The role of GATT and EU in Turkey foreign trade liberalization

Within the period continuing with the partnership which was formed by EC and starting by the membership of our country to GATT, (1950 - 1996), the main purpose in this study which the liberazation efforts in the foreign trade system is to what extent the foreign trade system of Turkey has been liberalized and the applied free foreign trade policies have been effective. The method which was used during the research has been the evaluation within the relation of cause and result of changes which develo ped on the foreign trade indicators of our country and the reached results have been mathematically proofing with regression analysis. Followingan import substitutive and conservative foreign trade policy before 1980, Turkey has considerably formed its industrial sub-structure, but as the formed-up industrial base has been kept far from foreign com petition, the existing export potential has not been evaluated appropriately. After 1980, without new production capacities were created, the indus trial base evaluated with high capacity usage rates and the exports increase happened depending on the usage of existing capacities-as also the expan sion seen on the imports of intermediary goods demonstrated. In developing countries like Turkey, while the imports dependence on the investment goods was considered normal, theimports dependence in our country has concentrated on intermediary goods. This development is the most important factor inhibiting the structural change in exports and causing the exports increase to be concentrated on traditional sectors. On the other side, the Imports expenditures showing an increase above the increase above the increase rate in exports revenues as of 1989 have emerged because of the liberazation realized in the exchange regime before the export sectors have gained a structure to be able to finance perpetually the import necessary for the economy. For this reason, the short term capital flows and short term debts are important tools as of 1989 financing the import expenditures. o -