ECONOMIC BRIEFS

• Hopes flourished in the southeastern region after statement of Prime Minister Recep Tayyip Erdoğan that Southeastern Anatolia Project (GAP) would be concluded in five years the latest. Chairmen of the chambers of commerce and industry of the southeastern provinces of Adıyaman, Batman, Diyarbakır, Gaziantep, Kilis, Mardin, Siirt, Şanlıurfa, and Şırnak (which are all as part of GAP Project) said around 4 million people would be provided with job opportunities, agriculture industry would improve, and the region would become a center of investment once the GAP investment is completed. At a January press conference, Erdoğan released the Action Plan of his government. Erdoğan said GAP project would start immediately and be concluded in five years the latest.

 

• Turkish contactors have achieved a very strong position in world contractor services market. Turkish Contractors' Association (TMB) head Erdal Eren said that amount of the business volume undertaken by the Turkish contractors in 68 countries has reached $105 billion at the end of 2007. Eren said a rapid development was seen particularly in contractor services in foreign countries after the economic crisis in 2001. Eren said Libya ranked the first among countries where Turkish contractors assumed projects, saying that Russia, Qatar, Turkmenistan and Kazakhstan were the other countries consecutively.

 

• Thirty-four Turkish firms joined EUREKA projects, often used by leading European firms. "34 Turkish firms have participated in EUREKA – an international cooperation platform which backs market-oriented products or products that can become a brand in a short time," the Turkish Scientific and Technical Research Council (TUBITAK) said. EUREKA is a pan-European network for market-oriented, industrial R&D. Created as an intergovernmental Initiative in 1985, EUREKA aims to enhance European competitiveness through its support to businesses, research centers and universities who carry out pan-European projects to develop innovative products, processes and services.

 

• The Turkish Foreign Economic Relations Board (DEIK) held a Clean Energy Conference – in cooperation with the American-Turkish Council (ATC) and Turkish Scientific and Technical Research Council (TUBITAK) – in Istanbul on January 29-30. Energy and Natural Resources Minister Hilmi Güler and a high-level US delegation attended the conference. Participants were briefed on new generation production techniques like bio-diesel, wind, sun, clean lignite, water and clean coal. The conference was supported by the Energy and Natural Resources Ministry and US Department of Energy. Speaking at the Clean Energy Conference in İstanbul, Güler said that Turkey and the United States would carry out projects on clean energy technologies to further improve cooperation between the two countries. "United States and Turkey have fought for democracy in Korea, Somalia, Bosnia-Herzegovina and Afghanistan and we have succeeded. Now, we will further improve our alliance with these projects," Güler said. Saying that clean energy technologies cover a wide range of energy resources, such as wind, hydrogen and solar energy, Güler said Turkey wants such energy resources, including nuclear, to be added to country's power generation portfolio. "We will achieve it together," Güler said. "These meetings will outline future details and works for these projects," he added. Alan Hegburg, the deputy assistant secretary for international energy policies at the US Energy Department, said that energy cooperation between Turkey and the US is going "smoothly." Hegburg said that they are eager to carry this cooperation to the future. Hegburg said that the steps which were taken in Turkey regarding clean energy technology and coal are very important.

 

• Turkish companies continue undertaking construction and energy projects in Turkmenistan. Turkish firm Garanti Koza will construct 28 bridges in Turkmenistan on 200-km Mary-Turkmenabat highway. The project is worth $100 million. The construction is expected to begin in March and end in October. Turkish Lotus Project will establish an electricity power plant in Turkmenistan. The project is expected to cost about 120 million euros and finish till February 2010.

 

• The number of newly-established firms with foreign partners in Istanbul was up 31.4 percent in 2007 over to 2006. According to a report of the Istanbul Chamber of Commerce (ITO), 3,071 foreign investors established firms with a total of 410.3 million YTL of capital in 2007. Foreign businessmen mostly invested in consultancy services in Istanbul. Construction, electric-electronics and information technology were the other sectors that foreigners invested in Istanbul. The Dutch topped foreign businessmen who invested in Turkey in 2007. Iraqi, French, South Korean and German capital followed the Dutch capital.

 

• An Istanbul meeting pledged to exert efforts to improve cooperation between Turkey, Afghanistan and Pakistan in a bid to boost trade ties and strengthen trust between Afghan and Pakistani business communities. The second meeting of the Istanbul Forum, organized by Turkish Union of Chambers and Commodities Exchanges (TOBB) to produce concrete projects between Turkey Afghanistan and Pakistan, ended on January 29 with the release of a final declaration. "Our common expectation from the forum is to define solid areas for future projects based on the shared interests of our three countries with an eye to the improvement of relations between Afghanistan and Pakistan," TOBB head Rifat Hisarcıklıoğlu told reporters at a press conference after the meeting. He added that the third meeting of the Istanbul Forum would take place in Islamabad in April.

 

• Turkey's gross domestic product (GDP) is projected to grow by 5.5 percent in 2008 and 5.7 percent in 2009-2010, the Treasury said on January 30. Turkey also plans to reduce its current account deficit to 7.5 percent this year, 7.2 percent in 2009 and 6.8 percent in 2010, Çanakçı told an investors' meeting in the United States on January 22-25. Direct capital inflow to Turkey is expected to reach $18.5 billion in 2008, $19.1 billion in 2009 and $21 billion in 2010.

 

• A large part of a $6.5 billion loan – to be granted by World Bank to Turkey as part of the Country Partnership Strategy (CPS) in 2008-2011 – will be used to boost employment and competitiveness. The bank granted a loan of nearly $500 million for the same purpose in July 2007. According to the bank, if the policies are properly implemented, more than 1.5 million new jobs will be created by 2011. The bank said macroeconomic stability is of great importance to strengthen the financial sector and create new jobs. According to the bank, the key of employment in Turkey is the "competitive education." The bank considers that education has a great importance in regard to competitive power, employment and Turkey's accession to the EU.

 

• Transportation costs from Turkey to China will fall 70 percent thanks to the implementation of the Silk Road Transceka project, which envisages the transportation of goods from Turkey to Georgia through land route and afterwards from Georgia to numerous countries via railway. According to sources, the project will also provide a 50 percent advantage in time saving. Export products will be transported between Asia and Europe in a cheap and rapid way thanks to the project. The first step of the project envisages the transportation of goods from Turkey's Black Sea province of Trabzon to Georgian province of Batumi via trucks. The goods will then be loaded to wagons in order to be transported to Russia, Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan, China, Afghanistan and Mongolia.

 

• Turkish businessmen and industrialists in Germany established a group called the Alliance Turkish European Undertaking in Dusseldorf. A total of seven Turkish Employers' Associations operating in different provinces of Germany gathered to establish ATEU. ATEU aims to build up a better and stronger communication between Turkish employer associations and a cooperation network among Turkish employers carrying out activities in Germany and Europe, officials said.

 

• Energy and Natural Resources Minister Hilmi Güler met with Bulgarian Energy Minister Petar Dimitrov on February 5 in Vienna where he visited to attend a ceremony marking the participation of German company RWE in Nabucco natural gas pipeline project as the sixth partner. Güler told reporters that they discussed how to cooperate in joint energy projects, as well as projects on dams. We have agreed on receiving water from Rezovo River (in Bulgaria) and construction of Tunca dam, Güler said. Bulgarian Minister Dimitrov said that they plan to cooperate with Turkey in energy sector. Güler told reporters before the ceremony that Turkey would propose capital Ankara instead of Turkey's eastern border as the initial start point for the pipeline construction to reduce length of the line which would carry gas over Turkey to Europe. Asked whether the Nabucco project was an alternative to Russia's gas grid, Güler said the Nabucco was not "a rival for anyone. "This project has a distinct character and a different consumer mass. Many of our neighbors are rich in natural gas but they lack necessary investments so the Nabucco will give opportunity to make investments in these gas-rich countries," Güler said. He added that conflicts between the US and Iran won't get in the way in transporting natural gas to Europe. Güler also met with the head of Austrian oil and natural gas company OMV, and then left Vienna for Qatar. The Nabucco pipeline makes Turkey an energy terminal and connects Europe to large natural gas reserves of the Caspian, Middle East and Egypt. The pipeline will be 3,300 kilometers long and will cost around five billion euros to complete. It would be completed by the year 2012. Once completed, the pipeline will carry 31 billion cubic meters of gas annually.

 

• Now is the time for Turkey to forge its own success story, rather than listen to those of others, said Industry and Trade Minister Zafer Çağlayan on February 2. Speaking at a meeting on Turkey's industrial strategy, Çağlayan said Turkey has become the 17th biggest economy in the world and the sixth in Europe. He said Turkey's new strategy in industry would be established on four basic pillars. Çağlayan listed these four pillars as, providing a predictable and sustainable business environment for entrepreneurs, determination and implementation of right incentives in order to solve the temporary problems in the market, establishing dialogue and cooperation between private and public sector, and determination of the issues that will help the country to succeed in global contest and taking the necessary measures.

 

• State Minister Kürşad Tüzmen said that Turkey needs uninterrupted inflow of foreign currency. Turkish Exporters' Assembly (TIM) announced the monthly export figures at a meeting held in Eskişehir on February 1 and attended by Tüzmen and Finance Minister Kemal Unakıtan. "We aim to reach $118 billion of exports in 2008. We should endeavor to achieve this goal," Tüzmen told participants of the meeting. "There is need for an uninterrupted inflow of foreign currency to the country. The way to secure continuous inflow is to boost exports and tourism. Raising the amount of foreign capital and increasing the number of privatized companies in Turkey are the other elements," he said. Tüzmen said Turkish exports figure grew by 38.4 percent to reach $12.9 billion from January 1 to February 9. Exports figure had been $2.7 billion in the first nine days of February 2007. Tüzmen said that exports in the last 12-month period reached $109 billion.

 

• Turkish Petroleum Corp. (BOTAŞ) included Egypt-Turkey natural gas pipeline in its international projects. Turkey will receive 2-4 billion cubic meters of natural gas while Europe will have 2-6 billion cubic meters of natural gas from the pipeline at first hand. The natural gas will be carried to Turkey via Syria, and first natural gas pumping is planned to start in 2011, according to the project. According to the framework agreement which was signed between Turkey and Egypt, each country will undertake the construction of required pipelines within their borders. Syria will build 230 kilometers of pipeline from Homos to its border with Turkey; and it will operate it. Turkey and Egypt will help Syria to find finance to build Homos-Turkey part of the pipeline.

 

• Italian Ambassador to Turkey Carlo Marsili on February 4 attended the opening of an exhibit by Piemonte Torino Design hosted by carmaker Tofaş in the northwestern province of Bursa. The show, featuring more than 250 works of art created in Italy’s Piedmont region, lasted through February 14. Tofaş Automobile Factories CEO Ali Pandır and Koc Holding Automotive Group Chairman Turgay Durak were present at the opening.

 

• A six-member delegation from Syria's Ministry of Environment and Local Government visited Turkey to study and research the Southeastern Anatolia Project (GAP). The delegation headed by Deir ez-Zor Governor Ahmad Al Khaled visited the governor's offices of Mardin, Şanlıurfa and Gaziantep and study the investments made under GAP. The visit took place on February 5-7. The delegation met with Mardin Deputy Governor Yavuz Selim Süzer. Süzer said, "Mardin is a tourism city with its cultural values and historical structure. Also industry, agriculture and transportation are important sectors in the city. We want to develop our relations with Syria. We are now on the final stage to open a new gate between Nusaybin (a town of Mardin) and Syria for transit passages. When this gate is opened, our commercial relations will further develop." Al Khaled said they arrived in the region to improve dialogue with neighboring countries as well as to learn about the Southeastern Anatolia Project (GAP). He added that Deir ez-Zor city has an important location in Iraq-Turkey-Syria triangle.

 

• Exports from three Black Sea provinces (Artvin, Rize and Trabzon) rose 53 percent in January compared to 2007, said the Eastern Black Sea Exporters' Union (DKIB) on February 4. In a press release, DKIB Chairman Ahmet Hamdi Gürdoğan said that exports from those three Black Sea provinces were worth a total of $108.1 million in January. Last year, exports from these three provinces in January were worth $70.5 million. According to Gürdoğan, in January, exports from Trabzon were worth $87.4 million, from Rize were worth $18.3 million and from Artvin were worth $2.7 million. Most of the exports from eastern Black Sea were hazelnuts, minerals and vegetables and fresh fruits. In January, eastern Black Sea made exports to 42 countries world wide. The EU received most of the exports from eastern Black Sea.

 

• Outgoing Romanian Ambassador to Turkey Constantin Grigorie paid a farewell visit to the Izmir Chamber of Commerce and its head Ekrem Demirtaş on February 4. "I am sure our paths will cross again and we would like to see your continued support for Izmir's Expo 2015 candidacy on your new mission," Demirtaş told Grigorie. On his part, Grigorie said he had established friendly ties in Turkey. Grigorie has been the chief of Romanian mission since 2004 and he is appointed as ambassador to Moscow. Romanian Ambassador to Turkey Constantin Grigorie paid a visit to Izmir Governor Cahit Kıraç on February 4. Grigorie said he would be concluding his task as ambassador after President Abdullah Gül's visit to Romania. Grigorie said relations between the two countries were in a good level and volume of trade between two countries which had been $1.7 billion in 2003 reached $6.5 billion in 2007. He said Turkey was ranked fourth behind Italy, Germany and France in foreign trade list of Romania. After his mission ends in Turkey, Grigorie will serve as Romanian Ambassador to Russia.

 

• William Ray Crabtree, head of the Kışladağ gold mine in the Aegean province of Uşak, said Turkey would become the leading gold and silver producer in the world. "Paul Wright, the CEO of our company, also believes in Turkey's future," he said at the biggest gold mine of Turkey with 200 tons of reserves in Esme, Uşak. Crabtree said cyanide will not be dangerous when used carefully, and he has not seen any one who died due to gold mines or cyanide for 24 years. "If they knew, environmentalists will not be prejudiced against us," he said. Crabtree said if used correctly, cyanide will not be harmful and they have used the best technology at Kışladağ gold mine. Crabtree said he will retire some time later and he will leave Turkey believing that he has taught good gold producers.

 

• Exports from Germany to Turkey rose 5 percent in January-November, 2007 compared with the same period of 2006, said a statement by German Federal Statistical Office on February 6. German exports to Turkey rose five percent to 13.9 billion euros from January to November 2007 compared with the same period a year earlier according to provisional results. Imports from Turkey rose 5.7 percent to 9 billion euros over the same period. Hence, growth in exports decelerated from January to November 2007 (14.1 percent in January-November, 2006), as did growth in imports (11.2 percent in January-November, 2006), too, compared with the corresponding period of the preceding year. Turkey is 17th place among countries which Germany exports most products, while on the 20th place Germany imports most products.

 

• Food Product 2008, the 15th Mediterranean Food and Beverages Fair, opened at Antalya's Expo Center on February 6. Meat and meat products, dairy products, seafood, dried or fresh vegetables and fruit, frozen food, biscuits, honey, jam, chocolate, different types of oil, cereals, additives, alcoholic and non-alcoholic beverages, and spices were exhibited at the fair. Some 50,000 Turks and foreigners visited the fair which lasted through February 9.

 

• French President Nicolas Sarkozy invited a young Turkish businessman, Mustafa Yıldız, to France's Presidential Palace. In 2005 Yıldız won a special creativity award given to young people living in problematic suburbs in France,. Sarkozy invited 50 other successful youths to the palace for February 8. "When I received this award in 2005, four people were working with me. Now 13 people work in my company. Annual turnover has reached 1.4 million euros. I want to maintain my success in business life also in politics," Yıldız said.

 

• More than 15 Turkish companies are expected to join the intralogistics fair CeMAT in Hanover, Germany on May 27-31. "1,100 firms will participate in the fair to take place on an 80,000 square-meter exhibit hall," Wolfgang Pech, the deputy chairman of Deutsche Messe AG, told a press conference in Istanbul on February 6. Pech said over 50,000 people are expected to visit the fair where companies will exhibit industrial trucks, fork lifts and accessories.

 

• A group of businessmen from Young Businessmen Confederation of Turkey (TUGIK) traveled to South Africa to seek business opportunities in this country. A delegation of 40 young Turkish businessmen went to South Africa on February 7 as guests of South African-Turkish Business Association (SATBA) and Turkish-South African Business Council. The TUGIK delegation had business meetings with South African businessmen and signed a cooperation agreement with SATBA.

 

• Exporters from the East Anatolia Region are attending international fairs to promote products of the region. Kamil Polat, chairman of East Anatolia Exporters' Association (DAIB), said on February 6 that they opened stands in eight international fairs in 2007 and aimed to join more fairs in 2008. Polat said exports from the provinces (members of the DAIB) amounted to $2.1 billion in 2007 and they expected export figures would reach $2.5 billion this year. DAIB would participate in home textile fair in Kazakhstan in the next days, he stated.

 

• Prime Minister Recep Tayyip Erdoğan said Turkey has earned $40 billion from privatization during the rule of his Justice and Development Party (AKP). Erdoğan said on February 7 that the country earned a mere $8 billion between 1984 and 2002. Erdoğan said the government did what was required in regard to Turkey's EU accession and with great determination. "The government is doing all it can to boost the standard of living of the Turkish people," he added.

 

• State Minister Kürşad Tüzmen said he believes Turkey's textile and ready-made clothing turnover will climb to $150 billion. "Turkey is in the eighth place in world textiles, and the fourth in ready-to-wear industry," Tüzmen told in the inauguration ceremony of the 11th International Fashion Fair in Istanbul on February 7. Tüzmen said Turkey's textile exports were up 17 percent and ready-made clothing exports were up 16 percent in 2007 despite an overvalued YTL. "Turkey earned $9.5 billion from textile exports, and $13 billion from ready-to-wear exports last year," he said. 250 firms participated in the fair which hosted a fashion show by designer Özlem Süer on February 7. French designer Jean-Luc Amsler organized a fashion show on the second day of the fair. Ready-made clothes, knitwear, sportswear, underwear, socks, denim and accessories were on display in the fair that closed on February 9.

 

• An Istanbul-based businessmen's association is set to open a Turkish export products in Uzbek capital Tashkent on April 1. The four-day event aims at supporting Turkey's small and medium scale enterprises to increase their competitiveness in world markets and boosting commercial and economic cooperation between Turkey and Uzbekistan.

 

• The Second Maastricht Turkish Businessmen Summit organized by the Dutch-Turkish Businessmen Association (HOTIAD) began in the Netherlands on February 9. Taking the floor in the inauguration of the summit, Turkish Ambassador in The Hague Selahattin Alpar said 12,000 Turkish companies have been operating in the Netherlands. Trade volume between the two countries amounted to 5.5 billion euros in 2007 and it is expected to become 7.5 billion euros at the end of 2008, he said. There are nearly 100,000 entrepreneurs of Turkish origin in European countries, it was reported in the summit.

 

• Mongolia has a great potential for Turkish entrepreneurs, Cengiz Macun, chairman of the Turkish Foreign Economic Relations Board (DEIK) Turkish-Mongolia Business Council, said. "Turkey-Mongolia Economic and Cultural Relations Forum" organized by DEIK began in Ankara on February 7. Macun said trade volume between Turkey and Mongolia was $4 million in 2005 and it rose to $9.8 million in 2007. The two countries can cooperate in the areas of energy, railway, highway transportation, leather and tourism. DEIK Turkish-Eurasia Business Councils Coordination Chairman Tuğrul Erkin said 6,000 Turkish entrepreneurs working in Eurasia could exert similar efforts in Mongolia as well.

 

• Textile exports from the northwestern province Bursa's rose 23.2 percent and from ready-to-wear clothing sector increased 37.5 percent in January 2008 compared with the same month of 2007. According to the Uludağ Exporters' Association (UIB), exports from the textile and ready-to-wear clothing sectors totaled $144.3 million in January 2008. The textile sector exported its products to 84 countries and autonomous regions and 8 free zones while the ready-to-wear clothing sector exported its products to 67 countries and autonomous regions and five free zones last month.

 

• Russia ranked fifth among countries to which Turkey exported most of its products in 2007. According to the Foreign Trade Undersecretariat, Turkey's tomato, grapes and citrus exports to Russia amounted to $415 million. The country's exports to Russia rose 46 percent in 2007 compared to 2006. Germany ranked first among countries to which Turkey exported most of its products. Exports to Germany totalled $11.9 billion in 2007. Britain, Italy and France followed Germany.

 

• Turkey will host the 15th World Congress of the International Economic Association (IEA), a triennial event that will gather famous economists in Istanbul on June 25. The main theme of the congress will be "Challenge of Globalization" and it will discuss several topics that effects whole world such as, recent crises in emerging markets, financial globalization and global instability as well as brain drain. IEA President Guillermo Calvo, Professor Dani Rodrik from Hard University, Professor Maurice Obstfeld from the University of California, Berkeley, and Ronald Findlay from Columbia University, who are among the world's most significant economists, will make keynote speeches at the congress. Economists from notable universities around the world such as Columbia, MIT, Harvard, Yale, Stanford and Princeton will take part in the event together with other economists from countries such as the US, Turkey, China, Japan, India, Argentina, Mexico, Hungary, France and Norway.

 

• Turkey's national income for the year 2007 will exceed $500 billion for the first time, if Turkey's growth rate in the last quarter of 2007 is above 2.6 percent. National income will reach $496.9 billion even if the growth rate is at zero in this quarter, according to the Turkish Board of Statistics. national income per capita will rise to $7,139 for the year 2007 as population was below expectations in the 2007 census. National income per capita was projected to be $6,625 in government's program.

 

• The Whole Industrialists' and Businessmen's Association (TUMSIAD) signed a series of commercial agreements with Saudi Arabian companies during the association's recent visit to this country. During the visit, the TUMSIAD delegation held talks with the Jiddah Chamber of Commerce and Industry, Islamic Development Bank, Organization of the Islamic Conference (OIC), Indian Muslim Businessmen's Association and the Medina Chamber of Commerce, said a TUMSIAD statement. While the delegation signed a protocol with the Jiddah Chamber of Commerce and Industry, the Turkish businessmen in the delegation signed agreements worth nearly $417 million with various Saudi Arabian firms, the statement added.

 

• Kazakh businessmen headed by Narmukhan Sarybayev met with members of the Chamber of Commerce and Industry of the northwestern province of Bursa on February 11. During the meeting, Sarybayev called on Turkish businessmen to invest in Kazakhstan and make joint investments. Mahmut Yılmaz, deputy chairman of the Turkish chamber, said the two countries can develop projects on transportation of energy and oil products to European countries via Turkey. The businessmen were from Ontustik Special Economic Zone (SEZ) in South Kazakhstan Region. It was created in July 2005 to attract investors to textile industry which is very promising and gainful for the region and for Kazakhstan as a whole. Ontustik SEZ is located in an enclosed land space near the city of Shymkent which is the administrative center of South Kazakhstan region. The territory of 200 hectares allocated to the SEZ is advantageously located close to transportation and energy infrastructure.

 

• Industry and Trade Minister Zafer Çağlayan said they have established a new coding system in Turkey that will give statistics about economic activities and classify Turkish companies. The system will also provide international recognition to Turkish companies. "This is a classification system called NACE which is also used by EU," Çağlayan told a joint press conference with Rifat Hisarcıklıoğlu, chairman of Turkish Union of Chambers and Commodities Exchanges (TOBB), in Ankara on February 11. Hisarcıklıoğlu said companies have to complete this coding in six months. NACE codes represent the statistical classification of economic activities which serves as a basis for compiling statistics on the production, factors of production (labor, raw materials, energy, etc.), fixed capital formation operations and financial operations of firms and other entities.

 

• Prime Minister Recep Tayyip Erdoğan met with a group of leaders of Europe's major multinational companies. Addressing chief officials and chairpeople of the European Round Table of Industrialists (ERT) on February 12, Erdoğan said the European Union, which aims at becoming a major actor in the global economy, could not leave out a country like Turkey which is an international commerce and energy bridge between Europe, Asia and the Middle East. "It is impossible to think of the European and Turkish economies apart from each other as some 65 percent of Turkish exports are made to European countries," Erdoğan said. The Turkish premier called discussions on proposing Turkey an alternative other than full membership in the EU "inappropriate and devoid of any strategic vision." "In this regard we would like to see that European business circles and especially the ERT will continue their support for Turkey's EU bid," Erdoğan said. Erdoğan said Turkey aimed at obtaining a permanent stability in the economy and contribute to the regional peace and prosperity. Erdoğan also said the government is to privatize Turkey's state-run tobacco company TEKEL, country's national air carrier, Turkish Airlines, and Halkbank, the seventh-biggest bank in the country. ERT members told Erdoğan that positive results of 10 points cut in institutional tax rates started to be seen, and also extension of research and development incentives would increase the research and development activities of foreign investors in Turkey. Members said that the newly-established Investment Support and Promotion Agency of Turkey pursues very beneficial activities. Erdoğan said works on measures to prevent unregistered economy continue. Erdoğan also wanted ERT member institutions to take more active role in Turkey's relations with the EU.

 

• Turkish American Business Council, functioning under the auspices of Turkey's Foreign Economic Relations Board (DEIK), will organize a conference on post-2008 Turkey in New York City on March 17. "State Minister for the Economy Mehmet Şimşek will participate in the conference," DEIK said on February 12. According to the board, the meeting will be the sequel to a March 2007 gathering with the participation of Ali Babacan, then state minister for the economy. The conference was entitled "Turkey: The New Target of Direct Investments and Special Investment Funds." The main goal of this year's conference is to show US investors that Turkey is an attractive place for investments and Turkey will not affect by the recent global economic crisis.

 

• Istanbul hosted the Regional Coordinators’ Meeting of the Fifth World Water Forum on February 8 in Istanbul. Environment and Forestry Minister Veysel Eroğlu and Istanbul Greater Municipality Mayor Kadir Topbaş took part in the meeting, a preliminary to the forum itself, set to be hosted by Istanbul in March 2009. During the forum, when asked by a reporter about Istanbul’s water woes and the Melen Water Transfer Project, Eroğlu said: “Istanbul had never had a water plan before our ‘Istanbul’s Master Plan for Fresh Water Supplies, Sewage and Purification,’ which lasts through the year 2040. Everything is clearly laid out in the plan: water resources and purification facilities, etc. In short, I would like to say that Yeşilçay and the Great Melen project are only two of the water resources in the master plan.” Eroğlu said that water from the Yeşilçay stream was piped to Istanbul starting in 2003 and that the Melen project was only launched after this project’s completion. Eroğlu also said that Turkey had no plans to change its water-sharing policy with neighboring states. “We want the water to be shared fairly and on an equitable basis,” he explained. “We have some water problems with Iraq and Syria over the Tigris (Dicle) and Euphrates (Fırat) Rivers and the Orontes (Asi) River. We’ve made some decisions on these issues. First, we should solve our problem by ourselves, and any interference from other countries is unacceptable. Second, we advocate fair water sharing that will maximize the interests of all three countries. Third, water-sharing problems should not cause any conflicts among these three countries. On the contrary, these problems should be regarded as an opportunity to improve friendship, trade, and good neighborly relations. Technical committees hold meetings to discuss these issues.”

 

• State Minister Kürşad Tüzmen said Turkey's target in foreign contracting business is to lead the world. "We aim to undertake $500 billion of business in 2023 – when Turkish Republic will be celebrating the 100th anniversary of its foundation," he said on February 12. Tüzmen said some of Turkish contracting companies are a world brand today and Turkish contracting business is the third in the world following the United States and China. "There are 22 Turkish firms among 225 giant contracting firms in the world," he said. According to him, Turkish contractors have undertaken more than $100 billion of projects in the world so far. Tüzmen said Turkish contracting firms are having letter of guarantee problem and pay high amounts of money to foreign banks. "If Turkish banks extend support to contracting firms, our firms will become more lucrative and undertake more projects in the world. Thus, we can reach our targets earlier than foreseen," he said.

 

• Prime Minister Recep Tayyip Erdoğan received Jozias Van Aartsen, European Union's coordinator for natural gas projects in southern Europe, and his delegation in Ankara on February 14. Erdoğan and Aartsen discussed energy issues including Nabucco Project in the meeting. Energy and Natural Resources Minister Hilmi Güler met with Jozias Van Aartsen in his office in Ankara. Güler said he believed Turkey would complete Nabucco Project successfully as it did with important projects such as BTC (Baku-Tbilisi-Ceyhan pipeline project) and Shah Sea. Güler told reporters that he and Aartsen had focused on the Nabucco Project in their meeting. "The project is being conducted rapidly. Turkey attaches great importance to this project." he said. Aartsen said, "After my visit in Turkey, my faith grew stronger that the Nabucco will work.” Aartsen cited Turkish officials as reiterating support for the project, saying, "I am very convinced that Nabucco can be realized, and Turkey and the EU are committed to this project." The EU official said the participation of Gas de France did not come up during his meetings in Turkey.

 

• Ergun Özen, the head of Turkey's Garanti Bankası, was elected a member of the Board of Directors of the Institute of International Finance (IIF). The IIF has more than 370 member finance institutions headquartered in over 65 countries. IIF members are the representatives of the world's leading commercial banks, investment banks, insurance companies and investment management companies.

 

• Prime Minister Recep Tayyip Erdoğan said if Turkey's GNP grows to $800 billion by 2013, investments in the area of research-development may amount to $16 billion. Turkey's remarkable potential creates several significant opportunities, he said in a February 14speech to the Turkish Patent Institute (TPE). "We should focus on brand development and create brands to compete in the international platform," Erdoğan said. "Turkish government attaches great attention to research-development projects and it will keep assisting such projects," he said.

 

• Homedeco Kazakhstan and Unistyle 2008, two international textile and décor shows, began in the Kazakh province of Almaty on February 14. Turkish Ambassador in Almaty Taner Seben and several other officials inaugurated the fairs organized by Turkel Fair Organization. Speaking at the inauguration, Seben said Turkish products were introduced in the Kazakh market and commercial relations between Turkey and Kazakhstan improved thanks to such fairs. A total of 46 Turkish ready-to-wear and apparel firms attended Unistyle 2008. Firms introduced their newest collections of women's, men's, children's wear, as well as sportswear, underwear and accessories for the spring-summer period. 34 Turkish companies participated in Homedeco Kazakhstan. Both fairs ended on February 16.

 

• Leading German commercial economy newspaper Handelsblatt hailed Turkish businesswoman Güler Sabancı as "the most successful woman in the Turkish economy." "The paper's Unternehben & Markte supplement published a story about Sabancı Holding Chair Güler Sabancı," Sabancı Holding said on February 17. According to the holding, Gerd Hoehler interviewed Güler Sabancı and meantioned how business magazine Fortune ranked her the eighth most powerful businesswoman in the world. "She is running one of Turkey's biggest holdings," the story also said. It also said after Güler Sabancı took Sabancı Holding's reins, it has been breaking records.

 

• Some 72 percent of the world's boron beds are located in Turkey, but Turkey has only a 32 percent share in world boron production. "Turkey's Eti Mining produced 1.1 million tons of boron in 2007," Eti head Orhan Yılmaz said on February 17. Yılmaz said he expects their boron production to rise to 1.4 million tons this year. "We earned $339 million from our exports in 2007," he also said.

 

• State Minister Kürşad Tüzmen said that the Turkish government looks at the health sector as a new sector of exports. Speaking at the inauguration of a new private hospital in the southern province of Mersin on February 16, Tüzmen stressed that all investments in the Turkish health sector are the best investments possible. "In the recent times, Turkey has become a global trade mark in providing health services. The number of foreign patients arriving in Turkey to seek medical help is rising rapidly. This shows how far medicine has gone in Turkey," Tüzmen stressed. The health sector will bring in revenues from foreign lands to Turkey, Tüzmen also said.

 

• Hüseyin Erkan, chair and CEO of the Istanbul Stock Exchange (IMKB), said they had begun a project to form stock exchange funds where certain shares from exchange markets of Istanbul, Athens and Cairo would be transacted. Delivering a keynote speech at the conference on "Turkish Capital Markets and the Future of Financial Services" organized by the Capital Markets Board (SPK) on February 15, Erkan said recently there was a trend of regional and global mergers in the capital markets around the world, which aims at providing a supply opportunity and a common purchase-sale platform through a common technologic network. He said this trend also aimed at enhancing the competitive capacity of the regional markets in the global arena.

 

• The Turkish-Romanian Business Council, functioning under the auspices of Turkey's Foreign Economic Relations Board (DEIK), will hold a Turkish-Romanian Business Forum on the sidelines of President Abdullah Gül's upcoming visit to Romania on March 2-4. Commercial relations, as well as bilateral investment and cooperation opportunities between Turkey and Romania will be discussed during the forum which will take place on March 3. The forum especially aims to highlight new opportunities in energy and transportation sectors, the statement added.

 

• The Turkish Foreign Economic Relations Board (DEIK) will hold the sixth joint meeting of Turkish-Iranian Business Council under the leadership of the Turkish Union of Chambers and Commodities Exchanges (TOBB) Chairman Rifat Hisarcıklıoğlu on March 11 in Tehran. Participants will discuss the trade volume between Turkey and Iran as well as opportunities to develop mutual investment milieu in the meeting. Officials of Turkish and Iranian companies will also hold bilateral talks as part of the meeting which will be hosted by Iran Chamber of Commerce, Industries and Mines (ICCIM) head Mohammad Nahavandian. Iran, the second biggest oil producer of OPEC, owns 10 percent of world oil reserves and 17 percent of natural gas reserves. Turkey-Iran trade volume is $8 billion.

• Finance Minister Kemal Unakıtan said direct foreign capital flow into Turkey in 2007 totaled nearly $22 billion. A signing ceremony of a meeting of the Turkey-United Arab Emirates (UAE) Joint Economic Committee was held at the Turkish Foreign Trade Undersecretariat in Ankara on February 15. Unakıtan and UAE Economy Minister Lubna al Qasimi signed the protocol. During the ceremony, Unakıtan said UAE investments in Turkey reached $4 billion. He said the trade volume between the two countries grew fourfold during the last four years and reached $3.7 billion last year. Unakıtan also said a free trade agreement between Turkey and the Gülf Cooperation Council (GCC) should be signed as soon as possible. President Abdullah Gül and Prime Minister Recep Tayyip Erdoğan received Lubna al Qasimi on February 15.

 

• The Second Eurasian Boat Show opened its doors to visitors in Istanbul's CNR Expo Center on February 15. "Turkey is constructing the best yachts in the world," State Minister Kürşad Tüzmen said during the inauguration of the fair. Tüzmen said, "They say that richest people in the world want their yachts to be constructed in Turkey because of not only prices but also for high quality." According to Tüzmen, Turkey earns about $2 billion from this sector and the best yachts in the world are constructed at Antalya and Kocaeli free zones. Boating accessories, vessel construction materials, speed and cruise boats, motor yacht and power equipment, water sports gear, sea wear and accessories, marine rescue and emergency gear are on display at the fair. Attended by about 300 Turkish and foreign companies, the fair will end on February 24.

 

• Turkey has nearly 50 billion tons of 49 types of underground mines, according to a report by the Turkish Mining Examination and Exploration Institute (MTA). Turkey ranked 28th in terms of production of mineral resources and comes on the 10th place concerning diversity of mines among 132 countries, the report said. The country possesses 77 of 90 types of tradable mines in the world. Turkey has the largest underground mineral reserve of dolomite with 15.8 billion tons, according the report of MTA. There are 13.9 billion tons of marble, 8.3 billion tons of lignite and 5.7 billion tons of rock salt in the country.

 

• Turkish Fashion and Textile 2008 Fai opened in Sofia, Bulgaria on February 21. Products and services of 38 Turkish companies were promoted in the fair which was organized by Meridiyen. Turkish Ambassador in Sofia Mehmet Gücük said that trade between Turkey and Bulgaria reached $2.5 billion in 2007, adding that Turkish investments in Bulgaria exceeded $700 million. The fair ended on February 24.

 

• The Turkish-French Cooperation Day, co-organized by the Gaziantep Chamber of Commerce (GTO) and the French Embassy in Ankara, was held in the southeastern city of Gaziantep. GTO head Mehmet Aslan criticized the French Parliament for passing a bill supporting Armenian claims about 1915 and the French stance against Turkey's accession to the EU. "We find making of certain inaccurate political assessments into accession citeria for EU membership very awkward," said Aslan. Aslan said Gaziantep was the opening gate of the Southeastern Anatolian Project (GAP) to the world and said, Gaziantep exported products worth $3 billion to 141 countries. He said more than 700 companies operated in four different industrial zones.

 

• Defense Minister Vecdi Gönül arrived in the Netherlands on February 17 to promote the Aegean city of Izmir's bid to host Expo 2015. Gönül met with Dutch Prime Minister Jan Peter Balkenende, Health Minister Ab Klink and Defense Minister Eimert van Middelkoop. Expo 2015 is the third largest event in the world in terms of economic and cultural impact, after the FIFA World Cup and the Olympics. The venue for Expo 2015 has not been fixed yet, and will be announced on March 31. Turkey expects 20-30 million visitors if Izmir wins the contest to host the event, Gönül said. Following his talks in the Netherlands, Gönül proceeded to Belgium to have meetings on the same matter. Gönül asked for the support of Belgium for Izmir's candidacy to host Expo 2015. Speaking at the reception, which was hosted by Belgian Turkish Private Sector Association and the Turkish Embassy in Brussels, Gönül said that Izmir is the most appropriate city in all aspects to host Expo 2015. Gönül said that Expo has never been organized in an eastern Mediterranean city, adding that now it is time to hold it in Izmir. Gönül delivered to Prime Minister Guy Verhofstadt a letter expressing Turkey's request to that end. Gönül also met with Economy Minister Sabine Laruelle and his counterpart Pieter De Crem. Gönül returned to Turkey on February 20.

 

• Turkish Foreign Trade Deputy Undersecretary Ülker Güzel said she foresees Turkish-Uzbek trade volume to be over $1 billion by the end of 2008. "The trade volume between the two countries was $600 million in 2006. It was up 41 percent in 2007 and reached $840 million," Güzel told a meeting on Turkish-Uzbek economic relations organized by the Uzbek Embassy in Ankara and Eurasian Economic Relations Association on February 20. Güzel said direct investments of Turkish-Uzbek partner countries are around $1 billion. "Turkish businessmen make direct investments in Uzbekistan, and contribute to Uzbekistan's economic growth and employment," she also said.

 

• Turkey's Foreign Economic Relations Board (DEIK)/Turkish-EU Business Council hosted Marc Pierini, head of the Delegation of the European Commission to Turkey, in Istanbul. Pierini attended a working luncheon in Istanbul on February 22, and told private sector representatives about recent developments in Turkey's EU bid.

 

• A new chamber of commerce called the American-Turkish Chamber of Commerce will be founded in the United States. ATCOM's second general meeting aiming to bring together Turkish and American businessmen from New Jersey, Pennsylvania and Delaware was held in New Jersey on February 19. Some 200 participants including Turkey's Consul General in New York Mehmet Samsar, Turkish diplomats, Duden Yegenoglu, Washington representative of Turkish Union of Chambers and Commodities Exchanges (TOBB), Mustafa Merc, chair of Turkish-American Chamber of Commerce and Industry (TACCI) businessmen and scholars attended the meeting. In a speech, Samsar stressed the importance of uniting of Turkish businessmen in the US under an organizational structure and regarded it as a step that would render the Turkish community in the US more influential.

 

• Fawaz Acuz, acting chairperson of Turkey-Syrian Businessmen Council said that they wanted to increase the current trade volume between two countries from $1.2 billion to $5 billion. A delegation of businessmen from Syria visited Osman Nuri Canatan, Deputy Governor of the Southeastern city of Mardin on February 19. Speaking to reporters during the visit Acuz said, "We are expecting many businessmen from Turkey to attend the "industrialists and businessmen meeting" to be held in Damascus, Syria on April 26-27." He said they would visit Premier Recep Tayyip Erdoğan and State Minister Kürşad Tüzmen and invite them to the meeting. A Syrian Trade Office has opened in Gaziantep. The office, established under the auspices of the Gaziantep Chamber of Commerce (GTO) under the Turkish-Syrian inter-regional cooperation program, began offering services on February 21. "The office aims to enhance commercial and economic relations among Gaziantep, Kilis and Aleppo," the GTO said. The GTO also said the trade office will brief and help Turkish companies that want to establish commercial ties with Syria.

 

• Net direct international investment inflow to Turkey was up 9.8 percent in 2007 and reached $21.8 billion. According to Turkey's Treasury Undersecretariat, this figure was only $19.9 billion in 2006. net international direct investments in December 2007 were $3.2 billion. However, it was $3.6 billion in December 2006.

 

• Combined with Turkey's fast economic growth, British American Tobacco (BAT) winning the privatization tender for Tekel Cigarettes will strengthen BAT's position in Turkey, the world's eighth-largest cigarette market, said the firm's CEO Paul Adams. BAT won the tender with a $1.72 billion bid on February 22. After the Supreme Board of Privatization gives its final approval, the procedures will probably be completed this year, he said. When the approval process is complete, BAT will increase its 7 percent share of the Turkish market to 36 percent, he predicted.

 

• The Turkish Electricity Distribution Corporation (TEDAS) signed a loan agreement in February with the World Bank regarding an electricity distribution rehabilitation project. According to the World Bank Mission in Turkey, the loan was around 205 million euros ($269 million) and will be used by TEDAS and guaranteed by the Republic of Turkey. The loan has a 15-year maturity, including a five-year grace period, a variable spread, and level repayments of principal. The Electricity Distribution Rehabilitation Project aims to improve the reliability of power supply to consumers in Turkey. The project will support the rehabilitation and expansion of electricity distribution in critical areas, help reduce interruptions in supply, and help improve the distribution system's compliance with safety regulations. The project includes rehabilitation and expansion of the distribution network of the regional companies of TEDAS namely Ayedas, Uludağ, Meram, Gediz, Toroslar, Menderes, Osmangazi and Akdeniz. Planned investments will target those parts of the distribution network with the most serious capacity, efficiency, and safety challenges. They also aim to extend technical assistance to TEDAS and the regional companies in managing and supervising the implementation of the investment projects. At the signing of the loan agreements, Ulrich Zachau, the country director for Turkey, said the World Bank is very pleased to support Turkey's rehabilitation and expansion of its electricity distribution system. "Reliable, efficient electricity distribution is crucial for ensuring a secure energy supply for Turkish families, businesses, and public institutions and for sustained economic growth," he said. Zachau said the planned investments under the project will help achieve this goal. "They will help upgrade and rehabilitate critical parts of Turkey's energy distribution, reduce losses in the system, increase the efficiency and reliability of electricity available to consumers. They will also help make the electricity sector more attractive for private investment," he also said.

 

• Energy and Natural Resources Minister Hilmi Güler said, "Swiss EGL which is planning to build The rans-Adriatic Pipeline (TAP) is also considering generating electricity by building a natural gas power plant in Turkey. TAP is a joint project of Turkey and Switzerland which aims to carry Iranian natural gas to Balkans, Albania and then to Italy via Turkey. Güler who met with Walter Steinmann, the head of the Swiss Energy Office, in Ankara told reporters that Turkey and Switzerland will sign a memorandum of understanding soon regarding TAP project. Güler said there are five nuclear electricity power plants in Switzerland (with a population of 6 million), and they were planning to increase the number of power plants in Turkey. He said that they had an important meeting with Swiss delegation about energy productivity and renewable energy issues. When reporters asked whether there is a problem with the natural gas flow from Iran to Turkey, Güler said, "Currently we are receiving natural gas from Iran. However, the problem will completely be solved when a new pipeline is constructed. Officials of Turkish Petroleum Pipeline Corp. (BOTAS) and National Iranian Gas Company are holding talks on this issue." Steinmann said they place great importance on developing cooperation with countries like Turkey in renewable energy, nuclear energy and safety issues. Steinmann said that Turkey and Switzerland have initiated many projects in energy area, and those projects will be further developed.

 

• President Abdullah Gül hosted a luncheon for CEOs of foreign firms operating in Turkey on February 18 at Istanbul’s Huber Palace. Following the luncheon, representatives of the Economic Development Foundation (IKV) came to the palace. The two events were closed to the press.

 

• Herve Novelli, France’s secretary of state for industry and foreign trade, said that Turkey and France might sometimes have different opinions on certain issues, but the most important thing is to improve communication and relations concerning trade. Novelli said such an improvement would affect political relations between the two countries as well. Accompanied by representatives of French SMEs, Novelli paid a visit to French firm Areva Energy's factory in Gebze, Kocaeli. In a speech, Novelli said the number of Turkish investments in France should be increased. He also invited Turkish entrepreneurs to make investments in his country. Novelli and the accompanying delegation visited several sections of the factory afterwards. Areva Energy head Bertrand Filet briefed the visitors on the activities of the factory during the tour. Novelli and State Minister Kürşad Tüzmen arrived in the southern province of Adana on February 19. After arriving at Adana Airport, Novelli and Tüzmen proceeded to the southern province of Mersin to hold talks and visit facilities. Tüzmen said that he believes Turkish-French trade volume can be increased to 20 billion euros very soon. Tüzmen received Novelli and a group of French businessmen at the Foreign Trade Undersecretariat in Ankara on February 19. Speaking at the meeting, Tüzmen said the trade volume between Turkey and France stands at 10 billion euros. "This is very small when you look at Turkey’s total trade of $280 billion and France’s of 1 trillion euros," he said. "5.5 percent of all Turkish exports go to France. 4.5 percent of all imports made by Turkey come from France. I believe the Turkish-French trade volume could soon rise to 20 billion euros soon." Novelli said there are still many things Turkey and France will fulfill together, and boosting economic ties may bring solutions to political problems. “Turkey has become the world’s 16th-largest economy,” he said, adding that France, as a big power, wants to improve its relations with Turkey.

 

• The State Planning Organization (DPT) stated on February 18 that since Turkey joined the Customs Union in early 1996, imports into Turkey climbed have 22.1 percent and Turkish exports risen 7.3 percent. Turkey's imports which had been $35.7 billion in 1995 rose 22.1 percent to $43.6 billion after 1996. Total exports which had been $21.6 billion in 1995 climbed only 7.3 percent to $23.2 billion in 1996. Turkey's imports from EU countries had been $16.8 billion in 1995 but rose 37.2 percent to $23.1 billion after Customs Union in 1996. Exports to EU countries which had been $11.07 billion in 1995 climbed 4.3 percent to $11.54 billion in 1996. Turkey's total imports climbed to $116.7 billion in 2005, and $169.9 billion in 2007. Exports which had been $73.4 billion in 2005 reached $107.1 billion in 2007. Total imports made from EU countries was $68.5 billion; while total exports was $60.4 billion in 2007. After Turkey joined Customs Union, foreign capital investments in the country dropped. Foreign capital investments had been $934 million in 1995, while this figure dropped to $914 million in 1996. Foreign capital investments in Turkey were $1.7 billion in 2000, $8.5 billion in 2005, $17.8 billion in 2006; and $13.8 billion last January to November.

 

• Economic and investment opportunities between Turkey and the Netherlands were discussed at a meeting held in Amsterdam. The meeting was organized with the initiatives of Dutch Industrialists and Businessmen Association VNO-NCW, International Financial Consultancy Office KNMG, Turkey Institute and Fortisbank. Taking the floor at the meeting, Arzuhan Doğan Yalçındağ, chairwoman of the Turkish Industrialists' and Businessmen's Association (TUSIAD), said the Turkish economy had seen important progress and success in recent years, indicating that Turkey's direction was definitely the European Union membership. She said Turkey has no alternative but full membership. Yalçındağ said economic development would further be accelerated after being an EU member, "I see Turkey's EU membership as a development project," she said. Jan Laurens Brinkhort, a former Dutch economy minister and a member of the the Turkey Institute Board, said Turkey deserves EU membership. He said it had fulfilled requirements of globalization process successfully and presented important opportunities for foreign entrepreneurs. Brinkhorst said he believed Turkey would conclude what it should do in democratization process and law during the negotiation process.

 

• Chinese investors and media members will visit Aegean province of Izmir in March and April 2008. The cooperation between Turkey and People's Republic of China and the investment opportunities in both countries were discussed at a seminar held at Aegean Region Chamber of Industry (EBSO) in Izmir on February 21. Alptekin Aydın, partner of Timelink International Trading, briefed participants on the Chinese market and investors during the seminar. Aydın said Izmir was described as one of the "best 70 cities to invest in" and the Aegean region was described as one of the "best 40 regions to invest in" by the Chinese. "These developments increased Chinese investors' interest in Anatolia," he said. Aydın also said the delegation to arrive in Turkey in March will be comprised of officials and journalists from several Chinese TV channels and newspapers. He said a group of Chinese businessmen carrying out activities in automotive and furniture sectors will arrive in Turkey in March or April.

 

• Representatives of three French agricultural firms arrived in the southeastern province of Şanlıurfa on February 21 to seek investment opportunities. "Şanlıurfa meets 7 percent of Turkey's wheat production and 55 percent of its lentil production," Emin Gerger, deputy chairman of the Şanlıurfa Trade Market, told French businessmen. Gerger said their market is the fifth market among 110 other trade markets in Turkey.