Turkey in the World Trading System and the WTO: Activism under Global Challenges and the EU Process

Turkey in the World Trading System and the WTO: Activism under Global Challenges and the EU Process

Turkey’s increasing engagement in world economy and international trade invites her to take a proactive approach in the WTO and in regional trade agreements. Exogenous factors including her accession process to the EU, and the obligations under the Customs Union; as well as current state of negotiations within the realm of the WTO, and developments in the world trading system are important factors to shape this strategy. In this context, Turkey plays role of a middle-power actor who positions herself between developed and developing economies. The study argues, this dilemma reflects her Janus-face and can be avoided by her own choice. In this context, what Turkey needs is to establish a single identity that focuses on long-term competitiveness to transform its economy towards the production and export of medium-high technology sectors; and to be able to formulate a more comprehensive trade policy beyond a mere export strategy by considering vertical integration in global production and trade patterns; services, access to supplies; and the emerging global trade agenda in trade-related matters. This will help her to achieve the aspiration to become a regional leader and an influential global actor

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  • WTO International Trade Statistics (2011a) reveal that in 2010 Turkey was twenty- second leading exporter of manufactures in the world with a share of 1 percent and a value of 114 billion dollars, and fifteenth largest importer with a share of 1.5 percent and a value of 186 billion dollars (counting the EU-27 as one). In services trade, Tur- key amounts to a share of 1.2 percent (33 billion dollars). and 0.7 percent (18 billion dollars) in exports and imports in 2010 ranking sixteen and twenty-four, respectively.
  • WTO International Trade Statistics (2011a) reveal that in 2010 Turkey was twenty- second leading exporter of manufactures in the world with a share of 1 percent and a value of 114 billion dollars, and fifteenth largest importer with a share of 1.5 percent and a value of 186 billion dollars (counting the EU-27 as one). In services trade, Tur- key amounts to a share of 1.2 percent (33 billion dollars). and 0.7 percent (18 billion dollars) in exports and imports in 2010 ranking sixteen and twenty-four, respectively.
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  • This caused an important dispute settlement case in textiles in the WTO, after a complaint by India against Turkey. See, http://www.wto.org/english/tratop_e/ dispu_e/cases_e/ds34_e.htm for facts of the dispute. This matter shall be analysed subsequently. Turkey was allowed to maintain higher rates of protection in specified sensitive pro- ducts until 2001, as an exception to its alignment of the CCT.
  • İzmen and Yılmaz (2009) go further to claim that as well as its effect on Turkey in making her to come more into line with the market forces, the CU also helped Tur- key to resist the East Asian and Russian crises of the 1990s, and the global recession in 2008, without which it would have been very difficult for Turkey to overcome
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