Abstract:

Especially after the Second World War, the efforts to liberate foreign trade have increased. These efforts can be divided into global and regional efforts. The global efforts are provided by the General Treaty on Customs and Trade (GATT) and the World Trade Organization (WTO), which was then established. The regional efforts represent preferred trade agreements (TTAs), customs unions (GBs) and especially the Free Trade Agreements (STAs), which have been widely used in recent periods. Turkey has been part of both global and regional efforts in the framework of the "export-based growth model" which it has adopted since the 1980s. When it comes to regional efforts, it is clear that Turkey has undertaken the STA for two purposes. First, to find new markets to sell their products and to go to the diversification of the country in foreign trade; second, and the main reason, because Turkey is part of the GB of the European Union (EU), is the obligation of the EU to implement its foreign trade policy. Turkey has signed thirty-seven STAs until 2018. Twenty of these agreements are in force. One-one of the signed STAs have been dismissed because the signing countries are members of the EU. The negotiations have been completed but there are five STAs in the internal approval processes of the countries. In this study; the effects of the STAs signed by Turkey on trade with the parties, the two-sided external trade data for the 1980-2017 period, the growth rate of exports and imports, the bilateral concentration index, the sectoral-bilateral trade concentration index (SBT) and the explained comparative superiority index (RCA) were analyzed and the findings were evaluated using foreign trade policy.

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.

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