1. “ECONOMIC REVIEW AND TURKEY’S TRADE WITH FINLAND” Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor 10.10.2012

2. FOREIGN TRADE OUTLOOK Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor * TURKEY AT A GLANCE * TURKISH ECONOMY IN THE WORLD * FOREIGN TRADE DEVELOPMENTS OF TURKEY * TRADE WITH FINLAND

3. Embassy of Turkey, Office of the Commercial Counsellor 3 TURKEY AT A GLANCE; STORY OF ONE OF THE FASTEST DEVELOPING DEMOCRATIC COUNTRIES IN THE WORLD...

4. MEMBERSHIP TO INTERNATIONAL ORGANIZATIONS Embassy of Turkey, Office of the Commercial Counsellor 4 MEMBER OF THE WTO MEMBER OF THE ORGANIZATION OF ISLAMIC CONFERENCE MEMBER OF THE OECD TURKEY MEMBER OF THE NATO FOUNDING MEMBER OF THE ECONOMIC COOPERATION ORGANIZATION FOUNDING MEMBER OF THE ORGANIZATION OF BLACK SEA ECONOMIC COOPERATION FREE TRADE AGREEMENTS WITH THE EFTA & THE CEE COUNTRIES CUSTOMS UNION WITH THE EUROPEAN UNION

5. Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor5 TURKISH ECONOMY IN THE WORLD...

6. TEXTILES INDUSTRY AS TURKEY IS 3 RD LARGEST TEXTILES SUPPLIER IN THE EU MARKET AND 4 TH HOME TEXTILES EXPORTER IN THE WORLD. Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

7. 7 EXPORTS 1 st in the Europe PRODUCTION 4 th in the World CEMENT INDUSTRY Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

8. 8 TURKEY IS ONE OF THE TOP FIVE COUNTRIES IN TERMS OF WORLD’S GOLD JEWELRY PRODUCTION JEWELRY Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

9. 9 IRON AND STEEL NATURAL STEEL PRODUCTION 10 th in the World Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

10. 10ELECTRONICS TURKISH TELEVISION INDUSTRY RANKS 2 ND IN THE EUROPEAN MARKET. TURKISH HOME APPLIANCES INDUSTRY RANKS 4 TH IN THE EUROPEAN MARKET. Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

11. 11 TRUCKS AND TRANSPORTATION VEHICLES EXPORTS 5 TH in the WORLD 2 ND in the EU Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

12. 12 TOURISM POTENTIAL of TURKEY 1.2 Million INCREASED 26 TIMES!... INCREASED 26 TIMES!... IN 2011 MORE THAN 31,4 MILLION TOURISTS VISITED TURKEY 7 TH BIGGEST TOURIST DESTINATION IN THE WORLD Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor 1980

13. 13  In 2002, 3 billion dollars.  In 2010, 9.6 billion dollars.  R&D expenditures increased by 218 % between 2002 and 2010 Turkey: R&D Expenditures (Current PPP, USD) Source: OECD, Main Science and Technology Indicators Embassy of Turkey, Office of the Commercial Counsellor

14. 14  In 2002, 28,964 people.  In 2010, 81,792 people.  Number of R&D personnel increased by 182 % between 2002-2010 Turkey: Number of FTE* R&D Personnel (*)Full Time Equivalent Source: OECD, TURKSTAT, TUBİTAK Embassy of Turkey, Office of the Commercial Counsellor

15. 15 Constructing Services Abroad Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor Contributions to the overall economic performance: Creating foreign exchange inflow, exports, employment, technology transfer; adding to the machinery stock, facilitating internationalization  31 out of the world’s top 225 constructing companies are Turkish.  Turkey ranks as the 2nd country (following China) in terms of the number of top constructing companies.

16. 16 Logistics Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor  Europe’s biggest truck fleet  (45 thousands trucks and 1,420 companies)  Almost 1 million flights in 2011  (2.3 million tonnes freight and 117 million passengers)  25. biggest fleet in the world  45 airports and 51 ports  Total length of divided highways will reach 15 thousand kilometers.  High-speed railway projects are carried out rapidly.

17. Energy 17  Turkey is an energy hub between energy producer and consumer regions Embassy of Turkey, Office of the Commercial Counsellor

18. Investment Climate in Turkey 18 Embassy of Turkey, Office of the Commercial Counsellor

19. Time Required to Start a Business  The required time to start a business is 6 days in Turkey. Source: Invest In Turkey 19 Embassy of Turkey, Office of the Commercial Counsellor

20. Skilled Labour Availability  Scoring is between 0 and 10. Source: Invest In Turkey 20 Embassy of Turkey, Office of the Commercial Counsellor

21. Transparency in Finance Sector Source: Invest In Turkey 21  Scoring is between 0 and 10. Embassy of Turkey, Office of the Commercial Counsellor

22. 22 World’s Biggest Economies (Turkey is 16th biggest GDP based on Purchasing Power Parity, Trillion Dolar, 2010) * In 2010, with 1,038 billion USD (puchasing power parity), she is at 15th place (World Bank) or 16th place (IMF, CIA)

23. Embassy of Turkey, Office of the Commercial Counsellor 23 Europe’s Biggest Economies (GDP based on Purchasing Power Parity, Trillion Dolar, 2010) Source: IMF, World Economic Outlook * In 2010 and 2011, Turkey has been again the 6th biggest economy in Europe.

24. Real GDP Growth of Selected Countries/Country Groups (2011)  Turkish Economy expanded by 8,5% in 2011, which was well beyond the expectations of the IMF (7.5%). Source: TURKSTAT, IMF 24 Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

25. 25 GNP Per Capita of Turkey (US $)

26. 26 Growth Forecasts for Selected Countries/Country Groups (%) Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor  According to the IMF, Turkish Economy is expected to grow by 2.3% in 2012.  In the first two quarters of 2012, Turkish economy grew by 3,2% and 2,9% respectively, resulting in an average growth of 3,05% in the first half of 2012 Source: IMF, OECD, UN, WB

27. Embassy of Turkey, Office of the Commercial Counsellor 27 Comparison of Europe and Turkey: Real GDP Growth (2001=100)

28. 28 Foreign Direct Investment Inflows (Billion USD) Source: CBRT Embassy of Turkey, Office of the Commercial Counsellor

29. EU Defined Budget Deficit/ GDP (%) 29 Embassy of Turkey, Office of the Commercial Counsellor  EU defined general government budget deficit/GDP ratio was 2.6% in Turkey in 2011 and Turkey satisfied the Maastricht criteria of 3%. Turkey also outperformed 18 EU Countries.  Central government budget deficit/GDP ratio was 1.3% in Turkey in 2011 and Turkey outperformed 23 EU Countries.  In January-August 2012, central government budget deficit has increased to 8.5 billion dollars.

30. Investment Incentive System 30 Embassy of Turkey, Office of the Commercial Counsellor The current investment incentive system of Turkey is structured in four sub systems:  General Investment Incentive System  Regional Investment Incentive System  Investment Incentive System for Big Scale Projects  Incentives for Strategic Investments

31.  Tax advantages for manufacturers  Medium-and long-term investment view  Availability to transfer profits  Commercial facilities  Exemptiın from customs duties  Acquisition of the documents relating to the free movement of goods under the scope of Customs Union with the EU  Principle of equality  No time restrictions  Flexibility to adjust to the market needs and conditions  Reliable inflation accounting  Market access to domestic and foreign markets  Reduced bureaucratic procedures and dynamic business management  Strategic advantages.  Affordable and compatible infrastructure  Supply chain opportunities The Advantages of Free Zones for Users Embassy of Turkey Office of the Commercial Counsellor Embassy of Turkey Office of the Commercial Counsellor31

32. Free Zones in Turkey  54,022 people have been employed in Free Zones of Turkey in 2011. Embassy of Turkey Office of the Commercial Counsellor Embassy of Turkey Office of the Commercial Counsellor32

33. Trade Flows of Free Zones Source: General Directorate of Free Zones, Foreign Investments and Services Embassy of Turkey Office of the Commercial Counsellor Embassy of Turkey Office of the Commercial Counsellor33 *January-July  In January-July 2012 total trade volume of the Free Zones reached to 13,5 billion dollars, increasing 9,1% annually.

34. Concentration in Free Zones by Industries Source: General Directorate of Free Zones, Foreign Investments and Services Embassy of Turkey Office of the Commercial Counsellor Embassy of Turkey Office of the Commercial Counsellor34

35. Embassy of Turkey, Office of the Commercial Counsellor 35 FOREIGN TRADE DEVELOPMENTS OF TURKEY...

36. Exports by Regions Source: TURKSTAT 30 Embassy of Turkey, Office of the Commercial Counsellor

37. Imports by Regions Source: TURKSTAT 31 Embassy of Turkey, Office of the Commercial Counsellor

38. Annual Exports (Billion USD) Source: TURKSTAT Embassy of Turkey, Office of the Commercial Counsellor

39. 39 Exports Targets (FOB, Billion USD) Source: Ministry of Development, Medium Term Economic Programme 2012-2014, October 2011 Embassy of Turkey, Office of the Commercial Counsellor

40. Foreign Trade Developments Source:Ministry of Economy 40 * Energy corresponds to Chapter 27. Embassy of Turkey, Office of the Commercial Counsellor 2010 - 2011 / 2011-2012 January-August  In January- August 2012 compared to the same period of the previous year, exports increased by %12,8 and imports decreased by %2,4 respectively.

41. Monthly Exports 41 Embassy of Turkey, Office of the Commercial Counsellor  In August 2012 compared to August 2011 exports have increased by 14,5% and reached to the level of 12,9 and imports have decreased by 4,8%up to the level of 18,7 billion dollar.

42. Main Export Partners (Share,%) Main Trade Partners (January-March 2012) Main Import Partners (Share,%) Source: TURKSTAT 32 Embassy of Turkey, Office of the Commercial Counsellor

43. Main Export Items Source: TURKSTAT 43 * Percent change is related to the annual change in exports in 2012. Embassy of Turkey, Office of the Commercial Counsellor

44. Main Import Items Source: TURKSTAT 44 * Percent change is related to the annual chamge in imports in 2012. Embassy of Turkey, Office of the Commercial Counsellor

45. 45 TRADE WITH FINLAND...

46. Embassy of Turkey, Office of the Commercial Counsellor 46 Foreign Trade of Finland YearImport (000 000 €) % Change Export (000 000 €) % Change Balance (000 000 €) 200655 252 + 1761 489 + 17 + 6237 200759 492 + 865 484 + 7 + 5992 200862 402 + 565 580 + 0 + 3178 200943 655 −3145 063−32 + 1408 201051 899 + 17,952 438 + 16,2 + 539 201160 259 + 1656 615 + 7,9 − 3644 2012 (January- July) 34 310 33 133 − 1177

47. Embassy of Turkey, Office of the Commercial Counsellor 47 Main Trade Partners of Finland COUNTRY 2011 IMPORTS (milyon € ) Share (%) 2011 EXPORTS (milyon € ) Share (%) Balance 1Russia11 31518,75 3309,49,4-5 985 2Germany7 48512,45 6309,9 -1 855 3Sweden6 02510,06 72611,9701 4China4 3817,32 6634,7-1 718 5Nederlands3 1345,23 8366,8703 6USA2 2173,72 9085,1691691 7 UK 1 7702,92,92 9145,1 1 144 8France1 9703,31 7583,13,1-212 9 Norway 1 9473,21 5962,8-350 10 Italy 1 5812,61 3452,4 -236 Other Countries 18 56330,730,721 96138,838,8 3 398 TOTAL60 38710056 668100-3 719

48. Embassy of Turkey, Office of the Commercial Counsellor 48 Major Import Items of Finland in 2011 NoCN CodeDefinition Value ( € ) 127 MINERAL FUELS, OILS, WAXES 13 069 264 371 284 MACHINERY & MECHANICAL APPLIANCES, COMPUTERS 6 560 835 162 385 ELECTRICAL MACHINERY & EQUIP. & PARTS 5 856 455 727 472 IRON & STEEL 2 448 932 366 539 ORES, SLAG & ASH 1 970 207 276

49. Embassy of Turkey, Office of the Commercial Counsellor 49 NoCN Code Definition Value ( € ) 148 MACHINERY AND MECHANICAL APPLIANCES 8 009 366 662 284 PAPER & PAPERBOARD, ARTICLES OF PAPER PULP 7 596 328 392 385 ELECTRICAL MACHINERY & EQUIP. & PARTS 6 075 546 568 427 MINERAL FUELS, OILS, WAXES 5 372 539 307 572 IRON & STEEL 3 970 895 045 Major Export Items of Finland in 2011

50. 50 TURKEY-FINLAND EXPORTS/IMPORTS ( € ) 2010 EXPORTSIMPORTSVOLUMEBALANCE COUNTRY Value ( 000 $) 32FINLAND 296.774,001.115.496,001.412.270,00-818.722,00 TOTAL 296.774,001.115.496,001.412.270,00-818.722,00 Embassy of Turkey, Office of the Commercial Counsellor 2011 EXPORTSIMPORTSVOLUMEBALANCE COUNTRY Value ( 000 $) 32FINLAND 352.866,001.296.727,711.649.613,75-943.841,67 TOTAL 352.886,001.296.727,711.649.613,75-943.841,67

51. 51 TURKEY-FINLAND EXPORTS/IMPORTS ( € ) Embassy of Turkey, Office of the Commercial Counsellor 2012 (January- August) EXPORTSIMPORTSVOLUMEBALANCE COUNTRY Value ( 000 $) 32FINLAND 206.617,75677.167,05883.784,80 -470.549,30 TOTAL 206.617,75677.167,05883.784,80-470.549,30 2011 (January- August) EXPORTSIMPORTSVOLUMEBALANCE COUNTRY Value ( 000 $) 32FINLAND 230.497,89935.163,561.165.661,45 -704.665,67 TOTAL 230.497,89935.163,56 1.165.661,45-704.665,67

52. Embassy of Turkey, Office of the Commercial Counsellor 52 Finland-Turkey Exports-Imports Comparison

53. Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor53 Finland-Turkey Trade Balance and Volume

54. 54 Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor CN CODE EXPORTS € DEFINITIONto Finland 61 ARTICLES OF APPAREL & CLOTHING ACCESSORIES 53 928 212 84 MACHINERY & MECHANICAL APPLIANCES, COMPUTERS 43 938 730 26 ORES SLAG & ASH 43 819 899 8585 ELECTRICAL MACHINERY & EQUIP. & PARTS, 29 635 139 62 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR CROTCHETED 29 461 102 63 MADE-UP TEXTILE ARTICLES 12 475 508 21 EDIBLE PREPARATIONS 10 709 279 69 CERAMIC PRODUCTS 10 345 135 73 ARTICLES OF IRON OR STEEL 10 119 477 39 PLASTICS & ARTICLES THEREOF 9 606 501 First 10 Items Exported from Turkey to Finland

55. Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor55 CN CODE IMPORTS € NAME from Finland 85 ELECTRICAL MACHINERY & EQUIP. & PARTS, 221 508 948 48 PAPER & PAPERBOARD, ARTICLES OF PAPER PULP 181 757 841 84 MACHINERY & MECHANICAL APPLIANCES, COMPUTERS 101 902 849 39 PLASTICS & ARTICLES 56 989 132 72 IRON & STEEL 49 464 795 47 PULP OF WOOD, WASTE & SCRAP OF PAPER 42 190 903 90 OPTICAL, PHOTOGRAPHIC, MEDICAL INSTRUMENTS 18 039 458 43 FURSKINS AND ARTIFICIAL FUR 15 982 367 4 WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL 11 721 210 First 10 Items Imported from Finland to Turkey

56. Daimi Temsilci Yardımcılığı Ticaret Müşavirliği Ticaret Ataşeliği İrtibat Büroları AFRİKA Kahire Nairobi Pretoria Rabat Trablus Tunus Kazablanka ASYA Astana Aşkabat Bangkok Bişkek Cakarta Duşanbe Hanoi İslamabad Kabil Kuala Lumpur Manila Pekin Seul Singapur AVRUPA/KAFKASYA AB DTÖ OECD Atina Bakü Belgrad Berlin Bern Bratislava Brüksel Budapeşte Bükreş Dublin Helsinki Kiev Kişinev Kopenhag Lahey Lizbon Lefkoşa Londra Lubliyana Madrid Minsk Moskova Oslo Paris Podgorica Prag Priştine Roma Saraybosna Sofya Stokholm Tiflis Tiran Üsküp Varşova Viyana Zagreb Barselona Batum Düsseldorf Hamburg Hannover Kazan Marsilya Milano Münih Novorossisk Odessa Rotterdam Selanik St. Petersburg Stutgart Birmingham Krasnodar Novosibirsk Yekaterinbur g Taşkent Tokyo Ulan Bator Yeni Delhi Almatı Guangzhou Hong Kong Karaçi Mumbai Şangay Georgetown Abuja Addis Ababa Akra Cezayir Dakar Darüsselam Hartum İskenderiye Buenos Aires Karakas Mexico City Ottava Santiago Vaşington Houston Los Angeles AMERİKA ORTA DOĞU Abu Dhabi Amman Bağdat Beyrut Doha Kuveyt Manama Muskat Riyad Sana Şam Tahran Tel Aviv Basra Cidde Dubai Erbil Halep Kudüs Musul Tebriz Sidney Melbourne AVUSTRALYA New York Sao Paulo Şikago Toronto Miami San Francisco Seattle GEORGETOWN Locations of Trade Representatives Locations of Trade Representatives 56 Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

57. Trade Representatives Abroad 195 trade representatives from the Ministry are serving in 130 locations and 6 offices abroad. 57 Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor

58. THANK YOU!... Embassy of Turkey, Office of the Commercial Counsellor 58

59. Embassy of Turkey, Office of the Commercial Counsellor Embassy of Turkey, Office of the Commercial Counsellor59 CONTACT INFORMATION OF THE OFFICE OF THE COMMERCIAL COUNCELLOR: WEB PAGE: http://www.counsellors.gov.tr/ Tel: 9 477 41 70 Fax: 9 44 44 92 E-mail: helsinki@economy.gov.tr http://www.counsellors.gov.tr/