporation (IGE AS) was established, and 
in March  2022 it started operations.95 It is owned by  TIM (6%), Türk Eximbank (5%), exporters 
associations (68%), and banks (20%). It was developed to address the challenges certain 
small -scale exporters had in meeting their financing needs due to lack of collateral or capital. IGE  AS 
has an e quity backed guarantee system , and so is able to provide guarantees to beneficiaries 
through its own resources. This, in turn, this enables Türk Eximbank to provide credit to these 
exporters.  
 
90 WTO document G/SCM/N/372/TUR, 21  December  2021.  
91 Global Trade Alert, Turkey . Viewed at: https://www.globaltradealert.org/country/213 . 
92 Global Tr ade Alert (2019), "Turkey: Incentives for Young Entrepreneurs from Turk Eximbank", 3  May. 
Viewed at: https://www. globaltradealert.org/intervention/72027/trade -finance/turkey -incentives -for-young -
entrepreneurs -from-turk-eximbank . 
93 Global Trade Alert (2019), "Turkey: Turk Eximbank Provides Export Finance to Companies Owned by 
Women", 8  March. Viewed at: https://www.globaltradealert.org/intervention/72018/export -subsidy/turkey -
turk-eximbank -provides -export -finance -to-companies -owned -by-women . 
94 WTO document G/SCM/N/372/TUR, 21  December  2021. The Letter of Guarantee Programme is not 
mentioned in the former notification . 
95 IGE AS. Viewed at: https://ihracatigelistirme.c om.tr/ . WT/TPR/S/ 439 • Türkiye  
 
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 3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.3.1.1   Introduction  
3.91.  As of October 2022, Türkiye's legal framework on the control of state aid was still not 
operational. While Law No.  6015 on the Monitoring and Control of State Aid officially entered into 
force in  201096, the secondary legislation required for it to be effe ctive has not yet been enacted. 
Law No.  6015 sets out provisions on state aid as well as the procedures and principles for monitoring 
such support. The Law does not apply to state aid in the agricultural, fishery, and services sectors.97 
3.92.  State aid/incentives to Turkish businesses are covered in various parts of this report. 
Investment incentives are set out in Section  2.4.3. Support to exporters provided by the Ministry of 
Trade, either alone or together with exporters unions/other entities , is covered in Section  3.2.4.2. 
Export subsidies to agriculture (including some processed agricultural and fish products) are set out 
in Section  4.2.1, and tourism -related incentives are covered in Section  4.3.5 and as such are not 
repeated here. In addition, a range of incentives are also provided by the Scientific and Technological 
Research Institution of Türkiye (TÜBITAK) for innovation, and R&D activities, and by the Turkish 
Small and Medium Enterprises Development and Support Administration (KOSGEB) to sup port SMEs 
(Sections 3.3.1.2 and 3.3.1.3).  
3.3.1.2   TÜBITAK support schemes  
3.93.  TÜBITAK is the government agency charged with supporting the national science, technology, 
and innovation ecosystem; developing high value -added products and services with science -based 
technology; and ensuring the production of qualified knowledge and the development of qualified 
human resources for these purposes.98 It falls under the overall responsibility of the Ministry of 
Industry and Technology. In 2022, it had an estimated budget of T RY 7,801,512,445 
(TRY 8,806,446,045 at fixed prices) , of which around 52% was provided in grants to support R&D 
and innovation -related activities. In 2016, a Technology Transfer Office within TÜBITAK was created; 
it aims to protect the intellectual propert y rights of the institution, determine their commercialization 
processes , and manage the associated transfer processes.  
3.94.  Over the review period, changes to TÜBITAK schemes included the launch or entry into 
operation of various grant facilities, namely: (i)  the Artificial Intelligence (AI) Ecosystem call for 
grants, in 2022; (ii)  the Tech -InvesTR Venture Capital Support Programme, in 2021; (iii)  the SME 
Support Call for Order -based R&D Projects, in 2020; (iv)  the Industrial Innovation Networks 
Mechanism (SAYE M) Call in 2018; and (v)  grants under the Patent -based Technology Transfer 
Support Call, in 2020. In addition, thresholds for grant support have been expanded under the 
Industrial R&D Projects Grant Programme (from 60% to 75% of eligible expenses); the R&D  Project 
Brokerage Events Grant Programme for events with at least one international participant (from 
TRY 40,000 to TRY  100,000); and the Entrepreneur Support Programme (initial seed capital 
increased from TRY  150,000 to 200,000 in 2018 and from TRY  200,0 00 to TRY  450,000 in 2022) 
and SME R&D Start -up Support Programme (increased from TRY  600,000 to TRY  1,200,000) 
(Table  3.18). 
 
96 Law No.  6015, Official Gazette  (2010), No.  27738, 23  October.  
97 The text of this law was viewed at: 
https://www.invest.gov.tr/en/library/publications/lists/investpublications/public -private -partnerships -qa-and-
legislation -in-turkiye.pdf . 
98 TÜBITAK. Viewed at: https://www.tubitak.gov.tr/tr/kurumsal/hakkimizda/icerik -biz-kimiz . WT/TPR/S/ 439 • Türkiye  
 
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 Table 3.18 Key features of TÜBITAK support schemes  
Programme  Aim and beneficiaries  Support  
Industrial R&D 
Projects Grant 
Programme  Support project -based research -technology 
development and innovation activities of 
SMEs; support entrepreneurship and 
university –industry cooperation; and increase 
research -technology capability, innovative 
culture, and competitiveness.  
Eligible beneficiaries: SMEs residing in 
Türkiye.  Grant support for R&D projects to produce a new product, 
develop and improve an existing product, raise the product 
quality or standa rd, or develop new techniques and new 
technologies that reduce costs. Provision of  75% of eligible 
project expenses (personnel, travel, equipment, software 
and publication purchases, materials and consumables, 
domestic and international consultancy service s and other 
service procurements, and R&D service expenses incurred 
by R&D institutions).  
Grant amount: 2018: TRY  602,488,713; 2019: 
TRY 574,660,527; 2020: TRY  553,379,359; 2021: 
TRY 688,316,423; 2022 -October: TRY 330,116,735  
R&D Project 
Brokerage 
Events Grant 
Programme  Bring together universities, research 
institutions, and industrial establishments to 
share new project ideas and collaborations in 
national or international R&D Project 
Brokerage Events.  
Eligible beneficiaries: universities, industry 
chambe rs, chambers of commerce, chambers 
of commerce and industry, and exporters 
associations.  Grant support. The upper limit is TRY  70,000 for events 
with all national participants and TRY  100,000 for events 
with at least one international participant.  
Grant amount: 2018: TRY  1,520,679; 2019: 
TRY 1,395,611; 2020: TRY  249,264; 2021: TRY 142,794; 
2022-October: TRY 418,780.  
University –
Industry 
Collaboration 
Support 
Programme  Contribute to the production, dissemination, 
and commercialization of  knowledge and 
technology generated by universities/public 
research centres and institutes by transferring 
such knowledge or technology to firms based 
in Türkiye as products or processes.  
Eligible beneficiaries: universities/public 
research centres and ins titutes, and private 
sector companies.  Grant support. TUBITAK funds 60% of the project budget 
for large firms and 75% for SMEs. In addition to the project 
budget a TRY  288,000 maximum project incentive prize is 
also paid to researchers.  
Grant amount: 2018: TRY  17,867.180; 2019: 
TRY 16,220,365; 2020: TRY  16,561,754; 2021: 
TRY 13,308,815; 2022 -October: TRY 17,048,719 . 
SME R&D Start -
up Support 
Programme  Increase the research ‐technology 
development capability, innovation culture, 
and competitivene ss of SMEs.  
Eligible beneficiaries: SMEs.  Grant support to carry out R&D and innovation projects 
with high added value. Seventy -five percent of eligible 
expenditures are reimbursed by TÜBİTAK. Eligible expenses 
are personnel, travel, equipment, software an d publication 
purchases, materials and consumables, domestic and 
international consultancy services and other service 
procurements, and R&D service expenses incurred by R&D 
institutions.  
Grant amount: 2018: TRY 255,495,454; 2019: 
TRY 207,231,879; 2020: TRY  118,240,541; 2021: 
TRY 116,489,336; 2022 -October: TRY 65,108,179 . 
International 
Industrial R&D 
Projects Grant 
Programme  Support international collaborative R&D 
projects submitted to Eureka. Aims to 
increase companies' technical quality and 
knowledge; improve their access to 
technological knowledge at the international 
level; help them with technology transfer 
processes; and contribute to the participation 
of Turkish companies in international markets.  
Eligible beneficiaries: Turkish equity 
companies that conduct R&D activities.  Grant support for R&D projects costs.  SMEs are eligible for 
75% of a project's approved expenses, and large 
enterprises 60%. Supported expenses are personnel, 
travel, tools, equipment, software and publications, 
materi al and supplies, domestic and abroad consulting, and 
other R&D services.  
Grant amount: 2018: TRY  79,207,811; 2019: 
TRY 75,284,876; 2020: TRY  64,503,247; 2021: 
TRY 67,718,605; 2022 -October: TRY 31,030,280 . 
Eureka – 
Eurostars  Support innovative SMEs to incre ase their 
innovation capacity and productivity and 
access global value chains and new markets 
through support to international R&D projects 
carried out between at least one Turkish 
entity and at least one entity from a Eurostars 
member country.  
Eligible beneficiaries: capital companies 
(SMEs and large enterprises), higher 
education institutions, public research centres 
and institutes, training and research hospitals, 
and research institutions.  Grant support by TUBITAK for R&D project costs (60% f or 
large-scale companies, 75% for SMEs, and 100% for the 
others). Cofunding from European Commission. Supported 
expenses for companies are personnel, travel, tools, 
equipment, software and publications, material and 
supplies, domestic and abroad consulting , and other R&D 
services and overhead. Supported expenses for higher 
education institutions, public research centres and 
institutes, training and research hospitals, and research 
institutions are personnel, travel, institution share, tools, 
equipment, soft ware and publications, material and 
supplies , domestic and abroad consulting and other R&D 
services  and project promotion prize.  
Grant amount: 2022 -October: TRY 908,000.  WT/TPR/S/ 439 • Türkiye  
 
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 Programme  Aim and beneficiaries  Support  
Entrepreneur 
Support 
Programme  (i) Encourage techno -entrepreneurship sprit; 
(ii) establish start -up companies that are 
internationally competitive, innovative, and 
capable of developing high -tech products and 
services; and (iii)  increase the survival rate of 
technology -based new firms by providing seed 
capital, mentorship, and relevant bus iness 
courses.  
Eligible beneficiaries: entrepreneurs who 
engage in technology and innovation -oriented 
initiative activities, with the required 
qualifications.  Grant of maximum TRY  450,000 seed capital by TUBITAK, 
following a first stage vetting/screening process undertaken 
by business accelerators (mostly Technology Transfer 
Offices (TTOs) ) that also help entrepreneurs in business 
idea development and testing and with preparing the 
business plan to be sent to TUBITAK in accordance with the 
grant call.  
 
Grant amount: 2018: TRY  94,465,435; 2019: 
TRY 44,342,743; 2020: TRY  70,509,327; 2021: 
TRY 44,880,193; 2022 -October: TRY 45,050,081.  
Technology 
Transfer Offices 
Support 
Programme  Promote commercialization of academic 
resear ch results; help universities benefit 
from support mechanisms; and promote 
academic entrepreneurship by improving the 
effectiveness of the TTOs as an interface.  
Eligible beneficiaries: TTOs resident in 
Türkiye, operating in universities or 
techno  parks.  Annual grant. The amount is determined according to the 
annual performance of supported TTOs. They are tracked 
by performance indicators determined by the programme's 
executive board. The performance score varies between 
40% and 80%; hence TTOs receive a min imum of 40% 
grant support towards their operating budgets.  
Grant amount: 2018: TRY  32,674,244; 2019: 
TRY 30,626,302; 2020: TRY  27,610,431; 2021: 
TRY 17,635,962; 2022 -October: TRY 11,863,851.  
Tech-InvesTR 
Venture Capital 
(VC) Support 
Programme  (i) Support early -stage technology -based 
firms; (ii)  help commercialize R&D and 
innovation products of early stage technology -
based enterprises; (iii)  help create a VC 
ecosystem to support early stage technology -
based initiatives; and (iv)  provide experien ce 
and resources in VC in TTOs, Technology 
Development Zones (TDZs), and qualified 
Research Infrastructures ( rIs). 
Eligible beneficiaries: (i)  TTOs, TDZs, and rIs; 
and (ii)  early stage technology -based SMEs 
operational for at least 10 years and that 
have r eceived support from the public 
institutions and organizations for R&D and 
innovation projects.  Technology Development Zones (TDZs), Technology 
Transfer Offices (TTOs) and Research Infrastructures ( rIs) 
participate as limited partners (LP) of venture capit al funds 
managed by independently and focused on technology. 
TÜBİTAK supports 50% of TTO/TDZ/RI's contribution to VC 
funds in the form of grants for investments in early -stage 
technology -based companies located in Türkiye. In 
addition, 10% of the grant sup port is provided as overhead 
support.  
Grant amount: 2021 (first year of operation); 
TRY 3,206,173; 2022 -October: TRY 1,701,112.  
Frontier R&D 
Laboratory 
Support 
Programme  Enhance the research qualifications of Turkish 
scientists and ensure that Türkiye becomes a 
global attraction centre in certain scientific 
and technological areas.  
Eligible beneficiaries: Domestic and foreign 
companies/laboratories' R&D expenses in any 
year in last three years must have been at 
least TRY 15 million.  Grant suppor t for personnel costs, consultancy and training 
costs; and general operating costs.  
Grant amount: 2018: TRY  1,384,001; 2019: 
TRY 2,222,983; 2020: TRY  2,073,641; 2021: 
TRY 15,166,980; 2022 -October: TRY 11,080,047.  
Capacity 
Building for 
Innovation & 
Entrepr eneur -
ship (I&E) 
Grant 
Programme  Support firms, universities, and NGOs to have 
new mechanisms for mentorship, training, 
brokerage events, investor readiness 
programmes, fundraising events, etc.  
Eligible beneficiaries: TTOs of universities, 
trusts, and capital companies.  Grant support determined by calls. In 2022, two calls were 
planned (see below). Unless stated in the call, maximum 
duration of a project is three years.  
(i) Mentor Interface (BIGG +) Call: grant of 100% of costs 
of expenses, service purc hases, and general expenses; and  
(ii) Entrepreneur Support Program (B IGG). B IGG Mediators 
prize is paid per entrepreneur supported if entrepreneurs 
are supported by TUBITAK.  
Grant amount: 2018: TRY  30,699,010; 2019: 
TRY 28,247,260; 2020: TRY  12,280,515; 20 21: 
TRY 11,076,845; 2022 -October: TRY 5,863,887 .  
Patent Support 
Programme  Increase the number of national and 
international patent applications from Türkiye.  
Eligible beneficiaries: Turkish citizens, 
resident companies, universities, public 
institutions, and organizations.  Grant support under three schemes:  
International Patent Application Support: grant support for 
WIPO application and research fee (fee is fully paid if 
applicants use TürkPatent as the international search 
authority and half the fee is paid in other cases).  
International Patent Examination Report Support: grant 
support for fees for patent application examination reports 
previously supported by the International Patent 
Application Support scheme.  
International Patent Grant  Prize: prize paid to patent 
applications that took the International Examination Report 
support if patents are granted.  
Grant amount: 2018: TRY  35,641,282; 2019: 
TRY 3,226,739; 2020: TRY  663,234; 2021: TRY 647,866  
2022-October: TRY 17,094,491 . WT/TPR/S/ 439 • Türkiye  
 
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 Programme  Aim and beneficiaries  Support  
Patent -based 
Technology 
Transfer 
Support Call  Support the transfer and commercialization of 
patented technologies developed by higher 
education councils, rIs, public enterprises, 
public research centres and institutes, and 
early-stage technology companies, because o f 
scientific R&D and innovation activities to the 
capital companies located in Türkiye by 
licensing or assignment methods.  
Eligible beneficiaries: capital companies 
located in Türkiye with a technology provider 
partner.  Grant support under three schemes:  
(i) Establishment support: maximum TRY  4,000,000 for 
licence/assignment fees and training and consultancy 
support.  
(ii) Licence/assignment support: Up to 25% of total 
budget, with the following additions: 15% if the client is a 
SME; 15% if the pat ent is high technology; 10% in the 
case of registration of patent in the European Patent Office 
(EPO), the United  States Patent Office (USPTO), the Japan 
Patent Office (JPO), the China National Intellectual Property 
Administration (CNIPA, formerly the Stat e Intellectual 
Property Office (SIPO)), or the Korean Intellectual Property 
Office (KIPO); and 10% if there is a bundle of patents in 
the licence agreement The licence/assignment fees are 
supported.  
(iii) Training and consultancy support: 75% for SMEs and 
60% for large companies  
Grant amount: 2022 -October: TRY 630,449 . 
SME Support 
Call for Order -
based R&D 
Projects  Direct SME R&D activities to areas that have a 
higher possibility of commercialization; 
reinforce cooperation of industrial 
organizations for R& D; transfer project 
management knowledge to SMEs; encourage 
public and private funding for R&D; and 
support emergence of spin -offs. 
Eligible beneficiaries: SMEs residing in 
Türkiye; in the project application, at least 
two enterprises (one client and one s upplier 
organization) should come together for the 
purpose s of project development 
through  R&D. Grant support contributes to the project's R&D costs. 
Covers 40% of the project expenses (or 50% if the supplier 
is an entrepreneur organization that has previo usly 
received support from BIGG). Supported expenses include 
personnel expenses; travel expenses; machinery, 
equipment, software, and hardware materials; material 
expenses; consulting and other services procurements; and 
overhead (only for BIGG suppliers).  
Grant amount: 2021: TRY 4,188,579; 2022 -October: 
TRY 9,478,318.  
Industrial 
Innovation 
Networks 
Mechanism 
(SAYEM) Call  Develop networks between private sector 
firms, end  users, TDZs, and public research 
institutes and universities within the 
framework of the SAYEM funding mechanism, 
to encourage co -creation of high value -added 
products and technologies for the market.  
Eligible beneficiaries: Universities/public 
research centres and institutes, and private 
sector companies . Grant support for im plementing the R&D and innovation 
activities in two phases: (i)  establishing models of 
cooperation and networks based on a 
"product/commercialization roadmap"; and 
(ii) implementing the R&D activities in the roadmap. 
Support covers personnel; travel; consu ltancy; publication; 
meeting, publicity, and organization; and material and 
instruments, and expenses.  
Grant amount: 2020: TRY 1,778,774; 2021: TRY  567,538; 
2022-October: TRY 18,858,150  
Artificial 
Intelligence (AI) 
Ecosystem Call  Assist companies needing AI solutions to form 
consortiums with partner providers (at least 
one company as technology provider, at least 
one university research laboratory/centre or 
public research centre/institute experienced in 
this field, and TÜBİTAK Artificial Intellige nce 
Institute).  
Eligible beneficiaries: companies needing AI 
solutions and university research 
laboratories/centres or public research 
centres/institutes.  Grant support. For SMEs, 70% of eligible project expenses 
of technology provider; 60% for non -SMEs; a nd 100% for 
university research laboratory/centres or public research 
centres/institutes. Supported expenses include personnel; 
travel; machinery, equipment, software, and hardware 
purchase; materials; and consulting and other service 
procurements. Twenty percent of micro -scale SMEs' 
overheads (i.e. Support personnel to carry out supported 
activities, electricity, water, heating, maintenance -repair, 
communication, rent, stationery, consumables, furnishings 
etc. expenses) are covered . 
2022 October: TRY 0 . 
Center of 
Excellence 
Support 
Programme  Encourage specialized rIs to become R&D 
hubs in critical technology areas.  
Eligible beneficiaries: accredited research 
centres established through public funds, 
research centres of "Research Universities", 
public R&D units and private sector R&D/ 
design centres. At least five enterprises 
should come together.  Grant support towards research programme budget (covers 
machinery, equipment, software support, staff salary 
support, and consumable mat erials). Budget support for 
universities, rIs, and public institutions is 100%. For the 
private sector, budget support is 75% -60%, depending on 
whether the beneficiary is small -scale or large -scale.  
Grant support: 2018: TRY 2,660,732; 2019: TRY 0; 2020: 
TRY 49,815,486; 2021: TRY 235,712,944; 2022 October 
TRY: 85,921,459 . 
Note:  Grant amount is given at fixed prices for 2022.  
Source:  WTO document G/SCM/N/372/TUR, 21  December  2021; TÜBITAK. Viewed at: 
https://www.tubitak.gov.tr/tr/destekler/sanayi/ulusal -destek -programlari ; and information and 
updat ed figures provided by the authorities.  
3.3.1.3   KOSGEB support schemes  
3.95.  KOSGEB is a Turkish state -owned organization, established in 1990, that aims to increase 
SMEs' share in the economy and help them develop their businesses. SMEs are eligible to benefit 
from KOS GEB's  programmes if they employ fewer than 250 staff and have either an annual net sales 
revenue or balance sheet total of maximum TRY  250 million (increased from TRY  125 million in  2018 
and TRY 40 million in 2012).  KOSGEB's activities follow the objective s set in its Strategic WT/TPR/S/ 439 • Türkiye  
 
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 Plan (2019 -23). These include: (i)  increasing R&D, and innovation activities and ensuring that high 
technology is spread to the base through domestic and national SMEs; (ii)  establishing successful 
businesses and disseminating entrep reneurship, with a focus on high -tech and manufacturing; and 
(iii) developing/encouraging SMEs' production and management skills, collaboration capacity, 
productivity, exports, institutionalization, and branding.  In 2022, KOSGEB had an estimated budget 
of TRY 10,374.2  million, of which around 89 .8% was provided in support programs for SMEs. Out of 
KOSGEB 2022 revised budget, TRY 1,314,500,000 was provided in grant supports, TRY  324,162,000 
in reimbursed supports, TRY 167,557,000 in loan interest support , and TRY  7,510,060,000 through 
the Rapid Support Program for Micro and Small Enterprises.  
3.96.  KOSGEB's support programmes fall under five overarching programmes as well as the 
COVID -19-related Rapid Support Program for Micro and Small Enterprises (Table  3.19). Eligible 
beneficiaries of these schemes are SMEs registered and active with KOSGEB. As indicated by the 
authorities, while supports are available to all SMES, the manufacturing sector is the main beneficiary 
in practice. Key changes introduced to KOSGEB sche mes since  January  2016 have included: (i)  the 
implementation of the Green Transformation Support Program in 2022 under the SME Development 
Support Programme; (ii) revisions to the ISGEM/TEKMER programme in 2019;  (iii) the launch of the 
Traditional and Advanced Entrepreneur Support Programmes in 2019;  (iv) expansion of the SME 
Development Support Program me from 2019 to SMEs which are both technology suppliers and users 
of smart digital technologies;  (v) the launch of the SME Finance Suppo rt Programme in 2018; 
(vi) the launch of the Vegetables and Fruits Cold Chain Leasing Support Programme in 2018; and 
(vii) the implementation of the Strategic Product Support Programme in 2017.  
Table  3.19 Key features of KOSGEB support schemes, 2022  
Programme  Aims  Support  
1. Entrepreneurship support  
Traditional Entrepreneur 
Support Programme  Increase the survival rate of new 
businesses established by entrepreneurs.  Grant support for establishment, performance, and 
certification.  
Value of support: 2019: TRY  19,987,090; 
2020:  TRY 76,986,125; 2021: TRY 146,396,905; 
2022: TRY 154,697,305 . 
Advanced Entrepreneur 
Support Programme  Increase the survival rate of new 
businesses established by entrepreneurs 
which are in sectors determined in line 
with national strategic priorities.  Grant support for establishment; performance; 
certification; mentoring, consulting, and business 
coaching; and purchase  of machinery equipment and 
software.  
Value of support: 2019: TRY  226,249,000; 
2020:  TRY 476,112,507. Data not available for 2021 
and 2022.  
2. R&D and technological production supports  
R&D, Product 
Development and 
Innovation Support 
Programmea Support SMEs/entrepreneurs to develop 
new products, processes, information, 
and/or services.  Grant and reimbursable loan.  
Value of support: 2021: TRY 14,235,648.75; 2022: 
TRY 112,985,096.88.  
R&D, Innovation and Industrial Implementation 
Programme 2018: TRY  68,098,587.59; 2019: 
TRY 85,987,038.54; 2020: TRY 83,144,697.39; 
2021: TRY 97,493,906.25; 2022: 43,492,434.31.  
SME Technological 
Product Investment 
Support Programme  Support the production and 
commercialization of products resulting 
from R&D/ innovation activities and 
contribute to the current account to 
support the investments to be made by 
domestic enterprises . Grant and reimbursable loan.  
Value of support: 2018: TRY  1,955.40; 
2019:  TRY 86,418,246.98; 2020: 
TRY 152,984,168.23; 2021: TRY 100,86 0,890.21; 
2022: TRY 36,363,534.64 . 
Strategic Product Support 
Programme  Support investments for products in 
medium -high-technology and 
high-technology industries that have 
critical importance and high future 
potential for Türkiye. The Programme is 
linked w ith the Ministry of Industry and 
Technology's Technology -Orientated 
Industry Movement Programme.  Grant and reimbursable loan.  
Value of support: 2018: TRY 1,341,169.19; 2019: 
TRY 129,922,980.60; 2020: TRY 77,442,927.10; 
2021: TRY 41,688,092.68; 2022: TRY 9, 521,530.83.  
3. Enterprise development, growth and internationalization supports  
Cooperation Support 
Programme  Enhance co -work culture between SMEs 
and/or between SMEs and large -sized 
enterprises to: (i)  increase capacity, 
efficiency, product variety, and quality; 
(ii) meet customs/market demands; 
(iii) increase market share and create 
brand image; and (iv)  develop capacity 
and participate in value chains.  Grant and reimbursable loans, with amounts differing 
depending on the cooperation partner ship model 
used.  
Value of support: 2018: TRY  9,488,250; 
2019:  TRY 4,145,471; 2020: TRY  37,005,072. Data 
not available for 2021 and 2022.  WT/TPR/S/ 439 • Türkiye  
 
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 Programme  Aims  Support  
KOBİGEL SME 
Development Support 
Programme  Help increase the shares and activities of 
SMEs in the economy.  Grant and reimbursable loan.  
Value of support: 2018 TRY  257,364,661;  
2019: TRY  495,760,995; 2020: TRY 110,150,149 ; 
2021: TRY 83,597,341.27; 2022 (until 31/10/2022): 
TRY 78,339,853.88 . 
SME Development 
Support Programme  Increase low -capacity SMEs to prepare 
projects  in the sectors KOSGEB supports; 
enable SMEs to produce high -quality 
goods/services; encourage general 
enterprise development activities of 
SMEs; and promote marketing activities 
to expand SMEs' domestic and 
international market shares.  Grant support for b usiness development; 
participation in domestic fairs; overseas business 
trips; employment of qualified staff; design; 
industrial property rights; certification; testing and 
analysis; energy -efficient electric motor replacement; 
independent evaluation; crea ting model factories; 
and technical consulting.  
Value of support: 2018: TRY 311,897; 
2019:  TRY 150,382,370; 2020: TRY 285,951,406; 
2021: TRY 412,024,685; 2022:  TRY 277,673,822.  
International Accelerator 
Support Programme  Support the establishment of an 
international incubation centre and 
participation of companies in acceleration 
programmes to increase exports.  Grant support for a variety of project costs.  
Value of support: 2018: TRY  4,320,409; 
2019:  TRY 3,656,011; 2020: TRY  1,421,143 . 
Foreign Market Support 
Programme  Develop the number and capabilities of 
SMEs to enter foreign markets, and 
participate in e -commerce . Grant support for a variety of business expenses.  
Value of support: 2020: TRY 7,337,882.33; 2021: 
TRY 47,958,488.97; 2022 ( until 31/10/2022): 
53,761,465.55.  
4. SME finance supports  
SME Finance Support 
Programme  Access to finance . Covers expenses incurred by SMEs with respect to 
working capital loans, machinery equipment loans, 
and emergency support loans  taken with banks/other 
financial institutions.  
Vegetables and Fruits 
Cold Chain Leasing 
Support Programme  Reduce vegetable and fruit loss in the cold 
chain process.  Contribution to the leasing interest/profit share costs 
for domestic products and investments in air cooling 
units and frigorific units.  
5. ISGEM/TEKMER (incubators) programmes  
ISGEM /TEKMER 
programme  Supports the establishment and operation 
costs of an incubator that will provide 
incubation services for enterprises that 
will have priority in national plans and 
programmes.  Grant and reimbursable loan for project/business 
expenses.  
Value of support: 2019: TRY 274,400; 2020: 
TRY 95,691; 2021: TRY 2,684,091; and 2022: 
TRY 10,700,979.  
6. Rapid S upport Program for Micro and Small Businesses  
Rapid Support Program 
for Micro and Small 
Businesses  Ensure micro and small enterprises in 
manufacturing and its complementary 
priority sectors and some service and 
trade sectors where COVID -19 impact is 
high, maintain their activities and employ 
new personnel while maintaining previous 
average employment levels.  Interest -free loan of TRY 100,000, with a 24 -month 
grace period for repayments for each new employee 
hired (or TRY 110,000 for each new employee if the 
owner of the b usiness is a woman ), or 51% or more 
of the business is owned by a single female partner, 
or if the hired staff is female. Micro enterprises can 
employ up to two persons and small enterprises, up 
to five. Does not apply to employment of foreign 
nationals.  
a The R&D, Product Development and Innovation Support Programme was implemented as the R&D, 
Innovation and Industrial Application Programme until 2021.  
Source:  WTO document G/SCM/N/372/TUR, 21  December  2021; KOSGEB. Viewed at: 
https://www.kosgeb.gov.tr/site/tr/genel/destekler/3/destekler ; Turkish Union of Chambers and 
Commodity Exchanges. Viewed at: https://www.ytso.org.tr/en/news/quick -support -program -for-
micro -and-small -businesses  and https://osmanbaba.net/en/news/ddc1fd43 -218c-4271-a8f1-
d78ae6fa400b_harran -university/b5c3ff32 -a35d-444f-b8d2-df747a354342_quicksupport -
presentation -to-ito-members ; and information provided by the au thorities . 
3.97.  Over the review period, KOSGEB also digitalized all support processes, implemented a 
monitoring and evaluation system for its support program mes, and established a KOSGEB 
e-Academy to give free -of-charge entrepreneurship trainings. Since 2020, K OSGEB has no longer 
provided laboratory services; these are now provided by the Turkish Standards Institut ion. 
3.3.1.4   WTO notifications on subsidies  
3.98.  In 2021, Türkiye notified its support programmes to the Committee on Subsidies and 
Countervailing Measures.99 This notification lists several of the KOSGEB and TÜBITAK schemes 
contained in Tables 3.1 8 and 3. 19, together with details on Türk Eximbank's facilities, export 
subsidies for agricultural products, and support to the fisheries and maritime transport sectors.  
 
99 WTO document G/SCM/N/372/TUR, 21  December  2021.  WT/TPR/S/ 439 • Türkiye  
 
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 3.99.  Support to the fisheries and maritime transport sectors takes the form of a zero -rated Special 
Consumption Tax (SCT) on marine fuels, namely diesel and fuel oil applied since  2003 
(Section  3.1.4.2) . The stated aim of the measure is to maximize the potentia l of seas surrounding 
Türkiye and ease the burden on land transportation. In accordance with Presidential Decree No.  2728 
of 9 July 2020, eligible beneficiaries of the tax reduction are vessels registered in the Turkish national 
and international ship regi stries; vessels carrying cargo and passengers or servicing the cabotage 
line; and commercial yachts and fishing vessels.  
3.100.   Additional fisheries support measures fall under the annual fisheries support programme. 
The programme comprises: (i) support for traditional coastal and artisanal fisheries in the form of 
grant subsidies; (ii)  an aquaculture support programme (grant subsidies); (iii)  a support programme 
for puffer fish elimination (grant subsidies); (iv)  zero-rated SCT for marine fue ls for fishing vessels 
(see above); and (v)  discounted investment and operational loans from the Ziraat Bank 
(Agricultural  Bank).  
3.3.2   Standards and other technical requirements  
3.3.2.1   Legal and institutional framework  
3.101.   The Ministry of Trade (previously the Ministry of  Economy) has overall responsibility for 
coordinating the adoption/revision/elimination of technical regulations in Türkiye with the 
responsible government bodies, as well as to harmonize Türkiye's horizontal legislation on technical 
regulations with that of the European  Union.  
3.102.   The Turkish Standards Institution (TSE) is the national standards setting body, and 
since 2020 has taken on KOSGEB's responsibilities for providing laboratory services. The  Turkish 
Accreditation Agency (TURKAK), which falls under the  Ministry of Foreign Affairs, 
is Türkiye's  accreditation body . It is responsible for evaluating the competency and capacity of 
entities providing services in the areas of certification, inspection, testing, and calibration. A 
new Halal Accreditation Agency  was established in 2018 to accredit halal conformity assessment 
bodies.100 Türkiye's Conformity Assessment Association (UDDer) is the umbrella organization for 
national conformity assessment bodies.  
3.103.   Several government ministries and agencies have a role in  implementing laws and 
regulations on products subject to technical regulations and for undertaking market surveillance 
(Box 3.2). There were various changes to the names and responsibilities of these Ministries following 
a government reorganization in  2018 (Section  2.1). 
Box 3.2 Government bodies and their areas of activity on TBT matters  
Ministry of Industry and 
Technology  ATEX products (electric motors, compressors, lighting installations, control 
and communic ation devices, listening, monitoring and search devices, 
flame arresters, extinguishing barriers, flameless explosion and evacuation 
devices, flameproof enclosures, pressure and explosion protection panels, 
extinguishing systems, cableway etc.), lifts, aer osol dispensers, pressure 
equipment, gas appliances, machinery, motor vehicles, explosives for civil 
use, transportable pressure equipment, hot -water boilers, measuring 
instruments, pre -packaged products, batteries, and accumulators  
Ministry of Trade  Detergents, toys, chemical products, childcare products, products in the 
non-harmonized area (such as ready -to-wear clothing, textiles and 
footwear, decorative articles, furniture and hand tools, gadgets, hobby and 
sports equipment, kitchen/cooking accessories , lighters, stationery, 
children's equipment, imitation foods)  
Ministry of Health  Cosmetics, medical devices  
Ministry of Agriculture and 
Forestry  Foodstuffs, food contact materials, feed, fertilizers, plant protection 
products, medical products for veterinary use, tobacco products, and 
ethyl alcohol  
 
100 Law No.  7060, Official  Gazette  (2017), No.  30244, 18  November. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2017/11/20171118 -40.htm . WT/TPR/S/ 439 • Türkiye  
 
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 Ministry of Environment, 
Urbanization and Climate 
Change  Construction products, wastes, certain chemicals, metal scraps, solid fuels  
Information and 
Communication Technologies 
Authority  Radio and teleco mmunication terminal equipment  
Ministry of Family, Labour and 
Social Services  Personal protective equipment  
Ministry of Transport ation and 
Infrastructure  Recreational crafts, marine equipment  
Energy Market Regulatory 
Authority  Fuels 
Source:  Ministry of  Trade. Viewed at: https://www.trade.gov.tr/legislation/product -safety -and-technical -
regulation /general -rules-and-procedures -on-technical -regulations -and-standarts . 
3.104.   There were several changes to the legal and regulatory framework for technical regulations 
over the review period. The Product Safety and Technical Regulations Law  (Law No. 7223) entered  
into force in March 2021.101 This replaces previous legislation (Law No.  4703 on the Preparation and 
Implementation of Technical Legislation of Products102) and transposes EU rules on harmonized 
products as set out in Regulation (EU) 2019/1020, Regulation 7 65/2008/EC, Decision 768/2008/EC, 
Regulation 2019/515, Directive 2001/95/EC , and Directive 2015/1535/EU.  Law No.  7223 covers 
general product safety, conformité européen ne (CE) marking, conformity assessment procedures, 
conformity assessment bodies and notified bodies, inspection market surveillance, and fines. Among 
the changes introduced by the new law are: (i)  definition and clarification of the responsibilities of 
the economic operators in accordance with the current EU legislation ; (ii) introduction of mandatory 
product recall for unsafe products ; (iii) regulation of e -commerce with a perspective of product 
safety; (iv) blocking -off the content in case of a non -complia nt products sold online ; (v) product 
liability ; (vi) traceability ; (vii) improved notification of risks and measures ; and (viii) administrative 
fines in accordance with the gravity of the noncompliance . 
3.105.   Law No.  7223 (Article  24) provides for implementing regulations to be enacted in the areas 
of market surveillance and inspection, "CE" marking", conformity assessment bodies, and notified 
bodies; procedures and principles regarding notifications; procedures and principles regarding 
conformity a ssessment methods; prevention of technical barriers to trade; harmonization of 
technical regulations; market surveillance and control in electronic commerce; general product 
safety and other issues relating to implementation of the law. A transition period  allows for the 
continued application of old  implementing regulations until new ones are adopted. As of 
mid-October  2022, the following implementing regulations were in force:  
• The Regulation on the "CE" Marking.103 This specifies the rules and procedures fo r affixing 
the CE marking on products and its use ; 
• The Framework Regulation on Market Surveillance and Inspection of Products 
(Section  3.3.2.5) ; 
• The Regulation on Conformity Assessment Bodies and Notified Bodies .104 This sets out 
minimum qualifications, operational rules and procedures, and notification to the relevant 
parties, in accordance with Türkiye's international obligations  and procedures of the 
conformity assessment bodies that inspect, test, and certify the  conformity of a product 
with the relevant technical legislation ; 
 
101 Product Safety and Technical Regula tions Law. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2020/03/20200312 -1.htm . 
102 Law No.  4703 on the Preparation and Implementation of Technical Legislation of Products.  
103 Official Gazette  (2021), No.  31493, 27  May. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021/05/20210527 -2.pdf. 
104 Official Gazette  (2021), No.  31493, 27  May.  WT/TPR/S/ 439 • Türkiye  
 
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 • The Regulation on Conformity Assessment Methods .105 This sets out the procedures and 
principles for use of modules specifying the conformity assessment methods to be applied ; 
• The Regulation o n the Notification of Technical Legislation and Standards between 
Turkey  and the European  Union (existing regulation that entered into force in  2012 
applies). This sets out the principles and procedures for notification of technical legislation 
and standar ds to the European  Union and for the transmission of the notifications received 
from the European  Union to the Turkish public authorities ; 
• The Regulation on Mutual Recognition in the Non -Harmonized Area .106 This lays down the 
rules and procedures  concerning  the application of mutual recognition principle ensuring 
the free movement of goods which are not subject of EU harmoni zation or some aspects 
of which are not covered by EU harmoni zation, within the scope of the Türkiye -EU Customs 
Union ; and 
• The Regulatio n on General Product Safety.107 This sets out the rules and procedures to 
ensure safety of consumer products where there are no specific technical regulations or 
where the relevant technical regulation does not consist of provisions regarding human 
health a nd safety or does not cover provisions  on certain risks or risk categories . 
3.106.   The Ministerial Decree on the Regime Regarding Technical Regulations was replaced by the 
Presidential Decree on the Regime Regarding Technical Regulations in September 2022 with the aim 
of clarifying the implementation of certain provisions of Law No.  7223. The new decree contains 
mostly the same provisions as the old decree . Both identify the procedures and principles of 
adaptation of technical legislation to international t rade and implementation thereof, authorize the 
Ministry of Trade to identify the authorities in charge of import and export controls, and prevent  the 
import and export of products that are not safe and that do not comply with their technical 
regulations. T hey both authorize the Ministry of Trade to carry out activities to avoid technical 
barriers to international trade and to coordinate the legislation, policies, and implementation 
regarding technical regulations and to control and ensure conformity of thos e regulations to 
international obligations. The new decree refers to Law No. 7223 regarding the responsibilities of 
the exporter and importer. It stipulates that the products that are exported or intended to be 
exported to countries other than the EU membe r States are also safe, shall not be subject to an 
adulteration and marking, and that labelling and documentation of the product shall be made in the 
way not to mislead buyers. The new decree also authorizes the Ministry of Trade to apply 
administrative fi ne in case of contrary action.  
3.3.2.2   Standards  
3.107.   As of November 2022, Türkiye had 37,807 voluntary standards in place, which include 
standards based on/harmonized with international or regional (European) standards. The economic 
activities for which there are the most voluntary standards are the chemistry, machinery, electronics, 
and construction sectors.  
3.3.2.3   Technical regulations  
3.108.   Türkiye has continued to align sector -specific EU directives into Turkish laws and regulations 
under the "harmonized" areas, i.e. those wher e there are common technical regulations regulating 
the common market. After the European  Union adopts technical legislation under the scope of 
Türkiye -EU Customs Union, Türkiye prepares its own national legislation harmonizing the related 
EU legislation. The competent authority preparing the legislation asks the opinion of all related 
parties and , where necessary, adds national adaptations for implementation to the draft at the end 
of this public consultation process. Then Türkiye sends its draft to the Eu ropean Commission for 
opinion exchange. At this stage, the draft is also notified to the WTO. After the receipt of the positive 
opinion of the Commission, "a statement declaring that Turkish legislation is in line 
 
105 Official G azette  (2021), No.  31493, 27  May.  
106 Official Gazette  (2021), No.  31421, 12  March. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021/03/20210312 -3.htm . 
107 Official Gazette  (2021), No. 31420 , 11 March. Viewed at:  
https://www.resmigazete.gov.tr/eskiler/2021/03/20210311 -18.htm . WT/TPR/S/ 439 • Türkiye  
 
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 with EU legislation" is signed by represen tatives of Türkiye and the European  Union in the 
Türkiye -EU Customs Union Joint Committee.  
3.109.   As indicated in the previous Review, Türkiye's technical regulations in non -harmonized areas 
are based on international standards as well as product -specific require ments when deemed 
necessary. Mutual recognition clauses incorporated into these technical regulations enable the free 
circulation of goods between Türkiye and the European  Union.108 According to a recent European 
Parliament briefing, non -harmonized products  represent around one  third of the non -food products 
on the EU market.109 In the non -harmonized areas, the rights and obligations of economic operators 
supplying goods to the EU market from Türkiye stem from the Customs Union.  
3.3.2.4   Conformity assessment and inspection  
3.110.   The import control system of Türkiye relies on product -specific c ommuniqués for the rules, 
conditions, and required documents for different product groups to be imported into Türkiye. These 
are updated annually and are listed in Table  A3.5. Türkiye's risk -based electronic control system 
TAREKS is used to undertake safet y checks on certain products (Section  3.1.1.1). According to the 
European  Commission, Türkiye's product safety controls on imported goods processed through 
TAREKS may require additional documentation and information for products coming from the 
European  Union.110 Over the review period, specific trade concerns (STCs) were raised by the 
United  States, and later by Mexico and Canada, regarding Türkiye's inspection requirements on 
toys.111 In the context of this Review, the authorities indicate that relevant test reports are 
demanded only if the EU Declaration of Conformity lacks the required information. With respect to 
safety controls on imports of toys, the authorities indicate that foll owing risk analysis under TAREKS, 
inspections are conducted as document/marking checks. Products are sent to accredited laboratories 
only when the product is lacking relevant documents and laboratory testing is only done on an 
exceptional basis.  
3.3.2.5   Market sur veillance  
3.111.   Domestic and imported products are subject to market surveillance to ensure products' 
safety; this is carried out by the nine public ministries/authorities that have regulatory authority for 
specific products (Box 3. 2). Reportedly, most inspectio ns are undertaken within the framework of 
annual programmes. In addition, reactive market surveillance is also carried  out based on external 
complaints from consumers and the media and EU alert system for dangerous products (RAPEX) 
notifications.112 
3.112.   A Frame work Regulation on Market Surveillance and Inspection of Products was issued 
in 2021 as an implementing regulation under the Product Safety and Technical Regulations Law; it 
provides the legal framework for market surveillance activities in Türkiye.113 This replaces the 
previous regulatory framework and was prepared to be in line with EU legislation (Regulation (EU) 
No. 2019/1020 on the Compliance of Products and Market Surveillance of the European Parliament 
and the Council). The new regulation aims to ensu re that only compliant products that fulfil 
requirements providing a high level of protection of public interests  are placed on the market or put 
 
108 The Commission encourages member States to insert a clear and unambiguous "single market 
clause " in national technical regulations as such: "Goods lawfully marketed in another Member State of the 
European  Union or in Türkiye, or originating and lawfully marketed in an EFTA State tha t is a contracting party 
to the EEA agreement are presumed to be compatible with this measure and that the application of this 
measure is subject to Regulation ". Türkiye incorporated this clause into its legal order in 2021 by the Turkish 
Regulation on The  Mutual Recognition in the Non -Harmonized Area.  Commission Communication COM(2017) 
787 final of 19  December  2017, The Goods Package: Reinforcing Trust in the Single Market. Viewed at : 
https://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:52017DC0787&from=EN . 
109 European Parliament (2022), EU Legislation in Progress: General Product Safety Regulation . Viewed 
at: https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/698028/EPRS_BRI(2021)698028_EN.pdf . 
110 European Commission (2022), Türkiye 2022 Report. Viewed a t: https://neighbourhood -
enlargement.ec.europa.eu/turkiye -report -2022_en . 
111 WTO ePing. Viewed at: https://eping.wto.org/en/TradeConcerns/Details?imsId=473&domainId=TBT . 
112 Ministry of Trade. Viewed at: https://www.trade.gov.tr/legislation/product -safety -and-technical -
regulation/general -rules-and-procedures -on-technical -regulations -and-standarts . 
113 Official Gazette  (2021), No.  31537, 10  July. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021/07/20210710 -21.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 into service. It clarifies the duties, powers, and responsibilities of competent authorities. The Ministry 
of Trade submits an annual surveillance report to the European Commission.  
3.113.   In its 2022 report on enlargement policy with respect to Türkiye, the European Commission 
expressed concerns that market surveillance is not performed based on risk assessment given 
the low number of non -safety findings; surveillance of e -commerce is limited, particularly in light of 
an increase in online shopping; and there may be enforcement shortcomings with respect to 
enforcement of product safety legislation as administrative fines  and measures appear not to be 
applied consistently on unsafe products.114 In the context of this Review, the authorities note that 
the Product Safety and Technical Regulations Law  (Law No. 7223) has new provisions with respect 
to e-commerce  (Section  3.3.2. 1) and a draft implementing regulation on market surveillance of 
products placed on the market through means of distance communication has been prepared. They 
also note that through Law No. 7223 administrative fines and measures have been revised to be 
more deterrent , and these are re -evaluated annually.  
3.3.2.6   Labelling requirements  
3.114.   Over the review period, Türkiye notified new or revised labelling requirements for food; 
various heating devices; energy labelling of light sources, electronic displays, household 
dishwashers, and refrigerating appliances; tyres; household washing machines and household 
washer -dryers; and tobacco products.115 The Republic  of Korea raised a specific concern in the 
WTO Committee on Technical Barriers to Trade ( TBT Committee ) regarding non -notification to the 
WTO of energy labelling regulations in 2021, and requested a transition period for implementation 
or an alternative approach to enable manufacturers to comply with these requirements.116 
3.115.   Other non -notified labelling requirements introduced since 2016 include: (i)  a new obligation 
for labels and price lists of goods offered for retail sale to include a "domestic production logo" if the 
goods are produced within Türkiye117; and (ii)  the introduction of a voluntary enviro nmental label 
system in  2018.118 
3.3.2.7   WTO and bilateral agreements  
3.116.   The General Directorate of Product Safety and Inspection within the Ministry of Trade 
is Türkiye's national enquiry point under the WTO  Agreement on Technical Barriers to Trade. Each 
public autho rity (Box 3. 2) in its area of responsibility assesses the draft technical legislation to 
determine whether a notification is necessary. Between January 2016 and 19  October  2022, Türkiye 
made 130 notifications to the  WTO TBT Committee (excluding revisions a nd addenda ). In addition 
to the STCs raised in the TBT Committee relating to energy labelling and import inspections on toys 
(see above), the United  States raised an  STC regarding new requirements introduced by the Ministry 
of Health for cosmetics products , their lack of notification, and the negative impact on US exports 
of these products to Türkiye by underlying new requirements for cosmetics products via changes to 
the requirements for submission of product registrations through a new online filing syste m (the 
Product Tracing System) .119 In the context of this Review, the authorities note that the Product 
Tracing System was cancelled as of January 2021. They also pointed out that cosmetic regulation is 
among the areas where harmonization with the EU legisl ation is continuing as a requirement of the 
Türkiye -EU Customs Union Agreement. In this regard a draft Communiqué on Cosmetic Product and 
a draft Communiqué on Cosmetic Products have been notified to the EU Commission and there is an 
 
114 European Commission (2022), Türkiye 2022 Report. Viewed at: https://neighbourhood -
enlargement.ec.europa.eu/turkiye -report -2022_en . 
115 WTO documents G/TBT/N/TUR/73 13/1/2016 and G/TBT/N/TUR/73/Add.1 14  December  2021; 
G/TBT/N/TUR/192, 30  November  2021; G/TBT/N/TUR/193 30  November  2021; G/TBT/N/TUR/180, 
31 March  2021; G/TBT/N/TUR/181, 1  April 2021; G/TBT/N/TUR/173, 1  March  2021; G/TBT/N/TUR/176, 
1 March  2021; G/TBT/N/TUR/178, 1 March 2021; G/TBT/N/TUR/166, 26  February  2021; G/TBT/N/TUR/170, 
26 February  2021; G/TBT/N/TUR/166, 26  February  2021; G/TBT/N/TUR/147, 7  March  2019, 
G/TBT/N/TUR/147/Add.1, 3  July 2019 and G/TBT/N/TUR/147/Add.2, 14  July 2021.  
116 WTO ePing. Viewed at: https://eping.wto.org/en/TradeConcerns/Details?imsId=684&d omainId=TBT . 
117 Communiqué on the use of the domestic production logo on the price label, Official Gazette  (2018), 
No. 30556, 5  October  2018, as amended by Official Gazette  (2019), No.  30844, 27  July. 
118 Environmental Label Regulation, Official Gazette  (2018 ), No.  30570, 19  October. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2018/10/20181019 -19.htm . 
119 WTO ePing. Viewed at: https://eping.wto.org/en/TradeConcerns/Details?imsId=603&domainId=TBT . WT/TPR/S/ 439 • Türkiye  
 
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 ongoing process with the European  Union about Türkiye's  harmoni zation. Türkiye also notified a 
draft Implementing Regulation on Cosmetic Products  to the WTO in 2021.120 
3.117.   As indicated in the previous Review, Türkiye's policy is to sign technical cooperation 
agreements with its imp ortant export partners with the aim of removing technical barriers.121 Over 
the review period, new agreement s were signed with the Kyrgyz  Republic  (in 2019)122, Uzbekistan 
(in 2021)123, and Kazakhstan in October 2022.  
3.3.3   Sanitary and phytosanitary requirements  
3.3.3.1   Legal and institutional framework  
3.118.   The Ministry of Agriculture and Forestry (MAF)  (formerly the Ministry of Food, Agriculture 
and Livestock)  is the competent authority in the food safety, veterinary , and phytosanitary fields. 
The General Direct orate of Food and Control is the main central service unit of the Ministry in charge 
of controlling and regulating the food safety, veterinary , and phytosanitary sectors .124 
3.119.   The main legal framework in Türkiye for ensuring food safety from field/farm to table is 
Law No. 5996 of 13  June 2010 on Veterinary Services, Plant Health, Food and Feed.125 As indicated 
in Türkiye's previous Review, the Law sets out provisions on human life and health; food and feed; 
plant healt h; and animal health, welfare, and zootechnics. The main elements of the Law provide 
for the control of contagious diseases; identification and registration of animals; animal welfare; 
veterinary health product approval; control of harmful organisms; food and feed safety; food codex, 
labelling, and traceability; hygiene for food establishments; official controls; and penal provisions.126 
Law No.  5996 was amended several times over the review period. More than 200 secondary 
legislation arrangements have been made under Law 5996.127 
3.120.   Turkish Food Codex is a framework legislation that determines the national standards on 
minimum technical and hygiene criteria for food and food contact substances and materials, the 
maximum residue levels for plant protection produc ts and veterinary drugs, food additives, 
contaminants, sampling, packaging, labelling, transportation, storage, and analysis methods. The 
authorities indicate that Turkish Food Codex is prepared by taking into account the needs of Türkiye 
based on the EU acquis, FAO/WHO standards , and internationally accepted scientifically based 
approaches , and the legislation is updated as a result of the scientific assessment of the determined 
criteria, taking into account potential physical, chemical , and microbiologica l risks.  
3.3.3.2   Developments over the review period  
3.121.   Türkiye continues to harmonize its national SPS regulations with the EU acquis . Detailed 
measures for legislative alignment are contained in Türkiye's National Action Plan for EU  Accession 
(NAP) , which covers th e years 2021 -23.128 Previously, Türkiye's National Action Plan for EU  Accession 
 
120 WTO ePing . Viewed at:  
https://epingalert.org/en/Search?&viewData=G %2FTBT%2FN%2FTUR%2F185 . 
121 At the time of Türkiye's previous Review, technical cooperation agreements had been signed 
with China, Ukraine, Lebanon, Bulgaria, the Islamic Republic of Iran, Azerbaijan, and Israel. Additionally, 
Türkiye and EFTA had concluded a protocol on Mutual Recognition of Conformity Assessment of Products.  
122 Official Gazette  (2019), No.  30679 , 7 February. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2019/02/20190207M1 -9.pdf. 
123 Official Gazette  (2021), No.  31669, 24  November. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021/11/20211124 -2.pdf. 
124 The departments of the General Directorate of Food and Control and their respective responsibilities 
are described on the General Directorate's website. Viewed at: 
https://www.tarimorman.gov.tr/GKGM/Menus/79/Departments .  
125 Law No.  5996 on Veterinary Services, Plant Health, Food and Feed. Viewed at: 
https://www.tarimorman.gov.tr/Belgeler/ENG/Legislation/law_veterinary_services.pdf . 
126 WTO document WT/TPR/S/331/Rev.1, 9  August  2016.  
127 Secondary legislation is publicly available on the MAF website. View ed at: 
https://kms.kaysis.gov.tr/Home/Kurum/24308110 , and also on the website of the national legislation 
information system. Viewed at: www.mevzuat.gov .tr. 
128 National Action Plan for EU Accession. Viewed at : 
https://www.ab.gov.tr/siteimages/birimler/kpb/uep/21_23_UEP_EN.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 covered the 2016 -19 period. The regulations harmonized at the time of Türkiye's previous Review 
are listed in the 2016 Secretariat Report.129 Those harmonized since  2017 are set out in Table A3. 6. 
3.122.   Türkiye is a member of the Codex Alimentarius Commission and the World Organisation for 
Animal Health, and is a contracting party to the International Plant Protection Convention. As 
indicated in its previous Review, Türkiye either applies existing international standards or higher 
standards based on its own scientific risk assessments.130 As indicated by the authorities, national 
standards issued since 2017 that impose higher standards than internation al standards are:  
• Turkish Food Codex Regulation on Maximum Residue Levels of Pesticides131; 
• Turkish Food Codex Regulation on Fermented Milk Products132 (as of end -October 2022 
this had not entered into force);  
• Turkish Food Codex Regulation on the Amendment o f the Regulation on Food 
Additives133; 
• Turkish Food Codex Communiqué Edible Caseins and Caseinates (as of end -October 
2022 this had not entered into force)134; 
• Turkish Food Codex Communiqué on Total Diet Replacement for Weight Control135; 
• Turkish Food Codex C ommuniqué on Infant Formula and Follow -on Formula and 
Requirements on Information Relating to Infant and Young Child Feeding136; 
• Turkish Food Codex Regulation Amending the Regulation on Classification and Maximum 
Residue Limits of Pharmacologically Active S ubstances in Foodstuffs of Animal Origin137; 
• Turkish Food Codex Regulation on Food Labelling and Information to Consumers138; 
• Turkish Food Codex Regulation on Maximum Residue Levels of Pesticides139; 
• Turkish Food Codex Communiqué on Semolina140; and 
• Turkish Food Codex Communiqué Amending Turkish Food Codex Communiqué on Infant 
Formula and Follow -on Formula and Requirements on Information Relating to Infant 
and Young Child Feeding.141 
3.123.   Türkiye develops its own SPS measures where no international standard s exist or where 
regulations are not harmonized with those of the European  Union. Over the review period, these 
national measures notified to the WTO largely related to veterinary and plant health certification and 
various requirements for food and beverag es. 
3.124.   Under the Strategic Plan of the MAF 2019 -2023, SPS -related priorities include: (i)  enhancing 
food safety inspections, providing accurate and up -to-date information on food safety, and 
developing applications for food safety; (ii)  protecting animal heal th by strengthening control over 
animal feed; (iii)  developing strategies for animal welfare and combatting animal disease and 
 
129 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, para.  3.99.  
130 WTO document WT/TPR/M/331/Add. 1, 9  May 2016.  
131 WTO document G/SPS/N/TUR/71, 29  April 2016.  
132 WTO document G/SPS/N/TUR/80, 22  November  2016.  
133 WTO document G/SPS/N/TUR/84, 4  April 2017.  
134 WTO document G/SPS/N/TUR/97, 26  January  2018.  
135 WTO document G/SPS/N/TUR/100, 19  July 2018.  
136 WTO document G/SPS/N/TUR/99, 19  July 2018.  
137 WTO document G/SPS/N/TUR/103, 11  September  2018.  
138 WTO document G/SPS/N/TUR/108, 22  January  2019.  
139 WTO document G/SPS/N/TUR/114, 8  July 2020.  
140 WTO document G/SPS/N/TUR/122, 20  April 2022.  
141 WTO document G/SPS/N/TUR/99/Add.2, 11/08/2022.  WT/TPR/S/ 439 • Türkiye  
 
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 pests;  (iv) increasing the quality and efficiency of veterinary products; and (v)  taking ecologically 
sound plant health measures  in plant production.142 
3.3.3.3   Genetically modified organisms  
3.125.   The legislative framework for the approval of GMOs and products thereof in Türkiye is 
Law No. 5977 of 2010 on Biosafety (as amended) and the Regulation on Genetically Modified 
Organisms and Products Th ereof. 143 The M AF is responsible for approvals of GMOs and GM products 
following the abolition of the Biosafety Board in 2018. 144 
3.126.   The approval, evaluation , and decision -making process for GM product applications is set 
out in Articles 8 and 11 of the Regulation. Prior to the first importation of each GMO or product 
thereof, applications are submitted to the MAF by the importer or the owner of the gene, or by  a 
private or corporate person in case of locally developed GMOs. Separate scientific committees are 
formed for the food, feed , or other purposes of use decided by the applicant. The MAF decides 
within  90 days whether the application is accepted or not, as  well as whether it would be processed 
as a new application or addressed under the simplified procedure.145 The MAF must notify the 
applicant of the result of the initial evaluation within 270 days, unless the submitted information is 
deemed insufficient , in which case, renewed experiments, tests, analyses , and research works may 
be requested from the applicant by the MAF or committees. Risk assessment and socio -economic 
evaluation committees are established by the MAF to evaluate the GMO applications. Their  evaluation 
reports are made public via the Biosafety Information Exchange Mechanism of Türkiye at 
www.tbbdm.gov.tr  unless the application is addressed under the simplified procedure. Taking due 
account of the evalua tion reports by the scientific committees, the opinions presented during the 
public consultation on the committee reports, and the evaluation reports by the committees on the 
opinions of the public , as well as the needs and priorities of the country, the M AF presents its final 
decision.  
3.127.   Approved GM products are published in the Official Gazette and are listed at the webpage of 
the Turkish Biosafety Information Exchange Mechanism ( http://tbbdm.gov.tr/Onayli GDO2.aspx ). 
Decisions are valid for 10 years.  As of end -October 2022 , there were 45 GM product approvals for 
maize, soybeans , and genetically modified microorganisms.  
3.128.   The Regulation bans the production of genetically  engineered (GE) animals and plants, and  
the use of GMOs and their products in baby foods and infant formulas, follow -on foods and follow -on 
formulas, and supplementary foods for infants and young children. The import of GE seeds is also 
prohibited.  
3.3.3.4   WTO, regional, and bilateral agreements  
3.129.   The Ge neral Directorate of Food and Control is the WTO enquiry point and notification 
authority for issues related to the WTO  Agreement on the Application of Sanitary and Phytosanitary 
Measures. Over the period 1  January  2016 to 21  October  2022, Türkiye made 61  new notifications 
to the WTO, as well as several addenda, revisions, and corrigenda.146 Three of these were emergency 
measures (emergency measures on the import of tomato, pepper, and pumpkin seeds ; a 
requirement for an additional declaration on tomato and capsicum seed exports into Türkiye for 
tomato brown rugose fruit virus -affected countries ; and phytosanitary measures taken to prevent 
the entry of Xylella fastidiosa ). 
3.130.   During Türkiye's previous Re view, concerns raised by some WTO Members in their advance 
written questions related to sanitary barriers hindering exports of cattle and beef, import bans 
 
142 FAOLEX, Strategic Plan of the Ministry of Agriculture and Forestry 2019 -2023. Viewed at: 
https://www.fao.org/faolex/results/details/en/c/LEX -FAOC193517 . 
143 Law No.  5977 on Biosafety. Viewed at: http://www.lawsturkey.com/law /law-on-bio-safety -5977. 
Regulation on Genetically Modified Organisms and Products Thereof .  
144 USDA FAS and GAIN (2021), Agriculture Biotechnology Annual , 13 October.  Viewed at: 
https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Agricultura l%20Biote
chnology%20Annual_Ankara_Turkey_10 -20-2021.pdf . 
145 The simplified procedure set out in Article  12 of the Regulation. It is used in circumstances where, 
based on available information, there is considered to be no harm to human, animal , and plant he alth; the 
environment ; and biological diversity arising from GMOs and their products.  
146 WTO documents G/SPS/N/TUR/68, 12  January  2016-G/SPS/N/TUR/128, 5  September  2022.  WT/TPR/S/ 439 • Türkiye  
 
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 relating to avian influenza, difficulties encountered in obtaining the required export certification , and 
import restrictions on rough rice.147 Over the review period, some STCs were raised in the 
WTO Committee on Sanitary and Phytosanitary Measures, namely: Australia reiterated 
long-standing concerns regarding Türkiye's undue delay in providing informati on on the importation 
of sheep meat148; the United  States repeated concerns about Türkiye's restrictions on rough rice 
imports149; and Argentina raised an STC about import restrictions on cows for fattening and 
slaughter.150 
3.131.   Türkiye collaborates with several regional or global partners in the area of SPS, including 
the European Food Safety Authority (EFSA), the Food and Agricultural Organization of the 
United  Nations (FAO), the European Medicines Agency (EMA), and the European and Mediterranean 
Plant Protectio n Organization (EPPO) (of which it is also a member).  
3.132.   Over the review period, Türkiye entered into various SPS -related agreements/MOUs with its 
trading partners, including on phytosanitary and food safety matters Azerbaijan in 2021; plant 
protection and plant quarantine with the Kyrgyz  Republic  in 2021; anima l health with Georgia 
in 2021; plant protection and quarantine with Uzbekistan in 2021; veterinary services policies and 
food safety with North  Macedonia in 2021; inspection, quarantine , and veterinary hygiene conditions 
of fisheries to be exported to Türk iye with China in 2019; food safety with Qatar in 2017; livestock 
and animal health with the State of Kuwait in 2017; and Veterinary Health and Veterinary Medicines 
with the Islamic Republic of Iran.151 These agreements have not yet entered into force pendi ng the 
finalization of internal approval procedures by Türkiye and the other respective parties.  
3.3.4   Competition policy and price controls  
3.3.4.1    Price controls  
3.133.   As at the time of Türkiye's previous Review, price controls are in place for electricity, natural 
gas, te lecommunications, and pharmaceuticals.  
• The Energy Market Regulatory Authority (EMRA) is responsible for approving 
transmission and distribution tariffs, the wholesale price of EUAS (Electricity Generation 
Company), and retail sales to "non -eligible" consum ers and last resort sales 
(i.e. situations when consumers are not able to/do not sign bilateral contracts with 
retailers).152 The EMRA is also responsible for approving retail, transmission, storage, 
and connection tariffs for natural gas.  
• The Information a nd Communication Technologies Authority (ICTA) has responsibility 
for regulating or approving services provided by operators.  
• The Ministry of Health uses a reference price system to determine the wholesale and 
retail prices of pharmaceuticals under the 201 7 Decision of Pricing of Medicinal Products 
for Human Use.153 Prices for pharmaceuticals are determined using the lowest 
ex-factory prices (sales price to the warehouse/manufacturer sale price) in some 
EU member States as the reference. The currency for the se base prices is the euro, with 
the euro/Turkish lira conversion being determined by applying the fixed exchange rate. 
 
147 WTO document WTO/TPR/S/331/Rev.1, 9  August  2016.  
148 WTO ePing. Viewed at:  https://epin g.wto.org/en/TradeConcerns/Details?imsId=340&domainId=SPS . 
149 WTO ePing. Viewed at: https://eping.wto.org/en/TradeConcerns/Details?imsId=433&domainId=SPS . 
150 WTO ePing. Vie wed at: https://eping.wto.org/en/TradeConcerns/Details?imsId=461&domainId=SPS . 
151 General Directorate of European  Union and Foreign Relations. Viewed at: 
https://www.tarimorm an.gov.tr/ABDGM/Menu/74/Anlasma -Ve-Protokoller . Official Gazette (2017),  No. 30185, 
19 September. Viewed at: https://www.resmigazete.gov.tr/eskiler/2017/09/20170919 -3.pdf, and Official 
Gazette (2017),  No. 30064, 12  May. Viewed at: https://www.resmigazete.gov.tr/eskiler/2017/05/20170512 -
1.pdf. 
152 Non-eligible consumers are consumers that have less electricity consumption than eligibility limit and 
therefore they are not able to sign bilateral contracts with retaile rs; they may only get electricity from 
assigned  (incumbent) supplier companies through retail tariffs. Eligible consumers, having equal or more 
electricity consumption than eligibility limit, can sign bilateral contracts with retailers. If eligible consume rs do 
not sign bilateral contracts with retailers, then they get electricity from assigned supplier companies through 
last resort tariffs.  
153 Council of Ministers Decision 1 -6/2/2017 , No. 2017/9901.  WT/TPR/S/ 439 • Türkiye  
 
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 This determined value is updated once a year in line with the Decision. However, when 
companies experience sustainability problems due to the price of pharmaceuticals, they 
may request a price increase from the Price Evaluation Commission to ensure 
sustainability. Price controls of blood products are evaluated every two weeks.  
• In 2021, a Price Stability Committee was establis hed to maintain domestic price stability 
and inter alia  implement price controls (Section  1.2.1) . 
3.3.4.2   Competition policy  
3.3.4.2.1   Legal and institutional framework  
3.134.   Law No.  4054 of 1994 on the Protection of Competition remains the principal legal basis for 
the promotion  and enforcement of competition in goods and services markets. It addresses 
three  types of behaviour: (i)  anti-competitive agreements, concerted practices, and decisions; 
(ii) abuse of dominant position; and (iii)  mergers and acquisitions distorting the co mpetitive 
structure of the market. The Turkish Competition Authority (TCA), led by a seven -member 
competition board, remains responsible for the implementation of the Law. While the Law applies to 
all sectors without exclusion, the TCA has signed protocols  with the Public Procurement Authority, 
the Banking Regulation and Supervision Agency, ICTA, the Personal  Data Protection Authority, and 
EMRA to ensure that there is no overlap in their respective functions . The TCA has a protocol in place 
with ICTA (Secti on 4.4.3) , whereby it is obliged to seek the opinion of ICTA before opening an 
investigation. The TCA has signed MOUs with its counterparts in various third countries to promote 
cooperation and the exchange of information.154 
3.135.   In 2020, Law No.  4054 underwent  a major amendment with Act No.  7246, introducing the 
new concepts of the de minimis  principle, settlement, and remedy.155 The amendments were made 
with the aim of increasing the effectiveness of competition law instruments and ensuring compliance 
with EU  regulations. Under the de minimis  principle, the TCA Board is required to establish criteria 
for market shares and turnover thresholds before launching investigations on agreements, concerted 
practices and decisions, and practices of associations of underta kings that do not significantly restrict 
competition in the market (hard -core cartels are excluded from this provision). Under provisions on 
settlement, the Board may start a settlement procedure with the undertakings/associations of 
undertakings once an i nvestigation has started . If the latter confirm s the existence of a violation 
during the investigation and settle s with the TCA, the administrative fine is reduced by 25%. 
Concerning remedies, new wording has been added to clarify that the TCA has the authority to 
impose structural and behavioural remedies. Under new  provisions on commitments, the TCA Board 
can decide  not to launch an investigation during the preliminary enquiry stage, or terminate an 
ongoing investigation, if undertakings/associations of undertakings make a commitment to eliminate 
competition concerns at stake (this does not apply to hard -core restric tions).156 
3.136.   Other changes introduced by Act No.  7246 include: (i)  the dominance test for merger 
evaluation was replaced by a significant lessening of competition test; (ii)  the TCA now is permitted 
to impose behavioural or structural remedies on finding a co mpetition law infringement; (iii)  a 
clarification that the TCA's entitlement includes the digital assets of undertakings under 
investigation; and (iv)  a time extension for case handlers to submit their additional opinions.  
 
154 These MOUs were viewed at: https://rekabet.gov.tr/en/Sayfa/About -us/international -
relations/bilateral -relations/ -co-operation -agreements -with-other -comp . 
155 Law No.  5045 o f 1994 as updated to include amendments in 2020. Viewed at: 
https://www.rekabet.gov.tr/en/sayfa/legislation/act -no-4054#_edn1 . 
156 OECD (2022), Annual Report on Competition P olicy Developments in Turkey, 2021 . Viewed at: 
https://one.oecd.org/document/DAF/COMP/AR(2022)36/en/pdf . WT/TPR/S/ 439 • Türkiye  
 
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 3.137.   Secondary legislation, largely in  the form of regulations and communiqués, is prepared by 
the TCA and issued by the Board. New regulations introduced to implement legal changes introduced 
in 2020 are:  
• Commitments Communiqué – Communiqué No.  2021/2 on the Commitments to be 
Offered in Preli minary Inquiries and Investigations Concerning Agreements, Concerted 
Practices and Decisions Restricting Competition, and Abuse of Dominant Position157; 
• De Minimis  Communiqué – Communiqué No.  2021/3 on Agreements, Concerted 
Practices and Decisions and Pract ices of Associations of Undertakings that Do Not 
Significantly Restrict Competition158; and  
• Settlement Regulation – Regulation on the Settlement Procedure in Applicable in 
Investigations on Agreements, Concerted Practices and Decisions Restricting 
Competition and Abuses of Dominant Position.159 
3.138.   Other changes to secondary legislation over the review period related to thresholds for 
administrative fines, payments to be made by joint -stock and limited companies, a block exemption 
on vertical  agreements in the motor vehicles sector, and a block exemption on R&D agreements.160 
3.139.   Over the review period, the TCA published several guidelines. In 2022, it issued guidance 
on evaluating horizontal and non -horizontal mergers and acquisitions. In 2020, it  issued guidelines 
on the investigation of digital data in on -site inspections; in 2018, on mergers and acquisitions and 
the concept of controls; related enterprise, turnover, and ancillary limitations in mergers and 
acquisitions; and vertical agreements; and in 2017, on the block exemption communiqué in the 
motor vehicles sector.161 Various existing guidelines were also amended. Guidelines are not legally 
binding and are designed to provide guidance and clarity as well as to ensure better alignment with 
EU regulations.  
3.140.   One influence behind legislative and regulatory reform in the competition area has been the 
accession process to the European  Union.  Relations between Türkiye and the European  Union in the 
area of competition (antitrust and mergers) are regula ted by Chapter IV of Decision 1/95 of the 
EC-Türkiye Association Council of 1995, which relates to implementing the final phase of the 
Customs Union.162 As indicated by the European Commission, Chapter IV sets out rules on 
competition that mirror the EU acquis with the aim of creating a level playing field among economic 
operators active within the Customs Union.163 
3.141.   With respect to the TCA's activities over the review period, comprehensive data are provided 
in both the annual reports of the TCA as well as the  OECD's annual reports on competition policy 
developments in Türkiye. Compared with Türkiye's previous Review, there has been a significant 
drop in the TCA's caseload, related in particular to a decrease in files involving infringement of 
competition. As r eported in Türkiye's previous Review, over the period 2011 -14, the number of 
infringement files concluded ranged between 163 to 303 per year.164 During the current review 
period, this has dropped to a range of between 65 and 88 (Table  3.20). The authorities  indicate that 
 
157 Communiqué No.  2021/2. Viewed at: 
https://www.rekabet.gov.tr/Dosya/communiques/communique -2021-2-20210402120741924 -pdf. 
158 Communiqué No.  2021/3. Viewed at: 
https://www.rekabet.gov.tr/Dosya/communiques/communique -2021-3-20210402120809951 -pdf. 
159 Viewed at: https://www.rekabet.gov.tr/Dosya/regulations/regulation -on-the-settlement -procedure -
20210908173216927 -pdf. 
160 TCA. Viewed at: https://www.rekabet.gov.tr/en/Sayfa/Legislation/communiques . 
161 TCA. Viewed at: https://www.rekabet.gov.tr/tr/Sayfa/Mevzuat/ -kilavuzlar?sayfa=1 . 
162 Decision No.  1/95 of the EC -Turkey Association Council of 22  December  1995 on Implementing the 
Final Phase of the Customs Union. Viewed at: https://eur -lex.euro pa.eu/legal -
content/EN/ALL/?uri=CELEX%3A21996D0213%2801%29 . 
163 European Commission, Bilateral Relations with Türkiye . Viewed at: https://competition -
policy. ec.europa.eu/international/bilateral -relations/turkiye_en . 
164 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, Table  3.27.  WT/TPR/S/ 439 • Türkiye  
 
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 the reason for this decrease is linked to the implementation in 2012 of standards to be met for 
applications to be eligible to start a legal action.165 
Table 3.20 Files concluded by the TCA, 2016 -21 
Year No. cases 
investigated 
regarding 
infringement of 
competition Exemption/negative 
clearancea Mergers/acquisitions/  
joint  ventures/privatization  Total  
2016 83 33 209 325 
2017 80 32 184 296 
2018 88 44 223 355 
2019 69 35 208 312 
2020 65 34 220 319 
2021 74 22 309 405 
a Negative clearances and exemptions deem an activity or agreement not to be in contravention of 
Law No. 4054 on the Protection of Competition or covered by one of the block exemptions issued by 
the TCA.  
Source:  OECD documents DAF/COMP/AR(2022)36, 23  May 2022; and DAF/COMP/AR(2019)34, 11  July 2019.  
3.142.   Cases involving infringement of competition are investigated unde r Article  4 (on 
anti-competitive agreements) and Article  6 (on abuse of dominant position) of Law No.  4054. During 
the review period , the annual number of cartel and non -cartel coordination cases was relatively high 
in comparison with abuse of dominance cases. As indicated by the authorities, in recent years the 
TCA has considered taking action, based on novel theories of harm such as h ub-and-spoke and 
no-poaching/wage -fixing, against atypical cartels. Cases in traditional sectors (agricultural products 
and fast -moving consumer goods, logistics and transportation , and construction) were relatively 
stable per year. There was a rise in the  number of cases related to the more innovative and dynamic 
sectors such as digital markets. As indicated by the authorities, in addressing competition concerns 
in the digital area, the TCA has started to look at new ways to assess the economic value of co nsumer 
data considering that traditional approaches can be insufficient.  
3.143.   As indicated in Table  3.20, a substantial share of the TCA's activity is devoted to merger, 
acquisition, joint venture, and privatization investigations. As at the time of the previou s Review, 
these are nearly always cleared by the TCA. By way of example, over the period 2019 -21, there 
were 602 merger and acquisition notifications. Of these, only 1 was blocked, 6 were cleared with 
conditions, and 78 were considered "out of scope" for n ot satisfying the required thresholds.166 
3.144.   Over the period 2018 -21, the TCA imposed a total of TRY  6,906,356,513 in fines. The vast 
majority of the fines were for anti -competitive agreements and abuse of dominance. The rest of the 
fines were related to merge rs and acquisitions (either for providing false or misleading information 
in an application or for finalizing a transaction without the permission of the Competition Board or 
failing to notify within a due date).  
3.145.   Since 2016, the TCA has carried out sector enquiries in the areas of online marketplaces; 
fresh vegetables and fruits; fuel; financial technologies; fast consumer markets retail sector; the 
hazelnut market; electricity; fair organization; the retail sector; the music sector; TV  broadcasting 
in ligh t of digitalization and convergence; movie theatre services; and the cement sector.167 
 
165 Communiqué on the Application Procedure for Infringements of Competition 2012. Viewed at: 
https://www.rekabet.gov.tr/Dosya/communiques/46 -pdf. 
166 OECD (2022), Annual Report on Competition Policy Developments in Turkey, 2021 . Viewed at: 
https://one.o ecd.org/document/DAF/COMP/AR(2022)36/en/pdf . 
167 OECD, Annual Report on Competition Policy Developments in Turkey , various editions 2017 -21. 
Viewed at: https://one.oecd.org/document/DAF /COMP/AR(2022)36/en/pdf ; 
https://one.oecd.org/document/DAF/COMP/AR(2021)34/en/pdf ; https://www.rekabet.gov.tr/Dosya/annual -
reports -(oecd)/oecd2019 -20210113135714744 -pdf; 
https://one.oecd.org/document/DAF/COMP/AR(2019)34/en/pdf ; and 
https://www.rekabet.gov.tr/Dosya/annual -reports/annual -report -on-competition -policy -developments -in-
turkey.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 3.3.5   State trading, state -owned enterprises, and privatization  
3.3.5.1   State trading  
3.146.   Türkiye notified the WTO in 2016 of the Turkish Red Crescent (TRCS) as the only 
state trading entity pursuant to the provisions of Article  XXVII:4(a) and the Understanding on the 
Implementation of Article  XVII.168 As with previous notifications, it enumerates seven HS 12 -digit 
tariff lines pertaining to chemicals or medicines used to f ight against malaria and syphilis. Pursuant 
to the exclusive rights granted to this non -profit aid organization, the TRCS is the sole importer of 
these products. During the period covered by the notification, 2012 -15, only potassium iodide was 
imported.  
3.3.5.2   State-owned enterprises  
3.147.   The official rationale for having  state-owned enterprises (SOEs) is to support capital 
accumulation; create funds for investment and contribute to steady, high growth; contribute to 
enhance competitiveness while maintaining a level pl aying field; invest in large infrastructure 
investments; and protect public policy objectives and public interest while contributing to efficient 
management of oil and mineral resources.169 SOEs fall under different ownership and legislative 
frameworks. The  control, monitoring , and audit requirements described in Türkiye's previous Review 
continue to apply to SOEs described below.170 The MoTF is responsible for producing the Annual 
Ownership Report of SOEs , which includes financial and non -financial data of e nterprises as well as 
developments and sectoral analysis regarding SOEs during the year. In addition, within the scope of 
the Official Statistics Programme, aggregate financial and non -financial statistics are published 
annually and quarterly on the Minist ry's website ( https://en.hmb.gov.tr/state -owned -enterprises ). 
Over the review period , capital injections to SOEs increased significantly, with a major increase 
witnessed between 2020 and 2021 (T able 3. 21). According to the authorities, capital injections 
in 2021 were due to increased investments in the railway company, and in 2022 were due to capital 
transfers to Petroleum Pipeline Company, BOTAS, (the natural gas importing company) to ensure 
energy supply.  
Table 3.21 Capital injections to SOEs, 2016 -21 
(TRY million)  
2016  2017  2018  2019  2020  2021  
7,657  8,271  12,543  17,207  15,411  39,260  
Source:  Information provided by the authorities based on data contained in the Annual Ownership Reports 
of SOEs. 
3.3.5.2.1   Public economic enterprises under the MoTF portfolio  
3.148.   The MoTF is the shareholder of several SOEs (the so -called Public Economic Enterprises 
(PPEs)) in the energy, agriculture, industry, and transportation sectors; all of these enterprises are 
fully state -owned (Ta ble 3.22). Legislation governing these PPEs is Decree Law No.  233 on 
State -Owned Enterprises; there were no major changes to this law over the review period. The 
General Directorate of State -Owned Enterprises under the MoTF oversees these SOEs.171 Changes 
to the MoTF portfolio over the review period included: (i)  the change in status of Mechanical and 
Chemical Industries Inc. to become a joint -stock company, hence it was removed from the scope of 
Decree Law No.  233; (ii) the merger of three entities to becom e the Turkish Railway Vehicles 
Industry Inc. in 2020; (iii)  the removal of two SOEs, the Turkish Electricity Distribution Company 
(TEDAS) and Turkish Electro Mechanical Industry Inc (TEMSAN), from the scope and programme of 
privatization in 2017 (see below ), which were placed back within the MoTF portfolio; and (iv)  the 
transfer of the MoTF's shares in four entities,  Türkiye Petroleum Corporation  (TPAO), Petroleum 
 
168 WTO document G/STR/N/15/TUR and G/STR/N/16/TUR, 27  October  2016.  
169 MoTF, 2020 Annual Ownership Report for State Owned Enterprises . Viewed at: 
https://en.hmb.gov.tr/state -owned -enterprises -reports . 
170 WTO document WT/TPR/S/331/Rev.1, 9  August  2016.  
171 Further details on the responsibilities of the General Directorate of State -Owned Enterprises are 
contained on its website. Viewed at: https://en.hmb.gov.tr/state -owned -enterprises -about -us. WT/TPR/S/ 439 • Türkiye  
 
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 Pipeline Company  (BOTAS), a mining company called ETI MADEN , and the General Directorate of 
Tea Enterprises  (CAYKUR) to the Türkiye Wealth Fund in 2021 (see below).  
Table 3.22 Public economic enterprises under the MoTF portfolio  
Enterprise  Sector  Public ownership 
(%) 
Mechanical and Ch emical Industry Institution (MKEK)  Manufacturing  100 
State Supply Office (DMO)  Manufacturing  100 
Turkish Electro Mechanical Industry Inc. (TEMSAN)  Manufacturing  100 
Turkish Hard Coal Enterprises (TTK)  Mining  100 
Turkish Coal Enterprises (TKI)  Mining  100 
Electricity Generation Company (EÜAŞ)  Energy  100 
Turkish Electricity Transmission Company (TEIAŞ)  Energy  100 
Turkish Electricity Distribution Company (TEDAS)  Energy  100 
Turkish Grain Board (TMO)  Agriculture and livestock  100 
General Directorate of Agricultural Enterprises (TIGEM)  Agriculture and livestock  100 
Meat and Milk Board (ESK)  Agriculture and livestock  100 
Turkish State Railways (TCDD)  Transport  100 
Turkish Railway Industries (TÜRASAS)  Transport  100 
State Airports Authority (DHMI)  Transport  100 
General Directorate of Coastal Safety (KEGM)  Transport  100 
Source:  MoTF, 2020 Annual Ownership Report for State Owned Enterprises . Viewed at: 
https://en.hmb.gov.tr/state -owned -enterprises -reports . 
3.3.5.2.2   SOEs under the privatization portfolio  
3.149.   Another group of SOEs is subject to Law No.  4046 on Implementation of Privatization.172 
This La w regulates the SOE privatization process. Enterprises subject to Law No.  4046 are overseen 
by the MoTF in collaboration with the Privatization Administration.  As of October 2022, there were 
four SOEs under this portfolio (Table  3.23). SOEs that are not ye t qualified for privatization due to 
their current situation are included in the "privatization preparatory stage" to be prepared for 
privatization both financially and legally, and those whose preparatory procedures are completed 
are included in the "priv atization program" directly after the completion of these procedures.  Over 
the review period, changes to SOEs under the privatization portfolio were: (i)  the transfer of 
two SOEs, TEDAS and TEMSAN, from the scope and programme of privatization in 2017 (see above) 
back into the MoFT portfolio; and (ii)  the transfer of Türkiye Sugar Factories Inc. to the Türkiye 
Wealth Fund (TWF) in 2021 (see below).  
Table  3.23 SOEs under the privatization portfolio, October 2022  
Enterprise  Sector  Public ownership (%)  
Doğusan Pipe Industry and Trade Inc . Production/Based on 
Stone and Soil  56.09  
Sümmer Holding Inc.  Textile and other  100 
Turkish Maritime Organization (TDI)  Transport  100 
Ankara Natural Electricity Generation and Trading Inc. 
(ADUAS)  Energy  100 
Source:  MoTF, 2020 Annual Ownership Report for State Owned Enterprises . Viewed at: 
https://en.hmb.gov.tr/state -owned -enterprises -reports . 
3.3.5.2.3   SOEs under the Türkiye Wealth Fund  
3.150.   The TWF was established by Türkiye Wealth Fund Management Company (TWF ManCo) 
under Law No.  6741 in 2016.173 TWF ManCo exercises the administrative and financial rights for the 
assets under the TWF's portfolio. Principles regarding the management and activities of TWF ManCo 
 
172 Law No.  4046 on Implementation of Privatization. Viewed at: http://www.lawsturkey.com/law/4046 -
implementation -of-privatization -law. 
173 Law No.  6741 on Establishment of Turkey Wealth Fund Management Company and Amendments in 
Certain Laws. Viewed at: https://www.tvf.com.tr/uploads/file/law -numbered -6741-amendments -as-of-
2852022.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 are regulated under Law No.  6741 and the Decree of the Council of Ministers 20 16/9429.174 In 2018, 
TWF ManCo became an affiliate of the Presidency of the Republic of Türkiye, with the President 
acting as the Chair of the Board of Directors. Within its portfolio are 26 companies (Table 3. 24), 
2 licences, and 46 real estate assets. Sin ce its inception, the TWF has expanded and diversified its 
portfolio , which now includes companies and institutions from a variety of different sectors. These 
companies and institutions are additionally subject to the laws that are specific to the sectors in 
which they conduct business. During a transition period, the five enterprises that were transferred 
from the MoTF and Privatization portfolios to the TWF remain subject to Decree Law No.  233. They 
are overseen by the DG of SOE s and can benefit from capi tal injections from the MoTF if needed (as 
was the case with BOTAS in 2022).  
Table  3.24 TWF Portfolio of companies, 2022  
Enterprise  Sector  Fund ownership 
(%) 
Ziraat Bank (T.C .) Banking  100 
Halk Bank  Banking  87.7 
Vakiflar Bank  Banking  64.8 
TVF Finansal Yatırımlar A.Ş.  Insurance and 
pension  100 
 -Türkiye Sigorta A.Ş.  Insurance  81.10  
 -Türkiye Hayat ve Emeklilik A.Ş.  Pension  92.64  
Borsa Istanbul  Stock market  80.6 
Petroleum Pipeline Company (BOTAS)  Energy  100 
Türkiye Petroleum Corporation (TPAO)  Energy  100 
TWF Energy  Energy  100 
TWF Refinery and Petrochemical Company  Energy  100 
TVF AEL Elekrik Üretim Sanayi ve Ticaret A.Ş.  Energy  100 
Türkiye Maden  Mining  100 
Eti Maden  Mining  100 
Turkish Airlines  Transport and 
logistics  49.12  
National Postal and Logistics Company (PTT)  Transport and 
logistics  100 
Ismir Alsancak Port  Transport and 
logistics  100 
TVF Bilgi Teknolojileri   Technology and 
Telecom  100 
 - Turkcell  Technology and 
Telecom  26.2 
Türksat satellite and telecoms company (Türksat)  Technology and 
telecom  100 
Türk Telekom  Technology and 
telecom  61.68  
Türkiye Sugar Factories Inc.  Agriculture and 
food 100 
Kayseri Sugar Factories Inc.  Agriculture and 
food  11.1 
General Directorate of Tea Enterprises (Caykur)  Agriculture and 
food  100 
Source:  Türkiye Wealth Fund, Our Portfolio . Viewed at: https://www.tvf.com.tr/en/our -portfolio ; and 
information provided by the authorities.  
3.3.5.2.4   Other SOEs  
3.151.   Other SOEs include state -owned banks subject to banking and commercial laws. These are 
Emlak Participatio n Bank Inc. ( state share of 99.99%), the Development and Investment Bank of 
Türkiye Inc. (99.08%), Türk Exim bank (100%), and the Central Bank of the Republic of 
Türkiye  (55.12%).175 
 
174 Decree of the Council of Ministers Regarding the Process and Principles of the Structure and 
Operation of the Turkey Wealth Fu nd Management Company No.  2016/9429 of 17  October  2016. Viewed at: 
https://www.tvf.com.tr/uploads/file/decree.pdf . 
175 MoTF, 2020 Annual Ownership Report for State Owned Enterprises . Viewed at: 
https://en.hmb.gov.tr/state -owned -enterprises -reports . WT/TPR/S/ 439 • Türkiye  
 
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 3.152.   The MoTF also has shares in 10 other public companies, namely: Türkiye Radi o and 
Television Corporation (100% ownership); Atatürk Forest Farm Directorate (100%); ASFAT Inc. (a 
defen ce contractor) (100%); International Health Services Joint Stock Company ( USHAS ) (100%); 
Türk Reasürans (100%); Mechanical and Chemical Industries Inc. (100%); Türk Telekom (25%); 
Birlesik Ipotek Finansmani Inc. (5%); Vakifbank (20.57%); and Anadolu Agency (47.75%).  
3.3.5.3   Privatization  
3.153.   As indicated in its previous Review, Türkiye began its privatization process in the 1980s with 
the establishmen t of the Turkish Privatization Administration . According to the authorities, since this 
time Türkiye has raised a net worth of around USD  71.2 billion.176 Over the review period, 
privatization implementations were valued at USD 1.3 billion in 2016, USD  750.9 million in 2017, 
USD 1.35 billion in 2018, USD  115.9  million in 2019, USD  22.3 million in 2020, USD  413.1  million 
in 2021, and USD  444.5  million as of 31  October  2022.  
3.154.   The legal framework for privatization activities remains Law No.  4046 on Implementatio n of 
Privatization.177 The main institutions responsible for privatization activities are the Privatization High 
Council (responsible for the main decision -making body for privatization) and Privatization 
Administration (the executive body for the privatiza tions).  
3.155.   Privatization methods, as set out in the Law, are sale, lease, grant of operating rights (TOR), 
establishment of property rights other than ownership, and a profit -sharing model and other 
methods depending on the nature of the business. Foreign inv estors may participate in the bidding 
in accordance with the Law on Foreign Direct Investment (Section  2.4.1). 
3.156.   Since 2016, privatization activity was focused on the energy sector, with the State 
transferring operating rights for the operation of several hydroelectric power plants, fully divesting 
itself of a natural gas combined cycled power plant and selling its shares in the Türkiye Petroleum 
Oil Distribution Company. This follows the trend for greater private sector investment in the energy 
sector witnessed at the time of Türkiye's previous Review, when there were privatizations of several 
power generation and electricity distribution companies.178 As a result of privatization in the 
electricity sector, by September 2022 the share of the private sector in installed capacity was 79.5% 
and it had an 85.2% share in production. To encourage development of the port sector and increased 
service quality, concession agreements have been reached to operate two ports and a marina. Also, 
tender announcements  to privatize 14 factories belonging to Turkseker were made in February  2018; 
10 tenders were completed, and 4 were later cancelled (Table  3.25). 
Table  3.25 Privatization activity, 2016 -22 
Name of the privatized companies  Date of 
privatization  Revenue from 
privatization  
(USD  million)  Form of 
privatization  
Electricity production  
Fethiye hydroelectric power plant (HPP) and related 
assets  21/03/2016  44.8 TOR 
Manavgat HPP and related assets  04/04/2016  131.2  TOR 
Doğankent, Kürtün and Torul HPPs and related 
Assets  29/04/2016  1,225.1  TOR 
Karacaören 1 and Karacaören 2 HPPs and related 
assets.  15/07/2016  864.1  TOR 
Şanlıurfa HPP and related assets  03/01/2017  247.5  TOR 
Adıgüzel  and Kemer HPPs and related assets  05/05/2017  324.1  TOR 
Almus and Köklüce HPPs and related assets  08/08/2017  213 TOR 
Yenice  HPP and related assets  15/12/2017  33.8 TOR 
Anamur, Bozyazı, Mut -Derinçay, Silifke, Zeyne 
HPPs, and related assets  12/01/2018  2.41 TOR 
 
Menzelet ve  Kılavuzlu HPPs and related assets  09/03/2018  335 TOR 
Manyas HPP and related assets  27/04/2018  15.8 TOR 
Sütçüler HPP and related assets  20/12/2018  1.6 TOR 
Gönen HPP and related assets  25/12/2018  12.3 TOR 
 
176 Figures up to date as of 31  March  2022.  
177 Law No.  4046 on Implementation of Privatization. Viewed at: http://www.lawsturkey.com/law/4046 -
implementation -of-privatization -law. 
178 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, Table  3.37.  WT/TPR/S/ 439 • Türkiye  
 
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 Name of the privatized companies  Date of 
privatization  Revenue from 
privatization  
(USD  million)  Form of 
privatization  
Tohma HPP and related assets  02/01/2019  10.9 TOR 
Dinar 2 HPP and related assets  27/02/2019  1.5 TOR 
Çine HPP and related assets  22/04/2019  20.8 TOR 
Ahiköy I / II HPP and related assets  22/01/2021  1.5 TOR 
Gebze Dilovası Natural Gas Combined Cycled Power 
Plant 04/11/2021  16.2 100% asset sale  
Çamlıca I HPP and related assets  05/11/2021  67.03  TOR 
Tortum HPP and related assets  08/12/2021  22.9 TOR 
Topçam HPP and related assets  24/12/2021  78.9 TOR 
Çal HPP and related assets  28/01/2022  9.3 TOR 
Girlevik 2 – Mercan HPP and related assets  05/08/2022  10.1 TOR 
Ports and marinas  
Tekirdağ Port  28/12/2018  66 TOR 
Taşucu Port and its rear area  21/01/2022  51 Taşucu Port -TOR 
Ports rear area -
sale  
Güllük Marina  21/06/2021  4 TOR 
Sugar factories  
Kırşehir Sugar Factory  24/05/2018  83 100% asset sale  
Turhal Sugar Factory  07/06/2018  142  100% asset sale  
Çorum Sugar Factory  25/06/2018  132 100% asset sale  
Elbistan Sugar Factory  11/07/2018  74 100% asset sale  
Muş Sugar Factory  12/07/2018  57.5 100% asset sale  
Erzincan and Erzurum Sugar Factories  16/07/2018  72 100% asset sale  
Afyon Sugar Factory  17/08/2018  181 100% asset sale  
Bor Sugar Factory  20/09/2018  84 100% asset sale  
Alpullu Sugar Factory  30/11/2018  37.5 100% asset sale  
Other     
Hydrogen Peroxide Industry and Trade Inc.  09/07/2018  4.5 Sale of 28.2% of 
public shares  
Türkiye Petroleum Oil Distribution Co.  04/04/2017  134.7  Sale of 100% of 
public shares  
Mersin Free Trade Zone  08/11/2017  7,590  Sale of 21.26 % of 
public shares  
Note:  TOR = grant of operating rights.  
Source:  Information provided by the authorities.  
3.3.6   Government procurement  
3.3.6.1   Basic legal and institutional framework  
3.157.   Public procurement continues to be mainly governed by Law  No. 4734 of  2002 on Public 
Procurement (PPL) an d Law No.  4735 of 2002 on Public Procurement Contracts  (PPCL).179 The PPL 
establishes the principles and procedures to be applied in public procurements. The PPCL regulates 
the implementation of public procurement contracts awarded through the application o f procurement 
procedures carried out in accordance with the provisions of the PPL. The PPL covers all stages of 
procurement procedures, except for the execution and termination of contracts, which are covered 
exclusively by the PPCL. The PPL and the PPCL cover procurement undertaken at the central 
government and subcentral levels.  The scope of application of the PPL and the PPCL includes public 
supply contracts, public service contracts, and public works contracts.180 
3.158.   The PPL grants exemptions to the relevan t ministries for matters related to defence, security, 
or intelligence. Certain sectors or areas such as utilities, air transport, and R&D activities are also 
 
179 In addition, there are the following regulations: Regulation  on Implementation of Services 
Procurements; Regulation on Implementation of Goods Procurements; Regulation on Implementation of Works 
Procurements; Regulation on Implementation of Consultancy Services Procurements; Regulation on 
Implementation of Electron ic Procurement; Regulation on Administrative Applications against Procurements; 
Regulation on Framework Agreements; and Regulations on Inspection and Acceptance (Works, Services, 
Goods, Consultancy Services). WTO document WTO/TPR/S/331/Rev.1, 9  August  2016, para.  3.187.  
180 S. Togan, B.K. Onur Tas, and S. Alyanak (2017), "Public Procurement in Turkey" in 
A.C. Georgopulos  (ed.), The Internationalization of Government Procurement Regulation , February, 
pp. 189-220. Viewed at: https://academic.oup.com/book/5744/chapter/148891668 . WT/TPR/S/ 439 • Türkiye  
 
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 not covered by the  PPL.181 With respect to SOEs, any institution, organization, association, 
enterprise, or corporation in which more than half of the capital, directly or indirectly, together or 
separately, is owned by those within the scope of the PPL, is required to follow the r ules of the  PPL.182 
3.159.   Under the PPL, there are four procurement procedures: (i)  open, where all tenderers can 
submit their qualification documents and bids; (ii)  restricted, where only tenderers who, following 
an open invitation to pre -qualify, are evaluated as qualified and are invited by the contracting entity 
to submit tenders; (iii)  negotiated, where at least three tenderers are invited to submit their 
qualification documents and price offers; and (iv)  direct procurement183, where there is no need for 
the fulfilment of most requirements specified in the PPL such as advertisement of contract notice.184 
3.160.   An important recent procedural change to the government procurement regime concerns 
the introduction of e -tendering in 2019. Companies established in Türkiye, and foreign companies, 
are able to register their company and attach any required documents  at the Electronic Public 
Procurement Platform (EPPP or EKAP in  Turkish) included in the  EKAP website  
(https://ekap.kik.gov.tr/EKAP/Default.aspx?ReturnUrl=%2fEKAP%2f ), the centralized public 
e-procurement platform operated by the Public Procurement A uthority  (PPA). All tender notifications 
and related  tender documents are accessible online through the platform.185 In e-procurement, 
tenderers submit their electronic bids together with self -declarations about their qualifications in 
procurement goods, works , and services. Since 3  November  2022, the use of  e-procurement has 
become compulsory in open procedure and negotiated procedures on the grounds specified in 
Article  21 paragraph (b ), (c), and (f) of the PPL.  
3.161.   As indicated in Türkiye's previous Review, suppliers that believe they have suffered a loss of 
right or damage due to unlawful procedures or actions within the tendering process may file a 
complaint to the contracting entity and then an appeal to the PPA. Furthermore, all decisions of 
the PPA can be challenged before the courts.186 In 2020 and 2021 f urther changes were made to 
allow tenderers, candidates , and potential tenderers to use EKAP to submit complaints to the 
contracting authority and to submit appeals to the PPA. 
3.162.   There were no major changes during the review period to the institutional frame work for 
public procurement. P ublic procurement falls within the authority of the M oTF, which is responsible 
for core policy making, and a dedicated procurement authority, the PPA.187 The mandate of the PPA 
is to ensure the proper implementation of the PPL,  support participants in the procurement process, 
and provide legal resolution of disputes over public procurement. The Public Procurement 
Board  (PPB) is the PPA's main decision -making body. It examines complaints and may take 
corrective action and determi ne the remedies, cancel the tender decision, and terminate the tender 
proceedings, or decide that the complaint is irrelevant.188 The President of Türkiye directly appoints 
the PPB president and members. The PPA may provide proposals to the President with r espect to 
reciprocity in cases where it is established that domestic tenderers are prevented from participating 
in procurement proceedings in foreign countries. This provision has not been used thus far. The 
State Supply Office, an affiliate organization o f the MoTF, acts as a central purchasing body. 
However, public organizations are not obliged to purchase from the State Supply Office.189 
 
181 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, para.  3.190.  
182 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, para.  3.191.  
183 Applied in cases specified in Article  22 of the PPL.  
184 PPL, Articles 18 -22. 
185 Public Procurement Board Decision No.  2018/DK.D -357 of 13  November  2018 defines the procedures 
and principles of registering foreign real and legal persons on EKAP. Viewed at: 
https://ekap.kik.gov.tr/EKAP/Ortak/IhaleArama/index.html  (tender search engine), which can be found at the 
PPA website:  http://www.ihale.gov.tr/ . 
186 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, para.  3.195.  
187 Article  53 of the PPL establishes the PPA as an administratively and financially autonomous body with 
a link to the Ministry of Finance.  
188 S. Togan, B.K. Onur Tas, and S. Alyanak (2017), "Publ ic Procurement in Turkey" in 
A.C. Georgopulos  (ed.), The Internationalization of Government Procurement Regulation , February, 
pp. 189-220. Viewed at: https://academic.oup.com/book/5744/ch apter/148891668 . 
189 WTO document WT/TPR/S/331/Rev.1, 9  August  2016.  WT/TPR/S/ 439 • Türkiye  
 
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 3.3.6.2   Procurement market and statistics  
3.163.   The size of Türkiye's public procurement market, as a percentage of GDP, declined 
from 7.5% in 2017 to 3.3% in 2019 but grew to 4.1% in 2021.190 Government spending on goods, 
services, and works was estimated at TRY  300,673  million in 2021, compared with 
TRY 173,664  million in 2016.191 Since e -tendering started in early 2019, electronic proc urement has 
expanded and reached  30,198  tenders in 2021, compared with 17,359 in 2020.192 The value of 
e-procurement represented 58.0% of all procurement in 2021.193 
3.164.   Exemptions accounted for 11.0% of procurements in 2021 compared with 8.17% in  2016 
(Table  3.26). According to the authorities, 70% of the annual amount procured was open to foreign 
suppliers in 2021. Over the period 2016 -21, the percentage subject to a price advantage to domestic 
suppliers ranged from 42% to 50% of the amount open to foreign supp liers (Table  3.27). The vast 
majority of procurement is from Turkish suppliers, averaging 98% during the period, followed by 
suppliers from the  United  States and EU -27 (Table  3.28). 
Table 3.26 Procurement valu es, 2016 -21 
Year  PPL Direct procurement  Exemption  Total amount of public 
procurement  
Amount of 
contract 
(TRY  '000)  % Amount of 
contract 
(TRY  '000)  % Amount of 
contract 
(TRY  '000)  % Amount of 
contract 
(TRY  '000)  % 
2016 155,661,190  89.63  3,817,742  2.20 14,184,903  8.17 173,663,835 100 
2017 210,299,779  90.30  3,286,233  1.41 19,304,274  8.29 232,890,286  100 
2018 174,990,037  86.58  3,787,522  1.87 23,337,280  11.55  202,114,839 100 
2019 116,987,865  81.97  7,670,179  5.37 18,069,010  12.66  142,727,054 100 
2020 143,443,401  83.14  9,439,234  5.47 19,644,018  11.39  172,526,653 100 
2021 254,402,839  84.61  13,193,476  4.39 33,076,660  11.00  300,672,975 100 
Source:  Information provided by the authorities.  
Table 3.27 Domestic preferences, 2016 -21 
Year  Open to foreign suppliers 
(TRY  '000)  Price advantage for domestic suppliers in 
procurements open for foreign suppliers 
(TRY  '000 ) % 
2016 115,795,915  48,782,045  42.13  
2017 158,733,113  70,037,444  44.12  
2018 122,689,198  53,988,136  44.00  
2019 87,058,306  42,599,153  48.93  
2020 102,925,485  47,997,897  46.63  
2021 177,438,433  88,784,739  50.04  
Source:  Information provided by the authorities.  
Table 3.28 Major procurement suppliers, 2016 -21 
Year  Türkiye  EU-27 United  States  Other  
Amount of 
contract 
(TRY  '000)  % Amount of 
contract 
(TRY  '000)  % Amount of 
contract 
(TRY  '000)  % Amount of 
contract 
(TRY  '000)  % 
2016 167,385,853  98.55  864,388  0.51 12,945  0.01 1,582,907  0.93 
2017 226,097,126  98.47  524,456  0.23 41,691  0.02 2,940,780  1.28 
2018 193,053,303  97.34  2,753,089  1.39 15,089  0.1 2,505,835  1.26 
2019 134,462,526  99.56  266,232  0.20 11,334  0.01 316,783  0.23 
2020 160,377,716  98.34  1,062,446  0.65 6,354  0.004  1,640,903  1.01 
2021 283,166,402  98.50  170,529  0.06 3,396,922  1.18 745,646  0.26 
Source:  Information provided by the authorities.  
 
190 European Commission, Commission Staff Working Document:  Türkiye 2022 Report , p. 70. Viewed at:  
https://neighbourhood -enlargement.ec.europa.eu/turkiye -report -2022_en . 
191 Data provided by the authorities.  
192 European Commission, Commission Staff Working Document:  Türkiye  2022 Report , p. 70.  
193 Data provided by the authorities.  WT/TPR/S/ 439 • Türkiye  
 
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 3.165.   The number of appeals submitted to the PPA declined from 3,395  in 2016 to  2,343 in 2021, 
i.e. 3.25% of public procurement contracts in 2021 (Table  3.29). 
Table 3.29 Appeals to the Public Procurement Authority, 2016 -21 
Year  Number of complaints  % of public contracts subject to 
complaints  
2016 3,395  3.45 
2017 3,526  3.59 
2018 2,017  2.41 
2019 1,864  2.87 
2020 2,316  3.53 
2021 2,343  3.25 
Source:  Information provided by the authorities.  
3.3.6.3   National  preferences  
3.166.   As indicated in Türkiye's previous Review194, the PPL provides for two different kinds of 
national preference. First, a procuring entity may confine the participation of procurement 
proceedings s olely to domestic suppliers or contractors if the value of the contract in question is 
below certain thresholds. Second, regardless of the value of the contract, whether below or above 
the threshold, in procurement of service and works, up to a 15% price a dvantage may be granted 
for all domestic tenderers, and in procurement of goods, up to a 15% price advantage may be 
granted for tenderers who offer domestic products. However, this provision does not apply to 
domestic tenderers who participate in the tende r proceedings by forming joint ventures with foreign 
tenderers. The percentage of price advantage is determined solely by the contracting entity or by a 
related Ministry contracting entity within the range of 0 to 15%.  
3.167.   As a consequence of amendments made i n 2016, it has become mandatory to provide a 
price advantage of 15% in favour of tenderers offering domestic products in procurement of goods 
that are selected by the Ministry of Industry and Technology from among medium and high  
technology industry produc ts and that are included in the list declared by the PPA. It is also 
mandatory to provide a price advantage of 15% in favour of tenderers offering domestic software 
products. Moreover according to Article  63 of PPL, all or a portion of the machinery, materials, 
equipment, and software to be used in construction works may be required to be domestic goods. 
However, machinery, material , and equipment to be used in the work, which are selected from 
among medium -low, medium -high, and high technol ogy products by Ministry of Industry and 
Technology regarding machinery and equipment and by the Ministry of Environment, Urbanization 
and Climate Change regarding materials, by taking opinions of relevant institutions and 
organizations, and which are incl uded in the list declared by the PPA , must be domestic goods.  
3.3.6.4   Recent developments  
3.168.   Under its Eleventh Development Plan (2019 -23) (Section  2.2), Türkiye aims at increasing 
the domestic production of certain goods (e.g. chemicals, pharmaceuticals and medical devices, 
electronics, machinery, and electrical equipment), including through the use of the 15% domestic 
price advantage and offset practices in public procurement.195 The percentage of international 
tenders where domestic price advantage is applied increa sed from 37% in 2017 to 45% in 2021, 
while the overall value of such tenders also rose from 44% to 50% during the same period.196 A 
domestic price advantage was applied in 63% of suppl ies (46% of total value), 40% of work s (57% 
of total value), 21% of servi ces (33% of total value), and 79% of consultancy service tenders (84% 
of total value).197 
3.169.   For major infrastructure projects (e.g. bridges, airports, ports, and hospitals), the 
Government has increasingly held tenders on a build -operate -transfer (BOT) or pub lic-private 
partnerships (PPP) basis. According to some estimates, Türkiye has invested some TRY  1.1 trillion 
 
194 WTO document WT/TPR/S/331/Rev.1, 9  August  2016, paras.  3.197 -3.200.  
195 Presidency of Strategy and Budget, Eleventh Development Plan (2019 -2023) . Viewed at: 
https://www.sbb.gov.tr/kalkinma -planlari/ . 
196 European Commission, Commission Staff Working Document:  Türkiye 2022 Report , p. 71. Viewed at:  
https://neighbourhood -enlargement.ec.europa.eu/turkiye -report -2022_en . 
197 European Commission, Commission Staff Working Document:  Türkiye 2022 Report , p. 71.   WT/TPR/S/ 439 • Türkiye  
 
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 through 257 PPP projects.198 On the one hand, t he depreciation of the lira over the last few 
years  (Section  1.2.1) has raised the cost of these pro jects to taxpayers because the Government 
guarantees companies involved in such projects a minimum level of income , normally in hard 
currency. On the other hand, because of budget constraints, the Government would have not been 
able to afford some of these  costly projects by paying for them directly.199 
3.170.   Türkiye's recent RTA with Singapore and the revised RTA with Bosnia  and Herzegovina 
(Section  2.3.2) contain dedicated chapters on government procurement that provide for market 
access rights to foreign suppliers through provisions on national treatment and 
non-discrimination.200 Government procurement is not covered by the Türkiye -EU Customs Union. 
As an accession candidate country to the European  Union, Türkiye is required to have a procurement 
regime th at conforms to EU norms and regulations, i.e. the EU a cquis. 
3.3.7   Intellectual property rights  
3.171.   In 2022, Türkiye was the 3rd top innovation economy in the Northern Africa and Western  Asia 
Region and ranked 37th among the 132 economies featured in the Global Innovation Index  (GII), 
entering the top 40 for the first time. It is one of only two middle -income economies that registe red 
growth in total R&D and business R&D in 2020, with an increase of 5.2%. Türkiye tops the region 
in "creative outputs" (15th) and ranks 4th worldwide in "intangible assets", becoming a global leader 
in the indicators of industrial designs (1st), tradema rks (6th), and intangible asset intensity (15th). 
Istanbul and Ankara are among the top 100 GII Science and Technology Clusters (Table  3.30).201 
Table 3.30 GII rankings for Türkiye, 2019 -2022  
Year  GII ranking  Innovation inputs  Innovation outputs  
2019 41 45 41 
2020 51 52 53 
2021 49 56 49 
2022 37 49 33 
Source:  WIPO, Global Innovation Index 2022: Türkiye . Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_2000_2022/tr.pdf . 
3.172.   Türkiye is a net importer of intellectual property (IP). Exports of IP royalties and licensing 
fees remained stable between 2013 and 2017, oscillating between USD  80 million and nearly 
USD 230 million. Imports almost doubled between 2013 and 2021, when they reached over 
USD 2,500  million (Chart  3.4). 
 
198 Daily Sabah  (2022), "Turkey Makes $80  Billion Investment via Public -Private Partnership ", 
14 February. Viewed at: https://www.dailysabah.com/busines s/economy/turkey -makes -80b-investment -via-
public -private -partnership . 
199 The Economist  (2022), "Turkey's Public -Private Partnerships Are Pricier than Promised", 1  January. 
Viewed at: https://www.economist.com/europe/2022/01/01/turkeys -public -private -partnerships -are-pricier -
than-promised . 
200 Information provided by the authorities.  
201 The Global Innovation Index (GII) ranks world economies according to their innovation capabilities 
and consists of almost 80 indicators and aims to capture the multi -dimensional facets of innovation. WIPO, 
Global Innovation Index 2022 . Viewed at:  https://www.wipo.int/global_innovation_index/en/2022/ . WT/TPR/S/ 439 • Türkiye  
 
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 Chart  3.4 Charges for the use of intellectual property rights, 2013 -21 
(USD  million)  
 
Note:  Charges for the use of IP are payments and receipts between residents and non -residents for the 
authorized use of proprietary rights (such as patents, trad emarks, copyrights, industrial processes 
and designs including trade secrets, and franchises) and for the use, through licensing agreements, 
of produced originals or prototypes (such as copyrights on books and manuscripts, computer 
software, cinematographi c works, and sound recordings) and related rights  (such as for live 
performances and television, cable, or satellite broadcast).  
Source:  WTO Statistics.  
3.173.   WIPO statistics indicate an overall growth in the use of most forms of intellectual property 
rights  (IPRs) over the period 2017 -21 and a notable increase in trademark applications.202 The 
number of patents granted peaked in 2021 (Table  3.31). 
Table  3.31 Applications for trademarks, industrial designs, and patent s, and patents 
granted, 2017 -21 
 2017  2018  2019  2020  2021  
Trademark applications  
Resident  215,220  211,109  248,754  331,480  395,159  
Non-resident  32,260  33,373  33,693  32,212  39,247  
Total 247,480  244,482  282,447  363,692  434,406  
Abroad  81,544  74,705  90,388  93,348  109,610  
Industrial design applications  
Resident  39,255  35,462  39,239  42,073  59,353  
Non-resident  7,675  6,870  6,972  5,580  6,571  
Total 46,930  42,332  46,211  47,653  65,924  
Abroad  16,110  19,678  16,322  20,396  19,448  
Patent applications  
Resident  9,083  7,728  8,340  8,520  8,971  
Non-resident  380 310 217 238 242 
Total 9,463  8,038  8,557  8,758  9,213  
Abroad  2,074  1,632  1,707  1,590  1,897  
 
202 WIPO, Statistical Country Profiles: Turkey  (last update from December 2022). Viewed at: 
https://www.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=TR . 
102 98 81 89 112167 195 220 2281,5821,6861,6241,8821,7772,1142,1812,2992,648
05001,0001,5002,0002,5003,000
2013 2014 2015 2016 2017 2018 2019 2020 2021Exports
Source: [...]WT/TPR/S/ 439 • Türkiye  
 
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  2017  2018  2019  2020  2021  
Patents granted  
Resident  2,055  2,887  2,121  2,301  3,377  
Non-resident  143 285 185 134 262 
Total 2,198  3,172  2,306  2,435  3,639  
Abroad  836 816 867 943 771 
Source:  WIPO, Statistical Country Profiles: Turkey  (last update from December 2022). Viewed at: 
https://www.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=TR . 
3.174.   Türkiye started implementing its National Intellectual and Industrial Property Stra tegy during 
the period 2015 -2018. One of the most significant results of the Strategy was the new Industrial 
Property Code . Currently, Türkiye is implementing the 2019 -2023 Intellectual Property Strategy, 
which was jointly prepared by the Ministry of Cultu re and Tourism and the Turkish Patent and 
Trademark Office. The General Directorate of Copyright, as provided for the Eleventh Development 
Plan, is responsible for 13 policy measures contained in the chapter on IPRs, which aim at 
strengthening the legal fr amework and practice, developing an ecosystem that supports IPRs, and 
accelerating the commercialization of IPRs.  
3.175.   During the period under review, Türkiye undertook some initiatives on IP. For example, the 
Hezarfen project, launched in 2007, aims to help in crease the innovative culture in small and 
medium -sized enterprises (SMEs) and to create an IP strategy for SMEs to protect their inventions.203 
Under this project, a total of 759 companies participated in 28 projects in 25 different cities 
between  2007 and  2021. In 2022, the Project benefited 114 companies in different provinces. 
In 2018, the  Ministry of Culture and Tourism, the Turkish Patent and Trademark Office, and WIPO 
established  the IP Academy to raise awareness about  IP and provide theoretical and practical 
training in accordance with international norms.204 Additionally, several state aid programmes are 
in place to support and promote  IP protection as well as R&D and innovation (Section  3.3.1).  
3.3.7.1   Legal and institutional framework  
3.176.   The m ain institutions responsible for IP are the General Directorate of Copyright in the 
Ministry of Culture and Tourism (for copyright and related rights)205; the Turkish Patent and 
Trademark Office for patents, utility models, trademarks, geographical indicati ons, designs, and 
topographies of integrated circuits;206 and the M AF for plant breeders' rights.  As of 1  January  2020, 
all physical document transactions before Turkish Patent and Trademark Office  were terminated and 
the new electronic application system ( EPATS) was adopted, and as of July 2020, the new electronic 
notification system (ETEBS) was introduced.  
3.177.   There have been some changes to the main IP laws, decree -laws, and regulations in 
Türkiye  since the last Review. The key features of the main IP laws an d regulations are summarized 
in Table  A3.6. 
3.178.   The new Industrial Property Code entered into force on 10 January  2017.207 It replaces a 
series of individual laws, executive decrees, and regulations enacted in 1995 to comply with the 
provisions of the Türkiye -EU Customs Union, and it covers all matters related to trademarks, 
geographical signs, designs, patents, utility model s, and traditional product names harmonizing 
national legislation with EU standards. The Industrial Property Code also covers applications, 
registrations, and post -registration processes and criminal sanctions concerning the violation of 
these rights. The main novelties are the shortening of the opposition periods for designs (from  six 
to three months) and trademarks (from three to two months), as well as the possibility to register 
sound and colour trademarks.208 
3.179.   Regarding traditional products, a provision introduced the protection of "Traditional 
Speciality Guaranteed" for the traditional goods ' names that cannot be considered as appellation of 
 
203 Viewed at: https://www.turkpatent.gov.tr/en/news/hezarfen -bursa -yalova . 
204 Regulation of the Intellectual Property Academy, Article  4. Official Gazette  (2019), No.  30948, 
14 November. Viewed at: https://www.resmigazete.gov.tr/eskiler/2019/11/20191114 -1.htm . 
205 General Directorate of Copyright. Viewed at: https://www.telifhaklari.gov.tr/Misyon -ve-Vizyon . 
206 Viewed at: https://www.turkpatent.gov.tr/en/about -us. 
207 Law No.  6769 (Industrial Property Code), Official Gazette  (2017), No.  29944, 10  January. Viewed at: 
https://turklegal.com.tr/resources/public/en/legal/Turkish -Industrial -Property -Code-in-English.pdf . 
208 Industrial Property Code, Article  4. WT/TPR/S/ 439 • Türkiye  
 
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 origin nor a designation of origin but are proven to have been traditionally used in the relevant 
market. The regi stration period of GIs has been shortened, by decreasing the publication period that 
is open to third -party objections from six to three months; and an objection right was granted to 
the applicant, against the decisions of the Turkish Patent and Trademark Office.  
3.180.   The Department of Geographical Indications was created at the Patent and Trademark Office. 
Personnel from several institutions (such as the Ministry of Trade, the MAF, the Ministry of Justice, 
various Chambers of Commerce and Industry, universities , and SMEs) have been trained in order to 
strengthen specialization in the registration. An electronic database of GIs is available to the public.  
3.181.   The new Industrial Property Code also introduced new provisions related to designs for 
compatibilit y with the EU Community Design Regulation. Ex  officio cancel lation  was introduced for 
design applications that are not new, thus, aiming to protect genuine design applications.  
3.182.   On patents, new provisions were introduced in order to accelerate the patent gr anting 
processes and to eliminate the administrative bottlenecks. The non -examination patent system has 
been abolished. Framework provisions were introduced for the ownership of patent rights that are 
generated at the projects supported by the governmental  institutions/bodies in order to incentivize 
the inventions at these projects , promote the participation in these R&D initiatives , and encourage 
the cooperation between governmental institutions/bodies and commercial firms.  
3.183.   Article  121 of the Industrial Pr operty Code stipulates that the provisions on employee 
inventions shall be applied to the inventions made in the context of scientific studies and research 
conducted in higher education institutions that are defined in Article  3.1.c of the Higher Education  
Law, and in higher education institutions associated with the Ministry of National Defence and/or the 
Ministry of the  Interior.  
3.184.   Türkiye's Industrial Property Code contains provisions on compulsory licences (CLs) and 
regulates the application and implement ation of compulsory licences (CLs) . The application for a CL 
is made either before a Court, which initiates procedures if the conditions set in Article  129 are met , 
or before the Competition Authority. In case s of public interest ( e.g. public health  and/or  national 
security) , the President of the Republic may decide on granting CL s. As of October 2022, the only  CL 
had been granted in 1998 , under previous legislation.  
3.185.   Further to the new Industrial Property Code and various incentive programs implemented 
by the Technological and Research Council of Türkiye (TÜBİTAK)  (Section  3.3.1.2) , the number of 
patent applications originating from universities has been increasing. In recent years, the level of 
awareness on IPRs and the innovation ecosystem has improved in Türkiye. As a result, the 
innovation ecosystem, of which universities and IP are indispensable and significant components, 
has been strengthened and the use of IPRs has increased. Patent applications from universities have 
grown from zero i n 2002 to the peak of 966 in 2019. In 2021, universities submitted 855 patent 
applications.209 
3.186.   As a result of the adoption of the new Industrial Property Code, secondary legislation has 
been enacted, including the Regulation on the Implementation of Industr ial Property Code210; the 
Regulation on the Re -examination and Evaluation Department Boards of the Turkish Patent and 
Trademark Office211; the Regulation on Employee Inventions, Inventions Realized within Higher 
Education Institutions and Inventions Arisen f rom Projects Supported by Public Authorities212; the 
Regulation on the Emblems of Geographic Indications and Traditional Product Names213; and the 
 
209 Information provided by the authorities.  
210 Regulation on the  Implementation of Industrial Property Code, Official Gazette  (2017), No.  30047, 
24 April, as amended by Regulations published in Official Gazette  (2017), No.  30223, 27  October,  and 
Official  Gazette  (2019), No.  30825, 8  July. Viewed at: https://wipolex.wipo.int/en/legislation/details/17697 . 
211 Regulation on the Re -examination and Evaluation Department Boards of the Turkish Patent 
and Trademark Office, Official Gazette  (2017), No.  30064, 12  May. Viewed at: 
https://wipolex.wipo.int/en/legislation/details/18447 . 
212 Regulation on Employee Inventions, Inventions Realized within Higher Education Institutions, and 
Inventions Aris en from Projects Supported by Public Authorities, Official Gazette  (2017), No.  30195, 
29 September. Viewed at: https://wipolex.wipo.int/en/legislation/details/18458 . 
213 Regulation on the Emblems of Geographic Indications and Traditional Product Names, Official 
Gazette  (2017), No.  30285, 29  December. Viewed at: https://wipolex.wipo.int/en/legislation/de tails/18456 . WT/TPR/S/ 439 • Türkiye  
 
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 Regulation on the Examination, Registry and Discipline of Patent Attorneyship and Trademark 
Attorneyship.214 
3.187.   With respect to parallel imports, the Industrial Property Code provides for international 
exhaustion for patents, trademarks, industrial designs, utility models, patents, geographical signs, 
and traditional product names.215 The Law for Topographies of Integra ted Circuits contains provisions 
that adopt the international exhaustion doctrine.216 
3.188.   Türkiye's Copyright Law, known as Law No.  5846 on Intellectual and Artistic Works, 
amended in 2014217, has undergone changes. On 25  December  2021, Article  72 was amended to  
reflect the EU Information Society Directive and cover all works, performances, phonograms, 
productions , and broadcasts. Therefore, those who produce, put for sale, sell, or possess products 
and tools (e.g. password cracking devices and software) aimed at  deactivating encrypted broadcasts 
or to circumvent additional technological measures developed to prevent illegal reproduction of a 
computer program me218 can be prosecuted . Currently, the maximum prison term for copyright 
infringement is six years.  
3.189.   Article  44 of the Copyright Law provides that natural and legal persons who manufacture or 
import for commercial purposes any kind of materials carrying works such as blank video cassettes, 
audio cassettes, computer discs, CDs, DVDs , and technical equipment for t he reproduction of 
intellectual and artistic works are obliged to collect every month an amount to be determined by the 
Presidency, not exceeding 3% of the manufacturing or importation costs, and deposit it in a special 
account to be opened in a national b ank in the name of the Ministry of Culture and Tourism. The 
Presidential Decision, published on the Official Gazette No.  31058  on 4 March  2020, provides the 
definitions of technical equipment and the range of the percentages. Smart mobile phones were also 
included in the scope of this decision for the first time in Türkiye.  
3.190.   This measure aims at protecting the creative industries, as Türkiye is one of the 
top 10 performing developing economies in trade in creative goods.219 Nevertheless, according to 
some sources, there are long -standing problems concerning the governance and management of 
collective management organizations because foreign right holders are not allowed to become full 
members or participate in the decision -making process.220 On 7  April 2022,  the Regulation on 
Professional Associations in the Field of Copyright was adopted with the objective of making 
collecting societies more effective and transparent, and adapting to technological and international 
developments, particularly the relevant EU directive 2014/26/EU.221 
3.191.   In order to address issues encountered in the copyright regime, the secondary legislation 
was amended to make the system more effective. The regulation on "The Authorization Certificate 
to be Given to Collecting Societies" entered into force on 1  January  2021 and the regulation "On the 
Authorization Certificate to be Given by the Owners of Intellectual and Artistic Works" was abolished. 
In order to strengthen the representation capabilities of collecting societies in licensi ng activities, a 
new regulation is being prepared in accordance with the Directive No. 2014/26. 
3.192.   Training activities on copyrights conducted at the Copyright Training Centre  since 2019  have 
reached more than 10,000 members of the judiciary, academics, lawye rs, students, consumers, 
 
214 Regulation on the Examination, Registry and Discipline of Patent Attorneyship and Trademark 
Attorneyship, Official Gazette  (2021), No.  31447, 7  April. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021/04/20210407 -19.htm . 
215 Law No.  6769 (Industrial Property Code), Article  152. Viewed at: 
https://turklegal.com.tr/resources/public/en/legal/Turkish -Industrial -Property -Code-in-English.pdf . 
216 Law No.  5147 on Integra ted Circuits, Article  12.c (International Exhaustion).  
217 Law No.  5846 of 5  December  1951 on Intellectual and Artistic Works (as amended by Law  No. 6552 
of 10 September  2014). Viewed at: https://wipole x.wipo.int/en/text/440050 . 
218 WTO document WT/TPR/M/331/Add.1, 9  May 2016, p.  83. 
219 United Nations Conference on Trade and Development (UNCTAD) (2019) Creative Economy Outlook: 
Trends in International Trade in Creative Industries 2002 -2015 Country Profiles 2005 -2014, p. 9. Viewed at: 
https://unctad.org/webflyer/creative -economy -outlook -trends -international -trade -creative -industries . 
220 European Commission Staff Working Document (2021), Report on the Protection and Enforcement of 
Intellectual Property Rights in Third Countries , p. 30. Viewed at: 
https://tr ade.ec.europa.eu/doclib/docs/2021/april/tradoc_159553.pdf . 
221 Regulation on Professional Associations in the Field of Copyright. Viewed at: 
https://www.resmigazete.gov.tr/eskiler /2022/04/20220407 -17.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 enforcement units, provincial inspection commissions, collective management organi zations , and 
citizens. The Copyright Training Centre has signed cooperation agreements with 14 universities on 
IP and creative and cultural industrie s. 
3.3.7.2   International agreements and conventions  
3.193.   In May 2014, Türkiye accepted the Protocol Amending the TRIPS  Agreement under which 
special CLs for the export of medicines to countries with insufficient or no  manufacturing capacities 
in the pharmaceutical sect or will become a permanent part of the TRIPS  Agreement. As at 
mid-October 2022, Türkiye had not made any notifications to the WTO about the use of the special 
compulsory licensing system. Türkiye is a signatory to several IP conventions and treaties. It ratified 
the WIPO  Marrakesh Treaty to Facilitate Access to Published Works for Persons who are Blind, 
Visually Impaired or Otherwise Print Disabled in 2021.222 
3.194.   The criteria for the competency of the International Searching and International Preliminary 
Examin ing Authority, as provided by the Patent Cooperation Treaty (PCT), were duly fulfilled, and 
the Turkish Patent and Trademark Office was accepted as an authority in the General Assembly of 
the World Intellectual Property Organization (WIPO) on 6  October  2016. 
3.195.   During the review period, Türkiye modified the scope of some of its pre -existing legal 
commitments. In this regard, on 18  October  2019 the Government withdrew the declaration made 
under Article  14.5 of the Protocol Relating to the Madrid Agreement Conce rning the International 
Registration of Marks (Madrid Protocol).223 This means that trademark owners may register 
trademarks in Türkiye via a subsequent designation filed through WIPO, also in respect of 
international registrations (basic marks) dated befor e the implementation date of the Madrid System 
(1 January  1999, the date on which the Madrid Protocol entered into force in Türkiye). Furthermore, 
since 2021 Türkiye has been integrated to the Madrid System's online interface, which allows for 
internationa l trademark registration applications to be completed directly and in a shorter time, as 
well as facilitating the post -registration management.224 
3.196.   Even though Türkiye's accession negotiations to the European  Union have been at a 
standstill  since 2018 (Section  2.3.2.1.1), Türkiye continues to participate in a joint Türkiye -EU 
Intellectual Property Rights (IPR) Working Group on institutional, legislati ve, enforcement, and 
public -awareness -related issues. Working Group meetings are held at least once a year, and some 
meetings are open to IPR  stakeholders from the private sector.  As indicated in Türkiye's previous 
Review, since legislative alignment is at  an advanced level, most of the discussions within the group 
have been aimed at enhancing implementation, through exchange of best practices.  
3.3.7.3   Border measures and enforcement  
3.197.   The General Directorate of Customs in the Ministry of Trade remains responsible fo r border 
measures. T he Ministry of Culture and Tourism's General Directorate of Copyright and its regional 
representatives are responsible for identifying cases of piracy and acting on them.225 
3.198.   The General Directorate of Customs has the authority to suspend  customs transactions for 
goods considered as infringing IP rights either based on an application by a right holder or its 
representative, or on its own initiative. In ex officio  cases, the Directorate must identify the right 
holder and an application need s to be submitted within three  working days for the detention or 
suspension of the release of the goods to continue.  
 
222 Law No.  7299, adopted on 11  March  2021. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021/03/20210320 -3.htm . 
223 WIPO, Information Notice No.  59/20 19, 28  October  2019. Viewed at: 
https://www.wipo.int/edocs/madrdocs/en/2019/madrid_2019_59.pdf?utm_source=WIPO+Newsletters&utm_ca
mpaign=05a0f3781e -
EMAIL_CAMPAIGN_2019_10_28_11_08&utm_medium=email&utm_term=0_bcb3de19b4 -05a0f3781e -
255728405 . 
224 See full list on WIPO website. WIPO, Madrid e -Filing: Participating IP Offices . Viewed at: 
https://www.wipo.int/madrid/en/how_to/efile/offices.html . 
225 EIU, Turkey: IPR Overview . Viewed at: 
http://country.eiu.com/article.aspx?articleid=781641061&Country =Turkey&topic=Regulation&subtopic=Intelle
ctual+property+and+e -commerce&subsubtopic=IPR+overview&aid=1&oid=781641061 . WT/TPR/S/ 439 • Türkiye  
 
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 3.199.   During the review period, the majority of border measures were initiated by the right 
holders , showing an increase in collaboration between  right holders and customs. Right holders may 
submit Applications for Action online. Chart 3.5 shows the number of applications received by the 
General Directorate of Customs.  
Chart 3.5 The number of applicati ons for action, 2017 -21 
(No.) 
 
Source:  General Directorate  of Customs . 
3.200.   The main categories of detained articles in 2021 were perfumes and cosmetics (41 .16%), 
electronics and computer equipment (13 .34%), vehicle spare parts and accessories (9 .52%), and 
cigarettes (6 .34%).226 
3.201.   The number of seizures undertaken by the General Directorate of Customs increased from 
529 in 2017 to 819 in 2021  (Chart  3.6). The total number of IPR seizures increased by 35% in 2021 
compared to 2020. The total number of the art icles detained shows a remarkable increase of 25% 
in 2021 compared to the previous year.  
Chart 3.6 IPR seizures, 2017 -21 
 
Source:  General Directorate of Customs.  
 
226 Information provided by the authorities.  
1,9152,1792,3162,2282,431
05001,0001,5002,0002,500
2017 2018 2019 2020 2021Chart 3.[TUR]   The number of applications for action
(No.)
Source: Directorate of Customs, Ministry of Trade.
529605752
606819
4.16.613.8
8.110.1
0246810121416
0100200300400500600700800900
2017 2018 2019 2020 2021Number of cases Number of articlesChart 3.[TUR]   IPR seizures
(No. of cases)(No. of articles 
in million)
Source: ????WT/TPR/S/ 439 • Türkiye  
 
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 3.202.   Despite recent legislative changes, concerns have been expressed regarding overall 
IP protection and enforcement in Türkiye227, and that Türkiye's geographic location makes it a major 
transit hub for counterfeit goods coming from China into European and Middle  Eastern markets.228 
According to a recent report written jointly by the European  Union Intellectual Property Office 
(EUIPO) and the OECD229, Türkiye was described as one of the main provenances of dangerous 
counterfeit goods destined for the European  Union considering both the global seize d value and the 
number of global customs seizures. Similarly, in a 2018 report Türkiye  was among the top three 
sources of counterfeit and pirated goods worldwide.230 
3.203.   The institutional capacity of the General Directorate of Customs was strengthened by the 
EU Project "Border Enforcement of IPR", which was implemented between December 2015 and 
October  2017 with an approximate budget of EUR  1.5 million. The Project delivered 12 in -house 
trainings, 3  regional seminars , and 2 national seminars for customs officers  and other relevant 
government institutions and civil society. Additionally,  a short film was created and aired on popular 
TV channels and websites to raise awareness about the dangers of counterfeiting; 3,000 posters 
targeting different groups of the soci ety were produced; 10,000 brochures were distributed to 
customs officers; and a Product Identification Manual was developed to facilitate the daily work of 
customs officers.231 
3.204.   Türkiye has 23 active courts across the country that specialize in IP -related di spute cases: 
14 are civil IPR courts and 9 are criminal  IPR courts. IP cases in other geographical areas are handled 
by general civil courts and general criminal courts. This is possible thanks to Law No.  7251 Amending 
the Civil Procedure Code and Some Oth er Laws,  which entered into force in 2020.  According to the 
new Law, where there are no civil or criminal courts for intellectual and industrial property rights, 
the jurisdiction of the civil and criminal courts of first instance should be competent when d etermined 
by the Council of Judges and Prosecutors upon the recommendation of the Ministry of Justice, 
regardless of the provincial or district boundaries.  Furthermore, public prosecutors ' offices in 
22 different courthouses specialize in handling IP investigations.  
3.205.   Right holders have the possibility to ask for the following civil measures in civil courts of first 
instance: precautionary measures; prevention or cessation of infringement; damages; confiscation 
of the products and equipment/machinery use d in the production of pirated and counterfeit goods; 
or transfer of ownership, or destruction, of the products and the means of production seized. The 
average length of cases in specialized civil IP courts was 357 days in 2021 (377 days in 2014). The 
average duration of criminal cases was 237 days in  2021 (compared with 249 days in 2014).232 
3.206.   On 1  January  2019, mediation for commercial disputes regarding compensation claims 
became mandatory in Türkiye. As a result, IP holders must first undergo mandatory med iation 
proceedings before filing a lawsuit in relation to a commercial payment claim. This aims at fixing 
numerous backlogs in the judicial system, in which IPR cases tend to take a least a year to complete 
and it is not unusual for cases to exceed the sta tute of limitations and therefore be dropped.233 
In 2021, 143,636 cases were initiated, 66,559 of which reached an agreement.234 
3.207.   The amended Regulation on the Procedures and Principles Regarding the Banderole 
Requirement entered into force on 14  January  2021 and updated the procedures and principles of 
mandatory and optional banderole (strip stamp) requirements to combat piracy and 
IPR infringements. A banderole is the holographic security label or digitally produced security strip 
 
227 For example, in 2022, the Office of the U.S. Trade Representative kept Türkiye on its annual W atch 
List of countries, arguing that Türkiye has insufficient protection against unfair commercial use and an 
insufficiently effective mechanism to address online piracy.  
228 Office of the U.S. Trade Representative (2021), Review of Notorious Markets for Cou nterfeiting and 
Piracy , p. 49. Viewed at: 
https://ustr.gov/sites/default/files/IssueAreas/IP/2021%20Notorious%20Markets%20List.pdf . 
229 OECD and EUIPO (2 022), Dangerous Fakes: Trade in Counterfeit Goods that Pose Health, Safety and 
Environmental Risks , p. 48. Viewed at: https://www.oecd.org/publications/dangerous -fakes -117e35 2b-en.htm . 
230 OECD and EUIPO (2018), Why Do Countries Export Fakes? The Role of Governance Frameworks, 
Enforcement and Socio -Economic Factors , p. 17. Viewed at: https://www.oecd.org/gov/why -do-countries -
export -fakes -9789264302464 -en.htm . 
231 Information provided by the authorities.  
232 WTO document WT/TPR/M/331/Add.1, 9  May 2016.  
233 EIU. Viewed at: http://www.eiu.com . 
234 Information provid ed by the authorities.  WT/TPR/S/ 439 • Türkiye  
 
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 that is affixed on the repr oduced copies of works and non -periodical publications and that 
disintegrates and loses the properties of the material to which it is attached, if dismantled.235 
3.208.   In accordance with Article  50 of the Turkish Criminal Code, prison sentences of more than 
one year cannot be converted into fines. Judges have the authority to provisionally close facilities 
and seize equipment used to produce illegal copies once a case goes to court. The police can seize 
pirated material in contravention of the banderole requirem ents or without a banderole on the spot, 
without needing a court decision.  
3.209.   IP crimes and penalties are pursuant to various IP laws and are both civil and criminal in 
nature. Various civil remedies apply to a range of IP violations. Operational activities a nd the fight 
against crime and criminals are carried out by the General Directorate of Security within the 
framework of the relevant legislation in order to protect I PRs. Details on nationwide operations 
related to copyright and industrial property crimes are contained in Tables  3.32 and 3.33 , 
respectively.  In Türkiye's 81 provinces, Department of Intellectual Property Crimes Bureaus have 
been established under the Security Branch Offices. Personnel are regularly informed about new 
crime methods , and traini ng activities take place frequently. Awareness activities are also carried 
out in order to inform citizens and to get their support.236 
Table 3.32 Nationwide operations related to copyright crimes  carried out by police , 
2020-22 
 2020  2021  Up to 31  October  2022  
Number of operations  598 540 866 
Number of suspects processed  658 587 904 
Number of articles  582,300 430,651 523,183 
Source:  Information provided by the authorities.  
Table 3.33 Nationwide operations related to industrial property crimes  carried out by 
police , 2020 -22 
 2020  2021  Up to 31 October  2022  
Number of operations  4,203 4,937 3,772 
Number of suspects processed  4,495 5,250 9,935 
Number of articles  9,970,813 11,126,405 14,266,899 
Source:  Information provided by the authorities.  
 
 
235 As seen on https://www.mondaq.com/turkey/copyright/1027332/ministry -introduces -significant -
amen dments -to-the-banderole -requirement . 
236 Information provided by the authorities.  WT/TPR/S/ 439 • Türkiye  
 
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 4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.1   Features  
4.1.  Agriculture continues to play a fundamental role in Türkiye's economy and according to 
information provided by the authorities accounted for 5.5% of GDP and 17.2% of total employment 
in 2021. Türkiye's diverse climatic and geographic conditions allow it to produce a wide variety of 
agricultural and horticultural products. It leads the world in the production of hazelnuts, raisins, 
dried figs, and apricots.1 In addition, it is a major producer of wheat, sugar beets, milk, poultry, 
cotton, tomatoes, and other fruits and vegetables.2 Türkiye is the world's seventh -largest agricultural 
producer, ranks first in Europe in terms of agricultural area, is self -sufficient in food production, and 
is a net exporter of agricultural products.3 According to the authorities, Türkiye also has a 
comparative advantage in trade with its fertile soils, proximity to export markets, and high -value 
production; it exports 1,914 agr icultural products to 194 countries. Most exports are products for 
consumption, while most imports are destined for further processing.  
4.2.  Total agricultural output (the sum of the value of crops, livestock, and processed agricultural 
products) was on a growi ng trend during the review period (Section  4.1.2). The increase in 
agricultural production has been connected to increased irrigated area and the opening of inactive 
arable land to sustainable production.  
4.3.  In 2021 Türkiye had an estimated  38.1 million hecta res (ha) of agricultural land, 
14.6 million  ha of pastures and meadows, and 23.1  million  ha of forest.4 Its agricultural land 
comprises approximately one  third of Türkiye's  land area, of which half is covered by field crop 
products, including cereals. Ani mal grazing uses roughly one  third of the agricultural land.5 Türkiye  
has nearly 3  million agricultural holdings with an average size of 6  ha; small -scale or family farms 
still predominate. Nearly 65% of farmers hold less than 5  ha of land.6 
4.1.2   Production  
4.4.  During the review period, the value of crop production continued to increase, peaking at 
TRY 305 billion in 2021 (TRY  119 billion in 2016) (Table  4.1). The largest contributor to crop 
production was the cereals subsector, accounting for 43.4% of total crop production value in  2021; 
wheat, maize, and barley led this subsector. Fruits, beverage s, and spice crops are also important 
in terms of their crop production value, accounting for 36.9% in 2021 (33.2% in 2016); the largest 
earners were stone fruits and ha zelnuts (Table  4.1). 
 
1 FAO (2021), Digital Agriculture Profile: Turkey . Viewed at: 
https://www.fao.org/3/cb3954en/cb3954en.pdf . 
2 OECD, Agricultural Policy Monitoring and Evaluation 2022: Reforming Agricultural Policies for Climate 
Change Mitigation . Viewed at: https://www.oecd -ilibrary.org/docserver/c2e35ce5 -
en.pdf?expires=1662967922&id=id&accname=ocid54015567&checksum=CEC5 5497186CDBFA8E719AA35F346
2AD. 
3 Ministry of Agriculture and Forestry (MAF) (2022), Administrative Annual Report 2021 . Viewed at: 
https://www.tarimorman.gov.tr/SGB/Belgeler/Bakanl%C4%B1k_Faaliyet_Raporlar%C4%B1/TOB%202021%20
YILI%20%C4%B0DARE%20FAAL%C4%B0YET%20RAPORU.pdf . 
4 MAF (2021), Towards Sustainable Food Systems: National Pathway of Turkey . Viewed a t: 
https://www.tarimorman.gov.tr/ABDGM/Belgeler/Uluslararas%C4%B1%20Kurulu%C5%9Flar/NATIONAL%20P
ATHWAY%20O F%20TURKEY_29%20Kas%C4%B1m.pdf . 
5 OECD (2021), Building Agricultural Resilience to Natural Hazard -Induced Disasters: Turkey Case 
Study . Viewed at: 
https://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=TAD/CA/APM/WP(2020)26/FINAL&do
cLanguage=En . 
6 FAO (2021), Digital Agriculture Profile: Turkey .  WT/TPR/S/ 439 • Türkiye  
 
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 Table  4.1 Major crop production, 2016 -21 
(TRY million)  
 Production value  (% of total)  
2016  2017  2018  2019  2020  2021  2016  2021  
Crop production (Total)  117,639  135,885  159,142  197,455  246,017  306,373  100 100 
Cereals and other products  46,387  56,119  62,215  79,174  98,170  133,813  39.4 43.7 
 Cereals, of which:  28,105  31,705  33,788  42,501  58,185  75,862  23.9 24.8 
 Wheat  17,179  19,424  19,790  23,913  33,539  43,428  14.6 14.2 
 Maize  4,330  4,325  4,873  6,417  8,413  14,151  3.7 4.6 
 Rice in the husk  1,440  1,645  2,237  2,946  3,777  4,442  1.2 1.4 
 Barley  4,688  5,744  6,286  8,363  11,154  12,314  4.0 4.0 
 Potatoes; dried 
 leguminous vegetables; 
 edible roots and tubers, of 
 which:  6,683  8,153  9,776  14,148  12,510  14,569  5.7 4.8 
 Potatoes  3,064  3,422  4,746  9,392  6,210  6,987  2.6 2.3 
 Dry pulses  3,619  4,729  5,027  4,753  6,296  7,577  3.1 2.5 
 Oil seeds  4,278  4,816  5,826  7,768  10,646  16,909  3.6 5.5 
 Sunflower  2,988  3,663  4,109  5,243  7,040  12,786  2.5 4.2 
 Tobaccoa 1,081  1,451  1,379  1,450  1,498  1,979  0.9 0.6 
 Sugar beetsa 2,203  4,484  4,159  5,832  8,220  7,329  1.9 2.4 
 Fodder crops  14 11 12 12 9 11 0.0 0.0 
 Raw materials used in 
 textiles, cotton (raw)  3,850  5,329  6,991  7,111  6,820  16,861  3.3 5.5 
 Plants used in perfumery, 
 in pharmacy or for similar 
 purposes and fodder crops 
 seed 172 171 284 354 281 293 0.1 0.1 
Vegetables  31,711  33,846  41,397  50,448  55,284  59,398  27.0 19.4 
 Bulb and root vegetables  3,486  3,102  3,785  5,625  6,609  6,310  3.0 2.1 
 Vegetables cultivated for 
 their fruits, of which:  25,727  28,074  34,724  40,647  44,277  47,633  21.9 15.5 
 Tomatoes  12,671  13,811  18,306  20,000  21,453  22,845  10.8 7.5 
 Cucumber  2,098  2,450  2,722  3,170  3,411  3,939  1.8 1.3 
 Pepper  3,008  3,419  4,051  6,100  5,854  6,831  2.6 2.2 
 Leguminous vegetables  .. .. 2,382  3,106  3,315  3,597  0.0 1.2 
 Other vegetables n.e.c.  2,497  2,670  2,888  4,177  4,398  5,455  2.1 1.8 
Fruits, beverage and spices 
crops  39,541  45,920  55,531  67,833  92,562  113,163  33.6 36.9 
 Grapes  3,717  4,079  4,691  6,123  7,870  7,678  3.2 2.5 
 Citrus, pomes, stones, 
 nuts and other fruits, of 
 which:  32,812  38,666  46,750  56,646  79,288  95,547  27.9 31.2 
 Bananas, kiwi s, 
avocado s, figs .. .. 2,899  3,983  5,445  7,836  .. 2.6 
 Citrus fruit s .. .. 4,602  4,869  6,606  8,772  .. 2.9 
 Oranges  1,074  1,309  1,484  1,767  1,950  3,520  0.9 1.1 
 Mandarins  0,839  1,129  1,344  1,239  2,016  2,844  .. 0.9 
 Pome fruits  .. .. 6,635  7,851  10,856  13,327  .. 4.3 
 Apples  2,958  3,568  5,261  6,113  8,716  10,668  2.5 3.5 
 Stone fruits  .. .. 6,350  9,451  11,949  15,938  .. 5.2 
 Peaches  1,160  1,378  1,425  2,097  2,811  4,166  1.0 1.4 
 Cherries  2,113  2,528  2,104  3,368  4,092  4,378  1.8 1.4 
 Other fruits    2,519  3,573  4,346  6,696  0.0 2.2 
 Strawberries  1,002  1,226  1,494  2,216  2,538  4,028  0.9 1.3 
 Olives and other nuts  .. .. 23,744  26,919  40,086  42,978  .. 14.0 
 Olives 5,066  5,857  5,760  5,400  5,804  9,464  4.3 3.1 
 Almonds  0,697  0,845  1,115  2,015  2,414  2,946  .. 1.0 
 Hazelnuts  4,497  6,695  5,367  11,077  12,445  15,686  3.8 5.1 
 Walnuts  2,872  3,339  3,775  4,517  6,105  8,024  2.4 2.6 
 Pistachios  2,478  1,463  6,938  2,922  12,238  5,297  2.1 1.7 
 Spices, not processed  622 575 610 860 768 4,326  0.5 1.4 
 Tea 2,390  2,600  3,480  4,205  4,636  5,612  2.0 1.8 
.. Not available.  
a 2021 data are provisional.  
Source:  Turkish Statistical Institute, Data Portal for Statistics: Agriculture . Viewed at: 
https://data.tuik.gov.tr/ . 
4.5.  Animal production more  than doubled from 2016 to 2020 and was supported mainly by border 
measures, breeding programmes, and investment  (in terms of total agriculture value, animal 
production continuously outperformed crop production (Tables  4.1 and  4.2)). In 2020, the 
productio n of animal  products  outpaced the production of livestock (Table  4.2).7 Türkiye ranks first 
 
7 Animal production refers to the sum of livestock production and prod uction of animal products.  WT/TPR/S/ 439 • Türkiye  
 
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 in Europe and is among the top 10 countries in the world regarding sheep and goat numbers.8 
Türkiye is also competitive i n poultry and ranks second  in terms of production in  Europe.9 
Table  4.2 Major animal product ion, 2016 -20 
(TRY million)  
  Production value  (% of total)  
2016  2017  2018  2019  2020  2016  2020  
Animal production (total)  178,108  219,243  260,340  313,545  369,865  100 100 
Livestock production  of which:  89,866  117,797  146,184  165,318  195,239  50.5 52.8 
 Sheep  17,174  22,281  29,685  37,247  49,665  9.6 13.4 
 Goats  4,702  5,584  7,261  9,082  10,827  2.6 2.9 
 Cattle  62,228  83,752  103,303  112,113  124,655  34.9 33.7 
 Buffaloes  489 578 754 751 936 0.3 0.3 
 Horses  128 116 101 18 75 0.1 0.0 
 Hens 4,679  4,941  4,649  5,518  8,298  2.6 2.2 
Animal products of which:  88,242  101,447  114,156  148,227  174,626  49.5 47.2 
 Milka 24,319  28,807  35,023  43,653  55,277  13.7 14.9 
 Meata 29,213  30,860  32,484  38,140  40,715  16.4 11.0 
 Hidea 214 212 216 241 209 0.1 0.1 
 Poultry meat  26,155  31,624  35,326  54,445  66,160  14.7 17.9 
 Wool 103 105 123 124 119 0.1 0.0 
 Hen eggs  5,627  6,529  7,513  7,350  7,506  3.2 2.0 
 Honey  2,611   3,309  3,471  4,274  4,640  1.5 1.3 
a Each product group covers sheep, goat, cattle, and buffalo.  
Source:  Turkish Statistical Institute, Data Portal for Statistics: Agriculture . Viewed at: 
https://data.tuik.gov.tr/ . 
4.1.3   Trade  
4.1.3.1   Overview  
4.6.  Trade is important to the sector; both imports and exports grew over the period 2016 -21, 
contributing to a growing trade surplus in agricultural products with exports of USD  24.2 billion and 
imports of USD  20.2 billion in 2021. Exports of agricultural products gradually increased over the 
period and recorded the largest increase from 2020 to 2021 (Chart  4.1). On the other hand, imports 
fluctuated during the review period and, similarly to exports, peaked in 2021.  
 
8 Summit Dialogues (2021),  Towards Sustainable Food Systems: National Pathway of Turkey  (draft). 
Viewed at: https://sum mitdialogues.org/wp -content/uploads/2021/09/Turkey -National -Pathway -
14.09.2021.pdf . 
9 Summit Dialogues (2021), Towards Sustainable Food Systems: National Pathway of Turkey  (draft).  WT/TPR/S/ 439 • Türkiye  
 
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 Chart  4.1 Trade in agriculture, 2016 -21 
(USD million)  
 
Note:  WTO definition of agriculture.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
4.7.  The main agricultural exports are nuts, fresh or dried; wheat or meslin flour; and bakery 
products. In the top three export categories, there was a steady increase, with the notable exception 
in 2020 because of COVID -19, in both volume and value terms over the  period 2016 -21. By contrast, 
exports of other top 10 products in 2020, such as citrus fruit, fresh or dried; fruit, nuts and other 
edible parts of plants; sunflower -seed, safflower or cotton -seed oil; and pasta, saw a marked 
increase (Table  4.3). The top three destinations of total agricultural exports are the EU -27 (26.2%), 
Iraq (16.9%), and the United  States (5.5%).10 
Table  4.3 Exports of agricultural products, 2016 -21 
(USD  million, %)  
 2016  2017  2018  2019  2020 2021  Average 
value  
2016 -21 
Total agriculture exports  17,572  18,148  18,778  19,105  19,955  24,252  19,635  
Total exports  149,247  164,495  177,169  180,833  169,658  225,234  177,772  
(% of total exports)  11.8 11.0 10.6 10.6 11.8 10.8 11.0 
0802 Other nuts, fresh or dried  1,509  1,486  1,340  1,685  1,542  1,811  1,562  
1101 Wheat or meslin flour  1,078  1,052  1,006  1,052  951 1,107  1,041  
1905 Bread, pastry, cakes, biscuits 
and other bakers' wares  892 946 1,007  1,080  1,091  1,190  1,034  
0805 Citrus fruit, fresh or dried  895 854 890 752 941 934 878 
2008 Fruit, nuts and other edible 
parts of plants  754 765 732 834 908 1,028  837 
0806 Grapes, fresh or dried  551 621 645 724 672 684 649 
1512 Sunflower -seed, safflower or 
cotton -seed oil and fractions 
thereof  666 582 449 501 737 937 645 
1902 Pasta  422 491 553 609 761 776 602 
0207 Meat and edible offal, of 
poultry of heading 01.05, 
fresh, chilled or frozen  398 571 606 607 546 844 595 
0713 Dried leguminous vegetables, 
shelled  716 582 503 463 592 689 591 
1806 Chocolate and other food 
preparations containing cocoa  407 462 511 566 555 688 531 
 
10 WTO Secretariat based on Turkish Statistical Institute, National Accounts . Viewed at: 
https://www.tuik.gov.tr/ . 
0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%
05,00010,00015,00020,00025,00030,000
2016 2017 2018 2019 2020 2021
Trade balance Agricultural exports Agricultural imports
% of total exports % of total imports(USD million )
Note: WTO definition of agriculture: HS Chapters 01 -24 less fish and fishery products (HS Chapter 03, 0508, 
0511.91, 1504.10, 1504.20, 1603 -1605 and 2301.20), plus some selected products (HS 2905.43 -2905.45, 
3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 5101 -5103, 5201 -5203, and 
5301-5302).
Source: WTO Secretariat calculations, based on UN Comtrade database.WT/TPR/S/ 439 • Türkiye  
 
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  2016  2017  2018  2019  2020 2021  Average 
value  
2016 -21 
1704 Sugar confectionery, not 
containing cocoa  417 464 454 481 487 636 490 
2402 Cigars, cheroots, cigarillos and 
cigarettes, of tobacco or of 
tobacco substitutes  505 486 471 472 431 342 451 
2106 Food preparations not 
elsewhere specified or included  374 375 422 399 400 444 402 
0809 Apricots, cherries, peaches, 
plums and sloes, fresh  247 297 312 329 463 442 348 
Note:  WTO definition of agriculture.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
4.8.  The agricultural sector's share of total merchandise imports increased during 2016 and 2020, 
and declined slightly in 2021 (Table  4.4). Agricultural imports increased in almo st all top  10 import 
categories; there was a steady increase in both volume and value terms over the period  2016-21, 
with the notable exception of live bovine animals and dried  leguminous vegetables, 
shelled  (Table  4.4). The  top three origins of total agriculture imports are the EU -27 (21.8%); 
the Russian  Federation  (16.4%); and the United  States (9.1%).11 
Table  4.4 Imports of agricultural products, 2016 -21 
(USD  million, %)  
 2016  2017  2018  2019  2020  2021  Average 
value  
2016 -21 
Total agricultural imports  13,839  16,179  15,980  16,188  16,833  20,283  16,550  
(% of total imports)  6.8 6.8 6.9 7.7 7.7 7.5 7.2 
1001 Wheat and meslin  914 1,080  1,317  2,302  2,335  2,693  1,773  
5201 Cotton, not carded or combed  1,333  1,754  1,545  1,586  1,653  2,413  1,714  
1201 Soya beans, whether or not 
broken  878 968 1,120  1,032  1,206  1,464  1,111  
0102 Live bovine animals  587 1,160  1,692  672 411 286 801 
1512 Sunflower -seed, safflower or 
cotton -seed oil and fractions 
thereof  896 658 417 438 709 1,205  721 
0713 Dried leguminous vegetables, 
shelled  705 759 411 389 553 670 581 
1005 Maize (corn)  242 571 595 848 485 680 570 
1511 Palm oil and its fractions  403 437 422 416 527 798 501 
0802 Other nuts, fresh or dried 437 529 493 510 460 464 482 
2106 Food preparations not 
elsewhere specified or included  432 469 486 432 502 562 481 
1206 Sunflower seeds  319 368 396 568 628 542 470 
2304 Oil-cake and other solid 
residues  363 451 397 432 417 432 415 
2401 Unmanufactured tobacco; 
tobacco refuse  462 400 429 422 432 342 415 
2303 Residues of starch 
manufacture and similar 
residues, beet -pulp, bagasse 
and other waste of sugar 
manufacture, brewing or 
distilling dregs and waste  332 433 327 266 294 388 340 
2302 Bran, sharps and other 
residues  238 318 287 289 328 417 313 
Note:  WTO definition of agriculture.  
Source:  WTO Secretariat calculations, based on UN Comtrade database . 
4.1.4   Institutional and legal framework  
4.9.  In 2018, the Ministry of Food, Agriculture and Livestock and the Ministry of Forestry and Water 
were merged under the Ministry of Agriculture and Forestry ( Section  2.1). According to the 
authorities, the main objectives of the MAF are  to: (i) ensure the sustainable use of agricultural a nd 
 
11 WTO Secretariat calculation, based on UN Comtrade database.  WT/TPR/S/ 439 • Türkiye  
 
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 ecological resources;  (ii) increase the standard of living in rural areas; and (iii) ensure access to safe 
food and high -quality agricultural products for the domestic and international markets.  
4.10.  There were no major changes during the review period to th e legal framework of 
Türkiye's  agricultural policy. Law  No. 5488 of 18  April 2006 on Agriculture defines the aims, scope, 
and subject of agricultural policies , and contains provisions on agricultural support and rural 
development and on R&D programmes.  Law No. 1380 of 22  March  1971 on Fisheries was updated 
in November  2019; within the scope of this Law, the regulation on fish passages12 was updated, and 
restocking of fish and transportation of live aquatic products would be subject to the authorization 
of the MAF.  
4.11.  During the 2016 -21 period, Türkiye continued to maintain marketing boards for agricultural 
products, such as the Turkish Grai n Board (TGB) and the Meat and Milk Board, which are state -owned 
entities.13 The TGB, under the MAF, continues to provide stability to the grain markets, manage the 
state monopoly on opium and narcotic drugs, hold stocks for emergencies, and implement othe r 
responsibilities given by the President. During the review period , there were price changes in grains 
and according to the information provided by the authorities, in 2021 the  TGB announced price 
increases on wheat and barley. The purchase prices were de termined by taking into account market 
conditions in domestic and foreign markets.14 
4.12.  In 2018, the Sugar Authority was abolished by Presidential Decree No.  1, and its duties and 
responsibilities were transferred to the MAF. Ten state-owned sugar factories belonging  to the 
Türkiye Sugar Factories Inc. were privatized, and Sugar Factories Inc . was transferred to the Türkiye 
Wealth Fund in 2021 (Section  3.3.5). 
4.1.5   Agriculture policy  
4.13.  The Eleventh Development Plan (2019 -23) identifies agriculture as a priority sector for the 
economy and has set development targets, including for sustainability and efficiency in agricultural 
production (Table  4.5).15 
Table  4.5 Agriculture in t he Eleventh Development Plan , 2019 and 20 23 
Targets  2019 
actual  2023  
target  
Land consolidation activity area (million ha, cumulative)a 8.2 8.5 
Land consolidation area for which registration procedures are completed (million ha, 
cumulative)a 3.6 6.2 
Irrigated net agricultural area (million ha, cumulative)a 3.3 5.3 
Pressurized irrigation system installed area ('000  ha, annual)  40 200 
Irrigation rate (%)  64 68 
Ratio of agricultural supports provided from central government budget to agricultural 
value added (%)  6.8 7.2 
Oil seed production (million tonnes)  4.0 5.4 
Production amount of medicinal and aromatic plants ('000 tonnes)  700 1,200 
Ratio of culture breeds in cattle presence (%)  49 56 
Red meat production amount (million tonnes)  1.1 1.7 
Pasture reclamation and management area ('000 hectares, cumulative)  68 518 
Ratio of forest areas to country area (%)  29 30 
a Based on the activities of the MAF.  
Note:  Data for 2018 are provided by the MAF, the General Directorate of State Hydraulic Works (DSI), and 
the General Directorate of Forestry.  
Source:  Presidency of Strategy and Budget (2019), Eleventh Development Plan  (2019 -2023) . Viewed at: 
https://www.sbb.gov.tr/wp -content/uploads/2022/07/Eleventh_Development_Plan_2019 -2023.pdf . 
 
12 Restoring better fish passage  creates opportunities for fish to reproduce and gain access to 
new habitat.  
13 See WTO document WT/TPR/S/331/Rev.1, 9  August  2016, Section  4.1.9 for more details.  
14 Bloomberg HT (2021), "TMO Announces Wheat and Barley Sales Pr ices", 26  May. Viewed at: 
https://www.bloomberght.com/tmo -bugday -ve-arpa-satis-fiyatlarini -acikladi -2280880 . 
15 Presidency of Strategy and Budget (2019), Eleve nth Development Plan  (2019 -2023) . Viewed at: 
https://www.sbb.gov.tr/wp -content/uploads/2022/07/Eleventh_Development_Plan_2019 -2023.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 4.14.  The MAF's 2019 -2023 Strategic Plan was developed in 2019, consistent with the 
Eleventh  Development Plan (2019 -23). Its main objectives are  to: (i) ensure food and feed safety 
from production to consumption ; (ii) take necessary measures for plant and animal health and 
welfare; (iii) protect fisheries and aquaculture resources, to ensure their sustainable operation; 
(iv) ensure the sustainable management of soil and water resources; and (v) protect biological 
divers ity and ensure its  sustainable management.  
4.15.  Harmonization with EU legislation continued during the review period including with respect 
to organic agriculture, fisheries, codex, feed/food, plant and animal protection, pesticide residue, 
classification of an imals, import certification o f animal products, and legislative activities. In addition, 
the authorities note that activities aimed to further strengthen the coherence with the 
European  Union such as the Farm Accountancy Data Network,  the Integrated Admini stration and 
Control System, the Land Parcel Identification System, and the Livestock Information System were 
expected to be implemented but were slowed due to COVID -19. Furthermore, under the Instrument 
for Pre -Accession in Rural Development programme s, new EU -standard businesses have been 
developed in rural areas, such as growing and processing medicinal -aromatic plants, beekeeping, 
handicrafts, aquaculture, and rural tourism.  
4.16.  During the review period, the authorities developed and adopted the Sectoral Po licy on 
Agricultural Mechanization 2018 -22 (covering the Strategy for the Development of Agricultural 
Equipment and Machinery Industry)16 and the Sectoral Policy on Fertilizer 2018 -22 (covering the 
development of the fertilizer sector, including production  of fertilizers, import and export of 
fertilizers, and technical services for the utilization of fertilizers).17 In addition, in 2019 in partnership 
with the FAO, the MAF developed Türkiye's National Strategy Document on Prevention, Reduction 
and Monitorin g of Food Loss and Waste and its Action Plan. The objectives of the policy are to develop 
a "sustainable and resilient food system" and "to contribute to the sustainability of the global 
consumption and production agri -food system".18 
4.17.  In 2020 several agric ultural policies were adopted in response to COVID -19. The 
MAF established a Working Group and a Scientific Board to carry out monitoring and evaluation 
studies of COVID -19 "to ensure that seasonal workers can continue to work".19 In addition, the 
authorities extended the application deadlines for production supports to the second  quarter of  2020 
for cereals, legumes, oil seeds, olives, organic agriculture, and good agricultural practices. 
Furthermore, in April  2020, producer princ ipal and interest payments on concessional loans were 
postponed to September 2020 and the interest -free loans were made available to small farmers and 
food enterprises.20 
4.18.  The authorities also adopted several trade -specific policies in response to the COVID -19 
pandemic, policies adopted by trading partners, and price increases. These included temporary 
(i) customs duty reductions/exemptions, including on paddy rice; wheat; barley; maize; oat, rye 
and sorghum; chickpeas and lentils; and sunflower seed oil; ( ii) export prohibitions 
(Section  3.2.3.1); and ( iii) non-automatic licensing requirements (Section  3.2.3.3) . 
4.1.6   Market access  
4.19.  Türkiye maintains a number of autonomous tariff rate quotas (TRQs) (Table  4.6) and 
TRQs pursuant to RTAs. It does not have any TRQs bound in its WTO schedule of tariff commitments.  
4.20.  The procedures for the allocation of TRQs are determined in the related Decrees and 
Communiqués on Tariff Rate Quotas regarding Certain Agricultural and Processed Agricultural 
Products for the related c ountry. The administration of TRQs  is managed by the Ministry of Trade. 
 
16 MAF (2018), Sectoral Policy on Agricultural Mechanization, 2018 -2022. Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/tur193691.pdf . 
17 MAF (2018), Sectoral Policy on Fertilizer, 2018 -2022. 
18 MAF and FAO (2020), Turkey's National Strategy Document on Prevention, Reduction and Monitoring 
of Food Loss and Waste and Its Action Plan , p. 2 Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/tur209489. pdf. 
19 OECD, Agricultural Policy Monitoring and Evaluation 2021: Addressing the Challenges Facing Food 
Systems . Viewed at: https://www.oecd -ilibrary.org/sites/1dac72fb -
en/index.html?itemId=/content/component/1dac72fb -en#section -d1e111487 . 
20 OECD, Agricultural Policy Monitoring and Evaluation 2021: Addressing the Challenges Facing Food 
Systems . WT/TPR/S/ 439 • Türkiye  
 
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 TRQ allocation is carried out through either the " request collection method"21 or the " first-come 
first-serve method" . 
4.21.  In terms of autonomous quotas, the Council of Ministers approved a number of TRQs for 
agricultural products, namely commodity crops, meat of bovine animals, live bovine animals, and 
live sheep and goats between 2016  and 20 22. In this context, for commodity crops TRQs are 
redistributed on a yearly basis , but for live ani mals and meats TRQs are no longer in force. These 
quotas were mainly issued to marketing boards to meet shortfalls in the domestic market.  In 
addition, Türkiye has published a new TRQ Decision for 400 ,000 tonnes for sugar, which end ed 
on 15 October 2022.  
Table 4.6 Autonomous tariff rate quotas, 2016 -22 
Product/HS Code  Amount 
(tonnes)  End date Rate 
(%) Procedures  Reference  
Meat of bovine animals  
02.01  15,000  31/12/2016  0 Subject to the issuance of an import 
licence from the Ministry of 
Economy  Decision No.  2016/8595 
of April 2016  
Live bovine animals  
0102.29  500,000  31/12/2017  0 Subject to the issuance of an import 
licence from the Ministry of 
Economy  Decision No.  2016/9664 
of December 2016  
Barley  
10.03  100,000  31/05/2017  0 Subject to the issuance of an import 
licence from the Ministry of 
Economy  Decision No.  2017/9954 
of March 2017  
Maize  
10.05  500,000  31/12/2017  0 Subject to the issuance of an import 
licence from the Ministry of 
Economy  Decision No.  2017/10101 
of 01/05/2017  
Live bovine animals  
01.02  500,000 
(piece)  31/12/2018  0 Subject to the issuance of an import 
licence from the Ministry of 
Economy  Decision No.  2017/10604 
of August 2017  
Live sheep and goats  
01.04  475,000 
(piece)  31/12/2018  0 Subject to the issuance of an import 
licence from the Ministry of 
Economy  Decision No.  2018/11418 
of March 2018  
Wheat  
10.01  750,000  31/05/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/23 of 
August 2018  
Barley  
10.03  700,000  31/05/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/23 of 
August 2018  
Maize  
10.05  700,000  31/07/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/23 of 
August 2018  
Rice 
10.06  100,000  31/08/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/23 of 
August 2018  
Sunflower seeds  
1206.00.91.00.19  
1206.00.99.00.19  300,000  30/06/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/497 of 
December 2018  
Meat of bovine animals  
0201.20.20.00.00  20,000  31/12/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/518 of 
December 2018  
Meat of bovine animals  
02.01  75,000  31/12/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/518 of 
December 2018  
Canned goods  
2002.90.11.00.00  
2002.90.31.00.00  
2002.90.91.00.00  25,000  31/05/2019  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/650 of 
January 2019  
Sugar  
17.01  400,000 15/10/2022  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2022/5615 
of May 2022  
Dried legumes  
07.13  100,000  01/01 -31/12  
Every 
calendar year  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/649 of 
January 2019  
Wheat  
10.01  1,500,000  01/01 -31/12  
Every 
calendar year  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/649 of 
January 2019  
Barley  
10.03  700,000  01/01 -31/12  
Every 
calendar year  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No.  2018/649 of 
January 2019  
 
21 The request collection metho d is where applications are received within one month before the start of 
the tariff quota period.  WT/TPR/S/ 439 • Türkiye  
 
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 Product/HS Code  Amount 
(tonnes)  End date Rate 
(%) Procedures  Reference  
Maize  
10.05  700,000  01/01 -31/12  
Every 
calendar year  0 Subject to the issuance of an import 
licence from the Ministry of Trad  Decision No.  2018/649 of 
January 2019  
Rice 
10.06  100,000 01/01 -31/12  
Every 
calendar year  0 Subject to the issuance of an import 
licence from the Ministry of Trade  Decision No. 2018/649 of 
January 2019  
Source:  Information provided by the authorities.  
4.22.  According to the information provided by the authorities, Türkiye has had TRQs on 3,071 tariff 
lines since 2016 on agriculture, processed agriculture products, and meat/fish. TRQs for certain 
agriculture and processed agricultural products are established in Türkiye's agreement with the 
European  Union22 and its RTAs with 18 countries.23 The EU -Türkiye agreement on the trade of 
agricultural products was amended in 2018 to take into account a change in definition of a tariff rate 
quota for beef granted to the European  Union.24 
4.2  Support programmes  
4.23.  Türkiye did not notify its domestic support programmes to the WTO between 2017 and  2021. 
Therefore, the discussion in this report on support programmes relies heavily on annual reports from 
the MAF and outside sources including the OECD. According to the MAF, Türkiye paid an estimated 
TRY 11.3 billi on in support programmes in 2016 and TRY 23.4  billion in 2021.25 Support programmes 
included crop production, animal production, rural development, aquaculture, and R&D (Table  4.7). 
Table  4.7 Türkiye agricultu re support programmes, 2021  
Support 
programme  Type of 
support  Content  Amount of support 
2021 (TRY)  Provider of 
support  
Crop production  Producer  Diesel support, fertilizer support, 
hazelnut producers area -based 
income support, soil analysis support, 
organic fertilizer support, organic 
agriculture support, good  agricultural 
practices support, area -based yield 
loss support, small business support 
under five acres, plant quarantine 
compensation support, and biological 
control support  14,299,368, 107 MAF 
Animal production  Producer  Fodder crops production support, calf 
support (Malak support, female 
buffalo support, milk content analysis 
support for breeding purposes), small 
ruminant breeders' union for breeding 
purposes support (breeding sheep 
and goat support, herd growth and 
renewal support, ovine pedigree 
support), beekeeping support, 
vaccination support, waste support, 
ear tag application support, bovine 
breeding animal purchase support, 
bovine diseases compensation 
support, bovine fattening su pport, 
raw milk support, and dairy farm 
support  7,196,099,301  MAF 
 
22 The EC -Turkey trade agreement for agricultural products results from Decision No . 1/98 of the 
Association Council of 25/02/1998 last amended by Decision No . 3/2006 of the EC -Turkey Association Council 
of 19 December 2006. Viewed at: https://taxation -customs.ec.europa.eu/turkey -customs -unions -and-
preferential -arrangements_en . 
23 The economies with which Türkiye has RTAs regarding TRQs for certain agri cultural and processed 
agricultural products include the European  Union, Albania, Bosnia and Herzegovina, Chile, Egypt, Georgia, 
Israel, Mauritius, Republic of Moldova, Montenegro, North  Macedonia, Palestine, Serbia, Switzerland and 
Liechtenstein, Tunisia,  the United  Kingdom, and the Bolivarian Republic of Venezuela.  
24 Decision No.  1/2018 of the EU -Turkey Association Council of 27  March  2018. Viewed at: https:// eur-
lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:22018D1029&from=EN . 
25 MAF, Activity Reports . Viewed at: https://www.tarimorman.gov.tr/Kon ular/Plan -Program -Ve-Faaliyet -
Raporlari/faaliyet -raporlar%c4%b1 . WT/TPR/S/ 439 • Türkiye  
 
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 Support 
programme  Type of 
support  Content  Amount of support 
2021 (TRY)  Provider of 
support  
Rural development  Sector in 
general  Instrument for Pre -Accession 
Assistance Rural Development 
Support Program ( IPARD ) national 
co-financing contribution payments, 
rural development support, 
agriculture consultancy support  1,628,678,798  MAF 
Aquaculture  Producer  Support for puffer fisheries, 
registration of traditional coastal 
fisheries, support for aquaculture 
insurance  123,853,680  MAF 
Research and 
development  Sector in 
general  Agricultural R&D (R&D supports, 
animal genetic resources support)  108,093,251  MAF 
Source:  MAF (2022), Administrative Annual Report 2021 . Viewed at: 
https://www.tarimorman.gov.tr/SGB/Belgeler/Bakanl%C4%B1k_Faaliyet_Raporlar%C4%B1/TOB%2
02021%20YILI%20%C4%B0DARE%20FAAL%C4%B0YET%20RAPORU.pdf . 
4.24.  According to various decrees between 2016 and 2021, other support programmes included 
the Strategic Crops Scheme; Agricultural Insurance and Disaster Payment;  Farm Accounting Data 
Network Participation Premium; IPARD National Co -financing Contribution Payments; and 
Agricultural Extension and Consultancy.26 In addition, state -supported agricultural insurance , 
TARSIM , was provided via a public -private partnership.27 Farmers registered in the Farmer 
Registration System or other registration systems of the MAF are covered by TARSIM, taking into 
account their current land, product, facility, enterprise, and breeding informa tion. The Government 
funds between 50% and 67% of the farmers' total insurance premium.28 
4.25.  The OECD developed the producer support estimate (PSE) and associated indicators. The 
methodology for calculating these indicators is different from that used to calc ulate the aggregate 
measure of support. The PSE assesses the annual monetary value of gross transfers to farmers at 
the farm gate level, arising from policy measures that support agriculture.29 
4.26.  Over the period 2015 -21, movements in the value of production were mostly reflected in 
corresponding fluctuations in levels of support to agriculture (Chart  4.2). As the importance of 
agriculture in the overall economy diminished, total support to the sector declined. The PSE declined 
in 2018 and 2019 because of an i ncrease in world prices and depreciation in the value of 
the Turkish  lira. 30 However, in 2020, the PSE increased sharply from an average of 15% in 2017 -19 
to an estimated 20%, as measures such as concessional loans were introduced to address the 
COVID -19 pandemic.  
 
26 MAF (2022), Administrative Annual Report 2021 . Viewed at: 
https://www.tarimorman.gov.tr/SGB/Belgeler/Bakanl%C4%B1k_Faaliyet_Raporlar%C4%B1/TOB%202021%20
YILI%20%C4%B0DARE%20FAAL%C4%B0YET%20RAPORU.pdf . 
27 MAF (2022), Administrative Annual Report 2021 .  
28 OECD, Agricultural Policy Monitoring  and Evaluation 2021: Addressing the Challenges Facing Food 
Systems . Viewed at: https://www.oecd -ilibrary.org/sites/1dac 72fb-
en/index.html?itemId=/content/component/1dac72fb -en#section -d1e111487 . 
29 OECD (2013), OECD Methodology of Estimation of Support to Agriculture . Viewed at: 
http://www.eurasiancommission.org/ru/act/prom_i_agroprom/dep_agroprom/SiteAssets/Melyukhina_OECD%2
0PSE%20concepts_EN%2025.07.pdf . 
30 OECD, Agricultural Policy Monitoring and Evaluation 2021: Addressing the Ch allenges Facing Food 
Systems .  WT/TPR/S/ 439 • Türkiye  
 
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 Chart  4.2 Support to agriculture, 2016 -21 
(TRY billion)  
 
Note:  TSE = total support estimate; PSE = producer support estimate; MPS = market price support.  
Source:  OECD, Agricultural Policy Monitoring and Evaluation . Viewed at: 
http://www.oecd.org/agriculture/topics/agricultural -policy -monitoring -and-evaluation/ . 
4.27.  According to OECD calculation s, single commodity transfers (SCTs) make up most of the 
support provided to agriculture in Türkiye; rates of support vary from one product to another but 
accounted for a large share of gross farm receipts between 2016  and 20 20. For most commodities, 
the SCT fluctuated over the review period, showing no clear trends. SCT s were mainly provided for 
beef, sunflower, cotton, and potatoes (Table  4.8). 
Table  4.8 Total PSE and SCT values for selected commodities, 2016 -21 
(TRY million, %)  
  2016  2017  2018  2019  2020  2021  
Total value of production at farm gate  184,143  214,842  253,550  304,403  366,621  423,491  
Total PSE (PSE)  57,020  53,712  40,353  55,603  109,845  66,159  
 % PSE  29.4 23.8 15.2 17.4 26.0 15.1 
Producer Single Commodity Transfers (PSCT)  51,967  47,853  33,428  47,656  59,669  57,509  
 % PSCT  27.5 21.8 12.9 15.3 16.0 13.4 
Group Commodity Transfers (GCT)  3,204  3,599  4,780  5,591  6,306  7,222  
All Commodity Transfers (ACT)  1,848  2,260  2,146  2,356  43,870  1,429  
Other Transfers to Producers (OTP)  0.0 0.0 0.0 0.0 0.0 0.0 
PSCT  
Apples   
 SCT (TRY  million)  1,069  962 0 347 0 0 
 % of gross receipts  34.2 25.2 0.0 5.4 0.0 0.0 
Barley  
 SCT (TRY million)  1,657  1,459  58 471 278 356 
 % of gross receipts  35.2 25.6 1.0 5.6 2.6 3.2 
Beef and veal   
 SCT (TRY  million)  17,056  14,376  11,567  13,808  11,739  -627 
 % of gross receipts  62.6 53.1 40.1 41.0 30.6 -1.6 
Cotton   
 SCT (TRY million)  1,608  1,831  1,952  2,200  2,229  1,757  
 % of gross receipts  31.1 27.1 24.2 27.1 29.4 14.1 
Eggs 
 SCT (TRY  million)  -240 -229 0 -113 -408 -721 
 % of gross receipts  -7.3 -6.1 0.0 -1.5 -6.1 -9.7 
Grapes  
 SCT (TRY  million)  390 0 0 0 0 0 
 % of gross receipts  6.2 0.0 0.0 0.0 0.0 0.0 
Maize   
 SCT (TRY  million)  601 350 136 146 165 211 
 % of gross receipts  13.3 7.7 2.7 2.3 2.1 1.8 
0102030405060708090100110120
2016 2017 2018 2019 2020 2021TSE PSE MPSChart 4.2 Support to agriculture, 2016 -21
Note: TSE = Total support estimate;  PSE = Producer support estimate;  MPS = Market price support.
Source: OECD Agricultural policy monitoring and evaluation. Viewed at: http://www.oecd.org/agriculture/topics/agricultural -
policy -monitoring -and-evaluation/.  WT/TPR/S/ 439 • Türkiye  
 
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   2016  2017  2018  2019  2020  2021  
Milk  
 SCT (TRY  million)  -338 -565 1 -198 -442 -781 
 % of gross receipts  -1.6 -2.2 0.0 -0.5 -0.9 -1.2 
Potatoes   
 SCT (TRY  million)  1,489  1,347  2,854  3,491  2,385  5,463  
 % of gross receipts  49.0 39.4 60.9 37.8 38.0 90.8 
Poultry meat   
 SCT (TRY  million)  3,989  2,937  35 -165 -470 0 
 % of gross receipts  45.2 28.5 0.3 -1.6 -4.5 0.0 
Sheep meat   
 SCT (TRY million)  387 183 -30 -116 -251 0 
 % of gross receipts  19.5 6.6 -0.8 -3.0 -5.7 0.0 
Sugar         
 SCT (TRY  million)  560 757 1,164  185 599 0 
 % of gross receipts  13.9 16.1 21.3 4.4 7.7 0.0 
Sunflower   
 SCT (TRY  million)  2,820  4,038  3,755  4,444  7,215  6,510  
 % of gross receipts  56.8 58.3 50.0 51.1 51.3 29.7 
Wheat   
 SCT (TRY  million)  5,033  4,763  517 5,982  15,469  23,309  
 % of gross receipts  29.1 23.8 2.6 25.2 48.8 62.6 
Non-MPS commodities   
 SCT (TRY  million)  15,885  15,642  11,419  17,174  21,160  22,031  
 % of gross receipts  25.9 21.1 12.7 15.6 16.1 14.5 
Source:  OECD, Agricultural Policy Monitoring and Evaluation . Viewed at: 
http://www.oecd.org/agriculture/topics/agricultural -policy -monitoring -and-evaluation/ . 
4.2.1   Export subsidies  
4.28.  Regarding export subsidies, between 2016  and 20 21, Türkiye notified its export subsidies on 
agricultural products to the WTO  Committee on Subsidies and Countervailing Measures. According 
to the notifications, export subsidies have been  provided to specific commodities. The percentage 
share eligible to recei ve the subsidy is determined by Türkiye's WTO  commitments and budgetary 
constraints. In general,  export subsidies are granted to reduce exporters' debts (such as taxes, and 
telecommunications or energy costs ( to public corporations.31 
4.29.  Between 2016 and 2021 , there were no changes to the share of exported quantity eligible to 
receive the subsidies , except for honey where the share decreased from 32% in 2016 -17 to 20% 
in 2018-21 (Table 4. 9). The maximum payment rate remained the same for all commodities 
except  for preserved poultry meat products, which increased from 10% in 2017 to 13% 
in 2018-21 (Table  4.9). 
Table  4.9 Türkiye 's export subsidies on agricultural products, as notified to the 
SCM Committee , 2016 -21 
Product  2016 -17 2018 -21 
Rate 
(TRY/tonne)  Share of 
exported 
quantity 
eligible to 
receive the 
subsidy  
(%) Maximum 
ratio of 
payment  
(%) Rate 
(TRY/tonne)  Share of 
exported 
quantity 
eligible to 
receive the 
subsidy  
(%) Maximum 
ratio of 
payment  
(%) 
Cut flowers (fresh)  400 45 9 475 45 9 
Vegetables, frozen (exc. 
potatoes)  160 45 10 180 45 10 
Vegetables (dehydrated)  720 40 10 800 40 10 
Fruits (frozen)  155 45 6 175 45 6 
Preserves, pastes  165 100 8 185 100 8 
Honeya 130 32 2 160 20 2 
Homogenized fruit 
preparations  125 35 5 140 35 5 
Fruit juices (concentrated)  320 15 12 360 15 12 
 
31 OECD (2022), Agricultural Policy Monitoring and Evaluation 2022: Reforming Agricultural Policies for 
Climate Change Mitigation . Viewed at: https://www.oecd -ilibrary.org/sites/c2e35ce5 -
en/index.html?itemId=/content/component/c2e35ce5 -en. WT/TPR/S/ 439 • Türkiye  
 
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 Product  2016 -17 2018 -21 
Rate 
(TRY/tonne)  Share of 
exported 
quantity 
eligible to 
receive the 
subsidy  
(%) Maximum 
ratio of 
payment  
(%) Rate 
(TRY/tonne)  Share of 
exported 
quantity 
eligible to 
receive the 
subsidy  
(%) Maximum 
ratio of 
payment  
(%) 
Olive oil  30 100 2 20 100 2 
Prepared or preserved  fish 485 100 5 550 100 5 
Meat of poultry (excl. edible 
offal) 380 41 14 430 41 14 
Eggs 35/1,000 
pieces  65 10 40/1,000 
pieces  65 10 
Preserved poultry meat 
productsa 485 50 10 550 50 13 
Chocolate and other food 
preparations containing 
chocolate  235 48 5 270 48 5 
Biscuits, waffles  235 18 7 270 18 7 
Macaroni, vermicelli  130 32 9 150 32 9 
a Subsidy payments have been suspended as of 1  January  2019.  
Source:  WTO documents, G/SCM/N/315/TUR, 31  August  2017; G/SCM/N/315/TUR/Suppl.1, 
G/SCM/N/343/TUR, 16  September  2019; and G/SCM/N/372/TUR 21  December  2021.  
4.3  Manufacturing  
4.3.1   Features  
4.30.  According to the authorities , Türkiye's sizeable and relatively young population, dynamic 
entrepreneurial class, and advantageous geographic position have made it a significant 
manufacturing hub. Tür kiye positions itself in the global value chains by leveraging lower labour 
costs and flexible production capabilities. The recent dynamism of Türkiye's  manufacturing sector is 
reflected in a very significant rise in the sector's contribution to  GDP and em ployment (Table 4.1 0). 
The authorities indicate in this review that the expansion of manufacturing can be explained by  the 
(i) increased foreign investment after the COVID -19 pandemic, with FDI flows being diverted to 
Türkiye due to continued restrictions in Asia; (ii) companies' access to low -cost credits ; and 
(iii) incentives (technical knowledge and credit schemes). In 2021, the sector had the highest share 
of production value in Türkiye, estimated at TRY  5 billion.3233 Manufactur ed products include 
automotive  product s, aviation  products , consumer goods, electronics , chemicals, and textile s and 
clothing. In 2020, Türkiye ranked 28th out of 154  countries in terms of its Manufacturing Competitive 
Industrial Performance, above the average of world and emerging industrial economies.34 
Table  4.10 Manufacturing's contribution to GDP and employment, 2016 -21 
 2016  2017  2018  2019  2020  2021  
% change in chain linked volumea 4.0 9.3 1.2 -2.5 3.4 18.5 
% of GDP at current basic price (%)  18.8 19.8 21.2 20.3 21.5 24.8 
Employment ( '000 persons)  4,915  4,969  5,232  5,154  5,070  5,662  
a In chain linked volume – to estimate real GDP volume without price effect . Approach used to 
estimate volumes using prices of previous years, instead of a fixed year.  
Source:  TurkStat, National Accounts . Viewed at: https://www.tuik.gov.tr/ ; TurkStat, Labour Force Statistics.  
Viewed at: https://www.tuik.gov.tr/ ; and Ministry of Treasury and Finance , Economic Indicators . 
Viewed at: https://en.hmb.gov.tr/economic -indicators . 
 
32 Turkish Statistical Institute (TurkStat). Vie wed at: https://data.tuik.gov.tr/Bulten/Index?p=Annual -
Industry -and-Service -Statistics -2021-45836 . 
33 Production value measures the amount actually pro duced.  
34 UNIDO, Competitive Industrial Performance Index 2022 . Viewed at: 
https://stat.unido.org/country/TUR.pdf . WT/TPR/S/ 439 • Türkiye  
 
- 122 - 
 
 4.31.  Small and medium -sized enterprises (SMEs)35 continue to play an important role in the 
manufacturing sector in Türkiye . Slightly more than 12% (12.3%) of all SMEs participated in the 
sector36, accounting for  42% of the production value37 and 72% of employment in 2020.38 Despite 
their continued impor tance in the manufacturing sector, SMEs were significantly affected by 
the COVID -19 pandemic; in 2020, SME value added declined by 6.3%.39 
4.32.  In terms of technology levels, the share of high and middle -high technology use among 
SMEs  in the manufacturing secto r is small (0.6% and 10.9%, respectively) ; most SMEs in the 
manufacturing industry use low technology (56.7%) (Chart  4.3). Similarly, the majority of 
large-scale enterprises (47.6%) produced in the low -technology category and 2.9% in the 
high-technology  category (Chart  4.3). In Türkiye, adopters of high -technology manufacturing 
include the automotive, aviation, electronics, chemicals, and textiles and clothing industries.  
Chart  4.3 SMEs' and large -scale enterpr ises' participation in the manufacturing industry 
by technology level, 2020  
 
Source:  TurkStat (2021), Small and Medium Sized Enterprises Statistics, 2020 . Viewed at: 
https://data.tuik.gov.tr/Bulten/Index?p=Small -and-Medium -Sized -Enterprises -Statistics -2020-
41129&dil=2 . 
4.3.2   Trade  
4.33.  Türkiye is a large exporter of manufactur ed goods, which account ed for 94.5% of total 
merchandise exports in 2021.40 Since 2016, exports of manufacturing goods have continuously 
increased; a decline in  2020 exports due to COVID -19 restrictions was followed by an increase 
by 33% in  2021. Türkiye's  key exports in the sector are machinery and transport equipment, 
automotive, textiles and clothing, chemicals, iron and steel, electronics, and jewellery.41 In 2021, 
36% of Türkiye's  manufacturing exports consisted of medium -tech products and 3% of high -tech 
products.42 In 2020, 91.4% of the exports of SMEs were in manufa ctured products, including 13.9% 
 
35 SMEs are classified as enterprises that employ less than 250 employees annually and w hose annual 
net sales revenue or financial balance does not exceed TRY 125  million. TurkStat (2021), Small and Medium 
Sized Enterprises Statistics, 2020 . Viewed at: https://data.tuik.gov.tr/Bulten/Index?p=Small -and-Medium -
Sized -Enterprises -Statistics -2020-41129&dil=2 . 
36 TurkStat (2021), Small and Medium Sized Enterprises Statistics, 2020 .  
37 European  Commission, 2021 SME Country Fact Sheet:  Turkey . Viewed at: https://neighbourhood -
enlargement.ec.europa.eu/system/files/2021 -09/turkey_ -_sme_fact_sheet_2021.pdf . 
38 Information provided by the authorities.  
39 European  Commission, 2021 SME Country Fact Sheet: Turkey .  
40 TurkStat (2022), Foreign Trade Statistics, December 2021 . Viewed at: 
https://data.tuik.gov.tr/Bulten/Index?p=Foreign -Trade -Statistics -December -2021-45535&dil=2 . 
41 WTO Secretariat calculations, based on UN Comtrade database (SITC Rev. 3).  
42 SEE Industry, PCB Manufacturing in Turkey . Viewed at: https://www.see -industry.com/en/pcb -
manufacturing -in-turkey/2/2068/ . 
0.6%
10.9%
31.8%56.7%
High technology Medium-high technology Medium-low technology Low technology​
2.9%
​
21.7%
​
27.8%​
47.6%Chart 4.[TUR] Ration of SMEs and large -scale enterprised in the manufacturing industry by technology level, 
2020
SMEs Large -scale enterprises
Source:   Turkish Statistical Institute .  Viewed at: https://data.tuik.gov.tr/Bulten/Index?p=Small -and-Medium -Sized -
Enterprises -Statistics -2020-41129&dil=2.WT/TPR/S/ 439 • Türkiye  
 
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 for the clothing sector, 10.1% for textile products, and 10% for machinery and equipment not 
elsewhere classified.43 
4.34.  In 2021, Türkiye's main export markets for its manufactured goods were 
Germany  (USD  19.3 billion), the Uni ted States (USD  14.7 billion), the 
United  Kingdom  (USD 13.7 billion), Italy (USD  11.4 billion), and Iraq (USD  11 billion).44 
4.35.  In 2021, imports of manufactur ed products accounted for 75.9% of total goods imports.45 The 
imports of SMEs in 2020 were basic meta ls (33.6%) and chemicals and  chemical 
products  (12.4%).46 Top countries for Türkiye's imports in 2021 included China (USD  32 billion), 
the Russian  Federation (USD  28.9 billion),  Germany (USD  21.7 billion), the United  States  
(USD  13 billion), and Italy (USD  11.5 billion).47 
4.3.3   Policy and institutional developments  
4.36.  The Ministry of Industry and Technology is responsible for setting industrial policy in 
coordination with other relevant Ministries and institutions.48 The Union of Chambers and Commodity 
Exchanges of Türkiye is the main professional organization and legal representative of the private 
sector.49 Other organizations  that represent the industries include  the Turkish Industry and Business 
Association, the Türkiy e Exports Assembly, the Foreign Economic Relations Board , and the 
Association of Independent Industrialists and Businessmen.  
4.37.  In 2019, the Ministry of Industry and Technology adopted the 2023 Industry and Technology 
Strategy. The Strategy aims to increase p roduction of high technology and innovative products and 
to achieve the digital transformation of the industry in the 2019 -23 period.50 The Strategy provides 
that public procurement policies will be used to support the suppliers of high -technology products . 
It also includes strategic plans in the machinery, semiconductor, aerospace, defence, transportation 
technology, software, electronics, chemicals, and pharmaceutical industries. The authorities also 
intend to further develop Digital Transformation Centre s with the intention of adopting new 
technologies in Technology Development Zones and Organized Industrial Zones (Sections 2.4.4.1 
and 2.4.4.2) .51 The strategy includes plans to increase the number of software developers across 
Türkiye from 140,000 to 500,000. In addition, authorities plan to facilitate an increase in the number 
of "Turcorns" ( i.e. companies that start at the venture capital level a nd reach a valuation of 
USD 1 billion and above) to 10 by  2023.52 
4.3.4   Automotive  
4.38.  Türkiye has significant production and engineering capacity in the global automotive value 
chain.53 In 2021, it ranked 13th in global automotive production and 4th in Europe's aut omotive 
production (ranked 1st in commercial vehicle production in Europe).54 The sector produced 1.1  million 
 
43 TurkStat (2021), Small and Medium Sized Enterprises Statistics, 2020 .  
44 TurkStat (2022), Foreign Trade Statistics, December 2021 .  
45 TurkStat (2022), Foreign Trade Statistics, December 2021 . 
46 TurkStat (2021), Small and Medium Sized Enterprises Statistics, 2020 .  
47 TurkStat (2022), Foreign Trade Statistics, December 2021 . 
48 Ministry of Industry and Technology. Viewed at: https://www.sanayi.gov.tr/kurumsal/teskilat -semasi . 
49 TOBB, Purpose and Organs . Viewed at: https://tobb.org.tr/Sayfalar/Eng/AmaciveYapisi.php ; and 
TOBB, TOBB in Brief . Viewed at: https://tobb.org.tr/ozetleTOBB/ozetletobb -en.pdf . 
50 Ministry of Industry and Technology . Viewed at: 
https://www.sanayi.gov.tr/assets/pdf/SanayiStratejiBelgesi2023.pdf  and https://www .sanayi.gov.tr/2023 -
sanayi -ve-teknoloji -stratejisi . 
51 Ministry of Industry and Technology. Viewed at: 
https://www.sanayi.gov.tr/assets/pdf/SanayiStratejiBelgesi2023.pdf  and https://www.sanayi.gov.tr/2023 -
sanayi -ve-teknoloji -stratejisi . 
52 Gokce (2019), "Turkey 2023 Industry and Technology Strategy Has Been Announced", The Fine Print , 
Vol. 80. Viewed at: http://gokce.av.tr/wp -content/uploads/2019/10/The -Fine-Print_Ekim_2019_Ing.pdf . 
53 Investment Office, Türkiye Your Resilient Partner . Viewed at: 
https://www.invest.gov.tr/en/library/publications/lists/investpublications/invest -in-turkiye -roadshow -
booklet.pdf . 
54 TurkStat (2022), Annual Industrial Products (PRODCOM) Statistics, 2021 . Viewed at: 
https://data.tuik.gov.tr/Bulten/Index?p=Annual -Industrial -Products -(PRODCOM) -Statistics -2021-45835 . WT/TPR/S/ 439 • Türkiye  
 
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 automobiles in 202155, employing an estimated 200,000 employees in 2020.56 In 2021, 95.2% of 
the more than 3,000  companies in the industry were mi cro (56.2%), small (27.1%), and 
medium -sized (11.9%) enterprises, yet over 90% of net sales were from large -scale companies.57 
The automotive industry is based mainly in Izmit, Bursa, Ankara, Izmir, and Aksaray.  
4.39.  In 2022, 191  research and development (R&D) and design centres belonging to automotive 
manufacturers and suppliers, accredited by the Ministry of Industry and Technology, were 
operational in Türkiye.58 R&D expenditures in the automotive sector exceeded TRY  3.5 billion in 2020 
and represent 17% of th e total R&D expenditure in the manufacturing industry and 10% of all 
R&D expenditure.59 
4.40.  The sector comprises several foreign -owned firms, joint ventures with foreign companies, and 
firms operating under foreign licences. Türkiye's three main automobile pro ducers are joint ventures 
with global brands: Tofas (Fiat S.p.A and Koç Holding), Oyak -Renault, and Ford Otosan. These 
producers accounted for around 62% of all vehicles manufactured in  2021. Other important 
producers are Daimler, AVL Toyota, Hyundai Assan , Mercedes -Benz Türk, MAN Türkiye, 
Anadolu  Isuzu, and Honda Türkiye. Türkiye's first electric car, Togg, is being developed, and 
according to the authorities sales are expected in the first quarter of 2023. Several international 
companies also have R&D cen tres in Türkiye, including Ford Otosan, Fiat, Daimler, and AVL Toyota . 
4.41.  Türkiye's automotive industry is also home to 14 Original Equipment Manufacturers (OEMs)60, 
covering passenger cars, light commercial vehicles, and heavy -duty vehicles.61 Türkiye also o ffers a 
supportive business environment on the supply chain side; there are an estimated 1,100 component 
suppliers assisting in the production processes of OEMs.62 
4.42.  In 2020, exports of vehicles decreased due to COVID -19 restrictions. However, in 2021, 
vehicle exports increased to USD  25.0 billion from USD  22.1 billion in 2020 (Table A1.1).  
4.43.  Türkiye supports companies investing in automotive manufacturing and R&D with incentives 
including benefits from value added tax (VAT) and customs duty exemption, VAT refu nd, corporate 
tax deduction, social security support and qualified personnel wage support, land allocation, income 
tax withholding support, and support for energy consumption expenditure (Section  3.3.1).63 
4.44.  The simple average applied MFN tariff on vehicles (HS 87) was 10% in 2022.64 Imports of 
second -hand vehicles, other than for personal use, are restricted for environmental reasons but are 
not prohibited.  Approval is required from the Ministry of Industry a nd Technology for various motor 
vehicles to ensure the suitability of all imported vehicles for highways.  
4.3.5   Chemicals  
4.45.  The chemicals industry, like other industries in the manufacturing sector, has taken advantage 
of Türkiye's productive labour force, competitive production costs, infrastructure, and proximity to 
export markets to expand and attract international investment . In 2021, it ranked as the 7th largest 
 
55 TurkStat (2022), Annual Industrial Products (PRODCOM) Statistics, 2021 . Viewed at: 
https://data. tuik.gov.tr/Bulten/Index?p=Annual -Industrial -Products -(PRODCOM) -Statistics -2021-45835 . 
56 Investment Office (2021), Mobility Industry Agenda 2021 . Viewed at: 
https://www.invest.gov.tr/en/library/publications/lists/investpublications/mobility -industry -agenda.pdf . 
57 Investment Office (2021), Mobility Industry Agenda 2021 . 
58 Investment Office, Automotive . Viewed at: 
https://www.invest.gov.tr/en/sectors/pages/automotive.aspx . 
59 Investment Office (2021), Mobility Industry Agenda 2021 . 
60 OEM is  defined as a company whose goods are used as components in the products of anoth er 
company, which then sells the finished item to users.  
61 Investment Office, Türkiye Your Resilient Partner . Viewed at: 
https:// www.invest.gov.tr/en/library/publications/lists/investpublications/invest -in-turkiye -roadshow -
booklet.pdf . 
62 Investment Office, Automotive .  
63 ERAI (2021), "The Automotive Industry in Turkey", 12  February. Viewed at: 
https://eraiturkey.com/news/the -automotive -industry -in-
turkey/#:~:text=Turkey%20is%20a%20strong%20production,and %20engineering%20for%20international%
20markets . 
64 WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/ 439 • Türkiye  
 
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 plastics producer in the word (2nd in Europe) and the 5th largest paint producer in Europe.65 The 
main products are plastics, soap and detergents, soda, chromium chemicals, boron chemicals, 
paints, sodium sulphate, f atty acids, and rose oil. The industry has continued to adopt production 
processes that increased quality, productivity, and protection of the environment, and continues to 
harmonize  the European  Union's technical standards  (Section  3.3.2) .66 
4.46.  The main driv ers for growth in the industry in 2021 included investments and innovations 
from leading Turkish chemicals players; supporting regulations such as investment incentives; the 
devaluation of the Turkish lira, which reduced the costs of production such as lab our and energy; 
and disruption of global trade  flow between  the United  States, Europe, and the Asia -Pacific region 
in 2020, which resulted in increased demand for Türkiye 's chemical industry products.67 
4.47.  There are an estimated 5,000 local and international companies in the chemicals industry68 
with the majority having less than 150 employees.69 International chemical companies, such 
as BASF, Henkel, Bayer, 3M, Dupont, Cargill, and P&G, have significant presence in the industry. 
Most companies in the industry  are located in Istanbul, Izmir, Kocaeli, Sakarya, Adana, Gaziantep, 
and Ankara.70 
4.48.  The Government maintains  several incentives to invest in the industry, value added tax  (VAT) 
and customs duty exemption, VAT refund, corporate tax deduction, social security  support, qualified 
personnel wage support, land allocation, income tax withholding support, interest support, capital 
contribution support, purchase guarantee , and support for energy consumption expenditure  
(Section  3.3.1). In addition, the Chemicals Tech nology Centre support s and accelerate s 
development s of the Turkish chemicals industry.71 
4.49.  According to the information provided by the authorities, exports of chemicals and chemical 
products (including plastics and rubber industries) increased from USD  15.8 billion in 2016 to 
USD 32.5 billion in 2021. As a percentage of total exports, chemical exports increased from 11% 
in 2016 to 14% 2021. In 2021, exports of plastics products reached USD  10 billion ( a 43% rise from 
the previous year), and synthetic rub ber to 3.5 billion (30% rise from the previous year). Main export 
markets include the European  Union and the United  States.  
4.50.  In 2021, the main export products included plastics (33% of total exports in the chemicals 
industry) ; pharmaceutical products (6 .3%); synthetic rubber (5 .8%); dyes, pigments, paints and 
varnishes (3 .7%); and soap and detergents (3.3%). Main export markets include the EU -27, Iraq, 
the United  States , and Egypt.  
4.51.  In 2022, the simple average applied MFN tariff for chemicals was 6.2%, which remains lower 
than the overall applied MFN average (19.6% in 2022) (Table A3.2).  
4.3.6   Textiles and clothing  
4.52.  The textiles and clothing sector is characterized by qualified human resources, design 
capacity, accumulation of know -how, investment in technology, and a large production capacity. 
In 2021 Türkiye was the 7th largest supplier of textiles and clothing in the world and the 4th largest 
supplier to the European  Union.72 Accordingly, its global share of knitted clothing is 4.0% (ranked 
6th among exporting coun tries) and its share of global woven clothing is 3.2 % (ranked 7th among 
 
65 Investment Office, Türkiye Your Resilient Partner .  
66 Ministry of Trade, Industry: Chemicals . Viewed at: 
https://www.trade.gov.tr/data/5b8fd4fb13b8761f041fee78/Chemical%20Industry.pdf . 
67 PwC, Chemicals Industry 2030 and Beyond . Viewed at: https://www.strategyand.pwc.com/tr/2030 -
and-beyond -despite -recent -figures -achieving -sustainable -growth . 
68 Investment Office, Turkey: Bright  Spot for Chemical Investments . Viewed at: 
https://www.invest.gov.tr/en/library/publications/lists/investpublications/chemicals -industry.pdf . 
69 Investment Office, Turkey: Bright Spot for Chemical Investments .  
70 CEFIC, Turkey: Key Facts . Viewed at: https://cefic.org/a -pillar-of-the-european -economy/landscape -
of-the-european -chemical -industry/turkey/ . 
71 Turkchem,  The Chemistry Technology Centre Will Be Operational in  2022. Viewed at: 
https://www.turkchem.net/the -chemistry -technology -center -will-be-operational -in-2022.html . 
72 Ministry of Trade, Industry: Clothing . Viewed at: 
https://www.trade.gov .tr/data/5b8fd6d913b8761f041feee0/Clothing.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 exporting countries). Türkiye has an extensive supply of cotton as a traditional cotton -producing 
country.73 In addition, it has the 8th largest production capacity of synthetic fabri cs in the world . 
4.53.  According to the authorities , in the 2016 -19 period, textile and clothing exports followed an 
upward trend; the export volume was USD  28.7 billion in 2016 and increased to USD  30.3 billion 
in 2019. In 2020 textile and clothing exports decr eased to USD  28.6 billion due to COVID -19. 
However, in 2021 exports increased to USD  36.2 billion (an increase of 26.6% in 2021 
year-on-year). The main exports included knitted clothing and accessories with a share of 58.93% 
in total clothing exports (value of USD  10.78  billion) and woven clothing with 41% of total clothing 
exports (value of  USD 7.51 billion) in 2021.74 The main export markets included the European  Union 
with an export value of USD 11.84  billion, accounting for 70.5% of Türkiye 's total clothing exports 
in 2021.75 Significant markets among the members of the European  Union were Germany, Spain , 
and the  Netherlands.  
4.54.  The textiles and clothing industry continued to be protected in 2016 -22 with bound tariffs 
covering 15.1% of textiles  and 2.1% of clothing tariff lines.76 In 2021, the simple average 
applied  MFN tariff was 18.4% on textiles and 40.7% on clothing (Table A3.2). The textiles and 
clothing sector is qualified for support under the General Investment Incentives Scheme (exempti ons 
from VAT and customs duties for imported machinery and equipment) and the Regional Investment 
Incentives Scheme, which provides a more comprehensive range of incentives.  
4.4  Services  
4.4.1   Financial services  
4.4.1.1   Features  
4.55.  Financial services' contribution to GDP fluctuated during the review period, increasing 
from 3.3% in 2016 to 3.7% in 2020 and then declining to 2.9% in 2021.77 The value added of 
financial and insurance services activities more than doubled from 2016 to 2020 (Table  4.11). The 
number of enterpris es also increased (Table  4.11). In 2021, the sector accounted for 1% of total 
employment.78 In terms of asset size of financial institutions in 2021, the banking subsector had an 
82% share (TRY 6 ,392 billion), followed by insurance companies  (6%, TRY 483  billion) and portfolio 
management companies (4%, TRY 340 billion).79 
Table  4.11 Financial intermediary institutions statistics, 2016 -21 
 2016  2017  2018  2019  2020  2021  
Value added at factor cost (TRY  billion)  
Financial and insurance activities  133.9 155.8 253.5 259.0 312.6 436.1 
 Financial services activities (except insurance 
 and pension funding)  119.3 138.7 227.9 226.4 272.9 380.7 
 Insurance, reinsurance, and pension funding 
 (except compulsory social security)  10.1 11.7 18.7 23.9 26.7 34.9 
 Activities auxiliary to financial services and 
 insurance  activities  4.5 5.4 6.9 8.8 13.0 20.4 
Number of enterprises  
Financial and insurance activities  17,795  17,535  17,853  18,132  18,777  19,001  
 Financial services activities (except insurance 
 and pension funding)  227 225 218 218 220 255 
 Insurance, reinsurance, and pension funding 
 (except compulsory social security)  63 63 62 63 60 68 
 
73 Ministry of Trade, Industry: Clothing . 
74 Ministry of Trade, Industry: Clothing . 
75 Ministry of Trade, Industry: Clothing . 
76 WTO Secretariat calculations based on WTO CTS database. WTO definition of textiles in HS codes: 
300590, 330620, 392112 -13, 392190, 420212, 420222, 420232, 420292, 50 -60 (except 5001 -03, 5101 -03, 
5201-03, 5301 -02), Ch. 63, 640520, 640610, 6501 -05, 6601, 701911 -19, 701940 -59, 870821, 8804, 911390, 
940490, 961210; and of clothing: HS 61 -62. 
77 MoTF, Economic Indicators . Viewed at: https://en.hmb.gov.tr/economic -indicators . 
78 TurkStat, National Accounts . Viewed at: https://www.tuik.gov.tr/ ; and MoTF , Economic Indicators . 
Viewed at: https://en.hmb.gov.tr/economic -indicators . 
79 The Banks Association of Türkiye (2022), Banks  in Türkiye 2021 . Viewed at: 
https://www.tbb.org.tr/Content/Upload/istatistikiraporlar/ekler/3401/Banks_in_Turkiye_2021.pdf . WT/TPR/S/ 439 • Türkiye  
 
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  2016  2017  2018  2019  2020  2021  
 Activities auxiliary to financial services and 
 insurance activities  17,505  17,247  17,573  17,851  18,497  18,678  
Annual average number of employees ('000)  
Financial and insurance activities  311 306 305 299 299 302 
 Financial services activities (except insurance 
 and pension funding)  237 230 227 224 222 222 
 Insurance, reinsurance, and pension funding 
 (except compulsory social security)  20 20 20 20 20 21 
 Activities auxiliary to financial services and 
 insurance activities  55 57 58 54 57 60 
Fixed capital investments and sales 
(TRY  billion)  6.7 5.9 9.8 12.3 13.1 17.9 
Source:  TurkStat, Financial Intermediary Institution Statistics, 2021 . Viewed at: 
https://data.tuik.gov.tr/Bulten/Index?p=Financial -Intermediary -Institution -Statistics -2021-45701 . 
4.4.1.2   Institutional and legal framework  
4.56.  Chart 4.4 illustrates the structure of financial services regulation, which changed during the 
review period.  
Chart  4.4 Structure of financial services regulation  
 
Source:  Information provided by the authorities.  
4.4.1.3   Speci fic sectors  
4.4.1.3.1   Banking  
4.57.  The banking sector (Table 4.1 2) is composed of state -owned, private, and foreign banks.80 
Two new banks were granted operating permission i n 2020 and 2021 (Golden Global Bank in 2020 
and Dogan Investment Bank  in 2021). According to the authorities, in 2021, the sector had 
 
80 Foreign banks are divided into two groups: those that have opened a branch in Türkiye and those that 
were founded in Türkiye. These banks are subject to the same regulations as the other commercial banks of a 
domestically registered bank. A foreign bank is one in which non -residents hold 51% or more capital.  
WT/TPR/S/ 439 • Türkiye  
 
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 34 deposit banks (3 state -owned, 8  private, 21  foreign, and 2 banks under the management of the 
Savings Deposit Insurance Fund (SDIF)81; 15 investment banks (4 state -owned, 7 private, 
and foreign); and 6 Islamic (partic ipation)82 banks.  
Table  4.12 Banking sector – main indicators, 2019 -21 
  December 2019  December 2020  December 2021  
Total number of banks  53 54 55 
Bank assets/GDP  104%  121.0%  127.8%  
Bank deposits/GDP  59.4%  61.4%  73.6%  
Number of branches  11,372  11,189  11,098  
Number of branches/thousand population  0.14 0.13 0.13 
Source:  Information provided by the authorities.  
4.58.  According to the IMF, the growth in assets of the banking sector was mostly driven by 
state-owned banks, accounting for 45% of total banking system assets.83 
4.59.  The five largest banks accounted for nearly 53.9% in total assets in 2021 and the share of 
the top 10  banks in total assets (Table 4.1 3) was 80.5%.84 The first five ba nks in terms of assets 
include three state -owned bank s, one private bank , and one foreign bank.  Foreign presence in the 
banking subsector has increased. In  2021, USD  181 billion of assets (approximately 26% of total 
assets) were owned by foreign banks. As of October 2022, 3 banks of the top 10 are foreign owned.  
4.60.  The ratio of non -performing loans to total lending stood at 3.9% in  December  2021. The IMF 
noted that  the non-performing loans level is low due in part to the large credit expansion and 
flexibility introduced during the pandemic.85 The capital adequacy ratio (CAR)86 increased during the 
review period and, as of December 2021, was 18.4% (required minimum  CAR is 8% and target CAR 
is 12% ).87,88 The banking sector is therefore adequately capitalized with  CAR well above the levels 
stipulated by international standards.89 
Table  4.13 Top 10 banks by total assets, 2021  
(TRY million)  
Bank  Total 
assets  Operating 
revenue  Pre-tax 
profit  Principal shareholders  Ownership  
T.C. Ziraat Bankasi  A.Ş. 1,370,890  38,757  8,913  Türkiye Wealth Fund  100.0  
Türkiye Vakiflar Bankasi 
T.A.O.  1,007,214  27,363  5,296  Türkiye Wealth Fund  36.0 
Ministry of Treasury and 
Finance (Group A)  27.5 
Public shares  16.1 
VakıfBank Officers and 
Service Government 
Retirement and Health 
Support Fund  
 
Ministry of Treasury and 
Finance (Group B)  10.6 
 
 
 
 
9.9 
 
81 The SDIF is responsible for the protection of public rights, and the management and disposal of 
bank assets entering into administration or liquidation procedures.  
82 Participation banks base their activities on interes t-free banking in line with globally accepted 
Islamic  finance principles.  
83 IMF Country Report No.  21/110, pp. 2 and 12.  
84 The Banks Association of Türkiye (2022), Banks in Türkiye 2021 . Viewed at: 
https://www.tbb.org.tr/Content/Upload/istatistikiraporlar/ekler/3401/Banks_in_Turkiye_2021.pdf . 
85 IMF Country Report No.  21/110, p. 93. 
86 CAR is a measurement of a bank's available capital expressed as a percentage of a 
bank's  risk-weighted credit exposures.  
87 According to Board Resolution No. 2026 of 16 November  2006, the minimum capital requirement is 8% 
and the target capital adequacy ra tio is 12% , which is required to open a new branch, issue a bond, open a 
branch , or acquire an affiliated or co -controlled partnership or subsidiary in off -shore banking areas.  
88 Investment Office, Türkiye Your Resilient Partner . Viewed at: 
https://www.invest.gov.tr/en/library/publications/lists/investpublications/invest -in-turkiye -roadshow -
booklet.pdf . 
89 IMF Country Report No.  21/110, p. 94. WT/TPR/S/ 439 • Türkiye  
 
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 Bank  Total 
assets  Operating 
revenue  Pre-tax 
profit  Principal shareholders  Ownership  
Türkiye İş Bankasi  A.Ş. 926,569  37,834  15,476  Türkiye İş Bank Cooperation 
Members Supplementary 
Social Security and Aid Fund  37.3 
Republican People's Party  28.1 
Türkiye Halk Bankasi  A.Ş. 901,217  22,989  1,406  Türkiye Wealth Fund  75.3 
Public Shares  24.7 
Türkiye Garanti Bankasi 
A.Ş. 757,802  55,088  17,305  BBVA Banco Bılbao Vızcaya 
Argentarıa S.A  49.9 
Yapi Ve Kredi 
Bankasi  A.Ş. 736,770  32,250  13,486  Koç Financial Services Inc.  41.0 
Uni Credit (UCG)  18.0 
Koç Holding A.Ş  27.0 
Akbank T.A.Ş.  708,911  36,766  16,066  Hacı Ömer Sabancı Holding 
A.Ş 40.8 
QNB Finansbank A.Ş.  371,369  12,641  4,990  Qatar National Bank  99.9 
Türkiye İhracat Kredi 
Bankasi A.Ş.  322,616  4,002  3,107  Ministry of Treasury and 
Finance  100.0  
Denizbank A.Ş.  308,719  15,553  4,415  Emirates Nbd Bank Pjsc  100.0  
Source:  Information provided by the authorities.  
4.61.  Advanced electronic banking services by banks for secure client -oriented services are widely 
available.90 Digital banking continued to increase significantly during the review period. Thus, for 
exampl e, the volume of online banking transactions increased by 27% from 2020 to 2021.91 
4.62.  The BRSA is responsible for the regulation and supervision of banks and non -bank financial 
institutions as stipulated in Law No. 5411 of 19  October  2005 on Banking, Law  No. 5464 of 
1 March  2006 on Bank Cards and Credit Cards, and Law No. 6361 of 13  December  2012 on Financial 
Leasing, Factoring, Financing and Saving Financing Companies. The BRSA regulates deposit banks, 
participation banks, investment and development banks, branches and representa tive offices of 
foreign banks, and non -bank financial institutions (such as financial leasing, factoring, financing and 
saving financing companies, and asset management companies). The BRSA implements  its orders 
through laws, regulations, communiqués, and guidelines. Under Law No.  5411, the BRSA oversees 
the principles and procedures regarding the prudential bank regulation related to liquidity, capital 
adequacy, risk management and provisioning requirements, and corporate governance principles. 
The BRSA is  led by a board of seven  members, each of whom hold s office for four  years . 
4.63.  According to the authorities, in 2021, the Banking Law was amended to : (i) require banks to 
prepare recovery plans and to submit them to the BRSA; (ii) include a new set of rules t hat recognize 
market manipulation and misleading transactions conducted through banking activities; (iii) expand 
the scope of transactions that are considered to be loans; (iv) re-determine the scopes of risk 
groups ; (v) intensify oversight and supervision  in banking;  (vi) implement stronger protection of 
banking secrets;  (vii) introduce  remote  customer -onboarding;  and (viii) introduce the Central Bank 
of the Republic of Türkiye  (CBRT ) as the authority to set a cap on interest  rates,  fees, charges,  
commissions , and other  benefits  charged  by banks  on all kinds  of transactions.  
4.64.  In addition, t ax exemptions  for asset management  companies  were introduced  with the 
amendment  by Law No. 7338 of 26 October  2021 on Amending  the Tax Procedure  Law and Certain  
Laws. Saving  financing  companies  operating  in Türkiye  are regulated  and supervi sed by 
Law No. 7292 of 7 March  2021 on the Amendment  on the Financial  Leasing,  Factoring,  Financing  
and Savings  Financing  Companies.  In addition,  with the same  amendment,  minimum  capital  
requirements  are determined  as TRY 100 million  for saving  financing  companies,  and as 
TRY 50 million  for financial  leasing,  factoring,  and financing  companies.  
4.65.  In 2020, the BRSA also adopted measures regarding certain Turkish lira transactions 
conducted by banks in response to the economic slowdowns that occurred due to COVID -19.92 These 
 
90 The Banks Association of Türkiye (2022), Banks in Türkiye 2021 . Viewed at: 
https://www.tbb.org.tr/Content/Upload/istatistikirapor lar/ekler/3401/Banks_in_Turkiye_2021.pdf . 
91 The Banks Association of Türkiye (2022), Banks in Türkiye 2021 . 
92 BDDK , Press Release 28/07/2020. Viewed at: 
https://www.bddk.org.tr/Duyuru/EkGe tir/703?ekId=726 . WT/TPR/S/ 439 • Türkiye  
 
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 measures limited Turkish lira transactions performed by banks with financial institutions located 
abroad and steps were taken to encou rage the use of the country's Turkish lira resources during the 
pandemic.  
4.66.  Banking regulations allow for the establishment of three types of banks: deposit, development 
and investment, and participation.93 Banks must be established as joint -stock companies.  According 
to the authorities, the Banking Law stipulates that in order to establish a deposit or participation 
bank a minimum paid -in capital of TRY 30  million is required and TRY 20  million for a development 
and investment bank. Newly incorporated deposi t and participation banks must hold share capital 
as high as USD  300 million while this amount is USD  30 million for development and investment 
banks. Banks established in  Türkiye must seek permission from the BRSA for mergers, 
disintegration, transfer of shares within limits and voluntary liquidations , and for establishing 
partnerships with individuals or corporations.  
4.67.  Domestic and foreign banks are subject to the same rules in terms of establishment, 
operation, regulatory requirements , and supervision. Domestic and foreign banks' on -site and 
off-site supervision is performed by the BRSA pursuant to Article  95 of the Banking Law.  Provided 
that they meet the requirements under the Banking Law and related regulations, foreign individuals 
or corporations may  establish and operate banks. Foreign banks may also have branches or 
representative offices in Türkiye  to coordinate their operations with the approval of the BRSA .94 
Foreign banks are allowed to raise capital domestically.  
4.68.  According to the authorities , the regulatory and supervisory framework of Türkiye's banking 
sector is recognized as third country equivalent to EU legislation in terms of EU Regulation 575/2013 
on Prudential Requirements for Credit Institutions and Investment Firms. Likewise, according to the 
results of the Regulatory Consistency Assessment Program carried out by the Basel Committee, as 
of 2016 Türkiye's risk -based capital regulations and liquidity coverage ratio regulation are considered 
fully in line with Basel III standards.  
4.69.  The regul atory framework for asset management companies (AMCs) was amended with the 
introduction of the Regulation Governing the Principles of Incorporation and Operations of Asset 
Management Companies and Transactions Related to the Acquisition of Receivables publ ished as 
of 14 July 2021 in the Official Gazette No. 31541. The Regulation updated the legal infrastructure 
for AMCs with the objective of enhancing these companies' capacities. An AMC must be authorized 
by the BRSA to operate. According to the authorities , the ratio of the equity of the  AMC to its total 
assets is required to be fixed and maintained at a minimum of 3%. In addition, the condition of 
having paid -in capital, free of all kinds of collusion and in cash, was increased to TRY  50 million 
(previousl y TRY  20 million). An AMC may open branches in Türkiye or abroad and may provide 
intermediation, support , and consultancy services in the collection, restructuring , or transfer of the 
receivables and other assets of the source institutions ( the Savings Dep osit Insurance Fund, banks, 
or other financial institutions that assign their receivables or other assets incurred based on their 
main fields of activity to the AMCs ) arising from their main fields of activity.  
4.70.  The insurance market comprises insurance comp anies, reinsurance companies, and insurance 
intermediaries (brokers and agencies). In October 2022, there were 70 insurance companies, most 
of which operated in non -life insurance (Table  4.14). 
Table  4.14 Insurance sector – number of companies, 2019 -22 
Type of activit y December 2019  December 2020  December 2021  October 2022  
Non-life 38 39 41 45 
Life 5 6 6 6 
Life and pension  17 15 15 15 
Reinsurance  2 3 3 4 
Total  62 63 65 70 
Source:  Information provided by the authorities.  
 
93 Norton Rose Fulbright (2022), Doing Business in Türkiye: Banking and Finance . Viewed at: 
https://www.norton rosefulbright.com/en/knowledge/publications/9a3448df/doing -business -in-turkey -banking -
and-finance . 
94 Norton Rose Fulbright (2022), Doing Business in Turkey: Banking and Finance .  WT/TPR/S/ 439 • Türkiye  
 
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 4.71.  The total premium production increased from TRY 40.4  billion in 2016 to TRY  126.2  billion as 
of August 2022.95 Total premiums increased by  102.3% as of August 2022 compared to August  2021 
(TRY 62.4 billion as of August 2021). The share of non -life insurance premiums in total was 85.8%, 
while life insurance represented a share of 14.2% as of  August  2021.96 Motor insurance accounts 
for the largest share of non -life premiums, at around 46.16%. According to t he information provided 
by the authorities, in August 2022 insurance sales were dominated by insurance agencies with 53% 
of the market share, followed by banks (21.7%), brokers 13.1%, insurance companies 9.3% , and 
others 3%.  
4.72.  In May 2021, the Special Risks Management Centre was established to cover risks with 
no coverage or risks for which it is difficult to find coverage.  According to the authorities, in 
January  2019, with 100% Ministry of Treasury and Finance (MoTF) capital, Türk Reasürans A.Ş. was 
establi shed to increase the domestic reinsurance capacity  (Section  3.3.5.2.4) . In addition, in 
April 2020, Türkiye Sigorta (non -life) and  Türkiye Hayat Emeklilik (life/pension) were established 
through the merger of six state -owned insurance companies that were p reviously controlled by 
state-owned banks. The main shareholder of the merged insurance company is the Türkiye Wealth 
Fund (81.1% of the shares)  (Section  3.3.5.2.3) . 
4.73.  Law No.  5684 of 14  June 2007 on Insurance is the primary piece of legislation governing 
insurance activities and provides guidance on the supervision and audit of insurance and reinsurance 
companies, agencies, and brokers. The Insurance and Private Pension Regulation and Supervision 
Agency ( IPRSA ) was established, by Presidential Decree No.  47 of 18 October  2019, to regulate and 
supervise the insurance and private pension sectors.97 Therefore, the authority previously given to 
the M oTF, the General Directorate of Insurance, and the Insurance Auditing Board was transferred 
to IPRSA. IPRSA conducts its activities under the M oTF and fulfils its duties independently under its 
own responsibility and its decisions are not subject to any review.98 The Insurance and Private 
Pension Regulation and Supervision Board acts as the decision -making body of IPRSA. The 
responsibilities of IPRSA include : (i) preparing,  implementing, and monitoring legislation related to 
insurance and private pension; (ii) implementing and monitoring measures for the protection of 
insured persons and participants; (iii) and c onducting investigations, audits, and examinations 
related to individuals and institutions operating in the fields of insurance and private pension.99 
4.74.  The Pension Monitoring Centre continues to ensure the safe and effective operation of the 
individual pens ion system; protect participants' rights and interests; oversee the operations of 
pension companies and individual pension intermediaries; and monitor the operations of portfolio 
management companies related to pension mutual funds.100 
4.75.  An insurance company can operate only in the form of a joint -stock company or, in the case 
of mutual insurance funds, a cooperative company. As required by  paragraph 1 of Article  11 of the 
Law on Insurance, insurance companies must apply to IPRSA to be licen sed in each insuran ce licence 
class.101 As per paragraph 2 of Article  5 of the Law, insurance companies can operate  only in life or 
non-life insurance groups.102 The minimum paid -up capital requirement for insurance and 
reinsurance, as of 4  February  2022, cannot be less than T RY 40 million.103 
 
95 Türkiye Sigorta Birligi, Sector Report 2021.  Viewed at: 
https://tsb.org.tr/media/attachments/TSB_SEKTOR_TR21_2807.pdf . 
96 Türkiye Sigorta Birligi, Sector Report 2021.   
97 IPRSA , Activity Report 2020 . Viewed at: https://seddk.gov.tr/files/doc/turkish -insurance -and-private -
pension -regulation -and-supervision -authority -activity -report -2020.pdf . 
98 GIDE (2019), "Establishment of the Insurance & Private Pension Regulation Supervision Agency in 
Turkey", 20  November. Viewed at: https://www.gide.com/fr/actualites/establishment -of-the-insurance -private -
pension -regulation -supervision -agency -in-turkey . 
99 GIDE (2019), "Establishment of the Insurance & Private Pension Regulation Supervision Agency in 
Turkey", 20  November.  
100 Finance Office, Pension Monitoring Center . Viewed at: https://www.cbfo.gov.tr/en/insurance -
sector/pension -monitoring -center . 
101 The Law Reviews (2022), "The Insurance and Re insurance Law Review: Turkey", 24  April. Viewed at: 
https://thelawreviews.co.uk/title/the -insurance -and-reinsurance -law-review/turkey . 
102 ATLAW, Turkey Insuran ce and Reinsurance . Viewed at: 
https://www.aktlaw.com/uploads/generalcontent/covers/AKT%20Insurance&Reinsurance%20LEGAL%20500.p
df. 
103 The Law Reviews (2022), "The Insurance and Reinsurance Law Review: Turkey" , 24 April. WT/TPR/S/ 439 • Türkiye  
 
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 4.76.  Turkish and foreign insurance and reinsurance companies are subject to the same regulations. 
Foreign insurance and reinsurance companies may operate by opening branches, incorporating a 
company in Türkiye, or acquiring shares of a local in surance company. Insurable interests of 
residents of Türkiye must be insured by insurance companies established in Türkiye with the 
exceptions of import and export of freight, ship chartering, and life insurance.104 
4.77.  IPRSA also supervises solvency of insurer s. Its Regulation on Measurement and Evaluation of 
Capital Adequacy for Insurance, Reinsurance and Private Pension Companies published 
in August  2015 in Official Gazette No. 29454 sets out solvency requirements to ensure that such 
companies keep enough equ ity capital to cover losses that may arise due to their existing liabilities 
and potential risks. According to the authorities, under this Regulation, a capital adequacy statement 
must be submitted to IPRSA twice a year.  
4.78.  The Regulation on  Activities to be Evaluated Under Insurance Services and on Distance 
Insurance Contracts provides the minimum conditions to be applied  for insurance contracts for 
website or mobile applications.105 The Regulation stipulates that insurers are responsible for ensuring 
the secu rity of the website and mobile applications, providing  customers with required  information, 
and informing the  Turkish Union of Chambers and Commodity Exchanges (TOBB) of the list of 
agencies that will conclude a contract in this way.106 
4.4.1.3.2   Securities  
4.79.  In Decemb er 2021, there were 561 companies registered with the CMB, 446  of which were 
listed on Türkiye's stock exchange, Borsa Istanbul (BIST) (Table  4.15). In 2021, the total traded 
value of the BIST Equity Market was USD  859 billion (USD  338 billion in 2016).107 Market 
capitalization, which was USD  163.7  billion in 2021 (USD  240.3  billion in 2020)108, was equivalent 
to 30.3% of GDP in 2021 (35.3%  in 2020).109 According to the World Federation of Exchanges  (WFE) 
figures, in 2021, the BIST had the highest turnover vel ocity among the members of the WFE. In 
addition, it ranked 20th in traded value and 37th in market capitalization.110 
Table  4.15 Main indicators – Borsa Istanbul  
  
Number of companies registereda 561 
Borsa Istanbul -listed companiesb 446 
Other publicly held companies  115 
Borsa Istanbul markets  2021 trading volume (USD  billion)  
Equity market  859 
Bond market  1,960  
Futures and options market  490 
Precious metals and diamond market  20 
a Information taken from Borsa Istanbul, Listed Companies . Viewed at: 
https://www.borsaistanbul.com/en/sayfa/2641/listed -companies . 
b Information taken from Turkish Capital Markets Association (TCMA), Turkish Capital Markets , 
May 2022. Viewed at: https://www.tspb.org.tr/wp -
content/uploads/2022/05/Turkish_Capital_Markets -202205 -ENG.pdf . As at March 2022, 
Borsa  Istanbul data exclude mutual funds, investment trusts, and Pre -Market Trading Platform.  
Source:  Borsa Istanbul, Consolidated Data . Viewed at: 
https://www.borsaistanbul.com/en/sayfa/2784/consolidated -data. 
4.80.  The main regulation in the securities sector, Law No.  6362 of 6 December  2012 on Capital 
Markets , regulates and supervises capital markets to ensure the functioning and development of 
 
104 The Law Reviews (2022), "The Insurance and Reinsurance Law Review: Turkey" , 24 April. 
105 Official Gazette  (2021), No.  31513 , 16 June. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2021/06/20210616 -3.htm . 
106 CMS Law -Now (2022), "Turkey's 2021 Overview for Insurance Sector", 12  April. Viewed at: 
https://www.cms -lawnow.com/ealerts/2022/04/turkeys -2021-overview -for-insurance -sector . 
107 Borsa Istanbul, Investing in Borsa Istanbul Markets . Viewed at: 
https://www.borsaistanbul.com/files/investing -in-borsa -istanbul -markets.pdf . 
108 Borsa Istanbul, Investing in Borsa Istanbul Markets .  
109 Borsa Istanbul, 2021 Annual Integrated Report . Viewed at: 
https://www.borsaistanbul.com/files/BORSA_2021_2021_ANNUAL_INTEGRATED_REPORT.pdf . 
110 Borsa Istanbul, 2021 Annual Integrated Report .  WT/TPR/S/ 439 • Türkiye  
 
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 capital market s in a secure, transparent, efficient, stable, fair, and competitive environment and to 
protect the rights and interests of investors.111 Amendments to the Law on Capital Markets were 
published in the Official Gazette of 25  February  2020. The amendments add ressed certain  practical 
difficulties related to regulating investment funds  and venture capital funds; defined the 
infrastructure for new capital market instruments such as project -based securities; secured issuance 
of securities and debt -based crowdfunding; and enhanc ed the efficiency of supervision and 
monitoring through measures s uch as more preventive criminal and administrative  sanctions.  
4.81.  The CMB is the main regulatory and supervisory authority in charge of the securities and 
derivatives markets. Its objective is to maintain safe, fair, transparent, and efficient capital markets;  
protect the rights and interests of investors; and facilitate the public's participation in economic 
development in an efficient manner. To that end, it regulates publicly  held companies, banks that 
perform capital  market activities or issue capital  marke t instruments, intermediary institutions, 
mutual funds, portfolio management companies , and investment companies. The CMB also regulates 
the Borsa Istanbul, Istanbul Settlement and Custody Bank, the TCMA , the Central Registry Agency, 
the Investor Compensat ion Centre, and other related institutions operating in the capital markets, 
such as independent audit firms, rating agencies, appraisal firms, asset leasing companies, market 
operators, and trade repositories  (Table  4.16). 
Table  4.16 Institutions in the securities market, December  2021  
 Type of institution  Number of institutions  
Investment firms  118 
Banks  46 
Banks with foreign capital  21 
Intermediary institutions  72 
Intermediary institutions with foreign capital  7 
Portfolio management companies  52 
Portfolio management companies with foreign capital  7 
Credit rating agencies  9 
Independent audit companies  108 
Source:  CMB. 
4.82.  The CMB has the authority to withdraw permission for an activity and a licence it has granted 
in the following cases: (i)  not performing an activity under the related permission for two  years 
starting from the date the permission was granted; (ii)  having obtained permission for an activity 
by making false statements; and (iii ) no longer being able to meet the conditions required for the 
permission for activity.  
4.83.  The TCMA is the self -regulatory organization in the Turkish capital markets that establishes 
and enforces regulations on subjects assigned by legislation or by the CMB.112 All intermediary 
institutions and banks that are authorized for capital market operations, portfolio management 
companies, and investment trusts are obligated to become members of the TCMA.  
4.84.  Borsa Istanbul113 (BIST) is Türkiye's main exchange , which was f ormed by combining Istanbul 
Stock Exchange, Istanbul Gold Exchange, and Derivatives Exchange of Türkiye in 2013. BIST has 
four markets: equity, derivatives, debt securities , and precious metals and diamond.  
4.85.  The Borsa Istanbul Private Market, established in  2014, is a membership -based web platform 
designed to create a marketplace bringing together entrepreneurs and investors to solve their 
financing and liquidity problems.  
4.86.  According to Article  39 of the Law on Capital Markets, banks can carry out the followi ng 
investment services : (i) reception and transmission of orders in relation to capital market 
instruments ; (ii) execution of orders in relation to capital market instruments in the name and 
account of the customer or in their own name and in the account o f the customer; (iii)  dealing in 
 
111 Esin Attorney Partnership (2020), "Innovations in the Turkish Capital Markets Law: Security Agent, 
Bondholders Meetings, Project Bonds", 25  February. Viewed at: 
https://www.esin.av.tr/2020/02/25/innovations -in-the-turkish -capital -markets -law-security -agent -
bondholders -meetings -project -bonds -2/. 
112 TCMA (2021), Turkish Capital Markets . Viewed at: https://www.tspb.org.tr/wp -
content/uploads/2021/01/Turkish_Capital_Markets -202101 -ENG-1.pdf. 
113 Türkiye Wealth Fund owns 80.6% of Borsa Istanbul.  WT/TPR/S/ 439 • Türkiye  
 
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 own account; and (iv) safekeeping and administration of capital market instruments in the name of 
the customer and portfolio custody services. The same Article also authorizes the CMB to determine 
principles and procedures regarding investment services and activities to be carried out by banks. 
Accordingly, deposit and participation banks may not conduct order execution and dealing in own 
account activities with respect to shares and derivatives on shares or on share indices , as well as 
leveraged foreign exchange transactions.  
4.87.  In addition to the investment services and activities that can be carried out by 
banks  (including order execution and dealing on own account in shares and derivatives on shares 
and share indices), inves tment and development banks can also manage portfolios, provide 
investment advice, underwrite capital market instruments on a firm commitment basis, and place 
financial instruments without a firm commitment basis.  Regulations that govern investment and 
development banks differ from those for banks, as capital requirements for investment and 
development banks are two  thirds of the amount set for deposit banks.114 
4.88.  Permission from the CMB is required to establish intermediary institutions and portfolio 
management companies.115 Investment services and activities can be performed only by investment 
firms, and they require approval from the CMB. According to the authorities , ancillary services116 are 
performed by investment firms and portfolio management comp anies without being subject to a 
separate licence ; however , they  can only be performed upon notification to the CBM.  
4.89.  Joint-stock companies that offer their shares to the public or have more 
than 500 shareholders are subject to the Law on Capital Markets. I n addition, securities issued by 
state economic enterprises, including those within the scope of the privatization programme, are 
subject to the disclosure requirements.117 In addition, their shares must be registered and issued 
for cash, and their capital must not be less than the amount determined by the CMB.  
4.90.  According to the information provided by the authorities, certain products traded at BIST are 
subject to zero withholding tax such as bonds, investment funds, and listed futures and options.  
4.4.2   Telecommu nications  
4.4.2.1   Features  
4.91.  Türkiye's telecommunications sector accounted for 1.27% of GDP118 in 2020 and 
employed  28,012  persons in 2021. The review period witnessed strong growth in 
Türkiye's  telecommunications market, as reflected in the substantial increases in revenue, number 
of subscriptions (particularly mobile and fixed broadband), and investments.  International trade in 
telecommunications services declined during the review period, with a particularly drastic decrease 
in imports (Table 4. 17). 
Table  4.17 Telecommunications indicators, 2016 -21 
  2016  2017  2018  2019  2020  2021  
Trade in telecommunications services (USD  million, BoP basis)  
Trade balance  -450 -483 -311 -306 -213 -45 
 Exports  498 487 471 394 332 433 
 % of total services exports  1.1 0.9 0.8 0.6 0.9 0.7 
 Imports  948 970 782 700 545 478 
 % of total services imports  3.7 3.6 2.7 2.4 2.3 1.5 
Number of employeesa 30,285  29,854  28,183  27,518  28,451  28,012  
 
114 Thomson Reuters, Banking Regulation in Türkiye: Overview. Viewed at:  
https://uk.practicallaw.thomsonreuters.com/w -007-
5596?tra nsitionType=Default&contextData=(sc.Default)&firstPage=true . 
115 Law on Capital Markets, Article  43. 
116 Ancillary services  provide advisory services; grant credits; lend or provide foreign currency services 
associated with investment services and activities; provide investment research, financial analysis, or general 
advice; provide services in relation to the conduct of underwriting; provide intermediary services for obtaining 
financing by borrowing or through other means; and provide wealth management and fi nancial planning.  
117 Norton Rose Fulbright (2022), Doing Business in Türkiye: Capital Markets . Viewed at: 
https://www.nortonrosef ulbright.com/en/knowledge/publications/87504836/doing -business -in-turkey -capital -
markets . 
118 Information provided by the authorities.  WT/TPR/S/ 439 • Türkiye  
 
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   2016  2017  2018  2019  2020  2021  
Revenue (TRY billion)  
Total 35.3 39.5 45.0 50.6 57.6 67.2 
 Fixed -telephone services  9.0 9.7 10.4 11.7 14.6 17.1b 
 Mobile networks  26.4 29.8 34.7 38.9 43.0 50.2 
Number of subscriptions (No.  million)  
Fixed phone  11.1 11.3 11.6 11.5 12.4 12.3 
Mobile phone  75.1 77.8 80.1 80.8 82.1 86.3 
- of which 2G  4.5 3.1 2.1 1.8 1.9 2.0 
- of which 3G  18.9 10.2 6.6 4.8 4.3 4.1 
- of which 4G  51.7 64.6 71.3 74.2 75.9 80.2 
Fixed  broadband  10.5 11.9 13.4 14.2 16.7 18.1 
Fibre-to-the-home/building Internet subscriptions  1.9 2.3 2.8 3.2 4.0 4.8 
Penetration rate (%)  
Fixed phone  13.7 13.8 14.0 13.8 14.8 14.5 
Mobile phone  92.6 94.8 96.7 96.8 97.6 101.8  
Fixed  broadband  13.0 14.5 16.2 17.0 19.9 21.4 
Volume of investment (TRY billion)  
Total 5.7 5.9 6.7 10.2 13.0 15.0 
 Fixed phone  1.4 1.8 1.9 2.4 3.3 4.8c 
 Mobile phone  4.3 4.0 4.8 7.9 9.7 10.2 
Internet users (%)  58.3 64.7 71.0 74.0 77.7 81.4 
a Full-time equivalent telecommunications employees . 
b Revenue only reflects Türk Telekom's net sales revenue. It does not include the income of other 
fixed-telephone services operators.  
c Investment amount includes only Türk Telekom's investments.  
Source:  Information and Communication Technologies Authority, Market Data. Viewed at: 
https://www. btk.gov.tr/pazar -verileri ; ITU World Telecommunication/ICT Indicators (WTI) 
Database  2022, July 2022 edition; and WTO STATS. Viewed at: https://timeseries.wto.org/ . 
4.92.  Türk Telekom holds significant market power in fixed-line wholesale telephone services.119 Its 
total share of the fixed telecommunications market, based on revenues, decreased to 80% in  2021 
compared to 89% in 2016. Türk  Telekom's  shares are divided as follows: Türkiye Wealth Fund, 
61.68%; M oTF, 25%; an d the rest free float. In mobile services, the leading companies in terms of 
market shares, based on numbers of subscribers, are Turkcell (41 .3%), Vodafone (30.9%) and 
Türk Telekom (27.9%).  
4.93.  There are more companies providing Internet services compared to m obile services; such 
companies include  TTNET (a subsidiary of Türk Telekom) (59%), Superonline (14%), and 
Vodafone  Net (7%). As of December 2021, there were 50 authorized mobile virtual network 
operators (MVNO) in Türkiye and 24 of them were granted with r ight of use (contractual 
agreement).120,121 
4.94.  Both wholesale fixed and mobile termination rates declined in recent years and will continue 
to decrease in 2023 and  2024 (Table 4. 18). 
Table  4.18 Interconnection fees, 2022 -24 
 
01/01/2022  01/01/2023  01/01/2024  
Mobile voice call termination rates (Kra/min)  
 TT Mobil  2.71 2.41 2.10 
 Turkcell  2.39 2.25 2.10 
 Vodafone  2.44 2.28 2.10 
Fixed voice call termination rates (Kr/min)  
 Türk Telekomünikasyon AS  1.63 1.55 1.47 
 Türksat Uydu Haberleşme Kablo Tv ve İşletme AS, and 
 alternative fixed network operators  2.80 2.20 1.47 
 
119 Thomson Reuters Practical Law, Communications: Regulation and Outsourcing in Turkey: Overview . 
Viewed at: https://ca.practicallaw.thomsonreuters.com/7 -620-
0891?transitionType=Default&contextData=(sc.Default)&firstPage=true . 
120 An MVNO "is a rese ller for wireless communications services. [It] leases wireless capacity (in effect, 
purchases 'minutes') from a third -party mobile network operator … at wholesale prices and resells it to 
consumers at reduced retail prices under its own business brand". T ech Target, Mobile Virtual Network 
Operator (MVNO) . Viewed at: https://www.techtarget.com/whatis/definition/mobile -virtual -network -operator -
MVNO#:~:text=A%20mobile%20virtual%20network%20operator,under%20its%20own%20business%20bran
d. 
121 Authorized MVNOs list (available in Turkish only): https://yetkilendirme.btk.gov.tr . WT/TPR/S/ 439 • Türkiye  
 
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01/01/2022  01/01/2023  01/01/2024  
SMS termination rates for mobile networks (Kr per SMS)  0.80 1.00 1.20 
MVNO call termination Rates (Kr/min)  3.12 2.65 2.10 
a Kurus (Kr).  
Note:  Taxes are not included in rates.  
Source:  Information and Communication Technologies Authority, Interconnection Fees . Viewed at: 
https://www.btk.gov.tr/arabaglanti -ucretleri ; and information provided by the authorities.  
4.4.3   Institutional and legal framework  
4.95.  Telecommunications services are regulated by the Ministry of Transport ation and 
Infrastructure  and the  Information and Communication Technologies Authority (ICTA). Under 
Article  5 of Law  No. 5809 of 5  November  2008 on Electronic Communications, the Ministry is 
responsible for: (i)  setting strategies and policies regarding elec tronic communications services that 
are based on scarce resources such as numbering, Internet domain names, satellite position, and 
frequency allotment; (ii)  constructing and developing electronic communications infrastructure, 
network s, and services; (iii ) creating policies regarding the development of the electronic 
communications equipment industry and determining policies towards taking measures that 
encourage domestic production of electronic communications equipment; and (iv)  conducting 
(including thr ough third parties ) necessary research with a view to determine and implement 
electronic communications policies.122 
4.96.   As provided for in Article  6 of the Law on Electronic Communications, the main duties of ICTA 
are: (i)  authorization, numbering , and number portability; (ii)  regulation studies for the consumer 
rights and quality of service;  (iii) tariffs, access and interconnection, settlement of disputes, and 
international mobile roaming; (iv)  regulations regarding competition, market analysis, and 
determination of operators with significant market power123; (v)  e-signature and Registered 
Electronic Mail regulations; (vi) cyber security and network security; (vii) planning and allocation of 
the frequencies, satellite positions, installation , and us e of radio equipment; and (viii)  market 
surveillance and inspection.  
4.97.  Companies providing telecommunications services must obtain prior authorization from ICTA, 
according to Law No. 5809 on Electronic Communications and Regulation No.  27241 of 28  May 2009 
on Authorization Regarding the Electronic Communications Sector. For companies that do not require 
an allocation of resources, notification must be given to ICTA and for those companies requiring 
resource allocation, prior authorization and right of use mus t be obtained from ICTA.  
4.98.  While foreign ownership in the telecommunications sector is not restricted, a company has to 
be established as a limited liability or joint -stock company for it to be granted authorization by ICTA.  
A foreign entity or individual ca n be the sole shareholder of such an authorized company.124 
4.99.  Universal service  obligations are governed under Law No.  5369 of 16  June 2005 on Universal 
Service.125 The scope of the universal service may be redefined by the President upon a proposal of 
the Min istry of Transportation and Infrastructure  in consultation with ICTA and operators at certain 
intervals, but not more than three years, with due consideration to Türkiye's  social, cultural, 
economic, and technological conditions.126 
4.100.   ICTA has the authority t o impose one or more access obligations on operators with significant 
market power according to the Market Analysis Regulation. Obligations require operators to prepare 
 
122 Laws Turkey, 5809 Electronic Communications Law . Viewed at: 
http://www.lawsturkey.com/law/5809 -electronic -communications -law. 
123 A Cooperation Protocol concluded in 2011 between the CTA and the Competition Authority aims to 
ensure cooperation and coordination in areas where their tasks overlap.  
124 Lexology, In Brief: Telecoms Regulation in Turkey.  Viewed at: 
https://www.lexology.com/library/detail.aspx?g=98ffd2de -9a1c-45a4-bedb-2d59c38f1701 . 
125 Law on Universal Service (available in Turkish only). Viewed at: 
https://mevzuat.gov.tr/mevzuat?MevzuatNo=5369&MevzuatTur=1&MevzuatTertip=5 . 
126 For more details on these universal service obligations, including with regard to scope, reve nues, and 
costs, see WTO document WT/TPR/S/331/Rev,1, 9  August  2016, paras.  4.163 -4.165.  WT/TPR/S/ 439 • Türkiye  
 
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 a reference access and/or interconnection offer to stipulate the publicity of terms, co nditions, and 
charges of access for services.127 
4.101.   Operators freely set their tariffs, provided that they comply with ICTA's regulations and the 
relevant legislation. In case that an operator is designated as having significant market power in the 
relevant ma rket, ICTA shall be entitled to determine the procedures regarding the approval, 
monitoring , and supervision of tariffs as well as the upper and lower limits of the tariffs and the 
procedures and principles for implementation.  
4.102.   The Law on Electronic Communi cations provides a general framework for access and 
interconnection regulations and the rules and principles of access and interconnection matters are 
set out in the Access and Interconnection Regulation (By -Law) published in Official 
Gazette  No. 27343 on 8 September  2009. Access and interconnection agreements are freely 
negotiated and signed between operators, provided that they do not contradict the relevant 
legislation and regulations. Operators should send signed agreements to ICTA in 15 days. However, 
after conducting market analysis, operators designated as having significant market power in the 
relevant markets shall be obliged to publish their reference offers after approval of ICTA. If no 
agreement is reached between the related operators within two  months following a new access 
request or that any dispute arises within the scope of an existing access agreement, any one of the 
parties may apply to ICTA for the dispute settlement procedure.  If the parties do not reach an 
agreement during the dispute r esolution process, ICTA shall be entitled to determine the provisions, 
terms, conditions, and rates of the access agreement , which constitute the subjects of dispute, 
within two  months except for the specified exceptional cases.  
4.103.   In accordance with Article  60(1) of the Law on Electronic Communications, ICTA is entitled 
to monitor and inspect the adherence to the legislation, right of use , and other authorization 
requirements; charge operators with administrative fine s up to 3% of the previous calendar year's 
net sales in case of non -adherence ; take necessary measures for the enforcement of national 
security, public order , or public services properly and for the implementation of provisions enacted 
by laws, if necessary , to take over facilities in return for compensation ; and revoke the authorization 
in case of a gross fault or in case the authorization fee is not paid in  due time. 
4.104.   Presidential Decree No.  3469 of 29  January  2021 increased the special communications tax 
rate from 7.5% to  10% for e lectronic communications services such as mobile electronic 
communications services, including sales of prepaid lines; radio and television broadcast 
transmission services via satellite and cable platforms; and wired, wireless, and mobile 
Internet  services . 
4.105.   Law No. 5651 of 31  July 2020 on Publication on the Internet and the Suppression of Crimes 
Committed by Means of Such Publication (Law on Publication on the Internet) provides a legal 
framework for determining liability and responsibility of the main Inte rnet service providers, 
including collective use providers, access providers, location providers, and content providers of 
collective service providers. As stipulated in the Law, ICTA can instruct Internet service providers to 
remove or block online conten t in cases related to a catalogue of crimes or threats to public order, 
security, or other pressing and immediate dangers. Moreover, the Law instructs the removal or 
blocking of content by courts in cases concerning the violation of personal rights and of privacy.  
Article  4 of the Law on Publication on the Internet requires foreign -based social network providers 
whose platforms are accessed from within Türkiye more than 1  million times a day, such as 
Facebook, Twitter, or TikTok, to appoint a real or legal person representative with Turkish nationality 
that is authorized to receive service of administrative and court orders and respond to other 
notifications and requests made by service providers under the Law  (Section  2.5).128 
4.106.   Number portability is mainly re gulated under the Amendment of the Regulation on Number 
Portability published in Official Gazette No.  31748  on 12  February  2022. The regulation stipulates 
that subscriber s may change their operator, geographical position , and service type without having 
to change their subscriber number. Operators are under the obligation to provide number portability.  
 
127 Thomson Reuters Practical Law, Communications: Regulation and Outsourcing in Turkey: Overview . 
Viewed at: https://ca.practicallaw.thomsonreuters.com/7 -620-
0891?transitionType=Default&contextData=(sc.Default)&firstPage=true . 
128 Article  4 was added to Law on Publication on the Internet  on 1 October  2020.  WT/TPR/S/ 439 • Türkiye  
 
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 4.107.   Türkiye ha s recent RTAs with provisions in telecommunication services that go beyond the 
GATS reference paper  (Section  2.3.2.1.1) . 
4.4.4   Transport services  
4.4.4.1   Main features  
4.108.   Transport is T ürkiye's largest services exports category. During the review period , the 
transport services sector's contribution to GDP increased slightly and its share in total imports of 
services increased considerably (Table 4. 19). 
Table  4.19 Basic indicators for transport services sector, 2016 -21 
 2016  2017  2018  2019  2020  2021  
% change (in chain linked volume)a,b 0.1 10.4 3.5 0.9 -8.9 16.1 
% of GDP at current basic pricesa 7.9 8.1 8.4 8.5 7.9 8.8 
% of total employmenta 4.4 4.4 4.4 4.5 4.5 4.6 
Transport services (USD  billion, unless otherwise indicated)  
Trade balance  12.7 14.3 14.9 13.8 8.2 12.8 
Exports  19.7 22.1 24.3 23.4 16.3 24.9 
% of total exports  42.6 41.4 41.5 37.3 46.0 43.4 
 Passenger  7.8 9.5 11.6 11.5 3.4 7.7 
 Freight  8.2 9.0 9.1 8.4 9.5 12.2 
 Other  3.8 3.7 3.7 3.5 3.4 5.1 
Imports  7.1 7.9 9.5 9.6 8.1 12.2 
% of total imports  27.3 28.9 33.2 33.4 33.7 39.5 
 Passenger  0.9 1.0 1.5 1.2 0.4 0.4 
 Freight  4.7 4.9 5.6 6.0 6.1 8.2 
 Other  1.4 1.9 2.4 2.4 1.6 3.5 
a Refers to Section  H – Transportation and Storage (based on NACE Rev.2). Eurostat, 
Glossary:  Statistical classification of economic activities in the European Community (NACE) – 
Statistics Explained. Viewed at: https://ec.europa.eu/eurostat/statistics -
explained/index.php?title=Glossary:Statistical_classification_of_economic_activities_in_the_Europea
n_Com munity_(NACE) . 
b In chain linked volume – to estimate real GDP volume without price effect. Approach used to 
estimate volumes using prices of previous years, instead of a fixed year.  
Source:  TurkStat, National Accounts . Viewed at: https://www.tuik.gov.tr/ ; Ministry of Treasury and Finance, 
Economic Indicators . Viewed at: https://en.hmb.gov.tr/economic -indicators ; and Central Bank of the 
Republic of Türkiye (CB RT), Statistics: Balance of Payments . Viewed at: https://www.tcmb.gov.tr/ . 
4.109.   Maritime transport is the main mode of transportation for exports and imports of goods. 
Exports of goods by maritime transport increased sub stantially during the review period both in 
terms of quantity and value (Table  4.20). In 2020, air and road transportation saw a decrease in 
exports in volume and value terms due to COVID -19.129 
Table  4.20 Trade by mode of transport, 2016 -22 
(Unit: quantity – '000 tonnes; value - USD million)  
 Total  Maritime  Rail Road  Air Other  Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
Exports  
2016 104,733  149,247  80,333  80,139  544 674 22,770  49,537  846 17,909  240 988 
2017 118,715  164,495  92,202  93,379  678 700 24,516  50,988  945 17,217  374 2,210  
2018 131,800  177,169  104,713  108,803  619 754 25,082  52,222  1,067  14,128  320 1,262  
2019 150,759  180,833  121,936  109,114  682 971 26,444  54,462  1,308  14,849  390 1,436  
2020 157,242  169,638  128,937  100,908  998 1,288  26,334  53,128  607 12,733  365 1,582  
2021 179,229  225,214  144,882  133,714  1,382  1,648  31,810  68,749  914 18,736  241 2,367  
 
129 O. Ozaydin and F.  Ulengin (2020), Impacts of COVID -19 on the Transport Sector and Measures as 
Well as Recommendations of Policies and Future Research: A Report on Turkey . Viewed at: 
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686628 . WT/TPR/S/ 439 • Türkiye  
 
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  Total  Maritime  Rail Road  Air Other  Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
Quantity  
Value  
2022a 133,632  188,152  107,463  112,508  1,230  1,753  23,990  57,793  832 14,686  117 1,413  
Imports  
2016 207,104  202,189  197,111  121,013  886 1,769  7,943  36,717  130 23,107  1,034  19,584  
2017 223,485  238,715  212,056  138,597  823 1,295  8,915  40,374  141 34,440  1,549  24,010  
2018 211,051  231,152  200,205  136,737  859 1,299  9,171  39,129  122 28,757  695 25,230  
2019 216,289  210,345  203,964  112,968  1,046  1,448  9,300  37,177  119 29,238  1,860  29,514  
2020 222,829  219,517  208,379  114,838  1,176  2,145  9,496  41,883  101 39,260  3,677  21,390  
2021 230,038  271,426  213,032  157,391  1,455  2,891  12,162  48,897  118 26,057  3,271  36,190  
2022a 177,327  271,249  163,169  147,385  972 2,195  10,664  42,944  88 25,254  2,434  53,472  
a Refers to January and September data.  
Source:  Information provided by the authorities.  
4.110.   According to the authorities , transportation services are now being accorded  high importance 
in Türkiye's RTAs . Türkiye  does not only demand liberal transport market access commitments but 
also includes annexes on logistics and transport servi ces, which include different modes of transport 
and auxiliary services depending on the partner country. Türkiye insists on provisions such as 
freedom of transit, elimination of quantitative restrictions, elimination of passage fees, free 
movement of trans port equipment, ban on specific routes, ban on mandatory modes of transport, 
expedited processing of perishable goods transported, non -discriminatory access and use of 
infrastructure, air trucking, and entry and temporary stay of professional drivers/crew.  Türkiye has 
concluded transportation and auxiliary services annexes with Bosnia and Herzegovina, EFTA, Serbia 
(in force), Georgia, and Ukraine (awaiting ratification)  (Section  2.3.2.1.1) . 
4.4.4.2   Maritime transport  
4.111.   Türkiye is a major global and regional maritime transport hub, and maritime transport is 
regarded as one of Türkiye's most strategic sectors.130 The Turkish -owned Merchant Fleet (1,000  GT 
and above) ranked 15th globally in  2021.131 While the total carrying capacity of the Turkish Merchant 
Fleet (150 GT an d above) decreased between 2016 and 2021, the total number of ships increased 
(Table  4.21). 
Table  4.21 National fleet, 2016 -21 
  2016  2017  2018  2019  2020  2021  
Carrying capacity by type of ship ('000 DWT)a  
Total fleet  8,284  7,988  7.495  6,761  6,321  6,154  
Dry cargo ships ( general cargo)  1,443  1,369  1,246  1,148  1,071  946 
Bulk cargo ships 3,719  2,693  2,637  2,225  1,714  1,692  
Container  1,205  1,392  1,349  1,048  1,029  998 
Tankers carrying liquid/ gas 1,758  2,340  2,023  2,086  2,189  2,179  
Other types of ships 159 194 240 254 318 339 
Fleet by type of ship (number of ships)  
Total fleet  1,951  1,999  2,025  2,024  2,053  2,100  
Dry cargo ships ( general cargo)  379 353 323 298 278 251 
Bulk cargo ships 80 64 64 56 46 45 
Container  72 75 70 57 56 53 
 
130 Ministry of Transportation and Infrastructure, Reaching and Accessing Turkey 2018: Shipping . 
Viewed at: https://www.uab.gov.tr/uploads/pages/denizcilik/denizcilik.pdf . 
131 General Directorate of Maritime Affairs, Merchant Trade Statistics 2021 , Viewed at: 
https://denizcilik.uab.gov.tr/yayinlar . WT/TPR/S/ 439 • Türkiye  
 
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   2016  2017  2018  2019  2020  2021  
Tankers carrying liquid/ gas 190 184 184 178 181 185 
Other types of ships 1,230  1,323  1,384  1,435  1,492  1,566  
a Ships of  150 gross ton nes and above . 
Source:  General Directorate of Maritime Affairs, Merchant  Trade Statistics 2021 . Viewed at: 
https://denizcilik.uab.gov.tr/yayinlar ; and Merchant  Trade Statistics 2020 . Viewed at: 
https://denizcilik.uab.gov.tr/yayinlar . 
4.112.   In Türkiye, there are 169 port facilities that are open to international maritime trade, both 
public and private. The Turkish Maritime Enterprises Company  is a state -owned company responsible 
for the operation of c ertain harbour and shipyards in Türkiye.132 According to the authorities, as of 
December 2022, the ports operated by the company are Sarayburnu, Kuruçeşme, Kabatepe, 
Gökçeada -Kuzu, and Paşalimanı.  During the review period, concession agreements were reached 
with the private sector to operate two po rts and a marina (Section  3.3.5.3).  
4.113.   The mission of the Ministry of Transportation and Infrastructure for the maritime transport 
sector is to develop safe, secure , and environmental friendly transport.133 The Transport and 
Logistics Master Plan, developed by the Ministry, defines the main investment priorities in the 
maritime transport services sector until  2053 as follows134: (i) increasing the number of port facilities 
from 217 to  255; (ii)  making green p ort applications more available; (iii)  increasing the adoption of 
renewable energy sources in ports; (iv)  developing autonomous ship voyages and increasing 
handling efficiency with autonomous systems in ports; and (v)  increasing navigational safety in the 
Istanbul Strait with the Canal Istanbul project.  
4.114.   Maritime transport activities are regulated mainly pursuant to Presidential Decree No.  1 
published in the Official Gazette No.  30474  of 10  July 2018 and Decree Law No.  655 on the 
Organization and Duties of t he Ministry of Transport ation and Infrastructure, Chapter 5 of the Turkish 
Commercial Code (Law No.  6102 of 13  January  2011), and Law No.  815 of  19 April 1926 on Shipping 
on the Coasts of Türkiye (Cabotage) and the Art and Commerce Within Ports and Territo rial 
Waters .135 
4.115.   According to Chapter 5 of the Turkish Commercial Law, the National Ship Register is reserved 
for vessels owned by Turkish citizens and companies majority -owned (51% or more) by Turkish 
nationals. Ships that fulfil the conditions under the Tu rkish Commercial Law can benefit from the 
rights stipulated under the Law on Shipping on the Coasts of  Türkiye (Cabotage) and the Art and 
Commerce Within Ports and Territorial Waters.  
4.116.   According to the authorities, as of December 2021, Türkiye has signed 63  bilateral maritime 
agreements with other countries. Maritime agreements include, among other things:  ensuring equal 
terms in port access and maritime services; mutual recognition of official documents (especially 
regarding vessel classification and seafar ers' licences); providing exemptions from visa requirements 
for seafarers; mutual respect for the enviro nment and relations with third parties; and promotion of 
organizations (such as NGOs and chambers) that provide mutual benefits.  
4.4.4.3   Road  
4.117.   Road transport is the preferred mode of domestic transport, accounting for more than 92.5% 
of the volume of freight and 92.8% of passengers in 2021. According to the authorities, by the end 
of October 2022 the road network included motorways (3 ,633 km, 5%); state 
roads  (30,961 km, 45%); and provincial roads (34 ,131 km, 50%). Between 2016 and 
October  2022, several program mes were implemented to upgrade highways in Türkiye  from single 
 
132 Turkish Maritime Enterprises Company, History . Viewed at: https://www.tdi.gov.tr/tarihce/ . 
133 Ministry of Transpor tation and Infrastructure, Reaching and Accessing Turkey 2018: Shipping . 
Viewed at: https://www.uab.gov.tr/uploads/pages/denizcilik/denizcilik.pdf . 
134 Ministry of Transportation and Infrastructure, Transport and Logistics Master Plan . Viewed at: 
https://www.uab.gov.tr/uploads/pages/bakanlik -yayinlari/uab -u2053 -borsur -a4-18082 2-ecs.pdf . 
135 The Law on Shipping on the Coasts of Türkiye (Cabotage) and the Art and Commerce Within Ports 
and Territorial Waters stipulates the rules for the coastal and inland trade by the vessels flying the Turkish flag. 
It also contains provisions on t he rights of Turkish -flagged vessels to transport goods and passengers from one 
point to another along Türkiye's shores and to perform towing and piloting and all other port services of any 
type within or between Türkiye's ports and shores.  WT/TPR/S/ 439 • Türkiye  
 
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 to dual carriageways. According to the authorities, as of November 2022, 28 ,816 km of T ürkiye's 
road network was dual carriageways (28 ,402 km in December 2021). The Transport and Logistics 
Master Plan of the Ministry of Transport ation and Infrastructure lays out the priorities of the 
investments of the road transport network, including building 18 0 km more dual carriageways 
by 2023 and 390  km by 2029 (a total of 570  km). Private entrepreneurs continue to be invited to 
tender for road projects and , according to the authorities, Build -Operate -Transport Agreements 
tenders are common for road construction. In addition, motorway projects are also financed through 
public -private partnerships under Build -Operate -Transport Agreements. As of October  2022, 
1,351 km of highways (37% of total motorways) have been built under such agreements.  
4.118.   The Ministry of Transportation and Infrastructure regulates road transport in Türkiye, 
including road -safety issues and the conditions applied to cargo operators, carrier a gents, brokers, 
and warehouses. The municipalities are responsible for roads located in residential areas, and the 
General Directorate of Highways is responsible for roads connecting residential areas (such as those 
linking two cities). During the review p eriod, the General Directorate of Highways ceased to 
administer all toll plazas, collecting tolls manually or automatically on a number of roads and bridges; 
bridges and toll collection is managed by the owner when roads and bridges are built under the 
Build-Operate -Transport Model.  
4.119.   Several laws on road transport were updated and adopted between 2016 and October  2022,  
including the Road Transport Regulation published on 8 January  2018. Under this regulation the 
Transportation  Electronic Monitoring and Contr ol System was established, to monitor passengers, 
goods , and shipments. Under this regulation users must record the following information in this 
system: licence plates; passenger information; delivery descriptions; and status of trips and 
deliveries.136 Other regulations implemented between 2016 and 22 include Regulation on Combined 
Freight Transport Issue published in Official Gazette No.  31848  of 27  May 2022; Regulation on 
Special Equipment to be Used in the Transport of Perishable Foodstuffs , in No. 39136 of 2 July 2021; 
Regulation on Transport of Dangerous Goods by Road , in No. 39586  of 18 June 2022; and Regulation 
of Transport Services Inspection , in No. 38660  of 3 June 2021.  
4.120.   According to the authorities, road transport services are provided by private companies and 
operating licences are issued by the Ministry of Transport ation and Infrastructure. Cross -border 
transportation of goods and passengers is subject to bilateral or multilateral agreements. Permits 
are issued by the transit and destination coun tries. Vehicles registered in a foreign country may not 
transport goods or passengers between two points within Türkiye . According to the authorities, 
transit quota limitations applied by partner countries continue to prevent the efficient use of 
Turkish  trucks. In addition, the authorities note that despite the increase in trade relations between 
Türkiye and the European  Union, road transport permit quotas, particularly transit quotas, have 
remained unchanged between 2016  and 20 22. This situation worsened after COVID -19 as demand 
for road transportation increased due to increase in the container prices.  
4.121.   Between 2016 and 2022 , Türkiye signed the road transportation agreements  with the 
following partners : Slovakia (20  October  2016); Oman (10  May 2017); Monten egro 
(13 January  2018); Hungary  (7 November 2019); Uzbekistan (28  March  2020); and 
China  (7 August  2021).  
4.4.4.4   Air transport  
4.122.   In 2021, air transport services contributed nearly 3% of GDP and employed 
253,885  persons. As at October 2022, Türkiye had 57 airports.137 Türkiye's main commercial airport, 
Istanbul Airport, which underwent a major expansion in 2019, has three runways and can facilitate 
120 million  passengers a year.138 In addition, the airport serves more than 277 destinations 
via 72 airlines.139 Turkish Cargo, the air cargo transportation operator of Turkish Airlines, reaches 
 
136 Road Transpor t Regulation published in Official Gazette No. 30295 on 8  January  2018. Viewed at: 
https://www.resmigazete.gov.tr/eskiler/2018/01/20180108 -1.htm . 
137 Data provided by DG Civil Aviation.  
138 Eways Aviation (2020), "Why Turkey Is the Next Big Market in Aviation", 10  July. Viewed at: 
https://www.eways -aviation.com/blog/why -turkey -is-the-next-big-market -in-aviation . 
139 DG Civil Avia tion. WT/TPR/S/ 439 • Türkiye  
 
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 over 340  destinations with a fleet of 383 aircraft, 20 of which are dedicated freighters.140 It ranked 
fourth among the top global air freighters in 2022.141 
4.123.   Table  4.23 details  the number of commercial aircraft movements, the number of passengers, 
and the volume of freight handled by the Turkish airport system during the review period. The 
number of passengers on international lines increased between 2016 and  2019 from 71  millio n 
passengers to 108  million passengers. However, in 2020 air passenger traffic was drastically 
impacted by the COVID -19 pandemic and the situation was exacerbated by continued border and 
travel restrictions globally.142 Turkish airports registered 32  millio n international passenger up 
until December 2020, representing 70% decline from the previous year . The impact on air cargo 
traffic both domestic and international was less severe than the air traffic due to sustained demand 
for the movement of goods betwee n 2019 and 2020; the authorities registered a  38% decline in 
freight cargo from 2019.  In 2021, the number of passengers on international lines increased to 
60 million as COVID -19 restrictions were eased  (Table  4.22). 
Table  4.22 Air transport statistics, 2016 -21 
  2016  2017  2018  2019  2020  2021  
Number of aircraft  540 517 515 564 554 558 
Seat capacity  100,365  97,500  97,351  103,763  105,336  104,464  
Freight (cargo+mail+baggage) carried domestic 
lines ('000 tonne)  857 885 886 834 501 698 
Freight (cargo+mail+baggage) carried 
international lines ('000 tonne)  2,220  2,596  2,969  3,256  1,990  2,734  
Domestic air traffic ('000 unit)  886 909 892 840 573 738 
International air traffic ('000 unit)  567 591 652 717 281 466 
Number of passengers, domestic lines  (million)  102 110 113 100 50 68 
Number of passengers, international 
lines (million)  71 84 98 108 32 60 
Source:  TurkStat, Transportation and Communication. Viewed at: https://data.tuik.gov.tr/ . 
4.124.   The powers, duties, and responsibilities of the General Directorate of Civil Aviation, a public 
entity with a private budget established under the Ministry of Transportation and Infrastructure, are 
regulated under Presidential Decree No.  4 on Organization of Affiliated, Related, Associated 
Institutions and Orga nizations with Ministries and the Organization of other Institutions and 
Organizations. The overall goal of the General Directorate of Civil Aviation is to ensure reliability and 
sustainable development of Turkish civil aviation143 and its duties include : (i) following the 
developments in international civil aviation; (ii)  regulating the establishment and working principles 
of civil aviation training organizations; (iii)  implementing international bilateral and multilateral 
agreements regarding air transport ation; (iv)  taking legal action against real and legal persons 
acting in violation of the legislations and rules; (v)  designating airworthiness terms of commercial 
aircrafts that operate in Turkish airspace; (vi)  determining the licensing terms of personne l in the 
Turkish civil aviation industry; (vii)  regulating and auditing air navigation of commercial aircraft; 
and (viii)  setting technical qualities and operating conditions of the airports.144 
4.125.   The Transport and Logistics Master Plan, developed by the Mini stry of Transportation and 
Infrastructure, lays out the priorities of the investments of the air transport services sector 
until 2053.145 The main priorities for the air transport sector include: (i)  an increase in the number 
of airports to 61 from 57; (ii)  an increase in the number of inbound and outbound passengers 
from 214.9  million in 2023 to 344.4  million; (iii)  the establishment and management of 
infrastructure for emission monitoring, reporting, and verification; (iv)  the production of 
 
140 DG Civil Aviation . 
141 Daily Sabah  (2022), "Turkish Cargo Named World's 4th Biggest Air Cargo Company", 30  July. Viewed 
at: https://www.dailysabah.com/business/transportation/turkish -cargo -named -worlds -4th-biggest -air-cargo -
company . 
142 O. Ozaydin and F.  Ulengin (2020), Impacts of COVID -19 on the Transport Sector and Mea sures as 
Well as Recommendations of Policies and Future Research: A Report on Turkey . Viewed at: 
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686628 . 
143 General Directorate of Civil Aviation, Strategic Goals and Objectives . Viewed at: 
https://web.shgm.gov.tr/en/kurumsal/2206 -strategic -goals-and-objectives . 
144 General Directorate of Civil Av iation (2016),  Annual Report 2015 . Viewed at: 
https://web.shgm.gov.tr/documents/sivilhavacilik/files/pdf/kurumsal/raporlar/2015_Faaliye t_raporu_en.pdf . 
145 Ministry of Transportation and Infrastructure, Transport and Logistics Master Plan . Viewed at: 
https://www.uab.gov.tr/uploads/pages/bakanlik -yayinlari/uab -u2053 -borsur -a4-180822 -ecs.pdf . WT/TPR/S/ 439 • Türkiye  
 
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 environmentally  friendly bio -fuels and/or synthetic fuels for airline transport; and (v)  the further 
development of regional airline cargo transport.146 
4.126.   According to Law No.  2920 of 14  October  1983 on Civil Aviation, access to national airports 
is allocated following an a pplication to the General Directorate of Civil Aviation and a signed 
agreement with a ground handling company for the provisions of services. The Law stipulates that 
air carriers operating scheduled flights to Türkiye are authorized based on reciprocity wi thin the 
framework of bilateral aviation agreements. Cargo transport is also under the provisions set out in 
Turkish Civil Aviation Law.  
4.127.   During the review period, the authorities introduced several subsidies schemes in the air 
services sector. As a response to the COVID -19 pandemic and its related travel restrictions, the 
authorities reduced the VAT rate on domestic flights from  18% to  8% from 1  April 2020 to 
31 May 2021.  
4.128.   In the aviation sector, the majority of commercial airline companies'  share s must be held 
by Turkish citizens, and the majority of these companies' boards of directors must also be composed 
of Turkish citizens . 
4.129.   During the review period, Türkiye concluded 22 new air transport services agreements . Two 
of these agreements, with Chil e and with Nicaragua, exhibit several liberal features such as free 
pricing, free determination, and multiple designation (Table  4.23). 
Table  4.23 Air transport agreements concluded between 2016 and 2021  
Partn er Date  
Entry into 
force  
5th 
7th 
Cabotage  
Coop  
Designationa 
Withholdingb 
Pricingc 
Capacityd 
Stat 
ALIe 
Chile 07/12/2017  09/01/2022  Y N N Y M PPoB – S FP FD N 38 
Honduras  20/04/2017  13/12/2021  N N N Y M SOEC – S FP B1 Y 19 
Nicaragua  06/12/2016   Y N N Y M SOEC – S FP FD Y 29 
Brazil  05/12/2017   Y N N Y M n.a. - S FP n.a. Y 21 
Maldives  02/09/2021   Y N N  M      
Israel  07/07/2022   N N N  M      
Lesotho  19/11/2018   N N N  M      
Seychelles  13/12/2018   N N N  M      
Solomon  Islands  13/12/2018   N N N Y M      
Macao,  China 
(MSAR)  01/10/2016   N N N  M   FD   
Uzbekistan  30/04/2018  07/09/2021  N N N  M  FP PD   
Angola  27/07/2021   N N N  M      
Palau  22/11/2019   N N N  M      
Saudi Arabia, 
Kingdom  of 07/12/2017   N N N  M      
Paraguay  31/12/2017   N N N  M      
n.a. Not applicable.  
a M = multiple.  
b SOEC = substantial ownership and effective control; PPoB = principal place of business.  
c FP = free pricing.  
d PD = pre -determination; B1 = Bermuda 1, i.e. post facto determination; FD = free determination.  
e Air Liberalization Index (0 = no liberalization; 50 = full liberalization).  
Source:  WTO Secretariat, Air Services Agreements Projector  (internal WTO information).  
 
146 Ministry of Transportation and Infrastructure, Transport and Logistics Master Plan .  WT/TPR/S/ 439 • Türkiye  
 
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 4.4.5   Health services  
4.4.5.1   Features  
4.130.   The health services sector is a priority in the div ersification process of the economy.147 
Between 2016 and 202 0, the sector continued to gain importance  (Table  4.24). In 2021, the sector 
was composed of 908 public hospitals operated by the Ministry of Health, 571 private hospitals, and 
68 university hospit als.148 
Table  4.24 Overview of health services sector, 2016 -20 
  2016  2017  2018  2019  2020  
Total health expenditure (TRY  million)  119,755.8  140,647.3  165,234.0  201,030.6  249,931.9  
Health expenditure per capita (TRY)  1,511  1,751  2,030  2,434  2,997  
Total health expenditure (% of GDP)  4.6 4.5 4.4 4.7 5.0 
Government health expenditure (% of total health 
expenditure)  78.5 78.0 77.5 78.0 79.2 
Social security funds (% of government health 
expenditure)  68.2 66.6 67.3 66.3 64.4 
Private sector health expenditure (%  of total 
health expenditure)  21.5 22.0 22.5 22.0 20.8 
Private insurance (% of private sector health 
expenditure)  13.1 11.9 12.4 13.1 12.5 
Private out -of-pocket payment (%  of private 
sector health expenditure)  76.0 77.7 77.0 76.1 77.3 
Total expenditure on hospitals (% of total health 
expenditure)  50.2 49.5 48.8 48.5 49.4 
Source:  TurkStat, Health Expenditure Statistics 1999 -2020. Viewed at: https://data.tuik.gov.tr/ . 
4.131.   The authorities place priority on universal health coverage and in 2020 the percentage  of 
the population covered by government health insurance  was 98.8%.149 Health insurance is 
mandatory for all under Türkiye's General Health Insurance scheme, with those earning under below 
a certain threshold receiving free healthcare.150 
4.132.   In terms of the structure of the health services sector, the Ministry of Health continue d to 
be the main provider of healthcare through a large network of public healthcare institutions, such 
as public hospitals, training and research hospitals, university hospitals, and clinics under the local 
administrative authorities.151 The number of tota l inpatient medical institutions and the number of 
hospital beds in total inpatient medical institutions increased between 2016 and 2021 (Table  4.25). 
4.133.   In terms of private healthcare, the number of private inpatient medical institutions and the 
number of ho spital beds in private inpatient medical institutions also increased (Table  4.25). 
Table  4.25 Structure of healthcare sector , 2016 -21 
  2016  2017  2018  2019  2020  2021  
Visits to primary health facilities (million)  219 238 269 288 253 246 
Secondary and tertiary healthcare visits 
(million)  467 480 513 525 347 430 
Number of organ and tissue transplants  11,772  12,925  14,587  14,751  10,518  .. 
Number of hospital visits  (million ) 444 462 494 507 333 414 
 Ministry of Health  337 350 377 388 240 305 
 
147 Investment Office, Report on R&D  and Engineering Capabilities in the Health  Sector in Turkey . 
Viewed at: https://www.invest.gov.tr/en/library/publications/lists/investpublications/rd -engineering -
capabilities -in-healthcare -sector.pdf . 
148 Ministry of Health , Health Statistics Yearbook 2021 News  Bulletin . Viewed at: 
https://sbsgm .saglik.gov.tr/Eklenti/44131/0/saglik -istatistikleri -yilligi-2021-haber -bultenipdf.pdf . 
149 Statista, Percentage of Population Covered by Public or Private Health Insurance in Turkey from 2002 
to 2020.  Viewed at: https://www.statista.com/statistics/1272717/population -covered -by-public -or-private -
health -insurance -in-turkey/ . 
150 Statista, Percentage of Population Covered by Public or Pr ivate Health Insurance in Turkey from 2002 
to 2020.  Viewed at: https://www.statista.com/statistics/1272717/population -covered -by-public -or-private -
health -insurance -in-turkey/ . 
151 Lexology (2019), "Healthcare Enforcement & Litigation in Turkey", 21  March. Viewed at: 
https://www.lexology.com/library/detail.aspx?g=fe95a8bf -ad75-4770-a6a4-016d91bce09c . WT/TPR/S/ 439 • Türkiye  
 
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   2016  2017  2018  2019  2020  2021  
 University  36 39 43 46 32 40 
 Private  71 72 75 73 61 69 
Total number of visits per physician  4,735  4,793  5,110  5,055  3,505  .. 
Number of inpatient and outpatient medical institutions  
Total 32,981  33,587  34,559  34,595  34,621  .. 
 Inpatient medical institutions  1,510  1,518  1,534  1,538  1,534   1,547  
 Attached to the Ministry of Health  876 879 889 895 900 908 
 University  69 68 68 68 68 68 
 Private  565 571 577 575 566 571 
 Outpatient medical institutions  31,471  32,069  33,025  33,057  33,087  .. 
Number of hospital beds in public and private inpatient medical institutions  
Total 217,771  225,863  231,913  237,504  251,182  254,497  
 Attached to the Ministry of Health  132,921  135,339  139,651  143,412  156,965  157,714  
 University  37,707  41,324  42,066  42,925  41,987  42,978  
 Private  47,143  49,200  50,196  51,167  52,230  53,805  
Number of hospital beds per 1,000 
population  2.73 2.79 2.83 2.86 3.00 .. 
Oral and dental healthcare facilities (number of dental units)  
Total .. 22,884  .. 25,994  27,284  .. 
 Ministry of Health  .. 9,522  .. 9,950  10,138  .. 
 University  .. 5,378  .. 5,872  5,742  .. 
 Private  .. 7,984  .. 10,172  11,404  .. 
.. Not available.  
Source:  TurkStat, Health Statistics . Viewed at: https://data.tuik.gov.tr/ ; Ministry of Health , Health Statistics 
Yearbook 2020  and Health Statistics Yearbook 2021 News Bulletin . Viewed at: 
https://sbsgm.saglik.gov.tr/Eklenti/44131/0/saglik -istatistikleri -yilligi-2021-haber -bultenipdf.pdf . 
4.134.   Under the Public -Private Partnership (PPP ) program, there has been an increase in health 
initiatives between 2011 and 2022 in partnership between the public and private sectors. Within the 
framework of the Transformation in Health Program, City Hospitals projects have been implemented, 
which are built to high quality and standards, use advanced technological equipment and have an 
operational performance that maximizes efficiency in healthcare delivery. According to the 
authorities, currently, 18 PPP health projects have been approved by the Govern ment with different 
stages of development, from tender to operation, with an investment value of EUR  186 billion as 
of September 2022.  
4.4.5.2   Policy and regulatory framework  
4.135.   The Ministry of Health is responsible for the planning of the country's healthcare policy . The 
Ministry is responsible for providing healthcare to the population and organizing preventive health 
services, building and operating state hospitals, supervising private hospitals, training medical 
personnel, regulating the price of medical drugs nat ionwide, and controlling drug production and 
pharmacies.152 
4.136.   There are many associations engaged in policy advocacy in the field of health, including the 
Turkish Medical Association, the Association of Accredited Hospitals, the Turkish Nurses Association, 
the Turkish Midwives Association, the Turkish Dental Association, the Association of Private Hospitals 
and Healthcare Organizations , and the Turkish Pharmacists Association. In addition, in 2019, the 
International Health Services Joint Stock Company, affilia ted with the Ministry of Health was 
established to promote Türkiye's health system and support health tourism activities.  
4.137.   Türkiye's main regulation in the health services sector is Law No.  3359 of 7  May 1987 on 
Health Services, which provides the framework  for health services. The Law contains provisions on 
the allocation of medical staff, medical research, private health insurance, health management, 
treatment costs, regulations, and organizational aspects.  
 
152 All About Turkey, Health Care in Turkey.  Viewed at: https://www.allaboutturkey.com/health.html . WT/TPR/S/ 439 • Türkiye  
 
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 4.138.   Recent regulatory developments include the Regula tion on the Provision of Distance Health 
Services, published in the Official Gazette on 10  February  2022, which provides the procedures and 
principles regarding the provision of remote health services and supervision of health facilities.153 As 
stipulated i n the Regulation, a remote healthcare information system infrastructure has been 
developed by the Ministry of Health, and healthcare centres have been using the healthcare 
information system to enable written, voice, or video communication with patients. T he remote 
healthcare information system infrastructure has been registered in the Ministry of 
Health  database.154 
4.139.   Prices of health services financed under the General Health Insurance are regulated within 
the scope of Law No.  5510 on Social Insurance and Ge neral Health Insurance of 16  June 2006 by 
Social Security Institution (SSI) within the scope of the Social Security Institution Health 
Implementation Communiqué (SUT).155 Prices of health services covered by the General Health 
Insurance are regulated by the  SSI.156 
4.140.   Hospitals constructed through the PPP Model are selected among qualified bidders through 
the tender procedure within the scope of Law No.  6428 on the Construction, Renovation of Facilities 
and Service Procurement of 21  February  2013. All local or foreign bidders who meet the conditions 
established by the administration on the pre -qualification evaluation can bid for these tenders. 
Tender announc ements are published in the Official Gazette, national newspapers and, if necessary, 
in newspapers abroad. Economic and Financial Qualifications, as well as Professional and Technical 
Qualifications are required from tenderers.  
4.141.   Hospital investments are sup ported in the scope of Investment Incentive s Scheme s if they 
meet the minimum fixed investment amounts defined for the related region where the investment 
is made (Section  2.4.3). 
4.4.5.3   Health tourism subsector  
4.142.   Health tourism revenues increased gradually during the review period (Table 4. 26). Health 
tourism is cl assified under four headings: (i)  treatment services (medical tourism); (ii)  elderly care 
services; (iii)  health promotion services (wellness, thermal health , etc.); and (iv)  rehabilitation 
services (addiction treatment, dialysis , etc.).  
Table  4.26 Health tourism statistics , 2016 -21 
 2016  2017  2018  2019  2020  2021  
Receipts of health tourism (USD  '000)a 715,438  827,331  863,307  1,492,438  1,164,779  1,726,973  
 % of total receipts  3.1 3.1 2.8 3.8 7.9 5.7 
No. of health tourists visiting Türkiye  533,370  582,498  719,364  807,604  464,063  791,076  
Foreign patients receiving health services in Türkiye  
 Total .. .. .. .. .. .. 
 Public health establishments  .. .. .. .. .. .. 
 Private health establishments  .. .. .. .. .. .. 
.. Not available.  
a Data related to the 2nd quarter of 2020 were not published because surveys could not be conducted 
at border gates due to the COVID -19 pandemic.  
Sources:  TurkStat, Health Statistics. Viewed at: https://data.tuik.gov.tr/ ; and International Health Services 
Joint Stock Company (USHAS) , Health Tourism Data . Viewed at: 
https://www.ushas.com.tr/en/health -tourism -data/ . 
 
153 Esin Attorney Partnership (2022) , "Turkey Publishes the Regulation on the Provision of Distance 
Health Services and the Regulation on the Cascading of He alth Service Providers", 16  February.  Viewed at: 
https://www.esin.av.tr/2022/02/16/turkey -publishes -the-regulation -on-the-provision -of-distance -health -
services -and-the-regulation -on-the-cascading -of-health -service -providers/#eng1 . 
154 Gün and Partners (2022), "Remote Provision of Healthcare Services in Turkey",  8 February. Viewed 
at: https://gun.av.tr/insights/articles/remote -provision -of-healthcare -services -in-turkey . 
155 Social Security Institution , Social Secur ity Institution Health Implementation Communiqué. Viewed 
at: https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=17229&MevzuatTur=9&MevzuatTertip=5 . 
156 The price list v alid for 2022 can be viewed at: https://shgmsgudb.saglik.gov.tr/TR -92289/kamu -
saglik -hizmetleri -fiyat-tarifesi -guncel.html . 
 WT/TPR/S/ 439 • Türkiye  
 
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 4.143.   In 2017, the Ministry of Health published the Regulation on International Health Tourism 
and Tourist Health157, which sets the standards of service to be provided within the scope of 
international health tou rism services and which regulates the authorization and supervision of health 
institutions and intermediary institutions that will carry out such services. The Regulation covers 
persons who come from abroad to receive health services; those who need health  services while in 
Türkiye; and public hospitals, university hospitals, and private health institutions and intermediaries 
that provide health services to such persons.  
4.144.   The authorities also provide support to the health tourism sector (Table 4. 27). The mai n 
support is given in the form of tax incentives and government contributions for costs associated with 
education, promotions, documents, certificates, and accreditations necessary for hospitals to comply 
with international technical legislation or to oper ate in foreign markets.  
Table  4.27 Health tourism incentives, 2022  
Activity  Support  Reference  
Foreign patients using preventive medicine, 
diagnosis, care, and rehabilitation services 
in medical institutes accredited by the Health 
Ministry  VAT exemption  Law No.  3065 of 
25 October 1985  
Services to foreign patients, including 
medical documentation and data retention 
services  Healthcare service providers may take 
advantage of a 50% tax reduction  Law No.  6322 of  
15 June 2012  
Support for opening a representation office 
abroad (up to five years)  60% of the rental costs (up to 
TRY 1,440,000 per year)  Decree No.  5448 of 
20 April 2022  
Registration and protection  60% of the costs (up to TRY  500,000 
per year)  Decree No.  5448 
20 April 2022 
Employment  60% of the costs (up to TRY 2 ,400,000 
per year)  Decree No.  5448 
20 April 2022  
Foreign language and health tourism 
education  60% of the costs (up to TRY 960 ,000 
per year)  Decree No.  5448 
20 April 2022 
Certification for entry into the health tourism 
market  60% of the costs (up to 600,000 per 
certificate)  Decree No.  5448 of 
20 April 2022  
Advertisement, promotion, and marketing 
activities in the field of health tourism 
organized abroad  60% of their costs reimbursed (up to 
TRY 6,000,000 per year)  Decree No.  5448 of 
20 April 2022 
Participation in international health tourism 
activities (fair, seminars, congress and 
conference)  50% of the costs (up to TRY  300,000 
per activity)  Decree No.  5448 of 
20 April 2022 
Organization, promotion, and consultancy 
costs, as well as transport and 
accommodation costs, for a trade delegation  70% of the costs (up to TRY  1,800,000 per 
program me, each industry organization 
may make use of the incentive for up 
to five trade  missions and five 
procurement committees per year)  Decree No.  5448 of 
20 April 2022 
Promotion and education in Türkiye 
(promotion of facilities/health services)  60% of the costs (up to TRY  600,000 
per year)  Decree No.  5448 of 
20 April 2022 
Product placement  60% of the costs (up to TRY  1,200,000 
per year)  Decree No.  5448 of 
20 April 2022 
Complication and travel health insurance  70% of the costs (up to TRY 2 ,000,000 
per year)  Decree No.  5448 of 
20 April 2022 
Source:  Investment Office, Incent ives Guide . Viewed at: 
https://www.invest.gov.tr/en/investmentguide/pages/incentives -guide.aspx . 
4.145.   In Türkiye, health services commitments under the GATS are only includ ed in hospital 
services, which have market access restrictions. Foreigners are required to get permission from the 
Ministry of Health in order to establish private hospitals, and there are no limitations on national 
treatment. Between 2016 and 2021 inward foreign investments in the health tourism subsector 
increased from USD  600 million to USD  839 million in 2021.158 
4.146.   Given the high importance placed upon health tourism, Türkiye has health services 
commitments in its RTAs. To better utilize Mode 2 commitments, Türkiye have a developed 
healthcare annex which aims to facilitate the mobility of patients (consumers). This a nnex has 
 
157 Official Gazette  (2017 ), No.  30123, 13  July. Viewed at: 
https://shgmturizmdb.saglik.gov.tr/Eklenti/39569/0/yonetmelik -ingilizcepdf.pdf . 
158 Central Bank of Türkiye. Viewed at: 
https://www.tcmb.gov.tr/wps/wcm/connect/TR/TCMB+TR/Main+Menu/Istatistikler/Odemeler+Dengesi+ve+Ilgi
li+Istatistikler/Uluslararasi+Yatirim+Pozisyonu/ . WT/TPR/S/ 439 • Türkiye  
 
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 provisions that ban currency restrictions, ensures protection of personal data of patients, requires 
legal framework for complaints and professional liability, ensures non -discriminatory treatment of 
healthcare service providers and provides for p romotion activities and improved intergovernmental 
cooperation. Among Türkiye's RTA in force, so far, Türkiye has such an annex with Switzerland within 
the framework of EFTA . 
4.4.6   Tourism services  
4.4.6.1   Features  
4.147.   Türkiye is one of the most popular tourist destinations  in the world and  is home to 
19 UNESCO World Heritage Sites.159 It ranked 7th among the top 10 European countries for tourism 
FDI between  2016 and 2020 with 36 FDI projects.160 In 2021, tourism is the second largest category 
in Türkiye's exports of services and accounts for more than half of Türkiye's net trade balance in 
services. The tourism sector expanded significantly from  2016 to 2019, suffered a severe decline in 
2020 as a consequence of COVID -19-related travel restrictions, and rebounded in  2021, when its 
share of GDP reached 3.7% (Table  4.28). According to the authorities, in  2021, transportation types 
used by foreign visitors visiting Türkiye included airways (82.25%), and roadways  (16.90%) . 
Table  4.28 Main tourism indicators, 2016 -21 
  2016  2017  2018  2019  2020  2021  
Trade in travel services (USD  million, BoP  basis)  
 Trade balance  14.0 17.7 20.6 25.7 9.2 19.2 
 Exports  18.7 22.5 25.2 29.8 10.2 20.8 
 % of total services exports  40.5 42.0 43.0 47.5 28.8 36.2 
 Imports  4.8 4.8 4.6 4.1 1.0 1.7 
 % of total services imports  18.5 17.8 16.1 14.3 4.4 5.4 
Tourism receipts (USD  billion)a 22.8 27.0 30.5 38.9 14.8 30.2 
 % of GDP  2.5 3.1 3.8 5.1 2.1 3.7 
 of which:  
 Foreigners  16.7 21.0 25.0 33.0 11.9 24.3 
 Citizens (resident abroad)  6.2 6.1 5.5 5.9 3.0 5.8 
Number of visitors (No.  million)a 30.9 38.0 46.1 51.8 16.0 30.1 
 of which:  
 Foreigners  25.3 32.4 39.5 45.1 12.7 24.7 
 Citizens (resident abroad)  5.6 5.6 6.6 6.7 3.2 5.4 
 Visitors by nationality (foreigners)  
 By main origins (% of total)  
 Russian  Federation  3.4 14.6 15.2 15.6 16.7 19 
 Germany  15.3 11.1 11.4 11.2 8.9 12.5 
 Bulgaria  6.7 5.7 6.1 6.0 9.8 5.7 
 Iran, Islamic Republic of  6.6 7.7 5.1 4.6 3.1 4.7 
 United  Kingdom  6.8 5.2 5.7 5.7 6.4 1.6 
 Iraq 1.7 2.8 3.0 3.0 3.0 3.4 
Number of travel agents  .. .. .. .. .. .. 
 Tourism operation licen sed facilities  3,641  3,771  3,925  4,038  4,218  4,801  
 Tourism investment licen sed facilities  1,135  1,051  981 723 649 585 
Number of beds         
 Tourism operation licen sed facilities  889,881  935,286  974,574  992,341  1,020,985  1,065,537  
 Tourism investment licen sed facilities  312,912  263,033  225,421  180,852  167,673  139,703  
Occupancy rate (%)  42.2 50.1 56.4 58.9 22.8 42.3 
Yacht management certificates   
 Local .. .. .. .. .. .. 
 Foreign  .. .. .. .. .. .. 
Number of yachts with the Flag Q that arrived in Türkiye's portsa 
 Local 3,774  5,595  4,495  4,705  149 1,044 
 Foreign  7,857  5,059  3,891  4,542  917 2,572 
Outbound tourismb,c 
 Tourism expenditures (USD  million)  5,049.8  5,137.2  4,896.3  4,403.7  1,104.5  1,851.9  
 Number of citizen visitors (No.  million)  7.9 8.9 8.4 9.7 2.2 2.7 
 
159 Investment Office, Tourism Sector in Turkey . Viewed at: 
https://www.invest.gov.tr/en/library/p ublications/lists/investpublications/tourism -industry.pdf . 
160 Investment Office, Tourism  Sector in Turkey .  WT/TPR/S/ 439 • Türkiye  
 
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   2016  2017  2018  2019  2020  2021  
Number of Blue Flag Beaches in Türkiye  444 454 459 463 486 519 
.. Not available.  
a Yachts that enter a foreign harbour from the territorial waters of another country are obliged  to fly 
a Q (quarantine) flag to signal that a vessel is free of disease and requests boarding and inspection.  
b Data related to the 2nd quarter of 2 020 were not published because a survey could not be 
conducted at border gates due to the COVID -19 pandemic.  
c Citizens (resident in Türkiye) visited abroad.  
Source:  TurkStat, Tourism Statistics . Viewed at: https:/ /data.tuik.gov.tr/ ; Central Bank of the Republic of 
Türkiye (CBRT), Statistics Balance of Payments . Viewed at: https://www.tcmb.gov.tr/ ; and Ministry 
of Culture and Tourism, Tourism Statistics . Viewed at: https://www.ktb.gov.tr/EN -249283/tourism -
statistics.html . 
4.148.   In 2020, there were 4,218 tourism operation licen sed facilities in Türkiye (Table  4.28). 
Türkiye has 60  operational hotel chains, 44 of  which are domestically owned and 16 are 
internationally owned.161 In 2021, most incoming visitors visited Türkiye for travel, entertainment, 
and sport and cultural activities (Chart  4.5). On the other hand, most domestic visitors intended to 
visit relatives (Chart  4.5). During the review period, there was a considerable  increase in the 
percentage of total foreign visitors from the Russian  Federation . 
Chart  4.5 Tourism: Incoming tourists and domestic visitors by purpose of visit, 2021  
 
a Non-resident tourists include foreigners and citizen living abroad. Based on the number of 
departing  visitors.  
b Based on the number of trips.  
Source:  TurkStat, Tourism Statistics . Viewed at: https://data.tuik.gov.tr/ . 
4.4.6.2   Institutional and legal f ramework  
4.149.   The Ministry of Culture and Tourism is the main body responsible for tourism  policy.162 The 
mission of the Ministry is to promote the universal culture, art, and tourism values of Türkiye and to 
increase Türkiye's share of world tourism.163 The duti es and powers of the Ministry of Culture and 
Tourism are to: (i)  develop, protect, and promote historical and cultural values; (ii)  develop and 
market all national opportunities suitable for tourism in order to make it an efficient sector of the 
national e conomy; (iii)  direct public institutions and organizations related to culture and tourism 
issues; and (iv)  provide financial assistance to projects developed by local administrations, public 
 
161 Investment Office, Tourism Sector in Turkey . Viewed at: 
https://www.invest.gov.tr/en/library/publications/lists/investpublications/tourism -industry.pdf . 
162 Law on Foundation of the Ministry of Culture an d Tourism, Law No.  4848.  
163 Ministry of Culture and Tourism, Our Mission and Vision . Viewed at: https://www.ktb.gov.tr/TR -
133260/misyonumuz -vizyonumuz.html . 
Travel, 
entertainment, 
sport or cultural 
activities
54.9%Visiting relatives 
and friends
22.4%Accompanying persons
13.3%Business
3.5%Shopping
2.6%Other
3.2%
Visiting 
relatives 
58.8%Travel, 
leisure, 
vacation
30.2%Health
5.0%Other
5.9%Chart 4.[Turkey] Incoming tourists and domestic visitors by purpose of visit, 2021
Incoming tourists
(Total: 29.4 million)
Non-resident tourists include foreigners and citizen living abroad. Based on the number of departing visitors. Domestic visitors
(Total:  52.8 million)
Source:   TurkStat .  Tourism Statistics. Viewed at: https://data.tuik.gov.tr/.a b
a
Based on the number of trips. bWT/TPR/S/ 439 • Türkiye  
 
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 institutions, and organizations whose main purpose is culture, ar t, tourism, and 
promotional  activities.164 
4.150.   The Türkiye Tourism Promotion and Development Agency was established in 2019 to support 
and develop tourism activities as a related institution of the Ministry of Culture and Tourism.  In line 
with tourism strategie s and policies set by the Ministry, the Agency is tasked with promoting and 
marketing activities to serve Türkiye's tourism goals.165 
4.151.   The Ministry of Culture and Tourism maintains 81 provincial culture and tourism directorates 
and has attachés in approximat ely 41 countries to promote tourism.166 Several private sector 
associations have a role in supporting and promoting the tourism industry, including the Association 
of Turkish Travel Agencies, the Union of Chambers and Commodity Exchanges of Türkiye  (TOBB), 
the Union  of Tourist Guides' Chambers, the Turkish Hoteliers Federation (Türofed), the Tourism 
Investors Association, and chambers of commerce. The private sector organizations consult 
informally with the Ministry on Tourism Policy. 
4.152.   The Ministry's Tourism Strategy 2023,  with a timeframe of 16 years (2007 -23), is a national 
policy with a multi -sectoral approach.167 The objective of the Strategy is to develop the tourism and 
travel industry with a sustainable tourism approach to increase emp loyment opportunities and 
ensure economic growth. According to the Strategy, the types of tourism will be diversified, including 
coastal, health, plateau, and ecotourism.  
4.153.   Law No.  2634 of 12  March  1982 on the Encouragement of Tourism is the main tourism 
regulation in Türkiye and stipulates the necessary measures for the regulation and development of 
the tourism services sector. The Law provides guidance for the preservation and utilization of natural 
tourism168 resources; incentives for the tourism services s ector; and implementation of a tourism 
development fund.  
4.154.   Significant changes to Law No.  2634 were made by Law No.  7334 Amending the Law on the 
Encouragement of Tourism and Certain Laws, published in the Official Gazette on 28  July 2021. 
First, Law No. 7334 provides that tourism services management associations will be established in 
cooperation with the private sector to protect and develop social and technical infrastructure, and to 
operate culture and tourism preservation and development zones approved by  the Ministry of Culture 
and Tourism. Second, Law No.  7334 also brought about important changes to the certification of 
tourism establishments to ensure that accommodation facilities have minimum standards and are 
under the supervision of the Ministry of C ulture and Tourism. The Law stipulates that accommodation 
facilities are obliged to obtain a tourism establishment certificate from the Ministry within one  year 
of the date of obtaining a workplace opening and operating licence. Accommodation facilities th at 
continue their activities without such a certificate before the Law came into force may obtain a simple 
accommodation tourism establishment certificate within one year of the effective date of the Law. 
However, facilities with simple accommodation touri sm establishment certificates may not benefit 
from tourism incentives and tourism loans, and they will be subject to the distance rules and 
restrictions set by the Public Health Law and the Primary Education and Education Law regarding 
selling and licensin g alcoholic beverages. Accommodation and beach establishments that do not 
obtain the tourism establishment certificate and the simple accommodation tourism establishment 
certificate within the set period will not be able to operate, and their workplace ope rating licences 
will be cancelled within one month.  
4.155.   Third, Law No.  7334 further clarifie s the procedures regarding the approval of zoning plans 
within tourism centres and culture and tourism preservation and development zones. Plan proposals 
 
164 Ministry of Culture an d Tourism, Organization and Duties . Viewed at: https://www.ktb.gov.tr/TR -
96130/kurulus -ve-gorevler.html . 
165 Türkiye Tourism Promotion and Development Agency, About Us . Viewed at: 
https://www.tga.gov.tr/about -us/. 
166 Ministry of Culture and Tourism, Our Units . Viewed at: https://www.ktb.gov.tr/TR -
96682/birimlerimiz.html . 
167 Ministry of Culture and Tourism, Tourism Strategy . Viewed at: 
https://yigm.ktb.gov.tr/Eklenti/906,ttstratejisi2023pdf.pdf?0 . 
168 Natural tourism is a type of tourism that is linked w ith rural settlements and based on natural 
resources.  WT/TPR/S/ 439 • Türkiye  
 
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 will be submit ted to the Ministry of Culture and Tourism, and plans approved by the Ministry will be 
sent to the Ministry of Environment, Urbanization and Climate Change for further authorization.  
4.156.   Finally, Law No.  7334 removed the obligation to obtain approval of the Mi nistry of Culture 
and Tourism in cases where : (i) all the investments or establishments are transferred, leased, or 
given to an operator; (ii) there is a change in the company title or shareholding structure; and 
(iii) there is partial or complete change i n the type of business. Instead of obtaining the 
Ministry's  approval, it is sufficient to notify it.  
4.157.   Other important tourism services legislation includes Law No.  1618 of 14  September  1972 
on Travel Agencies and Union of Travel Agencies (lists procedures a nd provisions for the 
establishment of travel agencies and operation and obligations of the agencies); Law No.  6326 of 
6 July 2012 on Tourist Guide Professions (provides rules, regulations, and enforcement procedures 
related to the tourist guide profession ); Law  No. 5225 of  21 July 2004 on Cultural Investments 
Incentive (covers procedures of certification and supervision of cultural investments); and  
Law No. 2863 of  23 July 1983  on the Protection of Cultural Values and Natural Resources  (sets rules 
of expro priation and responsibilities of real and legal persons regarding cultural and natural assets).  
4.158.   Between 2016 and 2022 , Türkiye signed 13 Tourism Cooperation Agreements; 3  Tourism 
İmplementation Programmes; and  9 Tourism Cooperation Memorandums of Understanding.169 
Furthermore, the recently modernized RTA between Türkiye and EFTA (Section  2.3.2) contains a 
dedicated tourism and travel services annex (XVIII). In this annex, parties developed disciplines 
that ensure movement of tourists, repatriation in case of bankruptcy, confidentiality of personal 
data, national treatment of letters of credit, access to local administrative services, emergency 
health services, communication and legal services, access to touristic sites and responsible tourism, 
and the prevent ion of  currency restrictions and unnecessary travel security warnings. Parties also 
agreed to cooperate in research and observation, training , and capacity -building , as well as online 
business models and sharing economy in the tourism sector.  
4.159.   Several incentives are available for the tourism sector. Article  13 of Law No.  2634 lays down 
the inc entives in the tourism sector and procedures concerning the ways in which tourism 
investments and establishments may benefit from such incentives. Priority for investments is given 
to tourism areas, tourism centres, cultural and tourism preservation and de velopment regions, and 
other sites designated by the Ministry of Tourism and Culture. Türkiye's Cultural Investments 
Incentive Law provides for employment, energy, and immovable property allocation support. 
Regarding employment support in the tourism secto r, the Law provides for a reduction for income 
withholding tax on employee salaries and employer's social security premium contributions of 50% 
during the first three years, followed by 25% for a maximum of seven  years. The energy support 
amounts to 20% of  electricity or gas costs for the first  five years and is financed by the Treasury. 
The Ministry of Culture and Tourism may allocate immovable property to investors for a fixed period. 
According to Article  5 of the Property Tax Law , also in line with Law N o. 2634, income tax or 
corporate taxpayers benefit from a temporary property tax exemption for the buildings used for 
tourism purposes for five years if they have a tourism establishment certificate. The Law on the 
Protection of Cultural Values and Natural  Resources provides corporate income tax deductions for 
companies involved in the protection, development, or maintenance of  Turkish cultural values. In 
addition, the Law also provides an exemption from VAT for restoration, restitution, or building 
surveyi ng projects.  
4.160.   In 2020 , the authorities introduced several support programmes for the tourism sector to 
mitigate the negative effects of COVID -19. The M oTF announced the introduction of a Tourism 
Support Package for businesses operating in the sector to supp ort the protection of production and 
employment capacities. The Tourism Support Package assisted salary and rent payments, 
contractual or invoice -based fixed expenses, and cash needs and corporate credit card expenditures 
of enterprises in the tourism sect or as well as their suppliers. Specific domestic banks provided 
TRY 10 billion in loans with guarantees of the M oTF and the Credit Guarantee Fund. The loans had 
a maturity of 48 months, with a maximum grace period of 12 months (cannot exceed 
1 November  2021). The upper limit of guarantee per  beneficiary was TRY  32 million, and the upper 
 
169 Ministry of Culture and Tourism, Culture and Tourism Agreements Directory.  Viewed at: 
http://teft is.kulturturizm.gov.tr/ TR,14104/kultur -ve-turizm -anlasmalari -dizini.html . WT/TPR/S/ 439 • Türkiye  
 
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 limit of credit was TRY  40 million.170 The authorities also introduced other measures to support 
tourism sector businesses to mitigate the negative effects of COVID -19 crisis : bank loans were 
provided for reimbursement of advance payments for early bookings; social security payments were 
postponed for six  months; debt payments of tourism facilities located on public lands were delayed 
for six months; bank loans were offered to  small-scale tourism agencies without need of repayment 
for six months; and accommodation tax in hotels and tourism facilities was waived 
until November  2020.171 
4.161.   The number of foreign personnel that can be employed in hotels and restaurants cannot 
exceed 10 % of the total personnel. This ratio may be increased to up to 20%  with approval from 
the Ministry of Tourism and Culture. According to Article  18 of Law No.  2634, this provision remains 
in force. In addition, with certain exceptions Turkish citizens are r equired to pay up to USD  100 to 
the Public Housing Fund, for each exit out of Türkiye. However, Turkish citizens going abroad for 
education and health purposes, as well as the ones who are either employed or assigned to 
permanent official duties in foreign  countries, are exempt from this payment.172 According to 
Law No. 5597 of 8 March  2007 on the Duty of Travelling Abroad,  Turkish citizens are still required 
to pay this fee when travelling abroad.  
4.162.   Establishment and licensing in Türkiye are  required for travel agencies and tour operators 
to provide services in Türkiye. Foreign travel agencies i.e. travel agencies not established in Türkiye, 
may not organize tours abroad. Commercial companies established in Türkiye  can operate by 
obtaining a travel agency certificate in accordance with the Law of Travel Agencies and Union of 
Travel Agencies regardless of whether their ownership is domestic or foreign. Thus, there is no 
discrimination for domestic or foreign companies under  this law.173
 
170 MoTF, About Tourism Support Package Application . Viewed at: 
https://www.tbb.org.tr/Content/Upl oad/Dokuman/7713/TBB_KD_161020.pdf . 
171 OECD, Tourism Policy Responses to the Coronavirus (COVID -19). Viewed at: 
https://www.oecd.org/coronavirus/policy -responses/tourism -policy -responses -to-the-coronavirus -covid-19-
6466aa20/ . 
172 WTO document GATS/SC/88, 15  April 1994.  
173 As noted in the previous Review, Türkiye eliminated limitations on national treatment of foreign 
travel agencies by equalizing the amounts required for guarantees for both domestic and foreign operators and 
abolishing the requirement for foreign exchange. In addition,  the provision on the amount of capital to be 
brought by branches of foreign travel ag encies has also been removed.  WT/TPR/S/ 439 • Türkiye  
 
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  5  APPENDIX TABLES  
Table  A1.1 Merchandise exports by group of products, 2016 -21 
HS Section/chapters/subheadings  2016  2017  2018  2019  2020  2021  
Total exports (USD billion)  149.2  164.5  177.2  180.8  169.7  225.2  
 (% of total exports)  
01 Live animals and products  1.2 1.3 1.4 1.4 1.4 1.4 
02 Vegetable products  5.5 4.9 4.6 4.6 5.1 4.5 
 08 Edible fruit and nuts; peel of citrus fruit or melons  2.8 2.7 2.5 2.5 2.8 2.4 
03 Fats and oils  0.8 0.7 0.6 0.6 0.8 0.9 
04 Prepared food, beverages, and tobacco  4.6 4.4 4.4 4.4 4.9 4.3 
05 Mineral products  4.4 5.4 5.5 6.9 5.2 6.3 
 27 Mineral fuels  2.3 2.9 3.3 4.7 2.8 3.8 
06 Chemicals and products thereof  3.8 3.9 4.3 4.4 5.2 4.7 
07 Plastics and rubber  5.1 5.1 5.4 5.4 5.7 6.0 
 39 Plastics and articles thereof  3.6 3.5 3.7 3.8 4.1 4.4 
08 Raw hides and skins; leather, furskins and articles thereof  0.4 0.4 0.4 0.4 0.3 0.4 
09 Wood, cork, straw  0.4 0.5 0.5 0.5 0.6 0.7 
10 Pulp of wood; paper and paperboard  1.0 1.0 1.0 1.1 1.1 1.1 
11 Textiles and textile articles  18.1 16.8 16.2 15.8 16.1 15.3 
 61 Articles of apparel and clothing accessories, knitted  or 
 crocheted  6.0 5.4 5.2 5.1 4.9 4.8 
 62 Articles of apparel and clothing accessories,  not knitted or 
 crocheted  4.2 3.9 3.8 3.8 3.9 3.3 
12 Footwear, headgear, etc.  0.5 0.5 0.5 0.6 0.5 0.5 
13 Articles of stone, plaster, cement  2.0 1.9 1.9 2.0 2.2 2.1 
14 Precious stones and metals  8.2 6.6 4.0 4.1 3.9 4.9 
 71 Natural or cultured pearls, precious or semi -precious 
 stones  8.2 6.6 4.0 4.1 3.9 4.9 
15 Base metals and articles thereof  10.5 11.6 13.8 12.6 12.6 15.8 
 72 Iron and steel  4.1 5.0 6.5 5.5 5.2 7.6 
 73 Articles of iron or steel  3.4 3.5 3.8 3.7 3.8 3.9 
 76 Aluminium and articles thereof  1.5 1.6 1.7 1.7 1.8 2.3 
16 Machinery, electrical equipment  14.8 14.6 15.1 15.2 15.4 14.6 
 84 Machinery and mechanical appliances; parts thereof  8.9 9.0 9.6 9.8 9.9 9.2 
 85 Electrical machinery and equipment and parts thereof  5.9 5.6 5.5 5.4 5.5 5.3 
17 Transport equipment  15.0 16.9 16.8 16.3 14.5 12.8 
 87 Vehicles  13.7 15.0 15.5 14.9 13.0 11.1 
18 Precision equipment  0.6 0.6 0.6 0.7 0.8 0.7 
19 Arms and ammunition  0.3 0.2 0.2 0.2 0.4 0.5 
20 Miscellaneous manufactured articles  2.5 2.4 2.6 2.7 2.9 2.6 
 94 Furniture; bedding, mattresses, mattress supports, 
 cushions and similar stuffed furnishings  1.9 1.8 2.0 2.1 2.3 2.1 
21 Works of art, etc.  0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.3 0.3 0.2 0.2 0.2 0.2 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
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  Table  A1.2 Merchandise exports by destination, 2016 -21 
  2016  2017  2018  2019  2020  2021  
Total exports (USD billion)  149.2  164.5  177.2  180.8  169.7  225.2  
 (% of total exports)  
Americas  6.8 7.9 7.9 7.5 8.6 10.0 
 United  States  4.9 5.6 5.1 5.0 6.0 6.5 
 Other America  1.9 2.3 2.7 2.5 2.6 3.4 
Europe  53.4 51.4 54.7 53.2 52.5 52.1 
 EU-27 40.8 42.0 44.4 43.2 41.8 41.9 
 Germany  10.2 9.9 9.8 9.2 9.4 8.6 
 Italy 5.3 5.3 5.7 5.4 4.8 5.1 
 Spain  3.5 4.0 4.6 4.5 3.9 4.3 
 France  4.2 4.2 4.3 4.4 4.2 4.1 
 Netherlands  2.6 2.5 2.9 3.2 3.1 3.0 
 Romania  1.9 2.0 2.3 2.3 2.3 2.3 
 Belgium  1.8 2.0 2.3 1.9 2.1 2.2 
 Poland  1.8 1.9 2.0 1.9 2.0 2.1 
 Bulgaria  1.7 1.8 1.6 1.5 1.6 1.8 
 Greece  1.0 1.0 1.3 1.2 1.1 1.4 
 EFTA 2.2 1.0 1.3 1.0 1.1 1.0 
 Other Europe  10.3 8.4 9.0 9.0 9.6 9.3 
 United Kingdom  8.0 6.0 6.5 6.2 6.6 6.1 
 Ukraine  0.9 0.9 1.0 1.2 1.2 1.3 
CISa 5.5 5.9 5.9 6.6 7.4 7.2 
 Russian  Federation  1.2 1.7 2.1 2.3 2.7 2.6 
Africa  8.0 7.4 8.5 9.2 9.0 9.4 
 Egypt  1.9 1.5 1.8 1.9 1.8 2.0 
 Morocco  1.0 1.0 1.1 1.3 1.2 1.3 
 Libya  0.7 0.6 0.9 1.1 1.0 1.2 
Middle East  20.9 21.5 16.5 17.5 16.4 15.2 
 Iraq 5.7 6.1 5.3 5.7 5.4 4.9 
 Israel  2.0 2.1 2.3 2.5 2.8 2.8 
 United Arab Emirates  3.7 5.6 1.8 2.0 1.7 2.4 
 Iran, Islamic Republic of  3.7 2.3 1.6 1.5 1.3 1.2 
Asia 5.4 5.8 6.4 6.0 6.2 6.0 
 China  1.6 1.8 1.7 1.5 1.7 1.6 
 Japan  0.2 0.3 0.3 0.3 0.3 0.2 
 Other Asia  3.6 3.7 4.4 4.3 4.2 4.1 
Other  0.0 0.0 0.0 0.0 0.1 0.1 
Memo:        
EU-28 48.8 48.1 50.9 49.4 48.4 48.0 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 439 • Türkiye  
 
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  Table  A1.3 Merchandise imports by group of products, 2 016-21 
HS Section/chapters/subheadings  2016  2017  2018  2019  2020  2021  
Total imports (USD billion)  202.2  238.7  231.2  210.3  219.5  271.4  
 (% of total imports)  
01 Live animals and products  0.5 0.8 1.1 0.6 0.4 0.3 
02 Vegetable products  2.7 2.7 2.7 3.6 3.5 3.4 
03 Fats and oils  0.8 0.6 0.5 0.6 0.7 0.9 
04 Prepared food, beverages and tobacco  2.1 2.0 1.9 2.2 2.3 2.0 
05 Mineral products  14.1 16.4 19.6 20.6 13.9 19.7 
 27 Mineral fuels  13.6 15.8 18.9 19.8 13.2 18.7 
06 Chemicals and products thereof  8.8 8.5 9.1 9.9 9.4 10.6 
 29 Organic chemicals  2.3 2.4 2.8 2.8 2.7 3.4 
 30 Pharmaceutical products  2.1 1.9 1.9 2.3 2.3 2.5 
07 Plastics and rubber  7.1 6.8 6.9 6.8 6.6 7.8 
 39 Plastics and articles thereof  5.8 5.6 5.7 5.6 5.3 6.5 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.3 0.3 0.3 0.3 0.2 0.2 
09 Wood, cork, straw  0.6 0.5 0.4 0.2 0.2 0.2 
10 Pulp of wood; paper and paperboard  1.8 1.6 1.7 1.7 1.6 1.5 
11 Textiles and textile articles  5.4 5.0 4.8 5.0 4.1 4.2 
12 Footwear, headgear, etc.  0.4 0.3 0.3 0.3 0.3 0.2 
13 Articles of stone, plaster, cement  0.9 0.8 0.7 0.7 0.8 0.8 
14 Precious stones and metals  3.6 7.3 5.4 6.4 12.1 2.6 
 71 Natural or cultured pearls, precious or 
 semi-precious stones  3.6 7.3 5.4 6.4 12.1 2.6 
 7108 Gold unwrought or in semi -manufactured 
 forms, or in powder form  3.2 6.9 4.9 5.4 11.5 2.0 
15 Base metals and articles thereof  11.9 12.7 14.1 12.9 12.3 16.9 
 72 Iron and steel  6.3 7.1 8.0 7.2 6.9 10.2 
 7204 Ferrous waste and scrap  2.1 1.7 2.7 3.4 2.6 2.3 
 76 Aluminium and articles thereof  1.4 1.5 1.8 1.7 1.6 2.4 
 74 Copper and articles thereof  1.4 1.4 1.5 1.4 1.5 1.9 
16 Machinery, electrical equipment  23.5 20.3 19.1 17.9 19.3 18.8 
 84 Nuclear reactors, boilers, machinery and 
 mechanical appliances; parts thereof  13.9 11.7 11.6 10.5 11.5 11.4 
 85 Electrical machinery and equipment and 
 parts thereof  9.6 8.6 7.5 7.3 7.8 7.4 
 8517 Telephone sets  2.3 1.8 1.4 1.4 1.5 1.3 
17 Transport equipment  11.7 9.9 7.9 7.0 9.2 7.3 
 87 Vehicles  9.1 7.5 6.2 4.8 7.0 5.7 
 88 Aircraft, spacecraft, and parts thereof  2.2 1.2 1.2 1.7 1.7 1.0 
18 Precision equipment  2.5 2.3 2.2 2.3 2.3 1.9 
 90 Medical or surgical instruments and apparatus; 
 parts and accessories thereof  2.3 2.2 2.1 2.1 2.2 1.8 
19 Arms and ammunition  0.1 0.1 0.1 0.1 0.1 0.1 
20 Miscellaneous manufactured articles  1.1 0.9 0.8 0.7 0.6 0.6 
21 Works of art, etc.  0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.1 0.2 0.2 0.1 0.1 0.1 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
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  Table A1. 4 Merchandise imports by origin, 2016 -21 
  2016  2017  2018  2019  2020  2021  
Total imports (USD billion)  202.2  238.7  231.2  210.3  219.5  271.4  
 (% of total imports)  
Americas  8.9 9.2 10.4 9.5 8.9 8.5 
 United  States  5.6 5.1 5.6 5.6 5.3 4.8 
 Other America  3.3 4.0 4.8 3.9 3.7 3.7 
 Brazil  0.9 1.1 1.4 1.3 1.5 1.4 
Europe  43.2 42.1 39.8 38.7 41.4 37.0 
 EU-27 37.3 34.4 33.4 32.3 33.4 31.5 
 Germany  11.2 9.3 9.3 9.2 9.9 8.0 
 Italy 5.3 5.1 4.7 4.4 4.2 4.3 
 France  3.8 3.5 3.4 3.2 3.2 2.9 
 Spain  2.9 2.7 2.5 2.1 2.3 2.3 
 Belgium  1.6 1.6 1.6 1.5 1.7 2.1 
 Netherlands  1.5 1.6 1.5 1.5 1.7 1.7 
 Poland  1.7 1.5 1.4 1.2 1.4 1.3 
 Romania  1.2 1.1 1.2 1.3 1.3 1.3 
 Czech  Republic  1.3 1.2 1.2 1.1 1.3 1.0 
 EFTA 1.6 3.3 1.6 2.0 3.9 1.5 
 Switzerland  1.3 2.9 1.2 1.6 3.5 1.1 
 Other Europe  4.4 4.5 4.8 4.3 4.1 4.1 
 United Kingdom  2.7 2.9 3.3 2.7 2.5 2.0 
 Ukraine  1.3 1.2 1.2 1.3 1.2 1.7 
CISa 9.4 10.2 11.6 13.0 9.9 13.0 
 Russian  Federation  7.6 8.4 9.8 11.0 8.1 10.7 
Africa  2.7 3.0 3.1 2.8 3.3 3.0 
Middle East  6.8 8.3 7.9 7.3 8.9 5.5 
 Saudi Arabia, Kingdom of  0.9 0.9 1.1 1.0 0.8 1.3 
 Iran, Islamic Republic of  2.4 3.2 3.0 1.7 0.5 1.0 
Asia 25.8 23.8 22.4 21.5 21.3 24.0 
 China  12.3 10.0 9.3 9.1 10.5 11.9 
 Japan  2.0 1.9 2.0 1.7 1.7 1.6 
 Other Asia  11.5 12.0 11.2 10.7 9.1 10.5 
 India 2.8 2.6 3.3 3.2 2.2 2.9 
 Korea, Republic of  3.2 2.9 2.9 2.7 2.6 2.8 
 Malaysia  1.0 1.3 1.0 0.9 0.9 1.1 
Other  3.3 3.4 4.8 7.2 6.2 9.0 
EU-28 40.0 37.2 36.7 35.0 36.0 33.5 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 439 • Türkiye  
 
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  Table  A2.1 Notifications made by Türkiye to the WTO, 1  January  2016 to 
31 October  2022  
Agreement/decision  Symbol and date of notification  Description of requirement and frequency  
Agreement on Agriculture  
Articles 10 and 18.2  G/AG/N/TUR/40 to G/AG/N/TUR/43, 
19/12/2019  
G/AG/N/TUR/44 to G/AG/N/TUR/47, 
08/01/2020  
G/AG/N/TUR/26 to G/AG/N/TUR/35, 
12/04/2019  
G/AG/N/TUR/22 to G/AG/N/TUR/25, 
29/01/2019  Export subsidies; annual  
Article  18.2 G/AG/N/TUR/36 to G/AG/N/TUR/39, 
13/12/2019  
G/AG/N/TUR/48 to G/AG/N/TUR/50, 
16/11/2020  
G/AG/N/TUR/17 to G/AG/N/TUR/18, 
29/11/2018  
G/AG/N/TUR/19 to G/AG/N/TUR/20, 
30/11/2018  
G/AG/N/TUR/21, 29/11/2018  
G/AG/N/TUR/15 to G/AG/N/TUR/16, 
10/07/2017  Domestic support; annual  
Agreement on Import Licensing Procedures  
Article  7.3 G/LIC/N/3/TUR/19, 22/09/2022  
G/LIC/N/3/TUR/18, 22/09/2022  
G/LIC/N/3/TUR/17, 05/01/2021  
G/LIC/N/3/TUR/16, 26/03/2020  
G/LIC/N/3/TUR/15, 10/10/2016  Completion of questionnaire; annual  
Agreement on Rules of Origin  
Article  5 and Annex  II, 
paragraph  4 G/RO/N/237, 14/03/2022  
G/RO/N/236, 14/03/2022  
G/RO/N/235, 14/03/2022  
G/RO/N/174, 09/10/2018  
G/RO/N/155, 21/07/2017  
G/RO/N/156, 21/07/2017  Changes in laws and regulations (rules of 
origin in effect); ad hoc  
WT/L/917/Add.1, paragraph 
4.3 G/RO/LDC/N/TUR/1, 18/09/2019  Preferential rules of origin for LDCs; ad hoc  
Agreement on Implementation of Article  VI of the GATT  1994  
Article  16.4 Various (See Section  3.1.6)  Anti-dumping actions (preliminary and final) 
(ad hoc ) and anti -dumping actions taken 
within the preceding six months (semi -annual)  
Agreement on Subsidies and Countervailing Measures  
Articles  25.1 and XVI:1 of 
the GATT  1994 G/SCM/N/372/TUR, 21/12/2021  
G/SCM/N/300/TUR, 04/09/2017  
G/SCM/N/315/TUR, 31/08/2017  Subsidy programmes; every three years for 
full notifications, annual for changes  
Article  25.11  (See Section  3.1.6)  Semi-annual report on countervailing 
measures  
Agreement on Safeguards  
Article 9.1 and footnote  2; 
Article  12.1(a), (b), (c); 
Article  12.4; Article  12.5 Various. (see Section  3.1.6)  Various, ad hoc  
Agreement on Technical Barriers to Trade  
Articles 2.9, 2.10, 5.6, and 
5.7 136 notifications (including revisions) 
from G/TBT/N/TUR/62, 28/04/71, 
13/01/2016 to G/TBT/N/TUR/203, 
03/08/2022  Technical regulations and conformity 
assessment procedures; ad hoc 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex  B 63 notifications (including revisions) 
from G/SPS/N/TUR/68, 12/01/2016 to 
G/SPS/N/TUR/128, 05/09/2022  Sanitary and phytosanitary measures; ad hoc WT/TPR/S/ 439 • Türkiye  
 
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  Agreement/decision  Symbol and date of notification  Description of requirement and frequency  
Agreement on Trade Facilitation  
Article  1.4, 10.4.3, 10.6.2, 
and 12.2.2  G/TFA/N/TUR/2/Rev.1, 10/06/2020  
G/TFA/N/TUR/2, 15/05/2019  Notification on procedures for importation, 
exportation and transit  
WT/MIN(13)/36, WTL/L911  G/TFA/N/TUR/1, 15/03/2018  Category A commitments  
Agreement on Trade -Related Investment Measures (TRIMS)  
Article  6.2 G/TRIMS/N/2/Rev.29, 08/09/2020  Publications in which TRIMS may be found; 
ad hoc 
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  G/MA/QR/N/TUR/2/Add.3, 15/02/2022  
G/MA/QR/N/TUR/2/Add.2, 06/10/2021  
G/MA/QR/N/TUR/2/Add.1, 09/04/2021  
G/MA/QR/N/TUR/2/Corr,1, 04/12/2019  
G/MA/QR/N/TUR/2, 06/11/2019  Notifications of quantitative restrictions; every 
two years  
General Agreement on Trade in Services  
Article  V:7(a)  S/C/N/1078, 22/02/2022  
S/C/N/1073, 11/01/2022  
S/C/N/916, 17/09/2018  Economic integration agreements; ad hoc 
Article  VII:4  
Autonomous recognition measures; ad hoc 
WT/L/847 and WT/L/918  S/C/N/824/Rev.1, 16/06/2016  Preferential treatment to services and services 
suppliers of least developed countries  
General Agreement on Tariffs and Trade 1994  
Article  XVII:4(a)  G/STR/N/15/TUR and 
G/STR/N/16/TUR, 27  October  2016 Notification on state trading enterprises; every 
three years for full notifications, on an annual 
basis for changes (as from 2004, every two 
years)  
Article  XXIV:7(a)  WT/REG434/N/1/Add.1, 21/10/2022  
WT/REG461/N/1, 22/12/2021 
WT/REG434/N/1, 07/01/2021  
WT/REG294/N/2, 07/10/2019  
WT/REG392/N/1, 17/09/2018  
WT/REG379/N/1, 21/02/2017  
WT/REG378/N/1, 14/12/2016  Agreement establishing a free  trade area; 
ad hoc 
Schedule XXXVII  G/MA/373, 14/08/2020  Invocation of paragraph 5 of Article  XXVIII, 
ad hoc 
Source:  Compiled by the WTO Secretariat.   
  WT/TPR/S/439 • Türkiye  
 
- 159 - Table  A3.1 Tax revenue, 2016 -21 
 TRY billion  (% of taxes)  
2016  2017  2018  2019  2020  2021  2016  2017  2018  2019  2020  2021  
Taxes  459.0  536.0  621.3  673.3  833.1  1164.8  100.0  100.0  100.0  100.0  100.0  100.0  
 Taxes on income, profits and capital gains  139.6  165.3  217.7  241.5  263.9  397.6  30.4 30.8 35.0 35.9 31.7 34.1 
 Taxes on property  10.6 11.5 13.8 15.6 17.3 21.1 2.3 2.2 2.2 2.3 2.1 1.8 
 Domestic taxes on good and services  191.3  212.0  213.0  230.9  314.9  377.4  41.7 39.5 34.3 34.3 37.8 32.4 
 Domestic VAT  54.0 55.6 56.4 55.4 71.5 123.4  11.8 10.4 9.1 8.2 8.6 10.6 
 Special Consumption Tax 120.4  138.3  133.9  147.1  207.3  205.4  26.2 25.8 21.6 21.9 24.9 17.6 
 Petroleum and natural gas  56.3 63.6 55.6 61.0 69.0 31.3 12.3 11.9 8.9 9.1 8.3 2.7 
 Motor vehicles  18.9 22.0 17.3 13.8 46.6 66.4 4.1 4.1 2.8 2.1 5.6 5.7 
 Beverages  7.9 10.0 12.4 14.7 16.5 22.8 1.7 1.9 2.0 2.2 2.0 2.0 
 Tobaccos  32.2 37.4 42.7 50.4 61.8 67.6 7.0 7.0 6.9 7.5 7.4 5.8 
 Coke 0.4 0.4 0.9 1.0 1.3 2.0 0.1 0.1 0.1 0.2 0.2 0.2 
 Durable goods and others  4.7 4.9 5.0 6.2 12.1 15.3 1.0 0.9 0.8 0.9 1.4 1.3 
 Banking and insurance transaction tax  11.1 13.3 18.2 22.7 27.1 33.0 2.4 2.5 2.9 3.4 3.2 2.8 
 Gambling tax  0.9 1.0 1.2 1.7 3.5 6.1 0.2 0.2 0.2 0.2 0.4 0.5 
 Special communication tax  5.0 3.8 3.4 4.0 4.5 6.6 1.1 0.7 0.6 0.6 0.5 0.6 
 Digital Service s Tax 0.0 0.0 0.0 0.0 1.1 2.8 0.0 0.0 0.0 0.0 0.1 0.2 
 Other domestic taxes on good and services  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Taxes on international trade and transactions  86.2 112.4  138.0  142.3  185.4  297.5  18.8 21.0 22.2 21.1 22.3 25.5 
 Customs duties  9.1 12.3 15.2 16.8 25.6 34.4 2.0 2.3 2.5 2.5 3.1 3.0 
 VAT on imports  76.8 99.6 122.1  124.9  159.2  261.9  16.7 18.6 19.7 18.5 19.1 22.5 
 Other taxes on international trade and transactions  0.3 0.5 0.7 0.6 0.6 1.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Stamp duties  13.4 15.6 17.0 18.8 21.0 28.2 2.9 2.9 2.7 2.8 2.5 2.4 
 Fees 17.8 19.2 21.7 24.1 30.7 42.0 3.9 3.6 3.5 3.6 3.7 3.6 
 Other taxes not elsewhere classified  0.0 0.0 0.2 0.0 0.0 1.1 0.0 0.0 0.0 0.0 0.0 0.1 
Taxes on international trade and transactions as a share of 
central government revenues  15.6 17.8 18.2 16.2 18.0 21.1             
Source:  Central Bank of the Republic of Türkiye (CBRT), Electronic Data Delivery System. Viewed at: https://evds2.tcmb.gov.tr/index.php . 
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  Table  A3.2 MFN applied tariff summary, 2022  
  Number 
of lines  Average 
(%) Range 
(%) CVa Duty free 
(%) Non-ad 
valorem  
(%) 
All products  11,581  19.6 0-225 1.6 18.8 2.1 
HS 01 -24 2,662  51.8 0-225 0.9 9.7 6.9 
HS 25 -97 8,919  10.0 0-47 1.1 21.5 0.7 
By WTO category  
WTO agricultural products  2,281  49.2 0-225 1.1 13.7 8.8 
 Animals and products thereof  371 98.8 0-225 0.7 8.1 0.0 
 Dairy products  155 120.4  7.6-180 0.5 0.0 9.7 
 Fruit, vegetables, and plants  547 37.4 0-159.1  0.7 6.6 5.1 
 Coffee and tea  51 20.3 0-175.5  1.5 2.0 56.9 
 Cereals and preparations  259 32.5 0-130 0.8 7.7 29.3 
 Oils seeds, fats, oil and their products  194 16.4 0-74.3 0.9 21.6 3.1 
 Sugars and confection ery 49 82.6 9-135 0.7 0.0 30.6 
 Beverages, spirits and tobacco  341 49.2 0-74.9 0.5 15.5 4.4 
 Cotton  6 0.0 0 0.0 100.0  0.0 
 Other agricultural products, n.e.s.  308 9.7 0-75 1.3 40.3 5.2 
WTO non -agricultural products  9,300  12.3 0-81.9 1.2 20.1 0.5 
 Fish and fishery products  536 48.6 0-81.9 0.3 5.6 0.0 
 Minerals and metals  1,739  8.7 0-40 1.1 25.8 0.9 
 Chemicals and photographic supplies  1,710  6.2 0-31.5 0.9 18.2 0.4 
 Wood, pulp, paper and furniture  680 5.5 0-33.7 1.8 60.6 0.0 
 Textiles  1,095  18.4 0-39.7 0.6 1.7 0.1 
 Clothing  340 40.7 12-42 0.1 0.0 0.0 
 Leather, rubber, footwear and travel 
 goods  319 18.3 0-47 0.8 17.9 0.0 
 Non-electric machinery  1,127  5.8 0-31.7 1.0 20.5 0.0 
 Electric machinery  601 5.2 0-32.7 1.4 27.0 0.0 
 Transport equipment  380 8.0 0-35 0.9 7.1 0.0 
 Non-agricultural products, n.e.s.  727 8.7 0-29.7 1.1 22.7 2.6 
 Petroleum  46 3.8 0-4.7 0.3 4.3 0.0 
By ISIC sector  
 ISIC 1 - Agriculture, hunting and fishing  751 29.4 0-159.1  1.1 27.3 1.7 
 ISIC 2 - Mining  120 1.7 0-25 3.5 81.7 3.3 
 ISIC 3 - Manufacturing  10,709  19.1 0-225 1.6 17.5 2.1 
 Manufacturing excluding food processing  8,691  10.2 0-47 1.1 19.8 0.6 
 ISIC 4 - Electrical energy  1 0.0 0 0.0 100.0  0.0 
By stage of processing  
 First stage of processing  1,360  24.6 0-175.5  1.2 36.0 1.8 
 Semi-processed products  3,701  11.1 0-135 1.4 18.1 0.5 
 Fully processed products  6,520  23.3 0-225 1.5 15.6 3.0 
By HS section  
 01 Live animals and products  996 73.5 0-225 0.8 8.1 1.5 
 02 Vegetable products  600 29.2 0-175.5  0.8 11.2 4.2 
 03 Fats and oils  149 19.0 0-67.5 0.8 16.1 1.3 
 04 Prepared food, beverages and tobacco  917 48.2 0-135.9  0.7 9.4 15.5 
 05 Mineral products  241 1.8 0-25 2.4 57.7 1.7 
 06 Chemicals and products thereof  1,622  5.5 0-31.5 0.9 19.2 1.4 
 07 Plastics, rubber, and articles thereof  364 10.0 0-31.5 0.8 20.6 0.0 
 08 Raw hides and skins, leather, and its 
 products  169 16.7 0-39.7 0.8 21.9 0.0 
 09 Wood and articles of wood  340 3.7 0-30 2.0 53.2 0.0 
 10 Pulp of wood, paper and paperboard  300 4.0 0-25 2.0 75.7 0.0 
 11 Textiles and textile articles  1,389  23.2 0-42 0.6 4.0 0.1 
 12 Footwear, headgear, etc.  120 30.8 0-47 0.4 1.7 0.0 
 13 Articles of stone, plaster, cement  268 9.7 0-34 1.2 12.7 4.5 
 14 Precious stones and metals, pearls  66 5.0 0-19 1.4 62.1 0.0 
 15 Base metals and articles thereof  1,193  10.2 0-40 0.9 19.3 0.0 
 16 Machinery, electrical equipment, etc.  1,739  5.5 0-32.7 1.1 23.1 0.0 
 17 Transport equipment  397 7.8 0-35 0.9 6.8 0.0 
 18 Precision equipment  395 5.3 0-29.7 1.2 29.6 4.8 
 19 Arms and ammunition  25 2.3 0-3.2 0.5 16.0 0.0 
 20 Miscellaneous manufactured articles  264 19.0 0-33.7 0.5 3.8 0.0 
 21 Works of art, etc.  27 0.0 0 0.0 100.0  0.0 
a Coefficient of variation.  
Note:  2022 tariff schedule is based on HS 2022 nomenclature (at the 10 -digit tariff line level). Ad valorem  
equivalents (AVEs) were estimated based on 2021 import data at the 10 -digit tariff from the 
authorities.  
Source:  WTO Secretariat calculations, based on da ta provided by the authorities .  WT/TPR/S/ 439 • Türkiye  
 
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  Table  A3.3 Export prohibitions notified to the WTO, 2022  
Description  Rationale  Legal basis  
(date of entry into force)  
Antiques and archaeological works National 
treasures  Law on Ancient Works of Art  
(21/07/1983)  
Indian hemp Health  Law on the Control of Narcotics  
(24/06/1933)  
Tobacco seeds and tobacco seedlings  Environment  Directive on Procedure and Basis on 
Production of Tobacco, Marketing of 
Producer's Tobacco, Domestic and 
Foreign Trade, Control of Tobacco and 
Export of Tobacco  
(04/12/2002)  
All game and wild animals (except species on the list of 
"exports requiring a li cence"), alive or meat and/or pieces 
and garments thereof Environment  Decision of the Council of Ministers 
(08/03/1 990) 
Trunk, log, lumber and wooden beams of walnut, mulberry, 
cherry, pear, plum, ash, clin, linden and yew  trees Environment  Decision of th e Council of Ministers 
(24/04/1974)  
Natural flower bulbs  Environment  Export Regime Decree (22/12/1995)  
Wood  Environment  Export Regime Decree (22/12/1995)  
Liquidambar orientalis  Environment  Export Regime Decree (22/12/1995)  
Pterocarya carpinifolia  Environment  Export Regime Decree (22/12/1995)  
Datca dates  Environment  Export Regime Decree (22/12/1995)  
Plants of olive, fig (except species certified domestically 
that are registered and published in the National Species 
List), hazelnut, pistachio, and grapevine (sultanas seedless)  Environment  Export Regime Decree (22/12/1995)  
Sahlep (powder and of all sorts)  Environment  Export Regime Decree (22/12/1995)  
Chemicals in Annexes 1 and 2 to the Chemical Weapon 
Convention to non -contracting parties for chemicals listed in 
Annex  1 and to all parties or non -parities for chemicals 
listed in Annex  2 (with exceptions for exports for research 
and other purposes)  Comp liance 
with 
international 
convention; 
security  Law No.  4738 ( Official 
Gazette  (1997), No.  22960, 10  April)  
Law No.  5564 
(Official Gazette  (2006), No.  26383, 
21 December)  
Communiqué No.  2017/7  
(Official Gazette  (2017), No.  230144, 
4 August)  
Ozone -depleting  substances  Health, 
compliance with 
international 
convention  Regulation on Substances that 
Deplete the Ozone Layer  
(07/04/2017)  
Communiqué No.  2014/1 on Export of 
Ozone -depleting Substances  
(24/01/2014)  
Source:  WTO document G/MA/QR/N/TUR/2/Add.3, 15  February  2022.  
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  Table  A3.4 Exports requiring a licence, 2022  
Description  
(changes to legal/regulatory requirements since 
January  2016)  Authority 
responsible  Rationale  Automatic/  
non-automatic  
Opium and poppy heads  Ministry of 
Health  Prevent the production of 
drugs  non-automatic  
Narcotic drugs, psychotropic substances, precursors 
and chemicals under international  control  Ministry of 
Health  Prevent the production of 
drugs  non-automatic  
Raw diamonds  Ministry of 
Treasury and 
Finance  Take necessary 
precautions against fraud  non-automatic  
Products subject to Basel Convention on the Control 
of Transboundary Movements of Hazardous Wastes 
and their Disposal  Ministry of 
Environment, 
Urbanization 
and Climate 
Change  Protect human health and 
the environment from the 
negative effects of 
persistent organic 
pollutants  non-automatic  
Living or non -living boars, wolves, jackals, foxes, 
martens, badgers, snakes, turtles, lizards, and 
identifia ble parts of and clothing produced from them  Ministry of 
Agriculture 
and Forestry  CITES requirements  non-automatic  
Fertilizers (excluding chemical fertilizers)  Ministry of 
Agriculture 
and Forestry  Supply security and  
compatibility with 
standards  non-automatic  
Seeds (except forest -tree seeds)  
(Circular No.  2019/4 on Seed Export Implementation 
Rules and Procedures)  Ministry of 
Agriculture 
and Forestry  Phytosanitary reasons  non-automatic  
Fisheries products subject to  "prohibition derived from 
the princ iples of fishery" (including leeches)  
(Law No.  1380 of 22  March  1971 as amended by Law 
No. 7191 of 6  November 2019, and Communiqué 
No. 5/1 on Regulating Fisheries for Commercial 
Purposes (Official Gazette  (2020), No.  31221, 
22 August))  Ministry of 
Agricult ure 
and Forestry  CITES requirements  non-automatic  
Racehorses  Ministry of 
Agriculture 
and Forestry  Biodiversity. Health and 
standards requirements  non-automatic  
Feeds covered by the Feed Law  Ministry of 
Agriculture 
and Forestry  Supply security  non-automatic  
Pharmaceuticals for veterinary purposes  Ministry of 
Agriculture 
and Forestry  Compatibility with 
standards  non-automatic  
Export of natural flower bulbs subject to quota or any 
other kind of restriction  Ministry of 
Agriculture 
and Forestry  CITES requirements.  
Biodiversity  
protection of environment 
and species  non-automatic  
Live animals kept for stud  Ministry of 
Agriculture 
and Forestry  Supply security  non-automatic  
Natural mushrooms (only exports to EU countries)  Ministry of 
Agriculture 
and Forestry  Biodiversity.  
Compatibility with 
standards  non-automatic  
Live tuna fish (Thynnus thunnus)  Ministry of 
Agriculture 
and Forestry  ICCAT requirements  non-automatic  
Materials within the context of Munitions List of 
Wassenaar Arrangement / goods covered by the 
Missile Technology Controlling Regime  Ministry of 
National 
Defence  Regulate procedures for 
establishment, operation 
and control of industries 
producing war tools and 
equipment, and weapons 
and ammunition  non-automatic  
Sugar Ministry of 
Agriculture 
and Forestry  Issuing of licences 
through EVIS System  automatic  
Technology  and equipment used for nuclear purposes 
and radioactive materials  
(Regulation No.  31038 of 13  February 2020 on 
Nuclear Export Control and Law No.  7381 on Nuclear 
Regulation of 5  March  2022)  Turkish 
Energy 
Nuclear and 
Mineral 
Research 
Agency  Control of activities 
related to nuclear energy 
and ionizing radiation, on 
the basis of the principle 
of peaceful use, and the 
legal liability for nuclea r 
damages resulting from 
nuclear incidents  non-automatic  
Tobacco leaf and tobacco refuse  Ministry of 
Agriculture 
and Forestry  Compatibility with 
standards  automatic  WT/TPR/S/ 439 • Türkiye  
 
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  Description  
(changes to legal/regulatory requirements since 
January  2016)  Authority 
responsible  Rationale  Automatic/  
non-automatic  
Forest -tree seeds and other breeding materials  Ministry of 
Environment, 
Urbanization 
and Climate 
Change  .. .. 
Olive tree sapling ( species certificated domestically 
which are registered and published in the National 
Species List ) Ministry of 
Agriculture 
and Forestry  Protection of genetic 
resources  non-automatic  
Explosive materials within the context of Regulatory 
Statute No.  87/12028  Ministry of 
Internal 
Affairs  security measures 
relating to the production 
of explosive products  non-automatic  
Angora goats  Ministry of 
Agriculture 
and Forestry  Protection and 
reproduction activities 
(Angora goat is registered 
as genetic race)  non-automatic  
Various native goats, sheep, chickens, dogs, cats, 
rabbits, honeybees, silkworms, horses and donkeysa Ministry of 
Agriculture 
and Forestry  .. non-automatic  
Communiqué Concerning the Export of Chemicals 
Substances listed in annex II (to member states only) 
and annex III  to the Convention of Chemical Weapons  
Communique No.  2017/07, Official Gazette No.  30144 
of 4 August 2017  Ministry of 
Trade  Requirements from 
membership of 
Convention of Chemical 
Weapons  non-automatic  
Communiqué Concerning the Control of the Export of 
Dual-use and Sensitive Goods  Ministry of 
Trade  International commitment 
for enhancing security in 
the margins of  
Wassenaar Arrangement 
List of Dual -Use Goods 
and Technology and  
Australia Group List of 
Chemical Precursors  non-automatic  
.. Not available.  
a The list of these native animals/birds/insects has remained unchanged since Türkiye's previous 
Review and can be found in WTO document WTO/TPR/S/331/Rev.1, 9  August 2016, Table  3.20.  
b International Commission for the Conservation of Atlantic Tunas (ICCAT) . 
c Convention on the International Trade in Endangered Species of Wild Fauna and Flora (CITES) . 
Note:  The legal/regulatory basis for export licensing requirement s for each product group, where 
unchanged, is contained in WTO document WTO/TPR/S/331/Rev.1, 9  August  2016, Table  3.20.  
Source : Information provided by the authorities . 
 WT/TPR/S/ 439 • Türkiye  
 
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  Table  A3.5 Communiqués on product safety and inspection, 2022  
Communiqué  Overview  
2022/1  Industrial products within the scope of some Turkish Standards, which are at the same time 
mandated in the domestic market, are subject to inspection by the Turkish Standards Institution 
(TSE) on behalf of the Ministry of Trade. The inspections are carried out in respect of minimum 
health, safety, and protection of environment standards, to provide adequate inf ormation to the 
consumers.  
2022/3  This Communiqué includes wastes whose import is controlled (Annex -I) or prohibited  (Annex -II/A, 
Annex -II/B) in accordance with the European Waste Catalogue and the Basel  Convention on the 
Control of Transboundary Movement s of Hazardous Wastes and their Disposal. According to this 
Communiqué, import of wastes in its Annex -I are subject to physical control carried out by the 
Ministry of Environment, Urbanization, and Climate Change. Following the conformity assessment 
proced ure, the Conformity Document, which is required to be submitted to the customs authorities 
during importation, is issued by the Ministry.  
2022/4  According to this Communiqué, the import of drugs and psychotropic substances, which can be 
imported only with  the permission of the Ministry of Health in compliance with the relevant 
international agreements, is subject to the control of the Ministry.  
2022/5  The purpose of this Communiqué is to regulate the principles and procedures with regard to the 
conformity  inspection regarding human health and safety and animal and plant existence in 
imports of the products. A certificate of conformity is issued for all products in all Appendices by 
the Ministry of Agriculture and Forestry. Physical controls and sample anal yses are also carried out 
by the Ministry.  
2022/6  Covers importation of chemical products that are listed in its Annex -I. The import of all but nine of 
these products is banned. To import the products in HS Codes 2903.14.00.00.00, 
2903.19.00.00.19, 2903.7 6.10.00.00.00, 2903.76.20.00.00, 2903.76.90.00.00, 
2903.77.66.00.00, 2903.77.90.00.00, and 2903.79.30.00.59 the importer must obtain a Control 
Certificate issued by the Ministry of Environment, Urbanization, and Climate Change. Moreover, 
products under HS Code 2903.71.00.00.00 can be imported for specific uses listed in the 
Communiqué. The documents required to get the Control Certificate are stated in the 
Communiqué, such as a pro  forma invoice, certificate of analyses, the label of the product, etc. 
The C ontrol Certificate should be submitted to the customs authorities  during the import stage.  
2022/7  Covers importation of solid fuels listed in its Annex -I. To import these products, the importer shall 
receive a Conformity Document issued after analysis car ried out by the laboratories that are 
authorized by the Ministry of Environment, Urbanization and Climate Change. The documents 
required to obtain the Conformity Document are defined in this Communiqué. The importer shall 
submit the Conformity Document to the customs authorities during the import  stage.  
2022/8  Covers import controls for radio and telecommunication terminal equipment, and is implemented 
as of 01/05/2006, coherent with EU legislation.  
2022/9  This Communiqué on machinery, low voltage equipment, electromagnetic compatibility, pressure 
equipment, simple pressure vessels, transportable pressure equipment, appliances burning fuels, 
lifts, and hot -water boilers are subject to mainly documentation inspection by the TSE on behalf of 
the Minis try of Trade at the import stage. The inspections are carried out in respect of essential 
requirements, which are laid down in the technical regulations.  
2022/10  Covers import controls for toys, and is implemented as of 12/12/2005, coherent with 
EU legislation.  
2022/11  Covers the safety controls for imports of personal protective equipment and is implemented 
coherent with EU legislation.  
2022/12  Covers importation of some consumer products that are listed in its Annex -I and subject to 
conformity assessme nt protection of human health, human life and property, environment, and 
consumers.  
2022/14  This Communiqué regulates import controls of construction products such as thermal insulation 
products for buildings, steel bars, etc.  
2022/15  This Communiqué regulates import controls of batteries and accumulators.  
2022/16  This Communiqué regulates import controls of medical devices such as in vitro, active implantable 
medical devices, etc.  
2022/18  This Communiqué regulates import controls of footw ear, textiles, apparel, and leather products.  
2022/19  The purpose of this Communiqué is to regulate the principles and procedures with regard to 
the conformity certification regarding market security and health, documentation, 
notification and inspection of the products, which are tobacco, tobacco products, alcohol and 
alcoholic beverages, in importation thereof.  
2022/20  According to this Communiqué, importation of certain goods such as pharmaceutical products, 
medicines, some chemicals, etc. are subject to the control of the Ministry of Health. For the 
importation of these goods, the importer shall submit some documents such as the pro forma 
invoice or invoice, certificate of analysis, etc. to the Ministry of Health before the import stage. 
The importer s hould submit the Control Certificate to the customs authorities during the 
import  stage.  
2022/21  The products within this Communique must mandatorily be up to specific standards with 
respect to quality compliance with the commercial quality standards on e xportation and 
importation. This Communiqué lays down principles and procedures relating to risk -based 
inspections of these products with respect to quality compliance with the commercial quality 
standards at export and import stage.  WT/TPR/S/ 439 • Türkiye  
 
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  Communiqué  Overview  
2021/22  This Communiqué lays down the principles and procedures regarding the classification of firms 
exporting products subject to commercial quality inspections on exports, specifications on which 
the classification is to be based, and the rights and obligations of t he firms for which the classes 
are determined, to determine how and how often the products on export subject to commercial 
quality inspection shall be subject to commercial quality inspection.  
2022/23  For the importation of scrap metals listed in the Anne x I of this Communiqué, the importer shall 
receive a Metal Scrap Importer Document issued by the Ministry of Environment, Urbanization, 
and Climate Change. The Metal Scrap Importer Document is only given to those firms that are 
licensed by the Ministry in question and have scrap melting facilities and pre -treatment facilities. 
As per the Communiqué, import of the metal scraps shall be done only at border customs 
authorities with a radiation detection system installed. Annex  II of this Communiqué lists the 
dangerous scraps whose import is prohibited.  
2015/24  This Communiqué determines the rules and conditions for formation of International Preshipment 
Inspection Companies. It regulates the responsibilities of these companies, as well as monitoring 
and inspec tion procedures for their activities. According to Communiqué in question, International 
Preshipment Inspection Companies carry out the related inspection activities for verification of the 
tradable goods in terms of their quality, quantity, prices, and cu stoms classification, etc.  
2012/25  This Communiqué lays down principles and procedures relating to export, import, and internal 
market controls of cotton.  
2022/25  This Communiqué regulates import controls of vehicle parts.  
2012/27  This Communiqué lays d own principles and procedures relating to the infrastructure conditions of 
factories that are subject to classification and control of cottons, determination of cotton class and 
types, packaging, marking, sampling, and analysis for control processes.  
Source:  Information provided by the authorities .  
  WT/TPR/S/439 • Türkiye  
 
- 166 - Table  A3.6 Summary of Türkiye's protection of IPRs, 2022  
Main legislation  Duration  Selected coverage, exclusions and 
limitations  Fees/levies (2022)  
Copyrights  
Law No.  5846 on Intellectual 
and Artistic Works,  as amended 
by Law No. 4110 of 7  June 
1995, Law No.  5101 of 
2 December  2004, Law 
No. 5571 of 
28 December  2006, Law 
No. 5728 of 23  January 2008,  
Law No.  6279 of 
29 February  2012, and Law 
No. 6552 of 
10 September  2014 70 years from author's  death (or 
if there is more than one author, 
from the death of the last 
remaining author). For related 
rights, 70  years  from the date of:  
-first fixation or making public of 
the performance;  
-first fixation of music or film 
productions;  or 
-first broadcasting of radio -TV 
programmes.  Law No.  5846 covers the moral and economic 
rights of authors and related right holders 
(performers, phonogram and film producers 
and radio -television organizations), the rules 
and procedures regarding transactions on 
such rights, and ways of le gal recourse and 
sanctions.  
Law No.  5846 provides a series of exceptions 
for: 
-Due to public order (use works as evidence 
in court) (Art.  30) 
-Legislation and court decisions (Art.  31) 
-Speeches made in the official assemblies 
(Art. 32) 
-For the purpose s of face -to-face education 
(Art. 33) 
-Selected and collected works for educational 
and instructional purposes (Art.  34) 
-Freedom of quotation (Art.  35) 
-Contents of newspapers (Art.  36) 
-News (use works for giving information in 
relation to current events) ( Art. 37) 
-Personal use (Art.  38) 
-Works of fine arts permanently placed on 
public streets (Art.  40) 
-For the benefit of the people with disability 
(Additional Art.  11) According to Article  44 of the Copyright Law, 
natural and legal persons who manufacture or 
import for commercial purposes any kind of 
materials such as blank cassettes, computer 
disks, CDs, DVDs, and any kind of technical 
devices  enabling reproduction of works are 
obliged to deposit a certain amount which 
does not exceed 3% of the manufacturi ng or 
importation costs.  
This amount shall be exploited for 
strengthening the IP  system and supporting 
cultural and artistic activities.  
Patents  
Law No.  6769 of 
22 December  2016 on 
Industrial Property (Industrial 
Property Law)  20 years from date of filing for 
fully protected patent following 
examination process  
10 years for utility models  Patentability criteria: patents shall be granted 
for any inventions, in all fields of technology, 
provided that they are new, involve an 
inventive step and are susceptible of 
industrial application.  
 
The following in particular shall not be 
regarded as invention.  
 
If the patent application or patent is related 
to the following subject  matter or activities, 
only these subject matters or activities Patent filing fee: TRY 75  
 
Other fees for claiming prio rity, time 
requests, publication, issuing priority 
documents, registration of transfer of rights, 
inspection of files by third parties, search 
report, examination report, request for 
reestablishment of rights etc., ranging from 
TRY 30 to TRY 3550   
  WT/TPR/S/439 • Türkiye  
 
- 167 - Main legislation  Duration  Selected coverage, exclusions and 
limitations  Fees/levies (2022)  
themselves as su ch are excluded from 
patentability:  
(a) discoveries, scientific theories and 
mathematical methods;  
(b) schemes, rules and methods for 
performing mental acts, playing games or 
business activities,  
(c) programs for computers;  
(d) aesthetic creations; and  
(e) works of scientific  presentations of 
information.  
 
Patents shall not be granted in respect of 
following inventions:  
(a) inventions contrary to "public order" or 
morality; (commercial exploitation shall not 
be deemed to be so contrary merely because 
it is prohibited by law or regulation) ; 
(b) plant or animal varieties or essentially 
biological processes for the production of 
plants or animals; this provision shall not 
apply to microbiological processes or the 
products thereof;  
(c) all treatment methods, i ncluding 
diagnostic methods and surgical methods 
practised on the human or animal body (this 
provision shall not apply to products, in 
particular substances or compositions, for use 
in any of these methods ; 
(d) the human body, at the various stages of 
its formation and development, and the 
simple discovery of one of its elements, 
including the sequence or partial sequence of 
a gene ; 
(e) processes for cloning human beings, 
processes for modifying the germ line genetic 
identity of human beings, uses of human 
embryos for industrial or commercial 
purposes ; and  
(f) processes for modifying the genetic 
identity of animals which are likely to cause 
them suffering without any substantial 
medical benefit to man or animal, and also 
animals resulting from such pro cesses.   
  WT/TPR/S/439 • Türkiye  
 
- 168 - Main legislation  Duration  Selected coverage, exclusions and 
limitations  Fees/levies (2022)  
Criteria for utility models; novelty, and 
industrial applicability. Technical features, 
which do not contribute to the subject matter 
of invention, are considered in the 
assessment of novelty.  
Trademarks  
Trade Mark Law No.  6769 of 
22 December  2016 on 
Industrial Property (Industrial 
Property Law)  10 years (renewable). Failure to 
use marks within 5 years of 
registration, or subsequent 
5-year periods may result in 
revocation.  Covers goods, service, guarantee marks and 
collective marks. Exclusions include marks that 
might confuse the public.  Single filing fee of TRY 380.  
Registration certificate fee of TRY 1 ,020. 
Other fees for renewals, copies, recording, 
editing, opposition, handling fee, d ivision of 
application, appeals, etc., ranging from 
TRY 60 to TRY 2 ,505 
Geographical indications  
Law No.  6769 of 
22 December  2016 on 
Industrial Property (Industrial 
Property Law)a and 
Geographical Indication and 
Traditional Product Name 
Emblem Regulation  Indefinite  Covers all food, agricultural, mining, 
handicraft and industrial products.  Application fee of TRY 65, registration fee of 
TRY 120.  
Other fees for appeals, amendments, copies, 
etc., ranging from TRY 60 to TRY 220 . 
Industrial designs  
Law No.  6769 of 
22 December  2016 on 
Industrial Property (Industrial 
Property Law)b  5 years from filing date, 
renewable for 5 -year periods to a 
maximum of 25 years.  Covers new and distinctive designs.  
Exclusions include and computer programs 
(covered by Copyright Law) and topographies 
of semi -conductors.  Single filing fee of TRY 270.  
Other fees for publication, deferment, 
renewal, registration, transfer, licence, 
priority, examination, etc., ranging from 
TRY 60 to TRY 1 ,290. 
Plant varieties  
Law No.  5042 on the Protection 
of Plant Breeder's Rights for 
New Plant Varieties, and 
Law No. 5553 on Seeds  25 years after registration 
(30 years for trees, vines, and 
potatoes)  Covers plant varieties that are found to be 
new, distinct, uniform and stable. Covers all 
plants.  Application fee of TRY  620. 
Other fees for priority application, 
examinations, etc. ranging from TRY  62 to 
TRY 1,100.  
Integrated circuit topographies   
Law No.  5147 on Integrated 
Circuits  10 years from the date of first 
commercial exploitation by right 
holder anywhere in the world.  Covers original designs. Does not apply to the 
concepts, processes, systems or techniques 
on which the topography is based or to 
information stored in a microelectronic 
semico nductor product. Reproduction for 
evaluation, analysis, research or teaching is 
permitted.  Application fee of TRY 780.  
Other fees for objections, registration, 
amendments, extension, publication, 
mergers, re -registration, etc. ranging from 
TRY 220 to TRY 2 ,440.  
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- 169 - Main legislation  Duration  Selected coverage, exclusions and 
limitations  Fees/levies (2022)  
Protection of undisclosed information  
Regulation on Licensing of 
Medical Products for Human 
Use (Art. 9) Data exclusivity period of 
six years to  commence as of first 
registration date in the Customs 
Union Area. With regard to those 
products which benefit from 
patent protection in Türkiye, the 
data exclusivity period is limited 
to the term of the patent.  Medicinal products for human use  n.a. 
n.a. Not applicable.  
a Protection for unregistered geographical indications is provided through the unfair competition provisions of the Turkish Commercial Code.  
b Industrial designs may be covered by both the Copyright and the Industrial Design Laws. The term is 70 years under the former  and 20 years under the 
latter. Where the work is protected under b oth laws, a right holder may choose either or both.  
Source:  WIPO Lex. Viewed at: http://www.wipo.int/wipolex/en . 
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