Part of the current government's plan to enter the European Union involves extensive trade liberalization. Turkey has steadily been moving "Westwardly" since Ataturk led Turkey to independence in 1923, but much of the country's efforts are in the cultural, religious, and strictly political spheres. Restructuring the economy from government-domination to more reliance on private organizations is one aspect of the new economic approach. This liberal ideology, however, is not the current reality.
The Heritage Foundation's 2007 Index of Economic Freedom gives a brief overview of Turkey's current trading situation:
The average tariff rate is low and continues to remain low. On the other hand, Turkey makes extensive use of alternate barriers to a free market. One measure is collecting a hefty value-added tax (about 20 percent) on the majority of imports, and even higher for any goods classified "luxury." In a bureacratic system where foreign agricultural produce is considered "luxury," the domestic farmers have benefited greatly.
Still, on paper, Turkey "follows basic WTO rules to regulate imports and tariff structures and has adopted the EU's common customs tariff for imports."
It's a sign of shrewd policy-making that Turkey is considered by many to be a free-trade zone with a liberalized market. At the same time, the country's "prohibitive tariffs for agriculture and food products, significant import taxes and fees, export subsidies and other export promotion programs, import licensing, non-transparent and complex standards and regulations, and service market access barriers," are all part of a very successful protectionist program.
Monday, January 29, 2007
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment