284 Developments in the Economic Sector
 
Developments in the Economic Sector 285  
 
   
 
 
 
 
 

The average capacity utilization rate in the manufacturing industry which was 79% in 2005 rose by 81% in 2006. This rate slightly increased to 80.8% in March 2006.

 
 
Total imports, increasing by 17.3%, amounted to 137 billion USD in 2006. Imports of manufacturing industry products, rising by 15%, totaled 108 billion USD the same year. Meanwhile, Turkey’s total exports in 2006 increased by 16% and reached 85 billion USD. Exports of manufacturing industry products which make up 94% of total exports, increased by 16% and amounted to 80 billion USD.
 
Thanks to the experience it has gained over the years, Turkish industry has attained a level of making direct or indirect investments around the globe. In fact, substantial investments have already been made in Islamic countries, the Middle East and the Central Asian Republics in particular. The Customs Union between Turkey and the EU which has been in force since 1996 has also strengthened the competitive capability of Turkish industry. Meanwhile, the Parliament adopted a constitutional amendment in 1999, instituting international arbitration in cases of commercial disputes with foreign investors. The introduction of international arbitration is of paramount importance for foreign investments in projects requiring large financial sources and advanced technology. Consequently, investments in power plants, highways, bridges and dams have become more attractive than ever.
 

Official recognition of Turkey’s candidacy for full EU membership at the 1999 Helsinki Summit has accelerated efforts to harmonize technical rules and regulations used by the industrial sector with EU standards. Following extensive efforts in the field of industrial property rights, the harmonization process concerning patents, industrial designs, trademarks and geographical signs has been completed and the number of international agreements in effect has risen to ten. Besides, a Turkish Accreditation Agency has been set up to deal with the accreditation of testing and certification institutions.

 

 

  
   

Small and medium-size enterprises are dominant in the food industry.

 
Food, Spirits and Tobacco Industry: This sector, dominated by private companies, was about 15% of the total output of Turkish industry in 2005.
 
Production facilities are spread across the country in line with the diversity of agricultural products. The public sector is mostly engaged in the production of sugar, tea and tobacco products. According to the 2002 Workplace Survey, more than 250,000 people are employed by food, spirit and tobacco industry.
 
At present, over 30,000 companies are engaged in production activities in a variety of sub-sectors such as meat and meat products, milk and dairy products, flour and flour products, sugar and sweets, alcoholic and non-alcoholic beverages, tobacco products, cooking oil and processing of vegetables and fruits.
 
Turkey exported around 4.2 billion USD of food products, 132 million USD of beverages and 685 million USD of tobacco and tobacco products in 2006.