Foreign Trade News from Turkey

Moody\'s upgrades Greece\'s bonds two notches on better outlook.. Credit ratings agency Moody\'s raised Greece\'s government bond ratings.

 Credit ratings agency Moody\'s raised Greece\'s government bond ratings by two notches Nov. 29, citing improved public finances and a better economic outlook. Moody\'s action lifts Greece\'s ratings from "C," the lowest possible level, to "Caa3," which is still in sub-prime status. The outlook for the rating is "stable." The higher rating was warranted, according to Moody\'s, after Greecetook steps to improve its fiscal condition, reducing its headline deficit 74 percent since 2009 and targeting a primary surplus of close to 1.5 percent of GDP in 2014.  Moody\'s also said there was evidence the Greek economy was "bottoming out after nearly six years of recession" and that the medium-term prospects have also improved. Finally, Moody\'s cited a much-reduced interest burden following a restructuring of the country\'s debt. On Friday, Greek Finance Minister Yannis Stournaras told reporters that Greece hoped to reach an agreement on a deal to unlock a $1.4 billion in financial bailout aid by the end of this year. The negotiations are with the so-called creditor troika - the European Union, International Monetary Fund and European Central Bank. Athens disagrees with creditors on the level of a forecasted financing gap for 2014 and on the measures needed to cover it.

Source:Hurriyet Daily News

The Eighth Meeting of the Investment Advisory Council was Held ( October 31,2013 ).

The International Advisory Council which was founded to strengthen Turkey’s global investment position and to bring an international point of view to the efforts towards improving Turkey’s investment climate, held its eighth meeting on October 31, 2013 under the chairmanship of Prime Minister HE Recep Tayyip Erdoğan, in İstanbul. President of the World Bank as well as high level executives from a number of multinational companies attended the meeting held at the Prime Minister’s offices at Dolmabahçe Palace. Council members expressed that Turkey’s policies towards sustaining economic stability has inspired a number of countries, strengthened Turkey’s position among developing economies and this was reflected by the FDI inflow figures. The President of the World Bank Mr. Jim Yong KIM, 16 top tier multinational company executives from 10 countries and 12 sectors and presidents of the private sector representatives of YOİKK, namely TOBB, TİM TÜSİAD and YASED attended the meeting.  Throughout, the council members made important recommendations to enhance Turkey’s investment climate. In the press conference held after the meeting, The Minister of Economy HE Zafer Çağlayan stated that the meeting was productive and the issues raised by the Council members will be considered with priority in shaping the future investment policies. Made public at the press conference, The Declaration of the Eighth International Advisory Council Meeting included the recommendations of the Council members and outlined future areas of study.

The Declaration of Outcomes List of Participants  

Source: Republic of Turkey Ministry of Economy 

Foreign Trade Expectation Survey of 4th Quarter, 2013 (October 11, 2013 ).

Foreign Trade Expectation Survey (DTBA) reflects assessments of Turkish foreign trade depending on recent and current situations along with future expectations of leading firms. Particularly, it helps to produce indices which can be stated as leading indicators. Export Expectation Index increases by 8.6 points to 109.6 in the 4th quarter of 2013 from 101 in the 3rd quarter. Diffusion indices of Survey questions composing the Export Expectation Index show that, in the 4th quarter of 2013, in comparison to the 3rd quarter, expectations regarding exports and export orders of the next 3 months along with the level of current export orders have increasing effects over the Index, while the level of export orders belonging to the last 3 months has a decreasing effect. Import Expectation Index decreases by 7.1 points to 106.2 in the 4th quarter of 2013 from 113.3 in the 3rd quarter. In the 4th quarter of 2013, in comparison to the 3rd quarter, among the Survey questions identifying the Import Expectation Index: import expectations of the next 3 months, the level of current import orders and the level of import orders of the last 3 months have decreasing effects over the Index, while expectations regarding unit import price have an increasing effect. Source: Republic of Turkey Ministry of Economy 

Turkey-Kosovo Free Trade Agreement (FTA)(September 27,2013).

Turkey-Kosovo FTA, the negotiations of which was initiated in September 2012, is signed by Turkish Ministry of Economy H.E Zafer Çağlayan and Kosovo Deputy Prime Minister and Minister of Trade and Industry H.E Mimoza Kusari Lila on the date of September 27th, 2013, in Ankara. It is aimed that the Parties will complete their internal ratification procedures and put the Agreement in force within the year 2014.

In accordance with Agreement Turkey will eliminate customs duties on all industrial goods and on 850 tariff lines (8 digit HS) regarding agricultural goods of Kosovo origin upon the entry into force.   Kosovo, on the other hand, will eliminate the customs duties on all industrial goods and 846 tariff lines regarding agricultural goods of Turkish origin, incrementally, in 9 years, the latest, following the entry into force of the Agreement. Moreover, as foreseen by the Agreement, the Parties will immediately start the negotiations on trade in services.

Source: Republic of Turkey Ministry of Economy