Legal Risks of Working with Turkish Suppliers and Contractors
International entrepreneurs doing business with suppliers and contractors in Türkiye face several significant legal challenges. These include visa barriers, supply chain compliance requirements, and new corporate liability rules that have emerged under global regulatory frameworks.
Operational and Logistical Risks
Visa restrictions remain one of the most serious obstacles in Türkiye’s international transport sector. Long waiting periods and high rejection rates cause delays in border crossings, making it difficult for logistics companies to meet contractual commitments. This has become a potential risk to Türkiye’s competitive advantage in exports. For further information on Türkiye’s logistics sector, visit the U.S. International Trade Administration page on Turkish logistics.
Cost volatility continues to challenge logistics operations. Fluctuations in maritime freight rates directly affect overall logistics costs and put pressure on the financial management of supplier companies. In 2024, a decline in ocean freight prices also had ripple effects across other modes of transportation.
Supply chain vulnerability is heavily influenced by geopolitical events. For example, an accident at Evyap Port, which handles about 5% of Türkiye’s container traffic, caused infrastructure damage estimated at 100 million USD and product losses of about 50 million USD. This illustrates how a single disruption can have broad economic repercussions across the logistics network.
International Compliance Obligations
The UK’s new “Failure to Prevent Fraud” offence under the Economic Crime and Corporate Transparency Act (ECCTA) extends to companies operating in Türkiye. Parent companies may be held liable for fraudulent acts committed by their employees, subsidiaries, agents, or suppliers. This means that Turkish entities engaged in supply or business relationships with UK firms must introduce strong corporate compliance and fraud prevention mechanisms.
Supply Chain Due Diligence obligations now apply to Turkish suppliers serving the European Union market. The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) requires suppliers to ensure that their operations are free from human rights violations, forced labor, and unsafe working conditions. Non-compliance may result in exclusion from EU-based supply contracts.
Modern Slavery Act compliance continues to shape supplier risk management for major international companies. Procurement teams are increasingly required to perform risk-based due diligence on Turkish suppliers. Any evidence of human rights abuses may lead to termination of business relationships, limiting access to global markets.
Corporate Governance and Risk Management
Mitigating legal risks in the supply chain demands a comprehensive corporate risk management system. Companies should implement systematic monitoring and auditing of supplier performance to ensure compliance and ethical business practices.
Studies indicate that many Turkish companies have not yet reached maturity in supply chain risk management. Growing public oversight of corporate crimes, human rights issues, and anti-corruption compliance emphasizes the importance of robust internal controls across business networks. As Türkiye integrates more deeply into global trade systems, companies must adopt transparent corporate governance practices.
Need for Legislative Updates
For Türkiye to maintain a competitive position in global logistics, several regulatory updates are required. These include reducing bureaucratic barriers in intermodal transport and introducing sustainability-oriented legislation across logistics and transport sectors.
Particularly in the field of e-commerce logistics, establishing a legal framework to reduce environmental impacts will help enhance Türkiye’s global competitiveness. Regulatory modernization, combined with green logistics initiatives, will play a fundamental role in attracting international partners and foreign investments.
Conclusion
International businesses cooperating with Turkish suppliers and contractors must proactively manage legal, compliance, and operational risks. Aligning with international standards—particularly UK and EU regulations—will not only prevent liability but also strengthen Türkiye’s reputation as a reliable and responsible trade partner.