Performance of FTZs improves marginally in 2008
Posted by meb at February 9th, 2009
The volume of trade in Turkey’s free-trade zones (FTZs) amounted to $24.6 billion in 2008, an increase of 0.02 percent on the previous year, according to data compiled by the Anatolia news agency.
The largest share of trade belonged to the İstanbul Leather and Industry Free Zone, which recorded $6.1 billion. The Aegean Free Zone saw $3.7 billion in trade and was followed by the İstanbul Atatürk Airport’s duty-free area, with $3.5 billion. The Mersin Free Zone saw a 3.19 percent increase in business over the previous year, jumping to $2.6 billion. The İstanbul Thrace Free Zone, on the other hand, suffered an 18.7 percent decline in trade in 2008, falling to $1.8 billion. Turkey’s sixth-largest FTZ, in Bursa, also saw a modest drop, slipping 0.9 percent, with $1.6 billion in trade.
Trade deals within FTZs were mostly conducted with companies located within the European Union or members of the Organization for Economic Cooperation and Development (OECD), amounting to $9 billion. FTZ trade with the 27 member states of the EU came to $7.3 billion. Other European countries, however, only had a $46 million share. Members of the Commonwealth of Independent States (CIS) had $1.1 billion worth of trade with Turkish FTZs, and countries in the Middle East and North Africa, customers increasingly important to Turkey, bought and sold $1.35 billion of goods in these specialized areas of commerce.
The zones’ contribution to employment in 2008 was notable, as the companies that operate in Turkey’s FTZs employed 50,641 people.
FTZs in Turkey focus generally on R&D, computer software programming, space technology and aviation research. FTZ representatives have said they expect FTZs, which have lost ground due to declining demand amidst the ongoing financial crisis, will become attractive again with new legislation that was introduced by the government before the start of 2009. “Competition will increase and FTZs will become attractive centers of trade again,” they said, adding that they expect a 25 percent decline in demand this year; however, they also noted that they endeavor to finish the year with as few losses as possible. The previous law governing FTZs went into effect in 1985 and the government recently made changes to the law, aiming to increase opportunities for companies that establish themselves in FTZs.
source: Today’s Zaman
FTZs are special districts usually with adjoining ports reserved solely for the trade of goods that are intended for shipment, and are free of levies, including those of customs, taxes, duties, etc. National quality standards are also not required for goods traded in these areas.
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