United Kingdom – Muhasebe News

Foreign Trade Statistics of Turkey, April 2017

MuhasebeNews — Mon, 05 Jun 2017 06:50:17 +0000

Exports and imports increased by 7.4% and 9.9%, respectively
According to the provisional data, produced with the cooperation of the Turkish Statistical Institute and the Ministry of Customs and Trade, in April 2017; exports were 12 billion 839 million dollars with a 7.4% increase and imports were 17 billion 784 million dollars with a 9.9% increase compared with April 2016.

Foreign trade deficit increased by 16.7%
In April 2017 foreign trade deficit was 4 billion 945 million dollars with a 16.7% increase compared with April 2016.

In April 2017, exports coverage imports was 72.2% while it was 73.8% in April 2016.

Seasonally and calendar adjusted exports decreased by 2.7%
Seasonally and calendar adjusted exports decreased by 2.7% while imports increased 1.6% compared with previous month. Calendar adjusted exports and imports increased by 10.5% and 13.2%, respectively compared with April 2016.
Exports to the European Union increased by 2.2%
As compared with the same month of the previous year, exports to the EU-28 increased by 2.2% from 5 billion 652 million dollars to 5 billion 779 million dollars. The proportion of the EU countries was 45% in April 2017 while it was 47.3% in April 2016.

The main partner for exports was Germany
In April 2017, the main partner country for exports was Germany with 1 billion 140 million dollars. The country was followed by UAE with 1 billion 21 million dollars, Iraq with 857 million dollars and the United Kingdom with 737 million dollars.

The top country for imports was China
In April 2017, the top country for Turkey’s imports was China with 1 billion 647 million dollars. The country was followed by Germany with 1 billion 629 million dollars, Russia with 1 billion 495 million dollars and USA with 980 million dollars.
Ratio of exports of high-tech products in manufacturing industries was 3.1%
Foreign trade by technology intensity covers the manufacturing industries’ products in classification of ISIC Rev.3. According to the ISIC Rev.3, the ratio of manufacturing industries products in total exports was 94.1% in April. The ratio of high-technology products in manufacturing industries was 3.1%. The ratio of medium-high-technology products in manufacturing industries’ products was 33.6%.

Ratio of imports of high-tech products in manufacturing industries was 15.1%
The ratio of manufacturing industries’ products in total imports was 80.5%. The ratio of high-technology products in manufacturing industries’ products was 15.1% in April 2017. The ratio of medium-high-technology products in manufacturing industries’ products was 42.8%.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Foreign Trade Statistics of Turkey, March 2017

MuhasebeNews — Fri, 28 Apr 2017 07:45:05 +0000

Exports and imports increased by 13.6% and 6.9%, respectively
According to the provisional data, produced with the cooperation of the Turkish Statistical Institute and the Ministry of Customs and Trade, in March 2017; exports were 14 billion 496 million dollars with a 13.6% increase and imports were 18 billion 988 million dollars with a 6.9% increase compared with March 2016.

Foreign trade deficit decreased by 10.3%
In March 2017 foreign trade deficit was 4 billion 492 million dollars with a 10.3% decrease compared with March 2016.

In March 2017, exports coverage imports was 76.3% while it was 71.8% in March 2016.

Seasonally and calendar adjusted exports increased by 3.7%
Seasonally and calendar adjusted exports and imports increased by 3.7% and 2.2%, respectively compared with previous month. Calendar adjusted exports and imports increased by 13.5% and 7.1%, respectively compared with March 2016.
Exports to the European Union increased by 8.1%
As compared with the same month of the previous year, exports to the EU-28 increased by 8.1% from 6 billion 267 million dollars to 6 billion 775 million dollars. The proportion of the EU countries was 46.7% in March 2017 while it was 49.1% in March 2016.

The main partner for exports was Germany
In March 2017, the main partner country for exports was Germany with 1 billion 321 million dollars. The country was followed by UAE with 1 billion 28 million dollars, Iraq with 906 million dollars and the United Kingdom with 874 million dollars.

The top country for imports was Germany
In March 2017, the top country for Turkey’s imports was Germany with 1 billion 783 million dollars. The country was followed by China with 1 billion 770 million dollars, Russia with 1 billion 599 million dollars and the USA with 952 million dollars.

Ratio of exports of high-tech products in manufacturing industries was 3.1%
Foreign trade by technology intensity covers the manufacturing industries’ products in classification of ISIC Rev.3. According to the ISIC Rev.3, the ratio of manufacturing industries products in total exports was 94.4% in March. The ratio of high-technology products in manufacturing industries was 3.1%. The ratio of medium-high-technology products in manufacturing industries’ products was 33.9%.

Ratio of imports of high-tech products in manufacturing industries was 13.9%
The ratio of manufacturing industries’ products in total imports was 81%. The ratio of high-technology products in manufacturing industries’ products was 13.9% in March 2017. The ratio of medium-high-technology products in manufacturing industries’ products was 42.2%.

Foreign Trade Statistics in Turkey, February 2017

MuhasebeNews — Tue, 04 Apr 2017 13:49:30 +0000

Exports decreased by 1.9% while imports increased by 1.6%
According to the provisional data, produced with the cooperation of the Turkish Statistical Institute and the Ministry of Customs and Trade, in February 2017; exports were 12 billion 127 million dollars with a 1.9% decrease and imports were 15 billion 820 million dollars with a 1.6% increase compared with February 2016.

Foreign trade deficit increased by 15%
In February 2017 foreign trade deficit was 3 billion 693 million dollars with a 15% increase compared with February 2016.

In February 2017, exports coverage imports was 76.7% while it was 79.4% in February 2016.

Seasonally and calendar adjusted exports increased by 1.8%
Seasonally and calendar adjusted exports and imports increased by 1.8% and 1.7%, respectively compared with previous month. Calendar adjusted exports and imports increased by 0.7% and 5.5%, respectively compared with February 2016.
Exports to the European Union decreased by 3.2%
As compared with the same month of the previous year, exports to the EU-28 decreased by 3.2% from 5 billion 723 million dollars to 5 billion 539 million dollars. The proportion of the EU countries was 45.7% in February 2017 while it was 46.3% in February 2016.

The main partner for exports was Germany
In February 2017, the main partner country for exports was Germany with 1 billion 119 million dollars. The country was followed by UAE with 938 million dollars, Iraq with 725 million dollars and the United Kingdom with 702 million dollars.

The top country for imports was China
In February 2017, the top country for Turkey’s imports was China with 1 billion 643 million dollars. The country was followed by Germany with 1 billion 439 million dollars, Russia with 1 billion 304 million dollars and France with 767 million dollars.

Ratio of exports of high-tech products in manufacturing industries was 3%
Foreign trade by technology intensity covers the manufacturing industries’ products in classification of ISIC Rev.3. According to the ISIC Rev.3, the ratio of manufacturing industries products in total exports was 93.9% in February. The ratio of high-technology products in manufacturing industries was 3%. The ratio of medium-high-technology products in manufacturing industries’ products was 33.4%.

Ratio of imports of high-tech products in manufacturing industries was 16.1%
The ratio of manufacturing industries’ products in total imports was 80%. The ratio of high-technology products in manufacturing industries’ products was 16.1% in February 2017. The ratio of medium-high-technology products in manufacturing industries’ products was 42.5%.

Brexit Has Begun Officially!

MuhasebeNews — Fri, 31 Mar 2017 11:07:08 +0000

Brexit has begun officially on March 29, 2017.

United Kingdom has started the process of leaving the EU on March 29, 2017 and the negotiation period for 2 years.

On the other hand, United Kingdom should wait to start any trade talks with non-EU countries. Because especially US would like to wait to be clear about Brexit before that start negotiations with non-EU countries.

Source: Euronews

Foreign Trade Statistics in Turkey, January 2017

MuhasebeNews — Wed, 29 Mar 2017 11:49:17 +0000

Exports and imports increased by 18.1% and 15.9%, respectively
According to the provisional data, produced with the cooperation of the Turkish Statistical Institute and the Ministry of Customs and Trade, in January 2017; exports were 11 billion 278 million dollars with a 18.1% increase and imports were 15 billion 586 million dollars with a 15.9% increase compared with January 2016.

Foreign trade deficit increased by 10.3%
In January 2017 foreign trade deficit was 4 billion 309 million dollars with a 10.3% increase compared with January 2016.

In January 2017, exports coverage imports was 72.4% while it was 71% in January 2016.

Seasonally and calendar adjusted exports increased by 4.5%
Seasonally and calendar adjusted exports and imports increased by 4.5% and 0.6%, respectively compared with previous month. Calendar adjusted exports and imports increased by 17% and 9%, respectively compared with January 2016.

Exports to the European Union increased by 12%
As compared with the same month of the previous year, exports to the EU-28 increased by 12% from 4 billion 734 million dollars to 5 billion 302 million dollars. The proportion of the EU countries was 47% in January 2017 while it was 49.6% in January 2016.

The main partner for exports was Germany
In January 2017, the main partner country for exports was Germany with 1 billion 122 million dollars. The country was followed by Iraq with 684 million dollars, the United Kingdom with 676 million dollars and United Arab Emirates with 655 million dollars.

The top country for imports was China
In January 2017, the top country for Turkey’s imports was China with 1 billion 851 million dollars. The country was followed by Russia with 1 billion 480 million dollars, Germany with 1 billion 187 million dollars and the United States of America with 734 million dollars.

Ratio of exports of high-tech products in manufacturing industries was 2.7%
Foreign trade by technology intensity covers the manufacturing industries’ products in classification of ISIC Rev.3. According to the ISIC Rev.3, the ratio of manufacturing industries products in total exports was 92.9% in January. The ratio of high-technology products in manufacturing industries was 2.7%. The ratio of medium-high-technology products in manufacturing industries’ products was 33.6%.

Ratio of imports of high-tech products in manufacturing industries was 15.8%
The ratio of manufacturing industries’ products in total imports was 77.5%. The ratio of high-technology products in manufacturing industries’ products was 15.8% in January 2017. The ratio of medium-high-technology products in manufacturing industries’ products was 42.2%.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Investment Legislation

MuhasebeNews — Mon, 13 Mar 2017 13:39:08 +0000

Turkey’s investment legislation is simple and complies with international standards, while it offers equal treatment for all investors. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties and various laws and related sub-regulations on the promotion of sectorial investments.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

to encourage FDI in the country
to protect the rights of investors
to align the definitions of an investor and investment with international standards
to establish a notification-based system rather than an approval-based one for FDI
to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

freedom to invest,
national treatment,
expropriation and nationalization,
freedom of transfer,
national and international arbitration and alternative dispute settlement methods,
valuation of non-cash capital,
employment of foreign personnel,
liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

to regulate the work carried out by foreigners
to stipulate the provisions and rules on work permits given to foreigners
2. Bilateral Agreements
2.a. Bilateral Agreements for the Promotion and Protection of Investments
Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

Date: 13 March 2017