Trade with Turkiye – Overview
Trade with Turkey is now called Turkiye – Turkey is the link between Europe and Asia. Interestingly, 97% of Turkey’s territory lies in Asia, and only 3% in Europe. Last year, Turkey was the EU’s 6th largest trading partner, export market, and import provider. The EU is by far Turkey’s number one import and export destination. So last year, the Turkish economy was ranked as the 18th largest economy in the world, according to the World Bank. Many European countries consider Turkey a nearshoring country in their supply chains, as do countries in the Middle East.
Turkey evolved from the Ottoman Empire, and modern-day Turkey came into being in 1923. Turkey officially began using the name “Türkiye” (the Turkish-language version) in December 2021, and the United Nations formally recognised the change on June 1, 2022.
Turkey’s economy has been steadily growing since the start of this century. However, it is currently experiencing severe headwinds due to economic and geopolitical reasons.
Turkey’s population is 84.2 million, with 68.6% between the ages of 15 and 64 (source: cia.gov).
Trade with Turkey – Business culture
So, Turkish is the official language of Turkiye (Turkey). English can be used for business meetings, and it is polite to enquire if everyone is comfortable with English before conducting any meetings.
Turkish people are hospitable, polite, and extremely professional. They tend to work extremely hard and long hours. Turks like to get acquainted with the people with whom they will work and do business. They will most likely do business with those they can trust and with whom they can provide a long-term relationship.
Pricing and finance are tackled slowly and never at the beginning of negotiations. Turks are good negotiators; bargaining will be conducted strenuously and often subtly.
In the major cities, there is a certain amount of liberalism in dress and custom for women. Business suits are the norm for both females and males.
Some tips and guidelines
- Always be polite and ask after people’s families. Do not disrespect their family.
- Turkish people stand close to you during a conversation. It is customary in Turkey to have very little interpersonal space, and it is not something to be apprehensive about.
- Avoid standing with your hands on your hips or in your pockets.
- Don’t point at someone with your finger.
- Spent time getting to know someone before chatting about business with them.
- Using pressure tactics, such as imposing a deadline, is not respected.
Setting up in Turkey
It is advisable to have a local representative assist you in entering the Turkish market. The representative should have local experience and knowledge and have contacts with the government and private sectors.
Turkey’s Investment Guide is a government-led agency that offers information to help companies set up and do business in Turkey.
Firms wishing to enter into the Turkish market have a variety of options, including:
- Using a sales agent, joint venture or strategic alliance
For many companies, representation in Turkey by a Turkish agent, distributor, liaison office or partner will be crucial to their success. A local partner can provide knowledge of the local regulatory framework, language assistance and valuable business contacts.
- Establishing a Turkish representative office.
Turkey has introduced reforms to make it easier to do business and to enhance the investment environment, eliminating red tape in setting up a business and minimising costs and procedures. To this end, establishing a company is now only carried out at Trade Registry Offices located in Chambers of Commerce and designed to be a ‘one-stop shop’. The process can be completed in one day.
Sourcing from Turkey
Turkey is a country which offers firms a lot of sourcing opportunities. Turkey’s Ministry of Trade assists firms wishing to source from Turkey. Some of the main products which can be sourced from Turkey include:
- Appliances
- Apparel
- Chemicals
- Clothing
- Construction products
- Food
- Footwear
- Furniture
- Glassware
- Paper and pulp
- Porcelain and ceramics
- Seafood
- Textiles
- Wine and Liquor
When sourcing from Turkey, it is recommended that Quality Control Inspections and Supplier Verifications be conducted at the factory or warehouse in Turkey. Goodada’s Turkey Seller Verification & Quality Control Inspection Services offer these services across all parts of Turkey.
Goodada provides many QC services in Turkiye, including Clothing Inspections and Furniture QC Inspection.
Banking and Finance
Turkey’s legal tender unit is the Turkish Lira (₺ TYR).
Online and telephone banking, debit/credit cards, bonds and checks are widely used. Services in English are available for online and phone banking. The Turkish banking system sets a good global example regarding operation and finance.
Turkiyes three state-owned commercial banks plus the nine largest private banks account for 80% of total bank assets.
Trade with Turkey – Tariffs and Non-Tariff Barriers
Tariff
A Customs Union agreement with the European Union heavily influences Turkiye’s import duties and tariffs. It provides duty-free access for industrial products and processed agricultural products. Turkey imposes the EU’s Common External Tariff, the same external tariff applied by all states within the EU to goods imported from outside these territories.
You can find information about Turkey’s free trade agreements with other countries on the Ministry of Trade’s website.
Non-tariff barriers
The Ministry of Trade launched the “Risk-Based Trade Control System (TAREKS)” to carry out safety and quality checks on export and import goods electronically and on a risk basis.
Turkey has committed itself to approximating its technical legislation with the European Union’s.
Product labelling, certification and packaging
Turkey follows the European CE marking directives. Labels should be in Turkish. Information on product labelling in the interest of consumers and compliance procedures is available at Summaries of EU Legislation.
Certification
For certain goods, specific labels might be required, i.e. some products might need to be cleared by the Ministry of Agriculture and Forestry, and some by the Turkish Standards Institute (TSE).
Packing
It would be best to have your packaging approved with any buyer or agent in Turkey as their market might have particular preferences.
Methods of quoting and payment
Agree on payment terms in advance—these can include 30, 60, or 90-day periods. Once you’ve settled on the terms, ensure all parties understand them clearly, and have your client, representative, or contact sign a document confirming the agreement.
Documentary & Clearance Requirements
Documentation required:
For those sending products to Turkey, the required documents are a Commercial Invoice and a Bill of Lading or Airway Bill. Authorities may require a certificate of origin, health certification, and other necessary documents for some products.
Customs process:
Before moving goods into Turkey, it is essential to have a Turkish Customs agent verify any import taxes and documentation requirements.
So, Trade with Turkey – Business Risks
Businesses wishing to operate in Turkey should commit to the highest level of corporate behaviour and familiarise themselves with Turkish laws on bribery and the penalties for corruption by officials.
Intellectual Property Protection – So what
The Turkish Patent and Trademark Office (TURKPATENT) authorises the registration and renewal of patents, utility models, trademarks, industrial designs, and geographical indications.
So, currently, there is no official mechanism to monitor IP within Turkey. IP holders usually monitor their IP rights themselves or with the assistance of an investigation firm. After detecting a possible infringement or piracy, they may initiate an infringement or unfair competition action to prohibit the use and to request compensation.
Therefore, we advise you to consult legal counsel on these matters.
Dispute resolution – What about it?
Turkey has a structured legal system. The judiciary consists of the following branches:
- Constitutional court
- Civil and Criminal courts
- Administrative courts
- Courts of Conflict
Always use Turkish legal experts.
So, Trade with Turkey – About the Author
Aidan Conaty ACMA, GCMA, MBA, founded TCI China and Goodada.com. Aidan has spent over 20 years assisting companies in trading internationally. TCI China provides trade support services for China. Goodada is a Quality Control Inspection company. Trinity College Dublin awarded Aidan the Seamus McDermott MBA scholarship.
So, You can contact Aidan by email at aidan@goodada.com or at:
(Europe/ Rest of the World) +353 1 885 3919
(UK) +44.020.3287.2990
(North America) +1.518.290.6604
Trade with Turkey – Web Resources
Turkish Industry & Business Association