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TURKEY: POSITIONED FOR BUSINESS TRADING WITH TURKEY

TURKEY: POSITIONED FOR BUSINESS TRADING WITH TURKEY. KAAN TOKAT T ÜRKİYE İŞ BANKASI LONDON London, 16 October 2007. FACTS ABOUT TURKEY. Stable economic growth (and hence, growing imports and exports) Growing population, nearly 73 million Improving quality of life

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TURKEY: POSITIONED FOR BUSINESS TRADING WITH TURKEY

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  1. TURKEY:POSITIONED FOR BUSINESS TRADING WITH TURKEY KAAN TOKAT TÜRKİYE İŞ BANKASI LONDON London, 16 October 2007 London, 16.10.2007

  2. FACTS ABOUT TURKEY Stable economic growth (and hence, growing imports and exports) Growing population, nearly 73 million Improving quality of life More stable political environment Secular state Convergence with the EU London, 16.10.2007 London, 16.10.2007

  3. LARGEST EU COUNTRIES vs.TURKEY London, 16.10.2007 London, 16.10.2007

  4. TURKEY’S RELATIONSHIP WITH THE EU AND THE IMPACT OF CUSTOMS UNION Associate member of the EEC since 1963 Full membership application 1987 Customs Union between EU and Turkey effective as of 1996 (no customs restriction on industrial goods) Became a candidate country officially in December 1999 at Helsinki Summit Accession talks began in November 2005 London, 16.10.2007 London, 16.10.2007

  5. THE IMPACT of THE CUSTOMS UNION London, 16.10.2007 London, 16.10.2007

  6. BILATERAL TRADE BETWEEN TURKEY AND THE UK (mio.USD) London, 16.10.2007 London, 16.10.2007

  7. MAIN TRADE PARTNERS OF THE UK London, 16.10.2007 London, 16.10.2007

  8. UK EXPORTS TO TURKEY- FIRST 10 ITEMS London, 16.10.2007 London, 16.10.2007

  9. PAYMENT METHODS FOR IMPORTS FROM THE UK (mio. $) London, 16.10.2007 London, 16.10.2007

  10. WEIGHT OF GBP IN TURKISH FOREIGN TRADE (figures in $) London, 16.10.2007 London, 16.10.2007

  11. BRITISH EXPORTERS’ CURRENT SITUATION Get paid in GBP only in less than a third of sales Exchange rate risk (mainly against EUR and USD) Strong GBP making British products less competitive Relatively stronger TRY Reliance on “advance payments” London, 16.10.2007 London, 16.10.2007

  12. THE PREFERENTIAL TREATMENT OF TRADE BETWEEN TURKEY AND THE EU(AND THE UK) • Industrial products qualify for preferential treatment as a result of the Customs Union • when originated in EU/Turkey • when in free circulation in EU/Turkey • ATR (a status certificate)- used in industrialised products • Agricultural products : traditional preferential arrangements • EUR1 document • Coal/steel: traditional preferential arrangements • EUR1 document London, 16.10.2007 London, 16.10.2007

  13. GENERAL ENVIRONMENT in TURKEY Fairly liberal regulations Customs Union with the EU since 1997 Payments can be made in any currency as agreed TRY a convertible currency on its own right Automated customs offices Used motor vehicles incl. cars , yachts are disallowed London, 16.10.2007 London, 16.10.2007

  14. OBJECTIVES OF IMPORT POLICY OF TURKEY • In general, to expedite the economic development, • To foster manufacturing structures that are export-oriented, technology-intensive, high added valued that comply with international standards, • To help in improving the competitiveness of the local producers in agricultural and industrial sectors which will in turn increase their production by achieving cost advantages in import of raw materials, • To protect both the end-consumer and the producer who may otherwise be adversely affected by unfair competition practices that can take place during importing London, 16.10.2007 London, 16.10.2007

  15. HOW TO BECOME AN IMPORTER IN TURKEY • Any real or legal person with a tax ID can be an importer with the below exceptions where no tax ID is required • Book importers • Importers of merchandise to be displayed at fairs and exhibitions London, 16.10.2007 London, 16.10.2007

  16. IMPORT REGIME • For definitive imports to Turkey • Two pro-forma invoices (one to be original) • Customs Statement from the relevant Customs Office • Receipt of the duties payable • For temporary imports stemming from leasing • the lease agreement • For used goods • Evaluation report prepared by the relevant Chamber of Commerce or University verifying the economic life of the underlying London, 16.10.2007 London, 16.10.2007

  17. PROS OF DOING BUSINESS WITH TURKEY Professional business partners Relatively good transportation opportunities Increasing purchasing power Growing and vibrant economy Dynamism of the population Strong export potential boosting imports Liberal foreign exchange regime since 1980s Automated customs offices Customs Union with the EU London, 16.10.2007 London, 16.10.2007

  18. POSSIBLE AREAS of INTEREST Retail: supermarkets, off-licences, upmarket brands Leisure: Golf courses, restaurants, dep’t stores, zoos, amusement & theme parks, leisure boats-equipment) FMCG: soft drinks, snacks, Other: electrical equipment British re-locating to Turkey will play a role London, 16.10.2007 London, 16.10.2007

  19. WHAT CAN HAVE A POSITIVE IMPACT Competitive pricing Good quality Better payment terms London, 16.10.2007 London, 16.10.2007

  20. FDIs to TURKEY London, 16.10.2007 London, 16.10.2007

  21. YACHT IMPORTS High duties and taxes (8% special consumption tax, 18% vat , high annual motor vehicle tax) To avoid these costs, people prefer to fly foreign flags Used yachts disallowed (like cars) London, 16.10.2007 London, 16.10.2007

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