Commercial Relations between Turkey and Italy

TURKISH LAW BULLETIN
January 2015
Commercial Relations between Turkey and
Italy
Italy and Turkey share long-standing economic and political ties,
dating back to the times of the Ottoman Empire. Over the
centuries, Italy and Turkey have built a strong partnership based on economic cooperation
and political interests, under a common Mediterranean identity, and Italy has become one of
Turkey’s key trading partners and a strong supporter of Turkey’s European Union
membership.
Italy is currently Turkey’s 4th trade partner after Germany, China and Russia. Trade volume
between the two countries has steadily increased over the last decade, and it reached
approximately USD 20 billion in 2014.1 Current fields of cooperation include energy, defence
industry, tourism, infrastructure, automotive and chemicals.
Export from Turkey to Italy was approximately USD 5.4 billion in 2014.2 Major export
categories have been (i) road vehicles; (ii) textile yarn, fabrics and made-up textile articles;
(iii) articles of apparel and clothing accessories; (iv) vegetables & fruit; and (v) electrical
machinery and electronic appliances. On the other hand, imports from Italy totaled USD
9.023 billion in 2014.3 Statistics show that the top import categories have been (i) petroleum,
petroleum products and related materials; (ii) industrial machinery and equipment; (iii) road
vehicles; and (iv) iron & steel.4
In recent years, Turkey has represented a tempting investment climate for Italian investors.
Turkey’s geopolitical position and industry structure have played significant role for attracting
small, medium and large scaled Italian companies, and Italian companies have invested
more than USD 4.5 billion into Turkey to date.5 According to data provided by the
Investment Support and Promotion Agency of Turkey, there are currently more than 1,000
Italian companies operating in Turkey.6 Some of the major Italian companies operating in
Turkey through their subsidiaries are as follows:
1
Investor
Fiat Group
Company Name
Tofaş Türk Otomobil Fabrikasi Anonim Şirketi
Benetton Group
Benetton Giyim Anonim Şirketi
Alitalia
Barilla
Pirelli
Alitalia İtalyan Hava Yollari Anonim Şirketi
Barilla Gıda Anonim Şirketi
Türk Pirelli Lastikleri Anonim Şirketi
Sector
Automotive
Manufacture of casual wear,
footwear and accessories
Ticket Sales
Food Processing
Tire Manufacturer
Data obtained from the speech made by Ahmet Davutoğlu, the Turkish Prime Minister, at the Turkey-Italy
Business Forum in Istanbul on 12 December 2014.
2
Data obtained from the Turkish Statistical Institute’s web site.
3
Data obtained from the Turkish Statistical Institute’s web site.
4
Data obtained from the Turkish Ministry of Economy’s web site.
5
Data obtained from the speech made by Ahmet Davutoğlu, the Turkish Prime Minister, at the Turkey-Italy
Business Forum in Istanbul on 12 December 2014.
6
Data obtained from the Investment Support and Promotion Agency’s web site.
Artsan
Indesit Company
Assicurazioni
Generali
Magneti Marelli
Menarini Group
Bialetti Industrie
Cementir
Ferrero
Valtur
Recordati
Artsana Turkey Bebek ve Sağlık Ürünleri
Anonim Şirketi
Indesit Company Beyaz Eşya Pazarlama
Anonim Şirketi
Generali Sigorta Anonim Şirketi
Magneti Marelli Mako Elektrik Sanayi ve
Ticaret Anonim Şirketi
Matay Otomotiv Yan Sanayi ve Ticaret
Anonim Şirketi
Plastiform Plastik Sanayi ve Ticaret Anonim
Şirketi
I.E. Ulagay İlaç Sanayi Türk Anonim Şirketi
Cem Bialetti Ev Mutfak Eşyaları Anonim
Şirketi
Çimentaş İnşaat Taahhüt Sanayi Turizm Ve
Diş Ticaret Limited Şirketi
Çimbeton Hazır Beton ve Prefabrik Yapı
Elemanları Sanayi ve Ticaret Anonim Şirketi
Ferrero Türkiye Çikolata ve Tarım Ürünleri
Sanayi ve Diş Ticaret Anonim Şirketi
Valtur Tatil İşletmeleri Anonim Şirketi
Recordati İlaç Anonim Şirketi
Manufacture of baby clothing
and appliances
Manufacture of Major Domestic
Appliances
Financial Services
Manufacture of modules and
high-technology components
for automotive industry
Pharmaceutical
Manufacture of Small
Appliances
Cement and Concrete
Manufacturer
Chocolate Manufacturer
Tourism
Pharmaceutical
In addition to the above companies, prominent Italian companies have been making
important investments in Turkey in various sectors, by collaborating with major Turkish
entities:

In 2002, Unicredit and Koç Holding have established Koç Financial Services as a joint
venture, the main shareholder of which is Yapı Kredi (4th largest private bank of
Turkey).

In 2013, Ferrero, Italian chocolate manufacturer opened its 19th production plant in
Manisa. The investment value was approximately EUR 90 million.

SACE, a leading Italian credit insurance group, has a EUR 1.9 billion portfolio of
commitments in Turkey, mainly concentrating in the oil and gas industry,
infrastructure and industrial technology. Turkey is the second largest emerging
market (after Russia) in SACE’s portfolio.7

Italian pharmaceutical company Recordati has become one of the strongest players in
the Turkish market by taking over Yeni İlaç in 2008, and subsequently Dr. Frik in
2011. In 2014, Recordati announced a manufacturing investment of USD 50 million in
Turkey, in cooperation with the Investment Support and Promotion Agency of
Turkey. The plant will be built in the Çerkezköy Organized Industrial Zone located in
Tekirdağ, the North-western Turkey.

Astaldi has played a key role in major infrastructure projects in Turkey, such as the
Golden Horn Metro Bridge and the Istanbul Underground line on the Asian side. The
Golden Horn Metro Bridge was built by the consortium of Astaldi and Gülermak, and
completed in February 2014. The project value was EUR 147 million. The project
value of the Istanbul Underground was approximately USD 6.5 billion, and Astaldi
was one of the consortium members, along with other five Turkish companies. Astaldi
7
Data obtained from SACE’s web site.
2
has also been involved in the construction of Gebze-Orhangazi-Izmir Motorway
Project, which is planned to be gradually completed until the end of 2020. Other than
Astaldi, Ansaldobreda, Ansaldo STS, Lucchini and Selex Sistemi Integrati are also
active in Turkish infrastructure projects.
While Italian companies have a keen interest in Turkey, Turkish companies are also active in
Italy. Approximately 50 Turkish companies currently operate in Italy, and they have invested
over EUR 140 million to date.8 In June 2011, Turkish company Kale Group, which is the
world’s 13th largest ceramic manufacturer, acquired the Italian company Fincuoghi. In July
2013, Toksöz Group, a Turkish private group, purchased the 150-year old Italian chocolate
manufacturer Pernigotti. Çelik Halat, a public company producing steel wire ropes, purchased
Trafileria Del Laria in June 2014. In July 2014, Permak Group, a Turkish construction
conglomerate, bought the island of San Clemente in the lagoon of the Italian city of Venice,
together with a historic hotel located on the island.
Italy and Turkey have executed various international agreements. Some of the notable
agreements between these two countries are as follows:
Economic,
Technical
and
Industrial
Cooperation Agreement
Mutual
Administrative
Assistance
for
Prevention, Investigation and Repression of
Customs Offices
Double Taxation Prevention Treatment
Bilateral Investment Promotion and Protection
Agreement
Declaration on Joint Economic and Trade
Committee
16 December 1976
21 May 1980
27 July 1990
17 September 1998 (not entered into force)
8 May 2012
In order to support the strategic partnership between Turkey and Italy, several associations
have been established and many periodic organizations and events have been arranged in
Turkey. The Italian Turkish Dialogue Forum is one of the forums aiming to
encourage dialogue between Italian and Turkish societies, established in 2004. On 12
December 2014, hosted by the Foreign Economic Relations Board of Turkey, the TurkishItalian Business Forum took place. The Italian Trade Agency has been established in Istanbul
in 1985, with the purpose of providing support and information for Italian SMEs, aiming to
strengthen economic and commercial relations between Italy and Turkey.
Considering this strong cooperation between these two countries at each level, it appears
this strategic partnership will further develop in the future and create more investment
opportunities for both countries.
Begüm İnceçam ([email protected]) & Melis Özenbaş ([email protected])
© Kolcuoğlu Demirkan Koçaklı Attorneys at Law 2015
8
Data obtained from the Ministry of Foreign Affairs’ web site.
3