WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/259 
17 January 2012  
 
(12-0159) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
TURKEY 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Turkey is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Turkey. Turkey WT/TPR/G/259 
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  CONTENTS 
 
  Page 
I.  INTRODUCTION 5 
(1) O VERVIEW  5 
(2) M ACROECONOMIC POLICIES AND DEVELOPMENT  7 
(i) Fiscal policy 7 
(ii) Inflation and monetary policy 8 
  (iii) Labour market reforms 12 
   (a) Accelerating employment creation and jobs recovery 12 
   (b) Active labour market programs 12    (c) Struggle with informal employment 12 
(iv) Private sector's role in the economy 12 
   (a) Improvement of the investment environment 12 
   (b) Privatization 14 
(v) Financial sector reforms 15 
   (a) Banking sector 15 
   (b) Insurance sector 18 
   ( c )  İstanbul International Financial Center Project 19 
 II. TRADE POLICIES 19 
(1) T
RADE IN GOODS  21 
(i) Non-agricultural products 21 
  (ii) Agricultural products 22 
(iii) Safeguards 22 
  ( iv) Technical barriers to trade 22 
 (2) I NVESTMENT  23 
 (3) S ERVICES  24 
 (4) T RADE -RELATED INTELLECTUAL PROPERTY RIGHTS  24 
  (i) Copyright 25 
  (ii) Industrial property rights 27 
  (iii) IPR related courts 28 
 (5) T URKEY 'S ACCESSION PROCESS TO THE EU 28 
 (i) Recent developments in Turkey-EU relations 28 
(ii) Developments in harmonization with the EU policies 29 
   (a) Harmonization in commercial policies 29 
   (b) Harmonization in technical legislation 31 WT/TPR/G/259 Trade Policy Review 
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III. DEVELOPMENTS IN TURKISH FOREIGN TRADE 32 
(1) T RADE DEVELOPMENTS BY REGIONS AND COUNTRIES  33 
  ( i )  T h e  E U  3 3  
  (ii) Other Europe and CIS countries 33 
  (iii) Asia-Pacific countries 33 
  (iv) Middle East 34   (v) Africa 34 
  (vi) Americas 34 
(2) T
RADE DEVELOPMENTS BY REGIONAL ORGANIZATIONS  35 
(i) ECO 35 
(ii) BSEC 35 (iii) OIC 36 
  (iv) D-8 36 
 (3) T RADE DEVELOPMENTS BY SECTORS  36 
 (4) T RADE IN FREE ZONES  37 
 
IV. FUTURE ECONOMIC AND TRADE POLICY GOALS 37  
APPENDIX TABLES  39  
 
 
 
 Turkey WT/TPR/G/259 
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  I. INTRODUCTION 
(1) OVERVIEW  
1. This Government Report of Turkey – which we believe would facilitate Turkey’s Fifth Trade 
Policy Review under the Trade Policy Review Mech anism of the World Trade Organization – comes 
out at times of  uncertainty and pessimism in the global economy.  
2. Although the global economy exited the deepest reces sion of its history with record expansion 
of trade and the revival of economic activity in 2 010, the post-crisis economy has not been free from 
some old and new challenges. Despite rebound, frag ility of global economic recovery with serious 
downside risks remained. 
3. As a result of timely and decisive economic policies, robust macro economic fundamentals, 
enduring capital inflows, lower interest rates a nd loan expansion; Turkish economy grew strongly 
after the global economic crisis in 2008. GDP growth rate was 9% in 2010 and 10.2% in the first half 
of 2011. Industrial sector achieved a notable growth rate of 12.6% in 2010, wh ereas the growth rate in 
services sector was recorded 8.5% in the same year, which assumed a significant role in high GDP 
growth. Thanks to all these positive developmen ts, Turkish economy became one of the fastest 
growing economies in the world in 2010. In the first half of 2011, the pace of strong and stable growth 
continued through favourable domestic  conditions, and the GDP growth rate has been 10.2% in this 
period. In accordance with the Economic Intelligence Unit  data, in the first quarter of 2011 Turkey 
has been the fastest growing country in the world.  In the second quarter of  the same year, Turkey 
preserved its high growth rate. Industr ial and services sectors’ growth ra tes were very high in the first 
half of 2011, with 10.4% and 10.6% respectively. Es pecially, manufacturing, construction, retail and 
wholesale trade and transportation were key subsectors for high performance in GDP growth. Additionally, agricultural sector grew by 6.8% in th is period. According to the Economic Intelligence 
Unit analysis, based on 2010 data, Turkey became the 6
th country in the world that has a population 
larger than 70 million and a per capita income  over US$10,000. Turkey’s GDP per capita has 
increased to US$10,067 in 2010, from US$7,586 in 2006. Turkey became the 17th biggest economy in 
the world and 6th in Europe as of 2010. Thus, the growth targets of the 9th Development Plan for 2007-
2013 have already been met. 
4. Fiscal discipline has been one of the cornerstones of Turkey’s ongoing economic program and 
played the leading role in maintaining macroeconom ic stability by decreasing debt burden. Hence, the 
successful debt management strategy contributed to  the impressive track record of the Turkish 
economy in the past ten years. The tenets underl ying the economic program enabled the Turkish 
economy to deal with the negative effects of the global financial crisis of 2008 effectively. 
5. Through durable fiscal adjustment, the risk pr emium and cost of public borrowing declined 
considerably. As the public debt fell as a share of GDP, at the same time its  structure has improved. 
The average maturity of the debt increased and th e foreign exchange denominated component of the 
debt decreased significantly.  
6. Accelerating short-term capital inflows, th e divergence between domestic and external 
demand growth and rapid credit expa nsion contributed to the widening of the current account deficit 
in the second half of 2010, necessitating a close m onitoring of macro-prudential risks to Turkey. 
Therefore, the Central Bank of the Republic of Turkey (CBT) started to follow a monetary policy framework where price stability and financial stabilit y complement each other. This involves pursuing 
a monetary policy with multiple tools. Thus, with the main objective of maintaining price stability in WT/TPR/G/259 Trade Policy Review 
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  addition to the duty to observe financial stability , the CBT adopted a new policy mix with policy 
rates, interest rate corridor and required reserve ra tios in order to contain macro-prudential risks.   
7. Having deepened during the final quarter of 2008, the global downturn began to weigh more 
heavily on the Turkish economy, which caused dom estic demand to slump during 2009. Hence, 
exports and imports were markedly down year-o n-year throughout 2009. However, as imports 
contracted at a faster pace than exports, the tr ade deficit and the current account deficit narrowed 
considerably year-on-year in 2009. Although exte rnal demand remained weak amid Europe’s 
sovereign debt problems, domestic demand grew at  a relatively steady pace, leading to a large 
increase in the foreign trade deficit during 2010. Moreover, due to the sharp rise in commodity prices 
during 2010, prices of imports increased at a faster pace than prices of exports. Total exports of goods 
increased by 11.5% to US$113.9 billion, while total imports of goods rose by 31.7% to US$185.5 billion. Net services revenues dropped by 12. 7% year-on-year in 2010 due to the widening 
foreign trade deficit and the rapid increase in servi ce expenditures, causing the current account deficit 
to expand, climbing to US$47.7 b illion in 2010 from US$14.0 billio n in 2009. In 2011, current 
account deficit continued to augment due to high energy and other commodity prices and continued 
increase in imports induced by domestic dema nd for investment goods and durables. However, 
through the measures taken by the government and expected relative slowdown in the economy in the 
second half of 2011 and 2012, the efforts of the Ba nking Regulation and Supervision Agency and the 
CBT are expected to pave the way in reducing th e current account deficit. In accordance with the 
Medium-Term Program for 2012-2014 fiscal discipline w ill continue to be an important component of 
the fiscal policy with the aim of constraining the current-account deficit and maintaining a low level 
of public debt. The aim is to  continue the private-sector-led growth of the economy.  
8. The unfavorable effects on capital flows due to the global financial crisis that deepened in the 
last quarter of 2008, continued in the first quarter  of 2009 as well and net outflows were observed in 
this period. Although the tightness in internationa l credit markets persisted throughout 2009, and 
capital flows – especially to developing countries – slowed down, net inflows were observed in the 
second half of 2009. Long-term capital inflows, whic h reached high levels owing to the upsurge in 
private sector utilization of long-term credits in recent years, were replaced by outflows and both the private sector and the banking sector remained net re -payer of debt in 2009. In addition, direct 
investments and portfolio investments remain ed limited. However, in 2010, the widening 
discrepancies in interest rates and growth between advanced and em erging economies due to 
expansionary monetary and fiscal policies in ad vanced countries associated with their weak 
stimulating impact on economic activity in those count ries, coupled with the rising risk appetite, have 
attracted more capital flows to emerging economies. As a result, Turkey expe rienced a net portfolio 
inflow of US$16.1 billion in 2010. Meanwhile, net fo reign direct investment increased by 14% to 
US$7.8 billion. Moreover, the priv ate sector became net creditor, while banking sector borrowing, 
especially short-term, increased.   According to the balance of payments statistics of the CBT, total 
value of FDI inflow was US$22 billion in 2007; US$19.5 billion in 2008; US$8.4 billion in 2009; 
US$9.3 billion in 2010 and US$10.1 billion as of August 2011. 
9. The Turkish financial sector, mostly composed of  banks, has been on a sound growth path in 
the past decade. The Turkish banking sector, whic h has undergone a major restructuring process 
following the economic crisis in 2001, managed to ove rcome the recent global financial crisis with no 
apparent damage and verified  its outstanding resilience.  
10. The headwinds from the global crisis have re mained relatively subdued thanks to the 
resilience of the financial system and prudent macr o policies. Turkey was one of the few emerging Turkey WT/TPR/G/259 
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  countries that ended up with higher credit rating th an pre-crisis level and no rescue package was 
needed to support the banking system. 
(2) MACROECONOMIC POLICIES AND DEVELOPMENT  
(i) Fiscal policy 
11. As a result of policies applied for increasing th e fiscal discipline, transparency, accountability 
and effectiveness in debt management; for simplifyi ng the tax system and lowering general tax rates 
by improving the tax base; for refo rming the Social Security System1 and public sector governance 
comprehensively, Turkish economy has undergone si gnificant structural changes over the past ten 
years. Public debt stock ratios have lowered subse quently with an exception in year 2009. Due to the 
global financial crisis, there have been slight in creases in debt stock ratios in 2009. Following this 
period, ratios turn into the regular decreasing trend again. The net public debt to GDP ratio fell from 
66.4% in 2001 to 28.8% in 2010 with an average 4.2 point decrease each year.  EU defined general 
government debt to GDP ratio decreased from 77.9% to 42.2% in the same period. In addition, this ratio is expected to decrease gradually and to become 32% by the end of 2014. 
12. The adverse effects of the global economic cris is interrupted the public finance performance. 
The fiscal stimulus package, adopted to mitigate th e effects of the crisis on the economy, raised the 
central government budget deficit to GDP ratio to 5. 5% in 2009. Nevertheless, fiscal measures and the 
rapid economic recovery resulted in this ratio to decline 3.6% in 2010 and it is expected to be 1.7% 
in 2011. 
13. The developments of the past ten years pr ove that reducing the public debt ratio and 
maintaining the economic growth prim arily depends on strict control of public finance. In this respect, 
Medium Term Program of 2012-2014 envisages a gr adual decrease in the central government budget 
deficit and sets a target of 1.0% by the end of 2014. 
14. During the global economic crisis, decreasing borrowing costs together with stability of 
Turkish financial sector increased public confiden ce, improved the risk perception for Turkey and 
contributed to the extension of borrowing maturities.  In order to achieve an extended yield curve, a 
10 year fixed coupon bond was issued in January 201 0 and a 10 year CPI indexed bond was issued in 
April 2010 in line with the strategic benchmarks . These two issues represent the longest auction 
maturities in local currency achieved in the history of the Republic of Turkey. The average maturity 
of cash-based domestic borrowing increased to  44.1 months in 2010 from its 2009 level of 
31.3 months and reached 47.2 months as of Septembe r 2011. On the other hand, in 2010 the cost of 
TL denominated zero coupon bonds decreased from its  early 2009 levels of 16% to the one-digit 
levels after August 2010, and to its historically low est level of 7.1% in January 2011, parallel to the 
high demand from domestic markets and the CBT rate  cuts. As of September 2011, the cost of TL 
denominated zero coupon bonds is 8.2%.  
                                                      
1 "Social Security and General Health Insurance" Law was enacted in May 2008 with the aim of 
ensuring justice in  social security system, reducing social secur ity deficit and facilitating access to health care 
services. With this law fundamental institutional and parame tric changes put in to practice. Thus, social security 
standards for workers, civil servants and the self employed brought to same level, a general health insurance scheme has been introduced, and retirement age has gradua lly been increased to 65. Th e reform aims to decrease 
the burden of the social security system from 4.5% of the GDP to 1% in the long-run via a new pension scheme 
and universal health insurance.
 WT/TPR/G/259 Trade Policy Review 
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  15. In line with the aim of sustaining transparency and predictability in debt management, the 
domestic borrowing strategy previously announced in monthly periods is disclosed for a rolling 
three months horizon, starting from January 2010.  
16. With the aim of increasing domestic savings, diversifying borrowing instruments and 
broadening the investor base, Revenue Indexed Bo nds, of which coupon payments are indexed to the 
transfers of State Owned Enterprises, were first is sued in 2009 and have continued to be issued 
regularly in 2010 and 2011.  
17. The main principles of public debt management are to maintain an accountable, transparent, 
sustainable borrowing policy which is compatible wi th the monetary and fiscal policies and to meet 
financing needs with the optimal cost possible in  the medium and long term with the risk level 
determined by considering domestic and internationa l market conditions. In this framework, strategic 
benchmarks are determined to guide borrowing po licies since 2003. These policies mainly aim at 
reducing the interest rate, exchange rate and li quidity risks arising from public debt portfolio. 
According to the strategic benchmarks for the 2012-2014 period:  
 - The domestic cash borrowing will be made mainly in the TL, 
 - Fixed rate instruments will be used as a major source in TL borrowing and the share 
of debt which has interest rate re-fixing period less than 12 months will be reduced, 
 - The average maturity of domestic cash  borrowing will be increased taking market 
conditions into consideration and the share of debt maturing within 12 months will be 
reduced,  
 - A certain level of cash reserve will be ke pt in order to reduce the liquidity risk 
associated with cash and debt management. 
(ii) Inflation and monetary policy 
18. The CBT continued to implement inflation targe ting together with a floating exchange rate 
regime in 2008-2011 period so as to achieve and maintain price stability. 
19. CPI inflation ended 2008 at 10.06%. Infla tion in 2008 was largely determined by 
developments in the global economy. After sharp in creases in energy and other commodity prices in 
the first three quarters, there was a dramatic shift in inflation dynamics in the last quarter of 2008 due to the challenging developments in the global economy. 
20. Originating in the advanced economies, the fina ncial crisis, as the deep est fall since the Great 
Depression of the 1930s, late in 2008 spread to the entire global system. Its effects were seen on 
economic and financial stability th roughout 2009. Thanks to the experience gained from domestic 
crises in the recent past, the CBT was able to make  prompt and effective decisions, thus played its 
part successfully to minimize the adverse impacts of the global crisis. The resilience of the financial 
system coupled with the relatively limited level of risk premium provided room for manoeuvre for 
monetary policy. 
21. Pursuant to its projection that problems in  international credit markets and the global 
economy following the deepening of the crisis would continue to restrain both domestic and foreign 
demand for an extended period, the CBT focused on c ontaining the potential damage of the crisis to 
economic activity. Within this framework, the CBT launched the monetary expansion process in Turkey WT/TPR/G/259 
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  November 2008 and became a pioneer in cutting policy rates among the central banks of emerging 
markets. Projecting that the probability of undershooting the inflation target would increase, the CBT adopted a front-loaded policy by cutting policy rates by 650 basis points in the December 2008-April 2009 period. 
22. Policy implementations of the CBT are shaped in  view of medium-term developments rather 
than short-term economic developmen ts. Accordingly, despite signals of  partial recovery in domestic 
economic activity as of the second half of 2009, judging that uncertainties pertaining to the strength and permanence of recovery in demand persisted,  the CBT continued to ease policy rates, based on 
projections that recovery in economic activity a nd employment conditions would take a significant 
time. Within this framework, policy rates have been cut by totally 1,025 basis points since the 
Monetary Policy Committee meeting of November 2008. Thus, Turkey lowered policy rates more 
than any other emerging market operating within an  inflation-targeting framework. Reduced concerns 
over inflation during the crisis prepared the gr ound for the CBT to focus on economic activity and 
financial stability. 
23. Accordingly, though it is still adhered to its primary objective of achieving price stability, the 
CBT took some additional measures – besides policy rate cuts – that would alleviate liquidity 
shortage, help the credit market operate smoothly and support the corporate sector with the aim of 
preventing the adverse impacts of the global fina ncial crisis on the Turk ish economy and financial 
stability. To sum up, with its appropriate policy d ecisions, the CBT succeeded in containing damage 
caused by the global financial crisis on domestic  economic activity and prevented inflation from 
deviating from the target by a significant margin. 
24. With the economic slowdown due to global crisis  and favorable outlook in cost-based factors, 
annual CPI inflation in 2009 was 3.5 points lower th an the 2008 figure. CPI inflation ended 2009 at 
6.53%. The sharp contraction in economic activity and the collapse of commodity prices brought down inflation rates in all major categories of the CPI basket, especially in the first half of 2009. In 
this respect, energy and processed food prices, whic h are particularly sensitive to commodity price 
developments, displayed a sharp decline. Infla tion in core goods and services also slowed down 
owing mainly to weak domestic demand and tempor ary tax cuts implemented to stimulate economic 
activity. In the third quarter, despite the partial withdrawal of the said tax cuts, the underlying 
disinflation trend was strong enough to bring headline  inflation downwards further. Fourth quarter of 
2009 saw record high run-up in unprocessed food prices, the upsurge in oil and other commodity 
prices and the expiration of temporary tax incentives, which drove inflation higher. 
25. While the global economy continued to graduall y recover in 2010, the recovery in advanced 
economies presents a slow and vulnerable outlook in contrast to the faster recovery in emerging 
markets. In fact, production in many emerging economies, including Turkey, has exceeded the pre-crisis levels in 2010 and the improvement in th e labour markets of these countries has been more 
stable. In this respect, the decoupling between th e pace of recovery in advanced and emerging 
economies has become more pronounced. 
26. Following the ease of the impact of the cris is on financial markets, the CBT, announced on 
14 April 2010, its exit strategy, which entailed rem oval of liquidity measures taken during the crisis 
and normalization of the operational framework of monetary policy. Acting upon favorable 
developments in the credit market and the rec overy in economic activity, the CBT withdrew the 
temporary liquidity measures it had introduced du ring the crisis and gradually mopped up excess 
liquidity provided for the market, and raised requi red reserve ratios. In this context, the CBT has WT/TPR/G/259 Trade Policy Review 
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  initiated the first step of the technical arrangement to  facilitate a change in the operational structure of 
liquidity management in May by which the one  week repo rate, became the new policy rate. 
27. Besides the monetary policy exit strategy, th e CBT accelerated reserve accumulation with an 
aim to contributing to financial stability and in orde r to be able to adapt to the rapidly changing 
structure of capital flows, adopted a more flexib le method for foreign exchange buying auctions 
in October 2010. Moreover, with the aim of ensuri ng more effective use of alternative instruments 
towards curbing risks pertaining to financial st ability, the CBT terminated the remuneration of 
Turkish Lira required reserves and changed the oper ational structure of liquidity management. In 
addition to these measures, the CBT introduced furthe r measures to direct the capital inflows driven 
by global monetary expansion to investment instruments with longer maturities . 
28. With the main objective of maintaining price stability in addition to the duty to observe 
financial stability, the CBT adopted a new policy mi x with lower policy rates, wider interest rate 
corridor and higher required reserve ratios in order to contain macro-prudential risks in the fourth 
quarter of 2010. 
29. In this context, in order to encourage long-term  capital inflows and to maintain the stability of 
the Turkish Lira, the CBT reduced the one-week re po auction rate. Moreover, the CBT significantly 
widened the spread between overnight borrowing and lending rates. The CBT has taken important 
steps regarding reserve requirements, a key element of the CBT’s policy mix serving to contain 
macro-prudential risks. In December, the CBT adop ted a more comprehensive approach and decided 
to differentiate TL reserve requirement ratios by ma turity in order to extend the maturity of the 
banking system’s liabilities, thereby reducing matu rity mismatches, and to encourage long-term 
capital inflows. Accordingly, the required reserve  ratio on short-term liabilities was raised and the 
required reserve base was expanded by including  repo transactions, except interbank and CBT 
transactions. In order to more effectively benef it from capital flows by boosting foreign exchange 
reserves while also enhancing the resilience against volatile capital flows, the CBT decided to change 
the method of foreign exchange buying auctions in October 2010. 
30. Inflation continued to rise during the first four months of 2010, largely due to tax hikes in 
fuel, alcoholic beverages and tobacco products in Janua ry. In addition, as in the last quarter of 2009, 
the rate of change in unprocessed food prices disp layed another historically high print in the first 
quarter of 2010. The upward trend in inflation due to  these factors has continued until the last quarter 
of 2010. However, the determinant of the infla tion developments throughout 2010 was the course of 
food prices. The annual energy inflation rose in the fi rst half of the year, then declined gradually in 
the second half and the annual services inflation droppe d down to the lowest level in its history 
in 2010. At the end of 2010, the annual rate of increase in the CPI was 6.4%. 
31. Regarding the inflation developments in 2 011, the downward trend in inflation, which 
became apparent particularly in the last quarter  of 2010, continued during the first quarter and the 
annual rate of increase in CPI fell to a level as low as 3.99% as of March. However, the depreciation 
of the Turkish Lira and the increase in commodity prices started to affect the consumer prices from 
the first months of 2011. Core goods, on which the pressure of the aforementioned increases was 
more pronounced, had its annual inflation rising sign ificantly. The rapid surge in oil and commodity 
prices in the subsequent period increased the upsid e risks to inflation, necessitating an additional 
tightening in order to limit the second round effects. 
32. The CBT, continued to implement the policy mi x of low policy rate, wide interest rate 
corridor and high reserve requirement ratios in the first quarter of 2011. Assessing that required Turkey WT/TPR/G/259 
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  reserve ratios rather than policy rates would be mo re effective for containing macro financial risks 
driven by the divergence between domestic and external demand, the additional tightening was 
implemented through a substantial increase in the we ighted average of the required reserve ratios. In 
order to balance domestic and external demand, and thus limit macro financial risks, TL and FX 
required reserve ratios were raised slightly and FX required reserve ratios were differentiated by 
maturity and raised slightly for s hort-term deposits on 21 April  2011. 
33. The mounting concerns in the second quarter rega rding sovereign debt problems across some 
European countries as well as global economic growth  adversely affected the risk appetite and capital 
flows to emerging economies. In view of these developments, the daily amount to be purchased via 
FX auctions was reduced. Towards the end of July, FX buying auctions were suspended in order to 
monitor the effects of the decisions taken by the EU  pertaining to solve the sovereign debt problems. 
Additionally, in July, in order to extend the matur ity structure of the banking sector liabilities, foreign 
exchange required reserve ratios were decreased for long-term liabilities. 
34. The policies implemented by the CBT since end-2010 aimed at gradua lly rebalancing the 
economy towards a healthier growth composition without hampering the medium-term inflation 
outlook. These involved necessary measures were ta ken in cooperation with other institutions, to 
ensure reasonable levels in loan growth rates. 
35. As the risk perceptions deteriorated rapidly in early August 2011 and debt problems in the 
euro area further intensified, the CBT held an interim meeting on 4 August 2011 to contain the potential adverse effects of these developments on financial stability and economic activity, and 
announced a comprehensive package of measures. These measures laid  the background for a timely, 
controlled and effective provision of liquidity to mark ets in the event of a financial turmoil that may 
be driven by the developments in  the global economy. The CBT cut the policy rate by 0.50% points in 
order to contain the risk of a recession in economic  activity that may be posed by the escalating global 
economic problems. During this period, upon th e acceleration of capital outflows from emerging 
economies, a series of liquidity measures were take n to contain the fluctuations in the foreign 
exchange market. 
36. Measures regarding Turkish Lira market in August-October period we re built on two pillars. 
First is preventing extreme volatility in overnight inte rest rates by narrowing the interest rate corridor, 
which was previously used as an instrument to discourage short term capital flows as well. The 
second element of the measures regarding TL liquidity is to meet the TL liquidity requirement of the 
Turkish banking system in a more permanent way. Accordingly, the upper limit for FX reserves that 
may be held to meet Turkish Lira reserve requireme nts was raised to 40% of Lira liabilities. Required 
reserve ratios for certain Turkish Lira liabilities we re reduced such that the weighted average TL 
required reserve ratio, has come down to 10.5%. Fu rthermore, in August-October period of 2011, 
some measures regarding foreign exchange market s were also taken to lay the background for a 
timely, controlled and effective provision of liquidity  to markets in the event of a financial turmoil 
that may be driven by the developments in the global economy. 
37. The ongoing deterioration in global risk appe tite, which started in August, has led to an 
excessive depreciation of the Turkish Lira. Accu mulated depreciation of 30% since November 2010 
started to pose risks on the inflation outlook. Moreov er, in October, the adjustments in administered 
prices were far beyond the assumptions of the CBT, which brought about a sizeable upward revision 
for the short-term inflation forecasts. Accordingly, in its October meeting, the CBT underlined that it 
would not tolerate the outlook for medium-term inflation expectations to be affected by these WT/TPR/G/259 Trade Policy Review 
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  developments, and decided to widen the overnight in terest rate corridor by raising the lending rate 
from 9% to 12.5%. 
38. At the Monetary Policy Committee meeting of 4 August 2011, the CBT agreed to closely 
monitor developments, and if necessary, take measur es to provide foreign exchange liquidity via the 
appropriate methods and instruments. Accordingly, ta king global developments into consideration, the 
CBT commenced supplying FX liquidity to the ma rket via high-volume foreign exchange selling 
auctions as of 5 October 2011. Furthermore, as unhea lthy price formations in exchange rates are being 
observed due to speculative behaviour stemming from a decrease in market depth, on 18 October 2011, the CBT directly intervened in the market through FX sales. 
(iii) Labour market reforms 
(a) Accelerating employment creation and jobs recovery  
39. Significant political measures in terms of accelerating employment creation and jobs recovery 
have been taken in the last few years. These measures are: 
 - 25% of social security employer’s co ntribution for pensions, disability and death 
insurance is paid by Central Government Budget. 
 - Social security employer premium of firms hiring young people (18-29) and women 
is paid by the unemployment insurance fund. 
 - To avoid dismissals in the case of a sectoral crisis, regional crisis or a general 
economic crisis short time working allowance is introduced. 
(b) Active labour market programs 
40. The financial resources of Active Labour Mark et programs, including for public works 
increased and vocational training, internship for yo uth and entrepreneurship education activities are 
expanded. 
(c) Struggle with informal employment 
41. To reduce the amount and the effects of sh adow economy and especially unregistered 
employment, "Struggle Against Informal Economy Action Plan 2008 – 2010" has been put into force 
in 2008.  
(iv) Private sector’s role in the economy 
(a) Improvement of the investment environment  
42. Strengthening private sector’s role in Turkish eco nomy continues to be an integral part of 
Turkey’s overall macroeconomic program. To this end, Turkey has put efforts for improving the 
investment climate among the top agenda items and initiated a comprehensive reform program – "the 
Reform Program for the Improvement of the Investment Environment" – in 2001 in order to streamline all investment-related procedures. Th e Coordination Council for the Improvement of 
Investment Environment (YOIKK) and the Investment Advisory Council (IAC) are the pioneer public 
private partnership platforms which have been formed  within the Reform Program to lead investment 
environment studies. Turkey WT/TPR/G/259 
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  43. YOIKK aims to solve the problems of both na tional and international investors through 
conciliating the responsible institutions and agenci es. The effective inform ation sharing process 
between the public and private sector representativ es and the strong coordination between all the 
parties are the key success factors of the YOIKK platform. 
44.  Since its formation, YOIKK has established 12 specialized technical committees to work on 
developing concrete proposals and st rategies in order to overcome all main obstacles in the following 
fields:  
 - Company registration 
 - Employment  
 - Sectoral licensing 
 - Investment Location  - Taxes and Incentives  - Foreign Trade and Customs  - Industrial and Intellectual Property Rights  - Foreign Direct Investments Legislation 
 - Investment Promotion  
 - Small and Medium Sized Enterprises  - Corporate Governance  - Research and Development. 
45. So far, the activities of the YOIKK have been  quite successful. YOIKK conducts its studies 
via annual Action Plans since 2007. The main deve lopments achieved through these Action Plans 
since the last TPR (2007) are listed below.  
46. The Law on the Amendment of the Income Tax Law and Some Laws entered into force on 
4 April 2007 in order to lower the tax burden on the employees by the implementation of the 
minimum living allowance system. By this amendment, Turkey has moved on 5 steps on the ranking among OECD countries in terms of the tax burden on employees.   
47. By the Law No. 5838 published on the Official Gazette on  18 February 2009: 
- The requirements to benefit from short term employment allowance have been 
alleviated. 
 - Communication tax concerning wired, wireless and mobile internet services was 
reduced to 5% from the level of 15% as a result of the amended tax regulations. 
 - By the provisional Article No. 75 attached  to Income Tax Law, firms are enabled to 
benefit from Research and Development incentives which are provided to individuals.  
 - Investments to be made in line with the new regional, sectoral and project based 
incentive system have been supported via reduced corporate tax rate.   
48. "Law No. 5746 on Enhancing Research And Development Activities", which involves 
important incentives towards accelerating research  and development activ ities and innovation, was 
published on the Official Gazette on 12 March 2008 and came into force in April 2008.  
49. Prime Ministry Circular No. 2008/7 on Th e Establishment of Coordination Council for 
Intellectual and Industrial Property Rights was enacted on 21 May 2008.   
50. The Employment Package aiming to decrease the bureaucratic and financial burden on labour 
force and increase the flexibility of the labour market was enacted on 26 May 2008.  WT/TPR/G/259 Trade Policy Review 
Page 14 
  
  51. "The Regulation on the Ex-Post Inspection and the Control of the Risky Operations" aiming 
at accelerating the work flow via the ex-post in spection of the customs operations, was enacted on 
27 October 2008. 
52. Law No. 5891 which enables firms operating in tr ade and services sectors, along side with the 
manufacturing firms, benefit from the supports provided by the Small and Medium Industry 
Development Organization (KOSGE B) was enacted on 5 May 2009. 
53. Law No. 5909 amending the Law on Regulation of  Public Finance and Debt Management 
was enacted on 24 June 2009 with the ai m to improve the credit guarantee system. 
54. A new scheme for government incentives for inv estment projects incorporating sectoral and 
regional development priorities was introduced with the Decree on Government Incentives for 
Investments dated 16 July 2009. 
55. The Regulation on KOSGEB Support Programs was promulgated in the Official Gazette on 
15 June 2010 in order to provi de micro and small firms to access KOSGEB Support programs easier. 
In the context of regulation, principles that w ill enable micro and small firms to access support 
programs easier were identified, "SMEs Informa tion System" which will provide online application 
was formed and work has starte d to form "KOSGEB call center". 
56. In the context of "Work Permits Automation Project", work permit applications can be only 
made via electronic environment since 2 August 2010.  
57. The Communiqué related to Turkey-EU Instru ment for Pre-Accession Assistance issued by 
the then Undersecretariat of Customs (now the Mi nistry of Customs and Trade) was promulgated in 
the Official Gazette on 15 October 2010 with the aim to grant exemption to the products brought 
under the projects supported within the internati onal bilateral and multilateral R&D programs.  
58. While achieving quite positive results in impr oving the environment for business by means of 
national platforms like YOIKK, another structure with  an international perspective, the Investment 
Advisory Council (IAC) for Turkey was establishe d in 2004 with a view to raise the competitive 
position of Turkey in the world economy as an invest ment location. The high – level IAC meetings 
in 2004, 2005, 2006, 2007, 2008 and 2010 brought together the top executives of leading 
multinational companies, international organizati ons and the heads of Turkish private sector 
associations in İstanbul and every meeting was chaired by the Prime Minister Recep Tayyip Erdo ğan.  
(b) Privatization  
59. Turkey continues to attach importance on privatization as a component in a well functioning, 
open and competitive market economy. Thus, privatiza tions continued since the last TPR in 2007.   
60. Turkey initiated the privatization process of the seaports. Mersin port was privatized in 2007, 
followed by the privatization of ports in Band ırma and Samsun in 2010. In the same spirit, the tender 
processes of İskenderun, Derince and İzmir Ports were initiated. The tender for the transfer of 
management rights of İskenderun Port (located on the Mediterra nean coast of Turkey), which is an 
asset of Turkish State Railways Administration, for a period of 36 years was held on 17 May 2010. 
The highest bid was given in an amount of US$372 million. The Concession Rights Agreement was signed and the privatization process of İskenderun Port will be finalized after confirmation of The 
Council of State.   Turkey WT/TPR/G/259 
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  61. The tender process for the transfer of operational rights of İzmir Port (located on the Aegean 
coast of Turkey), which is an asset of Turkish Stat e Railways Administration, for a period of 49 years 
has been cancelled on 28 April 2010. The privatizati on is planned to take place in 2014 according to 
Medium Term Fiscal Plan. 
62. Besides, the privatization of 24 sugar manufacturing companies and their related assets will 
be completed until 2014. The privatization studies of toll motorways, two Bosphorous bridges, the 
beltways (periferique) of Ankara and İzmir and the service units operated by Turkish Highways 
General Directorate is underway. 
63. Overall privatization proceeds realized by Turkish Privatization Administration (PA) have 
reached to US$42 billion as of mid-2011. US$15.6 b illion revenue have been  generated from the 
privatization of blue chip companies, including Türk Telekom, Tüpra ş, Erdemir and Petkim. Since 
inception of PA (1984) and as of 30 June 2011, th e privatization implementations of Turkey have 
resulted in a net worth of approximately US$53.5 billion.2  
(v) Financial sector reforms  
(a) Banking sector 
64. Since the last TPR in 2007, developing a fi nancial system, which has a competitive scale, 
sufficient instrument diversity and depth to channel resources to investments, minimized 
intermediation costs and which is supervised and a udited in line with inte rnational standards, has 
continued to be a main objective. With this goa l in mind, the regulation and supervision of the 
financial sector has been improved in line with  international standards and EU Acquis and 
amendments have been made to the legislation in  accordance with the need s arise in practice. The 
amendments on sub regulations c overed a wide range of issues, including the establishment and 
operations of banks, loan transactions, protec tive provisions, corporate governance, liquidity 
adequacy, financial reporting, non-bank financial institutions, bank and credit cards and other 
provisions.  
65. There are also some recent measures supporting banking sector reforms in order to enhance 
Turkish banking sector resilience against the globa l economic and financial crisis. The CBRT has 
been actively using reserve requirement ratios and liquidity management tools, meanwhile the Banking Regulation and Supervision Agency (BRSA) has taken some measures related with general 
provisioning and loan to value ratios as part of m acro-prudential policy in order to deal with the 
challenges emerged in the post crisis era.  
66. The issues becoming prominent in the banking  area within the scope of Harmonization 
Program of Turkey to EU Acquis and Turkey’s National Program regardi ng Undertaking EU Acquis 
for 2008 are harmonization to Basel-II Capital Adequ acy Directives, enhancement of corporate risk 
management and consolidated audit.  
67. Recent main regulatory issues, aiming harmonizat ion with international standards and to 
reduce effects of global financial crisis, are as follows: 
 - BRSA is conducting a study on Basel II requirements to provide implementation in 
Turkish banking sector. BRSA was accepted as a member to the Basel Committee on 
                                                      
2 See Annexed Table 3:  Privatization Implementations by Years and Table 4:  Significant Privatization 
Implementations between 2008-30 September 2010.  WT/TPR/G/259 Trade Policy Review 
Page 16 
  
  Banking Supervision (BCBS) in 2009 and par ticipates to the related working groups 
in various levels. Preparations on trans ition process of Turkish banking sector to 
Basel II has been continued and related draft legislation has been issued in 
March 2011. In order to ensure the adaptati on of Basel II rules by the sector, banking 
regulation and Supervision Board has decide d that the Basel II rules in Turkish 
banking legislation will be implemented onl y within the aim of reporting to the 
BRSA between 01 July 2011 and 30 June 2012.  
 - In line with the Financial Stability Bo ard (FSB) membership of Turkey, the FSB 
studies are followed closely by the BRSA, studies are conducted in order to maintain 
the adaptation of banking legislation to the FSB principles and standards and active 
participation is ensured to the related topics such as international cooperation and 
information sharing. Within the frame of the adaptation obligation of member 
countries to the FSB standards, BRSA  published supervisory guidance on 
compensation in June 2011. Banking Re gulation and Supervision Board took a 
decision stipulating that the harmony le vels of implementation of corporate 
governance principles including the ones regarding the compensation will be taken 
into account in calculation of banks’ ratings conducted by the on-site supervisors. The 
ratings given by the supervisors are taken into account in the calculation of insurance premiums of the banks. Those ratings are also important in terms of the assessment of banks’ situations in enforcement actions. 
 - On 30 September 2010, BRSA regulated the issuance of bills and bonds by banks. A 
dynamic function of equity, saving deposit, asset size and capital adequacy ratio has been developed to limit the amount of bonds to be issued by the banks.  
 - As of 1 January 2011, BRSA limited cons umer loans mortgaged by the residential 
real estate to 75% of the value of the real  estate subject to the mortgage and limits 
commercial loans extended for the purchase of commercial real estate to 50% of the 
value of such real estate.  
 - To reduce the economic impact of the globa l crisis, rules of provisioning and loan 
restructuring has been changed. BRSA has al so issued sub regulations to encourage 
banks to keep high capital levels and profit distribution has been subject to BRSA’s 
approval. Additionally, rules of managing and monitoring liquidity adequacy have 
been revised.  
 - Exemptions on preparation consolidated fi nancial statements of banks are revised in 
light of related accounting standards. Besi des, financial statements’ formats have 
been revised in light of the latest accounting standards.  
 - Concerning the measurement and management of interest rate risk in the banking 
book, a regulation has been issued in Augus t 2011 and the regulation will be fully in 
force in July 2012.  
68. The credit intermediation role of the banking sector is improving with the support of the 
reforms in the sector and declining public sector borrowing need. The ratio of credits to assets has 
increased from 23% in 2002 to 54% as of August 2011 (52% in 2010). Althou gh the amount and ratio 
of loans have increased, the total credit to GDP ratio in Turkey is still lower than many developed 
countries.   Turkey WT/TPR/G/259 
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  69. The Systemic Risk Coordination Committee formed  within the scope of the Systemic Risk 
Cooperation Protocol on Financial System, wh ich was signed among the Undersecretariat of 
Treasury, BRSA, SDIF and CBT for the management of risk and preparation of emergency action 
plan concerning a possible systematic risk that may occur in the sector, commenced its operations 
in 2010.  Model based scenario analysis was devel oped in order to increase the capacity of stress test 
realization of the BRSA. 
70. The implementation of "FINTURK – Turkey’s  Financial Map", which demonstrates the 
distribution of financial data of banking sector in Tu rkey geographically with the intermediation of an 
interactive map, was put into force with the ai m of increasing transparency in sectoral data and 
contributing to the process of pr oducing information in 2008. 
71. Market structure of the Turkish banking sector has transformed considerably in the last 
11 years within the framework of the fundamental de velopments that occurred. Within this process, 
the sector has reshaped with numerous banks going out of the system, re-structuring, mergers and 
transfers, share purchases, strategic investment s, regulatory framework, risk management and 
contribution of global capital and market dynamics . Total assets of the Turkish banking sector 
increased by 20.8% in 2010 comparing to previous  year-end and realized above TL 1 trillion. When 
this figure is compared with the average asset size of  developed countries, it is seen that Turkey has a 
higher growth rate in banking sector assets. The ra tio of total loans to GDP increased to 40% in 2010 
by doubling from 19.1% in 2000 which gives Turkey in this field a net growth potential in face of developed countries having a ratio over 80%. The shar e of loans is 52.2% within total assets of the 
sector. It is observed that the intermediation whic h is the main function of the banking sector has 
developed during the period of 2002-2010, except 2009 during which the effects of the global 
economic crisis were intense.  
72. The relatively high capital adequacy ratio of 16.7% and low gross non-performing loan ratio 
of 2.8%  as of August 2011 are two indicators of the high asset quality in the Turkish banking system. 
Additionally, the net foreign exch ange open position of the banking sector is relatively low. There 
exists a target capital adequacy ratio equivalent to  12% for banks which desire to open new branches. 
Currently, the NPL ratio is 3.66% and the special reserves is 83.6% as of 2010.  
73. In parallel with the improvements in the ba nking business, there have been significant 
changes in the ownership structure of the banking sector in terms of increased foreign participation 
and declining state ownership. With strong growth  potential of the economy and the sector, Turkish 
banks have become more attractive for foreign invest ors. Total share of foreign participation in the 
banking sector capital has increased from 22.4% in 2006 to 25.2% as of June  2011  through mergers 
and acquisitions in the last decade. On the other hand, due to the steps to further reduce the public 
sector’s share in the banking sector, the public share in banks has declined to 27% as of June 2011. As 
of 2010, in 75% of 49 banks operating in the Turkis h banking sector there are shares of global capital. 
Global capital is mostly present in deposit banks. Th ey are followed by pub lic banks and banks under 
the control of holding companies.  
74.  With the regulation dealing with the preparati on of financial reports in capital markets, which 
has been prepared in acco rdance with EU Acquis and came into force at April 2008, corporations 
listed on the ISE, financial intermediaries, portf olio management compan ies, and subsidiaries, 
affiliates and partnerships of those corporati ons will be implementing International Accounting 
Standards and International Fi nancial Reporting Standards as accepted by the EU as of 
1 January 2008. WT/TPR/G/259 Trade Policy Review 
Page 18 
  
  75. Also, in the context of the Financial Restruct uring Programme for the SME’s, a total number 
of 115 firms have been taken under the scope of re structuring in 2008. Besides, the improvement of 
legal infrastructure of factoring and leasing sectors has been aimed.  
76. In order to develop new capital instrument s and functionality of existing markets and 
instruments Emerging Companies Mark et has been established following İstanbul Stock Exchange 
Emerging Companies Market Communiqué has been pub lished in Official Gazette on 18 August 2009 
and entered into force.  
77. Principles regarding real estate investment tr usts, venture capital investment trusts and 
investment funds were rearranged in the last 3 years. In order to promote effectiveness and 
competition in financial markets, principles on est ablishment and activities of pension mutual funds 
and portfolio management were reorganized. To ensure instrument diversity in Turkish capital 
markets and to increase market depth, the princi ples regarding public offering and sale of foreign 
capital market instruments and deposit certificates were rearranged.  
(b) Insurance sector 
78. The economic crisis also affected the insuran ce sector in Turkey negatively. In the last 
two years, Turkish insurance sector experienced a real shrinkage in terms of premium production 
because of the fierce price competition in additiona l to the economic crisis. However, total premium 
with TL 14.1 billion volume displayed an increase 6.8%  growth in 2010 in real terms, compensated 
the previous two years’ shrinkage and came into growing period again. 
79. As of 2010, number of companies carrying out insurance and pension activities are 58. Out of 
these companies, 34 of them are licensed in non-lif e insurance, 10 in only life insurance, 13 in 
pension and life business and only 1 licensed re insurance company in the domestic market.  
80. Total premium amount generated by the Insu rance Sector in 2010 was TL 14.1 billion of 
which TL 11.9 billion in non-life and TL 2.2 billion in life branches. Compared to the end of 2009, with 13.4% increase direct premium written by insu rance companies also reach ed to TL 13.8 billion at 
the end of 2010. In real terms, direct premium grow th rate increased by 6.5% after contraction in 2008 
and 2009. 
81. The growth potential continues to draw atten tion of foreign insura nce companies to the 
Turkish insurance market. As of 2010 year-end, the sh are of foreign partners is above 50% in 37 of 
insurance companies. In addition to this, the share of foreign investment reached to 59% in total paid-
in capital in the sector. 
82. Turkey, as a country located in a high risk ar ea, compulsory earthquake insurance put in 
application in order to reduce bur den of government and citizens. As  of 2010 year-end, the Marmara 
region has 33.4% of insured ratio. Total cl aims of TL 20.9 million losses were paid for 
302 earthquakes occurred up-until the end of 2010, by Turkish Catastrophe Insurance Pool. 
83. Private pension sector in Turkey tends to grow rapidly. As a result of this, total number of 
participants reached to 2,281,478 as of the end of 2010. Also, accumulation funds have increased by 
31.5% reaching TL 12 billion. According to 2012 A nnual Program, priority 18, Private Pension 
Savings System will be promoted to pr ovide long term funds for the economy. Turkey WT/TPR/G/259 
 Page 19 
 
 
  (c) İstanbul International Financial Center Project 
84. Policy on making İstanbul an international financial center was firstly appeared in the 
9th Development Plan covering the period of 2007-2013 and then in the 2008 Medium Term 
Programme (2009-2011). Efforts on this Project accele rated after a priority is given to implementing 
the İstanbul International Financial Center (IFC) Project in the 2009 Annual Programme under the 
title of "Developing Financial System." The "Strategy and Action Plan for IFC- İstanbul" entered into 
force after being published on the O fficial Gazette on 2 October 2009.  
85. İstanbul Strategy and Action Plan envisages İstanbul to turn into a regional financial center 
and ultimately a global financial center. In order to achieve this vision, the priorities and actions were 
determined for forming a legal infrastructure that  operates in international standards, increasing 
diversity of financial products and services, build ing a simple and effective tax system, improving 
regulatory and supervisory framework , enhancing physical and technological infrastructure, providing 
an education infrastructure which will satisfy th e need for qualified human resource and establishing 
an organizational structure to carry out promotion and monitoring at world scale.  
II. TRADE POLICIES 
86. There has been a re-organization of the ins titutional structures of the ministries and some 
other public institutions as of July 2011 with the ai m at increasing the effectiveness and efficiency of 
these institutions. Within this frame work, the present Cabinet consists of the Prime Minister, four 
Deputy Prime Ministers and 21 Ministers. Accordingl y, the Ministry of Economy is responsible with 
the formulation, administration, implementation and coordination of Turkey’s foreign trade and 
foreign direct investment policies, in consultati on with the related ministries and agencies where 
necessary.   
87. Bearing in mind that it is one of the main pilla rs for the establishment of a fair and balanced 
global economic system, which can foster welfare and mitigate poverty worldwide, Turkey regards 
the priority of the multilateral trading system in its foreign trade policy. Free and fair trade principles 
as upholded in World Trade Organization (WTO) gu ide the formulation and conduct of Turkey’s 
foreign trade policies. 
88. Besides, Customs Union established with the European Community (EC) in 1995 and the 
process of full membership to the EU are also the main determinants of Turkey’s trade policies. 
89. Turkey as one of the active members of "F riends of the System" in the WTO Doha 
Development Round is committed to the conclusion  of the multilateral trade negotiations on an 
ambitious yet balanced outcome. It has become more important than ever to conclude negotiations as 
it is believed that trade as one of the most outst anding sources of growth for the international 
economic system has vital role to play in term s of attenuating the impact of crisis through the 
expansion of world trade, thus supporting global economic growth in such extra-ordinary conditions 
contrary to the persisting protectionist sentiments. 
90. Turkey also makes efforts to achieve more liberal  trading conditions in its region. To this end, 
an ambitious trade agenda, which would also contribute to the economic and political stability in the region is pursued in the framework of tho se regional organizations including the Economic 
Cooperation Organization (ECO), Black Sea Economic  Cooperation (BSEC), Organization of Islamic 
Conference (OIC) and Developing-8 (D-8). Besides that , Turkey is pursuing bilateral, plurilateral and 
regional initiatives with Jordan, Iraq, Syria, Leba non, Bulgaria, Azerbaija n and other neighbouring 
countries in the form of strate gic economic partnerships.   WT/TPR/G/259 Trade Policy Review 
Page 20 
  
  91. Representing 80% of the world trade volume, 90%  of production and the two-thirds of the 
world's population, G-20 has become one of the main  fora to deal with the insisting problems of 
today’s global economy. As a member of the G-20 and an acceding country to the EU, Turkey has been undertaking major initiatives for the sustainabilit y of open global trade contrary to the current 
phase of protectionist motives.  
92. Turkey attributes great importance to the existe nce of the Least Developed Countries (LDCs) 
in the global trade with suffici ent resources. Turkey reaffirms that negotiations for the accession of 
the LDCs to the WTO be facilitated and accelerat ed through simplified and streamlined accession 
procedures with a view to concluding these negotiati ons as quickly as possible. In this regard, Turkey 
acts in accordance with the guide lines for accession for the LDCs a dopted by the Decision of the 
WTO General Council of 10 December 2002.  
93. In 2007, Turkey hosted the United Nations Ministerial Conference on the LDCs. In 
May 2011, 4th United Nations Conference on the L east Developed Countries was also organized in 
İstanbul, for the first time in a developing country.  
94. A comprehensive İstanbul Program of Action was agreed upon as a result of the Conference. 
It is a detailed document targeting the 48 LDCs wi th the ultimate aim of er adicating extreme poverty 
and hunger.  
95. In guiding the development of such a program of action, Turkey prioritized the LDC-related 
topics and that these topics remain high on the agenda of international community.  
96. In this regard, Turkey is committed to doing its  part in assisting the development process of 
the LDCs. Turkey pledged to make available tota l of 200 million USD annually to LDCs, starting 
by 2012. This will be used for technical coopera tion projects and programs as well as scholarships. 
Moreover, Turkey’s current investments in the LD Cs have reached to almost US$2 billion. Turkey 
also declared its aim to increase the level of dir ect investments to LDCs to US$5 billion by 2015. 
97. Furthermore, Turkey is prepared to host an "International Science, Technology and 
Innovation Center" and an "International Agricultu re Center" dedicated solely to the LDCs.  
98. As one of the G-20 countries, Turkey actively participates to the work of G-20 on various 
grounds. Among others, Turkey gives due consideration to  the work undertaken by G-20 with regard 
to providing a balanced and resilient growth in LD Cs and to efforts to integrate these countries more 
into the  multilateral trade system. Also, taking the positive linkage between trade and development 
into consideration, Turkey has always provided its utter support for the efforts within G-20 in 
adopting an encouraging attitude to successfully conclude the Doha De velopment Round on an 
ambitious yet balanced outcome.  
99. Turkey was one of the 4 sponsor countries of the G-20 High-Level Trade Experts Group’s 
Report
3 in which the costs of a failure in the Doha Round was dealt with elaborately.  
100. At their last Summit held in Cannes on 3-5 November 2011, G-20 Leaders agreed upon that 
the Chairmanship of G-20 will be held by Turkey in 2015. 
 
                                                      
3 24 May 2011.  Turkey WT/TPR/G/259 
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  (1) TRADE IN GOODS  
101. The Import Regime of Turkey reflects national economic needs and Turkey’s rights and 
obligations arising from the WTO Agreements, the Cu stoms Union with the EU and other bilateral, 
regional and multilateral agreements includi ng the free trade agreements (FTAs). 
102. Within the scope of the Turkish Import Regime, imports of goods are in line with Turkey’s 
WTO commitments and obligations arising there upon.  
103. The Turkish tariff structure is transparent and si mple. With respect to taxes and fiscal charges, 
Turkey’s import regime has been totally simplified.  
104. The clarity of the Import Regime is ensure d by indicating the rates of customs duties 
separately for countries and country groups; and by  classifying the products under six lists; namely, 
agricultural products (List I), industrial products (L ist II), processed agricultural products (List III), 
fish and fishery products (List IV), the suspension lis t (List V), and list of goods used in civil aircraft 
eligible to relief from customs duties (List VI). 
105. These lists are made available to the public in  the Official Gazette in the beginning of each 
year. They are also released in the official website of the Ministry of Economy 
(www.ekonomi.gov.tr). 
106. The most recent changes in the import regi me were introduced with the Import Regime 
Decree for the year 2011, which was published in the Official Gazette (No. 27802 bis) on 31 December 2010. The Import Regime Decree of 2011 w as prepared by taking into consideration the 
Agreement Establishing the WTO, the Turkey-E U Customs Union Decision (CUD), the free trade 
agreements with various countries, the preferentia l treatments granted under the Generalized System 
of Preferences (GSP) to developing, least devel oped and special incentive arrangement countries, and 
also the needs and demands of the agricultural a nd industrial sectors in accordance with the objectives 
determined by the developmen t plans and annual programs. 
(i) Non-agricultural products 
107. As a participant to the Uruguay Round negotiati ons and a signatory to the Agreements as 
annexed to the Agreement Establishing the WTO,  Turkey undertook tari ff reductions on industrial 
and agricultural products to be im plemented gradually. In addition, as a result of the Customs Union 
with the EC, Turkey began to apply the Community’s Common Customs Tariff (CCT) on the imports of industrial goods from third countries, which is far below its Uruguay Round bound rates. Thus, 
with the Customs Union, Turkey’s simple average protection rate fo r the third countries declined in 
the process from pre-Customs Union rate of approxim ately 15% to 4.2% as of 2011. This rate is zero 
for the EU and EFTA countries since 1996. Hence, desp ite its developing country status in the WTO, 
Turkey is one of the countries applying the low est tariffs in non-agricultural goods among member 
countries.  
108. CUD establishing the Customs Union between Tu rkey and the EC foresees Turkey align its 
Generalized System of Preferenc es with that of the EC's. Accordingly, duties on products under the 
CUD are entirely eliminated for the LDCs in lin e with the Everything But Arms (EBA) Initiative of 
the EC GSP Scheme. In compliance with the agreem ent with the EC, Turkey also grants further 
preferences to selected 15 countries under the Sp ecial Incentive Arrangements for Sustainable 
Development and Good Governance. Beneficiary count ries are announced annually in the Annexes of 
Turkey's Import Regime.  WT/TPR/G/259 Trade Policy Review 
Page 22 
  
  (ii) Agricultural products 
109. Within the framework of WTO Agreement on Agri culture, Turkey has bound all of its tariffs 
for the agricultural products in 1995. As reflect ed in Turkey’s Schedule of Commitment List 
(Schedule XXXVII) to the WTO, Turkey has made 10% minimum cut per product and 24% average 
cut for all agricultural products between the period 1995 and 2004. The average customs duty for 
agricultural products by 2011 is 58.9%.  
110. Turkish agricultural policy has b een shaped via four main tools: the Agricultural Strategy 
2006-10, the Agricultural Law (No. 5488) of 2006, the Strategic Plan (2010-14) and the Ninth Development Plan of Turkey. This policy framework was adopted with an aim of aligning Turkey's 
agricultural policy with the Common Agricultural Po licy (CAP) of the EU.  Turkey's main policy 
objectives are food security and food safety, and rais ing the self-sufficiency level for selected net-
imported products;  as well as improving productivit y and competitiveness;  ensuring sustainable farm 
incomes, rural development, and improving instit utional capacity, in the agricultural sector.   
111. Turkey has enriched the rural development po licy alternatives very recently. Other than 
infrastructure projects, income diversification, de velopment of human resources, and the preservation 
of the environment are taken into considerati on during policy implementation. As part of the 
accession partnership between Turkey and the EU, Instrument for Pre-Accession Assistance-Rural 
Development Programme (IPARD) star ted in 2011 considering 2007-13 period to achieve consistency 
with EU's rural development policies.  
112. Agriculture is one of the dominant sectors in  the Turkish economy with its 25.2% share 
within the total employment in 2010. However, in comparison to the other sectors with respect to 
employment, the income of those employed in the agricultural sector remains extremely low. 
Therefore, the results of the WTO Agricultural Nego tiations would be highly critical for Turkey with 
not only economic but also social-adjustment impacts.  In case of the market access, as tariffs are the 
only instruments to sustain agricultural production in Turkey like most developing countries, a gradual liberalization process and some complement ary instruments to minimize the possible negative 
impacts of liberalization are being sought within  the WTO Agricultural Negotiations. In that sense, 
Turkey attaches the utmost importance to the flex ibilities to be extended to developing countries 
including the Special Products (SP) and Special Safeguard Mechanism (SSM). 
(iii) Safeguards 
113. Decree No. 2007/12850 of 12 November 2007 on Amendment of the Decree on Safeguard 
Measures for Imports was published in Official Gazette No. 26721 of 5 December 2007. The Decree 
amending the existing safeguard legislation was ente red into force on 4 January 2008 and circulated to 
the WTO members with the Document No. G/SG/N /1/TUR/3/Suppl.1 dated 3 March 2008. The aim 
of the amendment in the safeguard legislation is to  prevent the activities eliminating the effects of a 
safeguard measure by disassembling the product subject to measure.  
(iv) Technical barriers to trade  
114. As being the national enquiry point of Turkey under the TBT Agreement, Directorate General 
of Product Safety and Inspection under the Ministry  of Economy in July 2011, designed a website, 
www.teknikengel.gov.tr, to facilitate the access to TBT notifications of other countries by private and 
public sector and to get the business opinion on the re levant field. The website allows its subscribers 
to provide suggestions on the draft legislation of other countries and also to prepare themselves for 
future technical requirements. The system also allo ws them to give feedback on the implementations Turkey WT/TPR/G/259 
 Page 23 
 
 
  of the administration as well as to acquaint them w ith most up-to-date information in the field of 
technical regulations through reports, announcements and notifications. Viewers and subscribers are 
also encouraged to submit their opinion on policy op tions to facilitate access to markets and to notify 
unnecessary obstacles they encounter in entering foreign markets.  
115. The web service has also created a unique oppor tunity for the administration to get sound 
knowledge of reactions to the impediments to trade, to generate statistical analysis, to be familiar with 
market access failures, to overcome the impedi ments and to build a bilateral and multilateral 
understanding of common rules in international trade.  
116. With rules and guidelines of the WTO system  and our experience from the Customs Union 
with the EC, Turkey concludes that elimination of  bilateral barriers would generate no less advantage 
than they can be achieved by international appr oach, tough it needs more concentration and more 
elaborated work. Turkey has initiated joint actions, within the context of cooperation building, with 
China’s General Administration of Quality Supe rvision, Inspection and Quarantine (AQSIQ) to 
ensure that the quality and safety conditions are matched in bilateral trade.  
117. Turkey and Ukraine declared a memorandum of  intent on cooperation in the fields of 
standardization, metrology, conformity assessment and consumer’s rights protection. Relations with 
Israel continue under FTA Joint Committee meetings. Turkey also signed agreements with Bulgaria, 
Lebanon, Jordan and Iran in the fields of techni cal legislation, standardization, accreditation, 
metrology and conformity assessment procedures wh ich will be in force after the completion of 
internal approval procedures.  
(2) INVESTMENT  
118. Turkey has attributed considerable importance to the foreign investment and pursued liberal 
foreign policies since 1980's in parallel to the advan ces in the global economy. The new foreign direct 
investment regime became effective on 17 Ju ne 2003 by the publication of "Foreign Direct 
Investment Law No. 4875" in the Official Gazette. The law not only provides foreign capital the best 
international standards, such as equal treatment, guar antee to transfer proceeds, right to resort to 
international arbitration and right to employ key ex patriate personnel, but also repeals prior approval 
procedures for foreign investors and minimum cap ital requirements to invest in Turkey. This 
favourable investment climate is also strengthened by Bilateral Investment Agreements which Turkey 
signed with 73 countries. 
119. The Turkish Investment Encouragement System, which is currently in force, takes into 
account the recent changes in the global economic and social circumstances. This new system which 
has been in force since July 2009 has three main  targets; reducing the inter regional development 
discrepancies, supporting large scale, technolog y and R&D intensive investments for increasing 
competitiveness and supporting sectoral clustering. 
120. The new investment incentive system is based on three main pillars; large scale investments, 
regional incentives and a general incentive system. Large scale investments require advanced 
technology and high capital, which will contribute to the technological and R&D capacity of the 
country and develop Turkey’s production base. Regi onal incentives aim to eliminate inter regional 
discrepancies and support an investment environment to encourage sectoral clustering. The provinces 
of Turkey have been categorized in four groups accord ing to their level of development.  As far as the 
mechanism is concerned, domestic and foreign investors are equally treated; the companies having 
foreign capital can benefit from all encouragement m easures granted to domestic companies with the WT/TPR/G/259 Trade Policy Review 
Page 24 
  
  same conditions. Within the objectives and the scope of  the Program, eligible investment projects can 
benefit from tax based encouragement measures (nam ely, customs duty exemption, VAT Exemption, 
reduced corporate/income tax rate), support for empl oyer's contribution for social security and land 
allocation where possible. Additionally, "interest rate support" provides for the compensation of 
certain percentage points of the interest rate for credits obtained in commercial terms by investors for 
the investments in the less developed regions. 
121. In all legal measures and programs introduced, Turkey is very rigorous to observe its 
commitments to the WTO TRIMs Agreement. Today, Tu rkey’s FDI regime is in full compliance with 
the rules set forth in the Agreement.  
(3) SERVICES  
122. In scope of the 2012 Annual Program, it is estimat ed that the annual real growth rate of the 
services sector would be 7.8% in 2011, while the shar e of services in GDP is expected to reach 72.5% 
in 2011. The current share of services is 72.4% of the GDP as of 2010. Services sector represented 
approximately 55% of the employment in Turkey in 2010. 
123. With the aim of further liberalizing the servi ces sector, Turkey has made commitments in 
several services categories under the General Agreem ent on Trade in Services (GATS). Turkey has 
also been actively and constructiv ely engaged in trade in services ne gotiations (both bilaterally and 
plurilaterally) on the basis of GATS, since 2000. In  World Economic Forum’s Financial Development 
Report 2010, Turkey is listed as the best performer in terms of the commitments to the GATS. With 
this understanding, Turkey has joined in the effort s for the revival and the successful completion of 
Doha Round negotiations. Turkey was one of the members participated in signalling conference 
in 2008, stock-taking exercise in 2010, and plurila teral negotiations in 2011 in this regard.  
124. In the Doha Round services negotiations, Turkey ’s objective is to improve the number and 
quality of market access and trade-related commitmen ts. In this context, Turkey has submitted its 
initial conditional services offer to the WTO on 15 August 2003 and its revise d conditional offer on 
12 September 2005. They were circulated on 3 September 2003 (TN/S/O/TUR) and on 
29 September 2005 (TN/S/O/TUR/Rev.1), respectively. Turkey is now in the process of drafting its 
second revised offer in accordance with the request s and the economic liberalization program of the 
government.  
125. Turkey, on the way of full membership to the EU, has continued its regulatory reforms in 
services since its last TPR in 2007. Türk Telekom (TT), having been a state monopoly, was privatized 
as of 14 November 2005 and in 2008 after public offe ring Treasury share in TT decreased to 31.68%. 
The new Electronic Communications Law, which was pr epared in line with the EU legislation, came 
into force in 2008. It introduced a general authori zation regime that considerably simplifies market 
entry. Several secondary legislation has been put into force since the en actment of this Law. 
(4) TRADE -RELATED INTELLECTUAL PROPERTY RIGHTS  
126. In line with its commitments under the WTO TRI PS Agreement and in scope of its efforts to 
align laws and regulations with the EU legislati on, Turkey has introduced  certain changes to its 
intellectual property regime since the last TPR. Turkey WT/TPR/G/259 
 Page 25 
 
 
  (i) Copyright 
127. The Law of Intellectual and Artistic Works No. 5846 was amended by the Law No. 5728 
(promulgated on the Official Gazette dated  8 Fe bruary 2008) in order to harmonize the Copyright 
Law with the new Turkish Criminal Code and Turkish Criminal Procedure Code.  
128. With the aim of accomplishing full harmoni zation with the EU Acquis and eliminating 
discrepancies in the implementation of intellect ual property rights, the Law No. 5846 on Intellectual 
and Artistic Works is decided to be amended. Therefore the Draft Law was sent to the related 
institutions, organizations and collecting societies. Currently the views of these institutions are being 
evaluated.  
129. Intellectual and Industrial Property Coordination Board has been established by Prime 
Minister Circular on Establishment of the Coordi nation Board (Official Ga zette dated 21 May 2008 
and No. 26882) with the aim of creating short,  medium and long term strategies for the 
implementation of intellectual and industrial property rights in Turkey  and improving the coordination 
between the relevant institutions. Within the cont ext of Prime Minister Circular, Coordination Board 
convenes twice a year under the co-presidency of Mi nistry of Culture and Tourism and Ministry of 
Science, Industry and Technology with the participation of high level representatives of related 
institutions (Ministry of Justice, Ministry of Econo my,  Ministry of Interior, Ministry of Health, 
Ministry of Food, Agriculture and Livestock, Ministry of Customs and Trade, Ministry of Development, Directorate General of Copyright and Cinema, Turkish Patent Institute, The Scientific 
and Technological Research Council of Turkey and The Union of Chambers and Commodity 
Exchanges of Turkey). 
130. As it is stated in last report, according to Law on Intellectual and Artistic Works the local 
administrative authorities may form an "inspec tion commission" in provinces by the provincial 
administrative authorities to mandate the control of  the banderole implementation.  Representatives of 
the Ministry and the collective societies can also take part in these commissions. With the amendment 
of Law No. 5846 by the Law No. 5571 (13 January 2 007), a rewarding system was established for the 
public officers of inspection commissions responsible for combating piracy by taking into 
consideration the quantity of the seized material entered into force. Additionally a Cooperation 
Protocol was signed on 25 February 2010 between Ministry of Culture and Tourism and Ministry of 
Interior with the aim of fixing the procedures and principles of the inspections of Provincial 
Inspection Commissions. Within the context of the Protocol, the number of the Provincial Inspection 
Commissions has been increased from 65 to 81 and the presidency of the Commissions was delegated 
to the National Police by taking into consideration of their important role regarding fighting against 
piracy. 
131. Copyright Automation System (TEHAKSIS) which is designed with a view to diminish 
bureaucratic transactions; strengthen inter-institutio nal coordination; ensure easy access to reliable 
information for pursuing the intellectual property ri ghts and to shorten work flow process conducted 
between the Ministry of Culture and Tourism and other related institutions, has been considerably 
completed. Within the context of TEHAKSIS, following the non-periodicals banderole and certification applications; voluntary registration app lications are currently available via internet 
through TEHAKSIS as of 22 November 2010. In April 2010, the authority of online access for using automation system was delegated to the Provincial Culture Directorates and National Police in order 
to accelerate the inspections of Provincial Inspection Commissions  (in 81 Province) within the 
framework of fighting against piracy activities. WT/TPR/G/259 Trade Policy Review 
Page 26 
  
  132. On the other hand, on 3 December 2010, a Pr otocol on Principles of Reciprocal Access, 
Sharing and Use of Data in the Field of Intellect ual Property Rights was signed between Ministry of 
Justice and Ministry of Culture and Tourism with  a view to provide the electronic access to the 
information and documents in the judicial process a nd to strengthen the fight against violation of the 
rights. The Protocol envisages establishing the in tegration of two automation systems by providing 
the data-communication between National Judiciary Informatics System (UYAP) and TEHAKSIS and thus the trial process will be shortened. 
133. In order to overcome the problems regarding tariffs and license agreements, four collecting 
societies functioning in music sector (MÜYAP, MSG, MESAM, MÜYORBIR) signed a cooperation 
agreement in February 2007. Subsequently, co llective agreements were  signed between these 
collecting societies and professional associations representing users, regarding licensing of musical works used in hotels (on 26 March 2008) and in broadcasts (on 22 November 2008).  
134. On 7 October 2009, B İROY (United Actors Collecting Soci ety) was established with the 
participation of 300 audiovisual perfo rmers. With the establishment of B İROY, the new initiative was 
set out in the collective management of rights in cinema sector. The collective societies functioning in 
cinema came together on 14 October 2009 to sign  common action protocol on tariffs and licensing 
like music collecting societies. 
135. On the other hand, in order to ensure effec tive implementation of the licensing activities of 
the cinematographic works, 7 collecting societies (SETEM, TES İYAP, SEYAP, F İYAB, SİNEBİR, 
BİROY, BSB) operating in the field of cinema have  been subsidized by Ministry of Culture and 
Tourism. Within the context of this financial support, "Headquarter of Collecting Societies of 
Cinema" was founded on 20 January 2011.  
136. Moreover, "Publisher Collecting Societi es Federation" (YAYFED) was founded on 
14 February 2011, by collecting societies operating in the field of publishing (YAYB İR, 
BASYAYB İR). In order to effectively operate the ba nderol system through involvement of rights 
holders in the process of combating piracy, a protocol was signed between YAYFED and Ministry of 
Culture and Tourism, regarding the selling of non-periodicals banderol through the Federation on 
06 April 2011. 
137. Turkey became party to WIPO Copyright  Treaty and the WIPO Performances and 
Phonograms Treaty by the enactment of "Law on Ra tification of Participation in WIPO Copyright 
Treaty" and "Law on Ratification of Participation in WIPO Performances and Phonograms Treaty" by 
28 November 2008. 
138. As part to the process of Turkey’s full memb ership to the EU, following the fulfillment of 
opening benchmarks, Chapter 7 on "Intellectual Property Rights" is opened for negotiation on 
17 June 2008. In the context of the Chapter, five  closing benchmarks are notified for the provisional 
closure of the negotiations. In order to meet the first closing benchmark of the Intellectual Property 
Law Chapter, Working Group on Intellectual Prope rty Rights between European Union and the 
Republic of Turkey was established with the appr oval of Terms of Reference for the Working Group 
which was prepared in the consequence of nego tiations between EU and Turkey by the Turkish 
Intellectual and Industrial Property Coordination Bo ard. Additionally, Ministry of Culture and 
Tourism was appointed as coordinating authorit y of Working Group on behalf of Turkey. 
139. The first meeting of the Working Group was held in Ankara, in 18 May 2011 with the 
participation of the representatives of Directorate General of Enlargement, the Directorate General of Turkey WT/TPR/G/259 
 Page 27 
 
 
  Commerce of European Commission and Delegation of  European Commission to Turkey as well as 
the representatives of Ministry of Culture and Tourism,  Turkish Patent Institute, Ministry of Justice, 
Ministry of Interior, Ministry of Customs and Trade, Ministry of Economy, Ministry of European Union Affairs, Ministry of Food, Agriculture and Livestock and Ministry of Development. In the 
meeting, the legal regulations re garding the recent developments on intellectual property rights and 
administrative implementations have been discussed . The negotiations on draft operational conclusion 
of Working Group meeting are continuing. 
(ii) Industrial property rights 
140. A new law (the Law No. 5833), regulating the criminal provisions for the protection of 
trademark rights, has been adopted on 21 January 2009 and came into force on 28 January 2009. This 
Law has replaced the criminal provisions of the Decree Law No. 556 for the protection of trademark 
rights and it meets the requirements of the TRIP S Agreement and even goes beyond it in some 
penalties introduced for the infringers of trademark rights. 
141. The Implementing Regulations of the Decree  Law No. 554 on Protection of Industrial 
Designs, Decree Law No: 551 on Protection of Pate nts, and Decree Law No. 555 on Geographical 
Indications were simplified in accordance with the reduction of bureaucracy and simplification study 
conducted by the Prime Ministry. The amended regula tions were published in the Official Gazette on 
21 April 2009 and has become effective. 
142. In order to increase the coordination among the administrative and policy making 
bodies/institutions in IPR field in Turkey, "T he Intellectual and Industrial Property Rights 
Coordination Board" (IIPRCB) was established on 21 May 2008 with the power of the communiqué 
of the Prime Minister. The Board was mandated, inte r alia, to develop short, medium and long term 
strategies in IPR field, to secure coordina tion and enhance coopera tion among the relevant 
institutions, thus, ultimately to increase the effect iveness of applications in reaching the targets 
determined in the Government Ac tion Plan (2008-2012) and in the Turkey's Programme for alignment 
with the EU Acquis (2007-2013). The Board is co-cha ired by the Undersecretaries of Ministry of 
Science, Industry and Technology and the Ministry  of Culture and Tourism. The Members of the 
Board are comprised of relevant Ministries and Unde rsecretaries that shall be represented at least at 
the level of Deputy Undersecretaries. Also the private sector representation has been secured through 
accepting the representation of the Union of Chambe rs and Commodity Exchanges of Turkey, which 
is the highest legal entity representing the private sector in Turkey. IIPRCB’s members are to convene 
at least 2 times in a year and 6 meetings have been done so far. 
143. With reference to the closing benchmark of one of the chapters of the ongoing negotiations 
between the EU and the Republic of Turkey, a "W orking Group on Intellectual Property Rights" was 
established on 28 May 2010. The Working Group aims  to discuss institutional, legislative, and 
enforcement related issues and to increase public awareness of consumers and right-holders in 
accordance with the agreed "Terms of Reference". The 1st meeting of the working group was held in 
Ankara, Turkey on 18 May 2011 with the particip ation of the EU Commission Representatives and 
the Turkish Representatives. 
144. The EU sponsored Twinning project entitled "Supporting Turkey for Enhancing 
Implementation and Enforcement of Industrial Property Rights " which aimed to strengthen the 
enforcement capacity of Turkey in industrial property rights has been finalized with success in the last 
week of September 2011. With the twinning partne r Federal Republic of Germany and its related 
organs, 114 activities were organized during 13 mont hs period to which 80 experts from 11 different WT/TPR/G/259 Trade Policy Review 
Page 28 
  
  countries were attended and over 5,000 stakeholders  participated in the various activities offered. 
Guidelines for the use of patent and trademark experts have been prepared in order to streamline their 
work and to increase the tran sparency for the applicants. 
145. Turkish Patent Institute co-chairs one of th e committees of the "The Coordination Council for 
the Improvement of the Investment Environment" (CCIIE). CCIIE aims, inter alia, to rationalize 
bureaucratic procedures and reduce red tape, and in order to do so, a comprehensive reform program 
was launched in 2001 by Council of Ministers Leading Decision.  
146. The Coordination Council for the Improvement of  the Investment Environment (CCIIE) has 
become a key structure where private sector makes contributions in the process of improving 
investment climate. The Council conducts its age nda with the help of 12 Technical Committees 
working on specific issues with participation of both public and private institutions. TPI, as the co-
chair of the "Industrial and Intellectual Propert y Rights Committee" has actively involved in the 
works of the council where the business needs and c oncerns determine the work and agenda of the 
committee.  
(iii) IPR-related courts 
147. For the first time, Specialized IPR Courts (one civil and one criminal IPR court) were 
established on January 2001 in İstanbul. Since then, the total number of the Specialized IPR Courts 
reached to 22, which are distributed as follows:  
 - İstanbul: 6 IPR civil courts, 7 IPR criminal courts 
 - Ankara: 4 IPR civil courts, 2 IPR criminal courts 
 - İzmir: 1 IPR civil court, 2 IPR criminal courts 
 148. General civil and general criminal courts are competent to deal with IPR cases where 
specialised IPR courts do not exist. (If there is one or  two general civil or criminal courts, the first one 
is competent to deal with IPR cases. If there are th ree or more than three general civil or criminal 
courts, the third one is competent to deal with IPR cases.)  
149. The Circular on the loss of tax revenues ste mming from actions of piracy and counterfeiting 
was updated on 18 October 2011 by the High Council of Judges and Prosecutors. According to the 
Circular, the Offices of Public Prosecutors shall inform the Heads of Tax Administration on the final 
decisions of the criminal courts regarding convi ction of piracy and counterfeiting to prevent tax 
evasion. The Circular also includes a provision on the specialization of public prosecutors on IPR 
infringement. If the number of investigation on IPR crimes is more than 500, chief public prosecutors 
shall establish a special "IPR bureau" responsible fo r investigate IPR crimes in accordance with the 
Circular. If the number of investigation on IPR cr imes is not enough to establish a special "IPR 
bureau", the authority for investigation of IPR crimes  shall give to one of the existing bureaus or to 
certain prosecutors.   
(5) T
URKEY 'S ACCESSION PROCESS TO THE EU  
(i) Recent developments in Turkey-EU relations 
150. Since the EU Council adopted the Europ ean Commission’s Accession Negotiations 
Framework for Turkey on 3 October 2005, Turkey has been working on adopting EU policies. Turkey WT/TPR/G/259 
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  151. However, on 29 November 2006, the European Commission recommended that "full 
implementation of the Additional Protocol to the Association Agreement to all member states" is 
opening benchmark in 8 chapters (F ree Movement of Goods, Right of  Establishment and Freedom to 
Provide Services, Financial Services, Agriculture  and Rural Development, Fisheries, Transport 
Policy, Customs Union and External Relations) and closing benchmark in all chapters. On 
11 December 2006, the EU General Affairs and External Relations Council agreed with the 
recommendation of the Commission and it was confirmed by Brussels European Council of 14-15 December 2006. Moreover, due to the unilateral decisions of certain member states of the EU 
some other chapters are also blocked which makes 17 ch apters out of 33 politically blocked in total.   
152. Within this framework, as of October 2011, 13 chapters have been opened to negotiations, 
one of which was provisionally closed. These Chap ters are "Science and Research"(provisionally 
closed), "Free Movement of Capital", "Company  Law", "Intellectual Property Law", "Information 
Society and Media", "Statistics", "Enterprise and Industrial Policy", "Trans-European Networks", 
"Consumer and Health Protection", "Financial C ontrol", "Taxation", "Environment", "Food Safety, 
Veterinary and Phytosanitary". There are only 3 chap ters left that can be technically opened. These 
are "Competition Policy", "Public Procurement", "Social Policy and Employment". 
153. Turkey is determined to continue its acce ssion process. In 2010, Turkey prepared "EU 
Strategy for Turkey’s Accession Process", which incl udes four pillars for accelerating negotiations 
and increasing the public awareness and support. Th e first pillar is the ongoing official negotiation 
process. In the second pillar, regardless of whether the chapters have been opened, suspended or 
blocked, Turkey aims to revive the commitments la id down for alignment of legislation with the EU 
Acquis. The third pillar is about providing the persiste nce of political criteria. Lastly, the fourth pillar 
is the communication strategy. 
(ii) Developments in harmonization with the EU policies  
(a) Harmonization in commercial policies 
154. Harmonization with the basic mechanisms a nd principles of the EU’s Common Commercial 
Policy constitutes a substantial part of Turkey’s obl igations in scope of the Decision No. 1/95 of the 
EC-Turkey Association Council establishing the Cust oms Union between Turkey and the European 
Union. 
Generalized system of preferences 
155. As of August 2004, all industrial products cove red by the EC’s GSP Regime are included into 
Turkey’s GSP. Finally, by including processed agricultural products into the system as of 
1 January 2010, Turkey’s GSP system covers a ll the products under the Customs Union, in full 
harmony with that of the EU. 
Free-trade agreements  
156. The Customs Union between Turkey and the EU  constitutes a legal basis for Turkey’s free 
trade agreements.  
157. The tariff concessions for the industrial and agri cultural products, quantitative restrictions on 
imports and exports, customs duties or measures ha ving equivalent effect, basic duties, safeguard 
measures, internal taxation, technical barriers to tr ade, sanitary and phytosan itary measures, rules of 
origin, services and investment, general exceptions , security exceptions, state monopolies, payments, WT/TPR/G/259 Trade Policy Review 
Page 30 
  
  rules of competition, public procurement, intell ectual property rights, dumpi ng and subsidy, re-export 
and serious shortage and balance of payments di fficulties are governed by FTAs. Moreover, rules of 
origin are a major component of the FTAs. 
Turkey's free trade agreements  
 Europe Asia and Caucasus Af rica and Middle East Americas 
Signed 
Agreements (*) European Free Trade 
Association (EFTA) 
Macedonia Croatia 
Bosnia and 
Herzegovina 
Albania 
Serbia 
Montenegro Georgia  Israel  
Egypt 
Morocco  Tunisia  
Palestine Authority  
Syria  Jordan  
Lebanon (**) 
Mauritius (**) Chile 
Ongoing 
Negotiations Moldova 
Faroe Islands Malaysia 
South Korea Cameroon  
Seychelles  
Libya  Gulf Cooperation Council (GCC) 
Dem. Rep. of Congo  Ecuador 
Colombia 
Southern Common 
Market 
(MERCOSUR) 
Exploratory 
Talks Ukraine 
 Association of Southeast 
Asian Nations (ASEAN) 
 
India  Indonesia South Africa Customs Union 
(SACU) 
African Caribbean and Pacific 
(ACP) Countries  
 
Algeria Mexico 
Canada 
Peru 
Central America 
(*) FTAs with Lithuania, Hungary, Estonia, Latvia, Slovakia, Poland, Slovenia, Romania, Czech  Republic and Bulgaria are not 
 mentioned since all these countries  became full member to the EU.  
(**) Turkey-Lebanon FTA was signed on 24 November 2010 and Turkey-Mauritiu s FTA was signed on 9 September 2011. These 
 Agreements will enter into force once the internal ratification procedures are completed by both countries.   
158. Since the last TPR of Turkey in 2007, FTAs with Albania (May 2008), Georgia 
(November 2008), Montenegro (March 2010), Serbia (September 2010), Chile (March 2011), and 
Jordan (2011) have entered into force. 
159. Turkey signed an FTA with Lebanon on 24 Novemb er 2010, which is still subject to internal 
ratification process of both countries.  
160. In addition to these, Turkey’s FTA negotiations  with African, Caribbean and Pacific (ACP) 
countries were started in 2009. In this regard, th e FTA between Turkey a nd Mauritius was signed on 
9 September 2011, while the FTA negotiations with  Seychelles, Cameroon and Democratic Republic 
of Congo are continuing. Moreover, the explorat ory talks with CARICOM Secretariat were held 
in 2009. 
161. The first round of FTA negotiations with Moldova was held in Chisinau in May 2011. 
162. In the case of India and Indonesia, Joint Study Groups were established in January and 
March 2010 respectively to explore the feasibility of concluding comprehensive FTAs and to assess 
the potential outcomes of such agreements. Reports of  the Joint Study Groups (completed in February 
and March 2011 respectively) indicate that such FTA s will contribute to improve the bilateral trade 
relations. The FTA negotiations are expected to  start following the completion of relevant 
signature/ratification process of these reports. Turkey WT/TPR/G/259 
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  163. Moreover, Turkey has also initiated FTA pro cess with some other Asian countries. In 
accordance with the Customs Union with the EU as well as willingn ess to enhance and deepen our 
trade relations with those countries, Turkey is conducting FTA negotiations with South Korea and 
Malaysia.  Besides, exploratory talks are he ld with Vietnam to start FTA negotiations. 
164. Turkey’s FTA negotiations with the Gu lf Cooperation Council (GCC) countries4 are under 
way. The exploratory talks with South African Cu stoms Union (SACU), and Mexico were held in 
May 2005, and May 2007 respectively. Also, there ha ve been three rounds of exploratory talks with 
Ukraine last of which was held in May 2009.  
165. In the scope of Turkey’s trade policy with La tin American countries in parallel with the EU, 
Turkey has started FTA negotiations with Colo mbia and negotiations on Trade Agreement for 
Development with Ecuador in 2011 and FTA explorat ory talks with Peru and Panama are planned to 
be started in late 2011 or early 2012. 
(b) Harmonization in technical legislation  
166. Turkey has been harmonizing the technical legislation of the European Union for more than a 
decade within the framework of the Turkey – EU Association Council Decision (ACD) No. 1/95 that 
established a Customs Union and ACD No. 2/97 that de termined the rules and scope of harmonization 
of technical legislation and is updating its regula tions in accordance with th e changes in the EU’s 
horizontal legislation. 
167. Moreover, in accordance with Article 6.3 of th e TBT Agreement and in order to prevent any 
possible trade diversion between Turkey and the EU , Turkey is planning to conclude bilateral 
agreements parallel to EU’s mutual recognition ag reements. To this aim, The Decision on Mutual 
Recognition of Conformity Assessment of Products – Protocol E  has been adopted during the Joint 
Committee Meeting held on 3 December 2009 between  Turkey and EFTA. The internal procedures 
for the ratification of the Protocol have been c oncluded by both sides and it entered into force on 
5 July 2011. 
168. In order to create an accreditation system which is  equivalent to that of the EU and functions 
according to internationally recognized princi ples, Turkish Accreditation Body (TURKAK) was 
established in 1999. It started accreditation activities in 2001 afte r completing its organizational 
structure. To enhance international cooperation,  TURKAK applied to Eu ropean Cooperation for 
Accreditation (EA) and was admitted to the member ship of EA in late 2002. TURKAK signed 4 of 
the 7 MLAs (Multilateral Agreements ) in 2006 and 3 of the 7 MLAs in 2008 for the recognition of its 
accreditation activities and finalizing the internationa l acceptance. After being a member of ILAC 
in 2004 and ensuring mutual recognition with ILAC , TURKAK became a member of IAF at the end 
of 2006 and certificates given by TURKAK are recognized almost globally. 
169. TURKAK has contributed to the assignment of notified bodies and as of today, there are 
19 Turkish notified bodies under 13 new approach di rectives, such as lifts, machinery, medical 
devices and construction materials etc. There is also an approval body un der Construction Products 
Directive (89/106/EEC;  93/68/EEC) named as Board of Technical and Scientific Research on 
Construction. 
170. Turkish Standards Institute (TSE) as a full me mber of the International Organization for 
Standardization (ISO), the International Electrot echnical Commission (IEC) and an affiliate member 
                                                      
  4 GCC countries are Bahrein, Kuwait, Oman, Qa tar, Saudi Arabia and United Arab Emirates. WT/TPR/G/259 Trade Policy Review 
Page 32 
  
  of CEN and CENELEC since 1991, is the national st andards body and it has been active in this area 
since 1950s. TSE applied for the full membership of CEN and CENELEC in August 2010 and TSE is 
expecting that this process will be concluded in 2011. Having almost 99% of CEN/CENELEC 
standards in Turkish system, it is certain that TSE will be an active stakeholder in the European 
system in the near future. 
171. Within the context of the transposition of the EU technical legislation, By-Law on 
Construction Products (89/106/EEC) pr epared based on Council Directive on the approximation of 
laws, regulations and administra tive provisions of the Member St ates relating to construction 
products (89/106/EEC) , lays down the essential requirements for any construction products, which 
is produced for incorporation in a permanent manne r in construction works including both buildings 
and other civil engineering works and the confor mity assessment procedures applicable to these 
products and the principles and procedures relating to  market surveillance and inspection. By-Law on 
Construction Products (89/106/EEC)  is mandatory as of 1 July 2007.  In the framework of  By-Law 
on Construction Products , 11 notified bodies are designated to perform conformity assessment 
activities on the basis of 185 technical specifications. 
III. DEVELOPMENTS IN TURKISH FOREIGN TRADE  
172. Since 1980s Turkey’s foreign trade policy has been shaped by an export-led, outward-
oriented economic growth approach. Thus, in th is process, Turkey established an open market 
economy integrated into the global economic system. As a result of Turkey’s Customs Union with the 
EC, although being an emerging economy, Turkey adopt ed more liberal policies in trade compared to 
its counterparts. The openness rate of Turkey, as the share of total trade volume in GDP, increased 
considerably to 40.7% in 2010 from 30.6% in 1994. 
173. Turkey continues to put emphasis on diversifyi ng its trade partners and lessen its market 
dependencies. Export strategies applied with this  aim paved their way creating a favourable global 
environment for Turkish exports and Turkey’s bila teral trade with almost all regions increased 
substantially in the last five years, reaching US$11 3.9 billion in 2010. Moreover, high growth rates in 
the Turkish economy increased the demand for im ports due to higher in come and additional 
investments. Turkey imports a large amount of in termediate goods, which co nstitutes almost 70% of 
its total imports. Consequently, integration of the Turkish economy to global markets accelerated with 
a dazzling performance in recent years.  
174. Thus, Turkey’s trade volume increased to  US$299.4 billion by the end of 2010 from 
US$243 billion in 2009. The crisis in the global markets affected Turkey’s trade volume in 2009 
negatively and both exports and imports decreased, by 22.6% and 30.2% respectively. However, the 
impacts of the crisis were parried rapidly in 2010 and the pre-crisis trade volume of US$334 billion 
will be regained quickly. Over the past five years, while exports reached US$113.9 billion with 
an overall increase of 33%, imports surged to  US$185.5 billion with a cumulative rise of 
32%. In 2010, the ratio of exports to imports was 61.4%. As of September 2011 trade volume 
became US$281.2 billion with US$99.5 billion exports and US$181. 7 billion imports.5  
                                                      
5 See Annexed Table 5-A: Foreign Trade by Years. Turkey WT/TPR/G/259 
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  (1) TRADE DEVELOPMENTS BY REGIONS AND COUNTRIES6 
(i) The European Union (EU) 
175. The EU is clearly the biggest trade partner of  Turkey. In 2010, the EU accounts for 46.3% of 
total exports and 38.9% of total imports. Turkey is an important trade partner for the EU as well. The 
foreign trade statistics of the EU for the year 2010  demonstrate that Turkey ranks seventh at imports 
of the EU with a share of 2.8% and fifth at exports of the EU with a share of 4.5%.  
176. The Customs Union has strengthened the trad itionally comprehensive trade relations. The 
volume of trade between Turkey and the EU reached to US$124.9 billion in 2010 from 
US$27.9 billion in 1995. The trade volume in  2011 has been US$116 billion as of September, 
US$47 billion of which constitutes Turkey’s expor ts whereas US$69 billion represents its imports. 
177. Even though imports from the EU has fluctuated in parallel with internal and external macro 
economic developments, during the 1995-2010 period, ex ports recorded a higher rate of increase than 
imports. Although exports to the EU dropped by 26% to  47 billion dollars in 2009 due to the 
global economic crisis, the trend has been quite  contrary in 2010. Our exports to and imports 
from the EU grew by annual 12.1% and 27.7% in 2010.  
(ii) Other Europe & CIS countries 
178. Compared to the EU, the growth rate of trade volume with other European countries 
transcended between 2002 and 2010. With the impetu s stemming from the FTAs with the non-EU 
countries (such as Macedonia, Albania, Bosnia and Herzegovina, Serbia and Montenegro), jumping 
by nearly three fold since 2002, trade volume w ith this group of countries reached US$1.3 billion 
in 2010. Exports to other Europe in 2010 consists mostly of pearls, precious  stone and metal products, 
coins, motor vehicles, fruits and mineral fuels a nd mineral oils. Imports fro m Other Europe consist 
mostly of raw materials, in termediate goods and energy.  
179. On the other hand, The Commonwealth of Indepe ndent States (CIS), besides its cultural ties 
with Turkey, plays an important role  in Turkey’s foreign policy as we ll as in its external trade and 
economic strategies. The trade volume reached US$41.9 billion in 2010 with 35% increase compared to the year 2006. As of September 2011, Turkey’s  trade volume with these countries has been 
US$33.5 billion. 
180. As of 2010, trade volume with Russian Federation, the first country in the ranking of 
Turkey’s imports, totalled US$26.2 billion with a bilateral trade deficit of US$16.9 billion. 
181. Thanks to the successful policies followed sin ce 2006, the trade volume between Turkey and 
the Central Asian – Caucasian Republics attain ed US$10 billion in 2010 whereas it totalled only 
US$4.8 billion in 2006.  
(iii) Asia-Pacific countries  
182. Today, almost 30% of the global trade moveme nts occur over Asia-Pacific countries. In 2009, 
despite the global crisis, the world trade volume w as realized as US$25 billion and US$8 billion of 
this trade, which correspond to the 32% of the to tal, belonged to Asia-Pacific region. Considering 
these promising indicators, in order to facilitate tr ade and economic relations with the region, a trade 
                                                      
6 See Annexed Table 5-B: Exports by Country Groups and 5-C: Imports by Country Groups.  WT/TPR/G/259 Trade Policy Review 
Page 34 
  
  development strategy was put into action by Turkey  in 2005. By this strategy, a solid trade and 
investment infrastructure and an in crease in the interaction with t hose growing markets are expected 
to be established.  
183. Before the implementation of the regional strate gy, in 2004, the total trade volume between 
Turkey and Asia Pacific countries were realized as US$17 billion. In 2010 the trade volume reached 
to US$44.4 billion with an increase of 162% compared to 2004. Turkey’s exports to the Asia-Pacific 
countries were US$2 billion in 2004 and it increased to  US$6.6 billion in 2010. This statement refers 
to the point that, exports of Turkey to the region has gained at least 20% increase almost every year 
from 2004 to 2010. Between 2005 and 2010 the share of Asia-Pacific countries  in Turkish exports 
climbed from 3.3% to 5.7%. Imports from Asia-P acific countries have reached to US$37.8 billion 
in 2010 with an increase of 152% compared to the volume of US$15 billion in 2004. As of 
September 2011, Turkey’s trade volume with  these countries has been US$47.8 billion, 
US$7.5 billion of this is Turkey’s exports and US $40.3 of it is Turkey’s imports. In 2010, the first 
five countries in Turkey’s exports to Asia-Pacific re gion were China, India, Singapore, Australia and 
South Korea whereas China, South Korea, India, Japan  and Taiwan were the leading five suppliers in 
Turkey’s imports from the region.  
(iv) Middle East  
184. Over the last decade, the Middle East countri es have become a crucial country group within 
the scope of Turkey’s trade strategy. As a result of the steady increase in both imports and exports after 2003, Turkey’s total trade volume with the re gion has increased from US$9.5 billion in 2003 to 
US$35.9 billion in 2010. The increase in trad e volume between 2006 and 2010 is 80%. As of 
September 2011, Turkey’s trade volume with these countries has been US$35.7 billion, US$20.2 billion of this is Turkey’s exports  and US$15.5 of it is Turkey’s imports. 
185. For five years since 2006, export of Turkish goods to this region has exceeded imports. 
However, trade surplus has gra dually decreased from US$8 billion in  2009 to US$6 billion in 2010. 
The foremost reason of this decline is the increase in oil and natural gas imports. Exports of Turkey to 
the region totaled US$21 billion (18.4% of the total export of Turkey) in 2010. 
(v) Africa 
186. Having a 5.2% share in Turkey’s total trade in 2010, African countries have gained particular 
significance in trade figures of Turkey starting especi ally with the contribution of African Countries 
Strategy in 2003. The results obtained so far in te rms of the development of trade seem to be much 
promising. The total trade volume augmented to US$15.7 billion in 2010 
with 31% cumulative 
increase between 2006 and 2010. Of the total trade with Africa, 67.1% of imports and 75.7% of 
exports in 2010 were realized with five North A frican countries, namely, Morocco, Algeria, Tunisia, 
Libya and Egypt. In the first three quarters of  2011, Turkey’s trade volume with Africa reached 
US$12.6 billion. 
(vi) Americas 
187. Turkey’s trade with the Amer icas approached US$23 billion in 2010. As of September 2011, 
trade volume has already exceeded 2010 level and has been realized as US$23.2 billion. Of the total 
trade volume with this group in 2010, 70.3% was re alized only with the USA. Turkish exports to the 
USA declined to US$3.76 billion in 2010, with a sh are of 3.3% in Turkey’s total exports. Having 
almost US$2 billion trade volume with Brazil and US $1.4 billion with Canada are the other biggest Turkey WT/TPR/G/259 
 Page 35 
 
 
  trading partners of Turkey in the Americas. In 2010, Turkey’s exports to Brazil reached 
US$614.6 million, while imports from Brazil amounted to US$1,347.5 million. In the same year, Turkey’s exports to Canada were US$479.5 million,  while imports from this country amounted to 
US$915.3 million. 
188. In 2009, Turkey and the USA decided to ra ise the U.S.-Turkish bilateral economic 
partnership to the strategic level. As follow up to  this commitment, a senior level U.S.-Turkish 
consultative body was set up and the new process named as the "Framework for Strategic Economic 
and Commercial Cooperation" (FSECC). Since, str ong involvement of the private sector in both 
countries is critical to increasing bilateral trade and investment, a joint U.S.-Turkish, public-private 
Business Council was also created.  
189. On the other hand, The Latin American and the Caribbean countries with strong economic 
capacity and trade potentials are among the priority re gions with whom Turkey wishes to increase its 
trade. Due to the success of polic ies followed since 2006, in 2010, Turkey’s export to Latin America 
and the Caribbean region reached to US$1.8 billion, and its import from these countries approached to 
US$3.6 billion. Turkey aims to sustain the increasi ng trend of its trade volume to the region and to 
MERCOSUR in particular. This aim is to be co mplemented by prospec tive FTAs with MERCOSUR, 
Andean and Central American Countries in addition to the existing one with Chile. 
(2) T
RADE DEVELOPMENTS BY REGIONAL ORGANIZATIONS  
(i) Economic Cooperation Organization (ECO)7 
190. Turkey’s trade volume with the Economic Cooperation Organization (ECO) region reached 
US$20.9 billion by 2010, resulting in US$5.6 billion de ficit. The value of Turkish exports to this 
region in 2010 reached US$7.6 billion, which repr esents a share of 6.7% in total exports. As 
of September 2011, Turkey’s trade volume with ECO countries has been US$20.2 billion, US$6.8 billion of which has been Turkey’s e xports whereas US$17.4 billion has been Turkey’s 
imports. Once the ECO Trade Agreement (ECOTA) beco mes fully operational, it is expected that the 
steady increase in Turkish exports to the region w ill gain further momentum. ECOTA will also bring 
about deepening trade relations among ECO member countries.  
(ii) Black Sea Economic Cooperation (BSEC)
8 
191. As for the Black Sea Economic Cooperation (BSEC), Turkey’s trade with the region 
accelerated at spectacular rates in each year over th e past four years. Having nearly 16 % share in 
Turkey’s total trade volume, in 2010, the proportion of imports in the total trade volume with the 
BSEC countries was nearly 70% causing more than US$19.1 billion deficits. The value of Turkish 
exports to the BSEC region in 2010 reached US$14.5 billion (12.7% in total exports). As 
of September 2011, Turkey’s expor ts to BSEC countries has been US$12.9 billion and its imports has 
been US$28.2 billion. 
                                                      
7 Members of the ECO are: Afghanistan, Azerbaij an, Iran, Kazakhstan, Kyrg yz Republic, Pakistan, 
Tajikistan, Turkmenistan and Uzbekistan alongside Turkey. 
8 Members of the BSEC are: Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Hellenic Republic, 
Republic of Moldova, Romania, Russian Federation, Serbia, and Ukraine alongside Turkey. WT/TPR/G/259 Trade Policy Review 
Page 36 
  
  (iii) Organization of Islamic Conference (OIC)9 
192. Turkey is a founding member of the Organiza tion of Islamic Conference (OIC). In 2010, 
while Turkey’s exports to OIC countries reache d US$32.5 billion with a 13.6% annual increase, its 
imports from those countries showed a remarkable  increase by 55.8% and reached US$27.9 billion 
mostly due to recovery of world economy in 2010.  As of September 2011, Turkey’s exports to OIC 
countries have been US$27 billion and its imports have been US$24.1 b illion. Overall, the legal basis 
of the Trade Preferential System among the OI C countries (TPS-OIC) has been completed by 
9 August 2011. TPS-OIC is expected to become fully operational once 10 OIC members which have 
completed the signature and ratification of three legal instruments of the Agreement, submit their 
tariff concessions lists. Fully operational TPS-OIC will have positive effects on Turkey’s trade 
volume with these countries. 
(iv) Developing 8 (D-8)10  
193. Trade volume with Developing 8 (D-8) countries surged to US$19.8 billion in 2010 by 48.3% 
annual increase. While Turkey’s exports to the me mber countries reached to US$6.4 billion with a 
15.4% annual increase, imports from those countri es reached US$13.4 billion with a considerable 
increase (72%) mainly due to a huge jump of impor ts from Iran. Preferential Trade Agreement (PTA) 
legally entered into force on 25 August 2011 betwee n Turkey, Malaysia, Iran and Nigeria, members 
which completed internal ratification process. D-8 PTA  is expected to be fully operational after the 
completion of the exchange of tariff concessions lists. Once the PTA becomes full operational, it is 
expected that these developments will further stimul ate Turkey’s trade with D-8 countries.       
(3) TRADE DEVELOPMENTS BY SECTORS11  
194. Sectoral composition of Turkey’s exports h as been changing towards more capital and 
technology intensive products in accordance with the developments in global tr ends in world trade. 
The share of medium and high-tech products in Tu rkish exports moved up from 28.9% with a value of 
US$25 billion in 2006 to 29.8% with a value of US$34 billion in 2010, increasing by 37%.  
195. In the period between 2006 and 2010, with the exception of 2009 during which the negative 
impacts of the global economic crisis were heavily  felt, imports also increased significantly due to 
various reasons. First of all, the economic growth  fed the need for intermediary and capital goods. 
Also, energy prices rose dramatically pushing the cost of energy imports up in the world. US$46 billion of the rise in imports between 2006 a nd 2010 is due to intermediary and capital goods 
and US$9.6 billion of this increase is completely a ttributable to fuels and oil. Meanwhile, energy 
imports increased from US$28.9 billion to US$38.5 billi on and constituted more than one fifth of total 
imports in 2010. In 2010, 15.5% of imports were  capital goods, 70.8% were intermediary goods and 
13.3% were consumption goods. Due to the import dependency in industrial production, growth in 
                                                      
9 Members of the OIC are: Afghanistan, Albania, Algeria, Azerbaijan, Bahrain, Bangladesh, Benin, 
Brunei, Burkina Faso, Cameroon, Chad, Comoros, Cote  D’Ivoire, Djibouti, Egypt, Gabon, Gambia, Guinea, 
Guinea-Bissau, Guyana, Indonesia, Iran, Iraq, Jordan, Kazakhstan, Kuwait, Kyrgyz Republic, Lebanon, Libya, Malaysia, Maldives, Mali, Mauritania, Morocco, Mozamb ique, Niger, Nigeria, Oman, Pakistan, Palestine, 
Qatar, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Suriname, Syria, Tajikistan, Togo, Tunisia, 
Turkmenistan, Uganda, United Arab Emirates , Uzbekistan and Yemen alongside Turkey. 
10 Members of the D-8 are: Bangladesh, Egypt, In donesia, Iran, Malaysia, Nigeria, Pakistan and 
Turkey. 
11 See Annexed Table 5-D: Exports by SITC  and  5-E: Imports by SITC. Turkey WT/TPR/G/259 
 Page 37 
 
 
  production triggers growth in im ports. In 2010, intermediary, cons umption and capital goods marked 
32.1%, 28.2% and 34.3% annual increases, respectively.   
196. The value of "machinery and transport equipment"  export, a product group dominated by high 
value added and high-tech products, in 2010 reach ed US$31.8 billion, which represents a share of 
28% in total exports. Particularly the "automotive i ndustry products" played the most significant role 
in increasing the share of this relatively high cap ital-intensive product grou p in Turkey’s exports. 
Although exports of "automotive products" and "el ectrical machinery" dropped by 33% and 12% 
in 2009 due to the global economic crisis, the trend has been quite contrary in 2010. Our exports in 
these product groups grew by annual 14.8%  and 15.3% respectively in 2010. 
197. The total share of "automotive industry produc ts", "office machines and telecommunications 
equipment" and "chemicals" increased 17.3% in 2010 after the gl obal economic crisis. Clothing, 
automotive products, iron and steel are the products with  the largest weight in the exports of industrial 
products. The shares of these sectors in expor ts were 11.2%, 12.1% and 8.9% in 2010.  
198. The Turkish apparel sector is one of the mo st critical sectors in Turkey in terms of 
contribution to GDP, employment generation and net exports. Currently, the Turkish textile and 
clothing industry focuses on value added products . The local clothing industry emphasizes on new 
designs and fashion collections for the top e nd international apparel market. Furthermore, İstanbul 
Fashion Week is getting increasingly more attractive for the fashion world and it is Turkey’s aim to 
make İstanbul one of the top five fashion centers of the world as of 2023. 
(4) TRADE IN FREE ZONES  
199. Turkey has 19 free zones, which provide incen tives for companies operating within them. The 
aim is to promote foreign direct investment and jo int-ventures in export-oriented enterprises, provide 
easy access to imported raw materials and equi pment on favourable terms, and to increase 
employment.  
200. A mix of government and private partnership (oft en realized within the framework of "build, 
operate, transfer" schemes) is being utilized for th e foundation and operation of the free zones. Office 
space, workshops and warehouses are made available for rent on attractive terms, but investors can 
also construct their own premises in the free zones.  
201. High-technology products, leather goods, and st orage facilities are among a wide range of 
areas that enterprises established in the free zones ar e active in. According to Article 10 of the Free 
Zones Regulation, all types of industrial, commerc ial and service operations  deemed appropriate by 
the Supreme Planning Board may be conducted in the free zones.  
202. In 2010, a total of US$18.6 billion trade was rea lized in free zones, the distribution of which 
is US$5.3 billion from free zones to the domestic  market, US$4.4 billion from free zones to other 
countries, US$2.3 billion from domestic market to  free zones and US$6.6 billion from other countries 
to free zones.  
IV. FUTURE ECONOMIC AND TRADE POLICY GOALS 
203. Starting in October 2009, a strategy has been pr epared to develop the infrastructure necessary 
for Turkey to become one of the top 10 economies in the world. Thus, Turkey aims to achieve 
US$500 billion of exports by 2023 which is the centenary of Turkish Republic. Following the WT/TPR/G/259 Trade Policy Review 
Page 38 
  
  successful implementation of Three Year (2007-09 ) Export Strategy Plan, Turkey’s 2023 Export 
Strategy Project (2023 ESP) has been prepared in order to increase its curr ent and potential market 
share in total world export through providing vision and leadership to the exporters in the field of 
science, technology and innovation. The long term po licy objective of the 2 023 ESP is to transform 
Turkey’s export composition from low-tech to high-tech products. 
204. In accordance with this export-oriented pr oduction strategy, the legal and intellectual 
infrastructure has been prepared in 2010, and the aim for 2011-2013 is to enable the necessary 
technological transformation. 2014-2023 is de termined as the implementation period.  
205. Within the framework of the strategy, the ta rget markets and sectors for exports will be 
further diversified, the number of exporters will be increased, and raw-mate rial necessary for exports 
will be produced in Turkey to the extent possibl e. Turkey will follow a pro-active policy in both 
goods and services exports.  Ensuring the sustainable gr owth of exports is the main target of this 
strategy since exports are the main locomotive of the economic growth in Turkey. With sustainable 
growth in the economy, unemployment rate is exp ected to decrease, gaps between the regions be 
closed and the competitive power of Turkish industries be increased.  
206. The targeted export levels for lead sectors a nd sub-sectors have been determined with this 
strategy in order to be able to have an expor t volume of US$500 billion by 2023. This means that 
Turkey targets to get a share of 1.2% by 2013, 1.3% by 2018, and 1.5% by 2023 from world trade.  
207. In the process of meeting these targets Turkey, which is the 17th largest economy in the world 
as of 2010, aims to become the 15th largest economy in the world in 2013, 12th in 2018 and 
10th in 2023.  
208. Finally, it should be noted that, concluding th e Doha Development Agenda Negotiations with 
its potential to deliver substantial new trade opportu nities would facilitate to achieve this goal.  
209. With this in mind, Turkey will continue to work constructively in the DDA throughout 
2012 and onwards. Turkey WT/TPR/G/259 
 Page 39 
 
 
  APPENDIX TABLES 
 
 
Table 1 
FDI inflows and their distribution by components between 2000-10 
(US$ million) 
 2000-05 2006 2007 2008 2009 2010 
Foreign direct investment (net)  16,100  19,261 19,941 16,955 6,858 7,816 
Foreign direct capital 19,934 20,185 22,047 19,504 8,411 9,280 
Capital (net) 14,814 16,982 18,394 14,712 6,170 6,477 
Inflow 16,073 17,639 19,137 14,747 6,252 6,512 
Outflow -1,259 -657 -743 -35 -82 -35 
Other capital 938 281 727 1,855 459 309 
      Real estate (net) 4,182 2,922 2,926 2,937 1,782 2,494 
 
 
Table 2 
The number of companies established with foreign capital 
Year Number of companies 
1954-2000 (cumulative) 4,588 
2001 477 
2002 495 
2003 1,105 
2004 2,095 
2005 2,845 
2006 3,350 
2007 3,304 
2008 3,171 
2009 2,936 
2010 3,344 
Total number 25,948 
 
 
2297941,28312,490
8,09610,555
6,259
2,2753,085
291
02,0004,0006,0008,00010,00012,00014,000
1985-1994
average1995-2003
average2004 2005 * 2006 2007 2008 2009 2010 2011US$ millionTable 3
Privatization implementations by years
Note: (*) The Transfer of Operating Rights (TOR) of Ataturk Airport  for 15.5 years in 2005 (USD 3 billion), Antalya Airport for 17 ye ars in 2007 
(USD 3.1 billion), Sabiha Gökçen Airport for 20 years in 2007 (USD 3 billion), TOR of İstanbul Sea Bus Co. and the Initial Public Offering 
(IPO) of Vak ıflar Bank’s 25.18% share in 2005 (USD 1.3 billion), are included.  
 WT/TPR/G/259 Trade Policy Review 
Page 40 
  
   
Table 4 
Significant privatization implementa tions between 2008 - 30 September 2010 
Name of the 
privatized 
companies (2008-2009)  Area of activity  Date of 
privatization  Total (notional) 
market value of the 
company on the 
basis of its 
privatization price 
(million US$)  Percentage of 
equity sold to 
the new 
controlling 
investor (%)  Percentage 
of equity 
issued on or 
already in 
the stock 
market (%)  Percentage 
of the equity 
still owned 
by the 
Government
(%) 
Turk Telekom  Telecommunications 2008 1,911 IPO 15 40 
Petkim Holding Petrochemicals 2008 2,040 51 49 - 
ADUAS Electricity 
Production 2008 510 100 - - 
Tekel Tobacco 2008 1,720 100- - - 
Baskent El. 
Distribution Electricity 
Distribution 2009 1,225 100 - - 
Sakarya El. 
Distribution Electricity 
Distribution 2009 600 100 - - 
Meram El. 
Distribution Electricity 
Distribution 2009 440 100   
Samsun Port Shipping 2010 125.2 TOR - - 
Band ırma Port Shipping 2010 175.5 TOR - - 
Osmangazi Elec. 
Dist. Electricity 
Distribution 2010 485 100 - - 
Uludağ Elec. 
Dist. Electricity 
Distribution 2010 940 100 - - 
Çaml ıbel Elec. 
Dist. Electricity 
Distribution 2010 258.5 100 - - 
Çoruh Elec. 
Dist. Electricity 
Distribution 2010 227 100   
 
 
 Table 5-A 
Foreign trade by years  
(Value 000 $) 
Year Exports Imports Balance Volume of trade Imports covered 
by exports 
Value  Change 
(%) Value  Change 
(%) Value  Change 
(%) Value  Change 
(%) (%) 
2006 85,534,676 16.4 139,576,174 19.5 -54,041,499 24.8 225.,110,850 18.3 61.3 
2007 107,271,750 25.4 170,062,715 21.8 -62,790,965 16.2 277,334,464 23.2 63.1 
2008 132,027,196 23.1 201,963,574 18.8 -69,936,378 11.4 333,990,770 20.4 65.4 
2009 102,142,613 -22.6 140,928,421 -30.2 -38,785,809 -44.5 243,071,034 -27.2 72.5 
2010 113,883,219 11.5 185,544,332 31.7 -71,661,113 84.8 299,427,551 23.2 61.4 
 
 Turkey WT/TPR/G/259 
 Page 41 
 
 
  Table 5-B  
Exports by country groups 
(Value 000 $) 
  2006 2007 2008 2009 2010 
Total  85,534,676 107,271,750 132,027,196 102,142,613 113,883,219 
            
A-EU COUNTRIES (27)  47,934,746 60,398,502 63,390,419 47,013,415 52,685,304 
B-FREE ZONES IN TURKEY  2,967,219 2,942,876 3,008,061 1,957,066 2,083,788 
C-OTHER COUNTRIES  34,632,711 43,930,087 65,622,092 53,172,132 59,114,127 
   1-Other European Countries  7,961,672 10,842,681 15,678,083 11,317,994 11,373,372 
   2-North African Countries  3,096,665 4,029,683 5,850,262 7,415,776 7,025,168 
   3-Other African Countries  1,469,127 1,946,661 3,212,341 2,738,866 2,257,898 
   4-North American Countries  5,439,399 4,540,601 4,801,535 3,578,829 4,242,435 
   5-Central America and Caribbean   548,451  548,835  828,687  621,826  597,975 
   6-South America Countries   340,598  513,719  901,401  677,599 1,237,356 
   7-Near and Middle Eastern  11,315,751 15,081,322 25,430,395 19,192,808 23,294,873 
   8-Other Asian Countries  3,941,556 5,227,250 7,074,123 6,705,544 8,580,833 
   9-Australia and New Zealand   327,020  342,812  435,326  361,640  402,591 
  10-Other Countries   192,474  856,524 1,416,562  561,251  101,627 
            
Selected country groups           
 OECD Countries  54,480,970 65,674,811 70,471,749 55,832,408 61,491,606 
 EFTA Countries  1,189,267 1,327,977 3,261,728 4,335,560 2,416,381 
Organization of Black Sea Economic Co-operation  11,583,697 16,784,102 20,867,277 12,272,591 14,456,173 
Organization for Economic Co-operation  3,340,996 4,700,072 6,247,706 5,948,111   7,617,077 
 New Independent States  6,992,529 10,088,336 13,938,226 7,957,492   10,288,272 
Turkish Republics  1,981,603 2,874,467 3,749,451 3,399,485   3,921,072 
Organization of Islamic Conference  15,007,499 20,310,574 32,596,965 28,626,586   32,469,556 
Asia-Pacific Countries  3,013,944  3,846,208  5,535,084  5,045,113  6,558,584 
Middle East Countries  10,212,502  13,387,571  22,765,082  17,042,483  20,975,107 
Africa  4,564,707  5,976,110  9,062,590  10,179,965  9,283,024 
Neighbouring and Surrounding Countries  29,380,904  40,381,302  56,648,561  42,979,736  49,120,660 
 D-8  2,225,732  2,953,763  4,343,981  5,589,255  6,438,640 
 
 Table 5-C Imports by country groups  
(Value 000 $) 
  2006 2007 2008 2009 2010
Total   139,576,174   
170,062,715   
201,963,574   
140,928,421  
185,544,332
           
A-EU COUNTRIES (27)   59,400,922   68,611,562   74,802, 380   56,587,647    72,243,512
B-FREE ZONES IN TURKEY    944,142   1,223,729   1,334,250    965,287     878,447
C-OTHER COUNTRIES   79,231,111 100,227,423 125,826,945   83,375,488  112,422,373
   1-Other European Countries   25,695,361   34,253,510   44,196,490   25,886,494    30,312,449
   2-North African Countries   4,878,401   3,616,397   5,267,239   3,541,963    4,305,729
   3-Other African Countries   2,526,126   3,167,700   2,503,214   2,158,010    2,107,927
   4-North American Countries   6,935,690   9,032,926   13,404,016   9,513,149    13,234,069
Table 5-C (cont'd)WT/TPR/G/259 Trade Policy Review 
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    2006 2007 2008 2009 2010
   5-Central America and Caribbean    334,966    448,291    560,444    475,745     622,763
   6-South America Countries   2,130,616   2,671,179   3,259,762   2,286,192    2,942,329
   7-Near and Middle Eastern   10,568,063   12,641,279   17,627,603   9,595,220    16,091,252
   8-Other Asian Countries   25,657,979   33,658,278   38,087,261   29,138,197    41,421,873
   9-Australia and New Zealand    398,688    671,742    876,169    647,843     493,033
  10-Other Countries    105,221    66,122    44,747    132,675     890,948
           
Selected country groups          
 OECD Countries   77, 812,573   91,856,829   102,901,962   75,143,524    99,378,587
 EFTA Countries   4,522,434   5,774,587   6,217,519   2,780,569    4,002,407
Organization of Black Sea Economic 
Cooperation   27,021,455   34,808,872   45,632,225   28,299,103    33,592,312
Organization for Economic Co-operation   8,101,662   9,972,107   13,220,660   7,010,888    13,298,439
 New Independent States   23,372,924   31,262,659   42,613,879   26,044,568    30,599,779
Turkish Republics   1,967,429   2,669,249   4,278,503   2,873,767    4,614,713
Organization of Islamic Conference   19,110,794   21,524,428   29,178,544   17,969,867    27,949,043
Asia-Pacific Countries  24,311,765  31,851,317  35,466,523  27,561,662  37,881,747
Middle East Countries  9,882,728  12,022,007  16,172,653  8,555,903  14,932,769
Africa  7,404,523  6,784,092  7,770,443  5,699,967  6,413,592
Neighbouring and Surrounding 
Countries  45,823,039  55,728,240  73,531,501  45,394,550  60,752,117
 D-8  8,912,940  11,179,601  13,619,621  7,773,834  13,369,328
 
 
Table 5-D Exports by SITC, Rev.3  
(Value 000 $) 
 2006 2007 2008 2009 2010 
Total 85,534,676 107,271,750 132,027,196 102,142,613 113,883,219 
1- Agricultural products 8,633,253 9,769,025 11,473,866 11,189,510 12,663,950 
i- Food 7,931,559 9,007,165 10,705,380 10,581,837 11,868,544 
(0) Food and live animals 6,594,517 7,821,739 9,155,020 9,125,955 10,498,628 
(00) Live animals 8,515 7,078 12,922 24,366 7,322 
(04) Cereals and cereal preparations 876,054 1,036,754 1,385,466 1,481,627 1,782,194 
(05) Fruits and vegetables 4,260,922 4,901,711 5,308,045 5,353,787 6,152,501 
(06) Sugar, sugar preparations and honey 282,690 304,116 352,240 301,242 395,561 
(08) Feeding stuff for animals 10,361 12,400 68,181 74,809 31,141 
(01, 02, 03, 07, 08, 09) Others 1,155,975 1,559,680 2,028,166 1,890,123 2,129,909 
(1) Beverages and tobacco 819,962 804,555 890,691 933,390 898,053 
(11) Beverages 135,072 160,756 186,142 175,891 201,026 
(12) Tobacco and tobacco manufactures 68 4,890 643,799 704,5 50 757,499 697,027 
(4) Animal and vegetable oils, fats and waxes 437,581 290,073 570,268 427,121 345,917 
(22) Oil seeds and oleaginous fruits 79,498 90,799 89,400 95,371 125,946 
ii-Agricultural raw materials 701,694 761,859 768,486 607,673 795,406 
(21) Hides, skins and furskins, raw 18,912 16,407 10,702 6,034 5,496 
(23) Crude rubber (including synthetic, reclaimed) 13,248 15,272 30,861 20,622 35,215 
(24) Cork and wood 28,841 32,914 30,617 37,433 41,331 
(25) Pulp and waste paper 1,191 1,470 7,407 5,745 14,612 
(26) Textile fibres (other than wool tops) and their wastes 540,787 587,569 571,334 423,381 566,391 
(29) Crude animal and vegetable materials, n.e.s. 98,715 108,227 117,565 114,458 132,362 
Table 5-D (cont'd) Turkey WT/TPR/G/259 
 Page 43 
 
 
   2006 2007 2008 2009 2010 
2-Mining products 6,511,296 9,004,524 12,089,010 7,152,921 9,569,916 
i-(27, 28) Metalliferous ores and metal scrap 1,497,428 2,078,264 2,462,893 1,853,884 2,948,914 
ii-Minerals fuels, lubricants and related materials (3) 3,566,212 5,147,843 7,531,525 3,921,178 4,469,433 
(32) Coal, coke and briquettes 2,605 12,688 32,397 1,883 6,999 
(33) Petroleum, petroleum products and related materials 3,260,126 4,836,171 7,167,113 3,577,867 4,026,263 
(34) Gas, natural and manufactured 179,910 130,180 258,716 201,746 255,033 
(35) Electric current 123,570 168,804 73,300 139,681 181,138 
ii-Non-ferrous metals (68) 1,447,656 1,778,416 2,094,592 1,377,859 2,151,569 
3-Manufactures 69,325,372 87,007,336 104,255,769 78,563,009 89,126,928 
i-Iron and steel (67) 7,239,269 9,585,832 16,841,632 9,081,057 10,199,467 
ii-Chemicals 3,923,133 4,739,369 6,121,809 5,292,959 6,805,800 
(57, 58) Plastics 1,443,695 1,861,901 2,365,570 1,983,395 2,428,061 
(54) Pharmaceutical products 354,4 83 401,930 469,238 473,244 610,563 
(51, 52, 53, 55, 56, 59) Other chemicals 2,124,956 2,475,538 3,287,000 2,836,319 3,767,175 
iii-Other semi-manufactures 7,583,234 9,668,565 12,252,185 10,407,674 11,860,865 
(61) Leather, leather manufactures, n.e.s. and dressed 144,311 164,865 150,821 116,315 159,183 
(62) Rubber manufactures, n.e.s. 1,178,082 1,572,399 1,775,168 1,445,985 1,858,178 
(63) Cork and wood manufactures (excluding furniture) 307,076 423,327 504,725 473,051 532,202 
(64) Paper, paperboard and articles of paper pulp, of paper 600,235 823,662 1,035,584 965,291 1,169,250 
(66) Non-metallic mineral manufactures, n.e.s. 2,477,208 3,064,214 3,987,814 3,512,343 3,708,419 
(661) Lime, cement and fabricated construction 1,219,328 1,499,721 2,121,734 1,990,215 2,001,440 
(664, 665) Glass and glassware 631,242 781,060 959,718 796,966 854,824 
(66- (661+664+665)) Others 626,638 783,433 906,362 725,162 852,154 
(69) Manufactures of metals, n.e.s. 2,876,323 3,620,098 4,798,073 3,894,689 4,433,634 
iv-Machinery and transport equipment 26,385,878 34,250,969 39,147,395 28,788,981 31,811,230 
(781, 782, 783, 784, 7132, 7783) Automotive products 11,688,733 15,581,880 17,872,796 11,985,061 13,753,084 
(75, 76, 776) Office machines and telecommunications 3,165,320 2,870,741 2,399,886 2,011,498 2,074,348 
(71-713) Power generating machinery 666,511 848,917 1,020,095 652,073 685,975 
(72, 73, 74) Other non-electrical machinery 3,448,639 4,776,684 6,095,418 4,669,586 5,391,595 
(79, 785, 786, 7131, 7138, 7139) Other transport 2,990,445 4,057,944 4,698,483 3,282,191 2,773,827 
(77- (776+7783)) Electrical machinery and aparatus 4,426,230 6,114,803 7,060,785 6,188,572 7,132,401 
v- Textiles (65) 7,584,693 8,950,041 9,406,905 7,733,300 8,969,554 
vi- Clothing (84) 12,051,922 13,886,333 13,589,400 11,553,511 12,745,641 
(848.1, 848.3) Articles of appare ls, clothing accessories & other 386, 414 398,827 411,0 97 314,707 355,992 
(84- (848.1, 848.3)) Other cloting apparels 11,665,508 13,487,507 13,178,303 11,238,804 12,389,649 
vii-Other consumer goods (81, 82, 83, 85, 87, 88, 89 (-891)) 4,557,242 5,926,226 6,896,442 5,705,528 6,734,372 
(81) Prefabricated buldings; sanitary, plumbing, heating and  1,003,119 1,223,910 1,387,990 1,129,126 1,183,487 
(82) Furniture, bedding, mattress supports and cushions 788,154 1,067,523 1,367,084 1,180,728 1,393,205 
(83) Travel goods, handbags and similar containers 96,320 121,498 141,144 111,130 140,653 
(85) Footwear 237,069 316,740 344,890 289,473 395,624 
(87) Professional, scientific and controlling in struments 195 402 271,749 327,506 287,377 319,572 
(88, 89- (891)) Other manufactured articles 2,237,179 2,924,806 3,327,828 2,707,695 3,301,831 
4- Other products (9+891)  1,064,744 1,490,865 4,208,551 5,237,173 2,522,425 
 
 WT/TPR/G/259 Trade Policy Review 
Page 44 
  
  Table 5-E 
Imports by SITC, Rev.3 
(Value 000 $) 
 2006 2007 2008 2009 2010 
Total 139,576,174 170,062,715 201,963,574 140,928,421 185,544,332 
1- Agricultural products 7,286,159 9,812,753 13,037,582 9,630,588 12,879,646 
i- Food 3,486,191 5,167,474 8,502,792 6,107,516 7,412,723 
(0) Food and live animals 1,729,774 3,083,604 5,024,155 3,591,494 4,504,882 
(00) Live animals 15,546 23,921 41,448 33,664 333,080 
(04) Cereals and cereal preparations 211,783 1,023,694 2,207,585 1,284,854 1,169,797 
(05) Fruits and vegetables 347,838 456,384 805,763 673,110 757,297 
(06) Sugar, sugar preparations and honey 40,361 57,186 92,129 56,751 52,891 
(08) Feeding stuff for animals 316,518 550,234 772,975 556,398 741,318 
(01, 02, 03, 07, 08, 09) Others 797,728 972,186 1,104,256 986,717 1,450,499 
(1) Beverages and tobacco 295,909 353,112 456,269 479,296 450,007 
(11) Beverages 39,647 50,986 64,575 79,172 81,733 
(12) Tobacco and tobacco manufactures 25 6,263 302,125 391,6 94 400,124 368,274 
(4) Animal and vegetable oils, fats and waxes 932,701 828,962 1,702,286 1,122,449 1,047,127 
(22) Oil seeds and oleaginous fruits 527,806 901,797 1,320,081 914,277 1,410,707 
ii-Agricultural raw materials 3,799,969 4,645,279 4,534,790 3,523,072 5,466,923 
(21) Hides, skins and furskins, raw 336,802 327,346 236,213 123,258 225,910 
(23) Crude rubber (including synthetic, reclaimed) 614,554 723,491 945,314 568,753 1,016,126 
(24) Cork and wood 475,729 540,392 548,540 359,767 462,119 
(25) Pulp and waste paper 346,338 411,184 472,991 342,629 544,956 
(26) Textile fibres (other than wool tops) and their wastes 1,835,552 2,421,004 2,074,340 1,895,158 2,948,806 
(29) Crude animal and vegetable materials, n.e.s. 190,993 221,862 257,390 233,507 269,006 
2-Mining products 38,601,438 46,932,435 65,011,388 39,334,811 53,353,881 
i-(27, 28) Metalliferous ores and metal scrap 4,863,067 6,693,117 10,344,582 5,498,747 8,516,922 
ii-Minerals fuels, lubricants and related materials (3) 28,858,774 33,882,782 48,280,963 29,905,148 38,496,980 
(32) Coal, coke and briquettes 2,054,506 2,665,445 3,411,773 3,113,386 3,280,316 
(33) Petroleum, petroleum products and related materials 16,608,314 19,339,366 27,034 429 15,171,831 21,037,562 
(34) Gas, natural and manufactured 10,177,750 11,856,452 17,819,273 11,602,685 14,158,646 
(35) Electric current 18,204 21,519 15,488 17,245 20,455 
ii-Non-ferrous metals (68) 4,879,598 6,356,537 6,385,842 3,930,916 6,339,979 
3-Manufactures 89,253,691 107,394,250 118,229,351 89,667,421 116,258,544 
i-Iron and steel (67) 8,140,677 11,341,045 15,033,712 7,680,338 9,720,695 
ii-Chemicals 18,407,548 22,106,761 25,541,690 20,265,674 25,446,320 
(57, 58) Plastics 6,221,473 7,870,109 8,485,949 6,246,789 8,871,694 
(54) Pharmaceutical product s 3,343,087 3,838,377 4,738 ,445 4,418,944  4,777,741 
(51, 52, 53, 55, 56, 59) Other chemicals 8,842,987 10,398,275 12,317,296 9,599,942 11,796,885 
iii-Other semi-manufactures 7,177,461 8,313,408 9,073,931 6,695,610 9,039,774 
(61) Leather, leather manufactures, n.e.s. and dressed 346,258 410,563 392,462 231,913 334,117 
(62) Rubber manufactures, n.e.s. 910,175 1,103,071 1,225,733 931,708 1,228,795 
(63) Cork and wood manufactures (excluding furniture) 464,867 624,904 617,662 377,089 642,710 
(64) Paper, paperboard and articles of paper pulp, of paper 2,011,897 2,285,628 2,409,405 2,019,978 2,618,615 
(66) Non-metallic mineral manufactures, n.e.s. 1,364,578 1,455,527 1,430,750 1,056,460 1,426,000 
(661) Lime, cement and fabricated construction 287,261 250,795 209, 144 173,013 205,678 
(664, 665) Glass and glassware 490,674 544,080 515,664 411,584 535,630 
(66- (661+664+665)) Others 586,643 660,651 705,943 471,863 684,691 
(69) Manufactures of metals, n.e.s. 2,079,687 2,433,716 2,997,919 2,078,463 2,789,538 
Table 5-E (cont'd) Turkey WT/TPR/G/259 
 Page 45 
 
 
   2006 2007 2008 2009 2010 
iv-Machinery and transport equipment 43,036,631 49,858,008 51,594,786 41,055,103 53,875,756 
(781, 782, 783, 784, 7132, 7783) Automotive products 12,917,414 14,683,563 15,154,913 10,507,093 15,461,965 
(75, 76, 776) Office machines and telecommunications 7,634,356 8,723,915 8,119,395 7,224,104 8,462,423 
(71-713) Power generating machinery 989,600 1,375,628 2,352,967 3,097,896 3,540,769 
(72, 73, 74) Other non-electrical machinery 12,841,462 15,262,601 14,769,596 10,308,840 13,151,924 
(79, 785, 786, 7131, 7138, 7139) Other transport 3,443,948 3,457,886 4,326,805 4,041,391 6,030,799 
(77- (776+7783)) Electrical machinery and aparatus 5,209,851 6,354,416 6,871,110 5,875,779 7,227,876 
v- Textiles (65) 4,686,040 6,152,229 5,801,498 4,879,692 6,701,821 
vi- Clothing (84) 1,097,719 1,566,561 2,216,248 2,147,857 2,835,239 
(848.1, 848.3) Articles of appare ls, clothing accessories & other 63, 211 71,083 123,088 135,959 138,791 
(84- (848.1, 848.3)) Other cloting apparels 1,034,508 1,495,478 2,093,160 2,011,898 2,696,448 
vii-Other consumer goods (81, 82, 83, 85, 87, 88, 89 (-891)) 6,707,615 8,056,237 8,967,486 6,943,147 8,638,939 
(81) Prefabricated buldings; sanitary, plumbing, heating and  523,069 567,549 644,595 406,601 560,156 
(82) Furniture, bedding, mattress supports and cushions 514,164 680,846 733,848 548,190 711,278 
(83) Travel goods, handbags and similar containers 296,367 390,640 405,626 222 699 264,748 
(85) Footwear 514,970 569,929 672,917 539,468 659,674 
(87) Professional, scientific and controlling instrume nts 1,800,485 2,099,733 2,406,629 1,985,453 2,453,476 
(88, 89- (891)) Other manufactured articles 3,058,560 3,747,540 4,103,871 3,240,736 3,989,607 
4- Other products (9+891)  4,434,885 5,923,276 5,685,254 2,295,602 3,052,262 
 
__________