Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Turkey offers a promising but often complex and challenging market, requiring adaptability, persistence, and patience. U.S. exporters may face many of the same challenges that exist in other developing, middle-income markets, such as instances of inconsistent or contradictory policies; regulations and documentation requirements; tariff increases on a wide range of products; localization requirements in various industries; lack of transparency in tenders, as well as difficulties with the public procurement process, including price preference for Turkish companies and burdensome documentation; and a time-consuming, unpredictable judicial, legal, and regulatory framework.
Furthermore, Turkey has been experiencing an economic downturn since 2018, exacerbated by the COVID-19 pandemic. Companies may find weakened demand throughout the remainder of 2021 and into 2022. Burdensome debt levels (much of which is denominated in USDs and euros), a weakening TL, and volatile unemployment all weigh heavily on foreign or domestic firms’ ability to sustain, much less grow, operations in country. Turkey is also running current account and capital account deficits. As of December 2021, the central bank has implemented a 15% interest rate, despite an official inflation rate of 21%. Much of the private sector borrowing in Turkey has been via foreign exchange-denominated loans, which become harder to service if the lira’s value drops. The most effective method to address these obstacles is to work with a Turkish partner to obtain local insights and determine potential solutions. Careful planning and patience are the keys to success in Turkey. While success can never be guaranteed, CS Turkey is here to help U.S. business navigate the Turkish business environment.