Greek Exports to Turkey Face Steep Hurdles Despite Market Potential

07:58 12/11/2024 - Πηγή: iEfimerida

Turkey presents a tantalizing prospect for Greek businesses with its proximity and massive import market exceeding €360 billion.

However, the reality of exporting to Turkey, especially in the food and agricultural sectors, is fraught with challenges.

High tariffs and a complex web of bureaucratic obstacles are

stifling Greek exporters' ability to capitalize on this potential.

While Greek exports to Turkey reached €1.8 billion in 2023, this figure is dwarfed by Turkey's imports from other countries. Greece ranks a disappointing 37th among Turkey's suppliers, underscoring a significant trade imbalance.

The disparity is further emphasized by the fact that Turkey's exports to Greece exceed €2.7 billion, leaving Greece with a trade deficit of nearly €907 million.

The struggles faced by Greek exporters are particularly evident in the food sector. Last year, Greek food exports to Turkey amounted to a paltry €50 million. This can be largely attributed to the exorbitant tariffs imposed by Turkey.

For instance, some meats face tariffs of up to 225%, while cheeses like feta are subject to a staggering 180% tariff and kefalotyri cheese faces a 138% tariff. Even olive oil, a staple of Greek exports, is burdened with a 31.2% tariff. Tariffs on fruits, cereals, and vegetables range from 7% to over 100%, depending on the specific product.

These protectionist measures, implemented under Turkey's customs regulations, are particularly frustrating as they apply even to goods originating from the European Union, despite the existence of the EU-Turkey Customs Union agreement. Adding to the complexity are various taxes and surcharges levied on imported food products, including a special housing fund tax and a special consumption tax on certain alcoholic beverages.

The combined weight of these barriers creates a highly unfavorable environment for Greek exporters seeking to compete in the Turkish market. Until these obstacles are addressed, the potential for increased trade and economic cooperation between the two nations will remain significantly constrained.

By Yiannis Pappous

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