Turkey-country analysis Essay Example for Free

Turkey-country analysis Essay Turkey is a dynamic promising market due to its geographical and strategic importance. Further more, it has a complex of developed infrastructure and an internationally competitive work force. Its geographical closeness to the emerging energy generating states in the Caspian and Central Asia are other reasons that further elevate its stature economically. Turkey is trying to align its economic policy with the commercial policy measures of European Union and creating free trade zones, signing new Free Trade accords with prospective countries. In addition to implementing Common Customs Tariff, Turkey is further putting into practice the preferential trade regime especially with third world countries i.e. Islamic and Balkans. In order to fulfill the EU measures and to look after its commercial concerns, it is executing this Free Trade accords on priority basis. Until now Turkey concluded 19 preferential trade agreements but only 9 of these preferential agreements are in force: EFTA, Israel, Bulgaria, Romania, Macedonia, Croatia, Bosnia-Herzegovina Palestine and Tunisia. This preferential trade regime was first put into practice by signing a Free Trade Agreement between Turkey and the EFTA States that was implemented in April 1992. After this Turkey reinforced its policy of preferential trade with European countries of non-EFTA members and signed FTAs with Latvia, Lithuania, Slovakia, Poland Hungary, Estonia, Slovenia and Czech Republic. After their membership of European Union, these accords came to an end. So in this context, Turkey Located new preferential states and entered into accord with Israel, Romania and Bulgaria entered into force in May 1997, February 1998 and January 1999 respectively. Turkey has also created free trade zones. Turkish Free Zones are tax free zones. In order to lure the trade and investment, all the commercial and trade activities in these zones are tax-exempted. Furthermore, Free Zones earnings and revenues can be shifted to any country, without any official restraint or any prior permission and are not subject to any kind of taxes, duties and fees. Currencies used in the zone are convertible foreign currencies accepted by the Central Bank. Turkey is trying to integrate with international markets and enhancing the cooperation with trading partners worldwide. Despite various complexities and impediments, Turkey has almost achieved all goals in its global integration process started in 1980s. The stable liberalization of the economy and assimilation with the global economy begun by former President Ãâ€"zal has sustained itself without disruptions. Although it was full of vicissitudes but Turkeys trade sector manifest a mounting proportion of GDP, and foreign funds are a prime source of investment. [1] Despite economic catastrophe of mid-1994 such as the devaluation of the currency, bank failures, stock market crash, Turkey has been labeled a chief emerging market by the main international financial institutes. Turkey recognized its interest in closer multilateral cooperation with Islamic countries, particularly with rich Middle Eastern states and Turkeys augmented its presence in Middle Eastern markets and supplied supplementary sources of foreign direct investment and commercial financing. References Foreign Economic Relations Board ofTurkey. http://www.deik.org/ [1] For further details check Foreign Economic Relations Board of Turkey (DEIK) website that is established with prime purpose is to pave the way for Turkey’s economic, commercial, industrial and financial relations with foreign.