International trade rules

Export controls

What export controls limit international trade in defence and security articles? Who administers them?

From a domestic law perspective, the Law on Control of the Private Industrial Enterprises Producing War Weapons, Equipment, Vehicles and Ammunitions and Explosives (Law No. 5201) regulates the trade of defence and security objects in Turkey. In addition, as a party to international treaties such as the Treaty on Non-Proliferation of Nuclear Weapons, the Comprehensive Test Ban Treaty, the Chemical Weapons Convention, the Biological Weapons Convention and the Wassenaar Arrangement, Turkey is subject to the strict regulations of the international arms trade.

In general, the Ministry of National Defence is authorised to administer the international trade of military equipment, arms and ammunition.

Domestic preferences

What domestic preferences are applied to defence and security procurements? Can a foreign contractor bid on a procurement directly?

There is no restriction on foreign contractors making bids. However, the Turkish government mostly prefers local procurement or co-­procurement, which may require foreign contractors to transfer certain technologies to local capabilities.

Favourable treatment

Are certain treaty partners treated more favourably?

This is only possible if a treaty requires it to be so.

Sanctions

Are there any boycotts, embargoes or other trade sanctions between this jurisdiction and others?

Turkey applies boycotts, embargoes and other trade sanctions if they are a requirement of the treaties and conventions (UN, WTO, etc) to which Turkey is a party. Turkey also applies embargoes and trade sanctions to certain countries.

Trade offsets

Are defence trade offsets part of this country’s defence and security procurement regime? How are they administered?

Yes, the offset regime defines three type of categories:

  • category A, which consists of local production;
  • category B, which refers to export of product or service; and
  • category C, which requires tech transfer and investment.

The offset commitment shall not be lower than 70 per cent of the value of the procurement contract, and all processes of an offset programme are administered by the SSB.