Export incentives related to the industrial sector of Turkey in post 1995 era

Foreign trade and expecially export have a stimulating and leading effect on the economic development of the country. In this connection, its observed that countries promote exports and export oriented production for a variety of reasons. In general developed countries aim at the preservation of the share that they obtain from world exports and the promotion of high value added, high tech products. Countries that want to reach their targets in short time prefer using open and monetery direct incentives while developed countries prefer using latent and indirect incentives. The most fundemental principal in the provision of export incentives is the sector priority, the product and the resource endowment of the country?s economy.In Turkey, export incentive measures have followed a dynamic line, developing and changing with respect to the economic conditions. For this reason, the instruments usage have demonstrated a significant alteration and development. In post 1995 era, within the framework of the Customs Union established between Turkey And EU. In article 34/1 of the Association Council Decision No. 1/95, there is a provision wich states that ?All types of aid which harm competition or carry the risk of harming competition, through the use of state sources by Union members and which support specific ventures or promote the production of certain products, do not abide with the good functioning of the Customs Union to the extent that is effects trade between the Union and Turkey.There is need to form an institution at the national level that can be named as ?Institution for Nonitoring and Evalutaing State Aids?. The function of this institution will be the evalutaion of state aid implemetations with repect to the criteria in the EU legislation.