Foreign Trade


Beginning from the year 1980, Turkey changed its economic development policy from “import substituting industrialization” to “export led growth” strategy. Economy opened up to world trade, export-promoting incentives were initiated (including tax exemptions, rebates and favorable credit terms), direct import controls have been eliminated, and quantity restrictions have been dismantled. State intervention in the economy was reduced to minimum level.

As a result of these efforts, Turkey has increased her share from world markets, from 0,15% in 1980 to 0,6% in the year 2003. Between 1980 and 2004 exports of Turkey has increased from 2,9 billion dollars to 63 billion dollars. Structure of exported goods has also changed much from mainly agricultural products and raw materials to higher value added industrial products. Transformation still continues with increasing exports of transportation vehicles and office equipments.

Following the Copenhagen European Council, the EU revised the Accession Partnership for Turkey and approved it in April 2003. In this context, Turkey revised its National Program taking into account the new Accession Partnership. The new National Program was published in the Official Journal of 24 July 2003.

In the context of the National Program, the harmonization efforts in the areas of democratization, human rights, liberal economic policies and internal market accelerated.

European Commission published its Regular Progress Report on Turkey for 2004 and its recommendation on 6 October 2004. In the document "Recommendation of the European Commission on Turkey’s Progress Towards Accession”, which formed the basis for the decision of European Council on 16-17 December 2004, it is indicated that Turkey sufficiently fulfils the political criteria and the EU Commission recommends that accession negotiations be opened.

In line with the Commission Recommendation of 6 October 2004, the European Council of 16-17 December 2004, decided to initiate accession negations with Turkey on 3 October 2005.

Accordingly, on a request by the Council, the Commission released a draft negotiation framework on 29 June 2005. As the draft negotiation framework must be ratified by all member states first the European Commission also launched a civil society dialogue between member countries and candidate countries due to concerns emanating from EU public opinion about membership or accession of new countries to the Union.

Shortly after the release of the negotiation framework, on 29 July 2005, Turkey signed the Additional Protocol with a view to adapting Ankara Agreement considering the EU’s enlargement of 1 May 2004. Accordingly, in addition to the existing member states, Turkey-EU Customs Union has become applicable between Turkey and the new acceding countries as well.

Within the context of globalization, Turkey has been pursuing an outward-oriented development scheme and export-led growth since 1980. By virtue of the comprehensive structural adjustment program, among other measures, restrictions on imports have been lifted, safeguard practices reduced and foreign exchange transactions liberalized. By abandoning import substitution policies, Turkey has experienced major developments in its foreign trade.

On the path of becoming a completely open economy, Turkey has been searching for new markets and networks within a broader spectrum extending from the Far East to Latin America.

As a result of the economic reforms carried out during the last two decades, both the volume and composition of the Turkish trade have radically changed. In the process, the volume of Turkish exports has increased more than 20 times.

This trend seems to be continuing when looked at the following data: In 2006, total foreign trade volume was around USD 230 billion. It is expected that trade volume may reach USD 300 billion by the end of 2007.

As of October 2007, export was USD 86 billion, and import was USD 137 billion. Compared to the same period of previous year there has been an increase by 20.5% in export, and 20.9% in import. Trade deficit reached USD 50 billion.

Moreover, while Turkish exports had mainly been composed of agricultural products in the 1980s, manufactured goods now constitute around 90% of Turkish exports, indicating the structural transformation of the Turkish economy. Textiles still being the predominant sector, export products have been diversified to include iron and steel, glass and ceramic ware, leather and leather products, household appliances and vehicles and vehicle spare parts.

The main principles of Turkish import policy are the reduction of bureaucratic procedures in compliance with GATT94 rules and the securing of supply of raw materials and inter-mediary goods at suitable prices with certain quality standards.


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(Last updated February 5, 2008 )