WTO Publishes Turkey TPR Conclusions

by Carla Johnson, Investors Offshore.com, London

10 December 2007

Since its third Trade Policy Review (TPR) in 2003, Turkey has been implementing ambitious reforms that have resulted in high economic growth, rapid disinflation, and declining public and external debt burdens, according to a report on the trade policies and practices of Turkey published by the WTO Secretariat this week.

According to a WTO statement on the Review:

"An important element in Turkey’s performance is that its applied MFN tariff on non-agricultural goods are at relatively low rates. The high level of tariff protection for agriculture, however, has limited the exposure of the sector to competition."

The report states that an acceleration of Turkey’s structural reforms, extension of the scope of tariff binding commitments, reduction of bound rates, and further tariff rationalization would help sustain its economic performance.

The WTO Secretariat continued:

"An additional favourable factor is that Turkey has moved to improve the investment climate. As a result, Turkey’s annual Foreign Direct Investment inflows reached a peak estimated at around US$20,000 million in 2006."

Nevertheless, the report indicated that a number of sectors are still subject to FDI restrictions (e.g. broadcasting, fishing, petroleum, mining, and financial services). Turkey also continues to build on an extensive network of preferential trade agreements, due to its customs union with the EC.

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

To manage your mailing list preferences, please click here »