1. NORTH AMERICA AND GLOBAL ECONOMY TRADE REPORT ON TURKEY
Funda Celikaksoy
Said Diarra

3. COUNTRY PROFILE The population is approximately 70 million in 2003
The population growth rate is 1.53%
The life expectancy is 68.7 years
The age distribution is:
0-14 : 26.6%
15-64: 66.8%
65 +: 6.6%

4. COUNTRY PROFILE Politics: Turkey is a parliamentary democracy
The President is Ahmet Necdet Sezer and the Prime Minister is Recep Tayyip Erdogan
The President is elected by National Assembly for a seven year term
The Minister of Economy is Ali Babacan and the Minister of Industry and Trade is Ali Coskun

5. COUNTRY PROFILE Ethnic composition: Religion: Turks: 80% Kurds: 20%
Muslim : 99%
Christian and Jews : 1%

6. COUNTRY PROFILE GDP IN $US: 1999 2000 2001 2002 2003 6,135 6,730 6,046
$ US(per capita PPP)
6,135
6,730
6,046
6,448
6,718
GDP
Real growth rate
(%)
- 6.1
6.3
-9.5
7.9
5.9
GNP current prices (million $)
185,267
200,002
145,693
180,892
239,235
GNP per capita
2,879
2,965
2,123
2,598
3,383

7. Structure of the economy: GDP composition by sector (%)
COUNTRY PROFILE
Structure of the economy: GDP composition by sector (%)
1999
2000
2001
2002
2003
2004
Agriculture
16.0
15.4
12.8
13.0
13.4
24.3
Industry/
Manufacturing
19.0
20.0
21.1
19.7
18.5
15.3
Services
64.9
64.6
66.1
67.3
68.2
61.0

8. COUNTRY PROFILE Government finances:
The budget is constantly in deficit
The public debt ratio to GDP is 54.4%
The government expenditure is 39% of the GDP
The government revenue is 28% of the GDP
The public debt is 194,386,700 billion (TL) (194 billion $CAN)

9. COUNTRY PROFILE Goods balance Balance of Payment: Goods&service
(million dollars)
2000
2001
2002
2003
2004
Current Account
-9,819
3,390
-1,522
-8,037
-10,739
Goods balance
-21,959
-3,733
-7,283
-14,010
-18,772
Goods&service
-10,591
5,397
596
-3,505
-7,166
Goods&service& investment
-14,593
397
-3,958
-9,064
-11,658
Capital Account
9,584
-14,643
1,161
7,091
13,169
Balance
-2,997
-12,924
-212
4,097
4,587
Official Reserves
2,997
12,914
212
-4,097
4,584

10. Country Profile
Exchange rates : on March ; YTL/USD , YTL/EURO1.6690, YTL/CAD 1.020
Foreign Exchange Reserves: On Feb total reserves is US$ 38,433.4 million, foreign currency reserves are held mainly in US dollars
Net international investment position by latest data in 2003 is US$ –111,225 million
Gross External Debt: US$ 153,160 million
Foreign Debt to GDP ratio: 64%

11. COUNTRY PROFILE Global Ranking: Growth Competitiveness: 66th out of 80
Business Competitiveness : 52nd out of 80
Public Institutions: 63rd
Corruption sub index: 75th
Microeconomic Competitiveness: 54th out of 80
Human development index: 88th

12. COUNTRY PROFILE
International organizations: NATO, Council of Europe, UN, OECD, UNESCO, WHO, WTO, IMF, World Bank
Trade Agreements:
Customs Union with EU
EFTA
Euro-Mediterranean Partnership
Economic Cooperation Organization
Black Sea Economic Cooperation

13. COUNTRY PROFILE Bilateral relations with Canada:
Turkey is a valued commercial and strategic partner for Canada
They both share common membership in numerous international organizations (UN, G20, OECD)
Turkey is Canada’s second largest trading partner in Central and Eastern Europe
It provides good opportunity to sell Canadian products/services
The total bilateral trade is positive and is expected to steadily increase

14. COUNTRY PROFILE Bilateral relations with Canada:
Canada’s primarily exports commodities (coal, wheat, wood pulp)
Double taxation agreement was reached between the two countries
Canada-Turkey framework agreement (to ensure closer bilateral relationship)

15. Country Profile Bilateral relations with the US
US is one of the major trade partners of Turkey
Export items to the US: iron&steel, pearls and precious stones, machinery and mechanic parts, tobacco and cement
Import items from the US: machinery, electrical equipments, pharmaceuticals, organic chemicals, aircraft and parts, optical and photographic instruments
Exports and imports share 8 and 5% respectively
Turkey constitutes 0.2% of imports and 0.4 of exports of the US

16. COUNTRY PROFILE Bilateral relation with NAFTA:
Turkey mostly deal with Canada and the US but doesn’t have a significant relationship with Mexico
Turkey’s exports to NAFTA totaled more than $3.6 billion in 2004 (8.6% of total exports)
Turkey’s imports from NAFTA equaled more than $4.6 billion (5.4% of total imports)

17. INTERNATIONAL TRADE
Turkey’s exports: Total exports are US$ 56 billion in 2004
Main exporting partners are Germany, the US, the UK, Italy, France, Spain, Holland, Russian Federation ( 80% of exports are directed to EU countries)
Main export products:
Textile and clothing: $6.6 billion 23% of total exports
Iron and Steel: $2.2 billion, 6.9 million tons
Agriculture: Olive, cotton, tobacco, hazelnut
Chemicals: $436 million, plastic raw materials
$ million, soaps, detergent, cleaning products
Glass and Ceramics: 5th in tiles production (world)
4th in Europe
Gold jewellery
Mining

18. INTERNATIONAL TRADE
Turkey’s imports: Total imports are US$ 87 billion in 2004
Main importing partners are Germany, The US, the UK, France, Russian Federation (88% of imports are from EU)
Main import products are:
Machinery and equipment
Chemicals
Petroleum
Pharmaceutical products

19. INTERNATIONAL TRADE Capital Flows:
Total FDI in Turkey amounted to US$ 32 billion by 2003, there are 6584 foreign companies operating in Turkey, 108 out of top 500 companies list of Fortune magazine
The leading investors: France, Netherlands, Germany, UK, the US
EU accounts for 68% of foreign investment stock
OECD accounts for 88%, 2% for Islamic countries, 1% East European countries, 9% other countries
Services represent 50-55% of the total stock of FDI
Manufacturing sectors investments, 35-40%
Agriculture and mining investments: 5%

20. INTERNATIONAL TRADE International disputes:
Turkey has been involved in 12 cases
7 concerned Turkey’s trade measures
3 involved quantitative restrictions on imports of textile and clothing products
Turkey has been the complainant in 2 cases against Egypt and South Africa

21. INTERNATIONAL TRADE International disputes with the US:
Generalized System of Preferences (GSP)
Intellectual Property Rights
Anti-Dumping & countervailing duties
Textiles trade
FDA regulations

22. TRADE POLICY Influenced by WTO and trade relations with the EU
An export-oriented high value-added services and manufactured products
It also includes an emphasis on technology-intensive
Focuses on supporting export activities particularly of SME’s
Government's goal is to contribute to efficiency of free zones by dealing more with Middle East, Caucasian region and Central Asia

23. TRADE POLICY
Long term strategy contains 8 five year development plans for
Reduce state intervention by privatization of public enterprises
Promoting FDI
Continue industrialization policy
Finance exports through the Turk Eximbank
Improve infrastructure for better international trade relationships

24. TRADE POLICY Recent modifications on domestic legislation on:
Intellectual property rights
Telecommunication
Customs
Anti-dumping
Banking
Energy
Government procurement

25. TRADE POLICY
It is not a signatory of the Plurilateral Agreements from the Uruguay Round
Interest in Doha Development Agenda:
Future multilateral tariff reduction
Simplification of tariff structure
Elimination of non-tariff barrier
Equitable agricultural trading environment

26. CONCLUSION
Many future opportunities with the future and official entry in the EU
Acquiring more knowledge with the machine they’re importing
Multiple agreement in the region give them an increase level of trade because they deal with different type of market influence in “relationship know-how”
Stable political regime so less risk for making business
Average ranking that gives it time to grow