RESTRICTED  
  
WT/TPR/S/331  
9 February 2016  
(16-0830)  Page: 1/215  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
TURKEY 
This report, prepared for the sixth Trade Policy Re view of Turkey, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secr etariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (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 to Ms Denby Probst 
(tel.: 022 739 5847), Ms Katie Waters (tel.: 022 739 5067), Ms Mena Hassan 
(tel.: 022 739 6522), and Mr John Finn (tel.: 022 739 5081).  
Document WT/TPR/G/331 contains the policy statement submitted by Turkey. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review  Body on Turkey. This report was drafted in 
English. WT/TPR/S/331 • Turkey 
 
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  CONTENTS 
SUMMARY ...................................................................................................................... 10 
1   ECONOMIC ENVIRONMENT ........................................................................................ 14  
1.1   Recent Econ omic Developments.................................................................................. 14 
1.2   Balance of Payments ................................................................................................. 17 
1.3   Fisca l Policy ........................................................................................................... .. 19 
1.4   Monetary and Ex change Rate  Policy ............................................................................ 20 
1.5   Trade Performance ................................................................................................... 20 
1.6   Foreign Dire ct Invest ment ......................................................................................... 24 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 27  
2.1   Genera l Framework .................................................................................................. 27 
2.2   Trade Poli cy Objectives ............................................................................................. 28 
2.3   Trade Agreements and Arrangements .......................................................................... 30 
2.3.1   Participat ion in the WTO ......................................................................................... 31 
2.3.2   Regional and pr eferential agreements ....................................................................... 31 
2.3.2.1   Customs Un ion with the EU .................................................................................. 31 
2.3.2.2   Reciprocal trade agreements ................................................................................. 33 
2.3.2.3   Unilateral pr eferential regimes .............................................................................. 36 
2.3.3   Other agreements and arrangements ........................................................................ 36 
2.3.3.1   Turkey-Iran Pref erential Trade Agreement .............................................................. 36 
2.3.3.2   Economic Cooper ation Organiza tion (ECO) .............................................................. 37 
2.3.3.3   Develo ping-8 (D-8) ............................................................................................. 37 
2.3.3.4   Organization of Islamic Cooper ation (OIC) .............................................................. 37 
2.3.3.5   Black Sea Econom ic Cooperatio n (BSEC) ................................................................ 38 
2.4   Investme nt Regime .................................................................................................. 38 
2.4.1   Overview  and fram ework ........................................................................................ 38 
2.4.2   Investment policy .................................................................................................. 39 
2.4.3   Investment restrictions ........................................................................................... 40 
2.4.4   Investme nt incentives ............................................................................................ 40 
2.4.4.1   Invest ment schemes ........................................................................................... 40 
2.4.4.2   Inve stment zones ............................................................................................... 42 
2.4.4.2.1   Technology  Developmen t Zone s ......................................................................... 42 
2.4.4.2.2   Organize d Industrial  Zones ................................................................................ 43 
2.4.4.2.3   Free Zones ...................................................................................................... 43 
2.4.5   Investme nt promotion ............................................................................................ 44 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 45  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 45 
3.1.1   Customs procedur es and requirements ..................................................................... 45 
3.1.2   Trade facilitation .................................................................................................... 48 
3.1.3   Custom s valuation ................................................................................................. 49 WT/TPR/S/331 • 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 charge s (ODC s) .......................................................................... 56 
3.1.5.5   Tariff- rate qu otas ................................................................................................ 57 
3.1.5.6   Tariff exemptions ................................................................................................ 58 
3.1.5.7   Fees and charge s for services  rendered .................................................................. 58 
3.1.6   Other charge s 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 petroleum 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 pr oducts ................................................................................... 64 
3.1.6.3.5   SCT on durable consumer goods ......................................................................... 64 
3.1.6.4   Other ta xes and charges ...................................................................................... 65 
3.1.7   Import prohibitions, restrictions, an d licensing ........................................................... 65 
3.1.7.1   Import prohibitions ............................................................................................. 65 
3.1.7.2   Import restri ctions and licens ing ........................................................................... 66 
3.1.8   Continge ncy measures ........................................................................................... 68 
3.1.8.1   Anti-dumping and countervailing measures ............................................................. 68 
3.1.8.2   Safeguard measures ............................................................................................ 69 
3.1.9   Standards and othe r 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 infrastructure ........................................................................................... 73 
3.1.9.6   Market surveillance ............................................................................................. 74 
3.1.9.7   WTO and Bilateral Agreements .............................................................................. 74 
3.1.10   Sanitary and phyt osanitary requ irements ................................................................ 75 
3.1.10.1   Overview and alignment with  the EU .................................................................... 75 
3.1.10.2   Legal overview .................................................................................................. 76 
3.1.10.3   Framew ork ....................................................................................................... 78 
3.1.10.4   Biosafety .......................................................................................................... 79 
3.2   Measures Directly Affecting Exports ............................................................................. 80 
3.2.1   Export procedur es and requirements ........................................................................ 80 WT/TPR/S/331 • Turkey 
 
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  3.2.1.1   Procedures ......................................................................................................... 80 
3.2.1.2   Inward pr ocessing regime .................................................................................... 80 
3.2.1.3   Outward pr ocessing regime .................................................................................. 81 
3.2.2   Export taxes, charges, an d levies ............................................................................. 81 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 81 
3.2.3.1   Export of  strategi c good s ..................................................................................... 81 
3.2.3.2   Export quality co ntrol .......................................................................................... 82 
3.2.3.3   Export prohibitions .............................................................................................. 82 
3.2.3.4   Export licensing .................................................................................................. 83 
3.2.4   Export suppo rt and pr omotion ................................................................................. 86 
3.2.4.1   Export promotion organizations ............................................................................. 86 
3.2.4.2   Export support pr ogrammes ................................................................................. 87 
3.2.5   Export finance, insurance, gu arantees ...................................................................... 87 
3.3   Measures Affectin g Production and Trade ..................................................................... 89 
3.3.1   Busine ss framew ork ............................................................................................... 89 
3.3.1.1   Comme rcial Code ................................................................................................ 90 
3.3.1.2   Regulatory bodies ............................................................................................... 90 
3.3.1.3   SMEs ................................................................................................................. 91 
3.3.2   Incentives, stat e aid, and subsidies .......................................................................... 93 
3.3.2.1   TURQUALITY® .................................................................................................... 96 
3.3.2.2   WTO notifica tions on su bsidies .............................................................................. 96 
3.3.3   Competition policy and price controls ........................................................................ 96 
3.3.3.1   Pric e contro ls ..................................................................................................... 96 
3.3.3.2   Competition policy .............................................................................................. 97 
3.3.4   State trading, state-owned enterprises, and privatization ........................................... 100  
3.3.4.1   State Trad ing Enterprises ................................................................................... 100  
3.3.4.2   State-owned enterprises (SOEs) .......................................................................... 101  
3.3.4.3   Privatization ..................................................................................................... 1 03 
3.3.5   Government  procurement ..................................................................................... 106  
3.3.5.1   Basic legal framework ........................................................................................ 106  
3.3.5.2   Procurement market and statistics ....................................................................... 109  
3.3.5.3   Institutional framework ...................................................................................... 110  
3.3.5.4   Domestic review ............................................................................................... 110  
3.3.5.5   National preferences .......................................................................................... 111  
3.3.5.6   Participation in international agr eements covering government procurement ............. 111  
3.3.6   Intellectual property rights .................................................................................... 111  
3.3.6.1   Legal framework ............................................................................................... 113  
3.3.6.2   International agreements and conventions ............................................................ 117  
3.3.6.3   Border measur es and enfo rcement ...................................................................... 118  
4   TRADE POLICIES BY SECTOR ................................................................................... 121  WT/TPR/S/331 • Turkey 
 
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  4.1   Agriculture ............................................................................................................ 121 
4.1.1   Overview ............................................................................................................ 1 21 
4.1.2   Prod uction .......................................................................................................... 1 21 
4.1.3   Trade .................................................................................................................  123 
4.1.3.1   Overview ......................................................................................................... 12 3 
4.1.3.2   TRQs ............................................................................................................... 124  
4.1.4   Support programmes ........................................................................................... 126  
4.1.5   Strategy and policy .............................................................................................. 129  
4.1.6   Export subsidies .................................................................................................. 131  
4.1.7   Legal framework .................................................................................................. 132  
4.1.8   Major agri culture sectors ...................................................................................... 133  
4.1.8.1   Ha zelnuts ........................................................................................................ 13 3 
4.1.8.2   Li vestoc k ......................................................................................................... 1 33 
4.1.9   Marketing Boards ................................................................................................. 136  
4.1.9.1   Turkis h Grain Bo ard .......................................................................................... 136  
4.1.9.2   Sugar Authority ................................................................................................ 138  
4.1.9.3   Meat and Milk Board (ESK) ................................................................................. 138  
4.1.9.4   Tobacco and Alcohol Market Regulatory Authority (TAPDK) ...................................... 139  
4.1.10   Food Aid ........................................................................................................... 1 39 
4.2   Manufac turing ........................................................................................................ 13 9 
4.2.1   Automotive sector ................................................................................................ 141  
4.2.2   Textiles and clothing ............................................................................................ 143  
4.2.3   Chemicals ........................................................................................................... 144  
4.3   Services ................................................................................................................  146 
4.3.1   Financial services ................................................................................................. 146  
4.3.1.1   Banking ........................................................................................................... 1 47 
4.3.1.2   In suranc e ........................................................................................................ 14 9 
4.3.1.3   Securities ........................................................................................................ 1 50 
4.3.2   Health ................................................................................................................ 155  
4.3.2.1   Overview ......................................................................................................... 15 5 
4.3.2.2   Trade .............................................................................................................. 156 
4.3.2.3   Structure of the sector ....................................................................................... 156  
4.3.2.4   Policy ..............................................................................................................  157 
4.3.2.5   Legal and re gulatory fr amework .......................................................................... 158  
4.3.2.6   Licensing, accreditat ion, and regulato ry aspects .................................................... 159  
4.3.2.7   Incentives ........................................................................................................ 160  
4.3.2.8   Health to urism subsector ................................................................................... 161  
4.3.2.8.1   Health tourism policy ...................................................................................... 161  
4.3.2.8.2   Health to urism incentives ................................................................................ 161  
4.3.2.8.3   Health to urism statis tics .................................................................................. 162  WT/TPR/S/331 • Turkey 
 
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  4.3.2.9   GATS commitments ........................................................................................... 162  
4.3.3   Telecommunications ............................................................................................. 163  
4.3.4   Tourism .............................................................................................................. 169  
4.3.4.1   Overview ......................................................................................................... 16 9 
4.3.4.2   Tourism by the numbers .................................................................................... 169  
4.3.4.3   Framework ....................................................................................................... 170  
4.3.4.4   Policy and strategy ............................................................................................ 170  
4.3.4.5   Types of tourism ............................................................................................... 171  
4.3.4.6   Legal and re gulatory fr amework .......................................................................... 172  
4.3.4.7   Licensing an d classification ................................................................................. 173  
4.3.4.8   Incentives ........................................................................................................ 174  
4.3.4.9   GATS commitments ........................................................................................... 175  
4.3.5   Distribution ......................................................................................................... 175  
4.3.5.1   Regulato ry framew ork ....................................................................................... 176  
4.3.5.2   Market  structure ............................................................................................... 177  
REFERENC ES ................................................................................................................ 182  
5   APPENDIX TABLES .................................................................................................. 184  
 
CHARTS 
 Chart 1.1 Distribution of GDP by indust ry group at current basic pric es, 2014 ........................... 15
 
Chart 1.2 Distribution of GDP by industry  group at current ba sic prices , 2010-14  ...................... 16 
Chart 1.3 Turkey's cu rrent acco unt, 2000- 14 ....................................................................... 17 
Chart 1.4 Composition of merc handise 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 re gime, 2014 ................................................................ 30 
Chart 3.1 Distribution of M FN tariff rates,  2011 and 2015 ...................................................... 52 
Chart 3.2 Average tariff rates, by WTO product catego ry, 2011 an d 2015 ................................ 55 
Chart 4.1 TMO operations, 2011-15 .................................................................................. 137  
Chart 4.2 Evolution of exports for selected  manufacturing produc t groups, 2000-14 ................ 140  
Chart 4.3 Regulatory structure of the financia l markets ....................................................... 147  
Chart 4.4 Domestic visitors and incoming  tourists by purpos e of visi t, 2014 ........................... 171  
 
TABLES 
 Table 1.1 Selected macroeco nomic indicato rs, 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 le gislation in Turkey, December 2015 ............................ 27 
Table 2.2 Turkey's preferenti al trade with the EU, 2011-14 .................................................... 32 
Table 2.3 Overview of Turk ey's FTAs, De cember 2015 ........................................................... 34 WT/TPR/S/331 • 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 Technolo gy Development Zones, 2011-14  ............................................ 43 
Table 2.8 Overview of Free Zones,  2011-14 ......................................................................... 44 
Table 3.1 Structure of MFN tariffs in Tu rkey, 2011- 15 ........................................................... 51 
Table 3.2 Tariff lines where applied tariff rates exceed bound tariff rates, 2015 ......................... 52 
Table 3.3 Turkey's applie d MFN tariff summary , 2015 ........................................................... 53 
Table 3.4 Summary analysis of the Tu rkish preferential  tariffs, 2015 ....................................... 56 
Table 3.5 Turkey's TRQs on industrial products, 2015 ............................................................ 57 
Table 3.6 Key features of conc essional entry schemes, 2015 .................................................. 58 
Table 3.7 VAT rates .......................................................................................................... 59 
Table 3.8 Price list for tobacco and al coholic beverage products, 2015 ..................................... 60 
Table 3.9 SCT re venue, 2011- 14 ........................................................................................ 60 
Table 3.10 SCT as applied to petroleum products, 2015 ......................................................... 61 
Table 3.11 SCT as applied to motor vehicles, aircraft and vessels 2015 .................................... 61 
Table 3.12 SCT on alcoholic beverages, 2015 ....................................................................... 63 
Table 3.13 SCT duties on tobacco prod ucts, 2015 ................................................................. 64 
Table 3.14 SCT duties on durable consum er goods ............................................................... 64 
Table 3.15 Import prohibitio ns, 2015 .................................................................................. 65 
Table 3.16 Imports requir ing a licenc e, 2015  ....................................................................... 67 
Table 3.17 Turkey's main laws and regulation s on technical regulations and standards, 
2015  ......................................................................................................................... ... 71 
Table 3.18 SPS laws and regulations,  2011-1 5 ..................................................................... 77 
Table 3.19 Export prohibitio ns, 2015 .................................................................................. 83 
Table 3.20 Exports requir ing a licenc e, 2015  ........................................................................ 84 
Table 3.21 Export support programmes, 2015 ...................................................................... 87 
Table 3.22 Eximbank overview, 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 re gulatory author ities, 2015 ..................................................... 91 
Table 3.25 Overview of KO SGEB 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 fi les, 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, 
2011-1 4 ....................................................................................................................... .. 99 
Table 3.32 Negative clearanc e and exemptio n, 2011- 14 ........................................................ 99 
Table 3.33 Fines imposed by the TCA,  2011-1 4 .................................................................. 100  WT/TPR/S/331 • 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 en terprises in the Treasury and Privatization 
Portfolio as of 31 October 2015 ........................................................................................ 102  
Table 3.36 Overview of organizations in the privatization portfolio , 2015, by se ctor ................. 104  
Table 3.37 Significant privatization implementations, 2011-30 September 2015 ...................... 105  
Table 3.38 Main amendments to Turkey's  procurement legisl ation, 2011- 15 ........................... 107  
Table 3.39 Procuremen t values, 2010-14 .......................................................................... 109  
Table 3.40 Domestic pref erences, 2010-14 ........................................................................ 109  
Table 3.41 Major procurem ent suppliers , 2010-14 .............................................................. 110  
Table 3.42 Appeals to the Public Procurement Author ity, 2010- 14 ......................................... 111  
Table 3.43 IP stat istics, 2011-14 ...................................................................................... 112  
Table 3.44 Summary of Turkey's protection of intellectual proper ty rights, 2015 ..................... 114  
Table 3.45 Membership in international agr eements, conventions an d treaties , 2015 ............... 117  
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 ......................................................................... 121  
Table 4.2 Major animal  production , 2010-14 ...................................................................... 122  
Table 4.3 Exports of agricu ltural produc ts, 2010-14  ............................................................ 123  
Table 4.4 Imports of agricultural products, 2010-14 ............................................................ 124  
Table 4.5 Autonomous tariff-rate quotas, 2011-15 .............................................................. 125  
Table 4.6 Turkey's  TRQs, 2015 ........................................................................................ 125  
Table 4.7 Turkey's Agricultural Support Programmes, 2015a ................................................. 127  
Table 4.8 Main measures of ag ricultural suppo rt, 2011-14 ................................................... 128  
Table 4.9 Overview of the 2013-17 Strategic Plan ............................................................... 130  
Table 4.10 Turkey's export subsidies, 2013, 2014, and 2015, as notified to the Committee 
on Subsides and Counter vailing Measures ......................................................................... 131  
Table 4.11 Overview of La ws on Agri culture ....................................................................... 132  
Table 4.12 Overview of the livestock sector, 2011-14 .......................................................... 134  
Table 4.13 List of eligible countries for the importation of bovine animals ............................... 134  
Table 4.14 Livestock supp ort programm es, 2015  ................................................................ 135  
Table 4.15 Sugar Authority operations, 2010-15 ................................................................. 138  
Table 4.16 Automotive imports requiring a lice nce, 2015  ..................................................... 142  
Table 4.17 Incentives for investment in the automotive sector .............................................. 142  
Table 4.18 Financial sector in the econom y, 2009-14  .......................................................... 146  
Table 4.19 Banking sector - main indicato rs, 2012-14  ......................................................... 147  
Table 4.20 Top 10 banks in Turk ey by total a ssets, 2014  ..................................................... 148  
Table 4.21 Insurance sector - number of compan ies, 2012- 14 .............................................. 149  
Table 4.22 Main indicators  – Borsa Is tanbul ....................................................................... 151  
Table 4.23 Institutions in th e securities ma rket, 2014 ......................................................... 151  
Table 4.24 Asset Manage ment Comp anies ......................................................................... 154  
Table 4.25 Taxation of selected inve stment instrument s in Turkey ........................................ 154  WT/TPR/S/331 • Turkey 
 
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  Table 4.26 Overview of Turkey 's health serv ices, 2011- 14 ................................................... 155  
Table 4.27 Structure of healthcare sector, 2011-14 ............................................................. 157  
Table 4.28 Turkey's main healthcare laws .......................................................................... 158  
Table 4.29 Investment incentives for certain healthcare subsectors ....................................... 161  
Table 4.30 Health tourism incent ives for compan ies, 2015  ................................................... 161  
Table 4.31 Foreign patients receiving he alth services in Turkey, 2011 -14 ............................... 162  
Table 4.32 Telecommunicati ons indicato rs, 2011- 14 ........................................................... 163  
Table 4.33 Interconnection tariffs of fixe d incumbent operator and mobile network 
operators in net values excluding taxes ............................................................................. 166  
Table 4.34 Main tourism indicators, 2011-14 ...................................................................... 169  
Table 4.35 Overview of Turkey's tourism strategy ............................................................... 170  
Table 4.36 Tourism investment incentives  from the Turkish treasury, 2011-14 ....................... 174  
Table 4.37 Energy support, 2011-15 ................................................................................. 174  
Table 4.38 Profile of the major large retail ers and restructuring in Turkey , 2008 ..................... 178  
Table 4.39 Major retailers (num ber of stores ), 2010-1 2 ....................................................... 180  
Table 4.40 Shopping  malls (S Ms) ..................................................................................... 180  
 
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)  ................................................................ 152  
 
APPENDIX TABLES 
 
Table A1.1 Merchandise exports by product group, 2010-14 ................................................. 184  
Table A1.2 Merchandise imports by product grou p, 2010-1 4 ................................................ 186  
Table A1.3 Merchandise export s by destinatio n, 2010-14  ..................................................... 187  
Table A1.4 Merchandise impo rts by origin , 2010-14  ............................................................ 188  
 
Table A2.1 Turkey's Involvement in Dispute Settlement Cases, 1 January 2012-1 December  2015 .................................................................................................. 189
 
Table A2.2 Selected Notifications to the WTO, 9 November 2011-1 December 2015 ................. 191  
Table A2.3 Foreign direct inve stment restrict ions, 2015 ....................................................... 195  
 
Table A3.1 MFN tariff changes Ja nuary 2012 to Dece mber 20 15 ........................................... 198  
Table A3.2 New anti-dumping investigations initiated and measures imposed or 
terminated, 2012-15 ...................................................................................................... 200  
Table A3.3 Anti-dumping measures  in force, September 2015 .............................................. 202  
Table A3.4 Safeguard investigations initiated and measures imposed or extended, 2012-15 ..... 205  
Table A3.5 Communiqués on Produc t Safety and Insp ection, 2015 ........................................ 208  
Table A3.6 IPR crim inal penalties ..................................................................................... 210  
Table A3.7 IPR civil remedies ........................................................................................... 212  WT/TPR/S/331 • 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 every 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 cu rrent account deficit, although declining, has 
left the country exposed to external shocks in an environment of increased currency and financial 
market volatility coupled with high 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, the 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 contributors to growth, 
while exports contributed negatively.  
3. Trade is an important part of the economy: to tal trade in goods and services grew from the 
equivalent of 48% of GDP in 2010 to 60% in 2014;  and, since 2010, exports increased by 38% to 
US$157.7 billion in 2014 (current prices). The ma jority 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 ma terials 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 export er of services due to its significant surplus in 
travel services. 
4. Turkey's trade policy in terms of preferential tr ade 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 relatively 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 serv ices 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 commitmen ts and disciplines on TBT, SPS, intellectual 
property, competition, 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 developing 
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, tran sfer of proceeds, etc., and has not undergone 
significant revision. However, there have not been  any major changes to investment restrictions 
either and Turkey 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 schemes have been extended, deepened, and broadened over the peri od 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 region. 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, Turkey'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 be tween bound and applied rates. Also, there are WT/TPR/S/331 • Turkey 
 
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  significant differences in the rates of agricultural versus industrial 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 Oper ator (AEO) programme as a trade facilitating 
programme for AEO certified companies. As concerns trade facilitation, Turkey notified its Category 
A commitments under the Agreement on Trade Facilitation, designating all of Section I, Category A for full implementation upon entry into force, exce pt 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 anti-dumping measur es. 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 th ese measures and activity has been high since 
2012 with 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 and 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 consumption 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 half 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 the 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, appr oximately 100 regulations have been put in place 
as secondary legislation. Regarding TBT matters, Turkey revised its regulations in 2012 to conform 
to the EU in the areas of CE marking, conf ormity assessment bodies, and notified bodies. 
11. Both imports and exports are subject to a numbe r 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 control 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 change d 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 review period to require them to establish an internal control system 
and internal audit, and subject them to independ ent external audit. While Turkey continues with 
its privatization policy, there was an initial slowdown in privatizations during 2011-12, which 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 in dustrial products. In 2014, public procurement 
in Turkey accounted for approximately 7% of GD P. Turkey has been an observer to the WTO 
Committee on Government Procurement since June 1996. WT/TPR/S/331 • 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 proper ty indicates 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 number of applications for customs 
action increased significantly during 2011-14; and fo r 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 major world 
producer of agricultural products, ranking 7
th in the world. Turkey maintained a trade surplus in 
agricultural products of approximately US$3 billio n in 2014. Turkey has not notified its domestic 
support or export subsidy programmes to the WTO Committee 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 agricultural 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 produc t and board, play a role in Turkey's trade, 
production, 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 cl othing, 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 Strategy, and 
Turkey Vision 2023 the Government has set out multiple objectives for manufacturing, including increasing production of intermedia te and finished goods in order to, inter alia , reduce the trade 
deficit. 
17. While agriculture and manufacturing remain important parts of the Turkish economy, 
services continues to be the dominant and growin g contributor to GDP, amounting to 65% of 2014 
GDP. Well developed and important services sectors in Turkey include financial services, tourism, 
and telecommunications. The 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 Turk ey's tourism sector has outpaced global tourism 
growth and Turkey ranked 6
th 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 th e 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. 
19. Turkey's healthcare system has undergone many changes in recent years which has 
improved its healthcare system, developed a pr ivate 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 to urism sector had significant growth during the 
period 2011-14, as the total number of foreign patients increased by over 200% while the number 
of patients in private healthcare establishments 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 made 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 pub lic services usually provided by the State. 
20. Distribution services are important to the Tu rkish 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 • Turkey 
 
- 13 - 
 
  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 dominated 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 conti nued to grow over the 2011-2015 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 preferential 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 sectors, 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 • 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$10,390 per capita) in 2014.1 Since 2001, the 
economy grew every year with the exception of 2009. However, since 2009, growth has fluctuated 
from 9.2% in 2010 to 2.1% in 2012. While real GDP growth reached 4.2% in 2013, the economy 
slowed again to 2.9% in 2014, reflecting Turkey's vulnerability to capital inflows and contraction in 
agricultural output due to adverse weather conditions. Furthermore, a declining but still high 
current account deficit has left the country exposed to external shocks in an environment of increased currency and financial market volatility since mid-2013. The recent geopolitical crisis in the region and the associated influx of refugees  also pose challenges to sustained growth for 
Turkey's economy. 
1.2.  In expenditure terms, the main drivers of  growth during the review period have been 
domestic consumption and exports while in sectoral terms, manufacturing and financial services 
contributed most strongly (Table 1.1). In the firs t half of 2015, industrial production, primarily in 
the automobile sector, consumption, and private investment were the main contributors to growth, while exports contributed negatively.
2 Trade has remained an important part of the economy with 
total trade in goods and services growing from the equivalent of 48% of GDP in 2010 to 60% in 
2014. 
Table 1.1 Selected macroeconomic indicators, 2010-15 
2010 2011 2012 2013 20142014  
(Jan-
June)2015  
(Jan-
June)
GDP at current prices (TL billion) 1,099 1,298 1,417 1,567 1,747 839 926
GDP at current prices (US$ 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 0.6d0.9d
Overall balance (% of GDP) -2.8 -0.8 -1.7 -1.4 -2.0 -0.6d0.0d
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://www.worldbank.org/en/country/turkey/overview . 
2 CBRT (2015), Financial Stability Report, May. WT/TPR/S/331 • Turkey 
 
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  2010 2011 2012 2013 20142014  
(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 for 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 Depreciation (-) 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 Tu rkey (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.treasury.gov.tr/en-US/MainPag ; IMF (2014),  Turkey – Staff Report for the 2014 Article 
IV Consultation , IMF Country Report No. 14/329; IMF onlin e information, 'International Financial 
Statistics'. Viewed at: http://elibrary-data.imf.org/DataE xplorer.aspx; and World Bank's World 
Development Indicator database. Viewed at: http://databank.worldbank.org/dat a/views/variableselection/selectvariables.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 contributed 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 indust ry 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%Transportation 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
Othera
 
a Refers to electricity, gas, steam and air cond itioning supply; and water supply, sewerage, waste 
management and remediation activities. 
Source: The Central Bank of the Republic of Tu rkey (CBRT) online information.  Viewed at: 
http://www.tcmb.gov.tr . WT/TPR/S/331 • Turkey 
 
- 16 - 
 
  Chart 1.2 Distribution of GDP by indust ry 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 technicalactivities
Financial and insurance activities
Other servicesServices
a
 
a Refers to electricity, gas, steam and air cond itioning supply; and water supply, sewerage, waste 
management and remediation activities. 
Source: The Central Bank of the Republic of Tu rkey (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 co st of Central Bank funding of 8.1%. Inflation 
trended upwards in 2014 due to the effects 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 in 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 prices, the Food and 
Agricultural Product Markets Monitoring and Evaluation Committee was established.4 
1.5.  Turkey's unemployment rate fluctuated duri ng 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 million new entrants every year. 
1.6.  According to the IMF, Turkish banks are well capitalized, with an average loan-to-deposit 
ratio of 114% in 2014. Bank assets have grown over the review period, and were equivalent to 
114% of Turkey's GDP; and the ratio of non-perfor ming 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 rollover 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 co mbatting 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 November, pp. 19 and 23. WT/TPR/S/331 • Turkey 
 
- 17 - 
 
  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 trilli on; a GDP per capita of US$25,000; and exports of 
US$500 billion. In order to achieve these objectiv es, 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 significant obstacle to the long-t erm 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 intermediate goods coupled with high dependence on energy products
8 (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 to recover gradually. The deficit decreased by nearly 30% in 2014, from US$65.0 billion in 2013 to US$46.5 billion, primarily 
due to: lower oil prices, which drove down the cost of energy imports; a depreciating lira, which 
drove up Turkish exports; and macro prudential me asures that were implemented in order to curb 
excessive credit growth. In 2014-15, 90% of the current account deficit was financed by long-term instruments and foreign direct investment (FDI). In the first nine months of 2015, the current 
account deficit continued to decline, driven primarily by an increase in gold exports and recovery 
in the energy balance, both of which helped improve the foreign trade balance.
9 
Chart 1.3 Turkey's current account, 2000-14 
(US$ billion) 
-100-80-60-40-2002040
2000
2001
2002
2003
20042005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Current account Merchandise trade balance Balance on services
Balance on primary income Secondary income
 
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/exploreeconomies /turkey/~/media/giawb/doin g%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 • 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 -37,198  
      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 Tu rkey (CBRT) online information. Viewed at: 
http://www.tcmb.gov.tr . 
1.11.  In the period ahead, even though the we akening 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 projected 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 for 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 • Turkey 
 
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  1.14.  As a priority, the Government is trying to tackle the current account deficit by improving 
access to inputs for domestic production and increa sing its exports. Under the coordination of the 
Ministry of Economy, Turkey's Input Supply Strate gy (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 econ omic stability, increase domestic savings, lower 
the current account deficit, curb inflation 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 primary 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 period 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 ef fect of increased confidence in the markets, 
interest rates declined, debt maturities were extend ed 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 average in 2007-12. According to its 2016-
18 Medium-Term Programme, Turkey plans to conti nue 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 continues to depend largely on de bt-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 su bdued 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 weak er lira on nominal GDP in U.S. dollar terms. 
According to the authorities, the current account de ficit is expected to decline in 2015 due to lower 
energy costs and lower domestic demand. 
1.18.  Despite relatively strong fiscal indicators, the structural deficit remains large, at about 3% 
of GDP in 2014. Non-discretionary central governme nt primary spending remains about two-thirds 
of total expenditure. Between 2006 and 2013, cent ral 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, according 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 authorities, in order to reduce th e current account de ficit permanently, in particular 
by lessening the dependency of energy imports, prio rity 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 applic ation 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%2Eka lkinma%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 • Turkey 
 
- 20 - 
 
  1.4  Monetary 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 approa ch 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, reserv e 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 helped 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 positive real 
level, which should be sustained to bring both inflation and expectations to target.
15 
1.21.  Due to domestic and global developments th at 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 macroeco nomic 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 one-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 maintained 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 dema nd conditions in the market. The CBRT does not 
have a nominal or real exchange rate target under  this regime. Nonetheless, to curb the risks to 
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 cu mulative exchange rate movements recorded since 
early 2015 and volatilities in energy and food pric es 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 and 
services)-to-GDP ratio of 58.2% on average over  the period (2012-2014). In 2014, Turkey ranked 
21
st among world merchandise exporters (considering the EU member States as one and excluding 
intra-EU trade) and 15th among importers. In services trade, Turkey 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 a llows 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 CB RT, the CBRT had to conduct foreign exchange selling 
auctions to stem depreciation pressures since bank s did not release much fore ign exchange from the ROM 
amid rising costs of domestic funding during the fi nancial 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 with in their borrowing limits 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 the 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, comp ared with TL 2.32:US$1 at end-December 2014 and 
TL 2.10:US$1 at end-July 2014. WT/TPR/S/331 • 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 period: 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 which drove down the cost of energy imports and a deprecia ting 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 products, and trade wi th 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 2010, exports increased by 38% to US$157.7 billion in 2014 (current prices). The 
majority of Turkey's exports are manufactured good s, in particular textiles and clothing (18.5%), 
automotive products (11.1%), chemicals (5.8%) and iron and steel (6.8%) (Table A1.1). 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 co mprise raw materials and intermediate goods 
which feed into the production of higher value-a dded finished goods for export; the principal items 
being machinery and transport equipment (27.2%), mining (15.2%), chemicals (13.5%), and a broad range of consumer goods (Table A1.2). In 2012, Turkish intermediate goods represented 
61.3% of total imports and 51% of total export s 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 significant 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). Despit e 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 almost 10% share of total EU trade followed by the United Kingdom, Italy, France and Spain. As a resu lt of the eurozone crisis and the effect of the 
exchange rate depreciation of the euro against th e dollar, the EU's overall share of Turkey's trade 
has slowly declined during the review period; pr ompting 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, the 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, especially 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 characteri zed by good transport infrastructure (26th), in particular for air 
transport, well-developed logistics services (36th) and easy access to domestic markets (34th) .  Some of t h e  
challenges remain in access to target markets (80th), which remains more restri cted than for most other 
economies, and in greater use of ICTs (76th), which could be achieved by putt ing 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 • Turkey 
 
- 22 - 
 
  the region has led to a decline in exports for 2014-15. Exports to the United States have increased 
from a share 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 inputs 
  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 Tu rkey (CBRT) online information.  Viewed at: 
http://www.tcmb.gov.tr . 
1.33.  During the review period, imports increased from Asia for cheaper raw materials and textiles 
and clothing, in particular from China. Imports fr om China accounted for 10.3% of total imports to 
Turkey in 2014. From the EU, Turkey imports pr imarily automotive parts and accessories; textiles 
and clothing; and chemicals. Turkey is a large im porter 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 ha d 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 Arab Emirates (US$1.4 billion). WT/TPR/S/331 • Turkey 
 
- 23 - 
 
  Chart 1.4 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 b illion  
(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%
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 • Turkey 
 
- 24 - 
 
  Chart 1.5 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 b illion Total:   US$242.2 billionAmericas
5.3%
Other Europe
3.3%
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%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 recipi ent, with a share of 1% of global investment 
inflows; reaching US$12.7 billion in 2014. Turkey has attracted more than US$144.5 billion in FDI 
inflows in the last 10 years (2005-14), more th an 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 rece nt years as well as a decline in direct investment 
inflows from the EU due to the latter's debt and economic crisis.
23 However, in the January-
September period of 2015, FDI inflows have reache d US$12.6 billion which is roughly equal to the 
                                               
23 CBRT (2015), Balance of Payments Report 2015-I,  p. 4. WT/TPR/S/331 • Turkey 
 
- 25 - 
 
  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 FDI in Turkey has fallen by US$18 billion between 2010 
and 2014, from US$181.2 billion in 2010 to US$163.2 billion in 2014, 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$1.17 billion). From 2013 to 2014, total FDI inflows rose by 31.1% 
in manufacturing and by 20.9% in wholesale and retail trade; investments fell by 55% in finance and insurance. Within the manufacturing sector , computers and electronic devices, and food, 
beverages and tobacco products were the leading subsectors in 2014 (Chart 1.6). 
Chart 1.6 Foreign Direct Investment, 2010-14 
(US$ billion) 
024681012141618
020406080100120140160180200
2010 2011 2012 2013 2014FDI inward stock FDI outward stock FDI inflows FDI outflowsStock Flows
 
Source: 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 . 
1.38.  About 60% of companies with international capital operate in Istanbul, where most Turkish 
companies are based. Nearly all investment projects of foreign companies are in the Marmara region (which includes Istanbul), the Aegean re gion, the Mediterranean coast area and the area 
around Ankara. In 2014, European countries accounted for almost 74% of FDI inflows to Turkey, 
followed by Asia at 22%. The Netherlands, the Un ited Kingdom, Azerbaijan, the Russian Federation 
and Germany are the countries with the highest FD I flows to Turkey in 2014. 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 gr oup 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 • Turkey 
 
- 26 - 
 
  1.39.  Turkey has several investment incentives and schemes to promote foreign investment. 
There are five principal incentive schemes with nine different incentive instruments, some restricted to certain regions in Turkey. In 2015, the Government introduced new investment incentives for companies which included, 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 restrictions for foreigners remain, varying by 
sector, size and type of investment (Section 2.4.3). WT/TPR/S/331 • Turkey 
 
- 27 - 
 
  2  TRADE AND INVESTMENT REGIME 
2.1  General Framework 2.1.  Turkey's Government, as a parliamentary de mocratic republic, has shared powers among the 
legislature, executive, and judiciary. Pursuant  to its third Constitution adopted in 1982, the 
executive powers are vested in the President an d Prime Minister and Council of Ministers, the 
legislature is comprised of the Turkish Grand Na tional 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 Mi nisters has an important 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 de velopments have occurred in Turkey's overall 
framework except for changes to the judiciary an d at the local level. In 2014, the number of 
municipalities in Turkey was reduced by mo re than half, from 2,947 to 1,396 as many 
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 of 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 re sponsibility of a variety of ministries, although 
since 2011 it is the Ministry of Economy that 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 not been any significant changes 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 Turk ey, December 2015 
Law Subject Reference 
Law on Customs Tariff 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 
communiqués 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 Relating 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 Safeguards 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 • Turkey 
 
- 28 - 
 
  Law Subject Reference 
Law on Intellectual and Artistic Works Copyright Law No. 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 so urces and information provided by the authorities. 
2.4.  Regarding public-private sector consultation processes, Turkey receives input from NGOs and 
other interested stakeholders 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 interact 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 (YOIKK) is one 
of the well-known public-private dialogue platforms that prioritize the needs of the private sector 
regarding investment regulations. 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 th e Union of Chambers and Commodity Exchanges of 
Turkey, Turkish Exporters Assembly, and several mi nistries. Depending on the agenda of the board 
meetings, other governmental agencies and NGOs may be invited to express 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 shap ed by many instruments for many years including 
the multilateral agreements of the WTO, bilatera l 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 agr eements, 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 Development 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 respectively. 
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 and 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 solidarity, 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 ensuring 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 glob al 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 Minister'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 • Turkey 
 
- 29 - 
 
  and objectives, the Tenth Development Plan identi fied 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 trad e deficit by supporting domestic production and 
educating 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 im port dependency on energy products. 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 re sources at differentiated prices for a period of 
10 years. 
2.10.  More specific trade-related policies impl emented during the period include the Turkish 
Exports Strategy for 2023 and Input Supply Strategy. 
2.11.  The preparatory work for Turkey's Inpu t Supply Strategy (GITES) and its Action Plan 
(2013-2015) commenced in 2010 but was officially 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 impact on the current account deficit. It has been coordinated by a formal body, namely, the Minist ry 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 procurement, 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 planned 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, including: 
‐ the introduction of "strategic investments" in the investment incentive scheme
8; 
‐ 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 value adde d 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 Genera l Implementation of Value Added Tax (VAT) 
regarding the procedure for VAT redemption12; 
‐ a n  a d d i t i o n  t o  t h e  R e g u l a t i o n  f o r  T u r k i s h  I n v e s t m e n t s  A b r o a d  i n  H i g h  T e c h  F i r m s  w i t h  a  
strategic perspective for the supply of inputs13; 
‐ a product-based project, in which specific fi rms are contacted to attract FDI in Turkey; 
‐ the initiation of the work facilitating 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 Council, 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 • Turkey 
 
- 30 - 
 
  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 target 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 improving export performance.  
2.15.  Moving production from low-technology to high-value and high-technology products, and 
export diversification are also part of the strate gy. The specific goals or actions being undertaken 
as part of the plan include: carrying out projec ts 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 inputs 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 preferential tariff treatment based on its trade 
agreements and arrangements. The most important trade regime in terms of the amount of trade 
is its customs union
16 with the EU which accounted for 36% of 2014 imports. Further, 50% of 
import trade took place under WTO MFN, with 32.9% MFN duty-free.17 A relatively small amount 
enters pursuant to Turkey's other free trade ag reements, 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%a
b
a
 
a "Reciprocal trade agreements" cover trade benefiti ng 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 WT O bindings are bound at zero. WT/TPR/S/331 • Turkey 
 
- 31 - 
 
  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 autuhorities, Turkey has 
been committed to the WTO work and negotiations and fully supports liberalization at the 
multilateral level as part of its trade policy. During the review period, Turkey made proposals 
under the 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, Turkey 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 period that have  b e e n  s u p p o r t i v e  o f  t h e  D o h a  R o u n d  i n  w h i c h  
Turkey wanted to re-examine ways to deliver on subjects that were most mature and to foster 
breakthroughs in the Round. Turkey emphasized th e 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 was a third party in 24 disputes (Table A2.1). 
2.20.  Turkey has a mixed compliance with its WT O 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 relationsh ip 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 or igin, standards, customs matters, intellectual 
property, and competition. 
2.22.  Within the context of association relation s between 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 governed 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 afor ementioned FTA, were taken over by the EU as 
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. Prefer ential 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 WT/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 chapte r 26, most of HS chapter 72, and 
7 tariff lines of HS chapter 73. WT/TPR/S/331 • Turkey 
 
- 32 - 
 
  Turkey-EU Association Council. For preferential trad e 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 th e context of the Customs Union, 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 tr ading partner, with 44% of 2014 Turkish exports 
destined to EU markets, and the EU accounting for 37% of Turkish imports. The majority 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$1.7 billion in 2014. While nearly all 
industrial imports have preferential access, the opposite is true for agriculture, with approximately 59% of 2014  agricultural trade covered. (Table 2.2)  
2.25.  In 2014, the World Bank conducted an evaluation of the EU-Turkey Customs Union in which 
it found there were positive economic and trade benefits for both parties. The report highlighted that trade integration between the two parties has increased over the last two decades and provided greater benefits than a free trade agreement. But a changing global economy had shown 
the weaknesses in the customs union and the report recommended reforms in certain areas. In 
particular, the World Bank suggested widening the customs union to cover agriculture and services; reforms to address issues with road transport permits and the use of trade defence 
instruments by both parties; a functioning di spute settlement mechanism; alignment of trade 
agreements with third parties; and reducing the restrictiveness of EU visas for business travellers.
22 
2.26.  Since 1999, further integration steps have been taken as Turkey became a candidate 
country for accession to the EU. As a candidate country, Turkey carried out reforms and the European Council of 2004 confirmed that Turkey fu lfilled the prerequisites for opening accession 
negotiations. Accordingly, the Turkey-EU Intergov ernmental Conference met for the first time in 
October 2005 whereby the accession process was officially initiated. Turkey's EU accession process 
is being conducted in 35 chapters in the context of the Negotiation Framework, and as of December 2015, 14 chapters were open and one chapter was temporarily closed; a further 
14 chapters were blocked due to other reasons. 
Table 2.2 Turkey's preferential trade with the EU, 2011-14 
(US$ 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 
Industrial imports 87,802 84,819 89,672 86,126 
% benefitting from the preferences 100 100 100 100 
a The EU's classification for agricu ltural products (basic and processe d agricultural products) is used. 
b Industrial goods covered by the EU-Turkey Cu stoms 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 online at: 
http://www.worldbank.org/content/dam/Worldbank/document/eca/turkey/tr-eu-customs-union-eng.pdf . WT/TPR/S/331 • Turkey 
 
- 33 - 
 
  2.3.2.2  Reciprocal trade agreements 
2.27.  Turkey has a long history of negotiating free trade agreements since its 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 new 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 Tu rkey, with a combined value of US$13.3 billion of 
2014 imports benefitting from these agreements, thus approximately 5.5% of Turkey's total 
imports. Many of Turkey's FTA partners are relati vely 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 large 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 the 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 parallel 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. Most 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 worl d 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 FTA
23, Turkey embarked on a new pathway for FTAs and has started to include 
commitments 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 will start to include these 
subjects as well. Furthermore, Turkey has initiate d 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 January 2007 until 14 December 2011. 
2.32.  Turkey continues to have an ambitious agen da on FTAs with a number of FTAs completed or 
under negotiation. As of December 2015, Turkey had completed FTA negotiations with the 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, Gulf Cooperation Council, Japan, Libya
24, 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 ag reement pertaining to goods with the Republic of Korea to the WTO 
Committee on RTAs. The recently co ncluded agreements on services an d investment from 26 February 2015 
are pending ratification. 
24 In 2014, negotiations with Libya were stopped due to the ongoing situation in the country. WT/TPR/S/331 • Turkey 
 
- 34 - 
 
  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 
Georgia 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 Comtrade database and info rmation 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 products 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 products 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 products.  Competition, state monopolies  US$907.4 million US$126.1 million WT/TPR/S/331 • Turkey 
 
- 35 - 
 
  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 Services, 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 
  
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, althou gh Korea will retain some 
tariffs on chemical products as well. 
 
Intellectual property, competition, trade and 
sustainable development 
 
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, Malaysia will retain its tariffs on six tariff lines, whereas 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 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  
9 September 2011/1 April 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 informat ion provided by the authorities. WT/TPR/S/331 • Turkey 
 
- 36 - 
 
  2.3.2.3  Unilateral preferential regimes 
2.33.  Turkey, as part of its commitments pursua nt 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 scheme
25 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 co mponents of the processed 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 customs legislation.
26 
2.35.  In terms of country coverage, Turkey is al so 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 excludin g Armenia: on Armenia's accession to the WTO, 
Turkey invoked Article XIII of the Marrakesh Agr eement 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 import regimes of 2014 and 2015. Accordingly, since 2014 countries that were excluded from the EU's GSP regime are also no t 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 fo r 2014 amounted to 8.3% of total imports, with 
GSP imports being the largest contributor, accounting for 91% of unilateral imports or US$18.2 billion. GSP+ imports are the smallest, ac counting 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 Agr eement 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 paymen ts, re-exports, TBT, an d SPS matters. Pursuant 
to the specific commitments undertaken, Turkey ha s granted concessions to Iran on approximately 
140 agricultural products while Iran has gran ted concessions to Turkey on approximately 
125 industrial products. Because of the limited scope , Turkey does not consider it a reciprocal free 
trade agreement. 
                                               
25 Import Communiqué 2015/1, Turkish Official Gazette , 31 December 2014, No. 29222 bis 2. 
26 Ministerial Decree No. 2014/7064, Turkish 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, Philippine s, Ghana, Honduras, India,  Iraq, Kenya, Kyrgyzstan, 
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, Ge orgia, Guatemala, Moldova, Mongo lia, 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, Equatorial Guinea, Eritrea, 
Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiriba ti, Laos, Liberia, Lesotho, Madagascar, Malawi, Mali, 
Mauritania, Myanmar, Mozambique, Niger, Nepal, Rwanda , Samoa, Sao Tome and Principe, Senegal, Sierra 
Leone, Solomon Islands, Somalia, South Sudan, Suda n, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, 
Vanuatu, Yemen, and Zambia.  
28 WTO document WT/L/501, 3 December 2002. WT/TPR/S/331 • 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 
objectives 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 tr ade and investment has included 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 stated 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 goods 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 action for attracting 
investment among ECO members. Tu rkey 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 countries
31 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 cove rs liberalization or elimination of tariffs, 
para-tariffs, and non-tariff barriers. The PTA also contains provisions on MFN treatment, 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 reduction 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 fo r Turkey and, in 2014, Turkey, along with five 
other members, submitted revised lists of offe rs. 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 contracting 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 Cooperation's (OIC) Trade Preferential 
System (TPS), Turkey is one of twelve OIC members
32 to have completed, signed, and ratified the 
legal instruments and submitted 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, Pakistan, and Turkey. 
32 Bahrain, Bangladesh, Jordan, Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, 
Turkey and UAE. WT/TPR/S/331 • Turkey 
 
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  preferential tariff access by providing 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 coveri ng 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 their 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 BSEC
33, is engaged with other members on a 
number of multilateral political and economic initiatives. The BSEC members cooperate in many 
areas including trade and economic development, whereby Ministers declare initiatives 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 notifications 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 foreign 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 framework 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, Turk ey continues to actively promote and encourage 
FDI, and as a result several developments 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 tr eatment, free transfer of proceeds, dispute 
settlement, compensation in the case of expr opriation or nationalization, employment of 
expatriates, and the submission of statistical information. The national treatment 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 according 
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, Russian 
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 • 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 investment 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 provisions on transfer of pr ofits, 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 inve stment regime with it s 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 (see 
Section 2.3.2.2). In this regard, Turkey has signed an Investment Agreement under the 
Framework 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 access 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 Investment 
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 develop policies to increase the attractiveness of 
Turkey's investment environment. YOIKK is co mprised of government (i.e. several Ministry 
undersecretaries) and non-government entities (i.e. five business associations), which contribute 
to the work of 10 technical committees
38, 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 th e private 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 empl oyment incentives, the secured transactions system, 
land allocation for investment, spatial planning, regulations in the railway market, stamp tax, R&D incentives, corporate taxation, capital transfers, export procedures, inward processing permits, 
single window, intellectual property, and credit guarantees.  
2.56.  In this context, the Development of Bu siness 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 th e 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 ag reements 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, Po land, Portugal, Qatar, Romania, Russian Federation, 
Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slov enia, Republic of Korea, Spain, Sweden, Switzerland, 
Syria, Tajikistan, Thailand, Tunisi a, 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 • Turkey 
 
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  2.4.3  Investment restrictions 
2.57.  Restrictions remain on investment in twelve sectors (Table A2.3). The restrictions take 
many forms but often set a minimum or maxi mum 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 incentives 2.58.  In April 2015, the Prime Minister announc ed 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-technolo gy investments were added to the priority 
investments list. Lastly, the benefits from tax deduction support measures during the investment 
period were increased while the total benefit was kept the same. This programme builds on the investment incentive scheme from 2012 to provide additional benefits to certain investments, 
especially those in advanced technologies. 
2.59.  In June 2012 Turkey created its new invest ment 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 in 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 established 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 instru ments, 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 ma chinery 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 cover 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 targeted  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 minimum 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 reduce the reliance on similar imported products. 
                                               
39 Council of Minister'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 • 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 Regions I and II, and 500 thousand TL in Regions III, IV, V, and VI. VAT exemption, customs duty 
exemption, and inco me tax withholding 
support only forRegion 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 under 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 Investment 
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, pharmace uticals, 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 with a high import dependence of 50% or more, and high-tec h 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 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; 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 varied 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 • Turkey 
 
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  Table 2.6 Overview of fixed capital in vestments under the incentive schemes, 
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 additional incentives or provisions to 
attract foreign investors: Technology Developm ent 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 Scienc e, 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 company 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 sp ecialized 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 innova tive 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 subsequent 
Technology Development Zones Implementation Regulation
43, 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 secu rity payments by the Ministry 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, Industry, 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 2004. 
43 Official Gazette  No. 28939 of 12 March 2014. 
44 Law No. 6170 of 2 March 2011. WT/TPR/S/331 • Turkey 
 
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  2.66.  The use of TDZs has grown steadily throug hout 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, onli ne information. Viewed at: 
http://sagm.sanayi.gov.tr/userfiles/file/T GB%20g%C3%BCncel%20d%C 3%B6k%C3%BCmanlar/%C
4%B0statistiki%20Veriler%2026082015.pdf ; and http://sagm.sanayi.g ov.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 boards 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 pursuant 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 structure 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 allo wed 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 currently 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 Law on Free Zones.
47 FZs are considered outside the 
customs territory of Turkey and cater to export-o riented investments as goods are not subject to 
customs rules upon importation into the zones. There are currently 19 FZs operating in Turkey 
adjacent to ports 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 • 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 profits. 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$22.4 billion in 
2014
48 (Table 2.8). Thus, trade through FZs was approximately 10% of Turkey's 2014 imports. 
Trade inflows into the FZs are mainly from the EU, with 35% of total 2014 inflows, and outflows 
are mainly to the Turkish market, 37% of 2014 outf lows, thus the zones have a significant import 
processing component.49 The vast majority of zone activity is for the industrial sector although 
certain service activities such as banking and logistics also take place in FZs. Purchasing and 
selling are the main business activity, followed by production in zones.50 
Table 2.8 Overview of Free Zones, 2011-14 
(US$ million) 
 2011  2012  2013 2014  
Total trade volume  22,646 23,053 23,240 22,432 
Sales to third countries 6,924 7,071 7,701 7,958 
Sales to Turkey 5,800,743 5,753,556 5,161,974 4,683,242 
Employment 54,022 55,938 57,010 61,505 
Total number of companies 2,444 2,407 2,269 2,140 
Total number of foreign companies 474 494 495 496 
Source: Information provided by the authorities. 
2.4.5  Investment promotion 
2.71.  The Investment Support and Promotion Agen cy of Turkey (ISPAT) under the Prime Ministry 
is the agency responsible for investment promotio n in Turkey. It promotes Turkey's investment 
opportunities at the national, regional, and local levels to companies worldwide and provides 
assistance and information. ISPAT is specifically involved in providing market information and 
analysis, assessing conditions, aiding with site se lection, getting licences and work permits, finding 
partnerships, and negotiating with government institutions. 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 incorporated 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 donation s. However, very little, if any, is generated 
from services. 
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 Agencies 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, onli ne information. Viewed at: http://www.ekonomi.gov.tr/portal/content/conn/ 
UCM/uuid/dDocName:EK-070996 . 
49 Ministry of Economy, onli ne information. Viewed at: http://www.ekonomi.gov.tr/portal/content/conn/ 
UCM/uuid/dDocName:EK-070994 . 
50 Ministry of Economy, onli ne 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 • Turkey 
 
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  3  TRADE POLICIES AND PRACTICES 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), togeth er 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, simplified 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 administrative 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 other institutions is to be developed 
through the B İLGE system. For example, the Single Wind ow 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 customs administ rations 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 cargo 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 declarations 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 entry customs office; 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 arri val 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 good s, 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 2011 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 28 473 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 29006 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 • Turkey 
 
- 46 - 
 
  prejudice to the obligations of such persons, th e summary declaration may be lodged by a person 
acting on their behalf or by a third party, wh o can submit the goods to the authorized customs 
office or who can ensure the submission of the goods. The summary declaration must include the 
information prescribed in Annex No. 10 of the Turkish Customs Regulation (i.e. tariff 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 across bord ers". According to the Report, Turkey 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. A ccording to the authorities, the following may 
explain the major discrepancies between the Worl d Bank data and the data obtained by the 
Ministry: data providers may not have had adequa te proficiency in responding to the detailed 
questionnaires covering the entire import/export process; there were no participants from the relevant Customs offices amongst the data provider s; 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 reported 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 hours 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 analys is 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 proc edures 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 good s physically inspected was not available. 
3.9.  Pest risk analyses (PRA) are conducte d on the basis of the WTO and other related 
organizations' procedures. The European and Medi terranean 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 determ ined for that commodity. In accordance with 
Article 13 of the Plant Quarantine Regulation, when plants, plant products and other substances that are intended to be imported are contaminated with any harmful organisms 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 permitted for importation. 
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 customs directorates and may be valid for six years, provided the information 
submitted by the applicant is accurate and comple te, and the declared goods correspond exactly to 
the BTI. Assessments may cease to be valid in the event of nomenclature changes. In this event, the holder of the BTI is notified. 
                                               
4 World Bank Doing Business 2016, online information. Viewed at: 
http://www.doingbusiness.org/data/explor eeconomies/turkey#trading-across-borders . WT/TPR/S/331 • Turkey 
 
- 47 - 
 
  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 requested, or when goods ar e definitively returned back to the applicant, 
shall be paid by the applicant. In parallel to th e regulations of the EU, binding origin information 
(BOI) is offered by Turkey, as set out in Article 9 of the Customs Law. The procedures 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 telecommunications 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 products of animal/vegetable origin  when they enter the Turkish 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 merchandise 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 ma y 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 clothing, 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 certificates.
6 
3.15.  Certain goods may only be imported thro ugh specialized customs offices. The purpose of 
these customs practices are to make the cust oms offices more disciplined; improve customs 
procedures for certain goods and channel these good s 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, Izmir, Me rsin, Derince or Giresun customs directorates; for 
producers of motor vehicles, Mudanya, Gemlik, Esenbo ğa 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, Gemlik, Giresun, Halkal ı, Iskenderun, 
Izmir, Kayseri, Mersin, or Trakya; fertilizers must be imported through customs administrations at 
Antalya, Band ırma, Gemlik, Kap ıkule, Tekirda ğ, Iskenderun, Ambarl ı, Haydarpa şa, Aliağa, Dikili, 
Izmir, Derince, Mersin, Samsun, Ünye, Ankara, Mardin, or Yumurtal ık Ser. Böl; and some solvents 
and petrochemical products must be cleared at the Ankara, Mersin, Adana, Eregli Region of 
Karadeniz, Erenköy, Beylikdüzü Akaryak ıt, Izmir, Alia ğa, Tekirda ğ, Bursa, Gemlik, or G.Antep 
customs directorates. Goods for the food sector must be cleared at Ankara, Alia ğa, Izmir, Adana, 
Bursa, Gemlik, G.Antep, Tekirda ğ, 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 2012, 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 Custom s 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 contai ned in Turkey's previous review, WTO document 
WT/TPR/S/259/Rev.1, 7 Ma rch 2012, Table AIII.1. 
7 This right of appeal is governed by Title XI I (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 pr ovides simplified and harmonized proced ures and standardized model customs 
documents for the temporary importation of goods. It entered into force on 27 November 1993. WT/TPR/S/331 • Turkey 
 
- 48 - 
 
  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, Turkey 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 implemented 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 implementati on 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 te rrestrial border posts, the Ministry of Customs and 
Trade has launched a "one stop shop" pilot projec t 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 passengers, vehicles and drivers carrying cargo. 
3.20.  A similar pilot project is due to be implem ented 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 of the Republic of Turk ey 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/Akta ş – Kartsakhi" and "Posof/Turkgozu – 
Akhaltsikhe"; on details for electronic data ex change regarding the international movement of 
passengers, vehicles and goods; and the technical provision document on the data exchange system. 
3.21.  The Agreement basically aims to render joint services at land customs crossing points of the 
abovementioned border crossing points with a vi ew 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, declar ations 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 regarding the vehicles and goods lodged at the border customs office of the country of exit shal l be forwarded electronically to the country of 
entry, where its authenticity shall be verified. Te chnical studies on the exchange of data between 
the two countries have 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 regi onal customs and trade directorates with which 
they work. If in order and appropriate, they ar e 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. Certificate 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 with 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 questi onnaire contains 108 questions on topics such as: 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 • 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 since 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 necessary controls and sealing activities are also executed at the 
shipping company's facility or facilities. Other bene fits extended to AEO certificate holders are: the 
use of lump-sum or partial guarantees; the right to self-issue A.TR movement certificates and EUR.MED invoice declarations; the ability to submit incomplete declarations and documentation; 
reduced data requirements for summary declar ations; 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 values used are the c.i.f. values by Turkish 
customs. 
3.24.  The hierarchy of alternate valuation method s follows the sequential order laid down in the 
WTO Agreement on Implementation of Articl e VII of the GATT 1994 (the Agreement). The 
Interpretative Notes to the Agreement are incorporated in Turkey's legislation 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. The 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 Regu lation (Article 54). Turkey has applied these 
decisions since 1994, i.e. when the law on the Implementation of GATT Ar tIcle 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 countries 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 applie d 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 Turkish Customs Regulation. 
3.27.  Turkey's preferential agreements (see Sectio n 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 Pa n-European Origin Cumulation 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 extended to the fo llowing 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 Tunisia. 
However, for diagonal cumulation among these partie s 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 mini mum of 500 transit declarations annually. 
14 Article 45 of the Implementing Regulation of Customs Law No. 4458. 
15 Official Gazette  No. 21847 of 12 February 1994. WT/TPR/S/331 • Turkey 
 
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  origin protocol into the FTAs between them.16 For Turkey, the Euro-Med origin 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 noted in Section 2.3.2.3, Turkey offe rs 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 Harm onized Commodity Description 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 Administration constitute d 2.3% of total government tax revenue. 
3.30.  As reported in Turkey's previous review, Law No. 474 on the Customs Tariff Schedule allows 
the Government to increase the applied MFN rate s 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. However, according to the authorities, the statutory tariff is only applied for tariff lines that are unbound in the 
WTO framework or fall outside of the scope of the Customs Union Decision (see Section 2). For 
bound tariff lines or lines covered by the Customs Union, 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 12-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 pr oducts, and watches. The compound duties affect 
mainly processed agricultural products such as yoghurt, bread, pastry and pasta. Variable duties apply to items such as dairy spreads, sugar confec tionary, 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 th e 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% in 2011 to 12.8% in 2015 (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 Admini stration 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 • Turkey 
 
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  Table 3.1 Structure of MFN tariffs in Turkey, 2011-15  
   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 
  Agricultural products (WTO definition) 47.9 49.0 72.1 
  Non-agricultural products (WTO definition) 5.0 5.5 17.6 
  Agriculture, huntin g, 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 a ll tariff lines) .. .. 0.0 
6. Non-ad valorem  tariffs (% of all tariff lines) 1.7 1.7 0.2 
7. Non- ad valorem  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 exceed ing 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 consisting of 16,515 tariff lines (at 12-digit tariff line level). Suspension List (V) an d 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 under 
10%; 7.8% of tariff lines are over 80% (Chart 3.1). 
3.34.  A full comparison between Turkey's bo und and applied rates was not possible due to 
nomenclature differences (Turkey's bound commitment schedule is in the HS 2002 nomenclature, while its applied tariff schedule is based on the HS 2012 nomenclature). Nevertheless, it appears 
that for 47 tariff lines, the applied MFN rates exce ed bound rates (Table 3.2). However, this is 
likely underestimated because 5% of tariff line s could not be compared due to nomenclature 
differences. WT/TPR/S/331 • 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)
 
Note: Figures in parentheses denote the shar e 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. 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
Table 3.2 Tariff lines where applied tari ff rates exceed bound tariff rates, 2015  
 2015 applied 
tariff rates 
(%) Bound 
tariff rates 
(%) 
HS 2938 Glycosides, natural or reproduced by synt hesis, and their salts, ethers, esters 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 • Turkey 
 
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   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    854011000000 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 pr ovided by the authorities and the WTO CTS database. 
3.35.  Turkey's implementation 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 industri es. 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 agricu ltural products (51.1) shows a higher variability 
among tariff rates as well as higher protection (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, vegetables, 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 • Turkey 
 
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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 AV Es 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 • Turkey 
 
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  Chart 3.2 Average tariff rates, by WTO product category, 2011 and 2015  
% 
020406080100120140
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 241 WTO Agriculture
2 Animals and products
3 Dairy products
4 Fruit, vegetables, and 
plants5 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 products14 Minerals and metals15 Chemicals and 
photographic supplies
16 Wood, pulp, paper, and 
furniture
17 Textiles18 Clothing19 Leather, rubber, 
footwear, and travel goods
20 Non-electric machinery
21 Electric machinery
22 Transport equipment23 Non-agricultural 
products
24 PetroleumAverage applied rates
2011 (12.2%) and 2015 (12.8%)
 
Note: Calculations include 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 cont ains 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-agricultural products it is 17.6% 
(Table 3.1). As noted in Turkey's previous re view, significant differences 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 commitments under the Customs Union Decision, Turkey has aligned its 
preferences to third countries with the EU trade re gime (including its GSP scheme). This has led to 
progressive liberalization of all or virtually all tariffs on industrial products (WTO non-agriculture) 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 more than 60% of th e tariff lines for machiner y, 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 • Turkey 
 
- 56 - 
 
  Table 3.4 Summary analysis of th e 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. 
b Non- ad valorem  tariff lines as a percentage of total tariff lines. 
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. 
3.38.  In order to benefit from preferential rate s 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 agreements, and from EU memb er 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 Sche dule, 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 
T u r k e y ' s  p r e v i o u s  r e v i e w  t h e  p o s s i b l e  O D C s  c o u l d  a m o u n t  t o  1 5 %  o f  t h e  c u s t o m s  d u t y  a s  a  
"municipality share", in addition to taxes of 4% for goods arriving by maritime transport (transportation 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 • 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 und er the Turkey-EFTA Free Trade Agreement. 
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 agricult ural 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 
(tons) All 
countries 
38 Miscellaneous 
chemical products 2 0  0 5.7 0-6.5  40,000 (tons All 
countries 
39 Plastics and 
articles thereof 2 0 0 4.7 3-6.5  10,000-
20,000 
(tons) All 
countries 
84 Nuclear reactors, 
boilers, machinery and mechanical appliances, parts 
thereof 1 0
 0 2.2 2.2 450,000 
(pieces) 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 
(pieces) All 
countries 
Source: WTO Secretariat estimates, based on Market Access Map, International Trade Centre, 2014. Viewed 
at: www.intracen.org/marketanalysis , and information provided by the authorities. 
                                               
23 Certain textile products of Belarus and the Democr atic People's Republic of Korea were subject to 
quotas. 
24 The specific products include: certain chemical s, electric lamps and light fittings, refrigerator 
compressors, and parts for television cameras. WT/TPR/S/331 • Turkey 
 
- 58 - 
 
  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 availa ble 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 conc essional entry schemes, 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-finished 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 du ty 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 Ministry  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, foundations established with the purpose of helping disabled persons, associations authorized by the competent authorities and gove rnmental 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 Susp ension 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 in Turkey from 6 to 
12 months without any change except 
normal depreciation due to their use  
n.a. Not applicable. 
Source: Compiled by the WTO Secretariat 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 re view period to fees and charges for customs 
services rendered. All shipments requiring formal clearance by the Turkish customs authorities are 
subject to a bill of lading fee of US$100 per cust oms 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 working 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, cu stoms personnel receive an  allowance for overtime 
work and work carried out on official holidays. Based on Article 122.1.a of the Council of Ministers' Decision WT/TPR/S/331 • Turkey 
 
- 59 - 
 
  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 wi th permission and a li cence granted by the 
Ministry of Health; baby food; blood products ; vaccines; textile and leather products; raw 
materials for pharmacy products; books and simila r publications, services provided in private 
care homes and rest homes, accommodation serv ices offered by hotels , motels, pensions and 
holiday villages, contact lenses, spectacle lenses for glasses, certain excavators and knitting 
machines. 
1% Journals; newspapers; certain agricultural pr oducts 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 co mpanies; goods imported in accordance with 
an investment incentive certificate; exported goods and services; goods in transit; goods 
purchased by tourists; mo bile telephone roaming services prov ided in Turkey for non-resident 
customers, where a reciprocity condition exists; deliveries of goods and services purchased by 
persons/entities engaged in petroleum explorat ion or related to prod uction, construction, 
maintenance and repair of marine, air and rail ve hicles 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 online 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 provided by the 
authorities. 
3.1.6.2  Strip stamps for alcoholic  beverages and tobacco products 
3.45.  Turkey has implemented a strip-stamp re quirement 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 
                                                                                                                                               
No. 2009/15481, the allowance is TL 5 per hour for export transactions and TL 12 for other transactions. 
Trucks carrying Turkish licence plates are charged an overtime fee of TL 12 per truck for export transactions 
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 entitled 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. Labo ratory analysis fees were  published in the Customs 
Regulations of 7 October 2009, Enclosure 24. 
27 According to Article 28 of the Value Added Tax La w, the VAT rate is 10%. However, the Council of 
Ministers is authorized to quadruple this rate and decr ease it to 1%. In addition, the Council of Ministers can 
decide to apply different tax rates fo r different goods and services in wholesale and retail trade within the 
scope of this Article. The last time that the Council of Ministers exercised this 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 • Turkey 
 
- 60 - 
 
  production sites abroad before the products are shipped to Turkey; (ii) in customs areas for 
alcoholic beverages and tobacco products in Turkey; or (iii) at facilities operated by an authorized 
company in the provinces of Istanbul, Izmir, or Me rsin. The price of the strip stamps is the same 
for imported and domestically produced goods, except for beer, where the price difference is due 
to the cost of the stamp paper.29 . The tax has provided for the equalization of code/coded 
label/tax stamp prices for domestic and imported  tobacco and alcoholic beverage products, thus 
eliminating the price discrimination of unit prices fo r 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 authorized 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 banderole (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 Tax (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 prod ucts, followed by tobacco, and then alcoholic 
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 2,057,748 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 increased, 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, bu t is applied during the 
delivery phase. WT/TPR/S/331 • Turkey 
 
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  Table 3.10 SCT as applied to petroleum products, 2015 
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 1.2345/litre to 1.3045/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, pe ntane, methyl tersier butyl ether; 
anti-knock preparations, oxidation inhibitors, gum inhibitors, viscosity improvers, anti-corrosive preparatio ns and other prepared additives for 
mineral oils or other liquids used fo r the same purpose as mineral oils 2.2985/kg 
Certain 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 highest 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); the United States 
has expressed concern that this tax has had a disproportionate effect on its automobile exports.31 
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 pe rsons and more (including driver)   
- Autobus 1 
- Midibus 4 
- Minibus  9 
Motor cars and other motor vehicles principally designed for the 
transport of persons (other than 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 
                                               
31 USTR 2015 Foreign Trade Barriers report. Viewed at: 
http://www.sice.oas.org/ctyindex/USA/USTR_Reports/2015/NTE/2015%20NTE%20on%20FTB.pdf . WT/TPR/S/331 • Turkey 
 
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  Product description  Tax rate 2015 
(%) 
- Of a cylinder capacity exceeding 1,600 cm3 but not exceeding 2,000 
cm3 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 combus tion 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 kW 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 vehicles, other than those principally designed 
for the transport of persons or good s (for example, breakdown lorries, 
fire fighting vehicles, concrete-m ixer lorries, road sweeper lorries, 
spraying lorries, mobile workshops, mobile radiological units) (excluding 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 for 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) (except 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 ex ample, helicopters, ae roplanes); spacecraft 
(including satellites) and spacecraft launch vehicles and vehicles under orbit (only helicopters an d 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 vehi cles that run on electricity, ga s, solar energy etc. Except for 
motor vehicles such as ambulances , prisoner vehicles, funeral vehicl es, fire departme nt lead-vehicles 
that are manufactured for special purposes; compre ssion-ignition piston engine (diesel and semi-
diesel) and spark-ignition piston combustion vehicles  that have been designed to be driven on snow, 
others (golf cars etc.). WT/TPR/S/331 • Turkey 
 
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   Of motor vehicles (except all wheel-driven passeng er 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 calculated by mu ltiplying 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 re cording and registration. 
 Those with maximum load capacity of 4,700 kilogram s 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 authorities. 
3.1.6.3.3  SCT on alcoholic beverages 
3.49.  SCT rates applying to alcoholic beverages ha ve 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 are subject to specific rates, except for beer where the tax 
rate is the higher of 63% or TL 0.8966 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 (inclu ding 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 grapes 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 of 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 alcoholic drinks, liqueurs and 
other alcoholic drinks: those in containers of  less than 2 litres (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 drinks: those in containe rs of more than 2 litres (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 2208.90.48.00.11 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 the authorities. WT/TPR/S/331 • 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 Tobacco Fund. 
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 on 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 201432 
(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; refrigerato rs; 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 apparatu s; hand dryers; smoothing irons); sound and 
video recording apparatus; vide o tapes; disks for laser reading; digital multilayer disks 
(DVDs); digital non-multilayer di sks; radio receiver sets; certai n radio broadcasting receiver 
sets; radios with clocks; monitors and proj ectors; reception 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 prod ucts thereof; printed material sold in plastic 
bags (i.e. brochures, pamphlets,  newspapers); certain tablew are and kitchenware from glass 
ceramics; various items containing/made of lead crystal; manicure and pedicure sets/tools; gold and silver-plated cutlery; portable receiv ers 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 casset te players; sound recording and reproducing 
apparatus; various radio broadcasting receiv er sets; remote control devices; certain 
watchbands; revolvers, pistols and other firear ms/similar devices; vi deo game consoles and 
machines; 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 teleph one sets with receiver 25 
Source: Information provided by the authorities. 
                                               
32 HS Codes 71.01, 71.02, 71.03, 71.04.90.00.00.19,71.05, and 71.06. WT/TPR/S/331 • 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 and 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 varying 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 loan 
amount granted or c.i.f. value of goods. As the lo an 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 RUSF
33, 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%.34 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.35 
3.1.7  Import prohibitions, restrictions, and licensing 3.1.7.1  Import prohibitions 
3.53.  Turkey prohibits the importation of ten broad product categories (Table 3.15). Turkey 
justifies these restrictions under the general ex ceptions and security exceptions provided by 
GATT Articles XX and XXI, i.e. the necessity to protec t 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 Agreem ent 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 instruments 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 
                                               
33 Cabinet Decision No. 2015/7511 of 8 April 2015. 
34 Ministry of Finance online information. Viewed at: http://www.gep.gov.tr/tmp/Gep1.pdf . 
35 Article 6 (4) of Law No. 5602. WT/TPR/S/331 • Turkey 
 
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  Description Invocation of WTO 
Article Domestic/international 
Arms and ammunition, 
propellant powders, prepared 
explosives, fuses, caps igniters 
detonatorsa 
(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 Instruments 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 1925 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 perlites 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 restri ctions and licensing 
3.54.  Various goods are subject to import licensing, inter alia , 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 goods 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 requirements 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 exercising apparatus whic h 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 pose d questions to Turkey in the WTO Committee on 
Import Licensing about its notification circulated in February 2014
36, 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, namely: its regime 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.
37 Turkey has responded in writing to these questions.38 
                                               
36 WTO document G/LIC/N/3/TUR/13. 
37 WTO documents G/LIC/Q/TUR/7, 3 April 2014 and G/LIC/Q/TUR/9, 3 March 2015. 
38 WTO documents G/LIC/Q/TUR/8, 31 October 2014 and G/LIC/Q/TUR/10, 27 April 2015. WT/TPR/S/331 • 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 wi th 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 sa fety controls. Letter 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 effectiv e 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 hydrographical 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 Cartogra phy for othe r 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 suitab ility of imported vehicles 
for highways.  
Civil aircraft-related items 
(Import Communiqué 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 detonators; fireworks and other pyrotechnic items; knives; binoculars, monoculars and telescopic sights for fitting to ar ms; lasers; 
various firearms and munitions. (Import Communiqué 15/1, OG 31.12.2014, No. 29222bis)  Approval required from th e General Directorate of 
Security within the Ministry of Interior. Reason: to protect national security and public safety. 
Various chemical and othe r substances which could 
affect worker health (inc luding 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 31.12.2014, 
No. 29222bis) 
 Approval required from th e Institute of Workers' 
Health and Labour Security 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 capital market instruments; and capital market instruments printed abroad. (Import Communiqué 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 ce rtain exclusions)) 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 confiden ce for the persons in the 
capital markets.  WT/TPR/S/331 • Turkey 
 
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  Description (legal basis and number of tariff 
lines affected) Requirements and rationale 
Fertilizers 
(Import Communiqué 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 Wild Fauna and Flora (CITES) document issued by the Ministry of Food, Agriculture and Livestock or the Minist ry of Environment and 
Urbanization is required for importation. 
Source: WTO document G/LIC/N/3/TUR/14, 28 September 2015 and information provided by the authorities. 
3.1.8  Contingency measures 
3.1.8.1  Anti-dumping and countervailing measures 3.57.  There have been no changes to Turk ey's laws and implementing regulations on 
anti-dumping and countervailing measures over the review period. These are: Law No. 4412/1999 
on the Prevention of Unfair Competition in Im ports; Decree No. 13482/1999 on the Prevention of 
Unfair Competition in Imports, amended by De cree No. 9840/2005; and the Regulation on the 
Prevention of Unfair Competition in Imports, amended in 2002 and 2006. 
3.58.  As reported 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.
39 One anti-dumping investigation has been init iated ex officio 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, if it concurs, will authorize the Directorate General to carry out 
the investigation.
40 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 State Minister in charge of foreign trade affairs 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.
41 
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).42 As of 
September 2015, Turkey had anti-dumping measures in force against 23 WTO Members. China 
was subject to the most numerous measures, foll owed by Indonesia, 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. 
                                               
39 A complaint made "by or on behalf of the domestic industry" must fulfil the re quirements laid down in 
Article 5.4 of the WTO 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 a ffected industry is fragmented with an exceptionally large 
number of producers, provided sufficient evidence exis ts to indicate dumping, injury, and a causal link.  
40 The Board is headed by the Director General or the Deputy-Director General of Imports and 
comprises representatives from the Ministry of Food, Ag riculture and Livestock; th e 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 Chambers of Agricultur e; and the relevant head 
of department in the Directorate Gene ral of Imports. The Directorate Gene ral acts as the secretariat of the 
Board. 
41 WTO document WT/TPR/S/259/Rev.1, 7 March 2012. 
42 WTO statistics on anti-dumping. Viewed at: https://www.wto.org/ english/tratop_e/adp_e/adp_e.htm . WT/TPR/S/331 • Turkey 
 
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  3.60.  Over the review period, there has been considerable anti-dumping activity. Since the 
beginning of 2012, 25 new investigations have been initiated and 14 new measures have been imp os e d ; many of the s e  have  affe c ted  more  than one  W T O Me mb e r (T ab le  A3 .2 ). Ad dit ional ly ,  various existing anti-dumping measures have been extended (Table A3.3). Since 2012, a concern 
has been raised by the United States in a meet ing of the Committee on Anti-Dumping Practices 
about Turkey's investigation on cotton.
43 
3.61.  Turkey continues to impose countervailing duties on PET films originating in India (originally 
imposed on 22 March 2009). These duties range from 4.25% to 21.61%.44 Recently, a 
countervailing investigation has been initiated on 15 May 2015 regarding seamless tubes, pipes and hollow profiles of iron (other than cast ir on) 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. 2004/7305
45, amended by Decree No. 2007/1285046 and the Regulation on Safeguard 
Measures for Imports, as revised in 2011 and 2013.47 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 allowed for interested 
parties to submit their views in writing, prov ide 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 circumstances (rather than two). With respect to the duration and review of safeguard measur es, 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.
48 
3.63.  As reported in Turkey's previous revi ew, the authority to propose, apply and monitor 
safeguard measures rests with the Ministry of Ec onomy. The Board for the Evaluation of Safeguard 
Measures for Imports decides, inter alia , whether to initiate an investigation and whether to adopt, 
review, extend, modify or abolish any provisiona l 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 years unless the measure is extended. The total period of application of a safeguard measure must not exceed ten years.
49 
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.50 
3.65.  Since the beginning of 2012, Turkey has launched five safeguard investigations. At mid-
October 2015, two of these were still ongoing, definitive safeguard measures had been imposed on 
another two, and one investigation was completed with no definitive measure imposed. Existing safeguard measures were extended in eight case s; and of these, one expired in 2014 (footwear) 
and two expired in 2015 (matches and motorcycles) (Table A3.4). On 31 December 2012, ahead 
of schedule, Turkey terminated the safeguard me asure on cotton yarn. The main exporters of the 
products subject to safeguard measures are Paki stan (polyethylene terephthalate); Republic of 
Korea, Spain and Belgium (terephthalic acid); China (travel goods, handbags and similar 
                                               
43 WTO document G/ADP/M/48, 6 August 2015. 
44 WTO document G/SCM/N/281/TUR, 16 March 2015. 
45 Decree No. 2004/7305 published in the Official Gazette  No. 25476 of 29 May 2004.  
46 Decree No. 2007/12850 published in the Official Gazette  No. 26721 of 5 December 2007. 
47 Regulation on Safeguard Measur es for Imports published in the Official Gazette  No. 254486 on 
8 June 2004, revised by the Regulation 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 measures to imports of parts of components of a product subject to a safeguar d measure, or parts or co mponents incorporating the 
value added to be safeguarde d by the imposed measure. 
48 WTO document G/SG/N/1/TUR/3/Suppl.2, 17 December 2013 (amendment to regulation) and 
G/SG/N/1/TUR/3, 16 July 2004 (original text of regulation). 
49 WTO document WT/TPR/S/259/Rev.1, 7 March 2012. 
50 Over the same period India took 19 and Indonesia 16. WTO on line information. Viewed at: 
https://www.wto.org/englis h/tratop_e/safeg_e/SG-MeasuresByRepMember.pdf . WT/TPR/S/331 • Turkey 
 
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  containers; spectacle frames; and certain electrical appliances); and Republic of Korea (wallpapers 
and similar wallcoverings). 
3.66.  Over the review period, Turkey has re sponded to questions 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.51 
More recently 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 reception apparatus (cellular) 
portable telephone.
52 
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.53 Following a 
later decision by Ukraine to liberalize these safe guard measures, Turkey also decided to liberalize 
its proposed suspension of concessions on walnuts.54 
3.1.9  Standards and other technical requirements 
3.1.9.1  Developments 
3.68.  During the review period Turkey has co ntinued to focus on harmonizing its technical 
legislation with that of the EU, a process that ha s been ongoing for more than a decade within the 
framework of the Turkey–EU Association Council De cision 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 EU is prepared. Prior to this harmonization effort, Turkey was 
implementing national 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.
55 Those 
amendments were not significant and they were to  further integrate regulations on product safety 
and provide greater transparency. 
3.1.9.2  Policy and framework 3.70.  The Ministry of Economy has the overall resp onsibility for coordinating technical regulations 
in Turkey. It 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 Legislation 
 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 Mi nistry 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). 
                                               
51 WTO documents G/SG/Q2/TUR/6/Rev.1, 11 May 2012 and G/SG/Q2/TUR/6, 4 May 2012. 
52 WTO document G/SG/M/46, 24 March 2015 and WTO document G/SG/M/47, 1 September 2015. 
53 WTO document G/L/1028 and G/SG/N/12/TUR/4, 12 June 2013. 
54 WTO document G/L/1028/Suppl.1 and G/SG /N/12/TUR/4/Suppl.1, 4 August 2014. 
55 Decree No. 2013/4284. WT/TPR/S/331 • Turkey 
 
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  Box 3.1 Government bodies and their area of activity on TBT matters  
Ministry of Science, In dustry 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 Trade 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, notificati on, and transparency of technical regulations for 
foreign trade. Regulations, communiqués, and the in structions given to the related authorities by 
the Ministry of Economy concerning foreign trade are published pursuant to 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 3.17). Turkey's communiqués are 
numerous, with many being issued in 2015, and ea ch one regulates 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 and every year in  December they are republished by the public 
authorities (Table A3.5). 
Table 3.17 Turkey's main laws and regulation s 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 conformi ty 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 minimum 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 
assessment 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 information ex change 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 • 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 taking 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 technical legislation in the non-harmonized area and inserting of the mutu al 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, on line information. Viewed at: 
http://www.economy.gov.tr/portal/faces/oracle/we bcenter/portalapp/pages/content/htmlViewer.jsp
x?contentId=UCM%23dDocName%3AEK-175590&pare ntPage=urun&contentTitle=General%20 
Rules%20and%20Procedures%20on%20Technical%2 0Regulations%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%2523dDo cName%253AEK-175590%26parentP age%3Durun%26content 
Title%3DGeneral%2BRules%2Band%2BProcedures %2Bon%2BTechnical%2B Regulations%2Band%2
BStandarts%26_afrWindowMode%3D0%26_adf.ctrl-state%3Da372itc7m_254 , and information 
provided by the authorities. 
3.74.  Turkey prepares technical regulations base d 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-ha rmonized 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 fr om Turkey stem from the Customs Union. The 
Commission interpretative communication No. 2003/C 265/02 makes it clear that the member 
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 the EU to the public 
authorities. 
3.1.9.3  Alignment with the EU 
3.75.  At the horizontal level, Turkey has mainta ined legislation since 2002 to align itself with 
EU legislation.
56 Pursuant to changes by the EU in 2008,  Turkey revised its regulations in 2012 to 
conform in the areas of CE marking, conformity assessment bodies, and notified bodies. 
3.76.  Further, the relevant Turkish authorities ha ve 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 Directive 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 le gal system in 2002, and since 2004 Turkey has 
participated in this notification system. Since that time, Turkey has notified 58 national laws to the Commission as being non-harmonized. Since the re peal 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 plat form for the parties to discuss and look for 
                                               
56 Law No. 4703. WT/TPR/S/331 • Turkey 
 
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  mutually agreed solutions to 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 legislation. 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 process, 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 relie s on product-specific communiques for the rules, 
conditions, and required documents for products to  be imported into Turkey. The product-specific 
communiques are published annually. 
3.81.  In 2011, Turkey started pilot implementati on of a risk-based trade control system, TAREKS, 
to carry out safety checks on imported and expo rted goods on the basis of risk. Consequently, 
since January 2012, conformity assessment of cert ain 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 appliances 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 ch ecking each product at each arrival at customs. 
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 for 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 qualit y infrastructure 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 been active in this area since th e 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 Electrotechnical 
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 recognized 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 Turkish 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, Turk ey's Conformity Assessment Association (UDDer) 
was established in 2006 as an umbrella organizati on for conformity assessment bodies in Turkey. 
It has 87 members representing different stakeholders. UDDer's main roles are to support development of conformity assessment in Turkey, conduct studies to make conformity assessment WT/TPR/S/331 • Turkey 
 
- 74 - 
 
  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 national 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 market 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 associations participate as observers to its meetings. The Market Surveillance and Product Sa fety 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 adop ted 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 prov ides the legal framework for market surveillance 
activities in Turkey.
57 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 announcement procedures for unsafe products are clearly set, 
and the procedures of communication with the pr oducers/distributors about the measures already 
taken or to be taken are included in the Regulation. With these amendments some provisions of the Regulation 765/2008 regarding market survei llance are transposed into the Turkish legal 
order. 
3.91.  In order to improve the reporting of in formation about unsafe or non-compliant products, 
the Ministry of Economy established the Nation al Market Surveillance Information System 
(PGDBİS) in July 2013.
58 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 Turkey. 
3.1.9.7  WTO and Bilateral Agreements 
3.92.  Turkey's DG Product Safety and In spections 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 the WT O. 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 beverages, was raised as a specific trade concern by other Members.
59,60 
3.93.  As of July 2015, Turkey signed technical cooperation agreements on technical regulations, 
standardization, conformity assessment, metrol ogy and accreditation with China, Ukraine, 
Lebanon, Bulgaria, Iran, Azerbaijan and Israel. Turkey's policy is to sign technical cooperation 
                                               
57 Regulation No. 2001/3529, Official Gazette  No. 24643 of 17 January 2002. 
58 Official Gazette  No. 28720 of 27 July 2013. 
59 WTO documents G/TBT/N/TUR/41 and G/TBT/N/TU R/42, 6 August 2013; G/TBT/N/TUR 41/Add.1 and 
G/TBT/N/TUR/42/Add.1, 29 August 2013; an d G/TBT/N/TUR/41/Add.2, 25 March 2014. 
60 WTO TBT Information Management System online database. WT/TPR/S/331 • Turkey 
 
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  agreements with countries that play an import ant 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 facilitating free circulation 
of goods between Turkey and EFTA by mutually recognizing their conformity assessment bodies. 
The Protocol covers all harmonized product sector s traded between EFTA states and Turkey and to 
sectors covered by the EC-Swiss MRA. Under th e 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 have 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 implementation 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 particular its Annex I, contains detailed legislative measures to be taken.  
3.97.  Turkey has transposed and implemented so me of the EU legislation covered under Chapter 
12. The remaining EU legislation will be transposed and implemented progressively in line with the 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 third 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 th e necessary 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 expe cted to be directly applied by the Ministry 
of Food, Agriculture and Livestock (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 • Turkey 
 
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  requirements for aquaculture animals and prod ucts thereof, and on the prevention 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 Council 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 ca prine 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; 
 R e g u l a t i o n  o n  S t r u g g l e  w i t h  B r u c e l l o s i s ,  i n  a c c o r d a n c e  w i t h  E U  C o u n c i l  D i r e c t i v e  
No. 64/432/EEC and EU Council Directive establishing 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 "Executes Financial Measures in the Community for Eradication of Brucellosis in sheep and goats" 
and "Animal Health Issues that affect Intra-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 Directiv e establishing 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 Council Directive concerning the protection of animals kept for farming purposes No. 98/58/EC;  
 Regulation on Minimum Standards Regarding Pr otection of Laying Hens, in accordance 
with EU Council Directive laying down minimum standards for the protection of laying 
hens No. 1999/74/EC and with EU Council Dire ctive 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 he alth; and animal health, welfare, and zootechnics. 
The main elements of the law provide for the cont rol of contagious diseases, identification and 
registration of animals, animal welfare, veteri nary 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 • Turkey 
 
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  3.102.  Recent developments in the SPS regulato ry environment include the regulation on the 
import and transit of certain live animals; this re gulation determines the principles and procedures 
regarding preparation of the animal health conditio ns to be implemented in the import and transit 
of certain live ungulate animals and lists of permitted countries.61 The Communiqué on Rules 
Regarding the Transhipment of Consignments of Products at Entry Veterinary Border Inspection 
Point provides for the minimum and maximum peri ods 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.62 
3.103.   If there is no EU equivalent legislation, 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, Wholesale 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 Official Gazette  No. 27939 of 
20 May 2011  
Regulation on Classification, Packagin g and Labelling of Plant Production 
Products Official Gazette  No. 27885 of 
25 March 2011 
 
Regulation on Principles and Procedures Concerning Facilities Producing 
Plant Protection Products Official Gazette  No. 27986 of 
6 July 2011  
Regulation on Pre-Notification and Vete rinary Controls at the Entrance of 
Animals and Animal Products to the Country Regulation Governing the 
Organization of Veterinary Controls at the Entrance of Products to the 
Country Official Gazette  No. 28145 of 
17 December 2011 
Regulation on Animals and Products Subj ect to Veterinary Certificate at the 
Entrance to the Country Official Gazette  No. 28149 of 
21 December 2011 
Regulation on Measures to be Taken for Monitoring 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 Establ ishments 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 
                                               
61 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. 
62 Communiqué on Rules Regarding the Transhipment of  Consignments of Produc ts at Entry Veterinary 
Border Inspection Point, Official Gazette  No. 29480 of 19 September 2015. WT/TPR/S/331 • Turkey 
 
- 78 - 
 
  Title Reference 
Regulation on Issuing of Health Certif icates for Food and Feed Subject to 
Export and Procedures to be Foll owed Concerning Export Products 
Returning to the Country Official Gazette  No. 28123 of 
25 November 2011 
Regulation on Subjecting Wooden Package Materials to Heat Treatment 
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 Fumigation 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 Regulation 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 An imal Health Rules 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 au spices 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 heal th and welfare, and food 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 Director ate include providing safe food and feed, determin ing traceability 
at each stage of the process, registering producer s of food and making controls, determining audit 
principles for feed and feed additives, iden tifying animals and 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 all SPS matters. WT/TPR/S/331 • 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 64 notifications (including 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 raised 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 the adoption of the La w 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 review period, as regards to plant health, Turkey has been in the process of 
implementing a national plant health progra mme and improving plant quarantine and plant 
passport activities. Activities regarding animal health have focused on the identification and 
registration of animals and tracking their move ments. For food and feed safety, developments 
have occurred on the Turkish Food Codex and regi stration of food and feed establishments. The 
national plant health programme covers surveillance of pest and diseases 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. Pesticide 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 re gional 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 (E MA), 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 th e 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 competent bodies which are active in the fiel ds 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; im proved capacity and tran sfer 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 align its SPS laws with the EU, Turkey enacted its 
new Biosafety Law
63 which regulates the approvals of agricultural biotechnology products in 
Turkey.64 The law provides for a Biosafety Board to review and approve biotechnology products 
before they can enter the 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 scien tific committees and makes its decisions on a 
scientific basis reflected in the scientific risk assessment and socio-economic evaluation. With 
respect to alignment with the EU and the Custom s Union, EU-approved biotech products are not 
necessarily approved by the Biosafety Board. For the transit of these GM products, permission of 
MFAL is required. 
                                               
63 WTO document G/SPS/N/TUR/8, 18 January 2010. 
64 Law No. 5977 of 18 March 2010. WT/TPR/S/331 • 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 co ntained in Turkey's Customs Law from 1999
65, as well 
as other relevant decrees such as the export regulations.66 No major changes to these rules have 
occurred during the review period. Before commenc ing the procedures for exportation, an entity 
(person or legal entity) must become a member of an association of exporters, or exporters 
union.67 The export declaration must be prepared an d approved by the exporters association as 
the first step before being presented to the custom s authorities, thus these associations take part 
in the export processing work flow (see 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. The 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.
68 Other 
types of documentation or certificates may be required depending on the good, for example a phytosanitary certificate in the case of certain ag ricultural goods. The main types of exports as 
elaborated by the export regulation are: regi stered export, pre-licensed export, exports by 
consignment, barter trade, exports to free zone s, transit 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 processing.
69 (See section 3.1.1). The Single 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 B İLGE system. As of December 2015, 13 institutions were included in the system.
70 
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 an d other taxes if they are used or incorporated 
into exported products.
71 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 drawback, if goods 
were in free circulation and exported, import duties collected upon free circulation are returned when the resulting products are exported. 
                                               
65 Law No. 4458 of 27 October 1999. 
66 Export Regulation, Official Gazette  No. 26190 of 6 June 2006. 
67 Ministry of Economy, onli ne information. Viewed at: 
http://www.ekonomi.gov.tr/portal/content/conn/UCM/path/Contribution%20Folders/web/%C4%B0hracat/%C4
%B0hracat%20Yol%20Harit as%C4%B1/ekler/D%C4%B1%C5%9F%20T icaret%20S%C3%BCre%C3%A7leri.p
df?lve . 
68 For the full list of items requir ed in the declaration. Viewed at: http://www.tim.org.tr/en/export-
guide-required-documents.html . 
69 Circular No. 2012/6. 
70 The Sugar Authority; Borsa Istanbul (for gold tr ansactions); EMRA, General Directorate of Eti Mine 
Works; TurkStat; Tobacco and Alcohol Market Regulatory Authority; Minist ry of Transportation, Maritime and 
Communication (DG of Civil Aviation); Ministry of Interi or (Turkish National Police); Ministry of Health Sa ğlık 
Bakanl ığı (Pharmaceuticals and Medical Devices Institution); Ministry of Environment and Urban Development; 
Ministry of Labour and Social Security; Ministry of Food, Agriculture and Livest ock; and the Ministry of 
Economy. 
71 Inward Processing Regime Communiqué No. 2006-12, Official Gazette  No. 26382 of 
20 December 2006. WT/TPR/S/331 • Turkey 
 
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  3.117.  During the review period there were two inward processing regime circulars issued 
pertaining to agricultural products an d textile, clothing, and leather goods.72 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 good s in free circulation to be exported temporarily 
from the customs territory of Turkey in order to  undergo further processing operations such as 
repair.73 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 of the exported product 
and the imported product that underwent further processing. The regime also allows for an exchange system, whereby the imported produc t can be replaced by a replacement product 
provided that it is of the same tariff classifica tion and 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), shelled 
hazelnuts (US$0.04 per kg), and hazelnuts (in sh ell) (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 applied 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 control 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 good, 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.
74 Amendments were made in 2010, 2011 and 2012: Communiqué 
No. 2010/8, Communiqué No. 2011/2 and Comm uniqué No. 2012/1 amending Communiqué 
No. 2002/12. The amendments have introduced seve ral minor modifications to the export control 
framework. 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 agreements 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 institutions. This export control system is aligned with 
the EU system. 
3.123.  In terms of the export control of sensit ive and dual-use goods, Turkey has maintained 
legislation on this since 2003.
75 It follows the Wassenaar Arrangement for dual-use goods and the 
Australia Group's chemical weapon's precursors lis t. Exporters of items on either list must first 
gain permission to export from the Istanbul Minerals and Metals Exporters' Union based on an 
end use certificate from the importer. Although th ere are no requirements 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 such as UN Sanction Resolutions. 
                                               
72 Circular No. 2011-1 of 12 December 2011 and Circular No. 2015-2 of 13 May 2015. 
73 Decision 2007/11864 , Official Gazette  No. 26484 of 4 May 2007. 
74 Communique No. 2002/12, Official Gazette  No. 24986 of 7 January 2003. 
75 Communique 2003/12, Official Gazette  No. 25304 of 12 February 2003. WT/TPR/S/331 • Turkey 
 
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  3.124.  The export of nuclear and nuclear dual-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 undertaking 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 qualit y control of certain agricultural goods pursuant 
to the Communiqué on Product Safety and Inspection No. (2015/21).
76 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-q uality production, prevent import rejection of 
goods, protect the image 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 down principles and procedures regarding risk-based inspections of these products with respect to 
quality compliance with the commercial quality st andards 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 Qu ality 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 th e export of these 13 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, public 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.
77 
3.127.  Turkey fully 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 accordance 
with the Montreal Protocol and the Vienna Convention.  
3.128.  Turkey maintains legislation on export quot as and export tariff rate quotas, including their 
administration.78 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. 
                                               
76 Communique 2015/21. 
77 Decision No. 1/95 of the EC-Turkey Association Council on implementing the final phase of the 
Customs Union. 
78 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 • 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 Environment 
(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 09/01/2002 (amended by 
Law No. 5752 dated 15/04/2008) 
Dates "Phoenix 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 of olive, fig (except species certificated domestically that are registered and published in the Na tional 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 
21 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 26 categories of goods, many of which relate to 
agriculture, as required by the Ministry of Food , Agriculture and Livestock (Table 3.20). 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 • 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 chemicals 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 Narcotic Drugs and 
Psychotropic Substances 
Raw diamonds Unde r 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 Forestry 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 December 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 
Fishing 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 dated 
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, Plant 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 natural 
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. 95/7623 of 22 December 1995  
Implementation Notice No. 48 of 2015 on Bluefin Tuna 
Fisheries, Transportation, Fa rming, Export and Import 
Materials within the 
context of Munitions 
List of Wassenaar 
Arrangement  Ministry of National 
Defence Law No. 5201 of 3 July 2004 
Sugar The Turkish Sugar 
Authority Decree No. 2007/9 of 17 August 2007 WT/TPR/S/331 • 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 spare 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  Forestry 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 materials 
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, Osmanl ı 
Goat, Honaml ı Goat, 
İspir Goat, Kaçkar 
Goat, Norduz Goat, 
Malta Goat, Ac ıpayam 
Sheep, Band ırma 
Sheep, Da ğlıç Sheep, 
Eşme K ıvırcık Sheep, 
South Karaman Sheep, 
Hamdani Sheep*, 
Hasak Sheep, Hasmer 
Sheep, Herik Sheep, 
Karagül Sheep, 
Karakaçan Sheep, 
Karakaş Sheep, Karya 
Sheep, Koçeri Sheep, 
Malya Sheep, P ırlak 
Sheep, P ırıt Sheep, 
Raml ıç Sheep, 
Tahirova Sheep, Tuj 
Sheep, Türkgeldi 
Sheep, Zom Sheep, 
Çine Çapar ı Sheep, 
Denizli Chicken, Gerze 
Chicken, Hac ı Kad ın 
Chicken, Sultan 
Chicken, Kangal 
Shepherd Dog*, Akba ş 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 • Turkey 
 
- 86 - 
 
  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 
Beyaz ı Silkworm line, 
Bursa Beyaz ı Alaca 
Silkworm line, Hatay 
Sar ısı Silkworm line, 
Canik Horse, H ınısın 
Kolu K ısas ı Horse, 
Malakan Horse, 
Uzunyayla Horse, 
Çukurova Horse, Ege 
Midillisi, Çamard ı 
Kulas ı 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 it s exports and has developed the Turkish Exports 
Strategy for 2023 in order to increase exports to a target level (see 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 ex port promotion in Turkey. In Turkey the NGOs or 
private sector play the largest role in export pr omotion 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 2014
79, as it was more empowered and 
given responsibility for "managing the foreign economic relations of the Turkish private sector".80 
It is funded by voluntary private sector companies and founding institutions including some 
exporters associations, chambers of commerce, and some business associatio ns. In terms of 
export promotion, DEIK produces studies and he lps businesses build competences, but does not 
have any specific export promotion programmes. The mission of DE İK 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. It s major role is to ensure coordination between 
the public and private organizations, exporters, an d 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 go verned by exporting companies. TIM provides 
services to more than 71,000 exporter firms and their unions, consisting of 13 general 
secretariats. 
                                               
79 Law No. 6552 of 11 September 2014. 
80 DEIK, 2015-16 Corporate Catalogue. WT/TPR/S/331 • Turkey 
 
- 87 - 
 
  3.135.  Turkey's various chambers of commerce an d 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 numbe r of government support programmes which are 
intended for all companies operating in commercial or industrial bases (Table 3.21). These 
programmes provide certain types of support to ex porters. (See 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 li st of target and priority countries for export.
81 
Table 3.21 Export support programmes, 2015 
Programme/subject Reference 
Export refunds for agricultural products Decision No. 2015/1, Resolution No. 2014-6 
Support for brand and ad vertising activities Circular No. 2010-6 and 2014-3 
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 and Ih racti Gelistirme Merkezi(IGEME). 
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, an d global 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 provides 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 reinsurance 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 internatio nal 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 expo rt credit insurance to protect against commercial 
and political risks. More recently it began offering a domestic credit insurance instrument to cover 
the whole receivables of exporters.
82 During the review period, each of these lines of operation 
exhibited significant growth. Overall, Turk Eximba nk has increased its support during the review 
period as the bank's assets almost tripled (Table 3.22).  
                                               
81 For 2014-15, target countries are: Algeria, Brazil,  China, India, Iran, Ir aq, Japan, Kazakhstan, 
Republic of Korea, Libya, Nigeria, Poland, Romania, Russian Federation, Saudi Arabia, Ukraine, and the United States. Priority countries are: Angola, Argent ina, Azerbaijan, Bangladesh, Bulgaria, Canada, Chile, 
Colombia, Ethiopia, Egypt, Germany, Georgia, Ghana, In donesia, Kuwait, Malaysia, Mexico, Oman, Peru, Qatar, 
Singapore, South Africa, Tanzania, Thailand, Turkmenistan , UAE, United Kingdom, an d Viet Nam. Ministry of 
Economy online information. Viewed at: http://www.ekonomi.gov.tr/portal/faces/oracle/webcente r/portalapp/pages/content/ htmlViewer.jspx?contentId
=UCM%23dDocName%3AEK-167294&paren tPage=ihracat&contentTitle=2014-
2015%20D%C3%B6nemi&countryName=&_afrLoop=476152577141028&_afrWindowMode=0&_afrWindowId=
1p5ir2wkz_219#!%40%40%3FcountryName%3D%26_a frWindowId%3D1p5ir2wkz_219%26_afrLoop%3D476
152577141028%26contentId%3DU CM%2523dDocName%253AEK-
167294%26parentPage%3Dihraca t%26contentTitle%3D2014-
2015%2BD%25C3%25B6nem i%26_afrWindowMode%3D0%26_adf.c trl-state%3D1p5ir2wkz_294 . 
82 As of the end of 2014, 42 companies had benefitted and the bank had insured shipments of 
US$860 million. Turk Eximbank, 2014 Annual Re port, online inform ation. Viewed at: 
http://www.eximbank.gov.tr/En/files/aboutUs/annual2014.pdf . WT/TPR/S/331 • Turkey 
 
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  Table 3.22 Eximbank overview, credits, lo ans, 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 Cred it 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/statistics. 
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 abroad, as well as international transport 
and tourism operators. The Bank does not discrim inate between sectors of business operation, but 
does give special consideration to companies located in Turkey's priority investment regions (see 
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 ma in 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 dest ined 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 ex tended 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-ex porters 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 an d 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 services' 
receivable documents converted from the foreig n currency. Re-payments are then made to the 
Central Bank in foreign currency which helps increa se 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 Eximbank 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 tour ism, health, consulting, 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 Intern ational Credit Programmes (previously "Country 
Credits") applied as buyer's credit by Turk Exim bank 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 Project Credits, credit lines are extended under sovereign gu arantee 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 guarantee 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 Turkish fi rms. Additionally, the Bank's product range was WT/TPR/S/331 • Turkey 
 
- 89 - 
 
  expanded through two new sub-programmes develope d for the International Trade Finance Credit. 
The Export Receivables Discounting Programme (previously Policy/Lette r of Credit Discount 
Programme) was put 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 goods from Turkey 
through the overseas branches, affiliates or co rrespondent 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 international credits has been extended to 
23 countries since 1989. 
3.142.  One of Turk Eximbank's main areas of ac tivity 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 cover to companies in 238 countries since April 2012. 
3.3  Measures Affecting Production and Trade 
3.3.1  Business framework 3.143.  Turkey ranked 55
th out of 189 countries in the World Bank's "Ease of Doing Business 2016" 
index; it dropped four places in rank compared to 2015.83 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 significant at 16%. With respect to the revised rankings from the previous year, 
Turkey fell six places in rank for starting a bu siness. 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.
84 A maximum of 30 hectares of land can be acqu ired 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.
85 Setting up operations in the special investment zones also gives certain 
advantages for land acquisition (see Section 2.4.4). 
3.145.  In 2015 Turkey passed new legislation on the Regulation of Retail Trade.86 The new 
legislation aims to simplify the procedures for opening a retail business, 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 previously 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 craf tsmen, 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 
                                               
83 World Bank, online information. Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/turkey . 2015 rankings were revised with 2016 Report. 
84 Law No. 2644. 
85 Law No. 8659 dated 7 March 1954; Law No. 17635 dated 12 March 1982; and Law No. 24645 dated 
9 January 2002. 
86 Law No. 6585, Official Gazette  No. 29251 of 29 January 2015. WT/TPR/S/331 • Turkey 
 
- 90 - 
 
  consumer goods are sold, are required 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 July 2012 to 
replace the outdated code that had been in place for over 50 years.
87 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 business enviro nment with that of the EU. The 
main changes resulting from the new commercial code are numerous and touch many business 
aspects (Table 3.23). 
3.147.  The TCC has six main chapters covering enterprise law, company law, securities law, 
transportation law, 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 provide for the 
establishment of five types of companies:  joint-stock, limited liability, commandite
88, 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 intr oduced 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 shareholder 
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 companie s can now participate in a registered capital 
system 
Intellectual property rights Intellectual property rights may be co ntributed as capital-in-kind if they 
have transferable qualifications 
Ultra-vires Ultra-vires was abolished th us 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 registry system 
Business name Rules regarding business names have  been reformed to increase 
transparency and reliability 
Statutory audit Certain companies ar e now subject to statutory audit 
Unfair competition Defines unfair competition and make s linkages to competition law 
Agency contract Unauthorized agency rule s have changed to more easily require 
fulfilment of the agreement, and ri ghts to agency fees have been 
strengthened 
Delegation of power Detailed regime for the delegation of management powers 
Source: Invest in Turkey onli ne information. Viewed at: http://www.invest.gov.tr/en-
US/investmentguide/investorsguide/Pages/EstablishingABusinessInTR.aspx ; KMPG online 
information. Viewed at: https://www.kpmg.com/TR/en/IssuesAnd Insights/ArticlesP ublications/New-
Turkish-Commercial-Code/publi cations/Documents/Latest-Amendments-in-the-new-TCC.pdf ; and 
DEIK, "The New Turkish Code of Commerce, Rule s Regarding the Corporations in a Nutshell". 
3.3.1.2  Regulatory bodies 
3.149.  Turkey has an open economy and 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 
                                               
87 Law No. 6102 of 13 January 2011. 
88 Mixed liability company whereby shareholders can either have limited or unlimited liability. WT/TPR/S/331 • Turkey 
 
- 91 - 
 
  regulatory or supervisory authorities that regulate  certain sectors of the economy. Many of these 
entities are involved in regulating or monitoring market activities (Table 3.24). 
Table 3.24 Turkey's business regulatory authorities, 2015  
Authority Sector Overview 
Competition Authority All sectors  Aims to maximize economic efficiency by 
promoting competition in the marketplace 
Energy Market Regulatory 
Authority Energy Regulates and supervises the energy market to 
provide a sound, transp arent and competitive 
market 
Banking Regulation and 
Supervision Agency Finance Protects the rights an d benefits of depositors and 
promotes trust and stability in financial markets 
Capital Markets Board Securities Protects the rights and be nefits of investors in 
capital markets 
Information and 
Communication Technologies Authority 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 supervising 
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 fo r sugar production, pricing, and 
marketing 
The Radio and Television 
Supreme Council Radio and television Regulating and supervising radio and TV 
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, online 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 chemical products, metals, and machinery and 
equipment.
89 
3.151.  Turkey's SMEs are supported by th e 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. Or iginally established by law in 1990, to support 
SME manufacturing, KOSGEB's mandate was ex panded in 2009 to cover other sectors.
90 Thus, 
today it covers specified sectors pursuant to the Council of Ministers' decision.91 SMEs may benefit 
from the programmes of KOSGEB if they meet the SM E definition of enterprises, regardless of legal 
form, that employ fewer than 250 staff and that ha ve either a turnover or balance sheet total of 
                                               
89 Turkish Statistical Institute, online information. Viewed at: 
http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=18521 . 
90 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. 
91 Council of Ministers' Decision, "Decision About Determining Sectoral And Regional Priorities Which 
Small And Medium Sized Enterprises Will Benefit From Services And Supp orts Given By KOSGEB", Decision 
No. 2009/15431, Official Gazette  No. 27353 of 18 September 2009. WT/TPR/S/331 • Turkey 
 
- 92 - 
 
  under TL 40 million. This definition was amended in 2012 to include firms that have a turnover or 
balance sheet total not exceeding TL 40 million.92 
3.152.  KOSGEB has a number of programmes to support SMEs that are guided by its support 
regulations (Table 3.25).93 These take the form of direct grants and reimbursements. KOSGEB also 
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 la rgest part of KOSGEB'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.
94 
3.153.  In looking ahead, the SME Strategy and Action 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 while 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 entrepreneurship, young en trepreneurs, eco entrepreneurship, social 
entrepreneurship, and global entrepreneurship; and ensuring their execution, 
 Improving the culture of entrepreneurship, 
 Intensifying entrepreneurship training on an organized and universal education 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 support 
(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 
organizations 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 Projects at 
Medium-High and High 
Technology Areas:  
300,000 (grant), 
1,200,000 
(reimbursable) 
                                               
92 Amendment decision, Official Gazette  No. 28457 of 4 November 2012. 
93 Official Gazette  No. 27612 of 15 June 2010. 
94 Information provided by the authorities. WT/TPR/S/331 • Turkey 
 
- 93 - 
 
  Programme Purpose Maximum support 
(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 th ose in KOSGEB target 
areas, so that they can take advantage of KOSGEB supports Ranges from 10,000 to 
50,000 depending on the type of support 
270,000 (grant) 
Entrepreneur Support 
Programme Developing and disseminating entrepreneurship For establishment of a 
business: 3,000 for 
enterprise 
establishmen t 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 Borsa 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 domestic 
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 up to 
48 months 
Loan interest support 
programmes 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 mandates. Thus, the Ministry of WT/TPR/S/331 • Turkey 
 
- 94 - 
 
  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 research and developmen t 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 moving towards adopting a state aid law that would include: general conditions; recovery; rules of authorization, monitoring, and implementation of 
state aids; and establishment of an independent st ate aid authority with powers to oversee state 
aid rules from bilateral agreements. 
3.157.  Thus, in 2010 Turkey enacted legislation on the Monitoring and Control of State Aids.
95 
This legislation provides for the establishment of a Board for the Monitoring and Supervision of 
State Aids under the Undersecretariat of the Treasu ry of Turkey. This Board will have the power to 
authorize state aid schemes and individual aid 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 given 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 di scussed here. Turkey maintains 11 broad state aid 
programmes supporting a number of areas (Table 3.26). 
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 possessing 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 mechanism 
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 the 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
 
Decision No. 2014/4, Communique 2010/5 
                                               
95 Law No. 6015, Official Gazette  No. 27738 of 23 October 2010. WT/TPR/S/331 • Turkey 
 
- 95 - 
 
  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 Research 
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 abroad 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 
supports 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 • Turkey 
 
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  Programme Aim and beneficiaries Support Implementing 
institutions Additional 
information 
- Improving the promoting and 
marketing activities of the 
SMEs in order to expand their 
domestic and international market shares 
a The fair must be organized at least three years in advance, a minimum of 100 companies is required 
(25 of which must be foreign), and a fa ir 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).96 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 abro ad, create awareness on internationally accepted 
values like quality, help companies with brand po sitioning, and act as an incubator for selected 
Turkish brands.97 TURQUALITY® is a state-supported branding entity in which the state pays 50% 
of company expenses for TURQUALITY® support services for branding 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, which 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 ap proval. The state funds 75% of the development 
roadmap, and 50% of the following expenses: patent s, 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 type 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 Countervailing Measures to the 
Committee on Subsidies and Countervailing Measures.98 Both of these notifications cover 
agricultural export subsidy programmes, Turk Eximbank programmes, and the investment 
incentive programmes. However, energy support was included 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 product: 
 the Energy Market Regulatory Authority is responsible for approving transmission and 
distribution tariffs, the wholesale price of TETAS (Turkey Electric ity Trading Company), 
and retail sales to "non-eligible" consumers. The Authority is also responsible for 
approving retail, transmission, storage, and city distribution tariffs for natural gas; 
                                               
96 Communiqué No. 2006/4, Official Gazette  No. 26177 of 24 May 2006 and Notification 2009/14. 
97 TURQUALITY® online information. Viewed at: http://www.turquality.com/about-us . 
98 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 • Turkey 
 
- 97 - 
 
   the Information and Communications Technologies Authority, as the telecoms regulator, 
regulates or approves services provided by operators99; 
 the Ministry of Health 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.100 
3.3.3.2  Competition policy 
3.163.  The Law on the Protection of Competit ion 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 competition board, has been responsible for the implementation and enforc ement 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 addre sses three principal types of behaviour: anti-
competitive agreements, concerted practices, and decisions; abuse of dominant position; and 
mergers and acquisitions distorting the competit ive structure of the market. Agreements that 
distort, restrict or prevent competition are in principle prohibited, unless the competition board grants an exemption (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 the 
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 de signed to align its practices with the EU. These 
include guidelines published in: 2011 (Guidelines 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 Cooperation Agreements, Guidelin es on Horizontal Mergers, Guidelines on 
Non-Horizontal Mergers, Guidelines on the concep t 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 information 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).
101 
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 responsible for the regulation of these sectors to discuss the measures that need to be taken in relation to those sectors that are 
                                               
99 Information and Communication Technologies Authority online information. Viewed at: 
http://www.btk.gov.tr/en-US/ . 
100 Tokgöz T (2014), The Turkish Pharma Market , Presentation by Turgut Tokgöz, Secretary General to 
CPhl Worldwide 2014. Viewed at: https://prezi.com/cnbs28xrddt d/the-turkish-pharma-market/  and 
information provided by the authorities. 
101 Regulations, Communiqués, and Guidelines issued by the TCA under the Law on the Protection of 
Competition are available online at: http://www.rekabet.gov.tr/en-US/Communique-List/Communiqu-List . WT/TPR/S/331 • Turkey 
 
- 98 - 
 
  constantly the subject of competition violations or complaints, despite the investigations conducted 
by the TCA and the measures taken as a result of these.102 
3.169.  While the number of final decisions adop ted 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 resulting 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 disregard 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 Ju ne 2014; annual report on compet ition policy in Turkey (2014). 
3.170.  Cases involving infringement of comp etition are investigated 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 2014
103 and five in 2013, which included one in 
the banking sector where the TCA found that 12 ba nks 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.
104 
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 ca rtel and their participation in the enquiry. In 
return, they may be entitled to a reduced fine or , under certain stringent conditions, no fine at 
all.
105 The authorities consider the "leniency policy" to be an efficient implementation tool for 
detection and investigation of cartels since the penalties for breaching competition law can be quite severe. This programme has been used se veral times during the period under review, 
including in 2012, in the powder sodium sulphate case where the Competition Board decided that 
SODAS' application for leniency should be accepted, as a result of which the undertaking's fine was reduced by one third and the fine impose d on its employees was reduced by half.
106 
Table 3.28 Conclusion of anti-trust files, 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 
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 Ju ne 2014; annual report on compet ition policy in Turkey (2014). 
                                               
102 Turkish Competition Authority (2015), Annual Report on Competition Policy Developments in Turkey 
2014, pp. 3, 4. Viewed at: http://www.rekabet.gov.tr/en-US/Annual-Report-List . 
103 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 . 
104 OECD (2014), Annual Report on Competition Policy Developments in Turkey – 2013 , 
DAF/COMP/AR(2014)8, p. 5. 
105 Regulation on Fines to Apply in Cases of Agreements, Concerted Practices and Decisions Limiting 
Competition, and Abuse of Dominant Position, and Regu lation on Active Cooperation for Detecting Cartels. 
Viewed at: http://www.rekabet.gov.tr/en-US/Regulation-List . 
106 OECD (2013), Annual Report on Competition Policy Developments in Turkey – 2012 , 
DAF/COMP/AR(2013)18, pp. 6, 7. WT/TPR/S/331 • Turkey 
 
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  Table 3.29 Examination of anti-competiti ve 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 documents DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014)8, 4 Ju ne 2014; annual report on compet ition policy in Turkey (2014). 
3.172.  In addition to anti-trust work, a substa ntial share of the TCA's activity is devoted to 
merger investigations (Table 3.30). 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 Ju ne 2014; annual report on compet ition policy in Turkey (2014). 
Table 3.31 Results of mergers/ acquisitions/joint ventures/p rivatization 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 documents DAF/COMP/AR(2012)8, 31 May 2012; DAF/COMP/AR(2013)18, 6 June 2013; 
 DAF/COMP/AR(2014)8, 4 Ju ne 2014; annual report on compet ition policy in Turkey (2014). 
3.173.  The TCA can also issue negative clearances and exemptions which deem an activity or 
agreement is not in contravention of the Law or is  covered by one of the block exemptions issued 
by the Agency (Table 3.32). 
Table 3.32 Negative cleara nce 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 Agreemen ts granted Conditional 
Individual Exemption 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/COMP/AR(2013)18, 6 June 2013; 
DAF/COMP/AR(2014) 8, 4 June 2014; 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 3.33). WT/TPR/S/331 • 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 459,508,920 459,508,920   
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 fi nes imposed after annulation by th e Council of State 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; 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. Sector enquiries are also 
regarded as important tools for competition advo cacy. 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 Competitio n Policy Perspective" which analysed the reasons 
behind such interventions and the risks they in volve. 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 to pic of "Competition Law and Small Medium-Size 
Enterprises". This report aimed at both educating and informing the SMEs about 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 competition 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 Committee. 
3.3.4  State trading, state-owne d 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 Arti cle 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 • Turkey 
 
- 101 - 
 
  importer of these products. During the period co vered by the notification, 2010-11, only potassium 
iodide was imported, amounting to 18,000 and 20,000 kg in 2010 and 2011, respectively.107 
3.3.4.2  State-owned enterprises (SOEs) 3.178.  The Turkish Decree Law on State-Owned Enterprises
108 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.109 In 2009 a Communiqué was issued 
regarding the notification, reporting and monitoring of SOEs in order to increase transparency and 
accountability.110 It became mandatory for SOEs to establish an internal control system111 and 
internal audit unit112 with reference to the Annual General Investment and Financing 
Programmes.113 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 star ting from 2015 according to a Cabinet Decree114 
prepared with reference to the Turkish Commercial Code.115 
3.179.  The Directorate General of State-Owned Enterprises under the Undersecretariat of the 
Treasury has the role of oversight of SOEs. Its ma in role is to exercise ownership 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 monitoring the financial and non-financial data of the SOEs. 
Between 2011-14, SOEs exhibited significant gr owth in income and assets of 46% and 27% 
respectively. Profitability initially increased during this period but then decreased, in particular in 2014 when it turned negative. The decrease in prof itability mainly stems from the accounting rules 
related to the privatization process.
116 The number of employees of SOEs fell by 7.5% over the 
period. Thus, SOEs have become more efficien t 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 96,203 107,824 119,566 121,845 
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.t r/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 General of 
State-Owned Enterprises. Each year a decree is enacted by the Government on the financing and 
                                               
107 WTO document G/STR/N/14/TUR, 15 June 2012. 
108 The companies subject to Decree Law No. 233 are called SOEs. 
109 Decree Law No. 233 of 8 June 1984. Legislation of Turkey website, online information. Viewed at: 
http://www.mevzuat.gov.tr/Metin.Aspx?Mevzuat Kod=4.5.233&MevzuatIliski=0&sourceXmlSearch =. 
110 Official Journal  No. 27261 of 17 June 2009. 
111 Official Journal  No. 27379 (Repeated) of 17 October 2009. 
112 Official Journal  No. 28815 of 8 November 2013. 
113 Cabinet Decree prepared according to the Decree Law No. 233. 
114 Official Journal  No. 28537 of 23 January 2013. 
115 Law No. 6102. 
116 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 ordinary loss 
because of this transaction. WT/TPR/S/331 • 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 largest SOEs were companies operating in industry, in particular mining, energy, and transport (Table 3.35). 
Table 3.35 List of majority-owned public en terprises 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 Endü strisi Kurumu ) (Machinery 
and Chemical Industries) Manufacturing 100% 
DMO (Devlet Malzeme Ofisi Genel Müdürlü ğü) (State 
Supply Office) Manufacturing 100% 
TTK (Türkiye Ta şkömürü Kurumu) (Turkish Hard Coal 
Enterprise) Mining 100% 
TKI (Türkiye Kömür İşletmeleri Kurumu Genel 
Müdürlü ğü) (Turkish Coal  Enterprises) Mining 100% 
Eti Maden İşletmeleri Genel Müdürlü ğü (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 Elektrik Ticaret ve Taahhüt A. Ş.) 
(Turkish Electricity Tradin g and Contracting Company) Energy 100% 
BOTAS (Boru Hatlar ı ile Petrol Ta şıma A.Ş.) (Petroleum 
Pipeline Corporation) Oil and natural gas 100% 
TPAO (Türkiye Petrolleri Anonim Ortakl ığı) (Turkish 
Petroleum Corporation) Oil and natural gas 100% 
TMO (Toprak Mahsülleri Ofisi) (Turkish Grain Board) Agriculture and 
livestock 100% 
CAYKUR (Çay İşletmeleri Genel Müdürlü ğü) (Directorate 
General of Tea Enterprises)  Agriculture and 
livestock 100% 
TIGEM (Tar ım İşletmeleri Genel Müdürlü ğü) (Directorate 
General of Agricultural Enterprises)  Agriculture and 
livestock 100% 
ESK (Et ve Süt Kurumu Genel Müdürlü ğü) Meat and Milk 
Board  Agriculture and 
livestock 100% 
TCDD (T.C. Devlet Demiryollar ı İşletmesi Genel 
Müdürlü ğü) (Turkish State Railways) Transport 100% 
Public economic institutions  
DHMI (Devlet Hava Meydanlar ı İşletmesi Genel 
Müdürlü ğü) (Directorate Genera l of State Airports 
Authority) Transport 100% 
KEGM (K ıyı Emniyeti Genel Müdürlü ğü) (Directorate 
General of Coastal Safety) Transport 100% 
2. Majority public-owned banks having a special law  
T.C. Ziraat Bankas ı A.Ş. (Ziraat Bank) Banking 100% 
Eximbank (Türkiye İhracat Kredi Bankas ı A.Ş.) (Export 
Credit Bank of Turkey) Banking 100% 
T. Kalk ınma Bankas ı A.Ş. (Development Bank of Turkey) Banking 99.08% 
Tasfiye Halinde T. Emlak Bankas ı A.Ş. Banking 99.99% 
Türkiye Cumhuriyet Merkez Bankas ı (Central Bank of the 
Republic of Turkey) Banking 55.12% 
3. Other enterprises having a special law  
TURKSAT (TÜRKSAT Uydu Haberle şme 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 Çiftli ği Müdürlü ğü) (Ataturk Forest 
Farm) Food production 100% 
PTT (Posta ve Telgraf Te şkilat ı A.Ş.) (Post and Telegraph 
Organization) Post and 
telecommunications 100% WT/TPR/S/331 • Turkey 
 
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  Enterprise Sector % Public ownership 
B. Privatization Portfolio 
Corporations within the context and programme of privatization 
T. Halk Bankas ı 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 Bak ır İşletmeleri A. Ş.) 
(Copper Industries) Mining 99.99% 
TEMSAN (Türkiye Elektromekanik Sanayi A. Ş.) (Turkey 
Electro-Mechanical Industry Directorate) Manufacturing 100% 
TEDAS (Türkiye Elektrik Da ğıtım A.Ş.) (Turkey Electrical 
Distribution) Energy 100% 
ADUAS (Ankara Do ğal Elektrik Üretim ve Ticaret A. Ş.) 
(Ankara Electric Enterprises) Energy 100% 
tta Gayrimenkul A. Ş. Genel Müdürlü ğü (tta Real Estate 
Inc.) Agriculture 100% 
TSFAS (Türkiye Şeker Fabrikalar ı 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.117 This 1994 law continues to be the main 
framework in Turkey for the privatization of pub lic 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 under 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 methods; 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 righ ts 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 achieved through the granting of operational rights subject to a separate law put in place for such services. The privatization law also provides for sales to foreigners through sales to foreig n investors and international offerings. Foreign 
investors in real 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 privat ization law are to improve productivity in the 
economy and reduce public expenditure. Privatizat ion 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.
118 
3.185.  Two hundred and four organizations have been completely privatized as of September 
2015. Since 1985, the privatization portfolio has mainly included real estate organizations and 
                                               
117 Law No. 4046. Republic of Turkey Privatization Admi nistration website, online information. Viewed 
at: http://www.oib.gov.tr/baskanlik/yasa_eng.htm . 
118 Republic of Turkey Privatization Administrati on website, online information. Viewed at: 
http://www.oib.gov.tr/program/ uygulamalar/yillara_gore.htm . WT/TPR/S/331 • Turkey 
 
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  state shares in companies, followed by establishments.119 As of 30 September 2015, the 
privatization portfolio included 22 companies in the privatization scope and programme. The 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 motorways 
and 2 bridges with lottery licence rights (Table 3.36). 
Table 3.36 Overview of organizations in th e privatization portfolio, 2015, by sector 
Sector Organizations 
Toll motorways Edirne-Istanbul-Ankara Pozant ı-Tarsus-Mersin, Tarsus-Adana-Gaziantep, 
Toprakkale- İskenderun, İzmir-Çe şme, İzmir-Ayd ın Gaziantep-Sanliurfa, 
İzmir, Ankara Peripheral Motorways and Bo ğaziçi, Fatih Sultan Mehmet 
Bridges  
Energy Ankara Do ğal Elektrik Üretim ve Ticaret A. Şa, Kayseri ve Civar ı Elektrik 
T.A.Ş, Hamitabat Elektrik Üretim A. Ş, Türkiye .Elektrik Da ğıtım A.Ş.1, 
Türkiye Elektromekanik Sanayi A. Ş. (TEMSAN), Elektrik Üretim A. Ş. of 
Power Generation Plants 
Banking T.Halk Bankas ı A.Ş.a (51% shares) 
Construction Doğusan Boru Sanayi ve Ticaret A. Ş. 
Ports İzmir Port, Fenerbahçe-Kalam ış Marina 
Sugar processing Kayseri Şeker Fabrikas ı A.Ş. (11.7% minority share), Türkiye Şeker 
Fabrikalar ı A.Ş.a (25 sugar factories and othe r 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 Bak ır İşletmeleri A. Ş.a (under liquidation) 
Airline THY-Türk Hava Yollar ı A.Şa (49% of minority shares) 
Chemicals Hidrojen Peroks it 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 institutions 
Plant and other assets Rivers Run Plants (52) 
a Some of the shares of these comp anies 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/port foy/portfolio_ general.htm , and information 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. 
                                               
119 Republic of Turkey Privatization Administrati on website, online information. Viewed at: 
http://www.oib.gov.tr/program/uygulamalar/privatization_in_turkey.htm . WT/TPR/S/331 • Turkey 
 
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  Table 3.37 Significant privatization im plementations, 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   
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%   WT/TPR/S/331 • Turkey 
 
- 106 - 
 
  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 
Çatalağzı Coal fired 
power gen. Power 
Generation 2014 350 100%   
Kemerköy, Yeniköy 
Coal fired power gen. Power 
Generation 2014 2,671 100%   
Source: Information provided by the authorities. 
3.3.5  Government procurement 
3.3.5.1  Basic legal framework 
3.187.  Public procurement in Turkey is go verned by the Public Procurement Law (PPL)120 and the 
Public Procurement Contracts Law (PPCL)121, 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 Implementation of Goods Procurem ents; Regulation on Implementation of Works 
Procurements; Regulation on Implementation of Consultancy Services Procurements; Regulation 
on Implementation of Electronic Procurement; Re gulation on Administrative Applications against 
Procurements; Regulation on Framework Agre ements; and Regulations on Inspection and 
Acceptance (Works, Services, G oods, Consultancy Services). 
3.188.  Since its entry into force, the PPL has been amended several times. A significant and 
extensive amendment was adopted in October 200 8, to align Turkey's public procurement 
legislation with the EU acquis
122, 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 6552 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 Pl atform (EPPP) is a significant step in reaching a 
fully electronic procurement system. 
                                               
120 Law No. 4734. 
121 Law No. 4735. 
122 See WTO document WT/TPR/S/259, para. 109. WT/TPR/S/331 • Turkey 
 
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  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 abnormally 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 article. 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 
Procurements: 
Official Gazette  No. 29023 
of 7 June 2014 There was not such a registration 
requirement to EPPP. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
There was not such a requirement. Provision of procurement and pre-qualification 
documents : 
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 EPPP 
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 certificates: 
It is mandatory that work experience certificates be 
registered into the EPPP WT/TPR/S/331 • Turkey 
 
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  Law and date of 
amendment Before amendment After amendment 
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 tenderer 
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 services 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 Law 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 of 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-elections of parliament, general and by-elections 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 
election 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 of 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. WT/TPR/S/331 • Turkey 
 
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  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 with in 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 development 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 specific purchases. Goods, services and works procurement, which are decided 
by the relevant Ministry to be related to defenc e, security or intelligence, can be completely 
outside the scope of PPL. Moreover, procurement of goods and services, including offsets, for the 
purposes of innovation, naturalization, and technology transfer are outside the scope. An 
implementation regulation regarding this exempt ion 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 pr ocurement has been significant, it has fallen 
during the period of review to 6.5% of total procurements in 2014. On average, exemptions and 
exclusions account for 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 3.40). The vast majori ty 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 3.41). 
Table 3.39 Procurement values, 2010-14 
Year PPL Direct 
procurement Exemption Exclusion Total amount of 
public 
procurement 
Amount of 
contract 
(1,000 TL) % Amount 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. 
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 suppliers 
(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. WT/TPR/S/331 • Turkey 
 
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  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 auth ority of the Ministry of Finance, which is 
responsible for core policy making, and a dedicate d procurement authority, the Public Procurement 
Agency (PPA). The State Supply Offi ce (DMO), an affiliate organizati on 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.123 It is comprised of the Presidency and its office and the Public 
Procurement Board, as well as service units.124 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 prep ares, 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 tenders; 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 public 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 relevant measures can be taken if necessary; however, this prov ision has not been used thus far. 
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 complaint to the contracting entity and then an appeal to the PPA. Furthermore, all de cisions 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. Tender ers 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 co mplaints 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 3.42). 
                                               
123 EBRD online information. Viewed at: http://ppl-report.ebrd.com/ . 
124 Public Procurement Agency online information. Viewed at: http://www.ihale.gov.tr/teskilat_semasi-
58-2.html . WT/TPR/S/331 • Turkey 
 
- 111 - 
 
  Table 3.42 Appeals to the Public Procurement Authority, 2010-14 
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 different kinds of national preferences that are currently 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 
tenderers who offer domestic products, as determin ed 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 joint ventures with 
foreign tenderers. The percentage of price advantage is determined solely by the contracting entity 
or by a related Ministry contracting entity within the range of 0 to 15%. 
3.199.  The price of a tender submitted by a domestic supplier or contractor 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 type s 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 previously 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 medical devices and pharmaceutical products. 
3.3.5.6  Participation in international ag reements covering government procurement 
3.201.  Turkey has been participating as an observer in the WTO Committee on Government 
Procurement since June 1996.
125 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 of Copyrights in the Ministry of Culture and Tourism (for copyright and related rights)
126; the Turkish Patent Institute (TPI) for patents, trademarks, geographical indications, 
designs and chip topographies; and the Ministry of Food Agriculture and Livestock for plant 
                                               
125 WTO document GPA/M/2, 23 July 1996. 
126 The Directorate General of Co pyrights' website. Viewed at: 
http://www.telifhaklari.gov.tr/ana/default.asp# . WT/TPR/S/331 • Turkey 
 
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  breeders' rights.127 The Intellectual and Industrial Property  Coordination Board convenes twice per 
year to develop IPR strategies and improve coordination among its participating institutions.128 
3.203.  Turkey has instituted a number of strategies during the review period that have had an 
impact on IP policy. The National Intellectual an d Industrial Property Strategy paper provides an 
overall strategy for the sector for 2015-18.129 It has four main goals: legislation and practice in 
line with Turkey's need to improve intellectual property rights with effective implementation; ensuring adequate human and institutional capacity for the judicial, customs and law enforcement 
services actively involved in protecting intellectu al property rights; to improve the effectiveness 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 legislation 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 the preparation of the application, impr oving the quality of applications; and to improve 
the effectiveness of marketing, increasing the value added of GIs.
130 
3.205.  With respect to genetic resources, tr aditional knowledge and traditional cultural 
expressions, Turkey 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 increase in the filing of patents 
over the period, which can be attributed to the patent incentive systems (see paragraph below).
131 
However, the number of patents granted climbed during the period, but then declined in 2014 due 
to a decline in the number of patents granted to foreign right holders. The number of trademark 
applications generally declined during the period, but the number of trademarks registered climbed significantly. Overall, many factors have contributed to this general increase in the various types of applications but the main factor can be attributed to the overall growth in the Turkish economy 
(Table 3.43). 
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 
                                               
127 The Turkish Patent Institute's website. Viewed at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/?lang=eng . 
128 The Board is composed of high-level representative s from the ministries of Ju stice, Interior, Health, 
Food, Agriculture and Livestock, Cust oms and Trade, and Economy; the Depu ty 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. 
129 Turkish Patent Institute (2014), National Strategy Intellectual Property, 2015-18, November 
(Turkish). Viewed at: http://www.tpe.gov.tr/TurkPatentEnstitu su/resources/temp/6B 44E6D2-7071-4F37-9FF4-
BFC28C19C76A.pdf . 
130 Turkish Patent Institute (2014), National Strategy Paper on Geographical Indications, 2015-18, 
November (Turkish). Viewed at: http://www.tpe.gov.tr/TurkPatentEnstitusu/resources/temp/5D1DDECD-C004-
4175-86B4-1BA236F79059.pdf . 
131 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 • Turkey 
 
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   2011 2012 2013 2014 
 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/TurkPatentEnstit usu/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 incr ease 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 Programme 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 Domestic Patent 
Licensing
132, the TPI has worked with other organizations including the Coordination Council for 
the Improvement of the Investment Environment (Y OIKK) and the Ministry of Finance to increase 
support for the commercialization of IP rights. In 2014, 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.
133 
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 La w on Intellectual and Artistic Works No. 5846, has 
undergone changes in Article 47 (Expropriation), in which works
134 that are deemed important for 
the culture of the country can be expropriated under certain 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 fi nes were revoked by the Constitutional Court.  
                                               
132 Decree 2011/108. 
133 Law No. 6518, Official Journal  of 19 February 2014. 
134 The works must have been created in Turkey or outside by Turkish citizens. WT/TPR/S/331 • Turkey 
 
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  3.211.  Although the copyright law is considered as being substantially aligned with international 
conventions and the EU acquis, the law is undergoin g 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 mech anism 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 Works 
(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 broadcasting of 
radio-TV programmes. Law No. 5846 covers: the 
moral and economic rights of 
authors and related right 
holders (performers, 
phonogram and film 
producers and radio-television 
organizations), the rules and 
procedures regarding 
transactions on such rights, 
and ways of 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. 
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 an imal 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). WT/TPR/S/331 • Turkey 
 
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  Main legislation Duration Selected coverage, 
exclusions and limitations Fees/levies (2015) 
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 certificate 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 of 
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, co pies, 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 stable. 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 semiconductor 
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. 
 
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. WT/TPR/S/331 • Turkey 
 
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  n.a. Not applicable 
a Industrial designs may be covered by both the Copyright and the Indu strial Design Law. The term is 
70 years under the former and 20 years under the la tter. Where the work is protected under both 
laws, a rights holder may choose either or both. 
b Protection for unregistered geographical indica tions 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: Viewed at: http://www.tpe.gov.tr/TurkPatentEnstitusu/fees/informationDetail?id=109 ; 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 cancelled by the 
Constitutional Court. All four decisions of the Court were published in the Official Gazette .135 
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.136 As of December 2015, upon the instruction of the 
Ministry of Science, Industry and Technology, work  on the preparation of a draft law for industrial 
property rights had restarted. 
3.214.  Provision is made under Turkey's patent le gislation for the granting of compulsory licences 
(CLs);Turkey's Decree-Law 551 regulates the applic ation 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 taken 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 gr ounds where there is great importance for public 
health or national defence, or where non-use could cause serious damage to Turkey's economic or 
technical development. 
3.215.  Article 97 regulates "proof of use", statin g that the patent proprietor or the authorized 
person shall prove the "use" by an official docume nt before the TPI. The "use document" shall be 
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 used, 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 procedure, CL decision, and costs related to the decision.  
3.217.  At end 2015, the only CL to have been granted was in 1998. In one other case, the TPI 
was requested to initiate a mediation procedure with regards to a CL. 
3.218.   In May 2014, Turkey accepted the Prot ocol 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. 
                                               
135 Official Gazette  of 29 May 2014 (patents), 24 July 2014 (trademark), 15 May 2015 (trademark) and 
2 June 2015 (trademark). 
136 Turkish Parliament online information. Viewed at: 
https://www.tbmm.gov.tr/sirasayi/donem24/yil01/ss474.pdf . WT/TPR/S/331 • Turkey 
 
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  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.137 The law 
for topographies of integrated circuits contains provisions that adopt the international exhaustion doctrine.
138 
3.3.6.2  International agreements and conventions 
3.220.  Turkey is signatory to a number of IPR conventions and treaties (Table 3.45), and has 
signed the WIPO Marrakesh Treaty to Facilitate Access to Published Works for Persons who are 
Blind, Visually Impaired or Otherwise Print Di sabled 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, Produc ers 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 Cooperation 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 Intern ational Classification for Industrial 
Designs (1968) 30 November 1998 
Patent Law Treaty 2 June 2000 
European Patent Convention (1973) 1 November 2000 
Hague Agreement (International De posit 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, Visually 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. 
3.221.  In the context of Turkey's accession ne gotiations to the European Union, Turkey is 
participating in a joint Turkey-EU Intellectual Property Rights (IPR) Working Group on institutional, 
legislative, enforcement and public-awareness-relate d issues. As noted by Turkey during its last 
review, since legislative alignment is at an advanced level, most of the discussions within the 
group have been aimed at enhancing implementati on, 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 related 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 consideration electronic and non-electronic databases. These issues are being taken into consideration within the copyright law drafting studies. 
                                               
137 Decree-Law No. 556 on Trademarks, Article 13; Decree-Law No. 551 on Patents, Article 76; 
Decree-Law No. 554 on Designs, Article 24. 
138 Law No. 5147 on Integrated Circuits, Ar ticle 12.c (International Exhaustion). WT/TPR/S/331 • Turkey 
 
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  3.222.  Working group meetings are held at leas t once a year, and part of these meetings are 
open to the IPR stakeholders from the private sector.139 Issues discussed under the IPR Working 
Group since 2012 are: a new draft law on industri al 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 the Turkish Co nstitutional Court, bad faith trademark and 
design registrations, security-related issues du ring the counterfeit goods raids, protection of 
well-known trademarks, mechanisms of collective management of rights and collecting societies in 
Turkey, digital piracy, private copy ing 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 Di rective, copyright exceptions in educational 
institutions and public lending, examinations, decisions and oppositions related to trademarks and 
designs, biotechnological inventions, secondary medi cal use patents, patentability criterion, filing 
process for patents, expert witness system in Turkey, compensations, enforcement issues, and customs-related issues (i.e. risk manage ment 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 auth ority 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.
140  
3.225.  Turkish Customs have the power to act ex-officio if there is a suspicion 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 lodge applications for actions online since April 2013. Right holders apply online through the central IPR system with their electronic signatures; the applications are co ncluded online and the results conveyed to the 
applicants by e-mail. All customs offices can access the online applications from the secure 
intranet of the Ministry. 
3.227.  The number of applications for customs acti on increased in recent years, from 635 in 2011 
to 1,038 in 2014. The top categories of detained articles in 2014 were mobile phones and 
accessories, which accounted for 52% of the overall amount, followed by medicines (34%), labels (7%), clothing (3%) and cosmetics (1%) (Table 3.46). 
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 cu stoms issues, the Turkish 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 ma nagement 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. 
                                               
139 WTO document WT/TPR/M/259/Add.1, 5 June 2012. 
140 Law on Customs No. 4458, Article 57. WT/TPR/S/331 • Turkey 
 
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  A current major activity of the Turkish Ministry of Customs and Trade is the IPR Project submitted 
to the EU in the context of the Instrument for Pr e-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 project 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 the 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.
141 
3.230.  Judges may not convert 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 contraventio n of the banderole requirements or without 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 place 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.
142 In order to enhance the efficiency, 
functionality and promptness of inspections rega rding 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 officers and inspection 
commissions' representatives with legislation and recent IP developments, 9 training seminars 
were organized by the Ministry of Culture and Tour ism. 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-Gene ral for Copyright in cooperation with public 
institutions, NGOs, and collecting societies. 
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 process and to strength en 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 Indust rial Property Strategy recognizes the slow 
judiciary process as one of its weaknesses.
143 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 identities. The 
                                               
141 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 IPR 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. 
142 EIU online information. Viewed at: http://www.eiu.com . 
143 Turkish Patent Institute, on line information. Viewed at: 
http://www.tpe.gov.tr/TurkPatentEnstitusu/reso urces/temp/6B44E6D2-7071-4F37-9FF4-BFC28C19C76A.pdf .  WT/TPR/S/331 • Turkey 
 
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  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.
144 
                                               
144 EIU online information. Viewed at: http://www.eiu.com . WT/TPR/S/331 • Turkey 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Overview 4.1.  As the world's seventh-largest agricult ural 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 Turk ey's GDP and 21% to employment in 2014.
1 Trade is very 
important to the sector, as both imports an d 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 produc er 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 hectares of  forest. In recent years the number 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 production 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 • 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 Statis tics 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 cr op 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 20 11; the number of registered sheep and goats 
increased; and investment supports and breeding programmes increased the quality of plantations. 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 surpa ss 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 slig htly outpaces the production of animal products 
(Table 4.2). 
Table 4.2 Major animal production, 2010-14 
 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. Prod uction quantity figures indicate a growing value for poultry 
production in these years. 
Source: Turkstat, livestock production values; Turkstat, animal produc t production values. WT/TPR/S/331 • Turkey 
 
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  4.5.  Both the livestock and the animal product subsectors 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 abou t US$14.6 billion in 2014. Trade in agricultural products has 
increased faster than trade in other products and,  in 2014, represented over 11% of total exports 
and about 6% of total imports, up from 8% and 4%, respectively, in 2008. 
4.7.  Over the past five years, imports of raw materials and exports of processed goods have 
increased in parallel: as imports of cotton, wheat,  and tobacco increased, exports of textiles, flour 
and confectionary, and tobacco products also incr eased. The trend in importing raw materials is 
also reflected in inputs for agriculture as imports of feedstuffs, such as maize and soya beans, and 
exports of chicken meat, all increased. 
4.8.  Despite the large increases in exports of products based on basic agricultural commodities, 
nuts (especially hazelnuts) remain the main expo rt – although export growth has not been as 
strong as for other traditional exports like citrus fruits, grapes, or tomatoes (Table 4.3 and 
Table 4.4). 
Table 4.3 Exports of agri cultural products, 2010-14 
(US$ 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 confectionery, not containing 
cocoa 279 329 403 490 537 
2401 Unmanufactured tobacco; tobacco refuse 401 369 427 439 517 
1902 Pasta, whether or not cooked or stuffed 186 285 358 494 507 
2402 Cigars, cheroots, cigari llos 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 nuts (HS 2008), grapes (HS 0806), and sugar confectionary 
(HS 1704); Iraq for bakers' wares (HS 1905), flou r (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 agriculture 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 • Turkey 
 
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  Table 4.4 Imports of agri cultural 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 seeds, 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 was 
the main supplier of cotton (HS 5201); the Russi an Federation for wheat (HS 1001), sunflower 
seed oil (HS 1512), and maize (HS 1005); Para guay 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 toba cco (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 sector 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 th e administration and allocation tariff quotas are 
determined in the related Decrees 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 issues 
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 Council 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 (see section 4.1.9). Turkey has an annual TRQ agreement of 80,000 tonnes 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 tariff quotas were modified in 2010
3 when the old 
Regulation on Import Quotas and Tariff Quota Administration of 2004, was abrogated and the Decision of the Council of Ministers
4 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, based on an economic analysis made for that particular product/product group. According to the authorities, these quotas are implemented 
in line with non-discrimination and transparency principles; quotas are provided to all importers 
and their requests are evaluated based on their previous performances; and quotas 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 • 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 March 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 
24/3/2014 
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 24/3/2014 
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 
24/3/2014  
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 24/3/2014 
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 
August 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 August 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 
August 2012 
Source: Compiled by WTO Secretaria t from the references noted therein,  and information provided by the 
authorities. 
4.15.  Turkey had TRQs on 1,838 tariff lines in 2015, 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 EU, 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 any absolute quotas or other quantitative restrictions on 
agricultural products. 
Table 4.6 Turkey's TRQs, 2015 
 
HS 
2 Product 
description No. of TLs  
(12 digit-
level) In-quota rate Out-o f-quota 
rate 
Volume No. of 
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; bulbs 56 0.0
 0-24 24.6 3.9-
46.8 5-3,400 (tonne) 1  - 38 
07 Edible 
vegetables and 
certain roots and 
tubers 150 1.9 0-24.75  21.7 5-49.5  10-7,000 (tonne) 1 - 39 WT/TPR/S/331 • Turkey 
 
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  HS 
2 Product 
description No. of TLs  
(12 digit-
level) In-quota rate Out-o f-quota 
rate 
Volume No. of 
countries 
covered 
by TRQs 
(Range) Average 
(%) Range  
(%) Average 
(%) Range  
(%) 
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 or 
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 the 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 paymen ts; 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 
general regimes (Table 4.7). Turkey's Agricultural Basin Production and Support Model was 
adopted in 2011 to determine the agriculture basins, prepare an agriculture inventory, provide production planning, and make projections for future demand. It provides a significant source of 
agricultural subsidies for Turkey.
8 
                                               
5 Ministry of Food, Agriculture and Live stock online information. Viewed at: 
http://www.tarim.gov.tr/SGB/Belgeler/Bakan l%C4%B1k_Faaliyet_Raporlar%C4%B1/2011_Yili.pdf . 
6 Ministry of Food, Agriculture and Live stock online information. Viewed at: 
http://www.tarim.gov.tr/SGB/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 . 
8 According to the Ministry of Food, Ag riculture and Livestock's 2014 Annual Report, 
http://www.tarim.gov.tr/SGB/Belgeler/Bakanl% C4%B1k_Faaliyet_Raporlar%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, WT/TPR/S/331 • Turkey 
 
- 127 - 
 
  Table 4.7 Turkey's Agricultural Support Programmes, 2015a 
Support programme 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 registered 
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  
                                                                                                                                               
which accounts for 26% of overall support in 2014. Furthermore, two other support programmes listed in the 
2014 Annual Report appear to provide significant am ounts of support, but were not confirmed by the 
authorities. The Premium Support and Livestock Su pport programmes provided TL 2,690,977,000 and 
TL 2,589,105,000 of support, respectively, in 2014. WT/TPR/S/331 • Turkey 
 
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  Support programme 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, Ag riculture and Livestoc k's 2014 Annual Report, 
http://www.tarim.gov.tr/SGB/Belgeler/Bak anl%C4%B1k_Faaliyet_Raporlar%C4%B1/2014%20FAAL
%C4%B0YET%20RAPORU.pdf , two other programmes were id entified as possible support 
programmes but were not confirmed by the author ities. 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. 
b Turkish authorities report full collection of data  not possible, but Ministry of Food, Agriculture and 
Livestock 2014 Annual Report in dicates TL 2,406,330,000 for 2014. 
Source: Investment Support and Promotion Agency  of Turkey online information. Viewed at: 
http://www.invest.gov.tr/en-US/infocenter/publications/Documents/FOOD.AND.AGRICULTURE 
.INDUSTRY.pdf ; Ministry of Food, Agriculture and Livestock Annual Report viewed at: 
http://www.tarim.gov.tr/SGB/Belgeler/Bak anl%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 maintenance 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 increased 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 WT/TPR/S/331 • Turkey 
 
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   2011  2012  2013 2014  
Barley premium 101.74 85.00 84.27 81.70 
Rye premium 1.43 1.00 0.99 0.96 
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 580.11 607.59 645.59 700.00 
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 the 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 Admi nistrations, the Ministry's 2013-17 Strategic Plan 
builds on the previous plan, the 2010-14 Strategi c 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 in troduction of new laws; a rural development 
strategy; the Agriculture Basins 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 for 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 ha s also been influenced through its identification 
of five priority areas for harmonization with the EU, including: 
 Within the scope of improvement of agricultural  statistics, the Strategy for Improvement of 
Agricultural Statistics System is being prepar ed in cooperation between the Ministry and 
Turkstat, and is in the final stage before submission to the EU. 
 As regards the Integrated Administration an d 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 pa yments. Also, the Project on the Digitization 
of Land Parcel Identification System (LPIS) was started in October 2014. 
                                               
9 Ministry of Food, Agriculture and Live stock online information. Viewed at: 
http://www.tarim.gov.tr/ Sayfalar/AnaSayfa.aspx . WT/TPR/S/331 • 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 issued 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 'Establishment 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 througho ut the country; data is being collected from 
6,000 holdings. 
Table 4.9 Overview of th e 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 infrastru cture of food and feed 
enterprises, and to ensure compliance with 
standards. 
To increase public aw areness on safe food. 
Phytosanitary, Animal 
Health and Welfare To increase plant production 
through environmentally-
conscious and effective 
phytosanitary pr actices that 
also ensure 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 
services 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 pr oducts 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 an d 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 Stra tegy (NRDS) covers the period 2014-20, and was 
prepared by the Ministry and other relevant stakeh olders 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 it s accession process. In addition to these, NRDS 
aims to: 
 strengthen rural policy governance at both central and local levels; 
 address the negative effects of migration on rural areas; 
 enhance harmonization with the EU acquis on agriculture and rural development in the 
pre-accession process; 
 reduce the development differences between rural and urban areas; and  WT/TPR/S/331 • 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 objectives, aims and principles, and a priorities 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 subsidie s to the WTO Committee on Agriculture during the 
review period, but has notified them to the Committee 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 the 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  develop 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 (taxes, 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 Subsides 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 products 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 ma ximum 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 determine 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 an d 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. 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 
(concen-trated) 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 • 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  
pieces65% 10% 30 120 65% 10% 30  
TL/1,000  
pieces65% 10%
Preserved poultry  
meat products 450 50% 10% 450 50% 10% 450 50% 10%
Chocolate and 
other food prepar-ations 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/SC M/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 principles, objectives, and pr iorities of Turkish agricultural policy, and 
it determines strategies in accordance with policies and regulations supporting agricultural 
development, including agricultural support. Furthe r 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 agriculture, 
some of which related to specific commodities, others to insurances 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 Producti on 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 January 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 an d 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 of 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 • 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 Veterinary 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 changes to the inst itutional framework. In 2011, the Ministry of 
Agriculture and Rural Affairs was re-organized and became the Ministry of Food, Agriculture and 
Livestock.13 It is responsible for policy formation, monitoring, and inspection activities for food, 
agriculture and livestock. The main activities of  the Ministry are development of agricultural 
policies; food safety and security; rural deve lopment; 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 frost damage. Hazelnut production is concentrated in 16 provinces, mainly located around the Black Sea region, and production yields vary significantly by province, 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 production yields is attributed to the age of the plantations, land class, slope, fertilization, pr uning, 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, a ccording 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 mirrored 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 2010, 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 billion 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 sector 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/content/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 • Turkey 
 
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  4.32.  Livestock production is characterized by small farms and is dominated by local breeds. As 
such, yields 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 investment and led to inflationary pressures on food. 
4.33.  In terms of value of production, cattle do minate, followed by sheep, then goats. The value 
of livestock production fluctuated during 2011-14, despite increasing livestock numbers – indicating prices have, in general, declined. In contrast to other livestock, the number 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 (Tab le 4.13). Livestock for breeding and fattening 
purposes are imported by giving priority to human and animal health. Imports are carried out in 
accordance with bilateral protocols with trading partners. The Ministry of Food, Agriculture and 
Livestock permits imports from countries with whom 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, technical 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 Austra lia 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 database. HS headings 0102, 0201, and 0202. WT/TPR/S/331 • 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 subsides, 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 these 
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 Su pport 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 registered 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 mi lk contents for quality 
improvement. Support given to agricultural enterprises in Ankara, 
İzmir, Bal ıkesir, Bursa and Tekirda ğ which meet 
laboratory analysis requirements. Stud book registration 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) employme nt support Support given to agri cultural 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 regist ered 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 eradicat ing animals that have 
contracted animal diseases such as brucellosis, foot 
and mouth disease or glanders. 
Support for disease-free enterpri ses Support given to disease- free enterprises that meet 
technical and hygienic criteria. Livestock should be tagged, registered in the database and should have passports.  
Programmed vaccination applications Support given to veterina rians 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 Live stock Support and Subsidies". WT/TPR/S/331 • 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 Ministry of Food, Agriculture and Livestock. TMO is mandated to regulate the grains market, manage the state 
monopoly on opium and narcotic drugs, hold stoc ks for emergencies, provide food aid to other 
countries, and implement other responsib ilities 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 technology and operating laboratories. 
4.39.  Its main role in the market is to stabilize prices for producers by intervening when prices fall 
below a pre-determined reference price. According to TMO's Main Charter, TMO purchases from domestic and foreign markets when necessary, according to the policies specified each year for the 
purpose of preventing extreme fluctuations in grain prices. Under certain circumstances, the 
Cabinet of Ministers allocates TRQs for TMO imports, and these are not permanent. Under the provisions 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 when there are surpluses. 
While TMO has the right to make purchases to stabilize 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 during the period  (Chart 4.1), although domestic prices remained 
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 per tonne of output, and the border price (measured at farm gate level)).
20  
                                               
20 OECD (2015), Producer and Consumer Suppor t Estimates database, online. Viewed at: 
http://www.oecd.org/tad/agricultur al-policies/producerandconsumersup portestimatesdatabse.htm#country 
[January 2016]. WT/TPR/S/331 • 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)Barley(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). Viewed at: http://www.tmo.gov.tr/ . WT/TPR/S/331 • 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 permission for the 
operation of new facilities or expanding them, as well as establishing prices, conducting 
inspections, and R&D activities. The Sugar Author ity oversees the sugar quota system, audits the 
sugar factories and sugar containing food producers but the Authority does not participate in the sugar trade. 
4.41.  In 2012/13 Turkey's sugar production fr om sugar beets amounted to 6% of world 
production. During the period of 2011-15, sugar production and domestic sales have remained 
relatively constant, although 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, onli ne 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 Milk 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 institution'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 had 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 determines prices for 
its own franchises. 
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 operate 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 rights to import meat under tariff quotas, 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_2014_F.pdf . 
23 Viewed at: http://www.infobalkans.com/organization/state-run-meat-and-milk-board . WT/TPR/S/331 • Turkey 
 
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  4.1.9.4  Tobacco and Alcohol Market Regulatory Authority (TAPDK) 
4.45.  Turkey's Tobacco and Alcohol Market Regula tory Authority was established in 2002 pursuant 
to a law to regulate alcohol and tobacco products.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 regulations 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 conformity, 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 oversi ght 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 decr ees when providing food aid. Turkey's Cabinet of 
Ministers decides on food aid policy. 
4.48.  During the period 2011-15, Turkey provid ed 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 whea t, respectively, via the Turkish Red Crescent. 
In 2015, Turkey provided 10,000 tonnes of wheat as food aid to Syria. 
4.2  Manufacturing 
4.49.  Over the past three decades, much of Tu rkey'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. 
4.50.  Turkey's industrial sector is mainly locate d in the north west, the region stretching from the 
Greek and Bulgarian borders through Istanbul and south to Izmit, Bursa, Eskiserhir 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 the manufacturing sector. 
4.51.  Small and medium-sized enterprises (SMEs) co nstitute a key part of the industrial sector in 
Turkey. According to Turkish Treasury figures, SM Es 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 manufacturi ng 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$122 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 73% 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 Business Group (2015), The Report: Turkey .  WT/TPR/S/331 • Turkey 
 
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  Chart 4.2 Evolution of exports for select ed 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 manufactures
 
Note: Standard International Trad e Classification (SITC), Rev.3. 
Source: WTO calculations, based on UN SD 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 economy and increasing exports are seen as one of the 
ways this should be addressed (Section 1.2). Un der the Tenth Development Plan, the Input Supply 
Strategy, and Turkey Vision 2023, the Government has set out multiple objectives for manufacturing, including increasing 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  a i m s  t o  e x p a n d  i t s  m a n u f a c t u r i n g  b a s e  o f  
medium- and high-tech and value-added products and support 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 its 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. The authorities note that Turkey has 
benefitted from its integration into value chains 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 ch allenge for Turkey is increasing the contribution 
to value added in upstream activities, diversifying the industries involved in GVCs, and engaging 
small and medium-sized enterprises. 
4.56.  The Directorate General for Industry under th e Ministry of Science, Industry and Technology 
is responsible for setting industrial policy for Turkey. Other important ministries with 
responsibilities for industrial policy include the Mini stry 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 a ll companies. The Turkish Industry and Business 
Association (TUSIAD) and the Association of Independent Industrialists and Businessmen 
(MUSIAD) are the two largest professional or ganizations 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 • Turkey 
 
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  4.2.1  Automotive sector 
4.57.  In 2014, Turkey ranked 17th in the global automotive 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 than 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 with 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 Original Equipm ent Manufacturers (OEMs) that are members of 
OSD and produce over one million vehicles annually. In general, domestic firms produce 
mini-buses, buses, and trucks, whereas the majori ty of passenger cars are produced by joint 
ventures with foreign 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 crisis of 2008-09 and the slowdown in the Euro-zone economies, ma nufacturers have been looking increasingly to 
new export markets in the Middle East and Asia. 
4.61.  In recent years, the Government has encour aged 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 country'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 (HS 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 prohibited. 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 trailers
28 (Table 4.16). 
4.63.  Total taxes account for 71-189% of the cost of a passenger 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 tax for cars with en gines 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 industry 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 • Turkey 
 
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  the domestic market.29 Another report noted that 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 principa lly 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 goods 
8705 Special purpose motor vehicles, other th an those principally designed for the 
transport of persons or goods (for exampl e, 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 sust ainable global competitive 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 which 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 region  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 employe r 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 Investme nt Support and Promotion Agency of Tu rkey online information. Viewed at: 
http://www.invest.gov.tr/en-us/sectors/Pages/Automotive.aspx . WT/TPR/S/331 • 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 duties 
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 employe r 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 
exemption   yes yes 
Tax reduction   80%  90% 
Contribution to 
investments   40% 50% 
SSP employe r  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 Security Premium. Source: Prime Ministry Investment Su pport and Promotion Agency of Turk ey 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-established 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 • 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 2014, the total value of clothing exports was 
US$16.3 billion. In 2014, Turkish companies exported to more than 194 countries in the world. Although the EU remains the most important destination for exports, the United 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 textiles is 
concentrated in the Marmara, Aegean, and Cukurova regions with the majority of factories 
belonging to small and medium-sized enterprises, al though most production is by large integrated 
enterprises. 
4.69.  The Turkish textile and clothing industry is vertically integrated across the value chain and 
extends from cotton and fibre to fabric and garmen ts. 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 glob al market share of 3.4%, is the eighth largest 
supplier in the world, and the fourth largest supplie r to the EU. It has a share of 4.2% in knitted 
clothing exports and it ranks 4
th among exporting countries. With a share of 2.65%, Turkey ranks 
9th among the woven clothing exporters in the world. 
4.71.  Over the past three decades, as a result of Asian 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 co mmodities to higher value-added manufactured 
products and fashionable goods. 
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 Customs 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 project is loca ted 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 th e production of chemicals, the country was able 
to leverage its flexible manufacturing 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 chemical 
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 in dustry include US$50 billion in exports. According 
to Turkey's Chemicals Industry 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 intermediate 
goods import. 
 Structure R&D policies specifically designed for the industry. WT/TPR/S/331 • 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 produced  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 chemic als, 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. Fu rthermore, 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;  in 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 subsector, 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 company) acquired in 2011 following Turcas's withdrawal from the shareholding 
structure. In 2012, SOCAR acquired the remainin g 10.32% of Petkim's shares held by the Prime 
Ministry Privatization Administration for US$168.5 million.
35 
4.79.  The subsector's main challenges 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 Turk ey, before re-exporting the higher-value-added 
finished products. To help this process, an integr ated 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 Turkey qual ifies 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 project is loca ted in an OIZ or not. In addition, under the 
Large-Scale Investment Incentives Scheme, invest ments of more than TL 200 million qualify for 
enhanced incentives through a higher state contribution towards the cost of the investment
36 
(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/.../Doc uments/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.invest.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 Investme nt Support and Promotion Agency of Tu rkey online information. Viewed at: 
http://www.invest.gov.tr/EN-US/INVESTMENTGUIDE/INVESTORSGUIDE/Pages/Incentives.aspx . WT/TPR/S/331 • 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  Financial 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, the sector employed 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: Turkstat. 
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 markets. The law introduced significant 
new provisions with respect to investor protection and investor rights, as well as regulations aimed 
at encouraging more companies to list, offering a wider range of financial instruments, promoting international market integration, 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 the Turkish financial system. The Banking Regulation and 
Supervision Agency (BRSA) is in charge of the banking system; the Capital Markets Board (CMB) is the main regulator of the capital markets; and the Treasury oversees the insurance industry 
(Chart 4.3). 
                                               
37 Prime Ministry Investme nt Support and Promotion Agency of Tu rkey online information. Viewed at: 
http://www.invest.gov.tr/en-US/infocenter/public ations/Documents/FINANCI AL.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 Ev aluation of Capital Adequacy of Banks (No. 28756), 
Regulation on Capital Conservation and Countercycl ical 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 • Turkey 
 
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  Chart 4.3 Regulatory structure of the financial markets 
Banking
Banks' Association of Turkey
-P a r t i c i p a t i o n  b a n k sCapital Markets
Turkish capital markets 
associationInsurance
Banking Regulation and 
Supervision Agency 
(BRSA)Capital Markets 
Board (CMB)Undersecretariat of 
Treasury
-B a n k sParticipation banks'
association of Turkey
Association of financial 
institutions
-B a n k s
- 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-A c t u a r i e s
-I n t e r m e d i a r i e s
- 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 in 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 we ll capitalized with a loan-to-deposit ratio of 
118% in 2014. Bank assets have grown over the re view period, but remain reasonable: equivalent 
to 114% of Turkey's GDP and the ratio of non-perf orming loans to total lending stood at 2.9% in 
2014. However, one of the biggest risks in the bankin g sector is the rollover risk associated with 
the rise in external foreign exchange funding. Th e IMF also 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 financing of terrorism frameworks. This followed measures 
                                               
40 Banking Regulation and Supervision Agency (BRSA) website: http://www.bddk.org .tr/WebSitesi/ 
english/Institutions/Banks/Banks.aspx . 
41 The SDIF is responsible for the protection of publ ic rights, manageme nt 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 • 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 wi th the BRSA approving the transfer shares of 
Alternatifbank A. Ş. to Commercial Bank of Qatar by the Re solution dated 1 July 2013; the transfer 
of 79.9% of shares of Taib Yat ırım Bank A. Ş. to Pasha Bank OJSC of Azerbaijan by the Resolution 
dated 26 December 2014 (the bank's name was changed to Pasha Yat ırım Bankas ı A.Ş.); and the 
transfer of 75.5% of shares of Tekstil Bankas ı A.Ş. to Industrial and Commercial Bank of China 
Limited by Resolution 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 Pension Fund  40.2%  
   Republican People's Party  28.1%  
Ziraat Ban k 247,600 10,717 5,179  Undersecretariat of the Treasury 100.0%  
Garanti Ban k 218,919 10,682 4,162  Doğuş Holding A Ş 24.2%  
   Banco Bilbao Vizcaya Argentaria SA 25.0%  
Akban k 218,670 10,217 4,333  Sabanci Holding, Affiliated Institutions and 
Individuals  48.9%  
YapiKredi Ban k 194,959 8,711 2,056  Koç Financial Services  81.8%  
   Other 18.2%  
Halk Ban k 155,423 7,478 2,727  Privatization Administration  51.1%  
VakifBan k 163,551 7,910 2,292  Foundations represented by Prime Ministry 
General Directorate of Foundations 58.4%  
Finans Ban k 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%  
Denizban k 94,403 4,588 1,215  Sberbank of Russia  99.9%  
TEB 62,992 3,447 795 BNP Paribas Fortis Yat ırım Holding A. Ş.and 
Çolakoğlu Group Joint Venture (50/50) 55.0%  
   BNP Paribas Group  41.8%  
Source: Annual Reports, banks' on line information, and informatio n provided by the authorities. 
4.89.  There is significant foreign presence in th e banking subsector, 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 deposit banks (representing about 30% of total bank assets in 2014
44), and four development/investment banks 
(representing 3% of total bank assets).45 
4.90.  The banking sector in Turkey is regula ted 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 principles and procedures rela ted 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 the EU. The 
BRSA is led by a board of seven members, ea ch 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/infocenter/publications/Documents/ 
FINANCIAL.SERVICES.INDUSTRY.pdf . 
44 Türkiye Cumhuriyeti Ziraat Bankas ı, Türkiye Halk Bankas ı, Türkiye Vak ıflar Bankas ı T.A.O, Adabank 
A.Ş., and Birle şik Fon Bankas ı. 
45 İller Bankas ı, İMKB, Takasbank, Türkiye İhracat Kredi Bankas ı A.Ş., and Türkiye Kalk ınma Bankas ı 
A.Ş. WT/TPR/S/331 • 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 establishment,  operation, share transfer, merger, transfer, 
branch and representative's office opening permissions for banks, and the referred permits other than representative's office opening permissions issued for non-bank financial institutions 
(financial leasing, factoring and financing companies). Banks resident in Turkey must seek 
permission from 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 branches that foreign banks may open. Foreign banks are allowed to raise capital domestically. There is no distinction made between nationals and 
foreigners on the application 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, the BRSA has begun to implement the Basel III accord. 
4.3.1.2  Insurance 4.94.  The Turkish insurance market comprises in surance companies, reinsurance companies, and 
insurance intermediaries (brokers and agencies). At the end of 2014, there were 64 insurance 
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 Reaürans 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% in 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, the annual premium production in insurance was TL 25.9 billion (almost 
US$11.8 billion). The share of non-life insurance pr emiums 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 regulate d 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 regulator of the private pension system. 
                                               
46 Article 7 of the Banking 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 • Turkey 
 
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  4.98.  Insurance Law No. 5684 of 2007 governs th e supervision of insurance and reinsurance 
companies. All insurance and reinsurance companies, whether Turkish or foreign, are subject to the same legislation. There is no restriction 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 branches, prov ided that they have not been prohibited in their country of 
operation. Insurance and reinsurance companies must obtain a licence from the UoT.50 A separate 
licence is issued for each branch. Licences ar e 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 and reinsurance 
companies being TL 5 million. Insurance and rein surance 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 UoT.
51 Circular 2007/4 states the amount of additional capital 
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 purpose 
of the Association is to ensure the development of  the insurance profession; to secure solidarity 
among insurance companies; and to adopt and im plement all the necessary measures needed to 
control unfair competition. Insurance companies are subject a self-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, which 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 instead of products designed sp ecifically for long-term savings. The right to 
access state contributions depends on the duration of involvement in the private pension system. The state incentive for private pension scheme took  the form of 25% direct contributions since 
2013. In December 2014, the total value of the pens ion 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 construct independent dispute 
resolution mechanisms in the case of any disputes . Turkey signed the International Association of 
Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU)
52 on 
20 March 2013. 
4.3.1.3  Securities 
4.103.  At the end of 2014, there were 582 companie s registered with the Capital Markets Board, 
425 of which were listed on Turkey's stock exchan ge, Borsa Istanbul (BIST). The number of listed 
firms increased by 5% from 404 in 2012. Total trad ed 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 pa id-up capital provided that it does not exceed the 
rate of increase in the Producer Price Index decided by the Turkish Statistical Institute (Article 5.4 of the Insurance Law). 
52 The IAIS Multilateral Memorandum of Understandin g (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 • 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 Exch anges (WFE) figures, in 2014, in terms of traded 
value, Borsa İstanbul Equity Market ranked 7th among emerging markets and 2nd in the region53 
following the Saudi Stock Exchange. 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 the 
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 publicly 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 Association (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, a ppraisal 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 
Intermediary 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 capital market activities. 
Source: CMB. 
4.106.  All investment firms, banks that are authorized for capital market operations, portfolio 
management companies and investment trusts sh ould become members of the Turkish Capital 
Markets Association (TCMA).55 TCMA sets professional rules an d monitors the members to provide 
a fair and disciplined capital market. TCMA esta blishes and enforces regulations on subjects 
assigned by legislation or by the CMB. 
4.107.  A new regulatory framework to enhance the effectiveness of market supervision and 
strengthen market infrastructure entered into force on 30 December 2012 to replace the previous 
law, which was first enacted in 1981 (Box 4.1). 
                                               
53 Emerging Europe, the Midd le East, and North Africa. 
54 Information provided by Borsa Istanbul. 
55 Article 74 of the Capital Markets Law. WT/TPR/S/331 • Turkey 
 
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  Box 4.1 Capital Markets Law (No. 6362 of 2012) 
The new Capital 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 market 
operators for the first time. 
 
Key improvements include the strengthening of a sanctioning regime; redefining market 
manipulation and insider trading based on EU le gislation 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 permissi on. 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  collateral agreement (facilitating the transfer of 
full ownership of the securities) is introduced an d some protective provisions regarding the rights 
of parties are stipulated. 
 
New capital market institutions56 were introduced such as central clearing institutions, 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 mark et operators is subject to the approval of the 
Council of Ministers, upon the recommendation of the CMB. Alternative Consumer Dispute 
Resolutions are introduced in the CML for the disp utes 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 securities 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 new 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 markets, 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 fulfilling 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 Borsa 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 fina nce 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 2015. 
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 • Turkey 
 
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  order to raise funds from capital markets by co mpanies with growth and development potential, 
can be traded. ECM traded shares are registered wi th 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 an d their trading is also carried out on the same 
electronic platform with the Equity Market, alth ough 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 their own name and in the account of th e 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 underlying assets;  
 safekeeping and administration of capital mark et 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 additi on 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 without 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 Serv ıces, 
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 transmission of orders and invest ment 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 institutions 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 without 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 Make r" method is used for trading while the "Single 
Price" method is used for the eq uities without a market maker. 
59 According to the Article 39 of the CML. 
60 Article 43 of CML. 
61 Ancillary services provide advisory services; grant credits; lend or provide foreign currency services 
associated with investment services and activities; provide investment research, financial analysis or general 
advice; provide services in relation to the conduct of underwriting; provide intermediary services for obtaining financing by borrowing or through other means; and provide wealth management and financial planning. WT/TPR/S/331 • Turkey 
 
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  under management (Table 4.24). If assets under management exceed TL 10 million, the company 
is required to hold additional capital of 0.02% fo r 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 December 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 privatiz ation); 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 performing 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 ha s been determined by CMB that they have been 
lost. 
4.119.  The introduction of an electronic platform for mutual 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 advantag e 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, Turk ish 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 in vestment 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% withholding 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 
tax
b 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 • 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 others 
 0% withholding 
taxb 0% withholding tax 
Dividends on equities  15% withholding tax is 
applied by the corporation distributing dividends
d 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 de posits varies from 15% ( 18%) for maturities under 
6 months, to 12% (15%) for deposits with a matu rity 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 from 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 must 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 sy stems 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 health care workers, a similar trend is observed with 
only 1.8 doctors per 1,000 population, also the lo west 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 PvtHE 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 Statistics, 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 • 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 majority of in ternational 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 technology 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 health expenditures. For 
Turkey, imports of health services were estimated at approximately 0.5% of health expenditures in 
2012, and exports (defined as domestic provis ion of health services to non-residents) 
approximately 1%. Exports were however growing strongly, 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, were 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 a ccess and friendly health care system including 
strengthened primary care; health care provider s equipped 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 management; 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 have access to free primary care. 
4.127.  Regulatory amendments in 2010 facilitated the expansion of private health insurance in 
Turkey by creating supplementary insurance allowi ng patients to be treated at private hospitals 
that apply higher charges. However, there are gove rnment 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, privat e healthcare has increased significantly in recent 
years, in part due to long waiting lists in state-run hospitals and the availability 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=1444319566&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 information. Viewed at: http://www.oecd-
ilibrary.org/docserver/download/8114211e.pdf?expires=1444319566&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/eu rostat/data/database . 
66 The Social Security and Universal Health Insurance Law. WT/TPR/S/331 • Turkey 
 
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  Turkey today. Under recent legislation on Public -Private Partnerships (see Section 4.3.2.5) there 
are more joint healthcare initiatives involving the state and private entities. 
4.129.  The private healthcare sector has been grow ing, and its growth rate surpasses that of the 
public sector, as the growth in hospitals, ho spital beds, and number of visits demonstrates. 
Between 2011-14 the number of hospital 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 he althcare 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 organ 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), Associ ation of Private Hospitals and Healthcare 
Organizations (OHSAD), Foreign Economic Relations Board (DEIK), Turkish Pharmacists' 
Association (TEB), Association of Accredited Ho spitals, Turkish Nursing Association, Turkish 
Midwives Association, and the Turkish Dental Association (TDB). They are involved in accreditation 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 health 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 • Turkey 
 
- 158 - 
 
  based on a human-centred and holistic approach; an d to continue to develop the health system as 
a means to contributing to the economic and soci al 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 adds the additional strategic goal that the health system should contribute 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 Turk ey plans to promote the contribution 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 Produc tion, 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 Transplantation 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 Pharmacists 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 Its 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, online  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 • 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 legislation 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 usua lly 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 sector and then subsequently 
leased by the Ministry of Health. As of 2015, th ere 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 tr ade of health services. Turkey has signed Social 
Security Agreements with total 27 partners. Sixteen  of these agreements 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, to gether 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 se rvices requiring immediate treatment and which 
cannot be postponed until the arrival at the home country. One could 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 according to the legislation of that country. 
4.140.  Similarly, Turkey has signed bilateral ag reements covering health care services for a 
definite number of patients from ten partners. Pati ents entering health care services pursuant to 
these agreements are treated 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 ha s regulated the licensing of private hospitals. 
The law on private hospitals, pursuant to amendments 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 in private hospitals.
73 
4.142.  In 2010 the Ministry of Health issued a Dire ctive 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 charge a premiu m. 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 • Turkey 
 
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  4.143.  Prices for pharmaceuticals are regulated in Turkey by the Pharmaceuticals and Medical 
Devices Institution 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 al so requires a licence. The Ministry of Health 
requires that only specialized Turkish doctors having the necessary 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 right 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 removing 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 doctors 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 la boratories, as they are regulated to be in line 
with the medical laboratories legislation.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 classification 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 investments (surgical hospital services, medical ho spital 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 framework of the Regional Investment Incentive Scheme (see 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 (requiring prior authorization issued by the Ministry of 
Health), dialysis centres, analysis laboratories, magnetic imaging centres, assisted reproductive treatment care centres, radiotherapy and oncology  centres, physical therapy and rehabilitation 
centres, oral and dental health centres, and he reditary disease diagnosis investments, that are 
capable of getting a licence from the Ministry of Health, can be supported within the framework of 
the General Investment Incentive Scheme (see 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 programmes are numerous and include various tax incentives or rebates (Table 4.29). 
4.148.  Turkey was considering establishing Health Free Zones, similar to Free Zones (see 
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, rehabilitation centres, thermal tourism facilities, nursing homes, health techno-cities, 
and R&D centres.
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 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 Minist ry Investment Support and Promot ion Agency online information. 
Viewed at: http://www.invest.gov.tr/en-US/infocenter/publications/Documents/HEALTHCARE.INDUSTRY.pdf . WT/TPR/S/331 • Turkey 
 
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  Table 4.29 Investment incentives fo r certain healthcare subsectors 
Incentives Regions 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 
Insurance 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: http://www.kpmgvergi.com/PDF/Yayinlar/KPMG -Global-Yayinlar/Health%20Sector%20New%20 
Investment%20Incen tive%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 thr ee 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 Health'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 he althcare (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 retention 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 opening a re presentation 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, online  information. Viewed at: http://www.saglik.gov.tr/SaglikTurizmi/dosya/1-
91778/h/turkiye-medikal-turizm-degerlendirme-raporu-2013.pdf . WT/TPR/S/331 • Turkey 
 
- 162 - 
 
  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 procurement 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 Agen cy 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 ca re establishments more than tripled. However, 
there was also significant growth in 2013-14 for fore ign patients receiving healthcare from public 
establishments (Table 4.31). The main reasons for th is large growth were attributed to the quality 
of service in the medical tourism sector; qualified and young labour force; presence of accredited 
hospitals; developed technological infrastructure; reasonable prices; direct flights to many 
destinations and proximity to foreign 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 on line 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 healthcare 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 medical 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 private 
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 By-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 • Turkey 
 
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  4.3.3  Telecommunications 
4.157.  Turkey's telecommunications sector account ed 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 investment s 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 million, 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%2fSay falar%2fPazar_Verileri%2f2015-
Q2.pdf#lock . 
4.158.  Apart from VAT, the telecommunications se ctor 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 telecommunications 
sector were separated under Law No. 4502 establishing the first sectorial body in Turkey, 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 La w, 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 Minist ry Investment Support and Promot ion 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_ha kkinda/kurulus/index.php and 
WT/TPR/S/259 . WT/TPR/S/331 • 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 th e 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.  Universal services are governed under the law on Universal Services of 2005, alongside its 
amendments and related by-laws.87 Such services include fixed 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 of 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 settlem ents 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 operators at certain intervals, but not more than three years, with due considerat ion 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 improvement of the information society; 
 services regarding the provision of digital br oadcasting performed by the utilization of 
various broadcast media and technology via digital terrestrial transmitters to cover the entirity of settlements country-wide; 
 every kind of telecommunications 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 communication in case of natural disasters; 
 services to set up and operate infrastructure providing communication services for the 
settlements with a population under 500 and located 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 enhance 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 benefit of citizens with disa bilities in equal opportunities in information 
and communication technologies, in order to eliminate obstacles to social services, and 
take measures for solutions of the problem in this field. 
                                               
86 Turkey's Ministry for EU Affair s 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 • 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 th e mobile and fixed operators provide internet 
services at broadband speed, services under all of  the universal service projects are provided as 
broadband internet. Universal service revenues are collected by the MTMC and include: 
 1% of Türk Telekomünikasyon A Ş (Türk Telekom) and all operators' net sale proceeds 
from the previous year, except from GSM operators;  
 2% of the authorization charges collected by the ICTA; 
 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 calculated at the end of 
the fiscal year. 
4.165.  Universal service costs 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 implementing 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 tari ffs, provided that they comply with the ICTA's 
regulations 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 information was introduced 
on the operators' webpages for test purpos es. 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, monitoring, 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 se t under Board Decision No. 2013/DK-ETD/201 for 
SMS termination 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 termin ation 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 Telekom RI O; 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 Refe rence Co-location Offer; Türk Telekom Reference 
Duct Sharing and Dark Fiber Offer; Türk Teleko m 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 Affair s online information. Viewed at: http://www.abgs.gov.tr/files/AB_ 
Iliskileri/AdaylikSureci/IlerlemeRaporlari/2013_tr_progress_report.pdf . WT/TPR/S/331 • Turkey 
 
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  Table 4.33 Interconnection tariffs of fixe d 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 on 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 Telekomünikasyon 
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 under 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 IC TA with Board Decision No. 2015/DK-ETD/359. 
4.170.  The 2009 By-Law on 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. If no  agreement is found between the parties after two 
months of an access request being submitted, eith er operator may request the ICTA to initiate 
dispute settlement proceedings. If the request is  granted by the ICTA, the dispute resolution 
process will commence through a number of meetings. If the dispute 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 disp uted areas. The Electronic Communications Law and 
By-Law No. 27343 grant the ICTA responsibility fo r dispute resolution, excluding court decisions.
93 
Within the framework of dispute resolution proced ures carried out by the Authority, the settlement 
applications of operators' interconnection disput es 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 Communications 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 Such Publication came into 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 implemen ted by the Internet Department of the 
Telecommunications Presidency, which is directly connected to the president of the ICTA. 
                                               
93 ICTA online information. 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 • 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 hours of notification. The access-blocking and/or content-removing decisions shall be realized by a judge or Telecommunications Presidency up on order of the Prime Ministry or relevant 
Ministries where delay is prejudicial. Prejudicial decisions shall be submitted 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 the internet law, prison sent ences 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 fines imposed 
on service providers. Monetary fines vary depe ndent 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 available. 
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. Additionally, 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 resource allocation, prior authorization and right of use must be obtained 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 when the specific criteria are not 
met such as paid-in-capital criteria. Within the authorization period, telecommunication operators 
are subject to an annual Administrative Fee equivalent to 0.35% of its previous year's net sales, and a Right-of-Use fee which is set by the Boar d of Ministers upon the recommendation of the 
MTMC and the ICTA.
97 
4.176.  As of June 2015, there were 672 operat ors providing services in the market holding 
1,105 authorizations. Of these, there were 411 inte rnet service provider authorizations and 204 
fixed telephone service authorizations.98 
4.177.  TTNet, a subsidiary of Türk Telekom, hold s a 53.2% market share in fixed phone services 
and 74.3% of the fixed broadband internet mark et 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 ma rket, 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 of 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 treasury (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. 272 41 for Regulation on Authorization Regarding the 
Electronic Communications Sector. 
98 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 the authorities. 
99 ICTA, Electronic Communication Market in Turkey – Market data 2014 Q3 and Market data 2012, Q4 . WT/TPR/S/331 • Turkey 
 
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  and the remaining 15% of the shares are public ly 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 in roads 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. Ther e are three mobile service operators in Turkey: 
Turkcell holds the largest market share, 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 majo rity of their shares, 90% of Avea shares are 
owned by Türk Telekom. The three mobile service operators respectively generated, 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 services (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" auth orizations. To actively start a MVNO service, 
MVNO operators should sign an agreement with the hosting MNOs. So far, none of those MVNOs 
started MVNO services actively, therefore no subs cribers are recorded. Virgin Mobile entered the 
Turkish mobile market in 2015 as a MVNO after two years of negotiations.103 According to the 
latest amendments in Law No. 406, MVNOs are ma ndated to pay Treasury Share (15% of gross 
sales resulted from MVNO authorization) every mo nth. In addition, MVNOs pay administration fees 
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 telecommunication sector, 
the Vision aims to reach 30 million broadband subscribers; provide internet connection for 14 million households reaching a speed of 1,000 Mbps; increase 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 em ployees 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 sector. The revised Vision aims to reach 60 million broadband subscribers; 
increase the ICT's share of GDP to 10%; reach a broadband internet usage rate of 80%; and 
provide broadband access via next generation networks for every household and business. The 
number of broadband subscriptions has already re ached 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. Viewed at: 
http://www.ttinvestorrelations.com/turk-telekom-group/group-companies/ . 
101 ICTA online information. Viewed at: http://www.btk.gov.tr/File/?p ath=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 September 2014, Virgin Mobile to launch telecom services in Turkey : 
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 Mini stry Investment Support and Prom otion 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 Technolo gical 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 from TÜB İSAD and Turkstat. Turkstat  online information. 
Viewed at: http://www.tuik.gov.tr/UstMenu.do?metod=temelist  and Informatic Industry Association (TÜB İSAD) 
online information viewed at: http://www.tub isad.org.tr/Tr/Library/Sayfalar/Reports.aspx. 
106 Turkstat publication, "Use of In formation and Communication Technology (ICT) in Enterprises, Use of 
Information and Communication Technology (ICT ) in Households and Individuals (16-74)". WT/TPR/S/331 • Turkey 
 
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  4.3.4  Tourism 
4.3.4.1  Overview 4.183.  Turkey's tourism industry has achieved significant 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 5 billion to the 
GDP of Turkey, or around 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 targeting 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 re gulating tour operators. Turkey continues to 
increase incentives, both the amount and progra mmes available, to encourage the growth of the 
industry. 
4.3.4.2  Tourism by the numbers 
4.185.   Turkey's tourism industry has achieved su bstantial growth during the period, as increased 
tourism receipts continued to climb, along with the number of visitors. Turkey has invested in its infrastructure as the number of facilities and be ds grew by 17 and 19%, respectively, over the 
period, while at the same time the occupancy rate remained relatively steady. All categories of 
tourism exhibited growth over the period but dome stic 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 facilities:     
 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 licenced 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: http://www.tursab.org.tr/ ; Turkstat online information: 
www.turkstat.gov.tr/ ; and information provided by the authorities. 
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 • Turkey 
 
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  The procedure 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. Ther e 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 resp onsible for all national tourism activities, which 
comprise mainly policy planning; public land allocation; certification and control of tourism establishments; and promotion and marketing acti vities. There are also city tourism councils 
promoting particular regions. 
4.189.  In addition to government involvement, th e 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 Ex changes 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 Turkey – 2023 as instigated by the 10
th 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 sector. 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 reve nues by 2023." The Tourism strategy proposes 
22 specific actions to achieve the vision, including: strengthening international cooperation; 
diversifying tourism products; making domestic and international 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 
Subsector Strategy 
Planning To exhibit a planning approach that su pports economic growth, is physically applicable 
and socially oriented and fairly reflec ts the principle of sustainable tourism 
Investment  To boost tourism investments by designing incentive schemes 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 contex t 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 infrastruct ure problems of dens e 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 February 2007. WT/TPR/S/331 • Turkey 
 
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  Subsector Strategy 
Marketing and 
promotion To commence with marketing and promotion activi ties at each destinat ion, in addition to 
the national marketing and promotion campaign s with the ultimate objective of branding 
on a national, regional and local scale 
Education To set up and introduce an education pr ogramme 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 ty pes led particularly by health, thermal, 
winter, golf, sea tourism, ecotourism and pl ateau tourism, conference and expo tourism 
activities   
Host rehabilitation 
efforts for tourism 
areas To make arrangements for handling and stre ngthening 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 defini te themes, by rehabilitating historical and 
natural texture 
Tourism cities To plan tourism settlements capabl e 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 tourist attractions such as geothermal resources, mountains, seas, historical heritage, cultural treasures, natural wonders, and folklore. Turkey has long established 
itself as a mainstream destination for many European tourists due to its close proximity and 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 activities (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%Incoming tourists
(Total: 41.4 m)Domestic visitors
(Total:  70.9 m)a b
 
a Non-resident tourists include fore igners and citizens living abroad. Based on the number of departing 
visitors. 
b Based on the number of trips. 
Source: Turkstat. Viewed at: http://www.turkstat.gov.tr/Start.do . 
4.194.  Pursuant to Turkey's Tourism Diversific ation Sub-strategy, it is promoting and giving 
priority to a number of alternative types of tour ism to expand the tourist season and achieve a WT/TPR/S/331 • Turkey 
 
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  better utilization of tourist infrastructure. Heal th 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 provid es for the preservation and utilization of natural 
tourism resources, incentives, a tourism developmen t fund, yacht operations, regulations, etc. The 
law also has related regulations that are amended more frequently. Other important tourism legislation include:  
 Legislation on Licensing and Qualification of Tourism Establishments, which aims to regulate 
the types of establishments licences are given to, minimum requirements for 
establishments, and application 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 to 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 and 
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, travel agency personnel, security to 
be received from the travel agencies, credit and other facilities provided, inspection and 
supervision, and cancellation and penalties. Sect ion two on the association of travel agencies 
provides for its purpose and establishment, 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 
legislation against foreign travel agencies was abolished.
113 
4.197.  The law requires that travel agency servic es be provided by travel agencies established 
and licensed in Turkey. The Ministry of Culture an d 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 percen tage. Furthermore, each travel agent is required 
to register and become a member of the Association of Turkish Travel Agencies (TURSAB). 
4.198.  Furthermore, there are two related regulati ons 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; es tablishment, characteristics, and inspection of 
travel agencies; qualifications of the travel ag ency 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, Disciplinary 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 Gazette  No. 22747 4 September 1996. WT/TPR/S/331 • Turkey 
 
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  4.199.  One of Turkey's more recent legislativ e developments was the passage of the Tourist 
Guide Professions Act in 2012.116 This law provides rules, regula tions, and enforcement procedures 
related to the tourist guide profession. The law prescr ibes 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 re ceiving a graduate or undergraduate 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 Professions Act was issued in 2014 and further 
expands upon the provisions in the law, in particular the tour guide certificate programme, 
examination, enforcement, tour guide chambers, co ntrol of tour guide services, disciplinary board, 
and professional organizations.
117 
4.201.  Turkey has laws on the related areas of co nserving 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 Cultural Immovables, and the Law for 
the Approval of European Declaration on Protecti on 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 agents, 
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, aparthotels, 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 centres, 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 and villas. It is obligatory 
for travel agents and sport activities for tourism purposes to have a licence from the Ministry to operate.  
4.204.  Other tourism establishments do not have to have a licence 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 regulati ons. If these facilities fail to obtain a licence 
from the Ministry, the public 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 licences: Tourism Investment Certificate, 
i.e. a certificate issued by the Ministry to investors in the tourism sector for a specific investment 
period; and Tourism Establishment Certif ıcate, i.e. a certif ıcate 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 
Certificates 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 uses an official classification scheme implemented by governmental 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 information. Viewed at: http://teftis.kulturturizm.gov.tr/ 
TR,14104/kultur-ve-turizm-anlasmalari-dizini.html . WT/TPR/S/331 • Turkey 
 
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  Turkey has a 5-star classification scheme for hotels and holiday villages. 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 licence. 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: 1
st class, 2nd 
class, 3rd class, and cafeterias. 
4.3.4.8  Incentives 
4.207.  Turkey provides a number of incentives to  industry (see Sections 2.4.4, 3.3.1.3, and 
3.3.2), but there are also specific programmes de signed to benefit the tourism sector. Turkey's 
main investment incentive schemes (see Section 2.4.4.1), i.e. general, regional, priority, and 
strategic, all provide incentives for the tourism sector, as well as the programmes for SMEs (see 
Section 3.3.1.3). Specific tourism incentive programmes 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 Gr ant 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 duri ng the period 2011-14 and the total amount of 
investments supported grew significantly, 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 corporate taxpayers benefit from a temporary property tax exemption for the buildings used for the purposes mentioned in the law for five years if they have a tourism 
establishment certificate. Turkey's Eximbank prov ides credits for tourism activities, and there is 
support for international tourism fair participation. Travel agents can receive 50% of the participation costs 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 an d 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 varied 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, development, or maintenance of 
                                               
120 Law No. 1319, Article 5. 
121 Law No. 5225. WT/TPR/S/331 • 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 Progra mme of Turkey (TEDA) is a subvention project 
for the publication 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 tourism 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 treatmen t that were inscribed in the schedule since 1995. 
Turkey's WTO schedule 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, cr edits from the Turkish Development 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 guarantees 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 requirem ent for establishment 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 provid es 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 Abroad, Turk ish 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 proporti on 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 limitation is still valid with respect to foreign-worker restrictions. In the 
area of hotels and restaurants, the applied re gime is equivalent to the WTO bound regime. 
4.3.5  Distribution 4.217.  Distribution services are important to th e Turkish economy with wholesale and retail 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; nevertheless, 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. 2863. 
123 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 • 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 su permarket segment is largely dominated by local 
shops, called bakkals (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 th e 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 Authority
128 (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 Competition131 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 produc ers, retail outlets, including shopping malls. 
Implementing regulations 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. In 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. In addition, the Tu rkish 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 at tractiveness is highest at 100%. Online information. 
Viewed at: https://www.atkearney.com/consumer-products-retail/global-retail-development-index/2015 . 
127 Koç, AA., Boluk, G., Kovac ı, 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, Greece, 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 Trad e 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 Competition 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-seaso n products, export excess es, 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 outside 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 • Turkey 
 
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  of building licences for shopping malls. Moreover, for shopping malls, the law requires that at least 
5 per thousand of total sales area of a shopping ma ll 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 conduct rare businesses 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 operat ed 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 businesses. 
4.224.  The Law on Regulating Electronic Commerce and its implementing regulations
136 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 during the order; and other issues about the intermedia ry service providers providing the platform for 
electronic commerce. 
4.225.  Under the draft secondary legislation on Retail Trade Law (Regulation on Shopping Malls), 
economic needs tests are not established, however such indicators do exist under the article regulating the licensing of shopping malls, in which advisory opinion of professional organization 
associations are sought. The regulation states that the professional organization associations are 
to form their '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 supermarkets, 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, ei ther 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 shopping malls has increased rapidly, reaching 333 in 2014 and generating 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 acquisitions 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 Tu rkey with sales of US$165 billion in 2013. In 2013, 
the Turkish food sector imported US$5.9 bi llion, 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 domestic 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 encouragement. 
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 Co mmercial Electronic Messages and Regulation on 
Service Provider and Intermediary Service Provider Re garding Electronic Commerce  were prepared by The 
Ministry of Customs and Tr ade 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 Industry Report, Co nsumer Goods and Retail.  WT/TPR/S/331 • Turkey 
 
- 178 - 
 
  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-commerce 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 reta ilers and restructuring in Turkey, 2008 
Company name 
& ownership 
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 Tansas 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) 
Tansas 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 
Sabanc ı 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 
established a partnership with 
Sabanc ı 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, Co nsumer Goods and Retail.  WT/TPR/S/331 • Turkey 
 
- 179 - 
 
  Company name 
& ownership 
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 Kiler in 1994. It 
purchased the 51% of Canerler supermarket chain in 2005 and Güler market in 2006. It also took over the Kar ıncalar 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, Kovac ı 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', Chania, Crete, Greece3-6 September 2009. Viewed at: http://ageconsearch.umn.edu/bitstream/58077/2/Koc-Boluk-Kovaci.pdf . WT/TPR/S/331 • Turkey 
 
- 180 - 
 
  Table 4.39 Major retailers (n umber 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 
Ayd ın 134,142 8 1,041,979 129 
Bal ıkesir 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 
Çank ırı 14,500 1 183,550 79 
Denizli 127,096 5 978,700 130 
Diyarbak ır 196,775 6 1,635,048 120 
Düzce 13,500 1 355,549 38 
Edirne 38,435 3 400,280 96 
Elaz ığ 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 
Kahramanmara ş 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 • Turkey 
 
- 181 - 
 
  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 
Şanl ıurfa 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 
Zonguldak 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 • Turkey 
 
- 182 - 
 
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- 184 - 
 
  5  APPENDIX TABLES 
Table A1.1 Merchandise export s 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 st eel 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 knit ted/crocheted fabrics, not 
impregnated/coated, etc. 1.0 1.0 1.0 1.1 1.0 
       6584 Bed linen, ta ble 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, br eeches, etc., women's/girls', 
not knitted/crocheted 1.0 1.0 1.0 1.0 1.0 WT/TPR/S/331 • Turkey 
 
- 185 - 
 
   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 • Turkey 
 
- 186 - 
 
  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 whea t (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 Radio 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 • Turkey 
 
- 187 - 
 
  Table A1.3 Merchandise expo rts 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 Independent 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 • Turkey 
 
- 188 - 
 
  Table A1.4 Merchandise imports 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 Europe 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. of 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 • Turkey 
 
- 189 - 
 
  Table A2.1 Turkey's Involvement in Dispute Settlement 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 Cotton 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 and 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 China 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 Cars 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, AB 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 • Turkey 
 
- 190 - 
 
  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 
Appellate 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/Ukraine 13-Ma r-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 • Turkey 
 
- 191 - 
 
  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 Articl e 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/REG341/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 • Turkey 
 
- 192 - 
 
  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 Countervailing duty ac tions (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 13/08/2012  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 • Turkey 
 
- 193 - 
 
  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/TUR/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 
10/02/2012 
 
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 • Turkey 
 
- 194 - 
 
  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 
24/04/2014 
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/TUR/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 • Turkey  
 
- 195 - Table A2.3 Foreign direct in vestment restrictions, 2015 
Sectors Legal source Restriction 
Broadcasting Law No. 6112 on the Establishment of 
Radio and Television Enterprises and their Media Services,  15 February 2011  The total direct foreign capital sh are 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 broadc asters, the chair, the deputy chair and the majority 
of the Board of Executives 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 Turkis h citizenship. Arrangements ensuring these provisions 
shall be clearly stated in the main contracts of such corporations. 
Domestic or foreign shareh olders shall by no means own preference shares. 
Private radio and television enterprises may appoint on e or more managers in charge by considering the 
significance and the specifications of their media se rvices. 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 Operations (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 the 
majority of voting shares are owned by Turkish citi zens. Airlines, of which th e 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  and 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 
transportation 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 management 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); 
Privatization 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 ow ned by foreigners also ma y 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 conformity 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, foreign 
persons cannot operate in tuna fi shing by renting Turkish vessels.  
  WT/TPR/S/331 • Turkey  
 
- 196 - 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 financ ial 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 Tu rkish financial advisors and have rights to perform 
similar services in their own countries. 
The Public Oversight, Accounting and Auditing Standards Board anno unces foreign audi ting firms and 
auditors approved to perform statutor y audit in Turkey in accordance wi th 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 Law 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 financia l leasing companies can engage in 
financial leasing transactions.  
Establishing a financial leasing, factoring and financin g company, which has to be  in the form of a joint 
stock company, is subject to prior permission of th e Banking Regulation and Supervision Board (Board). 
Permission to operate should al so be received following the co nsummation of establishment. 
All payment and electronic money services can only be conducted by banks and institutions 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 issu e bank cards or credit cards and required to be 
founded in the form of joint-stock companies in ac cordance 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 in to merchant agreements. 
The performance of investment servic es and activities as a regular occu pation, business or a professional 
activity requires permission from th e Board. Investment serv ices 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 , portfolio 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 "s emi open-ended", "fully open-ended" and "closed-
ended" structures. Pension funds are founded by private pension companies established in Turkey. 
Portfolio management and investme nt advisory services may be pe rformed by non-bank securities 
intermediaries, non-deposit taking banks and portfolio management companies established in Turkey. 
An insurance company or reinsurance company that is  to operate in Turkey must be established as a 
joint-stock company or a cooperative. Foreign insura nce and reinsurance companies may also operate in  
  WT/TPR/S/331 • Turkey  
 
- 197 - Sectors Legal source Restriction 
Turkey by opening branches, provided that they have not been prohibited in their country of operation. 
Following establishment, insurance and reinsurance companies must ob tain an operational licence from 
the Undersecretariat of Treasury; a separate licenc e is issued for each insu rance branch. Other than 
specific exceptions, cross-border supply of insurance services is prohibited.  
Mining Mining Law No. 3213 Foreigners may invest in the mining subsector on ly through companies established in Turkey in 
conformity with its legislation. (Chapter II(4)). However, exploration and ex ploitation of boron are 
reserved for the Government . For uranium and thorium, the public sector may explore and exploit these 
minerals without selling. On the co ntrary 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 re al 
property in Turkey. Foreign national natural persons can acquire all kinds of real property in the area of 
private property (residence, office, land, field, etc.). 
A foreign national natural person acquiring a real proper ty without building (land, field, etc.) is obliged to 
develop a project and to submit the project to the relevant ministry for appr oval within two years. 
A foreign national real person can 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 fo reign legal person can acquire real property and 
limited real rights in Turkey. Foreign legal persons other than these incorporated companies (foundations, 
associations, etc.) cannot acquire real property and limited real rights ca nnot be established in favour of 
them.  
Real property acquisitions of incorporated companies established in foreign countries as legal persons 
according to the law of their 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 exce ed 20% of Turkey's total electricity generation for 
the previous year. 
The amount of electrical energy which the private sector legal entities holding a supply licence may 
purchase from generation and import companies shall no t exceed 20% of the amount of electrical energy 
consumed within the country within the previous year. Al so, the amount of electrical energy to be sold by 
the said legal entities of private sector to end co nsumers 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 total 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 th e administrative bodies mu st be Turkish nationals. 
Source: Information provided by the authorities. WT/TPR/S/331 • Turkey 
 
- 198 - 
 
  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 (tem porary) Increase from 30% to 40% 30.10.2012 
Fresh, chilled, and fro zen 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 animals (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 
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 ex traction or refining of 
sugar  Increase from zero to 31.5% 01.01.2015 
Processed sesamum seeds  Increase from 10% to 23.4% 01.01.2015 
Tools, implements, cutlery, spoons, and forks, of base 
metal, parts thereo f 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   
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 
Coconut 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 no t in the form of pellets  Reduction from 10% to 0% 02.09.2012 
Bran, sharps and other residu es, whether or not in the 
form of pellets, derived from the sifting, milling or other 
working of wheat, other cere als and leguminous plants 
and oilcake and other solid residues, whet her or not 
ground or in the form of pellets, resulting from 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 othe r bakers' wares Reduction from 27 % to 0% 01.01.2013 
Pectic substances for the pr oduction of bread, pastry, 
cakes, biscuits and other bakers' wares Reduction from 25 % to 0% 01.01.2013 WT/TPR/S/331 • Turkey 
 
- 199 - 
 
  Products Tariff change Effective date 
Malt extract for the production of bread, pastry, cakes, 
biscuits and othe r 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 for technical and industrial purposes  Reduction from 10% to 0% 01.01.2015 
Certain vegetable oils and fa ts 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 summary and status of G20 trade and trade-
related measures since October 2008. Viewed at: https://www.wto.org/english/ne ws_e/news14_e/trdev_05nov14_e.htm ,and information provided by 
the authorities. WT/TPR/S/331 • Turkey 
 
- 200 - 
 
  Table A3.2 New anti-dumping investigatio ns 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 September 2013 
Welded stainless steel tubes, pipes and profiles (HS 7306.40.20; 7306.40.80; 7306.61.10) China and Chinese Taipei Initiation of investigation on 
19 April 2012. Definitive duty imposed on 15 March 2013 
Diesel engines (HS 8408.90.41) China and India Initiation 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 Egypt 
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 imposed 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-dumping 
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 Ma laysia Initiation of investigation on 26 April 
2013. Definitive 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 November 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 thickness 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 duties (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 • Turkey 
 
- 201 - 
 
  Products concerned Exporter(s) affected Status 
Motor hoe (HS 8432.29.90) China Initiation of investigation on 26 March 
2014. Definitive 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 stainless 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 
Polyester 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 investigation 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 • Turkey 
 
- 202 - 
 
  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 13.11.2014 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 trapezoidal 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 appliances 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 tubes 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 an d 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, impr egnated, coated, covered or 
laminated with polyurethane 05.02.2005 31.10.2010 US$1-2.2/kg 
Refillable pocket flint lighters 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 vehicles of iron or steel 20.08.2005 03.05.2011 US$1,500/tonne WT/TPR/S/331 • Turkey 
 
- 203 - 
 
  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 of 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 synthetic 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 fasteners 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 fibres 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 • Turkey 
 
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  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 storage 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/kg 
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 Co mmittee 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 • Turkey 
 
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  Table A3.4 Safeguard investigations init iated 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 measures n.a. 
08.01.2013 Terephthalic acid 11.04.2014-11.04.2016 
Application of variable duty with 
liberalization annually: 1
st 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 ce rtain threshold 
level. 1
st 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. 1
st period: US$0.85; 
2nd period: US$0.80; 
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$0.85/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 • Turkey 
 
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  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 01.11.2008-31.10.2011 
Application of a fixed duty for imports of products below a certain threshold value. Liberalization annually: 1
st period: ranged from 
US$5.00-US$8.00/piece; 2
nd period: ranged from 
US$4.50-US$7.00/piece; 3
rd 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: 1
st period: ranged from US$3.75-
US$5.70/piece; 2
nd period: ranged from US$3.50-
US$5.40/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: 1
st period: ranges from US$3-
5/piece; 2
nd 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$4.75/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: 1
st 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 price below 
US$35/piece with liberalization annually: 1
st period: ranges from US$1.75-
US$2.00 per piece; 2
nd period: ranges from US$1.50-
US$1.75 per piece. Various developing countries excluded. WT/TPR/S/331 • Turkey 
 
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  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. 
 
10.08.2012-09.08.2014 
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 Committee on Safeguards. WT/TPR/S/331 • 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 domestic market, are subjec t 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 prov ide 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 du ring 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 European 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 Anne x-I are subject to physical 
control carried out by the Ministry of En vironment and Urbanization. Following the 
conformity assessment procedure, the confor mity document, which is required to be 
submitted to the customs authorities during im portation, 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 perm ission of the Ministry of He alth in compliance with the 
relevant international agreements, is subject to the control of the aforementioned Ministry. 
2015/5 Communiqué 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 imports of the products. A certificat e of conformity is arranged for all products 
in all Appendices by the Ministry of Food, Ag riculture and Livestock. Physical controls and 
sample analyses are also carried 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 customs tariff statistics position, the importer 
must obtain a Control Certificate issued by the Ministry of Environment and Urbanization. 
The documents required to obtain the Contro l Certificate are stated in the Communiqué, 
such as pro forma invoice, cert ificate 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 Communiqué 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 labo ratories 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 subm it the Conformity Document to the customs 
authorities during the import stage. 
2015/8 This Communiqué on import co ntrols 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, transportable pressure equipment, appliances burning fuels, lifts and hot-water boilers are su bject to mainly documentation inspection by 
the Turkish Standards Institution (TSE), which was authorized by the Ministry of Industry 
and Trade to carry out these inspections, 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 legislation. 
2015/11 This Communiqué on the safety controls fo r imports of personal protective equipment are 
implemented coherent with the EU legislation. 
2015/12 This Communiqué covers import ation 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 co nsumers. Methods and principles regarding 
import controls are designated by the Ministry of Customs and Trade. 
2015/14 This Communiqué regulates import controls of construction products such as thermal 
insulation products for bu ildings, steel bars etc. 
2015/16 This Communiqué regulates impo rt controls of medical devices such as in vitro, active 
implantable medical devices etc. 
2015/17 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 • 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 certification regarding mark et 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., ar e subject to the control of the Ministry of 
Health. For the importation of these goods, th e importer shall submit some documents such 
as the pro forma invoice or invo ice, certificate of analysis etc. to the Ministry of Health 
before the import stage. The im porter should submit the Control Certificate to the customs 
authorities during the import stage. 
2015/21 within the scope of products which must mand atorily be up to specific standards with 
respect to quality compliance with the commerci al 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 quality 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 an d procedures regarding the classification of 
firms exporting products subject to commercial quality inspections on exports, specifications on which the classification is to be based, and the rights an d obligations of the firms for 
which the classes are determined, to determine how and how often the products on export subject to commercial quality inspection shall be subject to commercial quality inspection. 
2015/23 For the importation of scrap metals listed in the Annex I of this Communiqué, the importer 
shall receive a Metal Scrap Impo rter Document issued by the Ministry of the Environment 
and Urbanization. The Metal Scrap Importer Docu ment 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 only 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 an d 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. Ac cording to Communiqué 
in question International Preshipment Inspecti on 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 Inspection s of Cotton (Product Sa fety and Inspection: 
2012/25) (Official 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 an d procedures relating to the infrastructure 
conditions of factories that are subject to clas sification 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 • 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 rightful ly 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 part y by way of selling, 
transferring, renting or placing 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 production 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 ex ports, 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 judicial 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, incomplete or misleading way (Article 
71/5) - imprisonment up to six months 
- reproduces, distribu tes, publishes or 
broadcasts a work, performance, phonogram or 
a production by using the name of a well-known 
other person (A rticle 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 prog rammes and technical 
equipment which aim to circumvent additional 
programmes developed to prevent illegal 
reproduction of a computer programme (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, se lls, 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) - imprisonment from one year to 
five years and a judicial fine up 
to one thousand and five 
hundred days WT/TPR/S/331 • Turkey 
 
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  Legislation Actions constituting a crime Criminal penalty 
 - 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 • 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 the 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 righ ts to third persons, 
without permission;  - participating in acts foreseen in subparagraphs 1 to 4 of this present Article, or 
assisting or inducing/e ncouraging them or 
facilitating, in any way and under any circumstances, their oc currence/perpetration;  
- refraining from declaring the source from where and the manner 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 permitting 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 excess 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 publication (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 an improper 
manner of the patented invention, by the party violating the rights conferred by the patent (Article 142) WT/TPR/S/331 • 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 transfer to third parties or to expand rights 
acquired by a lice nsing 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 for 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 awarded, 
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 for 
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 by 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 geog raphical 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 a ssist 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 • Turkey 
 
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  Legislation Actions constituting a crime Civil remedy 
to facilitate in whatever form the acts referred 
in subparagraphs (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 preclusion 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 which 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 without 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 
products 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 products 
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 • 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 righ ts - action against the infringer to 
cease the infringement.(A rticle 66) 
- action to prevent the probable infringement (Article 69) - request compensation for moral damages 
To adapt, 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 
provisions 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 
remuneration not exceeding 
their production cost price 
(Article 68) 
Source: Information provided by the authorities. 
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