Turkey’s economic situation remains fragile and the country’s vast potential for attracting investment remains largely untapped, according to a recently published Trade Policy Review (TPR) by the World Trade Organization (WTO).
This is in part because of politico-economic instability, high external indebtedness, slow progress in the implementation of its privatization program and restrictions on foreign direct investment.
Since 1998, Turkey has implemented four stabilization programs but they are yet to show full and sustainable effects. The country’s economic reforms could be strengthened by continued structural adjustment, including privatization, and by the improvement of its multilateral commitments, both in goods and services, urges the review.
This would enhance Turkey’s ability to attract foreign investment and the predictability of its trade regime. The report also calls for further simplification of the tariff, which remains complex, and the extension of the binding commitments to ensure further integration of Turkey into the multilateral trading system.
TPRs are an exercise, mandated in the WTO agreements, in which member countries’ trade and related policies are examined and evaluated at regular intervals. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
