The Course of Our Exports in the Second Century of the Republic

The early years of the Republic and the building blocks of economic development: On October 29, 1923, when the Republic of Turkey was proclaimed, many monarchical states, notably the United Kingdom, predicted that this was a romantic pipe dream and that monarchy would soon be reinstated in Turkey. Yet, not only has the Young Republic now passed its one hundredth anniversary, it has also become a model for independence initiatives in many countries around the world.

Our founding President Mustafa Kemal Atatürk said in 1922: “I understand sovereignty as national sovereignty and economy. Without this, sovereignty would be a mirage. The only true strength, the strongest foundation for achieving full independence is economics.” He also said, ‘No matter how great political and military victories are, if they are not crowned with economic victories, the victories cannot be permanent and will soon fade away.’

Accordingly, the Republic of Turkey first paid off the debts left over from the Ottoman Capitulations and adopted the closed import substitution model in the economy during this period.

As the domestic industry started to develop over time, the import substitution growth strategy was abandoned and the export-oriented open growth strategy was adopted with the January 24, 1980 decisions. Another development was the establishment of a “Customs Union” between Turkey and the European Union with the Association Council Decision 1/95 dated March 6, 1996, which was taken by the Council established by the 1963 Ankara Agreement, which envisaged the establishment of a partnership between Turkey and the European Union. The positive effects of the Customs Union Decision No. 1/95 started to be felt as of 2000, when Customs Law No. 4458, which reflected the customs legislation of the European Union, entered into force.

In the 57-year period covering the years 1923-1979 before the January 24, 1980 decisions, exports increased from $50.79 million to $2,261.19 million, and in the 19 years covering the years 1981-2000 after the January 24, 1980 decisions and before the Customs Union, exports increased from $2,261.19 million to $27,774.91 million. In the 23-year period between 2000 and 2022 after the Customs Union, it increased from $27,774.91 million to $254,170.94 million.

In light of these data, when the increase in exports since 2000 is taken into account, and considering that the increase will continue at the same pace in the future, Turkey's total exports are projected to exceed $430 billion in 2040. The details of this projection are reflected in the graph below.

In 2022, customs clearance of goods worth $618 billion was carried out in Turkey. Carrying out customs clearance of goods requires knowledge of many different legislations such as customs, foreign trade, and finance, as well as technical knowledge. Any mistakes made in customs procedures have severe penal sanctions; in some cases, these penalties have very severe consequences such as the revocation of the Authorized Economic Operator Certificate or the Approved Person Status Certificate.

Customs procedures can be carried out by customs brokers who meet the conditions of internship, training, and working time and who pass the exam, as well as by the owner of the goods. However, due to the complexity and risk involved in customs procedures, the majority of these procedures are carried out by customs brokers, depending on the preferences of customs-obliged parties. According to the data of the Ministry of Trade, as of 13.10.2023, 366 Authorized Customs Brokers (ACBs), 3,587 Customs Brokers, and 10,604 Assistant Customs Brokers are serving the sector.