Since the Second World War, the international trade has displayed a performance beyond the development in the world economy on a permanent basis. While the world production increased with the annual average rate of 2% between the years of 1990-1995, the world trade has developed with the growth rate of 6%. The most important reason for this rapid growth is the gradual liberalisation of trade towards free trade in the countries and the significance attached to the negotiations to this effect. As a result of these developments, the duties that were applied for importation by the industrialised countries with the rate of nearly 40% in the years of 1950s have decreased to the rate of 3-4% nowadays. The policies in the same direction have gained much significance in the other regions of the world. Turkey has also tried to decrease the import duties to the levels applied by the member states of the European Union (EU) and concluded the Customs Union Agreement in the year of 1995. As a result of the Customs Union Agreement that was enforces between Turkey and the EU countries since the date of 1st January 1996, all protection was abrogated in the trade of industrial goods with the EU countries, and the Common Customs Tariff of EU has been initiated to be applied in trades with the other countries. This situation caused disequilibrium in the foreign trade balance for a while in the year of 1996. However, the exportation increased with the growth rate of 13% and reached to the figure of 26.2 billion dollars and the importation increased with the growth rate of 11.3% and reached to the figure of 48.6 billion dollars in the year of 1997. In the same year, the foreign trade volume has been realised as 74.8 billion dollars and the foreign trade deficit has occurred as 22.3 billion dollars. According to the report titled as “Developments in the World Trade” that was issued by the World Trade Organisation (WTO) in the year of 1997, Turkey has been included within 21 countries that have a rapidly developing foreign trade volume and the highest foreign trade dynamism.

Due to the negative events that were experienced regionally in foreign demands in the year of 1998, the exportation growth rate that displayed a rapid development in the previous year has slowed down and it has been realised as 26.9 billion dollars with a growth rate of 2.7%. Due to the shortage in the domestic demands, the stagnation experienced in the economy and the decrease in the petroleum prices with high rates, the importation has diminished with a rate of 5.4% and it decreased to the figure of 45.9 million dollars. Due to the decreases observed in the importation and exportation, the foreign trade volume has decreased with the rate of 2.6% and it realised as 72.9 billion dollars. As a result of the decrease in the importation, and the relatively low growth rate observed in the exportation, the foreign trade deficit has decreased with a rate of 15% to the figure of 18.9 million dollars.

The effects of the negative events that have been experienced in the world economy should be taken into consideration in the course of the evaluation of the foreign trade of Turkey and especially the exportations in the year of 1998. Actually, there has not been a negative development that could adversely affect the competitiveness power in respect of cost developments and the policies of foreign exchange rate in the year of 1998. However, the stagnation in the foreign demands has led to the realisation of the growth rate of 2.7%. High rated devaluations in the currencies of the Far East countries that were the competitive countries of Turkey in the export markets has negatively affected the performance of exportation in some sectors such as textile and ready-made clothing, etc. Similarly, the stagnation in the demands of these countries that constituted the main market of the iron-steel industry has led to a serious decrease in the exportation transactions of the aforesaid sector.

The exportation is encouraged in various means and manners in Turkey. The monetary initiatives have been substituted by the initiatives provided in the stage of production and investment in the recent years. Within this framework, credits, guarantees and insurance supports are provided for the exporters through the mediation of Turkish Eximbank. As a means of export initiative in the extensive framework, the bureaucratic formalities in the exportation have been decreased and simplified.