WT/TPR/S /331/Rev.1  
9 August 2016  
(16-4275) Page: 1/214 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
TURKEY 
Revision  
This report, prepared for the sixth Trade Policy Review of Turkey, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establish ing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Turkey on its trade policies 
and practices.  
 
Any technical questions arising from this report may be addressed t o Ms Denby Probst 
(tel.: 022 739 5847), Ms Katie Waters (tel.: 022 7 39 5067), Ms Mena Hassan 
(tel.: 022 739 6522), and Mr John Finn (tel.: 022 739 5081) . 
 
Document WT/TPR/G/331 /Rev.1  contains the policy statement submitted by Turkey.  
 
 
Note: This report was drafted in English.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ......................  10 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  14 
1.1   Recent Economic Developments ................................ ................................ ..................  14 
1.2   Balance of Payments  ................................ ................................ ................................ . 17 
1.3   Fiscal Policy  ................................ ................................ ................................ .............  19 
1.4   Monetary and Exchange Rate Policy  ................................ ................................ ............  20 
1.5   Trade Performance  ................................ ................................ ................................ ... 20 
1.6   Foreign Direct Investment  ................................ ................................ .........................  24 
2   TRADE AND INVESTMENT  REGIME  ................................ ................................ ............  27 
2.1   General Framework  ................................ ................................ ................................ .. 27 
2.2   Trade Policy Objectives  ................................ ................................ .............................  28 
2.3   Trade Agreements and Arrangements  ................................ ................................ ..........  30 
2.3.1   Participation in the W TO ................................ ................................ .........................  31 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 31 
2.3.2.1    Customs Union with the EU  ................................ ................................ ..................  31 
2.3.2.2    Reciprocal trade agreements  ................................ ................................ .................  33 
2.3.2.3    Unilateral preferential regimes  ................................ ................................ ..............  36 
2.3.3   Other  agreements and arrangements  ................................ ................................ ........  36 
2.3.3.1    Turkey -Iran Preferential Trade Agreement  ................................ ..............................  36 
2.3.3.2    Economic Cooperation Organizatio n (ECO)  ................................ ..............................  37 
2.3.3.3    Developing -8 (D-8) ................................ ................................ .............................  37 
2.3.3.4    Organization of Islamic Cooperation (OIC)  ................................ ..............................  37 
2.3.3.5    Black Sea Economic Cooperation (BSEC)  ................................ ................................  38 
2.4   Investment Regime  ................................ ................................ ................................ .. 38 
2.4.1   Overview  and framework  ................................ ................................ ........................  38 
2.4.2   Investment policy  ................................ ................................ ................................ .. 39 
2.4.3   Investment restrictions  ................................ ................................ ...........................  40 
2.4.4   Investment incentives  ................................ ................................ ............................  40 
2.4.4.1    Investment schemes  ................................ ................................ ...........................  40 
2.4.4.2    Investment zones  ................................ ................................ ...............................  42 
2.4.4.2.1    Technology Development Zones  ................................ ................................ .........  42 
2.4.4.2.2    Organized Industrial Zones  ................................ ................................ ................  43 
2.4.4.2.3    Free Zones  ................................ ................................ ................................ ...... 43 
2.4.5   Investment promotion  ................................ ................................ ............................  44 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  45 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  45 
3.1.1   Customs procedures and requirements  ................................ ................................ ..... 45 
3.1.2   Trade facilitation  ................................ ................................ ................................ .... 48 
3.1.3   Customs valuation  ................................ ................................ ................................ . 49 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.1.4   Rules of origin  ................................ ................................ ................................ ....... 49 
3.1.5   Tariffs  ................................ ................................ ................................ ..................  50 
3.1.5.1    Applied MFN duties  ................................ ................................ ..............................  50 
3.1.5.2    WTO bound duties  ................................ ................................ ...............................  55 
3.1.5.3    Preferential tariffs  ................................ ................................ ...............................  55 
3.1.5.4    Other duties and charges (ODCs)  ................................ ................................ ..........  56 
3.1.5.5    Tariff-rate quotas  ................................ ................................ ................................  57 
3.1.5.6    Tariff exemptions  ................................ ................................ ................................  58 
3.1.5.7    Fees and charges for services rendered  ................................ ................................ .. 58 
3.1.6   Other charges affecting imports  ................................ ................................ ...............  59 
3.1.6.1    Value Added Tax  ................................ ................................ ................................ . 59 
3.1.6.2   Strip stamps for alcoholic beverages and tobacco products  ................................ ........  59 
3.1.6.3    Special Consumption Tax  ................................ ................................ .....................  60 
3.1.6.3.1    SCT on petr oleum products  ................................ ................................ ................  60 
3.1.6.3.2    SCT on motor vehicles, aircraft, and vessels  ................................ .........................  61 
3.1.6.3.3    SCT on alcoholic beverages  ................................ ................................ ................  63 
3.1.6.3.4    SCT on tobacco products  ................................ ................................ ...................  64 
3.1.6.3.5    SCT on durable consumer goods  ................................ ................................ .........  64 
3.1.6.4    Other taxes and charges  ................................ ................................ ......................  65 
3.1.7   Import prohibitions, restrictions, and licensing  ................................ ...........................  65 
3.1.7.1    Import pr ohibitions  ................................ ................................ .............................  65 
3.1.7.2    Import restrictions and licensing  ................................ ................................ ...........  66 
3.1.8   Contingency measures  ................................ ................................ ...........................  68 
3.1.8.1    Anti-dumping and countervailing measures  ................................ .............................  68 
3.1.8.2    Safeguard measures  ................................ ................................ ............................  69 
3.1.9   Stand ards and other technical requirements  ................................ ..............................  70 
3.1.9.1    Developments  ................................ ................................ ................................ .... 70 
3.1.9.2    Policy and framework  ................................ ................................ ..........................  70 
3.1.9.3    Alignment with the EU  ................................ ................................ .........................  72 
3.1.9.4    Controls at the border  ................................ ................................ ..........................  73 
3.1.9.5    Quality in frastructure  ................................ ................................ ...........................  73 
3.1.9.6    Market surveillance  ................................ ................................ .............................  74 
3.1.9.7    WTO and Bilateral Agreements  ................................ ................................ ..............  74 
3.1.10    Sanitary and phytosanitary requirements  ................................ ................................  75 
3.1.10.1    Overview and alignment with the EU  ................................ ................................ .... 75 
3.1.10.2    Legal overview  ................................ ................................ ................................ .. 76 
3.1.10.3    Framework  ................................ ................................ ................................ ....... 78 
3.1.10.4    Biosafety  ................................ ................................ ................................ ..........  79 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............  80 
3.2.1   Export procedures and requirements  ................................ ................................ ........  80 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.2.1.1    Procedures  ................................ ................................ ................................ .........  80 
3.2.1.2    Inward processing regime  ................................ ................................ ....................  80 
3.2.1.3    Outward processing regime  ................................ ................................ ..................  81 
3.2.2   Export taxes, charges, and levies  ................................ ................................ .............  81 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  81 
3.2.3.1    Export of strategic goods  ................................ ................................ .....................  81 
3.2.3.2    Export quality control  ................................ ................................ ..........................  82 
3.2.3.3    Export prohibitions  ................................ ................................ ..............................  82 
3.2.3.4    Export licensing  ................................ ................................ ................................ .. 83 
3.2.4   Export support and promotion  ................................ ................................ .................  86 
3.2.4.1    Export promoti on organizations  ................................ ................................ .............  86 
3.2.4.2    Export support programmes  ................................ ................................ .................  87 
3.2.5   Export finance, insurance, guarantees  ................................ ................................ ...... 87 
3.3   Measures Affecting Production and Trade  ................................ ................................ ..... 89 
3.3.1   Business framework  ................................ ................................ ...............................  89 
3.3.1.1   Commercial Code  ................................ ................................ ................................  90 
3.3.1.2    Regulatory bodies  ................................ ................................ ...............................  90 
3.3.1.3    SMEs  ................................ ................................ ................................ .................  91 
3.3.2   Incentives, state aid, and subsidies  ................................ ................................ ..........  93 
3.3.2.1    TURQUALITY® ................................ ................................ ................................ .... 96 
3.3.2.2    WTO notifications on subsidies  ................................ ................................ ..............  96 
3.3.3   Competition policy and price controls  ................................ ................................ ........  96 
3.3.3.1    Price controls  ................................ ................................ ................................ ..... 96 
3.3.3.2    Competition policy  ................................ ................................ ..............................  97 
3.3.4   State trading, state -owned enterprises, and privatization  ................................ ...........  100 
3.3.4.1    State  Trading Enterprises  ................................ ................................ ...................  100 
3.3.4.2    State -owned enterprises (SOEs)  ................................ ................................ ..........  101 
3.3.4.3    Privatization  ................................ ................................ ................................ ..... 103 
3.3.5   Government procurement  ................................ ................................ .....................  106 
3.3.5.1    Basic legal framework  ................................ ................................ ........................  106 
3.3.5.2    Procurement m arket and statistics  ................................ ................................ ....... 108 
3.3.5.3    Institutional framework  ................................ ................................ ......................  109 
3.3.5.4    Domestic review  ................................ ................................ ...............................  110 
3.3.5.5    National preferences  ................................ ................................ ..........................  110 
3.3.5.6    Participation in international agreements covering government procurement  .............  111 
3.3.6   Intellectual property rights  ................................ ................................ ....................  111 
3.3.6.1    Legal framework  ................................ ................................ ...............................  113 
3.3.6.2    International agreement s and conventions  ................................ ............................  116 
3.3.6.3    Border measures and enforcement  ................................ ................................ ...... 117 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ ...................  120  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.1   Agriculture  ................................ ................................ ................................ ............  120 
4.1.1   Overview  ................................ ................................ ................................ ............  120 
4.1.2   Production  ................................ ................................ ................................ ..........  120 
4.1.3   Trade  ................................ ................................ ................................ .................  122 
4.1.3.1    Overview  ................................ ................................ ................................ .........  122 
4.1.3.2    TRQs ................................ ................................ ................................ ...............  123 
4.1.4   Support programmes  ................................ ................................ ...........................  125 
4.1.5   Strategy and policy  ................................ ................................ ..............................  128 
4.1.6   Export subsidies  ................................ ................................ ................................ .. 130 
4.1.7   Legal framework  ................................ ................................ ................................ .. 131 
4.1.8   Major agriculture sectors  ................................ ................................ ......................  132 
4.1.8.1    Hazelnuts  ................................ ................................ ................................ ........  132 
4.1.8.2    Livestock  ................................ ................................ ................................ .........  132 
4.1.9   Marketing Boards  ................................ ................................ ................................ . 135 
4.1.9.1    Turkish Grain Board  ................................ ................................ ..........................  135 
4.1.9.2    Sugar Authority  ................................ ................................ ................................  137 
4.1.9.3    Meat and Milk Board (ESK)  ................................ ................................ .................  137 
4.1.9.4    Tobacco and Alcohol Market Regulatory Authority (TAPDK)  ................................ ...... 138 
4.1.10    Food Aid  ................................ ................................ ................................ ...........  138 
4.2   Manufacturing  ................................ ................................ ................................ ........  138 
4.2.1   Automotive sector  ................................ ................................ ................................  140 
4.2.2   Textiles and clothing  ................................ ................................ ............................  142 
4.2.3   Chemicals  ................................ ................................ ................................ ...........  143 
4.3   Services  ................................ ................................ ................................ ................  145 
4.3.1   Financial services  ................................ ................................ ................................ . 145 
4.3.1.1    Banking  ................................ ................................ ................................ ...........  146 
4.3.1.2    Insurance  ................................ ................................ ................................ ........  148 
4.3.1.3    Securities  ................................ ................................ ................................ ........  149 
4.3.2   Health  ................................ ................................ ................................ ................  154 
4.3.2.1    Overview  ................................ ................................ ................................ .........  154 
4.3.2.2    Trade  ................................ ................................ ................................ ..............  155 
4.3.2.3    Structure of the sector  ................................ ................................ .......................  155 
4.3.2.4    Policy  ................................ ................................ ................................ ..............  156 
4.3.2.5    Legal and regulatory framework  ................................ ................................ ..........  157 
4.3.2.6    Licensing, accreditation, and regulatory aspects  ................................ ....................  158 
4.3.2.7    Incentives  ................................ ................................ ................................ ........  159 
4.3.2.8    Health tourism subsector  ................................ ................................ ...................  160 
4.3.2.8.1    Health tourism policy  ................................ ................................ ......................  160 
4.3.2.8.2    Health tourism incentives  ................................ ................................ ................  160 
4.3.2.8.3    Health tourism statistics  ................................ ................................ ..................  161 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.3.2.9    GATS commitments  ................................ ................................ ...........................  161 
4.3.3   Telecommunications  ................................ ................................ .............................  162 
4.3.4   Tourism  ................................ ................................ ................................ ..............  168 
4.3.4.1    Overview  ................................ ................................ ................................ .........  168 
4.3.4.2    Tourism by the numbers  ................................ ................................ ....................  168 
4.3.4.3    Framework  ................................ ................................ ................................ ....... 169 
4.3.4.4   Policy and strategy  ................................ ................................ ............................  169 
4.3.4.5    Types of tourism  ................................ ................................ ...............................  170 
4.3.4.6    Legal and regulatory framework  ................................ ................................ ..........  171 
4.3.4.7    Licensing and classification  ................................ ................................ .................  172 
4.3.4.8    Incentives  ................................ ................................ ................................ ........  173 
4.3.4.9    GATS c ommitments  ................................ ................................ ...........................  174 
4.3.5   Distribution  ................................ ................................ ................................ .........  174 
4.3.5.1    Regulatory framework  ................................ ................................ .......................  175 
4.3.5.2    Market structure  ................................ ................................ ...............................  176 
REFERENCES  ................................ ................................ ................................ ................  181  
5   APPENDIX TABLES  ................................ ................................ ................................ .. 183  
 
CHARTS  
 
Chart 1.1 Distribution of GDP by industry group at current basic prices, 2014  ...........................  15 
Chart 1.2 Distribution of GDP by industry group at current b asic prices, 2010 -14 ......................  16 
Chart 1.3 Turkey's current account, 2000 -14 ................................ ................................ ....... 17 
Chart 1.4 Composition of merchandise trade, 2010 and 2014  ................................ .................  23 
Chart 1.5 Direction of merchandise trade, 2010 and 2014  ................................ ......................  24 
Chart 1.6 Foreign Direct Investment, 2010 -14 ................................ ................................ ..... 25 
Chart 2.1 Imports by type of import regime, 2014  ................................ ................................  30 
Chart 3.1 Distribution of MFN tariff rates, 2011 and 2015  ................................ ......................  52 
Chart 3.2 Average tariff rates, by WTO product category, 2011 and 2015  ................................  55 
Chart 4.1 TMO operations, 2011 -15 ................................ ................................ ..................  136 
Chart 4.2 Evolution of exports for selected manufacturing product groups , 2000 -14 ................  139 
Chart 4.3 Regulatory structure of the financial markets  ................................ .......................  146 
Chart 4.4 Domestic visitors and incoming tourists by purpose of visit, 2014  ...........................  170 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators,  2010-15 ................................ .........................  14 
Table 1.2 Balance of payments, 2010 -15 ................................ ................................ .............  18 
Table 1.3 Trade in services, 2010 -14 ................................ ................................ ..................  22 
Table 2.1 Main trade -related laws and legislation in Turkey, December 2015  ............................  27 
Table 2.2 Turkey's preferential trade with the EU, 2011 -14 ................................ ....................  32 
Table 2.3 Overview of Turkey's FTAs, December 2015  ................................ ...........................  34 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 2.4 Overview of new FTAs, 2011 -15 ................................ ................................ ...........  34 
Table 2.5 Overview of Turkey's investment incentive schemes  ................................ ................  41 
Table 2.6 Overview of fixed capital investments under the incentive schemes, 
2011-July 2015 ................................ ................................ ................................ ...............  42 
Table 2.7 Overview of Technology Development Zones, 2011 -14 ................................ ............  43 
Table 2.8 Overview of Free Zones, 2011 -14 ................................ ................................ .........  44 
Table 3.1 Structure of MFN tariffs in Turkey, 2011 and 20 15 ................................ ..................  51 
Table 3.2 Tariff lines where applied tariff rates exceed bound tariff rates, 2015  .........................  52 
Table 3.3 Turkey's applied MFN tariff summary, 2015  ................................ ...........................  53 
Table 3.4 Summary analysis of the Turkish preferential tariffs, 2015  ................................ ....... 56 
Table 3.5 Turkey's TRQs on industrial products, 2015  ................................ ............................  57 
Table 3.6 Key features of concessional entry schemes, 2015  ................................ ..................  58 
Table 3.7 VAT rates  ................................ ................................ ................................ ..........  59 
Table 3.8 Price list for tobacco and alcoholic beverage products, 2015  ................................ ..... 60 
Table 3.9 SCT revenue, 2011 -14 ................................ ................................ ........................  60 
Table 3.10 SCT as applied to petroleum products, 2015  ................................ .........................  61 
Table 3.11 SCT as applied to motor veh icles, aircraft and vessels 2015  ................................ .... 61 
Table 3.12 SCT on alcoholic beverages, 2015  ................................ ................................ ....... 63 
Table 3.13 SCT duties on tobacco products, 20 15 ................................ ................................ . 64 
Table 3.14 SCT duties on durable consumer goods  ................................ ...............................  64 
Table 3.15 Import prohibitions, 2015  ................................ ................................ ..................  65 
Table 3.16 Imports requiring a licence, 2015  ................................ ................................ ....... 67 
Table 3.17 Turkey's main laws and regulations on technical regulations and standards, 
2015  ................................ ................................ ................................ ............................  71 
Table 3.18 SPS laws and regulations, 2011 -15 ................................ ................................ ..... 77 
Table 3.19 Export prohibitions, 2015  ................................ ................................ ..................  83 
Table 3.20 Exports requiring a licence, 2015  ................................ ................................ ........  84 
Table 3.21 Export support programmes, 2015  ................................ ................................ ...... 87 
Table 3.22 Eximbank overvi ew, credits, loans, and export credit insurance, 2011 -14 .................  88 
Table 3.23 Overview of main changes introduced by Turkey's new Commercial Code, 
enterprise and company law  ................................ ................................ ..............................  90 
Table 3.24 Turkey's business regulatory authorities, 2015  ................................ .....................  91 
Table 3.25 Overview of KOSGEB support for SMEs  ................................ ................................  92 
Table 3.26 Key features of the State Aid Programmes  ................................ ...........................  94 
Table 3.27 Files concluded by the TCA , 2011-14 ................................ ................................ ... 98 
Table 3.28 Conclusion of anti -trust files, 2011 -14 ................................ ................................ . 98 
Table 3.29 Examination of anti -competitive agreements under Article 4, 2011 -14 .....................  99 
Table 3.30 Number of mergers/acquisitions/joint ventures/privatization decisions, 2011 -14 ........  99 
Table 3.31 Results of mergers/acquisitions/joint ventures/privatization notifications, 
2011-14 ................................ ................................ ................................ .........................  99 
Table 3.32 Negative clearance and exemption, 2011 -14 ................................ ........................  99 
Table 3.33 Fines imposed by the TCA, 2011 -14 ................................ ................................ .. 100 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.34 Overview of State -owned enterprises key indicators, 2011 -14 ...............................  101 
Table 3.35 List of majority -owned public enterprises in the Treasur y and Privatization 
Portfolio as of 31 October 2015  ................................ ................................ ........................  102 
Table 3.36 Overview of organizations in the privatization portfolio, 2015, by sector  .................  104 
Table 3.37 Significant privatization implementations, 2011 -30 September 2015  ......................  104 
Table 3.38 Main amendments to Turkey's procurement legislation, 2011 -15 ...........................  106 
Table 3.39 Procurement values, 2010 -14 ................................ ................................ ..........  108 
Table 3.40 Domestic preferences, 2010 -14 ................................ ................................ ........  109 
Table 3.41 Major procurement suppliers, 2010 -14 ................................ ..............................  109 
Table 3.42 Appeals to the Public Procurement Authority, 2010 -14 ................................ .........  110 
Table 3.43 IP statistics, 2011 -14 ................................ ................................ ......................  112 
Table 3.44 Summary of Turkey's protection of intellectual property rights, 2015  .....................  113 
Table 3. 45 Membership in international agreements, conventions and treaties, 2015  ...............  116 
Table 3.46 Applications for customs action to the Turkish Ministry of Customs and Trade 
via the central IPR system , 2011 -14 ................................ ................................ .................  118 
Table 4.1 Major crop production, 2010 -14 ................................ ................................ .........  120 
Table 4.2 Major animal production, 2010 -14 ................................ ................................ ...... 121 
Table 4.3 Exports of agricultural products , 2010-14 ................................ ............................  122 
Table 4.4 Imports of agricultural products , 2010-14 ................................ ............................  123 
Table 4.5 Autonomous tariff -rate quotas, 2011 -15 ................................ ..............................  124 
Table 4.6 Turkey's TRQs, 2015  ................................ ................................ ........................  124 
Table 4.7 Turke y's Agricultural Support Programmes, 2015a ................................ .................  126 
Table 4.8 Main measures of agricultural support, 2011 -14 ................................ ...................  127 
Table 4.9 Overview o f the 2013 -17 Strategic Plan  ................................ ...............................  129 
Table 4.10 Turkey's export subsidies, 2013, 2014, and 2015, as notified to the Committee 
on Subsides and Countervailing Measures  ................................ ................................ .........  130 
Table 4.11 Overview of Laws on Agriculture  ................................ ................................ ....... 131 
Table 4.12 Overview of the livestock sector, 2011 -14 ................................ ..........................  133 
Table 4.13 List of eligible countries for the importation of bovine animals  ...............................  133 
Table 4.14 Livestock support programmes, 2015  ................................ ................................  134 
Table 4.15 Sugar Authority operations, 2010 -15 ................................ ................................ . 137 
Table 4.16 Automotive imports requiring a licence, 2015  ................................ .....................  141 
Table 4.17 Incentives for investment in the automotive sector  ................................ ..............  141 
Table 4.18 Financial sector in the economy, 2009 -14 ................................ ..........................  145 
Table 4 .19 Banking sector - main indicators, 2012 -14 ................................ .........................  146 
Table 4.20 Top 10 banks in Turkey by total assets, 2014  ................................ .....................  147 
Table 4.21 Insuran ce sector - number of companies,  2012-14 ................................ ..............  148 
Table 4.22 Main indicators – Borsa Istanbul  ................................ ................................ ....... 150 
Table 4.23 Institutions in the secu rities market, 2014  ................................ .........................  150 
Table 4.24 Asset Management Companies  ................................ ................................ .........  153 
Table 4.25 Taxation of selected investment instruments in Turk ey ................................ ........  153 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 4.26 Overview of Turkey's health services, 2011 -14 ................................ ...................  154 
Table 4.27 Structure of healthcare sector, 2011 -14 ................................ .............................  156 
Table 4.28 Turkey's main healthcare laws  ................................ ................................ ..........  157 
Table 4.29 Investment incentives for certain healthcare subsectors  ................................ ....... 160 
Table 4.30 Health tourism incentives for companies, 2015  ................................ ...................  160 
Table 4.31 Foreign patients receiving health services in Turkey, 2011 -14 ...............................  161 
Table 4.32 Telecommunications indicators, 2011 -14 ................................ ...........................  162 
Table 4.33 Interconnection tariffs of fixed incumbent operator and mobile network  
operators in net values excluding taxes  ................................ ................................ .............  165 
Table 4.34 Main tourism indicators, 2011 -14 ................................ ................................ ...... 168 
Table 4.35 Overview of Turkey's tou rism strategy  ................................ ...............................  169 
Table 4.36 Tourism investment incentives from the Turkish treasury, 2011 -14 .......................  173 
Table 4.37 Energy support, 201 1-15 ................................ ................................ .................  173 
Table 4.38 Profile of the major large retailers and restructuring in Turkey, 2008  .....................  177 
Table 4.39 Major retailers (numbe r of stores), 2010 -12 ................................ .......................  179 
Table 4.40 Shopping malls (SMs)  ................................ ................................ .....................  179 
 
BOXES  
 
Box 3.1 Government bodies and their  area of activity on TBT matters  ................................ ..... 71 
Box 4.1 Capital Markets Law (No. 6362 of 2012)  ................................ ................................  151 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by product group, 2010 -14 ................................ .................  183 
Table A1.2 Merchandise imports by product group, 2010 -14 ................................ ................  185 
Table A1.3 Merchandise exports by destination, 2010 -14 ................................ .....................  186 
Table A1.4 Merchandise imports by origin, 2010 -14 ................................ ............................  187 
 
Table A2.1 Turkey's Involvement in Dispute Settlement Cases, 1 January 
2012-1 December 2015  ................................ ................................ ................................ .. 188 
Table A2.2 Selected Notifications to the WTO, 9 November 2011 -1 December 2015  .................  190 
Table A2.3 Foreign direct investment restrictions, 2015  ................................ .......................  194 
 
Table A3.1 MFN tariff changes January  2012 to December 2015  ................................ ...........  197 
Table A3.2 New anti -dumping investigations initiated and measures imposed or 
terminated , 2012-15 ................................ ................................ ................................ ...... 199 
Table A3.3 Anti -dumping measures in force, September 2015  ................................ ..............  201 
Table A3 .4 Safeguard investigations initiated and measures imposed or extended , 2012-15 ..... 204 
Table A3.5 Communiqués on Product Safety and Inspection, 2015  ................................ ........  207 
Table A3.6 IPR criminal penalties  ................................ ................................ .....................  209 
Table A3.7 IPR civil remedies  ................................ ................................ ...........................  211 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  SUMMARY  
1. Turkey is an upper -middle -income country and the 17th largest economy in the world;  with a 
GDP of US$799 billion , or US$10,390 per capita , in 2014 . Since 2001, the economy grew ev ery 
year except  in 2009. However, since 2009, growth has fluctuated from 9.2% in 2010 to 2.1% in 
2012. While real GDP growth was 4.2% in 2013, the economy slowed again to 2.9% in 2014, 
reflecting Turkey's vulnerability to capital inflows and contraction in  agricultural output due to 
adverse weather conditions. Furthermore, a high current account deficit , although declining,  has 
left the country exposed to external shocks in an environment of increased currency  and financial 
market volatility  coupled with hi gh inflation  since mid -2013. The recent geopolitical crisis in the 
region and the associated influx of refugees also pose challenges to sustained economic growth.  
2. In expenditure terms, t he main drivers of growth during the review period have been 
domestic consumption and exports ; while in sectoral terms, manufacturing and financial services 
contributed most strongly. In the first half of 2015, industrial production, primarily in the 
automobile sector, consumption, and private investment were the main contri butors to growth, 
while exports contributed negatively.  
3. Trade is an important part of the economy : total trade in goods and services gr ew from the 
equivalent of 48% of GDP in 2010 to 60% in 2014 ; and, since 2010, exports increased by 38% to 
US$157.7 billi on in 2014 (current prices). The majority of Turkey's exports are manufactured 
goods, in particular  textiles and clothing (18.5%), automotive products (11.1%), chemicals (5.8%) 
and iron and steel (6.8%). Exports of agricultural products accounted for 11.7%  of total exports in 
2014. Turkey's merchandise imports reached US$242 billion in 2014; a 30% increase since 2010. 
The majority of Turkey's imports comprise raw materials and intermediate goods which feed into 
the production of higher value -added finished goods for export; the principal items being 
machinery and equipment (27%), mining (15%), chemicals (13.5%), and a broad range of 
consumer goods. Turkey continues to be a net exporter of services due to its significant surplus in 
travel services . 
4. Turkey's t rade policy in terms of preferential trade continues to be influenced by the EU and 
the provisions of its customs union with the EU, as Turkey negotiates and concludes FTAs in 
parallel with the EU. It is noted that many of Turkey's FTA partners are relativ ely small trade 
partners of Turkey. New FTAs concluded and entered into force during the review period were with 
Chile, Jordan, the Republic of Korea, Malaysia, and Mauritius. To date, Turkey's FTAs notified to 
the WTO only cover trade in goods, and not se rvices or investment. However, the FTA with the 
Republic of Korea is broader in scope, as it includes commitments on investment and services, and 
Turkey has started to include deeper commitments and disciplines on TBT, SPS, intellectual 
property, competiti on, dispute settlement, and trade remedies  as part of its FTA negotiations. 
Turkey has aligned its unilateral preference regime with that of the EU as well, and with few 
exceptions, offers GSP, GSP+, and Everything -But-Arms (EBA) arrangements to certain de veloping 
and least developed countries.  
5. Turkey continues to recognize the importance of attracting foreign direct investment through 
its many programmes of incentives, schemes, and free zones. The main framework law for 
investment, the 2003 Foreign Direct Investment Law, continues to provide the main elements for 
investment such as national treatment, transfer of proceeds, etc., and has not undergone 
significant revision. However, there have not been any major changes to investment restrictions 
either and T urkey continues to impose restrictions in the broadcasting, aviation, maritime 
transport, port services, fishing, accounting, financial, mining, real -estate, electricity, and 
education sectors. Although the legal framework has not changed, investment schem es have been 
extended, deepened, and broadened over the period in order to encourage and target certain 
types of FDI in Turkey. They offer nine different types of incentive instruments, often depending 
on the amount of the investment and the investment reg ion. In addition, Turkey's investment 
zones (Technology Development Zones, Organized Industrial Zones, and Free Zones) are designed 
to provide investor -friendly environments with attractive infrastructures for businesses.  
6. In terms of tariff protection, Tur key's overall applied tariff average increased slightly during 
the period to 12.8% due to tariff increases in response to requests by domestic producers. 
Furthermore, Turkey has the scope to increase tariffs further because 50% of its tariff schedule is 
unbound (tariffs are bound for 100% of agricultural tariff lines and 34% of industrial tariff lines), 
and in many cases there is a significant gap between bound and applied rates. Also, there are WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  significant differences in the rates of agricultural versus in dustrial products, as average rates for 
agriculture are 49% and only 5.5% for industrial goods. Tariff protection remains particularly high, 
averaging over 80%, on meat, dairy, sugar and confectionary, and agricultural products.  
7. Developments in the area of  customs since the last review include: a new summary 
pre-arrival declaration  form; development of a Single Window application (which currently includes 
13 institutions); the launch  of a "one -stop-shop" pilot project for terrestrial border posts; and the 
implementation of the Authorized Economic Operator  (AEO) programme as a trade facilitating 
programme for AEO certified companies. As concerns trade facilitation , Turkey notified its Category 
A commitments under the A greement on Trade Facilitation, designat ing all of Section I , Category A 
for full implementation upon entry into force , except for Article 7.9 relating to perishable goods . 
8. Trade remedies continue to be an important policy tool for Turkey, as it is one of the WTO's 
main users of safeguard and ant i-dumping measures. Since 2012, Turkey initiated four safeguard 
investigations and extended safeguard measures eight times. As for anti -dumping measures, 
Turkey ranks among the WTO's top ten users of these measures and activity has been high since 
2012 wit h 25 investigations initiated and 14 measures imposed . There have been some 
amendments to Turkey's safeguard legislation during the review period impacting the investigation 
period.  
9. Turkey continues to apply a number of taxes or other charges on imported a nd domestic 
products that affect consumption. These taxes include VAT, a strip -stamp tax, and a special 
consumption tax (SCT). Tobacco products and alcoholic beverages are particularly affected, being 
subject to both the strip -stamp tax and special consump tion taxes; with raw tobacco also being 
subject to the Tobacco Fund levy. Other products impacted by the special consumption tax include 
petroleum products, motor vehicles, aircraft, vessels, and durable consumer goods. Together, VAT 
and SCT provide over h alf of government revenue.  
10. During the review period, Turkey has continued its efforts to achieve harmonization with the 
EU in respect of aligning its technical legislation and SPS measures with its largest trading partner. 
Following the 2010 adoption of th e main framework law on SPS (the Law on  Veterinary Services, 
Plant Health, Food and Feed ), Turkey has adopted and implemented many of the implementing 
regulations during the review period, thus approximately 100 regulations have been put in place 
as second ary legislation . Regarding TBT matters, Turkey revised its regulations in 2012 to conform 
to the EU in the areas of CE marking, conformity assessment bodies, and notified bodies . 
11. Both imports and exports are subject to a number of border measures in Turkey , including 
outright prohibitions, licensing, controls, and restrictions. Eleven categories of goods are subject to 
import licences and 26 require export licences. On the export side, Turkey adheres to international 
agreements for the prohibition or contro l of strategic goods and has provisions for export quality 
control checks of certain agricultural products.  
12. State -owned enterprises (SOEs) continue to be involved in a number of important sectors of 
the Turkish economy including manufacturing, mining, oil and gas, agriculture, transport, and 
banking. The number of SOEs (36) has not changed significantly since the last review although 
there have been improvements made in terms of transparency and accountability. New provisions 
were put in place during the re view period to require them to establish an internal control system 
and internal audit, and subject them to independent external audit. While Turkey continues with 
its privatization policy, there was an initial slowdown in privatizations during 2011 -12, wh ich 
increased to 15 companies privatized in 2013 -14, mostly in the electricity distribution and power 
generation industries . 
13. Turkey's Public Procurement Law (PPL) was  amended several times  during the review 
period, in particular to increase flexibility of decision -making when evaluating  abnormally low 
tenders. Steps were also taken to move Turkey's public procurement to a fully electronic system . 
Turkey continues to allow the application of national preferences in procurement whereby a price 
advantage of 15 % is offered to domestic suppliers, but a 2014  amendment made it compulsory for 
the procurement of medium - and high -technology industrial products . In 2014, public procurement 
in Turkey accounted for approximately 7% of GDP . Turkey has been an observer to the WTO 
Committee on Government Procurement since June 1996 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  14. There have been some minor changes to the main IP laws and regulations in Turkey since its 
last review, with changes to the copyright law in respect of expropriation of works and fines. 
Turkey's statistics on the use of intellectual property indicate s growth in the use of most forms of 
IP protection during the initial phase of the review period, but many have levelled off or even 
slightly declined at a later stage . In terms of enforcement, the num ber of applications for customs 
action increased significantly during 2011 -14; and for IP judicial processes, the average length of 
court cases diminished over the same period.  
15. Agriculture remains an important part of the Turkish economy, and Turkey is a m ajor world 
producer of agricultural products, ranking 7th in the world. Turkey maintained a trade surplus in 
agricultural products of approximately US$3 billion in 2014. Turkey has not notified its domestic 
support or export subsidy programmes to the WTO C ommittee on Agriculture during the review 
period, but based on other sources of information Turkey has introduced  changes leading to the 
maintenance of relatively high supports, at least in comparison to other OECD countries , and 
payments based on agricult ural output have increased, thus leading to distortions . Turkey 
maintains government enterprises or marketing boards for grains, sugar, meat, and alcohol and 
tobacco products which, depending on the product and board, play a role in Turkey's trade, 
product ion, or pricing of these products.  
16. Over the past three decades, much of Turkey's economic development has been based on 
the country's large and diverse manufacturing base. Turkey's relatively low labour costs, 
well-trained workforce , and strategic location  have helped  build a strong manufacturing sector 
focused on medium - and high -value -added goods. In 2014, the industrial sector accounted for 
17.8% of GDP, 76.7% of total goods exports and 20.5% of employment. Turkey's key industrial 
export sectors are automotives , textiles and  clothing, chemicals, machinery, iron and steel, 
electronics , and jewellery.  Small and medium -sized enterprises (SMEs) constitute a key part of the 
industrial sector in Turkey. Under the Tenth Development Plan, the Input Supply Strateg y, and 
Turkey Vision 2023 the Government has set out multiple objectives for manufacturing, including 
increasing production of intermediate and finished goods in order  to, inter alia , reduce the trade 
deficit.  
17. While agriculture and manufacturing remain imp ortant parts of the Turkish economy, 
services continues to be the dominant and growing contributor to GDP, amounting to 65% of 2014 
GDP. Well developed and important services sectors in Turkey include financial services, tourism, 
and telecommunications. Th e tourism sector was particularly important in terms of trade, 
contributing to the positive services trade balance, in particular due to significant surpluses in 
travel and transport services. The growth of Turkey's tourism sector has outpaced global touri sm 
growth and Turkey ranked 6th in the world in terms of international tourist arrivals and 12th in 
terms of tourism receipts in 2014.  
18. The contribution  of financial and insurance activities to GDP has increased steadily since 
2010 (in nominal terms) but it  has actually declined as a percentage of GDP, from 4.5% of GDP in 
2009, to 3.0% in 2014. In 2012, a new Capital Markets Law entered into force which transformed 
the legal and institutional framework of Turkey's capital markets. In 2013 , Borsa Istanbul was  
established as a joint -stock company and merged the three existing exchanges, the Istanbul Stock 
Exchange, Istanbul Gold Exchange and Futures and Options Exchange . In the area of banking, on 
1 January 2014 new regulations came into force applying the Base l III accord . 
19. Turkey's healthcare system has undergone many changes in recent years which has 
improved its healthcare system, developed a private insurance market, and led to a growing 
health tourism sector. Turkey's healthcare expenditures reached TL 94.8 billion in 2014, or 
approximately 5.4% of GDP . Turkey's health tourism sector had significant gr owth during the 
period 2011 -14, as  the total number of foreign patients increased by over 200% while the number 
of patients in private healthcare establishment s more than tripled . A number of incentives are 
offered to the health tourism sector to encourage its growth such as tax deductions, and 
reimbursement of costs related to marketing and advertising, and participation in fairs and 
conferences. Turkey has mad e amendments to some laws during the review period, in particular to 
the Healthcare Public -Private Partnerships (PPP) legislation to encourage investment in private 
healthcare and  provide an alternative to public services usually provided by the State . 
20. Distribution services are important to the Turkish economy with wholesale and retail trade 
contributing 12% to GDP in 2014 . Retail sales volume growth was highest in 2011 at 8.3% but WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  slowed in subsequent years, reaching 1.3% in 2014; nevertheless total retail  sales recorded  
US$282 billion the same year. Turkey is considered the 7th largest retail market in Europe. Turkey 
has not undertaken any GATS commitments in distribution services.  Foreign distributors are 
present but the supermarket segment is largely dom inated by local shops, or bakkals  (small shops 
of less than 50  m2). 
21. Despite a difficult external environment with low growth in the EU and conflict in the Middle 
East region, Turkey's economy and trade continued to grow over the 201 1-2015 period. Growth 
has been based on relatively low labour costs, good infrastructure, and proximity to the EU, its 
main trading partner. However, continued growth faces several challenges including the continuing 
conflict in Syria which may affect tourism and erosion of prefe rential margins into the EU, as well 
as the persistent current account deficit and relatively high inflation. Further growth depends on 
investment and Turkey has  a comprehensive system of incentives, but their complexity, along with 
restrictions in some se ctors, may reduce their effectiveness. Furthermore, government 
programmes in some sectors – particularly agriculture – distort trade and production while the low 
level of tariff bindings for non -agricultural goods and high applied tariffs for agricultural goods 
create uncertainty for those trading partners not covered by trade agreements.  
 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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 1  ECONOMIC ENVIRONMENT  
1.1  Recent Economic Developments  
1.1.  Turkey is an upper -middle -income country and the 17th largest economy in the world;  with a 
GDP of TL 1,747 billion (US $799 billion or US$10,390 per capita) in 2014 .1 Since 2001, the 
economy grew every year with the exception of 2009. However, since 2009, growth has fluctuated 
from 9.2% in 2010 to 2.1% in 2012. While real GDP growth reached 4.2% in 2013, the economy 
slowed  again to 2.9% in 2014, reflecting Turkey's vulnerability to capital inflows  and contraction in 
agricultural output due to adverse weather conditions . Furthermore, a declining  but still high  
current account deficit has left the country  exposed to external shocks in an environment of 
increased currency  and financial market volatility since mid -2013. The recent geopolitical crisis in 
the region and the associated influx of refugees also pose challenges to sustained growth for 
Turkey's economy.  
1.2.  In expenditure terms, the main drivers of growth during the review period have been 
domestic consumption and exports while in sectoral terms, manufacturing and financial ser vices 
contributed most strongly  (Table 1. 1). In the first half of 2015, industrial production, pri marily in 
the automobile sector, consumption, and private investment were the main contributors to growth, 
while exports contributed negatively.2 Trade has remained an important part of the economy with 
total trade in goods and services growing from the eq uivalent of 48% of GDP in 2010 to 60% in 
2014.  
Table 1.1 Selected macroeconomic indicators, 2010 -15 
 2010  2011  2012  2013  2014  2014 
(Jan-
June)  2015 
(Jan-
June)  
GDP at current prices (TL billion)  1,099  1,298  1,417 1,567  1,747  839 926 
GDP at current prices (US$ billion)  731 774 786 823 799 387 361 
Real GDP (percentage change)  9.2 8.8 2.1 4.2 2.9 3.7 3.1 
Nominal GDP per capitaa 10,003  10,428  10,459  10,822  10,390  10,419  10,043  
Population (million)  73.7 74.7 75.6 76.7 77.7 77.2b .. 
Unemployment rate  11.1 9.1 8.4 9.0 10.0 9.4 10.2 
Inflation (CPI percentage change)  8.6 6.5 8.9 7.5 8.9 8.7 7.6 
National accounts         
% of GDP at current prices         
   Private consumption  71.7 71.2 70.2 70.8 68.9 68.9 69.8 
   Government consumption  14.3 13.9 14.8 15.1 15.3 14.8 15.1 
   Gross fixed capital formation  18.9 21.8 20.3 20.3 20.1 21.2 21.7 
   Change in stocks  0.6 1.7 -0.1 0.3 0.1 0.0 -2.1 
   Exports of goods and services  21.2 24.0 26.3 25.6 27.7 27.9 27.1 
   Imports of goods and services  26.8 32.6 31.5 32.2 32.2 32.7 31.5 
Percentage change at constant 1998 prices         
   Private consumption  6.7 7.7 -0.5 5.1 1.4 1.5 5.1 
   Government consumption  2.0 4.7 6.1 6.5 4.7 5.8 4.9 
   Gross fixed capital formation  30.5 18.0 -2.7 4.4 -1.3 -1.9 5.0 
   Exports of goods and services  3.4 7.9 16.3 -0.2 6.8 8.4 -1.6 
   Imports of goods and services  20.7 10.7 -0.4 9.0 -0.2 -1.8 2.7 
Public financec        
Primary balance (% of GDP)  0.9 1.9 1.1 1.2 0.3 0.6d 0.9d 
Overall b alance (% of GDP)  -2.8 -0.8 -1.7 -1.4 -2.0 -0.6d  0.0d 
General government gross debt (EU definition)  42.3 39.1 36.2 36.1 33.5 35.2 33.7 
Non-financial public sector net debt  36.8 33.4 30.4 30.0 28.4 11.2 8.5 
                                               
1 The World Bank, "Turkey", online information. Viewed at: 
http://w ww.worldbank.org/en/country/turkey/overview . 
2 CBRT (2015), Financial Stability Report, May.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   2010  2011  2012  2013  2014  2014 
(Jan-
June)  2015 
(Jan-
June)  
External sector         
TL/US$ (annual average ) 1.5 1.7 1.8 1.9 2.2 2.2 2.6 
Real effective exchange rate (CPI basis, percentage 
change: ( -) depreciation)e 9.4 -11.7 2.8 -1.5 -4.6 -9.9 3.0 
Current account (% of GDP)f -6.2 -9.7 -6.2 -7.9 -5.8 -6.3 -6.2 
Exports of goods and services XGS (% of GDP)f 21.5 23.7 26.1 25.3 27.5 27.6 27.0 
Imports of goods and services MGS (% of GDP)f 26.9 32.6 31.6 32.3 32.3 32.8 31.6 
Total reserves (includes gold, current US$ billion)g 86.0 88.3 119.2  131.0  127.3  132.6  119.9  
Total reserves in months of imports  4.9 4.0 5.5 5.6 5.6 6.2 5.9 
Gross external debt (US$ million)  39.9 39.2 43.0 47.3 50.4 50.3 52.5 
Inward FDI stock (% of GDP)g 25.8 17.7 24.2 18.2 22.3 42.5 45.0 
Outward FDI stock (% of GDP)g 3.1 3.6 3.9 4.0 5.0 9.2 11.6 
.. Not available.  
a Data are provisional f or 2014 (Jan -June) and 2015 (Jan -June).  
b Mid-year (1 July 2014) population size, calculated using  the results of the Address Based Population 
Registration System.  
c Projection for 2014 figures.  
d Preliminary data, provided by the authorities.  
e Depreciati on (-) and appreciation (+). As of September 2015 figures.  
f Provisional for 2014 figures. As of August 2015 figures.  
g As of August 2015.  
Source:  The Central Bank of the Republic of Turkey (CBRT) online information. Viewed at: 
http://www.tcmb.gov.tr ; Turkish Statistical Institute (Turkstat) online information. Viewed at: 
http://www.turkstat.gov.tr/Start.do ; Undersecretariat of Treasury. Viewed at: 
http://www.trea sury.gov.tr/en -US/MainPag ; IMF (2014) , Turkey – Staff Report for the 2014 
Article  IV Consultation , IMF Country Report No. 14/329; IMF online information, "International 
Financial Statistics ". Viewed at: http://elibrary -data.imf.org/DataExplorer.aspx; and World Bank's 
World Development Indicator database. Viewed at: 
http://databank.worldbank.org/data/views/variableselection/sele ctvariables.aspx?source=world -
development -indicators . 
1.3.  In terms of sectoral contributions to GDP, the share of manufacturing has remained fairly 
constant since 2010, at about 18%, while agriculture has continued to decline. Services sectors 
combined contri buted about 65% – mostly from transport, storage, wholesale and retail trade, and 
real estate activities (Charts 1.1 and 1.2).  
Chart 1.1 Distribution of GDP by industry group at current basic prices, 2014  
Agriculture, forestry and 
fishing, 8.0%Mining and quarrying, 1.6%Manufacturing, 17.8%Electricity, gas, water, 2.6%Construction, 5.1%
13.5%
13.4%
11.0%
4.8%
4.2%
3.8%
3.4%
10.8%Services, 64.9%
The Central Bank of the Republic of Turkey  (CBRT) online information.  Viewed at: http://www.tcmb.gov.tr. Source:Refers to electricity, gas,  steam and air conditioning supply; and water supply, sewerage,  waste management and 
remediation activities.aTransportation and storageWholesale and retail trade
Real estate activities
Public administration and 
defence; compulsory social 
security
Education
Professional scientific and 
technical activities
Financial and insurance 
activities
OtherChart 1.[Turkey] Distribution of GDP by industry group at current basic prices, 2014 
a
 
a Refers to electricity, gas, steam and air conditioning supply; and water supply, sewerage, waste 
management and remediation activities.  
Source:  The Central Bank of the Republic of Turkey (CBRT) online information. Viewed at: 
http://www.tcmb.gov.tr . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Chart 1.2 Distribution of GDP by industry group at current basic prices, 2010 -14 
9.59.08.88.38.0
17.418.217.417.317.8
4.75.04.95.05.1
12.213.413.313.613.5
12.413.113.513.513.4
12.911.611.311.211.0
4.74.54.84.84.8
3.83.73.94.04.2
3.33.23.43.53.8
4.13.53.73.83.4
10.810.410.510.710.8
0% 20% 40% 60% 80% 100%20102011201220132014Agriculture, forestry and fishing
Mining and quarrying
Manufacturing
Electricity, gas, water
Construction
Wholesale and retail trade
Transportation and storage
Real estate activities
Public administration and defence;
compulsory social security
Education
Professional scientific and technical
activities
Financial and insurance activities
Other servicesServicesChart 1.[Turkey] Distribution of GDP by industry group at current basic prices, 2010 -2014 
The Central Bank of the Republic of Turkey  (CBRT) online information.  Viewed at: http://www.tcmb.gov.tr. Source:Refers to electricity, gas,  steam and air conditioning supply; and water supply, sewerage,  waste management and remediation activi ties.aa
 
a Refers to electricity, gas, steam and air conditioning supply; and water supply, sewerage, w aste 
management and remediation activities.  
Source:  The Central Bank of the Republic of Turkey (CBRT) online information. Viewed at: 
http://www.tcmb.gov.tr . 
1.4.  The annual average inflation rate in Turkey, as measured by the Consumer Price Index (CPI), 
remains high, at 8.9% in 2014 compared to the Government's target of 5% and the Central Bank's 
one week repo rate of 7.5% and the average cost of Central Bank funding of 8.1%. Inflation 
trended upwards in 2014 due to the eff ects of the depreciation of the Turkish lira (TL) since 
May 2013 as well as a surge in food prices, in particular for meat and other basic commodities 
because of a negative supply shock amid drought and unfavorable weather conditions. However, 
the plunge i n international oil prices in late 2014 contributed to a decrease in inflation, which 
nevertheless remained above both the target rate and the average cost of CBRT funding  for the 
first half of 2015.3 To reduce the inflationary pressure due to high food pr ices, the Food and 
Agricultural Product Markets Monitoring and Evaluation Committee  was established.4 
1.5.  Turkey's unemployment rate fluctuated during the review period but remained relatively 
high, close to 10%, although it had reached a low of 8.4% in 2012. As half of Turkey's population 
is under the age of 29, the labour market needs to absorb 1 m illion new entrants every year.  
1.6.  According to the IMF, Turkish banks are well capitalized, with a n average loan-to-deposit 
ratio of 114% in 2014. Bank assets have gr own over the review period, and were equivalent to 
114% of Turkey's GDP; and the ratio of non -performing loans to total lending stood at 2.8% at 
end-Q2 2014. However, according to the authorities, one of the biggest risks in the banking sector 
is the rollo ver risk associated with increases in financing costs. The IMF noted that, in October 
2014, Turkey was removed from the Financial Action Task Force's list of countries with strategic 
deficiencies in their anti -money laundering and combatting the financing of terrorism frameworks. 
This followed measures taken to criminalize terrorist financing and establishment of procedures to 
identify, freeze, and confiscate terrorist assets.5 
1.7.  According to the World Bank's Doing Business Report 2016, Turkey is ranked 55th out of 
189 economies for ease of doing business, down from 51st place in 2015. While Turkey's overall 
ranking improved since 2013 at 71st place, there are some areas where Turkish businesses 
                                               
3 CBRT (2014), Annual Report, p. 33.  
4 CBRT (2015), Inflation Report 2015 -IV, p. 6.  
5 IMF (2014), Turkey – Staff Report for the 2014 Article IV Consultation, 3 No vember, pp. 19 and 23.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  continue to face serious constraints: starting a business, Turkey  ranked 94th in 2016 (down from 
88th in 2015) and resolving insolvency, Turkey ranked 124th in 2016 (down from 102 in 2015).6 
1.8.  Based on Turkey's long term vision for 2023, Turkey aims to be one of the top ten economies 
in the world, with a GDP of around US$ 2 trillion; a GDP per capita of US$25,000; and exports of 
US$500 billion. In order to achieve these objectives, Turkey has developed several short - and 
medium - term plans. According to its Tenth Development Plan (2013 -2018)7 and Medium -Term 
Programme  (2016 -2018), the Government has set objectives to maintain economic growth; 
increase competitiveness; increase employment; ensure regional development; improve public 
finances and reduce the current account deficit ( section 2.2).  
1.2  Balance of Payments  
1.9.  The most si gnificant obstacle to the long -term health of Turkey's economy is the persistent 
current account deficit which reached 9.7 % of GDP in 2011, ( Chart 1. 3). The current account 
deficit is fueled by a large foreign trade deficit arising from imports of intermed iate goods coupled 
with high dependence on energy products8 (section 1. 5) (Table 1.2) . 
1.10.  Although the current account deficit deteriorated in 2013 due to the exceptionally high level 
of gold imports, the current account deficit excluding gold has continued t o recover gradually. The 
deficit decreased by nearly 30% in 2014, from US$65.0 billion in 2013 to US$46.5  billion, primarily 
due to: lower oil prices, which drove down the cost of energy imports; a depreciating lira, which 
drove up Turkish exports; and mac ro prudential measures that were implemented in order to curb 
excessive credit growth. In 2014 -15, 90% of the current account deficit was financed by long -term 
instruments and foreign direct investment (FDI). In the first nine months of 2015, the current 
account deficit continued to decline, driven primarily by an increase in gold exports and recovery 
in the energy balance, both of which helped improve the foreign trade balance.9 
Chart 1.3 Turkey's current acco unt, 2000 -14 
(US$ billion)  
-100-80-60-40-2002040
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Current account Merchandise trade balance Balance on services
Balance on primary income Secondary incomeChart 1.[BoP CA] Turkey's curent account, 2000 -14
US$ billion
The Central Bank of the Republic of Turkey  (CBRT) online information.  Viewed at: http://www.tcmb.gov.tr. Source:Provisional data for 2014. Note: 
 
Note:  Provisional data for 2014.  
Source:  The Central Bank of the Republic of Tu rkey (CBRT) online information.  Viewed at: 
http://www.tcmb.gov.tr . 
                                               
6 The World Bank (2016), Doing Business Report . Viewed at: 
http://www.doingbusiness.org/data/e xploreeconomies/turkey/~/media/giawb/doing%20business/documents/p
rofiles/country/TUR.pdf . 
7 The Tenth Development Plan. Viewed at: 
http://www.mod.gov.tr/Lists/DevelopmentPlans/Attachments/5/The%20Tenth%20Development%20Plan%20(
2014-2018).pdf . 
8 Energy imports constitute almost  one quarter of total imports . 
9 CBRT (2015), Balance of Payments Report  2015-I. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 1.2 Balance of payments, 2010 -15 
(US$ million)  
 2010  2011  2012  2013  2014a 2014 
(Jan. -
Sep.)  2015 
(Jan. -
Sep.)  
Current account  -45,312  -75,008  -48,535  -64,658  -46,525  -31,517  -25,561  
  Goods  -56,325  -89,160  -65,367  -79,907  -63,584  -45,485  -37,19 8 
      Exports  120,992  142,392  161,948  161,789  168,926  127,166  113,825  
      Imports  177,317  231,552  227,315  241,696  232,510  172,651  151,023  
      of which:           
       General merchandise (net)  -55,965  -84,480  -71,172  -68,334  -59,881  -44,648  -41,159 
       Non-monetary gold (net)  -453 -4,778  5,709  -11,779  -3,896  -1,005  3,900  
  Services  16,594  20,120  22,427  22,844  25,164  20,112  19,022  
   Credit  36,192  40,851  43,224  46,615  50,374  38,926  36,182  
   Debit  19,598  20,731  20,797  23,771  25,210  18,814  17,160  
  Primary income  -7,212  -7,855  -7,163  -8,986  -9,212  -6,961  -8,107  
    Credit  4,478  3,952  5,034  4,524  4,263  3,245  3,116  
    Debit  11,690  11,807  12,197  13,510  13,475  10,206  11,223  
    Compensation of employees  -123 -163 -215 -288 -882 -656 -774 
     Credit  45 42 40 42 36 27 27 
     Debit  168 205 255 330 918 683 801 
     Investment income  -7,089  -7,692  -6,948  -8,698  -8,330  -6,305  -7,333  
       Credit  4,433  3,910  4,994  4,482  4,227  3,218  3,089  
        Debit  11,522  11,602  11,942  13,180  12,557  9,523  10,422  
  Secondary income  1,631  1,887  1,568  1,391  1,107  817 722 
    General government  563 794 558 643 175 84 94 
    Other sectors  1,068  1,093  1,010  748 932 733 628 
    of which:           
      Workers' remittances  948 1,045  975 877 838 680 551 
Capital account  -51 -25 -58 -96 -70 -67 -6 
Financial account  -45,131  -66,025  -48,247  -61,958  -43,191  -22,718  -12,124  
  Direct investment  -7,617  -13,806  -9,177  -8,830  -5,702  -5,097  -8,719  
  Portfolio investment  -16,083  -22,204  -41,012  -23,986  -20,104  -13,736  11,624  
  Other investment  -34,240  -28,202  -18,872  -39,053  -16,917  -6,790  -11,254  
   Reserve assets  12,809  -1,813  20,814  9,911  -468 2,905  -3,775  
Net errors and omissions  232 9,008  346 2,796  3,404  8,866  13,443  
a Provisional.  
Note:  As of August 2015 data . 
Source:  The Central Bank of the Republic of Turkey (CBRT) online information. Viewed at:  
http://www.tcmb.gov.tr . 
1.11.  In the period ahead, even though the weakening external demand is expected to limit 
export growth, the  low international energy prices and the favorable developments in the terms of 
trade, alongside the continuing cautious monetary policy stance will contribute to the improvement 
in the current account. Thus, the decline in the current account deficit is p roject ed to continue in 
2015 as well.  
1.12.  The services account is the second most important determinant of the current account 
balance after foreign trade. Balance -of-payments data indicate that Turkey is mostly a net 
exporter of services, with a surplus that has been consistently growing since 2010 and reached 
US$25 billion in 2014. The balance of travel services represents the bulk of receipts accounting for 
97% of total net services exports.  
1.13.  Workers remittances, once an important source of foreign exchange f or Turkey, at about 
US$5 billion annually in the 1990s, has continued to steadily decline, reaching US$838 million in 
2014.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 19 - 
 
  1.14.  As a priority, the Government is trying to tackle the current account deficit by improving 
access to inputs for domestic production and increasing its exports. Under the coordination of the 
Ministry of Economy, Turkey's Input Supply Strategy (GITES) and its Action Plan (2013 -15), which 
were officially established in 2012 aim to secure sustainable and more efficient access to the 
inputs  that the manufacturing industry needs for production and therefore overcome some 
structural deficiencies in Turkish industrial production and introduce a long -term input supply.10 In 
addition, programmes to reduce dependence on energy imports are included in the Tenth 
Development Plan. On the exports side, Turkey is trying to diversify its export markets and 
products by focusing on producing and promoting innovative and higher value -added products. 
According to its Export Strategy of Turkey for 2023, Turkey  plans to have a share of 1.5% of world 
exports with an average increase of 12% of exports annually ( section 2.2).  
1.3  Fiscal Policy  
1.15.  Turkey's fiscal policy aims to support economic stability, increase domestic savings, lower 
the current account deficit, curb i nflation and boost the country's economic growth potential.11 The 
overall fiscal position continued to improve during the review period, although public spending 
increased considerably in particular for education, health and pensions. The public sector prim ary 
balance remained in surplus during 2010 -14 and the overall balance, although in deficit, was kept 
below 2% of GDP in the same period. As a consequence, net public sector debt, which stood at 
28.9% of GDP in 2010, fell to 10.7% in 2014.  
1.16.  During the perio d under review, public sector borrowing has been controlled to support the 
downward trend in the public debt stock -to-GDP ratio by implementing a fiscal policy consistent 
with monetary and incomes policies. With the effect of increased confidence in the ma rkets, 
interest rates declined, debt maturities were extended and the ratio of public interest expenditures 
to GDP decreased. General government balance -to-GDP, excluding privatization revenues and 
interest expenditures, turned into a surplus of 2.2% on av erage in 2007-12. According to its 
2016-18 Medium -Term Programme, Turkey plans to continue to tighten its fiscal stance by curbing 
the public sector borrowing requirement and primary expenditures while preserving its positive 
public finances.12 
1.17.  Turkey conti nues to depend largely on debt -generating foreign capital inflows to make up 
for low domestic savings and to finance its current account deficit. High levels of foreign debt, 
particularly private -sector debt, puts pressure on the Turkish economy and leaves  individual 
companies vulnerable to tighter global liquidity conditions and exchange -rate volatility. In 2014, 
the need for foreign borrowing was limited by subdued economic activity and a reduced current  
account deficit. Nevertheless, gross external debt rose to 50.4% of GDP in 2014 from 47.3% at 
the end of 2013, reflecting the impact of a weaker lira on nominal GDP in U .S. dollar terms. 
According to the authorities, the current account deficit is expected to decline in 2015 due to lower 
energy costs and l ower domestic demand.  
1.18.  Despite relatively strong fiscal indicators, the structural deficit remains large, at about 3% 
of GDP in 2014. Non -discretionary central government primary spending remains about two -thirds 
of total expenditure. Between 2006 and 2013,  central government primary spending has grown by 
5.4% of GDP, more than the 3% of GDP decline in interest spending. Over this period, large 
revenues, mainly taxes on consumption and imports , have kept the budget balance from 
deteriorating. However, accord ing to the IMF, this masks a widening structural deficit, as 
consumption and imports will have to decline when the economy rebalances towards exports and 
investment. This could limit fiscal policy space in a downturn, even with debt below 36% of GDP.13 
                                               
10 According to the authoriti es, in order to reduce the current account deficit permanently, in particular 
by lessening the dependency of energy imports, priority transformation programmes have been prepared 
under the Tenth Development Plan such as "Reducing Dependence on Imports" and  "Energy Generation Based 
on Local Resources". Detailed action plans have also been determined and application studies are ongoing. 
Official Gazette  No. 28508 , published on 25 December 2012.  
11 Ministry of Development (2015), Medium -Term Programme (2016 -18), p. 17. Viewed at:  
http://www.kalkinma.gov.tr/Pages/content.aspx?List=28363ffa -6f2c-4400-86bc-
ca5decdb5161&ID=12&Source=http%3A%2F%2Fwww%2Ekalkinma%2Egov%2Etr%2FPages%2FOrtaVadeliPro
gramlar%2Easpx&ContentTypeId=0x0100F586C93FC4CA2749A016DD998B6133D2 . 
12 Ministry of  Development (2015), Medium -Term Programme (2016 -2018).  
13 IMF (2014), Turkey – Staff Report for the 2014 Article IV Consultation , 3 November, p. 12.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  1.4  Mone tary and Exchange Rate Policy  
1.19.  In order to contain the macro financial risks emerging from global imbalances, in 2010 the 
Central Bank of the Republic of Turkey (CBRT) changed its conventional monetary policy based on 
an inflation -targeting framework which had been successful in driving down annual consumer price 
inflation since 2001, to a multiple objective approach which uses a variety of policy instruments to 
monitor monetary policy and achieve price and financial stability. These instruments include 
inter alia short-term money market rates, reserve requirement ratios, the Reserve Option 
Mechanism (ROM) and the interest rate corridor.14 
1.20.  The record of the CBRT's multiple objective framework has been mixed. During periods of 
benign external conditions it help ed reduce exchange rate, capital flow and credit growth volatility. 
However, it has not delivered low and stable inflation. The IMF has recommended that the CBRT 
continue to tighten monetary policy and to increase the policy interest rate to reach a positi ve real 
level, which should be sustained to bring both inflation and expectations to target.15 
1.21.  Due to domestic and global developments that affected risk perceptions at the end of 2013, 
the TL depreciated significantly and risk premiums increased. In order to contain the repercussions 
of these developments on inflation and macroeconomic stability, in January 2014 the CBRT sharply 
tightened the monetary stance and streamlined its operating framework. The CBRT decided to 
provide liquidity primarily from the on e-week repo rate instead of the marginal funding rate and 
raised the one -week repo rate from 4.5% to 10%. Then, owing to an improvement in global 
liquidity conditions coupled with a decrease in risk premiums, the CBRT introduced measured rate 
cuts and main tained the yield curve almost flat by sustaining its cautious monetary policy. The 
policy interest rates were reduced by a total of 175 basis points in May -July 2014, to 8.25%, and 
by 75 basis points in January -February 2015, to 7.5%.16 
1.22.  Since 2001, the CBRT  has been implementing a floating exchange rate regime. The foreign 
exchange rate is determined by supply and demand conditions in the market. The CBRT does not 
have a nominal or real exchange rate target under this regime. Nonetheless, to curb the risks t o 
financial stability, the CBRT may respond to excessive appreciation or depreciation of the Turkish 
lira. Some of the instruments used are direct net FX purchases, export rediscount credits and 
ROM.17 
1.23.  With a view to limiting the effects of cumulative excha nge rate movements recorded since 
early 2015 and volatilities in energy and food prices on inflation, the CBRT maintained a tight 
monetary policy stance.18 
1.5  Trade Performance  
1.24.  Turkey's economy is largely dependent on international trade; with a trade (goods a nd 
services) -to-GDP ratio of 58.2% on average over the period (2012 -2014). In 2014, Turkey ranked 
21st among world merchandis e exporters (considering the EU member States as one and excluding 
intra-EU trade) and 15th among importers. In services trade, Tur key ranked 16th among exporters 
                                               
14 The interest rate corridor , which is delineated by overnight borrowing and lending rates, gives the 
CBRT flexibility to vary the cost of funding to the banking sector on a daily basis, allowing it to react quickly to 
capital inflows.  The ROM which was introduced in 2011 allows banks to meet their lira reserve requirements 
with foreign exchange ( up to 60%) or gold (up to 30%).  Through the ROM, banks built up their foreign 
exchange liquidity buffers and accumulated around US$50 billion. However, since the reserves accumulated 
through the ROM are not under the full control of the CBRT, the CBRT had to conduct for eign exchange selling 
auctions to stem depreciation pressures since banks did not release much foreign exchange from the ROM 
amid rising costs of domestic funding during the financial market turmoil in May 2013.  OECD (2014), Turkey 
Economic Surveys.  
15 IMF (2014).  
16 CBRT (2014), Report on Monetary and Exchange Rate Policy for 2015.  
17 In January 2014, the CBRT directly intervened in the foreign exchange markets by selling FX.  The FX 
deposits that the banks can borrow from the CBRT within their borrowing limit s at the FX and Banknotes 
Markets was gradually lowered since October 2014 and the borrowing limits at these markets were raised by 
130% to US$50 billion as of 1 September 2015. FX deposit rates currently stand at 2.75 % for the U .S. dollar  
and 1.25% for th e euro.  
18 The Turkish lira has depreciated sharply against the U .S. dollar since mid -January 2015, falling to 
TL 2.50:US$1 during the day on 10 February, compared with TL  2.32:US$1 at end -December 2014 and 
TL 2.10:US$1 at end -July 2014.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 21 - 
 
  and 23rd among importers.19 In 2013, Turkey ranked 46th out of 138 countries in the Enabling 
Trade Index 2014.20 
1.25.  Turkey's trade balance has not been in surplus since 2001, and the deficit continued to rise 
over the review peri od: in 2014 the deficit was the equivalent of 8% of GDP. However, under the 
balance of payments definition, the deficit for trade in goods decreased by nearly 30%, from 
US$79.9 billion in 2013 to US$63.6 billion in 2014 primarily due to lower oil prices wh ich drove 
down the cost of energy imports and a depreciating lira which has made Turkish exports more 
competitive (Tables 1.1 and 1.2).  
1.26.  Turkey's merchandise trade is sensitive to movements in foreign exchange rates. Due to 
imports of fuels and energy produ cts, and trade with Asian countries, Turkey's imports are mainly 
denominated in U .S. dollars. On the other hand, exports of manufactures to traditional markets, 
primarily in Europe, result in nearly 50% of Turkey's exports being settled in euros.  
1.27.  Since 201 0, exports increased by 38% to US$157.7 billion in 2014 (current prices). The 
majority of Turkey's exports are manufactured goods, in particular textiles and clothing (18.5%), 
automotive products (11.1%), chemicals (5.8%) and iron and steel (6.8%) (Table A 1.1). Exports 
of agricultural products accounted for  11.7% of total exports in 2014  (Chart.1 .4). 
1.28.  Turkey's merchandise imports reached US$242 billion in 2014; representing a 30% increase 
since 2010. The majority of Turkey's imports comprise raw materials an d intermediate goods 
which feed into the production of higher value -added finished goods for export; the principal items 
being machinery and transpor t equipment (27.2%), mining (15 .2%), chemicals (13.5%), and a 
broad range of consumer goods (Table A 1.2). In 2012, Turkish intermediate goods represented 
61.3% of total imports and 51% of total exports with the majority being industrial supplies 
(primary and processed) and parts and accessories.21 
1.29.  Turkey continues to be a net exporter of services due to its sign ificant surplus in travel 
services, particularly with the EU, which reached US$24.4 billion in 2014; a 41% increase since 
2010. Receipts from travel services were lower in the first nine months of 2015 (US$21.1 billion) 
than the same period in 2014 (US$23 billion). Despite an increase in the overall number of tourists  
visiting Turkey, the average spending per visitor decreased due to the rapid depreciation of the 
euro against the dollar, thereby causing total travel revenues to remain flat in the first half  of 2015 
compared to the same period last year.22 
1.30.  Other important services sectors with net exports are transport (US$4.1 billion) and 
construction (US$1 billion). Turkey continues to be a net importer of financial services; insurance 
and pension services; and other business services (Table 1.3) . 
1.31.  The EU continues to be Turkey's largest trading partner, accounting for an average of 44% 
of total exports and an average of 37.5% of total imports since 2010. Within the EU, Germany 
continues to dominate with an al most 10% share of total EU trade followed by the 
United  Kingdom, Italy, France and Spain. As a result of the eurozone crisis and the effect of the 
exchange rate depreciation of the euro against the dollar, the EU's overall share of Turkey's trade 
has slow ly declined during the review period; prompting Turkey to diversify its export markets. 
However, in 2015, this trend is reversing as  EU economies gradually recover  (Chart 1.5).  
1.32.  Since 2010, Turkish exports have progressively increased to the Middle East, th e Americas 
and CIS countries. In the Middle East, Iraq's share alone represents 7% of total Turkish exports in 
2014, followed by the United Arab Emirates and Iran. While the overall share of Turkish exports to 
the Middle East grew since the last review, es pecially in 2012 (25.3%), the unrest and instability in 
                                               
19 WTO (2015) , Trade Profiles, Turkey.  
20 According to the World Economic Forum's (WEF) Enabling Trade Index 2014, Turkey's environment 
for exporters and importers is characterized by good transport infrastructure (26th), in particular for air 
transport, well -developed logist ics services (36th) and easy access to domestic markets (34th). Some of the 
challenges remain in access to target markets  (80th), which remains more restricted than for most other 
economies , and in greater  use of ICTs  (76th), which could be achieved by put ting more public services online.  
21 The World Economic Forum (2014), "The Global Enabling Trade Report ", Turkey,  p. 302. 
22 CBRT (2015), Balance of Payments Report 2015 -I, p. 3.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 22 - 
 
  the region has led to a decline in exports for 2014 -15. Exports to the United States have increased 
from a shar e of 3.3% in 2010 to 4% in 2014  (Table A1.3).  
Table 1.3 Trade in services, 2010 -14 
(US$ million)  
  2010  2011  2012  2013  2014  
Services  16,594  20,120  22,427  22,844  25,164  
  Credit  36,192  40,851  43,224  46,615  50,374  
  Debit  19,598  20,731  20,797  23,771  25,210  
  Manufacturing services on physical in puts 
  owned by others  0 63 60 97 72 
       Credit  0 88 99 142 132 
       Debit  0 25 39 45 60 
  Maintenance and repair services n.i.e.  0 -86 -136 -197 -254 
       Credit  0 37 51 41 38 
       Debit  0 123 187 238 292 
  Transport  1,340  2,401  3,698  3,309  4,134  
       Credit  9,418  11,030  12,639  13,177  14,322  
       Debit  8,078  8,629  8,941  9,868  10,188  
       Freight  -2,450  -2,709  -2,413  -3,162  -2,740  
            Credit  3,400  3,414  3,894  3,777  4,044  
            Debit  5,850  6,123  6,307  6,939  6,784  
       Other  3,790  5,110  6,111  6,471  6,874  
            Credit  6,018  7,616  8,745  9,400  10,278  
            Debit  2,228  2,506  2,634  2,929  3,404  
  Travel  17,391  20,171  21,251  23,180  24,480  
       Credit  22,585  25,054  25,345  27,997  29,552  
       Debit  5,194  4,883 4,094  4,817  5,072  
  Construction  859 838 1,029  675 1,084  
       Credit  859 838 1,029  675 1,084  
       Debit  0 0 0 0 0 
  Insurance and pension services  -541 -472 -428 -718 -521 
       Credit  721 832 863 1,000  1,167  
       Debit  1,262  1,304  1,291  1,718 1,688  
  Financial services  -234 -690 -642 -555 -1,079  
       Credit  490 531 534 779 824 
       Debit  724 1,221  1,176  1,334  1,903  
  Other business services  -1,428  -1,529  -1,724  -2,158  -2,017  
       Credit  245 198 260 396 344 
       Debit  1,673  1,727 1,984  2,554  2,361  
  Government goods and services n.i.e.  -869 -1,059  -965 -888 -1,498  
       Credit  483 505 752 798 826 
       Debit  1,352  1,564  1,717  1,686  2,324  
  Other services  76 483 284 99 763 
       Credit  1,391  1,738  1,652  1,610  2,085  
       Debit  1,315  1,255  1,368  1,511  1,322  
Source:  The Central Bank of the Republic of Turkey (CBRT) online information. Viewed at: 
http://www.tcmb.gov.tr . 
1.33.  During the review period, imports increased from Asia for cheape r raw materials and textiles 
and clothing, in particular from China. Imports from China accounted for 10.3% of total imports to 
Turkey in 2014. From the EU, Turkey imports primarily automotive parts and accessories; textiles 
and clothing; and chemicals. Tu rkey is a large importer from the Russian Federation, primarily of 
oil and gas, which accounted for 58.4% of Turkey 's total energy imports in 2014  (Table A1.4).  
1.34.  On a bilateral basis, in 2014, Turkey had a deficit with the EU (US$20.4 billion), China 
(US$22 .1 billion), the Russian Federation (US$19.3 billion) and the United States (US$6.4 billion); 
but recorded a surplus with the United A rab Emirates (US$1.4 billion).  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 23 - 
 
  Chart 1.4 Composition of merchandise trade, 2010 and 2014  
Chart 1.[Prd]
Composition of merchandise trade, 2010 and 2014
2010 2014
(a)    Exports  (f.o.b.)
Other consumer 
goods
5.9%
Manufactures
77.6%Other consumer 
goods
8.1%
Chemicals
5.8%
Other semi -
manufactures
10.4%Transport 
equipment
13.7%Textiles
7.9%Iron and 
steel
6.8%
Non-electrical 
machinery
5.8%Clothing
10.6%
Electrical 
machinery
7.5%
Total:  US$114.0 billion Total:  US$157.7 billion  
(b)    Imports (c.i.f.)
Chemicals
13.5%Transport 
equipment  
11.6%
Manufactures
62.5%Textiles and 
clothing
5.1%
Electrical 
machines
8.5%Other mining
8.0%Mining
22.4%
Iron and steel
5.2%
Non-electrical 
machinery
9.0%Fuels
14.4%
Chemicals
13.5%Other mining
6.9%
Iron and 
steel
4.7%Fuels
8.3%
Mining
15.2%Agriculture
7.5%
Non-electrical 
machinery
9.2%Transport 
equipment  
9.8%Textiles and 
clothing
4.3%
Electrical 
machines
8.2%Other
17.7%
Other 
consumer 
goods
5.0%
Other semi -
manufactures
5.0%Agriculture
6.9%
Manufactures
59.7%
Total:   US$185.5 billion Total:  US$242.2 billion Manufactures
76.7%
Other
8.2%Mining
8.2%
Chemicals
5.4%Mining
7.8%Agriculture
11.7%
Source:  WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).Other 
consumer goods
4.7%Other semi -
manufactures
10.4%
Other semi -
manufactures
5.0%Transport 
equipment
14.5%Other
3.3%Other
3.8%
Textiles
7.9%Agriculture
10.9%
Iron and steel
9.0%
Non-electrical 
machinery
5.3%Clothing
11.2%
Electrical 
machinery
8.1%
 
Source:  WTO Secretariat calculations based on UNSD, comtrade database (SITC Rev.3).  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 24 - 
 
  Chart 1.5 Direction of merchandise trade, 2010 and 2014  
Chart 1.[Reg]
Direction of merchandise trade, 2010 and 2014
2010 2014
(a)    Exports (f.o.b.)
Asia  
5.8%Asia  
5.0%Americas
6.4%
Other Europe
3.6%Africa 8.5%Europe
47.1%Middle
East
19.7% Iraq
6.9% EU-28
43.6%
CIS
10.8%Other 
Middle East 
12.8%
Total:  US$114.0 billion Total:  US$157.7 billion
(b)    Imports (c.i.f.)
Europe  
41.4%
EU (28)
39.1%Middle East 
8.0%
Russian
Federation
11.6%Americas 
9.1%
Other Europe
2.3%China
9.3%Other Asia
8.6%
Other CIS
5.0%CIS
16.6%Korea, Rep. of 
2.6%Other 
1.0%
Europe  
39.3%
EU (28)
36.7%
Other Europe
2.6%Russian
Federation
10.4%Other CIS
3.3%CIS
13.8%
Africa
2.4%Middle East 
8.2%Americas 
7.8%
China
10.3%Other Asia
8.9%
Korea, Rep. of 
3.1%Other 
6.2%
Asia
22.3%
Total:   US$185.5 billion Total:   US$242.2 billionAmericas
5.3%
Other Europe
3.3%
Source:  Asia
20.4%Africa 8.2%
Africa
3.5%Other    
2.4%
Europe
50.8%Middle
East
18.4%Other 
1.8%
Iraq
5.3%EU-28
47.5%
CIS
9.7%
WTO Secretariat calculations, based on UNSD, Comtrade database.Other 
Middle East 
13.1%
 
Source:  WTO Secretariat calculations, based on UNSD , Comtrade database.  
1.6  Foreign Direct Investment  
1.35.  Overall, Turkey remains a large FDI recipient, with a share of 1% of global investment  
inflows; reaching US$1 2.7 billion  in 2014 . Turkey has attracted more than US$144.5 billion in FDI 
inflows in the last 10 y ears (2005 -14), more than ten times that of the previous ten years . 
However, since 2011, FDI inflows have been declining, which according to the authorities is a 
reflection of a lower appetite in global FDI in recent years as well as a decline  in direct in vestment 
inflows from the EU due to the latter's debt and economic crisis.23 However, i n the 
January -September period of 2015, FDI inflows have rea ched US$12.6 billion which is roughly 
                                               
23 CBRT  (2015), Balance of Payments Report 2015 -I, p. 4. WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 25 - 
 
  equal to the entire 2014 level of FDI. In 2014, outward FDI from Turkey jumped by 94% to 
US$7  billion, driven mainly by equity outflows which rose by 59% to US$4.9 billion.24 
1.36.  In U.S. dollar terms, the stock of F DI in Turkey has fallen by US$18  billion between 2010 
and 2014, from US$18 1.2 billion in 2010 to US$1 63.2 billion in 2 014, while the stock of direct 
investment abroad by Turkish residents has risen by US$16 billion from US$24 billion in 2010 to 
US$39.9 billion in 2014. Between 2010 and 2014, the share of European residents in the stock of 
FDI increased from 78.1% to 79.1% . The rest of FDI stock mostly belonged to residents from 
North America and the Middle East.  
1.37.  Historically, the finance and insurance, manufacturing and informatics sectors attracted the 
most FDI. In 2014, the top three recipient sectors were manufacturing  (US$2.89 billion),  
accounting for 33% of total FDI flows to Turkey; finance and insurance  (US$1.54 billion ); and 
wholesale and retail trade  (US$1. 17 billion). From 2013 to 2014, total FDI inflows rose by 31.1% 
in manufacturing and by 20.9%  in wholesale and  retail trade ; investments fell by 55% in finance 
and insurance. Within the manufacturing  sector , computers and electronic devices , and food, 
beverages and tobacco product s were the leading sub sectors in 2014  (Chart 1.6).  
Chart 1.6 Foreign Direct Investment, 2010 -14 
(US$ billion)  
024681012141618
020406080100120140160180200
2010 2011 2012 2013 2014
FDI inward stock FDI outward stock FDI inflows FDI outflowsChart 1.[Turkey] Foreign direct investment, 2010 -14
(In US$ billion)
Stock Flows
UNCTAD (2015), World Investment Report, Geneva; UNCTAD, UNCTAD STAT.  Viewed at: 
http://unctad.org/en/Pages/Statistics.aspx; and The Central Bank of the Republic of Turkey  (CBRT) online 
information.  Viewed at: http://www.tcmb.gov.tr.Source:
 
Source:  UNCTAD (2015), World Investment Report, Geneva; UNCTAD, UNCTAD STAT. Viewed at: 
http://unctad.org/en/Pages/Statistic s.aspx ; and The Central Bank of th e Republic of Turkey (CBRT) 
online information. Viewed at: http://www.tcmb.gov.tr . 
1.38.  About 60% of companies with international capital operate in Istanbul , where most Turkish 
companie s are based . Nearly all i nvestment projects of foreign companies are in the Marmara 
region (which includes Istanbul), the Aegean region, the Mediterranean coast area and the area 
around Ankara. In 2014, European countries accounted for almost 74% of FDI in flows to Turkey, 
followed by Asia at 2 2%. The Netherlands,  the United  Kingdom, Azerbaijan, the Russian Federation 
and Germany are the countries with the highest  FDI flows to Turkey in 201 4. The United States 
accounted for 3.7% of FDI inflows to the country .25 Turkey has become an important investor in 
the Central Asian region. In Azerbaijan, Turkish investors held the largest FDI stock, around 
US$1.9 billion in 2014; they are the third largest group of developing -country investors in Central 
Asia as a whole.  
                                               
24 UNCTAD (2015), World  Investment Report , Geneva . 
25 Turkey International Investors Association (YASED) (2014), Annual Report. Viewed at: 
http://www.yased.org.tr/webportal/Turkish/Yayinlar/Documents/yased -2014-faaliyet -raporu.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  1.39.  Turkey has several investment incentives and schemes to promote foreign investment. 
There are five principal i ncentive schemes with nine different incentive instruments, some 
restricted to certain regions in Turkey. In 2015, the G overnment introduced new investment 
incentives for companies which include d, inter alia, additional tax breaks, more insurance premium 
supports, reduced input costs for industrial imports , and guarantees for business loans  
(section  2.4.4). However, a  number of investment restricti ons for foreigners remain, varying by 
sector, size and type of investment ( section 2.4.3) . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2  TRADE AND INVESTMENT  REGIME  
2.1  General Framework  
2.1.  Turkey's Government, as a parliamentary democratic republic, has shared powers among the 
legislature, executive, and j udiciary. Pursuant to its third Constitution adopted in 1982, the 
executive powers are vested in the President and Prime Minister and Council of Ministers, the 
legislature is comprised of the Turkish Grand National Assembly (TGNA), and the judiciary is 
independent of the State. Laws are introduced, adopted, amended or appealed by the TGNA, which 
also has certain authority over the Council of Ministers so as to allow them to issue government 
decrees. On the executive side, the Council of Ministers has an imp ortant role in the formulation 
and implementation of internal and foreign policies of the State. The Constitution also recognizes 
basic human rights; various freedoms such as speech  and movement; and that all individuals are 
treated equally before the law.  
2.2.  During the review period, no major developments have occurred in Turkey's overall 
framework except for changes to the judiciary and at the local level. In 2014, the number of 
municipalities in Turkey was reduced by more than half, from 2,947 to 1,396 as m any 
municipalities were merged into district municipalities, thus greatly reducing the number of mayors 
and councillors. Also in 2014, a new law was passed to reform the judiciary by giving greater 
powers to the Minister of Justice over the Supreme Board o f Judges and Prosecutors.1 However, 
later in 2014, some of these reforms were overturned by the Constitutional Court.  
2.3.  Trade policy and trade -related laws are the responsibility of a variety of ministries, although 
since 2011 it is the Ministry of Economy t hat has the responsibility for foreign trade. Other 
government ministries or agencies such as those for: finance; food, agriculture, and livestock; 
customs;  and health have responsibilities in their respective areas. There have no t been any 
significant cha nges to most of the legislation relating to WTO matters during  the review period 
(Table 2.1).  
Table 2.1 Main trade -related laws and legislation in Turkey, December 2015  
Law Subject  Reference  
Law on Customs Ta riff Import regime and customs 
duties  Law No. 474  
Customs Law  Customs  Law No. 4458 of December 1999  
Export Regime Decree  Export regime  Decree No. 7623 of 
22 December  1995 
Export Regulation  Export regulation  Official Gazette  No. 26190 of 
6 June 2006  
Inward Processing Regime Decree  Inward processing regime  Communiqué No. 2006 -12, 
Official Gazette  No. 26382 of 
20 December 2006  
Export Controls of Prohibitions of 
Certain Chemicals  Export controls of certain 
chemicals  Communiqué No. 2002/12 and the 
communiqu és amending it; 
Communiqué No. 2010/8; 
Communiqué No. 2011/2; 
Communiqué No. 2012/1;  
Export Control of Dual -use and 
Sensitive Articles  Export controls  Communiqué No. 2003/12  
Foreign Direct Investment Law  Investment  Law No. 4875 of 5 June 2003  
The Law Re lating to the Preparation 
and Implementation of the Technical 
Legislation on Products  TBT Law No. 4703 of 11 July 2001  
Law on Veterinary Services, Plant 
Health, Food and Feed  SPS Law No. 5996 of 13 June 2010  
Decree on Safeguard Measures for 
Imports  Safeg uards  Decree No. 2004/7305  
Decree on the Prevention of Unfair 
Competition on Imports  Trade remedies  Decree No. 13482/1999  
Protection of Patent Rights Decree  Intellectual property  Law No. 551 of 1995  
                                               
1 Judicial Reform Act, 2014.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Law Subject  Reference  
Law on Intellectual and Artistic Works  Copyright  Law N o. 5846  of 1951  
The Act on the Protection of 
Competition  Competition  Law No. 4054 of 1994  
Turkish Commercial Code  Business  Law No. 6102 of 2011  
Foreign Trade Regulations Law  Foreign trade  Law No. 2976 of 1984  
Law on Regulation of Electronic 
Commerce  E-commerce  Law No. 6563 of 2014  
Source:  Compiled by the WTO Secretariat from various sources and information provided by the authorities.  
2.4.  Regarding public -private sector consultation processes, Turkey receives input from NGOs and  
other interested stakeholde rs through communications to the ministries . However there is no 
overarching legal framework prescribing how the Government and private sector should consult. 
Turkey 's WTO Coordination Council is used as a mechanism to inte ract with  the private sector. The  
Council was established in 2002, soon after the initiation of the Doha Development Round, and its 
structure has been revised following government restructuring in 2011. The Council basically 
evaluates the stage of negotiations and serves as a platform to bolster public -private partnerships.  
2.5.  The Coordination Council for the Improvement of the Investment Environment (YO IKK) is one 
of the well -known public -private dialogue platforms that prioritize the needs of the private sector 
regarding investment regulati ons. Five private sector representative NGOs have been actively 
participating in the agenda -setting, solution and policy formation processes of the YOIKK Platform 
through ten technical committees.2 As another example, the Assessment Board of the Inward 
Processing Regime consists of members from the Union of Chambers and Commodity Exchanges of 
Turkey, Turkish Exporters Assembly, and several ministries. Depending on the agenda of the board 
meetings, other governmental agencies and NGOs may be invited to expre ss their opinions. Also, 
the Energy Market Regulatory Authority receives input from relevant market players and NGOs 
active in the energy market on the secondary legislation that is being proposed.  
2.2  Trade Policy Objectives  
2.6.  Turkey's foreign trade policy has been shaped by many instruments for many years including 
the multilateral agreements of the WTO, bilateral and regional initiatives, and the customs union 
with the European Union. During the review period, Turkey has pursued numerous initiatives in all 
these areas including concluding new trade agreements, supporting WTO TFA negotiations, and 
aligning and adhering to more EU rules and regulations.  
2.7.  Turkey's economic and development policies, including trade objectives, are guided by its 
five- or seven -year D evelopment Plans which were developed by the Ministry of Development or 
the State Planning Organization, and approved by the TGNA. During the review period, these 
policies were guided by the Ninth (2007 -13) and Tenth (2014 -18) Development Plans respectivel y. 
A Medium -Term Programme (2011 -13), as established by a decree of the Undersecretariat of 
State Planning Organization also provided guidance on trade policy, as did the Turkish Industrial 
Strategy Document 2015 -2018 which set out a number of objectives a nd plans for manufacturing 
and services generally, and for a number of specific economic sectors.  
2.8.  The Ninth Development Plan focused on five development axes – increasing competitiveness, 
increasing employment, strengthening human development and social s olidarity, ensuring regional 
development, and increasing quality and effectiveness in public services. Under several of these 
axes, Turkey set priorities or supported many initiatives or programmes that were related to trade 
or trade policy, such as ensuri ng a shift to high -value -added production in industry and services. 
Turkey also put an emphasis on developing the necessary infrastructure to help the business and 
trade sectors.  
2.9.  Turkey's Tenth Development Plan continued to build on many of the priorities of the Ninth 
Plan with the long -term goals of improving the global position of Turkey, enhancing the welfare of 
its citizens, and moving Turkey into a higher position in global value chains.3 To achieve its targets 
                                               
2 Council of Minist er's Decision No. 2014/3. Detailed information is available on  the website of the 
YOIKK Platform: http://www.yoikk.gov.tr/ . 
3 The Tenth Development Plan, 2014 -18, online information. Viewed at: http://www.mod.gov.tr /Lists/ 
RecentPublications/Attachments/75/The%20Tenth%20Development%20Plan%20(2014 -2018).pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  and objectives, the Tenth Development Pla n identified 25 priority programmes on which to focus 
its work; several of these priority areas have links with trade policy. The Programme for Reducing 
Import Dependency aims to reduce the foreign trade deficit by supporting domestic production and 
educat ing consumers about domestic goods. Pursuant to the Domestic -Resource -Based Energy 
Production Programme, Turkey will increase the share of domestic resources in primary energy 
production in order to alleviate Turkey's high import dependency on energy produ cts. Further, to 
increase energy security, Turkey intends to increase electricity generation from domestic coal 
production. The Renewable Energy Sources (RES) Law No. 5346 provides purchasing guarantees 
to electricity produced from certain renewable resour ces at differentiated prices for a period of 
10 years.  
2.10.  More specific trade -related policies implemented during the period include the Turkish 
Exports Strategy for 2023 and Input Supply Strategy.  
2.11.  The preparatory work for Turkey 's Input Supply Strategy (G ITES) and its Action Plan 
(2013 -2015) commenced in 2010 but was offic ially established in 2012 by  publication in the 
Official  Gazette .4 The Strategy addresses Turkey 's import dependence on intermediate goods used 
in Turkish production and its subsequent impac t on the current account deficit. It has been 
coordinated by a formal body, namely, the Ministry of Economy's Export Oriented Production 
Strategy Assessment Committee.5 The members of the Committee were re -organized in 2011.6 
2.12.  The GITES 2013 -15 Action Plan establishes 37 goals and 91 concrete actions.7 Some 
examples of the goals include: reducing import dependence by encouraging investment in 
high-technology intermediate goods, promoting the use of domestic inputs, developing strategic 
approaches in public p rocurement, providing greater access to global supply chains for 
intermediate goods, and developing a recycling industry.  
2.13.  Through representatives in the relevant bodies/institutions, activities carried out in the 
previous three months and activities planne d for the upcoming three months are reported to the 
Ministry of Economy during the three -year period of the Action Plan. Regular as well as 
spontaneous meetings are held for coordination. The Input Supply Strategy has led to various 
policy results, includi ng: 
- the introduction of "strategic investments " in the investment incentive scheme8; 
- the removal of obligatory marker requirements  for imported reference test fuels used in R&D 
and testing in the automotive industry9; 
- the removal of the disadvantage in val ue added tax for pharmaceutical inputs compared  to 
the final pharmaceutical products10; 
- the formation and establishment of the National Recycling Strategy11; 
- a change in the Regulation on the General Implementation of Value Added Tax (VAT) 
regarding the proc edure for VAT redemption12; 
- an addition to the Regulation for Turkish Investments Abroad in High Tech Firms with a 
strategic perspective for the supply of inputs13; 
- a product -based project, in which specific firms are contacted to attract FDI in Turkey;  
- the initiation of the work facilitatin g investments by fast track mechanisms under the 
umbrella of  YOIKK . 
                                               
4 Official Gazette  No. 28508 of 25 December 2012.  
5 Official Gazette  No. 27579  of 12 May 2012 . 
6 Official Gazette  No. 28046  of 6 September 2011 . 
7 High Planning C ouncil, No. 2012/32, 21 December 2012. Viewed at: http://www.resmigazete. 
gov.tr/eskiler/2012/12/20121225 -28-1.pdf. 
8 Official Gazette  No. 28328  of 19 June 2012.  
9 Official Gazette  No. 27937 of 17 May 2011. 
10 Council of Ministers Decision No. 2012/2931.  
11 Official Gazette  No. 29221  of 30 December 2014.  
12 Official Gazette  No. 28983  of 26 April 2014. 
13 Official Gazette  No. 29239  of 17 January 2015.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2.14.  The Turkish Exports Strategy for 2023 was developed by the Ministry of Economy and 
Turkish Exporters Assembly (TIM) in 2012 to increase exports to a targe t level of US$500 billion 
by 2023; this ambitious goal would mean that Turkish exports should increase 12% per year.14 As 
a long -term strategy, both production and export components are envisioned whereby Turkey will 
establish a production plan towards impr oving export performance.  
2.15.  Moving production from low -technology to high -value and high -technology products , and 
export diversification are also part of the strategy. The specific goals or actions being undertaken 
as part of the plan include : carrying out projects on R&D and the development of international 
competitiveness in order to increase sectoral export capacity; increasing the number of nationals 
participating in international fairs; implementing sectoral and country -based diversification 
strategies in export composition; focusing trade activities on target markets; enhancing the export 
capacity of SMEs; increasing the number of global Turkish brands in the world; making Istanbul an 
international fashion, fair and trade centre; providing crucial input s for exports; creating sectoral 
clusters for gaining competitiveness in international markets; improving the logistic facilities of 
Turkey; and developing new export finance tools.15 
2.3  Trade Agreements and Arrangements  
2.16.  Turkey's imports face a variety of pref erential tariff treatment based on its trade 
agreements and arrangements. The most important trade regime in terms of the amount  of trade 
is its customs union16 with the EU which accounted for 36% of 2014 imports. Further, 50% of 
import trade took place und er WTO MFN, with 32.9% MFN duty -free.17 A relatively small amount 
enters pursuant to Turkey's other free trade agreements, 5.5%, and a slightly larger amount, 
8.3%, pursuant to unilateral preferences (i.e. GSP, GSP+, and EBA) (Chart 2.1).  
Chart 2.1 Imports by type of import regime, 2014  
EU Customs Union
36.3%
Reciprocal trade 
agreements
5.5%
Unilateral preferences
8.3%
MFN duty free
32.9%MFN dutiable
17.1%Chart 2. [Turkey] Imports by type of import regime, 2014
WTO Secretariat estimates, based on data provided by the authorities and International Trade Centre Trade Map 
database.Source:"Reciprocal trade agreements" cover trade benefitting from an RTA ; and "MFN duty -free" covers all
trade entering at MFN duty -free rates (based on 2015 tariff schedule). aa
b
Unilateral preferences covering GSP, GSP+, and GSP for LDCs. b
EU Customs Union 's figures are  based on sum of  agricultural  goods and industrial goods, cac
 
 
a "Reciprocal trade agreements" cover trade benefiting from an RTA; and "MFN duty -free" covers all 
trade entering at MFN duty -free rates (based on 2015 tariff schedule).  
b Unilateral preferences covering GSP, GSP+, and GSP for LDCs.  
c EU Customs Union's figures are based on sum of agricultural goods and industrial goods.  
Source:  WTO Secretariat estimates, based on data provided by the authorities and International Trade 
Centre Trade Map database.  
                                               
14 High Planning Council, 13 June 2012.  
15 Ministry of Economy online information. Viewed at: 
http://www.economy.gov.tr/portal/content/conn/UCM/path/Contribution%20Folders/web_en/Home/strategy20
23.pdf . 
16 Including associated agreements, i.e. ECSC and agriculture.  
17 Reflects applied tariffs; only a small per cent of Turkey's WTO bindings are bound at zero.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2.3.1   Participation in the WTO  
2.17.  Turkey, as a contracting party to the GATT since 1951, has been a WTO Member since 1996 
and participates in many aspects of the WTO's work. According to the authorities , Turkey  has been 
committed to the WTO work  and negotiations and fully supports liberalization at the multilateral 
level as part of its trade policy. Duri ng the review period, Turkey  made proposals under t he Doha 
negotiations, participated in WTO disputes, and has been involved in the regular work and 
Committees of the WTO. Furthermore, Turkey is a participant in the Information Technology 
Agreement (ITA) and is an observer to the Government Procurement Agreement (GPA) and 
Agreement on Trade in Civil Aircraft.  
2.18.  In terms of the Doha negotiations, Turk ey has made four proposals during the review 
period, with three communications concentrated in the area of trade facilitation and one on 
intellectual property.18 Furthermore, Turkey has submitted statements at the Ministerial 
Conferences during the review p eriod that have been supportive of the Doha Round in which 
Turkey wanted to re -examine ways to deliver on subjects that were most mature and to foster 
breakthroughs in the Round. Turkey emphasized the importance of integrating into global markets 
and stood  ready to engage seriously in the process.19 
2.19.  In the area of dispute settlement, Turkey has been active during the review period mainly 
as a third party to disputes. Turkey did not file any complaints, but was a respondent to one 
dispute on safeguards, and w as a third party in 24 disputes (Table A2.1).  
2.20.  Turkey has a mixed compliance with its WTO notification obligations. Most notifications 
during the review period pertained to safeguard measures and other trade remedies (Table A2.2). 
However, notifications in some areas are still pending, including those in the area of agriculture.  
2.3.2   Regional and preferential agreements  
2.3.2.1   Customs Union with the EU  
2.21.  Turkey' s preferential trading relationship with the EU dates from 1963 when the parties 
agreed to establish a framework  for the free movement of goods, services, labour, and capital. 
This relationship was deepened in 1973 with the Additional Protocol and in 1996 with the 
conclusion of the Customs Union.20 Thus, customs duties, quantitative restrictions, and similar 
measures  have been removed on industrial goods since 1996. It also contains provisions for the 
Common Customs Tariff, trade remedies, rules of origin, standards, customs matters, intellectual 
property, and competition.  
2.22.  Within the context of association relations b etween Turkey and the EU, the goods which fell 
under the auspices of the European Coal and Steel Community (ESCS) are not covered by the 
Ankara Agreement (1963) and the Customs Union (1996). Hence, preferential trade in coal and 
steel products has been gov erned by a separate FTA between Turkey and the ECSC which came 
into effect in 1996. However, as a legal entity the ECSC was terminated in 2002 and all the rights 
and obligations related to ECSC, including the aforementioned FTA, were taken over by the EU a s 
the successor. Under this agreement all coal and steel trade between Turkey and the EU is 
duty-free.21 It also contains provisions on rules of origin, trade remedies, dispute settlement, 
quantitative restrictions, and competition which pertain to trade in  these products between the 
parties.  
2.23.  Basic agricultural products are also excluded except for those that have been subsequently 
negotiated in bilateral framework agreements. Preferential treatment in basic agricultural products 
trade between Turkey and the  EU is governed by Decision No. 1/98 of the Turkey -EU Association 
Council, whose Annexes (Protocols 1 and 2) were amended by Decision No. 2/2006 of the 
                                               
18 WTO documents TN/C/W/60, 19 April 2011; TN/TF/W/176, 7 November 2011; TN/TF/W/178, 
24 May 2012; and TN/TF/W/179, 4 June 2012.  
19 WTO documents W T/MIN(11)/ST/86, 15 December 2011; and WT/MIN(13)/ST/121, 
17 February  2014.  
20 EU-Turkey Association Agreement, Association Council Decision No. 1/95.  
21 The Agreement covers 4 tariff lines of coal products in HS chapter 26, most of HS chapter 72, and 
7 tariff lines of HS chapter 73.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Turkey -EU Association Council . For preferential trade of processed agricultural products, which are 
protected in the Community with ad valorem  (for industrial components) and specific duties (for 
agricultural components), Turkey and the EU have abolished the ad valorem  part foreseen for 
industrial processing towards each other in the context of the Customs U nion, whereby they 
maintain their own duties for the agricultural component. In addition, with the Turkey -EU 
Association Council Decision No. 1/2007, the Parties have granted reciprocal concessions in certain 
processed agricultural products in the form of MFN duty exemption of the agricultural component 
within tariff quotas. Even though the Association Agreement and the Additional Protocol introduced 
the aim of free circulation of services, so far there have been no decisions or agreements 
concluded between  the parties, thus the area of services is not within the scope of the 
Customs  Union.  
2.24.  The EU remains Turkey's most important trading partner, with 44% of 2014 Turkish exports 
destined to EU markets, and the EU accounting for 37% of Turkish imports. The maj ority of 
Turkish imports with preferential access from the EU are industrial products with a relatively small 
amount of agricultural goods, i.e. US$86.5 billion versus US$1.7 billion  in 2014. While nearly all 
industrial imports have preferential access, th e opposite is true for agriculture, with approximately 
59% of 2014  agricultural trade covered. (Table 2.2)  
2.25.  In 2014, the World Bank conducted an evaluation of the EU -Turkey Customs Union in which 
it found there were positive economic and trade benefits for  both parties. The report highlighted 
that trade integration between the two parties has increased over the last two decades and 
provided greater benefits than a free trade agreement. But a changing global economy had shown 
the weaknesses in the customs un ion and the report recommend ed reforms in certain areas. In 
particular, the World Bank suggested widening the customs union to cover agriculture and 
services; reforms to address issues with road transport permits and the use of trade defence 
instruments by  both parties; a functioning dispute settlement mechanism; alignment of trade 
agreements with third parties; and reducing the restrictiveness of EU visas for business 
travellers.22 
2.26.  Since 1999, further integration steps have been taken as Turkey became a can didate 
country for accession to the EU. As a candidate country, Turkey carried out reforms and the 
European Council of 2004 confirmed that Turkey fulfilled the prerequisites for opening accession 
negotiations. Accordingly, the Turkey -EU Intergovernmental C onference met for the first time in 
October 2005 whereby the accession process was officially initiated. Turkey 's EU accession process 
is being conducted in 35 chapters in the context of the Negotiation Framework, and as of 
December 2015, 14 chapters were open and one chapter was t emporarily closed; a further 
14 chapters were blocked due to other reasons.  
Table 2.2 Turkey's preferential trade with the EU , 2011 -14 
(US$ million)  
 2011  2012  2013  2014  
Agricultural  goodsa 
Preferential agricultural imports  1,580  1,774  1,744  1,701  
Agricultural imports  3,425  3,003  2,913  2,885  
% benefitting from the preferences  46.2 59.1 59.9 59.0 
Industrial goodsb 
Preferential industrial imports  87,802  84,819  89,672  86,126  
Indust rial imports  87,802  84,819  89,672  86,126  
% benefitting from the preferences  100 100 100 100 
a The EU' s classification for agricultural products (basic and processed agricultural products) is used.  
b Industrial goods covered by the EU -Turkey Customs Union  and the European Coal and Steel 
Community (ECSC) products covered by the ECSC -Turkey Free Trade Agreement.  
Source:  Information provided by the authorities.  
                                               
22 "Evaluation of the EU -Turkey Customs Union", World Bank, 28 March 2014. Viewed at: 
http://www.worldbank.org/content/d am/Worldbank/document/eca/turkey/tr -eu-customs -union -eng.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2.3.2.2   Reciprocal trade agreements  
2.27.  Turkey has a long history of negotiating free trade agreements since it s first FTA was 
negotiated with EFTA members in 1991. Since that time, Turkey has gradually negotiated other 
FTAs with a number of other countries or regions, but mostly with neighbouring European or 
Middle Eastern countries (Table 2.3). Since 2011, five n ew FTAs have entered into force with Chile, 
Jordan, the Republic of Korea, Malaysia, and Mauritius (Table 2.4).  
2.28.  There are currently 18 FTAs in force for Turkey, with a combined value of US$13.3 billion of 
2014 imports benefitting from these agreements, th us approximately 5.5% of Turkey' s total 
imports. Many of Turkey's FTA partners are relatively small trade partners except for perhaps EFTA 
and the Republic of Korea, which still only accounted for 2% and 3% of total Turkish imports in 
2014. Thus, of Turkey' s top 10 sources of imports for 2014 (excluding the EU), only the Republic 
of Korea and Switzerland (through EFTA) had an FTA with Turkey. Turkey maintains a positive 
trade balance with most FTA partners, and a trade deficit with only four, however, the la rge trade 
deficit with the Republic of Korea contributes significantly to an overall trade deficit with FTA 
partners. The percentage of imports entering through the FTAs varies widely, from 2.8% 
(Montenegro)  to 99.5% (Jordan) (Table 2.3).  
2.29.  As a result of th e Turkey -EU Customs Union, Turkey's policy on FTAs emanates from this 
legal basis as it is to align its commercial policy, including preferential agreements with third 
countries, with EU commercial policy. As such, Turkey negotiates and concludes FTAs in p arallel 
with the EU. To date, Turkey's FTAs , as notified to the WTO , only cover trade in goods, and not 
services and investment. This reflects Turkey's early policy on FTAs as reflected in EU and other 
FTAs at the time, which focused on trade in goods. Mos t of Turkey's FTAs therefore typically cover 
WTO subjects like GATS, investment, intellectual property, procurement, and competition by 
reference to WTO Agreements and do not contain any additional parameters or further market 
access.  
2.30.  Changes in EU policy  as well as world trends for deeper, fuller, and more ambitious 
commitments in FTAs has had an impact on Turkey's FTA policy. Recently, with the concluded 
Republic of Korea FTA23, Turkey embarked on a new pathway for FTAs and has started to include 
commitme nts on investment and services, as well as deeper commitments and disciplines on TBT, 
SPS, intellectual property, competition, dispute settlement, and trade remedies, reflecting WTO 
plus commitments. Other FTAs in the pipeline also reflect this trend and w ill start to include these 
subjects as well. Furthermore, Turkey has initiated procedures to include services and investment, 
as well as some other subject matters, in concluded FTAs with Albania, Bosnia -Herzegovina, EFTA, 
and the Former  Yugoslav Republic of Macedonia.  
2.31.  During the review period, the FTA with Syria was suspended in 2011 when the Turkish 
Government took a decision to suspend it following the ongoing political situation in Syria. The 
Agreement was operational since its entry into force on 1 Jan uary 2007 until 14 December 2011.  
2.32.  Turkey continues to have an ambitious agenda on FTAs with a number of FTAs completed or 
under negotiation. As of December 2015, Turkey had completed FTA negotiations with th e 
Faroe  Islands, Ghana, Kosovo, Lebanon, Republic  of Moldova, and Singapore. The ratification 
process was underway with all of these except Ghana and Singapore. There are a further twelve 
partners with which FTA negotiations are underway: Cameroon, Colombia, Democratic Republic of 
the Congo, Ecuador, Gul f Cooperation Council, Japan, Libya24, Mercosur, Mexico, Peru, Seychelles, 
and Ukraine. Turkey has also taken steps to commence negotiations with other ACP countries, 
Algeria, Canada, Central American countries, India, Indonesia,  South Africa, Thailand, 
United States, and Viet Nam.  
                                               
23 Turkey has only notified the agreement pertaining to goods with the Republic of Korea to the WTO 
Committee on RTAs. The recently concluded agreements on services and investment from 26 Februa ry 2015 
are pending ratification.  
24 In 2014, negotiations with Libya were stopped due to the ongoing situation in the country.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 2.3 Overview of Turkey's FTAs, December 2015  
FTA partner  Entry into force  FTA 
imports 
2014  Total 
imports 
2014  % FTA 
imports  Total 
exports 
2014  Trade 
Balance  
Albania  1 May 2008  85.0 96.3 92.3 318.7  222.4  
Bosnia -
Herzegovina  1 July 2003  142.0  171.4  85.2 322.4  151.0  
Chile 1 March 2011  87.2 363.3  24.6 198.6  -164.7  
EFTA 1 April 1992  2,597.5  5,848.2  45.2 3,795.6  -2,052.4  
Egypt  1 May 2007  1,030.2  1,490.0  70.9 3,300.9  1,811.3  
Georgi a 1 November 2008  192.0  232.6  83.8 1,444.3  1,211.7  
Israel  1 May 1997  2,676.2  2,881.2  93.3 2,950.3  69.0 
Jordan  1 March 2011  125.1  126.1  99.5 907.4  781.3  
Rep. of Korea  1 May 2013  5,950.1  7,548.3  80.4 470.7  -7,077.6  
TFYR of 
Macedonia  1 September  2000 65.4 79.2 84.2 348.2  269.0  
Malaysia  1 August 2015  n.a. 1,161  n.a. 315.0  -846.0  
Mauritius  1 June 2013  7.8 7.9 98.7 37.8 29.9 
Montenegro  1 March 2010  0.2 7.4 2.8 34.9 27.6 
Morocco  1 January 2006  122.4  639.8  22.1 1,406.8  767.0  
Palestine  1 June 2005  2.4 2.5 96.0 91.0 88.5 
Serbia  1 September 2010  172.9  273.9  65.3 782.6  508.7  
Syriaa 1 January 2007  n.a. 115.2  n.a. 1,802.6  1,687.4  
Tunisia  1 July 2005  136.3  196.7  70.5 915.1  718.4  
a The FTA with Syria was suspended in 2011.  
n.a. Not applicable  
Source:  UNSD Comtr ade database and information provided by the authorities.  
Table 2.4 Overview of new FTAs, 2011 -15 
Trade agreement  Details  
Chile  
Date of signature/Entry into force:  
Transition to full implementation:  
Main prod ucts excluded from liberalization:  
 
 
 
Other measures:  
 
Merchandise trade 2014:  
 Exports  
 Imports  
  Of which are preferential:  
  Of which are MFN duty -free: 
WTO document series  
  
14 July 2009/1 March 2011  
Tariffs to be phased out by 2017  
Agricultural produc ts will retain tariff protection for 
both Turkey and Chile, as well as a small number of 
chemical/plastics/rubber items.  
 
Intellectual property, TBT, SPS, trade defence  
 
 
US$198.6 million  
US$363.3 million  
US$87.2 million  
US$267 million  
WT/REG293  
Jordan  
Date of signature/Entry into force:  
Transition to full implementation:  
Main products excluded from liberalization:  
 
 
 
 
Other measures:  
Merchandise trade 2014:  
 Exports  
 Imports   
1 December 2009/1 March 2011  
Tariffs to be phased out by 2018  
Tariff protection will remain in place for both Turkey 
and Jordan on a wide range of tariffs covering many 
HS chapters and sections; however both retain the 
majority of tariffs on agricultural p roducts.  
 
Competition, state monopolies  
 
US$907.4 million  
US$126.1 million  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Trade agreement  Details  
  Of which are preferential:  
  Of which are MFN duty -free: 
WTO document series  
 US$125.1 million  
US$678,295  
WT/REG294  
Republic of Korea  
Date of signature/Entry into force:  
 
Agreement on Investment, date of signature/entry 
into force:  
 
Agreement on Trade in Ser vices, date of 
signature/entry into force:  
 
Transition to full implementation:  
 
Main products excluded from liberalization:  
 
 
 
 
Other measures:  
 
Merchandise trade 2014:  
 Exports  
 Imports  
  Of which are preferential:  
  Of which are MFN duty -free: 
WTO docume nt series  
  
1 August 2012/1 May 2013  
 
26 February 2015/undergoing internal ratification 
process as of December 2015  
 
26 February 2015/ undergoing internal ratification 
process as of December 2015  
 
Tariff elimination to take place over 10 years (2013 -
2023)  
Both Korea and Turkey will retain tariffs on 
approximately 9% of tariff lines, all pertaining to 
agricultural products, although Korea will retain some 
tariffs on chemical products as well.  
 
Intellectual property, competition, trade and 
sustainable develop ment 
 
US$470.7 million  
US$7.55 billion  
US$5.95 billion  
US$1.45 billion  
WT/REG339  
 
Agreements on services and investment not notified as 
not yet in force  
Malaysia  
Date of signature/Entry into force:  
Transition to full implementation:  
Main products excluded  from liberalization:  
 
 
 
 
 
Other measures:  
 
 
Merchandise trade 2014:  
 Exports  
 Imports  
  Of which are preferential:  
  Of which are MFN duty -free: 
WTO document series   
17 April 2014/1 August 2015  
Tariffs to be phased out by 2023   
In industrial products, Mal aysia will retain its tariffs on 
six tariff lines, where as Turkey will eliminate all its 
tariffs. In agricultural products, Turkey will retain its 
tariffs on its main agricultural products, while Malaysia 
will eliminate most of its tariffs throughout the 
transition period.  
Rules of origin, customs procedures and cooperation, 
SPS, trade remedies, technical barriers to trade, 
economic and technical cooperation   
 
US$315.0 million  
US$1,161 million  
Not applicable  
Not available  
Not notified  
Mauritius  
Date of s ignature/Entry into force:  
Transition to full implementation:  
 
 
Main products excluded from liberalization:  
 
 
 
Other measures:  
Merchandise trade 2014:  
 Exports  
 Imports  
  Of which are preferential:  
  Of which are MFN duty -free: 
WTO document series   
9 Septe mber 2011/1 June 2013 
Mauritius to phase out tariffs by 2022, and Turkey by 
2016; TRQs granted by Turkey on agricultural products 
to remain indefinitely  
Turkey will retain tariffs on mainly agricultural products 
while Mauritius will maintain tariffs over a  wide range 
of HS sections.  
 
Rules of origin  
 
US$37.8 million  
US$7.9 million  
US$7.8 million  
US$90,000  
WT/REG341  
Source:  WTO Secretariat and information provided by the authorities.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2.3.2.3   Unilateral preferential regimes  
2.33.  Turkey, as part of its commitments purs uant to the Customs Union with the EU, has agreed 
to align itself with the autonomous customs regime of the EU. Thus, EU Regulation 
No. 978/2012/EU is the basis for Turkey's GSP scheme25 in which it offers unilateral preferences in 
parallel to those of the EU. Further, Turkey includes additional incentives of the EU, i.e. GSP+ and 
Everything But Arms (EBA).  
2.34.  Turkey has been offering unilateral preferences under these programmes since 2001 but 
only on industrial products and on industrial components of the pro cessed agricultural products. 
Coal and steel products pursuant to the ECSC agreement and agricultural products are not 
included. Rules of origin for beneficiary products are identical to those of the EU as outlined in the 
EU's Customs Code and Turkish cust oms legislation.26 
2.35.  In terms of country coverage, Turkey is also following the reforms to the GSP that the EU 
has taken, namely to focus preferences on countries most in need by removing high - and 
upper -middle -income countries and countries that benefit from  other privileged arrangements. 
Thus, Turkey's beneficiaries have been reduced from 177 to 91 at present.27 Turkey deviates 
slightly from EU country coverage by excluding Armenia: on Armenia's accession to the WTO, 
Turkey invoked Article XIII of the Marrake sh Agreement on the non -application of multilateral 
trade agreements.28 Since the entry into force of the EU 's new GSP regime, Turkey has reflected 
the restrictions made by the EU in the country coverage in its GSP scheme through the 
amendments in the impor t regimes of 2014 and 2015. Accordingly, since 2014 countries that were 
excluded from the EU 's GSP regime are also not covered by Turkey 's GSP scheme. As for the 
changes envisioned at the beginning of 2016 for certain South American countries, Turkey is 
undertaking the necessary evaluation and amendments, and plans to make the necessary changes 
through the import regime of 2016.  
2.36.  Turkey's unilateral preferential imports for 2014 amounted to 8.3% of total imports, with 
GSP imports being the largest contributo r, accounting for 91% of unilateral imports or 
US$18.2 billion. GSP+ imports are the smallest, accounting for 1% of unilateral imports, and EBA 
imports accounted for 8% of unilateral imports, or US$1.6 billion.  
2.3.3   Other agreements and arrangements  
2.3.3.1   Turkey -Iran Preferential Trade Agreement  
2.37.  The Turkey -Iran Preferential Trade Agreement was signed in January 2014 and came into 
force on 1 January 2015. The agreement provides for the reduction or elimination of tariffs, 
para-tariffs, and non -tariff barriers. It also contains provisions on MFN treatment, national 
treatment, rules of origin, anti -dumping and countervailing measures, safeguards, transparency, 
dispute settlement, exceptions, balance of payments, re -exports, TBT, and SPS matters. Pursuant 
to the specific c ommitments undertaken, Turkey has granted concessions to Iran on approximately 
140 agricultural products while Iran has granted concessions  to Turkey on approximately 
125 industrial products. Because of the limited scope, Turkey does not consider it a reci procal free 
trade agreement.  
                                               
25 Import Communiqué 2015/1, Turkish Official Gazette , 31 December 2014, No. 29222 bis 2.  
26 Ministerial Decree No. 2014/7064, Turk ish Official Gazette , 31 December 2014, No. 29222 bis 4.  
27 Turkey's beneficiaries, as of 1 December 2015, for GSP are: Botswana, Cameroon, Columbia, Congo, 
Cook Islands, Indonesia, Fiji, Ivory Coast, Philippines, Ghana, Honduras, India, Iraq, Kenya, Kyrgyz stan, 
Micronesia, Marshall Islands, Namibia, Nigeria, Nicaragua, Nauru, Niue, Uzbekistan, Pakistan, Sri Lanka, 
Swaziland, Tajikistan, Turkmenistan, Tonga, Ukraine, and Viet Nam. GSP+  beneficiaries  are: Bolivia, Cape 
Verde, Costa Rica, El Salvador, Georgia,  Guatemala, Moldova, Mongolia, Panama, Paraguay, and Peru. LDC 
beneficiaries of EBA are: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, 
Central African Rep., Chad, Comoros, Democratic Rep. of the Congo, Djibouti, Equatoria l Guinea, Eritrea, 
Ethiopia, Gambia, Guinea, Guinea -Bissau, Haiti, Kiribati, Laos, Liberia, Lesotho, Madagascar, Malawi, Mali, 
Mauritania, Myanmar, Mozambique, Niger, Nepal, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra 
Leone, Solomon Islands, Soma lia, South Sudan, Sudan, Tanzania, Timor -Leste, Togo, Tuvalu, Uganda, 
Vanuatu, Yemen, and Zambia.  
28 WTO document WT/L/501, 3 December 2002.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2.3.3.2   Economic Cooperation Organization (ECO)  
2.38.  As one of the founding members of the ECO in 1985, Turkey has been active with the other 
nine members29 in promoting economic, technical, and cultural cooperation. One of several 
objective s of the ECO is to progressively remove trade barriers and promote intra -regional trade, 
including the removal of tariff and non -tariff barriers and developing a favourable investment 
regulatory framework. ECO's cooperation on trade and investment has incl uded the ECO Trade 
Agreement (ECOTA), ECO Trade and Development Bank (ECOTDB), ECO Reinsurance Company, 
ECO Agreement on Promotion and Protection of Investment (APPI), ECO Chamber of Commerce 
and Industry (ECO -CCI), and cooperation on customs matters. As s tated in the ECO Vision 2015, 
member States "are determined to move towards establishment of a free trade area in the ECO 
Region as a priority task " but unfortunately this goal has not been achieved so far.30 
2.39.  The ECOTA was signed in 2003 among Ministers of ECO members and came into force in 
April 2008 after its fifth ratification. As of October 2015, five ECO members participate in the 
ECOTA: Afghanistan, Iran, Pakistan, Tajikistan, and Turkey. The ECOTA will reduce tariffs to a 
maximum of 15% for 80% of goo ds traded over eight years. The agreement will become fully 
operational after Tajikistan ratifies the annexes of the agreement, and Iran and Tajikistan submit 
their concession lists.  
2.40.  In 2005, the ECO launched the ECO APPI to achieve common policy and actio n for attracting 
investment among ECO members. Turkey along with Afghanistan, Azerbaijan, and Iran has signed 
the APPI but it is not yet implemented as it awaits ratification and more signatories.  
2.3.3.3   Developing -8 (D-8) 
2.41.  The D -8 group of developing countries31 was established in 1997 to improve its members ' 
position in the economy, enhance international participation, and diversify and create new trade 
opportunities. The members cooperate in a number of economic and industrial areas, including 
trade, agriculture,  tourism, and transportation. In 2006, D -8 Ministers signed a Preferential Trade 
Agreement (PTA) among the member States which covers liberalization or elimination of tariffs, 
para-tariffs, and non -tariff barriers. The PTA also contains provisions on MFN t reatment, rules of 
origin, anti -dumping and countervailing measures, safeguard measures, TBT, SPS, re -exports and 
shortages, balance of payments, transparency, dispute settlement, technical assistance, and 
general and security exceptions.  
2.42.  The tariff reduct ion modalities of the PTA require tariff reductions when tariff rates exceed 
10% by requiring each member to cover 8% of these lines and reduce tariffs to three bands, i.e. 
from above 25% down to 25%, from between 15 -25% to 15%, and from between 10 -15% to 
10%. The PTA provides for the immediate elimination of para -tariffs and non -tariff barriers; LDC 
members have longer time frames to reduce or eliminate tariffs.  
2.43.  The PTA entered into force in August 2011 for Turkey and , in 2014, Turkey, along with five 
other members, submitted revised lists of offers. Pursuant to a meeting of the Supervisory 
Committee of the PTA in March 2013, a new date was set as 1 August 2013 for the first reduction 
instalment under the PTA. But since internal procedures of the contractin g members are yet to be 
completed, the Agreement has not come into effect. The Agreement will become fully operational 
after these procedures are completed.  
2.3.3.4   Organization of Islamic Cooperation (OIC)  
2.44.  Under the provisions of the Organization of Islamic Coop eration 's (OIC) Trade Preferential 
System (TPS), Turkey is one of twelve OIC members32 to have complete d, sign ed, and ratif ied the 
legal instruments and submit ted lists of tariff concessions. The TPS provides for reciprocal 
                                               
29 Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan, and 
Uzbekistan.  
30 ECO Statistical Report 2014, "ECO Trade", Economic Cooperation Organization, April 2014. Viewed at: 
http://www.ecosecretariat.org/in2.htm . 
31 Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Paki stan, and Turkey.  
32 Bahrain, Bangladesh, Jordan, Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, 
Turkey and UAE.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  preferential tariff access by pro viding a margin of preference on current MFN rates of duty. It also 
has provisions for the removal of para -tariffs (i.e. border charges and fees), elimination of 
non-tariff barriers, establishment of rules of origin, and matters related to trade remedies.  
2.45.  The tariff preferences apply to goods covering 7% of each contracting member 's total HS 
lines with tariff rates above 10%. In accordance with the Agreement, tariffs above 25 % will be 
reduced to 25%; tariffs above 15% and up to 25% will be reduced to 15%; and tariffs above 10% 
and up to 15% will be reduced to 10%. As of November 2014, TPS -OIC is ready to become fully 
operational, since 12 OIC members have completed the signature and ratification of three legal 
instruments of the Agreement and submitted thei r tariff concessions lists. Currently, countries are 
updating their concession lists. Once the concessions lists are updated, the Trade Negotiation 
Committee will convene to announce the effective date of the Agreement.  
2.3.3.5   Black Sea Economic Cooperation (BSEC ) 
2.46.  Turkey, as one of twelve members of the BSEC33, is engaged with other members on a 
number of multilateral political and economic initiatives. The BSEC  members  cooperat e in many 
areas including trade and economic development, whereby Ministers declare init iatives and action 
plans are established. In 1997 a declaration to launch a free trade area was made. Although this 
initiative has not been implemented, establishing a free trade area among interested members still 
remains as a long -term objective. In the last several years, in trade and economic spheres, the 
BSEC has launched initiatives for cooperation on electronic commerce, trade facilitation, visas for 
business travellers, trade and investment facilitation/investment cooperation, single window 
system n otifications and information exchange, and harmonization of customs procedures. These 
initiatives are under development within their respective working groups.  
2.4  Investment Regime  
2.4.1   Overview and framework  
2.47.  Turkey has recognized the importance of attracting fore ign direct investment (FDI) for its 
economic growth and has put in place a number of schemes and initiatives, as well as a framework 
for further encouraging FDI. FDI in Turkey is concentrated in the services sector, in particular the 
finance and insurance subsectors, followed by the manufacturing sector, where food, beverages 
and tobacco are the most significant. In recent years, the energy sector has become more 
prominent, following the manufacturing sector.  
2.48.  There are several elements that provide the fram ework for foreign investment in Turkey. 
These have generally been in existence for many years and have not undergone substantial 
changes during the review period. However, Turkey continues to actively promote and encourage 
FDI, and as a result several deve lopments have occurred in the area of investment promotion 
(section 2.4.5).  
2.49.  Turkey's main investment law, the Foreign Direct Investment Law No. 4875, provides the 
main legal framework for investment in Turkey.34 The main provisions of the law align with 
international norms and provide for national treatment, free transfer of proceeds, dispute 
settlement, compensation in the case of expropriation or nationalization, employment of 
expatriates, and the submission of statistical information. The national treatme nt provisions 
provide that foreign investors are free to make investments in Turkey and that these investors 
shall be subject to equal treatment with domestic investors.  
2.50.  The real estate acquisition of companies with foreign capital used to be regulated acc ording 
to Article 3/d of the Law on Real Estate Acquisition, which was annulled by a decision of the 
Constitutional Court on 11 March 2008 (No. 2008/79). After this annulment, there was an 
amendment made by the Law No. 6302 of 3 May 201235 regarding Article  36 of the Land Registry 
                                               
33 Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Republic of Moldova, Romania, Russia n 
Federation , Serbia, Turkey,  and Ukraine.  
34 Law No. 4875, Official Gazette  No. 25141  of 16 June 2003 . 
35 Law No. 6302 of 3 May 2012, Official Gazette  No. 28296 of 18 May 2012.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Law36, which became the only provision for the real estate acquisition of companies with foreign 
capital.  
2.51.  As of December 2015, Turkey also has 76 bilateral investment agreements, known as 
reciprocal promotion and protection of inves tment agreements (or BITs – bilateral investment 
treaties) that also form part of the investment framework.37 Turkey has pursued investment 
agreements in order to provide a framework that benefits foreign investors by reducing risks. 
Turkey's BITs include p rovisions on transfer of profits, fair and equitable treatment, expropriation, 
national treatment and most favoured treatment principles, and an investor -state dispute 
settlement provision which includes an international arbitration mechanism. Turkey has a  model 
BIT that it keeps up to date by observing developments in international investment agreements 
and arbitration cases. In this context, Turkey updates its model BIT provisions where it considers 
necessary to ensure the conformity of its investment reg ime with its investment partners, 
especially with regard to its accession process to the EU.  
2.52.  Turkey's FTA's are also increasingly including provisions on investment ( section  2.3.2.2). In 
this regard, Turkey has signed an Investment Agreement under the Fram ework Agreement 
Establishing a Free Trade Area between Turkey and Korea, which is the first of this kind for 
Turkey. Investment provisions in this agreement, and FTAs that are currently under negotiation, 
have a broader scope compared to BITs. Market acces s commitments with regard to investments 
and trade related investment measure provisions are in the scope of Turkey 's investment 
commitments under FTAs.  
2.4.2   Investment policy  
2.53.  In 2001 Turkey established the Coordination Council for the Improvement of the Invest ment 
Environment (YOIKK) as the main entity for investment policy. It was initiated to improve Turkey 's 
competitiveness in attracting FDI. Since its inception, it has worked to rationalize investment 
regulations, remove administrative obstacles, and develo p policies to increase the attractiveness of 
Turkey 's investment environment. YOIKK is comprised of government (i.e. several Ministry 
undersecretaries) and non -government entities (i.e. five business associations), which contribute 
to the work of 10 techni cal committees38, and a steering committee chaired by the Undersecretary 
of the Ministry of the Economy.  
2.54.  In 2012, pursuant to a Council of Ministers ' decision, YOIKK's structure and activities were 
renewed in line with the needs and priorities of the privat e sector. The Ministry of Justice; Ministry 
of Transport, Maritime Affairs and Communication; and Ministry of Energy and Natural Resources 
were among the new members added to the YOIKK platform.  
2.55.  Each year YOIKK prepares an action plan in order to focus its  work. The action plans focus 
on issues such as identifying priorities in employment incentives, the secured transactions system, 
land allocation for investment, spatial planning, regulations in the railway market, stamp tax, R&D 
incentives, corporate taxa tion, capital transfers, export procedures, inward processing permits, 
single window, intellectual property, and credit guarantees.  
2.56.  In this context, the Development of Business and Investment Environment Programme is 
being implemented. In order to reduce uncertainties faced by investors and to foster investments, 
this programme focuses on problems that are of the highest priority and aims to improve existing 
mechanisms. This programme has four components: improvement of bureaucratic processes, 
improvement in legal processes, facilitation of investment site provisions, and improvement of 
governance of the business and investment environment at the regional level.  
                                               
36 Law No. 2644.  
37 Bilateral investment agreement s are currently in force with: Afghanistan, Albania, Argentina, 
Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium -Luxembourg, Bosnia and Herzegovina, Bulgaria, 
China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, 
Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyz  Republic , 
Latvia, Lebanon, Libya, Lithuania, TFYR of Macedonia, Malaysia, Malta, Republic of Moldova, Mongolia, 
Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Ru ssian Federation, 
Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, Republic of  Korea, Spain, Sweden, Switzerland, 
Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United States, 
United  Kingdom, Uzbekistan, and Yemen.  
38 Council of Minister's Decision No. 2014/3.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2.4.3   Investment restrictions  
2.57.  Restrictions remain on investment in twelve sectors (Table A2.3). The re strictions take 
many forms but often set a minimum or maximum foreign participation level or require 
permissions or licences to operate. There has not been any significant liberalization of investment 
restrictions during the review period.  
2.4.4   Investment incen tives  
2.58.  In April 2015, the Prime Minister announced some regulatory amendments, and in this 
framework, there were amendments related to the Decree No. 2012/3305 on State Incentives for 
Investments. Firstly, favourable support rates and terms of the programme  were announced for 
investments starting before 31 December 2014, and this deadline was extended for one more year 
until 31 December 2015. Secondly, high -technology investments were added to the priority 
investments list. Lastly, the benefits from tax dedu ction support measures during the investment 
period were increased while the total benefit was kept the same. This programme b uilds on the 
investment incentive scheme from 2012 to provide additional benefits to certain investments, 
especially those in adva nced technologies.  
2.59.  In June 2012 Turkey created its new investment incentive system to increase FDI, reduce 
regional development disparities, encourage strategic investments with high R&D content, and 
boost production and employment.39 Companies interested i n receiving investment incentives 
submit applications to the Ministry of Economy for consideration under the various incentive 
schemes and receive an investment incentive certificate upon approval. Pursuant to the Foreign 
Direct Investment Law, companies e stablished in Turkey by Turkish or foreign nationals, as well as 
branches of companies based in other countries, are eligible to benefit from the support of the 
Investment Incentive Programme on equal terms with domestic companies.  
2.4.4.1   Investment schemes  
2.60.  Since  2012, Turkey has had five main schemes as part of the Investment Incentive 
Programme offering nine different incentive instruments, some restricted to certain regions in 
Turkey (Table  2.5). The benefits are often dependent on the amount of the investment.  The 
customs duty exemption pertains to imported machinery and equipment within the scope of the 
investment encouragement certificate. The incentive certificate is issued for each investment 
project separately, so the company would benefit from the customs  duty exemption only for a 
specific project. For the tax deduction, this pertains to reduced income or corporate tax rates until 
the value reaches the amount of the investment. Interest support is financial support provided by 
the Ministry of Economy to co ver a portion of the interest/profit share regarding the loan. 
Companies may not benefit from more than one scheme for the same investment as each 
incentive certificate is issued with respect to one incentive scheme.  
2.61.  Turkey's investment incentives are targ eted based on sets of criteria, i.e. region, amount, 
etc. but the Priority Investment Incentive Scheme and Large -Scale Investment Incentives Scheme 
are selective to certain industries, generally involving higher value and high -technology goods, and 
have mi nimum investment amount criteria. Pursuant to Turkey's specific priorities, to receive 
Region V support regardless of location, incentives for power generation are offered subject to 
certain conditions of Turkey's Ministry of Energy and Natural Resources.40 Thus, many of these 
programmes have linkages to Turkey's overall strategy to encourage higher value -added 
production in Turkey and thereby reduc e the reliance on similar imported products.  
                                               
39 Council of M inister' s Decree No. 2012/3305 on Government Subsidies for Investments of 
15 June 2012.  
40 Invest in Turkey online information. Viewed at: http://www.invest.gov.tr/en -US/investmentguide/ 
investorsguide/Pages/Incentives.aspx . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 2.5 Overview of Turkey's investment incentive schemes  
Scheme  Overview  Main benefits  
General Investment 
Incentive Scheme  General scheme for a minimal fixed 
investment of TL 1 million in Region s 
I and II, and 500 thousand TL in 
Regions III, IV, V, and VI. VAT exemption,  customs duty 
exemption, and income tax withholding 
support only for Region 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 levels are defined 
separately for each sector and each 
region, the lowest amount being 
TL 1 million in regions I and II, and 
TL 500 thousand in the remaining 
regions.  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 (employee's 
share) only for Region VI; interest 
support for regions III, IV, V or VI; and 
land allocation.  
Priority Investment 
Incentive Scheme  Applies to the following sectors, 
treated as Region VI regardless of 
where located: tourism, mining, 
defence, railroad and maritime 
transport, nursery and schools, test 
facilities, R&D projects, electricity 
from coal or waste heat, motorized 
land vehicles und er certain 
parameters, energy efficiency in 
manufacturing, LNG and storage 
facilities, fairgrounds, carbon fibre, 
high-technology products, and 
mining exploration.  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 (employee's 
share) only for Region VI; interest 
support for Regions III, IV, V or VI if 
part of the regional scheme; and land 
allocation.  
Large Scale Investme nt 
Incentive Scheme  There are 12 sectors eligible for this 
scheme based on a minimum 
investment amount varying by sector 
(TL 50 to 1,000 million): refined 
petroleum products, chemicals, 
harbours and harbour services, 
automotive, railway and trams, 
transit pipelines, electronics, high 
precision medical or optical 
equipment, pharmaceuticals, aircraft 
and space vehicles, machinery, and 
integrated metal production.  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 (employee's 
share) only for Region VI; and land 
allocation.  
Strategic Investment 
Incentive Scheme  Aims to support production of 
intermediate and final products wit h 
a high import dependence of 50% or 
more, and high -tech and high -value -
added investments. Contingent on a 
minimum investment of TL 50 
million , minimum of 40% value 
added, and that the goods have a 
US$50 million import amount in the 
last year.  VAT exemptio n; customs duty 
exemption; income tax withholding 
support only for Region VI; tax 
deduction; social security premium 
support (employer's share); social 
security premium support (employee's 
share) only for Region VI; interest 
support for Regions III, IV, V or VI if 
part of the regional scheme; land 
allocation; and VAT refund for fixed 
investments of at least TL 500 million.  
Source:  Turkey's Ministry of Economy.  
2.62.  The investment schemes all have varying amounts of usage each year based on the projects 
that are  approved with an investment certificate. While foreign investment money has been part of 
all schemes, it has been mostly in respect of large -scale investment projects, especially in 2015, 
for a large project in the energy sector. Foreign capital has varie d a lot under each scheme and by 
year. The General and Regional Investment Incentive Schemes were the most used schemes 
during the period 2011 -15 (Table 2. 6). WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 2.6 Overview of fixed capital investments un der the incentive s chemes, 
2011 -July 2015  
(TL million)  
 2011  2012  2013  2014  2015a 
General Investment Incentive Scheme  
- Foreign investment  6,645  2,754  4,277  2,768  2,101  
- Domestic capital  27,136  19,772  30,604  20,106  14,433  
Regional Investment Incentive  Scheme  
- Foreign investment  1,492  4,210  8,601  6,400  1,947  
- Domestic capital  12,659  22,206  31,871  28,412  11,749  
Large Scale Investment Incentive Scheme  
- Foreign investment  350 1,425  1,885  2,378  23,374  
- Domestic capital  4,154  883 12,747  2,806  1,236  
Strategic Investment Incentive Scheme  
- Foreign investment  0 0 0 0 1,851  
- Domestic capital  0 11,626  6,450  754 211 
a Data until July 2015.  
Source:  Turkey's Ministry of Economy.  
2.4.4.2   Investment zones  
2.63.  Turkey maintains three types of zones that provide additio nal incentives or provisions to 
attract foreign investors: Technology Development Zones (TDZs), Organized Industrial Zones 
(OIZs), and Free Zones (FZ).41 TDZs, OIZs and FZs are under the responsibility of the DG for 
Science and Technology of the Ministry of  Science, Industry, and Technology; DG for Industrial 
Regions of the Ministry of Science, Industry, and Technology ; and the Ministry of Economy, 
respectively. Each type of zone has particular provisions that give advantages to firms or 
investors. If a comp any is also participating in the investment scheme process, the benefits 
accorded under the scheme may be adjusted if it is also a beneficiary under OIZs or TDZs.  
2.4.4.2.1   Technology Development Zones  
2.64.  Technology Development Zones are zones specialized in developing  the high technology 
sector in Turkey by supporting and encouraging R&D activities. Established by law in 2001 as sites 
integrating academic, economic, and other structures at certain universities, advanced technology 
institutes, R&D centres or institutes,  or technoparks to promote innovation and high -tech 
investments.42 There were 48 TDZs in operation in Turkey as of September 2015. Some of the 
main objectives of TDZs are to: develop innovative products and production methods, enhance 
quality and standards,  decrease production costs, develop and commercialize technical know -how, 
support entrepreneurship, and create investment opportunities in technology -intensive areas. In 
2011, amendments were made to the law; these amendments formed a basis for the subsequ ent 
Technology Development Zones Implementation Regulation43, which has provisions and principles 
relating to the establishment and operation of TDZs, and activities in TDZs.44 
2.65.  The benefits for companies establishing in TDZs are: exemption from income, VAT, and 
corporate taxes for software development until 2024; exemption from all taxes for R&D and 
support staff until 2024; production of the R&D product in the zone if deemed suitable; and 
payment of 50% of the employer 's social security payments by the Minis try until 2025. The 
Ministry of Science, Industry, and Technology provides grants , and the Ministry of Finance 
provides the tax exemptions to companies in TDZs. In 2014, grants totalling TL 27.7 million were 
supplied to companies in TDZs by the Ministry of  Science, I ndustry, and Technology; and 
TL 803.4  million in tax exemptions was provided to the companies in TDZs by the Ministry of 
Finance.  
                                               
41 Invest in Turkey online information. Viewed at: http://www.invest.gov.tr/en -US/investmentguide/ 
investorsguide/Pages/SpecialInvestmentZones.aspx . 
42 Law No. 4691 of 6 July 2001 and Implementing Regulation of 2 January 20 04. 
43 Official Gazette  No. 28939  of 12 March 2014.  
44 Law No. 6170 of 2 March 2011.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  2.66.  The use of  TDZs has grown steadily throughout the period with growth in the number of 
companies, foreign companies,  zones established, and exports. Tax breaks or incentives for TDZs 
are significant with personal income tax and VAT rebates being the largest, accounting for over 
TL 500 million in 2014. In 2014, exports from TDZs amounted to US$100 million (Table  2.7). 
Table 2.7 Overview of Technology Development Zones, 2011 -14 
 2011  2012  2013  2014  
Number of TDZs established in operation 
at the end of the year  31 34 39 43 
Number of companies operating in TDZs  1,800  2,174  2,569 2,956  
Number of foreign companies operating in 
TDZs 66 70 112 126 
Tax exemptionsa (TL million)  
   VAT 120.7  203.9  169.8  271.4  
   Corporate tax  97.5 137.7  134.5  170.9  
   Personal income tax  100.5  151.3  617.4  296.9  
   Social security tax  23.0 32.1 62.5 60.6 
Loan amounts  30 33.9 31.8 27.7 
Trade      
Total exports (annually; US$ million)  449 282 285 100 
Total exports  
(cumulative; US$ billion)  1.38 1.66 1.94 2.04 
a Represents foregone revenue.  
Source:  Ministry of Science, Industry, and Technology, o nline information. Viewed at: 
http://sagm.sanayi.gov.tr/userfiles/file/TGB%20g%C3%BCncel%20d%C3%B6k%C3%BCmanlar/%C
4%B0statistiki%20Veriler%2026082015.pdf ; and http://sagm.sanayi.gov.tr/userfiles/ 
file/tgb%20yeni/PerformansEndeksi_2013.docx . 
2.4.4.2.2   Organized Industrial Zones  
2.67.  Turkey' s OIZs were established by law in 2000 to provide an investor -friendly environment 
with established infrastructure for businesses, as well as allow for planned development in 
different regions.45 The law was amended in 2012 to regulate the administrative bo ards of OIZs. 
Pursuant to a 2012 Council of Ministers Decision, additional incentives were provided for OIZs, in 
particular a land allocation bonus and additional regional investment promotion incentives.46 The 
zones are established in different areas pursu ant to approval of the Ministry of Science, Industry, 
and Technology, which also provides credit funds and guarantees to firms for the establishment, 
construction, and operation of OIZs. As of 2013, interest rates for the credit were 1%, 2%, or 3% 
based on  the region, grace period, and repayment period.  
2.68.  Each zone has regulations for its operations, including a str ucture for its management, 
i.e. an enterprising committee, board of directors, and directorate, as well as provisions for its 
infrastructure (e.g . water, electricity, air quality, gas, and communication network). Depending on 
the type of zone, certain activities are not allowed such as refining, nuclear power generation, 
cement manufacturing, petrochemical complexes, and integrated sugar factories.  Advantages for 
companies establishing in OIZs include VAT exemption for land acquisitions, 5 -year exemption 
from real estate duties, low infrastructure costs, exemption from environmental taxes, and 
exemption from certain municipality taxes. There are cur rently 213 OIZs in operation, with the 
largest concentration in the Marmara region; more OIZs are in the planning phase.  
2.4.4.2.3   Free Zones  
2.69.  Free Zones have been in place in Turkey since 1985 to encourage investment and 
export -oriented production, pursuant to the L aw on Free Zones.47 FZs are considered outside the 
customs territory of Turkey and cater to export -oriented investments as goods are not subject to 
customs rules upon importation into the zones. There are currently 19 FZs operating in Turkey 
adjacent to por ts near its major export markets. In addition to the exemption from customs 
                                               
45 Law No. 4562 of 12 April 2000, Official Gazette  No. 24025  and Implementing Regulation, 
Official  Gazette  No. 27327, 28 August 2009.  
46 Decision No. 2012/3305.  
47 Law No. 3218  of 6 June 1985, Official Gazette , 15 June 1985, No. 18785.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  control, including duties, FZs have exemptions for corporate income tax for manufacturing 
companies, for VAT and for consumption taxes, and no restrictions on the transfer of profi ts. There 
is also an exemption for income taxes on employee salaries for companies that export at least 
85% of the f.o.b. value of goods produced in FZs.  
2.70.  There have been no major changes to the FZ regime in Turkey during the review period. 
During 2011 -14, the annual trade volume of FZs remained relatively flat, with US$22.6 billion in 
trade volume in 2011, climbing to US$23.2 billion in 2013, then falling slightly to US$22.4 billion in 
201448 (Table 2. 8). Thus, trade through FZs was approximately 10% of Turk ey's 2014 imports. 
Trade inflows into the FZs are mainly from the EU, with 35% of total 2014 inflows, and outflows 
are mainly to the Turkish market, 37% of 2014 outflows, thus the zones have a significant import 
processing component.49 The vast majority of zone activity is for the industrial sector although 
certain service activities such as banking and logistics also take place in FZs.  Purchasing and 
selling are the main business activity, followed by production in zones.50 
Table 2.8 Overview of Free Zones, 2011 -14 
 2011  2012  2013  2014  
Total trade volume (US$ million)  22,646  23,053  23,240  22,432  
Sales to third countries  (US$ million)  6,924  7,071  7,701  7,958  
Sales to Turkey (US$ million)  5,800,743  5,753,556  5,161,974  4,683,242  
Employment  (No.) 54,022  55,938  57,010  61,505  
Total number of companies  (No.) 2,444  2,407  2,269  2,140  
Total number of foreign companies  (No.) 474 494 495 496 
Source:  Information provided by the authorities.  
2.4.5   Investment promotion  
2.71.  The Inve stment Support and Promotion Agency of Turkey (ISPAT) under the Prime Ministry 
is the agency responsible for investment promotion in Turkey. It promotes Turkey's investment 
opportunities at the national, regional, and local levels to companies worldwide an d provides 
assistance and information. ISPAT is specifically involved in providing market information and 
analysis, assessing conditions, aiding with site selection, getting licences and work permits, finding 
partnerships, and negotiating with government i nstitutions. It provides a one -stop shop for 
interested foreign investors to set up their business in Turkey.  
2.72.  ISPAT was established in 2006 in order to encourage and increase the number of 
investments in Turkey for economic development.51 It is an incorpora ted legal entity with 
administrative and financial autonomy. It is headed by a president and its main administrative 
body is the Consultancy Board, chaired by the Prime Minister and comprised of ministers appointed 
by the Prime Minister and representatives  from the private sector. The Board has not met in the 
last four years. ISPAT funding comes from three sources: incomes from services, appropriations 
from the general budget, and aid funds and donations. However, very little, if any, is generated 
from serv ices. 
2.73.  The law establishing ISPAT was amended with several changes in 2011 .52 These involved 
mainly changes to its organizational structure, in particular the creation of two new major service 
units – the Department of Collaboration with Development Ag encies  and Department of 
Public -Private Sector Collaboration, as well as defining the duties and mandate of these units and 
the qualifications necessary for the president, i.e. level of education and professional knowledge 
and experience.  
                                               
48 Ministry of Economy, online information. Viewed at: http://www.ekonomi.gov.tr/portal/content/conn/ 
UCM/u uid/dDocName:EK -070996 . 
49 Ministry of Economy, online information. Viewed at: http://www.ekonomi.gov.tr/portal/content/conn/ 
UCM/uuid/dDocName:EK -070994 . 
50 Ministry  of Economy, online information. Viewed at: http://www.ekonomi.gov.tr/portal/content/conn/ 
UCM/uuid/dDocName:EK -070998 . 
51 Law No. 5523 of 2006 , Official Gazette , 4 July 2006, No. 26218.  
52 Law No. 644 of 2011, Official Gazette , 4 July 2011, No. 27984.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures and requirements  
3.1.  Customs procedures largely fall under the responsibility of the Ministry of Customs and 
Trade.1 The Customs Law No. 4458 (as amended), together with its Regulations, constitutes the 
basic legal framework for customs matters.2 Over the review period the Customs Law and its 
regulations have been amended several times. These amendments include, inter alia , changes to 
the calculation method for administrative fines, simpli fied destruction procedures for IPR infringing 
goods, bonded warehouse provisions, and laboratory analysis sampling procedures.3 
3.2.  As reported in Turkey's previous review, the format of the Turkish customs declaration is 
aligned with the single administrativ e document (SAD) used for customs procedures in  the EU. 
BILGE (a computer software package) carries out real -time customs formalities. The use of the 
BİLGE system is obligatory and it covers all aspects of customs formalities. In addition, the 
cooperation between the Ministry of Customs and Trade and o ther institutions is to be developed 
through the BİLGE system. For example, the Single Window Project, which enables traders to 
submit regulatory documents at a single location and/or single entity, has been ongoing since 
2014. The documents required by cu stoms administrations are receivable electronically through 
BİLGE. Currently, 13 institutions are interconnected through the Single Window Project.  
3.3.  As from 1 January 2012, a new summary pre -arrival declaration is in operation in Turkey. 
Information about the goods and transport vehicle should be submitted electronically before arrival 
at the customs office with the purpose of conducting a risk analysis of the cargo entering into the 
customs territory of Turkey for safety and security reasons. Except for ca rgo passing in transit, 
without any stops, through the territorial waters or airspace of the Turkish customs territory, the 
entry summary declaration is required for all goods brought into the Turkish customs territory.  
3.4.  Deadlines for lodging summary declar ations are determined according to the means of 
transport, as follows:  
 For maritime transportation:  
(a) At least twenty -four hours before loading the goods onto the vessel in the port of 
 departure for far ports (other than ports of the Black Sea and the Mediterranean) for 
 goods carried in containers;  
(b) For bulk and packed goods loaded in far ports, at least four hours before arrival at 
 the first port of entry in the Turkish Customs Territory;  
(c) For goods carried between foreign country ports of the Black Sea and the 
 Mediterranean and ports of the Turkish Customs Territory, at least two hours before 
 arrival at the first port.  
 For airway transportation:  
(a) For short -distance (less than four hours) flights, not later than the moment of take -off 
 of the aircraft;  
(b) For long -distance (longer than four hours) flights, at least four hours before the 
 landing of the aircraft at the first airport within the Turkish Customs Territory.  
 For railroad transportation, at least two hours before arrival at the e ntry customs offi ce; and  
 For road transport, at least one hour before arrival at the entry customs office, and if this is 
not possible, within one hour following the arrival of the vehicle at the entry customs office.  
3.5.  Summary declarations should be lodged by the person who brings the goods, or who 
assumes the responsibility of carriage of the goods, into the customs territory of Turkey. Without 
                                               
1 The website of the Ministry may be viewed (in Turkish only) at: http://www.gtb.gov.tr . 
2 The Customs Law, with amendments up to 20 11 may be viewed in English at: 
http://www.wipo.int/wipolex/en/text.jsp?file_id=314871 . 
3 Regulations amending the Customs Regulations were issued in the following Official Gazettes  (OGs): 
OG 28250 of 31.03.2012; OG 28321 of 12.06.2012; OG 28473 of 20.11.2012; OG 28524 of 10.01.2013; 
OG 28552 of 07.02.2013; OG 28609 of 05.04.2013; OG 28648 of 15.05.2013; OG 28675 of 12.06.2013; 
OG 28727 of 03.08.2013; OG 28828 (bis) of 21.11.2013; OG 290 06 of 21.05.2014; OG 29193 of 02.12.2014; 
OG 29253 of 31.01.2015; OG 29271 of 18.02.2015; OG 29294 of 13.03.2015; and OG 29354 of 13.05.2015.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  prejudice to the obligations of such persons, the summary declaration may be lodged by a person 
acting on their behalf or by a third party, who can submit the goods to the authorized customs 
office or who can ens ure the submission of the goods . The summary declaration must include the 
information prescribed in Annex No. 10 of the Turkish Customs Regulation (i.e. tarif f code 
(4 digits) and tax number) and it must be drafted according to the explanatory notes regarding the 
filling in of this form.  
3.6.  Turkey is ranked in 62nd place out of 189 economies in the World Bank's Doing Business 
Report 2016 subcategory on "trading ac ross borders". According to the Report, Turk ey requires 
13 import documents and the average time to import at the border is 3 days with a cost of border 
compliance of US$655.4 Following the World Bank's 2015 ranking process, an internal study was 
performed  in May 2015 by the Ministry of Customs and Trade. According to the study, the average 
time to import, the number of documents required, and the cost of importing were all less than 
what the Bank had reported in 2015 for Turkey. According to the authoritie s, the following may 
explain the major discrepancies between the World Bank data and the data obtained by the 
Ministry: data providers may not have had adequate proficiency in responding to the detailed 
questionnaires covering the entire import/export proc ess; there were no participants from the 
relevant Customs offices amongst the data providers; and the data issued by the World Bank are 
generally deemed accurate without verification. The customs declaration, invoice, bill of lading, 
value declaration form , and compliance certificate are the required documents for importation 
according to the authorities.  
3.7.  The time taken to process import declarations has not changed over the review period 
according to the authorities, thus it reflects the previously reporte d information that import 
clearance is normally  completed within 24 hours, provided all the required documentation is in 
order, irrespective of the mode of transport. However, the average processing time for exports 
decreased from 4 hours 44 minutes to 2 h ours 47 minutes over the period  2012-14 owing to the 
widespread utilization of the blue line by firms after its first implementation in 2011. The 
processing  time of  exports completed within the first minute  increased from 57% to 66% in the 
same period.  
3.8.  Turkey conducts risk analysis for both import and export operations through the Risk Analysis 
Programme integrated into the BILGE System. Various risk criteria identified in the system are 
determined with the purpose of improving the procedures and preventing  overload in the customs 
units by providing selectivity. Pursuant to risk assessment, goods may be subject to physical 
inspection. Data on the percentage of goods physically inspected was not available.  
3.9.  Pest risk analyses (PRA) are conducted on the basis o f the WTO and other related 
organizations' procedures. The European and Mediterranean Plant Protection Organization (EPPO) 
programme on PRA and other documents are used for assessment, and the International Plant 
Protection Convention (IPPC) standards are taken into consideration. If a plant and/or plant 
product is imported from any country for the first time, it is subject to the PRA process. After PRA 
assessment, the import requirements are determined for that commodity. In accordance with 
Article 13 of t he Plant Quarantine Regulation, when plants, plant products and other substances 
that are intended to be imported are contaminated with any harmful organi sms that are not 
present in the Annex -1 and Annex -2 lists and also with those that are not known to be  present in 
Turkey, those products are not permitted for importation  and a harmful risk analysis is carried out. 
Quarantine measures shall be taken until the harmful risk analysis is concluded , and if they are 
found to be posing a risk, they are not permit ted for import ation. 
3.10.  As set out in the Customs Law, economic operators may request advance assessments – 
Binding Tariff Information (BTI) – for the determination of import and export taxes, the calculation 
of duty drawback and import -export payments within  the context of Turkey's agricultural policy, or 
for the use of certificates providing tariff or origin information submitted for the purpose of 
customs clearance. The assessments are issued by the Ministry of Customs and Trade as well as 
authorized custom s directorates and may be valid for six years, provided the information 
submitted by the applicant is accurate and complete, and the declared goods correspond exactly to 
the BTI. A ssessm ents may cease to be valid in the event of nomenclature changes. In th is event, 
the holder of the BTI is notified.  
                                               
4 World Bank Doing Business 2016, online information. Viewed at: 
http://www.doingbusiness.org/data/exploreeconomie s/turkey#trading -across -borders . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.11.  According to Article 5.1 of the General Communiqué on Customs5, BTIs shall be issued free 
of charge. However, other expenses incurred by Customs, particularly when chemical analysis or 
expertize on goods is requ ested, or when goods are definitively returned back to the applicant, 
shall be paid by the applicant. In parallel to the regulations of the  EU, binding origin information 
(BOI) is offered by Turkey, as set out in Article 9 of the Customs Law. The procedure s for BOIs are 
similar to those for BTIs, however, a BOI is valid for only three years.  
3.12.  Since 2012, Customs' amendments to import procedures have largely related to issuing new 
procedures on release for free circulation of certain goods (namely: furniture;  carpets; cigarette 
and other lighters; motor land vehicles; fodder; leather and leather goods and footwear; float 
glass; liquid petroleum gas (LPG); crude oil and fuel oil; solvents and certain petroleum products; 
batteries and accumulators; radio and tel ecommunications terminal equipment; textiles and 
wearing apparels and accessories; ozone depleting substances; and certain goods brought into 
Turkey by land and railway (this latter procedure was later repealed). New procedures were also 
issued for product s of animal/vegetable origin when they enter the T urkish Customs territory . 
3.13.  The use of customs brokers is not compulsory, any natural or legal person with a tax 
number may import goods. Importers/customs brokers are responsible for removing imported 
mercha ndise from customs.  
3.14.  Merchandise arriving by road, railway or air transport should be removed within 20 days. 
For imports via maritime transport, the requirement is 45 days; failure to do so may result in 
confiscation and disposal at auction. Deadlines may be extended for 30 days at the request of the 
importer; this incurs a supplementary fee of 1% of the value of the shipment. As noted in Turkey's 
previous review, since 2009 special registration requirements have applied for importers of textiles 
and clothi ng, for monitoring purposes. In order to obtain the certification necessary to import 
these goods, information must be furnished on the exporting company's contact details, size, sales 
(including to other export destinations) and international quality cert ificates.6 
3.15.  Certain goods may only be imported through specialized customs offices. The purpose of 
these customs practices are to make the customs offices more disciplined ; improve customs 
procedures for certain goods and channel these goods to specialized customs offices ; ensure that  
standards are met; and make effective controls on tariffs, valuation, and origin matters. For 
example, motor vehicles, tractors, motorcycles and their spare parts and accessories must be 
cleared at the Yesilkoy, Gebze, Izmit, I zmir, Mersin, Derince or Giresun customs directorates ; for 
producers of motor vehicles, Mudanya, Gemlik, Esenboğa or Adana customs directorates are also 
authorized; textile products must pass through customs directorates at Aksaray, Ankara, AHL 
Kargo, Europe Free Zone, Denizli, G.Antep, G.Antep Airport, Geml ik, Giresun, Halkalı, Iskenderun, 
Izmir, Kayseri, Mersin, or Trakya; fertilizers must be imported through customs administrations at 
Antalya, Bandırma, Gemlik, Kapıkule, Tekirdağ, Iskenderun, Ambarlı, Haydarpaşa, Aliağa, Dikili, 
Izmir, Derince, Mersin, Sam sun, Ünye, Ankara, Mardin, or Yumurtalık Ser. Böl; and some solvents 
and petrochemical products must be cleared at the Ankara, Mersin, Adana, Eregli Region of 
Karadeniz, Erenköy, Beylikdüzü Akaryakıt, Izmir, Aliağa, Tekirdağ, Bursa, Gemlik, or G.Antep 
customs directorates. Goods for the food sector must be cleared at Ankara, Aliağa, Izmir, Adana, 
Bursa, Gemlik, G.Antep, Tekirdağ, or Körfez Petrochemistry Directorate.  
3.16.  Any person may appeal decisions regarding customs duties, fines and administrative 
measures  to a superior authority or to the same authority that took the customs decision if no 
superior authority exists. For tax issues, the final decisions of a regional directorate or the Ministry 
of Customs and Trade may be challenged in the tax courts.7 In 20 12, 2013, 2014 and 2015 (as of 
October), 14, 9, 42 and 13 BTIs , respectively,  have been cancelled upon appeal . 
3.17.  Turkey is a member of the World Customs Organization (WCO). Turkey is a contracting 
party to the WCO's Istanbul Convention on temporary admission8, as well as the WCO's 
                                               
5 Official Gazette  No. 26815  of 13 March 2008.  
6 The product coverage of this measure is contained in Turkey's previous review, WTO document 
WT/TPR/S/259/Rev.1, 7 March 2012, Table AIII.1.  
7 This right of appeal is governed  by Title XII (Articles 242 -1 and 243 -1) of the Customs Law.  
8 The Istanbul Convention on Temporary Admission (26 June 1990) combines all existing conventions on 
temporary admission and provides simplified and harmonized procedures and standardized model c ustoms 
documents for the temporary importation of goods. It entered into force on 27 November 1993.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  International Convention on the Simplification and Harmonization of Customs Procedures (as 
amended) (the WCO Kyoto Convention). However, it has not accepted any of the Kyoto 
Convention's specific annexes or chapters.9 Furthermore, T urkey has negotiated Bilateral 
Agreements on Mutual Assistance on Customs and Trade with 64 trading partners; not all have 
been implemented at this time. During the review period, agreements with 10 of these partners 
were negotiated, and one has been imple mented as of November 2015.10 
3.1.2   Trade facilitation  
3.18.  In July 2014, Turkey notified the WTO of its Category A commitments under the Agreement 
on Trade Facilitation. It has designated all of the provisions contained in Section I of the 
Agreement under Category A for full implementation upon the Agreement's entry into force, 
except for Article 7.9 relating to perishable goods.11 
3.19.  In order to facilitate trade at Turkey's terrestrial border posts, the Ministry of Customs and 
Trade has launched a "one stop shop" pilot p roject at the Bulgaria -Turkey land border gate at 
Kapikule. According to the authorities, this aims to reduce customs processing delays through 
coordinated and synchronized implementation of all procedures relating to the provision of 
customs services to p assengers, vehicles and drivers carrying cargo.  
3.20.  A similar pilot project is due to be implemented at the Georgia -Turkey land border gate of 
Sarp, before being extended to other relevant border gates. In accordance with the Agreement 
between the Government o f the Republic of Turkey and the Government of Georgia on the Joint 
Use of the Land Customs Crossing Points of "Sarp – Sarpi" Cildir/Aktas - Kartsakhi" and 
"Posof/Türkgözü – Akhaltsikhe", the parties have completed all internal procedures for entry into 
force of the Agreement and all related protocols , namely on cooperation and alignment of the 
procedures for the movement of passenger, vehicles and goods and working hours at the land 
customs crossing points of "Sarp – Sarpi", "Cildir/Aktaş – Kartsakhi" and "Posof/Turkgozu – 
Akhaltsikhe"; on details for electronic data exchange regarding the international movement of 
passengers, vehicles and goods; and the technical provision document on the data exchange 
system.  
3.21.  The Agreemen t basically aims to render joint services at land customs crossing points of the 
abovementioned border crossing points with a view to ensuring the facilitation of international 
traffic of passengers, vehicles and goods. This project also aims to avoid the duplication of 
identical customs procedures. For example , declarations regarding the passengers, vehicles and 
goods shall only be made in the country of exit, and the country of entry shall take these 
declarations as a basis. The general information regard ing the vehicles and goods lodged at the 
border customs office of the country of exit shall be forwarded electronically to the country of 
entry, where its authenticity shall be verified. Technical studies on the exchange of data between 
the two countries h ave been continuing and the implementation of the project at the border 
crossing point of "Sarp – Sarpi" is to be implemented in 2016.  
3.22.  Turkey launched an Authorized Economic Operator (AEO) programme in January 2013. The 
programme's aim is to facilitate the  foreign trade operations of its traders by reducing required 
lead times and costs as well as enhancing security by encouraging best practices throughout the 
supply chain. In order to obtain an AEO certificate, companies must , inter alia , prove that they 
have traceable documentation, are financially solvent, practice the necessary safety and security 
measures, and are established in Turkey and have been in operation for at least three years.12 
Applications by companies are made to the regional customs and tr ade directorates with which 
they work. If in order and appropriate, they are sent to the Ministry of Customs and Trade for 
assessment and an audit process follows. AEO certificates are valid indefinitely although 
companies are subject to periodic checks. C ertificate holders benefit from several privileges, the 
                                               
9 WCO online information. Viewed at: http:/ /www.wcoomd.org/en/about -us/legal -
instruments/~/media/1BC68A39AE20468D94920118C750D0B2.ashx . 
10 Agreements completed with Bangladesh, Chile, China (revised), India, Libya, Mexico, Montenegro, 
Palestine, Kingdom of Saudi Arabia, and Yemen. The agreement wit h Chile has been implemented.  
11 WTO document WT/PCTF/N/TUR/1, 16 July 2014.  
12 As noted by the authorities, companies have to fill out a self -assessment questionnaire before 
applying for AEO status. This questionnaire contains 108 questions on topics such a s: how records are kept; 
internal control procedures; customs compliance; safety and security of premises and cargo units; safety and 
security of goods; supply chain security; and personnel security.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  main ones being the right of local clearance, authorized consignor status and authorized consignee 
status. Local clearance means that all the necessary customs transactions and controls (for 
exports s ince 2013 and for imports since the beginning of 2015) may be executed at the 
company's facilities. Having authorized consignor status allows authorized shipping companies to 
transit their clients' shipments for export without visiting a customs office.13 Authorized consignee 
status allows shipping companies to complete customs transit transactions for imports at their own 
facilities or the facilities of companies who hold the right of local clearance. For both authorized 
consignors and consignees, all neces sary controls and sealing activities are also executed at the 
shipping company's facility or facilities. Other benefits extended to A EO certificate holders are:  the 
use of lum p-sum or partial guarantees;  the right to self -issue A.TR movement certificates a nd 
EUR.MED invoice declarations;  the ability to submit incomplete dec larations and documentation;  
reduced data requiremen ts for summary declarations;  green line facilitation; and  fewer 
documentary and physical controls as well as control priority.  
3.1.3   Customs valuation  
3.23.  There have been no changes over the review period to Turkey's basic provisions on customs 
valuation; these are set out in the Customs Law No. 4458, Articles 23 to 31. The primary basis for 
customs value is the transaction value. The transaction v alues used are the c.i.f. values by Turkish 
customs.  
3.24.  The hierarchy of alternate valuation methods follows the sequential order laid down in the 
WTO Agreement on Implementation of Article VII of the GATT 1994 (the Agreement). The 
Interpretative Notes to the  Agreement are incorporated in Turkey's legislat ion through the 
Customs Law No.  4458 and Articles 43 through 57, and Annexes 8 and 9, of the Customs 
Regulation.  
3.25.  Simplified procedures are available, at the request of the importer, to determine the 
customs value of perishable goods.14 Turkey implements the provisions of the Decision on the 
Treatment of Interest Charges in the Customs Value of Goods through Article 28(c) and Article 28, 
paragraph 2 of the Customs Law and Article 52 of the Customs Regulation. T he Decision on the 
Valuation of Carrier Media Bearing Software for Data -Processing Equipment has been included in 
the Customs Law (Article 29) and the Customs Regulation (Article 54). Turkey has applied these 
decisions since 1994, i.e. when the law on the Implementation of GATT ArtIcle  VII entered into 
force.15 
3.1.4   Rules of origin  
3.26.  The basic legal provisions of Turkey's non -preferential rules of origin are set out in the 
Customs Law No. 4458, Articles 17 to 21. Pursuant to the Customs Union Decision, Turkey has 
been applying the same rules of origin as the EU to third coun tries since 1 January 1996. 
Non-preferential rules of origin in Turkish legislation regulate the trade policy measures including 
surveillance and safeguard measures, quotas, anti -dumping duties, etc. against third countries 
beyond the preferential regime. They are applied to the countries that have not signed any 
preferential trade agreements with Turkey. The necessary document for proof of origin is the 
certificate of origin annexed to the Turkis h Customs Regulation.  
3.27.  Turkey's preferential agreements (Section 2) set out preferential rules of origin; these are 
normally based on a wholly obtained or substantial transformation criterion, with scope for 
cumulation. Turkey has been part of the Pan -Europ ean Origin Cu mulation System since 
1 January  1999. The arrangement allows the use of any material from any country within the zone 
(EU, EFTA and Turkey) to produce a good, while retaining preferential origin. This diagonal 
cumulation system has been extend ed to the following euro -Mediterranean countries: Albania; 
Algeria; Bosnia and Herzegovina; Egypt; the Faroe Islands; Israel; Jordan; Kosovo;  Lebanon; 
Macedonia; Montenegro; Morocco; Palestine; Serbia; Syria (currently suspended); and Tunis ia. 
However, for  diagonal cumulation among these parties to be possible, rules of origin need to be 
identical, and this is being gradually operationalized through the incorporation of the Euro -Med 
                                               
13 Shipping companies must have a minimum of 500 transit declarations annually.  
14 Article 45 of the Implementing Regulation of Customs Law No. 4458.  
15 Official Gazette  No. 21847 of 12 Februa ry 1994.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 50 - 
 
  origin protocol into the FTAs between them.16 For Turkey, the Euro -Med origi n protocol has 
entered into force through its FTAs with: Egypt; Israel; Jordan; Morocco; Syria; and Tunisia. Proof 
of origin must be supplied (MC EUR.1 and invoice declaration) and in some cases the MC EUR -MED 
and/or the EUR -MED invoice declaration.17 
3.28.  As no ted in section 2.3.2.3, Turkey offers unilateral preferences (GSP, GSP+ and EBA) in 
parallel to those of the EU; rules of origin are identical to those of the EU.  
3.1.5   Tariffs  
3.1.5.1   Applied MFN duties  
3.29.  Turkey's tariff is based on the 2012 Harmonized Commodity Descript ion and Coding System 
(HS) and comprises 16,515 tariff lines at the 12 -digit level.18 The first six digits reflect the 
HS nomenclature, the 7th and 8th digits correspond to the combined nomenclature of the EU, the 
9th and 10th digits are used to display sub -headings created for taxation and the 11th and 
12th digits are there for data collection purposes. In 2014, the customs duties collected by the 
Turkish Customs Admini stration constituted 2.3% of  total government tax revenue.  
3.30.  As reported in Turkey's previo us review, Law No. 474 on the Customs Tariff Schedule allows 
the Government to increase the applied MFN rates when these are deemed insufficient to provide 
"adequate" protection to domestic industries.19 The Law sets the so -called statutory tariff, which is  
different from the applied MFN tariff adopted annually by the Council of Ministers. Under the Law, 
the Government may replace applied MFN rates by 150% of the corresponding rates of the 
statutory tariff to ensure higher protection to local industries. How ever, according to the 
authorities, the statutory tariff is only applied for tariff li nes that are unbound in the 
WTO framework or fall outside of the scope of the Customs Union Decision (Section 2). For bound 
tariff lines or lines covered by the Customs U nion, any increases in the applied MFN rate are 
capped by Turkey's commitment levels.20 
3.31.  Turkey's tariff consists mainly of ad valorem  rates, which apply to 98.3% of tariff lines. 
Specific, compound, mixed and variable duties affect 275 tariff lines at the 1 2-digit level. Specific 
duties are levied on certain alcoholic beverages, salt and cinematographic films. Mixed duties apply 
to items such as carpets, glass and glassware products, and watches. The compound duties affect 
mainly processed agricultural produ cts such as yoghurt, bread, pastry and pasta. Variable duties 
apply to items such as dairy spreads, sugar confectionary, and chocolate. As reported in Turkey's 
previous review, the compound and variable duties are linked to the implementation of Turkey's 
customs union commitments with the EU, where the Turkish lira equivalents of the components 
expressed in euros are to be paid into the Mass Housing Fund.  
3.32.  Turkey's simple average applied tariff rate has increased slightly over the review period, 
from 12.2% i n 2011 to 12.8% in 201 5 (Table 3.1). This is mainly due to tariff rate increases 
(see Table A3.1) and higher AVEs due to lower import unit prices. Turkey raised the rates of 
certain customs duties in response to requests from domestic producers.  
                                               
16 The Euro -Med origin protocol was approved at the Euro -Med Trade Ministerial Meeting in Palermo on 
7 July 2003.  
17 Swiss Confederation Federal Customs Administration online information. Viewed at: 
http://www.ezv.admin.ch/pdf_linker.php?doc=Wegleitung_zu_Pan_Euro_Med&lang=en . 
18 At the time of Turkey's previous review, the 2011 tariff schedule was based on the HS07 
nomenclature consisting of 16,448 tariff lines (at the 12 -digit tariff line level).  
19 Law No. 474, published in the Official Gazette  of 25 May 1964 and amended by Law  No. 4217, 
published in the Official Gazette  of 8 December 1996.  
20 WTO document WT/TPR/S/259/Rev.1, 7 March 2012.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 51 - 
 
  Table 3.1 Structure of MFN tariffs in Turkey, 2011  and 2015 
  MFN applied  Final bounda 
2011  2015   
1. Bound tariff lines (% of all tariff lines)  n.a. n.a. 50.4 
2. Simple average tariff rate  12.2 12.8 37.5 
 Agricult ural products (WTO definition)  47.9 49.0 72.1 
 Non-agricultural products (WTO definition)  5.0 5.5 17.6 
 Agriculture, hunting, forestry and fishing (ISIC 1)  26.0 27.1 46.2 
 Mining and quarrying (ISIC 2)  0.2 0.2 9.3 
 Manufacturing (ISIC 3)  11.6 12.1 36.8 
3. Duty-free tariff lines (% of all tariff lines)  23.2 23.5 2.8 
4. Simple average rate of dutiable lines only  15.9 16.8 39.8 
5. Tariff quotas (% of all tariff lines)  .. .. 0.0 
6. Non-ad valorem  tariffs (% of all tariff lines)  1.7 1.7 0.2 
7. Non-ad va lorem  tariffs with no AVEs (% of all tariff lines)  0.3 0.2 0.2 
8. Domestic tariff peaks (% of all tariff lines)b 9.1 9.0 3.7 
9. International tariff peaks (% of all tariff lines)c 14.6 16.1 32.7 
10. Overall standard deviation of applied rates  27.1 27.6 44.7 
11. Nuisance applied rates (% of all tariff lines)d 6.7 5.5 0.04 
.. Not available.  
n.a. Not applicable.  
a Calculations for final bound rates are taken from the CTS database.  
 The final bound schedule is based on HS02 nomenclature and consists of 12 ,407 tariff lines, of which  
 6,255 are bound (at 8 -digit tariff line level).  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied  
 rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  2011 tariff schedule is based on HS07 nomenclature consisting of 16,448 tariff lines (at 12 -digit 
tariff line level).  2015 tariff schedule is based on HS12 nomenclature consisti ng of 16,515 tariff lines 
(at 12 -digit tariff line level).  Suspension List (V) and Civil Aircraft (VI) are not taken into account in 
calculations.  Calculations include AVEs provided by the authorities for non -ad valorem  rates.  In case 
of unavailability 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.  
3.33.  Duty-free items account for 23.5% of all tariff lines and nearly 80% of tariffs are u nder 
10%; 7.8% of tariff lines are over 80% (Chart 3.1).  
3.34.  A full comparison between Turkey's bound and applied rates was not possible due to 
nomenclature differences (Turkey's bound commitment schedule is in the HS 2002 nomenclature, 
while its applied tarif f schedule is based on the HS 2012 nomenclature). Nevertheless, it appears 
that for 47 tariff lines, the applied MFN rates exceed bound rates (Table 3.2). However, this is 
likely underestimated because 5% of tariff lines could not be compared due to nomenc lature 
differences.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 52 - 
 
  Chart 3.1 Distribution of MFN tariff rates, 2011 and 2015  
(Number of tariff lines)  
05001,0001,5002,0002,5003,0003,5004,0004,5005,0005,500
Duty free >0-5 >5-10 >10-15 >15-20 >20-25 >25-30 >30-35 >35-40 > 40(23.2)(23.5)(29.8)(28.7)
(26.1)
(25.9)
(6.2)
(5.7)
(2.2) (2.1)
(0.7) (0.8)(2.0)(2.6)
(0.5) (0.6)(1.4)(1.8)(7.4)(8.4)Chart 3. [Turkey]
Distribution of MFN tariff rates, 2011 and 2015
Number of tariff lines
Figures in parentheses denote the share of total lines.   Including AVEs for non -ad valorem rates, as available.  In 
case of unavailability of AVEs, the ad valorem part is used for compound and mixed duty rates.  No rates are 
available for 0.1% for 2011 and 2015.Note:
WTO Secretariat calculations, based on data provided by the authorities. Source:
 
Note:  Figures in parentheses denote the share of total lines. Including AVEs for non -ad valorem  rates, a s 
available. In case of unavailability of AVEs, the ad valorem  part is used for compound and mixed 
duty rates. No rates are available for 0.1% for 2011 and 2015.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.2 Tariff lines where applied tariff rates exceed bound tariff rates, 2015  
 2015 applied 
tariff rates 
(%) Bound 
tariff rates 
(%) 
HS 2938 Glycosides, natural or reproduced by synthesis, and their salts, ethers, este rs and other 
derivatives  
 293810000011  6.5 5.0 
 293810000012  6.5 5.0 
HS 2941 Antibiotics; Streptomycins and their derivatives     294120300000  5.3 0.0 
HS 3701 Photographic plates and film in the flat, sensitized, 
unexposed; for X -ray   
 370110000000  6.5 0.0 
HS 5607 Twine, cordage, ropes and cables; binder or baler twine     560721000011  12.0 10.0 
 560721000019  12.0 10.0 
HS 5911 Textile products and articles, for technical uses     591110000000  5.3 5.0 
 591131110000  5.8 5.0 
 591131190011  5.8 5.0 
 591131190012  5.8 5.0 
 591132110000  5.8 5.0 
 591132190000  5.8 5.0 
 591140000000  6.0 5.0 
 591190100011  6.0 5.0 
 591190100019  6.0 5.0 
 591190900011  6.0 5.0 
 591190900012  6.0 5.0 
 591190900019  6.0 5.0 
HS 7202 Ferro -alloys     720221000011  5.7 0.0 
 720221000012  5.7 0.0 
 720229100000  5.7 0.0 
 720229900000  5.7 0.0 
HS 8104 Magnesium and articles thereof, including waste and scrap     810411000000  5.3 5.0 
HS 8482 Ball or roller bearings     848210100011  8.0 5.0 
 848210100012  8.0 5.0 WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 53 - 
 
   2015 applied 
tariff rates 
(%) Bound 
tariff rates 
(%) 
 848210900011  8.0 5.0 
 848210900012  8.0 5.0 
 848210900013  8.0 5.0 
 848220000000  8.0 5.0 
 848230000000  8.0 5.0 
 848240000000  8.0 5.0 
 848250000000  8.0 5.0 
 848280000000  8.0 5.0 
 848291100000  8.0 5.0 
 848291900011  7.7 5.0 
 848291900012  7.7 5.0 
 848291900019  7.7 5.0 
 848299000011  8.0 5.0 
 848299000012  8.0 5.0 
 848299000019  8.0 5.0 
HS 8528 Monitors and projectors, not incorporating television 
reception apparatus    
 852873000000  2.0 0.0 
HS 8540 Thermionic, cold cathode or photo -cathode valves and tubes     85401 1000000  14.0 10.0 
HS 8706 Chassis fitted with engines, for the motor vehicles of 
headings 87.01 to 87.05    
 870600110011  19.0 10.0 
 870600110012  19.0 10.0 
HS 9011 Compound optical microscopes, including those for photomicrography, 
cinephotomicrography or microprojection  
 901180000011  6.7 5.0 
 901180000019  6.7 5.0 
HS 9022 Apparatus based on the use of X -rays    902230000000  2.1 0.0 
Source:  WTO Secretariat calculations, based on data provided by the authorities and the WTO CTS database.  
3.35.  Turkey's impl ementation of the Customs Union Decision, and thus the EU common external 
tariff on industrial products, yields a marked difference between tariff protection afforded to the 
agricultural sector versus manufacturing industries. For agricultural products the  simple average 
applied rate was 49.1% in 2014 (WTO definition) compared to non -agricultural products (5.5%). 
Furthermore, the high standard deviation for agricultural products (51.1) shows a higher variability 
among tariff rates as well as higher protecti on (Table 3.3 and Chart 3.2). The highest tariff rates of 
225% apply to 76 tariff lines, namely fresh, chilled, or frozen meat and edible offal of bovine 
animals; swine; sheep; goats; horses; asses; and mules or hinnies.  
Table 3.3 Turkey's applied MFN tariff summary, 2015  
 
No. of 
lines  Simple 
average 
(%) Tariff range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs 
(%) 
Total  16,515  12.8 0 - 225 27.6 23.5 1.7 
HS 01 -24 3,122  49.5 0 - 225 47.8 9.7 6.4 
HS 25 -97 13,393  4.3 0 - 40 4.2 26.7 0.6 
By WTO category        
WTO agricultural products  2,794  49.0 0 - 225 51.1 13.7 7.7 
Animals and products thereof  421 104.3  0 - 225 69.7 7.1 0.0 
Dairy products  178 125.1  9 - 180 50.5 0.0 14.6 
Fruit, veget ables, and plants  739 36.4 0 - 145.8  24.6 8.5 1.6 
Coffee, tea, and cocoa and 
cocoa preparations  54 27.7 0 - 145 34.9 5.6 48.1 
Cereals and preparations  324 37.4 0 - 130 28.7 9.3 27.5 
Oils seeds, fats, oil and their 
products  259 20.1 0 - 50 16.3 15.8 0.8 WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 54 - 
 
   
No. of 
lines  Simple 
average 
(%) Tariff range  
(%) SDa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs 
(%) 
Sugars and confectionary  65 84.5 0 - 135 47.9 3.1 36.9 
Beverages, spirits and 
tobacco  334 46.5 0 - 74.9 27.1 18.0 6.3 
Cotton  13 0.0 0 - 0 0.0 100.0  0.0 
Other agricultural products, 
n.e.s.  407 9.8 0 - 75 12.9 34.9 3.7 
WTO non -agricultural 
products  13,721 5.5 0 - 81.9 8.0 25.5 0.4 
Fish and fishery products  524 35.1 0 - 81.9 17.6 7.3 0.0 
Minerals and metals  2,657  4.2 0 - 40 6.1 38.0 0.8 
Chemicals and photographic 
supplies  3,118  4.7 0 - 19.4 2.5 19.7 0.2 
Wood, pulp, paper and 
furniture  792 0.9 0 - 10.5 2.0 80.9 0.0 
Textiles  1,749  6.7 0 - 12 2.4 2.0 0.3 
Clothing  601 11.5 6.3 - 12 1.4 0.0 0.0 
Leather, rubber, footwear 
and travel goods  453 4.2 0 - 17 4.2 23.0 0.0 
Non-electric machinery  1,432  1.7 0 - 9.7 1.4 30.4 0.0 
Electric machinery  847 2.5 0 - 14 2.7 29.8 0.0 
Transport equipment  420 5.3 0 - 22 4.8 12.6 0.0 
Non-agricultural products, 
n.e.s.  1,014  2.4 0 - 14 1.9 27.6 2.8 
Petroleum  114 2.6 0 - 4.7 1.8 32.5 0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting 
and fishing  916 27.1 0 - 150 32.5 28.1 0.0 
ISIC 2 - Mining and 
quarrying  182 0.2 0 - 11.7 1.1 93.4 2.2 
ISIC 3 - Manufacturing  15,416  12.1 0 - 225 27.1 22.4 1.8 
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line).  
Note:  2015 tariff schedule is based on HS12 nomenclature consisting of 16,515 tariff lines (at 12 -digit 
tariff line level). Calculations include AVEs provided by the authorities for non -ad valorem  rates. In 
case of unavailability of AVEs, the ad valorem  part is used for compound rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 55 - 
 
  Chart 3.2 Average tariff rates, by WTO product category, 2011 and 2015  
% 
020406080100120140
1 2 3 4 5 6 7 8 910 11 12 13 14 15 16 17 18 19 20 21 22 23 24
WTO calculations, based on IDB data provided by the Turkish authorities.Per centChart 3.[Turkey]                
Average tariff rates, by WTO product categories, 2011 and 2015
1 WTO Agriculture
2 Animals and products
3 Dairy products
4 Fruit, vegetables, and 
plants
5 Coffee and tea
6 Cereals and preparations
7 Oil seeds, fats and oils 
and their products      8 Sugars and confectionary
9 Beverages, spirits, and 
tobacco
10 Cotton
11 Other agricultural 
products
12 WTO non -agriculture
13 Fish and fishery 
products
14 Minerals and metals15 Chemicals and 
photographic supplies
16 Wood, pulp, paper, and 
furniture
17 Textiles
18 Clothing19 Leather, rubber, 
footwear, and travel goods
20 Non -electric machinery
21 Electric machinery
22 Transport equipment
23 Non -agricultural 
products
24 PetroleumAverage applied rates
2011 (12.2%) and 2015 (12.8%)
Source:Calculations include AVEs, as available, provided by the Turkish authorities.   Note:
 
Note:  Calcul ations inc lude AVEs, as available, provided by the authorities.  
Source:  WTO calculations, based on IDB data provided by the authorities.  
3.1.5.2   WTO bound duties  
3.36.  As a result of the Uruguay Round, Turkey bound 50.4% of its tariff lines; the final bound 
schedule is based on the HS02 nomenclature and contains bindings for 100% of agricultural tariff 
lines and 33.5% of tariff lines for industrial products.21 The simple average bound tariff rate on 
agricultural products (WTO definition) is 72.1%, while on non -agricultura l products it is 17.6% 
(Table 3.1). As noted in Turkey's previous review, significant diffe rences between bound and 
applied  rates leave Turkey some flexibility to increase its MFN duties on a number of agricultural 
goods. The gap between bound and applied duties on industrial products, combined with a 
relatively low incidence of tariff bindings, provides significant scope for Turkey to increase its 
duties on non -agricultural products within the WTO framework.  
3.1.5.3   Preferential tariffs  
3.37.  In line with its commitment s under the Customs Union Decision, Turkey has aligned its 
preferences to third countries with the EU trade regime (including its GSP scheme). This has led to 
progressive liberalization of all or virtually all tariffs on industrial products (WTO non -agricu lture) 
and selective liberalization of certain agricultural commodities and processed agricultural products 
(WTO agriculture). The only trading partner benefitting from significantly more liberal market 
access in agriculture is Bosnia -Herzegovina (Table 3. 4). 
                                               
21 As noted in Turkey's previous review, the incidence of tariff bindings in non -agricultural sectors is not 
uniform. While Turkey has bound mo re than 60% of the tariff lines for machinery, precision equipment, 
chemicals, transport equipment and plastics and rubber, no tariff lines are bound for products falling within 
HS chapters 26, 36, 60, 64, 67, 75, 78, 83, 89, 93 and 97. WTO document WT/TPR /S/259/Rev.1, 
7 March  2012, Section III.1.ii.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 56 - 
 
  Table 3.4 Summary analysis of the Turkish preferential tariffs, 2015  
(%) 
 Total  WTO agriculture  WTO non -
agriculture  
Average 
(%) Duty -free 
rates  
(%)a Average 
(%) Duty -free 
rates  
(%)a Average 
(%) Duty -free 
rates  
(%)a 
MFN 12.8 23.5 49.0 13.7 5.5 25.5 
Albania  9.3 82.9 48.2 16.7 1.3 96.4 
Bosnia -Herzegovina  1.0 99.3 5.7 96.0 0.0 100.0  
Chile 8.9 83.7 46.4 20.9 1.3 96.5 
Egypt  9.0 82.6 49.0 14.5 0.9 96.4 
EFTA 7.7 86.5 46.2 20.2 0.0 100.0  
EU 8.7 83.5 46.3 20.0 1.2 96.5 
Georgia  9.2 83.5 47.7 19.8 1.3 96.5 
Iran 12.3 24.1 46.7 17.0 5.3 25.5 
Israel  9.3 82.7 48.7 15.6 1.3 96.4 
Jordan  9.6 80.5 49.0 14.2 1.6 94.0 
Kosovo  9.4 82.7 48.9 15.3 1.3 96.4 
Macedonia (FYR)  9.4 82.8 48.8 16.0 1.3 96.4 
Mauritius  9.4 81.6 48.9 15.3 1.4 95.1 
Montenegro  9.4 82.5 49.0 14.1 1.3 96.5 
Morocco  9.4 82.7 48.9 15.2 1.3 96.4 
Palestine  9.4 82.7 48.9 15.2 1.3 96.4 
Korea, Republic of  8.9 66.9 43.6 20.5 2.0 76.3 
Serbia  9.4 82.5 49.0 14.1 1.3 96.4 
Tunisia  9.4 82.5 49.0 14.1 1.3 96.4 
GSP programmes        
GSP 10.5 55.7 46.2 16.5 3.3 63.7 
GSP+  9.2 81.0 45.4 25.7 1.8 92.2 
EBA 9.2 81.7 45.3 26.8 1.8 92.9 
a Duty-free lines as a percentage of total tariff lines.  
Note:  2015 tariff schedule is based on HS12 nomenclature consisting of 1 6,515 tariff lines (at 12 -digit 
tariff line level).  
 Calculations include AVEs provided by the authorities for non -ad valorem  rates.  
 In case of unavailability of AVEs, the ad valorem  part is used for compound rates  
Source:  WTO Secretariat calculations, ba sed on data provided by the authorities.  
3.38.  In order to benefit from preferential rates of customs duty during customs clearance, EUR.1 
or EUR.MED movement certificates are required from imports from non -EU countries with which 
Turkey has free -trade agreement s, and from EU member States for imports of agricultural goods, 
and coal and steel products.  
3.1.5.4   Other duties and charges (ODCs)  
3.39.  For all tariff line items in its Goods Schedule, Turkey has bound "other charges and duties" 
(Article II.1(b) of the GATT) at non -zero rates for all items except those marked "free". As noted in 
Turkey's previous review the possible ODCs could amount to 15% of the customs duty as a 
"municipality share", in addition to taxes of 4% for goods arriving by maritime transport 
(transportatio n infrastructure fee) or 3% by road, rail or air transport.22 
3.40.  Turkey continues to apply a Mass Housing Fund (MHF) levy on imported fish and fish 
products falling within HS Chapters 2, 3, 15, 16, and 23. The levy is differentiated according to the 
source of imports (the EU, EFTA member States and other countries). It ranges from zero to 35% 
                                               
22 WTO document WT/TPR/S/259/Rev.1, 7 March 2012 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 57 - 
 
  ad valorem . Turkey has not bound its tariffs for fish, but imports from EFTA member States enter 
free from import duty and the MHF levy under the Turkey -EFTA Free Trade Ag reement.  
3.1.5.5   Tariff -rate quotas  
3.41.  Turkey does not have any WTO TRQs bound in its WTO Schedule of tariff commitments. 
However, it does have a number of TRQs or quotas; these can be categorized as autonomous 
TRQs, TRQs pursuant to FTAs, and quotas applied to non -WTO Members.23 In 2015, TRQs were 
applied on over 1,800 tariff lines mainly agricultural products (see section 4.1 for the discussion on 
agricultural TRQs and TRQ administration). There were, however, ten industrial tariff lines of 
HS chapters 29, 38, 39, 84, 85, and 94 whereby autonomous quotas were in place.24 These TRQs 
provide for a zero rate of duty, for a limited quantity of the product, to  industrialists or importers 
based on the production capacity or past performance methods of allocation  (Table 3.5) . 
Table 3.5 Turkey's TRQs on industrial products, 2015  
HS 
2-digit Product 
description  No. of 
tariff 
lines  
(12-digit 
level)  In-quota rate  Out-of-quota rate  
Volume  No. of 
countries 
covered 
by TRQs 
(Range)  Average 
(%) Range  
(%) Average 
(%) Range  
(%) 
29 Organic chemicals  4 0 0 4.25 2-6.5 230,000;  
65,000;  
67,000;  
75,000 
(tonnes ) All 
countries  
38 Miscellaneous 
chemical products  2 0 0 5.7 0-6.5 40,000  
(tonnes ) All 
countries  
39 Plastics and 
articles thereof  2 0 0 4.7 3-6.5 10,000 -
20,000 
(tonnes ) All 
countries  
84 Nuclear reactors, 
boilers, machinery 
and mechanical 
appliances, parts 
thereof  1 0 0 2.2 2.2 450,000  
(piece s) All 
countries  
85 
94 Electrical 
machinery and 
equipment and 
parts thereof; 
sound recorders 
and reproducers, 
television image 
and sound 
recorders and 
reproducers, and 
parts and 
accessories of 
such articles(85) 
or furniture; 
bedding, 
mattresses, 
mattress supports, 
cushions and 
similar stuffed 
furnishings; lamps 
and lighting 
fittings, not 
elsewhere 
specified or 
included, 
illuminated signs, 
illuminated 
nameplates and 
the like; 
prefabricated 
buildings  1 0 0 4.7-5 4.7-5 40,000,000 
(piece s) All 
countries  
Source:  WTO Secretariat estimates, based on Market Access Map, I nternational Trade Centre, 2014. Vie wed 
at: www.intracen.org/marketanalysis ; and information provided by the authorities.  
                                               
23 Certain textile products of Belarus and the Democratic People's Republic of Korea  were subject to 
quotas.  
24 The specific products include: certain chemicals, e lectric lamps and light fittings, refrigerator 
compressors, and parts for television cameras.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.1.5.6   Tariff exemptions  
3.42.  Turkey maintains various tariff exemptions under different laws, programmes, or schemes 
(Table 3. 6). In addition, exemptions are available under Turkey's investment incentive schemes 
(section 2.4.4.1) and with respect to its special zones ( section 2.4.4.2).  
Table 3.6 Key features of concessional entry sch emes, 2015  
Scheme  Eligibility  Incentives  
Inward 
processing 
regime  (a) Conditional exemptions for imports 
(suspension scheme): any exporter  Intended for goods to be re -exported; 
suspension of duty and VAT on raw 
materials, auxiliary materials, semi -finishe d 
and finished products, packaging materials  
 
 (b) Use of equivalent goods: any exporter  Suspension of customs duties and VAT on 
imported inputs after export of 
compensating products  
 
 (c) Repayment of duties collected on 
imports: any exporter  Refund of customs duty and VAT paid on 
imported inputs, after export of goods with 
imported inputs, based on drawback 
method.  
 
NATO  North Atlantic Treaty Organization  0% on all imports  
 
Defence  Ministry of National Defence or public 
institutions on behalf of the M inistry  
 0% on all imports  
Donations  State administrations; certain items to be 
used mainly for the public interest, approved 
by relevant ministries  n.a. 
 Imported vehicles which are produced 
specifically for disabled persons: disabled 
persons, foundatio ns established with the 
purpose of helping disabled persons, 
associations authorized by the competent 
authorities and governmental agencies.  
 n.a. 
Financial 
leasing  Vessels, air carriers, medical equipment and 
high-tech products  Total or partial relief from import duties up 
to the date the leasing contract is over; VAT 
reductions  
 Movable and unmovable property  Suspension of all customs duties and 
exemption of duties, charges, and fees for 
the leasing contract up to the date the 
leasing contract is over . 
Temporary 
imports  Any importer; certain commercial or 
personal items  Temporary or partial relief from import 
duties on temporary use without any change 
except normal depreciation due to their use  
n.a. Not a pplicable . 
Source:  Compiled by the WTO Secret ariat and information provided by the authorities.  
3.1.5.7   Fees and charges for services rendered  
3.43.  There have been no changes over the review period to fees and charges for customs 
services rendered. All shipments requiring formal clearance by the Turkish customs a uthorities are 
subject to a bill of lading fee of US$100 per customs declaration and a stamp duty of TL 60.50 for 
2015. Additionally, various charges are levied for printed documents used by the customs 
administration. Customs clearance outside of normal w orking hours incurs additional charges. The 
fee for overtime is set at TL 7.48 per hour for export transactions and TL 17.95 per hour for all 
other operations.25 Costs for analyses or examinations carried out in customs laboratories or 
outsourced units are borne by declarants.26  
                                               
25 According to Article 3.1 of Communiqué No. 74, customs personnel receive an allowance for overtime 
work and work carried out on official holidays. Based on Arti cle 122.1.a of the Council of Ministers' Decision 
No. 2009/15481, the allowance is TL 5 per hour for export transactions and TL 12 for other transactions. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.1.6   Other charges affecting imports  
3.1.6.1   Value Added Tax  
3.44.  In 2014, VAT revenue accounted for 29% of total government tax revenue; 62.8% of total 
VAT revenue fell on imports and  37.2% on domestically produced goods and services. On imports , 
the VAT is calculated on the import price, inclusive of customs duties and special consumption tax 
(SCT), if applicable. The general rate of VAT is 18% (unchanged since 2001), with reduced rates of 
8% and 1% applying to a few specific products (Table 3.7).27 Since 2011, there have been 
two changes to the VAT: a reduction from the general rate to 8% for the supply of materials for 
pharmacy products (2012) and from 2013, the use of the 1% VAT rate on houses of up to 150m2 
has been limited to non -luxury dwellings.28 
Table 3.7 VAT rates  
Rate  Products  
18% General rate  
8% Basic foodstuffs, pharmaceuticals imported with permission and a licence granted by the 
Ministry of Health; baby food; blood products; vaccines; textil e and leather products; raw 
materials for pharmacy products; books and similar publications, services provided in private 
care homes and rest homes, accommodation services offered by hotels, motels, pensions and 
holiday villages, contact lenses, spectacle lenses for glasses, certain excavators and knitting 
machines . 
1% Journals; newspapers; certain agricultural products such as raw cotton and dried hazelnuts ; 
houses with a net area of up to 150m2; funeral services; used passenger cars; and most 
financial -leasing transactions.  
Exemptions  Transaction 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 roam ing services provided in Turkey for non -resident 
customers, where a reciprocity condition exists; deliveries of goods and services purchased by 
persons/entities engaged in petroleum exploration or related to production, construction, 
maintenance 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 Turkey; and most 
deliveries made and services provided by military factories and shipyards.  
Source:  EIU onli ne information. Viewed at: http://www.eiu.com ; Ministry of Finance online information. 
Viewed at: http://www.gep.gov.tr/Pro/Dyn.aspx?prmts=1 ; and information prov ided by the 
authorities.  
3.1.6.2   Strip stamps for alcoholic beverages and tobacco products  
3.45.  Turkey has implemented a strip -stamp requirement for alcoholic beverages and tobacco 
products since 2007. Exemptions to this requirement apply to alcoholic beverages of 5  cl or less 
and wine during the aging process. The stamp contains a code to be applied to each product. As 
noted in Turkey's previous review, for imported goods the codified label may be affixed (i) at 
production sites abroad before the products are shipped t o Turkey; (ii) in customs areas for 
                                                                                                                                               
Trucks carrying Turkish licence plates are charged an overtime fee of TL 12 per truck for export tran sactions 
and TL 19 for other transactions (Article 122.1.b). The fee is also charged to trucks with foreign licence plates 
taking goods into Turkey. However, depending on the time of the transaction and the mutuality principle, the 
fee may not be collected  from trucks with foreign licence plates transiting through Turkey.  
26 Customs Act No. 4458, Article 66, subparagraph 4, amended by Act of 18 June 2009 and Act 
No. 5911. Payments for laboratory analyses and examinations are recorded as revenue in a fund ent itled 
Working Capital regarding the Fees Charged for the Analyses Conducted at Customs Laboratories and the 
Goods Disposed under the Customs Legislation; operating expenses for tools, materials, supplies, software, 
training and the like are charged against  this fund. Laboratory analysis fees were published in the Customs 
Regulations of 7 October 2009, Enclosure 24.  
27 According to Article 28 of the Value Added Tax Law, the VAT rate is 10%. However, the Council of 
Ministers is authorized to quadruple this rat e and decrease it to 1%. In addition, the Council of Ministers can 
decide to apply different tax rates for different goods and services in wholesale and retail trade within the 
scope of this Article. The last time that the Council of Ministers exercised th is authority was in 2007 (Council of 
Ministers Decree No. 13033/2007).  
28 Economist  Intelligence Unit online information. Viewed at:  www.eiu.com . As noted by the EIU, luxury 
residences built in certain metropolitan areas ( municipalities with populations over 750,000 residents) as 
specified in the Metropolitan Municipality Law 5216 of 2004 are subject to VAT rates based on the land's tax 
value per m2: 8% VAT if the land tax value per m2 is between TL  500 and TL  999; and 18% if the land tax 
value per m2 is over TL  1,000.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 60 - 
 
  alcoholic beverages and tobacco products in Turkey; or (iii) at facilities operated by an authorized 
company in the provinces of Istanbul, Izmir, or Mersin. The price of the strip stamps is the same 
for imported and dome stically produced goods, except for beer, where the price difference is due 
to the cost of the stamp paper.29 It has been provided for the equalization of code/coded label/tax 
stamp prices for domestic and imported tobacco and alcoholic beverage products , thus eliminat ing 
the price discrimination of unit prices for tobacco and alcoholic beverage products as of  
10 June 2015 (Table 3.8). Additionally, with the new tender  requirements, the bandrole/coded 
label provisions have been completely abolished  in the au thorized company's facilities in İstanbul, 
İzmir and Mersin. On the other hand, it can be applied to tax stamps (banderole) or coded labels 
for production abroad before products are shipped to Turkey and also in free zones and bonded 
warehouses.  
Table 3.8 Price list for tobacco and alcoholic beverage products, 2015  
Product  Price  
Tobacco banderole (TL/'000) (for domestic products)  10.15  
Tobacco banderole (TL/'000) (for imported products)  10.15  
Alcohol bandero le (TL/'000)  (for domestic products)  58.19  
Alcohol banderole (TL/'000)  (for imported products)  58.19  
Beer code (TL/'000)  3.23 
Coded label (TL/'000)  3.23 
Source:  Information provided by the authorities.  
3.1.6.3   Special Consumption Tax  
3.46.  The Special Consumption Ta x (SCT) is levied on imports and domestic production of: 
petroleum products30; motor vehicles, aircraft and vessels; alcoholic beverages; tobacco; and 
durable consumer goods. With respect to imports, it is primarily collected when goods are cleared 
through Customs, and for domestically produced goods, when these are delivered to the 
customers. In 2014, SCT revenue accounted for 25.8% of total government tax revenue. The 
majority of the revenue is from petroleum products, followed by tobacc o, and then alcohol ic 
beverages  (Table 3.9) . 
Table 3.9 SCT revenue, 2011 -14 
(TL) 
 2011  2012  2013  2014  
Petroleum products  33,572,623  35,934,622  45,158,151  45,628,139  
Alcoholic beverages  3,856,415  4,642,864  5,196,165  5,888,632  
Tobacco  15,850,168  19,975,803  21,326,764  23,024,332  
Durable consumer 
products  2,057,748  2,466,816 2,916,325  3,392,471  
Source:  Information provided by the authorities.  
3.1.6.3.1   SCT on petroleum products  
3.47.  Since 2011, SCT rates on most petroleum products have been in creased, except for fuel 
oils, liquefied natural gas (LNG) not used as fuel oil in motor vehicles, and a few zero -rated items. 
Additionally, the SCT now also applies to petroleum ethers (from which other residues were 
removed by sulphuric acid), anthracene , certain blended biodiesels, other saturated acyclic 
hydrocarbons, ethyl benzene and paraffin with an oil content not exceeding 0.75% by weight 
(Table 3.10).  
                                               
29 WTO document WT/TPR/S/259/Rev.1, 7 March 2012.  
30 SCT is not applied on petroleum products during the importation phase, but is applied during the 
delivery phase.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.10 SCT as applied to petroleum products, 2 015 
Product description  Tax rate  
TL 
Naphtha; aviation spirit, jet fuel, various petroleum gases and other 
gaseous hydrocarbons; petroleum coke and bitumen and bituminous 
mixtures  0 
Gasoline  from 2.1500/litre to 2.2985/litre  
Diesel  from 1. 5245/litre to 1 .5945/litre 
Fuel oils  from 0.2240/litre to 0.4760/litre  
LNG from 0.0230/standard M3 to 
0.8599/standard M3 
Liquefied propane, butane  1.4940/kg  
LPG 1.2100/kg to 1.5780/kg  
Natural gas  from 0.0230/standard M3 to 
0.8599/standard M3 
Propane and butane (in gaseous state)  1.4940/kg  
Auto and fuel biodiesel  1.1209/litre  
Benzene, Toluene, Ksilene, solvent naptha, anthracene, natural gas 
condensates, white spirits, certain blended biodiesel, hekzane, heptane, 
other saturated acyclic hydrocarbons, pentane, methy l tersier butyl ether; 
anti-knock preparations, oxidation inhibitors, gum inhibitors, viscosity 
improvers, anti -corrosive preparations and other prepared additives for 
mineral oils or other liquids used for the same purpose as mineral oils  2.2985/kg  
Certa in blended biodiesel  1.3007/kg  
Composite solvents and thinners to remove paint or varnish  0.7390/kg  
Lubricating and other oils  1,3007/kg  
Paraffin (with oil content not exceeding 0.75% by weight)  1.3007/kg  
Gas oil  0.9367/litre  
Lubricating preparations  1.3007/kg  
Source:  Information provided by the authorities.  
3.1.6.3.2   SCT on motor vehicles, aircraft, and vessels  
3.48.  All SCT rates on motor vehicles, aircraft and vessels are ad valorem , and range from 1% to 
145%. The h ighest rates apply to motor vehicles with a high cylinder capacity . Since Turkey's last 
review, SCT rates have been increased on certain motor vehicles (Table 3.11) . 
Table 3.11 SCT as applied to motor vehicles, aircraft and vessels 2015  
Product description  Tax rate 2015  
(%) 
Tractors for semi -trailers  4 
Motor vehicles for transport of 10 persons and more (including driver)   
- Autobus  1 
- Midibus  4 
- Minibus  9 
Motor cars and other motor vehicles principally designed for the 
transport of persons (other t han those of heading No. 87.02), 
including  station wagons and racing carsa  
- Those with maximum load capacity of 850 kg or less, and with 
piston displacement of less than 2,000 cc;  15c 
- Those with maximum load capacity of more than 850 kg, and with 
piston displacement of less than 2,800 cc;  15c 
- Only those with electric motor;  10 
- Of a cylinder capacity not exceeding 3,200 cm3, having 9 seats 
including driver;  15c 
- Of a cylinder capacity not exceeding 3,200 cm3, having 9 seats 
including driver  (only those with electric motor)  10 
Others   
- Of a cylinder capacity not exceeding 1,600 cm3 45c WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 62 - 
 
  Product description  Tax rate 2015  
(%) 
- Of a cylinder capacity exceeding 1,600 cm3 but not exceeding 
2,000cm3 90c 
- Of a cylinder capacity exceeding 2,000 cm3 145c 
- Only those with electric motor   
- Of a motor power not exceeding 85 kW  3 
- Of a motor power exceeding 85 kW but not exceeding 120 kW  7 
- Of a motor power exceeding 120 kW  15 
Vehicles specially designed for traveling on snow, vehicles with 
compression ignition, internal combust ion reciprocating piston engine 
(diesel and semi -diesel) or vehicles with spark -ignition internal 
combustion reciprocating piston engine  6.7 
Others   
- Golf cars similar vehicles  6.7 
Motor vehicles for the transport of goodsb  
- Of cylinder capacity not  exceeding 3,000 cm3 10 
- Of cylinder capacity exceeding 3,000 cm3 but not exceeding 
4,000  cm3 52 
- Of cylinder capacity exceeding 4,000 cm3 75 
Only those with electric motor   
- Of a motor power not exceeding 85 kW  10 
- Of a motor power exceeding 85 k W but not exceeding 120 kW  52 
- Of a motor power exceeding 120 kW  75 
Of load limit under 620 kg and having box truck   
- Only those with electric motor  10 
- Others  10 
Others   
- Only those with electric motor  4 
- Others  4 
Special purpose motor vehic les, other than those principally designed 
for the transport of persons or goods (for example, breakdown lorries, 
fire fighting vehicles, concrete -mixer lorries, road sweeper lorries, 
spraying lorries, mobile workshops, mobile radiological units) 
(excludin g fire fighting vehicles)  
Those only subject to recording and registration, excluding fire 
fighting vehicles  4 
Works trucks, self -propelled, not fitted with lifting or handing 
equipment, of the type used in factories, warehouses, dock areas or 
airports fo r short distance transport of goods; tractors of the type 
used on railway; the components and parts of these vehicles  4 
Motorcycles (including mopeds) and cycles fitted with an auxiliary 
motor, with or without side -cars; side cars (except side cars)  (exce pt 
only those with electric motor)   
- Of a cylinder capacity not exceeding 250 cm3 8 
- Of a cylinder capacity exceeding 250 cm3 37 
Others (only those with electric motor)   
- Of a motor power not exceeding 20 kW  3 
- Of a motor power exceeding 20 kW  37 
Other aircraft (for example, helicopters, aeroplanes); spacecraft 
(including satellites) and spacecraft launch vehicles and vehicles 
under orbit (only helicopters and aeroplanes) (except military 
aircrafts, special helicopters and aeroplanes for pesticide  and fire 
extinguishing use)  0.5 
Cruise ships not exceeding 18 gross tonnage  6.7 
Passenger ships and cruise ships  6.7 
Yachts and other vessels for pleasure or sports; rowing boats and 
canoes (except inflatable, rowing boats, and canoes not exceeding 
100 kg) 8 
a Only passenger cars, station wagons, racing cars, off -road vehicles, etc. (including cash -carrying 
vehicles), motorhomes, and motor vehicles that run on electricity, gas, solar energy etc. Except for 
motor vehicles such as ambulances, prisoner ve hicles, funeral vehicles, fire department lead -vehicles 
that are manufactured for special purposes; compression -ignition piston engine (diesel and 
semi-diesel) and spark -ignition piston combustion vehicles that have been designed to be driven on 
snow, othe rs (golf cars etc.).  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 63 - 
 
   Of motor vehicles (except all wheel -driven passenger cars, station wagons, race cars and off -road 
vehicles) of less than 3.5  tonnes weight, which are used for carriage of goods, and the passenger 
capacity (passenger capacity is calcul ated by multiplying the number of passengers, including the 
driver, by 70 kg; when making this calculation, the fixed appliance for mounting of seats will be 
taken into consideration as if they were the seats) of which is less than 50% of the maximum load 
capacity (the total load weight, including the driver and the passengers, that a vehicle can safely 
carry).  
b Those only subject to recording and registration.  
 Those with maximum load capacity of 4,700 kilograms or less, and with other seats by the driver  or 
those with side windows other than that of the driver (except trucks without box and with piston 
displacement of 3,200 cc or less).  
c Indicates items which have been subject to SCT rate increases since 2011.  
Source:  Information provided by the authorit ies. 
3.1.6.3.3   SCT on alcoholic beverages  
3.49.  SCT rates applying to alcoholic beverages have been significantly increased over the review 
period, by between 31% and 52%. This follows a similar trend to that reported in Turkey's 
previous review. All alcoholic beverages a re subject to specific rates, except for beer where the tax 
rate is the higher of 63% or TL 0.8 966 per litre (Table 3.12).  
Table 3.12 SCT on alcoholic beverages, 2015  
Product description  Tax rate 
(%) Tax rate  
(specific 
amount in 
TL per lt. ) 
Cola soda pops  25 - 
Beers produced from malt  63 0.8966  
Wine of fresh grapes (including fortified wines); grape must (other than that of 
heading No. 20.09) (except 2204.10 sparkling wine and 2204.30 other grape 
musts)  0 4.8419  
Sparkling wines  0 32.7229  
Vermouth and other wines of fresh grapes (flavoured with plants or aromatic 
substances) (except 2205.10.10.00.00, 2205.10.90.00.12)  0 44.8965  
Vermouth and other wines of fresh grapes whose alcoholic strength by volume is 
18% or less  0 35.6556  
Other fermented drinks (such as apple wine, pear wine, honey wine), mixed 
fermented drinks not in any other part of the tariff, and blends of fermented drinks 
with non -alcoholic drinks  0 4.8419  
Vermouth and other wines of fresh grap es whose alcoholic strength by volume is 
22% or less  0 131.0502  
Other alcoholic drinks with any degree of alcohol content, which are produced with 
denatured ethyl alcohol or by alcohol that is obtained by distillation (except for 
denatured ethyl alcohol o f any degree)  0 131.0502  
Undenatured ethyl alcohol of less than 80%; distilled alcoholic drinks, liqueurs and 
other alcoholic drinks (2208.90.91; 2208.90.99) except for undenatured ethyl 
alcohol of less than 80% (except 2208.20, 2208.50, 2208.60, 2208.70 and 
2208.90)  0 131.0502  
Grape wine or alcoholic drinks that are obtained by distilling grape marcs  0 131.0502  
Gin and Geneva  0 116.5453  
Vodka (except 2208.60.91.00.00, 2208.60.99.00.00)  0 116.5453  
Undenatured ethyl alcohol of less than 80%; distilled a lcoholic drinks, liqueurs and 
other alcoholic drinks:  those in containers of less than 2 lit res (with alcohol content 
of more than 45.4%)  0 131.0502  
Undenatured ethyl alcohol of less than 80%; distilled alcoholic drinks, liqueurs and 
other alcoholic drink s: those in containers of more than 2 lit res (with alcohol 
content of more than 45.4%)  0 131.0502  
Liqueurs  0 131.0502  
Undenatured ethyl alcohol of less than 80%; distilled alcoholic drinks, liqueurs and 
other alcoholic drinks:  Others (except 2208.90.48.0 0.11 and 2208.90.71.00.11)  0 131.0502  
Raki (in containers of 2 litres or less)  0 113.6338  
Raki (in containers of more than 2 litres)  0 113.6338  
Note:  For SCT rates applying in 2011, see WT/TPR/S/259/Rev.1, 7 March 2012.  
Source:  Information provided by t he authorities.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.1.6.3.4   SCT on tobacco products  
3.50.  Revenue from the SCT levied on tobacco products is channelled into the general budget of 
the Government . Since 2011, SCT ad valorem  rates have risen either by 4.5% or 25% depending 
on the item. The duty is calculated  on an ad valorem  basis with a specific tax floor; the ad valorem  
tax is then compared with minimum specific tax amount, and the higher one is applied by  adding 
the specific tax amount  (Table 3.13) . 
Table 3.13 SCT duties on tobacco products, 2015  
Product description  Tax rate 
(%) Minimum 
specific tax 
amount 
(TL) Specific tax 
amount 
(TL) 
Cigars that contain tobacco; Cheroots; Cigarillos; Cigars, 
cheroots, cigarillos made of ingredients deemed as a tobacco  40 0.2103 0.1968  
Cigarettes that contain tobacco; Cigarettes made of ingredients 
deemed as a tobacco; Smoking tobacco (whether or not 
containing tobacco substitutes in any proportion) (except 
2403.10.10.00.19 and 2403.10.90.00.19); Snuff and chewing 
tobacco  65.25 0.2103  0.1968  
Others (in immediate packing of a net content not exceeding 
500g); Others (in immediate packing of a net content 
exceeding 500g)  65.25  0.0549  0.1968  
Source:  Information provided by the authorities.  
3.1.6.3.5   SCT on durable consumer goods  
3.51.  The SCT o n durable consumer goods is levied at ad valorem  rates of 3%, 6.7%, 20% and 
25% depending on the item. During the review period, most pearls, and precious and 
semi-precious  stones were removed from the list of products subject to the tax on 11  September 
201431 (Table  3.14).  
Table 3.14 SCT duties on durable consumer goods  
Product description  Tax rate 
(%) 
Electric accumulators  3 
Shaving foam, cream and soap; air conditioning machines; refrigerators; freezers and  heat 
pumps; water heaters; washing and drying machines; dishwashers; vacuum cleaner; home 
use electro -mechanical apparatus; shaving machines; various electrical items (i.e. space and 
water -heating apparatus; hairdressing apparatus; hand dryers; smoothing irons); sound and 
video recording apparatus; video tapes; disks for laser reading; digital multilayer disks 
(DVDs); digital non -multilayer disks; radio receiver sets; certain radio broadcasting receiver 
sets; radios with clocks; monitors and projectors; re ception apparatus for television  
 6.7 
Caviar and substitutes; perfumes and toilet waters; beauty, makeup; skin/nail/haircare 
preparations; shaving and bath preparations; personal deodorants; room deodorizers; 
certain leathers, furs and imitation furs and products thereof; printed material sold in plastic 
bags (i.e. brochures, pamphlets, newspapers); certain tableware and kitchenware from glass 
ceramics; various items containing/made of lead crystal; manicure and pedicure sets/tools; 
gold and silver -plated cutlery; portable receivers for calling, alerting and paging; various 
types of transmitter sets with receivers; microphones; loudspeakers; headphones and 
earphones; certain amplifiers; TV cameras; digital cameras and video camera recorders; 
remote control apparatus; pocket radio cassette players; sound recording and reproducing 
apparatus; various radio broadcasting receiver sets; remote control devices; certain 
watchbands; revolvers, pistols and other firearms/similar devices; video game consoles and 
machin es; articles for funfair, table or parlour games; and worked ivory, bone, tortoiseshell, 
horn, antlers, coral, mother -of pearl and other animal carving material and articles of these 
materials  
 20 
Cellular transmitter telephone sets with receiver  25 
Source: Information provided by the authorities.  
                                               
31 HS Codes 71.01, 71.02, 71.03, 71.04.90.00.0 0.19, 71.05, and 71.06.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.1.6.4   Other taxes and charges  
3.52.  Imported raw tobacco is subject to a Tobacco Fund levy of US$900 per tonne. A Banking 
and Insurance Transaction Tax (BITT) is levied at 5% on certain operations such as interest 
income an d commissions. A stamp tax is applied to a range of legal documents i.e. contracts, 
agreements, financial statements, payroll (the stamp tax base varies according to the document 
type). A motor vehicle tax is payable by motor vehicle owners, with rates var ying according to the 
vehicle type. Owners of buildings and land are subject to a real estate tax which is a percentage of 
the value of the land. The building tax rate is 0.1% for residences and 0.2% for all other buildings. 
The land tax rate is in general  0.1%, but for parcels it is 0.3%. These rates can be applied with a 
100% increase within municipality boundaries and in adjacent areas. The importation of goods on 
a credit basis is subject to a Resource Utilization Support Fund (RUSF) levy of 3% of the l oan 
amount granted or c.i.f. value of goods. As the loan term gets extended, this rate may fall as low 
as 0%. Since October 2011, RUSF is applied as 6% on credit based imports. In Article 1 of the 
Cabinet Decision on RUSF32, a rate of 0% was determined for imported goods in the list attached 
to the Cabinet Decision. Other provisions on payment methods such as acceptance credit, letter of 
credit, and cash against goods imports were also included. Communications services are taxed at 
rates ranging from 5 to 25 %.33 For gambling services, the rate of tax on games of chance is 5% in 
pari-mutuel betting based on sports competitions, 7% in horse -racing, and 10% in other games of 
chance.34 
3.1.7   Import prohibitions, restrictions, and licensing  
3.1.7.1   Import prohibitions  
3.53.  Turkey proh ibits the importation of ten broad product categories (Table 3.1 5). Turkey 
justifies these restrictions under the general exceptions and secur ity exceptions provided by 
GATT  Articles XX and XXI, i.e. the necessity to protect public morals or human, animal or plant life 
or health; compliance with domestic legislation or international obligations; or for reasons of 
national security. Imports may also be restricted pursuant to Annex -3 of the Plant Quarantine 
Regulation.  
Table 3.15 Import prohibitions, 2015  
Description  Invocation of WTO 
Article  Domestic/international  
Narcotics, hashish and 
prepared opium (2 items)a Health, IAb 
(Article XX:b, h)  Law No. 2313 on the Control of Narcotics, and 
the International Agreeme nt on Narcotics Goods 
(1961)  
Ozone depleting substances  
(4 items)a, c Environment  
(Article XX:b, d)  Copenhagen and Beijing Amendment to 
Montreal Protocol on Substances that Deplete 
the Ozone Layer, Import Regime Communiqué 
No. 2015/1  
Colouring matter  
(1 item)  Health  
(Article XX:b)  Law No. 1593 on the Protection of Public Health; 
Regulation on Special Conditions of Foodstuffs 
and Supplies and Objects Concerning Public 
Health; Import Regime Communiqué 
No. 2007/15 Add II (List)  
Scheduled chemical weapons in  
I and II of the Convention  
(4 items)c Environment  
(Article XX:b, d)  The Convention on the Prohibition of the 
Development, Production, Stockpiling and Use of 
Chemical Weapons and their Destruction; 
Import Regime Communiqué No. 2015/1  
Measurement instrumen ts not 
conforming to Turkish legal 
norms (non -metric or double 
standard)  
(6 items)  Compliance with 
domestic law  
(Article XX:d)  Law No. 3516 on Standards and Accords  
                                               
32 Cabinet Decision N o. 2015/7511  of 8 April 2015.  
33 Ministry of Finance online information. Viewed at: http://www.gep.gov.tr/tmp/Gep1.pdf . 
34 Article 6 (4) of Law No. 5602. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Description  Invocation of WTO 
Article  Domestic/international  
Arms and ammunition, 
propellant powders, prepared 
explosives, fuses, caps igniters 
detonat orsa 
(3 items)  Security  
(Article XXI:b(i),(ii))  Law on Firearms (No. 6136 of 1953); Import 
Regime Communiqué No. 2011/2d 
Gambling instruments (except 
for specified tourism purposes)a 
(1 item)  Public morals  
(Article XX:a)  Law No. 1072 on Gambling Instrumen ts like 
Roulette, Tilt, and Pinball  
Products making illegal use of a 
trade mark  
(all industrial products)  Compliance with 
domestic law; IAb 
(Article XX:d,h)  
 
Public morals  
(Article XX:a)  Paris Convention 1883 annexed to the Law of 
1930 on Accession to 192 5 Hague Agreement on 
International Industrial Property (1925); 
Statutory Decree No. 556 on the Protection of 
Trademarks;  
Customs Law (No. 4458 of 1999)  
Soil, leaf, stem, straw, and 
natural manure used for 
agricultural purposes (excluding 
turf and perlite s cultivated in 
culture environment)  Health  
(Article XX:b)  Regulation on Agricultural Quarantine  
Spawn of silk -worm  .. Law No. 859 on Cultivation and Sale of Silk -
worm and Silk -worm Spawn  
.. Not available.  
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.  
d Following an amendment to related legislation, private companies are also authorized to import 
products within the scope of Import Regime Communiqué No. 2011/2.  
Source:  WTO Secretariat, based on information provided by the authorities.  
3.1.7.2   Import restrictions and licensing  
3.54.  Various goods are subject to import licensing, inter al ia, to enforce compliance with 
international conventions, and for national security or public/worker safety (Table 3.16). There are 
no restrictions on the importers eligible to apply for import licences. In all cases the licensing 
requirements apply to goo ds imported from all countries, except for certain fertilizers imported 
from the EU (see below).  
3.55.  Since Turkey's previous review, the EU has been exempt from import licensing requirements 
applied to certain fertilizers. Additionally, import licensing requi rements have been removed on a 
wide range of household machines, telecommunications, television, photographic and broadcasting 
apparatus; motor vehicles, bicycles, carriages for babies and disabled persons; medical apparatus; 
hydro shower systems and exerc ising apparatus which were in place to ensure adequate after -sale 
services and to ensure imports conform with the national telecommunications network.  
3.56.  Over the review period the EU has posed questions to Turkey in the WTO Committee on 
Import Licensing abou t its notification circulated in February 201435, and has asked for clarification 
on the purpose of its licensing requirement on sugar substitutes as well as on certain licensing 
requirements which were not included in its recent notification, na mely: its r egime for old 
second -hand renovated goods; its surveillance licence regime on imports of certain products; and 
its certificate of conformity regime for supplying non -fuel petroleum products from domestic and 
foreign sources.36 Turkey has responded in writin g to these questions.37 
                                               
35 WTO document G/LIC/N/3/TUR/13.  
36 WTO documents G/LIC/Q/TUR /7, 3 April 2014 and G/LIC/Q/TUR/9, 3 March 2015.  
37 WTO documents G/LIC/Q/TUR/8, 31 October 2014 and G/LIC/Q/TUR/10, 27 April 2015.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.16 Imports requiring a licence, 2015  
Description (legal basis and number of tariff 
lines affected)  Requirements and rationale  
Radioactivity -related items: including various ores , 
chemical elements and containers for transporting 
radioactive materials  
(Import Communiqué 15/1, Official Gazette (OG) 
31.12.2014, No. 29222bis)  
 Imports only permitted with the approval of the 
Turkish Atomic Energy Authority.  
Reason: to ensure patient  security against the 
probable harmful effects of radioactivity.  
Certain sugar substitutes  
(Import Communiqué 15/1, OG 31.12.2014, 
No. 29222bis)  Requirement for an eligibility certificate issued by the 
Turkish Sugar Authority. Imports of some of these 
products are controlled by the Ministry of Food, 
Agriculture and Livestock. Provided that the Turkish 
Sugar Authority sends an official letter of conformity 
to the Ministry of Food, Agriculture and Livestock 
(MFAL); MFAL performs food safety controls. Lette r of 
conformity is not required for the sugar imported 
under inward processing regime.  
Energy sector:  
Electricity and natural gas  
 
 
Petroleum and LPG  Imports are only allowed by companies licensed by 
the Energy Market Regulatory Authority (EMRA) in 
order to ensure effective operations in market 
activities and to comply with relevant legislation.  
Imports are only allowed by companies licensed by 
EMRA in order to prevent the unorthodox use of those 
items out of purpose and to ensure fuel quality.  
Maps and h ydrographical maps of all kinds and digital 
maps and map information recorded on magnetic or 
optical data  
(Import Communiqué 15/1, OG 31.12.2014, 
No. 29222bis)  
 Approval required from the Commandership of 
Maritime Forces for the importation of sea maps and  
from the Ministry of National Defence, the General 
Commandership of Cartography for other items.  
Reason: to provide correct information to the public.  
 
Various motor vehicles and trailers  
(Import Communiqué 15/1, OG 31.12.2014, 
No. 29222bis.)  
 Approval required from the Ministry of Science 
Industry and Technology.  
Reason: to ensure the suitability of imported vehicles 
for highways.  
 
Civil aircraft -related items  
(Import Comm uniqué 15/1, OG 31.12.2014, 
No. 29222bis)  Approval required from the Ministry of Transportation, 
General Directorate of Civil Aviation.  
Reason: to prevent the use of imported goods in 
areas other than civil aviation.  
 
Various armaments, including technical ammonium 
nitrate; propellant powders; prepared explosives; 
certain fuses and de tonators; fireworks and other 
pyrotechnic items; knives; binoculars, monoculars 
and telescopic sights for fitting to arms; lasers; 
various firearms and munitions.  
(Import Comm uniqué 15/1, OG 31.12.2014, 
No. 29222bis)  
 Approval required from the General Dir ectorate of 
Security within the Ministry of Interior.  
Reason: to protect national security and public safety.  
Various chemical and other substances which could 
affect worker health (including benzole, toluole, 
solvent naptha, light crude oils which distil  at a 
certain temperature; white spirit, hexane, o -xylene, 
m-xylene, p -xylene, mixed xylene isomers; various 
solvents and thinners).  
(Import Communiqué 15/1, OG 31.1 2.2014, 
No. 29222bis)  
 Approval required from the Institute of Workers' 
Health and Labour S ecurity within the Ministry of 
Labour and Social Security.  
Reason: protect workers' health from the harmful 
effects of these goods.  
Banknotes and related items, papers of securities; 
papers for printing cheque books, share certificates, 
bonds and other ca pital market instruments; and 
capital market instruments printed abroad.  
(Import Comm uniqué 15/1, OG 31.12.2014, 
No. 29222bis)  Approval required either from the Central Bank of 
Turkey (for the importation of banknotes and 
securities papers (with certain ex clusions)) or the 
Board of Capital Markets (for papers for printing: 
cheque books, share certificates, bonds and other 
capital market instruments as well as capital market 
instruments printed abroad).  
Reason: to ensure confidence for the persons in the 
capital markets.  
 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Description (legal basis and number of tariff 
lines affected)  Requirements and rationale  
Fertilizers  
(Import Comm uniqué 15/1, OG 31.12.2014, 
No. 29222bis)  Approval required from the Ministry of Food, 
Agriculture and Livestock.  
Reason: to properly manage resources used in 
agricultural production that may cause damage to the 
health or lifecycle of plants, animals or humans when 
they are treated without control.  
 
Endangered species of wild fauna and flora  
(Foreign Trade Communiqué 2011/1, OG 27.02.2011, 
No. 27859bis)  A Convention on International Trade in Endangered 
Species of Wi ld Fauna and Flora (CITES) document 
issued by the Ministry of Food, Agriculture and 
Livestock or the Ministry of Environment and 
Urbanization is required for importation.  
Source:  WTO document G/LIC/N/3/TUR/14, 28 September 2015 ; and information provided b y the 
authorities.  
3.1.8   Contingency measures  
3.1.8.1   Anti-dumping and countervailing measures  
3.57.  There have been no changes to Turkey's laws and i mplementing regulations on 
anti-dumping and countervailing measures over the review period. These are: Law No. 4412/1999 
on th e Prevention of Unfair Competition in Imports; Decree No. 13482/1999 on the Prevention of 
Unfair Competition in Imports, amended by Decree No. 9840/2005; and the Regulation on the 
Prevention of Unfair Competition in Imports, amended in 2002 and 2006.  
3.58.  As re ported in Turkey's previous review, the Directorate General of Imports of the Ministry 
of Economy is in charge of preliminary examination upon complaint or it may initiate proceedings 
ex officio.38 One anti -dumping investigation has been initiated ex offici o with respect to the United 
States on cotton. Should the Directorate General of Imports conclude that an investigation is 
justified, it will formalize a recommendation to this effect to the Board of Evaluation of Unfair 
Competition in Importation which, i f it concurs, will authorize the Directorate General to carry out 
the investigation.39 The Board may make proposals in the course of an investigation, evaluate the 
results, and submit decisions on the imposition of provisional and/or definitive measures to the 
Minister of Economy for approval. Provisional measures may be imposed no earlier than 60 days 
from the initiation of an investigation, and their duration is limited to four months (extendable to 
six months in certain circumstances). Definitive measures  remain in force for five years from the 
date of imposition or from the conclusion of the most recent review covering both dumping and 
injury.40 
3.59.  Turkey remains a significant user of the anti -dumping instrument. Over the period 1995 to 
2014, it was ranked in  10th place among WTO Members in terms of the number of anti -dumping 
investigations initiated and in 7th place in terms of the number of anti -dumping measures imposed. 
Most of these measures affected tariff lines in HS Sections VII (plastics and rubber and  articles 
thereof), XI (textiles and textile articles), and XV (base metals and articles thereof).41 As of 
September 2015, Turkey had anti -dumping measures in force against 23 WTO Members. China 
was subject to the most numerous measures, followed by Indones ia, Chinese Taipei, India, 
Malaysia, Thailand, and Viet Nam. Over the review period, several existing anti -dumping measures 
have been extended (Table A3.2). Various measures in place include  anti-circumvention measures.  
                                               
38 A complaint made "by or on behalf of the domestic industry" must fulfil the requirements laid down in 
Article 5.4 of the W TO Anti -dumping Agreement. Examinations must be completed within 45 days, and 
decisions to initiate an investigation must be published in the Official Gazette . The Turkish authorities may 
decide to initiate an investigation ex officio  if the affected indus try is fragmented with an exceptionally large 
number of producers, provided sufficient evidence exists to indicate dumping, injury, and a causal link.  
39 The Board is headed by the Director General or the Deputy -Director General of Imports and 
comprises re presentatives from the Ministry of Food, Agriculture and Livestock; the Ministry of Science, 
Industry and Technology; the Ministry of Development; the Ministry of Customs and Trade; the Union of 
Chambers and Commodity Exchanges of Turkey; the Union of Cham bers of Agriculture; and the relevant head 
of department in the Directorate General of Imports. The Directorate General acts as the secretariat of the 
Board.  
40 WTO document WT/TPR/S/259/Rev.1, 7 March 2012.  
41 WTO statistics on anti -dumping. Viewed at: https://www.wto.org/english/tratop_e/adp_e/adp_e.htm . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.60.  Over the review period, there has be en considerable anti -dumping activity. Since the 
beginning of 2012, 25 new investigations have been initiated and 14 new measures have been 
imposed; many of these have affected more than one WTO Member (Table A3.2). Additionally, 
various existing anti -dump ing measures have been extended (Table A3. 3). Since 2012, a concern 
has been raised by the United States in a meeting of the Committee on Anti -Dumping Practices 
about Turkey's investigation on cotton.42 
3.61.  Turkey continues to impose countervailing duties on PE T films originating in India (originally 
imposed on 22 March 2009). These duties range from 4.25% to 21.61%.43 Recently, a 
countervailing investigation has been initiated on 15 May 2015 regarding seamless tubes, pipes 
and hollow profiles of iron (other than  cast iron) or steel (HS 7304) products originating from 
China.  
3.1.8.2   Safeguard measures  
3.62.  Turkey's legal framework for the imposition of safeguard measures consists of Decree 
No. 2004/730544, amended by Decree No. 2007/1285045 and the Regulation on Safeguard 
Measur es for Imports, as revised in 2011 and 2013.46 The 2013 amendment extends the 
investigation period of a safeguard measure in two respects. Firstly, following the announcement 
of the initiation of an investigation a 40 -day, rather than 30 -day, period is allo wed for interested 
parties to submit their views in writing, provide information, and apply to be heard orally. 
Secondly, while the investigation period remains the same (9 months), this period can now be 
extended for six months in exceptional circumstance s (rather than two). With respect to the 
duration and review of safeguard measures, the 2013 amendment clarifies that a new 
investigation to extend the duration of a safeguard measure may be initiated either upon 
application or ex officio.47 
3.63.  As reported in Turkey's previous review, the authority to propose, apply and monitor 
safeguard measures rests with the Ministry of Economy. The Board for the Evaluation of Safeguard 
Measures for Imports decides, inter alia , whether to initiate an investigation and whethe r to adopt, 
review, extend, modify or abolish any provisional or definitive safeguard measures. It also 
determines the form, extent and duration of such measures. The duration of a safeguard measure, 
including any provisional measure, may not exceed four y ears unless the measure is extended. 
The total period of application of a safeguard measure must not exceed ten years.48 
3.64.  Turkey has been the third biggest user of safeguard measures since the WTO's inception, 
initiating 21 safeguard investigations over the period 1 January 1995 to 30 April 2015 and taking 
14 safeguard actions over the same period.49 
3.65.  Since the beginning of 2012, Turkey has launched f ive safeguard investigations. At 
mid-October 2015, two of these were still ongoing , definitive safeguard measure s had been 
imposed on another two, and one investigation was completed with no definitive measure 
imposed . Existing safeguard measures were extended in eight cases; and of these, one expired in 
2014 (footwear) and three  expired in 2015 (matches , motorcycle s, and certain electrical 
appliances ) (Table  A3.4). On 31  December 2012, ahead of schedule, Turkey terminated the 
safeguard measure on cotton yarn. The main exporters of the products subject to safeguard 
measures are Pakistan (polyethylene terephthalate); Republic of Korea, Spain and Belgium 
                                               
42 WTO document G/ADP/M/48, 6 August 2015.  
43 WTO document G/SCM/N/281/TUR, 16 March 2015.  
44 Decree No. 2004/7305 published in the Official  Gazette  No. 25476 of 29 May 2004.  
45 Decree No. 2007/12850 published in the Official Gazette  No. 26721 of 5 December 2007.  
46 Regulation on Safeguard Measures for Imports published in the Official Gazette  No. 254486 on 
8 June 2004, revised by the Regulatio n on Amendment of the Regulation on Safeguard Measures for Imports 
(Official  Gazette  No. 27961 of 11 June 2011 and Official Gazette  No. 28836 of 29 November 2013). As reported 
in Turkey's previous review, the 2011 amendment extends the scope of safeguard m easures to imports of 
parts of components of a product subject to a safeguard measure, or parts or components incorporating the 
value added to be safeguarded by the imposed measure.  
47 WTO document G/SG/N/1/TUR/3/Suppl.2, 17 December 2013 (amendment to regu lation) and 
G/SG/N/1/TUR/3, 16 July 2004 (original text of regulation).  
48 WTO document WT/TPR/S/259/Rev.1, 7 March 2012.  
49 Over the same period India took 19 and Indonesia 16. WTO online information. Viewed at: 
https://www.wto.org/english/tratop_e/safeg_e/ SG-MeasuresByRepMember.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  (terephthalic acid); China (travel goods, handbags and similar containers; spectacle frames; and 
certain electrical appliances); and Republic of  Korea (wallpapers and similar wallcoverings).  
3.66.  Over the review period, Turk ey has responded to ques tions posed by India in the 
WTO Committee on Safeguards regarding certain aspects of determination of serious injury in the 
context of Turkey's notifications on polyethylene terephthalate and certain types of cotton yarn.50 
More rece ntly concerns have also been raised about Turkey's safeguard investigations or measures 
on polyethylene terephthalate; printing, writing and copying paper; terephthalic acid; wallpaper 
and similar wallcoverings; and, transmission apparatus incorporating re ception apparatus (cellular) 
portable telephone.51 
3.67.  In June 2013, Turkey notified the WTO of its proposed suspension of equivalent concessions 
on walnuts from Ukraine in response to Ukraine's increased duties on motor cars.52 Following a 
later decision by Ukr aine to liberalize these safeguard measures, Turkey also decided to liberalize 
its proposed suspension of concessions on walnuts.53 
3.1.9   Standards and other technical requirements  
3.1.9.1   Developments  
3.68.  During the review period Turkey has continued to focus on harmonizing  its technical 
legislation with that of the EU, a process that has been ongoing for more than a decade within the 
framework of the Turkey –EU Association Council Decision No. 1/95 that established the customs 
union. This undertaking requires that technical barriers to trade arising from different regulatory 
practices on goods be eliminated. Harmonization is a process and it is expected to continue as long 
as new legislation of the E U is prepared. Prior to this harmonization effort, Turkey was 
implementing na tional technical regulations mostly based on international standards.  
3.69.  Turkey's main law on technical regulations is the Law Relating to the Preparation and 
Implementation of the Technical Legislation on Products. However, the Ministerial Decree on the 
Regime Regarding Technical Regulations is the main legislation on technical regulations and 
product safety for the products subject to foreign trade and it was amended in 2013.54 Those 
amendments were not significant and they were to further integrate regulatio ns on product safety 
and provide greater transparency.  
3.1.9.2   Policy and framework  
3.70.  The Ministry of Economy has the overall responsibility for coordinating technical regulations 
in Turkey. I t is responsible for harmonizing Turkey's horizontal technical legislation  with that of the 
EU, with a particular emphasis on the area of product safety. Turkey's horizontal technical 
legislation, as prepared by the Ministry of Economy, includes:  
• the Law Relating to the Preparation and Implementation of the Technical Legislati on 
 on Products (Law No. 4703);  
• the Regulation Relating to Market Surveillance and the Inspection of Products;  
• the Regulation on the Notification of Technical Legislation and Standards between 
 Turkey and the European Union;  
• the Regulation on Mutual  Recognition in the Non -Harmonized Area;  
• the Regulation on CE Marking; and  
• the Regulation on Conformity Assessment Bodies and Notified Bodies.  
3.71.  On the other hand, in the area of product safety, the General Product Safety Directive is to 
be harmonized by  the Ministry of Economy and Ministry of Customs and Trade after a revision of 
Law No. 4703. Other ministries and authorities also have a role in TBT matters in Turkey (Box 1).  
                                               
50 WTO documents G/SG/Q2/TUR/6/Rev.1, 11 May 2012 and G/SG/Q2/TUR/6, 4 May 2012.  
51 WTO document G/SG/M/46, 24 March 2015 and  WTO document  G/SG/M/47, 1 September 2015.  
52 WTO document G/L/1028 and G/SG/N/12/TUR/4, 12 June 2013.  
53 WTO document G/L/1028/Suppl.1 and G/SG/N/12/TUR/4/Suppl.1, 4 August 2014.  
54 Decree No. 2013/4284.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Box 3.1 Government bodies and thei r area of activity on TBT matters  
Ministry of Science, Industry and Technology  Lifts, machinery, electronics, motor vehicles, 
explosives for civil use, hot water boilers  
Ministry of Food, Agriculture and Livestock  Agricultural products, feed, fertilizers  
Ministry of Health  Medical devices and cosmetics  
Ministry of Environment and Urbanization  Solid fuels and construction products  
Ministry of Transport, Maritime Affairs and 
Communications  Recreational crafts, marine equipment  
Ministry of Customs and Tra de Toys, detergents, chemical products, furniture, 
lighters, stationery  
Ministry of Labour and Social Security  Personal protective equipment  
Tobacco and Alcohol Market Regulatory Authority  Alcoholic beverages  
Energy Market Regulatory Authority  Fuels 
Information and Communication Technologies 
Authority  Radio and telecommunications terminal equipment  
Source:  Information provided by the authorities.  
3.72.  The Ministerial Decree on the Regime Regarding Technical Regulations ensures uniformity of 
implementation, coordination, follow -up, notification, and transparency of technical regulations for 
foreign trade. Regulations, communiqués, and the instructions given to the related authorities by 
the Ministry of Economy concerning foreign trade are pub lished pursuant t o this Decree.  
3.73.  The main laws or regulations on standards have been in place since 2002 and have not 
generally undergone significant revision since that time (Table 3.1 7). Turkey's communiqués are 
numerous, with many being issued in 2015, and each one regul ates different product groups. They 
aim to ensure that imported products comply with the requirements of protecting human health 
and safety, animal or plant life or health, the consumer, or the environment. Those communiqués 
remain in force for one year an d every year in December they are republished by the public 
authorities  (Table A3.5). 
Table 3.17 Turkey's main laws and regulations on technical regulations and standards, 
2015  
Subject  Overview  Reference  
The Preparation and 
implementation of the 
technical legislation on 
products  Basic law on technical regulations  Law No. 4703 of 
11 July 2001 
Regime Regarding 
Technical regulations  Basic law on technical regulations, including 
amendments  Law No. 2013/4284  
CE marking  Specifies the conformity assessment modules for the 
methods of affixing the CE marking to the products, 
and the procedures and principles for its use  Official Gazette  of 
23 February 2012  
Conformity assessment 
bodies and notified 
bodies  Sets out mi nimum qualifications, operational rules and 
procedures and notification to the relevant parties of 
the conformity assessment bodies which examine and 
certify the conformity of a product to the relevant 
technical legislation by means of conformity 
assessmen t Official Gazette  of 
23 February 2012  
Market surveillance of 
goods  Sets out the principles and procedures for surveillance 
and inspection of the conformity of a product with the 
requirements related to safety at the stage of placing it 
on the market and measures to be taken after 
surveillance and inspection  Regulation 
No. 2001/3529, Official 
Gazette  No. 24643 of 
17 January 2002  
Exchange of 
information on 
technical legislation on 
goods and standards 
between turkey and the 
European Union  Provides an inform ation exchange between Turkey and 
the European Union on technical legislation and 
standards  OJ 3 April 2002, Official 
Gazette  No. 24715 of 
3 April 2002  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Subject  Overview  Reference  
Mutual recognition in 
the non -harmonized 
area Lays down the rules and procedures to be followed 
when ta king decisions that may hinder the free 
movement of goods which are in the non -harmonized 
area and lawfully manufactured or put into free 
circulation in a Member State of the European Union; 
and the rules on the drafting and screening of the 
national techn ical legislation in the non -harmonized 
area and inserting of the mutual recognition clause into 
this legislation  Official Gazette  of 
23 February 2012  
Procedures and 
principles regarding the 
domestic and 
international trade of 
alcohol and alcoholic 
drinks  Provisions for the trade of alcohol and alcoholic drinks  Official Gazette  No. 28732 
of 11 August 2013  
Source:  Ministry of Economy, online information. Viewed at: 
http://www.economy.gov.tr/portal/faces/oracle/webcenter/portalapp/pages/content/htmlViewer.jsp
x?contentId=UCM%23dDocName%3AEK -175590&parentPage=urun&contentTitle=General%20 
Rules%20and%20Procedures%20on%20Tec hnical%20Regulations%20and%20Standarts&countryNa
me=&_afrLoop=2384957025096754&_afrWindowMode=0&_afrWindowId=a372itc7m_200#!%40%4
0%3FcountryName%3D%26_afrWindowId%3Da372itc7m_200%26_afrLoop%3D238495702509675
4%26contentId%3DUCM%2523dDocName%253AEK -175590%26p arentPage%3Durun%26content 
Title%3DGeneral%2BRules%2Band%2BProcedures%2Bon%2BTechnical%2BRegulations%2Band%2
BStandarts%26_afrWindowMode%3D0%26_adf.ctrl -state%3Da372itc7m_254 , and information 
provided by the authorities.  
3.74.  Turkey prepares technical regulatio ns based on international standards in non -harmonized 
areas and includes a mutual recognition clause in the legislation which maintains free circulation of 
goods between Turkey and the EU. In the non -harmonized areas, where there is no common EU 
technical legislation that regulates the common market, the rights and obligations of economic 
operators supplying goods to the EU market from Turkey stem from the Customs Union. The 
Commission interpretative communication No. 2003/C 265/02 makes it clear that the m ember 
State must allow the placement of a good in the market if it was lawfully manufactured or 
marketed in another member State or in Turkey. Turkey has been a member of the notification 
mechanism since harmonization of Directive 83/189/EEC (replaced previous Directive 98/34/EC) . 
This Regulation covers the principles and procedures for notification of technical legislation and 
standards to the EU and for the transmission of the notifications received from th e EU to the public 
authorities.  
3.1.9.3   Alignment with th e EU 
3.75.  At the horizontal level, Turkey has maintained legislation since 2002 t o align itself with 
EU legislation.55 Pursuant to changes by the EU in 2008, Turkey revised its regulations in 2012 to 
conform in the areas of CE marking, conformity assessment bodi es, and notified bodies.  
3.76.  Further, the relevant Turkish authorities have aligned the sector -specific EU directives into 
Turkish laws and regulations , including around 250 technical regulations . Also, other EU directives 
were adopted pursuant to Decision No.  2/97 of 1997, covering products such as radio and 
telecommunication terminal equipment, batteries and accumulators, toys, personal protective 
equipment, construction products, medical devices, gas appliances, civil explosives, and lifts.  
3.77.  According to EU D irective No. 98/34/EC, member States have to notify each other and the 
European Commission on draft texts of national technical legislation in non -harmonized areas. This 
Directive was incorporated into the Turkish legal system in 2002, and since 2004 Turke y has 
participated in this notification system. Since that time, Turkey has notified 58 national laws to the 
Commission as being non -harmonized. Since the repeal of Directive 98/34/EC by Directive (EU) 
2015/1535, Turkey is still reviewing this directive to  see if legislative changes are required or not.  
3.78.  In terms of dialogue, a technical working group was established under the Customs Union 
Joint Committee in 2004, which serves as a platform for the parties to discuss and look for 
                                               
55 Law No. 4703.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  mutually agreed solutions t o issues concerning the technical legislation on products. The working 
party meets twice a year.  
3.1.9.4   Controls at the border  
3.79.  Turkey's import control system has been continually modified since 2004 with the aim of 
achieving harmonization with the EU technical le gislation. Thus, the Ministerial Decree on the 
Regime Regarding Technical Regulations and related legislation have been continuously updated to 
allow for the relevant EU legislation to be implemented in Turkey. Depending on the rate of this 
transposition p rocess, the relevant Turkish authorities have started to carry out import checks for 
certain product groups under the new system of rules.  
3.80.  The import control system of Turkey relies on product -specific communiques for the rules, 
conditions, and required d ocuments for products to be imported into Turkey. The product -specific 
communiques are published annually.  
3.81.  In 2011, Turkey started pilot implementation of a risk -based trade control system, TAREKS, 
to carry out safety checks on imported and exported goods on the basis of risk. Consequently, 
since January 2012, conformity assessment of certain imported goods (toys, medical devices, 
telecommunication products, personal protective equipment, batteries and accumulators, 
construction products, and shoes) and as of August 2012, transactions related to cotton controls 
have been taken under the scope of TAREKS. Finally, since 15 February 2013 conformity 
assessment of certain imported goods such as machinery, lifts, pressure vessels, electrical 
equipment, gas applian ces and also some industrial raw materials have been incorporated in 
TAREKS.  
3.82.  TAREKS introduces a new risk assessment understanding and emphasizes the control of 
"risky" products while leaving behind the era of checking each product at each arrival at custo ms. 
TAREKS reduces bureaucratic procedures as well as the number of documents to be submitted 
during the control process and replaces the paper documentation. It also contributes to effective 
traceability and market surveillance schemes.  
3.83.  Quality checks fo r agricultural products are also part of the control process pursuant to 
Communique No. 2015/21 on Commercial Quality Controls on Certain Agricultural Produce at 
Export and Import Stage. In accordance with the Communiqué No. 2012/25, cotton is also subject  
to commercial quality controls at export and import stages and in the domestic market as well. 
See section 3.2.4.2 for details on the export quality control of agricultural products.  
3.1.9.5   Quality infrastructure  
3.84.  Turkey has gradually been aligning its quality i nfrastructure with that of the EU since 1996. 
This includes alignment of standardization, accreditation, conformity assessment, certification, 
calibration and metrology. The Turkish Standards Institute, TSE, is the main national standards 
body that has bee n active in this area since the 1950s. TSE is a full member of the International 
Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the 
European Committee for Standardization (CEN), and the European Committee for E lectrotechnical 
Standardization (CENELEC).  
3.85.  In terms of accreditation, the Turkish Accreditation Agency (TURKAK) is Turkey's 
accreditation body and provides an accreditation system equivalent to that of the EU and in 
compliance with internationally recogniz ed principles. To enhance international cooperation, 
TURKAK has seven multilateral agreements for the recognition of its accreditation activities. The 
success of TURKAK has contributed to the assignment of notified bodies and as of today there are 
35 Turki sh notified bodies under 14 new approach directives , covering such items as lifts, 
machinery, medical devices and construction products, etc.  There is also a technical assessment 
body under the Construction Products Regulation.  
3.86.  In the conformity assessment  area, Turkey's Conformity Assessment Association (UDDer) 
was established in 2006 as an umbrella organization for conformity assessment bodies in Turkey. 
It has 87 members representing different stakeholders. UDDer's main roles are to support 
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  activities recognized in domestic and international markets, and ensure coordination between 
public and private bodies.  
3.87.  Turkey's National Metrology Institute (UME) is involved  in scientific metrology whereas the 
Ministry of Science, Industry and Technology is the responsible authority for legal metrology.  
Turkey has signed  MRAs (mutual recognition arrangements) with approximately 40 countries and 
international organizations on metrology. Turkey has a regulation on measurement instruments 
that transposes the EU Directive on measurement instruments (2004/22/EC), thus all 
measurement instruments under the scope of this regulation should bear the CE marking in the 
Turkish market.  
3.1.9.6   Market surveillance  
3.88.  In Turkey, all products, whether imported or domestically produced, are subject to market 
surveillance activities carried out by ten public authorities. The Ministry of Economy is the 
coordinating body for market surveillance at the natio nal level and it has two mechanisms – the 
Market Surveillance Coordination Board (MSCB) and the Market Surveillance and Product Safety 
Assessment Board to carry out surveillance duties.  
3.89.  The MSCB ensures coordination among MSAs for the effectiveness of mar ket surveillance 
activities, proposes solutions to the problems faced by MSAs regarding market surveillance, and 
takes advisory decisions on market surveillance when necessary. MSCB is comprised of market 
surveillance authorities; NGOs and private sector a ssociations participate as observers to its 
meetings. The Market Surveillance and Product Safety Assessment Board was established in 2011 
in order to define the main goals and strategies for implementation of activities in this area and to 
take high -level decisions. In a recent meeting, the Assessment Board adopted Turkey's National 
Market Surveillance Strategy for 2015 –17, to provide direction on improving the market 
surveillance system in Turkey.  
3.90.  The Regulation on Market Surveillance provides the legal f ramework for market surveillance 
activities in Turkey.56 In June 2013, the Regulation amending the current one was published in the 
Official Gazette . With the amendment, responsibilities and powers of market surveillance 
authorities are strengthened, the an nouncement procedures for unsafe products are clearly set, 
and the procedures of communication with the producers/distributors about the measures already 
taken or to be taken are included in the Regulation. With these amendments some provisions of 
the Regu lation 765/2008 regarding market surveillance are transposed into the Turkish legal 
order.  
3.91.  In order to improve the reporting of information about unsafe or non -compliant products, 
the Ministry of Economy established the National Market Surveillance Informa tion System 
(PGDBİS) in July 2013.57 Thus, market surveillance authorities are now required to regularly notify 
surveillance activities to this single Market Surveillance Information System, which is available 
only to market surveillance authorities in Turk ey. 
3.1.9.7   WTO and Bilateral Agreements  
3.92.  Turkey's DG Product Safety and Inspections under the Ministry of Economy  acts as the 
national TBT Enquiry Point for technical regulations and conformity assessment procedures and 
coordinates Turkey's TBT notifications to th e WTO. Each public authority, in their area of 
responsibility, assesses the draft legislation to determine whether a notification is necessary. 
Between May 2012 and December 2015 Turkey made 65 notifications. One issue, concerning 
alcohol and alcoholic bev erages, was raised as a specific trade concern by other Members.58,59 
3.93.  As of July 2015, Turkey signed technical cooperation agreements on technical regulations, 
standardization, conformity assessment, metrology and accreditation with China, Ukraine, 
Lebanon, Bulgaria, Iran, Azerbaijan and Israel. Turkey's policy is to sign technical cooperation 
                                               
56 Regulation No. 2001/3529 , Official Gazette  No. 24643 of 17 January 2002.  
57 Official Gazette  No. 28720  of 27 July 2013 . 
58 WTO documents G/TBT/ N/TUR/41 and G/TBT/N/TUR/42, 6 August 2013; G/TBT/N/TUR  41/Add.1 and 
G/TBT/N/TUR/42/Add.1, 29  August 2013; and G/TBT/N/TUR/41/Add.2, 25 March 2014.  
59 WTO TBT Information Management System online database.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  agreements with countries that play an important role in Turkey's exports with the aim of 
removing technical barriers to trade for unhindered market access. Turkey has also initiated 
negotiations with Iraq, the Kyrgyz Republic, and the Russian Federation in this regard.  
3.94.  In July 2011 Turkey and EFTA member countries concluded a protocol on Mutual 
Recognition of Conformity Assessment of Products (Protocol E) aimed at faci litating free circulation 
of goods between Turkey and EFTA by mutually recognizing their conformity assessment bodies. 
The Protocol covers all harmonized product sectors traded between EFTA states and Turkey and to 
sectors covered by the EC -Swiss MRA. Unde r the Protocol, the parties mutually accept the 
conformity assessment procedures carried out by conformity assessment bodies notified or 
accepted under the EEA Agreement, the EC -Swiss MRA, or the EC -Turkey Customs Union.  
3.95.  Also in Turkey's recently concluded  FTAs and ongoing FTAs the policy of Turkey is to include 
a specific chapter on TBT that may include provisions that go beyond WTO TBT commitments. 
These provisions involve deeper cooperation, coordination and transparency mechanisms; 
especially regarding conformity assessment procedures, market surveillance, transparency of 
technical legislation, and mutual recognition commitments in specific sectors.  
3.1.10   Sanitary and phytosanitary requirements  
3.1.10.1   Overview and alignment with the EU  
3.96.  Similar to the changes that hav e occurred for TBT, Turkey has been focusing on 
harmonizing its SPS legislation with that of the EU during the review period. The Turkish legislation 
is partially aligned with the acquis under this chapter. In order to achieve full and efficient 
implementa tion of the acquis, Turkey continues with further legislative alignment. Turkey's 
Strategy for Transposition and Implementation of the Acquis Communautaire in Chapter 12 - Food 
Safety, Veterinary and Phytosanitary Policy into National Legislation, in parti cular its Annex I, 
contains detailed legislative measures to be taken.  
3.97.  Turkey has transposed and implemented some of the EU legislation covered under Chapter 
12. The remaining EU legislation will be transposed and implemented progressively in line with th e 
schedule given in the strategy before accession. On the other hand, provisions which address only 
EU member States are scheduled to be transposed and implemented upon membership.  
3.98.  These provisions include importation requirements related to measures for t hird countries, 
such as the use of third country lists, Commission decisions related to third countries, EFSA 
decisions and safeguard measures. Regarding the general principles of Regulation (EC) 
No. 178/2002, Turkey has already put into place the necessar y rules through the Law No. 5996 on 
Veterinary Services, Plant Health, Food and Feed. Safeguard measures adopted on the basis of the 
aforementioned Regulation (EC) No. 178/2002 are expected to be directly applied by the Ministry 
of Food, Agriculture and Li vestock (MFAL) upon accession to the EU.  
3.99.  Within the scope of harmonization of SPS matters with the EU, the legislation aligned by the 
MFAL is as follows:  
 Regulation on the Control of Foot -and-Mouth Disease, in accordance with Council 
Directive No. 2003/85/ EEC; 
 Regulation on Notifiable Animal Diseases and Notification of Them, in accordance with 
laying down the codes for the notification of animal diseases pursuant to Council 
Directive 82/894/EEC  and with EU Commission Decision No. 2005/176/EC;  
 Regulation on  Prevention and Fight against Avian Influenza, in accordance with Council 
Directive No. 2005/94/EC of 20 December 2005 and repealing Directive 92/40/EEC;  
 Regulation on Prevention and Fight against Newcastle  Disease, in accordance with 
EU Council Directive No. 92/66/EEC;  
 Regulation on Health Conditions of Aquatic Animals and Prevention and Fight against 
Aquatic Animal Diseases, in accordance with EU Council Directive on animal health WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  requirements for aquaculture animals and products thereof, and on the preve ntion and 
control of certain diseases in aquatic animals No. 2006/88/EC of 24 October 2006 and 
with Commission Decision No. 2008/946/EC of 12 December 2008;  
 Regulation on Identification, Registration and Monitoring of Bovine Animals, in 
accordance with Cou ncil Regulation No. 1760/2000/EC, Commission Regulation 
No. 494/98/EC, Commission Regulation No.1082/2003/EC, Commission Regulation 
No.911/2004/EC and Commission Decision No. 2006/28/EC;  
 Regulation on Identification, Registration and Traceability of Ovine Animals, in 
accordance with the Regulation establishing a system for the identification and 
registration of ovine and caprine animals and amending Regulation (EC) No. 1782/2003 
and Directives 92/102/EEC and 64/432/EEC No. 21/2004/EC and with the Regulation  as 
regards the minimum level of checks to be carried out in relation to the identification 
and registration of ovine and caprine animals No. 1505/2006/EC;  
 Regulation on Protection and Welfare of Animals to be used for Experimental and 
Scientific Purposes , in accordance with the provisions of the EU Directive on the 
protection of animals used for scientific purposes No. 2010/63/EC;  
 Regulation on Struggle with Brucellosis, in accordance with EU Council Directive 
No. 64/432/EEC and EU Council Directive estab lishing the Community criteria for 
national plans for the accelerated eradication of brucellosis, tuberculosis and enzootic 
leukosis in cattle No. 78/52/EEC and with the EU Council Directive that " Execute s 
Financial Measures in the  Community for Eradicatio n of Brucellosis in sheep and goats" 
and "Animal Health Issues that affect Int ra-Community Trade of sheep and goats " 
No. 91/68/EEC;  
 Regulation on Bovine Tuberculosis, in accordance with EU Council Directive 
No. 64/432/EEC and with EU Council Directive esta blishing the Community criteria for 
national plans for the accelerated eradication of brucellosis, tuberculosis and enzootic 
leukosis in cattle No. 78/52/EEC;  
 Regulation on General Provisions Concerning Welfare of Farm Animals, in accordance 
with EU Counci l Directive concerning the protection of animals kept for farming purposes 
No. 98/58/EC;  
 Regulation on Minimum Standards Regarding Protection of Laying Hens, in accordance 
with EU Council Directive laying down minimum standards for the protection of layin g 
hens No. 1999/74/EC and with EU Council Directive on the registration of establishments 
keeping laying hens No. 2002/4; and  
 Regulation on Minimum Standards for the Protection of Calves, in accordance with 
Council Directive 2008/119/EC laying down minimum  standards for the protection of 
calves.  
3.1.10.2   Legal overview  
3.100.   In 2010 Turkey enacted legislation to update many SPS provisions pursuant to Law 
No. 5996 on Veterinary Services, Plant Health, Food and Feed (2010). This law forms the main 
framework for SPS matters in Turkey. Thus, following its implementation, many of the regulations 
implementing this law were put into force during the review period (Table 3. 18). Under the Law 
No. 5996, more than 100 regulations have been prepared as secondary legislation.  
3.101.   The Law on Veterinary Services, Plant Health, Food and Feed is a comprehensive law 
setting out provisions on food and feed; plant health; and animal health, welfare, and zootechnics. 
The main elements of the law provide for the control of contagious diseases, iden tification 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 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.102.   Recent developments in the SPS regulatory environment include the regulation on the 
import and transit of certain live animals; this regulation determines the principles and procedures 
regarding preparation of the animal health conditions to be implement ed in the import and transit 
of certain live ungulate animals and lists of permitted countries.60 The Communiqué on Rules 
Regarding the Transhipment of Consignments of Products at Entry Veterinary Border Inspection 
Point provides for the minimum and maximum  periods and the information to be given by the 
person responsible for shipment regarding the transfer at the veterinary border control point for 
products intended to be imported into the country or to another country.61 
3.103.    If there is no EU equivalent legisl ation, SPS -related measures are developed in accordance 
with the standards, recommendations and guidelines determined by standard setting organizations 
which are recognized by the WTO.  
Table 3.18 SPS laws and regulations, 2011 -15 
Title Reference  
Law on Veterinary Services, Plant Health, Food and Feed  Law No. 5996 of 13 June 2010  
Regulation on Registration of Plant Protection Products  Official Gazette  No. 27885 of 
25 March 2011  
 
Regulation on Retail, Wholesa le and Storage of Plant Protection Products  Official Gazette  No. 27870 of 
10 March 2011  
 
Regulation on Agricultural Control Equipment and Machinery  Official Gazette  No. 27893 of 
2 April 2011  
 
Regulation on the Control of Plant Protection Products  Officia l Gazette  No. 27939 of 
20 May 2011  
 
Regulation on Classification, Packaging and Labelling of Plant Production 
Products  Official Gazette  No. 27885 of 
25 March 2011  
 
Regulation on Principles and Procedures Concerning Facilities Producing 
Plant Protection P roducts  Official Gazette  No. 27986 of 
6 July 2011  
 
Regulation on Pre -Notification and Veterinary Controls at the Entrance of 
Animals and Animal Products to the Country Regulation Governing the 
Organization of Veterinary Controls at the Entrance of Product s to the 
Country  Official Gazette  No. 28145 of 
17 December 2011  
Regulation on Animals and Products Subject to Veterinary Certificate at the 
Entrance to the Country  Official Gazette  No. 28149 of 
21 December 2011  
Regulation on Measures to be Taken for Moni toring Certain Substances and 
the Residues thereof in Live Animals and Animal Products  Official Gazette  No. 28145 of 
17 December 2011  
Regulation on Special Rules Regarding Official Control of Animal Food  Official Gazette  No. 28145 of 
17 December 2011  
Regulation on Registration of Establishments Producing of and utilising 
Good Manufacturing Practice for Materials and  Articles İntended to Come 
into Contact with Food  Official Gazette  No. 28373 of 
3 August 2012  
Regulation on Agricultural Quarantine  Official Gazette  No. 28131 of 
3 December 2011  
Regulation on Official Control of Plant Origin Food and Feed Import  Official Gazette  No. 28145 of 
17 December 2011  
                                               
60 Regulation on the Determination of Animal Health Rules for the Importation and Transit of Certain 
Live Ungulate Animals , Official Gazette  No. 29481 of 20 September 2015. 
61 Communiqué on Rules Regarding the Transhipment of Consignments of Products at Entry Veterinary 
Border Inspection Point , Official Gaze tte No. 29480 of  19 September 2015. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Title Reference  
Regulation on Issuing of Health Certificates for Food and Feed Subject to 
Export and Procedures to be Followed Concerning Export Products 
Returning to the Country  Official Gazette  No. 28123 of 
25 November 2011  
Regulation on Subjecting Wooden Package Materials to Heat Trea tment 
Process and their Marking  Official Gazette  No. 28132 of 
4 December 2011  
Regulation on Inspector of Agricultural Quarantine  Official Gazette  No. 27912 of 
21 April 2011  
Regulation on Fumiga tion of Agricultural Quarantine  Official Gazette  No. 27969 of 
19 June 2011  
Regulation on Feed Hygiene  Official Gazette  No. 28155 of 
27 December 2011  
Regulation on the Placing on the Market and Use of Feed  Official Gazette  No. 28155 of 
27 December 2011  
Regulation on Sampling and Analysis Methods for Official Control of Feed  Official Gazette  No. 28155 of 
27 December 2011  
Regulation on Feed Additives for Use in Animal Nutrition   Official Gazette  No. 28711 of 
18 July 2013  
Regulation Amending Regulatio n on Feed Hygiene  Official Gazette  No. 28519 of 
5 January 2013  
Regulation Amending Regulation on the Placing on the Market and Use of 
Feed Official Gazette  No. 28741 of 
20 August 2013  
Directive on Undesirable Substances in Animal Feed  Official Gazette  No. 28977 of 
19 April 2014  
Regulation Amending the Regulation on Live Animals and Products Thereof 
Subject to Veterinary Controls at the Entry into the Country  Official Gazette  No.29459 of 
28 August2015  
Regulation on the Determination of Animal Health R ules for the Importation 
and Transit of Certain Live Ungulate Animals  Official Gazette  No.29481 of 
20 September 2015  
Communiqué on Rules Regarding the Transhipment of Consignments of 
Products at Entry Veterinary Border Inspection Point  Official Gazette  No.29480 of 
19 September 2015  
Source:  Ministry of Food, Agriculture, and Livestock online information. Viewed at: 
http://www.tarim.gov.tr/GKGM/Menus/82/Other -Legislations . 
3.1.10.3   Framework  
3.104.   In Turkey, all SPS matters are under the auspices of the General Directorate of Food and 
Control of the Ministry of Food, Agriculture, and Livestock since restructuring occurred in 2011. 
Thus matters relating to plant health, animal health and welfare, and f ood and feed safety are all 
undertaken by the same directorate under the same Ministry. Prior to 2011, animal health and 
welfare and food safety were undertaken by the General Directorate of Protection and Control, 
Ministry of Agriculture and Rural Affairs . 
3.105.   The duties of the Directorate include providing safe food and feed, determining traceability 
at each stage of the process, registering producers of food and making controls, determining audit 
principles for feed and feed additives, identifying animals an d controlling their movement, 
determining health conditions for foreign trade, taking measures to protect consumers and public 
health, and determining the principles for the certification of laboratories. The Directorate also 
performs risk assessment for a ll SPS matters.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.106.   The General Directorate of Food and Control is also the WTO enquiry point for issues 
related to the Agreement on Sanitary and Phytosanitary Measures. During the period 
1 January  2012 to mid -November 2015, Turkey made 57 notifications (inclu ding addenda, a 
corrigendum, and two emergency notifications) to the WTO Committee on Sanitary and 
Phytosanitary Measures. One issue, on requirements for importing sheep meat, was raised several 
times as a specific trade concern. This matter was first rais ed in the SPS Committee in October 
2012 and resolved in March 2015. According to the authorities, the matter arose due to Turkey's 
veterinary health certificates having to be aligned with recommendations of the OIE and those of 
the European Union. After th e adoption of the Law on Veterinary Services, Plant Health, Food and 
Feed, Turkey prepared model health certificates for beef, bovine meat and livestock and fishery 
products in accordance with the Law and sent them to their trading partners.  
3.107.   During the rev iew period, as regards to plant health, Turkey has been in the process of 
implementing a national plant health programme and improving plant quarantine and plant 
passport activities. Activities regarding animal health have focused on the identification and  
registration of animals and tracking their movements. For food and feed safety, developments 
have occurred on the Turkish Food Codex and registration of food and feed establishments. The 
national plant health programme covers surveillance of pest and dise ases across the country via 
risk-based surveys and focuses on promotion of integrated pest management. Pest management 
activities are carried out according to the integrated pest management principles including early 
warning systems and biologic control. P esticide residue controls in some crops before harvest is 
also carried out. Establishment of pest -free areas, eradication activities, training of farmers, and 
issuing plant health certificates are also other main components of the national plant health 
programme. Registration and approval of food establishments and food safety criteria are 
regulated by related legislation.  
3.108.   Turkey is a member of the Codex Alimentarius Commission, and the World Organization 
for Animal Health (OIE), and a contracting party to the International Plant Protection Convention 
(IPPC). Turkey also collaborates with a number of regional or global partners in the area of SPS; 
these include the European Food Safety Authority (EFSA), Food and Agricultural Organization of 
the UN (FAO), the  European Medicines Agency (EMA), and the European and Mediterranean Plant 
Protection Organization.  
3.109.   As a member of IPPC, Turkey conducts all plant health activities in line with these 
standards. Further, Turkey is a member of the European and Mediterranean  Plant Protection 
Organization (EPPO), a regional plant health organization under IPPC, and thus has a role in 
technical panels and working groups of EPPO.  
3.110.   EFSA has a role in Turkey's pre -accession programme in order to increase preparedness of 
the compete nt bodies which are active in the fields relating to the work carried out by EFSA. 
Within the scope of pre -accession programme, there will be closer cooperation and data exchange 
between IPA countries, member States and EFSA; improved capacity and transfer  of knowledge on 
methodologies used by EFSA, in particular on risk assessment and risk communication, data 
collection and crisis handling; and increased awareness of EFSA's activities in IPA countries.  
3.1.10.4   Biosafety  
3.111.   In 2010 as part of its reform process to ali gn its SPS laws with the EU, Turkey enacted its 
new Biosafety Law62 which regulates the approvals of agricultural biotechnology products in 
Turkey.63 The law provides for a Biosafety Board to review and approve biotechnology products 
before they can enter th e Turkish market; the Biosafety Board was established in 2011. Following 
applications made by either gene owners or importers for genetically modified organisms and 
products thereof, the Biosafety Board forms scientific committees and makes its decisions o n a 
scientific basis reflected in the scientific risk assessment and socio -economic evaluation. With 
respect to alignment with the EU and the Customs Union, EU -approved biotech products are not 
necessarily approved by the Biosafety Board. For the transit o f these GM products, permission of 
MFAL is required.  
                                               
62 WTO document G/SPS/N/TUR/8 , 18 January 2010.  
63 Law No.  5977 of 18 March 2010.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.2  Measures Directly Affecting Exports  
3.2.1   Export procedures and requirements  
3.2.1.1   Procedures  
3.112.   In Turkey, export procedures are contained in Turkey's Customs Law from 199964, as well 
as other relevant decrees such as the export regulations.65 No major changes to these rules have 
occurred during the review period. Before commencing the procedures for exportation, an entity 
(person or legal entity) must become a member of an association of exporters, or exporters 
union.66 The export declaration must be prepared and approved by the exporters association as 
the first step before being presented to the customs authorities, thus these associations take part 
in the export processing work flow (s ee section 3.2. 4.1 for the role of  the exporters associations 
and the Turkish Exporters Assembly).  
3.113.   Goods in free circulation in Turkey can be exported following formalities that include 
complying with export policy measures and filing the export declaration with the customs 
authorities. Th e exporter needs to provide the HS code of the exports as well as other information 
needed in the declaration such as country of destination, origin, delivery method, etc.67 Other 
types of documentation or certificates may be required depending on the good,  for example a 
phytosanitary certificate in the case of certain agricultural goods. The main types of exports as 
elaborated by the export regulation are: registered export, pre -licensed export, exports by 
consignment, barter trade, exports to free zones, t ransit trade, exports without returns, and 
exports through leasing.  
3.114.   Turkey's single window initiative, which is currently being developed, is also being used for 
export processing68 (section 3.1.1). The S ingle Window Project, which enables traders to submit  
regulatory documents at a single location and/or single entity, has been in operation since 2014, 
with gradual implementation. The project is planned for completion in 2016. The documents 
required from exporters associations and the customs administration  are taken electronically 
through the BİLGE system. As of December 2015, 13 institutions were included in the system.69 
3.115.   Turkey has two main export regulations: the inward processing regime and the outward 
processing regime. Statistics on their use have not been made publically available by the 
Government.  
3.2.1.2   Inward processing regime  
3.116.   Turkey's Inward Processing Regime is designed to allow raw materials and inputs to be 
imported without the payment of customs duties and other taxes if they are used or incorporated  
into exported products.70 There are two kinds of inward processing types: suspension and 
drawback. Under suspension, imported products can be temporarily imported under a security 
bond if re -exported and incorporated in the exported product. As concerns dr awback, if goods 
were in free circulation and exported, import duties collected upon free circulation are returned 
when the resulting products are exported.  
                                               
64 Law No. 4458 of 27 October 1999.  
65 Export Regulation, Official Gazette  No. 26190 of 6 June 2006.  
66 Ministry of Economy, online information . Viewed at: 
http://www.ekonomi.gov.tr/portal/conte nt/conn/UCM/path/Contribution%20Folders/web/%C4%B0hracat/%C4
%B0hracat%20Yol%20Haritas%C4%B1/ekler/D%C4%B1%C5%9F%20Ticaret%20S%C3%BCre%C3%A7leri.p
df?lve . 
67 For the full list of items required in the declaration. Viewed at: http://www.tim.org.tr/en/export -
guide -required -documents.html . 
68 Circular No. 2012/6.  
69 The Sugar Authority; Borsa Istanbul (for gold transactions); EMRA, General Directorate of Eti Mine 
Works; TurkStat; Tobacco  and Alcohol Market Regulatory Authority; Ministry of Transportation, Maritime and 
Communication (DG of Civil Aviation); Ministry of Interior (Turkish National Police); Ministry of Health (Turkish 
Medicines and Medical Devices Agency); Ministry of Environm ent and Urban Development; Ministry of Labour 
and Social Security; Ministry of Food, Agriculture and Livestock; and the Ministry of Economy.  
70 Inward Processing Regime Communiqué No. 2006 -12, Official Gazette  No. 26382  of 
20 December  2006. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.117.   During the review period there were two inward processing regime circulars issued 
pertaining to agr icultural products and textile, clothing, and leather goods.71 Both circulars provide 
a framework for the procedures of the system.  
3.2.1.3   Outward processing regime  
3.118.   The Outward Processing Regime allows goods in free circulation to be exported temporarily 
from the customs territory of Turkey in order to undergo further processing operations such as 
repair.72 Goods may receive total or partial relief from import duties pursuant to the outward 
processing regime. Duties are calculated based on the difference in duties o f the exported product 
and the imported product that underwent further processing. The regime also allows for an 
exchange system, whereby the imported product can be replaced by a replacement product 
provided that it is of the same tariff classification an d of the same quality and characteristics.  
3.2.2   Export taxes, charges, and levies  
3.119.   Turkey currently applies export taxes on goods and they have been maintained during the 
review period. Turkey applies export taxes on raw skins (at a rate of US$0.5 per kg), shell ed 
hazelnuts (US$0.04 per kg), and hazelnuts (in shell) (US$0.08 per kg). The revenue from these 
taxes is channelled into the Support and Price Stabilization Fund. Further, VAT is not charged on 
exports. Exports are exempt from the stamp duty tax that is a pplied to documents. There are no 
other duties or charges applied to exports.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.2.3.1   Export of strategic goods  
3.120.   Turkey has several laws and regulations, or adheres to international agreements that 
prohibit or contro l the export of strategic goods, meaning goods that can be used to produce or 
deliver weapons of mass destruction or other defence -related goods. They include nuclear, 
chemical, and biological weapons, as well as dual -use goods. Depending on the type of go od, the 
Ministry of Defence, Ministry of Economy, or the Turkish Atomic Energy Authority serve as the 
relevant ministries for the export control of strategic goods.  
3.121.   Turkey has export controls or prohibitions on certain chemicals pursuant to the Chemical 
Weapons Convention.73 Amendments were made in 2010 , 2011 and 2012: Communiqué 
No. 2010/8, Communiqué No. 2011/2 and Communiqué No.  2012/1 amending Communiqué 
No. 2002/12. The amendments have introduced several minor modifications to the export control 
framewo rk. These include updating of the annexes with newly added chemicals or HS code 
changes to existing chemicals. These annexes have also been revised following the accession of 
new countries to the Convention.  
3.122.   In accordance with its commitments under the agr eements and arrangements of 
non-proliferation and export control regimes; as a member, Turkey has established and has been 
running an export control system, which functions through the concerted efforts and 
responsibilities of the various government instit utions. This export control system is aligned with 
the EU system.  
3.123.   In terms of the export control of sensitive and dual -use goods, Turkey has maintained 
legislation on this since 2003.74 It follows the Wassenaar Arrangement for dual -use goods and the 
Austral ia Group's chemical weapon's precursors list. Exporters of items on either list must gain 
permission to export from the Istanbul Minerals and Metals Exporters'  Union based on the final 
evaluation of the Ministry of Economy . Although there are no requiremen ts in the national export 
control legislation concerning goods in transit, Turkey applies controls as part of its overall 
approach on those goods on the basis of international obligations s uch as UN Sanction Resolutions.  
                                               
71 Circular No. 2 011-1 of 12 December 2011 and Circular No. 2015 -2 of 13 May 2015.  
72 Decision 2007/11864 , Official Gazette  No. 26484 of 4 May 2007. 
73 Communique No. 2002/12, Official Gazette  No. 24986 of 7 January 2003.  
74 Communique 2003/12, Official Gazette  No. 25304 of 1 2 February 2003.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.124.   The export of nuclear and nuclear d ual-use goods  is also controlled in Turkey by the 
Turkish Atomic Energy Authority (TAEA) pursuant to the Nuclear Exports Regulation. Exporters 
need to obtain permission to export from the TAEA after presentation of an end -use certificate and 
statement of u ndertaking indicating that the product will not be used for nuclear weapons or 
explosives.  
3.2.3.2   Export quality control  
3.125.   Turkey has provisions for the export quality control of certain agricultural goods pursuant 
to the Communiqué on Product Safety and Inspection  No. (2015/21 ).75 This regulation applies to 
fresh fruits and vegetables, dried agricultural products, edible oils, pulses, chicken eggs, and 
honey and has been implemented to promote high -quality production, prevent import rejection of 
goods, protect the i mage of Turkish products in world markets, and improve the competitiveness 
of the exported products. Products are expected to adhere to specific standards with respect to 
commercial quality  measures  upon exportation and importation . The  Communiqué  lays dow n 
principles and procedures regarding risk -based inspections of these products with respect to 
quality compliance with the commercial quality standards at the export and import stage. The 
inspections are done by inspectors in line with the above -mentioned  Communiqué. The companies 
are charged a fee in accordance with the tariff, designated and updated by the Ministry of 
Economy's Circulating Capital Enterprise Board in Quality Controls of Certain Agricultural Produces. 
The fees collected are transferred to the account of the Ministry of Economy's Central Directorate 
of Circulating Capital.  
3.2.3.3   Export prohibitions  
3.126.   The list of products prohibited from export from Turkey remains largely unchanged since 
the last review (Table 3. 19). Turkey prohibits the export of th ese 1 3 categories of products for 
environmental, health, or cultural reasons. Pursuant to Turkey's customs union with the EU, 
provisions contained therein allow Turkey to prohibit or restrict exports or goods in transit on the 
grounds of public morality, p ublic policy or public security; the protection of health and life of 
humans, animals or plants; the protection of national treasures possessing artistic, historic or 
archaeological value; or the protection of industrial and commercial property.76 
3.127.   Turkey fu lly complies with the provisions of CITES. The Ministry of Economy issued a 
revised Communiqué (Export 2014/1) on Exports of Substances that Deplete the Ozone Layer for 
banning and restricting the exportation of substances that deplete the ozone layer in a ccordance 
with the Montreal Protocol and the Vienna Convention.  
3.128.   Turkey maintains legislation on export quotas and export tariff rate quotas , including their 
administration.77 However, these provisions have not been used during the review period and 
Turkey currently does not have quotas or TRQs on exports.  
3.129.   Turkey applies all UN trade sanctions. With respect to EU trade sanctions, Turkey may or 
may not apply them, as they are not binding on Turkey.  
                                               
75 Communique 2015/21.  
76 Decision No. 1/95 of the EC -Turkey Association Council on implementing the final phase of the 
Customs Union.  
77 Decree No. 95/7616 of 25 December 1995, Official Gazette  No. 22510 of 31 December 1995; and 
Decision of 25 January 1995, Official Gazette  No. 22791 of 18 October 1996.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.19 Export prohibitions, 2015  
Description of item  Invocation 
of WTO 
Article  Domestic/international law  
All game and wild animals (except species 
on the list of "exports requiring a licence"), 
alive or meat and/or pieces and garments 
thereof (Ch. 1 and 2)a Enviro nment  
(Article XX:g)  Decision of the Council of Ministers (No. 234 
of 8 March 1990)  
Natural flower bulbs (1 item)  Environment  
(Article XX:g)  Export Regime Decree (No. 7623 of 
22 December  1995)  
CITES  Environment  
(Article XX:g)  Export Communiqué 2014/1  
Tobacco seeds and tobacco seedlings  .. Implementing Regulation on Methods and 
Essentials Concerning Tobacco Production and 
Processing and Internal and External Trade 
(Official Gazette  dated 10/07/2010, 
numbered 27637) based on the Law 
No. 4733, dated 09/01/2 002 (amended by 
Law No. 5752 dated 15/04/2008)  
Dates "P hoenix the ophrasti crenter" 
(1 item)  Environment  
(Article XX:g)  Export Regime Decree (No. 7623 of 
22 December  1995)  
Indian hemp (1 item)a Health  
(Article XX:b)  Law on the Controls of Narcotics (No. 2313 of 
24 June 1933)  
Pterocarya carpinifolia (1 item)  Environment  
(Article XX:g)  Export Regime Decree (No. 7623 of 
22 December  1995)  
Liquidamber orientalis (1 item)  Environment  
(Article XX:g)  Export Regime Decree (No. 7623 of 
22 December  1995)  
Plants o f olive, fig (except species 
certificated domestically that are registered 
and published in the National Species List), 
hazelnut, pistachio, and grapevine (sultanas 
seedless)  Environment  
(Article XX:g)  Export Regime Decree (No. 7623 of 
22 December  1995)  
Walnut, mulberry, cherry, pear, plum, 
badger, ash, elm, and lime in logs, in 
timber, in plank, and in sketch (Ch.  44)a Environment  
(Article XX:g)  Decision of the Council of Ministers (No. 8186 
of 24 April 1974)  
Wood  Environment  
(Article XX:g)  Export Regime  Decree (No. 7623 of 
22 December  1995)  
Antiques and archaeological works 
(1 item)a National 
treasures  
(Article XX:f)  Law on Ancient Works of Art (No. 2863 of 
23 July 1983)  
Sahlep (powder and of all sorts)  .. Export Regime Decree (No. 7623 of 
22 December  1995)  
.. Not available.  
a Export prohibited in 1993.  
Source:  Information provided by the authorities.  
3.2.3.4   Export licensing  
3.130.   Turkey requires export licences on 2 6 categories of goods, many of which relate to 
agriculture, as required by the Ministry of Food, Ag riculture and Livestock (Table 3.2 0). Turkey 
requires export licences for a variety of reasons, including for monitoring and regulation. In the 
case of sugar, production is strictly controlled by quota for sales to the domestic market, thus 
sugar produced above this level can be exported but licences are required to monitor sugar over 
quota production and help measure domestic demand. Turkey's export licensing requirements also 
apply to exports to the EU and FTA partner countries.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.20 Exports requiring a licence, 2015  
Description of items  Authority responsible  Legal basis  
Opium and poppy 
heads  Ministry of Health  Law No. 2313 of 24 June 1933  
Narcotic drugs, 
psychotropic 
substances, precursors 
and chemica ls under 
international control  Ministry of Health  Law No. 2313 of 24 June 1933;  
Single Convention on Narcotic Drugs of 1961 as 
amended by the 1972 Protocol; 1971 Convention on 
Psychotropic Substances; and 1988 UN Convention 
against Illicit Traffic in Narco tic Drugs and 
Psychotropic Substances  
Raw diamonds  Under secretariat of 
Treasury  Decree No. 2006/11115 of 31 October 2006  
Products subject to 
Basel Convention on 
the Control of 
Transboundary 
Movements of 
Hazardous Wastes and 
their Disposal  Ministry of Fo restry and 
Water Affairs  Decree No. 94/5419 of 7 March 1994  
Living or non -living 
boars, wolves, jackals, 
foxes, martens, 
badgers, snakes, 
turtles, lizards, and 
identifiable parts of 
and clothing produced 
from them  Ministry of Forestry and 
Water Affairs  Decree No. 645 regarding the Organization and 
Functions of the Ministry of Forestry and Water Affairs  
Fertilizers (excluding 
chemical fertilizers)  Ministry of Food, 
Agriculture and Livestock  Decrees No. 2/1771 of 27 December 1924 and No. 
6/4090 of 19 Dece mber 1964; Communiqué No. 96/31 
dated 19 September 1996  
Seeds (except forest -
tree seeds)  Ministry of Food, 
Agriculture and Livestock  Law No. 5553 of 31 October 2006, and Communiqué 
No. 96/31 of 19  September 1996  
Fisheries  products 
subject to "prohibition  
derived from the 
principles of fishery" 
(including leeches)  Ministry of Food, 
Agriculture and Livestock  Law No. 1380 of 22 March 1971 (as amended by Law 
No. 3288 of 28 May 1986); Regulation on Fisheries 
Products published in Official Journal No. 22223 dat ed 
10 March 1995  
Racehorses  Ministry of Food, 
Agriculture and Livestock  Law No. 5996 on Veterinary Services, Plant Health, 
Food and Feed  
Feeds covered by the 
Feed Law  Ministry of Food, 
Agriculture and Livestock  Law No. 5996 on Veterinary Services, Plan t Health, 
Food and Feed 
(http://www.tarim.gov.tr/Belgeler/ENG/Legislation/law 
veterinary ) 
Pharmaceuticals for 
veterinary purposes  Ministry of Food, 
Agriculture and Livestock  Law No. 5996 on Veterinary Services, Plant Health, 
Food and Feed  
Export of natur al 
flower bulbs subject to 
quota or any other 
kind of restriction  Ministry of Food, 
Agriculture and Livestock  Decree No. 95/7623 of 22  December  1995 
Live animals kept for 
stud Ministry of Food, 
Agriculture and Livestock  Law No. 5996 on Veterinary Services , Plant Health, 
Food and Feed  
Natural mushrooms 
(only exports to EU 
countries)  Ministry of Food, 
Agriculture and Livestock  Decree No. 95/7623 of 22  December  1995 
Live tuna fish (Thynus 
thunnus)  Ministry of Food, 
Agriculture and Livestock  Decree No. 95/7 623 of 22  December  1995  
Implementation Notice No. 48 of 2015 on Bluefin Tuna 
Fisheries, Transportation, Farming, Export and Import  
Materials within the 
context of Munitions 
List of Wassenaar 
Arrangement  Ministry of National 
Defence  Law No. 5201 of 3 Jul y 2004  
Sugar  The Turkish Sugar 
Authority  Decree No. 2007/9 of 17 August 2007  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Description of items  Authority responsible  Legal basis  
Technology  and 
equipment used for 
nuclear purposes  Turkish Atomic Energy 
Authority  Regulation No. 26642 of 13 September 2007 
Goods covered by the 
Missile Technology 
Controlling  Regime  Ministry of National 
Defence  Decree No. 5201 of 29 June 2004  
Tobacco leaf and 
tobacco refuse  Tobacco and Alcohol 
Market Regulatory 
Authority  Law No. 4733 of 9 January 2002  
Implements of war 
that are subject to 
control, military 
exploders and spar e 
parts and related 
technologies  Ministry of National 
Defence  Law No. 5201 of 2 July 2007  
Forest -tree seeds and 
other breeding 
materials  Ministry of Forestry and 
Water Affairs  Decree No. 645 regarding the Organization and 
Functions of the Ministry of Fore stry and Water Affairs  
Olive tree sapling 
(species certificated 
domestically which are 
registered and 
published in the 
National Species List ) Ministry of Food, 
Agriculture and Livestock  Export Regime Decree (No. 7623 of 
22 December  1995)  
Explosive materi als 
within the context of 
Regulatory Statute 
87/12028  Ministry of Internal Affairs  Law No. 6551 of 18 May 1955, Regulatory Statute 
87/12028 and 2001/2443  
Angora goats  Ministry of Food, 
Agriculture and Livestock  Law on the Amelioration of Animals (No. 4631  of 10 
March 2001)  
Gray Cattle, East 
Anatolian Red Cattle, 
South Anatolian Red, 
Native Yellow Cattle, 
Native Black Cattle, 
Zavot Cattle, Abaza 
Goat, Akkeçi Goat, 
Tiftik (Coloured 
Angora) Goat , Osmanlı 
Goat, Honamlı Goat, 
İspir Goat, Kaçkar 
Goat, Norduz Goat, 
Malta Goat, Acıpayam 
Sheep, Bandırma 
Sheep, Dağlıç Sheep, 
Eşme Kıvırcık Sheep, 
South Karaman Sheep, 
Hamdani Sheep*, 
Hasak Sheep, Hasmer 
Sheep, Herik Sheep, 
Karagül Sheep, 
Karakaçan Sheep, 
Karakaş Sheep, Karya 
Sheep, Koçeri Sheep, 
Malya Sheep, Pırlak 
Sheep, Pırıt Sheep, 
Ramlıç Sheep, 
Tahirova Sheep, Tuj 
Sheep, Türkgeldi 
Sheep, Zom Sheep, 
Çine Çaparı Sheep, 
Denizli Chicken, Gerze 
Chicken, Hacı Kadın 
Chicken, Sultan 
Chicken, Kangal 
Shepherd Do g*, Akbaş Ministry of Food, 
Agriculture and Livestock  Law on Veterinary Services, Plant Health, Food and 
Feed, 2010  
- Regulation on Utilization and Export of the Native 
Domestic Animal Genetic Resources, 2012  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Description of items  Authority responsible  Legal basis  
Shepherd Dog*, Kars 
Shepherd Dog*, Çatal 
Burun Hunting Dog*, 
Zağar Dog*, Ankara 
Cat*, Van Cat*, 
Ankara Rabbit, Kafkas 
Honeybee, Bursa 
Beyazı Silkworm line, 
Bursa Beyazı Alaca 
Silkworm line, Hatay 
Sarısı Silkworm line, 
Canik Horse, Hınısın 
Kolu Kı sası Horse, 
Malakan Horse, 
Uzunyayla Horse, 
Çukurova Horse, Ege 
Midillisi, Çamardı 
Kulası Horse, 
Karakaçan Donkey, 
Merzifon Donkey (55 
items not allowed to 
export except for 
research)  
Source:  Information provided by the authorities.  
3.2.4   Export support and promotion  
3.131.   Turkey has been actively promoting its exports and  has developed the Turkish Exports 
Strategy for 2023 in order to increase exports to a target level ( section 2.2). There are general 
provisions in the strategy related to export promotion or support in order to increase the 
competitiveness of the services and manufacturing sectors to gain access to foreign markets.  
3.2.4.1   Export promotion organizations  
3.132.   There is no state agency or funding for export promotion in Turkey. In Turkey the NGOs or 
private sector play the largest role in export promotion activities. Three  main organizations have 
key roles in export promotion – Chambers of commerce, the Foreign Economic Relations Board of 
Turkey (DEIK), and the Turkish Exporters Assembly (TIM).  
3.133.   DEIK is Turkey's non -profit institution responsible for leading foreign economic  relations, in 
particular foreign trade. DEIK's structure was modified in 201478, as it was more empowered and 
given responsibility for "managing the foreign economic relations of the Turkish private sector".79 
It is funded by voluntary private sector compan ies and founding institutions including some 
exporters associations, chambers of commerce, and some business associatio ns. In terms of 
export promotion, DEIK produces studies and helps businesses build competences, but does not 
have any specific export pro motion programmes. The mission of DEİK is to work for the better 
integration of Turkey into the global marketplace. To complete this mission, it works through 
bilateral business councils. The number of business councils operating under the umbrella of DEIK  
reached 130 in October 2015.  
3.134.   TIM is the highest body of Turkish exporting firms, acting as the umbrella organization for 
approximately 60 exporter unions or associations. Its major role is to ensure coordination between 
the public and private organization s, exporters, and decision -makers, but it is involved in many 
export activities such as lobbying, coordinating trade fairs, and preparing studies and analyses. 
TIM is funded by revenue from the Exporters Associations. TIM and the Exporters Associations are  
professional organizations comprised of and governed by exporting companies. TIM provides 
services to more than 71,000 exporter firms and their unions, consisting of 13 general 
secretariats.  
                                               
78 Law No. 6552 of 11 September 2014.  
79 DEIK, 2015 -16 Corporate Catalogue.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.135.   Turkey's various chambers of commerce and unions of chambers are  also heavily involved 
in export promotion activities.  
3.2.4.2   Export support programmes  
3.136.   Turkey's Ministry of Economy has a number of government support programmes which are 
intended for all companies operating in commercial or industrial bases (Table 3.2 1). These  
programmes provide certai n types of support to exporters ( sections 3.3.1 and 3.3.2 for SME 
supports, and business incentives and subsidies, which may also support exports). In addition, 
each year the Ministry of Economy provides a list of target and prior ity countries for export.80 
Table 3.21 Export support programmes, 2015  
Programme/subject  Reference  
Export refunds for agricultural products  Decision No. 2015/1  
  
State aid for technical consulting services  Circular No. 2012 -3 
Foreign exchange earning support for trade in 
services  Notification No. 2012 -4 
Source:  Ministry of Economy.  
3.2.5   Export finance, insurance, guarantees  
3.137.   Turk Eximbank  is a state -owned bank and is also the sole official export credit agency in  
Turkey. Established by law in 1987, its operations and principles were further clarified by a Council 
of Ministers' Resolution at the same year. This Resolution was revised in line with the new Turkish 
Commercial Code (TCC), the Banking Legislation, and g lobal financial and economic developments 
that have occurred since the establishment of the Bank. The new Resolution entered into force in 
2013 with the inclusion of additional provisions on scope, finances, and organs. In particular, the 
Resolution provid es for the establishment of a new General Assembly according to the new Turkish 
Commercial Code; the provision of insurance to overseas affiliates of Turkish exporters; financial 
support to trademark, patent, and technology acquisition; and engagement in r einsurance and all 
types of capital market and derivative financial transactions. The objectives of the Bank are to 
enhance exports, diversify exported goods and services, access of new markets for exported 
goods, increase exporters' share in international  trade, encourage entrepreneurship, support 
exporters and overseas contractors to increase their competitiveness, and support overseas 
investments and production and sales of export -oriented capital goods.  
3.138.   Turk Eximbank has three main areas of operation — providing short -, medium - and 
long-term cash and non -cash credits; international loans/guarantees for the financing of exports or 
overseas projects of Turkish companies; and export credit insurance to protect against commercial 
and political risks. More re cently it began offering a domestic credit insurance instrument  to cover 
the whole receivables of exporters.81 During the review period, each of these lines of operation 
exhibited significant growth. Overall, Turk Eximbank has increased its support during t he review 
period as the bank's assets almost tripled (Table 3.2 2).  
                                               
80 For 2014 -15, target countries are: Algeria, Brazil, China, India, Iran, Iraq, Japan, Kazakhstan, 
Republic of Korea, Libya, Nigeria, Poland, Romania, Russian Federation, Saudi Arabia, Ukraine, and the 
United  States. Priority countries are: Angola, Argentina, Azerbaijan, Bangladesh, Bulgaria, Canada, Chile, 
Colombia, Ethiopia, Egypt, Germany, Georgia, Ghana, Indonesia, Ku wait, Malaysia, Mexico, Oman, Peru, Qatar, 
Singapore, South Africa, Tanzania, Thailand, Turkmenistan, UAE, United Kingdom, and Viet Nam. Ministry of 
Economy online information. Viewed at: 
http://www.ekonomi.gov.tr/portal/faces/or acle/webcenter/portalapp/pages/content/htmlViewer.jspx?contentId
=UCM%23dDocName%3AEK -167294&parentPage=ihracat&contentTitle=2014 -
2015%20D%C3%B6nemi&countryName=&_afrLoop=476152577141028&_afrWindowMode=0&_afrWindowId=
1p5ir2wkz_219#!%40%40%3FcountryName%3D%2 6_afrWindowId%3D1p5ir2wkz_219%26_afrLoop%3D476
152577141028%26contentId%3DUCM%2523dDocName%253AEK -
167294%26parentPage%3Dihracat%26contentTitle%3D2014 -
2015%2BD%25C3%25B6nemi%26_afrWindowMode%3D0%26_adf.ctrl -state%3D1p5ir2wkz_294 . 
81 As of the end of 2014, 42  companies had benefitted and the bank had insured shipments of 
US$860 million. Turk Eximbank, 2014 Annual Report, online information. Viewed at: 
http://www.eximbank.gov.tr/En/files/ aboutUs/annual2014.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.22 Eximbank overview, credits, loans, and export credit insurance, 2011 -14 
 2011  2012  2013  2014  
Total financial support (US$ billion ) 12.4 22.1 28.1 31.1 
 As a percentage of Turkey's exports  9.2 14.5 18.5 19.7 
Total assets (US$ billion)  5.0 8.7 11.7 14.5 
Credits (short -, medium -, and long -term domestic 
credits) (US$ billion)  6.7 15.1 19.7 20.1 
International loans (US$ million)  37 39 3 98 
Short -term Export Credit Insurance Programme  
(US$ billion)  5.8 6.9 8.3 10.1 
Medium and Long -term Export Credit Insurance 
Programme (US$ million)  0 0 3 8 
Source:  Turk Eximbank, online information. Viewed at: https://www.eximbank.gov.tr/EN,1293/sta tistics. 
html. 
3.139.   Turk Eximbank provides its services to all companies residing in Turkey and conducting 
either merchandise or services trade. In addition to servicing Turkish exporters, the Bank also 
provides services to contractors and investors operating a broad, as well as international transport 
and tourism operators. The Bank does not discriminate between sectors of business operation, but 
does give special consideration to companies located in Turkey's priority investment regions 
(section 2.4.4.1). These  companies are provided with privileges for credit applications, they benefit 
from the Preshipment Export Credit Programme for Priority Development Areas with lowest 
interest rates, and intermediary banks are required to extend at least 5% of their credit limit to 
companies in these areas.  
3.140.   Providing export credits has been the main business of Turk Eximbank for many years. 
Short -term export credits are the most popular product of the Bank and accounted for 
US$18.5  billion in 2014 (concentrated for exports d estined to the EU market and in the iron and 
steel (19% share) sector). Of this amount, about 80% is made through the export and foreign 
exchange earning services ' rediscount credits extended by the Central Bank of Turkey . The 
Rediscount Credit programme, which requires an export commitment, aims at providing support to 
Turkish manufacturers, exporters and manufacturer -exporters with a maturity of up to 240 days in 
the pre -shipment base. Promissory notes issued by exporters on behalf of Turk Eximbank, which  
have the avail of banks possessing a short -term letter of guarantee limit with Turk Eximbank, are 
discounted under this limit. This programme covers export transactions based on cash against 
documents and irrevocable letters of credit. Export receivables with a maturity of up to 240 days 
discounted by the Central Bank of Turkey and up to 360 days are discounted from Turk 
Eximbank's own sources on LIBOR+spread, where the spread is determined by Turk Eximbank. 
Export and foreign exchange earning services ' rediscount credits  are provided to companies 
through intermediary banks in Turkish Lira based on export or foreign exchange earning service s' 
receivable documents  converted from the foreign currency. Re -payments are then made to the 
Central Bank in foreign c urrency which helps increase the Central Bank's foreign currency reserves 
and decrease the current account deficit. In view of the significant demand for this type of 
product, the Central Bank raised the rediscount limit to the Eximb ank to US$14 billion in  
October  2014, and again to US$15  billion in January 2015. Furthermore, provisions were made to 
the programme so that companies operating in free zones and making sales outside Turkey could 
benefit. The programme was also extended to tourism, health, consu lting, software, shipping, and 
engineering services.  
3.141.   Turk Eximbank's international loans or credits section underwent a comprehensive revision 
in 2014 to accelerate and restructure the International Credit Programmes (previously "Country 
Credits") applied as buyer's credit by Turk Eximbank since 1989. Functional classification was 
launched based on project credits and financing trade, and International Project Credits and 
International Trade Funding Directorates were established. Under the International Pro ject Credits, 
credit lines are extended under sovereign guarantee to correspondent banks and financial 
institutions in various countries. Turk Eximbank provides financial support to the projects 
undertaken by Turkish contractors through its credit and/or g uarantee programs. Interest rates 
are established between the parties concerned in compliance with the OECD Consensus. Under the 
International Trade Finance Programme, Turk Eximbank provides financial support under 
commercial terms for goods exported by Tu rkish firms. Additionally, the Bank's product range was WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  expanded through two new sub -programmes developed for the International Trade Finance Credit. 
The Export Receivables Discounting Programme (previously Policy/Letter of Credit Discount 
Programme) was p ut in place to increase the forward -sale opportunities of Turkish companies and 
to meet their post -shipment financing needs. Under the other programme, buyer's credit has been 
extended to importers residing in foreign countries and requesting to import goo ds from Turkey 
through the overseas branches, affiliates or correspondent banks of domestic banks. In 2014, 
international loans reached a 15 -year high of US$98 million, a level not achieved since 1999. 
Furthermore, a cumulative total of US$2.4 billion in i nternational credits has been extended to 
23 countries since 1989.  
3.142.   One of Turk Eximbank's main areas of activity since 1989 has been export credit insurance 
programmes under which export receivables are insured against commercial and political risks. 
Like most other officially supported export credit agencies, only political risks are considered under 
the guarantee of the state, whereas losses due to commercial risks are indemnified by Turk 
Eximbank from its own sources. The most commonly used programme is the Short -Term Export 
Credit Insurance Programme, and within the scope of this programme, all shipments to be made 
by an exporter during the one -year policy period, and with payments deferred up to 360 days, are 
insured. Turk Eximbank has been extending co ver to companies in 238 countries since April 2012.  
3.3  Measures Affecting Production and Trade  
3.3.1   Business framework  
3.143.   Turkey ranked 55th out of 189 countries in the World Bank's "Ease of Doing Business 2016" 
index; it dropped four places in rank compared to 2015.82 In terms of the sub -category rank for 
starting a business, Turkey ranked 94th, as there are eight steps to be taken in establishing a 
business enterprise and it takes 7.5 days to do so. The costs, as a percentage of per capita 
income, are also significan t at 16%. With respect to the revised rankings from the previous year, 
Turkey fell six places in rank for starting a business. However, according to the authorities, 
starting a business takes less time in practice than stated in the Ease of Doing Business index 
because the methodological assumption does not take into account the steps that can be 
completed simultaneously. It was pointed out by the authorities that there has been no change in 
regulations and business procedures compared to the previous year.  
3.144.   Land purchases by foreign businesses remain restricted pursuant to the Land Registry 
Law.83 A maximum of 30 hectares of land can be acquired by foreigners for business purposes, and 
foreigners buying land without construction must submit plans to build on the land to the relevant 
Ministry within two years of purchase. However, there are exceptions for businesses operating in 
certain sectors or regions pursuant to the Petrol Law, the Tourism Encouragement Law, and the 
Industrial Regions Law.84 Setting up oper ations in the special investment zones also gives certain 
advant ages for land acquisition ( section 2.4.4).  
3.145.   In 2015 Turkey passed new legislation on the Regulation of Retail Trade.85 The new 
legislation aims to simplify the procedures for opening a retail bu siness, provide efficient and 
sustainable competition conditions, protect consumers, provide balanced growth and development, 
and regulate the activities of retail businesses.  For many of these businesses, the law imposes new 
regulations, as they were prev iously unregulated. The law envisages the establishment of a retail 
information system for businesses to make applications and provide an exchange of information 
with the relevant Ministries or authorities. Other provisions include regulations on claims or  
premiums, discounts and promotional sales, and continuous discount sales. For shopping malls, 
the law requires that at least 0.5% of the total sales area be allocated to social and cultural 
activities, at least 5% allocated to trades and craftsmen, and at  least 0.3% of the total sales area 
dedicated to those who conduct rare businesses (i.e. traditional crafts which may be forgotten). 
Supermarkets, chain stores, dealers, and authorized private businesses where fast -moving 
                                               
82 World Bank, online information. Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/turkey . 2015 rankings were revised with 2016 Report.  
83 Law No . 2644.  
84 Law No. 8659 dated 7 March 1954 ; Law No. 17635 dated 12 March 1982 ; and Law No. 24645 dated 
9 January 2002 . 
85 Law No. 6585, Official Gazette  No. 29251 of 29 January 2015.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  consumer goods are sold, are requi red to have at least 1% of shelf space allocated to local 
products.  
3.3.1.1   Commercial Code  
3.146.   Turkey's Commercial Code (TCC) is the main law governing business in Turkey. In 2011 
Turkey passed legislation for its new commercial code, which came into force as of 1 Ju ly 2012 to 
replace the outdated code that had been in place for over 50 years.86 The goals of the new 
commercial code are to adhere to international standards; foster private equity and public offering 
activities; improve transparency; and align Turkey's bu siness environment with that of the EU. The 
main changes resulting from the new commercial code are numerous and touch many business 
aspects (Table 3.2 3). 
3.147.   The TCC has six main chapters covering enterprise law, company law, securities law, 
transportation la w, maritime commercial law, and insurance law. Under the enterprise chapter, the 
reforms were aimed at harmonizing the TCC with EU law. The main changes were with respect to 
new accounting principles and agency contract. The provisions on company law provi de for the 
establishment of five types of companies: joint -stock, limited liability, commandite87, collective, 
and cooperative. The main changes to this section include reforms for joint -stock companies, 
boards of directors and decision -making, and division  of power.  
3.148.   Since its entry into force in 2012, a number of provisions of the commercial code have 
been amended or postponed. These changes have been minor and have not significantly changed 
the provisions of the 2011 law.  
Table 3.23 Overview of main changes introduced by Turkey's new Commercial Code, 
enterprise and company law  
Provision  Changes  
Sharehold structure  Allows the establishment of joint stock companies or limited liability 
companies with a single sh areholder  
Board of directors  The board of directors can be comprised of a single person instead of 
at least three members  
Legal entities may be appointed as board members  
Board members do not have to also be shareholders  
Registered capital system  Non-public companies can now participate in a registered capital 
system  
Intellectual property rights  Intellectual property rights may be contributed as capital -in-kind if they 
have transferable qualifications  
Ultra-vires Ultra-vires was abolished thus companies  can conduct transactions 
outside their articles of association  
Accounting principles for enterprises  Accounting systems of Turkish enterprises to be in conformity with 
Turkish accounting standards  
Commercial registry  Establishment of an electronic regis try system  
Business name  Rules regarding business names have been reformed to increase 
transparency and reliability  
Statutory audit  Certain companies are now subject to statutory audit  
Unfair competition  Defines unfair competition and makes linkages to competition law  
Agency contract  Unauthorized agency rules have changed to more easily require 
fulfilment of the agreement, and rights to agency fees have been 
strengthened  
Delegation of power  Detailed regime for the delegation of management powers  
Sourc e: Invest in Turkey online information. Viewed at: http://www.invest.gov.tr/en -
US/investmentguide/investorsguide/Pages/EstablishingABusinessIn TR.aspx ; KMPG online 
information. Viewed at: https://www.kpmg.com/TR/en/IssuesAndInsig hts/ArticlesPublications/New -
Turkish -Commercial -Code/publications/Documents/Latest -Amendments -in-the-new-TCC.pdf ; and 
DEIK, "The New Turkish Code of Commerce, Rules Regarding the Corporations in a Nutshell".  
3.3.1.2   Regulatory bodies  
3.149.   Turkey has an open economy an d has taken many initiatives to encourage investment and 
promote the activities of the private sector. However, at the same time it maintains a number of 
                                               
86 Law No. 6102 of 13 January 2011.  
87 Mixed liability company whereby s hareh olders can either have limited or unlimited liability.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  regulatory or supervisory authorities that regulate certain sectors of the economy. Many of these 
entities are involved in regulating or monitoring market activities (Table 3.2 4). 
Table 3.24 Turkey's business regulatory authorities, 2015  
Authority  Sector  Overview  
Competition Authority  All sectors  Aims to max imize economic efficiency by 
promoting competition in the marketplace  
Energy Market Regulatory 
Authority  Energy  Regulates and supervises the energy market to 
provide a sound, transparent and competitive 
market  
Banking Regulation and 
Supervision Agency  Finance  Protects the rights and benefits of depositors and 
promotes trust and stability in financial markets  
Capital Markets Board  Securities  Protects the rights and benefits of investors in 
capital markets  
Information and 
Communication 
Technologies Author ity ICT Regulation, supervision, authorization, and 
reconciliation for the telecommunications and 
postal sector  
Tobacco and Alcohol Market 
Regulatory Authority  Tobacco, tobacco 
products, alcohol, and 
alcoholic beverages  Responsible for regulating and supe rvising 
tobacco, tobacco products, alcohol and alcoholic 
beverages markets  
Privatization Administration  All sectors under state 
control  Responsible for coordinating the privatization 
process in Turkey  
Public Procurement 
Authority  Government procurement  Establishes principles and procedures for 
procurement by public authorities  
Sugar Authority  Sugar  Responsible for sugar production, pricing, and 
marketing  
The Radio and Television 
Supreme Council  Radio and television  Regulating and supervising radio and T V 
operations including through  licences  and 
authorizations  
Public Oversight, Accounting 
and Auditing Standards 
Authority  All Develops accounting and auditing standards for 
Turkey  
Source:  Compiled by the WTO Secretariat from Invest in Turkey website, onli ne information. Viewed at: 
http://www.invest.gov.tr/en -US/investmentguide/investorsguide/Pages/BusinessEnvironment.aspx  
and other sources.  
3.3.1.3   SMEs  
3.150.   Small and medium -sized enterprises (SMEs) are an important part of the Turkish economy, 
accounting for 99.8% of total enterprises, 75.8% of employment, and 54.2% of value added at 
factor cost. They are also important to Turkey's trade, accounting for 37.8% of  Turkish imports 
and 56.5% of exports in 2014. In the export sector, SMEs trade was concentrated in the industrial 
sector with apparel, metals, and textiles being the predominant products. For imports, SMEs 
imports were concentrated in chemicals and chemic al products, metals, and machinery and 
equipment.88 
3.151.   Turkey's SMEs are supported by the Small and Medium Enterprises Development 
Organization (KOSGEB), a Turkish public organization that aims to increase SMEs' share in the 
economy and help them develop their  businesses. Originally established by law in 1990, to support 
SME manufacturing, KOSGEB's mandate was expanded in 2009 to cover other sectors.89 Thus, 
today it covers specified sectors pursuant to the Council of Ministers' decision.90 SMEs may benefit 
from the programmes of KOSGEB if they meet the SME definition of enterprises, regardless of legal 
form, that employ fewer than 250 staff and that have either a turnover or balance sheet total of 
                                               
88 Turkish Statistical Institute, online information. Viewed at: 
http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=18521 . 
89 Law No. 3624 of 12 April 1990, Official Gazette  No. 20498 of 20 April 1990, and Council of Ministers' 
Decision of 18 September 2009, Decision No. 2009/15431.  
90 Council of Ministers' Decision , "Decision About Determining Sectoral And Regional Priorities Which  
Small And Medium Sized Enterprises Will Benefit From Services And Supports Given By KOSGEB ", Decision 
No. 2009/15431, Official Gazette  No. 27353 of 18 September 2009 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  under  TL 40 million. This definition was amended in 2012 to includ e firms that have a turnover or 
balance sheet total not exceeding TL 40 million .91 
3.152.   KOSGEB has a number of programmes to support SMEs that are guided by its support 
regulations (Table 3.2 5).92 These take the form of direct grants and reimbursements. KOSGEB al so 
provides loans and subsidized services such as financing and laboratory fees. In 2014, KOSGEB 
had a budget of TL 557,854 million  allocated by the Government, of which approximately 65% is 
provided in support programmes for SMEs. The largest part of KOSG EB's support budget goes 
towards non -recourse support, followed by credit interest support, and support with repayment. 
For example, in 2014 KOSGEB expended TL 286,221 million for non -recourse support 
programmes.93 
3.153.   In looking ahead, the SME Strategy and Act ion Plan for 2015 -18 provides for five strategic 
areas:  
 Improving the competitiveness level of SMEs and ensuring their growth,  
 Enhancing the internationalization level of SMEs by improving their export capacity,  
 Taking into consideration SMEs' needs whi le improving the business and investment 
environment,  
 Improving the R&D and innovation capacity of SMEs, and  
 Facilitating access of SMEs to finance.  
3.154.   In addition, the National Entrepreneurship Strategy and Action Plan of Turkey (2015 -2018) 
was prepared by  KOSGEB. The plan consists of 6 strategic targets:  
 Developing an entrepreneur -friendly regulatory framework,  
 Supporting innovative entrepreneurship,  
 Developing a sustainable support system for priority thematic areas and general areas 
such as women's entr epreneurship, young entrepreneurs, eco entrepreneurship, social 
entrepreneurship, and global entrepreneurship; and ensuring their execution,  
 Improving the culture of entrepreneurship,  
 Intensifying entrepreneurship training on an organized and universal edu cation basis 
and developing a consultancy system oriented towards entrepreneurs, and  
 Expediting entrepreneurs' access to finance.  
Table 3.25 Overview of KOSGEB support for SMEs  
Programme  Purpose  Maximum suppor t 
(TL) 
SME Project Support Programme  To support specific project costs as specified by 
the business  150,000 (grant)  
Thematic Project Support 
Programme  To encourage SMEs to produce more projects to 
build their businesses and help professional 
organization s produce more projects  150,000 (grant)  
Cooperating -Leaguing Support 
Programme  To bring together SMEs and generate common 
solutions for common problems by cooperation 
or mentoring  300,000 (grant), 
700,000 (reimbursable)  
For Joint Manufacturing -
Directed P rojects at 
Medium -High and High 
Technology Areas:  
300,000 (grant), 
1,200,000 
(reimbursable)  
                                               
91 Amendment decision, Official Gazette  No. 28457 of 4 November 2012 . 
92 Official Gazette  No. 27612 of 15 June 2010.  
93 Information provided by the authorities.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Programme  Purpose  Maximum suppor t 
(TL) 
R&D, Innovation, and Industrial 
Application Support Programme  To support SMEs possessing new ideas and 
innovations  Ranges from 5,000 to 
500,000 depending on 
the type of support  
768,000 (grant), 
800,000 (reimbursable)  
General Support Programme  To enable low -capacity SMEs to prepare 
projects, especially those in KOSGEB target 
areas, so that they can take advantage of 
KOSGEB supports  Ranges from 10,000 to 
50,000 depe nding on 
the type of support  
270,000 (grant)  
Entrepreneur Support 
Programme  Developing and disseminating entrepreneurship  For establishment of a 
business: 3,000 for 
enterprise 
establishment support, 
15,000 for 
establishment period, 
12,000 for operational 
cost support, and 
70,000 for fixed asset 
investment  
For business 
improvement centre: 
100,000 for operational 
support, and 750,000 
for establishment  
Emerging Enterprises Market 
Support Programme  Help SMEs to grow by enabling them to 
participate in the Bors a Istanbul  Ranges from 10,000 to 
60,000 depending on 
the type of support  
100,000 (grant)  
Loan interest support programme  Procuring financial support by KOSGEB for SME 
financing  Gives an enlarged 
mission to KOSGEB to 
work with private banks 
and also domest ic 
branches of foreign 
private banks , in 
addition to  public 
banks . The upper limit 
of the loan interest rate 
support for investment,  
working capital and 
export has been 
increased to 
300,000  TL/SME  
Credit pay -back period 
(loan re -payment 
period) increased u p to 
48 months  
Loan interest support 
programme s are not 
implemented 
permanently  
Laboratory support  Compensation for laboratory fees  n.a. 
n.a. Not applicable.  
Source:  KOSGEB online information. Viewed at: http://www.kosgeb.gov.tr/Pages/UI/Default.aspx . 
3.3.2   Incentives, state aid, and subsidies  
3.155.   At present there is no sole Ministry in Turkey responsible for incentives and subsidies. 
Rather, each Ministry has its own programmes pursuant to their mandat es. Thus, the Ministry of WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Food, Agriculture and Livestock is involved for agricultural subsidies, the Ministry of Economy for 
investment incentives and export support, KOSGEB for SME support, and the Ministry of Science, 
Industry and Technology for researc h and development aid. State aid policy in Turkey is guided by 
WTO rules and EU requirements pursuant to the Customs Union.  
3.156.   As a result of Turkey's ongoing accession negotiations to the EU, in particular the 
negotiations on competition policy, Turkey is mo ving towards adopting a state aid law that would 
include: general conditions; recovery; rules of authorization, monitoring, and implementation of 
state aids; and establish ment of an independent state aid authority with powers to oversee state 
aid rules fro m bilateral agreements . 
3.157.   Thus, in 2010 Turkey enacted legislation on the Monitoring and Control of State Aids.94 
This legislation provides for the establishment of a Board for the Monitoring and Supervision of 
State Aids under the Undersecretariat of the Tre asury of Turkey. This Board will have the power to 
authorize state aid schemes and individual a id grants, as well as the authority to recover  
unlawfully granted aid. However this law is not yet operational, as the secondary legislation has 
not been enacted  yet. The legislation has been delayed twice, the latest until end of 2015; 
afterwards if the legislation is passed, it would enter into force by the end of 2016.  
3.158.   Turkey's incentives or support give n for investment is covered in section 2.4.4, those for 
manufacturing in section 4.2, for exports in section 3.2. 4, and for  SMEs, section 3.3.1.3. Thus, 
only the remaining support or state aids are discussed here. Turkey maintains 1 1 broad  state aid 
programmes supporting a number of areas (Table 3.2 6). 
Table 3.26 Key features of the State Aid Programmes  
Programme  Aim and beneficiaries  Support  Implementing 
institutions  Additional 
information  
Research and 
development 
projects  - Developing the SMEs and 
entrepreneurs pos sessing new 
ideas and inventions  
- Supporting techno -promoters 
who have technological ideas,  
- Disseminating R&D awareness 
throughout the SMEs and 
expanding R&D capacity  
- Enhancing actual R&D support  
- Supporting innovative 
activities  
- Need for support m echanism 
for the commercialization and 
the industrial application of the 
R&D and innovation project's 
output  SME Project  
Support Programme  
R&D, Innovation and  
Industrial Practice  
Support Programme  
Detailed info: 
http://kosgeb.gov.tr/Pages/UI/Deste
kler.aspx?ref=18   KOSGEB  The 
necessary 
allowances 
are provided 
from the 
budget of 
KOSGEB. 
There are no 
support 
programme -
based 
budgets  
Environmental 
protection 
activities  - Encouraging the SMEs to  
produce more projects to build 
their businesses up and the 
professional organizations to 
produce more projects to 
improve the small and medium - 
sized enterprises  
- By taking the priorities 
indicated in macro strategy 
records into consideration, 
meeting th e needs in 
designated thematic fields  
- Ensuring SMEs conform to the 
international legislations and 
priorities  - Thematic Project Support 
Programme  
 
Detailed info:  
http://kosgeb.gov.tr/Pages /UI/Deste
kler.aspx?ref=13  KOSGEB  The 
necessary 
allowances 
are provided 
from the 
budget of 
KOSGEB. 
There are no 
support 
programme -
based 
budgets  
Participation in 
international 
trade fairs and 
exhibitions  To increase participation in fairs 
abroad; companies , sectoral 
foreign trade companies, 
producers/manufacturers 
organizations  50% of participation fees (in the case 
of national participation);  
50% of the rental cost of empty 
stand, and 50% of transportation 
costs (in the case of individual 
participation)  
 Exporters'  
Unions  
 Communique 
2009/5   
                                               
94 Law No. 6015, Official Gazette  No. 27738 of 23 October 2010.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Programme  Aim and beneficiaries  Support  Implementing 
institutions  Additional 
information  
Certification Aid  To support expenses of SMEs 
during certification of quality 
assurance, environmental 
management systems, and CE 
marking  
 Certification  
Expenses (%50)  
 Exporters'  
Unions  
 Circular 
No. 2014-8 
Operating  stores 
abroad  
 To promote companies 
operating stores abroad; 
companies, and sectoral foreign 
trade companies  50% of the advertisement, rent, 
office inventory and decoration 
expenditures of companies operating 
a store abroad  Exporters' 
Unions   
Market Rese arch 
and Market 
Access Aid  To create new export markets 
and increase our share in 
traditional markets;  
 
Companies and Institution of 
Collaborations (Exporter 
Unions, Chamber Of 
Commerce, Organized 
Industrial Zones, Sectoral 
Associations, Sectoral Foreign 
Trade Companies)  -Market Research Trips (70%)  
 -Buying Market Research Reports 
(60%)  
 -Financial and Legal Due Diligence 
Cost for Mergers and Acquisitions 
(60%)  
-Participating Sectoral Trade Missions 
Abroad (50%)  
 -Membership of B2B Websites 
(70%)  
 Ministry  of 
Economy  Circular 
No. 2011-1 
Aid For 
Improving 
International 
Competitiveness  
 To improve clustering approach 
and support training 
programmes;  
 
Companies and Institution of 
Collaborations (Exporter 
Unions, Chamber Of 
Commerce, Organized 
Industrial Zones , Sectoral 
Associations, Sectoral Foreign 
Trade Companies)  -Training Programmes Organized by 
Training Bodies (70%)  
 
-Project -Based Common Activities 
Organized by Institution of 
Collaborations (Need Analysis of the 
SMEs and the Cluster; Project -Based 
Training and/or Consultancy 
Programmes; Project -Based 
International Marketing and Buying 
Missions; Supporting Employment 
Costs for Project Staff)(75%)  
 Ministry of 
Economy  Circular 
No. 2010-8 
Encouraging 
designers  To promote activities of 
designer companies a broad  50% of consultancy fees, rental fees, 
advertisement, certification expenses 
and fees for the registration of trade 
marks  
 Exporters 
Unions and 
Ministry of 
Economy  Circular 
No. 2008-2 
Technical 
consultancy 
activities abroad  To encourage technical 
consultancy companies to 
operate abroad  At least 50% of rental fees, 
advertisement, market research 
projects, participation fees for fairs, 
conferences, exhibitions, training 
programmes, and professional 
competitions  Ministry of 
Economy   
Promoting 
Turkish 
trademarks and 
improving the 
image of Turkish 
goods 
(TURQUALITY®) This accreditation mechanism 
aims at facilitating family -
companies' institutionalization 
efforts via bringing major 
consultancy companies 
together with exporters.  Consultancy companies are 
accredited by the Ministry of 
Economy and these companies 
provide valuable insights for 
exporters to adopt best practices in 
their branding and marketing efforts.  Exporters 
Unions and 
Ministry of 
Economy  Communique 
No. 2006/4  
General 
activities  - Enabling also low -capacity 
SMEs to prepare projects and 
those in sectors which KOSGEB 
had recently taken into its 
target range, to take advantage 
of KOSGEB supports  
- Enabling SMEs to produce 
high quality and efficient 
goods/services  
- Revising actual KOSGEB 
suppor ts to enable more SMEs 
to take advantage of these 
supports in a widespread 
manner  
- Encouraging the general 
enterprise development 
activities of the SMEs in order 
to increase their 
competitiveness power and 
level - Domestic Fairs Support  
- Foreign Business Travel Supports  
- Promotion Support  
- Matching Support  
- Support for Employment of 
Qualified Staff  
- Consultancy Support  
- Training Support  
- Energy Efficiency Support  
- Design Support  
- Industrial Property Rights  
Detailed info:  
http://kosgeb.gov.tr/Pages/UI/Deste
kler.aspx?ref=16  KOSGEB   WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Programme  Aim and beneficiaries  Support  Implementing 
institutions  Additional 
information  
- Improving the promoting and 
marketing act ivities of the 
SMEs in order to expand their 
domestic and international 
market shares  
a The fair must be org anized at least three years in advance, a minimum of 100 companies is required 
(25 of which must be foreign), and a fair cannot be supported more than  twice.  
Source:  Information provided by the authorities.  
3.3.2.1   TURQUALITY® 
3.159.   Turkey's TURQUALITY® is its national  branding programme designed to facilitate and 
support Turkish brands in international markets. It has been in operation since 2004 at the 
initiative of the Ministry of Economy, TIM, and the Istanbul Textile and Apparel Exporters 
Association (ITKIB).95 There have been no changes to the laws or regulations for TURQUALITY® 
during the review period. Its main objectives are to support companies in their brand -building 
efforts, undertake public relations activities abroad, create awareness on internationally acce pted 
values like quality, help companies with brand positioning, and act as an incubator for selected 
Turkish brands.96 TURQUALITY® is a state -supported branding entity in which the state pays 50% 
of company expenses for TURQUALITY® support services for bra nding and entering international 
markets. There are two main programmes: the branding and TURQUALITY® programmes.  
3.160.   At the end of 2013 there were 105 brands, with 50 companies participating. In order to 
receive support, companies must file an application, wh ich includes a detailed development 
roadmap or study with the input of an accredited consulting firm. The application is then 
considered by the Ministry of Economy for approval. The state funds 75% of the development 
roadmap, and 50% of the following expen ses: patents, promotional materials, office rent, office 
set-up costs, certification, showcase and showroom rent, franchise fees, consulting fees, and 
staffing costs. The maximum amount of support, and number of years that it is supported , 
depends on the t ype of expense and whether it is for the branding or TURQUALITY® programme.  
3.3.2.2   WTO notifications on subsidies  
3.161.   During the review period Turkey has made two notifications pursuant to Article XVI:1 of 
GATT 1994 and Article 25 of the Agreement on Subsidies and Co untervailing Measures to the 
Committee on Subsidies and Countervailing Measures.97 Both of these notifications cover 
agricultural export subsidy programmes, Turk Eximbank programmes, and the investment 
incentive programmes. However, energy support was inclu ded in the 2014 notification but not in 
the 2015 notification because the support provided by Law No. 5084 of 29 January 2004 on 
Encouragement of Investments and Employment and certain other laws was valid until 
December  2012; the law is no longer in force . 
3.3.3   Competition policy and price controls  
3.3.3.1   Price controls  
3.162.   With the exception of electricity, natural gas, pharmaceuticals, telecommunications, and 
transport, prices are determined by the market. The authority responsible for price controls 
depends on the prod uct: 
 the Energy Market Regulatory Authority is responsible for approving transmission and 
distribution tariffs, the wholesale price of TETAS (Turkey Electricity Trading Company), 
and retail sales to "non -eligible" consumers. The Authority is also responsib le for 
approving retail, transmission, storage, and city distribution tariffs for natural gas;  
                                               
95 Communiqué No. 2006/4, Official Gazette  No. 26177 of 24 May 2006 and Notification 2009/14.  
96 TURQUALITY® online informati on. Viewed at: http://www.turquality.com/about -us. 
97 WTO documents G/SCM/N/220/TUR, G/SCM/N/253/TUR /Suppl.1 , and G/SCM/N/253/TUR/Suppl.2.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   the Information and Communications Technologies Authority, as the telecoms regulator, 
regulates or approves services provided by operators98; 
 the Ministry of Heal th uses a reference price system to determine prices of 
pharmaceuticals using the lowest wholesale prices in some EU member States as the 
reference. Currently, the reference prices are converted into Turkish Lira at a fixed rate 
of TL 2.0787 to the euro.99 
3.3.3.2   Competition policy  
3.163.   The Law on the Protection of Competition No. 4054 of 1994 remains the principal legal 
basis for the promotion and enforcement of competition in goods and services markets. The 
Turkish Competition Authority (TCA), led by a seven -member co mpetition board, has been 
responsible for the implementation and enforcement of the law since 1997. Since 2012, the 
decisions of the competition board can be appealed before the Ankara Administrative Court, as 
court of first instance, and no longer before the Court of State.  
3.164.   Secondary legislation, mainly in the form of regulations, is prepared by the TCA and issued 
by the Board.  
3.165.   Turkey's competition legislation addresses three principal types of behaviour: anti -
competitive agreements, concerted practices, a nd decisions; abuse of dominant position; and 
mergers and acquisitions distorting the competitive structure of the market. Agreements that 
distort, restrict or prevent competition are in principle prohibited, unless the competition board 
grants an exemptio n (individual or block exemption). The board may also grant negative 
clearance, thereby confirming that an agreement, decision, practice or proposed merger or 
acquisition transaction is not deemed contrary to the competition rules. Any practice affecting t he 
Turkish market is within the scope of the law, including agreements concluded outside Turkey (the 
effects doctrine).  
3.166.   The TCA has published several guidelines designed to align its practices with the EU. These 
include guidelines published in: 2011 (Guide lines on Undertakings Concerned, Turnover and 
Ancillary Restraints in Mergers and Acquisitions, and Guidelines on Remedies that are Acceptable 
by the TCA in Merger/Acquisition Transactions); 2013 (Guidelines on Leniency Process; Guidelines 
on Horizontal Co operation Agreements, Guidelines on Horizontal Mergers, Guideli nes on 
Non-Horizontal Mergers, Guidelines on the concept of 'Control', and Guidelines on the General 
Principles of Exemption); and 2014 (Guidelines on the Assessment of Exclusionary Abusive 
Conduct by Dominant Undertakings).  
3.167.   In addition, the TCA has published a number of communiqués aimed at enhancing its 
effectiveness. These include: a 2012 Communiqué on the Application Procedure for Infringements 
of Competition which provides a list of informa tion required from complainants and aims to avoid 
the misuse of complaint rights by undertakings or consumers; the Block Exemption Communiqué 
on Specialization Agreements (2013); and the Communiqué on The Procedures and Principles to 
be Pursued in Pre -Notifications and Authorization Applications to be Filed with the Competition 
Authority in Order for Acquisitions via Privatization to Become Legally Valid  (2013).100 
3.168.   The TCA has tended to focus its activities on the following sectors: transportation, chemical 
products, food and beverages, telecommunication, construction services and supplies, and the 
financial sector. In its annual reports, the agency usually states that cooperation mechanisms are 
needed between the law -maker and the public authorities responsib le for the regulation of these 
sectors to discuss the measures that need to be taken in relation to those sectors that are 
                                               
98 Information and Communication Technologies Authority online infor mation. Viewed at: 
http://www.btk.gov.tr/en -US/. 
99 Tokgöz T (2014), The Turkish Pharma Market , Presentation by Turgut Tokgöz, Secretary General to 
CPhl Worldwide 2014. Viewed at: https://prezi.com/cnbs28xrddtd/the -turkish -pharma -market/ ; and 
information provided by the authorities.  
100 Regulations, Communiqués, and Guidelines issued by the TCA under the Law on the Protection of 
Competition ar e available online at: http://www.rekabet.gov.tr/en -US/Communique -List/Communiqu -List. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  constantly the subject of competition violations or complaints, despite the investigations conducted 
by the TCA and the measures take n as a result of these.101 
3.169.   While the number of final decisions adopted by the TCA showed a significant increase 
between 2010 and 2012, this was followed by a decrease of 33% in 2013 ( Table 3.27) due to the 
drop in merger and acquisition notifications resulti ng from an amendment to the merger 
notification rules: for example, the Turkish turnover threshold for notifications was raised from 
TL 5 million to TL 30 million. The decrease in final decisions is also due to the power granted to the 
TCA in 2013 to disre gard complaints that are not related to competition legislation.  
Table 3.27 Files concluded by the TCA , 2011 -14 
Year  Infringement of 
competition  Exemption/negative 
clearance  Mergers/acquisitions/joint 
ventures /privatization  Total  
2011 283 54 253 590 
2012 303 50 303 656 
2013 191 58 213 462 
2014 163 59 215 437 
Source:  OECD documents DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014)8, 4 June 2014; and annual report on compet ition policy in Turkey (2014).  
3.170.   Cases involving infringement of competition are invest igated under Article 4 (on 
anti-competitive agreements) and Article 6 (on abuse of dominant position) of the Law on 
Protection of Competition. These cases make up a large proportion of total investigations carried 
out by the TCA ( Tables 3.28 and 3.29). According to the TCA, investigations into cartels has been 
an important activity with 10 decisions issued in 2014102 and five in 2013, which included one in 
the banking sector where the TCA found that 12 banks had engaged in anti -competitive practices 
by jointly setting interest rates and fees for various services (deposits, loans and credit cards) and 
resulted in fines that exceeded the total of all fines previously applied by the TCA.103 
3.171.   Under the Regulation for Leniency and the Regulation on Fines introduced in 
February  2009, undertakings  and individuals found to have participated in a cartel can settle their 
case by acknowledging their involvement in the cartel and their partic ipation in the enquiry. In 
return, they may be entitled to a reduced fine or, under certain stringent conditions, no fine at 
all.104 The authorities consider the "leniency policy" to be an efficient implementation tool for 
detection and investigation of cart els since the penalties for breaching competition law can be 
quite severe. This programme has been used several times during the period under review, 
including in 2012, in the powder sodium sulphate case where the Competition Board decided that 
SODAS' appl ication for leniency should be accepted, as a result of which the undertaking's fine was 
reduced by one third and the fine imposed on its employees was reduced by half.105 
Table 3.28 Conclusion of anti -trust fil es, 2011 -14 
Year  Files involving Anti -
competitive Agreement  
(Article 4)  Files involving Abuse 
of Dominance  
(Article 6)  Files involving both 
Article 4 and Article 6  Total  
2011 158 95 30 283 
2012 168 108 27 303 
2013 117 57 17 191 
2014 91 48 24 163 
Sourc e: OECD documents DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014)8, 4 June 2014; and annual report on competition policy in Turkey (2014).  
                                               
101 Turkish Competition Authority (2015), Annual Report on Competition Policy Developments i n Turkey 
2014, pp. 3, 4. Viewed at: http://www.rekabet.gov.tr/en -US/Annual -Report -List. 
102 Turkish Competition Authority (2015), Annual Report on Competition Policy Developments in Turkey 
2014, p. 4. Viewed at: http://www.rekabet.gov.tr/en -US/Annual -Report -List. 
103 OECD (2014), Annual Report on Competition Policy Developments in Turkey – 2013, 
DAF/COMP/AR(201 4)8, p. 5.  
104 Regula tion on Fines to Apply in Cases of Agreements, Concerted Practices and Decisions Limiting 
Competition, and Abuse of Dominant Position, and Regulation on Active Cooperation for Detecting Cartels. 
Viewed at: http://www.rekabet.gov.tr/en -US/Regulation -List. 
105 OECD (2013), Annual Report on Competition Policy Developments in Turkey – 2012, 
DAF/COMP/AR(2013)18 , pp. 6, 7.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.29 Examination of anti -competitive agreements under Article 4 , 2011 -14 
Year  Horizontal 
Agreements  Vertical 
Restraints  Files involving both Horizontal 
Agreements and Vertical 
Restraints  Total  
2011 108 75 5 188 
2012 121 67 6 194 
2013 67 63 4 134 
2014 65 48 2 115 
Source:  OECD do cuments DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014)8, 4 June 2014; and annual report on competition policy in Turkey (2014).  
3.172.   In addition to anti -trust work, a substantial share of the TCA's activity is devoted to 
merger investigations (Table 3.3 0). However, the Agency nearly always clears mergers and 
acquisitions. Thus, during the period under review, no merger or acquisition was blocked although 
four transactions were cleared under conditions  (Table 3.31). 
Table 3.30 Number of mergers/acquisitions/joint ventures/privatization decisions , 
2011 -14 
Year  Merger  Acquisition  Joint Venture  Privatization  Total  
2011 3 168 68 14 253 
2012 1 190 91 21 303 
2013 1 125 68 19 213 
2014 4 130 63 18 215 
Source:  OECD documents DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014)8, 4 June 2014; and annual report on competition policy in Turkey (2014).  
Table 3.31 Results of mergers/acquisitions/joint ventures/privatization notifications , 
2011 -14 
Year  Cleared  Cleared under 
conditions  Blocked  Out of scope (not 
satisfying 
thresholds)  
2011 191 4 0 58 
2012 262 0 0 41 
2013 162 0 0 51 
2014 169 3 0 43 
Source:  OECD d ocuments DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014)8, 4 June 2014; and annual report on competition policy in Turkey (2014).  
3.173.   The TCA can also issue n egative clearances and exemptions which deem an activity or 
agree ment is not in contravention of the Law or is covered by one of the block exemptions issued 
by the A gency  (Table  3.32). 
Table 3.32 Negative clearance and exemption , 2011 -14 
  2011  2012  2013  2014  
Applications granted negative clearance  9 12 10 14 
Exemption 
Files Cases including Agreements granted individual 
exemption  21 20 27 30 
Cases including Agreements covered by Block 
Exemption  6 3 9 4 
Cases including Agreements granted Conditional 
Individual Exemptio n 6 8 4 7 
Cases including Agreements denied Exemption  8 5 4 2 
Withdrawal of Exemption  - - - - 
Cases including Agreements where individual and 
Block Exemption were examined jointly  3 1 3 - 
Source:  OECD documents DAF/COMP/AR(2012)8, 31 May 2012; DAF/C OMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014) 8, 4 June 2014;  and annual report on competition policy in Turkey (2014).  
3.174.   In some cases the fines imposed by the TCA can be relatively large, particularly in 2013 in 
the anti -trust case in the financial sector  referred to above ( Table 3.3 3). WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.33 Fines imposed by the TCA , 2011 -14 
(TL) 
 
Year  Total  Anti-trust  Mergers/  
Acquisitions  Exemption/  
Negative 
Clearance  
Fines related to 
substance  2011 459,508,920  459,50 8,920    
2012 60,411,864  60,411,864    
2013 1,187,220,597  1,187,220,597    
2104 468,233,986  468,233,986    
Fines imposed on 
executives  2011 20,718  20,718    
2012     
2013     
2014     
False or misleading 
information in an 
application  2011     
2012     
2013 352,664    352,664  
2014     
False or misleading 
information produced 
during inspection  2011 12,327  12,327    
2012 76,129  76,129    
2013     
2014     
Finalizing a transaction 
without permission/ 
failure to notify  2011 1,698   1,698   
2012 119,057   119,057   
2013 242,813   242,813   
2014 30,452   30,452   
Opposition to inspection  2011 859,518  859,518    
2012     
2013 15,540,501  15,540,501    
2014     
Note:  The table does not reflect fines imposed after annulation by the Council of St ate or the High 
Administrative Court of decisions of the Competition Board.  
Source:  OECD documents DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014) 8, 4 June 2014; and annual report on competition policy in Turkey (2014) . 
3.175.   Competition advocacy reflects competition agencies' role as a consultant to the 
Government and to sector regulatory agencies concerning legislation and regulations that affect 
competition policy. This mission is considered to be a priority by the TCA. Se ctor enquiries are also 
regarded as important tools for competition advocacy. Such enquiries have, for example, been 
carried out in the distribution of pharmaceuticals sector. In 2013, the TCA also published a report 
entitled "Public Interventions from a C ompetition Policy Perspective" which analysed the reasons 
behind such interventions and the risks they involve. In 2014, the authority also sent, to all 
relevant stakeholders, its sixth competition letter, entitled "The Relationship between Competition 
Policy and Non -governmental Organizations/Associations of Undertakings". In 2014, it also 
published its third competition report on the topic of "Competition Law and Small Medium -Size 
Enterprises". This report aimed at both educating and informing the SMEs ab out the competition 
law as SMEs are believed to be one of the important stakeholders in improving the competition 
culture in Turkey.  
3.176.   As undertakings  increasingly engage in cross -border deals affecting several countries, 
Turkey has cooperated with competiti on authorities outside its jurisdiction. It has also been 
supportive of greater multilateral cooperation through the International Competition Network 
(ICN), the UNCTAD Intergovernmental Group of Experts on Competition Policy, and the OECD 
Competition Comm ittee. 
3.3.4   State trading, state -owned enterprises, and privatization  
3.3.4.1   State Trading Enterprises  
3.177.   Turkey continues to notify 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. The last full notification was made in 2012 and enumerates 7 HS 
12-digit tariff lines pertaining to chemicals or medicines used to fight against malaria and syphilis. 
Pursuant to the exclusive rights granted to this non -profit aid organization, TRCS is the sole WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  importer of these products. During the period covered by the notification, 2010 -11, only potassium 
iodide was imported, amounting to 18,000 and 20,000 kg in 2010 and 2011, respectively.106 
3.3.4.2   State -owned enterprises (S OEs)  
3.178.   The Turkish Decree Law on State -Owned Enterprises107 dates from 1984 and sets up the 
formation of state -owned enterprises and their subsidiaries, their economic needs and 
productivity, and the specific provisions granted to them.108 In 2009 a Communiqué w as issued 
regarding the notification, reporting and monitoring of SOEs in order to increase transparency and 
accountability.109 It became mandatory for SOEs to establish an internal control system110 and 
internal audit unit111 with reference to the Annual Genera l Investment and Financing 
Programmes.112 According to the 2015 Annual General Investment and Financing Programme, 
SOEs have to establish an internal control system by the end of 2016. In addition,  SOEs were 
subject to independent external audit starting fro m 2015 according to a Cabinet Decree113 
prepared with reference to the Turkish Commercial Code.114 
3.179.   The Directorate General of State -Owned Enterprises under the Undersecretariat of the 
Treasury has the role of oversight of SOEs. Its main role is to exercise own ership functions on 
behalf of the state, monitor that their activities are in accordance with laws and regulations, 
contribute to policy development for SOEs, and provide for the efficient functioning of SOEs. They 
also have a role in consolidating and mon itoring the financial and non -financial data of the SOEs. 
Between 2011 -14, SOEs exhibited significant growth in income and assets of 46% and 27% 
respectively. Profitability initially increased during this period but then decreased, in particular in 
2014 wh en it turned negative. The decrease in profitability mainly stems from the accounting rules 
related to the privatization process.115 The number of employees of SOEs fell by 7.5% over the 
period. Thus, SOEs have become more efficient users of state resources over the period 
(Table  3.34). 
Table 3.34 Overview of State -owned enterprises key indicators, 2011 -14 
 2011  2012  2013  2014a 
Gross income  77,586  96,391  103,487  112.905  
Total assets  96,203  107,824  119,566  121,8 45 
Rate of return on equity  0.03 0.05 0.08 -0.03 
Per capita operating profit  0.02 0.03 0.06 -0.02 
Number of employees (persons)  117,976  115,847  112,833  109,173  
Budget transfers to SOEs  7,008  6,621  7,320b 8,775  
Payments to the state budget by 
SOEs 3,578 3,139b 6,207  8,307  
Profitability  3,185  4,595  8,147  -1,125  
a Provisional.  
b Revised.  
Source:  Directorate General of State -Owned Enterprises, State -Owned Enterprises Annual Report 2013, 
online information. Viewed at: https://www.hazine.gov.tr/tr -TR/Rapor -Sunum -
Sayfasi?mid=615&cid=27& nm=300# ; and information provided by the authorities.  
3.180.   Turkish public enterprises are required to report annually to the Directorate G eneral of 
State -Owned Enterprises. Each year a decree is enacted by the Government on the financing and 
                                               
106 WTO document G/STR/N/14/TUR , 15 June 2012 . 
107 The companies subject to Decree L aw No. 233 are called SOEs . 
108 Decree Law No. 233 of 8 June 1984. Legislation of Turkey website, online information. Viewed at: 
http://www.mevzuat.gov.tr/ Metin.Aspx?MevzuatKod=4.5.233&MevzuatIliski=0&sourceXmlSearch =. 
109 Official Journal  No. 27261 of 17 June 2009.  
110 Official Journal  No. 27379 (Repeated) of 17 October 2009.  
111 Official Journal  No. 28815 of 8 November 2013.  
112 Cabinet Decree prepared according to the Decree Law N o. 233. 
113 Official Journal  No. 28537 of 23 January 2013.  
114 Law No. 6102.  
115 Normally, when a private company sells its fixed assets, fixed assets are excluded from the balance 
sheet and the revenue from this transaction is transferred to bank accounts of the company. However, when a 
part of an SOE is privatized, the related fixed asset values are excluded from the balance sheet and since the 
revenue is transferred to Privatization Fund in place of the accounts of SOEs, SOEs record extra or dinary loss 
because of this transaction.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  budget of SOEs. As of the end of October 2015, there were a total of 36 majority -owned 
companies in the Treasury and Privatization portfolio. The larges t SOEs were companies operating 
in industry, in particular mining, energy, and transport (Table 3.3 5). 
Table 3.35 List of majority -owned public enterprises in the Treasury and Privatization 
Portfolio as of 31 October 2015  
Enterprise  Sector  % Public ownership  
A. Treasury portfolio  
1. State -owned enterprises  
 State economic enterprises  
MKEK (Makina ve Kimya Endüstrisi Kurumu) (Machinery 
and Chemical Industries)  Manufacturing  100%  
DMO (Devlet Malzeme Ofisi Ge nel Müdürlüğü) (State 
Supply Office)  Manufacturing  100%  
TTK (Türkiye Taşkömürü Kurumu) (Turkish Hard Coal 
Enterprise)  Mining  100%  
TKI (Türkiye Kömür İşletmeleri Kurumu Genel 
Müdürlüğü) (Turkish Coal Enterprises)  Mining  100%  
Eti Maden İşletmeleri Genel M üdürlüğü (Directorate 
General of Eti Mine Works)  Mining  100%  
EUAS (Elektrik Üretim Anonim Şirketi) (Electricity 
Generation Company)  Energy  100%  
TEIAS (Türkiye Elektrik İletim A.Ş.) (Turkish Electricity 
Transmission Company)  Energy  100%  
TETAS (Türkiye El ektrik Ticaret ve Taahhüt A.Ş.) 
(Turkish Electricity Trading and Contracting Company)  Energy  100%  
BOTAS (Boru Hatları ile Petrol Taşıma A.Ş.) (Petroleum 
Pipeline Corporation)  Oil and natural gas  100%  
TPAO (Türkiye Petrolleri Anonim Ortaklığı) (Turkish 
Petroleum Corporation)  Oil and natural gas  100%  
TMO (Toprak Mahsülleri Ofisi) (Turkish Grain Board)  Agriculture and 
livestock  100%  
CAYKUR (Çay İşletmeleri Genel Müdürlüğü) (Directorate 
General of Tea Enterprises)  Agriculture and 
livestock  100%  
TIGEM (Tar ım İşletmeleri Genel Müdürlüğü) (Directorate 
General of Agricultural Enterprises)  Agriculture and 
livestock  100%  
ESK (Et ve Süt Kurumu Genel Müdürlüğü) Meat and Milk 
Board  Agriculture and 
livestock  100%  
TCDD (T.C. Devlet Demiryolları İşletmesi Genel 
Müdürlüğü) (Turkish State Railways)  Transport  100%  
Public economic institutions  
DHMI (Devlet Hava Meydanları İşletmesi Genel 
Müdürlüğü) (Directorate General of State Airports 
Authority)  Transport  100%  
KEGM (Kıyı Emniyeti Genel Müdürlüğü) (Directorate 
General of Coastal Safety)  Transport  100%  
2. Majority public -owned banks having a special law  
T.C. Ziraat Bankası A.Ş. (Ziraat Bank)  Banking  100%  
Eximbank (Türkiye İhracat Kredi Bankası A.Ş.) (Export 
Credit Bank of Turkey)  Banking  100%  
T. Kalkınma Bankası A.Ş. (Development Bank of Turkey)  Banking  99.08%  
Tasfiye Halinde T. Emlak Bankası A.Ş.  Banking  99.99%  
Türkiye Cumhuriyet Merkez Bankası (Central Bank of the 
Republic of Turkey)  Banking  55.12%  
3. Other enterprises having a special law  
TURKSAT (TÜRKSAT U ydu Haberleşme Kablo TV ve 
İşletme A.Ş.) (Turkish Satellite Communication and 
Cable Operation)  Telecommunications  100%  
TRT (Türkiye Radyo -Televizyon Kurumu) (Turkey Radio -
Television Corporation)  Broadcasting  100%  
AOC (Atatürk Orman Çiftliği Müdürlüğü) (A taturk Forest 
Farm)  Food production  100%  
PTT (Posta ve Telgraf Teşkilatı A.Ş.) (Post and Telegraph 
Organization)  Post and 
telecommunications  100%  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Enterprise  Sector  % Public ownership  
B. Privatization Portfolio  
Corporations within the context and programme of privatization  
T. Halk Bankası A.Ş. (Halkbank)  Banking  51.11%  
Sumer Holding (Textiles)  Manufacturing  100%  
Doğusan Boru Sanayii ve Ticaret A.Ş. (Pipe Industry and 
Trade)  Manufacturing  56.09%  
KBI (Tasfiye Halinde Karadeniz Bakır İşletmeleri A.Ş.) 
(Copper Industries)  Mining  99.99%  
TEMS AN (Türkiye Elektromekanik Sanayi A.Ş.) (Turkey 
Electro -Mechanical Industry Directorate)  Manufacturing  100%  
TEDAS (Türkiye Elektrik Dağıtım A.Ş.) (Turkey Electrical 
Distribution)  Energy  100%  
ADUAS (Ankara Doğal Elektrik Üretim ve Ticaret A.Ş.) 
(Ankara El ectric Enterprises)  Energy  100%  
tta Gayrimenkul A.Ş. Genel Müdürlüğü (tta Real Estate 
Inc.) Agriculture  100%  
TSFAS (Türkiye Şeker Fabrikaları A.Ş.) (Turkey Sugar 
Factories Inc.)  Agriculture  100%  
TDI (Türkiye Denizcilik İşletmeleri A.Ş.) (Turkey 
Shipping  Enterprises)  Transport  100%  
Source:  Republic of Turkey, Undersecretariat of Treasury online information. Viewed at: 
https://www.hazine.gov.tr/tr -TR/Mevzuat -Sunum -Sayfasi?mid=351&cid=33&nm=298# ; and 
information provided by the authorities.  
3.3.4.3   Privatization  
3.181.   Turkey began its privatization process in the 1980s with a framework that continued until 
1994 when the Law on Privatization was enacted.116 This 1994 law continues t o be the main 
framework in Turkey for the privatization of public enterprises and no major amendments to the 
law have occurred during the review period.  
3.182.   The law provides the framework, including the establishments (known as organizations) to 
be placed unde r the scope of privatization; the creation of the Privatization High Council and 
Privatization Administration and their duties related to the law; the establishment of a privatization 
fund; methods of privatization including value assessment and tender met hods; and the transfer 
of personnel in the organizations including their possible job loss compensation. The Law has a 
specific provision with respect to privatization involving the sale or transfer of real estate for 
foreign persons or legal entities.  
3.183.   Privatization methods, pursuant to the law, are provided by sale, lease, grant of 
operational rights; establishment of property rights other than ownership; and a profit -sharing 
model and other legally defined methods depending on the nature of the business. Foreign 
investors may participate in the bidding in accordance with the Foreign Direct Investment Law 
No. 4875 enacted on 5 June 2003. In addition to the privatization of strategic sectors, the law 
provides for the privatization of public services to be ac hieved through the granting of operational 
rights subject to a separate law put in place for such services. The privatization law also provides 
for sale s to foreigners through sales to foreign investors and international offerings. Foreign 
investors in rea l estate sales are subject to the Land Registry Law No. 2644. There is  no legal limit 
on sales of SOEs to foreigners.  
3.184.   The overarching goals of Turkey's privatization law are to improve productivity in the 
economy and reduce public expenditure. Privatizati on is also seen to promote the development of 
capital markets and reallocate resources towards new investments. So far the total income from 
privatization was US$66.91 billion for the period 1986 -September 2015.117 
3.185.   Two hundred and four  organizations have bee n completely privatized as of September 
2015.  Since 1985, the privatization portfolio has mainly included real estate organizations and 
                                               
116 Law No. 4046. Republic of Turkey Privatization Administration website, online information. Viewed 
at: http://www.oib.gov.tr/baskanlik/yasa_eng.htm . 
117 Republic of Turkey Privatization Administration website, online information. Viewed at: 
http://www.oib.gov.tr/program/uygulamalar/yillara_gore.htm . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  state shares in companies, followed by establishments.118 As of 30 September 2015, the 
privatization portfolio included 22  companies in the privatization scope and programme. Th e 
privatization portfolio of 12  organizations accounts for over 50% of the public shares. In addition , 
the privatization portfolio includes 623 real estate  holdings , 49 plants, 2 ports, 8 toll motorway s 
and 2 bridges with lottery licence rights (Table  3.36). 
Table 3.36 Overview of organizations in the privatization portfolio, 2015, by sector  
Sector  Organizations  
Toll motorways  Edirne -Istanbul -Ankara Pozant ı-Tarsus -Mersin, Tarsus -Adana -Gaziantep, 
Toprakkale -İskenderun, İzmir -Çeşme, İzmir -Aydın Gaziantep -Sanliurfa, 
İzmir, Ankara Peripheral Motorways and Boğaziçi, Fatih Sultan Mehmet 
Bridges  
Energy  Ankara Doğal Elektrik Üretim ve Ticaret A.Şa, Kayseri ve Civ arı Elektrik 
T.A.Ş, Hamitabat Elektrik Üretim A.Ş, Türkiye .Elektrik Dağıtım A.Ş.1, 
Türkiye Elektromekanik Sanayi A.Ş. (TEMSAN), Elektrik Üretim A.Ş. of 
Power Generation Plants  
Banking  T.Halk Bankası A.Ş.a (51% shares)  
Construction  Doğusan Boru Sanayi ve  Ticaret A.Ş.  
Ports İzmir Port, Fenerbahçe -Kalamış Marina  
Sugar processing  Kayseri Şeker Fabrikası A.Ş. (11.7% minority share), Türkiye Şeker 
Fabrikaları A.Ş.a (25 sugar factories and other manufacturing institutions)  
Textile, leather, ceramics, 
carpet  Sümer Holding A.Ş.a (comprises various factories and institutions)  
Maritime  T. Denizcilik İşletmeleria (Port and maritime services)  
Copper  KBI-Karadeniz Bakır İşletmeleri A.Ş.a (under liquidation)  
Airline  THY-Türk Hava Yolları A.Şa (49% of minority shar es) 
Chemicals  Hidrojen Peroksit Sanayi ve Tic. A.Ş. (28.2% of minority shares)  
Telecommunication  Türk Telekomünikasyon A.Ş.a (30% of minority shares)  
Lottery  Milli Piyango (National Lottery)  
Real Estate Projects  Various real estate of government instit utions  
Plant and other assets  Rivers Run Plants (52)  
a Some of the shares of these companies have already been privatized.  
Source:  Republic of Turkey Privatization Administration website, online information. Viewed at: 
http://www.oib.gov.tr/program/uygulamalar/privatization_in_turkey.htm  and 
http://www.oib.gov.tr/portfoy/portfolio_general.htm ; and inform ation provided by the authorities.  
3.186.   During the review period, the number of privatizations has increased, with only a few 
organizations privatized in 2011 -12, and over 15 during 2013 -14. Most of these privatizations 
have been in the electricity distribution  and power generation industries (Table 3. 37). 
Furthermore, a number of organizations have been in the privatization portfolio for a long time 
without being privatized due to economic, social, and political reasons.  
Table 3.37 Significant privatization implementations, 2011 -30 September 2015  
Name of the 
privatized 
companies  Area of 
activity  Date of 
privat -
ization  Total 
(notional) 
market 
value of 
the 
company, 
on the 
basis of its 
privatiz -
ation price  
(US$ 
million ) Percent -
age of 
equity 
sold to 
the new 
controll -
ing 
investor  Percent -
age of 
equity 
issued on 
or already 
in the 
stock 
market  Percent -
age of the 
equity still 
owned by 
the 
Govern -
ment  
Trakya Elec. 
Distribution  Electricity 
Distribution  2011 575 100%    
İskenderun Sea Port  Port Operation  2011 372 Transfer of 
Operating 
Rights    
                                               
118 Republic of Turkey Privatization Administration website, online information. Viewed at: 
http://www.oib.gov.tr/program/uygulamalar/privatization_in_turkey.htm . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Name of the 
privatized 
companies  Area of 
activity  Date of 
privat -
ization  Total 
(notional) 
market 
value of 
the 
company, 
on the 
basis of its 
privatiz -
ation price  
(US$ 
million ) Percent -
age of 
equity 
sold to 
the new 
controll -
ing 
investor  Percent -
age of 
equity 
issued on 
or already 
in the 
stock 
market  Percent -
age of the 
equity still 
owned by 
the 
Govern -
ment  
Petkim Holding  Petrochemicals  2012 169 11%   
Halkbank  Banking  2012 2,520  23.92%  24.98%  51.1%  
Baskent Natural gas 
Distr.  Natural gas 
distribution of 
Ankara and its 
vicinity  2013 1,162 100%    
Hamitabat Natural 
gas fired Power 
Generation Plant  Power 
Generation  2013 105 100%    
Akdeniz Elect. Dist  Electricity 
Distribution  2013 546 100%    
Boğaziçi Elect. 
Distribution  Electricity 
Distribution  2013 1,960  100%    
Gediz Elect.        
Distribution  Electricity 
Distribution  2013 1,231  100%    
Aras Elect. 
Distribution  Electricity 
Distribution  2013 129 100%    
Dicle Elect. 
Distribution  Electricity 
Distribution  2013 387 100%    
Vangölü Elect. Distr.  Electricity 
Distribution  2013 118 100%    
AYEDAS, Elect. 
Distr.Anatolian side 
of Istanbul  Electricity 
Distribution  2013 1,227  100%    
Toroslar Elec. Distr.  Electricity 
Distribution  2013 1,725  100%    
Seyitömer Coal fired 
power gen.  Power 
Generation  2013 2,248  Asset sale 
for the 
plant and 
Transfer of 
Operating 
Rights for 
the coal 
mine.    
Kangal Coal fired 
power gen.  Power 
Generation  2013 985 100%    
Various small river 
on run power gen.  Power 
Generation  2013 195 Transfer of 
Operating 
Rights    
Various real estate of 
Min. of Finance  Real Estate  2013 407    
Port of Salipazari  Cruise Port 
Operation  2014 702 Transfer of 
Operating 
Rights    
Yatağan Coal fired 
power gen.  Power 
Generation  2014 1,091  100%    
Çatalağzı Coal fired 
power gen.  Power 
Generation  2014 350 100%    
Kemerköy, Yeniköy 
Coal fired power gen.  Power 
Generation  2014 2,671  100%    
Port of Derince  Cruise Port 
Operation  2015 543 Transfer of 
Operating 
Rights    
Source:  Information provided by the authorities.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.3.5   Government procurement  
3.3.5.1   Basic legal framework  
3.187.   Public procurement in Turkey is governed by the Public Procurement Law (PPL)119 and the 
Public Procurement Contracts Law (PPCL)120, which were adopted in 2002 and entered into force in 
2003. They cover procurement undertaken at the central government and sub -central levels. The 
laws have been supplemented by the Regulation on Implementation of Services Procurements; 
Regulation on Implemen tation of Goods Procurements; Regulation on Implementation of Works 
Procurements; Regulation on Implementation of Consultancy Services Procurements; Regulation 
on Implementation of Electronic Procurement; Regulation on Administrative Applications against 
Procurements; Regulation on Framework Agreements; and Regulations on Inspection and 
Acceptance (Works, Services, Goods, Consultancy Services).  
3.188.   Since its entry into force, the PPL has been amended several times. A significant and 
extensive amendment was adop ted in October 2008, to align Turkey's public procurement 
legislation with the EU acquis121, and the latest amendment dates from April 2015. The main 
changes to the procurement legislation during 2011 -15 include amendments to Law Nos. 6359, 
6504, 6518, and 6 552 that amended the provisions of Public Procurement Law and Public 
Procurement Contracts Law (Table 3. 38). The new amendments have increased the flexibility of 
decision -making in the evaluation of abnormally low tenders. Furthermore, the obligation to 
register with the Electronic Public Procurement Platform (EPPP) is a significant step in reaching a 
fully electronic procurement system.  
Table 3.38 Main amendments to Turkey's procurement legislation, 2011 -15 
Law and date of 
amendment  Before amendment  After amendment  
Law No. 6518, Official 
Gazette  No. 28918 of 19 
February 2014  Before rejecting abnormally low tenders, 
the contracting entity shall request 
explanation from the related tenderers.  Evaluation of abnor mally low tenders:  
According to Article 38 of PPL, the Public 
Procurement Authority is entitled to set limit values 
and enquiry criteria in order to identify and evaluate 
abnormally low tenders and to determine 
economically most advantageous tender in 
accordance with the type, characteristics and 
estimated cost of the subject matter of the 
procurement and the procedure; to conclude a 
procurement procedure without requiring the 
explanation provided for in this article; also in case 
of procurement of services  and works of which the 
estimated costs are up to half of the threshold 
values provided for in Article 8 of PPL, to make 
regulations regarding the rejection of tenders which 
are below the limit values without requiring 
explanation provided for in this arti cle. Also, tender 
commission shall use the regulations for the 
implementation of this article.  
 
The Public Procurement Authority determined 3 
different rules regarding the evaluation of 
abnormally low tenders. In this regard, provided 
that it is stated in prequalification notice and 
document:  
 
(1) Before rejecting abnormally low tenders, the 
contracting entity shall request explanation from the 
related tenderers; or  
 
(2) The contracting authority may conclude a 
procurement procedure without requiring an 
explanation; or  
 
(3) The contracting authority may decide to reject 
tenders which are below the limit values without 
requiring an explanation.  
Amended in Regulation on 
Implementation of Works There was not such a registration 
requirement to EPPP.  Provision of procurement and pre -qualification 
documents : 
                                               
119 Law No. 4734.  
120 Law No. 4735.  
121 WTO docume nt WT/TPR/S/259, 17 January 2012, paragraph 109.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Law and date of 
amendment  Before amendment  After amendment  
Procurements:  
Official Gazette  No. 29023 
of 7 June 2014   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
There was not such a requirement.  It is compulsory that procurement and pre -
qualification documents be purchased from the 
contracting  authority or downloaded from EPPP by 
using an e -signature. The fee for the document shall 
not be paid when it is downloaded from EPPP by 
using e -signature.  
 
According to the new regulations, it is mandatory 
for domestic tenderers to be registered to the E PPP 
and to be willing to participate in the pre -
qualification or tender proceedings.  
 
Also, prequalification and tender documents may be 
reviewed free of charge at EPPP and the address of 
the administration specified in the notice.  
 
Work experience certifi cates:  
It is mandatory that work experience certificates be 
registered into the EPPP  
Law No. 6518, Official 
Gazette  No. 28918 of 19 
February 2014  There was not such a different 
performance bond regime regarding 
abnormally low tenders.  Performance bond for  abnormally low tenders:  
In order to ensure that the commitment is 
performed in accordance with the provisions of the 
contract and procurement documents, a 
performance bond calculated at 6% of the contract 
value shall be received from the successful tender er 
prior to signing of the contract.  
On the other hand, in case the bid price of the 
successful tenderer is below the limit value 
determining an abnormally low tender, the Public 
Procurement Authority may make regulations 
regarding the performance bond to be received from 
this tenderer provided that it is not less than 6% 
and not more than 15% of the estimated cost. It is 
determined as 9% by the Public Procurement 
Authority in the Implementation Regulation. In 
other words, if an abnormally low tender is 
determined as the economically most advantageous 
tender, a performance bond shall be received as an 
amount equal to 9% of the estimated value.  
Law No. 6518, Official 
Gazette  No. 28918 of 19 
February 2014  There was not such a regulation.  Joint procurement:  
A single procurement procedure may be held by 
implementing the procedures stated in PPL for the 
purpose of meeting common needs of two or more 
contracting authorities regarding goods and services 
and maintenance and repair.  
Law No. 6518, Official 
Gazette  No. 28918 of 19 
February 2014  Contracting authorities may insert some 
provisions to the tender documents with 
regard to a price advantage of up to 
15% that would apply to domestic 
tenderers who offer products which are 
accepted as domestic products . Domestic  Tenderers:  
It is mandatory to provide a price advantage up to 
15% in favour of tenderers offering domestic 
products in procurement of goods which are listed 
as medium - and high -technology industry products.  
Law No. 4734, Official 
Gazette  No. 29319 of 7 
April 2015  Goods and service purchases of 
Directorate General of Turkish Radio -
Television Corporation from The 
Anatolian News Agency were within the 
scope of PPL.  New exemption:  
New exemption was added to Article 2 regarding the 
procurement of goods and ser vices by the 
Directorate General of Turkish Radio -Television 
Corporation from The Anatolian News Agency with 
regard to any kind of programme, news, production 
and publication.  
Law No. 4735, Official 
Gazette No. 29335 of 23 
April 2015  There was not such a regulation.  Contracts:  
Liabilities regarding occupational health and safety 
were added to the matters that must be covered in 
the public procurement contracts.  
Law No. 6359, Official 
Gazette  No. 28463 of 10 
November 2012  In the former version, court order  or 
contracting authority decision was not 
required for prohibition.  Prohibition rule:  
Those who are temporarily or permanently 
prohibited by a contracting authority or court order 
from participating in public procurements pursuant 
to provisions of this La w or other laws cannot 
participate in any procurement, directly or indirectly 
or as a sub -contractor, either on their own account 
or on behalf of others.  
Law No. 6504, Official 
Gazette  No. 28835 of 28 
November 2013  There was not such a regulation.  Scope o f direct procurement:  
The method of direct procurement may be applied 
in periods of: election of the president by the public, 
holding referendums of laws regarding the 
constitutional amendments, general and by -WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Law and date of 
amendment  Before amendment  After amendment  
elections of parliament, general and by -electi ons of 
local administration and neighbourhood mukhtar, 
procurement of watermarked voting paper and 
watermarked voting envelope paper, procurement 
of services regarding voting paper printing, voting 
envelope production and procurement of all kinds of 
electi on materials for mentioned elections and any 
overseas election spending for the need of Supreme 
Election Board, and procurement of voting paper 
printing service by the chairmanships of Provincial 
Election Boards.  
Law No. 6552, Official 
Gazette  No. 29116 o f 19 
September 2014  There was not such an exemption.  New exemption:  
Procurement of goods, services and works to be 
realized in 2014 and 2015 within the scope of G -20 
Presidency, which Turkey will undertake for the year 
of 2015, is not subject to the PPL.  
Source:  Public Procurement Agency online information. Viewed at: http://www.ihale.gov.tr/Mevzuat.aspx ; 
and information provided by the authorities.  
3.189.   In addition to the above -mentioned laws and regulations , there are specific procurement 
rules for procuring entities governed by public law. Special laws regarding procurement by 
enterprises that carry out activities in the energy, water, transportation, and telecommunications 
sectors are pending. With respect  to SOEs, according to PPL, 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 PPL, follows the rules of PPL.  
3.190.   Exemptions to the procurement law are also granted to the relevant ministries for matters 
related to defence, security, or intelligence. Certain sectors or areas such as utilities, prisons, 
schools, state railways, air transport, and research and developme nt activities are also not covered 
by PPL. However, there is no institution in which purchases are totally outside of the scope of PPL. 
Furthermore, an exemption does not cover all public procurements of certain sectors or areas, but 
it covers only some sp ecific purchases. Goods, services and works procurement, which are decided 
by the relevant Ministry to be related to defence, security or intelligence , can be completely 
outside the scope of PPL. Moreover, procurement of goods and services, including offse ts, for the 
purposes of innovation, naturalization, and technology transfer are outside the scope. An 
implementation regulation regarding this exemption was adopted by the Ministry of Science, 
Industry and Technology.  
3.3.5.2   Procurement market and statistics  
3.191.   In 2014, public procurement in Turkey accounted for approximately 7% of GDP. Most 
procurement is through PPL, and although direct procurement has been significant, it has fallen 
during the period of review to 6.5% of total procurements in 2014. On average, exe mptions and 
exclusions account fo r less than 10% of procurements  (Table 3. 39). Approximately half of the 
annual amount procured is open to foreign suppliers. Over the period 2011 -14, the percentage 
subject to a price advantage to domestic suppliers ranged from 29 to 42% of the amount open to 
foreign suppliers (Table 3.4 0). The vast majority of procurement is from Turkish suppliers, 
averaging over 97% during the period. The next largest suppliers are the EU and U.S., which 
accounted for 0.9% and 0.1% of 2014  procurement levels, respectively (Table 3.4 1). 
Table 3.39 Procurement values, 2010 -14 
Year  PPL Direct 
procurement  Exemption  Exclusion  Total amount of 
public 
procurement  
Amount of 
contract 
(1,000 TL)  % Amoun t of 
contract 
(1,000 TL)  % Amount of 
contract 
(1,000 TL)  % Amount 
of 
contract 
(1,000 
TL) % Amount of 
contract 
(1,000 TL)  % 
2010 54,291,186  78.1 5,866,929  8.4 9,352,169  13.5 - - 69,510,284  100 
2011 62,958,815  68.6 16,912,958  18.4 11,870,195  12.9 29,438  0.03 91,771,406  100 
2012 76,634,709  81.2 10,554,256  11.2 7,121,725  7.5 88,033  0.09 94,398,722  100 
2013 89,237,530  84.6 6,433,774  6.1 9,273,471  8.7 619,325  0.59 105,504,100  100 
2014 97,420,824  85.8 7,419,983  6.5 8,393,401  7.4 206,708  0.23 113,494,916  100 
Source:  Information provided by the authorities.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.40 Domestic preferences, 2010 -14 
Year  Open to foreign 
suppliers (1,000 TL)  Price advantage for 
domestic suppliers in 
procurements open for 
foreign suppl iers 
(1,000 TL)  % 
2010 36,118,855  7,629,614  21.1 
2011 38,540,528  13,175,547  34.2 
2012 49,330,467  20,569,063  41.7 
2013 56,327,860  21,265,178  37.8 
2014 68,416,378  19,912,863  29.1 
Source:  Information provided by the authorities.  
Table 3.41 Major procurement suppliers, 2010 -14 
Year  Turkey  EU U.S. Other  
Amount of 
contract (TL 
1,000)  % Amount 
of 
contract 
(TL 
1,000)  % Amount 
of 
contract 
(TL 
1,000)  % Amount 
of 
contract 
(TL 
1,000)  % 
2010 62,497,212  98.2 793,000  1.3 103,029  0.16 250,114  0.4 
2011 71,004,795  94.9 3,495,440  4.7 140,937  0.19 217,276  0.3 
2012 81,514,069  97.2 1,051,825  1.3 59,713  0.08 1,218,589  1.5 
2013 97,014,878  97.9 1,310,054  1.3 55,421  0.06 689,973  0.7 
2014 104,359,989  98.4 975,251  0.9 64,973  0.06 674,717  0.6 
Source:  Information provided by the authorities.  
3.3.5.3   Institutional framework  
3.192.   Public procurement falls within the authority of the Ministry of Finance, which is 
responsible for core policy making, and a dedicated procurement authority, the Publ ic Procurement 
Agency (PPA). The State Supply Office (DMO), an affiliate organization of the Ministry of Finance, 
acts as a central purchasing body. However, public organizations are not obliged to purchase from 
DMO.  
3.193.   An EBRD country assessment dating from 2010 describes the PPA as organizationally and 
financially independent.122 It is comprised of the Presidency and its office and the Public 
Procurement Board, as well as service units.123 The latter is the decision organ of the PPA and 
consists of nine members appointed for a period of four years by the Council of Ministers upon the 
proposal of the Ministry of Finance. The PPA prepares, develops and guides the implementation of 
all the legislation concerning the PPL and Public Procurement Contracts Law; provides  training on 
procurement legislation; gathers information related to the contracts and tender proceedings; 
compiles and publishes statistics related to quantity, price and other issues; keeps records of those 
who are prohibited from participating in tender s; determines the principles and procedures 
concerning the establishment and operation of the Electronic Public Procurement Platform as well 
as the use of electronic means during the procurement process; provides opinions to contracting 
authorities about p ublic procurements; regulates the principles and procedures with regard to 
tender notices; publishes the Public Procurement Bulletin in printed or electronic media; and 
prepares standard procurement documents to be issued for the implementation of PPL.  
3.194.   The PPA may provide proposals to the Council of Ministers with respect to reciprocity in 
cases where it is established that domestic tenderers are prevented from participating in 
procurement proceedings in foreign countries. This is to ensure that the relevan t measures can be 
taken if necessary; however, this provision has not been used thus far.  
                                               
122 EBRD online information. Viewed at: http://ppl -report.ebrd.com/ . 
123 Public Procurement Agency online information. Viewed at: http://www.ihale.gov.tr/teskilat_semasi -
58-2.html . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.3.5.4   Domestic review  
3.195.   Suppliers who feel that they have suffered a loss of right or damage due to unlawful 
procedures or actions within the tendering process may file a com plaint to the contracting entity 
and then an appeal to the PPA. Furthermore, all decisions of the PPA can be challenged before the 
courts. This enforcement mechanism is designed  to be simple and the application fees required by 
the PPL are  not intended to be prohibitive. Tenderers have the right to seek remedial action, and 
the Administrative Jurisdiction Procedural Law provides for their right to seek compensation.  
3.196.   There are no statistics on the number of complaints submitted to contracting authorities. 
However, the number of appeals submitted to the Public Procurement Authority is approximately 
4% of public procurement contracts per year (Table 3.4 2). 
Table 3.42 Appeals to the Public Procurement Authority, 201 0-14 
Year  Number of complaints  Percentage of public contracts 
subject to complaints  
2010 4,281  3.2 
2011 4,670  3.8 
2012 5,282  4.4 
2013 5,093  4.4 
2014 3,942  3.9 
Source:  Information provided by the authorities.  
3.3.5.5   National preferences  
3.197.   There are two differe nt kinds of national preferences that are c urrently allowed by the PPL. 
First, if the value of the contract in question is below the threshold (for goods and services if the 
estimated cost is no more than TL 923,721 for contracting entities included in the  general or 
annexed budget; TL 1,539,538  for other covered contracting entities; and for works, 
TL 33,870,025 ) a procuring entity may confine the participation of procurement proceedings solely 
to domestic suppliers or contractors.  
3.198.   Secondly, regardless of the value of the contract, whether below or above the threshold, in 
procurement of service and works, up to a 15% price advantage may be granted for all domestic 
tenderers, and in procurement of goods, up to a 15% price advantage may be granted for 
tendere rs who offer domestic products, as determined by the Ministry of Science, Industry and 
Technology and other relevant institutions. However, this provision is not applicable for the 
domestic tenderers who participate in the tender proceedings by forming joi nt 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%.  
3.199.   The price of a tender submitted by a domestic supplier or contrac tor is calculated by 
adding a percentage of the tender price to the bid price of a foreign tenderer, and this adjusted 
price is used during the evaluation process.  
3.200.   The application of both above -mentioned types of national preferences is not mandatory; it 
is an option which the contracting entity may utilize, but it is not obliged to do so. However, in 
February 2014, the 'omnibus' law amended various aspects of Turkish public procurement 
legislation and introduced restrictive measures that make the previousl y optional domestic price 
advantage of up to 15 % compulsory for 'medium and high -technology industrial products'. These 
industrial products will be determined by the PPA with the input of the Ministry of Industry each 
year in January but generally cover m edical devices and pharmaceutical products.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.3.5.6   Participation in international agreements covering government procurement  
3.201.   Turkey has been participating as an observer in the WTO Committee on Government 
Procurement since June 1996.124 Turkey has not concluded any  regional trade agreements with 
government procurement chapters providing market access rights to foreign suppliers.  
3.3.6   Intellectual property rights  
3.202.   The main institutions responsible for intellectual property matters in Turkey remain the 
Directorate General o f Copyrights in the Ministry of Culture and Tourism (for copyright and related 
rights)125; the Turkish Patent Institute (TPI) for patents, trademarks, geographical indications, 
designs and chip topographies; and the Ministry of Food Agriculture and Livestock  for plant 
breeders' rights.126 The Intellectual and Industrial Property Coordination Board convenes twice per 
year to develop IPR strategies and improve coordination among  its participating institutions.127 
3.203.   Turkey has instituted a number of strategies during the review period that have had an 
impact on IP policy. The National Intellectual and Industrial Property Strategy paper provides an 
overall strategy for the sector for 2015 -18.128 It has four main goals: legislation and practice in 
line with Turkey's need to improv e intellectual property rights with effective implementation; 
ensuring adequate human and institutional capacity for the judicial, customs and law enforcement 
services actively involved in protecting intellectual property rights; to improve the eff ectiveness of 
the mechanisms for commercialization, market perception, and infrastructure in developing 
intellectual property rights; and increase public awareness about the intellectual property rights 
system, with the target of becoming an information - and knowledge -based society.  
3.204.   A Working Group on identifying national policies for geographical indications (GIs) was 
established. There were five goals for the strategy: developing a policy in parallel to the 
developments of national and international legis lation and administrative developments; 
developing and improving the capacity for scientific geographical indicators; effective protection of 
GIs in all sectors of society and raising awareness; creation of a functioning and effective control 
system for th e preparation of the application, improving the quality of applications; and to improve 
the effectiveness of marketing, increasing the value added of GIs.129 
3.205.   With respect to genetic resources, traditional knowledge and traditional cultural 
expressions, Turke y is preparing a roadmap for these areas. Additionally, a Design Strategy 
Document and Action Plan were adopted by the High Planning Council in 2014.  
3.206.   WIPO and TPI statistics indicate growth in the use of most forms of IP protection during 
the initial phase  of the review period, but many have levelled off or even slightly declined at a later 
stage of the review period. There were increases in most types of IP applications in 2011, followed 
by modest growth or decline during 2012 -14. There was a steady increa se in the filing of patents 
over the period, which can be attributed to the patent incentive systems (see para graph below ).130 
However, the number of patents granted climbed during the period, but then declined in 2014 due 
to a decline in the number of paten ts granted to foreign right holders. The number of trademark 
applications generally declined during the period, but the number of trademarks registered climbed 
                                               
124 WTO document GPA/M/2, 23 July 1996.  
125 The Directorate General of Copyrights' website. Viewed at: 
http://www.telifhaklari.gov.tr/ana/default.asp# . 
126 The Turkish Patent Institu te's website. Viewed at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/?lang=eng . 
127 The Board is composed of high -level representatives from the ministries of Justice, Interior, Health, 
Food, Agriculture and Livestock, Customs and Trade, and Economy; the Deput y Undersecretary of the Ministry 
of Development; the Director -General of Copyright and Cinema; the President of the Turkish Patent Institute; 
TUBITAK; and the EU Secretariat General.  
128 Turkish Patent Institute (2014), National Strategy Intellectual Propert y, 2015 -18, November 
(Turkish). Viewed at: http://www.tpe.gov.tr/TurkPatentEnstitusu/resources/temp/6B44E6D2 -7071-4F37-9FF4-
BFC28C19C76A.pdf . 
129 Turkish Patent Institute  (2014) ,National Strategy Paper on Geographical Indications, 2015 -18, 
November (Turkish). Vie wed at: http://www.tpe.g ov.tr/TurkPatentEnstitusu/resources/temp/5D1DDECD -C004-
4175-86B4-1BA236F79059.pdf . 
130 Turkish Patent Institute, Annual Report 2014 . Viewed at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/resources/temp/0110BDF0 -35CC -448F-A254-100173740F76.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  significantly. Overall, many factors have contributed to this general increase in the various ty pes of 
applications but the main factor can be attributed to the overall growth in the Turkish economy 
(Table 3.4 3). 
Table 3.43 IP statistics, 2011 -14 
 2011  2012  2013  2014  
Patents      
 Applications  10,241  11,599 12,053  12,394  
  Domestic  4,087  4,543  4,528  4,875  
  Foreign  6,154  7,056  7,525  7,519  
 Granted  6,539  7,816  8,925  8,530  
  Domestic  847 1,025  1,244  1,251  
  Foreign  5,692  6,791  7,681  7,279  
Utility models  3,244  3,788  3,541  3,568  
 Applications      
  Domestic  3,175  3,725  3,453  3,477  
  Foreign  69 63 88 91 
 Granted  1,976  2,299  2,037  2,551  
  Domestic  1,948  2,245  1,997  2,474  
  Foreign  28 54 40 77 
Trademarks      
 Applications  117,723  111,120  108,608  109,979  
  Domestic  103,747  97,269  93,320  95,964  
  Foreign  4,724  4,751  4,869  4,913  
  Madrid  9,252  9,100  10,419  9,102  
 Registered  42,059  64,769  83,334  87,544  
  Domestic  35,858  52,416  68,500  72,339  
  Foreign  2,788  3,683  4,329  4,826  
  Madrid  3,413  8,670  10,505  10,379  
GIs 32 registered GIs since 2010  
Industrial designs      
 Applications  36,578  41,034  46,121  42,568  
  Domestic  35,451  39,704  43,626  40,875  
  Foreign  1,127  1,330  1,495  1,693  
 Registrations  32,810  36,642  42,082  41,918  
  Domestic  31,782  35,464  40,678  40,129  
  Foreign  1,028  1,178  1,404  1,789  
Source:  Turkish Patent Institute, Annual Report 2014 . Viewed online at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/resources/temp/0110BDF0 -35CC-448F-A254-
100173740F76.pdf ; TPI online information. Viewed at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/statistics/ ; and information provided by the authorities.  
3.207.   The Patent Application Incentive and Support Programme and the more recent Patent 
Support Programme of TUBITAK were created to increase awareness for intellectual and industrial 
property rights and stimulate the filing of patents in Turkey. In particular, they provide grants to 
Turkish registered companies and individuals to offset the costs of  the patent. For national and 
international/regional applicants, grants of up to TL 3,000 are available, and for 
international/regional applicants, a support credit of up to TL 100,000 is also available. The Patent 
Application Incentive and Support Program me operated from 2006 to 2013, when it was replaced 
by the Patent Support Programme as of 1 January 2014. During 2014, the Patent Support 
Programme has received 2,398 requests for incentives.  
3.208.   Pursuant to the Decree on Developing Policy Tools to Stimulate D omestic Patent 
Licensing131, the TPI has worked with other organizations including the Coordination Council for 
the Improvement of the Investment Environment (YOIKK) and the Ministry of Finance to increase 
support for the commercialization of IP rights. In 2 014, a law was passed on Corporate and 
Income Tax Discounts for the Commercialization of Inventions which provides an effective tax rate 
of 20% for an invention as a result of research, development, innovation or software activities 
realised in Turkey and that was patented or utility -model certified.132 
                                               
131 Decree 2011/108.  
132 Law No. 6518, Official Journal  of 19 February 2014.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.3.6.1   Legal framework  
3.209.   There have been some minor changes to the main IP laws , decree -laws, and regulations in 
Turkey since the last Review in 2012. The key features of main IP laws and regulations are 
summarized in Table  3.44.  
3.210.   Turkey's copyright law, known as the Law on Intellectual and Artistic Works No. 5846, has 
undergone changes in Article 47 (Expropriation), in which works133 that are deemed important for 
the culture of the country can be expropriated under certa in conditions after the death of the 
author but before the expiry of the term of protection; and Addendum Art. 10  (Administrative 
fines) in which certain provisions related to fines were revoked by the Constitutional Court.  
3.211.   Although the copyright law is c onsidered as being substantially aligned with international 
conventions and the EU acquis, the law is undergoing a further review by the Ministry of Culture 
and Tourism in order to take into account developments at national and international level and to 
fully harmonize it with international conventions and the EU acquis. Key aspects of the envisaged 
amendments include the strengthening of the mechanism to fight digital piracy and changes to 
make collecting societies function more effectively.  
Table 3.44 Summary of Turkey's protection of intellectual property rights, 2015  
Main legislation  Duration  Selected coverage, 
exclusions and limitations  Fees/levies (2015)  
Copyrights     
Law on 
Intellectual and 
Artistic Wo rks 
(No. 5846) 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,  
-first broadcastin g 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 legal 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 of face -to-
face education (Art.  33) 
-Selected and collected works 
for educational and 
ınstructional 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 discs, 
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 
manufacturing or importation 
costs.  
This amount shall be exploited 
for strengthening IP system 
and supporting cultural and 
artistic activities.  
                                               
133 The works must have been created in Turkey or outside by Turkish citizens.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Main legislation  Duration  Selected coverage, 
exclusions and limitations  Fees/levies (2015)  
Patents     
Patent Rights 
Protection Decree 
(No. 551) and 
Amendment of 
the Transition 
Period of Patent 
Protection  on 
Pharmaceutical 
and Veterinary 
Products and 
Processes Decree 
(No. 566) 20 years from date of 
filing for fully protected 
patent following 
examination process  
 
7 years for non -
examined patents  
 
10 years for utility 
models  
 Patentability criteria: novelty,  
inventive activity/step, 
industrial applicability. Covers 
micro -organisms and 
microbiological processes and 
pharmaceutical products and 
processes. Exclusions include: 
discoveries, scientific theories 
and mathematical methods, 
games, surgical techniques, 
and plant and animal species, 
or methods of plant or animal 
breeding based on biological 
principles  Patent filing fee of TL 60 
(TL 40 online).  
Other fees for priority 
applications, time requests, 
publication, priority 
documents, registration, 
investigation,  search report, 
examination report,  etc., 
ranging from TL 15 to 
TL 2,110 (TL 10 to TL 1,755 
online).  
Trade marks     
Trade Mark 
Protection Decree 
(No. 556) and 
Directive on 
Trade and 
Service Marks  
 10 years (renewable). 
Failure to use marks 
within 5 years  of 
registration, or 
subsequent 5 year 
periods may result in 
cancellation.  Covers goods, service, 
guarantee marks and 
collective marks. Exclusions 
include: marks that might 
confuse the public.  Single filing fee of TL 255 
(TL 180 online).  
Registration certi ficate fee of 
TL 625 (TL 520 online).  
Other  fees for renewals, 
copies, recording, editing, 
opposition, handling fee, 
division of application, 
appeals, etc., ranging from 
TL 45 to TL 1,120 ( TL 30 to TL 
930 online).  
Geographical 
indications     
Protection o f 
Geographical 
Signs Decree 
(No. 555)b Indefinite  Covers all goods, in addition 
to wines and spirits.  Application fee of TL 115.  
Other fees for appeals, 
registration, copies, document 
fee, editing, etc., ranging 
from TL 50 to TL 165  
Industrial 
Designs     
Industrial 
Designs Decree 
(No. 554)  
 5 years from filing 
date, renewable for 5 - 
year periods to a 
maximum of 25 years.  Covers new and distinctive 
designs.  
Exclusions include: protection 
of textiles and computer 
programmes (covered by 
Copyright Law) and 
topographies of semi -
conductors  Single filing fee of TL 185 
(130 online).  
Other fees for publication, 
deferment, renewal, 
registration, transfer, licence, 
priority, examination, etc., 
ranging from TL 40 to TL 640 
(TL 25 to TL 530 online).  
Plant Varieties     
Law on the 
Protection of 
Plant Breeder's 
Rights for New 
Plant Varieties 
(No. 5042), and 
the Seed Law 
(No. 5553)  25 years after 
registration (30 years 
for trees, vines and 
potatoes)  Covers plant varieties that are 
found to be new, distinct, 
uniform and s table. Covers all 
plants.  Application fee of TL 620.  
Other fees for priority 
application, examinations, etc. 
ranging from TL 62 to 1,100.  
Integrated 
circuit 
topographies     
Law on the 
Protection of 
Integrated Circuit 
Topographies 
(No. 5147)  10 years from  the date 
of first commercial 
exploitation by rights 
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 semi conductor 
product. Reproduction for 
evaluation, analysis, research 
or teaching is permitted.  Application fee of TL 350.  
Other fees for objections, 
registration, amendments, 
extension, publication, 
mergers, re -registration, etc. 
ranging from TL 50 to 
TL 1,100. 
 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Main legislation  Duration  Selected coverage, 
exclusions and limitations  Fees/levies (2015)  
Protection of 
undisclosed 
information     
Human Medicinal 
Products 
Licensing 
Regulation 
(Article 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 
Turkey, the data 
exclusivity period is 
limited to the term of 
the patent  Medicinal products for human 
use n.a. 
n.a. Not applicable  
a Industrial designs may be covered by both the Copyright and the Industrial Design Law. The term is 
70 years  under the former and 20 years under the latter. Where the work is protected under both 
laws, a rights holder may choose either or both.  
b Protection for unregistered geographical indications is provided through the unfair competition 
provisions  of the Turkish Commercial Code.  
 These laws were amended by the Amending Law of Patent, Design, Geographical Indications and 
Trade Mark Decree (No. 1428).  
 These laws were amended by the Law Amending the Decree -Laws on the Protection of Patent, 
Industrial  Designs, Geographical Indications and Trade Mark (No. 5194).  
 
Note:  Online information. Viewed at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/fees/informationDetail?id=1 09; and  
http://www.tpe.gov.tr/TurkPatentEnstitusu/fees/informationDetail?id=110 ; and 
http://www.tpe.gov.tr/TurkPatentEnstitusu/fees/informationDetail?id=105 ; and 
http://www.tpe.gov.tr/TurkPatentEnstitusu/fees/informationDetail?id=111 ; and 
http://www.tpe.gov.tr/TurkPatentEnstitusu/fees/informationDetail?id=107 . 
Source:  WT/TPR/S/259/Rev.1, 7 March 2012; EIU online information. Viewed at: www.eiu.com ; WIPO Lex 
online information. Viewed at: http://www.wipo.int/wipolex/en . 
3.212.   Since 2012, a provision of the Decree Law No. 551 for the protection of patents, and three 
provisions of the Decree  Law No. 556 for the protection of trademarks have been cancel led by the 
Constitutional Court . All four decisions of the Court were published in the Official Gazette .134 
3.213.   In 2013, a draft law containing provisions related to patents, trademarks, designs and 
geographical indications was prepared in consultation with relevant stakeholders. However, the 
draft law was not adopted by the Parliament.135 As of December 2015, upon the instruction of the 
Ministry of Science, Industry and Technology, work on the preparati on of a draft law for industrial 
property rights ha d restarted. 
3.214.   Provision is made under Turkey's patent legislation for the granting of compulsory licences 
(CLs) ;Turkey's Decree -Law 551 regulates the application and implementation of CLs in Turkey. In 
particular, Article 99 provides the grounds for a CL to be granted under any one of the following 
conditions:  non-use of the patent, noting that the patent must be used within three years from 
publication and that when assessing "use", market conditions are ta ken into consideration; 
dependency of the patent on a prior patent whereby the patent holder has been granted 
authorization or a CL; and on public interest grounds where there is great importance for public 
health or national defence, or where non -use coul d cause serious damage to Turkey's economic or 
technical development.  
3.215.   Article 97 regulates "proof of use", stating that the patent proprietor or the authorized 
person shall prove the "use" by an official document before the TPI. The "use document" shall be  
                                               
134 Official Gazette  of 29 May 2014 (patents), 24  July 2014 (trademark), 15  May 2015 (trademark ) and 
2 June 2015 (trademark) . 
135 Turkish Parliament online information. Viewed at: 
https://www.tb mm.gov.tr/sirasayi/donem24/yil01/ss474.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  prepared by the Authority and according to the general criteria mentioned in the regulation 
(i.e. implementing regulation of Article 40 ). The document, inter alia , confirms that if the 
invention, which is the subject of the patent, is put on sale or is us ed, then the patent  is assumed 
to be used.  
3.216.   The application for a CL is made before a court (Article 108) and if the conditions are met, 
the court initiates the procedures regarding a CL request. Related Articles 109 to 111 provide for 
engagement in the pro cedure, CL decision, and costs related to the decision.  
3.217.   At end 2015, t he only CL to have been granted was in 1998. In one other case, the TPI 
was requested to initiate a mediation procedure with reg ards to a CL.  
3.218.    In May 2014, Turkey accepted the Protocol Amending the TRIPS Agreement under which 
special compulsory licences for the export of medicines to countries with insufficient or no 
manufacturing capacities in the pharmaceutical sector will become a permanent part of the TRIPS 
Agreement.  
3.219.   With respect to  parallel imports, the decree -laws for the protection of patents, trademarks, 
and industrial designs have provisions for the implementation of national exhaustion.136 The law 
for topographies of integrated circuit s contains provisions that adopt the internat ional exhaustion 
doctrine.137 
3.3.6.2   International agreements and conventions  
3.220.   Turkey is signatory to a number of IPR conventions and treaties (Table 3.4 5), and has 
signed the WIPO Marrakesh Treaty to Facilitate Access to Published Works for Persons who are 
Blind, V isually Impaired or Otherwise Print Disabled on 1 November 2013 and ratification was 
ongoing as of December 2015.  
Table 3.45 Membership in international agreements, conventions and treaties, 2015  
Name  Date of membership  
Paris Convention on the Protection of Industrial Property (1883)  10 October 1925  
Berne Convention for the Protection of Literary and Artistic Works (1886)  1 January 1952  
Convention Establishing WIPO (1967)  12 May 1976  
Rome Convention for the  Protection of Performers, Producers of Phonograms 
and Broadcasting Organizations (1961)  8 April 2004  
Nice Agreement concerning the International Classification of Goods and 
Services for the purpose of Registration of Marks (1957)  1 January 1996  
Patent C ooperation Treaty (1970)  1 January 1996  
Vienna Agreement Establishing an International Classification of the Figurative 
Elements of Marks (1973)  1 January 1996  
Strasbourg Agreement Concerning the International Patent Classification 
(1971)  1 October 1996  
Budapest Treaty on the International Recognition of the Deposit of Micro -
Organisms for the Purpose of Patent Procedure (1977)  30 November 1998  
Protocol relating to the Madrid Agreement (1996)  1 January 1999  
Locarno Agreement Establishing an Internationa l Classification for Industrial 
Designs (1968)  30 November 1998  
Patent Law Treaty  2 June 2000  
European Patent Convention (1973)  1 November 2000  
Hague Agreement (International Deposit of Industrial Designs)  1 January 2005  
Trademark Law Treaty  1 January 2005 
Singapore Treaty on the Law of Trademarks  28 March 2006  
WIPO Copyright Treaty  28 November 2008  
WIPO Performances and Phonogram Treaty  28 November 2008  
WIPO Marrakesh Treaty to Facilitate Access to Published Works for Persons 
who are Blind, Visuall y Impaired or Otherwise Print Disabled  1 November 2013 
(ratification ongoing)  
Source:  WTO document WT/TPR/S/259/Rev.1, 7 March 2012 and information provided by the authorities.  
                                               
136 Decree -Law No . 556 on Trademarks , Article 13 ; Decree -Law No.  551 on Patents, Article 76 ; 
Decree -Law No . 554 on Designs, Article 24 . 
137 Law No.  5147 on Integrated Circuits, Article 12.c (International Exhaustion ). WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.221.   In the context of Turkey's accession negotiations to the European Union, Turke y is 
participating in a joint Turkey -EU Intellectual Property Rights (IPR) Working Group on institutional, 
legislative, enforcement and public -awareness -related issues. As noted by Turkey during its last 
review, since legislative alignment is at an advance d level, most of the discussions within the 
group have been aimed at enhancing implementation, through exchange of best practices. The 
main areas where legislative amendments are needed to achieve full harmonization are: revision 
of the definition of some of the rights of authors and relate d right holders in line with 
EU Directives; extension of the scope of the prohibition of the act of circumvention of technological 
measures and revision of database protection taking into c onsideration electronic and 
non-electronic databases. These issues are being taken into consideration within the copyright law 
drafting studies.  
3.222.   Working group meetings are held at least once a year, and part of these meetings are 
open to the IPR stakeholders from the private sector.138 Issues discussed under the IPR Working 
Group since 2012 are: a new draft law  on industrial and intellectual property rights, seized 
counterfeit goods which were released back to the Turkish market as a consequence of the 
Decision No. 2008/2 of July 2008 of th e Turkish Constitutional Court, bad faith trademark and 
design registrations, security -related issues during the counterfeit goods raids, protection of 
well-known trademarks, mechanisms of collective management of rights and collecting societies in 
Turkey,  digital piracy, private copying levies, public performance rights, software use in the public 
sector, EU's Technical Assistance and Information Exchange ( TAIEX ) technical assistance, 
awareness raising activities, EU Orphan Works Directive, copyright excep tions in educational 
institutions and public lending, examinations, decisions and oppositions related to trademarks and 
designs, biotechnological inventions, secondary medical use patents, patentability criterion, filing 
process for patents, expert witness  system in Turkey, compensations, enforcement issues, and 
customs -related issues (i.e. risk management system, border measures, etc.).  
3.223.   Provisions on intellectual property rights are incorporated or are being negotiated with 
Turkey's FTA partners: Albania, Bosnia and Herzegovina, Chile, EFTA, Morocco, and Tunisia; and 
also within the regional ECOTA.  
3.3.6.3   Border measures and enforcement  
3.224.   The Directorate -General of Customs in the Ministry of Customs and Trade remains 
responsible for border measures; it has the autho rity to suspend customs transactions for goods 
considered as infringing IP rights either on the basis of an application by a rights holder or its 
representative, or on its own initiative.139  
3.225.   Turkish Customs have the power to act ex -officio if there is a sus picion of an IPR 
infringement. In such cases, customs have to identify the right holder and an application must be 
submitted within 3 working days in order for customs to be able to continue the detention or 
suspension of the release of the goods. However,  the majority of customs actions were initiated 
with prior application by the right holders.  
3.226.   A notification of the Turkish Ministry of Customs and Trade was issued on Intellectual and 
Industrial Rights in 2013 that makes it possible for right holders to lo dge applications for actions 
online since April 2013. Right holders apply online through the central IPR system with their 
electronic signatures; the applications are concluded online and the results conveyed to the 
applicants by e -mail. All customs office s can access the online applications from the secure 
intranet of the Ministry.  
3.227.   The number of applications for customs action  increased in recent years, from 635 in 2011 
to 1,038 in 2014. The top categories of detained articles in 2014 were mobile phones an d 
accessories, which accounted for 52% of the overall amount, followed by medicines (34%), labels 
(7%), clothing (3%) and cosmetics (1%) (Table 3.4 6). 
                                               
138 WTO document WT/TPR/M/259/Add.1, 5 June 2012.  
139 Law on Customs No. 4458, Article 57.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 3.46 Applications for customs action to the Turkish Ministry of Customs and Trade 
via the central IPR system, 2011 -14 
Year  Number of accepted applications  
2011 635 
2012 906 
2013 970 
2014 1,038  
Source:  Information provided by the authorities.  
3.228.   For a better central management of IPR customs issues, the Tu rkish Ministry of Customs 
and Trade established a new central IPR management unit in May 2013 under the Directorate -
General of Customs. Through the central IPR management unit, in -house trainings have been 
organised to improve the enforcement capacity and further increase the awareness among the 
customs officers. During 2013 -14, 441 customs officers received in -house trainings regarding IPR. 
A current major activity of the Turkish Ministry of Customs and Trade is the IPR Project submitted 
to the EU in the c ontext of the Instrument for Pre -Accession Assistance. The main objective of the 
Project is to establish a modernized and effective system of border protection of IPR in a way to 
ensure operational control throughout the Turkish Customs Territory. The proj ect is set to 
commence in 2016.  
3.229.   Turkey has 23 courts located in Istanbul, Ankara and Izmir, specialized to hear IP -related 
dispute cases; 13 of these are civil IPR courts and 10 are criminal IPR courts. IP cases in other 
geographical areas are handled by general civil courts and general criminal courts . Additionally 
public prosecutors' offices specialized in handling IP investigations have been established in seven 
major cities. Right holders may 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 used in the production of pirated and counterfeit goods; 
transfer of ownership, or destruction, of the products and th e means of production seized. The 
average length of conclusion of cases in specialized civil IP courts was reduced from 468 in 2011 to 
377 days in 2014 and in criminal cases it decreased from 291 to 249 days over the same 
time-period.140 
3.230.   Judges may not conve rt prison sentences into fines and 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 requirements or wi thout a 
banderole on the spot, without needing a court decision.  
3.231.   IP crimes and penalties are pursuant to the various IP laws, and are both civil and criminal 
in nature. Criminal penalties apply to copyright and trademark infringements and range from fines 
to imprisonment of up to seven years (Table A3.6). Various civil remedies apply to a range of IP 
violations (Table A3.7). 
3.232.   The Turkish National Police has set up specialized units to combat copyright infringement 
in Turkey's largest cities and has put in pl ace a general ban on illegal street stalls. It has also set 
up enforcement offices for IP crimes in its 81 provincial police departments and district 
directorates, which are authorized to inspect pirated goods.141 In order to enhance the efficiency, 
function ality and promptness of inspections regarding copyright infringements, 245 technical 
devices inspecting the originality of banderoles were distributed to 81 provincial inspection 
commissions. Moreover, with a view to acquaint prosecutors, judges, police of ficers and inspection 
commissions' representatives with legislation and recent IP developments, 9 training seminars 
were organized by the Ministry of Culture and Tourism. Additionally, in order to protect copyright 
and to contribute to creative industries,  seminars and miscellaneous activities are regularly being 
carried out or supported by the Directorate -General for Copyright in cooperation with public 
institutions, NGOs, and collecting societies.  
                                               
140 Information provided by the authorities. As noted in WTO document WT/TPR/M/259/Add.1, 
5 June 2012, the average conclusion period of the cases in specialized civil I PR courts was 618 days in 2008, 
603 days in 2009 and 544 days in 2010. In criminal cases it was 500 days in 2008, 312 days in 2009 and 
321 days in 2010.  
141 EIU online information. Viewed at: http://www.eiu.com . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  3.233.   Furthermore, a Protocol on Principles of Reciprocal Access , Sharing and Use of Data in the 
Field of Intellectual Property Rights was signed between the Ministry of Justice and Ministry of 
Culture and Tourism in 2010 with a view to providing electronic access to the information and 
documents in the judicial proces s and to strengthen the fight against violation of rights. Issues 
related to implementation procedures were still ongoing as of December 2015.  
3.234.   Turkey's National Intellectual and Industrial Property Strategy recognizes the slow 
judiciary process as one of i ts weaknesses.142 As noted by the EIU, while the courts have been 
effective in working with Turkish Internet Services Providers to block access to websites in 
response to complaints about copyright infringement, there are concerns about Turkey's 
enforcement regime regarding the role of ISPs in internet piracy; the need to compel ISPs with 
knowledge of infringement to cooperate with right holders seeking relief; and facilitate the 
identification of copyright infringers who may use ISP services to hide their id entities . The 
International Intellectual Property Alliance (IIPA) has drawn attention to the growth in use of 
circumvention tools, allowing internet and mobile users to override or neutralise the technological 
measures taken to protect software. Apparently  those subsectors especially affected by internet 
piracy are providers of music; online video streams; books; and educational, business and 
entertainment software.143 
                                               
142 Turkish P atent Institute, online information. Viewed at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/resources/temp/6B44E6D2 -7071-4F37-9FF4-BFC28C19C76A.p df.  
143 EIU online information. Viewed at: http://www.eiu.com . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture  
4.1.1   Overview  
4.1.  As the world's seventh -largest agricultural producer, Turkey has been promoting its 
agriculture sector and it continues to play an important role in the economy; the sector 
contributed to approximately 9% of Turkey's GDP and 21% to employment in 2014.1 Trade is very 
important to the sector, as both imports and exports grew 48% over the period 2010 -14, 
contributing to a growing trade surplus in agricultural products. Turkey produces a wide range of 
agricultural products but is a leading world producer and exporter of nuts, dried fruits, and some 
fresh vegetables.  
4.2.  Turkey's climatic conditions, geographical location, and fertile lands allow for a wide range of 
farming activities. Turkey has 38.4 million hectares of agricultural land, 14.6 million hectares of 
pastures and meadows, and 21.5 million hectare s of forest. In recent years the  numb er of 
large-scale commercial farms  has increased , although  small-scale or family farms still 
predominate. Turkey has 3 million agricultural holdings with an average size of 6 hectares.  
4.1.2   Production  
4.3.  The value of crop produ ction continued to rise during the review period,  reaching  a new 
record high of TL 98 billion  in 2014 . The largest contributor to crop production is the cereals 
sector, in particular wheat, which accounted for 13% of 2014 crop production. The vegetable 
sector is a large agricultural sector for Turkey, accounting for almost 30% of 2014 production. The 
most significant vegetable subsector  is tomatoes, which accounted for 12% of 2014 production. 
Hazelnuts are the largest earner for the fruit and nut category ( Table 4.1).  
Table 4.1 Major crop production, 2010 -14 
 Production value (TL million)  (% of total)  
2010  2011  2012  2013  2014 a 2010  2014 a 
Crop production ( total)  80,038  88,979  87,947  92,453  97,988  100.0  100.0  
          
Cereals and other products  28,464  35,708  33,158  39,124  42,035  35.6 42.9 
 Cereals, of which:  16,466  20,424  20,171  24,735  24,065  20.6 24.6 
  Wheat  10,257  13,038  12,321  14,901  14,389  12.8 14.7 
  Maize  2,011  2,347  2,563  3,429  3,658  2.5 3.7 
  Rice in the husk  1,002  1,007  925 1,136  1,468  1.3 1.5 
  Barley  2,917  3,680  3,979  4,822  4,134  3.6 4.2 
  Potatoes; dried leguminous 
vegetables; edible roots and 
tubers, of which:  4,877  5,389  4,806  4,717  7,582  6.1 7.7 
  Potatoes (other)  2,804  3,300  2,282  2,272  4,955  3.5 5.1 
  Dry pulses  2,072  2,088  2,524  2,445  2,627  2.6 2.7 
   Oil seeds  1,829  2,225  2,578  3,109  3,368  2.3 3.4 
   Tobacco  364 427 825 998 742 0.5 0.8 
   Sugar beets  2,063  2,109  1,880  2,416  2,635  2.6 2.7 
   Fodder crops  26 22 19 16 18 0.0 0.0 
   Raw materials used in 
textiles, of which:  2,642  4,883  2,758  2,941  3,467  3.3 3.5 
    Cotton (raw)  2,642  4,883  2,758  2,941  3,467  3.3 3.5 
   Plants used in perfumery, in 
pharmacy or for similar 
purposes  196 229 122 192 160 0.2 0.2 
          
Vegetables  26,589  25,540  25,523  25,603  26,099  33.2 26.6 
  Bulb and root vegetables  3,062  3,215  2,475  2,368  2,412  3.8 2.5 
 Vegetables cultivated for their 
fruits, of which:  21,536  20,346  20,963  21,304  21,639  26.9 22.1 
     Tomatoes  11,331  9,775  10,337  10,671 10,791  14.2 11.0 
     Cucumber  1,761  1,898  2,083  1,986  1,993  2.2 2.0 
     Pepper  2,106  2,492  2,482  2,404  2,333  2.6 2.4 
                                               
1 OECD (2014), Agricultural Policy Monitoring and Evaluation 2014 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   Production value (TL million)  (% of total)  
2010  2011  2012  2013  2014 a 2010  2014 a 
     Leguminous vegetables  1,456  1,720  1,752  1,729  1,822  1.8 1.9 
  Other vegetables n.e.c.  1,991  1,979  2,085  1,931  2,049  2.5 2.1 
          
Fruits, beverage and spices 
crops  24,985  27,731  29,266  27,726  29,854  31.2 30.5 
  Grapes  3,326  3,694  3,516  3,402  3,345  4.2 3.4 
  Citrus, pomes, stones, nuts 
and other fruits, of which:  20,201  22,548  24,063  22,510  24,290  25.2 24.8 
   Oranges  1,307 1,580  1,142  1,003  968 1.6 1.0 
   Apples  2,688  3,353  3,164  3,071  2,716  3.4 2.8 
   Peaches  796 851 831 834 938 1.0 1.0 
   Cherries  929 1,430  1,441  1,586  1,488  1.2 1.5 
   Olive 3,313  3,628  3,750  3,009  3,653  4.1 3.7 
   Hazelnuts  2,538  2,296  3,496  2,904 3,760  3.2 3.8 
   Walnuts  1,254  1,398  1,745  1,899  1,885  1.6 1.9 
   Pistachios  1,411  1,222  1,506  1,013  1,436  1.8 1.5 
  Spices, not processed  302 283 312 362 481 0.4 0.5 
   Green tea  1,155  1,207  1,375  1,451  1,739  1.4 1.8 
a 2014 data is provisional.  
Sources:  Turkstat, Agricultural Structure (production, price, value) Publication; Turkstat, The Summary of 
Agricultural Statistics Publication.  
4.4.  Animal production in Turkey now outperforms crop production in terms of value. A large 
surge in 2010 -11 saw animal  production surpass crop production and double from 2009 levels. The 
reasons for this increase can be attributed to a slight decline in the rate of growth for plant 
production due to drought between 2010 and 2011 ; the number of registered sheep and goat s 
increased ; and investment supports  and breeding programmes increase d the quality of 
plantation s. During 2011 -14, the value of animal production has been more volatile than crop 
production, reaching a record high of TL 113 billion in 2012 then falling (to TL  98 billion) in 2013, 
rebounding to TL 107 billion in 2014, but not surpassing 2012 levels. It is also noted that figures 
for 2013 and 2014 would be higher and could surpass 2012 levels but there was no reportable 
poultry production for those years due to statistical issues, thus the totals are not comparable and 
likely undervalued. The production of livestock slightly outpaces the production of animal products 
(Table 4.2).  
Table 4.2 Major animal production, 20 10-14 
 Production Value  (TL million)  (% of total)  
2010  2011  2012  2013  2014 a 2010  2014a 
Animal  production (total)  85,001  102,649  112,868  98,115  106,844  100.0  100.0  
 Livestock production:  46,873 60,077 63,547 57,656 62,512 55.1 58.5 
  Sheep   9,563 12,488 13,228 13,460 13,893 11.3 13.0 
  Goats  2,126 3,028 3,484 3,801 3,957 2.5 3.7 
  Cattle  31,969 40,959 42,875 36,395 40,311 37.6 37.7 
  Buffalos  178 241 282 257 301 0.2 0.3 
  Horses  160 167 141 126 122 0.2 0.1 
  Hens 2,512 2,834 3,168 3,232 3,524 3.0 3.3 
 Animal product production:  38,128 42,572 49,322  40,459 44,333 44.9 41.5 
  Milk 12,820 13,768 17,039  18,284 20,163 15.1 18.9 
  Meat 14,306 14,606 16,266  16,035 17,355 16.8 16.2 
  Hides  119 126 134 161 190 0.1 0.2 
  Wool 103 119 124 108 109 0.1 0.1 
  Poultry meat  6,918 8,716 9,713  b b 8.1 0.0 
  Eggs 2,381 3,449 4,217  3,863 4,347 2.8 4.1 
  Honey   1,428  1,726 1,763  1,941 2110 1.7 2.0 
a 2014 data is provisional.  
b While there were no reportable poultry production values for 2013 and 2014, there was  poultry 
production for those years. Production quantity figures indicate a growing value for poultry 
production in these years.  
Source:  Turkstat, livestock production values; Turk stat, animal product production values.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.5.  Both the lives tock and the animal pr oduct sub sectors grew during 2010 -14 but livestock grew 
at a faster pace, resulting in a nearly 60% share of the animal production total for 2014. Over one 
third of animal production is cattle, and the next most important category, in terms of value, is 
milk with a nearly 20% share.  
4.1.3   Trade  
4.1.3.1   Overview  
4.6.  Turkey has a trade surplus in agricultural products (WTO definition)2 with exports of about 
US$17.6 billion and imports of about US$14.6 billion in 2014. Trade in agricultural products has 
increased faster than t rade in other products and, in 2014, represented over 11% of total exports 
and about 6% of total imports, up from 8% and 4%, respectively, in 2008.  
4.7.  Over the past five years, imports of raw materials and exports of processed goods have 
increased in parallel : as imports of cotton, wheat, and tobacco increased, exports of textiles, flour 
and confectionary, and tobacco products also increased. The trend in importing raw materials is 
also reflected in inputs for agriculture as imports of feedstuffs, such as maiz e and soya beans, and 
exports of chicken meat, all increased.  
4.8.  Despite the large increases in exports of products based on basic agricultural commodities, 
nuts (especially hazelnuts) remain the main export – although export growth has not been as 
strong as for other traditional exports like citrus fruits, grapes, or tomatoes (Table 4.3 and 
Table  4.4). 
Table 4.3 Exports of agricultural products , 2010 -14 
(US$ million)  
  2010  2011  2012  2013  2014  
 Total exports  113,979 134,915  152,537  151,803  157,715  
 Total agriculture exports  11,899  14,350  15,105  16,707  17,635  
 of which       
0802 Other nuts, fresh or dried  1,045  1,199  1,254  1,258  1,560  
1905 Bread, pastry, cakes, biscuits and other 
bakers' wares  487 622 739 878 939 
0805 Citrus fruit, fresh or dried  862 1,065  898 931 933 
1101 Wheat or meslin flour  598 892 841 947 933 
2008 Fruit, nuts and other edible parts of 
plants  582 695 724 731 876 
1512 Sunflower -seed, safflower or cotton -seed 
oil 103 341 418 496 790 
0806 Grapes, fresh or dried  622 682 683 678 679 
0207 Meat and edible offal, of the poultry of 
heading 01.05  203 385 527 608 651 
1806 Chocolate and other food preparations 
containing cocoa.  364 434 479 543 577 
1704 Sugar conf ectionery, not containing 
cocoa  279 329 403 490 537 
2401 Unmanuf actured tobacco; tobacco refuse  401 369 427 439 517 
1902 Pasta, whether or not cooked or stuffed  186 285 358 494 507 
2402 Cigars, cheroots, cigarillos and cigarettes  240 248 333 374 464 
0702 Tomatoes, fresh or chilled.  477 432 401 391 427 
Source:  UNSD Comtrade.  
4.9.  The main destination for exports of most agricultural products varies depending on the 
product: in 2014 the EU was the main destination for hazelnuts (which make up practically all of 
HS 0802), preparations from nu ts (HS 2008), grapes (HS 0806), and sugar confectionary 
(HS 1704); Iraq for bakers' wares (HS 1905), flour (HS 1101), sunflower seed oil (HS 1512), and 
chicken meat (HS 0207); and the Russian Federation for citrus fruits (HS 0805).  
                                               
2 For the purposes of this section of the Trade Policy Report, the definition of agricultur e product used is 
that set out in Annex 1 of the Agreement on Agriculture where fish and fish products are taken to include 
HS Headings 020840, 03, 051191, 1504, 1603, 1604, 1605, and 230120.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 4.4 Imports of agricultural products , 2010 -14 
(US$ million)  
  2010  2011  2012  2013  2014  
 Total imports  185,541  240,839  236,544  251,661  242,224  
 Total agricultural imports  9,865  13,477  12,599  13,398  14,554  
 of which       
5201 Cotton, not carded or combed  1,720  1,850  1,275  1,681  1,750  
1001 Wheat and meslin  655 1,623  1,126  1,289  1,546  
1512 Sunflower, safflower or cotton -seed oil  274 629 988 919 1,201  
1201 Soya beans, whether or not broken  742 687 685 643 1,120  
1511 Palm oil and its fractions  318 454 439 499 492 
2402 Cigar, cigarillo, cigarette  247 250 337 381 475 
2106 Food preparations not elsewhere specified 
or included  269 335 337 400 437 
2401 Unmanufactured tobacco; tobacco refuse  276 298 360 379 411 
1206 Sunflower see ds, whether or not broken  350 590 444 474 406 
0713 Dried leguminous vegetables, shelled  258 283 215 261 384 
1005 Maize (corn)  124 136 246 473 349 
Source:  UNSD Comtrade.  
4.10.  The main source of imports also depends on the product: in 2014, the United States w as 
the main supplier of cotton (HS 5201); the Russian Federation for wheat (HS 1001), sunflower 
seed oil (HS 1512), and maize (HS 1005); Paraguay and Brazil for soya beans (HS 1201); 
Indonesia for palm oil (HS 1511); the EU for other food preparations (HS 2106) , and sunflower 
seeds (HS 1206); Brazil for unmanufactured tobacco (HS 2401); and Canada for dried leguminous 
vegetables (HS 0713).  
4.1.3.2   TRQs  
4.11.  Turkey does not have any WTO TRQs bound in its WTO Schedule of tariff commitments, 
however, in the agricultural se ctor it maintains a number of autonomous TRQs and TRQs pursuant 
to FTAs (See section 3.1.5 .5 for an overview of all TRQs in Turkey).  
4.12.   The procedures and principles related to the administration and allocation tariff quotas are 
determined in the related Dec rees and Communiqués on Tariff Rate Quotas for Importation of 
Certain Agricultural and Processed Agricultural Products for the related country. In general, the 
importer applies for a licence for the quota from the Ministry of the Economy which in turns iss ues 
the licences on a first -come, first -served basis to importers or producers using them or consuming 
them in downstream production. Quotas are continually issued until the amount is exhausted.  
4.13.  Regarding autonomous quotas, during the period 2011 -15, the C ouncil of Ministers 
approved a number of tariff -rate quotas for agricultural products (Table 4.5) . These mainly 
concerned commodity crops, in particular wheat and rice. These quotas are issued in response to 
market conditions and to meet shortfalls in the domestic market. They are mainly issued to 
marketing boards (section 4.1.9). Turkey has an annual TRQ agreement of 80, 000 ton nes of sugar 
with the EU and these TRQs are renewed automatically every year ; they are also determined EU -
wide, rather than on a  country -specific basis . Sugar TRQs are administered by the Ministry of 
Economy.  
4.14.  The rules on the administration of tari ff quotas were modified in 20103 when the old 
Regulation on Import Quotas and Tariff Quota Administration  of 2004 was abrogated  and the 
Decision of the Council of Ministers4 became the applicable legislation for the administration of 
import tariff quotas. According to this Decision, individual communiqués lay down the specific rules 
applicable to the administration of quotas in question, bas ed on an economic analysis made for 
that particular product/product group. According to the authorities, t hese quotas are implemented 
in line with non -discrimination and transparency principles ; quotas are provided to all importers 
and their requests are e valuated based on their previous performances ; and q uotas are aimed to 
be provided in quantities that represent economic value.  
                                               
3 Regulation No. 27613 of 16 June 2010.  
4 Decision No. 27599 of 2 June 2010.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 4.5 Autonomous tariff -rate quotas, 2011 -15 
Product/ 
HS Code  Amount 
(tonnes)  End-date Rate (%)  Procedures  Reference  
Rice 100,000  1/9/2015  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision No. 
2013/4517 of 
25/03/2013 
Wheat  2,500,000  31/5/2016  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision 
No. 2014/6169 of 
24/03/2014  
Barley  1,000,000  31/5/2016  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision 
No. 2014/6169 of 
24/03/2014  
Corn 500,000  31/5/2016  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision 
No.2014/6169 of 
24/03/2014   
Rice 200,000  1/9/2016  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision 
No. 2014/6169 of 
24/03/2014  
Wheat, 10.01  1,000,000  31/5/2014  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision 
No. 2012/3590 of 
24/08/2012 
Barley, 10.03  500,000  31/5/2014  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision 
No. 2012/3590 of 
24/08/2012 
Maize, 10.05  500,000  31/5/2014  0 Subject to the issuance 
of an import licence 
from the Ministry of 
Economy  Decision 
No. 2012/3590 of 
24/08/2012 
Source:  Compiled by WTO Secretariat from the references noted therein ; and information provided by the 
authori ties. 
4.15.  Turkey had TRQs on 1,838 tariff lines in 201 5, on agriculture, prepared agricultural 
products, and fish  (Table 4.6) . Tariff-rate quotas for certain agricultural and processed agricultural 
products established pursuant to Turkey 's agreement with the E U, FTAs with Albania, Bosnia -
Herzegovina, Chile, Egypt, Georgia , Israel, Jordan, the former Yugoslav Republic of Macedonia , 
Mauritius, Palestine, Tunisia, Morocco, Montenegro, and Serbia, and the agreement with Iran are 
included . Turkey does not have not a ny absolute quotas or other quantitative restri ctions on 
agricultural products . 
Table 4.6 Turkey's TRQs, 201 5 
 
HS 2  Product 
description  No. of TLs  
(12 digit -
level)  In-quota rate  Out-of-quota rate  Volume  No. o f 
countries 
covered 
by TRQs 
(Range)  
  Average 
(%) Range  
(%) Average 
(%) Range  
(%)   
01 Live animals  26 31.7 0-67.5 77.7 15-135 2,260 -
4,025 
(tonne)  1–28 
02 Meat and edible 
meat offal  44 56.6 50-157.5  117.2  100-225 250-
14,100 
(tonne)  1-28 
03 Fish and 
crustaceans  250 7.8 0-18.75  32.8 30-37.5 10-8,000 
(tonne)  1–5 
04 Dairy produce  164 0.4 0-90 177.6  9-180 175,000 -
3,000,000 
(piece); 
50-3,700 
(tonne)  1-31 
06 Live trees and 
other plants; 56 0.0 0-24 24.6 3.9-46.8 5-3,400 
(tonne)  1-38 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  HS 2  Product 
description  No. of TLs  
(12 digit -
level)  In-quota rate  Out-of-quota rate  Volume  No. o f 
countries 
covered 
by TRQs 
(Range)  
  Average 
(%) Range  
(%) Average 
(%) Range  
(%)   
bulbs  
07 Edible 
vegetab les and 
certain roots and 
tubers  150 1.9 0-24.75  21.7 5-49.5 10-7,000 
(tonne)  1-39 
08 Edible fruit and 
nuts; peel of 
citrus fruit or 
melons  152 3.5 0-43.2 41.4 15.4-86.4 8-5,000 
(tonne)  1–41 
09 Coffee, tea, 
maté and spices  45 25.7 0-45 92.2 19.5-145 2-250 
(tonne)  1–35 
10 Cereals  42 0.2 0-65 69.4 15-130 200-
2,500,000 
(tonne)  1-34 
11 Products of the 
milling industry  76 2.8 0-27 26.3 4-54 50-2,000 
(tonne)  1–29 
12 Oil seeds and 
oleaginous fruits  83 0.7 0-17.5 24.0 3.9-35 10-15,000 
(tonne)  1–38 
15 Animal o r 
vegetable fats 
and oils  42 0.0 0-15.6 29.5 2.9-50 50-60,000 
(tonne)  1–30 
16 Preparations of 
meat, of fish or 
of crustaceans  60 12.3 0-40 85.0 54-121.5  100-600 
(tonne)  1–32 
17 Sugars and 
sugar 
confectionery  29 69.4 0-108 89.1 6.2-135 500-
80,000 
(tonne)  1–32 
18 Cocoa and cocoa 
preparations  21 1.3 0-7.62 8.6 8-15.4 500-3,500 
(tonne)  1–34 
19 Preparations of 
cereals, flour, 
starch or milk  84 1.7 0-29.6 9.1 3.8-37 10-1,000 
(tonne)  1–35 
20 Preparations of 
vegetables, fruit, 
nuts or other 
parts of plants  292 17.7 0-49.72  60.6 5.1-135.9  10-4,000 
(tonne)  1-39 
21 Miscellaneous 
edible 
preparations  44 0.9 0-7.35 9.5 5.1-17.3 10-3,000 
(tonne)  1–39 
22 Beverages, 
spirits and 
vinegar  126 16.4 0-35 62.6 5.4-70 250-2,500 
(hl); 
1,000,000 
(lt); 2,500 
(tonne)  1-38 
23 Residues and 
waste from the 
food industries  52 0.2 0-4.25 7.9 2-8.5 15-6,700 
(tonne)  1-33 
Source : Information provided by the authorities.  
4.1.4   Support programmes  
4.16.  Turkey has not notified its domestic support programmes to the WTO during the review 
period, thus t he discussion on supports relies heavily on information from outside sources, in 
particular the OECD . According to the Ministry of Food, Agriculture and Livestock, Turkey paid 
TL 9.1 billion in 2014 for direct support payments; by comparison, in 2011, TL 7 .84 billion had 
been paid in direct support payments.5 Over the period 2003 -14, a cumulative TL 70 billion had 
been paid and allocated as support payments.6 
4.17.  Supports for crops include diesel fuel support, certified seed support, chemical fertilizer 
support , and soil analysis support.7 Other supports are for insurance, rural development, and other 
                                               
5 Ministry of Food, Agriculture and Livestock online information. Viewed at: 
http://www.tarim.gov.tr/SGB/Belgeler/Bakanl%C4%B1k_Faaliyet_Ra porlar%C4%B1/2011_Yili.pdf . 
6 Ministry of Food, Agriculture and Livestock online information. Viewed at: 
http://www.tarim.gov.tr/SG B/Belgeler/Bakanl%C4%B1k_Faaliyet_Raporlar%C4%B1/2014%20FAAL%C4%B0Y
ET%20RAPORU.pdf . 
7 TMO website, online information. Viewed at: http://www.tmo.gov.tr/Main.aspx?ID=233 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  general regimes (Table 4.7). Turkey's Agricultural Basin Production and Support Model was 
adopted in 2011 to determine the agriculture basins, prepare an agricultu re inventory, provide 
production planning, and make projections for future demand. It provides a significant source of 
agricultural subsidies for Turkey.8 
Table 4.7 Turkey's Agricultural Support Programmes, 20 15a 
Support program me Type of 
support  Content  Amount of 
support 2014  
(1,000 TL)  Provider of support  
Agricultural basin model  Producer  Marginal payment of 
17 products in 30 
basins of Turkey   Ministry of Food, 
Agriculture and 
Livestock  
Certified seed and 
seedling  Producer  Payments made per 
area Full data 
collection not 
possible yet  Ministry of Food, 
Agriculture and 
Livestock  
Organic farming  Producer  Payments to registered 
farmers holding 
organic farming 
certificates  68,817  Ministry of Food, 
Agriculture and  
Livestock  
Farm advisory services  Producer  Ministry pays for 
advisory services  39,863  Ministry of Food, 
Agriculture and 
Livestock  
Soil analysis and 
fertilizer  Producer  For farms of 5 
hectares or more  101,814  Ministry of Food, 
Agriculture and 
Livestock  
Agriculture insurance 
support  Agricultural 
Insurance 
Pool Support for insurance 
against frost, storm, 
fire, flood, animal 
diseases etc.  357,407  Ministry of Food, 
Agriculture and 
Livestock  
IPARD support  Project -
based  Restructuring 
agriculture holdings  303,000 EU 
Compensatory payment 
support  Producer  Payments per hectare 
for tea pruning and 
potato wart  122,563  Ministry of Food, 
Agriculture and 
Livestock  
Rural development 
support  Producer 
and sector 
in general  Support to rural 
tourism, micro 
enterprises, 
diversification of farm 
activities in rural areas 
etc. 312,630  TKDK  
Provincial rural 
development support  Sector in 
general  Capital transfer to GAP 
region  75,922  Ministry of Food, 
Agriculture and 
Livestock  
Good agricultural 
practices  Producer  Payments to re gistered 
farmers holding good 
agricultural practice 
certificates  80,581  Ministry of Food, 
Agriculture and 
Livestock  
ÇATAK (Environmentally 
Based Land Utilization)  Farmers  Replacing 
environmentally 
intrusive agricultural  
practices with 
substantially less 
disrupting forms of 
land use, in areas of 
particular 
environmental value in 
terms of wildlife and 
other natural assets  54,787  Ministry of Food, 
Agriculture and 
Livestock  
                                               
8 According to the Ministry of  Food, Agriculture and Livestock's 2014 Annual Report, viewed at: 
http://www.tarim.gov.tr/SGB/Belgeler/Bakanl%C4%B1k_Faaliyet_Raporl ar%C4%B1/2014%20FAAL%C4%B0Y
ET%20RAPORU.pdf , TL 2,406,330,000 was paid in 2014 for the Agricultural Basin Production and Support, 
which accounts for 26% of overall support in 2014. Furthermore, two other support programmes listed in the 
2014 Annual Report appear to provide significant amounts of support, but were not confirmed by the 
authorities. The Premium Support and Livestock Support programmes provided TL 2,690,977,000 and 
TL 2,589,105,000 of support, respectively, in 2014.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Support program me Type of 
support  Content  Amount of 
support 2014  
(1,000 TL)  Provider of support  
Research and 
development  Project -
based  Support given to 
universities, NGOs, 
farmers ' associations, 
professional 
organisations and 
private sector for R&D 
projects  7,903  Ministry of Food, 
Agriculture and 
Livestock  
Farm accounting data 
network (FADN)  Agricultural 
enterprises  Support given to 
agricultural enterprises 
that voluntarily 
register in FADN  367 Ministry of Food, 
Agriculture and 
Livestock  
a According to the Ministry of Food, Agriculture and Livestock's 2014 Annual Report, 
http://www.tarim.gov.tr/SGB/Belgeler/Bakanl%C4%B1k_Faaliyet_Raporlar%C4%B1/2014%20FAAL
%C4%B0YET%20RAPORU.pdf , two other programmes were identified as possible support 
programmes but were not confirmed by the authorities. The Premium Support and Livestock Support 
programmes were listed as providing  TL 2,690,977,000 and TL 2,589,105,000 of support, 
respectively, in 2014 . 
Source:  Investment Support and Promotion Agency of Turkey online information. Viewed at: 
http://www.invest.gov.tr/en -US/infocente r/publications/Documents/FOOD.AND.AGRICULTURE 
.INDUSTRY.pdf ; Ministry of Food, Agriculture and Livestock Annual Report . Viewed at: 
http://www.tarim.gov.tr/SGB/Belgeler/Bakanl%C4%B1k_Faaliyet_Raporlar%C4%B1/2014%20FAAL
%C4%B0YET%20RAPORU.pdf ; and information provided by Turkish authorities.  
4.18.  Turkey's agriculture support has undergone many changes over the last 20 years leading to 
the mai ntenance of relatively high supports, at least in comparison to other OECD countries. The 
use of decoupled payments ceased in 2009 while output -based payments increased. Turkey's 
Producer Support Estimate (PSE) as reported by the OECD has generally increas ed over the review 
period, except for a slight decline in 2012. Market -based supports comprise the largest share of 
the PSE, accounting for 76% in 2014, an increase from 72% in 2011. The largest market -based 
supports are for beef and potatoes (Table  4.8). 
Table 4.8 Main measures of agricultural support, 2011 -14 
(TL million)  
 2011  2012  2013  2014  
Producer support estimate (PSE)  27,022.51  26,041.07  31,385.15  33,888.92  
Market price support (MPS):  19,441.98  18,904 ,39 23,977.86  25,650.24  
Wheat  1,044.22  2,095.04  2,097.48  2,728.40  
Barley  260.18  330.32  1,053.48  1,142.06  
Maize  126.07  0.00 0.00 597.22  
Sunflower  161.21  329.96  644.93  1,220.48  
Sugara 0.00 115.83  312,92  594,47  
Milk 2,632.41  2,314.56  2,912.36  1,935.66  
Beef 3,071.11  3,606.10  5,277.36  5,395.93  
Poultry  68.46  31.30  2,424.52  1,183.44  
Sheepmeat  31.33  76.19  2.11 -120.10  
Eggs 180.29  -41.23  -69.00  -167.57  
Apples  1,817.65  1,355.36  874.47  1,038.07  
Tomatoes  0.00 237.11  0.00 0.00 
Potatoes  2,044.43  1,362.56  1,330.64  3,560.18  
Tobacco  84.39  128.10  0.00 0.00 
Other MPS  7,920.22  6,963.21  7,116.61  6,541.99  
Deficiency payments:  2,434.49  2,736.55  2,639.91  2,689.09  
Cotton premium  792.27  1,123.69  1,037.21  1,075.23  
Milk incentive premium  0.42 0.47 0.47 0.54 
Beef meat  incentive premium  0.00 0.24 0.33 0.24 
Tea leaf premium  148.46  147.47  137.54  140.29  
Sunflower premium  251.91  225.98  208.58  216.23  
Soybeans premium  19.25  27.80  25.66  26.60  
Rapeseed premium  16.61  17.88  16.51  17.11  
Maize premium  181.07  180.81  194.52  225.76 
Wheat premium  826.57  814.08  807.13  782.45  
Barley premium  101.74  85.00  84.27  81.70  
Rye premium  1.43 1.00 0.99 0.96 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   2011  2012  2013  2014  
Oats premium  0.30 0.39 0.39 0.37 
Paddy premium  75.39  73.90  73.27  71.03  
Olive oil premium  19.07  37.85  53.04  50.57  
Input subsidies:  2,498.93  1,447.24  1,654.70  2,233.25  
Concessional loans  518.23  1,036.80  1,203.20  1,602.67  
Hybrid seed subsidy  20.41  17.04  18.35  24.21  
Pesticide subsidy (Treasury and sugar)  0.71 0.23 0.48 2.88 
Sugar beet return (estimated=rspse)  17.49  36.49  56.02  65.04  
Electricity subsidy (irrigation)  10.98  23.45  20.95  22.20  
Direct payments:  2,645.79  2,951.89  3,111.67  3,315.35  
Tea pruning payments  61.68  98.81  111.65  122.33  
Tobacco compensation payments  7.30 0.00 0.00 0.00 
Agri. Insurance - Crops  141.71  144.80  159.71  190.83  
Agri. Insurance - Livestock  99.98  118.47  130.67  156.13  
Transition payments  7.26 0.00 0.00 0.00 
Cattle breed registration payment  858.19  949.05  959.05  960.05  
Feed crops premium  252.90  292.80  302.80  312.80  
Diesel payment  580.11  607.59  645.59  700.0 0 
Fertilizer payment  620.54  717.19  779.01  850.00  
Land conservation  16.13  23.18  23.18  23.20  
Other:  2,280.26  0.00 1,371.23  1,028.57  
Duty loss  1,951.26  0.00 927.89  733.57  
Equity injection from Treasury to SEEs  329.00  0.00 443.35  295.00  
a According to th e authorities, there is no support for sugar.  
Source:  OECD, PSE . 
4.1.5   Strategy and policy  
4.19.  The Ministry of Food, Agriculture and Livestock's vision is to maximize producer and 
consumer satisfaction in the food and agriculture sector, and to transform Turkey into  a leading 
actor in the region, and a global actor on the world stage.9 In accordance with the Communiqué on 
the Strategic Plans to be Prepared by Public Administrations, the Ministry's 2013 -17 Strategic Plan 
builds on the previous plan, the 2010 -14 Strate gic Plan, and notes the significant changes and 
transformations prior to the adoption of the most recent plan. Turkey's recent agricultural 
transformation during 2010 -14 included the introduction of new laws ; a rural development 
strategy; the Agriculture B asins Production and Subsidies Model; acceleration of land consolidation 
works; increased food inspection and controls; reduction of credit interest rates to zero for most 
products; and a four -fold increase in agricultural supports. The introduction of new  laws was aimed 
at alignment with the EU acquis.  
4.20.  The 2013 -17 Strategic Plan identifies five strategic areas on which to focus, each containing 
specific goals and objectives (Table 4.9). The intention of the Plan is to move Turkey towards its 
2023 Vision fo r Agriculture in which Turkey aims to become a country that can feed its population 
with sufficient amounts of safe and high -quality foods; a net exporter of agricultural products; 
improve its competitiveness; and be influential in the field of agriculture  within its region and 
across the world.  
4.21.  Turkey's agricultural policy and strategy has also been influenced through its identification 
of five priority areas for harmonization with the EU, including:  
 Within the scope of improvement of agricultural statisti cs, the Strategy for Improvement of 
Agricultural Statistics System  is being prepared in cooperation between the Ministry  and 
Turkstat , and is in the final st age before submission to the EU.  
 As regards the Integrated Administration and Control System (IACS) , 'The Strategy on 
Identification and Registration Systems ' was prepared . It lays  down an action plan to fully 
implement the IACS system for agricultural payments. Also, t he Project on the Digitization 
of Land Parcel Identification System (LPIS) was starte d in October 2014.  
                                               
9 Ministry of Food, Agricult ure and Livestock online information. Viewed at: 
http://www.tarim.gov.tr/Sayfalar/AnaSayfa.aspx . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   Within the scope of the Association Council Decision No . 1/98 between Turkey and the EU, 
an import quota for 19 ,100 tonnes of frozen beef meat from EU member States was 
allocated to the Meat and Milk Board and an import licence was issue d for 2015.  
 In respect of organic farming, Turkey 's official application for the inclusion in the third 
country list has been an open question for years. Final evaluation by the Commission is still 
pending.  
 Pursuant to  a twinning project called 'Establishm ent of Pilot Turkish Farm Accountancy Data 
Network ', studies to establish a FADN in Turkey were started with 9 pilot provinces in 2007. 
As of 2015, the FADN system extended throughout the country; d ata is being collected from 
6,000 holdings . 
Table 4.9 Overview of the 2013 -17 Strategic Plan  
Strategic area  Goals  Objectives  
Agricultural 
production and 
security of supply  To ensure food security and 
access to quality agricultural 
products by protecting 
agricultural  production 
resources.  To protect, improve, and ensure sustainability of 
agricultural resources.  
To develop and spread methods and technologies to 
increase productivity and quality.  
To ensure food security and accessibility for 
agricultural products.  
Food safety  To ensure food safety from 
production to consumption in 
accordance with international 
standards.  To increase the efficiency of food and feed 
inspection services.  
To strengthen the infrastructure of food and feed 
enterprises, and to ensure compliance with 
standards.  
To increase public awareness on safe food.  
Phytosanitary, Animal 
Health and Welfare  To increase plant production 
through environmentally -
conscious and effective 
phytosanitary practices that 
also ensure s the preservation 
of quality. To improve and spread integrated and biological 
control practices in plant health services.  
To improve control and inspection services for plant 
protection products and application equipment.  
To improve internal and external quarantine 
service s in plant production.  
To control and eradicate 
animal diseases and pests, and 
to ensure animal welfare.  To improve animal disease and pests control 
services.  
To develop the necessary standards and systems to 
ensure animal welfare.  
Agricultural 
infrastructure and 
rural development  To develop agricultural and 
social infrastructures, and to 
increase the attraction of rural 
areas by ensuring rural 
development and prosperity.  To improve agricultural infrastructure services.  
To utilize agricultural prod ucts on site, and to 
increase their value added.  
To increase living standards in rural areas, and to 
ensure rural development.  
Institutional capacity  To ensure institutional 
perfection in order to provide 
rapid, effective and high -
quality services.  To activate institutional management systems and 
human resources management.  
To develop technological and physical infrastructure, 
and to improve social facilities.  
To strengthen institutional image, and to increase 
efficiency and visibility.  
Source:  Ministry of Food, Agriculture and Livestock, Strategic Plan 2013 -17. 
4.22.  Turkey's National Rural Development Strategy (NRDS) covers the period 2014-20, and was  
prepared by the Ministry and other relevant stakeholders to create an integrative policy framework 
for Turkey 's rural development efforts and enable the harmonization of Turkey 's rural development 
policy with that of the EU within the context of its accession process. In addition to these, NRDS 
aims to: 
 strengthen rural policy governance at both central a nd local levels ; 
 address  the negative effects of migration on rural areas ; 
 enhanc e harmonization with the EU acquis on agriculture and rural deve lopment in the 
pre-accession process;  
 reduce the development differences between rural and urban areas ; and  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   form a framework for the IPARD II Programme and Rural Development Action Plan.  
4.23.  NRDS 's framework has been determined on the basis of a national policy approach, strategic 
objectives (axis) in line with the main objective s, aims and principles, and a prioritie s and 
measures ' hierarchy. Various priorities and measures have been  determined under each objective . 
4.1.6   Export subsidies  
4.24.  Turkey has not notified export subsidies to the WTO Committee on Agriculture during the 
review period, but has notified them to the Commi ttee on Subsides and Countervailing Measures in 
2012 and 2014.10 According to the authorities,  the reason for submitting the information to the 
Committee on Subsides and Countervailing Measures was because t he content of the notification 
to the Committee on  Agriculture was different from the content of the notifications made to the 
Committee on Subsidies and Countervailing Measures.  Turkey's WTO Schedule contains 
44 commitments limiting subsidization  of exports.  
4.25.  Turkey's export subsidies are provided to deve lop Turkey's export potential in processed 
agricultural products. They have been provided through various decrees during the review period 
to producer/exporters or exporters.11 The subsidies take  the form of a deduction of debts to public 
corporations (taxe s, social insurance premium costs, energy costs, telecommunication costs) from 
the subsidy entitlement. Goods eligible are those of Turkish origin and products may be exported 
to all markets.  
4.26.  Pursuant to its subsidy notifications to the Committee on Subsid es and Countervailing 
Measures, Turkey's export subsidies vary significantly depending upon the product . During the 
review period there have been no changes in the percentage share of the product s eligible to 
receive the subsidy during 2013 -15. Since 2013 , the export subsidy rate notified has been 
changed from U .S. dollars  to Turkish Lira . The maximum payment rate has declined slightly in a 
number of cases (Table  4.10). According to the authorities, Turkey 's WTO commitments and its 
budgetary constraints det ermine the percentage  share eligible to receive the subsidy and its 
variations.  
Table 4.10 Turkey's export subsidies, 2013, 2014, and 2015, as notified to the 
Committee on Subsides and Countervailing Measures  
Product  Rate 
(TL/ton)  2013   2014   2015  
Share 
exported 
eligible to 
receive 
the 
subsidy  Maximum 
ratio of 
payment  Rate 
(TL/ton)  Share 
exported 
eligible to 
receive 
the 
subsidy  Maxi -
mum 
ratio of 
payment  Rate 
(TL/ton)  Share 
exported 
eligible to 
receive 
the 
subsidy  Maximum 
ratio of 
payment  
Cut flowers 
(fresh)  370  40% 10% 370 40% 10% 370 40% 9% 
Vegetables, 
frozen (exc l. 
potatoes)  145 45% 12% 145 45% 12% 145 45% 10% 
Vegetables 
dehydrated  670 40% 10% 670 40% 10% 670 40% 10% 
Fruits (frozen)  140 45% 8% 140 45% 8% 140 45% 6% 
Preserve, pastes  135 100%  8% 135 100%  8% 150 100%  8% 
Honey  120 32% 5% 120 32% 5% 120 32% 2% 
Homogenized 
fruit prepar -
ations  115 35% 5% 115 35% 5% 115 35% 5% 
Fruit juices 
(concentrated)  270 15% 12% 270 15% 12% 295 15% 12% 
Olive oil  50 100% 2% 50 100%  2% 30 100%  2% 
Prepared or 
preserved fish  450 100%  5% 450 100%  5% 450 100%  5% 
Meat of poultry 
(excl. edible 
offals)  350 41% 15% 350 41% 15% 350 41% 14% 
                                               
10 WTO documents G/SCM/N/220/TUR , 21 March 2012; and G/SCM/N/253/TUR , 11 March  2014.  
11 Decree No.  2010/5, Decree No. 2012/2 and Decree No. 2015/1.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Product  Rate 
(TL/ton)  2013   2014   2015  
Share 
exported 
eligible to 
receive 
the 
subsidy  Maximum 
ratio of 
payment  Rate 
(TL/ton)  Share 
exported 
eligible to 
receive 
the 
subsidy  Maxi -
mum 
ratio of 
payment  Rate 
(TL/ton)  Share 
exported 
eligible to 
receive 
the 
subsidy  Maximum 
ratio of 
payment  
Eggs 30 
TL/1,000 
pieces  65% 10% 30 
TL/1,000 
pieces  
 65% 10% 30 
TL/1,000 
pieces  65% 10% 
Preserved poultry 
meat products  450 50% 10% 450 50% 10% 450 50% 10% 
Chocolate and 
other food 
preparations 
containing 
chocolate  215 48% 6% 215 48% 6% 215 48% 5% 
Biscuits, waffles  215 18% 8% 215 18% 8% 215 18% 7% 
Macaroni 
vermicelli  120 32% 10% 120 32% 10% 120 32% 9% 
Source:  WTO documents G/SCM/N/220/TUR  and G/SCM/N/253/TUR ; and information provided by the 
authorities.  
4.1.7   Legal framework  
4.27.  Turkey's main agricultural law dates from 2006 and provides the overall framework for 
agriculture.12 It defines the princip les, objectives, and priorities of Turkish agricultural policy, and 
it determines strategies in accordance with policies and regulations supporting agricultural 
development, including agricultural support. Further it provides protection of biodiversity and  
genetic resources, ensures biosafety, provides for the establishment of product councils, and 
contains provisions on rural development . There are numerous other laws affecting agricultur e, 
some of which related to specific commodities, others to insurance s and credits, and others to 
cooperatives. There have been no major changes to the legislative framework during 2011 -15 
(Table 4.11).  
Table 4.11 Overview of Laws on Agriculture  
Law Reference  
Agriculture Law  Law No. 5488 of 18 April 2006  
Rice Law  Law No. 3039 of 11 June 1936  
Tea Act  Law No. 3092 of 4 December 1984  
Law on Planning Hazelnut Production and Determination of Planting 
Areas  Law No. 2844 of 16 June 1983  
Alcohol and Distilled Spirits Monopoly Law  Law No. 4250 of 8 June 1942  
Animal Protection Act  Law No. 5199 of 24 June 2004  
Cooperatives Law  Law No. 1163 of 24 April 1969  
Organic Farming Law  Law No. 5262 of 1 December 2004  
Sugar Law  Law No. 4634 of 4 April 2001  
Cotton Law  Law No. 2903 of 27 Janua ry 1936  
Fisheries Act  Law No. 1380 of 22 March 1971  
Agricultural Land Reform Law on Irrigation  Law No. 3083 of 22 November 
1984 
Law on Water  Law No. 831 of 28 April 1926  
Agricultural Credit Cooperatives and Law on Restructuring Agricultural 
Credit  Law No. 4876 of 6 June 2003  
Agricultural Credit Cooperatives and Unions  Law No. 1581 of 18 April 1972  
Agricultural Insurance Law  Law No. 5363 of 14 June 2005  
Agricultural Sales Cooperatives and Unions Law  Law No. 4572 of 1 June 2000  
Seed Law  Law No. 5553 o f 31 October 2006  
Agriculture and Rural Development Support Agency Law  Law No. 5648 of 4 May 2007  
Agricultural Producers' Union Law  Law No. 5200 of 29 June 2004  
Soil Conservation and Land Use Law  Law No. 5403 of 3 July 2005  
Tobacco and Alcohol Market Regulatory Authority Law  Law No. 4733 of 3 January 2002  
                                               
12 Agriculture Law, Law No. 5488, of 18 April 2006.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Law Reference  
Law on Protection of Breeder's Rights for New Plant Varieties  Law No. 5042 of 8 January 2004  
Law on Agricultural Engineering  Law No. 7472 of 6 May 1960  
Biosecurity Law  Law No. 5977  
Law on Veterina ry Services, Plant Health, Food and Feed  Law No. 5996 of 13 June 2010  
Source:  Ministry of Agriculture online information. Viewed at: http://www.tarim.gov.tr/Mevzuat/Kanunlar . 
4.28.  There have been some ch anges to the institutional framework. In 2011, the Ministry of 
Agriculture and Rural Affairs was re -organi zed and becam e the Ministry of Food, Agriculture and 
Livestock.13 It is responsible for policy formation, monitoring, and inspection activities for foo d, 
agriculture and livestock. The main activities of the Ministry are development of agricultural 
policies; food safety and security; rural development; conducting research; development of 
production; implementation of agricultural support programmes; and protection of land, water and 
biodiversity. It covers the plant, animal, acquaculture, and fishery sectors.  
4.1.8   Major agriculture sectors  
4.1.8.1   Hazelnuts  
4.29.  Turkey is the world's largest hazelnut producer, accounting for 65% of 2014 world 
production, or 68% during the period 2010 -14.14 Production declined in 2014, reaching the lowest 
level in 10 years, after steadily climbing during 2011 -13, due to negative climatic  conditions that 
caused fr ost damage . Hazelnut production is concentrated in 16 provinces, mainly located a round 
the Black Sea region, and production yields vary significantly by pr ovince, ranging from 18 to 
128 kg/h in 2014. Production is concentrated in the Black Sea region due to its sloping lands and 
for ecological reasons; and the wide variation in product ion yields is attributed to the age of the 
plantation s, land class, slope, fertilization, pruning , and pest control . Furthermore, although the 
world's leading producer, Turkey has a lower  yield per hectare than some other leading producers , 
such as Italy, the United States, and Georgia,  according to the FAO , because the plantations have 
completed their economic life.  
4.30.  Turkey is even more dominant in the world trade of hazelnuts, accounting for almost 80% 
of world exports.15 Turkey's hazelnut exports have mirr ored production trends, climbing steadily 
during 2011 -13, then declining in 2014. Traditionally the EU has been the major market for 
hazelnut exports accounting for over three quarters of exports, but this has declined in recent 
years. Domestic consumption  in Turkey has been less than one third of production during the 
period 2011 -14, thus the majority of hazelnuts are exported, many as processed hazelnuts.16 
Hazelnut processing has increased in recent years, and downstream products include roasted 
hazelnuts , hazelnut paste, and refined hazelnut oil. Prior to 201 0, there was government 
intervention in the market, but this has been phased out and  producers have been given 
area-based income support during the last six years, reportedly amounting to  TL 3.57 bill ion over 
six years .17 
4.1.8.2   Livestock  
4.31.  Turkey's livestock sector is a traditional and important agricultural sector for Turkey. It has 
exhibited strong growth during the review period with increases in production. As a traditional 
sector in Turkey, the livestock s ector has flourished due to investment supports and IPARD 
programmes.  In recent years, livestock production  has attracted one of the highest amounts of 
investment within the agriculture sector.  
                                               
13 Statutory Decree on the Organization and Duties of the Ministry of Food, Agriculture and Livestock, 
No. 639.  
14 TMO website, 2014 Hazelnut Report. Viewed at: 
http://www.tmo.gov.tr/Upload/Document/raporlar/2014findiksektorraporu.pdf&usg=ALkJrhiPLeNuWO_tL8YM7
ujGM79S -EdDaQ . 
15 TMO website, 2014 Hazelnut Report. Viewed at: 
http://www.tmo.gov.tr/Upload/Document/raporlar/2014findiksektorraporu.pdf . 
16 Ministry of Economy online information. Viewed at: 
http://www.economy.gov.tr/portal/conten t/conn/UCM/uuid/dDocName:EK -021170 . 
17 TMO online information. Viewed at: 
http://www.tmo.gov.tr/Upload/Document/raporlar/2014findiksektorraporu.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.32.  Livestock production is characteriz ed by small farms and is do minated by local breeds. As 
such, yield s are considered low compared to other countries. Higher demand for meat has led to 
rising prices in recent years , which has in turn led to increased production and value for the sector. 
It has also encouraged investm ent and led to inflationary pressures on food.  
4.33.  In terms of value of production, cattle dominate,  followed by sheep, then goats. The value 
of livestock p roduction fluctuated during 2011 -14, despite increasing livestock numbers – 
indicating prices have, in general,  decline d. In contrast to other livestock, the nu mber of horses 
has fallen steadily as they are slowly replaced by machines  (Table 4. 12). 
Table 4.12 Overview of the livestock sector, 2011 -14 
Totals and selected 
subsectors  2011  2012  2013  2014  
Number of livestock:      
 Cattle  12,386,337  13,914,912  14,415,257  14,223,109  
 Sheep  25,031,565  27,425,233  29,284,247  31,140,244  
 Goats  7,277,953  8,357,286  9,225,548  10,344,936  
 Horses  151,230  141,422  136,209  131,480 
Livestock production value 
(TL 1,000):  60,076,917  63,546,623  57,656,092  62,512,147  
 Cattle  40,959,200  42,874,967  36,394,607  40,311,087  
 Sheep  12,488,261  13,227,840  13,459,543  13,892,956  
 Goats  3,027,952  3,484,399  3,800,553  3,956,976  
 Horses  166,880  141,461  126,016  122,441  
Imports:  997 821 325 119 
Source:  Turkstat and information provided by the authorities.  
4.34.  Regarding trade, imports of live animals and meat are low – in 2014 imports of live cattle 
were US$110.3 million, and imports of beef US$5 .2 million18 – reflecting the high tariff and the 
strict measures maintained for SPS reasons. The Ministry of  Food, Agriculture and Livestock allows 
imports of livestock from countries meeting animal health and veterinary certificate criteria. Thus, 
Turkey currently allows imports of breeding cattle from 17 countries, fattening cattle from 
17 countries, cattle for slaughtering purposes from 13, breeding sheep from 9 countries and sheep 
for slaughtering purposes from 7 countries  (Table  4.13). Livestock for br eeding and fattening 
purposes are imported by giving priority to human and animal health. Imports are carried out in 
accordance with bilateral protocols with trad ing partners. The Ministry of Food , Agriculture and 
Livestock permits imports from countries w ith which  Turkey has mutual agreements on health 
conditions , and uses the OIE for monitoring and reference purposes . The Ministry is responsible for 
determining the eligible imports, including reference prices, identifying eligible countries, import 
duties , tech nical specifications, and is the only authority to determine import procedures within the 
scope of SPS matters . 
Table 4.13 List of eligible countries for the importation of bovine animals  
Breeding cattle  Fattening cattle  Slaughtering cattle  
Australia  Australia  Australia  
Austria  Austria  - 
Belgium  Belgium  Belgium  
- Brazil  Brazil  
- Chile - 
Czech Republic  Czech Republic  Czech Republic  
Estonia  Estonia  Estonia  
France  France  France  
Greece  Greece  Greece  
Germany  - - 
Hungary  Hungary  Hungary  
Italy Italy Italy 
Latvia  Latvia  Latvia  
Lithuania  Lithuania  Lithuania  
Netherlands  - - 
                                               
18 UNSD Comtrade d atabase. HS headings 0102, 0201, and 0202.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Breeding cattle  Fattening cattle  Slaughtering cattle  
Slovak Republic  Slovak Republic  Slovak Republic  
Sweden  Sweden  Sweden  
United States  United States  - 
Uruguay  Uruguay  - 
Source:  Information provided by the authorities.  
4.35.  Agricultural supports to the livestock sector are significant and have increased during the 
period, in particular direct subsidy payments. Livestock subsidies, as a percentage of Turkey's 
overall agricultural subsi des, have increased. The share of the livestock sector eligible for subsides 
was 24% in 2011, rising to 30% in 2015.19 Most subsidies for the sector are incentives for milk 
production, followed by cattle breeding, and feed processing (Table 4.14). Part of t hese 
agricultural subsidies is also given to the industry association relevant to the particular livestock 
subsector.  
Table 4.14 Livestock support programmes, 2015  
Programme  Details  
Breeding female cattle and  water buffalo support  Support given for breeder female cattle and water 
buffalos once a year, to farmers who are registered 
to an association as well as Turkvet and who hold 
between 5 and 5,000 head.  
Calf support  Given for calves born in 2014 and registe red in e -
ıslah (breeding database). To receive payments, 
calves have to be vaccinated against brucellosis and 
their vaccination details must be registered in 
Turkvet.  
Feeder material production support  Support given for pure -bred breeder cattle in GAP, 
DAP, DOKAP and KOP regions. Cattle should be 
registered in e -ıslah and Turkvet.  
Breeding female sheep/goat support  Support given for raising breeding female sheep and 
goat which are registered in Sheep Goat Register 
System and Sheep Goat Information System.  Farmer 
has to be an association member.  
Support for identifying milk contents for quality 
improvement.  Support given to agricultural enterprises in Ankara, 
İzmir, Balıkesir, Bursa and Tekirdağ which meet 
laboratory analysis requirements. Stud book 
regist ration required.  
Feeder male cattle support  Support given for slaughtering male cattle that have 
completed its last 90 days of fattening in an approved 
slaughter house.  
Herd manager (shepherd) employment support  Support given to agricultural enterprises who employ 
herd managers for shepherding small cattle. Social 
security premiums for herd managers have to be paid 
for the last 5 months.  
Apiculture support  Support given for apiculture to agricultural 
enterprises that are registered in Turkvet and have 
registered their beehives in AKS (Beekeeping 
Register System).  
Bumble bee support  Support given to producers that use bumblebees for 
pollination in greenhouses.  
Animal disease compensatory payments  Compensatory payments given for slaughtering, 
destroying  or eradicating animals that have 
contracted animal diseases such as brucellosis, foot 
and mouth disease or glanders.  
Support for disease -free enterprises  Support given to disease -free enterprises that meet 
technical and hygienic criteria. Livestock shoul d be 
tagged, registered in the database and should have 
passports.  
Programmed vaccination applications  Support given to veterinarians that carry out the 
Ministry's vaccination programme.  
On-site protection and development of livestock 
genetic resources  Support given to breeders/breeders' associations for 
protection of some pure -bred races.  
Source:  Ministry of Food, Agriculture and Livestock.  
                                               
19 GAIN Report, "Turkish Livestock Support and Subsidies ". WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.1.9   Marketing Boards  
4.36.  Turkey maintains four marketing boards for agricultural products: the Turkish Grain Board, 
the Meat and Milk Board, Sugar Authority, and Tobacco and Alcohol Market Regulatory Authority. 
These are all state -owned and operated entities.  
4.1.9.1   Turkish Grain Board  
4.37.  Established in 1938 as an Economic State Enterprise, the Turkish Grain Board (TMO) 
continues to  be involved in Turkey's grain industry mainly by providing stability to the grain 
markets. It now operates as a limited -liability and autonomous state economic enterprise  pursuant 
to the law on State Economic Enterprises ( section 3.3.4.2) linked to the Mi nistry of Food, 
Agriculture and Livestock. TMO is mandated to regulate the grains market, manage the state 
monopoly on opium and narcotic drugs, hold stocks for emergencies, provide food aid to other 
countries, and implement other responsibilities given to  it by the Cabinet.  
4.38.  TMO's activities cover a range of grains and other commodities, including wheat, barley, 
rye, oats, triticale, maize, paddy rice, hazelnuts, and poppy. Its role in the grain market is to 
purchase, hold stocks, and sell as necessary and is determined by annual production and the price 
situation in Turkey. TMO's role for poppy is more involved and has market regulatory aspects as 
well. TMO has not had a role in the hazelnut market since 2009. TMO also has a role in promoting 
crop technolog y and operating laboratories.  
4.39.  Its main role in the market is to stabilize prices for producers by interven ing when prices fall 
below a pre -determined reference price. According to TMO 's Main Charter, TMO purchases from 
domestic and foreign markets when nec essary, according to the policies specified each year for the 
purpose of preventing extreme fluctuations in grain prices . Under certain  circumstances, the 
Cabinet of Ministers allocate s TRQs for TMO  imports, and these are not permanent . Under the 
provision s of the TRQ, customs duties are often  lowered to 0% for TMO imports. According to the 
authorities, both TMO and private companies  can have customs duties lowered to 0% on imports . 
TMO can resell imported grains either domestically or for export, often whe n there are surpluses.  
While TMO has the right to make purchases to stabili ze prices, during 2011 -15, it rarely intervened 
except in the case of wheat  and maize . In general, TMO purchases have only amounted to a small 
percentage of Turkish production durin g the period (Chart  4.1), although domestic prices remain ed 
above world market prices during 2011 -14 with a Producer Nominal Protection Co -efficient (NPC) 
of 1.15 to 1.22 (that is the ratio between average prices received by producers , including 
payments p er tonne of output, and the border price (measured at farm gate level) ).20  
                                               
20 OECD (2015), Producer and Consumer Support Estimates database, online. Viewed at: 
http://www.oecd.org/tad/agricultural -policies/producerandconsumersuppor testimatesdatabse.htm#country 
[January  2016].  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Chart 4.1 TMO operations, 2011 -15 
00.10.20.30.40.50.60.7
0.01.02.03.04.05.06.07.08.09.0
2011 2012 2013 2014 2015
TMO purchase prices (TL/kg)
Domestic prices (TL/kg)Chart 4.[TMO]
TMO
Barley
Source:       The Turkish Grain Board (TMO).  Viewed at: http://www.tmo.gov.tr/. Note            2015 Estimated figures  of Barkey, Oats, and Rye .(Million tonnes)
00.10.20.30.40.50.60.70.8
0.01.02.03.04.05.06.07.0
2011 2012 2013 2014 2015Maize
00.10.20.30.40.50.60.7
0.000.050.100.150.200.250.300.350.40
2011 2012 2013 2014 2015Rye
00.10.20.30.40.50.60.70.8
0.000.050.100.150.200.250.30
2011 2012 2013 2014 2015Oats
00.20.40.60.811.2
0.05.010.015.020.025.0
2011 2012 2013 2014 2015Wheat
Total production 
(million tonnes; Left scale) 
TMO purchasesof which:(TL/kg)
 
Note:  2015 estimated figures of barley, oats, and rye.  
Source:  The Turkish Grain Board (TMO). View ed at: http://www.tmo.gov.tr/ . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.1.9.2   Sugar Authority  
4.40.  Turkey's Sugar Authority determines the procedures, principles and conditions related to 
sugar production and marketing.21 It has regulatory aspects, such as granting per mission for the 
operation of new facilities or expanding them, as well as establishing prices, conducting 
inspections, and R&D activities. The Sugar Authority oversees the sugar quota system, audits the 
sugar factories and sugar containing food producers b ut the Authority does not participate in the 
sugar trade.  
4.41.  In 2012/13 Turkey's sugar production from sugar beets amounted to 6% of world 
production. During the period of 2011 -15, sugar production and domestic sales have remained 
relatively constant, althoug h declining slightly in 2014/15. At the same time, prices have increased 
steadily. Exports declined in 2014/15. (Table 4.15) The Sugar Authority oversees the allocation of 
quotas among 12  sugar producers in Turkey.22 
Table 4.15 Sugar Authority operations, 2010 -15 
('000 tonnes)  
 2010/11  2011/12  2012/13  2013/14  2014/15  
Production  2,262  2,270  2,129  2,390  2,058  
Domestic sales  1,867  2,151  1,918  2,083  2,019  
Exports  283 290 339 319 192 
Average sales price 
(TL/kg)  1.79 1.94 2.11 2.33 2.52 
Source:  Sugar Authority, online information. Viewed at: http://www.sekerkurumu.gov.tr/istatistikler/urun -
verileri . 
4.1.9.3   Meat and Milk Board (ESK)  
4.42.  The Meat and Mil k Board was originally established as a state -economic enterprise for the 
operation of meat processing plants. Today it is involved in livestock breeding, improving the 
quality of the livestock sector, distribution of meat, and regulating livestock.  Under Turkey 's 
privatization policy, many of the institu tion's meat processing facilities have been privatized over 
the last 20 years. As of November 2015, 26 out of 37 of ESK 's meat plants ha d been privatized . 
ESK still operates the remaining 11 enterprises for  production and slaughtering. The ESK's Board 
of Directors oversees the operation of its enterprises, however it does not place quotas on meat 
production, nor does it set prices for the domestic market, ESK Management determin es prices for 
its own franchis es. 
4.43.  Previously, the Board was known as the Meat and Fish Board, but its name was changed in 
2013 when it was given similar responsibilities for milk as for meat. ESK does not have a role in 
fish products, but one of its processing plants is planned to oper ate for poultry meat. As of 2013, 
the milk sector is a new activity for the Board. Although it does not have any activity in milk 
markets  at present, ESK's  role for milk could resemble its activities in the meat sector . 
4.44.  The ESK has been given exclusive rig hts to import meat under tariff quota s, often with 
zero customs duties . For example, in 2015, pursuant to a Cabinet Decree, customs duties on 
19,000  tonnes of red meat imports from the EU will face no duties when imported by ESK under 
quota.23 The ESK sets prices for its own processed meats and operates stores as well.  
                                               
21 Law No. 4634.  
22 Sugar Authority online information. Viewed at: 
http://www.sekerkurumu.gov.tr/upload/special/SEKER_KURUMU_201 4_F.pdf . 
23 Online information. Viewed at: http://www.infobalkans.com/organization/state -run-meat-and-milk-
board . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.1.9.4   Tobacco and Alcohol Market Regulatory Authority (TAPDK)  
4.45.  Turkey's Tobacco and Alcohol Market Regulatory Authority was established in 2002 pursuant 
to a law to regulate alcohol and tobacco prod ucts.24 It has regulations for alleviating social harms 
of alcohol or tobacco. In particular it has roles in production, licensing, and permits for the sale or 
distribution of alcohol or tobacco products.  
4.46.  In terms of trade, TAPDK oversees laws and regulati ons related to the trade of raw and 
processed tobacco products and alcoholic beverages. For tobacco, TAPDK issues producer 
certificates in order to produce tobacco products. Tobacco products are generally free to export, 
subject to an inspection of conform ity, but to import there are limitations on which companies may 
do so, based on their annual production capacity and/or investment. For alcoholic beverages, 
TAPDK has a regulatory function including oversight over production certificates, distribution 
licences, and imports.  
4.1.10   Food Aid  
4.47.  Turkey is not a party to the Food Assistance Convention, nor does it have any law on food 
aid, rather using individual laws or cabinet decrees when providing food aid. Turkey's Cabinet of 
Ministers decides on food aid  policy . 
4.48.  During the period 2011 -15, Turkey  provided food aid in 2012, 2013, and 2014 to Somalia 
for drought relief, and in 2012 and 2013 to Syria. Regarding Somalia, Turkey provided 
2,000  tonnes, 10,000 tonnes, and 5,000 tonnes of wheat from TMO, respectively, during  the three 
years; and to Syria, 75 tonnes, and 35,000 tonnes of wheat, respectively, via the Turkish Red 
Crescent . In 2015, Turkey provided 10 ,000 ton nes of wheat as food aid to Syria.  
4.2  Manufacturing  
4.49.  Over the past three decades, much of Turkey's economic de velopment has been based on 
the country's large and diverse manufacturing base. Turkey's relatively low labour costs, 
well-trained workforce , and strategic location  have helped  build a strong manufacturing sector 
focused on medium - and high -value -added goo ds. In 2014, the industrial sector accounted for 
17.8% of GDP, 76.7% of total goods exports and 20.5% of employment.  
4.50.  Turkey's industrial sector is mainly located in the North West, the region stretching from the 
Greek and Bulgarian borders through Istanbul  and south to Izmit, Bursa, Eskisehir and around the 
Marmara region. Other important clusters include other areas around the Anatolian coast and the 
region around Ankara. Turkey has been attracting foreign investments from major international 
players in th e manufacturing sector.  
4.51.  Small and medium -sized enterprises  (SMEs) constitute a key part of the industrial sector in 
Turkey. According to Turkish Treasury figures, SMEs account for 99% of all companies in Turkey, 
and contribute to around 78% of employment, 62% of exports and 57% of total value added. 
SMEs receive support from the Government through assistance with financing, training, technology 
development, innovation, export orientation and quality improvement.25 
4.52.  Turkey is a large exporter of manufacturing goods, and since 2011 exports have surpassed 
pre-2008-09 crisis levels. From 2011 to 2014, total exports for industrial goods increased by 5.1% 
per year in nominal terms to US$12 2 billion . Turkey's key industrial export sectors are automotive , 
textiles and  clothing, chemicals, machinery, iron and steel, electronics , and jewellery (Chart 4. 2). 
Turkey is also a large importer, primarily of intermediary goods which account for 7 3% of imports.  
These goods include energy products, scrap metals, engines and drive  trains for motor vehicles, 
chemicals, electronic components, and cotton and textile inputs.  
                                               
24 Law No. 4733. Name was changed in 2008.  
25 Oxford Busin ess Group (2015), The Report: Turkey .  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Chart 4.2 Evolution of exports for selected manufacturing product groups , 2000 -14 
(US$ billion)  
020406080100120140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Jewellery
Clothing
Textiles
Machinery and transport equipment (excl. automotive products)
Automotive products
Other semi-manufactures
Chemicals
Iron and steel
Total manufacturesChart 4. [Turkey -SITC Manf.]
Evolution of exports for selected manufacturing product groups
(US$ billion)
WTO calculations, based on UNSD Comtrade database (SITC Rev. 3).  Source:Standard International Trade Classification (SITC), Rev.3.  Note:
 
 
Note:  Standard Int ernational Trade Classification (SITC), Rev.3.  
Source:  WTO calculations, based on UNSD Comtrade database (SITC Rev.3).  
4.53.  With a large trade deficit of about 8% of GDP in 2014, Turkey's persistent current account 
deficit remains a major challenge to the econo my and increasing exports are seen as one of the 
ways this should be addressed (section 1.2). Under the Tenth Development Plan, the Input Supply 
Strategy, and Turkey Vision 2023 , the Government has set out multiple objectives for 
manufacturing, including i ncreasing production of intermediate and finished goods in order, 
inter alia, to reduce the trade deficit ( section 2.2).  
4.54.  Based on Turkey Vision 2023, the country aims to expand its manufacturing base of 
medium - and high -tech and value -added products  and su pport the technological development of 
companies. Turkey also aims to achieve an export volume of US$500 billion by having 
export -based production; 70,000 exporters (from 50,000); create at least 10 national brands 
known worldwide; and diversify it s export  markets and products.  
4.55.   Turkey is an important link in global value chains (GVCs) as it imports unprocessed and 
partly processed goods for further transformation and export. T he authorities note  that Turkey has 
benefitted from its integration into value ch ains through supplying finished goods and high 
technology goods to foreign intermediaries. However, a relatively high level of the value has 
already been added in the goods imported into Turkey and relatively little value added in Turkey 
itself: according to the OECD -WTO Trade in Value Added (TiVA) database, the foreign value added 
as a proportion of gross exports increased from 10% in 1995 to 26% in 2011, while domestic 
value added was 15% in 2011. It was also noted that "integration into GVCs may be more 
orientated towards downstream activities, such as assembly, compared to other countries ".26 
Therefore, the authorities stated that the main challenge for Turkey is increasing the contribution 
to value added in upstream activities, diversifying the industrie s involved in GVCs , and engaging 
small and medium -sized enterprises.  
4.56.  The Directorate General for Industry under the Ministry of Science, Industry and Technology 
is responsible for setting industrial policy for Turkey. Other important ministries with 
respon sibilities for industrial policy include the Ministry of Economy, the Ministry for EU Affairs, the 
Ministry of Environment and Urbanisation, and the Ministry of Energy and Natural Resources. The 
Union of Chambers and Commodity Exchanges of Turkey (TOBB) is  the sole private sector 
professional organization that represents all companies. The Turkish Industry and Business 
Association (TUSIAD) and the Association of Independent Industrialists and Businessmen 
(MUSIAD) are the two largest professional organizatio ns for Turkey's industrial sector.  
                                               
26 OECD -WTO (2015), Trade in Value Added: Turkey , October. Viewed at: http://www.oecd.org/sti/ind/ 
measuringtradeinvalue -addedanoecd -wtojointinitiative.htm . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.2.1   Automotive sector  
4.57.  In 2014, Turkey ranked 17th in the global automoti ve manufacturing arena with 
1.2 million  units produced (including agricultural and forestry tractors)  representing  an overall 
increase of 5% compared to 2013. In 2015, production capacity reached more th an 1.7 million 
units per year. According to the Turkish Automotive Manufacturers Association (OSD), in 2014 
passenger cars accounted for 60% of production, followed by commercial vehicles and tractors.27 
The sector employs more than 400,000 people.  
4.58.  The automotive industry is mostly  represented by  foreign owned  firms, joint ventures with 
foreign companies, or those operating under foreign licences. Turkey's three main automobile 
producers are joint  ventures wi th global brands: Tofas (Fiat S.p.A and Koç Holding with 37.8% 
each); Oyak -Renault (51% Renault, and 49% Oyak Holding); and Ford Otosan (Ford Motor Co and  
Koç Holding with 41.04% each). These producers accounted for around 65% of all vehicles 
manufactured in Turkey in 2014. Other important producers are Toyota, Hyundai Assan, Mercedes 
Benz Turk, MAN Turkiye, Anadolu Isuzu,  and Honda Turkey.  
4.59.  There are also a number of domestically  owned producers including: Otokar; TEMSA; and 
KARSAN. In total, there are 14 O riginal Equipment Manufacturers (OEMs) that are members of 
OSD and produce over one million vehicles annually. In general, domestic firms prod uce 
mini-buses, buses, and trucks , whereas the majority of passenger cars are produced by joint 
ventures with fore ign companies. In addition to vehicle manufacturing, Turkey is playing an 
increasingly important role as a supplier in the automotive industry both as a manufacturer and an 
exporter. There are more than 1,000 automotive supplier companies, along with local  
manufacturers with nearly 40 years of experience as well as world brands that have significant 
investments in Turkey.  
4.60.  Trade in automotive products is an important feature of Turkey's economy and has been 
heavily dependent on the European market. In 2014, Turkey's automotive exports reached 
US$22.5 billion, with nearly 74% exported to the EU. Since the global financial cris is of 2008 -09 
and the slowdown in the Euro -zone economies, manufacturers have been looking increasingly to 
new export markets in the Mid dle East and Asia.  
4.61.  In recent years, the Government has encouraged domestic companies, in collaboration with 
multinational producers, to develop a "national car", assembled in Turkey using Turkish -made 
parts. One of the main objectives is to reduce the coun try's heavy dependence on imported 
finished vehicles and intermediate parts , which in 2014 reached US$15.7  billion. According to the 
authorities, production of a national car will begin in 2020.  
4.62.  In 2015, the simple average applied MFN tariff on vehicles (H S 87) was 6.7% while imports 
from, and exports to the EU are covered by the Customs Union and may enter without payment of 
customs duties. Imports of second -hand vehicles, other than for personal use, are restricted for 
environmental reasons but are not pr ohibited. To ensure the suitability of all imported vehicles for 
highways, approval is required from the Ministry of Science Industry and Technology for various 
motor vehicles and trailers28 (Table 4.1 6). 
4.63.  Total taxes account for 71 -189% of the cost of a pas senger car on the domestic market. In 
2014, the special consumption tax (SCT) rates on cars was increased and ranged from 45% for 
cars with engines under 1,600 cc (previously 40%) to 145% for cars with engines over 2,000 cc. 
In addition, the annual road ta x for cars with engines up to 1,600 cc increased by 10% in 2015, to 
TL 946 (US$400).  
4.64.  With the growth of the automotive sector in Turkey, several problems have emerged that 
could affect further expansion, including: integration of the main automotive indust ry and its 
related industries; the need for a qualified workforce, particularly in related industries; limited 
access to finance for related industries; and high taxes on vehicles and fuel that reduce demand in 
                                               
27 Automotive Manufacturers Association (OSD),  General and Statistical Information Bulletin of 
Automotive Manufacturers 2015. Viewed at: http://www.osd.org.tr/yeni/wp -content/uploads/2015/05/ 
CATA2015.pdf . 
28 Import Communiqué 51/1, OG 31.12.2014 No. 29222  bis. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  the domestic market.29 Another report noted th at the main issues affecting the automotive sector 
included, in order of importance: taxes on automotive sales; excessive price competition; 
legislation on emissions; investment incentive policies; and car scrappage incentives and similar 
sales supports.30 
Table 4.16 Automotive imports requiring a licence, 2015  
HS Codes  Description  
8701.20  Road tractors for semi -trailers:  
8701.90  Other (other than 8701.90.90.00.11,19)  
8702 Motor vehicles for the transport of ten or more persons, including the driver  
8703 Motor cars and other motor vehicles principally designed for the transport of persons 
(other than those of heading 87.02) including  station wagons and racing cars  
8704 Motor vehicles for the transport of goo ds 
8705 Special purpose motor vehicles, other than those principally designed for the 
transport of persons or goods (for example, breakdown lorries, crane lorries, fire -
fighting vehicles, concrete -mixer lorries, road sweeper lorries, spraying lorries, 
mobile workshops, mobile radiological units)  
8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor (with or 
without side -cars) side -cars 
8716 Trailers and semi -trailers; other vehicles, not mechanically propelled; parts thereof 
(other than 8716.20.00.00.00; 8716.80,90)  
Source:  WTO document G/LIC/N/3/TUR/14  of 28 September 2015.  
4.65.  Under the official automotive sector strategy, released by the Government in 2011, the 
primary objective is the "enhancement of sustainable global competitiv e strength of the 
automotive sector and its transformation into an industry that utilizes advanced technology and 
generates high value -added ". 31 The Government's targets for the industry are to achieve 4 million 
units of production  by 2023, 3 million of wh ich would be exported.  
4.66.  Under the Investment Incentives System, investments in the automotive industry qualify for 
a number of incentives covering tax, social contributions, land allocation and interest payments. 
The level of the incentives depends on the r egion and the value. As a Priority Investment Field 
under the Regional Investment Scheme, investments in regions I to V in the automotive sector 
may qualify for the same level of incentives as region V (Table 4.17).  
Table 4.17 Incentives for investment in the automotive sector  
Region    I II III IV V VI 
General Investment Scheme  
Minimum investment   TL million  1.0 1.0 0.5 0.5 0.5 0.5 
VAT exemption    yes yes yes yes yes yes 
Customs duties 
exemption    yes yes yes yes yes yes 
Region    I II III IV V VI 
Regional Investment Scheme         
Minimum investment   TL million  50 50 50 50 50 0.5 
VAT exemption    yes yes yes yes yes yes 
Customs duties 
exemption    yes yes yes yes yes yes 
Tax reduction rate    50% 55% 60% 70% 80% 90% 
Contribution rate to 
investments  Outside OIZ   15% 20% 25% 30% 40% 50% 
 Inside OIZ   20% 25% 30% 40% 50% 55% 
SSP employer  Outside OIZ  Years  2 3 5 6 7 10 
  Upper limit  10% 15% 20% 25% 35% No limit  
 Inside OIZ  Years  3 5 6 7 10 12 
  Upper limit  15% 20% 25% 35% No limit  No limit  
                                               
29 Ministry of Industry and Trade (2010), Turkish Industrial Strategy Document, 2011 -2014, 
pp 182-186. Viewed at: http://www.abgs.gov.tr/files/haberler/2011/turkish_industrial_strategy.pdf . 
30 KPMG (2013), The Journey of the Turkish Automotive Sector into the Future – 2017 Projections,  
KPMG Turkey 2013 Automotive Executives Survey, p . 8. 
31 Prime Ministry Investment Support and Promotion Agency of Turkey online information. Viewed at: 
http://www.invest.gov.tr/en -us/sectors/Pages/Automotive.aspx . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Land allocation    yes yes yes yes yes yes 
Interest rate support  TL  points  n.a. n.a. 3 4 5 7 
 Foreign 
exchange   n.a. n.a. 1 1 2 2 
  Upper limit 
(TL 
thousand)  n.a. n.a. 500 600 700 900 
SSP employee   Years  n.a. n.a. n.a. n.a. n.a. 10 
Income tax 
withholding allowance    n.a. n.a. n.a. n.a. n.a. 10 
Region    I II III IV V VI 
Large Scale Investment Scheme         
Minimum investment   TL million  200 200 200 200 200 0.5 
VAT exemption    yes yes yes yes yes yes 
Customs duti es 
exemption    yes yes yes yes yes yes 
Tax reduction rate    50% 55% 60% 70% 80% 90% 
Contribution rate to 
investments  Outside OIZ   25% 30% 35% 40% 50% 60% 
 Inside OIZ   30% 35% 40% 50% 60% 65% 
SSP employer  Outside OIZ  Years  2 3 5 6 7 10 
  Upper limit  3% 5% 8% 10% 11% No limit  
 Inside OIZ  Years  3 5 6 7 10 12 
  Upper limit  5% 8% 10% 11% No limit  No limit  
Land allocation    yes yes yes yes yes yes 
Interest rate support  TL  points  n.a. n.a. n.a. n.a. n.a. n.a. 
 Foreign 
exchange   n.a. n.a. n.a. n.a. n.a. n.a. 
  Upper limit 
(TL 
thousand)  n.a. n.a. n.a. n.a. n.a. n.a. 
SSP employee   Years  n.a. n.a. n.a. n.a. n.a. 10 
Income tax 
withholding allowance    n.a. n.a. n.a. n.a. n.a. 10 
Region    Region I - V VI 
Regional Investment Scheme (as Priority Investment Scheme ) 
Minimum investment  Main industry 
(OEM)  TL million   300 0.5 
 Engines  TL million    75 0.5 
 Engine parts; 
transmission 
(powertrain); 
transmission 
components; 
automotive 
electronics  TL million    20 0.5 
VAT exemption    yes yes 
Customs duties 
exempt ion   yes yes 
Tax reduction    80% 90% 
Contribution to 
investments    40% 50% 
SSP employer   Years  7 10 
  Upper limit  35% No limit  
Land allocation    yes yes 
Interest rate support  TL  points  5 7 
 Foreign 
Exchange   2 2 
n.a. Not applicable.  
SSP Social S ecurity Premium.  
Source:  Prime Ministry Investment Support and Promotion Agency of Turkey online information.  Viewed at: 
http://www.invest.gov.tr/EN -US/INVESTMENTGUIDE/INVESTORSGUIDE/Pages/ Incentives.aspx . 
4.2.2   Textiles and clothing  
4.67.  Turkey has a well -establish ed textiles and clothing industry which is among the most 
important sectors in the economy and represents a significant part of foreign trade : in 2014, the WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  sector accounted for US$29.2 billion of exports or 18.5% of Turkey's total exports of goods and 
24% of exports of manufacturing products.  In 201 4, the total value of clothing exports was 
US$16.3 billion. In 201 4, Turkish companies exported to more than 194 countries in the world. 
Although the EU remains the most important destination for exports, the Uni ted States, the 
Russian Federation, and Middle East markets are also important.  
4.68.  According to Social Security Institution statistics, there are more than 52,000 textile and 
clothing companies in Turkey with more than 918,000 employees.  Production of textile s is 
concentrated in the Marmara, Aegean, and Cukurova regions with the majority of factories 
belonging to small and medium -sized enterprises, although most production is by large integrated 
enterprises.  
4.69.  The Turkish textile and clothing industry is vertica lly integrated across the value chain and 
extends from cotton  and fibre to fabric and garments. While Turkey is one of the most important 
cotton growers in the world, with 877,000 tonnes produced in 2013/14, it is also a large consumer 
and imports most of its needs. Domestic cotton production in Turkey has begun to increase as a 
result of the Southeastern Anatolia Project (GAP).  
4.70.  The Turkish clothing industry , with a global market share of 3.4% , is the eighth  largest 
supplier in the world, and the fourth largest supplier to the EU. It has a share of 4 .2% in knitted 
clothing exports and it ranks 4th among exporting countries. With a share of 2 .65%, Turkey ranks 
9th among the woven c lothing exporters in the world.  
4.71.  Over the past three decades, as a result of Asi an competition, Turkish companies have 
succeeded in moving to higher value products as  production and export of textiles and clothing  has 
shifted from low -priced and low -value -added commodities to high er value -added manufactured 
products  and fashionable go ods. 
4.72.  The textiles and clothing industry remains relatively highly protected with bound tariffs 
covering 15.1% of textile and 2.1% of clothing tariff lines. In 2015, the simple average applied 
MFN tariff on textiles was 6.7% and 11.5% on clothing. The Custo ms Union with the EU, which 
includes all textile and clothing products, allows Turkey duty -free access to the EU market (and 
vice versa).  
4.73.  The textiles and clothing sector qualifies for support under the General Investment 
Incentives Scheme (exemptions from  VAT and customs duties for imported machinery and 
equipment) and the Regional Investment Incentives Scheme, which provides a more 
comprehensive range of incentives which, as with the automotive sector, depend on the 
geographic region and whether the proje ct is located in an OIZ or not. However, there are no 
additional incentives for investment in the textiles and clothing sector.  
4.2.3   Chemicals  
4.74.  While Turkey lacks natural resources for the production of chemicals, the country was able 
to leverage its flexible ma nufacturing model, productive labour force and its proximity to sources 
of hydrocarbons and potential export markets to grow a chemicals industry. In 2014, Turkey 
ranked 29th in world chemical product sales and 32nd in ethylene production. Exports of chemi cal 
products continued to grow over the review period and reached US$9.2 billion, almost an 8.9% per 
annum (2011 -14) increase since 2011.  
4.75.  Turkey's 2023 targets for the chemicals industry include US$50 billion in exports. According 
to Turkey's Chemicals In dustry Strategy and Course of Action Document, there are six strategic 
targets:  
 Producing high -value -added, environmentally -friendly products to develop the exports 
market.  
 Transforming facilities to enable high -value -added production so as to decrease in termediate 
goods import.  
 Structure R&D policies specifically designed for the industry.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   Educate a high -skilled workforce for the industry.  
 Develop and ensure a cooperative environment for the stakeholders of the industry.  
 Increase demand for locally produc ed products to reduce foreign trade.32 
4.76.  The major subsectors of the chemicals industry are plastics and plastic products, mineral 
fuels, rubber and rubber products, inorganic chemicals, and soaps. The Turkish chemical industry  
is dominated by small companies , many of which are family owned and manufacture low or middle 
priced products such as paints, soaps, plastics, detergents and cosmetics.  
4.77.  Demand for chemical products is expected to continue to grow, particularly as chemical 
products are inputs into other industries such as construction, automobile, textiles and clothing, 
home appliances, and packaging and printing. Furthermore, capacity utilization rates have 
increased and were estimated to be about 80% in 2013, suggesting that further investment is 
needed  for further growth.33 
4.78.  A number of foreign firms have invested in the chemical industry in Turkey, including 
through mergers and acquisitions of domestic enterprises: in 2013, Georg Fischer of Switzerland 
acquired 96% of Hakan Plastik for US$98.1 million; i n 2012, Yves Rocher of France acquired 51% 
of Flormar for US$135 million; also in 2012, Nitto Denko Corporation of Japan acquired 100% of 
Dento Bantçilik for US$100 million; and in 2011, Dow Chemicals of the United States acquired 
50% of Aksa Karbon Elyaf Sanayi for US$92.5 million.34 Petkim PetroKimya Holding A.Ş, which 
dominates the petrochemicals sub sector, was privatized in 2008 with SOCAR & Turcas 
Petrochemical Company acquiring 51% of the shares for US$2,040 million which SOCAR (the Azeri 
State -owned c ompany) acquired in 2011 following Turcas's withdrawal from the shareholding 
structure. In 2012, SOCAR acquired the remaining 10.32% of Petkim's shares held by the Prime 
Ministry Privatization Administration for US$168.5 million.35 
4.79.  The sub sector's main chal lenges include its heavy dependence on imported raw materials 
and intermediary goods, which account for 40% of all imports. In 2014, the trade deficit for the 
chemicals sector (excluding mineral oils) stood at US$20.5 billion. Another challenge is growing 
competition from Asian countries, which have direct access to raw materials such as petroleum 
products and palm oil.  
4.80.  In order to develop and grow the sector, Turkey plans to import raw materials and then 
manufacture more intermediary products in Turkey, be fore re -exporting the higher -value -added 
finished products. To help this process, an integrated refinery, petrochemicals, energy and logistics 
hub is being developed for the Petkim Peninsula with the help of SOCAR of Azerbaijan.  
4.81.  The chemical industry in Tu rkey qualifies for support under the General Investment 
Incentives Scheme ( exemptions from VAT and customs duties for imported machinery and 
equipment) and the Regional Investment Incentives Scheme, which provides a more 
comprehensive range of incentives w hich, as with the automotive sector, depend on the 
geographic region and whether the project is located in an OIZ or not . In addition, under the 
Large -Scale Investment Incentives Scheme, investments of more than TL 200 million qualify for 
enhanced incentiv es through a higher state contribution towards the cost of the investment36 
(section 2.4.4).  
                                               
32 Prime Ministry Investment Support and Promotion Agency of Turkey (2014), The Chemicals Industry 
in Turkey , p. 72. Viewed at: www.invest.gov.tr /en-US/.../Documents/CHEMICALS.INDUSTRY.pdf . 
33 Prime Ministry Investment Support and Promotion Agency of Turkey (2014), The Chemicals Industry 
in Turkey , p. 15 and 17 . Viewed  at: http://www.invest.gov.tr/en -
US/infocenter/publications/Documents/CHEMICALS.INDUSTRY.pdf . 
34 Prime Ministry Investment Support and Promotion Agency of Turkey (2014), The Chemicals Industry 
in Turkey , p. 12. Viewed  at: http://www.in vest.gov.tr/en -US/infocenter/publications/Documents/CHEMICALS. 
INDUSTRY.pdf . 
35 Petkin (2015), 2014 Annual Report  and Prime Ministry Investment Support and Promotion Agency of 
Turkey (2014), The Chemicals Industry in Turkey , p. 12. Viewed  at: http://www.invest.gov.tr/en -
US/infocenter/publications/Documents/CHEMICALS.INDUSTRY.pdf . 
36 Prime Ministry Investment Support and Promotion Agency of Turkey online inf ormation. Viewed at:  
http://www.invest.gov.tr/EN -US/INVESTMENTGUIDE/INVESTORSGUIDE/Pages/Incentives.aspx . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.82.  In 2015, the simple average applied MFN tariff was 4.7% for chemicals. Imports and 
exports to and from the EU are duty free under the Customs Union.  
4.3  Services  
4.3.1   Financ ial services  
4.83.  In nominal terms financial and insurance activities' contribution to GDP has increased 
steadily since 2010, but it has actually declined as a percentage of GDP, from 4.5% of GDP in 
2009, to 3.0% in 2014 (Table 4.18). In 2014, t he sector employ ed about 301,000 people , and in 
terms of assets, the banking subsector had a 74% share, followed by the Central  Bank (14 %), and 
insurance and private pensions ( 3%). The remaining 9% of assets are held by Borsa İstanbul 
capitalization, securities, consumer finance, real estate investments, investment trusts, asset 
management, and venture capital investment trusts.37 
Table 4.18 Financial sector in the economy, 2009 -14 
(TL million)  
 2009  2010  2011  2012  2013  2014  
Total GDP  952,559  1,098,799  1,297,713  1,416,798  1,567,289  1,747,362  
Financial and insurance 
activities  42,688  40,502  40,576  46,538  52,483  52,989  
Financial intermediation 
services  21,708  19,419  17,324  21,926  25,195  25,063  
Note:  NACE Rev.2.  
Source:  Turksta t. 
4.84.  Since the last Review, new regulatory and institutional reforms have taken place in the area 
of financial services. In 2012, a new Capital Markets Law38 entered into force, which transformed 
the legal and institutional framework of Turkey's capital marke ts. The law introduce d significant 
new provisions with respect to investor protection and investor rights, as well as regulation s aimed 
at encouraging more companies to list, offering a wider range of financial instruments, promoting 
international market i ntegration, and increasing visibility, accessibility and transparency. As a 
result, in 2013 Borsa Istanbul  was established as a  joint-stock company  and merged the three 
existing exchanges, the Istanbul Stock Exchange, Istanbul Gold Exchange and Futures and  Options 
Exchange . In the area of banking, on 1 January 2014 new regulations came into force applying the 
Basel III accord.39. 
4.85.  Several agencies regulate t he Turkish financial system . The Banking Regulation and 
Supervision Agency (BRSA) is in charge of the b anking system; the  Capital Markets Board  (CMB) is 
the main regulator of the capital markets; and the Treasury ov ersees the insurance industry 
(Chart 4.3). 
                                               
37 Prime Ministry Investment Support and Promotion Agency of Turkey online information. Viewed at: 
http://www.invest.gov.tr/en -US/infocenter/publications/Documents/FINANCIAL.SERVICES.INDUSTRY.pdf . 
38 Capital Market Law No. 6362.  
39 From 1 January 2014 the Regulation on Equity of Banks (Official Gazette  No. 28756 ), Regulation 
Amending the Regulation on the Measurement and Evaluation of Capital Adequacy of Banks (No. 28756 ), 
Regulation on Capital Con servation and Countercyclical Capital Buffers (No. 28812 ), and Regulation on 
Measurement and Assessment of Leverage Levels of Banks (No. 28812 ); and from 1 January 2015 the 
Regulation on measurement of Liquidity Matching Ratio of Banks (No. 29848).  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Chart 4.3 Regulatory structure of the financial market s 
Chart 4. [Turkey]
Regulatory structure of the financial markets
Source: Information provided by the authorties. Banking
Banks' Association of Turkey
-Participation banksCapital Markets
Turkish capital markets 
associationInsurance
Banking Regulation and 
Supervision Agency 
(BRSA)Capital Markets 
Board (CMB)Undersecretariat of 
Treasury
-BanksParticipation banks'
association of Turkey
Association of financial 
institutions
-Banks
-Leasing companies
-Factoring companies
-Consumer finance companies
-NPL management companies-
-
--
Borsa Istanbul -
-Brokerage firms
-Asset management firms
-Investment trusts
-Central registry agency
-Settlement and custody bank
-Capital markets licensing and 
training agency
-Investor compensation center
-Public and listed companies
-Rating, appraisal, and audit firmsInsurance association of Turkey-
-Insurance companies
-Private pension funds-Actuaries
-Intermediaries
-Loss adjustors
 
 
Source:  Information provided by the authorities.  
4.3.1.1   Banking  
4.86.  The banking sector comprises a mix of state -owned, private and foreign banks.40 At the end 
of 2014, the number of banks in Turkey reached 51, up from 49 in 2012 (Table 4.19) as two new 
banks were granted operating permission i n 2014  (Intesa A.Ş. and Rabobank ). There are 
32 deposit banks (three public, ten private, and 19 foreign); 13 investment banks (four public, 
six private and three foreign); six branches of foreign deposit banks outside Turkey;  two banks 
under the management of the Savings Deposit Insurance Fund (SDIF)41, and four Islamic 
(participation) banks in 2014.  
Table 4.19 Banking sector - main indicators , 2012 -14 
  December  2012  December  2013  December  2014  
Total number of banks  49 49 51 
Bank assets/GDP  96.7%  110.5%  114%  
Bank deposits/GDP  54.5%  60.3%  60.2%  
Number of branches  11,061  11,986  12,210  
Population  75,627,384  76,667,864  77,695,904  
Number of branches/thousand 
population  0.15 0.16 0.16 
Source:  Information provided by the authorities . 
4.87.  According to the IMF, Turkish banks are well capitalized with a loan -to-deposit ratio of 
118% in 2014. Bank assets have grown over the review period, but remain reasonable : equivalent  
to 114% of Turkey' s GDP  and the ratio of non -performing loans to total lending stood at 2.9% in 
2014. However, one of the biggest risks in the banking sector is the rollover risk associated with 
the rise in external foreign exchange funding. The IMF also noted that in Octob er 2014 Turkey was 
removed from the Financial Action Task Force's list of countries with strategic deficiencies in their 
anti-money laundering and combatting financing of terrorism frameworks. This followed measures 
                                               
40 Banki ng Regulation and Supervision Agency (BRSA) online information. Viewed at: 
http://www.bddk.org.tr/WebSitesi/ english/Institutions/Banks/Banks.aspx . 
41 The SDIF is respon sible for the protection of public rights, management and disposal of bank assets 
entering into administration or liquidation procedures. For more information, refer to Box IV.1 in previous 
TPR report: WTO document, WT/TPR/S/259/Rev.1 (p. 99).  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  taken to criminalize terrorist financing  and establishment of procedures to identify, freeze, and 
confiscate terrorist assets.42 
4.88.  The largest five banks account for nearly 55% of the sector's total assets and about 54% of 
loans; and the top 10 banks about 78% of total assets (Table 4.20). Mergers and acquisitions 
among banks continued during the review period with the BRSA approving the transfer shares of 
Alternatifbank A.Ş. to Commercial Bank of Qatar by the Resolution dated 1 July 2013 ; the transfer 
of 79.9% of shares of Taib Yatırım Bank A.Ş. to  Pasha Bank OJSC of Azerbaijan by the Resolution 
dated 26 December 2014  (the bank's name was changed to Pasha Yatırım Bankası A.Ş. ); and the 
transfer of 75.5 % of shares of Tekstil Bankası A.Ş. to Industrial and Commercial Bank of China 
Limited by Resolutio n dated 2 April 2015 . 
Table 4.20 Top 10 banks in Turkey by total assets, 2014  
(TL million)  
Bank  Total 
assets  Operating 
revenue  Pre-tax 
profit  Principal shareholders   
Iş Bank  237,772  11,250  4,231  Isbank Pensio n Fund  40.2%  
   Republican People's Party  28.1%  
Ziraat Bank  247,600  10,717  5,179  Undersecretariat of the Treasury  100.0%  
Garanti Bank  218,919  10,682  4,162  Doğuş Holding AŞ  24.2%  
   Banco Bilbao Vizcaya Argentaria SA  25.0%  
Akbank  218,670  10,217  4,333  Sabanci Holding, Affiliated Institutions and 
Individuals  48.9%  
YapiKredi Bank  194,959  8,711  2,056  Koç Financial Services  81.8%  
   Other  18.2%  
Halk Bank  155,423  7,478  2,727  Privatization Administration  51.1%  
VakifBank  163,551  7,910  2,292  Foundations  represented by Prime Ministry 
General Directorate of Foundations  58.4%  
Finans Bank  75,206  4,736  1,142  National Bank of Greece S.A.  82.2%  
   NBG Finance (Dollar) PLC  9.7%  
   NBGI Holdings B.V.  7.9%  
Denizbank  94,403  4,588  1,215  Sberbank of Russia  99.9% 
TEB 62,992  3,447  795 BNP Paribas Fortis Yatırım Holding A.Ş.and 
Çolakoğlu Group Joint Venture (50/50)  55.0%  
   BNP Paribas Group  41.8%  
Source:  Annual Reports, banks' online information, and information provided by the authorities.  
4.89.  There is significan t fore ign presence in the banking sub sector, with 27% of assets owned by 
foreign banks and about 18% of the shares open to the public owned by foreign investors.43 The 
State is also involved in the banking sector as the sole or majority owner of five deposi t banks 
(representing about 30% of total bank assets in 201444), and four development/investment banks 
(representing 3% of total bank assets).45 
4.90.  The banking sector in Turkey is regulated by the Banking Regulation and Supervision  
Agency (BRSA) and Banking Law  5411 of 2005. The BRSA oversees the implementation and 
supervision of banking regulations and may issue amendments and clarifications to existing 
banking laws and regulations in the form of communiqués.  Under Law 5411, the BRSA is 
responsible for the prin ciples and procedures related to liquidity requirements; has the right to 
conduct on -site inspections; determines corporate governance structures; establishes processes 
and principles; and amends the Turkish regulatory framework to align it with that of th e EU. The 
BRSA is led by a board of seven members, each of whom holds office for five years.  
4.91.  For a bank to be established in Turkey it must be registered as a joint -stock company; have 
a minimum paid -in capital of TL 30 million; and have its shares issued against cash and to name . 
                                               
42 IMF (2014) , Turkey – Staff Report for the 2014 Article IV Consultation , 3 November, pp. 19 and 23.  
43 Prime Ministry Investment Support and Promotion Agency (2014), The Financial services Sector in 
Turkey , February, p. 21. Viewed at: http://www.invest.gov.tr/en -
US/in focenter/publications/Documents/FINANCIAL.SERVICES.INDUSTRY.pdf . 
44 Türkiye Cumhuriyeti Ziraat Bankası, Türkiye Halk Bankası, Türkiye Vakıflar Bankası T.A.O, Adabank 
A.Ş., and Birleşik Fon Bankası.  
45 İller Bankası, İMKB, Takasbank, Türkiye İhracat Kredi Bankası A.Ş., and Türkiye Kalkınma Bankası 
A.Ş. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  For development and investment banks, their paid -up capital shall not be less than TL 20 million.46 
The BRSA is the sole authority for e stablishment, operation, share transfer, merger,  transfer, 
branch and representative 's office  opening permi ssions f or banks, and  the referred permits other 
than representative 's office opening permi ssions  issued for non -bank financial institutions  
(financial leasing,  factoring and financing companies ). Banks resident in Turkey must seek 
permission f rom the BRSA for mergers and liquidations and for establishing partnerships with 
individuals or corporations based abroad.  
4.92.  Domestic and foreign banks are subject to the same rules in terms of establishment, 
operation and supervision. There are no policy or ownership restrictions on the establishment 
either of foreign banks or on the number of branche s that foreign banks may open. Foreign banks 
are allowed to raise capital domestically. There is no distinction made between nationals and 
foreigners on the app lication of criteria to assess applications for banking licences.  
4.93.   Banks have been required to have a total capital -adequacy ratio (CAR) of at least 8% of 
risk-weighted assets. In addition, the BRSA has been implementing a target CAR (12%) for all 
banks. Since 1 January 2014, t he BRSA has begun to implement the Basel III accord.  
4.3.1.2   Insurance  
4.94.  The Turkish insurance market comprises insurance companies, reinsurance companies , and 
insurance intermediaries (brokers and agencies). At the end of 2014, there were 64 i nsurance 
companies out of which 38 companies operated in non -life insurance; 19 companies in life 
insurance and pensions; and six companies in life insurance only. There is only one reinsurance 
company, Milli Reaür ans T.A.Ş. (commonly referred to as Milli Re) which is a private company  
owned by Türkiye İş Bank A.Ş. The state does not have majority shares in any insurance or 
reinsurance company (Table 4.21).  
Table 4.21 Insurance sector - number of companies , 2012 -14 
Type of activities  December 2012  December 2013  December 2014  
Non-life 35 36 38 
Life 6 6 6 
Life and  pension  17 18 19 
Reinsurance  1 1 1 
Total  59 61 64 
Source:  Information provided by the authorities . 
4.95.  Most insurance sales (59% by premiums) are conducted through agencies with over 
16,000  agencies actively operating in Turkey. Sales through bank/insurance company 
arrangements (bancassurance) are becoming more popular and their market share increased from 
17% i n 2008 to 23% in late 2013. Direct sales by insurance companies represent only 5% of 
premiums.  
4.96.  Turkey's insurance sector has a low penetration rate, around 1.49% of GDP (2014).47 At the 
end of 2014, t he annual premium production in insurance was TL 25.9 bil lion (almost 
US$11.8 billion).  The share of non -life insurance premiums in total is 87 .4%, while life insurance 
represents a share of 12 .6% at the end of 2014.48 Motor vehicle accident insurance accounts for 
the largest share of non -life premiums, at around  50%. The average premium per person is 
around US $152.  
4.97.  The insurance sector in Turkey is regulated by the Undersecretariat of Treasury  (UoT) which 
reports to the Deputy Prime Minister for Economic and Financial Affairs. The General Directorate of 
Insurance , under UoT  is empowered to issue regulations regarding the insurance subsector, and to 
take measures to protect the insured. The Insurance Supervisory Board is entrusted with 
supervising, examining, and investigating the sector. The UoT is also the regula tor of the private 
pension system.  
                                               
46 Article 7 of the Ba nking Law.  
47 Gross non -life-insurance premiums/GDP is 1.30% and gross life insurance premiums/GDP is 0.19%.  
48 In the non -life-insurance market, the top five firms represent 50% of premiums while in the life 
insurance market the top five represent over 50% of premiums.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.98.  Insurance Law No. 5684  of 2007  governs the supervision of insurance and reinsurance 
companies. All insurance and reinsurance companies, whether Turkish or foreign, are subject to 
the same legislation. There is no restrict ion on foreign ownership.  Insurance or reinsurance 
companies may be established in Turkey only in the form of joint -stock companies  or as mutual 
companies (cooperatives) .49 Foreign insurance and reinsurance companies may also operate in 
Turkey by opening br anches, provided that they have not been prohibited in their country of 
operation. Insurance and reinsurance companies must obtain a licen ce from the U oT.50 A separate 
licence is issued for each branch. Licences are registered in the Turkish Trade Registry and 
published in the Turkish Trade Registry Gazette . 
4.99.  Insurance companies may only engage in the insurance business and must perform either 
life or non -life insurance, the minimum paid -up capital requirement for insurance an d reinsurance 
companies being TL  5 million. Insurance and reinsurance companies that have completed their 
establishment formalities and are seeking a licence have  to raise their paid -up capital  to an 
amount to be determined by the U oT.51 Circular 2007/4 states the amount of additional capi tal 
that is required for the licence request of each insurance branch. According to Article 7 of the 
Insurance Law, licences are withdrawn if no insurance or reinsurance contract is concluded within 
one year from the grant of the licence.  
4.100.   All insurance and  reinsurance companies, domestic or foreign, operating in Turkey and 
branch offices of foreign companies in Turkey , are members of the Association of the Insurance 
and Reinsurance Companies of Turkey. As stated in the Insurance Law (Part VI), the main purp ose 
of the Association is to ensure the development of the insurance profession; to secure solidarity 
among insurance companies; and to adopt and implement all the necessary measures needed to 
control unfair competition.  Insurance companies are subject a s elf-regulatory function through the 
Association as well as the Law on Protection of Competition (No.4054 of 1994).  
4.101.   In 2012, incentives for the Private Pension System (third pillar voluntary private pension 
scheme)  were changed. The new incentive system, wh ich came into effect as of January 2013, 
allows for tax benefits up to a certain limit  which  are offered for life insurance and private pension 
contributions as an incentive for long term savings , although  risk products dominate  the life 
insurance market i nstead of products designed specifically for long -term savings . The right to 
access state contribution s depends on the duration of involvement in the private pension system.  
The state incentive for private pension scheme took the form of 25% direct contrib utions since 
2013. In December 2014, the total value of the pension funds stood at US$ 37.8 billion, more than 
doubling the subscription rate and reaching close to 5.5 million participants.  
4.102.   Since  April 2013, specialized courts have been authorized to constr uct independent dispute 
resolution mechanisms in the case of any disputes.  Turkey signed t he International Association of 
Insurance Supervisors (I AIS) Multilateral Memorandum of Understanding (MMoU)52 on 
20 March  2013.  
4.3.1.3   Securities  
4.103.   At the end of 2014, there w ere 582 companies registered with the Capital Markets Board, 
425 of which were listed on Turkey's stock exchange, Borsa Istanbul (BIST) . The number of listed 
firms increased by 5% from 404 in 2012.  Total traded value of Borsa Istanbul Equity Market is 
US$400 billion. Market capitalization , which was US$270 billion as of the end of 2014, was 
equivalent to  36% of GDP in 2014  (39% in 2012 and 32% in 2013)  (Table 4.22).  
                                               
49 Article 3 of the Insurance Law No.5684 of 2007.  
50 Article 5 of the Insurance Law No.5684 of 2007 . 
51 The UoT is authorized to increase the amount of paid -up capital provided that it does not exceed the 
rate of increase in the Producer Price I ndex decided by the Turkish Statistical Institute (Article 5.4 of the 
Insurance Law).  
52 The IAIS Multilateral Memorandum of Understanding (MMoU) is a global framework for cooperation 
and information exchange between insurance supervisors. It is a statement  of its signatories ' intent to 
cooperate in the field of information exchange, as well as procedures for handling information requests.  As at 
July 2015, there were 54 signatories. Online information. Viewed at: http://iaisweb.org/index.cfm?event= 
getPage&nodeId=25287 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 4.22 Main indicators – Borsa Istanbul  
Number of companies registered  582 
Borsa Istanbul listed  companies  425 
Other publicly held companies  157 
Borsa Istanbul markets  2014 Trading volume (US$ billion)  
Equity market 399 
Bond market 3,493  
Futures and options market 199 
Precious metals and diamonds market  9 
Source:  Borsa Istanbul . 
4.104.   According to the World Federation of Exchanges (WFE) figures, in 2014, i n terms of traded 
value, Borsa İstanbul Equity Market ranked 7th among emerging markets and 2nd in the region53 
following the Saudi Stock Excha nge. As for market capitalization, it ranked 16th among emerging 
markets and 3rd in the region. Based on turnover velocity, Borsa İstanbul ranked 3rd among all the 
exchanges.54 
4.105.   The Capital Markets Board (CMB) is the regulatory and supervisory authority of t he 
securities markets and institutions in Turkey. The CMB determines the operational principles of the 
capital markets and is responsible for the protection of the rights and interests of investors. The 
CMB regulates and supervises public ly held  companies ; listed companies ; investment companies ; 
exchanges ; mutual, closed -end and pension funds ; and leveraged transactions on foreign 
exchange and precious metals. The CMB also regulates the Settlement and Custody Bank 
(Takasbank), Turkish Capital Markets Associ ation (TCMA), Central Registry Agency (MKK), Investor 
Compensation Center (ICC), 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 4.23).  
Table 4.23 Institutions in the securities market , 2014  
December 2014  
Investment firms 140 
Banks  51a 
Banks with foreign capital  25 
Intermediary institutions  97 
Intermed iary institutions with foreign capital  27 
Portfolio management companies  40 
Portfolio management companies with foreign capital  8 
Credit rating agencies  10 
Independent audit companies  92 
a 43 banks have been authorized by the CMB in relation to capita l market activities . 
Source:  CMB. 
4.106.   All investment firms, banks that are authorized for capital market operations, portfolio 
management companies and investment trusts should become members of the Turkish Capital 
Markets Association (TCMA ).55 TCMA sets profes sional rules and monitors the members to provide 
a fair and disciplined capital market. TCMA establishes and enforces regulations on subjects 
assigned by legislation or by the CMB.  
4.107.   A new regulatory framework to enhance the effectiveness of market supervisi on and 
strengthen market infrastructure entered into force on 30 December 2012 to replace the previous 
law, which was first enacted in 19 81 (Box 4.1).  
                                               
53 Emerging Europe, the Middle East, and North Africa.  
54 Information provided by Borsa Istanbul.  
55 Article 74 of the Capital Markets Law.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Box 4.1 Capital Markets Law (No. 6362 of 2012)  
The new Capit al Markets Law (CML)  No.6362 of 2012 was prepared in accordance with the 
EU acquis and drafted in line with the objectives of the Istanbul International Financial Centre 
Project. The CML provides the legal infrastructure for the privatization of securities  exchanges, 
which previously had to be public legal entities. It also introduces the establishment of marke t 
operators for the first time.  
 
Key improvements include the strengthening of a sanctioning regime; redefining market 
manipulation and insider tradi ng based on EU legislation and strengthening corporate governance 
practices of listed companies by having independent board members, shareholders' rights and 
disclosure become compulsory; made an activity -based classification and allowed investment firms 
to provide ancillary services subject to permission. Principles regarding the use of collateral 
deposited in relation to capital market transactions are specified in the new Law, in line with the 
relevant EU legislation. Accordingly , title transfer collater al agreement (facilitating the transfer of 
full ownership of the securities) is introduced and some protective provisions regarding the rights 
of parties are stipulated.  
 
New capital market institutions56 were introduced such as central clearing institution s, central 
counterparties, central depositary institutions and data repositories. Clearing finality is regulated in 
line with relevant EU legislation in order to prevent clearing orders and transactions of capital 
market instruments as well as payment tran sactions from being undone or cancelled.  
The establishment of securities exchanges and market operators is subject to the approval of the 
Council of Ministers, upon the recommendation of the CMB. Alternative Consumer Dispute 
Resolutions are introduced in t he CML for the disputes arising from exchange transactions defined 
in the new Law.  
Source:  Information provided by the authorities.  
4.108.   At the end of 2012, Borsa Istanbul was created as a joint stock corporation for the purpose 
of serving as the single securi ties exchange where securities, derivatives and commodities are 
being traded. With this merger, and since 2013, the Istanbul Stock Exchange, the Istanbul Gold 
Exchange and the Futures and Options Exchange have been under the ambit of Borsa Istanbul. 
This n ew infrastructure allows for the purchase and sale of all kinds of financial instruments under 
one roof and to operate within the framework of a financial supermarket idea.  
4.109.   The longer -term aim is to prepare Borsa Istanbul for privatisation. International 
counterparts have long expressed interest in potentially taking a stake in the company. BIST is 
49% owned by the Government, which has indicated intent to sell its stake in an IPO planned for 
2016.  
4.110.   Borsa Istanbul has several tiers and a number of separate m arkets, giving investors access 
to a broad range of companies and instruments. The first tier is the National Market for companies 
that fulfil listing and liquidity criteria, including all those on the BIST 100, the main capital markets 
index. Those not fu lfilling criteria of the National Market are temporarily transferred to the Second 
National Market. The Second National Market had 94 firms at the end of 2014 and is largely 
intended for SMEs.57 SMEs have lighter requirements for listing. Listed companies, intermediary 
institutions and portfolio management companies comply with the international standards on 
accounting, reporting and auditing (IFRS, IAS) as of 2008.  
4.111.   As of 2011, the Emerging Companies Market (ECM) was established as a distinct market 
within B orsa İstanbul to create a transparent and organized platform where securities, issued in 
                                               
56 Capital market institutions  are defined in the Capital Market Law  as: investment firms, collective 
investment schemes, independent audit firms, appraisal firms and credit rating agencies, asset management 
companies, mortgage finance institutions, housing finance and asset finance funds , asset leasing companies 
(special purpose vehicles for Islamic bonds), central clearing institutions, central depository institutions  and 
trade repositories.  
57 According to the authorities, the structure of capital markets will be updated at the end of 20 15. 
According to the new scheme, there will be two tiers: the Star Market and the Main Market. The Star Market 
has listing criteria including higher minimum IPO size and market capitalization, and lower minimum free float 
rate. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  order to raise funds from capital markets by companies with growth and development potential, 
can be traded. ECM traded shares are registered with the Central Registry  Agency (CRA) system in 
dematerialized form. The custody and settlement of ECM included shares are executed in the same 
method as those traded on the Equity Market and their trading is also carried out on the same 
electronic platform with the Equity Market , although by different trading methods. Trading is 
conducted according to the ECM Regulation on Borsa İstanbul Electronic Trading System, subject 
to the Capital Market Regulations.58 Cash and security settlement of trades are completed by 
Takasbank.  
4.112.   Banks can carry out the following investment services and activities59: 
 reception and transmission of orders in relation to capital market instruments; execution of 
orders in relation to capital market instruments in the name and account of the customer or 
in the ir own name and in the account of the customer, with the exception of shares, 
derivatives with shares or stock indices as underlying assets;  
 dealing on own account can be carried out by banks with the exclusion of shares and 
derivatives with shares as und erlying assets;  
 safekeeping and administration of capital market instruments in the name of the customer 
and portfolio custody services;  
 conduct of other services and activities to be determined by the CMB; and  
 investment services and activities that can be carried out by investment and development 
banks. 
4.113.   Banks may not conduct any leveraged forex transactions. In addition to the investment 
services and activities that can be carried out by banks, investment and development banks can 
also do the following: portfolio management; investment advice; underwriting of capital market 
instruments on a firm commitment basis; and placing of financial instruments w ithout a firm 
commitment basis.  
4.114.   Procedures for establishing investment firms have changed according to the  new CML of 
2012 and Article 8.1 of the Communiqué III -37.1 on Principles Regarding Investment Servıces, 
Activities and Ancillary Services. Three new categories of intermediary institutions have been 
established: (a) "narrowly authorized intermediary institutions " which are engaged in any or all of 
reception and tr ansmission of orders and investment advice -related services and activities; 
(b) "partially authorized intermediary institutions " which are engaged in any or all of execution of 
orders, best effort, limited custody and portfolio management -related services and activities; and 
(c) "broadly authorized intermediary institutions " which are engaged in any or all of dealing on 
own account, general custody and underwriting related services and activities.  
4.115.   Permission from CMB is required to establish intermediary i nstitutions and portfolio 
management companies.60 Investment services and activities can only be performed by 
investment firms and require approval from the CMB. Ancillary services61 are performed by 
investment firms and portfolio management companies withou t being subject to a separate 
licence. 
4.116.   Minimum capital requirements for establishing asset management companies have 
changed according to the CML. To establish portfolio management, investment advisory services, 
and wealth  management and financial planning  companies (if assets under management are at 
least TL  5 million), the required minimum capital amount is determined according to the assets 
                                               
58 Primarily the "Continuous Auction with Market Maker " method is used for trading while the "Single 
Price" method is used for the equities without a market maker.  
59 According to Article 39 of the CML.  
60 Article 43 of CML.  
61 Ancillary services  provid e advisory services; grant credits;  lend or provide  foreign currency services 
associated with investment services and activities ; provid e investment research , financial analysis or general 
advice ; provid e services in relation to the conduct of underwriting ; provid e intermediary services for  obtaining 
financing by borrowing or through other means ; and provide wealth management and financial p lanning.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  under management (Table 4. 24). If assets under management exceed TL 10 million, the company 
is required to hold add itional capital of 0.02% for assets surpassing this threshold. There is no 
additional capital requirement if the assets under management happen to exceed TL  20 billion.  
Table 4.24 Asset Management Companies  
Minimum capital requirements  
Type  TL US$a 
< TL 100 million  2,000,000  859,513  
TL 100 million < AUM < TL 500 million  3,000,000  1,289,269  
TL 500 million < AUM < TL 5 billion  5,000,000  2,148,782  
> TL 5 billion  10,000,000  4,297,563  
a Calculated as of Decemb er 2014.  
Source:  CMB. 
4.117.   Joint stock companies with more than 500 shareholders or those with public offerings are 
subject to the CML. Disclosure requirements also apply to securities issued by state -owned 
enterprises (including those lined up for privatizatio n); all of their shares must be registered; 
shares must be issued for cash; and their capital must not be less than the amount determined by 
the CMB.  
4.118.   CMB may withdraw the permission for an activity and a licence it has granted in the 
following cases: not p erforming any activity under the related permission for two years starting 
from the date the permission was granted; having obtained permission for an activity by making 
false or misleading statements or through other illegal means; no longer being able to  meet the 
conditions required for the permission for activity and not being able to meet them again within 
three months starting from the date when it has been determined by CMB that they have been 
lost. 
4.119.   The introduction of an electronic platform for mutua l funds (TEFAS) on 9 January 2015 has 
changed the Turkish portfolio management and brokerage industries. Before TEFAS , banks were 
the major players in the mutual fund industry as they had the advantage of their branch and 
customer base , while small funds  (even those with good performance records) had difficulty in 
reaching customers. As a result of TEFAS , Turkish investors can buy any mutual fund from any 
broker or bank . 
4.120.   Taxation of selected investment instruments in Turkey is provided in Table 4.25.  
Table 4.25 Taxation of selected investment instruments in Turkey  
Investment  Individuals  Corporations  
Residents  Non-residents  Residents  Non-residents  
Bank depositsa  10-18% withholding 
tax 10-18% withholding 
tax 10-18% 
withholding taxb 10-18% 
withholding tax  
 
Repo interest  15% withholding tax  15% withholding tax  15% withholding 
taxb 15% withholding 
tax 
 
Bonds ( capital 
gains and 
interest)  
 10% withholding tax  10% withholding tax  0% withholding 
taxb  0% withholdin g tax 
Futures  Withholding tax rate is 
0% for contracts on 
equities or equity 
indices and 10% for 
others  Withholding tax rate 
is 0% for contracts on 
equities or equity 
indices and 10% for 
others  
 0% withholding 
taxb 0% withholding tax  
Listed equities  Capital gains derived 
from shares are 
subject to 0% 
withholding taxc Capital gains derived 
from shares are 
subject to 0% 
withholding taxb 
 0% withholding 
taxb 0% withholding tax  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Investment  Individuals  Corporations  
Residents  Non-residents  Residents  Non-residents  
Investment 
funds  Subject to 10% 
withholding taxc Subject to 10% 
withholding tax  0% withholding 
taxb Subject to 0% 
withholding tax  
 
Covered 
warrants  Withholding tax rate is 
0% for covered 
warrants on equities or 
equity indices and 
10% for others  Withholding tax rate 
is 0% for covered 
warrants on equities 
or equity indices and 
10% for o thers 
 0% withholding 
taxb 0% withholding tax  
Dividends on 
equities  15% withholding tax is 
applied by the 
corporation 
distributing dividendsd 15% withholding tax 
is applied by the 
corporation 
distributing dividends  Not subject to 
dividend 
withholding tax . 
Dividends 
received from 
resident 
corporations are 
exempt from 
corporate tax  15% withholding 
tax is applied by 
the corporation 
distributing 
dividends  
a Withholding tax for TL (FX) denominated bank deposits varies from 15% (18%) for maturities under 
6 mon ths, to 12% (15%) for deposits with a maturity between 6 months and one year, and to 10% 
(13%) for maturities exceeding one year.  
b Earnings are subject to 20% corporate tax, but withholding tax is deducted.  
c Withholding tax is not applied to the gains fr om the mutual funds, if held for more than one year and 
if the equity portion of the fund's portfolio is at least 51% at all times. However, the shares of 
investment trusts are subject to 10% tax rate, if held for less than a year. For mutual funds and 
exchange -traded funds classified as 'equity intensive' (equity investments of at least 75% of the 
portfolio), the withholding tax rate is 0%.  
d Half of the dividends are exempt from income tax. If the remaining amount exceeds TL 29,000 in 
2015, all income mus t be declared and will be subject to income tax. In that case, the full amount of 
withholding tax may be deducted from the income tax.  
Source:  Handbook of the Turkish Capital Markets, 2015.  
4.3.2   Health  
4.3.2.1   Overview  
4.121.   During the last decade, Turkey's healthcare system  has undergone many changes offering 
improved healthcare for all. Social security systems have been merged, private health insurance 
developed, primary care improved, and the Ministry of Health restructured. Turkey's healthcare 
expenditures reached TL 94.8  billion in 2014, or 5.4% of GDP (Table 4.26), although  this remains 
the lowest  among OECD countries. In terms of healthcare workers, a similar trend is observed with 
only 1.8 doctors per 1,000 population, also the lowest among OECD countries, even though Turkey 
has increased the number of doctors significantly in recent years.  
Table 4.26 Overview of Turkey's health services, 2011 -14 
Health and medical services  2011  2012  2013  2014  
Total health expenditure (THE ) as % of GDP  5.3 5.2 5.4 5.4 
General government expenditure on health (GGHE) as % of THE  79.6 79.2 78.5 77.4 
Social security funds as % of GGHE  64.0 70.8 71.0 70.0 
Private health expenditure (PvtHE) as % of THE  20.4 20.8 21.5 22.6 
Private insurance as  % of PvtHE  12.7 12.1 11.2 10.7 
Private out -of-pocket payment as % of THE 15.4 15.8 16.8 17.8 
Total expenditure on hospitals as % of THE  41.6 48.6 49.5 49.0 
Health expenditure per capita (US$)  553 548 583 563 
Source:  Turkstat, Health Expenditure Statis tics, 2011 -2013. Viewed at: 
http://www.turkstat.gov.tr/PreTablo.do?alt_id=1084 ; and information provided by the authorities.  
4.122.   The Ministry of Health has a growing budget, amounting to TL 41. 2 billion in 2014 and 
accounting for a larger share of GDP; in 2002 it was 1.5% of GDP; and in 2014, 2.3% of GDP. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Partly as a result, life expectancy has increased, reaching 77 years in 2014 compared to 72.5 in 
2002.  
4.3.2.2   Trade  
4.123.   According to the OECD, the majori ty of international trade in health services involves 
patients crossing borders to obtain services, i.e. GATS mode 2, but services are also provided 
remotely such as providing diagnostic services; currently this trade is small but with advances in 
technolo gy it is predicted to grow.62 Cross -border health care services are regulated bilaterally in 
the social security agreements or in the social security clauses of bilateral agreements on health .  
4.124.   The OECD reports trade in health services as a percentage of he alth expenditures. For 
Turkey, imports of health services were estimated at approximately 0.5% of health expenditures in 
2012, and exports (defined as domestic provision of health services to non -residents) 
approximately 1%. Exports were however growing st rongly, at a 12% annual growth rate during 
2007-12, which was the 6th highest rate of growth among reporting European countries.63,64 
Exports of health -related travel or other services were 1.1% of total health expenditure but, at 
€219.5 million in 2012, wer e higher than for any EU member State for which there are data.65 
4.3.2.3   Structure of the sector  
4.125.   Since 2003, Turkey's healthcare sector has undergone significant changes with the Health 
Transformation Programme, 2003 -11. The programme targeted the following areas for reform: the 
Ministry of Health as the planner and supervisor; universal health insurance which gathers all 
under a single framework; widespread, easy to access and friendly health care system including 
strengthened primary care; health care providers e quipped with knowledge and skills and working 
with high motivation; education and scientific institutions to support the system; quality and 
accreditation for qualified and efficient health services; corporate structuring in rational drug and 
supplies mana gement; and access to effective knowledge in the decision process (health 
information system).  
4.126.   Reforms in the social security system took place in 2006 so that the three social security 
entities, SSK, BAG -KUR, and Emekli Sandigi were merged into one entity , the Social Security 
Institute (SSI). As of 2014, SSI covered 98.45% of the population. The creation of SSI coincided 
with the establishment of the universal health insurance.66 In 2007 legal measures were put in 
place so that all Turkish citizens ha ve access to free primary care.  
4.127.   Regulatory amendments in 2010 facilitated the expansion of private health insurance in 
Turkey by creating supplementary insurance allowing patients to be treated at private hospitals 
that apply higher charges. However, there are g overnment incentives for insurance for services at 
private hospitals. Nonetheless, there has been a surge in individual private insurance policies, and 
as of 2014, the increase in premium generation in health insurance policies has been recorded as 
18.8% . Reforms also took place in terms of pharmaceutical pricing, with reductions in tax and 
lower costs, resulting in better availability of medicines.  
4.128.   Traditionally, the State, in particular the Ministry of Health, has been the main provider of 
health care in Turkey. The Ministry of National Defence and university hospitals are also state 
providers of healthcare in Turkey. However, private healthcare has increased significantly in recent 
years, in part due to long waiting lists in state -run hospitals and the av ailability of private 
insurance. Nevertheless, the Ministry of Health remains the main provider of health services in 
                                               
62 OECD Health at a Glance: Europe 2014, online information. Viewed at: http://www.oecd -ilibrary.org/ 
docserver/download/8114211e.pdf?expires=144 4319566&id=id&accname=guest&checksum=206D48A6CD8D
AB19C93754AD315E125F . 
63 Reporting countries are the member States of the EU, FYR of Macedonia, Iceland, Montenegro, 
Norway, Serbia, Switzerland, and Turkey.  
64 OECD Health at a Glance: Europe 2014, online inf ormation. Viewed at: http://www.oecd -
ilibrary.org/docserver/download/8114211e.pdf?expires=144431956 6&id=id&accname=guest&checksum=206D
48A6CD8DAB19C93754AD315E125F . 
65 Eurostat online database, balance of payment, international trade in services, personal travel, health -
related expenditure. Viewed at: http://ec.europa.eu/eurostat/data/database . 
66 The Social Security and Universal Health Insurance Law.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Turkey today. Under recent legislation on Public -Private Partnerships ( section 4.3.2.5) there are 
more joint healthcare initiatives involv ing the state and private entities.  
4.129.   The private healthcare sector has been growing, and its growth rate surpasses that of the 
public sector, as the growth in hospitals, hospital beds, and number of visits demonstrates. 
Between 2011 -14 the number of hospita l beds in Ministry of Health hospitals increased slightly, 
while for private hospitals it increased by 28%. Another trend is the increased number of visits to 
secondary and tertiary health facilities where specialized surgeries or treatments are offered, 
compared to visits to primary health care facilities. Visits to primary health facilities declined by 
11.5% while visits to secondary and tertiary facilities increased by 16% over the period 
(Table  4.27).  
Table 4.27 Structure of healthcare sector, 2011 -14 
 2011  2012  2013  2014  
Visits to primary health facilities  244,346,102  235,137,151  220,252,781  219,205,605  
Secondary and tertiary health care visits  366,890,243  386,649,146  410,068,343  424,786,425  
Number of or gan transplants  3,953  4,008  4,294  4,261  
Number of hospital visits:      
 Ministry of Health  254,342,943  260,974,401  277,485,135  292,100,331  
 University  24,437,107  27,080,436  29,985,697  32,143,930  
 Private  59,069,486  66,582,098  71,341,411  72,333,383  
Hospitals:  
 Ministry of Health  840 832 854 866 
 University  65 65 69 69 
 Private  503 541 550 556 
 Other  45 45 44 37 
Hospital beds:  
 Ministry of Health  121,297  122,322  121,269  123,690  
 University  34,802  35,150  36,056  36,670  
 Private  31,648  35,767  37,983  40,509  
 Other  6,757  6,833  6,723  5,967  
Oral and Dental healthcare facilities (number of dental units):  
 Ministry of Health  6,169  7,048  7,250  7,659  
 University  .. 2,973  3,167  3,610  
 Private  .. 4,474  5,575  6,615  
 Other  .. 191 209 186 
.. Not available  
Source:  Ministry of Health, Health Statistics Yearbooks, 2011 -14. 
4.130.   There are also a number of associations or NGOs involved in the healthcare field in Turkey: 
the Turkish Medical Association (TTB), Association of Private Hospitals and Healthcare 
Organizatio ns (OHSAD), Foreign Economic Relations Board (DEIK), Turkish Pharmacists' 
Association (TEB), Association of Accredited Hospitals, Turkish Nursing Association, Turkish 
Midwives Association, and the Turkish Dental Association (TDB). They are involved in accr editation 
activities, continuing education, and policy advocacy.  
4.3.2.4   Policy  
4.131.   During the review period, Turkey's health care policy has been shaped by the Ministry of 
Health's Strategic Plans, one covering the period 2010 -14 and the other 2013 -17; however, it 
maintains a basic goal: "To protect and improve the health of our people in an equitable manner."  
4.132.   The 2013 -17 Strategic Plan outlines four strategic goals and 32 objectives. The four 
strategic goals are: to protect the individual and the community from healt h risks and foster 
healthy life styles; to provide accessible, appropriate, effective, and efficient health services to 
individuals and the community; to respond to the health needs and expectations of individuals WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  based on a human -centred and holistic appr oach; and to continue to develop the health system as 
a means to contributing to the economic and social development of Turkey and to global health.67 
4.133.   The 2013 -17 Plan's first three strategic goals build upon the three goals of the 2010 -14 
Plan but add s the additional strategic goal that the health system should contribut e to economic 
and social development, and also global health. A number of the objectives under this strategic 
goal could affect trade in health services, as Turkey plans to promote the contr ibution of the health 
sector to the economy, strengthen health tourism in Turkey, and contribute to global health 
through cooperation and development aid. In terms of health tourism, Turkey plans to expand the 
scope of services offered, improve the quality  of service, launch promotions, and improve health 
tourism governance.68 
4.3.2.5   Legal and regulatory framework  
4.134.    Turkey's main healthcare law, the Basic Law on Health Services is from 1987 and sets out 
a framework for health services.69 The overarching principles of  the law set out that health 
services be provided equally for all throughout the county, the equal distribution of health 
establishments and personnel, a health record and notification system, preventative care, and 
disease prevention. The main provisions provide for the allocation of medical staff, medical 
research, private health insurance, health management, treatment costs, regulations, and 
organizational aspects. Other major legislation on health includes laws related to particular health 
issues, laws on health associations, and regulatory matters (Table 4.28).  
Table 4.28 Turkey's main healthcare laws  
Law Reference  
Oral and Dental Health Services Private Health Facilities Law  Official Gazette  No. 29256 
of 3 February 2015  
Family Medicine Pilot Practice  Law No. 5258  
Private Hospitals Act  Law No. 2219  
Prevention of Damages and Control of Tobacco Products  Law No. 4207  
Cosmetics  Law No. 5324  
Opticians  Law No. 5193  
Adoption of Amended Decree on Production , Consumption and Inspection of 
Food Law No. 5179  
State Coverage of Treatment Costs of Citizens who Lack the Ability to Pay by 
Granting them Green Cards  Law No. 3816  
Basic Law on Health Services  Law No. 3359  
Encouraging Social Assistance and Solidarity  Law No. 3294  
Turkish Dentists Association  Law No. 3224  
Establishment of Cancer Control Department  Law No. 18351  
Organization and Duties of the Ministry of Health  Decree No. 181  
Blood and Blood Products  Law No. 2857  
Harvesting, Storage, Grafting and Tr ansplantation of Organs and Tissues  Law No. 2238  
Socialization of Health Services  Law No. 224  
Revolving Capital Law  Law No. 209  
Elimination of Malaria  Law No. 7402  
Pharmacists ' Association law  Law No. 6643  
Nursing  Law No. 6283  
Pharmacies and Pharmaci sts Law  Law No. 6197  
Turkish Medical Association Law  Law No. 6023  
Elimination of Tuberculosis  Law No. 7183  
Public Health Law  Law No. 1593  
Organ and Tissue Removal, Storage, and Transport Law  Law No. 16655  
Procedures for the Practice of Medicine and It s Branches  Law No. 1219  
Forensic Institutions Law  Law No. 2659  
City/Campus Hospitals Law  Law No. 6428  
Source:  Ministry of Health, and Turkish Medical Association . Viewed at:  www.ttb.org.tr . 
                                               
67 Ministry of Health, online information . Viewed at : http://sbu.saglik.gov.tr/Ekutuphane/kitaplar/strate 
jikplaning.pdf . 
68 Ministry of Health, onlin e information . Viewed at: http://sbu.saglik.gov.tr/Ekutuphane/kitaplar/strate 
jikplaning.pdf . 
69 Law No. 3359 of 15 May 1987.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.135.   Recent legal developments  include a new law on the operation of private dental facilities 
that was passed in 2015.70 This law prescribes  the requirements for establishing a private dental 
practice or clinic . The legislation provides for minimal standards for the building and office ; 
responsibilities and qualifications of dentists, a responsible manager, and personnel; licensing and 
operating permits; working principles; a dental record system; dental laboratory and x -ray 
services; and patients' rights.71 
4.136.   In 2013, Turkey passed new le gislation on Healthcare Public -Private Partnerships (PPP), 
replacing earlier legislation, in which improvements were made in bringing legal certainty and 
reducing burdens and risks to the private firms.72 The PPP involves the collaboration of the public 
and private sectors to provide public services usually provided by the State, and in this case for 
the healthcare sector. Under the PPP build -lease-transfer model, 34 health campuses or city 
hospitals are due to be built with the investment of the private sec tor and then subsequently 
leased by the Ministry of Health. As of 2015, there were 20 projects being developed. The PPP 
legislation encourages investment and requires that at least 20% of the medical equipment used in 
PPP healthcare facilities be locally produced.  
4.137.   Turkey's Ministry of Health has a number of bilateral agreements or social security 
agreements with other countries that aid in the trade of health services. Turkey has signed Social 
Security Agreements with total 27 partner s. Sixteen  of these agr eements are bilateral agreements 
with mainly European countries, e.g. Germany, Netherlands, FYR of Macedonia, Romania, etc. 
which cover health care provisions.  
4.138.   The health care applications specified in all of the agreements mentioned above include 
persons who are employed under a contract of employment by one or more employer and who 
receive an income/pension within this context, toge ther with their dependants. The only exception 
to this coverage is Germany, which has slightly different provisions.  
4.139.   Insured persons can benefit from medically essential healthcare services or emergency 
healthcare services under the legislation of that country according to the reason of stay in the 
contractual country. Medically essential healthcare services encompass the whole scope of 
healthcare services provided under the legislation of the contractual country. Emergency 
healthcare services encompass the healthcare services requiring immediate treatment and which 
cannot be postponed until the arrival at the home country. One c ould benefit from these 
emergency healthcare services in situations of posting, touristic or educational stay in the above -
mentioned contractual countries. In the event of permanent residence, one can benefit from 
medically essential health care services a ccording to the legislation of that country.  
4.140.   Similarly, Turkey has signed bilateral agreements covering health care services for a 
definite number of patients from ten partners. Patients entering health care services pursuant to 
these agreements are treate d by the Ministry of Health through public or university hospitals.  
4.3.2.6   Licensing, accreditation, and regulatory aspects  
4.141.   Since 1933, Turkey's Ministry of Health has regulated the licensing of private hospitals. 
The law on private hospitals, pursuant to amendme nts introduced in 2008, legislated strict 
licensing requirements for hospitals that restricted the opening of new ones. There is also an 
annual cap on the number of hospitals to be opened and the Ministry determines the number of 
personnel to be employed i n private hospitals.73 
4.142.   In 2010 the Ministry of Health issued a Directive on the rating of private hospitals.  Rating 
criteria include service quality, capacity, employees' rights, etc. and these provide an overall score 
that allows private hospitals to charg e a premium. These premiums, or extra costs, range from 
30 to 70% above the General Health Insurance (GSS) official price.  
                                               
70 Official Gazette  No. 29256 of 3 February 2015.  
71 Work on the relevant legislation is still ongoing.  
72 Law No. 3359 of 15 May 1987  and Law No. 6428 of 9 March 2013.  
73 Private Hospitals Legislation No. 26788 of 15 February 2008 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.143.   Prices for pharmaceuticals are regulated in Turkey by the Turkish Medicines and Medical 
Devices Agency under the Ministry of Health. The institution is responsible for determining the 
initial price of, and price changes, in pharmaceuticals.  
4.144.   The establishment of diagnostic centres also requires a licence. The Ministry of Health 
requires that only specialized Turkish doctors having the ne cessary certificate, or in the case of a 
company where all the shareholders are Turkish doctors, can obtain a licence for the operation of 
diagnostic centres. The establishment of polyclinics and medical centres requires that the Turkish 
doctor has the rig ht to work independently, or in the case of a company, that all shareholders are 
Turkish doctors.  
4.145.   Previously, doctors working in Turkey were required to be Turkish citizens and have a 
diploma from a Turkish medical school until a  law was adopted in 2007 re moving this requirement, 
but subsequently overturned. However in 2011, a statutory decree permitted foreign doctors to 
practise in private health institutions if they passed a language test, obtained work and residence 
permits, obtained liability insurance , and if their medical diplomas were awarded a certificate of 
equivalence to Turkish University standards.74 The same provisions are provided to all health 
workers except dentists, pharmacists, nurses, and midwives.  
4.146.   As of 2015, approximately 500 foreign doc tors were working in Turkey.75 Further revision 
to the legal provisions allowing more foreign doctors to practise in Turkey may be  considered  in 
the future . Criteria are also required  for medical laboratories , as they  are regulated to be in line 
with the medical laboratories l egislation .76 
4.3.2.7   Incentives  
4.147.   According to the investment incentive programme , certain health -related industries are 
deemed priority sectors and benefit from the Priority Investment Scheme. High -technology 
industries according to OECD 's class ification of manufacturing industries into categories based on 
R&D intensities are considered as priority investments including pharmaceuticals , and medical , 
precision and optical instruments. Under the investment incentive programme , all hospital 
investme nts (surgical hospital services, medical hospital services, hospital services related to 
obstetrics, rehabilitation, and psychiatry, other services related to hospital) with the prior 
authorization issued by the Ministry of Health that are made in each region can be supported 
within the frame work of the R egional Investment Incentive S cheme (section 2. 4.4.1) provided that 
they meet the minimum fixed investment amounts defined for the related region where the 
investment is made.  Medical centres (requir ing prior authorization issued by the Ministry of 
Health), dialysis centres, analysis laboratories, magnetic imaging centres, assisted reproductive 
treatment care centre s, radiotherapy and oncology centre s, physical therapy and rehabilitation 
centre s, oral and de ntal health centre s, and hereditary disease diagnosis investments , that are 
capable of getting a licence from the Ministry of Health, can be supported within the frame work of 
the General Investment Incentive Scheme  (section 2. 4.4.1) . In this context, these  investments 
may benefit from general support elements, which are exemptions from customs duties and VAT . 
The benefits offered under the program mes are numerous  and include various tax incentives or 
rebates  (Table 4. 29). 
4.148.   Turkey  was considering establishing  Health Free Zones, sim ilar to Free Zones 
(section  2.4.4.2), under the Ministry of Health; these will be special areas to provide health 
services . The Health Free Zones will be close to cities and transportation networks, and will include 
hospitals, rehabi litation centre s, thermal tourism facilities, nursing ho mes, health techno -cities, 
and R&D centre s.77 Some considerations for Health Free Zones may include tax incentives, 
cost-effective infrastructure, and employment of foreign doctors.  
                                               
74 Decree No. 663  of 11 October 2011.  
75 Online information. Viewed at: http://www.dailysabah.com/health/2015/01/05/foreign -doctors -
allowed -to-work-at-public -hospitals . 
76 Law No. 28790 of 19 October 2013.  
77 Republic of Turkey Prime Ministry Investment Support and Promotion Agency online information. 
Viewed at: http://www.invest.gov.tr/en -US/infocenter/publications/Documents/HEALTHCARE.INDUSTRY.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 4.29 Investment incentives for certain healthcare subsectors  
Incentives  Region s I, II, III, IV, and  V Region VI  
VAT exemption  Yes Yes 
Customs duty exemption  Yes Yes 
Contribution rate:  
 Non-OIZ 40 50 
 OIZ 50 55 
Insura nce premium social security:  
 Non-OIZ 7 years  10 years  
 OIZ 10 years  12 years  
Land allocation  Yes Yes 
Interest support  Yes Yes 
Income withholding tax  n.a. 10 years  
Insurance premium support  n.a. 10 years  
n.a. Not applicable.  
Source:  Online informati on. Viewed at: http://www.kpmgvergi.com/PDF/Yayinlar/KPMG -Global -
Yayinlar/Health%20Sector%20New%20 Investment%20Incentive%20System.pdf . 
4.3.2.8   Health tourism subsector  
4.149.   Health tourism is an important and growing part of Turkey's health and tourism sectors. In 
recent years the sector has grown and in 2014 Turkey was a leading provider in the health tourism 
sector. Turkey has been gaining market share in medical tourism by providing high quality tourism 
management and hospitality, infrastructure facilities, qualified  manpower, competitive price 
advantages, government support, and suitable climate.78 
4.150.   Turkey's Ministry of Health defines three types of health tourism: elderly and disabled 
tourism catering to elderly care, rehabilitation services, and special care for the disabled; thermal 
and wellness care which comprises spa treatments, physiotherapy, and hydrotherapy; and medical 
tourism comprising advanced treatments, transplantation, infertility, cosmetic surgery, and 
dentistry.  
4.3.2.8.1   Health tourism policy  
4.151.   The Ministry of He alth's Strategic Action Plan 2013 -17 outlines the goal of strengthening 
the health tourism sector in Turkey. It further identified four strategies to achieve this goal: 
advertising and creating attraction regarding health tourism, improving the quality of services 
offered under health tourism, expanding the service scope of health tourism, and enhancing the 
management of health tourism.79 
4.3.2.8.2   Health tourism incentives  
4.152.   In addition to the general incentives for healthcare ( section 4.3.2.7), Turkey also provides 
incentives to the health tourism sector (Table 4.30).  
Table 4.30 Health tourism incentives for companies, 2015  
Activity  Support  Reference  
Services to foreign patients, including 
medical documentation and data r etention 
services  
 Healthcare service providers may take 
advantage of a 50% tax reduction  Law No. 6322  
Support for obtaining reports for entry into 
the health tourism market  
 60% of the cost (up to US$200,000 per 
year)  Decree No. 2015/8  
Support for openi ng a representation office 
abroad ( up to 4 years)  
 60% of the rental costs (up to 
US$120,000 per year)  Decree No. 2015/8  
                                               
78 Ministry of Health, online information. Viewed at: http://www.saglik.gov.tr/SaglikTurizmi/dosya/1 -
91778/h/turkiye -medikal -turizm -degerlendirme -raporu -2013.pdf . 
79 Ministry of Health, o nline information. Viewed at: http://www.saglik.gov.tr/SaglikTurizmi/dosya/1 -
91778/h/turkiye -medikal -turizm -degerlendirme -raporu -2013.pdf. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Activity  Support  Reference  
Certification support  50% of the costs (up to US$50,000)  Decree No. 2015/8  
Advertisement, promotion, and marketing 
activities in the field of health tourism 
organized abroad  60% of their costs reimbursed (up to 
US$400,000 per year)  Decree No. 2015/8  
Participation in international health tourism 
fairs and conferences  50% of the costs (up to US$15,000 per 
activity)  
 Decree No. 2015/8  
Organization, promotion and consultancy 
costs, as well as transport and 
accommodation costs for a trade delegation  70% of the costs (up to US$150,000 per 
year, each industry organization may 
make use of the incentive for up to 10 
trade missions and 10 procur ement 
committees per year)  
 Decree No. 2015/8  
Procurement of consulting services  50% of the cost (up to US$200,000 per 
year)  Decree No. 2015/8  
Source:  Republic of Turkey Prime Ministry Investment Support and Promotion Agency online information. 
Viewed at : http://www.invest.gov.tr/en -US/infocenter/publications/Documents/HEALTHCARE. 
INDUSTRY.pdf . 
4.3.2.8.3   Health tourism statistics  
4.153.   Between 2011 and 2014, the total number of foreign patients increased by over 200% 
while the number of patients in private health care es tablishments more than tripled. However, 
there was also significant growth in 2013 -14 for foreign patients receiving healthcare from public 
establishments (Table 4.31). The main reasons for this large growth we re attributed to the quality 
of service in the  medical tourism sector ; qualified and young labo ur force ; presence of accredited 
hospitals ; developed technological infrastructure ; reasonable prices ; direct flights to many 
destinations and proximity to fore ign markets; diaspora tourism; mild climate ; and the presence of 
one of Europe 's most important geothermal resources . 
Table 4.31 Foreign patients receiving health services in Turkey, 2011 -14 
 2011  2012  2013  2014  
Public health 
establishments  41,847  43,904  122,842  128,908  
 Percentage  26.8 16.8 29.8 25.9 
Private health 
establishments  114,329  218,095  282,242  353,965  
 Percentage  73.2 83.2 68.4 71.3 
Total  156,176  261,999  412,493  496,324  
Source:  Ministry of Health online information. Viewed at: http://www.saglik.gov.tr/SaglikTurizmi/dosya/1 -
91778/h/turkiye -medikal -turizm -degerlendirme -raporu -2013.pdf . 
4.154.   Turkey offers a complete menu of hea lthcare offerings for health tourists. In 2013, the 
treatments most often sought by health tourists in Turkey were eye treatment; orthopaedics and 
traumatology; internal diseases; and ear, nose and throat diseases.80 
4.3.2.9   GATS commitments  
4.155.   Turkey's health and med ical services commitments under the GATS include commitments 
only on hospital services. For hospital services, Turkey's restriction has limits on market access as 
foreigners are required to get permission from the Ministry of Health in order to establish p rivate 
hospitals. There are no limitations on national treatment.  
4.156.   The applied regime matches the WTO bound commitments as the law on Basic Health 
Services and the B y-Law on Private Hospitals provide that foreigners may establish private 
hospitals with the permission of the Ministry of Health.81 
                                               
80 Ministry of Health online information. Viewed at: http://www.saglik.gov.tr/SaglikTurizmi/dosya/1 -
91778/h/turkiye -medikal -turizm-degerlendirme -raporu -2013.pdf . 
81 Law No. 3359 and Law No. 2219.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.3.3   Telecommunications  
4.157.   Turkey's telecommunications sector accounted for 1.9%  of GDP in revenues and employed 
34,386  persons in 2014. The same year total investments of mobile network operators amounted 
to TL 1.3 billion, while investments of other operators totalled TL 1.57 billion. In 2009, 3G entered 
the market and accounted for around 11% of total mobile subscriptions. During the review period 
the number of fixed phone subcribers has continued to decrease whilst that of  mobile subcribers 
has increased. In particular, 3G mobile subcriptions have increased during the review period, 
accounting for nearly 81% of 2014 total subcriptions (Table 4.32). Internet subscriptions have also 
increased in 2014 reaching nearly 41.2 mill ion, mainly from mobile internet which accounted for 
78.6%, followed by xDSL with 16.5% .82 
Table 4.32 Telecommunications indicators, 2011 -14 
 2011  2012  2013  2014  
Number of employees  36,565  37,021  34,548  34,386  
Revenue (TL million)      
Fixed -telephone services  5,876.7  5,365.82  4,552.33  4,000.18  
From mobile networks  14,980.39  16,563.13  17,704.98  18,992.08  
Total 28,020  30,323  31,299  33,663  
Number of subscriptions (million)      
Fixed phone  15.21  13.86  13.55  12.53 
Mobile phone  65.3 67.7 69.7 71.9 
- of which 2G  33.9 25.9 20.4 13.6 
- of which 3G  31.4 41.8 49.3 58.3 
Internet  22.3 27.6 32.6 41.2 
Penetration rate (%)      
Fixed phone  20.63  18.33  17.7 15.9 
Mobile phone  87.4 89.5 90.9 92.5 
Volume of investment  (TL million)      
Fixed phone  1,371.66  1,430.59  1,372.03  1,012.53  
Mobile phone  2,493.95  2,292.42  2,384.87  3,085.06  
Source:  International Telecommunication Union database and Information and Communications Technologies 
Authority (ICTA) online information . Viewed at: 
http://btk.gov.tr/File/?path=ROOT%2f1%2fDocuments%2fSayfalar%2fPazar_Verileri%2f2015 -
Q2.pdf#lock . 
4.158.   Apart from VAT, the telecom munications sector has been subject to a communication tax 
of 25% on mobile network services since 1999, 15% on cable television services since 2004, 5% 
on internet services, and 15% on other telecommunications services since 2004. The 
communication tax on  wired, wireless, and mobile internet providing services was reduced to 5% 
in 2009 .83 
4.159.   In 2000 , policymaking, regulation and operation functions in the telecommunication s 
sector were separated under Law No . 4502 establishing the first sectorial body in Turke y, now 
known as the Information and Communication Technologies Authority (ICTA) . Since 2008, the 
Electronic Communications Law has provided the legal framework for the telecommunications 
sector in Turkey.84 It brought Turkish legislation closer to the EU acquis, but according to the EU, 
the law deviates on a number of areas including authorization, universal service obligations, and 
interconnection.85 
4.160.   Pursuant to the Electronic Communications Law, the Ministry of Transport, Maritime  Affairs  
and Communications  (MTMC) is assigned the policy -making authority, whilst the ICTA is the main 
regulatory body for the sector responsible for ensuring competition. The ICTA's additional 
responsibilities include dispute settlement; setting regulations for interconnection and  national 
                                               
82 ICTA online information. Viewed at: 
http://www.btk.gov.tr/File/?path=ROOT%2f1 %2fDocuments%2fPages%2fMarket_Data%2f2014 -Q3-En.pdf . 
83 Republic of Turkey Prime Ministry Investment Support and Promotion Agency online information. 
Viewed at: http://www.invest.gov.tr/en -US/infocenter/publications/Documents/chart -of-principal -turkish -
taxes -EN-2015.pdf ; and information provided by Turkish Authorities.  
84 Law No. 5809 of 2008.  
85 ICTA online information. Viewed at: http://eng.btk.gov.tr/kurum_hakkinda/kurulus/index.php and 
WT/TPR/S/259 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  roaming  requirements; determining the quality of universal service and standards ; setting certain 
tariffs; as well as issuing authorizations.  
4.161.   A number of tasks of the ICTA and the Competition Authority overlap. In 2011, a 
Cooperation Protocol was  signed between the two authorities to ensure common legislative 
interpretations as well as mutual cooperation and coordination procedures. In accordance with the 
protocol, the second per annum session was held in the beginning of 2013.86 In the most recent  
meeting , the Protocol was revised on 22 January 2015 to include the issues related to the postal 
sector.  
4.162.   Univers al services are governed under the law on Universal Services of 2005, alongside its 
amendments and related by -laws.87 Such services include fixe d telephone, public payphone, 
telephone directory, emergency calls, and basic internet service as well as certain maritime -related 
telecommunication services.88 According to Article 5 of the Universal Service Law No. 5369, 
universal services are inclusive o f the following:  
a. fixed telephony services;  
b. payphone services;  
c. telephone directory services to be provided in the printed or electronic media;  
d. emergency calls services;  
e. internet services;  
f. passenger transportation services to settlements where transportation  is provided by 
sea; and  
g. maritime communications and navigation safety communications services.  
4.163.   The scope of the universal service may be redefined by the Council of Ministers upon a 
proposal of the Ministry in consultation with the Authority and operator s at certain intervals, but 
not more than three years, with due consideration to Turkey 's social, cultural, economic and 
technological conditions.  In compliance with the provision of the above -mentioned Article, the 
following services have been included in  the scope of universal service:  
 services regarding the expansion of information technologies, including computer 
literacy so as to contribute to the improve ment of the information society;  
 services regarding the provision of digital broadcasting performed  by the utilization of 
various broadcast media and technology via di gital terrestrial transmitters to cover the 
entirety  of settlements country -wide;  
 every kind of telecommunication s service including voice, data and video -call via 
satellite to answer the need for blood of the Red Crescent and to provide relief work and 
the supply of communicati on in case of natural disasters;  
 services to set up and operate infrastructure providing communication services for the 
settlements with a population under 500 and l ocated in a high -cost area which do not 
have GSM infrastructure ; 
 defrayal of internet access and usage fees in dormitories of the General Directorate of 
Credit and Dormitories Agency in order to contribute to the building of an information 
society and to e nhance access of information facilities by expanding internet usage,;  
 purchasing telecommunications devices for communication needs and improving 
standards of living of disabled citizens who can benefit from technological developments ; 
 projects for the ben efit of citizens with disabilities in equal opportunities in information 
and communication technologies, in order to eliminate obstacles to  social services, and 
take measures for solution s of the problem in this field.  
                                               
86 Turkey's Ministry for EU Affairs online information. Viewed at: 
http://www.abgs.gov.tr/files/AB_Iliskileri/AdaylikSureci/IlerlemeRaporlari/2013_tr_progress_report.pdf   
87 Law No. 5369.  
88 Ankara Barosu online information. Viewed at : 
http://www.ankarabarosu.org.tr/siteler/AnkaraBarReview/tekmakale/2008 -2/6.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.164.   The provision of "basic internet " in Article 5 of the Universal Service Law No. 5369 has 
been amended as 'internet services '. Since the mobile and fixed operators provide internet 
services at broadband speed, services under all of the universal service projects are provided as 
broadband inter net. Universal service revenues are collected by the MTMC and include:  
 1% of Türk Telekomünikasyon AŞ (Türk Telekom) and all operators' net sale proceeds 
from the previous year , except from GSM operators;  
 2% of the authorization charges collected by the I CTA; 
 10% of the total sum that GSM operators paid to the Treasury;  
 20% of the administrative penalties collected by the ICTA; and  
 20% of the ICTA's remaining amount after all expenditures are calculat ed at the end of 
the fiscal year.  
4.165.   Universal service cost s are calculated based on  the difference in net cost before and after 
the universal service obligation was imposed on an operator. Market benefits, when undertaking 
such services, are included in the calculation.89 The Ministry is responsible for implementi ng the 
universal telecommunication services, while Türk Telekom is responsible for providing such 
services and auditing the quality and standard of them.90  
4.166.   Telecom service providers can freely set tariffs, provided that they comply with the ICTA's 
regulati ons and other relevant legislation including requirements of transparency, fairness and 
non-discrimination. In 2012, the ICTA mandated that operators of mobile networks and fixed 
incumbent  were obligated to display their tariffs online. In 2013, such infor mation was introduced 
on the operators' webpages for test  purposes. The development phase of providing such 
information continues.  
4.167.   Additionally, for operators deemed to have significant market power, ICTA will determine 
the procedures for approval, monitor ing, and supervision of tariffs as well as the upper and lower 
levels of price setting.91 Since 2004, wholesale termination rates have been reduced through a 
number of regulations. In 2013, rates were set under Board Decision No. 2013/DK -ETD/201 for 
SMS ter mination at 0.43 Kr and 0.47 Kr per unit, and Board Decision No. 2013/DK -ETD/359 set 
mobile termination rates between 2.5 Kr and 2.96 Kr per minute  (Table 4.33) .92 
4.168.   The ICTA may also impose access and interconnection obligations on operators with 
significant  market power. Obligations require operators to prepare a Reference Access (RAO) 
and/or Interconnection Offer (RIO) in order to stipulate the publicity of terms, conditions, and 
charges of access for services. Operators providing access may impose an upper  wholesale tariff 
limit, which they will get in return for call termination services utilized by other operators. RAOs 
and RIOs approved by the ICTA are published on the Authority's and relevant operator's websites 
and are currently in effect for: Türk Tel ekom RIO; Türk Telekom Reference IP Level Bit -stream 
Access Offer; Türk Telekom Reference Local loop Unbundling Access Offer; Türk Telekom 
Reference xDSL Resale Offer; Türk Telekom Reference Co -location Offer; Türk Telekom Reference 
Duct Sharing and Dark F iber Offer; Türk Telekom Reference ATM, FR, Metro Ethernet Internet 
Access Offer; Türk Telekom Reference Leased Line Offer; Avea RIO; Turkcell RIO; Turkcell RAO; 
and Vodafone RIO.  
 
                                               
89 Ankara Barosu online information. Viewed at: 
http://www.ankarabarosu.org.tr/siteler/AnkaraBarReview/tekmakale/2008 -2/6.pdf ; and Turkey's Ministry for 
EU Affairs online information. Viewed at: http://www.abgs.gov.tr/tarama/tarama_files/10/SC10DET_03A -
Universal%20%20Service.pdf . 
90 Ankara Barosu online information. Viewed at: http://www.ankarabarosu.org.tr/siteler/AnkaraBar 
Review/tekmakale/2008 -2/6.pdf  and Türk Telekom annual report 2014.  
91 Law No. 5809 of 2008.  
92 Turkey's Ministry for EU Affairs online information. Viewed at: http://www.abgs.gov.tr/files/AB_ 
Iliskileri/AdaylikSureci/IlerlemeRaporlari/2013_tr_progress_report.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 4.33 Interconnection t ariffs of fixed incumbent operator and mobile network 
operators in net values excluding taxes  
Type  Rates by operator or location  
 Avea  Turkcell  Vodafone  
Rates for call termination on 2G (GSM) networks (Kr/min)  2.96 2.50 2.58 
Rates for call termination o n 3G (GSM) networks (Kr/min)     
- Voice callsa 2.96 2.50 2.58 
- Video callsb 7.75 7.75 7.75 
Rates for SMS termination on 2G (GSM) and 3G networks 
(Kr/unit)c 0.47 0.43 0.43 
 Local  In zone  Out zone  
Rates for call origination/termination on Türk Telekomü nikasyon 
AŞ's network (Kr/min)  1.39 1.71 2.24 
a Board Decision dated 17  June 2013 and numbered 2013/DK -ETD/359 . 
b Board Decision dated 10  February 2010 and numbered 2010/DK -07/88 . 
c Board Decision dated 12  April 2013 and numbered 2013/DK -ETD/201 . 
Source:  ICTA online information. Viewed at: http://eng.btk.gov.tr/elektronik_haberlesme_sektoru/tarifeler_ 
ve_erisim/arabaglanti_ucretleri/index.php.  
4.169.   Additionally, all operators authorized to establish fixed electronic communication 
infrastructure are obliged unde r Board Decision No. 2013/DK -ETD/187  of 2013  to share such 
infrastructure among themselves. The latest document about service provision requirements on 
the duct sharing issue is approved by ICTA with Board Decision No. 2015/DK -ETD/359 . 
4.170.   The 2009 By-Law o n Access and Interconnection No. 27343  stipulates the procedures for 
interconnection and access to electronic communications networks. For such access agreements to 
come into effect, both parties must agree. I f no agreement is found between the parties after two 
months of an access request being submitted, either operator may request the ICTA to initiate 
dispute settleme nt proceedings. If the request  is granted by the ICTA, the dispute resolution 
process will commence through a number of meeting s. If the dispu te is not settled within two 
months of initiation the ICTA is mandated to determine terms, conditions , and prices of an access 
agreement , however it is restricted to the disputed areas. The Elect ronic Communications Law and 
By-Law No. 27343 grant the ICTA responsibility for dispute resolution, excluding court decisions.93 
Within the framework of dispute resolution procedures carried out by the Authority, the settlement 
applications of operators' interconnection disputes have been evaluated and 170 cases have  been 
concluded since 2004, in which the provisions, conditions, and charges have been determined 
regarding the disputed matters . Since 2011, there have been 27 cases.  
4.171.   The ICTA is further mandated , under the Electronic Communication s Law, to impose fines 
on telecommunication companies breaching legislation, the terms of their authorization 
agreement , or their usage of rights agreement. In 2007 , the law  on Publication on the Internet 
and the Suppression of Crimes Committed by Means of S uch Publication came i nto force as 
Turkey's first internet specific law .94 The law provides a legal framework for determining liability 
and responsibility of the main internet service providers including collective use providers, access 
providers, location providers , and content  providers of collective service providers. Additionally , it 
determines procedures for specific internet crimes committed and imposes limitations on access to 
certain internet sites.  Internet users can report illegal content via a hotline established under  the 
Telecommunications Presidency . Thus,  service providers are, on request, required to remove 
internet content .95 Internet regulations are being implemented by the Internet Department of the 
Telecommunications Presidency , which is directly connected to th e president of the ICTA. 
                                               
93 ICTA online in formation . Viewed at: 
http://eng.btk.gov.tr/elektronik_haberlesme_sektoru/tarifeler_ve_erisim/uzlastirma/index.php . 
94 Law No. 5651 . 
95 Presidency of  Telecommunication and Communication  online information. Viewed at:  
http://www.tib.gov.tr/en/ ; Stanford Law School online information. Viewed at: 
http://cyberlaw.stanford.edu/blog/2014/02/turkey -enlists -intermediaries -censor -and-surveil -internet -users ; 
and Yilmaz & Ciner Law Firm online information. Viewed at: http://www.yclaw.org/a -brief-guide -to-turkish -
telecommunication -and-internet -law/. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.172.   In February 2014 the law was amended  to broaden the scope of illegal internet content 
and regulate  the protection of national security and public order , thus considered an exception 
within Article 10 of European Convention on Human  Rights and Article 22 of Turkish Constitution 
relating to freedom of communication.  Pursuant to the law, internet content considered breaching 
people's private life is deemed illegal and internet providers are required to block such sites within 
four hour s of notification. The access -blocking and/or content -removing decisions shall be realize d 
by a judge or Telecommunications Presidency upon order of the Prime Ministry or relevant 
Ministries where delay is prejudicial. Prejudicial decisions shall be submit ted to penal courts with 
judge 's approval within 24 hours.  
4.173.   Fines due to non -compliance with these requirements have increased and may include a 
revocation of authorization or imprisonment, depending on the severity of the violation.  With the 
amendment of t he internet law, prison sentences turned into fines. Telecommunications 
Presidency may impose administrative fines to service providers due to non -compliance with their 
liabilities under the internet law. From 2007, there have been only 10 administrative f ines imposed 
on service providers. Monetary fines vary dependent upon the scope and recurrence of offenses.  
Within the scope of the law, orders have been issued to internet service providers during the 
review period although precise figures are not availab le. 
4.174.   The Access Providers Union was further established pursuant to  the amendment  by the 
Government to facilitate compliance with such requirements. Operators authorized to provide 
internet  services in Turkey are required to be a member of the Union. Additi onally, the amendment 
requires hosting providers  to store users' online activity for a minimum of two years, which can 
only be made accessible by a court decision. Storage costs are borne by the internet providers.96 
4.175.   Under the Electronic Communications Law and the 2009 By -Law No. 27241 for Regulation 
on Authorization Regarding the Electronic Communications Sector, all companies providing 
telecommunications services must first obtain prior authorization by the ICTA. Turkey's 
telecommunications sector has two authorization systems: for those companies who do not require 
an allocation of resources, notification must be given to the ICTA; and for those companies 
requiring re source allocation , prior authorization and right of use must be  obtain ed from the ICTA.  
The ICTA will issue its decision within 30 days. If the number of authorizations has not been 
exceeded, including the consideration of other variables, authorization is generally granted for a 
maximum period of 25 years. Authorization would only be denied wh en the specific criteria are not 
met such as paid -in-capital criteria. Within the authorization period, telecommunication operators 
are subject to an annual A dministrative Fee equivalent to 0 .35% of its previous year's net sales , 
and a Right -of-Use fee whi ch is set by the Board of Ministers upon the recommendation  of the 
MTMC and the ICTA .97 
4.176.   As of June 2015, there were 672 operators providing services in the market holding 
1,105  authorizations. Of these, there were 411 internet service provider authorization s and 
204 fixed telephone service authorizations.98 
4.177.   TTNet, a subsidiary of Türk Telekom, holds a 53.2% market share in fixed phone services 
and 74.3% of the fixed broadband internet market as of 2015. Fixed broadband accounted for 
approximately 20.5% of the  broadband market by number of subscribers. Türk Telekom's total 
market share of the fixed telecommunications market, based on revenues, has increased during 
the review period to 85% compared to 59% in 2012.99  
4.178.   Türk Telekom was established in 1995 as part o f the reforms to split the post, telegraph, 
and telephone monopoly into separate entities. The company was privatized in 2005 and the 
shareholders presently are:  Oger Telekomünikasyon A.Ş  (55%); the Turkish state t reasury  (30%); 
                                               
96 Stanford Law School online information. Viewed at: 
http://cyberlaw.stanford.edu/blog/2014/02/turkey -enlists -intermediaries -censor -and-surveil -internet -users ; 
and Yilmaz & Ciner Law Firm online information. Viewed at: http://www.yclaw.org/a -brief-guide -to-turkish -
telecommunication -and-internet -law/. 
97 ICTA online information and the 2009 Bylaw No. 27241 for Regulation on Authorization Regarding the 
Electronic Communications Sector.  
98 ICTA o nline information. Viewed at: 
http://www.btk.gov.tr/File/?path=ROOT%2f1%2fDocuments%2fPages%2fMarket_Data%2f2014 -Q3-En.pdf  
and information provided  by the authorities.  
99 ICTA, Electronic Communication Market in Turkey – Market data 2014 Q3 and Market data 2012, Q4 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  and the remaining 15% of th e shares are  publicly traded.  In January 2013, the Government 
announced plans to further privatize the company by selling 6.7% of Türk Telekom's total shares 
currently owned by the treasury.100 
4.179.   Mobile telephony has increasingly made inroads over fixed -line telephony, and currently 
accounts for more than 94 % of the total traffic . Pre-paid mobile subscriptions dominate the mobile 
market accounting for 53.4% of this sector. There are three mobile service operators in Turkey: 
Turkcell holds the largest market sha re, accounting for 47.1% of mobile subscribers, followed by 
Vodafone (29.7%), and Avea (23.2%).101 
4.180.   Whilst Turkcell and Vodafone own the majority of their shares, 90% of Avea shares are 
owned by Türk Telekom. The three mobile service operators respectively ge nerated , in terms of 
average revenue per user,  TL 23.6 for Turkcell, TL 23.6 for Vodafone , and TL 22. 7 for Avea  as of 
June 2015 . Voice services accounted for the largest proportion of revenues , equivalent to 61.3% in 
2014, followed by data (25%), SMS/MMS s ervices (9.7%), and value -added services (4%) as of 
June 2015.102 
4.181.   There are  98 mobile virtual network operator service (MVNO) authorizations in Turkey as 
of June 2015, of which 35 are "use of right" authorizations. To actively start a MVNO service, 
MVNO oper ators should sign an agreement with the hosting MNOs. So far, none of those MVNOs 
started MVNO services actively, therefore no subscribers are recorded . Virgin Mobile entered the 
Turkish mobile market in 2015 as a MVNO after two years of negotiations.103 According t o the 
latest amendments in Law N o. 406, MVNOs are mandated to pay Treasury Share (15% of gross 
sales resulted from MVNO authorization) every month. In addition , MVNOs pay administration fee s 
of 0.0035% of net sales , yearly. They also  need to pay the Special Communication Tax which is 
25% for voice services and 5% for data/internet services . 
4.182.   Turkey's Vision 2023 was initiated in 2003 and is composed of four sub -projects focusing 
mainly on technology and information systems. For ICT, including  the tel ecommunication sector , 
the Vision aims to reach 30 million broadband subscribers; provi de internet connection for 
14 million households reaching a speed of 1,000 Mbps; increas e the ICT's share of GDP to 8%; 
reach a computer literate rate of 80%;  become  one of the top ten countries in e -transformation; 
increase the number of companies to 5,500  and employees to 65,000 ; and increase  the sector's 
size and market growth year on year.104 In 2013, the Vision was updated for ICT including the 
telecommunications secto r. The  revised  Vision aims to reach 60 million broadband subscribers; 
increas e the ICT 's share of GDP to 10%; reach a broadband internet usage  rate of 80% ; and 
provid e broadband access via next generation networks for every household and business. The 
numb er of broadband subscriptions has already reached 41.2 million. The ICT 's share of GDP in 
2014 is almost equal to 4% .105 The ratio of the population using internet is 55.9 % as of 
April 2015.106 
                                               
100 Bloomberg Business, 23 January 2013: Turk Telekom Stake to Be Sold in Secondary Offering This 
Year. Viewed at: http://www.bloomberg.com/news/articles/2013 -01-23/turk -telekom -stake -to-be-sold-in-
secondary -offering -this-year; and Türk Telekom online information. V iewed at: 
http://www.ttinvestorrelations.com/turk -telekom -group/group -companies/ . 
101 ICTA online information. Viewed at: http://www.btk.gov.tr/File/?path=ROOT%2f1%2fDocuments%2f 
Pages%2fMarket_Data%2f2014 -Q3-En.pdf ; and information provided by the authorities.  
102 ICTA online information. Viewed at: 
http://www.btk.gov.tr/File/?path=ROOT%2f1%2fDocuments%2fPages%2fMarket_Data%2f2014 -Q3-En.pdf ; 
and information provided by Turkish authorities.  
103 Telecomlead, 17 Sep tember 2014, Virgin Mobile to launch telecom services in Turkey . Viewed at: 
http://www.telecomlead.com/telecom -services/virgin -mobile -launch -telecom-services -turkey -53039 ; and 
ICTA, Electronic Communication Market in Turkey – Market data 2014 Q3.  
104 Republic of Turkey Prime Ministry Investment Support and Promotion Agency online 
information.Viewed at: http://www.invest.gov.tr/en -US/sectors/Pages/ICT.aspx ; and http://www.turkey -
japan.com/business/category1/category1_70.pdf ; and the Science and Technologi cal Research Council of 
Turkey online information. Viewed at: http://www.tubitak.gov.tr/en/about -us/policies/content -vision -2023. 
105 Data based on calculation are obtained fr om TÜBİSAD and Turkstat. Turkstat online information. 
Viewed at: http://www.tuik.gov.tr/UstMenu.do?metod=temelist ; and Informatic Industry Association 
(TÜBİSAD) online information. Viewed at:  http://www.tubisad.org.tr/Tr/Library/Sayfalar/Reports.aspx . 
106 Turkstat publication, " Use of Information and Communication Technology (ICT) in Enterprises, Use of 
Information and Communication Technology (ICT) in Households and Individuals (16 -74)". WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.3.4   Tourism  
4.3.4.1   Overview  
4.183.   Turkey's tourism industry has achieved significa nt growth since 2004 as a result of 
incentives, regulations to encourage growth, and projects to attract foreign tourists. The growth of 
Turkey's tourism sector has outpaced global tourism growth and contributed TL 34.3 billion to the 
GDP of Turkey, or aro und 4.3% of GDP as of 2014.107 Turkey had a higher contribution of tourism 
to GDP compared to that of Europe. In 2014 Turkey ranked 6th in the world in terms of 
international tourist arrivals and 12th in terms of tourism receipts.108 By 2023, Turkey is targeti ng 
US$50 billion of revenue  and 50 million tourists  for the sector.  
4.184.   Turkey's laws and regulations have remained relatively unchanged during the review 
period except for the introduction of the law regulating tour operators. Turkey continues to 
increase inc entives, both the amount and programmes available, to encourage the growth of the 
industry.  
4.3.4.2   Tourism by the numbers  
4.185.    Turkey's tourism industry has achieved substantial growth during the period, as increased 
tourism receipts continued to climb, along with th e number of visitors. Turkey has invested in its 
infrastructure as the number of facilities and beds grew by 17 and 19%, respectively, over the 
period, while at the same time the occupancy rate remained relatively steady. All categories of 
tourism exhibite d growth over the period but domestic tourism growth outpaced that of foreign 
visitors (Table 4.34).  
Table 4.34 Main tourism indicators , 2011 -14 
 2011  2012  2013  2014  
Tourism receipts (US$1,000,000)  28,116  29,351 32,309  34,306  
Tourism receipts as a % of GDP  3.6 3.7 3.9 4.3 
Tourism receipts as a % of export earnings  20.8 19.2 21.3 21.8 
Number of visitors  36,151,328  36,463,921  39,226,226  41,415,000  
Average expenditures (US$)  778 795 824 828 
Domestic tourism:  
 Tourism receipts (US$1,000,000)  5,531  4,593  5,253  5,470  
 Number of citizens  6,281,972  5,802,950  7,525,869  7,982,264  
Turkish citizens visiting abroad  6,751,006  6,273,993  8,011,654   8,363,966  
Number of travel agents  6,399  6,912  7,283  7,950  
Number of f acilities:      
 Tourism operation licenced facilities  2,783  2,870  2,982  3,131  
 Tourism investment licenced facilities  922 960 1,056  1,117  
Number of beds:  
 Tourism operation licenced facilities  668,829  706,019  749,299  807,316  
 Tourism investment licenc ed facilities  267,900  273,877  301,862  309,556  
Occupancy rate (%)  51.5 54.3 52.6 51.8 
Yacht management certificates:  
 Local 308 479 478 484 
 Foreign  23 24 26 27 
Number of yachts operated:      
 Local 992 1,246  1,529  1,537  
 Foreign  742 829 871 832 
Source: TURSAB online information . Viewed at : http://www.tursab.org.tr/ ; Turkstat online information . 
Viewed at : www.turkstat.gov.tr/ ; and information provided by the author ities. 
4.186.   Yacht Management Certificates are issued in accordance with the Regulation on Yacht 
Tourism. In order to be established as a yacht management company, applicants need to have 
yachts with at least a 30-bed capacity. The yachts may be registered in Turkey, or in the case of 
foreign flags, yachts can be leased and the applicants should register to get a licence from the 
Ministry of Culture and Tourism. This registry is an exception to the Maritime Transport legislation.  
                                               
107 Turkstat online information. Viewed at: http://www.tuik.gov.tr/PreIstatistikTablo.do?istab_id=2217 . 
108 UNWTO online information. Viewed at: http://www.e -unwto.org/doi/pdf/10.18111/9789284416226 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  The pro cedure applying to operate  yachts of foreign flags is different but it applies to Turkish and 
foreign investors in the same way.  
4.3.4.3   Framework  
4.187.   Turkey's Ministry of Culture and Tourism is the main body at the national level responsible 
for tourism and tourism policy.109 In addition to the  main office in Ankara, the Ministry maintains 
81 Provincial Culture and Tourism Directorates. There are no other tourism bodies at the provincial 
or local level. The Ministry also has attachés that it posts abroad in approximately 32 countries to 
promote tourism.  
4.188.   The Ministry of Culture and Tourism is responsible for all national tourism activities, which 
comprise mainly policy planning; public land allocation; certification and control of tourism 
establishments; and promotion and marketing activities. The re are also city tourism councils 
promoting particular regions.  
4.189.   In addition to government involvement, the private sector has a number of associations or 
NGOs that support or are directly involved in industry activities. The Association of Turkish Travel 
Agencies, Union of Chambers and Commodity Exchanges of Turkey (TOBB), Union of Tourist 
Guides' Chambers, Federation of Turkish Hoteliers, Tourism Investors Association, and chambers 
of commerce all have a role in supporting and promoting the Turkish tourism  industry. The private 
sector organizations consult informally with the Ministry on tourism policy; there is no formal 
structure.  
4.3.4.4   Policy and strategy  
4.190.   Similar to other ministries, the Ministry of Culture and Tourism has established a Tourism 
Strategy of Tur key – 2023 as instigated by the 10th Development Plan to map out a master plan 
for the sector and ensure stable and healthy development.110 Turkey's tourism strategy is aligned 
with that of the EU, which provides for a sustainable and competitive tourist sec tor. Turkey aims to 
better leverage the natural, cultural, historical, and geographical assets of the country in order to 
increase tourism.  
4.191.   Turkey's vision for the tourism industry is: "With the adoption of the sustainable tourism 
approach, the tourism and  travel industry will be brought to a leading position for leveraging rates 
of employment and regional development, and it will be ensured that Turkey becomes a world 
brand in tourism and a major destination in the list of the top five countries receiving the highest 
number of tourists and the highest tourism revenues by 2023." The Tourism strategy proposes 
22 specific actions to achieve the vision, including: strengthening international cooperation; 
diversifying tourism products; making domestic and intern ational marketing and promotion 
activities effective, etc. Furthermore, it lays out 16 sub -strategies to achieve the overall strategy 
goals (Table 4.35).  
Table 4.35 Overview of Turkey's tourism strategy  
Subsec tor Strategy  
Planning  To exhibit a planning approach that supports economic growth, is physically applicable 
and socially oriented and fairly reflects the principle of sustainable tourism  
Investment  To boost tourism investments by designing incentive sc hemes that would make tourism 
investment projects economically feasible and viable  
Organization  To achieve institutionalization through councils to be established at national, regional, 
provincial and local levels within the context of 'Good Governance', to ensure full and 
active participation of tourism sector as well as all related public and private entities and 
NGOs in relevant decision -making processes  
Domestic travel  To provide alternative tourism products based on acceptable quality and affordable 
prices to various groups in the society.  
Research and 
development  To ensure top prioritization of R&D efforts in tourism industry among public and private 
sector and tourism organizations  
Transportation and 
infrastructure  Eliminating transportation and i nfrastructure problems of dense and fast -growing 
tourism centres  
                                               
109 Law for the Foundation of the Ministry of Culture and Tourism, Law No.  4848.   
110 Turkey's 9th Development Plan. Turkey's tourism strategy, Official Gazette  No. 26450 of 
3 Febru ary 2007.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Subsec tor Strategy  
Marketing and 
promotion  To commence with marketing and promotion activities at each destination, in addition to 
the national marketing and promotion campaigns with the ultimate objective of branding 
on a national, regional and local scale  
Education  To set up and introduce an education program me in tourism, which would yield 
measurable outcomes  
Service quality  To activate 'Total Quality Management' in every constituent of the travel industry  
City branding  Manage branding of cities rich in cultural and natural heritage  
Tourism 
diversification  To develop means for alternative tourism types led particularly by health, thermal, 
winter, golf, sea tourism, ecotourism and plateau tourism, confere nce and expo tourism 
activities  
Host rehabilitation 
efforts for tourism 
areas  To make arrangements for handling and strengthening the infrastructure of areas where 
mass tourism activities grow intense and for extending tourism season throughout the 
entire year in these regions  
Tourism 
development zones  To use tourism as a key tool for local and regional development in tourism development 
areas encompassing more than one cities to be transformed into destinations  
Tourism 
development 
corridors  To develop a certain route for tourism on definite themes, by rehabilitating historical and 
natural texture  
Tourism cities  To plan tourism settlements capable of competing the world examples by becoming a 
global brand  
Ecotourism zones  To develop nature tourism with  reference to development plans  
Source:  Turkey 's tourism strategy, Official Gazette  No. 26450 of 3 February 2007.  
4.3.4.5   Types of tourism  
4.192.   Turkey benefits from its geographical location, climate, and historical assets by being able 
to offer a diverse number of to urist attractions such as geothermal resources, mountains, seas, 
historical heritage, cultural treasures, natural wonders, and folklore. T urkey has long established  
itself as a mainstream destination for many European tourists  due to  its close proximity an d rich 
culture  and history . 
4.193.   Turkey offers a variety of tourism types including conference and expo, cruise ship and 
yacht, adventure trips, etc. According to Turkish statistics, most foreign tourists come for travel, 
entertainment, sports, or cultural acti vities (57.7%), followed by accompanying persons (15.4%), 
and visiting relatives and friends (14%). On the other hand, domestic tourism has a different focus 
as 66% of persons visit relatives, followed by travel, leisure and vacation (19%) (Chart  4.4). 
Chart 4.4 Domestic visitors and incoming tourists by purpose of visit, 2014  
Travel, 
entertainment, 
sportive or 
cultural 
activities
57.7%Accompanying 
persons
15.4%Visiting relatives 
and friends
14%Business
5.6%Shopping
2.6%Other
4.3%
Visiting 
relatives 
66%Travel, 
leisure, 
vacation
19%Health
8%Other
7%Chart 4.[Turkey]
Tourism: Domestic visitors and incoming tourists by purpose of visit, 2014
Incoming tourists
(Total: 41.4 m)
Non-resident tourists include foreigners and citizen living abroad.   Based on the number of departing visitors. Domestic visitors
(Total:  70.9 m)
Source:   Turkish Statistical Institute.  Viewed at: http://www.turkstat.gov.tr/Start.do.a b
a
Based on the number of trips. b
 
a Non-resident tourists include foreigners and citizens living abroad. Based on the number of departing 
visitors.  
b Based on the numbe r of trips.  
Source:  Turkstat  online information . Viewed at: http://www.turkstat.gov.tr/Start.do . 
4.194.   Pursuant to Turkey's Tourism Diversification Sub -strategy, it is promoting and giving 
priority to a number  of alternative types of tourism to e xpand the tourist season and achieve a WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  better utilization of tourist infrastructure. Health and thermal, winter, golf, sea, ecotourism, 
congress and expo tourism have been targeted.  
4.3.4.6   Legal and regulatory framework  
4.195.   Turkey 's main tourism law, the Law for the Encouragement of Tourism, dates  from 1982 
and has not undergone amendments during the review period.111 The law aims to provide the 
necessary measures for the regulation and development of the sector including giving the sector a 
dynamic structure and mode of operation. It provides for the preservation and utilization of natural 
tourism resources, incentives, a tourism development fund, yacht operations, regulations, etc. The 
law also has related regulations th at are amend ed more frequently.  Other important tourism 
legislation include:  
 Legislation on Licensing and Qualification of Tourism Establishments, which aims to regulate 
the types of establishments licen ces are given to, minimum requirements for 
establishments, and a pplication and approval procedures regarding licences;  
 Legislation on Public Land Allocation to Tourism Investments, which aims to regulate 
principles for the allocation of public land to tourism investments, application requirements, 
and procedures to be applied;  
 Legislation on Tourism Establishments ' Relations with the Ministry, Customers and among 
Themselves, which aims to regulate legal relations and rights and responsibilities of tourism 
establishments; and  
 Legislation on Maritime Tourism, which aims t o regulate yacht ports, their minimum 
requirements, and yacht management.  
4.196.   The Law of Travel Agencies and Union of Travel Agencies also forms part of the tourism 
legal framework.112 In section one, as concerns travel agencies, the law proscribes procedures an d 
provisions for the establishment of travel agencies, trade name of the enterprise, branch offices, 
operation and obligations of the agencies, permissions, grouping, operation certificates, 
qualifications of the travel agency owner, manager in charge, tra vel agency personnel, security to 
be received from the travel agencies, credit and other facilities provided, inspection and 
supervision, and cancellation and penalties. Section two on the association of travel agencies 
provides for its purpose and establi shment, duties, bodies, revenue, General Assembly, Executive 
Board, Disciplinary Council and the Inspection Council, election, and establishment of the bodies 
and their duties. The law was amended by a 2006 omnibus law in which the discriminatory 
legislati on against foreign travel agencies was abolished.113 
4.197.   The law requires that travel agency services be provided by travel agencies established 
and licensed in Turkey. The Ministry of Culture and Tourism licenses each agency. According to the 
authorities, once the criteria are met, a licence is issued. In 2014, 955 travel agency licences have 
been issued; there is no data on a refusal percentage . Furthermore, each travel agent is required 
to register and become a member of the Association of Turkish Travel Agenc ies (TURSAB).  
4.198.   Furthermore, there are two related regulations pertaining to the travel agencies law. The 
regulation pertaining to travel agencies further defines and puts into operation the provisions of 
the law. In particular, it expands upon the scope of travel agency services; qualifications of the 
owners; services and groups of travel agencies; establishment, characteristics, and inspection of 
travel agencies; qualifications of the travel agency services; consumer rights; and examinations 
for information  officers.114 The regulation pertaining to the association of travel agencies expands 
upon the purpose and the establishment, duties of the association, meetings, elections, bodies of 
the association, General Assembly, Executive Board, Inspection Council, Di sciplinary Council, and 
revenue of the association.115  
                                               
111 Law No. 2634 of 12 March 1982, Official Gazette No. 17635 of 16 March 1982.  
112 Law No. 1618 of 14 September 1972, Official Gazette  No. 14320 of 28 September 1972.  
113 Law No. 5571.  
114 Official Gazette  No. 22747 of 4 September 1996.  
115 Official Gazet te No. 22747  4 September 1996 . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.199.   One of Turkey's more recent legislative developments was the passage of the Tourist 
Guide Professions Act in 2012.116 This law provides rules, regulations, and enforcement procedures 
related to the touris t guide profession. The law prescribes that tourist guides be citizens of Turkey, 
pass a foreign language exam and receive a proficiency certificate, complete education as an 
associate in the tourist guide profession after receiving a graduate or undergrad uate degree, and 
become a member of a tourist guide chamber organization. Provisions in the law for tourist guide 
fees require that tourist guides follow the fee schedule determined annually by the Ministry of 
Culture and Tourism. Minimum fees or salaries are established for overnight tours, day tours, 
transfer, and package tours. The law also has provisions on disciplinary actions and investigation 
procedures, job protection, and professional organizations.  
4.200.   The related regulation to the Tourist Guide Profe ssions Act was issued in 2014 and further 
expands upon the provisions in the law, in particular the tour guide certificate program me, 
examination, enforcement, tour guide chambers, control of tour guide services, disciplinary board, 
and professional organi zations.117 
4.201.   Turkey has laws on the related areas of conserving natural and cultural heritage, national 
parks, theatres, etc. The Law for the Preservation of Cultural and Natural Assets, the Law for 
Renovation and Restitution of Deteriorated Historical and Cu ltural Immovables, and the Law for 
the Approval of European Declaration on Protection of Archaeological Heritage are important for 
preserving Turkey 's heritage and promoting this subsector of the tourism industry.118 
4.202.   In addition to laws and regulations, Turk ey has negotiated bilateral agreements or MOUs 
with a number of countries. Turkey has 65 tourism cooperation agreements and 16 tourism 
MOUs.119 
4.3.4.7   Licensing and classification  
4.203.   The Ministry of Culture and Tourism licen ses tourism activities, including  travel age nts, 
sport facilities for tourism purposes, accommodation facilities and restaurants and some other 
types of tourism establishments. The establishment types licensed by the Ministry include: hotels, 
motels, holiday villages, guest houses, camping, aparthot els, hostels, restaurants, cafeterias, 
thermal establishments, wellness facilities, swimming pools, sports establishments, golf facilities, 
congress and exhibition centres, recreational facilities, theme parks, daily facilities, winter sports 
and ski centr es, mechanical facilities, farm houses, village houses, spring houses, mountain 
houses, special class establishments, boutique hotels, tourism cities, tourism complexes, holiday 
centres, personnel training facilities, stopover facilities, holiday resorts a nd villas. It is obligatory 
for travel agents and sport activities for tourism purposes to have a licen ce from the Ministry to 
operate.  
4.204.   Other tourism establishments do not have to have a licen ce to operate, except those that 
are on public lands allocated by the Ministry of Culture and Tourism or the Ministry of Forestry and 
Water Affairs in accordance with the related regulations. If these facilities fail to obtain a licen ce 
from the Ministry, the publi c land allocation is cancelled.  
4.205.   If establishments are not licensed by the Ministry, they cannot use "star" symbols in their 
promotional and marketing activities and benefit from the incentives provided by the Tourism 
Incentive Law No. 2634. There are two types of tourism licen ces: Tourism Investment Certifica te, 
i.e. a certificate issued by the Ministry to investors in the tourism sector for a specific investment 
period;  and Tourism  Establishment Certifıcate, i.e. a certifıcate issued by the Ministry of Culture 
and Tourism to establishments operating in the tourism sector. Tourism Investment Certificates 
are issued for the investment period and then must be turned into Tourism Establishment 
Certifi cates after the investment has been completed and the facilities are operational.  
4.206.   The Ministry also has a classification scheme for hotels and restaurants. Turkey is one of 
the few countries that use s an official classification scheme implemented by govern mental bodies. 
                                               
116 Law No. 6326 of 6 July 2012.  
117 Official Gazette  No. 29217 of 26 December 2014.  
118 Law No. 2863, Law No. 5366, Law No. 4434 of 8 May 1999, and Law No. 2873 of 9 August 1983.  
119 Ministry of Culture and Tourism online informatio n. Viewed at: http://teftis.kulturturizm.gov.tr/ 
TR,14104/kultur -ve-turizm -anlasmalari -dizini.html . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Turkey has a 5 -star classification scheme for hotels and holiday villag es. For each star category, 
certain point levels are set. For other types of establishments, classification forms are used to 
measure the quality of services provided by the establishments. Each establishment must earn a 
certain number of points to keep its licen ce. Classification commissions consist of three members , 
two from the Ministry and one from the local hoteliers association . Classification is obligatory for all 
licensed establishments. Restaurants also have a classification scheme of four levels: 1st class, 2nd 
class, 3rd class, a nd cafeterias.  
4.3.4.8   Incentives  
4.207.   Turkey provides a number of incentives to industry ( sections 2.4.4 , 3.3.1.3, and 3.3.2), 
but there are also sp ecific programmes designed to benefit the tourism sector. Turkey's main 
investment incentive schemes ( section  2.4.4.1), i.e. general, regional, priority, and strategic , all 
provide incentives for the tourism sector, as well as the program mes for SMEs ( section 3.3.1.3). 
Specific tourism incentive program mes include the Law for the Encouragement of Tourism, Cultural 
Investments Incentive Law, Law on the Protection of Cultural Values and Natural Resources, and 
the Translation and Publication Grant Programme of  Turkey. Funds provided from the Treasury as 
tourism investment incentives amounted to TL 5.4 billion in 2014, or 0.3% of GDP. The number of 
projects supported increased during the period 2011 -14 and the total amount of investment s 
supported grew significa ntly, increasing by over 60 % (Table 4. 36). 
Table 4.36 Tourism investment incentives from the Turkish treasury, 2011 -14 
 2011  2012  2013  2014  
Number of projects  297 342 481 452 
Total investment (TL million)  3,505 4,457  6,180  6,720  
Employment  15,996  18,095  23,734  23,070  
Source:  Turkish Tourism Investors Association online information. Viewed at: 
http://ttyd.org.tr/sayfa/Tesvikli -Yatirimlar -49/28 ; and Ministry of Economy.  
4.208.   According to the Property Tax Law120, within the scope of the Incentive Law of Tourism 
Industry, income tax or corporat e taxpayers benefit from  a temporary property tax exemption for 
the buildings used for the purposes mentioned i n the law for five years if they have  a tourism 
establishment certificate. Turkey's Eximbank provides credits for tourism activities, and there is 
support for international tourism fair participation. Travel agents  can receive 50% of the 
participation cost s in fairs reimbursed by the Ministry.  
4.209.   Turkey's Cultural Investments Incentive Law provides certain supports to encourage 
cultural investments and protect cultural heritage.121 The law allows for employment, energy, and 
immovable property allocation support.  Employment support is with respect to a 25% or 50% 
reduction of income withholding tax on employee salaries and 25% or 50% reduction of the 
employer's social security premium contribution. During the first three years, the reduction is 
50%, 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 the investors for a fixed period of time. 
The amount of energy support vari ed considerably over the period  (Table 4. 37). 
Table 4.37 Energy support , 2011 -15 
 2011  2012  2013  2014  2015a 
Number of establishments  8 9 7 7 5 
Amount (TL)  107,863  236,598  17,562  62,657  41,926  
a January -June 2015 . 
Source:  Information provided by the authorities.  
4.210.   The Law on the Protection of Cultural Values and Natural Resources provides corporate 
income tax deductions for companies involved in the protection, developm ent, or maintenance of 
                                               
120 Law No.  1319, Article 5. 
121 Law No. 5225.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Turkish cultural values.122 For restoration, restitution, or building surveying projects, the law also 
provides an exemption from VAT.  
4.211.   The Translation and Publication Grant Programme of Turkey (TEDA) is a subvention project 
for the pub lication of Turkish cultural, artistic and literary works in foreign languages.  TEDA 
provides grants to publishers in order to promote Turkish culture, arts, and literature in intellectual 
circles abroad.123 
4.3.4.9   GATS commitments  
4.212.   Turkey's GATS commitments on tour ism services comprise the provisions on travel 
agencies and tour operator services, and hotels and restaurants. Both categories have certain 
limitations on market access or national treatment that were inscribed in the schedule since 1995. 
Turkey's WTO sch edule does not include tourist guide services, which remains unbound.  
4.213.   For travel agencies and tour operator services, Turkey had indicated that limitations 
existed on market access so that establishment was required. Further, limitations on national 
treatment provided that foreign travel agencies may not organise tours abroad, and foreign travel 
agencies faced discrimination compared to domestic travel agencies with respect to foreign 
exchange income, travel agency guarantees, credits from the Turkish Deve lopment Bank, and 
minimum amount of capital by branches of foreign operators.  
4.214.   Since these limitations were inscribed in the schedules, Turkey has eliminated the 
discrimination against foreign travel agencies by equalizing the amounts required for guarantee s 
for both domestic and foreign operators and abolishing the requirement for foreign exchange. The 
provision on the amount of capital to be brought by branches of foreign travel agencies has also 
been removed. The market access mode 1 requirement for estab lishment and licensing in Turkey 
remains in place. Thus, the limitations on national treatment no longer exist and the applied 
regime is more liberal today than what was bound in the WTO schedule.  
4.215.   As regards hotels and restaurants, the WTO schedule has two  limitations on market 
access. With respect to mode 2, a footnote provides that for Turkish citizens travelling abroad, 
they are subject to, with exceptions, payment of a fee to the Public Housing Fund. According to 
Law No. 5597 on the Duty of Travelling A broad, Turkish citizens are still required to pay this fee 
when travelling abroad; the fee is currently set at 15 TL.  
4.216.   The WTO schedule contains provisions on mode 4 that allow hotels and restaurants with 
the tourism encouragement certificate and permission  from the Ministries of Tourism and Interior 
to employ foreign workers. But the proportion of foreign workers is capped at 10%, or 
exceptionally raised to 20%. Pursuant to Law No. 2634 For the Encouragement of Tourism, this 
provision remains, thus the limi tation is still valid  with respect to foreign -worker restrictions.  In the 
area of hotels and resta urants, the applied regime is equivalent to the WTO bound regime.  
4.3.5   Distribution  
4.217.   Distribution services are important to the Turkish economy with wholesale and r etail trade 
contributing 12% to GDP in 2014 and growing by an average of 15% in nominal terms and 4% in 
real terms in the 2010 -14 period. Retail sales volume growth was highest in 2011 at 8.3% but 
slowed in subsequent years, reaching 1.3% in 2014; neverthe less, total  retail sales recorded 
US$282 billion the same year .124 Turkey is considered the 7th largest retail market in Europe125 and 
in 2015 was ranked 11th according to the Global Retail Development Index (GRDI) with a market 
                                               
122 Law No. 28 63. 
123 Online information. Viewed at: http://www.tedaproject.gov.tr/?_dil=2 . 
124 Turkish Statistical Institute, online information. Viewed at: http://www.turkstat.gov.tr/UstMenu.do 
?metod=temelist . 
125 USDA Foreign Agricultural Service (2015), Turkey Retail Foods , GAIN Report Number TR5036, 
15 July. WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  attractiveness of 83%.126 Turkey has not undertaken any GATS commitments in distribution 
services.  
4.218.   Foreign distributors are present but the supermarket segment is largely dominated by local 
shops, called bakkal s (small shops of less than 50m2). Increasing urbanization, changing lifestyles , 
increasing incomes, and other factors suggest that the retail sector will continue to consolidate.127 
However, retail challenges in supply chain and tough competition with less organized small 
retailers remain.  
4.219.   The Ministry of Customs and Trade is the main  authority responsible for regulating the 
wholesale and retail sector, although many other agencies are also responsible for regulating 
various activities and products in the wholesale and retail sector, particularly the Turkish 
Competition Authority128 (section 3.3.3).  
4.3.5.1   Regulatory framework  
4.220.   Turkey's wholesale and retail sectors are regulated by several laws, mainly the new Law on 
Regulation of Retail Trade129, the E -Commerce Law130, the Commercial Code ( section 3.3.1.1) and 
the Law on the Protection of Competitio n131 which  applies to the wholesale and retail sector in the 
same way as it does to other sectors  (section 3.3.3.2).  
4.221.   In January 2015, the Government enacted the Law on Regulation of Retail Trade  (Retail 
Trade Law),  which applies  to large shops, chain stores,  retail dealers, franchises, as well as  
tradesmen and craftsmen. These retailers provide a broad range of household goods and services . 
The law also applies to their suppliers and producers , retail  outlets, including shopping malls . 
Implementing regulation s are yet to be published and enforced. According to the authorities, since 
September 2015, a draft regulation for shopping malls has been under review by the public.  
4.222.   The Retail Trade Law prohibits arbitrary premiums applied to producers and suppliers and 
protects small businesses against larger ones by setting a minimum duration for payment in sales 
contracts (maximum 30 days) for the procurement of certain Fast Moving Consumer Goods 
(FMCG) by small -scale producers and suppliers to large -scale retailers. I n order to prevent 
businesses from adopting deceptive commercial practices, sales campaigns and continuous 
discount sales , allowed under the Consumer Protection Code No. 6502, are subject to time 
limitations and other provisions under the Retail Trade Law.132 Shopping malls are also regulated 
under the Retail Trade Law.133 According to Article 5.7, metropolitan municipalities are the 
competent authorities to grant building licences, building use licences and business licences for 
shopping malls in big cities. I n addition, the Turkish Union of Chambers and Commodity Exchanges 
and the Confederation of Turkish Tradesmen and Craftsmen are consulted regarding the granting 
                                               
126 A.T. Kearney (2015), the  2015 Global Retail Development Index. The GRDI ranks the top 
30 developing countries for retail investment. Market attractiveness is hi ghest at 100%. Online information. 
Viewed at: https://www.atkearney.com/consumer -products -retail/global -retail-development -index/2015 . 
127 Koç, AA., Boluk , G., Kovacı, S. (2009), Concentration in food retailing and anti -competitive practices 
in Turkey , Paper prepared for presentation at the 113th EAAE Seminar "A resilient European food industry and 
food chain in a challenging world " held in Chania, Crete, G reece, on 3 -6 September 2009. Viewed at: 
http://ageconsearch.umn.edu/bitstream/58077/2/Koc -Boluk -Kovaci.pdf . 
128 The Ministry of Customs and Trade is only directly responsible  for wholesale trade of fresh fruit and 
vegetables within the context of "The Act on the Regulation of the Trading of Vegetable -Fruit and Other 
Commodities with Sufficient Depth in Respect of Supply and Demand ". 
129 Law on Regulation of Retail Trade No. 6585  of 2015 and published in the Official Gazette  29251 on 
29 January 2015.  
130 The Law on Regulating Electronic Commerce No.6563 was published in the Official Gazette  on 
5 November 2014 and entered into force on 1 May 2015.  
131 Law on the Protection of Competiti on No. 4054  of 1994.  
132 The Retail Trade Law defines continuous discount sales as the sale for discounted or wholesale prices 
of end -of-line products, end -of-season products, export excesses, defective products, or similar products. The 
law allows retailers  to place signs regarding such discounts provided that:  shopping malls use such signs only if 
all retail businesses therein are practicing continuous discounts; or  70% or more of the products being sold by 
a retail business (whether located inside or outsi de of a shopping mall) fall within the scope of the definition 
above.  The aim is to prevent retail businesses referring to themselves as "outlets ", even though such heavily 
discounted products constitute only a small percentage of the products being sold. Businesses are given two 
years from the Retail Trade Law 's effective date to comply with the terms of the Law.  
133 Article 5.7 of Law on Regulation of Retail Trade No. 6585 of 2015.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  of building licences for shopping malls. Moreover, f or shopping malls, the law requires that at least 
5 per thousand of total sales area of a shopping mall  be allocated to  social and cultural activities;  
5% allocated to trades and craftsmen134; and at least 3 per thousand of total sales area of a 
shopping mall dedicated to those who con duct rare busine sses holding traditional, cultural or 
artistic value. Shopping malls that do not comply with these new requirements must comply by 
29 January 2016.135 
4.223.   Under the regulatory system established by the Retail Trade Law, an electronic information 
system (PERBIS) is to be established and operated by the Ministry of Customs and Trade. The 
main aim of the online information system is to simplify opening procedures and coordinate all 
applications regarding the setting up and operations of retail businesses as well as to serve as a 
database for retail business es. 
4.224.   The Law on Regulating Electronic Commerce and its implementing regulations136 provide  
regulations on general information liability for a commercial activity ; commercial communication 
and basic regulations such as  prior consent and the right of refusal (unsubscribe mechanism) 
related to commercial electronic messages ; the rules that will be applied on the contracts made by 
means of electronic devices ; information that needs to be provided before the contract or dur ing 
the order ; and other issues about the intermediary service providers providing the pl atform for 
electronic commerce.  
4.225.   Under the draft secondary legislation on Retail Trade Law (Regulation on Shopping Malls), 
economic needs tests are not established, how ever such indicators do exist under the article 
regulating the licen sing of shopping malls, in which advisory opinion of professional organi zation 
associations are sought. The regulation states that the professional organi zation associations are 
to form th eir 'advisory opinion ' based on criteria such as the number and proximity of shopping 
malls.  
4.3.5.2   Market structure  
4.226.   The retail sector in Turkey comprises organized and unorganized retailers. Organized 
retailers include multi -format retailers, local or regional s upermarkets, discount retailers and gas 
station stores. Unorganized retailers include individual convenience stores called bakkals  and 
open-air bazars.137 
4.227.   Foreign retailers are present in Turkey, either through wholly -owned or as joint ventures 
(Table 4.36). However, bakkals  continue to dominate the food retail subsector with 83% market 
share in 2008 (down from 92% in 1996) although the number of hyper - and supermarkets has 
been increasing: from 2,979 in 2000 to 8,252 in 2008 . Similarly, the number of shoppin g malls 
has increased rapidly, reaching 333 in 2014 and generati ng TL 60 billion in revenue . 
4.228.   The Turkish retail sector is fragmented with the top five retailers'138 total market share 
accounting for less than 20%.139 As a result , significant mergers and acquis itions have taken place. 
In 2013, 31 transactions were conducted with a cumulative value of US$1.2 billion. Food retail 
comprises 60% of the total retail sector in Turkey with sales of US$165 billion in 2013. In 2013, 
the Turkish food sector imported US$5. 9 billion, exported US$11 .9 billion and attracted 
US$342  million in foreign investment the same year, as 13 new international companies entered 
the market. Discount chains, a fast growing segment, continue to dominate the food retail sector 
with largely do mestic players. Foreign companies are reluctant to enter the local discount retailing 
market due to its intense price competition . 
                                               
134 It is not a requirement in the case of trades and craftsmen but an encour agement.  
135 A summary of the Retail Trade Law. Viewed at: 
http://www.taboglu.av.tr/dailies/Monthly%20Updates%20(January%202015)%20(2).pdf . 
136 Regulation on Commercial Communications and Commercial Electronic Messages and Regulation on 
Service Provider and Intermediary Service Provider Regarding Electronic Commerce were prepared by The 
Ministry of Customs and Trade and promulgated in the Official  Gazette  on 15  July 2015 and 26  August 2015, 
respectively.  
137 USDA Foreign Agricultural Service (2015), Turkey Retail Foods , GAIN Report Number TR5036, 
15 July. 
138 BIM, Migros, A101, SOK Market and Carrefour.  
139 Economist Intelligence Unit (2015), Turkey Indu stry Report, Consumer Goods and Retail.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  4.229.   E-commerce has been growing in Turkey as a result of rising internet penetration rates 
and credit -card use. In the first half  of 2015, domestic e -comme rce transactions reached 
TL 25.8 billion, a 30% increase from the same period in  2014. In 2014, the value of online 
purchases was equivalent to 1.6% of total retail sales according to the Turkish Informatics 
Industry Association. Foreign investment in the online retail sector in Turkey has also witnessed 
strong growth in recent years.140 
Table 4.38 Profile of the major large retailers and restructuring in Turkey, 2008  
Company name 
& owne rship 
source  Information about firm  The No. of store 
& type of outlet  
(2008)  No. of 
employees Turnover 
(US$  million) 
Migros (Turkish 
and U.K.)  
 Established by Turkish -Switzerland 
partnership in 1954. It 
strengthened its leadership position 
in the markets by acquisition of 
Tansa s in 2005. The major share 
(50.8%) of Migros was taken over 
by British BC Partners in 2008. 
Further it acquired 18 stores of 
Yonca market and took over Mak 
Food chain with 8 stores in 2009.  
 241 (Migros)  
672 (Sok)  
6 (5M Migros)  
(hyper, 
supermarkets, 
discount stores 
(SOK)and e -
trading)  15.500 
(2008)  3.925 (2008)  
Tansa s Established in 1973 in Izmir in 
Aegean Region. It acquired the 
Macro supermarkets chain in 2002. 
Finally, it was purchased by Migros 
in 2005.  
 262 (Tansas)  
8 (Macro)    
Bim (Turkish, USA, 
and Saudi Arabia)  Established by five partnerships in 
1995 as hard discount market 
format. Its business style is similar 
with German ALDI format.  
 2.300 
(discount stores)  13.700 
(2008)  3.078 (2008)  
Carrefour SA 
(Turkish and 
French)  Began a single store in Istanbul. It 
became a joint venture with 
Sabancı in 1996 and it was named 
Carrefour SA. It acquired Gima 
supermarket chain (including Endi 
discount market with 47 stores) in 
2005. Recently, local supermarket 
chain called Kenan Evren in  Adana 
province and 12 local market chains 
in Samsun province were taken 
over by Carrefour SA in 2009.  
 470 ( discount 
stores, 
supermarkets, 
hypermarket)  7.200 
(2008)  1.770 (2008)  
Gima The first national supermarkets 
chain in Turkey. It was founded in 
1956 as a public economic 
enterprise. It was privatized and 
purchased by Fiba Holding in 1996. 
Finally, it was acquired by Carrefour 
SA in 2005.  
 81 3.500 500 
Dia SA (Turkish -
Spanish)  DIA began to open its first store in 
Istanbul at the end of 1999. It 
establ ished a partnership with 
Sabancı Holding in 2000. Endi 
discount, with 47 joined to Dia Sa 
group in 2005 after Carrefour SA 
acquired the Gima supermarket 
chain and its Endi discount stores in 
2005.  
 550 (hard 
discount store)  2.800 491 
                                               
140 Economist Intelligence Unit (2015), Turkey Industry Report, Consumer Goods and Retail . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Company name 
& owne rship 
source  Information about firm  The No. of store 
& type of outlet  
(2008)  No. of 
employees Turnover 
(US$  million) 
Metro (Germany)  METRO  Group has been active in 
Turkey since 1990.  13 (Metro Cash & 
Carry) 11 (Real 
Hyper Market)  
8 (Media Markt)  
 5.000 
(2008)  2.155 (2008)  
Tesco (U.K.)  Tesco entered the Turkish market 
in 2003 by acquiring the Kipa which 
was already founded in Izmir in 
1995.  30 (Hyper)  
62 (Express)  
(discount stores, 
supermarkets, 
and 
hypermarkets)  
 7.500 
(2008)  1.000 (2008)  
Kiler (Turkish)  Established as grocery store in 
1981 and named K iler in 1994. It 
purchased the 51% of Canerler 
supermarket chain in 2005 and 
Güler market  in 2006. It also took 
over the Karıncalar Market chain in 
2007.  
 160 
(supermarkets 
and 
hypermarkets)  5.700 
(2008)  1.000 (2008)  
 
Yimpas (Turkish)   Founded in 1982. It has 500 -2000 
m2 space for supermarkets.  15 (domestic)  
2 (foreign)  
(supermarkets 
and 
hypermarkets) 
(2007)  
 7.000 
(2007)  538 (2007)  
Makromarket -
(Turkish)  Founded in 1991 in Ankara. It 
purchased the Nazar market chain 
and mergered with Uyum market 
chain in 2007. Recently it bought 
the Afra markets chains in 2008, 
acquired Kaya supermarket with 
one store in Samsun province and 
took over Eras supermarket in 
Kayseri province and kept on its 
growth in 2009.  
 104 
(supermarkets 
and 
hypermarkets).  3.500 
(2008)  750 (2008)  
Adese (Turkish)  Founded in Konya in 1991. It was 
the first supermarket chain in 
Konya and it kept up growth by 
taking over the Mercek markets in 
2007.  
 119 
(supermarkets 
and 
hypermarkets).  2.720 
2008)  346 (2007)  
A.101 (Turkish and 
Singapore)  Founded in 2008. Its four 
shareholders are Azizler Holding, 
Balsu Food Co., Participation Bank  
of Asya and Oligo Investment Co. It 
works in hard discount store 
format.  
 320 (hard 
discount stores)  1.350 .. 
Begendik Turkish  Founded in 1986 in Kayseri. It has 
a growth strategy towards 
'Department Store' Style.  16 (supermarkets 
and 
hypermarkets).  
 .. .. 
Pehlivanoglu - 
Turkish  Founded in 1980 as regional chain 
in Aegean Region  96 (markets and 
supermarkets).  1.300 .. 
.. Not available.  
Source:  Koç AA, Boluk G, Kovacı S (2009), Concentration in food retailing and anti -competitive practices in 
Turkey , Pape r prepared for presentation at the 113th EAAE Seminar 'A resilient European food 
industry and food chain in a challenging world ', Chania, Crete, Greece3 -6 September 2009.  Viewed 
at: http://ageconsearch.umn.edu/bitstream/58077/2/Koc -Boluk -Kovaci.pdf . WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table 4.39 Major retailers (number of stores) , 2010 -12 
 Jan. 2010  Jan. 2011  Jan. 2012  Sep. 2012  
BİM 2,630  2,955  3,281  3,534  
Migros/Tansa ş/Şok 1,535  1,893  1,959  2,030  
CarrefourSA/Express/DiaSA  887 1,053  1,322  1,362  
A101  460 784 1,291  1,516  
Hakmar/H.Express  85 135 252 265 
Kiler 165 173 193 198 
Tesco Kipa/K. Express  100 120 131 176 
Makromarket  111 124 156 166 
Adese/Adesem  132 143 144 153 
Bizim Toptan Sat ış 95 105 116 128 
Other  1,859  2,224  3,003  3,332  
TOTAL  8,059 9,709 11,848 12,860 
Source:  Ministry of Development. Viewed at:  
http://www.cka.org.tr/dosyalar/Ozel%20Ihtisas%20Komisyonu%20Raporlar%C4%B1/Ticaret%20Hi
zmetlerinin%20Gelistirilmesi_%C3%B6ik.pdf . 
Table 4.40 Shopping malls (SMs)  
City GLA No. SMs  City 
Population  GLA per 1,000 
persons  
Adana  178,543  3 2,165,595  82 
Afyon  84,700  3 706,371  120 
Aksaray  22,098  2 384,252  58 
Ankara  1,422,648  36 5,150,072  276 
Antalya  329,249  16 2,222,562  148 
Artvin  5,500  1 169,674  32 
Aydın  134,142  8 1,041,979  129 
Balıkesir  82,968  6 1,189,057  70 
Batman  20,000  1 557,593  36 
Bilecik  15,146  1 209,925  72 
Bitlis 10,000  1 338,023  30 
Bolu 45,100  2 284,789  158 
Bursa  384,030  11 2,787,539  138 
Çanakkale  52,918  4 511,790  103 
Çankırı 14,500  1 183,550  79 
Denizli  127,096  5 978,700  130 
Diyarbakır  196,775  6 1,635,048  120 
Düzce  13,500  1 355,549  38 
Edirne  38,435  3 400,280  96 
Elazığ  26,861  2 568,753  47 
Erzurum  46,383  2 763,320  61 
Eskişehir  124,209  4 812,320  153 
Gaziantep  246,464  6 1,889,466  130 
Giresun  13,782  2 429,984  32 
Hatay  113,000  3 1,519,836  74 
Isparta  26,000  1 418,780  62 
Istanbul  3,986,374  103 14,377,018  277 
İzmir 513,753  21 4,113,072  125 
Kahramanmaraş  64,300  2 1,089,038  59 
Karabük  48,248  3 231,333  209 
Karaman  9,689  1 240,362  40 
Kastamonu  10,036  1 368,093  27 
Kayseri  156,121  6 1,322,376  118 
Kırıkkale  53,106  3 271,092  196 
Kırklareli  6,906  1 343,723  20 
Kocaeli  245,449  10 1,722,795  142 
Konya   224,251  8 2,108,808  106 
Kütahya  62,437  3 571,554  109 
Malatya  64,507  2 769,544  84 
Manisa  57,342  4 1,367,905  42 
Mardin  26,000  1 788,996  33 
Mersin  172,950  6 1,727,255  100 
Muğla  156,685  11 894,509  175 
Nevşehir  26,034  1 286,250  91 
Ordu 7,800  1 724,268  11 
Osmaniye  19,774  1 506,807  39 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  City GLA No. SMs  City 
Population  GLA per 1,000 
persons  
Sakarya  123,510  5 932,706  132 
Samsun  162,848  6 1,269,989  128 
Siirt 25,000  2 318,366  79 
Şanlıurfa  73,700  3 1,845,667  40 
Tekirdağ  90,881  6 906,732  100 
Trabzon  93,659  3 766,782  122 
Tokat  28,000  1 597,920  47 
Uşak 30,966  3 349,459  89 
Van 9,000  1 1,085,542  8 
Yalova  26,106  2 226,514  115 
Zongu ldak 31,088  2 598,796  52 
TOTAL  10,380,567  354 77,695,904  4,161  
Source:  Council of shopping centres.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merc handise exports by product group, 2010 -14 
(US$ million and %)  
 2010  2011  2012  2013  2014  
Total (US$ million)  113,980  134,915  152,537  151,803  157,715  
 (% of total)  
Total primary products  19.0 20.0 19.1 20.1 19.4 
  Agriculture  10.9 11.1 10.3 11.5 11.7 
    Food 10.4 10.5 9.9 11.0 11.3 
       0577 Edible nuts fresh, dried  0.9 0.9 0.8 0.8 1.0 
    Agricultural raw material  0.4 0.5 0.4 0.4 0.4 
  Mining  8.2 8.9 8.8 8.7 7.8 
    Ores and other minerals  2.4 2.2 2.2 2.7 2.4 
    Non-ferrous metals  1.9 2.0 1.7 1.7 1.7 
       6842 Aluminium and aluminium alloys, 
worked  1.0 1.1 0.9 1.0 1.0 
    Fuels 3.9 4.8 4.9 4.3 3.7 
Manufactures  77.6 77.2 70.7 76.1 76.7 
  Iron and steel  9.0 9.5 8.6 7.6 6.8 
    6762 Bars/rods (not 676.1) iron/steel, hot -
rolled, etc.  3.0 3.5 3.5 3.2 2.7 
  Chemicals  5.4 5.3 5.2 5.6 5.8 
  Other semi -manufactures  10.4 10.4 9.5 10.2 10.4 
       6911 Iron or steel structures, tubes and the 
like, for use in structures  0.8 0.8 0.9 0.9 0.9 
   Machinery and transport equipment  27.9 27.8 24.5 27.0 27.1 
    Power generating machines  0.6 0.6 0.6 0.6 0.6 
    Other non -electrical machinery  4.7 5.1 4.7 5.2 5.2 
       Agricultural machinery and tractors  0.3 0.3 0.4 0.4 0.5 
    Office machines & telecommunication 
equipment  1.8 1.7 1.8 1.5 1.5 
      7611 Colour television receivers  1.5 1.4 1.4 1.1 1.2 
      Other electrical machines  6.3 6.2 5.7 6.1 5.9 
       7731 Insulated wire, cable etc.; optical fibre 
cables  1.6 1.7 1.6 1.6 1.5 
       7752 Household fridges and freezers  1.0 1.0 1.0 1.0 0.9 
    Automotive products  12.1 11.6 9.7 11.0 11.1 
       7812 Motor vehicles for the transport of 
persons, n.e.s.  5.4 4.8 4.0 4.5 4.6 
       7821 Goods vehicles  2.9 2.9 2.2 2.5 2.6 
       7843 Other motor vehicle parts and 
accessories of 722, 781 to 783  2.3 2.5 2.2 2.6 2.6 
    Other transport equipment  2.4 2.5 2.1 2.6 2.7 
       7139 Parts, n.e.s., for piston engines of 
713.2, 713.3, 713.8  1.0 1.0 0.9 1.0 1.1 
  Textiles  7.9 8.0 7.2 8.0 7.9 
       6595 Carpets and other textile floorings, 
woven, n.e.s.  0.8 0.9 1.1 1.2 1.3 
       6552 Other knitted/crocheted fabrics, not 
impregnated/coated, etc.  1.0 1.0 1.0 1.1 1.0 
       6584 Bed linen, table linen, toilet linen and 
kitchen linen  0.9 0.9 0.7 0.9 0.9 
  Clothing  11.2 10.3 9.4 10.1 10.6 
       8454 T -shirts, singlets and other vests, 
knitted or crocheted  2.4 2.3 2.0 2.2 2.3 
       8453 Jerseys, pullovers, cardigans, etc., 
knitted/crocheted  1.1 1.0 0.9 1.1 1.1 
       8426 Trousers, breeches, etc., women's/girls', 
not knitted/crocheted  1.0 1.0 1.0 1.0 1.0 WT/TPR/S/ 331/Rev.1  • Turkey  
 
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   2010  2011  2012  2013  2014  
  Other consumer goods  5.9 6.0 6.3 7.5 8.1 
       8973 Jewellery of gold, silver or platinum 
metals (except watches)  1.3 1.4 1.8 2.3 2.8 
Other  3.3 2.8 10.2 3.8 3.8 
  Gold 1.8 1.1 8.7 2.2 2.0 
Source:  UNSD Comtrade database, SITC Rev.3.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table A1. 2 Merchandise imports by product group, 2010 -14 
(US$ million and %)  
 2010  2011  2012  2013  2014  
Total (US$ million)  185,541  240,839  236,545  251,661  242,224  
 (% of total)  
Total primary products  29.3 23.7 23.6 21.5 22.7 
  Agriculture  6.9 7.3 6.9 6.7 7.5 
     Food 4.0 4.4 4.4 4.3 5.0 
       0412 Other wheat (including spelt) and 
meslin, unmilled  0.3 0.7 0.4 0.4 0.5 
     Agricultural raw material  2.9 2.9 2.5 2.4 2.5 
       2631 Cotton (other than linters), not carded 
or combed  0.9 0.8 0.5 0.7 0.7 
  Mining  22.4 16.4 16.7 14.8 15.2 
     Ores and other minerals  4.6 4.8 4.7 3.7 3.7 
       2823 Other ferrous waste and scrap  3.8 4.0 3.9 3.0 2.8 
     Non-ferrous metals  3.4 3.4 3.2 3.1 3.3 
       6821 Copper anodes; alloys; unwrought  1.4 1.3 1.2 1.1 1.1 
       6841 Aluminium and aluminium alloys, 
unwrought  0.9 1.0 0.9 0.9 1.0 
     Fuels 14.4 8.2 8.7 8.0 8.3 
       3442 Gaseous hydrocarbons, liquefied, n.e.s.  1.2 1.2 1.2 1.1 1.1 
Manufactures  62.5 59.0 55.9 57.9 59.7 
  Iron and steel  5.2 4.8 4.7 4.8 4.7 
       6726 Semi -finished iron/steel products 
<0.25% carbon  0.5 0.5 0.7 1.0 0.9 
  Chemicals  13.5 12.8 12.4 12.5 13.5 
       5751 Propylene polymers or of other olefins  1.2 1.1 1.2 1.2 1.4 
       5429 Medicaments, n.e.s.  1.4 1.1 0.9 0.9 1.0 
       5711 Polyethylene  0.8 0.8 0.9 0.9 0.9 
  Other semi -manufactures  5.0 4.6 4.6 4.8 5.0 
  Machinery and transport equipment  29.0 27.8 26.0 27.2 27.2 
     Power generating machines  1.9 1.2 1.5 1.8 1.3 
     Other non -electrical machinery  7.1 7.7 7.6 8.0 7.9 
       7284 Machinery and appliances for particular 
industries, n.e.s.  0.6 0.7 0.6 0.6 0.7 
        Agricultural machinery and tractors  0.2 0.3 0.3 0.3 0.3 
     Office machines & telecommunication 
equipment  4.6 3.9 4.3 4.7 5.2 
       7643 Rad io or television transmission 
apparatus  0.8 0.8 0.7 1.1 1.2 
       7649 Parts and accessories for apparatus of 
division 76  0.3 0.2 0.5 0.6 0.7 
       7522 Data processing machines, with at least 
processing, input and output units  0.6 0.5 0.6 0.6 0.7 
     Other electrical machines  3.9 3.6 3.1 3.0 3.0 
     Automotive products  8.3 8.1 6.9 7.6 7.4 
       7812 Motor vehicles for the transport of 
persons, n.e.s.  3.7 3.5 3.1 3.6 3.2 
       7843 Other motor vehicle parts and 
accessories of 722, 781 to 783  2.4 2.2 1.9 1.9 2.0 
       7132 Internal combustion engines for vehicles 
of 78; 744.14, 744.15, 891.11  1.2 1.1 0.9 1.0 1.1 
     Other transport equipment  3.2 3.3 2.6 2.2 2.4 
       7924 Aeroplanes, etc. (excl. helicopters), 
>15,000 kg unladen  1.2 1.3 1.0 0.6 0.9 
  Textiles  3.5 3.1 2.7 2.7 2.9 
  Clothing  1.5 1.4 1.1 1.2 1.3 
   Other consumer goods  4.7 4.5 4.3 4.7 5.0 
Other  8.2 17.3 20.5 20.6 17.7 
  Gold 1.4 2.6 3.2 6.0 2.9 
Source:  UNSD Comtrade database, SITC Rev.3.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table A1. 3 Merchandise exports by destination, 2010 -14 
(US$ million and %)  
 2010  2011  2012  2013  2014  
Total (US$ million)  113,980  134,915  152,537  151,803  157,715  
 (% of total)  
America  5.3 5.9 6.3 6.4 6.4 
  United States  3.3 3.4 3.7 3.7 4.0 
  Other America  2.0 2.5 2.6 2.7 2.4 
Europe  50.8 49.8 42.4 44.5 47.1 
  EU-28 47.5 47.3 39.7 42.3 43.6 
    Germany  10.1 10.3 8.6 9.0 9.6 
    United Kingdom  6.4 6.0 5.7 5.8 6.3 
    Italy 5.7 5.8 4.2 4.4 4.5 
    France  5.3 5.0 4.1 4.2 4.1 
    Spain  3.1 2.9 2.4 2.9 3.0 
    The Netherlands  2.2 2.4 2.1 2.3 2.2 
    Romania  2.3 2.1 1.6 1.7 1.9 
    Belgium  1.7 1.8 1.5 1.7 1.9 
    Poland  1.3 1.3 1.2 1.4 1.5 
  EFTA 2.1 1.4 1.7 1.1 2.4 
    Switzerland  1.8 1.1 1.4 0.7 2.0 
  Other Europe  1.2 1.1 0.9 1.0 1.1 
Commonwealth of In dependent States (CIS)  9.7 10.7 10.7 12.0 10.8 
    Russian Federation  4.1 4.4 4.4 4.6 3.8 
    Azerbaijan  1.4 1.5 1.7 2.0 1.8 
    Turkmenistan  1.0 1.1 1.0 1.3 1.4 
Africa  8.2 7.7 8.6 9.1 8.5 
    Egypt  2.0 2.0 2.4 2.1 2.1 
Middle East  18.4 18.4 25.3 20.7 19.7 
    Iraq 5.3 6.2 7.1 7.9 6.9 
    United Arab Emirates  2.9 2.7 5.4 3.3 3.0 
    Iran, Islamic Rep. of  2.7 2.7 6.5 2.8 2.5 
    Saudi Arabia  1.9 2.0 2.4 2.1 1.9 
    Israel  1.8 1.8 1.5 1.7 1.9 
Asia 5.8 5.7 5.0 5.6 5.0 
  China  2.0 1.8 1.9 2.4 1.8 
  Japan  0.2 0.2 0.2 0.3 0.2 
  Six East Asian Traders  1.5 1.7 1.2 1.2 1.2 
  Other Asia  2.0 2.0 1.8 1.7 1.7 
Other  1.8 1.9 1.7 1.8 2.4 
    Free Zones  1.8 1.9 1.5 1.6 2.1 
Source:  UNSD Comtrade database.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table A1. 4 Merchandise i mports by origin, 2010 -14 
(US$ million and %)  
 2010  2011  2012  2013  2014  
Total (US$ million)  185,541  240,839  236,545  251,661  242,224  
 (% of total)  
America  9.1 9.4 8.6 7.5 7.8 
  United States  6.6 6.7 6.0 5.0 5.3 
  Other America  2.4 2.8 2.6 2.5 2.5 
Europe 41.4 40.7 39.5 41.2 39.3 
  EU-28 39.1 38.0 37.1 36.8 36.7 
    Germany  9.5 9.5 9.0 9.6 9.2 
    Italy 5.5 5.6 5.6 5.1 5.0 
    France  4.4 3.8 3.6 3.2 3.4 
    Spain  2.6 2.6 2.5 2.6 2.5 
    United Kingdom  2.5 2.4 2.4 2.5 2.4 
    Greece  0.8 1.1 1.5 1.7 1.7 
    Belgium  1.7 1.6 1.6 1.5 1.6 
    The Netherlands  1.7 1.7 1.5 1.3 1.5 
    Romania  1.9 1.6 1.4 1.4 1.4 
    Poland  1.4 1.5 1.3 1.3 1.3 
    Bulgaria  0.9 1.0 1.2 1.1 1.2 
   EFTA 2.2 2.4 2.2 4.2 2.4 
    Switzerland  1.7 2.1 1.8 3.8 2.0 
Other Europ e 0.2 0.2 0.2 0.2 0.3 
Commonwealth of Independent States (CIS)  16.6 13.9 15.0 13.6 13.8 
    Russian Federation  11.6 9.9 11.3 10.0 10.4 
    Ukraine  2.1 2.0 1.9 1.8 1.8 
Africa  3.5 2.8 2.5 2.4 2.4 
Middle East  8.0 8.2 8.8 8.6 8.2 
    Iran, Islamic Rep. o f 4.1 5.2 5.1 4.1 4.1 
    United Arab Emirates  0.4 0.7 1.5 2.1 1.3 
    Israel  0.7 0.9 0.7 1.0 1.2 
Asia 20.4 20.9 19.8 20.8 22.3 
  China  9.3 9.0 9.0 9.8 10.3 
  Japan  1.8 1.8 1.5 1.4 1.3 
  Six East Asian Traders  5.0 5.0 4.5 4.4 5.1 
    Korea, Rep. of  2.6 2.6 2.4 2.4 3.1 
  Other Asia  4.3 5.1 4.8 5.2 5.5 
    India 1.8 2.7 2.5 2.5 2.8 
Other  1.0 4.1 5.8 5.8 6.2 
    Areas n.e.s  0.5 3.6 5.3 5.3 5.6 
Source:  UNSD Comtrade database.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table A2. 1 Turkey's Involvement in Dispute Se ttlement Cases, 1 January 
2012 -1 December 2015  
Subject  Respondent/ 
complainant/ 
appellant  Request for 
consultation 
received  Status (as at 
30 October 
2014)  WTO 
document 
series  
Panels  
Turkey as a respondent:  
Turkey – Safeguard Measures 
on Imports of Cotto n Yarn 
(other than Sewing Thread)  Turkey/India  
 13-Feb-12 Consultations 
requested  WT/DS428  
Turkey as a third party:  
United States – Anti-Dumping 
and Countervailing Measures 
on Coated Paper from 
Indonesia  U.S./Indonesia  17-Mar-15 Panel 
established, but 
not yet 
composed  WT/DS491  
U.S. – Anti-dumping Measures 
on Certain Oil Country Tubular 
Goods from Korea  U.S./Korea  22–Dec-14 Panel composed, 
interim report 
pending  WT/DS488  
European Union – Anti-
Dumping Measures on 
Biodiesel from Indonesia  EU/Indonesia  17-June-14 Panel composed, 
interim report 
pending  WT/DS/480  
Russia – Anti-dumping Duties 
on Light Commercial Vehicles 
from Germany and Italy  Russia/EU  21-May-14 Panel composed, 
interim report 
pending  WT/DS479  
European Union – Cost 
Adjustment Methodologies an d 
Certain Anti -dumping 
Measures on Imports from 
Russia  EU/Russia  23-Dec-13 Panel 
established, but 
not yet 
composed  WT/DS474  
European Union – Anti-
Dumping Measures on 
Biodiesel from Argentina  EU/Argentina  19-Dec-13 Panel composed, 
interim report 
pending  WT/DS473  
Brazil – Certain Measures 
Concerning Taxation and 
Charges  Brazil/EU  
 19-Dec-13/9-
Jul-15 Panel composed, 
interim report 
pending  WT/DS472  
WT/DS497  
United States - Certain 
Methodologies and their 
Application to Anti -Dumping 
Proceedings involving Chin a U.S./China  3-Dec-13 Panel composed, 
interim report 
pending  WT/DS471  
European Union — Measures  
on Atlanto -Scandian Herring  EU/Denmark  4-Nov-13 Settled or 
terminated on 
21-Aug.14  WT/DS469  
Ukraine – Definitive Safeguard 
Measures on Certain 
Passenger Car s Ukraine/Japan  30-Oct-13 Implementation 
under discussion  WT/DS468  
United States - Anti-Dumping 
and Countervailing Measures 
on Large Residential Washers 
from Korea  U.S./Korea  29-Aug-13 Panel composed, 
interim report 
issued, final 
report pending  WT/DS464  
Russia – Motor Vehicles  Russia/  
EU 9-Jul-13 Panel 
established, but 
not yet 
composed  WT/DS462  
China – Measures Imposing 
Anti-Dumping Duties on High -
Performance Stainless Steel 
Seamless Tubes from the 
European Union  China/EU  13-Jun-13 Panel report 
issued, A B 
proceeding  WT/DS460  
India – Certain Measures 
Relating to Solar Cells and 
Solar Modules  India/U.S.  6-Feb-13 Panel composed, 
interim report 
issued, final 
report issued to 
parties, 
translation 
pending  WT/DS456  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Subject  Respondent/ 
complainant/ 
appellant  Request for 
consultation 
received  Status (as at 
30 October 
2014)  WTO 
document 
series  
China — Measures Imposing 
Anti-Dumping Duties  on High -
Performance Stainless Steel 
Seamless Tubes from Japan  China/Japan  20-Dec-12 Panel report 
issued, AB 
proceeding  WT/DS454  
United States – Countervailing 
and Anti -Dumping Measures 
on Certain Products from 
China  U.S./China  17-Sep-12 Panel and 
Appella te Body 
reports adopted 
by DSB on 22 -
Jul-14 WT/DS449  
European Union – Anti-
dumping Measures on Imports 
of Certain Fatty Alcohols from 
Indonesia  EU/Indonesia  30-Jul-12 Panel composed, 
interim report 
pending  WT/DS442  
Australia – Certain Measures 
Concerning  Trademarks, 
geographical Indications and 
other Plain Packaging 
Requirements applicable to 
Tobacco Products and 
Packaging  Australia/  
Honduras -
Dominican 
Republic -Cuba-
Indonesia  4-Apr-12, 18 -
Jul-12, 3-
May-13, 20 -
Sep-13 Panel composed, 
interim report 
pending  WT/DS435, 
WT/DS441, 
WT/DS458, 
WT/DS467  
China – Anti-Dumping and 
Countervailing Duties on 
Certain Automobiles from the 
United States  China/U.S.  5-Jul-12 Panel report 
adopted by DSB 
on 18 -Jun-14 WT/DS440  
Argentina – Import Measures  Argentina/EU -
U.S.-Japan  25-May-12 Panel and 
Appellate Body 
reports adopted 
by DSB on 26 -
Jan-15 WT/DS438, 
WT/DS444, 
WT/DS445  
United States – Countervailing 
Duty Measures on Certain 
Products from China  U.S./China  25-May-12 Panel and 
Appellate Body 
reports adopted 
by DSB on 16 -
Jan-15 WT/DS437  
United States – Countervailing 
Measures on Certain Hot -
Rolled Carbon Steel Flat 
Products from India  U.S./India  12-Apr-12 Panel and 
Appellate Body 
reports adopted 
by DSB on 19 -
Dec-14 WT/DS436  
Australia – Tobacco Plain 
Packaging  Australia/Ukrai ne 13-Mar-12 Panel composed, 
proceedings 
suspended under 
Article 12.12  WT/DS434  
China – Rare Earths  China/U.S. -
Japan -EU 13-Mar-12 Panel and 
Appellate Body 
reports adopted 
by DSB on 29 -
Aug-14. On 21 
May 2015, China 
and the United 
States informed 
the DSB of  
Agreed 
Procedures under 
Arts. 21 and 22  WT/DS431, 
WT/DS432, 
WT/DS433  
Source:  WTO Secretariat.  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  Table A2. 2 Selected Notifications to the WTO, 9 November 2011 -1 December 2015  
WTO 
Agreement  Description  Document symbol  Date  
General Agreement on Trade in Services  
Article III:4 or 
IV:2 Contact and enquiry points  S/ENQ/78/Rev.13  
S/ENQ/78/Rev.14  04/12/2012  
25/10/2013  
WT/L/918  LDC Services Waiver  S/C/N/824  03/09/2015  
Agreement on the Implementation of Article VI of the GATT 1994 ( Anti-Dumping Agreement)  
Article 16.4 – 
ad hoc Anti-dumping actions (preliminary and 
final)  G/ADP/N/224  
G/ADP/N/226  
G/ADP/N/228  
G/ADP/N/231  
G/ADP/N/232  
G/ADP/N/234  
G/ADP/N/238  
G/ADP/N/242  
G/ADP/N/247  
G/ADP/N/251  
G/ADP/N/253  
G/ADP/N/254  
G/ADP/N/257  
G/ADP/N /261 
G/ADP/N/262  
G/ADP/N/267  
G/ADP/N/268  
G/ADP/N/269  
G/ADP/N/271  
G/ADP/N/273  
G/ADP/N/274  
G/ADP/N/275  
G/ADP/N/276  
G/ADP/N/277  17/01/2012  
06/03/2012  
08/05/2012  
19/07/2012  
10/08/2012  
16/10/2012  
21/01/2013  
30/05/2013  
13/09/2013  
19/12/2013  
24/01/2014  
17/02/2014  
23/05/2014  
19/08/2014  
23/09/2014  
22/01/2015  
20/02/2015  
01/04/2015  
29/05/2015  
22/06/2015  
24/07/2015  
31/08/2015  
16/09/2015  
15/10/2015  
Article 16.4 – 
semi annual  Anti-dumping actions (taken within the 
preceding six months)  G/ADP/N/223/TUR  
G/ADP/N/230/TUR  
G/ADP/N/237/TUR  
G/ADP/N/244/TUR  
G/ADP/N/252/TUR  
G/ADP/N/252/TUR/Corr.1  
G/ADP/N/259/TUR  
G/ADP/N/265/TUR  
G/ADP/N/272/TUR  
 22/03/2012  
31/07/2012  
28/03/2013  
02/08/2013  
24/01/2014  
10/02/2014  
 
16/10/2014  
11/03/2015  
23/07/2015  
GATT 1994  
Article 
XVII:4(a)  
and 
Paragraph  1 of 
the 
Understanding 
on 
the 
Interpretation 
of Article XVII  State trading  
 G/STR/N/14/TUR  
 15/06/2012  
 
Article 
XXIV:7(a) of 
GATT 1994 and 
Article V:7(a) of 
GATS  Free-trade areas: Turkey -Republic of 
Korea and Turkey -Mauritius  WT/REG339/N/1  
WT/REG 341/N/1  
 01/05/2013  
31/05/2013  
 
Article XXVIII:5  Invocation of paragraph 5 of Article XXVIII  G/MA/271  
 14/12/2011  
Agreement on Import Licensing  
Article 1.4(a) 
and 8.2(b)  Publication  G/LIC/N/1/TUR/10  
G/LIC/N/1/TUR/11  01/10/2012  
29/09/2014  WT/TPR/S/ 331/Rev.1  • Turkey  
 
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  WTO 
Agreement  Description  Document symbol  Date  
Article 7.3  Replies to the questionnaire  G/LIC/N/3/TUR/12  
G/LIC/N/3/TUR/12/Corr.1  
G/LIC/N/3/TUR/13  
G/LIC/N/3/TUR/14  11/09/2012  
17/09/2012  
03/02/2014  
28/09/2015  
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  Notification of QRs  G/MA/QR/ N/TUR/1  
G/MA/QR/N/TUR/1/Corr.1  15/10/2012  
23/11/2012  
Agreement on Rules of Origin  
Paragraph 4 of 
Annex II  Preferential rules of origin:  Turkey -
Republic of Korea and Turkey -Mauritius  G/RO/N/103  
G/RO/N/104  19/09/2013  
19/09/2013  
Agreement on Subsidies and  Countervailing Measures  
Article 25.1 
and GATT 1994 
Article XVI:1  Subsidies  G/SCM/N/220/TUR  
G/SCM/N/253/TUR  
G/SCM/N/253/TUR/Supp.1  
G/SCM/N/253/TUR/Supp.2  
G/SCM/N/284/TUR  21/03/2012  
11/03/2014  
20/11/2014  
14/01/2015  
18/09/2015  
Article 25.11 - 
semi Counter vailing duty actions (taken within 
the preceding six months)  G/SCM/N/235/TUR  
G/SCM/N/242/TUR  
G/SCM/N/250/TUR  
G/SCM/N/259/TUR  
G/SCM/N/267/TUR  
G/SCM/N/274/TUR  
G/SCM/N/281/TUR  
G/SCM/N/289/TUR  18/01/2012  
31/07/2012  
08/04/2013  
01/08/2013  
27/01/2014  
16/10/2014  
16/03/2015  
23/07/2015  
Agreement on Safeguards  
Article 7.2  Extension of a safeguard measure  G/SG/N/14/TUR/4/Suppl.1  
G/SG/N/14/TUR/8  
G/SG/N/6/TUR/6/Suppl.2  
G/SG/N/14/TUR/9/Suppl.1  
G/SG/N/6/TUR/11/Suppl.1  
G/SG/N/6/TUR/11/Suppl.1/
Corr.1  
G/SG/N/6/TUR/12/Suppl. 1 
G/SG/N/10/TUR/13/Suppl.1  
G/SG/N/14/TUR/10  
 11/04/2012  
11/04/2012  
07/05/2012  
28/08/2013  
09/01/2014  
24/01/2014  
 
09/01/2014  
16/07/2014  
16/07/2014  
Article 9, 
footnote 2 Notification of a safeguard measure 
concerning developing country members  G/SG/N/11/TUR/ 17/Suppl.1  
G/SG/N/14/TUR/7  
G/SG/N/11/TUR/17/Suppl.1
/Corr.1  
G/SG/N/14/TUR/7/Corr.1  
G/SG/N/10/TUR/12/Suppl.1  
G/SG/N/11/TUR/13/Suppl.2  
G/SG/N/11/TUR/6/Suppl.2  
G/SG/N/14/TUR/2/Suppl.1  
G/SG/N/11/TUR/7/Suppl.3  
G/SG/N/14/TUR/4/Suppl.2  
G/SG/N/11/TUR/6/Suppl.2/
Corr.1 
G/SG/N/14/TUR/2/Suppl.1/
Corr.1  
G/SG/N/11/TUR/7/Suppl.3/
Corr.1  
G/SG/N/14/TUR/4/Suppl.2/
Corr.1  
G/SG/N/8/TUR/10/Suppl.1  
G/SG/N/10/TUR/10/Suppl.1  
G/SG/N/11/TUR/11/Suppl.2  
G/SG/N/8/TUR/10/Suppl.1/
Corr.1  
G/SG/N/10/TUR/10/Suppl.1
/Corr.1  02/02/2012  
02/02/2012  
10/02/2012  
 
10/02/2012  
22/05/2012  
22/05/2012  
16/07/2012  
16/07/2012  
16/07/2012  
16/07/2012  
13/08/20 12 
 
13/08/2012  
 
13/08/2012  
 
13/08/2012  
 
16/10/2013  
16/10/2013  
16/10/2013  
21/11/2013  
 
21/11/ 2013 
 WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 192 - 
 
  WTO 
Agreement  Description  Document symbol  Date  
G/SG/N/11/TUR/11/Suppl. 2
/Corr.1  
G/SG/N/10/TUR/8/Suppl.2  
G/SG/N/11/TUR/8/Suppl.2  
G/SG/N/8/TUR/9/Suppl.2  
G/SG/N/10/TUR/9/Suppl.2  
G/SG/N/11/TUR/9/Suppl.2  
G/SG/N/8/TUR/14  
G/SG/N/10/TUR/14  
G/SG/N/11/TUR/19  
G/SG/N/8/TUR/13/Suppl.1  
G/SG/N/10/TUR/13/Suppl.2  
G/SG/N/11/TUR/16/Suppl.1  
G/SG /N/8/TUR/15  
G/SG/N/10/TUR/15  
G/SG/N/11/TUR/20  21/11/2013  
 
25/02/2014  
25/02/2014  
07/04/2014  
07/04/2014  
07/04/2014  
24/04/2014  
24/04/2014  
24/04/2014  
08/10/2014  
08/10/2014  
08/10/2014  
26/06/2015  
26/06/2015  
26/06/2015  
Article 12.1(a)  Initiation of an investigation  G/SG/N/11/TUR/17/Suppl.1  
G/SG/N/14/T UR/7 
G/SG/N/11/TUR/17/Suppl.1
/Corr.1  
G/SG/N/14/TUR/7/Corr.1  
G/SG/N/11/TUR/7/Suppl.3/
Corr.1  
G/SG/N/14/TUR/4/Suppl.2/
Corr.1  
G/SG/N/6/TUR/17  
G/SG/N/6/TUR/18  
G/SG/N/6/TUR/19  
G/SG/N/6/TUR/19/Corr.1  
G/SG/N/6/TUR/20  
G/SG/N/6/TUR/21  02/02/2012  
02/02/2012  
10/02/201 2 
 
10/02/2012  
13/08/2012  
 
13/08/2012  
 
15/01/2013  
15/01/2013  
08/12/2014  
11/12/2014  
12/12/2014  
29/04/2015  
Article 12.1(b)  Finding serious injury or threat thereof  G/SG/N/10/TUR/12/Suppl1  
G/SG/N/11/TUR/13/Suppl2  
G/SG/N/8/TUR/10/Suppl.1  
G/SG/N/10/TUR/10/Suppl .1 
G/SG/N/11/TUR/11/Suppl.2  
G/SG/N/8/TUR/10/Suppl.1/
Corr.1  
G/SG/N/10/TUR/10/Suppl.1
/Corr.1  
G/SG/N/11/TUR/11/Suppl.2
/Corr.1  
G/SG/N/8/TUR/9/Suppl.2  
G/SG/N/10/TUR/9/Suppl.2  
G/SG/N/11/TUR/9/Suppl.2  
G/SG/N/8/TUR/14  
G/SG/N/10/TUR/14  
G/SG/N/11/TUR/19  
G/SG/N/8/TUR /15 
G/SG/N/10/TUR/15  
G/SG/N/11/TUR/20  
G/SG/N/8/TUR/13/Suppl.1  
G/SG/N/10/TUR/13/Suppl.2  
G/SG/N/11/TUR/16/Suppl.1  
G/SG/N/8/TUR/15  
G/SG/N/10/TUR/15  
G/SG/N/11/TUR/20  22/05/2012  
22/05/2012  
16/10/2013  
16/10/2013  
16/10/2013  
21/11/2013  
 
21/11/2013  
 
21/11/2013  
 
07/04/2014  
07/04/2014  
07/04/2014  
24/04/2014  
24/04/2014  
24/04/2014  
26/06/2014  
26/06/2014  
26/06/2014  
08/10/2014  
08/10/2014  
08/10/2014  
26/06/2015  
26/06/2015  
26/06/2015  
Article 12.1(c)  Decision to extend a safeguard measure  G/SG/N/11/TUR/18  
G/SG/N/14/TUR/9  
G/SG/ N/10/TUR/12/Suppl.1  
G/SG/N/11/TUR/13/Suppl.2  
G/SG/N/11/TUR/7/Suppl.3  
G/SG/N/14/TUR/4/Suppl.2  
G/SG/N/11/TUR/6/Suppl.2  
G/SG/N/14/TUR/2/Suppl.1  09/05/2012  
09/05/2012  
22/05/2012  
22/05/2012  
16/07/2012  
16/07/2012  
16/07/2012  
16/07/2012  WT/TPR/S/ 331/Rev.1  • Turkey  
 
- 193 - 
 
  WTO 
Agreement  Description  Document symbol  Date  
 
G/SG/N/11/TUR/6/Suppl.2/
Corr.1  
G/SG/N/14/TUR/2/Suppl.1/
Corr.1  
G/SG/N/10/TUR/11/Suppl1  
 
G/SG/N/14/TUR/9/Suppl.1  
G/SG/N/10/TUR/8/Suppl.2  
G/SG/N/11/TUR/8/Suppl.2  
 
G/SG/N/8/TUR/9/Suppl.2  
G/SG/N/10/TUR/9/Suppl.2  
G/SG/N/11/TUR/9/Suppl.2  
G/SG/N/8/TUR/14  
G/SG/N/10/TUR/14  
G/SG/N/11/TUR/19  
G/SG/N/8/TUR/13/Suppl.1  
G/SG/N/10/TUR/13/Suppl.2  
G/SG/N/11/TUR/16/Suppl.1  
G/SG/N/8/TUR/15  
G/SG/N/10/TUR/15  
G/SG/N/11/TUR/20   
13/08/2012  
 
13/08/2012  
 
08/01/2013  
 
28/08/2013  
25/02/2014  
25/02/2014  
 
07/04/2014  
07/04/2014  
07/04/2014  
24/04/2014  
24/04/2014  
24/04/2 014 
08/10/2014  
08/10/2014  
08/10/2014  
26/06/2015  
26/06/2015  
26/06/2015  
Articles 12.5 & 
8.2 Suspension of concessions  G/SG/N/12/TUR/4  12/06/2013  
Article 12.6  Notification of laws, regulations, and 
administrative procedures  G/SG/N/1/TUR/3/Suppl.2  17/12/2013  
Agreement on Sanitary and Phytosanitary Measures  
Article 7 
Annex  B Sanitary and phytosanitary regulations  Many notifications received, 
please see: 
http://www.wto.org/english
/tratop_e/sps_e/work_and_
doc_e.htm   
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Many notifications received, 
please see 
http://tbtims.wto.org/   
Article 2.10  TBT Notification  G/TBT/N/TU R/70 03/12/2015  
Article 5.6  TBT Notification  G/TBT/N/TUR/37/Suppl.1  
G/TBT/N/TUR/58  17/09/2013  
17/11/2014  
Article 15.2  Implementation and administration of the 
Agreement  G/TBT/2/Add. 33/Rev.1  09/11/2011  
Agreement on Trade Facilitation  
 Notification of category A commitments  WT/PCTF/N/TUR/1  16/07/2014  
Source:  WTO Secretariat.   
  WT/TPR/S/331/Rev.1 • Turkey  
 
- 194 - Table A2. 3 Foreign direct investment restrictions, 2015  
Sectors  Legal source  Restriction  
Broadcasting  Law No. 6112 on the Establishment of 
Radio and T elevision Enterprises and 
their Media Services,  
15 February  2011  The total direct foreign capital share in a media service provider shall not exceed 50% of the paid -in 
capital. A foreign real or legal person can directly become a partner of a maximum of two media service 
providers. If foreign real or legal persons hold shares in companies that are shareholders of media service 
providers and become indirect partners of the broadcasters, the chair, the deputy chair and the majority 
of the Board of Executive s and the general director of the broadcasting enterprises have to be citizens of 
the Republic of Turkey, and the majority of votes in the general assemblies of broadcasting enterprises 
should belong to real or legal persons having Turkish citizenship. Arr angements ensuring these provisions 
shall be clearly stated in the main contracts of such corporations.  
Domestic or foreign shareholders shall by no means own preference shares.  
Private radio and television enterprises may appoint one or more managers in c harge by considering the 
significance and the specifications of their media services. The manager or managers in charge must be 
Turkish citizens and domiciled in Turkey.  
Aviation  Civil Aviation Law No.  2920; 
Regulation on Commercial Air 
Transport Operatio ns (SHY -6A); 
Regulation on Airport Ground 
Handling (SHY -22) No more than 49% equity participation by foreigners. Licences to operate airlines are only granted to 
locally incorporated companies whose management is under the control of Turkish citizens and t he 
majority of voting shares are owned by Turkish citizens. Airlines, of which the majority of shares are 
controlled by foreigners, are not permitted to carry passengers from one national airport to another.  
To obtain ground handling services licences (A a nd C Group Licences), the majority authorized 
administration and representation of the company must be Turkish. The contract of such a company has 
to guarantee that the votes of its majority shareholders belong to Turkish nationals.  
Maritime 
transportatio n Cabotage Act No. 815; Turkish 
Commercial Code No. 6102  No more than 49% equity participation by foreigners. Cabotage is reserved to national flag carriers. 
Registration of commercial ships is granted only to locally incorporated companies whose managemen t is 
under the control of Turkish citizens, and majority of voting shares are owned by Turkish citizens.  
Port services  Cabotage Act No. 815; Turkish 
Commercial Code No. 6762 (to be 
replaced by Turkish Commercial Code  
No. 6102 on 1 July 2012); 
Privatizati on Law No. 4046; and Law 
No. 5189 of 16  June 2004  Port services are provided under concession agreements.  
Fishing  Fisheries Law No.  1380; By -law on 
Fisheries Products No.  6710; Turkish 
Commercial Code No.  6762 Foreigners may not obtain a fishing licence.  Vessels owned by foreigners also may not register as fishing 
vessels in Turkey, unless owned by Turkish nationals or by companies of which the majority of voting 
shares are owned by Turkish citizens. Enterprises that are established in Turkey in conformit y with the 
legislation on foreign direct investment are subject to prior authorization and licence requirements of the 
Ministry of Food, Agriculture and Livestock.  
According to Communique No. 2012/66 dated 18 August 2012 on Regulation of Fish Hunting, for eign 
persons cannot operate in tuna fishing by renting Turkish vessels.   
  WT/TPR/S/331/Rev.1 • Turkey  
 
- 195 - Sectors  Legal source  Restriction  
Accounting, 
auditing and book -
keeping services  Law No. 3568 on Accountancy, 
Financial Advisory and Certified 
Financial Advisory Services, 1989; 
Statutory Decree No.  660 of 2 
November 2011 on the Organization 
and Duties of the Public Oversight, 
Accounting and Auditing Standards 
Authority  Special permission required. Foreign financial advisors who are citizens of countries that have officially 
codified the principles of the profession of  financial advisory may, under reciprocal conditions, be 
authorized by approval of the Prime Minister upon the proposal of the Ministry of Finance, provided that 
these persons have the qualifications required for Turkish financial advisors and have rights to perform 
similar services in their own countries.  
The Public Oversight, Accounting and Auditing Standards Board announces foreign auditing firms and 
auditors approved to perform statutory audit in Turkey in accordance with the principle of reciprocity in  
the form of lists and records them in the official registry and keeps them open for public access in its 
website.  
Financial sector  Banking Law No.  5411; Bank Cards 
and Credit Cards Law No. 5464; 
Financial Leasing, Factoring and 
Financing Companies Law No . 6361;  
Law on Payment and Securities 
Settlement Systems, Payment 
Services and Electronic Money 
Institutions No. 6493;  
Capital Market Law No. 6362, 
amended by Laws No. 3794 and 4487 
and the relevant Communiqués; 
Financial Leasing Law No.  3226; 
Insurance L aw No.  5684 Special permission required. Permission to establish a bank, which has to be founded in the form of a 
joint-stock company, or to open the first branch of a foreign bank in Turkey, shall be given by the 
Banking Regulation and Supervision Board.  
Only banks which are not authorized to accept deposits and financial leasing companies can engage in 
financial leasing transactions.  
Establishing a financial leasing, factoring and financing company, which has to be in the form of a joint 
stock company, i s subject to prior permission of the Banking Regulation and Supervision Board (Board). 
Permission to operate should also be received following the consummation of establishment.  
All payment and electronic money services can only be conducted by banks and i nstitutions authorized in 
accordance with the Law No.  6493. Payment institutions and electronic money institutions are required to 
be established in the form of joint -stock companies.  
Banks and other institutions are authorized to issue bank cards or credi t cards and required to be 
founded in the form of joint -stock companies in accordance with the Law No. 5464. The card system 
organizations headquartered abroad may open branches or representation offices in Turkey with prior 
consent of the Board, providing  that such offices do not establish a credit card system, do not issue 
cards, and do not enter into merchant agreements.  
The performance of investment services and activities as a regular occupation, business or a professional 
activity requires permission from the Board. Investment services and activities can only be performed by 
investment firms (intermediary institutions as well as other capital market institutions established to 
perform investment services and activities, the establishment and operation principles of which are 
designated by the Board, and banks).  
Banks may not trade in Borsa Istanbul Equities market but they can receive orders to be transmitted to 
licensed intermediary institutions for execution.  
On the collective investment front, portfo lio management companies have exclusive authority on the 
establishment of investment funds (mutual funds) and specialization is ensured in fund portfolio 
management and custody. It is compulsory to have the authorization of the Board for the establishment 
of a portfolio management company and the launching of its activities.  
Collective investment schemes can operate under "semi open -ended", "fully open -ended" and "closed -
ended" structures. Pension funds are founded by private pension companies established i n Turkey.  
Portfolio management and investment advisory services may be performed by non -bank securities 
intermediaries, non -deposit taking banks and portfolio management companies established in Turkey.  
An insurance company or reinsurance company that is t o operate in Turkey must be established as a 
joint-stock company or a cooperative. Foreign insurance and reinsurance companies may also operate in  
  WT/TPR/S/331/Rev.1 • Turkey  
 
- 196 - Sectors  Legal source  Restriction  
Turkey by opening branches, provided that they have not been prohibited in their country of operation. 
Follow ing establishment, insurance and reinsurance companies must obtain an operational licence from 
the Undersecretariat of Treasury; a separate licence is issued for each insurance branch. Other than 
specific exceptions, cross -border supply of insurance servic es is prohibited.  
Mining  Mining Law No. 3213  Foreigners may invest in the mining subsector only through companies established in Turkey in 
conformity with its legislation. (Chapter II(4)). However, exploration and exploitation of boron are 
reserved for t he Government. For uranium and thorium, the public sector may explore and exploit these 
minerals without selling. On the contrary selling of these radioactive minerals may be permitted by the 
Cabinet Council.  
Real-estate 
trading  Land Registry Law No.  2644 Real persons who are citizens of the countries determined by the Council of Ministers can acquire real 
property in Turkey. Foreign national natural persons can acquire all kinds of real property in the area of 
private property (residence, office, land, f ield, etc.).  
A foreign national natural person acquiring a real property without building (land, field, etc.) is obliged to 
develop a project and to submit the project to the relevant ministry for approval within two years.  
A foreign national real person c an acquire a maximum of 30 hectares of real property and limited real 
rights across the country. The Council of Ministers is authorized to double this amount. Foreign national 
real persons can acquire real property and limited real rights up to 10% of the areas subject to private 
property within the district area.  
An incorporated company established abroad as a foreign legal person can acquire real property and 
limited real rights in Turkey. Foreign legal persons other than these incorporated companies (fou ndations, 
associations, etc.) cannot acquire real property and limited real rights cannot be established in favour of 
them.  
Real property acquisitions of incorporated companies established in foreign countries as legal persons 
according to the law of thei r countries are only possible with the provisions of international agreements or 
special laws. There is no restriction on giving a mortgage in favour of foreign trade companies.  
Electricity  Electricity Market Law No.  6446 The total electricity generation amount that a real person or a legal entity of private sector can generate 
through a generation company it controls shall not exceed 20% of Turkey's total electricity generation for 
the previous year.  
The amount of electrical energy which the private secto r legal entities holding a supply licence may 
purchase from generation and import companies shall not exceed 20% of the amount of electrical energy 
consumed within the country within the previous year. Also, the amount of electrical energy to be sold by 
the said legal entities of private sector to end consumers may not exceed 20% of the electrical energy 
consumed within the country within the previous year. By the end of 2013, electricity distributed by 
private distribution companies reached 100% of the tot al market.  
Education  Law No. 5580 on Private Education 
Institutions; Legislation on 
Foundations  Foreign real or legal persons may not set up education institutions unless all students are foreigners. 
International private education institutions may be set  up by real or legal persons upon authorization of 
the Council of Ministers.  
For tertiary education institutions, the majority in the administrative bodies must be Turkish nationals.  
Source:  Information provided by the authorities.  WT/TPR/S/331 /Rev.1  • Turkey  
 
- 197 - 
 
  Table A3. 1 MFN tariff changes January 2012 to December 2015  
Products  Tariff change  Effective date  
Tariff increases    
Hydrogenated palm oil and palm seed oil for technical 
and industrial uses  Increase from zero to 35%  01.01.2012  
Bovine animals  Increase from zero to 15%  06.03.2012  
Certain food products, i.e. potatoes seed; rice for 
sowing; melon seeds; sugar beet seeds; and vegetable 
seeds  Increase from 1% to 5%  22.03.2012  
Live bovine animals  Increase from 20% to 30%  08.07.2012  
Live sheep  Increase from 15% to 30%  08.07.2012  
Live bovine, sheep and goats animals (temporary)  Increase from 30% to 40%  30.10.2012  
Fresh, chilled, and frozen meat (temporary)  Increase from 70% to 100%  30.10.2012  
Melon seeds and vegetable seeds  Increase from 5% to 10 % 01.01.2013  
Coconut oil  Increase from 20% to 31.2%  01.01.2013  
Other coconut oils  Increase from 20% to 46.8%  01.01.2013  
Flat-rolled steel coils  Increase from zero to 10%  01.01.2013  
Alloy steel coils  Increase from zero to 6%  01.01.2013  
Live bovine ani mals (temporary)  Increase from zero to 15%  01.03.2013  
Certain cold rolled products of stainless steel  Increase from 2% to 8%  30.10.2013  
Certain flat rolled products of alloyed steel and flat 
products of other alloyed steel  with a width less than 
600 mm  Increase from zero to 6%  01.01.2014  
Flat rolled products of a width less than 600 mm  Increase from zero to 10%  01.01.2014  
Footwear  Increase up to 50%  10.08.2014  
Dried beans  Increase from zero to 19.3%  03.09.2014  
Certain bar and wire rod of steel  Increase from 3% -15% to  
30%-40%)  18.10.2014  
 
Maltodextrine and maltodextrine syrup  Increase from 25% to 40%  01.01.2015  
Molasses resulting from the extraction or refining of 
sugar  Increase from zero to 31.5%  01.01.2015  
Processed sesamum seeds  Increase f rom 10% to 23.4%  01.01.2015  
Tools, implements, cutlery, spoons, and forks, of base 
metal, parts thereof of base metal  Increase up to 25%  06.02.2015  
Hand-woven carpets  Increase from 8% up to 50%  18.02.2015  
Unwrought aluminum  Increase from %0 to %3 and 
%6 04.08.2015  
Household electrical appliances  Increase up to 10 -30% 07.06.2015  
Travel goods and handbags  Increase up to 30%  20.06.2015  
Steel wire and alloyed bars, other bars  Increase from 0% to 25%  05.07.2015  
Furniture  Increase up to 25 -50% 23.05.2015  
Lightening equipment  Increase up to 20%  07.06.2015  
Tariff reductions/elimination    
Bovine animals  Reduction from 135% to 0%  01.01.2012  
Desiccated coconut  Reduction from 30% to 0%  01.01.2012  
Soya-bean oil  Reduction from 10% to 0%  01.01.2012  
Cocon ut oil  Reduction from 46.8% to 0%  01.01.2012  
Glucose and glucose syrup  Reduction from 135% to 0%  01.01.2012  
Sesamum seeds  Reduction from 23.4% to 10%  01.01.2012  
Maize  Reduction from 30% to 20%  01.01.2012  
Soya-bean oil  Reduction from 19.5% to 5%  01.01.2012  
Tropical nuts, mixtures containing 50% or more by 
weight of Tropical nuts and tropical fruits  Reduction from 58.5% to 20%  01.01.2012  
Manioc (cassava); cereal straw and husks  Reduction from 19.3% to 0%  02.09.2012  
Soya beans not for sowing  Reduction from 8% to 0%  02.09.2012  
Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), 
clover, sainfoin, forage kale, lupines, vetches and similar 
forage products, whether or not in the form of pellets  Reduction from 10% to 0%  02.09.2012  
Bran, sharps and other residues, whether or not in the 
form of pellets, derived from the sifting, milling or other 
working of wheat, other cereals and leguminous plants 
and oilcake and other solid residues, whether or not 
ground or in the form of pellets, resulting fro m the 
extraction of soya -bean oil  Reduction from 13.5% to 0%  02.09.2012  
Wheat starch for the production of bread, pastry, cakes, 
biscuits and other bakers' wares  Reduction from 27 % to 0%  01.01.2013  
Pectic substances for the production of bread, pastry,  
cakes, biscuits and other bakers' wares  Reduction from 25 % to 0%  01.01.2013  WT/TPR/S/331 /Rev.1  • Turkey  
 
- 198 - 
 
  Products  Tariff change  Effective date  
Malt extract for the production of bread, pastry, cakes, 
biscuits and other bakers' wares  Reduction of agricultural 
componet from 21.85 -34.45 
Euro/100kg to zero  01.01.2013  
Chocolate and other food preparations containing cocoa 
for enteral nutrition products  Reduction of agricultural 
component from 68.4 -106.68 
Euro/100kg to zero  01.01.2013  
Flat-rolled products of stainless steel  Reduction from 2% to 0%  01.01.2013  
Coconut oil fo r technical and industrial purposes  Reduction from 10% to 0%  01.01.2015  
Certain vegetable oils and fats for the production of 
cocoa butter equivalent  Reduction from 19.5% to 0%  01.01.2015  
Molasses for the production of pastry feed and goods  Reduction from 31.5% to 0%  01.01.2015  
Iron ores  Reduction from 1% to 0%  01.01.2015  
Certain alloy steel products  Reduction from 6% -15% to 
0% 01.01.2015  
Sesamum seeds  Reduction from 23.4% to 10%  01.01.2015  
Source:  WTO document WT/TPR/OV/W/9, 3 July 2015, WTO sum mary and status of G20 trade and trade -
related measures since October 2008. Viewed at: 
https://www.wto.org/english/news_e/news14_e/trdev_05nov14_e.htm ; and informati on provided  
by the authorities.  WT/TPR/S/331 /Rev.1  • Turkey  
 
- 199 - 
 
  Table A3. 2 New anti -dumping investigations initiated and measures imposed or 
terminated , 2012 -15 
Products concerned  Exporter(s) affected  Status  
Slide fasteners (HS 9607.11; 
9607.19)  Indonesia (possible 
circumvention of anti -dumping 
measures of imports from 
China imposed in March 2005)  Definitive duty imposed on 
27 March  2012 
Vulcanized rubber thread and cord 
(HS 4007.00)  Thailand  Definitive duty imposed on 
27 November 2012  
Granites (HS 6802.23; 6802.93)  India Initiation of investigation on 
31 January 2012. Terminated on 
7 August 2012 (without measure)  
Electric storage water heaters (HS 
8516.10.80)  China, Italy, and Serbia  Initiation of investigation on 
20 March  2012. Definitive duty 
imposed on 19  Septembe r 2013  
Welded stainless steel tubes, pipes 
and profiles (HS 7306.40.20; 
7306.40.80; 7306.61.10)  China and Chinese Taipei  Initiati on of investigation on 
19 April 2012. Definitive duty imposed 
on 15  March 2013  
Diesel engines (HS 8408.90.41)  China and India  Initiati on of investigation on 
3 August  2012. Definitive duty 
imposed on 21  November 2013  
Polyester synthetic staple fibers 
(HS 5503.20.00)  Saudi Arabia  Termination on 1 September 2012 of 
anti-dumping duties (imposed on 
1 September 2007)  
Yarn of man -made or synthetic or 
artificial staple fibres (HS 5508; 
5509; 5510; 5511)  Egypt, Malaysia, Pakistan, 
Thailand, and Viet Nam  Initiation of investigation on 
18 October 2012. Definitive duty 
imposed on 8 April 2014. Terminated 
on 8 April 2014 on imports from Egy pt 
Uncoloured float glass (HS 
7005.29)  Romania  Initiation of investigation on 
27 November 2012. Definitive duty 
imposed on 17 November 2013  
Fittings (HS 7307.19)  Chinese Taipei (possible 
circumvention of anti -dumping 
measures of imports from 
China impose d on 22 January 
2010)  Initiation of investigation 14 December 
2012. Definitive duty imposed on 
26 September 2013  
Aluminium offset printing plates 
(HS 3701.30.00)  Malaysia (possible 
circumvention of anti -dumping 
measures)  Initiation of investigation on 
14 December 2012. Definitive duty 
imposed on 28 September 2013. 
Terminated on 15 November 2013  
Articulated link chain and parts 
thereof (HS 7315.11.90; 
7315.12.00; 7315.19.00)  Malaysia; Korea, Rep. of; and 
Chinese Taipei (possible 
circumvention of anti -dumpi ng 
measures of imports from 
China imposed on 23 May 
2010)  Initiation of investigation on 
14 December 2012. Definitive duty 
imposed on 12 December 2013  
Fully drawn yarn (HS 5402.47)  China, India, and Malaysia  Initiation of investigation on 26 April 
2013. D efinitive duty imposed on 
16 October 2014  
Instantaneous gas water heaters 
(HS 8419.11.00)  China  Initiation of investigation on 5 May 
2013. Definitive duty imposed on 
11 July 2014 
Aluminium offset printing plates 
(HS 3701.30.00)  China  Termination on 15 No vember 2013 of 
anti-dumping duties (imposed on 
15 November 2008)  
Laminated flooring (HS 
4411.13.90; 4411.14.90; 
4411.92.90; 4411.93.90)  Germany  Initiation of investigation on 
18 December 2013. Definitive duty 
imposed on 13 June 2015  
Aluminium foil of a t hickness not 
exceeding 0.2 mm, not backed, 
(HS 7607.11; 7607.19)  China  Initiation of investigation on 
21 December 2013. Definitive duty 
imposed on 26 July 2014  
Polyester textured yarn (HS 
5402.33)  Thailand  Termination on 31 December 2013 of 
anti-dumping d uties (imposed on 
31 December 2008)  
Uncoloured float glass (HS 
7005.29)  Israel  Initiation of investigation on 
10 January 2014. Definitive duty 
imposed on 27 June 2015  WT/TPR/S/331 /Rev.1  • Turkey  
 
- 200 - 
 
  Products concerned  Exporter(s) affected  Status  
Motor hoe (HS 8432.29.90)  China  Initiation of investigation on 26 March 
2014. Definitiv e duty imposed on 
17 April 2015  
Polyvinyl chloride (HS 3904.10)  Italy and Romania  Termination on 25 June 2014 of anti -
dumping duties (imposed on 6 
February 2003)  
Unbleached kraft liner paper (HS 
4804.11.11; 4804.11.15; 
4804.11.90)  China and United States  Initiation of investigation on 22 July 
2014. Definitive duty imposed on 
14 July 2015  
Woven fabrics of synthetic filament 
yarn (HS 5407)  Bulgaria (possible 
circumvention of anti -dumping 
measures of imports from 
China; Korea, Rep. of; 
Malaysia; and Chinese  Taipei 
imposed on 13 February 
2002)  Initiation of investigation on 11 August 
2014 
Woven fabrics of synthetic and 
artificial stable fibres (HS 5513; 
5514; 5515; 5516)  Bulgaria and Poland (possible 
circumvention of anti -dumping 
measures of imports from 
China imposed on 15 February 
2001)  Initiation of investigation on 11 August 
2014 
Cotton (HS 5201)  United States  Initiation of investigation on 
18 October 2014  
Polystyrene (HS 3903.19.00)  Egypt  Initiation of investigation on 
30 November 2014  
Welded stainles s steel tubes, pipes 
and profiles (HS 7306.40.20;  Malaysia and Viet Nam 
(possible circumvention of 
anti-dumping measures of 
imports from China and 
Chinese Taipei imposed on 15 
March 13)  Initiation of investigation on 
12 December 2014  
Granites (HS 6802.23;  6802.93)  Viet Nam (possible 
circumvention of anti -dumping 
measures of imports from 
China imposed on 14 
September 06)  Initiation of investigation on 
12 December 2014  
Safety glass (HS 7007)  China and Israel  Initiation of investigation on 
26 December 2014.  Provisional duties 
imposed on 23 May 2015  
Hot-rolled coil steel (HS 
7208.37.00; 7208.38.00; 
7208.39.00)  China, France, Japan, 
Romania, Russian Federation, 
Slovak Republic and Ukraine  Initiation of investigation on 
28 January 2015. Provisional duties 
imposed on 28 August 2015.  
Sodium formate (HS 2915.12.00)  China  Initiation of investigation on 12 April 
2015 
Seamless tubes, pipes and hollow 
profiles of iron (other than cast 
iron) or steel (HS 7304)  China  Initiation of investigation on 15 May 
2015 
Polyest er textured yarn (HS 
5402.33)  Thailand and Viet Nam  Initiation of investigation on 15 May 
2015 
Chiller (HS 8418.69.00)  China  Initiation of investigation on 20 June 
2015 
BOPP film (HS 3920.20.21)  China, Egypt, India and Saudi 
Arabia  Initiation of investig ation on 
15 October 2014  
Welding machines (HS 8515.39)  China  Initiation of investigation on 25 July 
2014. Definitive duty imposed on 
16 September 2015  
Painted galvanized sheet metal 
(cold rolled) (HS 7210.70)  China  Initiation of investigation on 23 July 
2015 
Cold-rolled stainless steel flats (HS 
7219, 7220)  China and Chinese Taipei  Initiation of investigation on 22 August 
2015 
Mono ethylene glycol (HS 2905.31)  Bulgaria  Termination on 2 May 2015 of anti -
dumping duties (imposed on 2 May 
2010)  
Source:  WTO document WT/TPR/OV/W/9, 3 July 2015 ; and information provided by the authorities.  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Table A3. 3 Anti-dumping measures in force, September 2015  
Brazil     
Tube or pipe fittings     
 27.04.2000  22.05.2012  US$400/tonne  
Bulgaria     
Tube or pipe fittings  07.09.2006  22.05.2012  US$400/tonne  
Woven Fabrics of Synthetic and Artificial Stable Fibers  22.08.2015   0%-87% 
Woven Fabrics of Synthetic Filament Yarn  22.08.2015   21.13% -70.44%  
Canada     
Oriented strand board  18.12.2008  13.11.201 4 14.93%  
China     
Diesel engines  21.11.2013   152.48%, 
165.18%  
Electric storage water heaters  19.09.2013   22%, 49%  
Safety glass  23.05.2015   33.1-63.7% 
(provisional)  
Cored wire of base metal  28.07.2011   21.12%;28.87%  
Welded stainless steel tubes, pipes  and profiles  15.03.2013   13.82%, 25.27%  
Stranded wire ropes and cables  30.12.2006   US$1/kg  
Pre-finished engineered laminated flooring  08.07.2006  31.01.2012  35% 
Wall type split air conditioners and their indoor/outdoor units  26.07.2006  21.03.2012  25% 
Tube or pipe fittings  27.04.2000  22.05.2012  US$800/tonne  
Granites  14.09.2006  10.07.2012  US$174/tonne  
Plywood consisting solely of sheets of wood, each ply not 
exceeding 6mm thickness  20.10.2006  10.07.2012  US$240/m3  
Endless transmission belts of trapezoid al cross -section (V -belts)  31.03.2007  15.03.2013  US$5.04/kg  
Woven fabrics of synthetic and artificial staple fibre  15.02.2001  05.05.2013  87% 
Certain refractory bricks  01.09.2007  15.03.2013  US$145/tonne  
Wall clocks  07.11.2001  05.10.2013  US$2.10/piece  
Certain pocket lighters and fully equipped plastic gas tanks  08.05.2002  26.04.2014  US$0.01 -0.05/ 
piece 
Laminated flooring  30.07.2008  03.05.2014  US$1.60 -2.40/m2  
Woven fabrics of synthetic filament yarn (for clothing)  13.02.2002  21.01.2015  21.13 -70.44%  
Blankets and long pile fabrics of synthetic fibres and others of 
man-made fibres for blankets  08.12.2002  23.01.2014  US$4/kg  
Textured yarn of nylon or other polyamides, measuring per 
single yarn more than 50 tex  05.09.2008  27.03.2014  37.40%  
Tarpaulin made of polyethylene/polypropylene  15.11.2008  11.11.2014  US$1.06/kg  
Hook and loop  13.12.2002  13.11.2014  US$3.86/kg  
Pencils with leads of graphite and crayons encased in a rigid 
sheath  14.01.2003  09.08.2014  US$3.16/144 
pieces  
Polyester textured yarn  31.12.2008  17.12.2014  US$268 -351/ton  
Yarn of man -made or synthetic or artificial staple fibres  12.01.2009  17.04.2015  US$0.49 -0.80/kg  
Certain finished or semi -finished artificial leather  18.04.2009  12.04.2015  US$1.9/kg  
Knives for electromechanical domestic kitchen a ppliances  18.06.2009  23.05.2015  US$20.85/kg  
Stud-link and welded link chain of iron or steel  20.12.2003    
25.07.2009  10.05.2015  US$1,069/  
tonne   
Cylindrical door locks (excluding electro mechanicals)  31.07.2003  16.07.2015  US$4/kg  
Bicycle tyres and tube s 30.04.2003  24.07.2015  US$0.73 -2.02/kg  
Motorcycle tyres and tubes  30.04.2003  25.07.2015  37%-100%  
Polyester synthetic staple fibres  01.09.2007  16.07.2013  US$0.21/kg  
Ball point pens  02.03.2004  22.08.2015  US$0.066/piece  
Pipe fittings  22.01.2010   42.6%; 
US$663/tonne 
lesser duty applied  
Certain made -up textile articles and fabrics made of artificial or 
synthetic fibres  11.04.2010   US$70.44/kg  
Articulated link chain and parts thereof  23.05.2010   US$1200/tonne  
Baby carriages and parts  01.08.2004  23.05.2010  US$8 -12/piece  
Tempered glass lid/cover  20.12.2003  23.05.2010  US$0.91/kg  
Fan coil  31.05.2010   34.27%  
Furniture hinge, mounting plate and drawer slide  07.02.2004  20.07.2010  US$1.64 -0.75/kg  
Metalized yarn  24.09.2004  21.07.2010  US$2.2/kg  
Ropes and cables  (including locked coil ropes)  01.12.2004  21.07.2010  US$1/kg  
Slide fasteners  12.03.2005  30.10.2010  US$3/kg  
Certain textile fabrics, impregnated, coated, covered or 
laminated with polyurethane  05.02.2005  31.10.2010  US$1 -2.2/kg  
Refillable pocket flint lig hters 29.05.1998  31.10.2010  US$0.05/piece  
Tools for drilling and milling  04.02.2005  31.12.2010  US$6 -10/kg  
Glass fibre reinforcement materials  31.12.2010  17.04.2015  24.50% -35.75%  
Pentaerythritol  01.07.2005  03.05.2011  US$270/tonne  
Skid chain for motor v ehicles of iron or steel  20.08.2005  03.05.2011  US$1,500/tonne  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  New pneumatic tires, of rubber (of a kind used on: busses or 
lorries, agriculture or forestry vehicles and machines; 
construction or industrial handling vehicles and other new 
pneumatic tires o f rubber)  20.08.2005  21.06.2011  60% 
Instantaneous gas water heaters  11.07.2014   20.12 -59.65%  
Aluminium foil of a thickness not exceeding 0.2mm, not backed  26.07.2014   22% 
Fully drawn yarn     
 16.10.2014   US$0.15 -0.17/kg  
Motor hoe  17.04.2015   49.49% -92.25%  
Welding Machines  16.09.2015   US$29 -154/piece  
Germany     
Polyvinyl chloride  06.02.2003  10.07.2015  16.44%  
Laminated flooring  13.06.2015   US$0 -1.05/m2  
Hong Kong, China     
Tempered glass lid/cover  23.05.2010   US$0.91/kg  
India     
Diesel engines  21.11.2013   5.71%, 14.38%  
Metalized yarn  24.09.2004  21.07.2010  US$2.2/kg  
Tube or pipe fittings  07.09.2006  22.05.2012  US$305 -400/tonne  
Endless transmission belts of trapezoidal cross -section  
(V-belts)  31.03.2007  15.03.2013  US$3.5/kg  
Yarn of man -made or syn thetic or artificial staple fibres  12.01.2009  17.04.2015  US$0.29 -0.39/kg  
Polyester synthetic staple fibres  29.07.2003  13.11.2014  16.5-23.9%  
Bicycle tyres and tubes  30.04.2003  24.07.2015  US$0.73 -2.02/kg  
Polyester textured yarn  27.06.2000  26.06.2014  6.8-20.3%  
Fully drawn yarn  16.10.2014   US$0.15 -0.17/kg  
Indonesia     
Pre-finished engineered laminated flooring  08.07.2006  31.01.2012  25% 
Tube or pipe fittings  07.09.2006  22.05.2012  US$253 -400/tonne  
Polyester synthetic staple fibres  13.03.2000  16.05.2012  6.2-12% 
Furniture hinge, mounting plate and drawer slide  27.08.2008   US$0.508 -1.39/kg  
Polyester textured yarn  31.12.2008  17.12.2014  US$48 -240/ton  
Yarn of man -made or synthetic or artificial staple fibres  12.01.2009  17.04.2015  US$0 -0.40/kg  
Bicycle tyres and tubes  01.08.2009  24.07.2015  US$0.66 -1.49/kg  
Motorcycle tyres and tubes  01.08.2009  25.07.2015  0%; 19.6% -29% 
Tempered glass lid/cover  23.05.2010   US$0.14 -0.50/kg  
Wall type split air conditioners and their indoor/outdoor units  04.01.2011   25% 
Slide fa steners  27.03.2012   US$3/kg  
Israel     
Safety glass  23.05.2015   34.5% -53.2% 
(provisional)  
Uncoloured float glass  27.06.2015   20-37.57%  
Italy     
Electric storage water heaters  19.09.2013   9%, 16%, 24%  
Korea, Rep. of     
Polyester synthetic staple fibr es 13.03.2000  16.05.2012  6.2%  
Articulated link chain and parts thereof  12.12.2013   US$1,200/ton  
Woven fabrics of synthetic filament yarn (for clothing)  02.06.2006   40% 
Woven fabrics of synthetic filament yarn (for clothing)  13.02.2002  21.01.2015  4.39-40% 
Metalized yarn     
 24.09.2004  21.07.2010  US$2.2/kg  
Malaysia     
Yarn of man -made or synthetic or artificial stable fibres  08.04.2014   11.26% -18.32%  
Articulated link chain and parts thereof  12.12.2013   US$1,200/ton  
Woven fabrics of synthetic filament  yarn (for clothing)  13.02.2002  21.01.2015  2.33-15.93%  
Furniture hinge, mounting plate and drawer slide  27.08.2008   US$0.508 -1.39/kg  
Polyester textured yarn  31.12.2008  17.12.2014  US$276/ton  
Wall type split air conditioners and their indoor/outdoor units  28.02.2009   0%-25% 
Vulcanized rubber thread and cord  29.01.2004  13.06.2015  11.6% -16.9%  
Bicycle tyres and tubes  01.08.2009  24.07.2015  US$0.22 -1.55/kg  
Motorcycle tyres and tubes  01.08.2009  25.07.2015  19.6% -29.6%  
Fully drawn yarn  16.10.2014   US$0.15 -0.17/kg 
Pakistan     
Yarn of man -made or synthetic or artificial staple fibres  08.04.2014   6.62% -12.18%  
Wall type split air conditioners and their indoor/outdoor units  04.01.2011   25% 
Poland     
Woven fabrics of synthetic and artificial staple fibers  22.08. 2015  87% 
Philippines     
Woven fabrics of synthetic filament yarn (for clothing)  18.11.2006   70.44%  
Wall type split air conditioners and their indoor/outdoor units  04.01.2011   25% 
Romania     
Uncoloured float glass  17.11.2013   16-25% 
Dioctyl phthalate  29.11.2011   7.9%; 8.3%  
Russian Federation     
Ropes and cables (including locked coil ropes)  01.12.2004  21.07.2010  US$0.5/kg  WT/TPR/S/331 /Rev.1  • Turkey  
 
- 203 - 
 
  Copper wire rod  09.11.2005  28.07.2011  3% 
Stranded wire, ropes and cables  30.12.2006  21.07.2010  US$0.5/kg  
Serbia     
Electric s torage water heaters  19.09.2013   29% 
Sri Lanka     
Bicycle tyres and tubes  27.09.2004  17.07.2010  50%; 44%  
Chinese Taipei     
Articulated link chain and parts thereof  12.12.2013   US$1,200/ton  
Fittings  26.09.2013   US$800/ton  
Polyester textured yarn  27.06 .2000  27.11.2012  9.9-28.6%  
Woven fabrics of synthetic filament yarn (for clothing)  13.02.2002  21.01.2015  4.17-30.84%  
Furniture hinge, mounting plate and drawer slide  27.08.2008   US$0.508 -1.39/kg  
Hook and loop  13.12.2002  13.11.2014  US$1.83/kg  
Polyester synthetic staple fibres  29.07.2003  13.11.2014  6.4-20.1%  
Bicycle tyres and tubes  27.09.2004  17.07.2010  30%-44% 
Motorcycle tyres and tubes  27.09.2004  17.07.2010  6%-21% 
Metalized yarn  24.09.2004  21.07.2010  US$2.2/kg  
Welded stainless steel tubes, pipes and  profiles  15.03.2013   7.98-14.65%  
Thailand     
Yarn of man -made or synthetic or artificial staple fibres  08.04.2014   7.79% -20.24%  
Tube or pipe fittings  07.09.2006  22.05.2012  US$147 -400/tonne  
Pencils with leads of graphite and crayons encased in a rigid 
sheath  14.04.2007   US$3.16/144 
pieces  
Woven fabrics of synthetic filament yarn (for clothing)  13.02.2002  21.01.2015  2.60-30.93%  
Polyester synthetic staple fibres  29.07.2003  13.11.2014  15.8-22% 
Bicycle tyres and tubes  30.04.2003  24.07.2015  US$0.73 -2.02/k g 
Motorcycle tyres and tubes  30.04.2003  25.07.2015  68%; 100%  
Vulcanized rubber thread and cord  27.11.2012   4.37-8.75%  
Ukraine     
Copper wire rod  08.06.2006  28.07.2011  6.9%  
United States     
Oriented strand board  18.12.2008  13.11.2014  24.10%  
Polyvinyl  chloride  06.02.2003  10.07.2015  18.81%  
Unbleached kraft liner paper  14.07.2015   9.43-19.96%  
Viet Nam     
Yarn of man -made or synthetic or artificial staple fibres  08.04.2014   19.48 -26.25%  
Endless transmission belts of trapezoidal cross -section (V -belts)  31.03.2007  15.03.2013  US$4.55/kg  
Certain pocket lighters and fully equipped plastic gas tank  28.04.2008   US$0.01 -0.05/ 
piece 
Tarpaulin made of polyethylene/polypropylene  15.11.2008  11.11.2014  US$1.16/kg  
Bicycle tyres and tubes  27.09.2004  17.07.2010  30%; 44%  
Motorcycle tyres and tubes  27.09.2004  17.07.2010  29%; 49%  
Wall type split air conditioners and their indoor/outdoor units  04.01.2011   25% 
a Definitive duty, unless otherwise specified.  
 
Source:  Turkey's semi -annual reports to the WTO Committee on Anti-dumping Practices. Viewed at: 
http://www.wto.org/english/tratop_e/adp_e/adp_e.htm ; and information provided by the 
authorities.  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Table A3 .4 Safeguard inves tigations initiated and measures imposed or extended , 
2012 -15 
Date original 
investigation 
published in 
the Official 
Gazette  Product(s) subject 
to investigation  Imposition of safeguard 
measure  Extension of safeguard 
measure  
25.04.2015  Porcelain and ceramic  
tableware and 
kitchenware  Investigation ongoing  n.a. 
12.12.2014  Wallpaper and similar 
wallcoverings  06.08.2015 -06.08.2017  
Application of fixed duty with 
liberalization annually:  
1st period: US$5/kg;  
2nd period: US$4.75/kg;  
3rd period: US$4.5/kg.  
Various  developing countries 
excluded.  n.a. 
05.12.2014  Transmission 
apparatus 
incorporating 
reception apparatus 
(cellular) portable 
telephone  Investigation ongoing  n.a. 
21.06.2014  Printing, writing and 
copying papers  Investigation was completed 
without any meas ures n.a. 
08.01.2013  Terephthalic acid  14.08.2014 -13.08.2016  
Application of variable duty with 
liberalization annually:  
1st period: 4%;  
2nd period: 3.75%.  
Various developing countries 
excluded.  n.a. 
11.03.2011  Polyethylene 
terephthalate  08.11.2011 -07.11. 2014 
Application of variable duty with 
liberalization annually:  
1st period: 8%;  
2nd period: 7.5%;  
3rd period: 7%.  
Various developing countries 
excluded.  08.11.2014 -07.11.2017  
Application of variable duty with 
liberalization annually:  
1st period: 6.75%;  
2nd period: 6.65%;  
3rd period: 6.55%.  
Various developing countries 
excluded.  
02.05.2009  Matches  06.06.2009 -05.06.2012  
Duty implemented against 
imports having a c.i.f. unit price 
lower than a certain threshold 
level.  
1st period: US$1.00;  
2nd period: US$0.95;  
3rd period: US$0.90.  
Various developing countries 
excluded.  06.06.2012 -05.06.2015  
The measure expired on 5 June 
2015.  
Duty implemented against imports 
having a c.i.f. unit price lower 
than a certain threshold level.  
1st period: US$0.85;  
2nd period: US$0.8 0; 
3rd period: US$0.75.  
Various developing countries 
excluded.  
21.10.2008  Cotton yarn  
Turkey terminated 
this measure as of 31 
December 2012.  15/7/2008 -14/7/2011  
Application of variable duty with 
liberalization annually:  
1st period: 20% max. US$1/kg -
min. US$0.35/kg;  
2nd period: 19% max. 
US$0.95/kg -min. US$0.33/kg;  
3rd period: 18% max. 
US$0.90/kg -min US$0.31/kg.  
Various developing countries 
excluded.  15/7/2011 -14/7/2014  
Application of variable duty with 
liberalization annually:  
1st period: 10% max. 
US$0.8 5/kg-min US$0,29/kg;  
2nd period: 9% max. US$0.80/kg -
min US$0.26/kg;  
3rd period: 8% max. US$0.75/kg -
min US$0.23/kg.  
Various developing countries 
excluded.  WT/TPR/S/331 /Rev.1  • Turkey  
 
- 205 - 
 
  Date original 
investigation 
published in 
the Official 
Gazette  Product(s) subject 
to investigation  Imposition of safeguard 
measure  Extension of safeguard 
measure  
19.12.2007  Certain electrical 
appliances  
 
The measures 
expired at 31 October 
2015.  01.11.2008 -31.10.2 011 
Application of a fixed duty for 
imports of products below a 
certain threshold value. 
Liberalization annually:  
1st period: ranged from 
US$5.00 -US$8.00/piece;  
2nd period: ranged from 
US$4.50 -US$7.00/piece;  
3rd period: ranged from 
US$4.00 -US$6.00/piece.  
Various developing countries 
excluded.  01.11.2011 -31.10.2013  
Application of a fixed duty for 
imports of products below a 
certain threshold value. 
Liberalization annually:  
1st period: ranged from US$3.75 -
US$5.70/piece;  
2nd period: ranged from US$3.50 -
US$5.4 0/piece.  
Various developing countries 
excluded.  
 
01/11/2013 -31.10.2015  
Application of a fixed duty for 
imports of products below a 
certain threshold value. 
Liberalization annually:  
1st period: ranges from US$3 -
5/piece;  
2nd period: ranges from US$2.50 -
4.50/piece.  
Various developing countries 
excluded.  
05.06.2007  Travel goods, 
handbags and similar 
containers  08.04.2008 -07.04.2011  
Application of fixed duty with 
liberalization annually:  
1st period: US$3/kg, max. 
US$5/piece;  
2nd period: US$2.90/kg, max. 
US$4.7 5/piece;  
3rd period: US$2.80/kg, max. 
US$4.50/piece.  
Various developing countries 
excluded.  08.04.2011 -07.04.2014 
Application of additional financial 
duty with liberalization annually:  
1st period: US$2.70/kg -max 
US$4.25/piece;  
2nd period: US$2.60/kg -max 
US$4.00/piece;  
3rd period: US$ 2.50/kg -max 
US$3.75/piece.  
Various developing countries 
excluded.  
 
08.04.2014 -07.04.2016 
Application of additional financial 
duty with liberalization annually:  
1st period: US$2.40/kg -max 
US$3.50/piece;  
2nd period US$2.30/kg -max 
US$3.25/piece.  
Eleven tariff lines are no longer 
subject to the measure and 
various developing countries 
excluded.  
11.02.2007  Spectacle frames  05.03.2008 -04.03.2011  
Application of a duty of 
US$3/piece.  
Various developing countries 
excluded.  04.03.2011 -04.03.2014 
Application of a specific duty with 
liberalization annually:  
1st period: US$2.55/piece;  
2nd period: US$2.40/piece;  
3rd period: US$2.25/piece.  
 
05.03.2014 -04.03.2016  
Application of fixed duty 
implemented against imports 
having a c.i.f. unit pric e below 
US$35/piece with liberalization 
annually:  
1st period: ranges from US$1.75 -
US$2.00 per piece;  
2nd period: ranges from US$1.50 -
US$1.75 per piece.  
Various developing countries 
excluded.  WT/TPR/S/331 /Rev.1  • Turkey  
 
- 206 - 
 
  Date original 
investigation 
published in 
the Official 
Gazette  Product(s) subject 
to investigation  Imposition of safeguard 
measure  Extension of safeguard 
measure  
05.01.2006  Footwear  10.08.2006 -09.08.2009  
Application of fixed duty with 
liberalization annually:  
1st period: ranged from 
US$1.50 -US$3/pair;  
2nd period: ranged from 
US$1.40 -US$2.85/pair;  
3rd period: ranged from 
US$1.30 -US$2.70/pair.  
Various developing countries 
excluded.  10.08.2009 -09.08.2012  
The measure expired on 9 August 
2014.  
Application of fixed duty with 
liberalization annually:  
1st period: ranged from US$1.20 -
US$2.55/pair;  
2nd period: ranged from US$1.20 -
US$2.50/pair;  
3rd period: ranged from US$1.20 -
US$2.45/pair.  
Various developing countries 
excluded.  
 
10.08.201 2-09.08.2014  
Application of fixed duty with 
liberalization annually:  
1st period: ranged from US$1.15 -
US$2.40.  
2nd period: ranged from US$1.10 -
US$2.35.  
Various developing countries 
excluded.  
n.a. Not applicable.  
Source:  Turkey's notifications to the WTO Co mmittee on Safeguards.  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Table A3. 5 Communiqués on Product Safety and Inspection, 2015  
Communiqué  Overview  
2015/1  Industrial products within the scope of some Turkish Standards, which are at the same time 
mandated in the domest ic market, are subject to inspection by the Turkish Standards 
Institution (TSE). The inspections are carried out in respect of minimum health, safety and 
protection of environment standards, to provide adequate information to the consumers.  
2015/2  Due to the radiation leakage after the massive earthquake which occurred in early 
March 2011 in Japan, food and agricultural products imported from Japan have been 
controlled for radionuclides since 24 March 2011 and a certificate of radiation issued by the 
Turkish Atomic Energy Authority is required during importation. This Communiqué includes 
the process of these radiation controls.  
2015/3  This Communiqué includes wastes whose import is controlled (Annex -I) or prohibited 
(Annex -II) in accordance with the Europe an Waste Catalogue and the Basel Convention on 
the Control of Transboundary Movements 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 Envir onment and Urbanization. Following the 
conformity assessment procedure, the conformity document, which is required to be 
submitted to the customs authorities during importation, is issued by the aforementioned 
Ministry.  
2015/4  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 aforementioned Ministry.  
2015/5  Communiq ué on Inspection of Import of Products that are Subject to Permission from the 
Ministry of Food, Agriculture and Livestock.  
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 import s of the products . A certificate of conformity is arranged for all products 
in all Appendices by the Ministry of Food, Agriculture and Livestock. Physical controls and 
sample analyses are also carr ied out by the Ministry.  
2015/6  This Communiqué covers importation of chemical products which are listed in its Annex -I. 
The import of all except one of these products is banned. On the other hand, in order to 
import the product with 2903.71.00.00.00 cust oms tariff statistics position, the importer 
must obtain a Control Certificate issued by the Ministry of Environment and Urbanization. 
The documents required to obtain the Control Certificate are stated in the Communiqué, 
such as pro forma invoice, certifi cate of analyses, the label of the product etc. The Control 
Certificate should be submitted to the customs authorities during the import stage. Annex -II 
of this Communiqué comprises the hazardous chemicals whose import is prohibited.  
2015/7  This Communiqu é covers importation of solid fuels listed in its Annex -I. In order to import 
these products, the importer shall receive a Conformity Document issued subsequent to 
analysis carried out by the laboratories which are authorized by the Ministry of Environment  
and Urbanization. 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.  
2015/8  This Communiqué on import controls for  radio and telecommunication terminal equipment is 
implemented as of 1/5/2006 coherent with the EU legislation.  
2015/9  This Communiqué on machinery, low voltage equipment, electromagnetic compatibility, 
pressure equipment, simple pressure vessels, transpo rtable pressure equipment, appliances 
burning fuels, lifts and hot -water boilers are subject to mainly documentation inspection by 
the Turkish Standards Institution (TSE), which was authorized by the Ministry of Industry 
and Trade to carry out these inspec tions, at the import stage. The inspections are carried 
out in respect of essential requirements, which are laid down in the technical regulations.  
2015/10  This Communiqué on import controls for toys is implemented as of 12/12/2005, coherent 
with the EU l egislation.  
2015/11  This Communiqué on the safety controls for imports of personal protective equipment are 
implemented coherent with the EU legislation.  
2015/12  This Communiqué covers importation of some consumer products that are listed in its 
Annex -I and subject to conformity assessment with regard to protection of human health, 
human life and property, environment and consumers. Methods and principles regarding 
import controls are designated by the Ministry of Customs and Trade.  
2015/14  This Communiq ué regulates import controls of construction products such as thermal 
insulation products for buildings, steel bars etc.  
2015/16  This Communiqué regulates import controls of medical devices such as in vitro, active 
implantable medical devices etc.  
2015/1 7 This Communiqué covers importation of forestry material listed in its Annex I. In order to 
import these products, importers must obtain a Control Certificate issued by the Ministry of 
Forestry and Water Affairs in coordination with the Ministry of Food, Agriculture and 
Livestock. The importer should submit the Control Certificate to the custom authorities 
during the import stage.  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Communiqué  Overview  
2015/19  The purpose of this Communiqué is to regulate the principles and procedures with regard to 
the conformity certificatio n regarding market security and health, documentation, 
notification and inspection of the products, which are tobacco, tobacco products, alcohol and 
alcoholic beverages, in importation thereof.  
2015/20  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 should submit the Control Certificate to the customs 
authorities during the import stage.  
2015/21  within the scope of products which must mandatorily be up to specific stand ards with 
respect to quality compliance with the commercial quality standards on exportation. This 
Communiqué lays down principles and procedures relating to risk -based inspections of these 
products with respect to quality compliance with the commercial qu ality standards at export 
stage.  
2015/22  Communiqué on the Classification of Firms with the Purpose of Risk -Based Commercial 
Quality Controls of Exports.  
This Communiqué lays down the principles and procedures regarding the classification of 
firms exporti ng products subject to commercial quality inspections on exports, specifications 
on which the classification is to be based, and the rights and obligations of the firms for 
which the classes are determined, to determine how and how often the products on ex port 
subject to commercial quality inspection shall be subject to commercial quality inspection.  
2015/23  For the importation of scrap metals listed in the Annex I of this Communiqué, the importer 
shall receive a Metal Scrap Importer Document issued by the  Ministry of the Environment 
and Urbanization. The Metal Scrap Importer Document is only given to those firms who are 
licensed by the Ministry in question and have scrap melting facilities. As per the 
Communiqué, import of the metal scraps shall be done on ly at border customs authorities 
with a radiation detection system installed. Annex II of this Communiqué comprises 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 inspection 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 
customs classification etc.  
2015/25  Communiqué on Export and Import Inspections of Cotton (Product Safety and Inspection: 
2012/25) (Offici al Gazette  No. 28317 of 08/06/2012).This Communiqué lays down principles 
and procedures relating to export, import and internal market controls of cotton.  
 
2015/27  This Communiqué lays down principles and procedures relating to the infrastructure 
conditio ns 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/331 /Rev.1  • Turkey  
 
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  Table A3. 6 IPR criminal penalties  
Legislation  Actions constituting a crime  Criminal penalty  
Decree Law No. 556 on 
the Protection of 
Trademarks  Producing goods or rendering services, 
exposing for sale or selling goods by way of 
infringing through  the use of the same or 
similar trademark rights of a third party 
(Article  68/A)  - imprisonment term of between 
one and three years and to pay 
a fine up to twenty thousand 
days 
Removing without authority the sign indicating 
a trademark right rightfully placed  on a product 
or on its packaging (Article 68/A)  - imprisonment term of between 
one and three years and to pay 
a fine up to five thousand days  
Without authority, disposing of trademark 
rights of a third party by way of selling, 
transferring, renting or p lacing as a security 
(Article 68/A)  - imprisonment term of between 
two and four years and to pay a 
fine up to five thousand days  
Law No. 5846 on 
Intellectual and Artistic 
Works  Any person who, by infringing the moral, 
economic and related rights regarding  
intellectual and artistic works protected under 
this Law;  
- adapts, performs, reproduces, changes, 
distributes, communicates to the public by 
devices enabling the transmission of signs, 
sounds or images or publishes a work, 
performance, phonogram or prod uction without 
written permission of right holders or puts up 
for sale, sells, distributes by renting or lending 
or in any other way, buys for commercial 
purposes, imports or exports, possesses or 
stores for non -private use any works adapted 
or reproduced unlawfully (Article 71/1)  - imprisonment from one year to 
five years or a judicial fine  
- gives a title to another person's work as his 
own work (Article 71/2)  - imprisonment from six months 
to two years or a judicial fine. 
Where the offence is committed  
by distributing or publishing, the 
upper limit of the penalty of 
imprisonment shall be five years 
and no judicial fine may be 
imposed  
- cites from a work without referring to the 
source (Article 71/3)  - imprisonment from six months 
to two years or a jud icial fine  
- makes a declaration to the public without 
permission of the right holders concerning the 
content of a work which has not yet been made 
public (Article 71/4)  - imprisonment up to six months  
- gives a reference regarding a work in a 
wrong, i ncomplete or misleading way (Article 
71/5)  - imprisonment up to six months  
- reproduces, distributes, publishes or 
broadcasts a work, performance, phonogram or 
a production by using the name of a well -known 
other person (Article 71/6)  - imprisonment from  three 
months to one year or a judicial 
fine 
- produces, puts up for sale, sells or possesses 
for non -private use programmes and technical 
equipment which aim to circumvent additional 
programmes developed to prevent illegal 
reproduction of a computer pro gramme (Article 
72) - imprisonment from six months 
to two years  
- reproduces a work in contravention of the 
banderole requirements or without a banderole 
and puts it up for sale, sells, distributes or buys 
or accepts due to commercial purposes (Article 
81/4) - imprisonment from one year to 
five years or a judicial fine up to 
five thousand days  
- produces, puts up for sale, sells, distributes, 
buys, accepts or uses counterfeit banderoles 
(Article 81/9)  - imprisonment from three years 
to seven years and a  judicial fine 
up to five thousand days  
- uses duly obtained banderoles on another 
work (Article 81/10)  
- Any person who obtains banderoles by 
collusive behavio urs and without authority - imprisonment from one year to 
five years and a jud icial fine up 
to one thousand and five 
hundred days  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Legislation  Actions constituting a crime  Criminal penalty  
(Article 81/11)  
 - imprisonment from one year to 
three years  
- provides banderoles to unauthorized persons 
(Article 81/12)  - imprisonment from two years 
to five years and a judicial fine 
up to five thousand days  
Source: Information provided by the authorities.  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Table A3. 7 IPR civil remedies  
Legislation  Actions constituting a crime  Civil remedy  
Decree -Law No. 551 on 
the Protection of Patent 
Rights  The following acts shall be considered 
infringement of rights conferred by a patent:  
- using the patented process or selling, 
distributing or commercializing in any other way 
or importing for such purposes or using by 
applying the products directly obtained through 
such patented process; without t he consent of 
the patent holder;  
- enlarging the scope of the rights granted by 
the patent holder on the basis of a contractual 
licence or granted by compulsory licence or 
transferring such rights to third persons, 
without permission;  
- participating in acts foreseen in 
subparagraphs 1 to 4 of this present Article, or 
assisting or inducing/encouraging them or 
facilitating, in any way and under any 
circumstances, their occurrence/perpetration;  
- refraining from declaring the source from 
where and the mann er how the products, found 
in possession and manufactured or 
commercialized, unlawfully, were obtained 
(Article 136)  - request for the cessation of 
the acts in infringement of right 
conferred by a patent,  
- request for remedies of 
infringement and request  for 
compensation of material and 
moral damages/prejudices 
incurred,  
- request for the confiscation of 
products manufactured or 
imported, in infringement of 
rights conferred by a patent, of 
means directly used in 
manufacturing such products 
and of means p ermitting the 
use of a patented process,  
- request for the proprietorship 
over the products and means 
confiscated in accordance with 
subparagraph three of this 
present paragraph. In such a 
case, the value of said products 
shall be deducted from the 
amount  of compensation 
awarded. Where the value of 
the said products happens to be 
above the amount of 
compensation awarded, the 
proprietor of the patent shall 
repay the exc ess balance to 
other party.  
- request for precautionary 
measures for preventing the 
continued infringement of 
rights, conferred by a patent, 
especially modifying the shapes 
of the products and means, or, 
where inevitable for the 
preclusion of acts of 
infringement, the destruction of 
the products and means 
confiscated according to 
subparagraph  three of this 
present paragraph.  
- request the disclosure by 
means of publication, to the 
public and to those related, of 
the court's judgement rendered 
against the party infringing the 
rights conferred by a patent 
who shall bear the costs for 
such publi cation (Article 137)  
- request compensation 
(Article  138) 
- the proprietor of a patent may 
request extra damages where 
the reputation of the invention, 
subject matter of the patent, is 
harmed/prejudiced from the 
manufacturing in a bad or the 
marketing in a n improper 
manner of the patented 
invention, by the party violating 
the rights conferred by the 
patent (Article 142)  WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Legislation  Actions constituting a crime  Civil remedy  
Decree -Law No. 554 on 
the Protection of 
Industrial Designs  The following shall be considered infringement 
of a design right:  
- to transfe r to third parties or to expand rights 
acquired by a licensing contract;  
- to participate, assist, encourage or facilitate in 
whatever form the acts referred in sub -
paragraphs (a) and (b);  
- to abstain from explaining where and how an 
illegally produced and marketed product has 
been obtained when found in possession;  
- seizure of entitlement. (Article 48)  - request for the establishment 
of the existence of an 
infringement -request for the 
prohibition and prevention of 
the acts of infringement  
- request f or remedies of 
infringement and request 
compensation for damages 
incurred  
- request the confiscation of 
products produced or imported 
and of the equipment used 
directly to produce such goods 
which have infringed the rights 
of a registered design  
- request for the proprietorship 
over the products confiscated in 
accordance with subparagraph 
(d); in this case the value of the 
products shall be deducted from 
the compensation awarded. If 
the value of the products turn 
out to be above the 
compensation value award ed, 
the design right holder shall 
repay the balance to the 
infringing party  
- request for enforcement 
measures for the prevention of 
continued infringement of 
rights, in particular request the 
destruction of the products and 
equipment if it is essential fo r 
the preclusion of acts of 
infringement or the prevention 
of alterations on the products 
and equipment confiscated 
according to subparagraph (d)  
- request the disclosure to the 
public and to those related , of 
the courts decision by means of 
publication ; costs of which to be 
met by the offending party 
(Article 49)  
- request compensation 
(Article  50) 
- the design right holder may 
request extra damages for the 
harm incurred from the poor 
quality production of the design 
and improper marketing means 
utilized b y the party infringing 
the design right which were 
detrimental to the reputation of 
the design (Article 54)  
Decree Law No. 555 on 
the Protection of 
Geographical Indications  Following uses of a geographical sign by third 
parties who are not entitled to do so shall be 
considered as infringement:  
- any use of false or misleading indication as to 
the origin, nature or essential qualities of the 
product, on the packaging, on advertising 
material or on documents relating to the 
product,  
- any form of packaging or representation of 
the product which is liable to convey false 
impression as to its origin or any other practice 
liable to mislead the public.  
- to participate or to assist or to encourage or - request for the establishment 
of the existence of an 
infringement,  
- request for the prohibition and 
prevention of the acts of 
infringement on the rights of a 
geographical sign,  
- request for remedies of 
infringement and request 
compensation for damages 
incurred,  
- request the confiscation of 
products produced or marketed WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Legislation  Actions constituting a crime  Civil remedy  
to facilitate in whatever form the acts referred 
in subparagr aphs (a), (b), (c) and (d);  
- to abstain from explaining where and how an 
illegally produced and marketed product has 
been obtained when found in possession. 
(Article 24)  and of the equipment used 
directly produce such goods,  
- request for enforcement 
measures for the prevention of 
continued infringement of 
geographical sign rights, in 
particular request the 
destruction of the products and 
equipment if it is essential for 
the preclus ion of acts of 
infringement or the prevention 
of alterations on the products 
and equipment confiscated 
according to subparagraph (c),  
- request the disclosure to the 
public and to those related, of 
the courts decision by means of 
publication, costs of whic h to be 
met by the infringing party. 
(Article 25)  
- request compensation 
(Article  26) 
Decree -Law No. 556 on 
the Protection of 
Trademarks  Following shall be considered infringement of a 
trademark:  
- use of the trademark in the forms defined in 
Article 9 wi thout consent of the proprietor of 
the trademark,  
- use of the same or confusingly similar 
trademark without the consent of the proprietor 
of the trademark,  
- where being aware or should being aware that 
a mark is plagiarised, sell, distribute or put the 
commercial use or put in the customs area, 
subject to a use or procedure approved by the 
customs or keep in possession for these 
purposes the goods carrying the infringed 
trademark,  
- to transfer to third parties or to expand rights 
acquired by a licensing contract without consent 
of the proprietor of the trademark (Article 61)  - request for the cessation of 
the acts of infringement,  
- request for remedies of 
infringement and request 
compensation for damages 
incurred,  
- request the confiscation of the 
produc ts and the equipment 
and machinery used to produce 
these products, those having 
infringed the trademark right, 
the production and the use 
which is a felony  
- request for the proprietorship 
over the products confiscated in 
accordance with subparagraph 
(c); in this case the value of the 
products shall be deducted from 
the compensation awarded. If 
the value of the products turn 
out to be above the 
compensation value awarded, 
the proprietor of the trademark 
shall repay the balance to the 
infringing party.  
- request for enforcement 
measures for the prevention of 
continued infringement of 
rights, request the erasing of 
the trademark from the 
products and vehicles or if it is 
essential for the preclusion of 
the acts of infringement request 
the destruction of the pr oducts 
and vehicles confiscated 
particularly in accordance with 
subparagraph (c).  
- request the disclosure to the 
public and to those related of 
the courts judgement by means 
of publication, costs of which to 
be met by the offending party. 
(Article 62)  
- request compensation (Article 
64) 
- the proprietor of a trademark WT/TPR/S/331 /Rev.1  • Turkey  
 
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  Legislation  Actions constituting a crime  Civil remedy  
may request extra damages for 
the harm incurred from the 
improper use of trademark by 
the infringing party which were 
detrimental to the reputation of 
the trademark (Article 68)  
Law No. 5846  on 
Intellectual and Artistic 
Works  Infringement of moral and economic rights  - action against the infringer to 
cease the 
infringement.(Article  66) 
- action to prevent the probable 
infringement (Article 69)  
- request compensation for 
moral damages  
To ada pt, reproduce, perform or communicate 
to the public by devices enabling the 
transmission of signs, sounds and/or images 
the work, performance, phonogram or 
productions or who distribute reproduced copies 
thereof without written permission of the author 
pursuant to this Law (Article 68)  - claim the payment of 
compensation of up to three 
times the amount that could 
have been demanded if the 
right had been granted by 
contract, or up to three times 
the current value which shall be 
determined under the 
provision s of this Law  
- if the reproduced copies have 
not been put up for sale, the 
right holder may claim that the 
reproduced copies, films, 
moulds and similar devices 
enabling the reproduction be 
destroyed or be surrendered to 
him in return for equitable 
remuner ation not exceeding 
their production cost price 
(Article 68)  
Source:  Information provided by the authorities.  
__________