By Stephanie Bellamy, 12^th June 2018

Exporting to Turkey

Are you looking to develop your overseas trade and do business in Turkey?

Turkey’s rapid development has quickly made it the world’s 16^th largest economy and Europe’s 6^th . With its sights firmly set on entering the top 10 by 2023, Turkey’s lucrative business opportunities are building momentum and reaching out for UK companies to get involved.

Turkey’s pivotal location, bordering Greece, Bulgaria, Romania, Iran, Lebanon and Georgia, allows businesses to trade between continents and economic boundaries easier than ever before. It is a country with the distinct advantage of being home to the most trodden trade routes, laid out on both land and sea. Europe and Asia sit either side of Istanbul’s Bosphorus river allowing businesses to trade easily between the two sides.

UK investment in Turkey is rapidly increasing. It is known to be “one of the largest in terms of foreign direct investments”[i]. UK businesses who are looking to export to Turkey or seeking to import from Turkey to UK may be hesitant to go ahead due to reported political demonstrations. Controversial implications like; “how safe is Turkey” and “Is it safe to travel to turkey” are questions people are asking. What people are unaware of is the connected history and cooperation which has been long established between the two countries. There are “2900 UK companies currently operating in Turkey”[ii]. Many SME’s are thriving and global companies such as HSBC, Vodaphone, Shell, Marks and Spencers, Harvey Nichols and Tesco have set up their operations in Turkey. In fact, the UK is Turkey’s 3^rd largest export partner and announcements have been made that Turkey will be one of the first to continue to work with the UK post Brexit.

The Turkish Embassy in London wrote in their written submission dated October 2016 when discussing post Brexit and the relations between Turkey and the UK;

“Economic relations between the two countries will be particularly important in the post–Brexit area. The UK has a larger trade volume with Turkey than with other big countries like Russia and Mexico. Therefore, it will be important to ensure that trade be carried out in the freest way possible with minimum obstacles between the two countries… The future presents ample opportunities for further enhancement of the bilateral relations.”[iii]

Already in place is the Customs Union Agreement which came into force on 31 December 1995. It is an agreement made between the European Economic Community and Turkey, also known as the ‘Ankara Agreement’. The Agreement allows for the abolishment of export and import duty from Turkey to UK, as well as other member states. The Ankara Agreement is individual to Turkey as it is not within the European Union but it is a member of the EU Customs Union. It expresses that “the Community and Turkey shall refrain from introducing any new customs duties on imports or exports or any charges having equivalent effect from that date”[iv].This agreement has enabled the bilateral trade between the UK and Turkey to be strengthened.

Turkish investment within the UK is also increasing. The largest international food manufacturer in Central and Eastern Europe, the Middle East and Africa “Yildiz Holding” bought out United Biscuits, the British multinational food manufacturer in November 2014. United Biscuits’ most familiar brands consist of McVitie’s, Penguin, Jacob’s, Go ahead!, Carr’s, Twiglets, Mini Cheddars and Jaffa Cakes. Turkey’s £2 billion investment into a UK company helps us further strengthen our fast growing economy.

Beko is another recognisable brand we see in many of the stores in the UK. Beko is a Turkish brand who has sold over 30 million domestic appliances and consumer electronics in the UK alone. It is a subsidiary of Arçelik A.S who are part of a large multinational group called Koç Holding, who are one of the largest companies in the world.

Greg Hands’, the UK’s Minister of State for Trade Policy, states;

“This partnership is a boost to our trading relationship and businesses in both countries. Working with Turkey to secure contracts for UK and Turkish exporters, and increasing our support for UK businesses trading with Turkey, will open new opportunities, not only in Turkey, but across the world.”[v]

If you would like more information in regards to developing your business overseas then please visit our HK Global site at https://www.hki-network.com

Why use Humphries Kirk International Network?

HK International Network is comprised of experienced commercial solicitors as well as some of the best international lawyers who provide professional legal advice to our respective clients across Europe.

Our members continue to work alongside each other to provide our clients not only the best legal advice in relation to their matters but go above and beyond and provide a lasting relationship built on trust which often proves difficult to find when dealing with solicitors across international borders.

By dealing with our top international lawyers within our HK International Network you can rely on your commercial matters to be handled with the utmost professionalism at more reasonable rates than large international firms. We provide a more personal, professional relationship where lines of communication are open at all times.

If you need a European lawyer or any legal advice that involves an international element then contact your nearest HK International Network member. Visit our HK Global site at https://www.hki-network.com/ for more information.

Turkish Solicitors UK

Our members of the HK International Network have been working together for years. Whether you are a UK business carrying out work in Turkey or need advice in relation to your personal legal issues such as; how to get a Turkey work visa, advice on moving to Turkey or looking to buy/sell property but are asking questions like how safe is Turkey at this current time? Our Turkish members will be able to assist. Please visit https://www.hki-network.com/members/ for our list of members.

Dr. F. Banu Vardar Tosunoğlu, LL.M, has LL.B degrees from Germany and Turkey and an LL.M degree in International and European Business Law from Cambridge, UK as well as a PhD from the University of Leicester, UK. Humphries Kirk has worked closely with Dr. F.Banu in a number of matters throughout the years and she is recognised as one of the great international and commercial lawyers amongst her clients across the world.

If you are looking for advice in relation to Turkish matters please visit www.vardarhukukburosu.com for more information.