1

Business with Turkey

and

the Commercial Counsellors Office

ZEYNEP YONDEM Commercial Counsellor

Turkish Embassy

2

31.336.1

63.2

73.5

107

47.3

85.5

27.8

25.0%33.7%

4.5%12.8%

15.1%

31%

16.3% 16.4%

2000 2001 2002 2003 2004 2005 2006 2007

Turkish Exports(billion USD and % change)

3

Exports by sectors

Sectoral Breakdown of Turkish Exports

(%)

INDUSTRIAL82.3

Textiles & Clothing

Machines & Vehicles

Iron&Steel

Chemicals

Other Ind.

MINING

AGRICULTURAL

OTHERS1,1

22

31.5

9.44,5

14,9

8.1

8.5EXPORTS FROM TR TO UK

Textiles and Clothing: 37 %

Automotive Industry: 17 %

TVs and white goods: 14 %

Fresh&dried vegetables: 4 %

4

69.3

97.5

139.5

170

116.7

51.519.4%

24.5%

34.5%

40.7%

31%21.8%

2002 2003 2004 2005 2006 2007

Turkish Imports(billion USD and % change)

5

Imports by sectors Capital Goods, 15.90%

Consumer Goods, 11.00%

Intermed. Goods, 72.70%

Oil and natural gas: 19,1 %

Chemicals: 13,3 %

Automotive Products: 8,0 %

Other vehicles and Transp. Eq.: 15,2%

Office machines and telecom Eq. : 4,8 %

Electrical machinery and apparatus: 3,7 %

IMPORTS FROM UK TO TR

Automotive: 30 %

Chemicals: 18.4 %

Other mach. and vehicles: 16.3 %

Metal Ores and Scrap: 10.3%

Non-electrical machinery: 10 %

Pharmaceuticals: 7 %

6

Turkey and EU

Customs Union has been established between Turkey and EU since 1996.

Accession negotions has started since October 2005.

Turkey will align to the EU acquis communatutaire.

Free circulation of industrial products

Preferential regime applies in agricultural products

Common customs tariff applies to third countries

VAT is paid in importing country

ATR (Industrial products), EUR1 (Agricultural products)

7

Trade with UK

UK is 2nd largest export destination and 8th largest import source of Turkey

8.1

5.2 5.46.8

2006 2007

Exports Imports

Trade with UK

(billion USD)

8

Business Possibilities

Trade

Outsourcing

Partnerships

Distribution Base

9

Automotive

Different types of passenger cars, commercial vehicles, buses, tractors are being produced

Already a major production base with Turkish brands like BMC, TEMSA, OTOKAR, TIRSAN

Production for global brands like MAN, MERCEDES, HONDA, TOYOTA, FORD, FIAT, RENAULT

Customized production and design schemes

Fast delivery

Auto spare part industry has an extensive and experienced production base

10

Machinery

Strong infrastructure of casting industry with companies spread over the country

Flexible production structure

Short delivery times

Consistent quality

Traditional exporter industry

Need for OEM partners for outsourcing

11

Distribution Base

Logistics

An excellent location to be a regional distribution base

Provides access to major markets

Superior logistics infrastructure compared to the region

Ranks high in the region according the Logistics Performance Index of the World Bank.

Europe

GDP: 14,801 Billion $

Popln: 657 million

Middle East& Africa

GDP: 1.258 Billion $

Popln: 311 million

Central Asia& Caucasia

GDP: 113 Billion $

Popln: 75 million

Russian F.

GDP: 766 Billion $

Popln: 144 million

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Doing business

Established export culture

Exports: 60%EU+10% Non-EU Europe

Proven quality

Familiarity to European business culture, expectations, standards

Practicalities of Customs Union

Proximity

Delivery times, communication

Minimum language barrier

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Office of the Commercial Counsellor

The services offered to UK companies are;

Practical business data

Guide to do business in Turkey

Business ethics

Trading and economic highlights

Exhibitions, major events

www.turkishtrade.gov.uk

14

Office of the Commercial Counsellor

The services offered to UK companies are;

Market and sector information

Market data

Sector reports

Supplier information

Sector bodies and associations

www.turkishtrade.gov.uk

15

Office of the Commercial Counsellor

The services offered to UK companies are;

Information about rules and regulations

Import-Export legislation

Customs

Standards

Regulatory bodies

Trade related tax issues

www.turkishtrade.gov.uk

16

Office of the Commercial Counsellor

The services offered to UK companies are;

Assistance for finding business partners

Providing potential partner lists from different and reliable sources

Matchmaking

Business advice

www.turkishtrade.gov.uk

17

Office of the Commercial Counsellor

The services offered to UK companies are;

Trade mission organizations

Missions held simultaneously with major international exhibitions

Funded by Turkish government

Programs include, briefings, bilateral business meetings, site and exhibition visits

Trip logistics arranged

www.turkishtrade.gov.uk

18

Business with Turkey

and

the Commercial Counsellors Office

ZEYNEP YONDEM Commercial Counsellor

Turkish Embassy

Thank You..