3/26/2008

Foreign investors to benefit from trade law

Referans - Turkey's trade law, passed Jan. 1, 1957, is expected to change dramatically next month, a development that is particularly pleasing to foreign investors. The new trade bill, under preparation for the last five years, is expected to save foreign investors from double taxation, carry the fight against unfair competition to a global platform and secure the compliance of the financial reporting system with European Union standards. The bill, which will tighten audits, is also expected to bring legal status to holdings and ease the procedures to found a company. Though holdings have been part of Turkey's economic life since 1964, they are not defined in the current law. The current law underwent many changes during the last five decades. Updated now by several academics, utilizing suggestions from nongovernmental organizations and companies, the new trade bill consists of 1,553 articles. Prepared in line with global financial developments, the law will ensure commerce complies with EU norms. The new trade bill is the most extensive reform within the EU harmonization process, said Lerzan Yilmaz, a lecturer from Marmara University's law department. Once the bill becomes a law, foreign investors will feel more secure, she said. “Foreign investors prefer to be involved in a system that complies with the laws of their homeland,” Yilmaz said.