—This study analyzes the potential effects of the Transatlantic Trade and Investment Partnership (TTIP) on Turkey’s trade patterns in the US market against the EU. Therefore, this study aims to determine the sectors in which Turkey competes relatively more strongly with the EU in the US market. Moreover, taking into account the product heterogeneity within the sectors, this study focuses on whether this competition relies on price differentials or not. To do so, we carry out a detailed analysis of exports of Turkey and the EU based on export product similarity and price similarity indices. The study covers the 2010-2014 period at country- and sector-levels, using disaggregated product data. Our results show that even Turkey’s competition with the EU in the US market is not so strong in general, there are still some sectors in which the degree of competition is quite considerable such as textiles and textile products; articles of stone, plaster, cement, ceramic and glass; arms and ammunition; vegetable products; animal or vegetable fats or oils. Moreover, except in the “arms and ammunition” sector, the TTIP has the potential to change trade patterns in favor of the EU, while Turkey is likely to lose competitiveness in these sectors.
—TTIP, Turkey, EU, export Competition, US market.
Seda Ekmen Özçelik is with Yıldırım Beyazıt University, Turkey (e-mail: firstname.lastname@example.org).
Cite: Seda Ekmen Özçelik, "Turkey's Competition with the EU in the US Market in the Context of TTIP," International Journal of Trade, Economics and Finance vol.7, no.5, pp. 198-201, 2016.