Turkey Signs Free Trade Agreement With South Korea

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Researched by Industrial Info Resources (Sugar Land, Texas)--Turkey and South Korea signed their free trade agreement (FTA) on Wednesday, June 1, 2012, paving the way for South Korean firms to tap deeper into Turkey. Turkish Economy Minister Zafer Caglayan and counterpart Seoul Trade Minister Bark Tae-ho signed the pact on merchandise in Ankara.

Turkey seeks to expand trade relations with Asian countries. Last year, South Korea exported goods worth $5.1 billion to Turkey. The country imported items worth $800 million. The agreement will go into effect at the end of 2012.

"The agreement will provide the two countries with a free trade volume of more than $10 billion in less than three years," said Turkish Economy Minister Caglayan. Also, he said that the free trade agreement would lead to the two countries launching investments in third countries. "We are also preparing to sign a similar agreement with Malaysia and negotiating a deal with Japan."

Currently, Turkey has 16 free trade agreements in force, namely: European Free Trade Association (EFTA), Macedonia, Croatia, Bosnia-Herzegovina, Albania, Israel, Palestine, Morocco, Tunisia, Egypt, Syria, Georgia, Serbia, Montenegro, Chile and Jordan. According to the Turkish Economy Ministry, the agreements signed with Lebanon and Mauritius are under ratification process.

For the period of 2000 to 2011, while Turkey's total foreign trade volume increased 357%, foreign trade with FTA partners has increased 412%. Turkish trade volume with the FTA partner countries rose to $25.8 billion in 2011.

South Korea already has signed free trade deals with the U.S., the European Union, India, the Association of Southeast Asian Nations, Singapore, Peru, Chile and the (EFTA). South Korea also launched free trade talks in May with China, its biggest export market.

On June 26, 2012, Turkish newspaper Aksam reported that there was a division of South Korea's third-largest industrial conglomerate SK Group (Seoul, South Korea). SK Gas is seeking to enter the Turkish energy market via a merger or through a direct investment, said the company's officials. The SK Group has recently signed a strategic partnership and cooperation agreement with Turkey's Dogus Holding to focus on a number of sectors such as technology, energy, infrastructure, media and tourism in Turkey.

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