Category: Business

Lack of technological goods production widens Turkey’s imports

ISTANBUL – Anatolia News Agency

This file photo shows customers at the opening day of a technology shop in central Istanbul. Electronic goods in Turkey are usually imported. Hürriyet photos

Turkey paid a total of $29.45 billion over the last five years for 18 items that are not produced in the domestic market, according to a recent report from the Istanbul Chamber of Certified Public Accountants, or ISMMMO.

High-technology products led by helicopters, aircraft, mobile phones and laptops, constitute a great part of Turkey’s imports, in addition to mines, agricultural products and energy resources such as oil, according to the report. The “Turkey’s Industrial Production and Facts” report is prepared as a result of an extensive observation of 3,000 different industrial items.

“Instead of allocating billions of dollars each year to imports, Turkey should attach more importance to research and development studies and prevent brain drain,” said Yahya Arıkan, chairman of the İSMMMO. “We cannot even produce watches or devises used for measuring blood pressure.”

Helicopters and aircrafts have led Turkey’s imported industrial products list for the last five years, followed by mobile phones in the second spot. Turkey paid a total of $8.4 million for helicopter and aircraft imports between 2006 and 2010 and $6.9 million for mobile phone imports.

Turkey is experiencing a great weakness and economic loss with high-technology products, the report said, adding that the country pays billions of dollars to foreign countries each year to import many technological products.

Turkey pays some $7.8 billion each year to import a total of 18 products that cannot be produced in the domestic market, the report said. The amount paid abroad totaled nearly $30 billion over the last five years, according to the report.

High-technology products lead by optical instruments, medical imaging devices, printers and copier machines and consumer electronics such as mobile phones and digital cameras are considerably imported from the Eastern Asian countries, the report said. According to the report, laptops come in the third spot with a total cost of $4.4 million, followed by informatic product components with $2.6 million. Printers, scanners and copier machines totaling $1.4 million are the other technological products in the list. The watch sector’s imports also have quite a big share, representing $1 million in the total amount.

Recalling the domestic automobile production debate, Arıkan said, “Before this discussion, we should discuss our economy, which is unable to produce cameras, motorboats, lenses for cameras, blood pressure gauges and even watches.

“Turkey can produce technology,” Arıkan said. “Specialization, cooperation, planning and investments are needed. We can reach prosperity and social stability only by complying with technological revolutions.”

May 31, 2011
Good Economic News… If you’re a Turk

Turkey elected a new government in 2002. Recep Tayyip Erdoğan became Prime Minister after his AK Party gained an absolute majority in the nation’s unicameral legislature. Erdoğan and AK have governed continuosly from 2002 through the present.

The annual change in gross national product (Graph, Turkish Review, January 2011) developed through Turkish management of the economy.

During the critical period that included the global recession, Turkey fared better than most industrial nations. (Trading Economics)

Negative growth hit Turkey in only three quarters, with a solid rebound starting in 2009. Forth quarter 2010 economic growth was 9.2%. Only China led Turkey during that time with 9.8% growth.

The International Monetary Fund (IMF) announced an end to its formal agreement with Turkey in 2010. In fact, the Turks ended IMF involvement with economic management in 2007 when they rejected IMF’s “austerity” requirements for a stand by loan. Since that time, Turkey has paid off 75% of its IMF debt and managed the economy without IMF help.

Highlights – How they did it

These highlights of the 2010 Turkish economy are from an annual review published by TurkishPress.com, Turkish economy in 2010 January 1

December 2010 (Selected highlights)

Turkish car market grew 30.8 percent year-on-year between January and November 2010.

December 5: Renault decided to produce Clio RS in Turkish northwestern province of Bursa in 2011.

December 8: Industrial production index rose by 9.8 percent year-on-year in October 2010

Motor vehicle production increased by 27 percent to 983,000 units between January and November 2010.

Employment in the industry sector rose by 5.5 percent year-on-year in the third quarter of 2010.

December 15: TurkStat said that unemployment rate dropped by 2.1 points to 11.3 percent in September 2010 compared to the same month of 2009.

December 17: Central Bank dropped maximum monthly interest rate for credit cards to 2.26 percent from 2.44 percent for Turkish lira transactions.

Five Turkish companies have won a tender to construct “Baghdad New Sadr City” to be comprised of 75,000 dwellings.

Business organizations from Turkey, Syria, Lebanon and Jordan formed the Levant Business Forum and adopted an action plan to carry out joint projects on integration of these economies. Turkish economy in 2010, January 1, 2011

How could this happen?

The Turkish government focused on manufacturing and foreign trade.

The Turkish Central Bank offered a consumer credit interest rate that allowed people to actually pay off their debts.

The nation became the leader and ally of the nations that the Ottoman Empire occupied for centuries, standing as a counter point to nearly three decades of United States military actions, invasions, and general hostilities in the Middle East.

The Turkish Finance Minister, Mehmet Simsek , recounts how the government dealt with the issue of local debt:

“In 2009, I had an urgent meeting with nearly 2,000 mayors in Antalya. Everyone at that meeting expected me to say I was going to give them more money. On the contrary, I raised the deficit issue, telling them that this could not go on any longer and that they should get back on track. As a result, we shifted away from a deficit of some TL 7.1 billion in 2008 and achieved a surplus of over TL 1 billion last year…” Today’s Zaman, May 26

For years, Turkey has sought admission to the European Union. The fiscal policies over the past decade stressed EU admission criteria. Now, it seems, the pupil has become the teacher. One has to wonder, will Turkey join the EU if invited?

END

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via Good Economic News… If you’re a Turk | The Economic Populist.

May 30, 2011
AW Cries Foul Over Turkey Black Hawk Pick: AINonline

For the better part of five years AgustaWestland (AW) had been counting on Turkey to be a major customer for the military variant of its AW139 medium twin, the AW149, for the Turkish utility helicopter program (TUHP). However, earlier this spring, Turkey surprised AW by partnering with Sikorsky on the program, deciding to build as many as 109 T-70 derivatives of the S-70 Black Hawk under an agreement with Turkish Aerospace Industries (TAI) in a deal worth $3.5 billion and potentially much more, over the next decade. On top of the TUHP order, the agreement calls for up to 500 more T-70s to be built over the period for both Turkish domestic consumption and the export market. The T-70s will be laden with parts, including dynamic components, manufactured from a variety of companies within Turkey and have final assembly at TAI.

AW, which currently subcontracts major airframe subassemblies on the popular civilian AW139 and the T-129 attack helicopter with TAI, was stunned by the TUHP decision and wasted little time in issuing a strong public denouncement of the agreement with Sikorsky. AW basically claimed the game was rigged and that Turkey had forgone a major opportunity for economic development. “The TUHP was conceived from the beginning as a Black Hawk acquisition project…AgustaWestland, however, offered Turkey a product partnership to co-develop a new generation helicopter, the AW149, to be co-produced and sold domestically and in the international market.”

Ugo Rossini, AW vice president for Europe, noted, “Turkey’s decision was to opt for an old design of helicopter instead of leveraging on the fruitful collaboration and advantages achieved with the T-129 program. Turkey’s aerospace industry has lost a unique opportunity to become a major player in the helicopter industry through the co-development of a new-generation helicopter.” Rossini said despite the setback, AW is committed to driving the AW149 program forward.

The AW149 is designed to carry up to 15 troops, have a cruise speed of 160 knots, a range of up to 500 nm with 12 troops and two pilots, satisfy the 6,000 feet/95 degree F high/hot standard, and can be equipped with a wide variety of armaments for multi-mission combat roles.

For its part, Sikorsky said the award followed a “longstanding tradition of cooperation” between the company and Turkish industry. Mick Maurer, president of Sikorsky Military Systems, said the T-70 would be based on the S-70i variant of the Black Hawk currently manufactured in Poland at PZL Mielec. o

via AW Cries Foul Over Turkey Black Hawk Pick: AINonline.

May 30, 2011
Hannah’s online store focuses on Turkish style

Hannah Wallace has set up a new business, Mahlika, selling Turkish jewellery

Browsing through the colourful and vibrant merchandise being sold on market stalls during a trip to Turkey, Hannah Wallace was taken by the beauty and elegance of the country’s exotic jewellery.

The 25-year-old was inspired by the gold, turquoise and ruby adornments and decided to set up her own online store selling handmade Turkish jewellery to customers in the UK and worldwide.

Mahlika Jewellery launched this month showcasing jewellery that is designed and made in Istanbul by skilled artisans.

The ranges include necklaces, earrings, bracelets and rings made using pearl, turquoise, amethyst, coral and garnets.

Mahlika – which means ‘face as beautiful as the moon’ in Turkish – have already received orders from the US, UK and Saudi Arabia.

Hannah, who runs the business from her home in Cheadle Hulme, said: “Women all over the world adore fashion, especially jewellery.

“They love to wear clothes that reflect their style, and jewellery for the perfect finishing touches.

“In the past, true style gurus would have had to travel the world to locate innovative and unique jewellery designs, but with the way the industry has evolved, products from

anywhere in the world are easily accessible for anyone who wants them.”

Hannah regularly goes on holiday to the Turkish town of Kas and says her passion for jewellery started at an early stage.

“My mum was always wearing nice jewellery which I used to admire, and I’ve always been a big fan,” she said.

“Every time I’ve visited Turkey, where my parents have a house, I’ve picked up different pieces, and friends have always asked where I got them from.”

Before launching her business, Hannah graduated from Leeds University in media and cultural studies then went

travelling around Australasia and south-east Asia before returning to the UK last September.

On her return, she decided to use her savings to establish her business and spent six months setting up her website and sourcing products.

Now she is planning to learn how to design and make her own jewellery.

She says her long-term aims are to open a shop and add jewellery from other countries.

She said: “I love Indian designs and they are very similar to what I sell now.

“It will definitely be an area I will be looking into.”

via Hannah’s online store focuses on Turkish style | Manchester Evening News – menmedia.co.uk.

May 30, 2011
Kirsten Dunst In Chanel – Chanel Paris-Byzance In Istanbul

Chanel presented their Pre-Fall 2011 collection on the lit terrace of Istanbul’s Ciragan Palace Kempinski Hotel on Wednesday.

Models sashayed down the terrace overlooking the Bosphorus, against the backdrop of a virtual palace.

The authentic decor added a new dimension to the opulence and vibrant colours of Karl Lagerfeld’s Chanel Pre-Fall 2011 collection.

Kirsten Dunst joined local guests within this magical atmosphere.

The actress wore a look a few seasons ahead of the Pre-Fall presentation, as she selected a Resort 2012 ivory dress.

Staying true to her wonderfully whimiscal aesthetic she opted for beautiful side swept curls, red lips, snake-skin peep-toes and silver bracelet completed her look.

via Kirsten Dunst In Chanel – Chanel Paris-Byzance In Istanbul « Red Carpet Fashion Awards.

May 28, 2011
Colombia to launch free trade talks with Turkey

By Dan Molinski

BOGOTA -(MarketWatch)- Colombia begins free trade talks with Turkey next week as the South American nation moves to broaden its ties around the world given that hopes for a free trade deal with the U.S. remain in doubt.

A statement Friday from Colombia’s Trade Ministry said first-round talks with Turkey will take place all next week in Bogota starting Monday, with two more rounds of talks planned for July and September. The statement didn’t indicate when a final deal may be reached.

Trade between Colombia and Turkey is small, with just $271 million worth of goods switching hands. Colombia exported $214 million of products to Turkey, with coal accounting for much of that. Turkey sent Colombia $57 million in goods, including artillery parts, auto parts and textiles.

Colombia for years has been vying for a permanent free trade agreement with the U.S., its main trading partner, but Washington has so far failed to give any deal final approval. It seemed until a few weeks ago that a Colombia-U.S. trade pact would finally be sealed, but then the Obama administration said no deal will happen unless Republican lawmakers give some ground on worker benefits.

President Juan Manuel Santos said in early 2011 that if a deal with the U.S. isn’t formalized soon, Colombia will give up trying, and that in the meantime his government will continue pursuing other trade deals around the globe.

Santos said the trade talks with Turkey are part of a broader effort to increase ties with other nations that form the so-called CIVETS group, an acronym for Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.

via Colombia to launch free trade talks with Turkey – MarketWatch.

May 28, 2011