Foreign Trade

Balance of Payments

Financing of Current Account Deficit (USD billion)
	2003	2004	2005	2006	2007	2008	2009	2010
1. Current Account Balance	-7.5	-14.4	-22.3	-32.2	-38.4	-42	-14	-48.5
2. Total Capital Inflows (Excluding Currency and Deposits & Reserve Assets)	6.4	20.1	37.7	48.5	48.2	45.3	3	43.3
FDI Inflows	1.7	2.8	10	20.2	22	19.5	8.4	9.1
External Borrowing of Non-Bank Private Sector (net)	2.3	7.7	12.6	17.1	28.7	26	-12.9	-5.2
Other (net)	3.1	9.7	15.1	11.2	-2.5	-0.2	7.4	39.4
3. Errors and Omissions	4.5	1.1	2.8	0.2	1.8	4.7	5.1	4.6
4. Currency and Deposits	0.7	-6	-0.3	-10.3	-3.5	-9.1	6.1	13.5
5. Change in FX Reserves	-4	-0.8	-17.8	-6.1	-8	1.1	-0.1	-12.8

Source: Central Bank of the Republic of Turkey (CBRT)

Current Account Deficit / GDP (%)

Source: Central Bank of the Republic of Turkey (CBRT), Undersecretariat of the Treasury
(*) with 2002 energy prices

Exports and Tourism Revenues

Export and tourism revenues have increased at a record pace over the last few years.

Exports and Tourism Revenues (USD billion)

Source: Turkish Statistical Institute (TurkStat)

In 2008, Turkey’s exports and imports reached an all-time high; exports increased by 23 percent, reaching USD 132 billion, while imports rose by 19 percent, hitting USD 202 billion. In 2009, the year of the global financial crisis, Turkey managed to secure USD 102 billion of exports and USD 141 billion of imports. In 2010 exports grew by 12 percent to reach USD 114 billion.

Foreign Trade Statistics

USD million
	2003	2004	2005	2006	2007	2008	2009	2010
Exports (FOB)	47,253	63,167	73,476	85,535	107,272	132,002	102,143	113,930
Imports (CIF)	69,340	97,540	116,774	139,576	170,063	201,961	140,929	185,493
Foreign Trade Volume	116,593	160,707	190,251	225,111	277,334	333,963	243,072	299,423
Foreign Trade Balance	-22,087	-34,373	-43,298	-54,041	-62,791	-69,959	-38,786	-71,563
Exports / Imports (%)	68.1	64.8	62.9	61.3	63.1	65.4	72.5	61
Exports / GDP (%)	15.5	16.2	15.3	16.2	16.5	17.8	16.5	NA
Imports / GDP (%)	22.7	25.0	24.3	26.5	26.2	27.2	22.8	NA

Source: Central Bank of the Republic of Turkey

Due to the implementation of the liberalization process since the 1980s, the Turkish economy has experienced a period of substantial growth. Foreign trade, in respect of both exports and imports, has grown rapidly and notable changes in the structure of exports have been observed. In this regard, industrial products have gained prominence over agricultural products.

Turkey became a member of the World Trade Organization (WTO) in 1995. Following this move, it finalized an agreement with the European Union, enabling it to join the Customs Union on January 1, 1996.

Exports

In line with the policies implemented as part of the export-led development model followed since 1980, exportation has become important to Turkey in both qualitative and quantitative terms.

Starting in particular in 1980 and continuing up to the mid-1990s, significant developments have been observed in the market share held by labor-intensive industrial products such as textiles and clothing, iron and steel, and foodstuffs.

In 1996, following the establishment of a Customs Union with the European Union, Turkey's exports entered a new structural transformation process. Developments in recent years show that production and exportation have increased substantially in high-technology sectors, where goods include electrical and electronic machinery and equipment, as well as in the automotive industry. In this respect, it can also be observed that the export market share of manufactured industrial products has increased.

Exports by Economic Activity

USD million
	2003	2004	2005	2006	2007	2008	2009	2010
Agriculture and Forestry	2,121	2,542	3,329	3,481	3,725	3,937	4,347	4,941
Fisheries	81	103	140	131	158	240	189	156
Mining and Quarrying	469	649	810	1,146	1,661	2,155	1,683	2,677
Manufacturing	44,378	59,579	68,813	80,246	101,082	125,188	95,449	105,518
Other	204	294	384	531	646	507	474	63
Total	47,253	63,167	73,476	85,535	107,272	132,027	102,142	113,929

Source: Turkish Statistical Institute (TurkStat)

Exports by Country Groups

USD million
	2003	2004	2005	2006	2007	2008	2009	2010
Total Exports	47,253	63,167	73,476	85,535	107,272	132,027	102,129	113,930
A-EU Countries	27,394	36,581	41,365	47,935	60,399	63,390	47,013	52,670
B-Turkey's Free Zones	1,928	2,564	2,973	2,967	2,943	3,008	1,957	2,082
C-Other Countries	17,931	24,022	29,137	34,633	43,930	65,622	53,172	59,177
Other European Countries	3,362	4,507	5,855	7,962	10,843	15,678	11,318	11,388
Africa	2,131	2,968	3,631	4,566	5,976	9,063	10,154	9,302
North African Countries	1,577	2,203	2,544	3,097	4,030	5,850	7,416	7,042
Other African Countries	554	765	1,087	1,469	1,947	3,212	2,739	2,260
Americas	4,269	5,733	5,960	6,328	5,603	6,532	4,878	6,085
North American Countries	3,973	5,207	5,276	5,439	4,541	4,802	3,578	4,249
Central American Countries and the Caribbean	166	334	411	548	549	829	622	599
South American Countries	131	193	274	341	514	901	678	1,237
Asia	7,813	10,465	13,213	15,257	20,309	32,505	25,898	31,899
Near and Middle Eastern Countries	5,465	7,921	10,184	11,316	15,081	25,430	19,193	23,320
Other Asian Countries	2,348	2,544	3,029	3,942	5,227	7,074	6,706	8,578
Australia and New Zealand	158	264	271	327	343	435	362	403
Other Countries	197	84	208	192	857	1,410	561	102
Selected Country Groups
OECD Countries	30,425	40,518	44,355	54,481	65,675	70,472	55,832	61,491
EFTA Countries	538	667	821	1,189	1,328	3,262	4,336	2,420
Organization of the Black Sea Economic Cooperation	5,044	6,779	8,619	11,584	16,784	20,867	12,273	14,464
Economic Cooperation Organization	1,569	2,206	2,670	3,341	4,700	6,248	5,948	7,617
Commonwealth of Independent States	2,963	3,962	5,057	6,993	10,088	13,938	7,957	10,295
Turkic Republics	899	1,194	1,409	1,982	2,874	3,749	3,399	3,922
Organization of the Islamic Conference	7,205	10,214	13,061	15,007	20,311	32,597	28,627	32,509

Source: Turkish Statistical Institute (TurkStat)

Imports

The Turkish import regime highlights the liberalization of Turkish imports in line with its commitment to complete the Customs Union with the EU, its relationship with EFTA, and its obligations under the World Trade Organization (WTO). Turkey has placed special emphasis on its commitment to reduce customs duties in order to align itself with the Common Customs Tariff. Turkey has made some necessary modifications to its import regime, and by January 1, 1996 the Customs Union with the EU became effective.

The basic aims of Turkey’s import policy since the early 1980s can be summarized as follows:

To reduce protectionist measures in conformity with the new GATT rules
To reduce bureaucratic procedures
To secure a supply of raw materials and intermediary goods at suitable prices with certain quality standards

Turkey's Membership of International Trade Organizations

Turkey has been a member of the World Trade Organization (WTO) since 1995. The country’s commitment to integrating regional and international trade norms can be seen in its participation in and membership of various organizations, including the Economic Cooperation Organization (ECO), the United Nations Conference on Trade and Development (UNCTAD), the Organization of the Black Sea Economic Cooperation (BSEC), the World Customs Organization (WCO), the International Chamber of Commerce (ICC), D-8, and various other organizations.

In addition to the Customs Union with the EU, Turkey has signed Free Trade Agreements (FTA) with Iceland, Norway, Switzerland and Lichtenstein, Georgia, Israel, the Former Yugoslav Republic of Macedonia, Croatia, Bosnia-Herzegovina, Tunisia, Morocco, the Palestinian Authority, Syria, Egypt, Albania, Montenegro, Serbia, Chile, Jordan, and Lebanon (where Lebanon is in the ratification process).

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