Study on Sourcing Opportunities in Turkey by john williams

Dragon Sourcing Your Tailored Approach to Emerging Markets

Study on Sourcing Opportunities in Turkey

Jan, 2018 www.dragonsourcing.com

Table of Contents  

Executive Summary Turkey – An Overview

 

Turkey – Country Overview

Trade Statistics

 

Export & Import Trade Statistics Top Export Categories

               

Automobiles Machinery Precious Metals Knitted Apparel Electrical Equipment Iron & Steel Woven Apparel Plastics & Plastic Products Iron & Steel Products Fruits Mineral Fuel Furniture & Furnishings Aluminium & Aluminium Products Rubber & Rubber Products Salts, Lime & Cement

Trade Agreements

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Executive Summary (1/2) Category

2016 Export HS Code Value in USD Billion

Turkey’s share of Global Exports (2016)

Category‘s share of Total Turkey Exports (2016)

Automobiles

19.8

14%

Machinery

12.3

Precious Metals

12.2

Knitted Apparel

8.8

Electrical Equipment

7.8

0.3%

Iron & Steel

6.2

Woven Apparel

5.9

Plastics & Plastic Products

5.0

Top Products Cars Vehicles for transport of goods Parts and accessories for tractors Refrigerators Internal combustion piston engine parts Washing machines Gold Jewelry Silver T-shirts Jerseys, pullovers, cardigans, waistcoats Women's or girls' suits Insulated wire Monitors and projectors Electrical transformers Bars and rods Flat-rolled products Angles, shapes and sections Women's or girls' suits Men's or boys' suits Women's or girls' blouses Plates, sheets, film, foil and strip Packaging products Tubes, pipes and hoses

Top Export Destinations

Import Duty into US

Import Duty into EU

Germany, Italy, France

0% - 25%

Germany, UK, USA

0% - 6.7%

UK, UAE, Switzerland

0% - 13.5%

Germany, UK, Spain

0% - 32%

UK, Germany, France

0% - 12.5%

USA, Egypt, UAE

0% - 10%

Spain, Germany, UK

0% - 27.9%

Iraq, Germany, Italy

0% - 6.5%

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Executive Summary (2/2) Category

2016 Export HS Code Value in USD Billion

Turkey’s share of Global Exports (2016)

Category‘s share of Total Turkey Exports (2016)

Iron & Steel Products

5.0

Fruits

3.9

Mineral Fuel

3.2

0.2%

Furniture & Furnishings

2.7

2.2

Aluminium & Aluminium Products Rubber & Rubber Products Salts, Lime & Cement

Top Products

Structures and parts of structures Tubes, pipes and hollow profiles Nuts (excluding coconuts, Brazil nuts & cashew nuts) Citrus Fruits Grapes Petroleum oils Petroleum gas Oils and other products of the distillation of high temperature coal tar Furniture parts Seats Lamps and lighting fittings Bars, rods and profiles Plates, sheets and strip Aluminium foil New pneumatic tires Vulcanized rubber parts Tubes, pipes and hoses Marble, travertine, ecaussine Cement Borates

Import Duty into US

Import Duty into EU

Germany, UK, Iraq

0% - 12.5%

Antidumping/count ervailing measures continue to apply to goods

Italy, Germany, Russia

0% - 29.8%

0% - 3%

Egypt, UAE, Greece

0% - 7%

Iraq, Germany, Saudi Arabia

0% - 12.8%

Germany, UK, Italy

0% - 6.5%

Germany, Italy, USA

0% - 14%

China, USA, Italy

0% - 7%

Top Export Destinations

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TURKEY – AN OVERVIEW

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Turkey – Country Overview Country Facts (2016) Population GDP

79.8 million USD 857.4 billion

Annual GDP Growth Country Indicators

3.5% Score/ Value

Global Competitiveness Index Score

4.42

Macroeconomic environment Score

5.1

Labor Market Efficiency Score

3.4

Domestic market size index

5.4

Business Sophistication Score

4.0

Note: Score reading: 1-7 (best)

Country Indicators

Turkey

Time to import (days)

Time necessary to comply with all procedures required to import goods

Informal payments to public officials (% of firms)



Economic Outlook: Economic growth is estimated to have exceeded 6% in 2017, driven by strong fiscal stimulus and an export market recovery, and is projected to edge down but to stay between 4½ and 5% in 2018 and 2019.



Investment Outlook: Total FDI inflow into Turkey in 2016 was USD 12.2 billion. However, Turkey received about USD 8.3 billion in FDI in the first 10 months of 2017. Industrial sectors and Manufacturing have attracted the highest amount of FDI. Majority of FDI inflows to Turkey come from Europe, North America, and the Gulf countries

Interpretation

Germany

Country Ranking (out of 190) Comparison: A low numerical rank means that the regulatory environment is conducive to business operation

Documents to import (number)

Political Outlook: Though, country’s diversified private business sector, robust public finances, and well-regulated banking sector has helped the economy to restore back after the political confusion in 2016; Turkey is likely to continue facing civil unrest, foreign policy tensions, an unsettled economy, and ongoing threats from terrorist groups in 2018.

Comparison

Ease of Doing Business

Cost to import (USD per container)



1,235

5.8

1,050

Include costs for documents, administrative fees for customs clearance and technical control, customs broker fees, terminal handling charges and inland transport. It does not include tariffs or trade taxes

Documents required for clearance by government ministries, customs authorities, port and container terminal authorities, health and technical control agencies and banks are taken into account

Informal payments to public officials are the percentage of firms expected to make informal payments to public officials to "get things done" with regard to customs, taxes, licenses, regulations, services, and the like.

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TRADE STATISTICS

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Export & Import Trade Statistics

Turkey - Export and Import Statistics (in USD Trillion) 20.0

18.8

Top Importing Markets for products exported by Turkey (in USD Billion) 16.0

18.9 16.4

16.6

16.0

14.0 15.9

16.0

13.4

14.0

12.0

10.6

11.7

10.0 12.0

6.9

7.6

6.4 6.6

4.0

2.0 2014

2015

Total Exports from Turkey

   

7.6

6.0

8.0

0.0

8.6

8.0

0.0

2016

Total Imports into Turkey

Germany

Iraq 2015

Italy

USA

2016

Germany and UK are the major import markets for products exported by Turkey. Transport equipment (14% of total exports in 2016) and Machinery (9% of total exports in 2016) are the top export products. The total untapped export potential for the exporter Turkey stands at USD 83.9 billion. There is lot of untapped potential in Bars & rods of iron of non-alloy steel, Automobiles, Jewelry, Textiles, Nuts and Electronic components sectors.

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Top Export Categories Top 15 export categories contributes to about 70% of the total exports value from Turkey Top Export Categories from Turkey (Values in USD Billion) Salts, Lime & Cement 2.3 Rubber & Rubber Products Aluminium & Aluminium Products Furniture & Furnishings Mineral Fuel Fruits

2.2 2.2

2.2

2.2 2.4 2.7 2.8 3.2

4.5 3.9 4.4

Iron & Steel Products

5.0 5.5

Plastics & Plastic Products

5.0 5.4 5.9 5.9

Woven Apparel

6.2 6.6

Iron & Steel

7.8 8.3

Electrical Equipment

8.8 8.9

Knitted Apparel Precious Metals

11.3

12.2 12.3 12.3

Machinery Automobiles 0.0

17.5

5.0

10.0 2015

15.0

19.8

20.0

25.0

2016

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Automobiles (1/2) World Export of HS 87 series (Automobiles) in USD billion in 2016

Export of HS 87 series (Automobiles) from Turkey in USD billion

244; 18.12%

25 20

20 17 142; 10.51%

2014

2015

730; 54.13% 10

20; 1.47%

125; 9.24% 5 88; 6.53%

Germany

Japan

USA

Mexico

Turkey

Others

Top Importers of HS 87 series (Automobiles) from Turkey in USD billion



2.1 2.0

2.6

2.5 2.1

2.0

2.2



2.0

1.8

1.6 1.7

 1.2

1.0

0.0

0.8

Germany

Italy

France 2014

2015

2016

Top Exported Products in this Category

3.0 2.6

2013

0.9

Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars Motor vehicles for the transport of goods, incl. chassis with engine and cab Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles

Spain

2016

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Automobiles (2/2) 

 Izmit - Sakarya Bursa



Ankara



Izmir



Adana

 Major Automobiles Production Zones in Turkey

Turkey is the largest exporter of automobiles to the EU in term of units and about 75% of the total production is exported Turkey has projected its export goal for vehicles to be around USD 75 billion by 2023 thus securing a 2.4% share of the global market Turkey is highly integrated with the global automotive industry due to the cluster of car-makers and parts suppliers Automotive industry has witnessed a growth rate of 8% from 2009-2016 Approximate production in 2016  Passenger Vehicles: 951 thousand units  Commercial Vehicles: 535 thousand units 5 Automotive firms: Anadolu Group, BMC, Kiraca Holding, Turkcell, and Zorlu Holding will jointly manufacture Turkey’s first home-made car. Prototype of the first domestically-produced car is expected in 2019 and sales to start in 2021.

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Machinery (1/2) World Export of HS 84 series (Machinery) in USD billion in 2016

Export of HS 84 series (Machinery) from Turkey in USD billion

344; 18.27%

15 13

14 12

2015

2016

10 223; 11.86%

987; 52.49%

12; 0.66%

5 191; 10.13% 124; 6.59%

China

Germany

USA

Japan

Turkey

Others

Top Importers of HS 84 series (Machinery) from Turkey in USD billion 2.5



2.1 2.1 2.0



1.5

 0.9

0.8 0.8

0.7 0.7 0.7

0.5 0.5 0.6

0.5 0.0

Germany

USA 2014

2015

Italy

0.6 0.5

2014

Top Exported Products in this Category

2.4

1.0

2013

Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps; parts thereof Parts suitable for use solely or principally with internal combustion piston engine Household or laundry-type washing machines, incl. machines which both wash and dry; parts thereof

0.5

France

2016

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Machinery (2/2)

 Istanbul Tekirdag

Samsun

Kocaeli

Trabzon

 Bursa

Erzurum



Kayseri

Izmir

Adana

Gaziantep



Antalya

Annual growth rate of machinery exports between 2005-2016 was 9%, better than Turkey’s overall export growth rate between 2005-2016 Machinery is the 2nd largest sector, accounting for a 9% share in Turkey’s total exports. Machinery products are shipped to more than 200 countries. 60% of total machinery product exports are shipped to the EU countries and the USA. FDI inflow in machinery manufacturing represents a significant source for Turkey’s overall FDI amount, making up around 20 percent of total manufacturing FDI between 2005 and 2015.

Major Machinery Production Zones in Turkey

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Precious Metals (1/2) World Export of HS 71 series (Precious Metals) in USD billion in 2016

Export of HS 71 series (Precious Metals) from Turkey in USD billion

99; 15.09%

15 12

11 84; 12.89%

358; 54.91%

12; 1.86%

57; 8.77%

42; 6.48% Switzerland India

China Turkey

USA Others

Top Importers of HS 71 series (Precious Metals) from Turkey in USD billion

 4.9



4.0 3.1 2.3

1.9 2.0

2.0

 1.9

1.7

1.3

0.8 0.9

0.1 0.0

UAE

Switzerland 2014

2015

Iran

2014

2015

2016

Top Exported Products in this Category

6.0

3.1

2013

Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal (excluding articles > 100 years old) Silver, incl. silver plated with gold or platinum, unwrought or in semi-manufactured forms, or in powder form

0.5 0.5 0.6 Iraq

2016

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Precious Metals (2/2)

 Istanbul

 Ankara Erzincan Province Izmir

Uşak Province



With greater gold, coal and base metal production, Turkey’s mining sector is expected to reach USD 11.7 billion in 2020 from USD 9.5 billion in 2016. Turkey has an expanding gold mining industry with significant untapped potential. Gold production has increased in almost every year since 2001, growing from 2t to 33.5 t in 2013. Turkey’s Ministry of Energy & Natural Resources estimate gold reserves to be 840t. Turkey offers advantageous tax incentives for diamond sector. Special consumption tax for diamonds has been abolished and VAT exemptions are introduced. Diamonds can be imported to Turkey with zero tax.

Major Gold and Jewelry Production Zones in Turkey

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Knitted Apparel (1/2) World Export of HS 61 series (Knitted Apparel) in USD billion in 2016

Export of HS 61 series (Knitted Apparel) from Turkey in USD billion 15

74; 34.11% 99; 45.19%

10 9

2015

2016

16; 7.46% 12; 5.43% 8; 3.77% 9; 4.06% China Turkey

Bangladesh Germany

Vietnam Others

Top Importers of HS 61 series (Knitted Apparel) from Turkey in USD billion

2.0

  

2.4 1.9 1.9 1.6

1.5

1.3

1.0

0.8 0.8 0.8

0.6

0.5 0.0

Germany

Spain 2014

2015

0.5 0.4

France

2014

Top Exported Products in this Category

3.0 2.5

2013

T-shirts, singlets and other vests Jerseys, pullovers, cardigans, waistcoats and similar articles Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts, knitted or crocheted (excluding windjackets and similar articles, slips, petticoats and panties, tracksuits, ski suits and swimwear)

0.5 0.4 0.4

Netherlands

2016

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Knitted Apparel (2/2)   Istanbul Tekirdag



Izmir

Kayseri

Uşak Province

Kahramanmaraş



Denizli Adana

Gaziantep

 Major Apparel Production Zones in Turkey

Knitted Apparel sector contributes to about 6% of the total exports from Turkey Turkey is the second largest exported of socks overtaking Italy. Turkey accounts for about 10% of world socks imports in 2016, following China (40% of global socks imports) Turkey has high production coupled with modern machinery park and high export capacity. Istanbul is the main production center, with over 85% of the socks manufacturing units operating in the city. There are more than 300 socks manufacturing units operating in Turkey with medium and large-scale production capabilities. In addition, there are many small-scale workshops that manufacture for the internal market. According to records of the Turkish Statistical Institute, in 2016, Turkey exported 1.5 billion pairs of socks and 146.5 million pieces of pantyhose, worth US$ 1 billion 36 million. Of these socks, 1.2 billion pairs are made of cotton.

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Electrical Equipment (1/2) World Export of HS 85 series (Electrical Equipment) in USD billion in 2016

Export of HS 85 series (Electrical Equipment) from Turkey in USD billion 12 10

925; 40.06%

937; 40.58%

8; 0.34% 134; 5.82% 138; 5.97% 167; 7.24%

China South Korea

USA Turkey

Germany Others

 1.1 0.9

0.9

1.0

0.9 0.9 0.7

0.6

0.8 0.5 0.3

0.3

0.3 0.0



0.6 0.6 0.4 0.4

 UK

Germany 2014

France 2015

Saudi Arabia

2013

2014

2015

2016

Top Exported Products in this Category

1.5 1.2

Top Importers of HS 85 series (Electrical Equipment) from Turkey in USD billion

1.2

Iraq

Insulated "incl. enameled or anodized" wire, cable "incl. coaxial cable" and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus Electrical transformers, static converters, e.g. rectifiers, and inductors; parts thereof

2016

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Electrical Equipment (2/2)



Istanbul



Ankara

Denizli

Adıyaman



Major Electrical Equipment Production Zones in Turkey

Electrical equipment industry in Turkey is expected to grow at a CAGR of almost 3% by 2020. This is attributed to the increasing focus on innovation in lighting equipment which is the key driver for the growth of this market. The electrical equipment market in Turkey is fragmented owing to the presence of more than 500 manufacturers. Though this market contains a multitude of manufacturers, only a few foreign players and some indigenous manufacturers dominate the market shares. Some of the key manufacturers in this market are AY Yapı Elemanları, Aktel Elektronik, Altez Elektronik, AR Elektrik, ArchLED, Assan Elektronik, and Atom Kablo.

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Iron & Steel (1/2) World Export of HS 72 series (Iron & Steel) in USD billion in 2016

Export of HS 72 series (Iron & Steel) from Turkey in USD billion

43; 14.41%

12 10

25; 8.17%

8 7

22; 7.23% 186; 61.91%

19; 6.22% 6; 2.06% China South Korea

Japan Turkey

Germany Others

Top Importers of HS 72 series (Iron & Steel) from Turkey in USD billion 1.2 1.0

 0.9 0.9



0.8 0.7

0.6

0.5 0.5

0.4

0.5

0.4

0.3



0.4

0.3

2014

2015

2016

Top Exported Products in this Category

1.1

0.8

2013

Bars and rods, of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but incl. those twisted after rolling (excluding in irregularly wound coils) Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm, hot-rolled, not clad, plated or coated Angles, shapes and sections of iron or non-alloy steel

0.3

0.2 0.0

USA

Egypt

UAE 2014

2015

Israel

Iraq

2016

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Iron & Steel (2/2)

 Sakarya Kayseri

Balikesir

Sivas

Erzincan Bingol

Kirsehir



Malatya Adana Hatay



Turkey’s iron ore reserves are estimated to be around 82.5 million tons and is the 3rd largest among the largest steel manufacturing countries after China and India Turkey realized largest production growth in 2011-2012. However, the production growth dropped three consecutive years from 2013 and 2015. In 2015, Turkey's crude steel production capacity grew slightly by 0.5% from 50.2 mt to 50.4 mt. Electric-arc furnace mills accounted for 77% of total capacity.

Major Iron & Steel Production Zones in Turkey

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Woven Apparel (1/2) World Export of HS 62 series (Woven Apparel) in USD billion in 2016

Export of HS 62 series (Woven Apparel) from Turkey in USD billion 8.0

72; 33.24%

6.2 5.7

5.9

2015

2016

97; 44.94% 4.0 16; 7.51% 13; 5.98% 6; 2.73% 12; 5.59% China Italy

Bangladesh Turkey

Vietnam Others

0.0

Top Importers of HS 62 series (Woven Apparel) from Turkey in USD billion 1.0 0.8

0.9

0.8

 0.8 0.8 0.7



0.6 0.6

0.4

 0.3

0.3

2014

Top Exported Products in this Category

0.9

0.6

2013

Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts Women's or girls' blouses, shirts and shirt-blouses

0.3 0.2

0.2 0.0

Spain

Germany 2014

UK 2015

Netherlands

France

2016

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Woven Apparel (2/2)

Istanbul Tekirdag

 

Izmir

Kayseri

Uşak Province

Kahramanmaraş

Denizli Adana



Gaziantep

Knitted Apparel sector contributes to about 4% of the total exports from Turkey Cotton production stands at around 820,000 metric tons (MT), which 3.76 million bales The crop is grown in three main areas: the Aegean region, Çukurova (near Adana on the Southern Coast), and Southeastern Anatolia. Small amounts of cotton are also produced around Antalya.

Major Apparel Production Zones in Turkey

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Plastics & Plastic Products (1/2) World Export of HS 39 series (Plastics & Plastic Products) in USD billion in 2016

Export of HS 39 series (Plastics & Plastic Products) from Turkey in USD billion

62; 11.44%

8.0

62; 11.41%

6.0

Germany Turkey

USA Others

0.0

Top Importers of HS 39 series (Plastics & Plastic Products) from Turkey in USD billion

0.5



0.6 0.5 0.4

0.4



0.4

0.3

0.2

0.2 0.2

0.2

5.0

0.2 0.2

2013

2014

2015

2016

Top Exported Products in this Category

0.7 0.6

5.4

2.0

28; 5.07% 5; 0.92% China South Korea

6.1

4.0

59; 10.76%

329; 60.39%

5.6



0.2

Plates, sheets, film, foil and strip, of non-cellular plastics, not reinforced, laminated, supported or similarly combined with other materials, without backing, unworked or merely surfaceworked or merely cut into squares or rectangles Articles for the conveyance or packaging of goods, of plastics; stoppers, lids, caps and other closures, of plastics Tubes, pipes and hoses, and fittings therefor, e.g. joints, elbows, flanges, of plastics

0.1 0.0

Iraq

Germany 2014

Italy 2015

Israel

2016

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Plastics & Plastic Products (2/2)

 Istanbul

Samsun Kocaeli

Bursa



Ankara Kayseri

Izmir Denizli



Konya Adana

Gaziantep

 Mersin

Plastics industry in Turkey is the 6th largest in the world and 2nd largest in Europe (next to Germany) in terms of production capacity. Over 6500 companies operate in this sector. Turkey contributed to about 2.7% share of global plastic end products production, producing about 8.6 million tons in 2015 Turkey’s plastics industry grew to 9 million metric tons of production and direct exports of plastic products were valued at more than $4 billion in 2016 Production figures for the Turkish plastics industry in 2016 was 9 million tons or USD 35 billion worth of plastics, while direct exports of finished goods was around USD 4 billion

Major Plastic Products Production Zones in Turkey

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Iron & Steel Products (1/2) World Export of HS 73 series (Iron & Steel Products) in USD billion in 2016

Export of HS 73 series (Iron & Steel Products) from Turkey in USD billion 8.0

52; 20.03%

6.1

6.4

6.0 28; 10.96%

140; 54.11%

China

Germany

USA

2.0

16; 6.24%

Italy

Turkey

0.0

Others

Top Importers of HS 73 series (Iron & Steel Products) from Turkey in USD billion 0.9



0.7 0.6 0.5

0.6

0.5 0.5

0.4

0.5 0.4 0.4

0.4

0.3

0.4

0.3 0.3 0.2

2013

2014

2015

2016

Top Exported Products in this Category

0.8

5.0

4.0

17; 6.75% 5; 1.92%

5.5



0.2

Structures and parts of structures "e.g., bridges and bridgesections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns", of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel Tubes, pipes and hollow profiles "e.g., open seam or welded, riveted or similarly closed", of iron or steel

0.1 0.0

Germany

Iraq 2014

2015

Turkmenistan

USA

2016

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Iron & Steel Products (2/2)



Tekirdag

Kocaeli

Samsun

Eregli Karabuk

Çanakkale

Bursa



Sivas Bilecik

Kirrikale

Izmir

 Ozmaniye Iskenderun

 Major Iron & Steel Products Production Zones in Turkey

Export of Iron & Steel products had a share of 3% in total Turkey exports in 2016, whereas it was 4% in the previous year. This decrease is attributed to the Turkish steel industry’s struggle to survive the problems accumulated since 2012. Long products 'production grew by 3.2% to 26.55 million tons, flat products' production increased slightly by 0.1% to 10.39 million tons. Turkey’s iron-steel export goal for 2023 is USD 55 billion, securing a 4% share of the global iron-steel market and growing annually 7.4% on average. Turkey aims to reach 85 million tons year capacity and 70 million tons/year production. While Turkey’s steel products export/import ratio was 99 % in 2016, 51 % of the domestic steel consumption was met through imported material

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Fruits (1/2) World Export of HS 08 series (Fruits) in USD billion in 2016

Export of HS 08 series (Fruits) from Turkey in USD billion

14; 13.05%

5.0 4.3

4.4

4.0

9; 8.41%

3.9

6; 5.46% 2.5 6; 5.17% 69; 64.32%

4; 3.59%

USA Netherlands

Spain Turkey

Chile Others

0.0

Top Importers of HS 08 series (Fruits) from Turkey in USD billion 0.7

0.7 0.6

0.5 0.5

0.5

  

0.4

0.3

0.3 0.3 0.3

0.3

2014

2015

2016

Top Exported Products in this Category

0.6 0.6

0.6

2013

Other nuts, fresh or dried, whether or not shelled or peeled (excluding coconuts, Brazil nuts and cashew nuts) Citrus fruit, fresh or dried Grapes, fresh or dried

0.3 0.2

0.2

0.2 0.1 0.0

Italy

Germany 2014

Russia 2015

Iraq

France

2016

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Fruits (2/2)

 Sinop Kastamonu Samsun

Düzce Bolu Sakarya

Kocaeli

Giresun Trabzon

Ordu

 

Izmir



Major Hazelnut Production Zones in Turkey

Turkey produces 48 million tons of fresh fruit & vegetable. Total fresh fruit and vegetable production is 4.6% up from 44.3 million tons to 46.3 million in 2016 mainly due to significant increase in some production such as apple, dry onions, citrus fruits and cherry. Watermelons and melons, ranked 2nd having a share of 12.5% in overall fresh fruit and vegetable production Grapes, the other major crop in Turkey’s fresh fruit and vegetable output (production of 4 million tons) constitute 8.6% of the annual production Turkey has been the major world dried fruit producing country both in average along the last decade and in the 2016/2017 season, reaching 18% of the world share. Dried grapes and dried apricots were Turkey’s most produced dried fruits.

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Mineral Fuel (1/2) World Export of HS 27 series (Mineral Fuel) in USD billion in 2016

Export of HS 27 series (Mineral Fuel) from Turkey in USD billion

164; 11.00%

8.0 6.7

135; 9.05%

6.1 6.0 4.5

94; 6.30% 4.0

62; 4.19% 3; 0.22% 1,030; 69.24%

2.0 Saudi Arabia Canada

Russia Turkey

USA Others

0.0

Top Importers of HS 27 series (Mineral Fuel) from Turkey in USD billion



0.9 0.8 0.6 0.5

0.6 0.5 0.4

0.4

0.3

0.2

0.2 0.0

  0.2 0.1

Egypt

UAE

Greece 2014

2015

Saudi Arabia

2013

2014

2015

2016

Top Exported Products in this Category

1.0

0.6

3.2

0.2 0.2

Petroleum oils and oils obtained from bituminous minerals (excluding crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils containing mainly petroleum or bituminous minerals Petroleum gas and other gaseous hydrocarbons Oils and other products of the distillation of high temperature coal tar; similar products in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents

Singapore

2016

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Mineral Fuel (2/2) 



Kirklareli Corlu

Akcakoca

Tekirdag

 Adıyaman Adana

Kilis

Diyarbakr Siirt Batman Idil



Antakya

 Major Oil and Gas Fields in Turkey

Turkey is rich in nonconventional reserves. Southeast Anatolia hosts a rich basin in terms of shale oil and gas, however due to the ongoing conflict no company will operate there. In terms of offshore reserves, there is the Eastern Mediterranean, while in the Black Sea the technological advances that the Chinese have made could prove promising for the icy part of the ground, which is rich in hydrocarbons. 28.7 million tons of petroleum products were produced in Turkey in 2016 according to the Petroleum Market Annual Sector Report for 2016 The market for the petroleum sector are dominated by two state-owned entities, which is the Petroleum Pipeline Corporation of Turkey (BOTAŞ) and the Turkish Petroleum Corporation (TPAO). Turkey's demand is mostly met from imported oil and natural gas as it lacks considerable oil and natural gas resources.

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Furniture & Furnishings (1/2) World Export of HS 94 series (Furniture & Furnishings) in USD billion in 2016

Export of HS 94 series (Furniture & Furnishings) from Turkey in USD billion 3.0

2.8

3.0 2.8

2.7

88; 37.51% 101; 43.49%

2.0

3; 1.14%

1.0 17; 7.23%

12; 5.05% 13; 5.58% China

Germany

Italy

Poland

Turkey

0.0

Others

Top Importers of HS 94 series (Furniture & Furnishings) from Turkey in USD billion 0.6 0.5

  

0.5

0.4 0.3 0.2 0.2

0.2

0.1 0.1 0.1 0.1

Iraq

Germany 2014

2015

2016

Furniture and parts thereof Seats, whether or not convertible into beds, and parts thereof Lamps and lighting fittings, incl. searchlights and spotlights, and parts thereof; illuminated signs, illuminated nameplates and the like having a permanently fixed light source, and parts thereof

0.2 0.2 0.1

0.1 0.0

2014

Top Exported Products in this Category

0.6 0.5

2013

Saudi Arabia 2015

France

0.1 0.1

USA

2016

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Furniture & Furnishings (2/2)   Istanbul

Bursa

Düzce Bolu Ankara

Izmir

Kayseri

 Adana

 Major Automobiles Production Zones in Turkey

Turkey will witness tremendous growth and post a staggering CAGR of more than 9% during the forecast period. The furniture manufacturing market in Turkey is highly fragmented owing to the presence of several small, mid-sized, and large manufacturers. Favorable demographics and positive economic development in Turkey, coupled with a large population are resulting in high domestic as well as global demand for the furniture manufactured in the country. The augmented use of medium-density fiberboard (MDF) in furniture is one of the emerging trends spurring this market’s growth prospects during the forecast period. In terms of revenue, the office and shop furniture segment dominated the furniture manufacturing market in Turkey and accounted for close to 39% of the total market shares during 2015.

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Aluminium & Aluminium Products (1/2) World Export of HS 76 series (Aluminium & Aluminium Products) in USD billion in 2016

Export of HS 76 series (Aluminium & Aluminium Products) from Turkey in USD billion

21; 13.63%

3.0 2.4

2.5

2.4

15; 9.85%

2.2

2.0

12; 7.86% 97; 62.03%

1.0 8; 5.19% 2; 1.44%

China

Germany

USA

Canada

Turkey

0.0

Others

Top Importers of HS 76 series (Aluminium & Aluminium Products) from Turkey in USD billion 0.5 0.4

2013

2014

2015

2016

Top Exported Products in this Category

 

0.4 0.4 0.4

 0.3 0.2

Bars, rods and profiles, of aluminium Plates, sheets and strip, of aluminium, of a thickness of > 0,2 mm Aluminium foil, "whether or not printed or backed with paper, paperboard, plastics or similar backing materials", of a thickness "excluding any backing" of <= 0,2 mm

0.2 0.1 0.1 0.1

0.1 0.1 0.1

0.1

Italy

France

Iraq

0.1 0.0

Germany

2014

2015

0.1

2016

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Aluminium & Aluminium Products (2/2)



Zonguldak

 Konya



Gaziantep

Muğla

Mersin

Major Automobiles Production Zones in Turkey

Aluminum manufacturing market in Turkey will grow at a moderate CAGR of approximately 4% until 2020. The significant demand for aluminum alloys from the construction sector is a major growth driver for this market. In Turkey, it has been observed that manufacturers operating in the downstream aluminum-based products market produce over 900,000 tons of products in a year, which includes extrusions, flat-rolled products, and secondary aluminum. The aluminum manufacturing market in Turkey is characterized by the presence of a single producer of primary aluminum, and a number of international and regional manufacturers of downstream aluminum products.

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Rubber & Rubber Products (1/2) World Export of HS 40 series (Rubber & Rubber Products) in USD billion in 2016

Export of HS 40 series (Rubber & Rubber Products) from Turkey in USD billion

19; 11.51%

3.0 2.5

2.6

16; 9.72%

2.2

2015

2016

2.0 13; 7.73% 1.0

101; 62.21% 12; 7.47% 2; 1.35% China

Germany

USA

Thailand

Turkey

0.0

Others

Top Importers of HS 40 series (Rubber & Rubber Products) from Turkey in USD billion

2014

Top Exported Products in this Category

  

0.6 0.5 0.5

2013

0.4 0.4

0.4

New pneumatic tires, of rubber Articles of vulcanized rubber (excluding hard rubber) Tubes, pipes and hoses, of vulcanized rubber other than hard rubber, with or without their fittings, e.g. joints, elbows, flanges

0.3 0.2

0.2

0.2 0.2

0.0

0.1 0.1

0.1 0.1 0.1

0.1 Germany

Italy

USA 2014

2015

0.1

Spain

0.1 0.1 0.1

France

2016

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Rubber & Rubber Products (2/2)



Istanbul

Izmit - Sakarya



Kocaeli

Aksaray

 

Major Tire Production Zones in Turkey

The tire market in Turkey is projected to cross USD 3 billion by 2022. Marmara Region dominated demand for tires in the country, due to large population base and large automobile fleet size in the region. Expanding automobile fleet size, rising vehicle sales and growing automobile production across the country are the major drivers for the increasing demand for tires About 2 million units of Heavy vehicle tires were sold in 2016 out of total tire sales (23 million units) In 2014, Marmara region had the largest share in the country's tire market, followed by Central Anatolia, Aegean and Mediterranean regions. Brisa Bridgestone, Goodyear and Pirelli are few of the major tire players operating in Turkey.

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Salts, Lime & Cement (1/2) World Export of HS 25 series (Salts, Lime & Cement) in USD billion in 2016

Export of HS 25 series (Salts, Lime & Cement) from Turkey in USD billion

3; 7.92%

3.0 2; 6.41%

2.7 2.5

2; 5.96%

2.3

2.2

2015

2016

2.0 2; 5.78% 2; 4.82% 1.0 26; 69.12%

China

USA

Germany

Turkey

India

0.0

Others

Top Importers of HS 25 series (Salts, Lime & Cement) from Turkey in USD billion 1.0



0.8 0.8 0.8 0.6

 

0.4

0.0

0.1 0.1 China

0.1

USA 2014

0.1 0.1 0.1

Italy

Israel

India

2015

2014

Top Exported Products in this Category

1.0

0.2

2013

Marble, travertine, ecaussine and other calcareous monumental or building stone of an apparent specific gravity of >= 2,5, and alabaster, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a square or rectangular shape (excluding in the form of granules, chippings or powder) Cement, incl. cement clinkers, whether or not colored Borates, natural, and concentrates thereof, whether or not calcined, and natural boric acids containing <= 85% of H3BO3 calculated on the dry weight (excluding borates separated from natural brine)

2016

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Salts, Lime & Cement (2/2)

 Kirklareli Edirne

Samsun

Istanbul

Kocaeli

Tekirdag

Bursa



Trabzon Bolu

Tokat Ordu

Gümüşhane

Ankara Sivas

Bilecik

Erzincan

Kars



Erzurum

Kayseri Izmir

Burdur Aydin

Denizli Antalya

Diyarbakr

Konya Isparta Adana Mersin

Muş Siirt Van

Kahramanmaraş



Gaziantep

Major Cement Production Zones in Turkey

Turkey’s cement industry aims to increase exports by 10 percent year-onyear to 13 million tons in 2017 Turkey’s annual cement production capacity is around 110 million tons and the country consumes 65 million tons Today, the Turkish cement sector includes a total of 68 cement plants (48 integrated plants and 20 grindingpacking plants) and employs 15 000 people. Important manufacturers in Turkey’s cement sector include OYAK Cement Group plants Denizli Cement, Aslan Cement, Bolu Cement, Adana Cement, Mardin Cement and Ünye Cement: As Cement, Adoçim, Çimsa, Akçansa, Cimentas, Nuh Cement and Batiçim

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TRADE AGREEMENTS

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Trade Agreements Turkey has 22 RTAs

Agreements

Region/ Countries Involved

Asia

Korea, Republic of – Turkey, Turkey – Malaysia,

Europe

EFTA – Turkey, EU – Turkey, Turkey – Albania, Turkey - Bosnia and Herzegovina, Turkey – Georgia, Turkey - Moldova, Republic of, Turkey – Montenegro, Turkey – Serbia, Turkey - The former Yugoslav Republic of Macedonia, Turkey - Tunisia

Latin America

Turkey - Chile

Middle East & Africa

Egypt – Turkey, Turkey – Israel, Turkey – Jordan, Turkey – Mauritius, Turkey – Morocco, Turkey - Palestinian Authority, Turkey – Syria, Other Trade Agreements

Other Agreements

Economic Cooperation Organization (ECO) Protocol on Trade Negotiations (PTN)