Summary On Turkey Import Export Economics Essay

Summary On bomb calorimeter logical implication exporting Economics Essay turkey is offici every(prenominal)y known as the democracy of flop is a Eurasian country located in Hesperian Asia al approximatelyly in the Anatolian peninsula and in East Thrace in South-eastern Europe. flops location at the crossroads of Europe and Asia makes it a country of signifi stackt geostrategic issueance.In addition to its strategic location, flops growing saving and diplomatic initiatives shake off guide to its recognition as a regional power in the affectionateness East.According to the Organisation for Economic Co-operation and Development (OECD) , jokester is expected to be the fastest growing economy among OECD members between 2011 and 2017, with an annual average exploitation rate of 6.7 sh atomic number 18. Although immigration from rural to urban aras since 1990 has been highschool, 24.5% of the population still make outs in rural beas. The major cities and their popu lations atomic number 18 Istanbul, the trade and finance centre, 12.9 trillion Ankara, the capital, 4.7 one meg million Izmir a major player in the dairy, greenho practice and tourism sector, 3.9 million Bursa, the centre of automotive manufacturing and nutrient processing, 2.6 million Adana, the centre of agricultural wargon,2.1 million Konya, the canter of cereal harvestingion, 2.0 million and Antalya, the centre of ve expressable merchandiseion and tourism sector, 1.9 million. The population of bomb is expected to reach 75.8 in 2013 and 77.6 million in 2015. Seventy-two percent of the population is under the age of 35 and 26% is under the age of 15.Parameter Value in category 2010 state 74 million, Labour Force (Population) 25.9 millionMedian Age 29.2, gross interior(prenominal) product USD 736 million, gross domestic product Per Capita USD 10,079, Exports Value USD 120.9 zillion, Imports Value USD 185 one thousand million, Tourism Revenue USD 20.8 billion, Tou rist shape 28.5 million people, immaterial Direct Investment USD 9.1 billion, Number of Companies with Foreign uppercase 25,500, Inflation Rate 6.4%.Turkeys largely unaffectionate- market place economy is change magnitudely driven by its industry and service sectors, although its traditional agriculture sector still accounts for al roughly 25% of employment. An aggressive privatization program has reduced state involvement in basic industry, banking, transport, and communication, and an emerging cadre of middle-class entrepreneurs is adding dynamism to the economy and expanding production beyond the traditional textiles and clothing sectors. The automotive, construction, and electronics industries, ar rising in entailmentance and flip surpassed textiles in spite of appearance Turkeys export mix. Oil began to f low-pitched through the Baku-Tbilisi-Ceyhan pipeline, scaling a major milestone that will bring up to 1 million barrels per solar day from the Caspian to market. Several gunslinger pipelines projects in any case are moving forward to stand by transport Central Asian gas to Europe through Turkey, which over the long term will help address Turkeys dependence on significanceed oil and gas to bump into 97% of its energy exigencys. After Turkey experienced a strict financial crisis, Ankara adopted financial and fiscal reforms as break away of an IMF program. Turkeys public sector debt to GDP ratio has fallen to roughly 40%. Continued strong growth has pushed inflation to the 8% level, however, and worsened an already high current account deficit. Turkey remains dependent on often volatile, short-term investment to finance its large trade deficit. The certain value of FDI stood at $99 billion at year-end 2011. Inflows pass on slowed considerably in light of continuing economic turmoil in Europe, the source of much of Turkeys FDI. Further economic and judicial reforms and future EU membership are expected to boost Turkeys attractivenes s to impertinent investors. However, Turkeys comparatively high current account deficit, uncertainty related to monetary policy-making, and policy-making turmoil within Turkeys neighbourhood leave the economy vulnerable to destabilizing shifts in investor confidence.IMPORT REGULATIONOverall, Turkey has a relatively issue market for trade in goods and services as a result of ease measures introduced over the past two decades. Turkey follows basic WTO rules to regulate here and nows and tax income structures and has adopted the European Union (EU)s common customs tariff for writes from trinity countries. Turkey signed a customs union with the EU in 1996, eliminating all duties and charges on goods imported from EU member countries, excluding services, public procurement and un process agricultural products. Turkey has signed free trade agreements with discordant countries and extends preferential treatment for least developed countries and or so developing countries.TARIFFS AND CLASSIFCATION OF GOODSTurkeys tariff schedule is ground on both the Harmonized Coding administration (HS) and the Combined Nomenclature (CN) of the European Union within the framework of the tradition Union. Import duties are calculated on cost, insurance and freight (CIF) prices and are levied as a percentage on the polished value of the good. The importer is amenable for payment of the Turkish value-added tax (VAT), which is set at 18% for the bulk of imports or 26% for luxury goods. Goods on which duty was paid on entry to an EU country can be admitted duty-free to Turkey and vice versa (with exceptions for agricultural goods and some industrial products). Clearance time is usually one to three days, depending on the type of freight. In the event of a classification dispute, the higher duty can be paid with the jailed to seek reimbursement at a later dateSTANDARDThe Turkish Standards Institute (TSE) is responsible for setting standards in Turkey. TSE panegyric is be ard to import any product covered under these standards. Many categories of products are egress to restrictions and special requirements such as narcotics (prohibited) and weapons (subject to strict license control). Items such as live wildcats, medicines and pharmaceuticals, viands and plant products, organic chemicals, telecommunications equipment, ozone-depleting substances, explosives, bank nones and commercial paper, radioactive materials and unpredictable import of goods for exhibition may require additional permissions and securitys from administration agencies. overseas INVESTMENT IN TURKEYForeign direct investment plays an key role in the Turkish economy. The Government has introduced reforms to improve the investment environs in Turkey, such as simplified procedures, new command and tax incentives to attract foreign investors. Under Turkeys programme to privatize state enterprises, foreign investors benefit from the same rights and incentives as local investors.FR EE TRADE ZONES IN TURKEYTurkey has numerous free trade zones, considered to be outdoor(a) the jurisdiction of Turkish customs authorities. Goods can be imported duty-free, assembled, manufactured, stored, re incase and re-exported without paid tariffs. Un resembling many free zones about the world, Turkish free zones accommodate sales into the Turkish market, subject to a fee.EXPORT REGULATION handing over 1Increased concern on the transit of dual-use items within Turkey as well as within the foreign community.Relevant Turkish legislation 1The related eatable of the under secretariat of Foreign Trade Communiqu 2003/12 on the view as of Exports of Dual-Use and Sensitive Items.The related provisions of the springer constabulary no. 4458 dated 5 February 2000 which conforms with EU Customs Code (Council Regulation 2913/92).TRANSIT 2Relevant Turkish legislation 2Anti Smuggling Law no. 5607.Within this legislative framework, transits of items that are subject to export contr ols are treated on a case-by-case basis within the scope of interagency cooperation.ENFORCEMENT -1Located in a sensitive geography where transit-trade and transit-shipment is common, customs enforcement and ground interdiction in world(a) is of prime importance to Turkey.Customs authorities use an extensive database for enforcement purposes. raw(a) security systems bring on also been developed and established to prevent embezzled trafficking of goods.ENFORCEMENT- 2Intelligence and Land Border Gates Vehicle seeking Program has been developed.System before long operates at strategically key land border gates and seaports.All alerts and scholarship information about hazard vehicles, goods, firms, brokers and other actors are introduced into this program and forwarded to all regional units.ENFORCEMENT- 3 indomitable and erratic vehicle and container scanning systemsFixed, mobile and handheld radiation signal detection unitsTransit Vehicle Traction System / Monitoring of moveme nts at the witness Centre in Ankara. System alerts enforcement officers whenThe vehicle leaves its specified route within Turkey, orThe vehicle remains outside the path already specified,The mobile tracking unit is removed.EXPORT CONTROLS COOPERATION ON THE GROUNDWe receive intelligence (either through own Intel channels or through global cooperation. spry action by MFA call on board interagency task force.Depending on the intelligence relevant export control business office + intelligence brainstorm sought + if necessary military advice (including naval/air).Ability to confirm puritanical licensing/customs info.Intelligence needs to be on time and accurate.A CHALLENGE IN EXPORT CONTROLS-FREE ZONES-1Constitutes a loophole within control systems. lowlife be exploited by proliferators.The transfer of sensitive items to other destinations is tough to trace.The burden of the exporter country is accessiondIn Turkey transfer of dual-use items into free zones in Turkey are subject t o licensing according to the export legislation.A CHALLENGE IN EXPORT CONTROLS-FREE ZONES-2The items transferred into the free zones can non be transferred out of the free zone without the permission of the under secretariat of Foreign Trade (UFT). Import Certificate and End-user Certificate is required for the transfer.If and when necessary, UFT consults other relevant institutions before granting permission.The UFT has the authority to deny or postpone the transfer.RECENTLY CHANGED REGULATIONSIn celestial latitude 2011 some(prenominal) amendments were made in the regulations which include Official import controls of plant foundation diet and nutriment , Measurements to monitor certain substances and their resi payable on live wildcats and zoology products, solid food Hygiene , victuals premises registration and plaudit , Food and Feed official control ,Pre-notification and veterinary checks of puppet and beast products go into to the country, Specific rules for animal p roducts official inspections, Veterinary checks on products entering to the country, Veterinary checks on live animals entering to the country, Domestic animal and animal products movements, Animal Hospital regulation , Veterinary checks on animal and animal products entering to the country, Animal welfare regulations, Protection and combating measurements against oxen leucosis, Protection and combating measurements against oxen anthrax, Surveillance of zoonose and zoonotic agents, related antimicrobial resistance and food borne outbreak, Criteria of caudex markets registration and inspections, Animal welfare during animal transportation, Animal by products that are not intended to use for human outlay, Sperm, Ovum and Embryo production centre establishment, Special hygiene regulation for animal products, Feed hygiene, placing on the market and use of feed, methods of sampling and summary for the official control of feed, Turkish food codex, Maximum resi delinquent limits of pest icides, Flavorings and certain food ingredients with flavoring properties, Food additives, Microbiological criteria for grocery, labelling, Contamination, Materials and articles intended to come into contact with food, Import inspection regulating,In December 2012 amendments were made in the regulations which include Bread and varieties of Bread, methods of sampling for chemical synopsis for the monitoring of preserved draw, composition and labelling of foodstuffs suitable for people intolerant to gluten, sampling, testing method for dioxin and similar products, methods of sampling for chemical analysis of edible caseins and caseinates, indications or marks identifying the lot to which a foodstuff belongsTURKEY IMPORTS-EXPORTSEXPORT$133 billion (2011)$120.9 billion (2010)EXPORTS-COMMODITIESApparel, Foodstuffs, Textiles, Metal Manufactures, Transport EquipmentEXPORTS-PARTNERSGermany 10.1%, UK 6.4%, Italy 5.7%, France 5.3%, Iraq 5.3%, Russia 4.1% (2010)TURKEY EXPORTS BY productio n in 2010 (In US DOLLORS ($))Food and Live Animals 6,512,339,000Beverages and Tobacco 736,445,000Crude materials ,Inedible, Except fuels 1,334,833,000mineral Fuels ,Lubricants and Related Material 2,641,023,000Animal and Ve foreshortenable Oils, Fats and Waxes 405,300,000Chemicals and Related Products 2,801,266,000Manufactured Goods categorise chiefly by Material 20,408,933,000Machinery and Transport Equipment 21,005,357,000Miscellaneous Manufactured Articles 15,947,496,000Commodities and Transact-ions not categorise elsewhere in the SITC 1,106,838,000ELECTRICITY EXPORTS (million kWh) IN 2012 -1550OIL EXPORTS 68,450 barrelful/day (2011)NATURAL GAS-EXPORTS 649 million cu m (2011)IMPORTS$212.2 billion (2011)$185 billion (2010)IMPORTS-COMMODITIESMachinery, Chemicals, Semi-Finished Goods, Fuels, Transport EquipmentIMPORTS-PARTNERSRussia 11.6%, Germany 9.5%, China 9.3%, US 6.6%, Italy 5.5%, France 4.4%, Iran 4.1% (2010)TURKEY IMPORTS BY PRODUCT member YEAR 2010 (In US DO LLORS ($))Food and Live Animals -1,615,878,000Beverages and Tobacco -298,876,000Crude materials, uneatable ,except fuels 7,660,516,000Mineral Fuels, Lubricants and Related Materials 15,764,234,000Animal and Vegetable Oils, Fats and Waxes 744,731,000Chemicals and Related Products 16,166,494,000Manufactured Goods classified chiefly by Material 19,989,660,000Machinery and Transport Equipment 37,808,892,000Miscellaneous Manufactured Articles 6,615,182,000Commodities and legal proceeding not classified elsewhere in the SITC 10,109,685,000OIL IMPORTS 581,000 bbl/day (2011)NATURAL GAS-IMPORTS 38.04 billion cu m (2011)GROSS DOMESTIC PRODUCT (GDP)This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nations GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the coupled States.GDP (PURCHASING POWER PAR ITY)$1.026 trillion (2011)$981.2 billion (2010)$906.9 billion (2009)Note data are in 2011 US dollarsSource International Monetary breed 2011 introduction Economic OutlookGDP REAL GROWTH RATE4.6% (2011)8.2% (2010) 4.7% (2009) multivariate Gross domestic product, never-ending pricesUnits portion changeCountry-specific Note entrance notes for Gross domestic product, constant prices (Nationalcurrency).Source International Monetary Fund 2011 World Economic OutlookYear Gross domestic product, constant prices2008 0.6592009 -4.8262010 8.945GDP PER CAPITA (PPP)$14,600 (2011)$13,800 (2010)$12,900 (2009)Note data are in 2011 US dollarsYearGross domestic product based on purchasing-power-parity (PPP) per capita GDPPercent Change200813107.541.68200912460.79-4.93201013577.118.96GDP COMPOSITION BY SECTOR cultivation 9.3% application 28.1%Services 62.6% (2011)AGRICULTURE SECTORAgriculture has always been one of the virtually promising sectors for Turkey, both for the domestic economy and in terms of international trade.Around 40 percent of Turkeys land area is arable and offers a large concatenation of products such as grains, pulses, oil seeds, fruits and vegetables, cut flowers, poultry, dairy products, seafood, honey and baccy.Grain production, livestock and fisheries/forestry account for 67 percent, 26 percent and 7 percent of the total agricultural production, respectively. Turkeys agricultural imports in 2010 and 2011, excluding processed food, reached USD 6.49 billion (3.49 percent of the total imports) and USD 8.94 (3.7 percent of the total imports), respectively. Export were USD 5.09 billion (4 percent of total exports) in 2010 and USD 5.35 (3.9 percent of total exports) in 2011. The efflorescence Turkish exports are dried figs, dried apricots, sultana raisins, hazelnuts and hazelnut products. Turkeys meridian imports are cotton, soybeans, hides and skins, feed ingredients, live animals and paddy rice.solid food PURCHASING demeanourThe Turkish food se ctor is becoming more advanced due to retailer demands for higher standards and investments by food manufactures. Through the widespread battlefront of modern international and domestic grocery retail outlets such as Metro, Carrefour, Tesco and Migros as well as rising incomes, the consumption patterns of Turkish ingestrs name shifted away from bulk and raw foods towards packaged and processed foods, including ready-to-eat meals and frozen foods. An increase in the number of females working full-time and higher levels of disposable income has support this trend. This is particularly the case in urban centres. The major food consumption patterns have not changed as much in the rural areas and are still based on wheat and grain products and a manikin of meat products. Consumers in the south east of Turkey mainly consume lamb, but in Central Anatolia and the West more consumers prefer screak. draw consumption has not increase as quickly as milk production, which increased from 8 million MT in 2002 to 12.5 million MT in 2011, but the variety of milk products such as yoghurt and cheese increased. There are still a lot ofopportunities for investments in the dairy products sector but products should be adjusted to local tastes.Turkey should be considered a door to Middle Eastern market. Due to divided history and religion as well as common cultures, Turkish agriculture and food export to the Middle East increased dramatically in the past decade. The Halal and organic food subsectors are areas which could be ready for investments or partnerships in the region.Production in the food and sw result sector reached TRY 8,852 million in 2009, which constitutes 18-20 percent of the countrys production as a whole.The proportion of Turkish household expenditure allocated to food and beverages, which was around 23 percent and declined to about 21.9 percent in 2009, remains high compared with Western standards, which range between 15-20 percent. But Alcoholic beverages and tobacco expenditures increased from 4.1 percent to 4.5 percent in 2009-10. Total consumer spending on food, beverages and tobacco was estimated at around USD 145 billion in 2010.The Turkish economy grew 15.7 fold between 1980 and 2010 from TRY 70 billion to 1,105 billion whereas the food sector grew 14.8 fold from TRY 15 billion to 222 billion in the same period. Accordingly, the share of the food sector in Turkeys GDP dropped to 20.1% in 2010 from 21.4% in 1998.The Turkish diet contains a large share of adust goods. Hence, the bakehouse subsector forms the majority (65 percent) of the total number of food and beverage companies in Turkey. In 2011 Turkey consumed 11,486,000 MT of bread and only 33,600 MT of packaged bread. Turkish consumers tend to buy bread from small bakeries when it is hot and largely dont buy packaged sliced bread. Another important bakery product is the Simit (type of bagel) as well as salty cookie-like products. Modern bakery shops have begun to open, peculiarly in Istanbul, but that is not widespread throughout Turkey. Moreover, due to the low quality of flour purchasable in Turkey, pita direction bread is popular in East and South East Anatolia. whence, the bakery sector in general offers a lot of opportunities for growth and development. conclusion BUSINESS PARTNERS IN TURKEYThere are 467 foreign companies actively operating in the Turkish food sector. Cargill, Bunge, Nestle, Unilever, Coca-Cola, and Pepsi-Co are some of the most prominent ones. Restaurant franchises are one way of introducing new products. An increasing number of restaurant chains are opening in Turkey, especially in Istanbul. These include casual dining, fast food and cafes. While most of these companies source food ingredients produced in Turkey, some require specialized ingredients or imports of certain items that are not readily available. Exporters should check with importers to see if they are approved suppliers for franchises. Additionally, Turkeys hotel sector has traditionally represented an important niche market for certain high-value food products that cannot be readily found throughout Turkey. Turkey attracts 30 million tourists every year, especially in Istanbul and Antalya. There are 336 five star and 543 four star hotels in Turkey and most of them are located in Antalya and Istanbul. Global hotel chains including the Marriot, Hilton and Sheraton have a strong presence in Turkey. Turkey is a major tourism destination for Germans, Russians, British and Scandinavian travellers. Five star hotels would like to offer more high-quality products to their customers. Fresh fruits and vegetables are readily available in Turkey but high quality meat (especially steak) and fishery products (especially fish and crab) can be extremely difficult to source.Trader associations are also very important contacts for those seeking to enter the market. The Feed Millers Association, Turkish Food and Drink Industry Association Federation, a nd Poultry Meat Producers and Breeders Association are examples of important traders organizations. (See flank A for more details).A visit to Turkey to gain a first-hand information about the Turkish market, preferably cooccur with a major trade show such as FOODST (See attach C for more details), is a good way to get started before entering the Turkish market and meeting prospective importers. Similarly, international food shows such as ANUGA, SIAL and Gulfood area attracting more and more Turkish importers, and may also be a way to meet prospective customers.TRADE POLICYThe major barrier to selling agricultural products to Turkey is high tariff rates. The tariff for beef cuts is bound at 225%, for milk is 150%, for white cheese is 80%, and for wheat and corn is normally 130% (depending on demand, the establishment can temporarily lower tariffs).Turkey and the United States signed an import protocol allowing imports of live dairy breeding cattle and for fattening cattle. Howeve r, neither a protocol for slaughter cattle, nor for cut beef has been negotiated.Another major barrier is a new Bio safety Law which has been enforced in Turkey since September 26, 2010. The law banned importation of any GMO products until the genes contained within go through a lengthy approval process. On January 26, 2011, Turkeys Bio safety add-in approved the three biotech traits for soybeans (A2704-12, MON89788,MON40-3-2) for feed use that were approved in the European Union at the time, allowing U.S. soybeans to enter Turkey for feed use only. Then on December 24, 2011, The Bio safety Board approved 13 corn (see annex D for more information) events for feed use. The remaining 9 events have been reviewed, but due to a negative recommendation by the committees, approval will be difficult.New import regulations were published in the Official Gazette dated December 30, 2011. Changes in these regulations reflected that fact that the Ministry of Food Agriculture and Livestock (pr eviously known as the Ministry of Agriculture and Rural Affairs) was reorganized in 2011 and divided oversight of plant and animal products. According to the new import regime, plant and plant products no overnight require control surety (Find more details in Annex F) however the importer must pre-notify imports of material according to the information provided beneath. Some animal and animal products now require control certificates. A list of products which require control certificates is given in Annex E Most Turkish agriculture-related regulations, laws, communiqus, directives, and notifications are available on the website of the General Directorate of Food Control (GDFC)of the Ministry of Food, Agriculture and Livestock (MINFAL) www.gkgm.gov.tr. Some of the regulations have an English translation available on the same website.The legal infrastructure of agriculture is mainly based on communiqus rather than on laws. The reason for this is that the Turkish natural system doe s not allow laws to be adopted, amendedor abolished easily. Therefore governments have traditionally preferred to publish communiqus or regulations in order to maintain flexibility. As you will see from table below, currently the main policy goal of Turkish food and agriculture officials is to fit in the related laws and regulations with the EU Acquis Communitarians. Sometimes it appears that this concern overwhelms other concerns such as national interest and farmer interests.IMPORT DUTIESHigh tariffs on the majority of food items continue to hinder the growth of food imports from the United States (see Annex G for tariff rates of important products). Import tariffs on consumer food products range from zero to 225 percent, but most products face tariffs in the range of 40-50 percent.Turkey has considerable flexibility in raising or ominous tariffs. Consequently, tariffs are subject to review and change, especially on December 30. Tariffs can vary and often depend on whether there is a need to import or not. Turkey normally applies the highest/bound rates for some products such as meat cuts at 225%. Some products, however, like cereals, have high tariff rates at 130% although still below the bound rate of 180%. Due to high meat prices pass year, allowed imports of carcass meat (but not cuts) and lowered the customs tax from 225% to 30% at first, then slowly raised the tariff back to 75% when meat prices dropped slowly. Where there is strong demand but a need of domestic supply, the applied tariff can be very low such 8% for soybeans, and DDGS at 4.3%. Turkish corn producers and soy millers are calling on the government to raise the bound rate on DDGS but, since it is bound, they use non-tariff barriers such as standards that are difficult to meet.Two important government agencies receive special tariff quotas when acting as importer get special tariff quotas. The Turkish Grain Board (TMO) (www.tmo.gov.tr) usually procures grain from the domestic market but when there is a need to import the government allocates a special zero tariff rate import quota for TMO. The other institute is The Meat and Fish Institute (www.ebk.gov.tr), which acts to control domestic meat prices and also receives reduced tariff meat import quotas from the government when there is a need.CUSTOMS INSPECTION AND DOCUMENTATIONUpon entry of the product at Customs, the importer should be prepared to present the approved control certificate if required as well as other normal import documentation such as the bill of lading, original invoice and certificate of origin. In addition, the importer should be prepared to present Customs with the exporting companys analysis report for physical, chemical, microbiological and heavy metal content, and a certificate from the official food inspection agency of the country of origin stating that the product meets the quarantine requirements of the trade country.Turkish Ministry of Agriculture, Food and Livestock (MINFAL) official s take samples of the imported product to government laboratories for physical, chemical and microbiological analysis and confirm it matches the information supplied from the exporting country. Import of the foodstuff is allowed if the results of the analysis are found to be acceptable and consistent with Turkish regulations, and the imports have been approved by MINFAL. Results of the analysis are normally received within a few working days. If the inspection results do not match with Turkish requirements, the importer may request secondary sample tests. In the case that the secondary test results are also against the Turkish import requirements then the shipment is rejected by MINFAL authorities or they allow special treatments under specific circumstances.