Analysis of forest product trade relationships between Turkey and European Union member states

Abstract

The countries have needed to strengthen their trade relationships in the face of increasing competition conditions with globalization and a lot of unions emerged all over the world. The European Union, remaining in the foreground as an economical, commercial and political factor in these unions, possesses considerable influence, which a lot of countries want to be involved in. Turkey, being in the European integration process, looks for a place in European Union (EU) with its own resources and production power. Production and foreign trade data of the forest products industry, being among Turkey’s important sectors, were compared with 25 different EU countries by using hierarchical cluster analysis, and Turkey’s trade relationship was determined. The production amounts, import and export
amounts and the values, between 2002 and 2006, belonging to the EU member countries and Turkey were used. It has been found that all countries could be divided into nine different groups according to
countries’ forest products industry structures. Competition advantage is experienced in the board sector but not in the paper and lumber sectors. The forest products industry sectors of Turkey have the capacity to compete with EU countries.