Turkey's trade volume in free zones is declining

The slowdown in Turkey's foreign trade is negatively affecting the trade volume in free zones. The total trade volume of free zones, which reached its historical peak of 32.8 billion dollars in 2022, fell to 30.7 billion dollars in 2023 and to 27.7 billion dollars in 2024.

The total loss in trade volume experienced in free zones over the last two years has reached 15.6 percent. This contraction presents a challenging picture for companies and economic actors operating in these zones. In Turkey, which currently has 19 active free zones, the decline in the trade volume of these areas stands out as an important indicator of the country's foreign trade performance.

Experts state that the global economic slowdown, rising costs, geopolitical risks, and disruptions in supply chains are effective in this decline. At the same time, the decrease in the trade volume in free zones is sparking discussions that the tax advantages and other incentives offered by these areas may not be sufficiently effective in the international competitive environment.

Free zones maintain their status as an important trade hub for the Turkish economy. Manufacturing, export, and logistics activities are carried out intensively in these areas. However, the contraction in trade volume in recent years is forcing free zone administrations and the private sector to develop new strategies.

Economists emphasize that new-generation incentives, investments in digitalization, and policies that support integration into international markets are needed for the revitalization of free zones.

News Source: 12punto