The Customs Union and Turkish Foreign Policy
Economical developments in Turkey and the world keep moving in an
incredible speed. With the increasing world trade volume and gradually
intensifying rivalry, companies’ efforts for strengthening their market shares are
increasing day by day. Being able to keep alive in the middle of this rivalry
depends on being successful in the international platform. The industrialized
countries aiming to get out of this situation with the minimum loss have started
to give more significance to their economical security. It can be seen that
preventions such as goods and amount restriction has decreased and local
commercial and political ...view middle of the document...
The process of opening to foreign trade
started during the times when coup’s political damages were ruling the country,
which caused transformations’ being fast and sometimes out of control.
International system’s slacking off at the beginning and the collapse of East Block
provided expansion in Turkey’s foreign relationships and especially Caucasia an
Middle East became the new interest areas. On the other hand, it is necessary to
state that these areas got the interest of the whole the world, which put Turkey
in an extraordinary situation for her, as she was in a challenge with different
rivals from different areas in different environments.
Foreign trade balance’s having serious deficit and export’s being insufficient
to meet import till 1980s, a wide ranged economical packet named ‘’24 January
Decisions’’ was put into action in 1980 in order to economy’s becoming able to
challenge in free markets and to make Turkey suitable for international
economical system. As a part of these decisions, Turkey passed to flexible
exchange rate system from fixed exchange rate system. Exportation was
encouraged by incentives and exportation based industrialization strategy was
started to be conducted with the economical pocket reform. Bureaucracy’s effect
decreased on exportation and free environment for it was provided. With the
change done in 1989, foreign currency importation was set free and in 1990,
foreign currency regime was even become more liberalized; foreign currency
became convertible so that it became free to import and export with Turkish
money. To make exporters stronger in terms of being able to compete in abroad,
Turkish-Eximbank was settled up.
Iraq’s invasion of Kuwait in 1990 resulted in The Gulf Crisis and international
economical system started to show inconsistence. The effect of this situation was
also felt in Turkish economy. Because of rising inside and outside debt stock,
public openness and rising inflation, economical crisis showed up in 1994. After
that crisis, economical precautions known as ‘’5 April Decisions’’ were put into
action. Thanks to the high rated devaluation done in 1994 and conducted
economy policies, Turkey’s rivalry power in international markets relatively
increased. Besides taken precautions, Turkey’s entrance to The Customs Union,
and strategies applied after that step of Turkey created a rise tendency of foreign
trade volume of hers between the years of 1994-2013.
However, this rise was reasoned by fast rise of import because of removal of
customs’ limitations with EU countries. That’s why, as can be seen from the
graphic given below, the rate of exportation’s meeting importation showed a
decreased between the years of 1994 and 2000. In the same graphic,...