international business

Turkiye: Main Mistakes in Organising Export

STARTINFORUM Business, Economy, Export from Turkey , , , 0 Comment

Exporters from Turkey, especially novices, often face a range of challenges and make common mistakes that can hinder their success. These issues can stem from a lack of experience, insufficient research, or external economic factors.

Here are the main mistakes and challenges faced by Turkish exporters.

I. Lack of Thorough Preparation & Market Research

  1. Insufficient Market Research: This is arguably the most fundamental mistake. Exporters often:
    • Fail to identify genuine demand for their product in target markets.
    • Don’t fully understand customer preferences, local tastes, or cultural nuances.
    • Neglect to thoroughly research competitors (local and international) and their pricing strategies.
    • Don’t factor in local distribution channels and how their product will fit in.
  2. Not Understanding Target Market Regulations & Standards:
    • Failure to obtain correct certifications: Many products require specific certifications (e.g., CE marking for Europe, Halal certification) or health/phytosanitary certificates. Not having these leads to goods being held at customs, fines, or rejection.
    • Ignoring local import duties and taxes (VAT): Underestimating the total cost to the buyer (DDP – Delivered Duty Paid) can make their product uncompetitive.
    • Incorrect commodity codes (HS codes): Using the wrong 10-digit HS code can lead to higher duties, fines, or delays.
    • Non-compliance with labeling and packaging rules: Different countries have specific requirements for product information, language, and packaging materials.
  3. Inadequate Due Diligence on Buyers: Especially for payment methods other than cash in advance or confirmed Letter of Credit, Turkish exporters might not thoroughly vet their international buyers’ creditworthiness or reliability, leading to payment delays or defaults.

II. Operational & Logistical Errors

  1. Incomplete or Inaccurate Documentation: This is a recurring problem. Missing or incorrect documents like commercial invoices, packing lists, bills of lading/air waybills, or certificates of origin are a primary cause of customs delays, extra shipping costs, and even cargo disputes or seizures.
  2. Underestimating Total Costs: New exporters often focus only on product cost and main logistics. They fail to account for “hidden” costs such as:
    • Banking fees, insurance.
    • Customs examination fees, warehouse costs at destination.
    • Cost of potential returns, defective products.
    • Marketing and e-commerce marketplace fees (if applicable).
  3. Poor Logistics Management & Unreliable Transportation:
    • Not choosing the most suitable or safest transportation method for their product and destination (e.g., trying to use sea freight for a time-sensitive, high-value product).
    • Working with unreliable freight forwarders who lack experience in specific routes or with certain types of goods.
    • Ignoring insurance coverage for shipments against loss, damage, or theft.
  4. Substandard Quality Control: Assuming the producer understands all requirements or that defects can simply be shipped back to the supplier is a costly mistake. Lack of proper quality inspection before shipment can lead to dissatisfied customers, damaged reputation, and costly returns or discounts.

III. Financial & Economic Vulnerabilities

  1. Vulnerability to Currency Fluctuations: With the Turkish Lira’s volatility, exporters may not adequately hedge against currency risks, eroding their profit margins if the Lira depreciates significantly against their foreign currency revenue.
  2. High Input Costs & Low Productivity: Turkish industries, particularly labor-intensive ones like textiles and apparel, face increasing input costs (labor, energy) and can struggle with lower productivity compared to competitors in East Asia or North Africa, making Turkish products less price-competitive.
  3. Financing Challenges: High interest rates and financing costs in Turkey can make it difficult for exporters to access working capital or secure competitive loans, especially for SMEs.

IV. Strategic & Market-Related Weaknesses

  1. Over-reliance on Traditional Markets (e.g., EU): While Europe is a crucial market, over-dependence can be risky if demand there slows down. Not diversifying into new, growing markets (e.g., Africa, Central Asia, other emerging economies) can limit growth potential.
  2. Insufficient Value-Added Products: Turkey’s export structure still leans heavily on labor-intensive and capital-intensive goods. There’s a recognized weakness in exporting high-tech, innovation, and R&D-oriented products with high added value, which are key for long-term competitiveness.
  3. Lack of Branding and IP Protection: Neglecting to register trademarks or protect intellectual property in target markets can lead to imitation and loss of market share.
  4. Communication Barriers & Cultural Misunderstandings: Even with good English, nuances in communication and cultural differences can lead to misunderstandings with partners, distributors, or customers, affecting relationships and business outcomes.
  5. Not Leveraging Government Support & Incentives: Some exporters might not be fully aware of or effectively utilize the various support programs, loans, and credit insurances offered by Türk Eximbank and the Ministry of Trade.

To overcome these challenges, Turkish exporters, particularly novices, must prioritize thorough research, meticulous planning, risk management, continuous learning, and seeking professional advice from customs brokers, trade consultants, and legal experts.

For more guidance and recommendations for your business to enter the international market with your products and services, please feel free to contact us.

Countries Which Should be Taken with Precautions: Guidance for Turkish Exporters

STARTINFORUM Business, Economy, Export from Turkey , , 0 Comment

Identifying a country that absolutely shouldn’t be targeted with any Turkish exports is a strong statement, as even very challenging markets might have niche opportunities. However, based on various factors, there are countries where the effort, risk, or lack of demand would make them highly unfeasible or inadvisable for Turkish exporters, especially novices.

Here are the categories of countries that should generally be avoided or approached with extreme caution, and specific examples.

1. Countries under Comprehensive International Sanctions

  • Reason: Exporting to countries under severe international sanctions (especially from the UN, US, EU) carries immense legal and financial risks for the exporter, their bank, and their country. Transactions can be blocked, assets frozen, and severe penalties imposed. Even if Turkey itself doesn’t impose the same sanctions, engaging in such trade can lead to “secondary sanctions” or a loss of access to international financial systems.

  • Examples of such countries (subject to change and varying degrees of sanctions):
    • North Korea: Virtually impossible to conduct legitimate trade due to extensive UN, US, and other sanctions.

  • Iran: While Turkey has historical trade with Iran, extensive US sanctions (especially secondary sanctions) make it extremely risky for most Turkish businesses, particularly those dealing in sectors covered by sanctions (e.g., oil, financial transactions) or using US dollar transactions.

  • Syria: Heavily sanctioned by the US and EU. Trade is severely restricted and highly risky.

  • Russia (for certain goods/end-users): While Turkey has not fully aligned with Western sanctions on Russia, exporting certain goods (especially dual-use items, high-tech components, or anything that could aid Russia’s military) can still incur risks of secondary sanctions from the US/EU. This is highly context-dependent on the specific product and end-user.

  • Cuba: Under long-standing US embargo.

2. Countries with Active Trade Bans or Severe Restrictions Specifically Against Turkish Goods

  • Reason: If a country has deliberately imposed bans or extremely high non-tariff barriers on Turkish products due to political or economic reasons, market entry becomes virtually impossible or highly unprofitable.

  • Example:
    • Armenia: Following the Second Nagorno-Karabakh War, Armenia imposed a ban on all products of Turkish origin (with some exceptions for raw materials). While temporary bans have expiry dates, the underlying political tension makes it a very difficult market. Even historically, trade was largely unidirectional (Turkish exports to Armenia).

3. Countries with Extremely Limited Demand or Purchasing Power for Turkish Products

  • Reason: These are often the Least Developed Countries (LDCs) or nations facing severe economic crises, civil unrest, or extremely small populations with very low per capita income. The cost of logistics might far outweigh any potential revenue.

  • Examples (general categories, as specific situations can vary):
    • Countries in active conflict zones: (e.g., Yemen, parts of Sudan, Afghanistan) – Security risks, destroyed infrastructure, and collapsed economies make trade highly impractical and dangerous.
    • Very small island nations with limited economies: (e.g., some Pacific Island nations) – Unless you have a highly specialized niche product, the logistics costs and tiny market size make it uneconomical.
    • Countries with extremely low GDP per capita and high self-sufficiency in relevant sectors: If a country produces most of what it needs locally and its population has very limited disposable income, demand for imported goods (especially higher-quality Turkish goods) would be minimal.

4. Countries with Unacceptable Levels of Business Risk

  • Reason: High levels of corruption, extreme political instability, very weak rule of law, or severe currency convertibility issues can make doing business impossible or fraught with unacceptable risk of non-payment or asset seizure.

  • Examples: This is less about specific countries and more about the current context of certain nations. A country might be promising one year and highly risky the next due to internal conflicts or political upheaval. Always check current political stability ratings and corruption indices (e.g., Transparency International).

Important Caveats

  • Niche Opportunities: Even in highly challenging markets, there might be a very specific, high-demand, high-margin niche for certain goods. However, this is usually for experienced exporters with significant risk tolerance and local knowledge.

  • Humanitarian Aid: Exporting goods for humanitarian aid or specific government-to-government projects might bypass some commercial restrictions, but this is a very different business model.

  • Dynamic Landscape: Geopolitical situations and economic conditions change rapidly. What’s a “no-go” today might be a cautious “maybe” next year, and vice-versa. Always stay updated on international relations and trade policies.

For a novice Turkish exporter, the best advice is to avoid any country that presents significant sanctions risk, explicit trade bans, or extreme political/economic instability that would directly impede basic commercial operations. Focus on markets with established demand, stable economies, and good trade relations with Turkey.

For more guidance and developing an effective strategy of exporting goods from Turkey, please feel free to contact us.

From Turkey To Poland: Export Trends and Prerequisites

STARTINFORUM Business, Economy, Export from Turkey , , , , , 0 Comment

Poland is absolutely a promising destination for Turkish exports which is caused by a number of reasons.

Here they are, based on current trends and future outlook.

1. Strong and Growing Trade Relationship

  • Significant Volume: The trade volume between Turkey and Poland has increased rapidly, jumping from $7 billion to $12 billion in a very short time. This robust growth indicates strong demand and successful existing partnerships.

  • Ambitious Targets: Both Turkish and Polish leaders have set an ambitious target of $15 billion for bilateral trade, signaling a clear political will to further deepen economic ties.

  • Trade Balance in Turkey’s Favor: Turkey currently holds a positive trade balance with Poland (meaning Turkey exports more to Poland than it imports), though the gap has narrowed slightly in recent years. This indicates a strong market for Turkish goods.

2. Poland’s Robust Economic Outlook

  • Solid GDP Growth: Poland’s economy is expected to maintain robust growth in 2025 (forecasted at 3.3%) and 2026 (3.0%). This growth is primarily driven by strong private consumption (due to rising real wages and increased government benefits) and investment (especially EU-funded public investment in infrastructure and energy).

  • Strategic Location: Poland’s central position in Europe makes it a vital gateway for trade between Western and Eastern Europe. Its well-developed infrastructure (ports, railways, highways) facilitates efficient logistics and distribution.

  • EU Membership Benefits: As an EU member, Poland benefits from free trade within the EU, reduced tariffs, and streamlined customs procedures, making it an attractive entry point to the broader European market.

3. Key Export Sectors with High Potential

Turkish exports to Poland are diverse, indicating wide-ranging opportunities. The top categories in 2024 highlight particular strengths:

  • Vehicles (other than railway, tramway): This is by far the largest Turkish export to Poland ($1.62 billion in 2024), showing a strong demand for Turkish-made or assembled vehicles and parts.

  • Machinery, Nuclear Reactors, Boilers: A significant category ($619.19 million in 2024), driven by Poland’s industrial development and investment.

  • Electrical, Electronic Equipment: Another substantial export ($459.46 million in 2024), reflecting the demand for technology and consumer electronics.

  • Textiles and Apparel (Knit and Not Knit): Combined, these categories represent over $680 million in 2024. Turkish textiles are highly competitive in Poland due to quality, design, and proximity (as Poland also imports heavily from China, Bangladesh, and Germany in this sector).

  • Aluminum: A surprisingly large export ($317.62 million in 2024), indicating industrial demand.

  • Plastics: ($280.32 million in 2024) – used across various manufacturing sectors.

  • Edible Fruits, Nuts, Peel of Citrus Fruit, Melons: A strong agricultural export ($255.26 million in 2024), benefiting from Poland’s import needs for fresh produce.

  • Articles of Iron or Steel: ($259.99 million in 2024) – for construction and manufacturing.

  • Defense Sector: Described as a sector with “significant progress,” with “Arms and ammunition, parts and accessories” at $106.82 million in 2024. This is a growing area of cooperation.

  • Pharmaceutical Products: A consistent export ($63.05 million in 2024), indicating demand for Turkish pharmaceuticals.

  • Furniture, Lighting Signs, Prefabricated Buildings: ($57.47 million in 2024) – aligning with Poland’s construction and real estate development.

4. Favorable Regulatory and Political Environment

  • Free Trade Agreement (FTA): A Free Trade Agreement between Turkey and Poland has been in force since 2002, eliminating tariffs on industrial products and providing a framework for trade in agricultural products. This significantly boosts competitiveness.

  • Strategic Partnership: Relations between Turkey and Poland have been elevated to a “strategic partnership” since 2009. Both countries are members of NATO, OECD, OSCE, and the WTO, ensuring a stable and cooperative political environment.

  • Shared Energy Goals: Both countries are focusing on reducing energy dependence and increasing renewable energy, creating potential for cooperation and related goods/services.

  • Polish-Turkish Chamber of Commerce: Established in 2007, this body actively supports mutual collaboration and strengthens economic ties.

Conclusion

Given the strong historical ties, robust economic growth in Poland, significant existing trade volumes, ambitious future targets, and the diverse range of successful Turkish exports, Poland is indeed a very promising and strategically important destination for Turkish exports.

Turkish exporters should prioritize market research within these key sectors to identify specific niches and capitalize on the existing goodwill and economic momentum between the two countries.

For guidance and consultancy, as well as developing effective strategy for export from Turkey, please feel free to contact us.

Which Goods From Turkey Should be Exported to Tajikistan?

STARTINFORUM Business, Economy , , , , 0 Comment

Turkey and Tajikistan share friendly and cooperative relations, backed by a legal framework of numerous treaties and protocols aimed at strengthening economic and trade ties. While Tajikistan’s economy faces challenges, it presents a growing market for Turkish goods due to ongoing development, a relatively undiversified local production base, and consumer demand.

Here are the goods from Turkey that should be targeted for export to Tajikistan, based on current trends, Tajikistan’s import needs, and Turkey’s export strengths.

I. Key Existing Export Categories (Continue and Expand)

Current trade data shows these are already strong performers for Turkish exports to Tajikistan:

  1. Textiles and Apparel:
    • Why: This is historically a top export category from Turkey to Tajikistan, including knitted and non-knitted apparel, other made textile articles, and textile floor coverings (carpets). Turkish textiles are known for their quality, design, and competitive pricing, appealing to consumer preferences.
    • Specifics: Ready-to-wear clothing (men’s, women’s, children’s), home textiles (bedding, towels), specialized fabrics, and carpets.
  2. Machinery, Nuclear Reactors, and Boilers:
    • Why: Tajikistan is investing in its industrial and infrastructure development, creating a consistent demand for various types of machinery and equipment.
    • Specifics: Industrial machinery, construction equipment, power generation machinery, and parts.
  3. Electrical and Electronic Equipment:
    • Why: As Tajikistan modernizes its infrastructure and industries, and as consumer spending potentially rises, demand for electrical and electronic goods increases.
    • Specifics: Home appliances, telecommunications equipment, various electronic devices, and electrical components.
  4. Plastics and Plastic Products:
    • Why: Used across various sectors, including packaging, construction, and consumer goods manufacturing.
    • Specifics: Plastic pipes, fittings, sheets, films, and various finished plastic articles.
  5. Furniture, Lighting, and Prefabricated Buildings:
    • Why: Driven by ongoing construction activities, both residential and commercial, and the development of new urban areas.
    • Specifics: Home and office furniture, lighting fixtures, and components for prefabricated structures.

II. High Potential Growth Areas (Leverage Development Priorities)

Tajikistan’s development goals and current economic structure indicate strong future demand in these areas:

  1. Construction Materials:
    • Why: Tajikistan is undertaking significant infrastructure projects (roads, housing, energy, especially the Roghun Dam), and its domestic capacity for construction materials is limited. Turkish companies have a strong track record in the contracting sector in Tajikistan.
    • Specifics: Iron and steel articles (rebar, structural steel), ceramic products (tiles, sanitary ware), glass and glassware, cement, plaster, and stone.
  2. Pharmaceutical Products:
    • Why: Tajikistan’s healthcare sector is undergoing development, and there’s a constant need for a wide range of medicines and medical supplies. Turkey is a robust producer of generic and branded pharmaceuticals.
    • Specifics: Packaged medicaments, bandages, medical consumables, and potentially some basic medical equipment.
  3. Food Products and Agricultural Inputs:
    • Why: Tajikistan imports a significant portion of its food needs, and there’s a push to modernize its agriculture.
    • Specifics:
      • Processed Foods: Confectionery, canned goods, dried fruits, nuts, and various packaged food preparations.
      • Fresh Produce: Citrus fruits, other fruits and vegetables depending on seasonality and local production gaps.
      • Agricultural Machinery & Equipment: Small-scale farming equipment, irrigation systems, and agricultural processing machinery.
      • Fertilizers and Pesticides: To improve agricultural productivity.
  4. Vehicles and Parts:
    • Why: As the economy grows and transportation infrastructure improves, demand for both passenger and commercial vehicles, along with their parts, will increase.
  5. Miscellaneous Chemical Products & Cosmetics/Toiletries:
    • Why: Growing consumer markets and industrial needs.
    • Specifics: Soaps, lubricants, waxes, perfumes, cosmetics, and various industrial chemical products.

III. Niche or Emerging Opportunities

  • Defense Industry Products: Tajikistan recently ratified a military assistance agreement with Turkey, specifically mentioning potential purchases of “weapons, ammunition, UAVs and modern devices.” This opens a new avenue for defense exports, particularly drones (like the Bayraktar TB2), armored vehicles, and other military equipment where Turkey has become a global player.
  • Renewable Energy Technologies: Tajikistan has enormous hydropower potential and is focusing on developing its energy sector. Turkish expertise in renewable energy, especially in equipment and project development, could be valuable.
  • Digitalization and IT Services: As Tajikistan aims to digitalize its economy and public services (“single window” initiatives), Turkish IT solutions and software could find a market.

Factors Favoring Turkish Exports to Tajikistan

  • Strong Bilateral Relations: Over 30 treaties and protocols underpin cooperation, fostering a supportive environment for trade and investment.
  • Geographic Proximity and Connectivity: While not bordering, the Central Asian corridor via the Caspian Sea facilitates trade.
  • Cultural Affinity: Shared historical and cultural ties often lead to a preference for Turkish goods.
  • Turkish Contracting Sector Presence: Turkish companies have undertaken significant construction projects ($659 million across 52 projects), which creates a natural demand for Turkish-made materials and equipment.
  • Turkish Investment: Over $285 million in Turkish capital has been invested in Tajikistan, stimulating demand for Turkish goods within these ventures.

To succeed, Turkish exporters should focus on competitive pricing, reliable logistics, adherence to quality standards, and building strong business relationships in Tajikistan. Understanding local regulations and the predominantly state-driven nature of the economy is also crucial. Sources

Skip to toolbar