Turkey
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Photo: Istanbul
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Table
of Contents
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Introduction: Turkey -- A
Bridge Between East and West
There are few countries in
the world that share Turkey's
geo-strategic position as a
bridge between east and west.
This makes Turkey one of the
most exciting trade centers in
the world, as it connects
Europe with the Caucuses, the
Commonwealth of Independent
States, the Middle East and
Central Asia.
Turkey's geo-strategic
position, coupled with a large
domestic market and a Customs
Union with the European Union
(EU), offers numerous
opportunities for American
firms. U.S. exports to Turkey
enjoy relatively lower tariffs
on manufactured imports
averaging less than 5 percent.
In addition, the average level
of duties between Turkey and
the EU and European Free Trade
Area (EFTA) has dropped to
zero. Consequently, an
increasing number of
businesses are attracted to
Turkey to take advantage of
duty-free access to the wider
European market. Today, the
U.S. is Turkey's fourth
largest trading partner.
Although approximately 45.5
percent of all imports into
Turkey originate from EU
countries, the U.S. exports to
Turkey totaled $2.9 billion in
2003. Reduced trade barriers
and increased trade between
Turkey and its neighbors
provide American exporters a
unique opportunity to use
Turkey as a springboard to
South East Europe, Eurasia and
beyond.
Turkey
at a glance
| Total
Area |
780,580 sq km
|
| Population |
68,893,918
(July 2004 estimate) |
| GDP |
$455.3 billion
(purchasing power
parity) (2003
estimate)
|
| Real
GDP Growth |
5%
(2003 estimate) |
| Inflation |
18.4%
(2003 estimate) |
| GDP
by sector |
agriculture
11.9%, industry 29.6%,
services 58.5% (2002
estimate) |
| Currency |
Turkish
Lira (TRL) |
| Exports-Commodities |
apparel,
foodstuffs, textiles,
metal manufactures,
transport equipment |
| Imports-Commodities |
machinery,
chemicals,
semi-finished goods,
fuels, transport
equipment |
| U.S.
exports to Turkey |
3,106,761,000
(2001), 3,106,642,000
(2002), 2,904,305,000
(2003) |
Source: CIA, U.S.
Commercial Service
| Item |
2000 |
2001 |
2002 |
2003 |
2004 |
| Product
Total |
23518048 |
17657818 |
16174546 |
20947119 |
44098987 |
| 336
Transportation
Equipment |
9148096 |
3687824 |
5543503 |
9180351 |
22828736 |
| 333
Machinery Manufactures |
1419177 |
5664036 |
2951922 |
4179779 |
8240285 |
| 325
Chemical Manufactures |
2312509 |
1847762 |
2574370 |
2808634 |
3710617 |
| 327
Non-Metallic Mineral
Mfgs. |
417002 |
122852 |
103558 |
189125 |
3140798 |
| 335
Elec. Eq.; Appliances
& Parts |
310978 |
4227310 |
907868 |
825398 |
1391348 |
| 334
Computers &
Electronic Prod. |
1243478 |
474131 |
567934 |
1079727 |
1220339 |
| 322
Paper Products |
282232 |
283438 |
303642 |
419918 |
961319 |
| 311
Processed Foods |
196037 |
247571 |
275456 |
573693 |
885132 |
| 339
Misc. Manufactures |
363556 |
278771 |
258024 |
358728 |
461466 |
| 331
Primary Metal
Manufactures |
4990474 |
319887 |
255257 |
157075 |
363346 |
| 332
Fabricated Metal
Products |
735585 |
120300 |
91041 |
685197 |
314946 |
| 316
Leather & Related
Products |
90879 |
0 |
0 |
0 |
145986 |
| 990
Spec. Classification
Provisions |
105709 |
77281 |
108774 |
82675 |
118244 |
| 326
Plastic & Rubber
Products |
142330 |
141242 |
1812883 |
245356 |
70956 |
| 324
Petroleum & Coal
Products |
36552 |
12034 |
36894 |
5085 |
65747 |
| 337
Furniture &
Related Products |
870519 |
57669 |
147022 |
30210 |
56245 |
| 323
Printing & Related
Products |
43178 |
29550 |
77345 |
42330 |
46065 |
| 314
Non-Apparel Textile
Products |
5000 |
4426 |
10181 |
25335 |
29169 |
| 313
Fabric Mill Products |
405810 |
8094 |
67018 |
41954 |
21777 |
| 321
Wood Products |
166353 |
0 |
0 |
9961 |
13234 |
| 315
Apparel Manufactures |
0 |
0 |
8810 |
6588 |
10604 |
| 111
Crop Production |
232594 |
53640 |
65125 |
0 |
2628 |
| 212
Mining |
0 |
0 |
0 |
0 |
0 |
| 312
Beverage & Tobacco
Products |
0 |
0 |
0 |
0 |
0 |
| 920
Used Merchandise |
0 |
0 |
7919 |
0 |
0 |
Best
Prospects for U.S. exporters
The current top five U.S.
exports to Turkey are
cotton/yarn/fabric, machinery,
aircraft, electrical
machinery, and medical
equipment. Best prospects for
U.S. exporters exist in the
following sectors:
Telecommunications Services
and Equipment
Natural Gas Transmission,
Distribution, Storage and
Trade
Automotive Parts/ Service
Equipment
Information Technology
Safety and Security Equipment
and Services
To learn more about your
sector's competitiveness in
Turkey, click
here.
To learn more about
Turkey's ICT sector, please
visit: http://www.emich.edu/ict_usa/TURKEY.htm
.
Find
Your Niche in Turkey
Turkey is moving away from
its traditional expertise in
textiles and apparel to more
technology intensive sectors.
The U.S. has maintained a
significant standing in Turkey
as one of its large trading
partners, and excellent
opportunities exist for U.S.
exporters interested in the
Turkish market.
Information technology
remains one of the leading
sectors offering excellent
opportunities for U.S. firms.
In 2003, Turkey boasted more
than four million Internet
users, a figure that is
estimated to increase to five
million in 2004. The
information technology market
in Turkey is growing, and
experts predict that more and
more small and medium-sized
enterprises in Turkey will
invest in information
technology. Turkey has also
grown into a natural crossing
point between European and
Middle Eastern information
technology businesses. For
example, Bilisim, an
Istanbul-based technology
fair, has become the
second-largest fair of its
kind in Europe, attracting
more than160,000 visitors in
2004.
There are three main areas
in the Turkish information
technology sector that promise
to be major growth areas in
the coming years: e-commerce,
educational hardware, and IT
infrastructure. U.S.
businesses are poised to take
the lead in the development of
these sectors and establish
competitive advantages that
will lead to expanding
activity in the Turkish
market. U.S. businesses will
have the rare opportunity to
"get in on the ground
floor" of the development
of Turkey's technological
resources. Programs like the
Basic Education Project, which
is funded by the World Bank
and aims to establish IT
classrooms in 3,000 schools
throughout the country, will
offer tremendous opportunities
to U.S. businesses in this
sector.
Opportunities also exist in
Turkey's energy sector as it
relates to the distribution of
gas; safety and security
equipment and services; and
building materials. The
Turkish Government's issuance
of licenses to private
operators for the distribution
of gas, and the planned
privatization of Turkey's
Electricity Production
Company's, EUAS, power plants
and electricity distribution
grids also offers interesting
prospects for foreign
companies. Likewise, the total
market for safety and security
equipment and services is
projected to grow by a healthy
25% annually over the next
several years, thus offering
good commercial opportunities
for U.S. exporters.
Doing
Business in Turkey
Under new laws, foreigners
can invest, engage in
commercial activities,
participate in partnerships,
purchase shares, open branch
offices, and establish liaison
offices in Turkey. Joint
ventures and licensing
arrangements are also common.
The U.S. Commercial Service
offices are ready to help
companies identify a suitable
method of entry into this
market.
• Marketing Your
Products
One of the most efficient
ways to enter the Turkish
market is through the
appointment of a qualified
local representative or
distributor. Although Istanbul
is the business and financial
capital of Turkey, significant
opportunities exist throughout
Turkey. Therefore it is
imperative to appoint
qualified agents either on a
regional basis or for certain
designated areas or cities.
Each year Turkey hosts many
international trade
promotional events, which
offer excellent opportunities
for the U.S. companies to
assess competition and promote
their products. In addition,
the U.S. Commercial Service
offices in Turkey are well
situated to help American
companies identify suitable
representatives through its
International Partner Search
Service.
Most government procurement
is done through the public
tender system. Personal
contacts also play an
important role in cultivating
new customers and cementing
ties with existing clients.
• Nuts and bolts
of getting your products into
Turkey
It is common for exporters
to initially introduce their
products into the Turkish
market through temporary
imports. Generally, product
samples are allowed temporary
duty-free entry into Turkey if
they have no commercial value
and are easily identifiable as
samples only. Customs
authorities are often rigid in
their interpretation of
regulations, therefore, it is
recommended to use an
experienced customs broker of
freight forwarder to prepare
the shipping documents. The
U.S. Commercial Service can
help your company navigate the
shipping process.
SME’s
are Welcome!
Small and medium-sized
companies (SMEs) in the U.S.
are well positioned to take
advantage of opportunities in
Turkey's increasingly liberal
economy. The U.S. Commercial
Service offices in Turkey are
ready to help ease SME's
entrance into the Turkish
market. Magnatone is one such
SME that succeeded in
penetrating the Turkish market
with CS Turkey's assistance.
In 2004, Magnatone, one of the
oldest existing manufacturers
of custom hearing aids,
contacted CS Turkey concerning
a bid to supply hearing aids
to Turkey's Ministry of
Health. Through a series of
counseling sessions, CS
Turkey's staff guided
Magnatone through Turkey's
public procurement law
followed by strong advocacy
support to ensure a
level-playing field. As a
result, Magnatone won the
contract from the Ministry of
Health to supply hearing aids
in Turkey.
Contact
Us Today!
The U.S. Department of
Commerce's offices in Ankara,
Istanbul and Izmir are working
hard to lay the foundation of
a strong US investment in
Turkey's technology sector.
The staff has conducted
research and established
contacts to facilitate the
entrance of more U.S. firms
into the Turkish market. U.S
companies are encouraged to
use the Commercial Service as
a point of contact as they
prepare to enter the Turkish
market. The experts from the
U.S. Commercial are ready to
advise US businesses about how
to do business in Turkey and
guide them through the process
of making contacts,
negotiating bureaucracy, and
establishing profitable and
sustainable business
interactions.
Ankara
U.S. Commercial Service
U.S. Embassy
Atatürk Bulvari No . 110
06100 Kavaklidere
Ankara , Turkey
Tel : [90] (312) 455 55
55/2467
Fax: [90] (312) 467 13 66
E-mail: Ankara.Office.Box@mail.doc.gov
Istanbul
U.S. Commercial Service
Istinye Mahallesi
Kaplicalar Mevkii No. 2
Istinye Istanbul
Turkey TR-34460
CS Istanbul direct telephone:
[90] (212) 335-9040
Consulate Switchboard: [90]
(212) 335-9000
CS Istanbul direct fax: [90]
(212) 335-9103
E-mail: Istanbul.Office.Box@
mail.doc.gov
Izmir
US Commercial Service
Izmir Chamber of Commerce
Atatürk Caddesi, No:126, 5th
floor
35210 Pasaport
Izmir, Turkey
Tel: [90] (232) 441 24 46
Fax: [90] (232) 489 02 67
E-mail: Izmir.Office.Box@
mail.doc.gov
Visit www.buyusa.gov/turkey/en
to learn more about our
services!
Date Updated: March 27, 2007
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