Turkey – A Trade Update

Aug 15, 2018 | News

It has been widely reported that the Turkish currency is in crisis, with the situation apparently deteriorating on a daily basis. The Turkish Lira is down 45% against the US Dollar since the turn of the year and their annual inflation rate is 15%.

While Turkey’s growth has been strong over recent years, the economy has been showing signs of overheating. The construction industry has been booming, but the country has soaring debt and a large global trade deficit.

The refusal to raise interest rates, and a break down in relations with the US, continue to contribute to the imbalance of trade. Recently, President Trump introduced double duty tariffs on imports of steel and aluminium from Turkey – both commodities are considered vital to the Turkish export economy.

 

So how does this affect the UK?

 

Uniserve Group’s John Henderson – who seems to have been working in the trade since Istanbul was known as Constantinople – explains:

“The situation is strange between the UK and Turkey, as its the reverse of the global situation, where our exports to Turkey are incredibly slow and imports from Turkey are booming. This imbalance has led to exceptional increases in our import costs over the past twelve months, as declining export freight is contributing less and less to the round trip cost of vehicles”

“There is no immediate signs that this trend is slowing down and while the Lira continues to weaken it will benefit Turkey’s global outlook, but only enflame the UK situation. A declining Lira will continue to make Turkish products cheaper in the UK and our products more expensive to Turkey.”

Uniserve continue to operate our all-road driver accompanied import and export services between the UK & Turkey,  maintaining our unrivalled 7/8 day transit times. 

For more information about our Turkish services, or to find out how Uniserve’s global solutions can add leverage to your supply chain, then please call 01375 856060 or email info@ugroup.co.uk.

 

 

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