ECONOMIC BRIEFS

• Thirteen new organized industry zones will be established in Turkey in 2008. The Turkish Industry and Trade Ministry said by 2012 some 78 industrial zones would be established. Five of these zones will focus on stockfarming. The southeastern province of Gaziantep will have the biggest stockfarming zone in Turkey, with an area of 460 hectares.

 

• Turkish chemicals industry's exports rose by 19.24 percent in 2007 when compared the previous year, and reached a record amount of $10.4 billion. Murat Akyüz, the head of the Union of Istanbul Chemical Substances and Products Exporters (IKMIB), said the chemical industry includes products such as detergents, fertilizers, medical chemicals, paints, polishers, fiber, agricultural chemicals, plastics and natural rubber.

 

• The Turkish Union of Chambers and Commodities Exchanges (TOBB) will promote the Third Iraqi International Fair set to take place in the Turkish southeastern province of Gaziantep. TOBB head Rifat Hisarcıklıoğlu, State Minister Kürşad Tüzmen, Iraqi Ambassador in Ankara Sabah Omran as well as many Iraqi officials attended the introductory press conference in Ankara on February 28. The fair – which will be held on May 22-25 – is the only fair which the Iraqi Trade Ministry supports abroad. The trade volume between Turkey and Iraq reached $2.5 billion in 2007. Iraq is considered as one of the biggest commercial partners of Turkey. More than 900 companies from 30 countries participated in last year's fair. Tüzmen said just as before and during the war, Turkey will do everything possible for Iraq in the post-war era. "There is no problem between Turkey and Iraq. We are on the side of the Iraqi people," Tüzmen added. "Turkey can never have problems with the government of Iraq. All commercial initiatives are being supported by the central government of Iraq. Our friendly relations with Iraq will continue forever. We will also continue to fight against the terrorist group.” Speaking on commercial relations with Iraq on March 2, Tüzmen said the trade volume between Turkey and Iraq was $3.5 billion in 2007 and said Turkey's exports to Iraq made up $2.8 billion of this figure. Tüzmen said the Third International Iraqi Fair in Gaziantep in May was very important. He recalled that Iraq used to purchase its needs at the International Baghdad Fair before the war and said that the security threats caused by the war made this impossible. "Now, the International Iraqi Fair held in Turkey fills the gap. The fair that will be held also by the support of Iraqi Commerce Ministry will attract thousands of local and foreign companies that want to do business with Iraq. Thousands of Iraqi citizens will attend the fair to purchase goods and hold talks with participating companies. Iraqi state officials who make purchases on behalf of the state will also be among participants from Iraq," said Tüzmen. He held talks with Iraqi Oil Minister Husayn al-Shahristani and an accompanying delegation in Ankara on March 8. "We expect the bilateral trade volume to reach $6 billion in 2008," Tüzmen said during the meeting.

 

• The European Investment Bank (EIB) gave Turkey loans totaling 2.2 billion euros last year. The total amount of loans given by the bank to Turkey in 2003-07 reached 6.2 billion euros considering 1.8 billion euros issued in 2006. As the bank's short-term perspective, EIB projects to offer nearly 2 billion euros of loans to Turkey each year until 2013, said Matthias Kollatz-Ahnen, vice president of the bank. "It is a significant amount to improve Turkey's infrastructure," Kollatz-Ahnen said. Turkey has been the seventh country to borrow highest amount of money from the bank last year, following Spain, Germany, Italy, Britain, France and Poland, Kollatz-Ahnen said, The bank will continue to support infrastructure investments, municipalities, modernization investments by the private sector and small and medium-sized enterprises through intermediary banks, he said. The European Bank for Reconstruction and Development (EBRD), which is getting prepared to withdraw from the countries in central Europe, plans to make investments in Turkey in the upcoming period. Until 2010, EBRD will cut its financial support to the eight former Eastern Bloc countries which have become EU member states in 2004, sources said. The bank, known as the "World Bank" of Europe, plans to intensify its activities and investments in Turkey after such date. According to officials, the EBRD will hold an annual meeting in Ukrainian capital of Kiev in May during which it will announce its expansion strategy for the next four years. Turkey will be the main target of such strategy, sources said. during the talks to be held with finance ministers of EU member countries, EBRD officials are expected to reveal their plans aiming to include Turkey in the bank's scope of operations. While some EU members express their support regarding Turkey's benefiting from EBRD's financial and other operations, the US supports such cooperation as well.

 

• National Geographic Turkey magazine published an article about the Southeastern Anatolia Project (GAP), considered as one of the most important projects in the history of the Turkish Republic. The article in National Geographic Turkey’s March issue tells about the social, economic and cultural changes in southeastern Anatolia thanks to GAP, which was implemented to raise the quality of life of the people in the region as well as provide effective use of energy and water resources.

 

• Istanbul and the Cairo Chamber of Commerce signed a cooperation protocol at the World of Industry (WIN) fair on March 1. The protocol foresees cooperation in the fields of fair organization and training. Talat Kavvas, deputy chairman of the Cairo Chamber of Commerce, said they want to boost the current trade volume of $1.5 billion between the two countries to $5 billion within two or three years.

 

• Kyrgyz Foreign Minister Ednan Karabayev said that they want Turkish businessmen to undertake more roles in big projects in Kyrgyzstan. Karabayev received Muammer Akkaya, chairman of the Kyrgyz-Turkish Businessmen Association (KITIAD), in Bishkek on March 1. Karabayev called on Turkish businessmen to invest in hydro-energy, industry and agriculture areas which take place in Kyrgyz government's 2007-2010 economic action plan. He told Turkish businessmen about the Kyrgyz government's program. KITIAD is made up of nearly 100 companies which have made investments worth $300 million in Kyrgyzstan over the last 12 years.

 

• Turkey's exports rose 61.4 percent to $10.5 billion in January 2008 over the same month in 2007, the Turkish Board of Statistics (TUIK) said on February 29. In foreign trade figures for January 2008, TUIK said Turkey's imports rose by 53.9 percent to $16.3 billion in the same month. The foreign trade deficit also rose by 41.8 percent to $5.7 billion in January. Turkey's exports were $6.5 billion, imports amounted to $10.5 billion and the foreign trade deficit was $4 billion in January 2007.

 

• Mustafa Çağan of Microsoft Turkey said the company sees Turkey as a center for Africa and the Middle East. "Turkey has become Microsoft's base, and Microsoft manages its investments in the Middle East and Africa from Turkey," Çağan said at a meeting in the Mediterranean province of Antalya. Çağan said 79 centers, including African and Middle Eastern countries, Israel and Pakistan, are managed from Istanbul. "Microsoft Turkey grew 30 percent last year," he added.

 

• The World Bank's Board of Directors discussed and welcomed a new Country Partnership Strategy (CPS) with Turkey for 2008-2011. According to the World Bank at the end of February, the strategy anticipates World Bank financing programs of the Turkish government, or guarantee by the government, up to $6.2 billion during the four-year period. In addition it provides for financing of private sector investments by the International Finance Corporation (IFC) and scope for guarantees against non-commercial risks from the Multilateral Investment Guarantee Agency (MIGA). The World Bank Group's partnership strategy with Turkey is grounded in Turkey's own development agenda, the Ninth Development Plan. The goal of the strategy is to help improve the lives and opportunities of all Turkish people so Turkey approaches, over time, the levels of income and development in other OECD countries and in the EU.

 

• The Turkish International Cooperation and Development Agency (TIKA) and the Agriculture and Rural Affairs Ministry will support nine projects on agriculture and animal husbandry in the Balkans, Central Asia and Africa. Under the projects, Turkish scholars and experts will train experts from Central Asian, Caucasian and African countries on specific matters. The project package includes areas like apiculture, sheep breeding, and fishery as well as training of veterinary surgeon. under agricultural training and cooperation project signed between Turkey and Sudan, an insemination laboratory and training center will be established in Sudan.

 

• Acar Enerji-2007, a Turkish-capital company operating in Georgia, will construct seven hydroelectric power plants in this country. Acar head Metin Kumusoğlu said the company has signed a memorandum with the Georgian Energy Ministry for the construction of the plants. Kumusoğlu said preparation for the plants would take a year and the construction phase would be completed in four years. A total of 736 megawatts will be produced by the plants, he added, and the project will cost nearly $213 million. "40 percent of the electricity to be produced at these hydroelectric plants will be used by Georgia. We plan to export the remaining 60 percent to Turkey," he said.

 

• A high-level workshop took place in Çeşme, Izmir on March 5 as a preparation to the 12th session of the United Nations Conference on Trade and Development (UNCTAD) scheduled for April 20-25 in Accra, Ghana. Turkish International Cooperation and Development Agency (TIKA) Chairman Musa Kulaklıkaya delivered the opening speech of the two-day workshop, that focused on less developed countries and general situation in the African continent. Kulaklıkaya said although Africa was one of the three continents that were the cradle of civilization, living standards in this continent were low. "We stepped up work towards the region particularly after 2005 was declared the Year of Africa. TIKA has opened offices in 17 African countries," he said. Foreign Ministry Undersecretary Ertuğrul Apakan said he was proud to host the workshop in Izmir, which is also a candidate city to host Expo 2015. Apakan said that Turkey has boosted its relations and commerce with African countries. Saying that Turkey provides various facilities to underdeveloped countries in trade without quota and tax, Apakan said the government encourages private sector companies to invest in Africa.

 

• Turkish appliance maker Arçelik is the only Turkish company among the top 500 companies in international trademark filings league. According to the World Intellectual Property Organization (WIPO), Arçelik ranked 101 in terms of companies making international trademark filings, rising from 136. Arçelik made 143 international applications in 2007.

 

• Matthew Bryza, deputy undersecretary of the US State Department, said Turkey and Azerbaijan should reach an agreement regarding the Nabucco project. Bryza, in Baku on March 4 to hold a series of talks, said both Turkey and Azerbaijan's stance regarding certain issues related to Nabucco project was right, and therefore, it was getting difficult to reach an agreement on the issue. Bryza said the actual problem concerning Nabucco project was commercial.

 

• State Minister Mehmet Şimşek and an accompanying delegation left for Switzerland on March 3 to attend a roadshow program covering four European countries. Şimşek delivered a speech at the Emerging Markets Winter Conference organized by JP Morgan, a leading international investment bank. Şimşek later held talks with investors and businessmen in Switzerland, the Netherlands, Germany and Britain. Şimşek returned to Turkey on March 9.

 

• The Seventh Turkey International Oil and Gas Summit (TUROGE 2008) took place in Ankara on March 18-20. The summit brought together energy ministers and state representatives from many countries, including Turkey, the United States, Britain,

 

Italy, Iran, Pakistan and India. In 2007, the TUROGE conference's was opened by Energy and Natural Resources Minister Hilmi Güler and the conference was attended by 500 delegates and 60 speakers.

 

• The Turkish Industrialists' and Businessmen's Association (TUSIAD) released a report on "Turkey's Communication on the Way to the EU Membership: The Case of TUSIAD" in Istanbul on March 5. The report analyzes the TUSIAD Country Communication Committee's activities in 2005-2007 towards developing a long-term communication strategy for Turkey in the EU accession process. Deputy Prime Minister Hayati Yazıcı and TUSIAD chairperson Arzuhan Doğan Yalçındağ delivered the opening speeches of the meeting held in Istanbul on March 5.

 

• All construction work and final tests of Turkey's new generation communication satellite Turksat 3A have been completed and the satellite was transferred to the launch site in South America. The satellite is planned to be launched in April or May. Turkish Transportation Ministry officials said that the satellite was masterminded in Alcatel facilities in France and all construction work were now finished. Following final tests, the satellite was transferred to launch site in French Guiana, officials said. Turkey signed an agreement with French Alcatel Alenia Space in 2006 for the construction and in-orbit delivery of new powerful telecommunication satellite – Turksat 3A, which would replace the old one, Turksat 1C. Turksat 3A will stay in orbit for 20 years and enable the Turksat TV operator to offer telecommunication services as well as direct TV broadcasting over Turkey, Europe and Central Asia.

 

• Preparations are almost completed to construct the Baku-Tbilisi-Kars railway, said the Azerbaijani Transportation Ministry. The railway line will significantly boost transportation and trade between Turkey and Azerbaijan. The ministry added that construction of the railway will start at the end of March or beginning of April.

 

• Efforts are underway to boost commercial relations between Turkey and Syria, said Wadah Outry, deputy chairman of the Turkish-Syrian Businessmen Council. Visiting the Association of Turkish-Arab Businessmen (TURAB) in the Mediterranean province of Mersin on March 6, Outry said a Turkish-Syrian Economic Forum would take place in Damascus on April 26-27. Many Turkish businessmen should attend the forum, Outry stated. The forum will focus on cooperation possibilities, direct investments and other matters, he added. TURAB Chairman Doğan Narin said relations between the two countries have been improving gradually.

 

• International ABN-AMRO bank thinks macro-economic figures will be better in Turkey in 2009, but the year-end inflation will be around 7.5 percent in 2008. According to a report of the Netherlands-based bank, Turkey's inflation will be up this year, but will drop next year. The bank forecast Turkey's year-end Gross Domestic Product (GDP) growth around 4.5 percent in 2008. It also said public debts will be around 54.8 percent of the GDP and current (accounts) deficit will be 8.5 percent of the domestic product. The Netherlands-based bank forecast the year-end$around 1.35 new Turkish liras (YTL) and Euro around 1.82 YTL.

 

• The central Anatolian province of Konya benefited the most from EU grants. According to the Central Finance and Tenders Department of the Prime Ministry, the department signed a total of 1,948 donation agreements amounting to 232 million euros up to now. Among the cities receiving EU grants, Konya ranked first with 16.3 million euros, officials said. Eastern province of Van followed Konya with 16.2 million euros, sources added. Officials said that central Anatolian province of Aksaray, southern province of Kilis and northwestern provinces of Bilecik, Canakkale and Tekirdag have not received any EU grants so far.

 

• According to the new computation method of national income, gross national product amounted to 758 billion YTL in 2006, Ömer Demir, chairman of the Turkish Board of Statistics (TUIK), said. Demir held a press conference in Ankara and said GNP which was earlier calculated 576 billion YTL for 2006 has increased 31.6 percent to 758 billion YTL, according to updated data. National income per capita will probably amount to $7,500 for 2006, Demir said. The figure was $5,480, according to the previous calculations.

 

• Finance Minister Kemal Unakıtan was given the Finance Minister of the Year 2007 in Europe award by The Banker magazine, in London on March 7. Speaking at the ceremony, Unakıtan said the current Turkish government that came to power after 2000-2001 crisis, completed many reforms, restored financial discipline and ensured progress. "The Justice and Development Party (AKP) government will pursue the same policies and will not make concession on financial discipline," he remarked. Unakıtan said structural reforms would continue in Turkey, harmonization laws with the EU would be implemented and privatization would go on. Karina Robinson praised Turkey's economic performance, Unakıtan, and the reform process. The Banker Magazine is published by Financial Times group.

 

• Güler Sabancı, the chair of Sabancı Holding, said Turkey has achieved a lot over the past five years in its EU process and there is no reason to think the process has bean derailed. Speaking at a March 5 conference organized by Oxford University, Sabancı said, "If Europe could look 50-60 years ahead, it would be easier for the continent to integrate Turkey. Turkey would help Europe look at the world from a wider perspective." Asked about a declining public support in Turkey for EU membership, Sabancı said this could be attributed to election and security issues dominating Turkey in recent years. "But Turkey must not change its direction," she added. "And Europe will eventually discover the opportunity at the other side of the bridge."

 

• British Chamber of Commerce and Industry (TBCCI) hosted a reception for the new Turkish and British members in London on March 10. Turkish Ambassador in London Yiğit Alpogan said that commerce and investment relations between Turkey and Britain are developing each day, adding that TBCCI has an important part in this development. He stressed that British companies and businessmen who enter Turkish market through privatization projects also strengthened the relations. He added that the investments of British businessmen in Turkey increased. TBCCI Chairman Remzi Gür said that they aim to serve investments and activities of Turkish and British businessmen.

 

• Foreign Economic Relations Board (DEIK) announced on March 10 that it started proceedings to establish a Turkish-Kosovar business council. A press release issued from DEIK invited companies which have economic ties with Kosovo to apply to DEIK for the foundation of the business council. DEIK said Turkey was Kosovo's third largest trade partner and Turkish exports to Kosovo amounted to $120 million in 2007. Kosovar market, with an average cost of 220 euros for labor, can be a new strategic base for Turkish investments, said the press release. It said, "Kosovo, with its growing construction sector, its proximity to the EU, and its young work force, can present alluring business opportunities to investors who target the EU zone and southeast of Europe."

 

• Turkey's Atakas Group and Russia's largest iron and steel maker MMK (Magnitogorsk Iron & Steel Works) will jointly set up a factory in Dörtyol, Hatay. Atakas and MMK organized a groundbreaking ceremony on March 15 in Dörtyol. The factory will be the largest investment in Turkey's iron and steel industry at one time. The new factory will specialize in the production and processing of hot and cold-rolled sheet as well as galvanized and color-coated rolled steel products. MMK ranked 20th among the world's largest steel producers with $6.4 billion of net revenue in 2006.

 

• The Independent Industrialists' and Businessmen's Association of Turkey (MUSIAD) inaugurated an office in London on March 11. Baroness Udin and Lord Alf hosted a luncheon at the House of Lords on occasion of the inauguration. Turkey's Ambassador to Britain Yigit Alpogan; MUSIAD Chairman Ömer Bolat; Remzi Gür, the founder chairman of the MUSIAD office in London; and Hakan Camuz, the head of the new opened office, attended the luncheon. Udin said she believes Turkey will become an EU member in possible shortest time, and they are supporting Turkey's bid as much as they can; whereas Lord Alf said Turkey's membership will contribute to Europe as much as it does to Turkey. During the inauguration ceremony, Bolat said the Turkish-British trade volume is over $15 billion. "Britain is the only western country Turkey has a foreign trade surplus with," he added.

 

• Polish-Turkish Chamber of Commerce Deputy Chairman Grzegorz Kobylecki arrived in central Anatolian province of Yozgat to examine investment potential of the city. Kobylecki held a series of meetings with officials and was briefed on greenhouses on March 6. Yozgat Chamber of Commerce and Industry Chairman Şenol Tastan said every kind of investment can be made in organized industrial zone in Yozgat, and the city is as part of government's incentive program thus it offers many advantages. Michal Mierzwa, the Trade and Investment Promotion Undersecretary of the Polish Embassy in Ankara, called on Turkish businessmen to invest in his country. Mierzwa held talks with Metin Buyuk, chairman of the Duzce Chamber of Commerce and Industry, and several businessmen in the Black Sea province of Düzce on March 11. During the talks, Mierzwa said Poland supports Turkey's EU bid. Making a presentation during the meeting, Mierzwa briefed the businessmen on the commercial potential of Poland as well as investment opportunities and incentive conditions in the country.

 

• At the seventh Turkish-Iranian Business Council meeting in Tehran on March 11, Rifat Hisarcıklıoğlu, chairman of the Turkish Union of Chambers and Commodities Exchanges (TOBB), said economic relations between Turkey and Iran move very slowly and urged more joint projects. "I am speaking on behalf of 1.3 million Turkish businessmen. We have to admit that we make very little progress in bilateral economic relations," added Hisarcıklıoğlu, who is also the chairman of the Turkish Foreign Economic Relations Board (DEIK). "The level of bilateral economic relations between Turkey and Iran is far behind the capacity of the two neighboring countries," he stated. Hisarcıklıoğlu said Iran is expected to become the 16th biggest economy in the world by the year 2025, saying that Iran and Turkey have to take immediate steps to improve economic relations for further success in economy. Saying that trade volume between the two countries reached $8 billion last year, Hisarcıklıoğlu said, "Unfortunately, it was not a healthy growth because there is a significant imbalance. Iran's exports to Turkey are five times larger than Turkey's to Iran. Turkish businessmen expect support to equalize that imbalance." Mohammed Nahavandian, the head of the Iranian Chamber of Commerce, Industries and Mines, said Iran wants Turkish investors to make use of opportunities in its territories. "We have laid required groundwork for foreign investors to undertake projects in Iran," he added. The TOBB chairman earlier met with Iranian Minister of Roads and Transportation Mohammad Rahmati. Hisarcıklıoğlu returned to Turkey on March 11.

 

• Turkish International Cooperation Agency (TIKA) granted equipment to a hospital in Uzbekistan. The grant includes beds, cupboards, television and satellite antennae. TIKA Deputy Chairman Mustafa Sahin, speaking at the ceremony, stated that Turkey carried out many projects in Uzbekistan since this country acquired its independence. He said this project was a follow-up of other projects as part of Year of Social Protection, declared in 2007.

 

• The Council of Europe (COE) Congress of Local and Regional Authorities took place in Malaga, Spain on March 13-14. Local and regional policies on climate change, sustainable consumption, urban biodiversity policies and public services in rural areas were the main topics on the agenda of the Congress' Spring Session. Other topics were: local and regional democracy in Spain and Turkey; inter-regional cooperation in the Black Sea Basin; granting observer status to Kosovo. Interior Ministry Deputy Undersecretary Zekeriya Sarbak attended the session.

 

• Turkish government plans to invest up to $12 billion in southeastern Anatolia to create job opportunities and keep young people away from illegal actions, The New York Times quoted Prime Minister Recep Tayyip Erdoğan as saying. In an interview, Erdoğan said his government would also dedicate a state television channel to broadcasting in Kurdish. The new channel will also include Persian and Arabic and will be running within several months, Erdoğan stated. "This will be the most important step providing cultural rights to the region," he said. The daily quoted Erdoğan as saying that Turkey will spend $11-$12 billion over a five-year period to build two large dams and a system of water canals, complete paved roads and remove landmines from fields along the Syrian border. Erdoğan said, "The fight against terrorism is not only this (military measures). It also has a socioeconomic part, a psychological part, a cultural part."

 

• At a conference on the Turkish economy and foreign trade in the northern province of Trabzon on March 12, Oğuz Satıcı, chairman of the Turkish Exporters' Assembly (TIM), said Turkey will reach its target to earn $500 billion from its exports in 2023 if it does not take any irrational step that will harm itself within the following 15 years. "Turkey is actually one of 15 countries that has an export figure over $100 billion," he added. Satıcı said Turkey's year-end export target is $120-125 billion.

 

• State Ministers Mehmet Simşek, and Nazım Ekren as well as Finance Minister Kemal Unakıtan held a joint press conference in Ankara on March 12 to evaluate recent situation of Turkey’s economy. Speaking to reporters, Ekren said the rise in gross domestic product in Turkey will encourage international investors' outlook on Turkey. Ekren said that, after calculations have been updated, Turkey's gross domestic product showed an increase and the proportion of constant capital investments to national income also went up. "Turkey's budget deficit declined in proportion to its national income. There is no problem with the budget deficit as part of the Maastricht criteria," Ekren said. "Turkey has been successful in improving its credit rating by fulfilling five of the seven requirements," Ekren also said. State Minister Şimşek said for his part that Turkey is one of the countries which recorded utmost progress as regards competitiveness. Şimşek also said that reforms in the energy sector continue and social security reform is under way. Also speaking at the same press conference, Unakıtan vowed to continue structural reforms, fiscal discipline and privatization projects. We do not think of imposing new taxes, but we think of increasing the number of tax payers, added the finance minister. the Turkish Finance Ministry said that February saw a budget surplus of 1.2 million new Turkish liras (YTL). It was the first surplus in this month in 20 years.

 

• The fifth term meeting of the Turkish-Macedonian Joint Economic Committee (JEC) took place in Ankara on March 13. State Minister Nimet Çubukçu and Macedonian State Minister Adnan Adnan Kahil attended the meeting. Speaking in the meeting, Çubukçu said trade volume between the two countries amounted to $327 million in 2007 and the figure is expected to reach $1 billion within next three years. Turkish investments in this country would amount to $130 million, she stated. Projects in the areas of telecommunication, energy and natural gas in Macedonia are important opportunities for Turkish companies, Çubukçu said. Kahil invited Turkish businessmen to his country and said Turkish and Macedonian companies could cooperate in several areas such as energy and organic agriculture. Turkey and Macedonia signed a memorandum of understanding to improve economic and commercial relations. Çubukçu hosted dinner in honor of Kahil. Energy and Natural Resources Minister Hilmi Güler met with Kahil in Ankara on March 13. Following the meeting, Güler told reporters that they exchanged views about mining and energy projects. Saying that Macedonia is a rich country for mining, Güler said that Macedonia, like Turkey, is located on energy transport lines and in a strategic location. Güler said, "We agreed with Kahil to pursue joint projects. Besides projects on electricity energy and natural gas pipelines, we will also make joint activities on mining sector. Joint teams will be set up. We will exchange views and share our experiences." State Minister Kürşad Tüzmen offered Kahil to cut tax rates to 6 percent in order to attract foreign investments. Kahil said they have to set the necessary infrastructure first in Macedonia to attract foreign investment, stating that Macedonian government reduced taxes to around 10 percent and plan to abate VAT rates to 10 percent as well. Tüzmen offered him to reduce taxes more, to 6 percent for 10 or 20 years. Tüzmen also said political relations between Turkey and Macedonia are very good, adding that they want to improve economic relations too. Over 100 Turkish firms have invested almost $130 million in Macedonia, and 65 Macedonian companies are running business in Turkey, Tüzmen said. "We can collaborate in transportation, tourism and other areas," Tüzmen added. The trade volume between Turkey and Macedonia is around $350 million, and the two countries aim to increase it to $1 billion.

 

• Energy Minister Hilmi Güler met with a group of German businessmen over luncheon at the German Embassy in Ankara on March 13. Güler said he discussed with German businessmen a number issues such as renewable energy, energy efficiency, privatizations, new investments and research and development projects. Güler stated that the planned construction of a nuclear power plant in Turkey did not come up during the meeting.

 

• NRW.INVEST, a company that helps Turkish entrepreneurs in North Rhine Westphalia state of Germany, inaugurated a representation in Istanbul on March 12. This makes North Rhine Westphalia the first German federal state to have its own representation in Istanbul. "There are 24,000 companies run by Turks in our state, and 13,000 of them are situated in Ruhr region which we define as the coal region," Christa Thoben, the state's economics minister, said during a reception hosted at the German Consulate General in Istanbul.

 

• Speaking to Mersin First International Businesswomen's Forum on March 13, State Minister Kürşad Tüzmen said that the ratio of women employers to the total number of employers in Turkey is 6.1 percent, which is a very low figure. He said that the ratio of women entrepreneurs who set up business on their own is 13.8 percent, adding that this figure is very low. Tüzmen also said, "Mersin – with its trade volume of $15-16 billion and its private port – has a bright future and its trade volume will soon reach $20 billion."

 

• Turkey and Iraq plan to complete feasibility work of a natural gas pipeline project in the possible shortest time. Officials of the two countries earlier signed the frame agreements for the construction of a natural gas pipeline between Turkey and Iraq. After feasibility studies are completed, the route of the pipeline, how much it will cost, annual amount of natural gas flow and other technical matters will become clear. The project aims to increase natural gas fields in Iraq and bring natural gas from this country to Turkey. A consortium formed by TPAO, Tekfen and BOTAŞ are carrying out the project. Around 10 billion cubic meters of natural gas obtained from five areas in Iraq will be sent to Turkey p.a. A terminal will be constructed in Yumurtalık town of Turkey, and a great deal of the gas will be shipped to world markets.

 

• Faruk Şen, head of the Turkey Research Center Foundation, said the number of entrepreneurs with Turkish background has reached 102,000 in European Union member states. "By the year 2020, the number of entrepreneurs with Turkish background in the EU will go up to 190,000," Şen said. Presently, 102,000 Turkish entrepreneurs are providing jobs to 470,000 people, Dr. Şen said. According to Şen, 5,200,000 Turks are living in the EU. "Out of this amount, 2,700,000 Turks are living in Germany," Şen added. 68 percent of all Turkish entrepreneurs in the EU live in Germany, Şen remarked. Turkish entrepreneurs in Germany earned revenues totaling 32 billion euros in 2007, Şen also said.

 

• Officials from the United Nations, European Union as well as Turkey gathered in a meeting on sustainable development in Ankara on March 18 organized by Turkey’s State Planning Organization (DPT), the United Nations Development Program (UNDP) and the European Union. Speaking at the meeting, UNDP Representative Mahmud Ayoub said sustainable development was common future and decision. "The concept is development but it is defined as 'meeting today's needs of development without compromising future generations' ability to develop'," Ayoub said. "We are very grateful for the DPT as it has extended huge support for our project. We need to include principles of sustainable development in the integration of regional development strategies. This is an effort worth trying, this is a common future, a common decision," Ayoub said.

 

• State Minister Mehmet Şimşek arrived in New York on March 17 to take the floor at Turkey After 2008 conference. The conference organized by the Turkish-American Business Council operating under the umbrella of the Foreign Economic Relations Board of Turkey (DEIK) started in New York on March 17. Turkish Union of Chambers and Commodities Exchanges (TOBB) head Rifat Hisarcıklıoğlu, Central Bank Governor Durmuş Yılmaz and Turkish-American Business Council Chairman Ferit Şahenk also took the floor at the conference in New York. Speaking to Turkish journalists after the conference, Şimşek said that the conference is one of the most important platforms for Turkey's integration with global economy. Saying that Turkey's growth potential is very high, Şimşek said that they will fulfill what is necessary to reach that potential in the aspect of reforms. Speaking at the conference, Central Bank Governor Yılmaz said that after the financial crisis in Turkey in 2001, Central Bank was made independent which was an important step. Yılmaz said that CB attaches importance to price stability as well as fiscal stability. Saying that Turkish economy has been growing since 2002, Yılmaz said that with 7 percent growth rate (annual average) Turkey is one of the fastest growing economies in the world. Turkish-American Business Council (TAIK) Chairman Ferit Şahenk and Turkish Union of Chambers and Commodities Exchanges (TOBB) head Rifat Hisarcıklıoğlu took the floor at the conference. Turkey became an energy corridor and the energy sector is one of major components of a sound economic growth, he said. Hisarcıklıoğlu invited foreign companies to invest in Turkey, a country of opportunities. State Minister Şimşek met international entrepreneurs and business circles in New York on March 18. Şimşek proceeded to Boston on March 19 and spoke to the Harvard University Kennedy School on recent developments in Turkish and world economy. Şimşek met with IMF Managing Director Dominique Strauss-Kahn in Washington on March 20. Şimşek delivered a speech at Georgetown University on the Turkish economy. Şimşek returned to Turkey on March 21.

 

• There are 26 projects that will be implemented as part of Turkey-Syria Interregional Cooperation Program, (southern province) Kilis Governor Nevzat Turhan said on March 19. The program would boost economic, commercial, cultural and scientific relations between Turkey and Syria. "It includes several projects by means of cooperation among Gaziantep, Kilis and Aleppo. Infrastructure projects have been prepared and they will be implemented. Öncüpınar Border Crossing will also be modernized," Turhan said. Turhan and Aleppo Deputy Governor Abdelkader Jazmati Bin Assaad chaired meetings between delegations of the two countries.

 

• State Minister Kürşad Tüzmen and a Turkish business delegation traveled to India on March 17. Over 100 businessmen, most contractors, and Tüzmen held talks in New Delhi and Mumbai in India which is seen as the most important country for Turkey to open up to Asia-Pacific trade. Tüzmen met with Indian Commerce and Industry Minister Kamal Nath, State Minister for Industry Ashwani Kumar, Minister of Road Transport, Shipping and Highways T.R. Baalu and State Minister for Urban Employment and Poverty Alleviation Kumari Selja. After his meeting with Nath, Tüzmen said although India's total volume of trade was $400 billion and Turkey's volume of trade was $280 billion, the trade volume between the two countries was only $2.5 billion. Tüzmen said a free trade agreement to be signed with India was the most appropriate step to be taken in order to foster trade relations between Turkey and India. He recalled that Turkey communicated its proposal in this matter to the Indian government. Nath confirmed that India was planning an investment of $500 billion in infrastructure and highway sector and said, "We know Turkey's experience in construction sector. Turkey has a high chance in this sector." Tüzmen also had meetings with Indian businessmen eager to do business in Turkey, as well as leading names of Indian media. Trade volume between Turkey and India was $2.6 billion last year. Turkey imported $2.3 billion of goods and services from India. Tüzmen met with T.R. Baalu, minister of shipping, road transport and highways, on March 19. Tüzmen held talks with Indian authorities on March 20 to help the Turkish construction firms. Tüzmen wanted Indian businessmen to put pressure on political will for a free trade agreement between Turkey and India as soon as possible. Speaking at the Turkish-Indian Business Forum in Mumbai on March 21, Tüzmen said thanks to "surrounding countries strategy" in export, the share of neighboring countries in Turkey's export figure rose from three percent to 34 percent. They need something to speed up economic relations between Turkey and India, and a free trade agreement is the formula, Tüzmen said. Tüzmen said if free trade agrement is signed between Turkey and India, trade volume will rise from $2.6 billion to $10 billion in a short time. Sushil Jiwarajka, chairman of the western region council of Federation of Indian Chambers of Commerce and Industry (FICCI), said India envisages making $1 trillion in investments within the next 10 years. He added that India's investments in foreign countries increased, and there is a big potential for mutual investments. Tüzmen and his delegation left India on March 22.

 

• Europe's 500 leading real estate investors have selected Russian capital of Moscow and Turkish metropolis of Istanbul as the most suitable cities for real estate and contracting business investments. According to a research conducted by PricewaterhouseCoopers and Urban Land Institute, Istanbul, which was at the 11th place in the 2007 Emerging Trends in Real Estate in Europe list, was ranked second this year. German cities of Hamburg and Munich followed Istanbul in the ranking. Meanwhile Moscow, which ranked 19th in 2007, was selected the most suitable city for real estate investments in 2008.

 

• Transportation Minister Binali Yıldırım met with his Bulgarian counterpart Peter Moutafchiev in the northwestern province of Edirne on March 19. The two officials and their delegations met with for about 45 minutes in a closed-door meeting. Speaking to reporters following his meeting with Moutafchiev, Yıldırım said that increasing commercial relations between Turkey and Bulgaria brings modernization in transportation. "Relations between Turkey and Bulgaria are developing rapidly. The growth in commercial relations implies a growth in transportation. My Bulgarian counterpart and I discussed the modernization of border gates, decreasing problems in international transportation and improvements to be made in transportation. We were glad to learn that, just as Turkey, Bulgaria is working on constructing new railways and highways," Yıldırım said. "We are pleased with Bulgaria's sharing of its EU experiences with Turkey," Yıldırım also said. Moutafchiev said that Yıldırım and he are good friends. "As two friends, we will work for the two countries with all our force. I told on new Bulgarian highways to Yıldırım. We exchanged views on the expected increase in transportation during the summer," Moutafchiev remarked.

 

• The trade volume between Turkey and the European Union rose 8.5 percent last year to reach 99.5 billion euros. According to EU's Eurostat, imports from EU to Turkey rose 5 percent in 2007 and reached 52.6 billion euros while Turkey's exports to the EU rose 12 percent in 2007 and reached 46.9 billion euros. Turkey succeeded in bringing down its trade deficit with the EU to 5.7 billion euros in 2007 from 8.3 billion euros in 2006. Turkey was EU's fifth biggest market with imports worth 52.6 billion euros in 2007. Turkey ranked seventh in the world with its exports to the EU in 2007.

 

• The 14th Marble International Natural Stone and Technology Fair on March 26-29 welcomed nearly 1,100 firms from 38 countries. IZFAS head Dogan İşleyen told reporters that Marble is the second most important natural stone fair of the world behind Verona, Italy. İşleyen said companies' interest in Marble fair is very high, and they could not respond to participation demands of nearly 300 companies. He said that Marble has become the biggest export fair of Turkey. We are expecting visitors from 80 countries, he added. İşleyen said Marble fair will contribute $75 million to the economy of Izmir this year. A total of 38 companies had attended last year's Marble fair which attracted 50,000 visitors.

 

• Ethiopian Ambassador in Ankara Mulat Teshome called on Turkish businessmen to invest in his country. Speaking at a visit to Mersin Chamber of Trade and Industry

 

(MTSO) Assembly Chairman Ibrahim Kiper on March 21, Teshome recalled that Ethiopia was one of the first African countries establishing diplomatic relations with Turkey. Teshome underlined that Ethiopia was an agriculture country, indicating that his country produced wheat, corn, bean, pea, and soybean. MTSO Acting Chairman Faik Burakgazi said Ethiopia, with its 71 million people population, was the third biggest country in Africa. Emphasizing that Ethiopian economy recorded success in recent years, Burakgazi said Ethiopia was an important market for the Turkish businessmen.

 

• TEB Sh.A. Bankası, a branch of Turk Ekonomi Bankası (TEB), was officially inaugurated in Pristina, Kosovo on March 21. In a speech at the inauguration, TEB Managing Director Varol Civil said his bank was pleased to contribute to the economic development and improvement of Kosovo, the youngest republic in Europe. Civil said TEB would combine its knowledge and experience in the banking sector with the international power and network of its French partner BNP Paribas in an effort to support Kosovo's development. TEB's French partners attended the inaugural ceremony as well. After the inauguration, a reception was held. Mustafa Sarnic, chairman of the Turkey's coordination office in Pristina, Turkish military officials and police officers commissioned in Kosovo, Prince Leka of Albania (Leka II Zogu), as well as Kosovan and Turkish businessmen attended the reception.

 

• Forty-seven TV channels in 200 countries around the world broadcast live events about Turkey. TV channels including BBC World, N24, Al Jazeera and several other media organs air economic, cultural, tourist and sportive events in Turkey every day in 11 languages as part of a joint project between the Culture and Tourism Ministry and Earth Television Network, and 2.1 billion people are watching these programs. This promotion is equal to $1 billion, Tuncay Bilgin, the Earth TV representative in Turkey, said. Bilgin said live images and information about Istanbul, Antalya and Izmir – which are important for Turkey and Turkey's tourism, are provided on TV channels.

 

• Rifat Hisarcıklıoğlu, chairman of the Turkish Union of Chambers and Commodities Exchanges (TOBB), said the Mediterranean Business Partneria will benefit Turkish producers and small- and medium-size businesses (SMEs). The Mediterranean Business Partneria is described by experts as a great opportunity for companies that wish to expand their markets and find business partners in the fast growing economic power, Turkey. Antalya, a center of trade for centuries and the current heart of tourism in Turkey, will be the host of the Mediterranean Business Partneria on May 15-16. The Mediterranean Business Partneria aims to be one of the biggest match making events for national and international companies from Turkey and abroad.

 

• Turkish exports to neighboring regional countries rose by 35.5 percent in 2007 to reach $40.5 billion, according to the Foreign Trade Undersecretariat. Exports to the seven neighboring countries grew 28.5 percent to reach $11.1 billion, with Iraq getting biggest share with $2.8 billion. Exports to 45 regional countries rose to $29.4 billion to mark an increase of 38.4 percent and Russia was the biggest buyer of

 

Turkish goods in 2007. exports also made a promising start in 2008, increasing by 39.9 percent in January over to the same period of the previous year. The total amount for January 2008 was $945.7 million.

 

• A report by the International Investors' Association (YASED) said that Turkey could expect a foreign investment inflow of $15-20 billion in 2008 and in the following years. YASED recently released a report on the latest developments regarding foreign direct investments in the world and Turkey. According to the report, the total amount of foreign direct investments in the world raised up to $1.5 trillion in 2007. Foreign direct investments in Turkey increased continuously thanks to the political and macroeconomic stability, the reform process and improvement of investment environment in the country, the report said. The report also stated that the Netherlands ranked first in Turkey's foreign direct investment influx list for 2007.

 

• Iraqi Trade Minister Abd al-Falah Hasan al-Sudani called on Turkish entrepreneurs to invest in his country. "I am inviting Turkish companies to Iraq. The first comers will be the first winners," al-Sudani said. Al-Sudani said that trade volume between the two countries had exceeded $8 billion, saying "any other country in the region cannot get close to even half of that figure." The Iraqi official also said his country was willing to further develop economic relations in fields other than trade. Al-Sudani said there was a need to open more border gates between Turkey and Iraq to boost trade ties. Al-Sudani also said an Iraqi fair opened in the southeastern province of Gaziantep was the "Iraq's window opening to the outside world."

 

• Tian Deli, China's Tianjin Free Zone Deputy Director General, said they want to make joint investments with Turkish businessmen in mining and furniture sectors. Representatives of 12 companies which operate in Tianjin Free Zone on furniture and mining sectors visited Aegean Free Zone and Izmir Chamber of Commerce (IZTO) on March 26. Deli said they aim to cooperate with Turkish officials in Izmir. Chinese economy is developing very rapidly, Deli said and said that they want to invest in different countries. Deli said Izmir Chamber of Commerce and Tianjin Chamber of Commerce can cooperate. Deli said that they can also launch initiatives to make joint production and sell products in Europe.

 

• George Kassimatis, chairman of the Greek Central Union of Chambers of Commerce (KEEE), said tourism carries an important role in developing regional cooperation. Speaking at the beginning of the First General Assembly meeting of Association of Balkan Chambers (ABC) in İstanbul on March 26, Kassimatis said: "Tourism will carry the Balkans to the leadership not only in Europe but the whole globe. In order for tourism to develop, we must fulfill certain requirements. We must be more open to each other and ready to work together. We must look at our region as a single social cultural zone.” Rifat Hisarcıklıoğlu, chairman of the Turkish Union of Chambers and Commodities Exchanges (TOBB), said in line with integration into the European Union, it is up to the businessmen to create a strong cooperation platform not only within the Balkans but also the surrounding region. Speaking at the meeeting, Hisarcıklıoğlu said that Turkey attaches special importance to bilateral relations with the Balkan countries as a country that can not be separated from the Balkans based on its economic ties, common history and culture. "Turkey's investments in the Balkans amount to $1.5 billion.

 

• The Independent Industrialists' and Businessmen's Association of Turkey (MUSIAD) will organize its "European General Consultation Meeting" in Rotterdam, the Netherlands between March 28 and 29. A conference "Country of Opportunities: Turkey" will be organized. Chairmen and administrators of MUSIAD representations in Germany, Austria, Britain, France, Greece, Denmark and the Netherlands will attend the meeting in which more than 50 MUSIAD members from Turkey will participate. MUSIAD Chairman Omer Bolat said activities of the past one year, mutual trade and business opportunities would be assessed at the meeting.

    

• Turkish Eximbank signed a loan agreement in London on March 27, worth $250 million. The loan was provided by 22 banks headed by Bank of Tokyo Mitsubishi. It has one-year maturity and its interest rate is eurobor +0.50 percent. This loan is an outcome of the confidence in Turkish economy and Eximbank, Francesco Carrobi, the DG of Bank of Tokyo Mitsubishi, said during the signing ceremony.

 

• Energy and Natural Resources Minister Hilmi Güler said Turkey and the Netherlands can develop joint projects regarding renewable energy resources and energy efficiency. "We will set up a working group to this end," he told reporters after meeting Dutch Minister of Economic Affairs Maria Van Der Hoeven in Ankara on March 27. Güler said he discussed with Hoeven Turkey's position on Nabucco project. "Mrs. Minister has understood our position, and we think she will make significant contributions to speed up the project." The Nabucco pipeline is a planned natural gas pipeline that will carry natural gas from Turkey to Austria, via Bulgaria, Romania, and Hungary. It will run from Erzurum in Turkey to Baumgarten an der March, a major natural gas hub in Austria. Some consider the pipeline as a diversion from the current methods of importing natural gas solely from Russia. The project is backed by the European Union and the United States. Nabucco pipeline may be supplied with gas from Iran, Azerbaijan, Kazakhstan, Turkmenistan, Egypt and Syria. During their meeting, the two ministers signed a memorandum of understanding envisaging joint projects on renewable energy, energy efficiency and biomass. Dutch Minister Hoeven said the Netherlands have interesting studies on biomass and can share them with Turkey.