Korean FTAs in Effect
The Korea-Turkey Free Trade Agreement (FTA) went into effect on May 1, 2013.
Turkey is an emerging country equipped with the factors that make the country a promising market,
including its geopolitical importance, market potential and proximity to large markets.
With the customs union agreement with the EU and relatively cheap and abundant labor compare to that of Europe, Turkey is an ideal investment destination of global companies.
Significance of the Agreement
In 2001, Turkey recorded a growth rate of 8.5%, which was higher than the estimates of major international organizations including IMF.
Improved international ratings
As the world’s leading credit rating agencies including Moody’s and Fitch raised the credit rating of Turkey, the significance of the Turkish market draws global attention.
A bridgehead for the large market
Turkey has considerable values as a bridgehead for entering the world’s largest economy of the EU market (December 1995: Turkey signed a customs union agreement with the EU).
A geographical hub connecting Europe, Asia and the Middle East, serving the role of a foothold in Central Asia and Africa
Importance of the Turkish Market
- As of 2011, the country’s GDP is USD 772.6 billion and its per capita income is USD 10,491, which is currently on a steady rise.
- Turkey has a large domestic market driven by 74 million people (as of 2012), particularly with a large population of young people. The country is expected to provide plenty of human resources and to expand purchasing power in the future.
- The country’s imports to Korea are largely mineral products, whereas having small portions in agricultural and marine products. Therefore, the elimination of tariff seems to have only marginal effects, whereas it is predicted that tariffs on industrial goods, which are our main exports, are to be eliminated completely in seven years.