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Photo: Istanbul
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Table of Contents
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Introduction: Turkey -- A Bridge Between East and West
There are few countries in the world that share Turkey's geo-strategic position as a bridge between east and west. This makes Turkey one of the most exciting trade centers in the world, as it connects Europe with the Caucuses, the Commonwealth of Independent States, the Middle East and Central Asia.
Turkey's geo-strategic position, coupled with a large domestic market and a Customs Union with the European Union (EU), offers numerous opportunities for American firms. U.S. exports to Turkey enjoy relatively lower tariffs on manufactured imports averaging less than 5 percent. In addition, the average level of duties between Turkey and the EU and European Free Trade Area (EFTA) has dropped to zero. Consequently, an increasing number of businesses are attracted to Turkey to take advantage of duty-free access to the wider European market. Today, the U.S. is Turkey's fourth largest trading partner.
Although approximately 45.5 percent of all imports into Turkey originate from EU countries, the U.S. exports to Turkey totaled $2.9 billion in 2003. Reduced trade barriers and increased trade between Turkey and its neighbors provide American exporters a unique opportunity to use Turkey as a springboard to South East Europe, Eurasia and beyond.
Turkey at a glance
| Total Area |
780,580 sq km |
| Population |
68,893,918 (July 2004 estimate) |
| GDP |
$455.3 billion (purchasing power parity) (2003 estimate) |
| Real GDP Growth |
5% (2003 estimate) |
| Inflation |
18.4% (2003 estimate) |
| GDP by sector |
agriculture 11.9%, industry 29.6%, services 58.5% (2002 estimate) |
| Currency |
Turkish Lira (TRL) |
Exports-Commodities |
apparel, foodstuffs, textiles, metal manufactures, transport equipment |
| Imports-Commodities |
machinery, chemicals, semi-finished goods, fuels, transport equipment |
| U.S. exports to Turkey |
3,106,761,000 (2001), 3,106,642,000 (2002), 2,904,305,000 (2003) |
Source: CIA, U.S. Commercial Service
Best Prospects for U.S. exporters
The current top five U.S. exports to Turkey are cotton/yarn/fabric, machinery, aircraft, electrical machinery, and medical equipment. Best prospects for U.S. exporters exist in the following sectors:
Telecommunications Services and Equipment
Natural Gas Transmission, Distribution, Storage and Trade
Automotive Parts/ Service Equipment
Information Technology
Safety and Security Equipment and Services
To learn more about your sector's competitiveness in Turkey, click here.
Find Your Niche in Turkey
Turkey is moving away from its traditional expertise in textiles and apparel to more technology intensive sectors. The U.S. has maintained a significant standing in Turkey as one of its large trading partners, and excellent opportunities exist for U.S. exporters interested in the Turkish market.
Information technology remains one of the leading sectors offering excellent opportunities for U.S. firms. In 2003, Turkey boasted more than four million Internet users, a figure that is estimated to increase to five million in 2004. The information technology market in Turkey is growing, and experts predict that more and more small and medium-sized enterprises in Turkey will invest in information technology. Turkey has also grown into a natural crossing point between European and Middle Eastern information technology businesses. For example, Bilisim, an Istanbul-based technology fair, has become the second-largest fair of its kind in Europe, attracting more than160,000 visitors in 2004.
There are three main areas in the Turkish information technology sector that promise to be major growth areas in the coming years: e-commerce, educational hardware, and IT infrastructure. U.S. businesses are poised to take the lead in the development of these sectors and establish competitive advantages that will lead to expanding activity in the Turkish market. U.S. businesses will have the rare opportunity to "get in on the ground floor" of the development of Turkey's technological resources. Programs like the Basic Education Project, which is funded by the World Bank and aims to establish IT classrooms in 3,000 schools throughout the country, will offer tremendous opportunities to U.S. businesses in this sector.
Opportunities also exist in Turkey's energy sector as it relates to the distribution of gas; safety and security equipment and services; and building materials. The Turkish Government's issuance of licenses to private operators for the distribution of gas, and the planned privatization of Turkey's Electricity Production Company's, EUAS, power plants and electricity distribution grids also offers interesting prospects for foreign companies. Likewise, the total market for safety and security equipment and services is projected to grow by a healthy 25% annually over the next several years, thus offering good commercial opportunities for U.S. exporters.
Doing Business in Turkey
Under new laws, foreigners can invest, engage in commercial activities, participate in partnerships, purchase shares, open branch offices, and establish liaison offices in Turkey. Joint ventures and licensing arrangements are also common. The U.S. Commercial Service offices are ready to help companies identify a suitable method of entry into this market.
Photo: Izmir
• Marketing Your Products
One of the most efficient ways to enter the Turkish market is through the appointment of a qualified local representative or distributor. Although Istanbul is the business and financial capital of Turkey, significant opportunities exist throughout Turkey. Therefore it is imperative to appoint qualified agents either on a regional basis or for certain designated areas or cities.
Each year Turkey hosts many international trade promotional events, which offer excellent opportunities for the U.S. companies to assess competition and promote their products. In addition, the U.S. Commercial Service offices in Turkey are well situated to help American companies identify suitable representatives through its International Partner Search Service.
Most government procurement is done through the public tender system. Personal contacts also play an important role in cultivating new customers and cementing ties with existing clients.
• Nuts and bolts of getting your products into Turkey
It is common for exporters to initially introduce their products into the Turkish market through temporary imports. Generally, product samples are allowed temporary duty-free entry into Turkey if they have no commercial value and are easily identifiable as samples only. Customs authorities are often rigid in their interpretation of regulations, therefore, it is recommended to use an experienced customs broker of freight forwarder to prepare the shipping documents. The U.S. Commercial Service can help your company navigate the shipping process.
SME’s are Welcome!
Small and medium-sized companies (SMEs) in the U.S. are well positioned to take advantage of opportunities in Turkey's increasingly liberal economy. The U.S. Commercial Service offices in Turkey are ready to help ease SME's entrance into the Turkish market. Magnatone is one such SME that succeeded in penetrating the Turkish market with CS Turkey's assistance. In 2004, Magnatone, one of the oldest existing manufacturers of custom hearing aids, contacted CS Turkey concerning a bid to supply hearing aids to Turkey's Ministry of Health. Through a series of counseling sessions, CS Turkey's staff guided Magnatone through Turkey's public procurement law followed by strong advocacy support to ensure a level-playing field. As a result, Magnatone won the contract from the Ministry of Health to supply hearing aids in Turkey.
Contact Us Today!
The U.S. Department of Commerce's offices in Ankara, Istanbul and Izmir are working hard to lay the foundation of a strong US investment in Turkey's technology sector. The staff has conducted research and established contacts to facilitate the entrance of more U.S. firms into the Turkish market. U.S companies are encouraged to use the Commercial Service as a point of contact as they prepare to enter the Turkish market. The experts from the U.S. Commercial are ready to advise US businesses about how to do business in Turkey and guide them through the process of making contacts, negotiating bureaucracy, and establishing profitable and sustainable business interactions.
Ankara
U.S. Commercial Service
U.S. Embassy
Atatürk Bulvari No . 110
06100 Kavaklidere
Ankara , Turkey
Tel : [90] (312) 455 55 55/2467
Fax: [90] (312) 467 13 66
E-mail: Ankara.Office.Box@mail.doc.gov
Istanbul
U.S. Commercial Service
Istinye Mahallesi
Kaplicalar Mevkii No. 2
Istinye Istanbul
Turkey TR-34460
CS Istanbul direct telephone: [90] (212) 335-9040
Consulate Switchboard: [90] (212) 335-9000
CS Istanbul direct fax: [90] (212) 335-9103
E-mail: Istanbul.Office.Box@ mail.doc.gov
Izmir
US Commercial Service
Izmir Chamber of Commerce
Atatürk Caddesi, No:126, 5th floor
35210 Pasaport
Izmir, Turkey
Tel: [90] (232) 441 24 46
Fax: [90] (232) 489 02 67
E-mail: Izmir.Office.Box@ mail.doc.gov
Visit www.buyusa.gov/turkey/en to learn more about our services!
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