Turkish Forum

Tag: TUSIAD

  • Why Turkey belongs to transatlantic economy

    Why Turkey belongs to transatlantic economy

    Why Turkey belongs to transatlantic economy

    By Bahadir Kaleagasi and Baris Ornarli, Turkish Industry and Business Association (TUSIAD) – 03/12/13 03:30 PM ET

    At the President’s Export Council meeting on Tuesday, President Barack Obama reiterated the importance of achieving a U.S.–EU free trade agreement. He said, “Europe is our largest trading partner – the EU as a whole – and we think that we can expand that even further.”

    The need to expand the economic partnership was conveyed to Secretary of State John Kerry during his trip to Turkey two weeks ago. Turkey’s Foreign Minister Ahmet Davutoglu said that the Transatlantic Trade and Investment Partnership “is of crucial significance for Turkey,” and that he and Secretary Kerry spoke about the free trade agreement that was announced by President Obama in his State of the Union address in February. “We believe that Turkey needs to play a significant role in that structure,” Foreign Minister Davutoglu said. Secretary Kerry confirmed that they had reached an understanding on this issue: “The Foreign Minister and I talked about ways in which we can grow our significant economic partnership. He mentioned… the Transatlantic Investment Trade Partnership. This is a huge opportunity for all of Europe, for all of us… And I know the Foreign Minister looks forward to working with me, and we actually arrived at an understanding of a couple of ways in which we intend to continue to do that.”

    The exchange was under-reported. The U.S.–Turkey relationship involves multiple difficult and urgent regional issues. The civil war in Syria, stability in Iraq, Iran’s nuclear ambitions, Turkey’s relations with Israel all demand the attention of Turkish and American policy-makers. However, the opportunity that has presented itself with the Transatlantic Trade and Investment Partnership announcement should not be overlooked.

    The U.S. and EU account for nearly half of world GDP and 30 percent of global trade. The U.S. Chamber of Commerce estimates that “a complete elimination of tariffs would increase combined U.S.–EU GDP by $180 billion in five years.” But there is room for more.

    Turkey’s dynamic economy and integration with many European institutions make it a natural partner. Associating Turkey with the Transatlantic Trade and Investment Partnership would strengthen the transatlantic economy, enhance the policy convergence capability within the G20, and bolster prospects for Turkey’s accession to the European Union. Turkey is the 16th largest economy in the world and Europe’s sixth largest trading partner. It is a part of the European single market through a customs union since 1996, and remains in accession negotiations with the European Union for full membership. Over 55 percent of the European economic legislation is already transposed to the Turkish legal order. Thus, Turkey technically belongs to the European economy.

    Moreover, the Obama administration has been keen on expanding the U.S.–Turkey economic relationship. In 2009, Turkey and the United States established the Framework for Strategic Economic and Commercial Cooperation (FSECC) – a cabinet-level structure charged with improving bilateral commercial and economic relations. The U.S.–Turkey Business Council was launched to invite private-sector input. Along with the Trade and Investment Framework Agreement, bilateral investment and tax treaties, and the Economic Partnership Commission the two governments have institutionalized bilateral mechanisms to enhance economic ties. The Turkish and American business world has been eagerly supporting the effort. This commitment has yielded results: In 2011, bilateral trade reached record levels, increasing by 35 percent to $20 billion. However, this is far below potential.

    Turkey’s customs union membership precludes it from negotiating bilateral free trade agreements with those counties that do not already have an arrangement with the EU. The Transatlantic Trade and Investment Partnership announcement provides a turning point. While Turkey may not be able to have a seat at the table, an observer status would have a very positive effect. Washington should also pursue a parallel track with Ankara. Unless an arrangement is made, as a customs union member, Ankara must take on all the obligations associated with the free trade agreement without requiring the United States to extend any trade privileges to Turkey, which would further the trade imbalance. The EU, on the other hand, has already concluded a free trade agreement with NAFTA member Mexico and negotiations with Canada are ongoing.

Involving Turkey in the emerging economic agreement between the United States and Europe would not only improve U.S. – Turkey economic and political ties, but would also strengthen the trilateral partnership. It would also generate significant political and geo-strategic energy for the strengthening of Western democracy. The economic and strategic value of this enterprise is self-evident and well worth the effort.

    Kaleagasi is international coordinator and representative to the EU of the Turkish Industry and Business Association (TUSIAD). Ornarli is the Washington representative of the Turkish Industry and Business Association (TUSIAD).

    via Why Turkey belongs to transatlantic economy – The Hill’s Congress Blog.

  • Turkey’s leading civil society organizations join forces against PKK

    Turkey’s leading civil society organizations join forces against PKK

    TOBB’s Rifat Hisarcıklıoğlu (C) calls for unity against PKK attacks. AA photo
    TOBB’s Rifat Hisarcıklıoğlu (C) calls for unity against PKK attacks. AA photo

    A major rally is being planned for Istanbul on Oct. 30, with organizers aiming to bring together 1 million people to march against escalating acts of terrorism in the wake of bloody attacks last week, according to an announcement by 24 nongovernmental organizations. The group includes some of the country’s most influential business circles and trade chambers and represents a broad swath of society.

    “We will hold a great march in Istanbul on Oct. 30 under the leadership of professional organizations, confederations of trade unions and associations with the support of our political parties. We will only raise our flag with its crescent and star, the symbol of our unity and integrity,” Rifat Hisarcıklıoğlu, president of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) said at a press conference yesterday.

    The country’s civil society, mainly the professional organizations and business circles, have been mobilized after the outlawed Kurdistan Workers’ Party (PKK ) killed 24 troops in Çukurca province of Hakkari on Iraqi border in a move to show public resistance to terrorism.

    Hisarcıklıoğlu said they have established the “Platform for a Call for Unity” with 24 organizations but that the venue was open for anyone who wanted to take part in the initiative. Along with TOBB, which has more than 1.5 million members, prominent business organization the Turkish Industry and Business Association (TÜSİAD), the Workers’ Union Confederation (Türk-İş), the Bars Union (TBB) and the Turkish Exporters Assembly (TİM) have joined the platform. Leaders of these organizations visited President Abdullah Gül, Prime Minister Recep Tayyip Erdoğan and all opposition parties on Oct.21 to share their plans to hold the rally.

    “We saw that all political leaders in Turkey shares similar sensibilities against terrorism despite daily political disputes. Their common ground is our unity, integrity and fraternity. This is promising,” Hisarcıklıoğlu said. “We invite those who have the same feelings as us to this great march. We will walk altogether despite these dirty games. We invite everyone because it won’t happen without you.”

    It was not yet clear if leaders of the political parties would also take part in the march, but the platform intends to invite all of them. However, no party banners or flags can be raised during the march, the platform states. Details of the march will be announced this week.

    Despite wide representation, the Confederation of Revolutionary Trade Unions (DİSK), the Confederation of Public Sector Trade Unions (KESK) and the Turkish Engineers’ and Architects’ Chambers (TMMOB), known to be critical of the ruling Justice and Development Party (AKP), have not joined the platform.

    Hisarcıklıoğlu said they have not excluded anyone. “We have invited all societal organizations and our invitation is still valid. We want to march arm in arm with everyone,” he said. Reportedly, KESK and DİSK officials are set to discuss joining the platform.

    Change in plans

    The platform has changed its initial plan to hold simultaneous marches in the country’s seven regions after President Gül convinced them that such an initiative could face provocations in some regions, Turkish media reported.

    “We have no such fear. We are engaged in this in the name of 74 million people,” Hisarcıklıoğlu said, adding that they will act together in every part of the country when required. Another reason for holding only one march is to concentrate the density and public attention on one march only so that its influence can be multiplied, the Daily News has learned.

    via Turkey’s leading civil society organizations join forces against PKK – Hurriyet Daily News.

  • Turkey is close to edge of taxing limit, top boss says

    Turkey is close to edge of taxing limit, top boss says

    ISTANBUL- Hürriyet Daily News

    Indirect taxes, government’s easy way of generating money, is not a sustainable method, according to head of the Turkish Industry and Business Organization

    A group of young people are enjoying their drinks on a street by the Istiklal Avenue, the center of entertainment in Istanbul, in this file photo. On Oct. 13, the Turkish government raised the special consumption tax on all alcoholic drinks along with mobile phones, cars and tobacco products. That added to the recent price increases in energy. DAILY NEWS photo, Hasan ALTINIŞIK

    Turkey is nearing an edge in tax collection, Ümit Boyner, head of the Turkish Industry and Business Organization (TÜSİAD), has said, calling for major reforms that will reduce the warp in tax distribution and support low-income groups.

    “The indirect taxes are easy to collect but every source of tax has a limit and we are getting closer to that,” Boyner said while she was speaking at a business meeting in Istanbul to discuss entrepreneurship and civil society on Oct. 14.

    The government largely increased special consumption tax (SCT) on automobiles, alcoholic drinks, tobacco products and mobile phones on Oct. 13.

    “We find the medium-term program announced by the government [on Oct. 13] very important for Turkey to dissociate with other developing countries,” Boyner said.

    The mid-term program forecasts a sharp 4 percent fall in growth in 2012 and a staggered narrowing in the current account deficit.

    The plan is open to discussion but is crucial as it would act as a point of bearing to provide more clear targets, according to Boyner.

    “We sincerely support this effort will shape the coming three years in the economy. We will closely observe it with all of its rights and wrongs.”

    The tax increase, which was released in the Official Gazette hours before the announcement of the medium-term program, has also been criticized by the main opposition party and some other groups.

    ‘Result of election economy’

    Turkey’s current account deficit, which the government is trying to narrow through tax increases, is the result of the profligacy of the same government before the June 12 general elections, according to Faik Öztrak, deputy president of the Republican People’s Party (CHP).

    The government has started to increase the taxes on electricity and natural gas along with mobile phones and automobiles, Öztrak said during a speech at the Turkish Parliament on Oct. 14.

    He said the tax hike announced on Oct. 13 “stole billions of liras out of the pockets of people.”

    Tax hikes in natural gas and electricity have caught Turkish people off guard, according to Ali Çetin, vice chairman of the Federation of Consumer Associations (TÜDEF).

    The tax rates applied on alcoholic drinks, tobacco, fuel, automobiles and communication were already too high, Çetin told Anatolia news agency on Oct. 14.

    Tax increases on new cars with engines over 1.6 liters will affect the price of 11 percent of cars sold, according to sales data for the first nine months of the year. About 89 percent of new cars sold in the period, or 366,526 units, had engines of less than 1.6 liters, the Automotive Distributors’ Association’s press office told Bloomberg in a telephone interview on Oct. 14. Turks either buy imported cars or obtain them from the subsidiaries of companies such as Fiat and Renault, which import nearly all parts.

    Group warns Israel about Turkish ties

    The Israel government should realize that the ongoing dispute with Turkey will have a heavy cost, according to Ümit Boyner, chair of Turkish Industry and Business organization (TÜSİAD).

    “We hope Israel apologizes for what happened on the Mavi Marmara [ship] that it attacked on the open sea without any righteous reasons, meet the demands for compensation and lift the Gaza embargo,” she wrote in the latest issue of Görüş, TÜSİAD’s monthly magazine. “Those that govern Israel should immediately understand that agitating Turkey has a price.”

    Turkey-Israel relations have been tense since the May 31, 2010, Mavi Marmara incident in which Israeli soldiers killed nine Turkish activists on the aid ship, which was bound for Gaza.

    “I believe the Israeli government sees that people in Egypt and Jordan have hit the streets to demand Israeli diplomatic staff be removed from their countries just as Turkey has reduced its representation there to the second-secretary level. They should also consider the additional burdens of some other sanctions announced by Turkey once they are implemented,” she said.

    via Turkey is close to edge of taxing limit, top boss says – Hurriyet Daily News.

  • Libya Warning From TUSIAD Chairperson

    Libya Warning From TUSIAD Chairperson

    boynerChairperson of the Turkish Industrialists’ and Businessmen’s Association Umit Boyner on Tuesday referred to the developments in the Middle East and North Africa.

    “We are passing through a period when all countries have to review their positions on the matter. We should refrain from assuming urgent stances,” Boyner said while addressing the opening of TUSIAD’s High Advisory Council meeting.

    “Today, Turkey is a country which is articulated with global economy, and has opportunities to have influence on developments around it. However, it has to resolve some main problems,” Boyner said.

    Referring to developments in the Middle East and North Africa, Boyner said, “although dictatorships in Tunisia and Egypt were demolished at a relatively shorter time, Libya example showed us that changes in other regional countries may be more bloody. Still, when we look at from a long historical perspective, the incidents and developments we have witnessed are in line with the course of the history. People of the region, who were isolated from the global system both in economic and political means, in the end demand a regime with which they would control their own fate. We consider those demands natural and rightful.”

    “Being the citizens of a country which the people of the region admire, we should extend support to them,” she noted.

    Boyner wished tranquility to be restored soon in Libya without more bloodshed, “we wish construction and development of the country to start soon again,” she said.

    Referring to the discussions whether Turkey could be a model for regional countries, Boyner said, “I believe that other countries may benefit from Turkey’s experiences rather than being a model country for the region.”

    AA

     

  • Turkey’s energy future

    Turkey’s energy future

    GİLA BENMAYOR

    The Paris-based International Energy Agency, or IEA’s, chief economist, Fatih Birol was in Istanbul for a two-day visit.

    He visited Istanbul to make a presentation and released the World Energy Outlook 2010 Report in a meeting organized by the Turkish Industry and Business Association, or TÜSİAD, and to announce the honorary presidency of the Istanbul International Energy and Climate Center under the auspices of Sabancı University.

    Sabancı University Board of Trustees Chairwoman Güler Sabancı has taken a critical step.

    Energy consumption in Turkey will increase more than the world average by 2020.

    As Birol pointed out, the center of gravity in energy production and consumption is shifting to the East.

    The weight of the Middle East countries neighboring Turkey, Russia and the Caspian region is gradually increasing in international oil and gas markets.

    Only in the Caspian region, have three new gas reserves been found to have three times bigger than that of Norway.

    On the other side, China and India are fighting for the world’s consumption leadership.

    Turkey’s energy interest

    Birol rightfully says: “Turkey should make the right decisions if it is reading energy developments accurately. The new center at Sabancı University will fill a big gap.”

    One should take one’s hat off to the energy vision of Ms. Sabancı who led the foundation of Nanotechnology Institute under the roof of the university.

    Thanks to these centers Turkey will without doubt become a stronger player in the future.

    The appointment of Birol, being one of the experts who know the world energy policies very well, as the chairman of the center is a right decision.

    I’ve known him for years; Birol is perfectly aware of where Turkey’s interest lies in energy games, if we forget about its role in the energy world.

    For instance, Birol has kept on saying for years that Turkey has to adopt nuclear energy, but, in suspicion, approaches Russia as being our number-one choice in nuclear energy partnership because we already depend on Russia for natural gas (to the tune of 60 percent).

    $100 billion from private sector

    As for the World Energy Outlook Report-2010, the IEA Chief Economist has sent Turkey two critical messages.

    A price decrease in natural gas is possible, as it was in 2009. Therefore, Turkey might buy some more gas from Russia for a more suitable price.

    And the second message is this:

    Despite the global economic crisis, the renewable energy trend is becoming more popular throughout the world.

    So, Turkey should catch up with the world in this trend, too.

    As Birol talks about “renewable energy,” he also touches upon subsidization issue.

    Relatively less affected by the economic crisis, Turkey should act generously in subsidies, says Birol.

    At this point, Energy and Natural Sources Minister Taner Yıldız differs from the IEA Chief Economist Birol.

    “Renewable energy investors shouldn’t expect generous incentives from us,” the minister says.

    Aside from a signal on subsidies, there is no “renewable energy law” to encourage investors in Turkey.

    We are talking about a law of which we have heard endless stories, but seen no action taken.

    As TÜSİAD Chairwoman Ümit Boyner points out, structural reforms are needed to increase competition power of the energy market and to accelerate supervision mechanisms.

    The private sector plans to invest $100 billion in the sector and that’s a good starting point.