| ||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
|
Did you know that Turkey has averaged over 7% GDP growth a year over the last five years? Did you know that Turkey has received almost $50 billion in Foreign Direct Investment (FDI) over the last three years with over 20 percent coming from the U.S. alone? Many leading experts predict that Turkey will become part of the next generation of emerging economies to achieve BRIC (Brazil, Russia, India and China) status. With the right Turkish partner, you can succeed in the Turkish market, but also in markets in the Caucasus and Middle East. As your company looks to the Turkish market, the U.S. Commercial Service stands ready to assist you. | ||||||||||||||||||||||||||||||||||||||||
|
Geographically, Turkey is strategically positioned at the crossroads of Europe, Asia and the Middle East. This location, the gateway to historical trade routes stretching to the Far East known as the Silk Road, provides U.S. exporters with opportunities to develop trade and investment relationships not just within Turkey but also in surrounding markets. As a result, Turkey is emerging as the commercial hub of Central Asia, and companies can use Turkey as a jumping-off point to business opportunities throughout Central Asia, the Middle East and the Caucasus. Aside from its location, Turkey’s increasingly complex mix of modern industry and commerce continues to attract a diverse set of American companies, ranging from mining to high technology to energy. Over the years, we have witnessed a steady increase in U.S. - Turkish bilateral trade. Today, the U.S. is Turkey’s sixth largest trading partner, with 2006 exports to Turkey totaling over $5.7 billion. Likewise, in 2006 the U.S. imported $4.2 billion from Turkey, an increase of 4.74% from 2005. This trade growth looks set to continue: through October 2007 the U.S. exported $5.3 billion in merchandise to Turkey and imported $3.8 billion. Economic growth has been and will continue to be primarily driven by private sector investment and continued trade expansion. Excellent opportunities exist for U.S. exporters in telecommunications services and equipment; significant recent privatizations & foreign investment in this area will mean expansion and upgrades. Opportunities also exist in Turkey’s energy sector in distribution of electricity and gas, power generation and renewable energy; safety and security equipment and services; the automotive aftermarket, and medical devices, among others. In recent years, Turkey’s market reforms, strong growth and economic and political stability have attracted a surge in Foreign Direct Investment (FDI). 2006 was a banner year for FDI, which reached $19.8 billion, over $3.7 billion of which was from the U.S. The year 2007 should also result in approximately another $20 billion in FDI. A remarkable element of recent Turkish economic growth has been the substantial and continual decline in inflation. In 2002, inflation was over 70%. By 2005, inflation had dropped to 7.5%, the lowest level in 35 years. The Central Bank of Turkey has displayed a continued commitment to keep inflation rates low, with close monitoring and appropriate policies. As of July 2007, the inflation rate had continued to decrease to 6.9%. Concerted efforts have been made to improve the investment environment. The government instituted major structural reforms to address micro-level challenges. Reform priorities include increasing the role of the private sector in the economy, and initiatives to improve corporate governance, further deregulation, reduce administrative barriers and increase the efficiency of the judicial process are on the horizon to help improve the business climate. Finally, the government is working on privatizing previously public sector-owned and dominated organizations and industries. In 2005, the sale of 55% of Turk Telecom for $6.55 billion was finalized and marked the largest privatization effort in Turkey. Continued privatizations will create opportunities for American investors, suppliers, service providers and contractors in several sectors, including banking, communications, energy, manufacturing, infrastructure, and real estate. On October 3, 2005, the European Union (EU) and Turkey began formal EU Accession negotiations. Turkey has adopted many EU directives, regulations and laws to bring it more in alignment with EU standards and objectives. Continued commitment to EU membership will benefit the EU, and is an important factor in ensuring that Turkey continues on the path of economic reform, market liberalization and growth. | ||||||||||||||||||||||||||||||||||||||||
Map of Turkey | ||||||||||||||||||||||||||||||||||||||||
|
Area: 780,580 sq. km
Population: 72.9 million (2006) GDP
Annual GDP Growth Rate
GDP per Capita
Exports
Imports
Major Trading Partners: Germany, U.S., Italy, France, Russia, Japan, Netherlands, U.K. US exports to Turkey: $5.7 billion (2006) | ||||||||||||||||||||||||||||||||||||||||
|
The Republic of Turkey is a complex and challenging market requiring adaptability and persistence. U.S. exporters face many of the same challenges that exist in other medium-developed countries, such as occasional contradictory policies and documentation requirements, lack of transparency in tenders and other purchase decision-making, and an inconsistent judiciary and legal and regulatory framework. Careful planning and patience are the keys to succeed in Turkey. 2007 has been a turbulent year for Turkish politics. Much debate has surrounded the parliamentary and presidential elections held this year. However, the Justice and Development Party (AK), responsible for carrying out many of the reforms that have made Turkey’s remarkable success possible, was reelected largely on the basis of the country’s economic performance, and has committed to continued economic liberalization. | ||||||||||||||||||||||||||||||||||||||||
Market Opportunities and Best Prospects The Republic of Turkey’s movement toward membership in the European Union is creating momentum to adopt European business regulations and standards in Turkey, thereby making it easier to sell and conduct business in this market. Similarly, reforms since 2001 have created a strong and stable economy that attracts foreign investment, which in turn will be followed by desperately needed capital improvements and demand for new products and services. The U.S. Commercial Service in Turkey has identified a number of market opportunities for U.S. firms and continues to work with companies in either entering the Turkish market or expanding market share. Some of the most lucrative sectors for U. S. export and investment include: | ||||||||||||||||||||||||||||||||||||||||
|
To enter the Turkish market, most U.S. companies first opt to have a local representative or liaison office. As the business develops, companies open up subsidiaries. Companies rely on local experience and knowledge as to how business is done in this market. Knowing the regulatory and business framework is a difficult task without the support of a local business partner. The U.S. Commercial Service has a number of programs and services available to assist the U.S. business community in establishing a presence in this market. In addition, the U.S. Commercial Service in Turkey employs experienced Commercial Specialists with industry sector expertise that can tailor your business approach. For example the can advice and steer your company through the often less than transparent bureaucratic procedures that are common in Turkey. To find out more about what we can do to help you with one of our leading trading partners, please visit our web site at www.csturkey.com and www.buyusa.gov/turkey/en. | ||||||||||||||||||||||||||||||||||||||||
|
American Business Forum in Turkey Turkey Investment Promotion Agency | ||||||||||||||||||||||||||||||||||||||||
|
Visit our website www.csturkey.com Jim Fluker, Commercial Counselor | ||||||||||||||||||||||||||||||||||||||||
