TURKISH TRADE NEWSLETTER

Turkey's increasing influence in the Afro-Eurasian Region was discussed at Lake Forest University

January 7, 2010

CHICAGO - Turkey's increasing economic role in the Afro-Eurasian Region along with Turkish-American economic ties discussed at Lake Forest University's Graduate School of Management during a presentation made by Suleyman Sozeri, the Commercial Attache at the Consulate General of Turkey in Chicago on January 6. The program was part of a Global Business, Global Practicum lecture for Lake Forest MBA students, which was co-organized by Prof. Iwona Bochenska and Associate Dean Erica Wilke.

Turkey's exponentially growing economic leverage in the region, increasing importance in the global energy market as a terminal and hub, and its enhancing economic ties with the U.S were among some of the topics addressed by Mr. Sozeri. Potential business opportunities and partnership possibilities with industry specific emphasis between Turkish and American firms were also discussed.

During his speech, Mr. Sozeri noted, "At the crossroad of continents and trade routes, Turkey has emerged as a manufacturing-power house in the region. With its strategic locations, liberal business climate, well-educated human capital and technological as well as regional expertise, Turkey offers tremendous opportunities for American firms in pursuit of penetrating in lucrative markets of the Afro-Eurasian Region. Turkish and U.S. firms should exert more effort to forge strategic alliances that will mutually benefit both countries in the long run".

He also added, "Turkey reached new altitude in increasing foreign trade volume, which surged to 334 billion dollar in 2008 from 117 billion dollar in 2003. Turkey is one of few countries in the world, which doubled its foreign trade volume over just 6 years. Likewise, bilateral trade between Turkey and the US grew to 15 billion dollars in 2008 from 8 billion dollar in 2004. Yet, this growth rate is much below than that of overall Turkish foreign trade. We have more to do to reveal the real potential of both countries".

Following the presentation was a Q&A session, where Mr. Sozeri answered the questions regarding Turkish economy and business environment. The event concluded with high remarks from the participants stressing that the strategic position of Turkey, serving as a bridge between Europe, Central Asia, North Africa and the Middle East retains tremendous opportunities for U.S. businesses.

Turkey and USA can raise trade three-folds

January 27, 2010

UNITED STATES - The top US diplomat in Turkey said on Tuesday that Turkey and the United States could raise their trade volume by three fold. James Jeffrey, the US Ambassador to Turkey, stressed the importance of ties between the two countries and underlined the need for stronger economic relationship.

The United States is supporting improvement of commercial and economic ties with Turkey, said Jeffrey during a dinner held on the occasion of the sixth anniversary of the establishment of the American Business Forum in Turkey (ABFT).

Jeffrey said two countries need a stronger economic relationship that also includes private sector. Two countries have almost USD 15 billion of trade volume, Jeffrey noted. The ambassador also stressed that this figure could be raised by three-fold in a few years.

The ABFT serves as the American Chamber of Commerce in Turkey and represents approximately 60 prestigious US firms operating in Turkey. Founded with a mission to improve the business and investment environment for US companies in Turkey, ABFT has remained focused on this objective through advocacy and business development initiatives.

Turkish computer industry to flourish through fast-growing markets

TURKEY - Fast-growing markets such as the Middle East and Africa are well-poised to offer increased opportunities for the global computer industry to flourish in the coming years, observers say.

According to sector representatives, players in the global computer industry will find the necessary incentive to expand into these regions as even tougher competition begins to emerge. Most manufacturers have already transferred a significant share of their production to places such as China and Middle Eastern countries, where the cost of labor is relatively cheaper.

According to data on global computer sales in the final quarter of 2009 provided by Gartner, a global research company, the Europe, Middle East and Africa (EMEA) region returned to positive shipment growth for the first time in three quarters. A Gartner report noted that the recovery in sales in the EMEA region was relatively slower than other regions and “this is mainly because it entered the economic downturn later than the US and Asia.” The region is expected to enjoy a faster rejuvenation in computer sales in 2010.

Turkey could leap forward

Turkey, a country squarely in the EMEA region, is likely to enjoy the benefits of an anticipated boost in the computer market in the long run. The country still lags behind others in regards to information technology, which is a driving force behind steady growth in the computer industry. However, it has the potential to leap forward provided that necessary investments are made promptly. Charlotte A. Lamprecht, CEO of Casper, a Turkish computer manufacturing firm, recently said they have set their sights on countries in the Middle East, Africa and the Balkans. The company, which expects to sell 500,000 computers in 2010, is currently developing new strategies to branch out into these promising markets. When looking at the sales activity in the Turkish computer industry in 2009, it is clear that the sector showed weak performance. The domestic computer sector witnessed a decline in sales in 2009 over figures in 2008 due to the adverse impact of the global financial crisis. The competition has particularly intensified in the notebook computer market. Thanks to cut-throat competition, notebook prices declined noticeably. The sector also experienced marked improvement in quality. As regards expectations for 2010, a 16 percent decline is expected in notebook sales while netbook sales are expected to contract by 19 percent compared to 2009. However, desktop sales are expected to rise this year, by 21 percent over 2009.

Mentioning measures that will be taken to improve Turkey’s information technology sector, Toshiba Turkey General Manager Aytaç Biter told Sunday’s Zaman that Turkey should adopt policies to become a center for information technology. “This should be our main target. We need comprehensive projects to increase awareness of computer use,” he said, adding that these projects could be carried out jointly by public and private institutions and related unions. Turkey could then produce its own technology rather than importing technology from abroad. He said universities and companies should be encouraged to develop innovative technology services for the global market. Turkish Informatics Industry Association (TÜBISAD) Chairman Turgut Gürsoy also told Sunday’s Zaman that Turkey has the potential to be a leader in regard to information technology services in its region, expanding from the Balkans to the Middle East.

According to Biter, the computer market will likely see an even tougher competition atmosphere in 2010. “The companies have opted to decrease their prices in order to weather the storm. Many increased production at the same time,” he said. Biter argued that the information technology industry has a unique potential to provide high productivity with relatively fewer resources and reliance on the labor force. “There is no need to be pessimistic about the future of the computer sector in Turkey, given that the necessary investments have been made.” Tax incentives provided a stimulus for the market in 2009. In the April-June period, desktop and notebook computer sales in Turkey were up 55 percent over the same months of 2008 thanks to government-granted tax incentives. The Toshiba manager acknowledged, however, that the sector was still addressing the repercussions of the global financial crisis.

Istanbul chosen as the Best International Business City of 2009

January 21, 2010

NEW YORK - Leading US travel and lifestyle publication Global Traveler recently announced the results of its annual awards survey, which has represented the success in the travel industry for the sixth consecutive year. According to the survey conducted between January and August of 2009 with a response rate of 25,000 people, Istanbul was chosen as the Best International Business City of 2009. Global Traveler polled its largely business and executive readers, who average 32 round-trip flights a year, and found that Istanbul remains a favorite amongst the business community. Istanbul took the first place in the 10 Best International Business Cities of 2009, surpassing other major cities such as Rome, Sydney and Paris.

Global Traveler's Award Ceremony was held at New York Andaz Hotel located on Wall Street. The event brought travel industry executives from the best of business and luxury travel sectors such as world's top airlines, airports and hotels together. New York Cultural Attache Nihan Bekar, Attache Tolunay Yilmaz and Turkish Airlines representatives were also among the attendees. Nihan Bekar received the award for Istanbul as the Best International Business City of 2009 from the Oscar nominated actor Howard Terrance.

The lively and historical Istanbul's vastly growing population and blending cultures make it one of the most dynamic and attractive cities in the world. Apart from being the largest city, Istanbul has always been the center of Turkish economy because of its location as a junction of international land and sea trade routes. As one of the world's fastest growing economies and Turkey's financial capital, Istanbul has also become a large center for business and business travelers. There are thousands of hotels and other tourist-oriented industries in the city, catering to both vacationers and visiting professionals. Istanbul is also one of the world's major conference destinations and is an increasingly popular choice for the world's leading international associations. Apart from Istanbul's vast historical and cultural heritage acknowledged by the whole world, the city is quite assertive with its world-class hotels, fair, congress and meetings halls, its international airport with a passenger capacity of 20 million annually and other transportation opportunities.

Turkish airport passenger numbers rise in 2009

January 12, 2010

ISTANBUL - Passenger transit at Turkish airports rose at a rate of 7.3 percent last year, led by a significant increase at Sabiha Gökçen airport on the Asian side of Istanbul, the state airports authority said. Passengers increased to 85.2 million in this period, and at a faster pace than in the previous 11 months, the authority said on its Web site on Tuesday.

Traffic at Istanbul’s Atatürk Airport, operated by TAV Havalimanlari, increased 4.2 percent to 29.8 million passengers in 2009, the authority said.

Passengers at Sabiha Gökçen, run by Limak Holding, GMR Infrastructure of India and Malaysia Airports Holdings, jumped 48 percent to 6.3 million last year, becoming Turkey’s third-largest airport in passenger volume, Bloomberg reported.

The passenger traffic at the airport in the tourist city of Antalya, operated by Fraport, fell 2.4 percent to 18.3 million.

Meanwhile, Pegasus Airlines announced a new campaign that includes free tickets. The private company said it is giving away free one-way domestic flights to customers who buy a return international flight between Jan. 11 and Feb. 11.

“Pegasus is offering guests a free one-way domestic flight which must be taken before the end of June to those who purchase an international return flight departing Turkey via flypgs.com Web site between Jan. 11 and Feb. 11 and complete their return journey before the end of March,” the company said in a statement. “Those who wish to claim their free domestic flight can do so via the Pegasus call center after completing their return international journey and until the end of June.”