Border trade, which is a special form of international trade, is an application permitted by the country administrators within the framework of a joint decision agreement to provide their daily needs cheaper and in a shorter time for the local people living in the border regions. Turkey has started border trade for the first time in 1978 after the oil crisis unfolding in the world against goods for Iran oil imports in Ağrı-Gürbulak Border Gate. This study aims to find out the economic added value to Turkey’s economy via Habur Customs Gate which is located between Iraq and Turkey border. The methodology of this study is a literature review of border trade and through in-depth interview method with 10 local drivers who carry goods through borders, the in depth interviews were conducted during a three-month internship period between March-May, 2019. As a result of the literature review, it was observed that the export made by border trade decreased by approximately 3 billion dollars in 2014, 2015 and 2016 due to various reasons (security, political and terror etc.) that started in 2014. Among Turkey's borders, the most revenue has been earned from Habur Border Gate, which is a vital point, a commercial bridge between Turkey and Iraq, one of the largest export markets in the Iraqi border. Finally, it is observed that Habur Border Gate increased the value added to the country's economy with the right strategies in foreign policy, and when the relationships between the two countries are strained, export volume is decreased and country’s economy and all cities in the region are negatively affected.
Keywords: International Trade, Border Trade, Habur Border Gate, Added Value to Economy
International Trade, Border Trade, Habur Border Gate, Added Value to Economy