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Trade

Kilis economy is largely based on agriculture and animal husbandry. When examining the land distribution of Kilis province, the total area is 1,520,100 decares. According to TSI 2018 data, 68% (1,029,448 decares) of these lands are agricultural lands. Of these agricultural lands, 53% (548,400 decares) of fruits, beverage and spice crops area, 38% (391.601 decares) of cultivated areas, 4% (48,534 decares) of vegetable gardens and 3% (40,913 decares) ) fallow areas. In these areas cereals and other vegetable products, vegetables, fruit and beverage products are produced. According to Kilis Province of Food, Agriculture and Animal Husbandry Department’s 2018 data, in the province there are a total of 7,889 registered farmers.

 

When compared to other provinces in the TRC1 region, it is  observed that industrialization is not at the desired level in Kilis. But along with the 'New Incentive System' it is seen that in Organized Industrial Zone and across the province new investment is realized. In terms of investment in the coming years, the province is expected to become the centre of attraction (General Directorate of Industry, 2012).

 

Trade Structure of the Province

 

Having borders with Syria and due to its geographical location seems to be quite a lively commercial life in Kilis. Due to location on the historical Silk Road it is seen that there is a deep-rooted tradition of cross-border trade. Until the middle of 1999, with the effect of cross-border trade an intense commercial activity is seen. However, after this date cross-border trade could not be made for many years, trade is made  only through the normal import or export  from Öncüpınar Directorate of Customs border crossing (General Directorate of Industry, 2012).

In June 2009 with the Council of Ministers Decision border trade was resumed, but trade of important and a sufficient amount of products needed were not permitted by  Under secretariat of Foreign Trade, that’s why it was not interested by persons and companies who are engage in trade (General Directorate of Industry, 2012).

According to the records of the Kilis Chamber of Commerce and Industry in 2013, there are  55 t stock companies (A.Ş.),  , 397 limited companies (Ltd. Şti.), 31 foreign partnership companies, 32 Cooperatives and 601 sole proprietorship in Kilis.

 

 

Commerce

 

It is seen that the commercial life is very active due to being a neighbor to Syria and its geographical position in Kilis. Due to its presence on the historical Silk Road, there is a long-standing tradition of border trade. Until the middle of 1999, there is a strong commercial activity with the effect of border trade. However, after this date, no border trade has been carried out for many years, so trade is only carried out through Öncüpınar Customs Directorate border gate through normal import or export. In June 2009, the border trade was resumed with the decision of the Council of Ministers, but individuals and firms engaged in trade were not interested with the border trade due to the restrictions of Undersecretariat of Foreign Trade for important and needed products.

 

It is clear that the political instability and conflict environment that has emerged in recent years in countries such as Syria and Iraq, which are the important trading partners of Kilis province, negatively affect the commercial structure of the province. However, considering that the recent military operations created a peaceful environment in the region, the commercial life of the province is expected to increase significantly in the next period.

 

 

Export

 

In order to maintain economic stability and ensure sustainable development, it is of great importance that our exports are not affected by cyclical changes, that global threats are transformed into opportunities, and that the share of Turkey and the Kilis province in particular reflects the potential of world exports.

 

For this purpose, primarily in the production of high level branded products added value for the development of exports in Kilis, the development of product diversity by supporting R&D activities and increase their share in the export of these products, quality and branded Turkish products, mainly to the Middle East country, in foreign markets it is important to promote and market with customer-oriented and dynamic techniques and to support all these areas.

 

Kilis Province, has a significant export potential for Turkey in terms of border trade. Located in the confluence of the Turkey’s Mediterranean Region and the Southeastern Anatolia Region,  close to Mersin and Iskenderun ports and proximity to the border with neighboring Syria having many advantages. This is also seen from the increasing export realizations over the years. As can be seen from Graph, provincial exports, which were realized as $ 45 million in 2014, increased significantly in 2015 and 2016, reaching $ 82.1 million and $ 105.2 million, respectively.

 

The acceleration in this 3-year period in 2017,  declined to $ 71.2 million. The decline observed in 2017 is the result of factors such as the civil war in Syria and the geopolitical risks involving problems with Northern Iraq. Despite the decline in 2017, exports recovered by 13% over in 2018, reaching to $ 80.8 million.

 

Provincial and ISIC Classification of Export Value (USD)

Industry

2014

2015

2016

2017

2018

Furniture and other products classified not else

6.511.665

12.151.759

8.608.484

27.580.746

27.523.357

Agriculture and livestock

1.330.877

1.243.209

2.405.539

3.064.353

7.805.510

Food products and beverages

3.486.042

1.889.873

3.380.072

4.625.124

8.326.008

Textile products

3.979.547

10.314.424

17.707.555

7.509.905

7.897.690

Clothing apparel

3.895.996

12.452.725

24.231.851

4.508.147

4.115.706

Tanned leather, luggage, handbags,

saddlery and footwear

973.003

786.025

585.421

784.284

3.147.592

Paper and paper products

561.887

1.069.238

815.182

341.136

204.213

Chemical material and products

2.055.904

5.863.000

4.277.642

2.708.251

3.553.069

Plastics and rubber products

1.006.481

2.638.201

5.079.290

523.311

1.015.763

Non-metallic other metallic products

18.910.499

21.954.824

8.509.196

12.875.675

3.178.263

Primary metal industry

487.200

1.537.603

1.770.138

120.209

5.101.930

Metal products (except machinery

and equipment)

483.793

3.140.330

14.274.654

664.686

272.42

Machinery and equipment classified

not else

343.01

2.222.769

8.446.563

2.047.163

2.787.765

Motor vehicles and trailers

470.691

2.563.762

2.797.314

1.926.392

1.923.849

Electrical machinery and device classified not else

67.882

972.748

934.733

380.324

2.092.091

Others

              814.917

           1.367.566

             1.380.267

          1.591.280

             9.351.914

Total

45.070.685

82.168.056

105.203.447

71.250.986

80.803.138

Source: Turkish Statistical Institute (TSI), 2019

 

Looking at the data in Table below, trade with Kilis and other Middle Eastern countries other than Syria and Iraq is almost non-existent, with some (Qatar, Kuwait, Jordan) unfortunately no commercial activity is observed. For the Kilis economy, which is highly affected by the current political crisis in Syria, it is vital to increase trade activities with Middle Eastern countries (Saudi Arabia, UAE, etc.) and to create trade volume with other countries (such as Iran, Balkan Countries and Turkic Republics).

 

Kilis Province Major Exported Countries (USD) 

Country

2014

2015

2016

2017

2018

Syria

26.967.674

35.907.269

20.539.159

50.007.812

52.704.754

Iraq

10.287.116

14.797.298

11.074.998

8.500.256

14.428.352

Spain

-

1.335.331

1.453.255

2.075.138

1.693.489

China

-

-

-

-

2.221.611

UAE

332.783

343.103

596.574

529.937

1.588.959

Italy

-

487.435

645.081

935.797

1.176.798

Germany

362.806

837.710

1.226.652

1.754.846

861.774

England

-

482.575

1.207.315

463.959

480.624

Poland

-

4.912.106

425.171

1.216.999

449.899

KSA

-

49.731

48.929

924.374

143.961

Romania

4.107.374

1.741.066

322.627

462.839

138.481

Lebanon

801.952

946.512

3.376.491

483.703

73.773

 Source: Turkish Statistical Institute (TSI), 2019

 

 

Import

 

As can be seen in graph, which shows import data for Kilis, imports been on the rise in the period 2013-2015, but shown a steady decline since 2015. The reason is that increase in exchange rates and the efforts to close the current account deficit in the mentioned period are considered to be effective. In 2014, the province’s imports amounted to USD 31.2 million, with USD 41.5 million, USD 34.8 million and USD 29 million in 2015, 2016 and 2017, respectively. In 2018, imports increased by 51.7% compared to the previous year and remained at USD 44 million.

 

As it can be seen in Table below import data is included, agriculture and animal husbandry, apparel, basic metal industry, textile products and chemicals and products are the most imported items respectively. The fact that agricultural and livestock products imports are so high in Kilis, whose economy is based on agriculture, reveals that policy makers need to support strategic investments more. Agriculture and animal husbandry imports include grains and vegetable products nec, while other non-metallic mineral products include glass and glass products.

 

Provincial and ISIC Classification of Import Value (USD) 

Indusrty

2014

2015

2016

2017

2018

Agriculture and livestock

3.679.638

11.547.561

9.633.993

14.127.535

22.501.615

Clothing apparel

1.124.902

-

2.178.832

6.548.684

819.156

Primary metal industry

9.127.505

5.714.600

5.299.750

2.909.874

12.343.531

Textile products

308.344

605.517

107.632

2.162.201

4.583.016

Chemical material and products

364.806

11.608.643

2.220.478

1.893.586

1.718.100

Other transport vehicles

311.520

352.322

284.764

514.367

374.963

Machinery and equipment classifi ed not else

2.586.809

1.885.341

3.487.878

406.302

830

 

Food products and beverages

9.969.058

1.886.041

405.545

169.289

540.049

Non-metallic other mineral products

2.496.192

1.473.996

771.189

71.301

10.837

Electrical machinery and apparatus classifi ed not

else

57.092

385.609

298.844

57.833

46.263

Plastics and rubber products

926.488

751.061

238.681

24.036

28.406

Radio, Television, Communication Equipment and Devices

-

5.174.155

9.703.858

1.276

36.626

Others

303.242

157.602

176.196

174.217

975.402

Total

31.255.596

41.542.448

34.807.640

29.060.501

43.975.794

Source: Turkish Statistical Institute (TSI), 2019

 

When the data in Table below is analyzed, it is seen that province imports are realized with Middle Eastern countries such as Syria, Iraq and Egypt. In addition to these countries, it is observed that developing countries such as China, India and Brazil occupy an important place in province imports.

 

Kilis Province Major Imported Countries (USD)

Country

2014

2015

2016

2017

2018

Syria

1.761.761

8.618.550

6.815.713

11.072.845

26.728.939

Egypt

22.299

89.665

1.321.517

6.732.348

1.130.435

China

2.008.229

4.015.677

8.714.653

3.305.298

5.544.546

Iraq

9.121.514

5.777.982

5.344.737

2.888.318

3.992.801

India

452.789

655.705

658.945

966.921

565.208

Brasil

351.147

1.358.887

1.907.424

880.837

3.267.848

Spain

1.829.278

354.941

1.716.479

283.423

451.460

KSA

-

2.743.678

113.128

270.617

287.157

Indonesia

2.602.215

1.428.131

1.011.625

249.807

101.952

Source: Turkish Statistical Institute (TSI), 2019

 



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