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Free Trade Agreements Signed By Turkey: Two-Sided-Sectoral Analysis and Assessment of Foreign Trade Policy

Author

Listed:
  • Erdem ATEŞ
  • Ayşe Dilek SEYMEN

Abstract

Especially after the Second World War, efforts to liberalize foreign trade has been accelerated amongst countries. These efforts can be divided into two as global and regional efforts. Global efforts have been exerted by various rounds of the General Agreement on Tariffs and Trade (GATT) and by the World Trade Organization (WTO). Regional efforts, on the other hand, are represented by Preferential Trade Agreements (PTA), Customs Unions (CUs) and Free Trade Agreements (FTAs), which have been prevailed particularly in recent years. By adopting an “export-led growth model”, Turkey has been involved in both the global and the regional efforts towards trade liberalization since the 1980s. When viewed from a regional perspective, Turkey has signed FTAs for two main reasons. The first reason has been to find new markets to sell its products and services and to diversify its partnership with different countries in foreign trade. The second and primary reason is Turkey’s obligation to conform with the European Union (EU)’s trade policy under the Customs Union. Furthermore, Turkey has signed 37 FTAs until 2018, among which 20 of them are in effect now. 11 of the signed FTAs have been dissolved due to the partnering countries’ ascension to EU membership. Although the negotiations are complete, five of these signed FTAs are at the stage of internal approval by the partnering countries. In this study, effects of FTAs on Turkey’s foreign trade with its counterparties has been investigated for the 1980-2017 period using bilateral foreign trade data, growth rates of export and import, bilateral concentration index, sector-bilatarel trade concentration index (SBT) and revealed comparative advantage index (RCA). The findings have been evaluated in terms of Turkish foreign trade policy.

Suggested Citation

  • Erdem ATEŞ & Ayşe Dilek SEYMEN, 2019. "Free Trade Agreements Signed By Turkey: Two-Sided-Sectoral Analysis and Assessment of Foreign Trade Policy," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    • Handle: RePEc:sos:sosjrn:190414
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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