Export to Turkey

 

Now we’re really talking Turkey

Providing a centuries-old bridge between Europe and Asia, Turkey is developing with more than just a hint of Eastern promise. With the 17th largest economy in the world, it is one of the most attractive and dynamic overseas markets for British goods and services. In 2017, Turkey’s growth rate is at 6.1 per cent. The Turkish economy grew 11.1 percent year-on-year in the third quarter of 2017, accelerating sharply from an upwardly revised 5.4 percent expansion in the previous three-month period and beating market expectations of 10 percent. It was the strongest pace of expansion since the third quarter of 2011, boosted by household consumption, fixed investment, exports and government spending.

With a population of 80 million and a well-educated and young workforce, the country is already a member of the EU Customs Union and is negotiating hard for full membership. However, it faces geo-political pressures with its neighbours including Syria and Iraq.

Direct foreign investment is likely to reach £11 billion this year, matching last year’s figures.

Turkey has seen a wholesale modernisation of its economy and business sector. During 2013-2017 period, more than 310,000 firms were established. Turkey is the UK’s 16th largest bilateral trade partner.

The key export opportunities for British companies are in technology, financial and professional services, smart cities, ICT, advanced engineering, retail and consumer goods, oil and gas sectors.

Industry and manufacturing now form a central plank of Turkey’s economy and account for a large slice of trade with Europe. Turkey’s economy consists of very diversified services sectors including real estate and financial services along with health and education. Key political, economic and legal reform is taking place.

The government’s official policy is to reduce reliance on imports of manufactured goods and ramp up its own domestic capabilities with a longer term view of becoming a global exporter of hi-tech goods. Another long term aim is for Turkey to become a key European energy hub. The total proved oil reserves of the world were 1,696.6 billion barrels in 2017.  Turkey is geographically close to 73% of the world’s oil and gas reserves. It is adding new pipelines to double this capacity and is planning to open up a Southern Gas Corridor to link Europe with the Middle East and Caspian regions. The current and upcoming oil pipeline projects are the following: Iraq – Turkey Crude Oil Pipeline, Baku – Tbilisi – Ceyhan Crude Oil Main Export Pipeline, Trans – Anatolia Natural Gas Pipeline Project, TurkStream Gas Pipeline.

The current value of trade between Turkey and the UK is around £18,164 billion in 2017.The UK enjoys a number of large business links with Turkey including BP, Shell, Vodafone, Unilever, BAE, Aviva. Big High Street retail players include Harvey Nichols, M&S and Laura Ashley.

Selecting distributors, partners and identifying investment opportunities does require in depth knowledge of the Business culture and potential risks. Although much less of a risk due to compliance with EU rules and legislation, Bribery, corruption and fraud still need to be considered in Turkey in order not to compromise the UK’s far-reaching UK Bribery Act 2010, which imposes stiff penalties on firms found guilty of corrupt practices – even if they are unaware of it. Businesses need to be vigilant in the early stages of their market entry strategies and seek advice and guidance from your Chamber Associate member in Turkey (The British Chamber of Commerce Turkey) who can provide a range of services including Due Diligence.  

 

Chamber International's partner, The British Chamber of Commerce Turkey, provides full support for UK companies interested in exploring Turkey.

Contact us for further details.

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