Impact of Trans-Pacific Partnership Agreement on Turkish Economy and Foreign Trade Assessed

TIM Chairman Mehmet Büyükekşi made important declarations at the launching meeting related with the study made about the impact of Trans Pacific Partnership (TPP) agreement on Turkish economy and foreign trade.

TIM Chairman Büyükekşi said the following:

·         After the blocking of Doha Negotiations, regional trade agreements gained speed in the world.

·         Considering the economic size of the countries that are parties to the agreement, TPP is the largest of these agreements.

·         Due to the extensiveness of the content and scope of the agreement, TPP is much more than just a trade agreement.

·         The agreement will affect the world countries and Turkey as well adversely. However, its impact on our country will be limited.

“Global economy is going through a process of transition. In this period where then economy maps are re-drawn rules are being re-written in trade, also. As a result of the failure of Doha Negotiations, which had started in 2001, due to conflict of interest between developed countries and developing countries on the basis of agriculture, regional trade agreements gained speed. Before 2001, in the period of 51 years, approximately 200 regional trade agreements had been signed, within the period of 15 years after this date, approximately 40 regional trade agreements were signed.

TPP agreement signed by and between 12 Pacific countries (USA, Canada, Mexico, Chile, Peru, Australia, New Zealand, Japan, Malaysia, Brunei, Vietnam and Singapore) has the feature of being the biggest of these agreements, considering the economic sizes of the countries that are parties to the agreement. These countries, which make up approximately 36% of the world economy and approximately 25% of the world goods and service trade, will not only remove the customs between each other but also eliminate the non-tariff barriers to increase the mutual trade volumes. That the content of the agreement covers investments, intellectual property rights, public tenders as well as field related with service sector such as the development of digital economy and technology make TPP much more than just a trade agreement.

Considering the size of the TPP Agreement and the impacts of its revolutionary features on the world economy, the said agreement will have impacts on countries that have clos trade relations with these countries as well as on Turkey. When we look at the trade between Turkey and TPP countries, we see that Turkey's exports to TPP countries in 9.7 billion dollars, its imports from these countries in around 20.5 billion dollars.

When TPP Agreement comes to force, with the increasing of the trade volume between the countries that are parties to the agreement, Turkey will have a loss of market in these countries like the other world countries. Also, a negative impact will appear in our exports to EU due to the fact that EU countries will have a production loss because of the agreement. However, the impact of the agreement on our exports will be limited. The said agreement, which is expected to come to force in 2018, will have variable impacts on our sectoral exports. For example while exports will be adversely affected in automotive, food and reedy-made clothing sectors, we hope that our exports will increase in machinery, glass, ceramic and cement sectors.

As Turkish Exporters Assembly, we are closely following up on the developments in the global economy and world trade. We intend to investigate the impacts of TPP, which has a rule-changing in the world trade, on our country and to provide guidance to our exporters, to shed light in their way. I hope this study that we have prepared together with Okan University will be beneficial for our country and our exporters”.