Foreign Trade News from Turkey

Turkey may need to take reciprocal measures against Russia’s restrictions on imports of tomatoes and other produces, Economy Minister Nihat Zeybekci said on Aug. 9.

Turkey may need to take reciprocal measures against Russia’s restrictions on imports of tomatoes and other produces, Economy Minister Nihat Zeybekci said on Aug. 9. Speaking to businessmen in Ankara, Zeybekci said there were still lingering issues on the export of Turkish tomatoes to Russia, and that restrictions were in place for other vegetables as well. “This may create a need for us to take reciprocal measures,” he said, as quoted by Reuters.  Russia banned Turkish tomato imports after Turkey shot down a Russian jet near the Syrian border in 2015.  Ties between Ankara and Moscow have largely normalized since although the ban remains in place.  On June 2, Russian Prime Minister Dmitry Medvedev signed a decree lifting the ban on some agricultural produce and Turkish companies involved in construction, engineering and tourism in the aftermath of the downing of a Russian fighter jet in 2015.  Following the lifting of the sanctions, only two restrictions are left for Ankara, the issue of visa-free travel for Turkish citizens and tomatoes. Consultations on the seasonal admission of Turkish tomatoes to the Russian market will continue during the summer, said Dvorkovich.

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Turkey’s industrial production advanced 3.4 percent in June 2017 compared to the same month last year, the Turkish Statistical Institute (TÜİK) announced on Aug. 8.

Turkey’s industrial production advanced 3.4 percent in June 2017 compared to the same month last year, the Turkish Statistical Institute (TÜİK) announced on Aug. 8. Turkey’s industrial output is deemed a vital indicator for the economy as it is seen as a preliminary gauge for GDP growth.  On an annual basis, the manufacturing index saw the biggest rise in June, up 3.8 percent, among all three main sub-indices, TÜİK said.  In the same period, the electricity, gas, steam, and air-conditioning supply index also increased by 2.5 percent while the mining and quarrying index decreased by 0.5 percent. Meanwhile, the country’s industrial production declined by 0.4 percent in June on a monthly basis, TÜİK noted. In June, the mining and quarrying index rose by 1.2 percent while the electricity, gas, steam, air-conditioning supply, and manufacturing indices fell by 0.6 percent and 0.5 percent, respectively.

ANKARA - Anadolu Agency

Turkey set to establish free zone on e-commerce, logistics next to Istanbul’s third airport

 Economy Minister Nihat Zeybekci has said an e-commerce and logistics zone will be established next to Istanbul’s third airport, which is currently under construction, while signaling new automotive investments and exports in the country.  Speaking at a meeting with the head of the Turkish Exporters Assembly (TİM), Mehmet Büyükekşi, Zeybekci also said Turkey will likely reach its highest-ever boost in exports in July and close 2017 with an over $155 billion export figure.  “We have taken a number of steps in a bid to solve the logistics problems, which were faced by many sectors, including the automotive sector. We will establish a free zone focusing on e-commerce and logistics next to Istanbul’s under-construction third airport,” he said late on July 13, as quoted by Reuters on July 14.  He noted that Turkey would probably make more than $155 billion worth of exports.  “Unless negative developments erupt, we hope to surpass our exports over $155 billion this year…Probably, we will hit the highest export boost in July,” he added.  The airport is planned to serve 90 million passengers annually once the first stage of the project is completed in the first half of the 2018. According to data from the Economy Ministry, Turkey’s exports regressed to $142.6 billion in 2016 with a 0.84 percent year-on-year decrease. TİM data has showed that exports hit $77.5 billion in the first half of 2017 with an 8.2 percent increase compared to the same period of 2016.  New automotive investments ‘underway’ Zeybekci also noted that a number of key investments would be launched in the upcoming period, a factor which will boost exports.  “Some automotive brands, which are active in Turkey, plan to make our country one of the key production bases of their companies,” he noted.  Nearly 15 global automotive giants have production facilities in Turkey. The sector is slated to make nearly 1.7 million vehicles this year by using more than 85 percent of capacity.  Turkish automotive production rose 20 percent year-on-year to 869,158 vehicles in the first half, with output up 8 percent to 141,161 vehicles in June, Turkey’s automotive producers’ body said on July 10.  Domestic automotive sales, including both cars, light and heavy commercial vehicles, fell 9 percent to 410,609 units in the first half as last year’s tax increases and forex induced price increases continued to put pressure on markets. Turkey’s automotive exports climbed 29 percent to 714,284 units, led by a 48 percent rise in car exports as manufacturers continued to ramp up the output of export-oriented models. Turkey’s Automotive Industry Association (İSO) also upped its year-end production forecast to 1.7 million vehicles from 1.65 million.


Turkey’s exports continue to rise in June as trade with Russia surges: Association

 The value of Turkey’s exports rose 1.8 percent year-on-year to $12.7 billion in June as its trade with Russia soared, the country’s main exporters’ association said on July 1.  The Turkish Exporters’ Assembly (TİM) said exports in the first half of the year also climbed 8.2 percent to reach almost $76.4 billion.  Turkey’s total exports in the last 12-month period rose 4.5 percent compared to the previous 12 months to stand at $147.3 billion. In June, the automotive sector contributed the highest exports with $2.5 billion, up 16.4 percent over the same month last year.  It was followed by the clothing and chemical sectors with $1.4 billion and $1.3 billion, respectively.          The highest increase among industrial products was seen in ship and yacht sector exports with a 178 percent rise, TİM said.  Another prominent rising export sector in June was the olive and olive oil sector, up 63 percent.         Exports to Russia soar  Among the top 20 destinations for Turkey’s exports, Russia saw the sharpest rise, 89 percent, due to a fivefold increase of fresh fruit and vegetable exports, according to TİM.  Exports to Turkey’s main trading partner, the EU, rose 2.8 percent month-on-month in June, making its share of the country’s total exports 50.5 percent, the association said. Turkey’s exports to its second-biggest trading partner, North America, jumped 17.8 percent in the month compared to June 2016. Exports to Turkey’s other main export markets were also on the rise -- Germany (up 4.4 percent), the U.K. (up 2.1 percent), Italy (up 1.8 percent), the U.S. (up 14.1 percent) and Iraq (up 4.4 percent).  Commenting on the new figures, TİM head Mehmet Büyükekşi said the limited rise in June exports was due to the smaller number of working days due to the Muslim Eid al-Fitr holiday compared to the same period last year.         He added that Turkey saw a strong recovery in exports in the first five months of the year, which has helped the country’s growth rate.  In the first five months, Turkey’s exports rose 9.5 percent to $64.3 billion compared to the same period last year, according to the Turkish Statistical Institute (TÜİK).    “We believe that we will reach higher growth rates with the contribution of exports in the upcoming periods,” Büyükekşi said.