A comparative analysis of hazelnut production and trade policies between Turkey and the European Union

Abstract

The hazelnut trade policies of Turkey and the European Union (EU) are summarized in this paper and some suggestions are made to adapt the Turkish hazelnut policy to the EU's policy. The Turkish hazelnut trade policy is based on giving price supports to the producers, limiting the planting of orchards on the flat areas, receiving the Support and Stabilization Fund and promotion fund from hazelnut exports, giving refunds for the export of hazelnuts, receiving duties from hazelnut imports, and applying some standards to hazelnut imports and exports. In contrast, the EU has applied the flat-rate aid system in order to facilitate the formation of producer organizations, to improve product quality and to adapt the volume of supply to market requirements. The EU has also applied standards to hazelnut exports and imports, given export refunds for hazelnut exports and received customs duties from hazelnut imports. To adapt the Turkish hazelnut policy to the EU's policy, the Turkish Government would have to stop giving price supports to producers and apply the flat-rate aid system. In addition, the receipt of the support and stabilization fund and promotion fund would be stopped and the export refund would be given for exported hazelnuts, both shelled and in-shell. Application of these policy instruments could decrease the hazelnut surpluses and keep the market balanced in Turkey.