The signing of several international agreements is certainly an indication of Turkey's growing international relations. One should note that the growth of international trade is related to individual entrepreneurs and volunteers who are committed to building good relations all around the world. This drives the economy and propels people from other countries to come to Turkey or welcome Turks abroad. In Africa, for example, Turkey has opened many new representative offices.
Many of these agreements signed concern commercial and economic matters. It is clear that the application and maintenance of these agreements is vital at this point to make Turkish economic growth sustainable.
Turkey has also been working on its legal and tax regulations to support the economy and make these agreements feasible and applicable in an efficient way.
In line with the political and legal steps taken, Turkey as an emerging market attracts investors with its strong economy, one that was able to withstand the latest global economic crisis. In this regard, let's take a quick look at these recently signed economic and commercial agreements:
On Jan. 15, 2012, an agreement on the Reciprocal Promotion and Protection of Investments was signed between Turkey and the Czech Republic. In line with this agreement, the countries that are party to the agreement will promote investors, and investor companies will be able to employ their own citizens in other countries that are party to the agreement. The purpose is to increase investment between the two countries.
The agreement has a strong dispute resolution clause to be applied in the event of a dispute. According to the agreement, a notification will be sent to the other party first and the parties will then try to settle this dispute amicably. Failing to do so, some dispute resolution methods, including International Centre for Settlement and Investment Disputes (ICSID) arbitration and the United Nations Commission on International Trade Law (UNCITRAL) arbitration, are likely to be resorted to.
On Jan. 12, 2012, Turkey signed an agreement to avoid double taxation with Brazil. Double taxation is usually a major obstacle to the growth of cross-border commerce between countries. Signing this agreement with Brazil is a huge move towards encouraging further business amongst these countries. Needless to say, Brazil, the biggest country in South America, is, with its emerging economy, also an important political partner of Turkey. I believe Brazil remained undiscovered for Turkish businessmen for a long time and that this delay has to immediately be rectified. Both Brazil and Turkey are aware of this and are now establishing the legal basis for the expansion of their business relations. I would also like to underline that a trilateral agreement between Turkey, Iran and Brazil over uranium enrichment was a big step for Brazil in making a name for itself in distant lands.
I will write about Turkish-Brazilian relations again in the coming weeks as they deserve more attention.
NOTE:Berk Çektir is a licensed attorney at law and available to answer questions on the legal aspects of living in Turkey. Please send inquiries to b.cektir@todayszaman.com. If a sender's letter is published, names may be disclosed unless otherwise expressly stated by the sender.
DISCLAIMER:The information provided here is intended to give basic legal information. You should seek legal assistance from a licensed attorney when conducting legal transactions and not rely solely on the information in this column.
