TURKISH TRADE NEWSLETTER
December 2009 - Issue 8
New Strategic Business Framework between U.S. and Turkey
WASHINGTON DC - US and Turkey decided to upgrade their bilateral economic relations with a new scheme called "Framework for Strategic Economic and Commercial Cooperation" (FSECC), which was unveiled during the visit of Turkish Prime Minister Recep Tayyip Erdogan to the White House. This new framework aims to help enhance the already robust interaction that takes place between the two governments on economic issues.Turkish governmental agencies currently work with American counterparts in the economic arena through the bilateral Trade and Investment Framework Agreement, the Economic Partnership Commission and the Energy Working Group, as well as through numerous ongoing contacts between officials at all levels. The Framework to be implemented will ensure regular coordination and review of these many activities at a senior political level.
This new engagement between US and Turkey on economic matters will give a new momentum to bilateral commercial transactions and mutual investment flows Turkish-American economic ties are robust and have shown a surging trend last few years. However, there is ample room for significant growth in economic engagement between two countries. Turkey is one of the most important emerging markets in world. According to research conducted by Goldman Sachs, Turkish economy will be ninth largest market in the world in 2050. In addition to a market in its own right, Turkey as a regional business hub, offers tremendous opportunity for American companies to penetrate to the growing economies of the Middle East and North Africa, Central Asia and Balkans. The new Framework for economic relations will help business communities in both countries find new ways and means to forge business alliance and execute more business transaction. Under this arrangement, a comprehensive Business Council will be founded in order to help business circles of both countries pursue joint business endeavors.
FSECC will be co-chaired by USTR Representative Ambassador Kirk and Secretary Locke from American side and Deputy Prime Minister Babacan and State Minister Caglayan from Turkish side. This high level interaction on regular basis on economic matters will enable both countries to increase bilateral trade and investment volume.
Aselsan eyes leading global position in unmanned vehicles
December 7, 2009
ANKARA - With the production of unmanned systems one of its core activity areas, Turkey’s major military industry company, Aselsan, is taking firm steps to become a leading unmanned vehicle manufacturer on a global scale.
The company was recently selected as one of the top 10 teams out of 12 competitors in the Multi Autonomous Ground-robotic International Challenge (MAGIC 2010), which is jointly sponsored by the Australian and US departments of defense to attract innovative proposals from worldwide research organizations. The competition’s primary objective is to create a challenge to encourage companies to make efforts to develop next-generation fully autonomous ground vehicle systems that can be deployed effectively in military operations and civilian emergency situations.
As required, Aselsan submitted a proposal regarding the use of multi-vehicle robotic teams that can execute an intelligence, surveillance and reconnaissance mission in a dynamic urban environment.
The selected companies have to complete the assigned tasks most effectively to win the top position in the challenge. The mission is to field teams of unmanned vehicle prototypes with the ability to autonomously coordinate, plan and carry out tasks against changing priorities. Competitors will first “accurately explore and map the challenge area; correctly locate, classify and recognize all simulated threats; and complete all phases within three-and-a-half hours.”
Aselsan’s team “Cappadocia” included experts from Bilkent University, Boğaziçi University, Middle East Technical University (ODTÜ) and Ohio State University in the US.
The Grand Challenge Event, to be held at an undisclosed location in the South Australian city of Adelaide, will take place on Oct. 8-13, 2010. The winning team will receive an award of $750,000.
The other nine teams that have been selected are from the US, Australia, Japan and Canada. Speaking to the Anatolia news agency, Aselsan officials were hopeful that this race will bring many opportunities for the company in the international market, allowing it to participate in numerous projects. They also state that the company is eager to provide the Turkish Armed Forces (TSK) with unmanned vehicles, also known as smart robots.
The officials argue that the significance of unmanned systems is increasing with every passing day, especially in defense and security operations such as conducting exploratory, intelligence and logistics studies without incurring human casualties.
They say unmanned systems are preferable since they can achieve tasks which may be routine, difficult or too risky for humans. Furthermore, these machines will not be prevented from completing the mission by factors that hinder human beings such as fear, hesitation and fatigue. For instance, the officials, who asked to remain anonymous, said the US is planning to replace at least one-third of its army with unmanned units by 2015.
Aselsan experts said the company is these days busy making its unmanned systems able to decide on changing conditions and priorities during missions by utilizing a developed form of artificial intelligence. The company has designed and developed high-tech, strategic defense products and systems to reduce the TSK’s reliance on foreign companies while making Turkey a leader in modern warfare. Aselsan officials said the company will carry out its studies on robots, which they deem will be the primary machines of war in the not-too-distant future.
The company currently has three types of unmanned vehicle. Gezgin is a land vehicle capable of surveillance and defense from a long distance. It resembles a small, wheeled panzer. Kaşif is a balloon designed to explore its surroundings up to many kilometers away. It can, for example, be anchored at a military outpost and continuously monitor its surrounding area, including what lies behind hills and even mountains. Denizci is an unmanned vehicle designed for exploration, monitoring and intelligence in ports and straits.Swedish automotive firm shifts production to Turkey
December 30, 2009
GEBZE - Autoliv, a leading automotive safety systems company based in Sweden, has decided to shift production from its Tunis plant to Kocaeli’s Gebze district.
The move to Gebze, an industrial area close to Istanbul, will bring 50 million euros in additional exports, new employment to 300 people and a capacity to produce 6 million additional seatbelts at its Turkey unit.
Within the framework of its crisis action plan, Autoliv has decided to close its plants in France, Germany and Mexico.
Autoliv has managed the crisis well in Turkey, said Mustafa Alaca, executive director of Autoliv Turkey. “During the crisis, the headquarters wanted to either shift production from Turkey to Tunis or from Tunis to Turkey. Due to our qualified production, customer satisfaction and better expense control amid the crisis, we won the competition over Tunis.”
Emphasizing that the shift in seatbelt production from Tunis to Turkey also came with an additional 4 million euro investment, he said, “We have hired 300 new white collar workers, reaching the level of the pre-crisis period.”
Alacala said the firm has an annual production capacity of 16 million seatbelts but, due to turmoil, it only produced 9 million units this year.
“Besides seatbelts, we also produce airbags and wheels in Turkey. Our turnover, which was 200 million euros in 2008, dropped to 160 million euros due to the crisis. By taking over Tunis’ production, we will surpass 200 million euros in 2010 again. Our goal is to reach exports worth 250 million euros in 2012,” he said.
Autoliv also shifted wheel production from Romania to Turkey. “Our wheel production capacity has reached 1.5 million units,” Alaca said.
Noting that the crisis harshly affected Turkey’s automotive sector during the second half of 2008 and throughout 2009, he said, “There are no expectations for promising developments in 2010. We have buoyed up the automotive sector during the last days of the year.”
Autoliv services the world’s leading automobile manufacturers through 80 subsidiaries and joint ventures in 30 countries.
Turkish Furniture Sector is the booster for economy
December 30, 2009
ISTANBUL - Despite the global downturn, Turkish furniture sector manifests robust growth in 2009. Being a commercial and manufacturing powerhouse in its region, Turkish furniture industry offers tremendous opportunity for prospective investors. Surging appeal to international shows is a vigorous sign of this trend. The sector set its export target for 2010 as 2, 5 billion $. The show held on January 28 February - 01 January, 2009 by Istanbul Trade Fairs with the support of MOSDER (Association of Turkish Furniture Manufacturers) was the center of interest for international buyers. The latest trends of 2009 were on display at the fair which hosted a total number of 74.322 visitors, 7.103 of which were international. This year Istanbul International Furniture Show is expected to overtake previous year's figures in terms of number of participants and exhibitors.
Last year Turkey exported to 170 countries all around the world. Particularly Middle East countries account for increasing share of exports. Last year's attendees were from countries such as Iran, India, Greece, Bulgaria, Dubai, Oman, Morocco, Lebanon, Spain, Israel and Italy. Authorities expect increase in American companies' presence to the fair. Turkey has been a springboard to penetrate into growing markets of Middle East and Central Asia. Companies who have eye on these expanding markets would like to take part in this organization. Along with sales transaction, the show also offers partnership possibilities for potential business inquiries.
IMOB Design Contest Awards were also presented at the show. In the contest where only products exhibited at the show could compete, Milano Mobilya ranked first and was followed by Istikbal and Nills in dining room category. The first three in sitting sets was Saloni, Cascade and Vanessa respectively. Dogtas was both first and third in teenagers groups while Teleset was ranked the second. Cascade was awarded in two categories in bedroom category and Dogtas ranked the second. Zift Dizayn ranked the first in accessories category while Cascade was the second and Alfemo was the third.
Such leading companies of the sector as İstikbal, Bellona, Yataş, Alfemo, Doğtaş, İdaş,İpek, Mirage and Koleksiyon exhibited their latest products at the show.
The product profile of the show included modern, classic, old-fashioned and modular furniture, beds and bedding ensembles, sofas, chairs and armchairs, teenagers and babies rooms.
The visitor profile of the fair included representatives of chain stores, wholesalers, distributors, importers and exporters, architects, interior designers, industrial designers and representatives of furniture stores.
Turkey launched new e-guide to medical tourism and healthcare
December 23, 2009ISTANBUL - Foreign Economic Relations Board of Turkey (DEIK) Healthcare Committee and Accredited Hospitals Association of Turkey (AHAT) jointly announce the launch of the new website www.healthinturkey.org.
The website, to be broadcasted in English for international patients, health professionals, bureaucrats and opinion leaders, is designed to be a crucial source of information for the medical industry.
Supported by Turkey’s leading healthcare facilities, the website will offer an in-depth overview of Turkey’s pioneering Joint Commission International (JCI) accredited hospitals which are in affiliation with internationally respected associations, international insurance and assistant companies, selected health travel agents, accommodations, and essential medical travel information.
The website will provide constant up to date information on the profiles of 12 different accredited hospital and healthcare groups, including outstanding medical specialties and centers of excellence of fully accredited Turkish hospitals; catering to the international patient; and visitor and sightseeing information on Turkey and the region, with maps, illustrations, photos, videos and interactive links showcasing Turkey’s world-class facilities and attractions.
Foreign Economic Relations Board of Turkey (DEIK) Healthcare Committee
Foreign Economic Relations Board of Turkey (DEIK)'s foremost purpose is to pave the way for Turkeys economic, commercial, industrial and financial relations with foreign countries as well as international business communities. DEIK is convinced that in order to achieve this target, prerequisites are increasing industrial cooperation, widening the foreign trade network, and opening the Turkish service sector up to the world economy. The Heathcare Commitee of DEIK established in 2007, works with the bilateral business councils of DEIK in order to facilitate the better recognition of the Turkish medical institutions worldwide.
Accredited Hospitals Association of Turkey (AHAT)
The Accredited Hospitals Association of Turkey (AHAT) was established in January 2008 to coordinate the activities of JCI accredited hospitals throughout Turkey and deliver world-standard healthcare by creating collaboration among hospitals, patients, universities, and related organizations. It also encourages the continuous development of high-quality healthcare services throughout Turkey by promoting the development of new healthcare policies and supporting medical institutions' endeavors to maintain the highest standards of quality and attain international accreditations. Current healthcare facilities which are members of the association include: Acibadem Healthcare Group, Anadolu Medical Center, Bayindir Hospital, Florence Nightingale Hospitals, Güven Hospital, Hisar Intercontinental Hospital, International Hospital, Kent Hospital, Memorial Hospital, Mesa Hospital, Universal Group and Yeditepe University Hospital.
Turkey to be first to overcome crisis in its region
September 27, 2009
ISTANBUL - Turkey’s economy will be able to overcome the global crisis the most rapidly in comparison to other Eastern European economies, according to a recent study by the World Bank Group.
In the study conducted by the World Bank, various data were collected from 1,686 enterprises from six Eastern European countries, including Bulgaria, Hungary, Latvia, Lithuania, Romania and Turkey between June and July.
According to the survey results, Turkey comes at the top of the list, followed by Hungary and Romania respectively, in terms of overcoming the crisis. However, the study notes that the global crisis will show its impacts for a long time on Eastern Europe’s economic growth.
The study presents, for the first time, the magnitude of the “demand crunch” in the region and how companies have reacted. The impacts of the crisis differ among various companies. The differences reveal some important results for recovery in Eastern Europe and Central Asia.
Some 70 percent of the companies in Eastern Europe said the most significant effect of the crisis is the decline in demand, according to the study.
The survey has revealed that serious decline has been seen in the sales of young and innovative companies.
This said, a large number of companies operating in their domestic markets in non-trading sectors have displayed growth. This phenomenon supports the idea that the global crisis will cause structural changes in economies.
Corporate precautions
The companies responded to the crisis by relying on domestic resources to supply their capital needs, by delaying tax payments and by restructuring debts.
Sales will no longer decline while dismissals will continue until the end of December, most Eastern European firms have predicted.
In regards to six Eastern European countries, Turkey has the best prospects, according to the World Bank survey. Permanent employment presented a decline of over 8 percent during the period between December 2007 and June 2009 in Turkey. During the same time, the average capacity usage rate dropped from 65 percent to 51 percent while there was a 22 percent decrease in sales.
Despite the impact of the global crisis, the expectations in Turkey are relatively optimistic, the survey reported. More than 50 percent of the companies expect an increase in sales during the next six months. However, only 14 percent of them plan to contract their employment proportions.
In Bulgaria, the survey indicated the decline in companies’ capacity usage and temporary or permanent employment rates. More than 15 percent of Bulgarian companies plan to cut jobs.
According to the survey, Hungarian companies seem to have been affected minimally by the crisis, at least in comparison to the other firms surveyed.
Latvia, meanwhile, had one of the economies that was hit hardest by the downturn.
Turkey to take part in 118 world trade shows next year
December 25, 2009
TURKEY - Turkey will take part in 118 trade shows in different countries from United States to EU-member states, from Iraq to China in 2010 to boost its economic and commercial ties. In those trade fairs, Turkish firms will display their products including foodstuff, textiles, furniture, automotive, construction equipment and jewelry.
Benefits of Trade Shows
Trade shows are considered as the most important platform where buyers and sellers communicate effectively, thus allowing their respected companies to further research their markets and reach target consumer base. Such trade shows are expected to contribute to efforts in promoting Turkish products within different countries and increase Turkey's exports as a result.
Impact Analysis of International Trade Shows
In order to assess the correlation between the international trade shows and actual increase in exports, the Undersecretariat for Foreign Trade of Turkey has begun to impose an “Impact Analysis” practice, enabling a selective screening to further improve the resource allocation process.
Accordingly, the export performances of companies that attended to international trade shows and received government grants from the trade show support fund are tracked to analyze the tangible outcome of these attendances. With the aforementioned analysis, the Undersecretariat aims to receive valuable input, which will be decisive in composing the preferred international trade shows list for the forthcoming years.
Schneider turns Turkey into an export base
December 23, 2009
TURKEY - The French company Schneider Electric has declared Turkey to be its headquarters in the Middle East and Balkan region, which covers 27 countries.
As a result of this restructuring, the region will be managed by Turhan Turhangil, the firm’s managing director in Turkey.
The success of the Turkey team as well as the country’s position as a developing market in the global economy played a role in the decision, Turhangil said. “We have become an important actor in building the automation market since 2005,” he said. “We entered the switch business in the 2000s and have made rapid progress. Our size in medium- and low-voltage [products] is already obvious. These have been influential as well.”
Noting that Schneider has recently focused on renewable-energy resources, Turhangil added: “We now have references in infrastructure and energy management in both hydroelectric and wind-power plants and solar energy. At present, five wind-power plants in Turkey are being built through Schneider Electric’s solutions.”
The firm offers efficiency savings of 30 percent to energy and infrastructure, industry, residential building automation and data-center markets, which constitute 72 percent of global energy consumption.
A global production base
“Large companies make regional companies their global production bases and focus on certain products. Our Manisa plant will be the production base for medium-voltage products and switches,” Turhangil said, speaking about the firm’s plant on a 720-acre property in the organized industrial zone in the Aegean city of Manisa.
“With the new capacity, we expect our export rate to surpass 50 percent,” he added. “We will further strengthen Turkey’s role as a global production and export base. The products will be exported anywhere in the world, including Europe, North Africa and the United States.”
Turhangil also noted that the firm will be using energy-efficient systems that will allow the plant to consume 30 percent less energy and release 20 percent less carbon into the atmosphere, compared to similar facilities.
The firm has invested 15 million euros in the Manisa plant for the initial stage. Its first division will start operating at the end of the year, and the investment in the plant is expected to increase further in line with its growth rate. The investment for the upcoming three years is expected to total 50 million euros.
Schneider Electric operates in more than 100 companies, offering integrated solutions in building applications, energy and infrastructure, industry, building automation and data-center markets. The firm has a total of 114,000 employees and reaped 18.3 billion euros in revenues last year.
The company has more than 1,000 employees, three production centers and some 200 business partners in Turkey.
Turkish Exports Amount to 101.6 Billion USD in 2009
December 20, 2009
ISTANBUL - State Minister Zafer Caglayan declared that Turkish exports amounted to 101.6 billion USD in 2009. Caglayan told at a news conference on Monday that exports rose 32.2 percent from 7.1 billion USD in December 2008 to 9.5 billion USD in December 2009.
"Some circles argued that the impact of global economic downturn will hold down Turkey’s annual exports at around 80 billion USD in 2009. Nevertheless, our eminent assumptions and trust in the resiliency of Turkish exporters allowed us to surpass the targeted 100 billion USD. As a result of our intensive efforts, Turkey’s annual exports in 2009 were recorded at 101.6 billion USD," he said.
The second Istanbul Fashion Week (IFW) coming up in February
February 3-6, 2010
ISTANBUL - The second Istanbul Fashion Week (IFW) which unites fashion in Turkey under a single roof by bringing the leading fashion designers of our country and ready-wear brands together, will be taking place on 3-6 February...
Istanbul Fashion Week ( IFW), which will be realized for the second time with the cooperation of ITKIB and Fashion Designers Association (MTD) has been introduced at a party which was attended by the leading names in the Turkish textile and fashion sector, as well as Mr. Zafer Çağlayan, the State Minister responsible from Foreign Trade.
The first of the fashion days was realized on August 2009 and was called Istanbul Fashion Days, where 25.000 visitors visited the event in three days, thanks to an immense interest by the local and foreign sector followers.
The event will be held a second time in parallel to the World Fashion Weeks calendar and understanding and will be held in SantralIstanbul on 3-6 February under the name “Istanbul Fashion Week”, like its counterparts in the fashion capitals of the world.
İHKİB President of the Board Hikmet Tanrıverdi made the opening speech, stating that they have started a new era in Turkey on behalf of the sector and that they are very happy that ISTANBUL FASHION WEEK (IFW) accelerated the sector, and emphasizing that the impact IFW 2010 will have on the international platform will be much bigger since Istanbul is the 2010 European Capital of Culture.
MTD President Bahar Korçan took the floor after Tanrıverdi and she pointed out that “IFW, which has been realized due to a necessity for the unity of the Turkish fashion sector, has reinforced designer and industry cooperation” and added that “a major platform has been formed for our brands and designers, for meeting foreign buyer groups.”
On the other hand, Mr. Zafer Çağlayan, State Minister responsible from Foreign Trade said “I AM THE PROTECTOR OF THIS!” and mentioned how proud he was of the success of IFW, which he had been supporting from the beginning and addressed the textile by saying “I am inviting our designers, brands, the whole sector via the press to collaborate.”
ISTANBUL FASHION WEEK (IFW), which has been designed to provide a flow of information to the world on fashion design and to get the attention of the world’s leading fashion press and buyers, will once more unite all the textile and fashion industry.
“Doing Business in Paterson” Seminar
December 20, 2009
NEW JERSEY - Turkish American Chamber of Commerce and Industry (TACCI) and Derya Staffing (also a TACCI member) organized a business seminar with the support of the Office of the Commercial Attache in New York, on 14th December in Paterson, New Jersey. The first seminar organized by TACCI outside New York state, gathered more than 80 Turkish business owners and entrepreneurs, who had the chance to directly ask their questions about the financial aids and the support from the local authorities. The speakers included Yavuz Ozutku (Commercial Attaché Consulate General Republic of Turkey), Sevil Ozisik (President of TACCI), Derya Taskin (President of Derya Staffing), Gary J. Melchiano (Director of Division of Economic Development), James Dykes II (President of Greater Paterson Chamber of Commerce), Jan Northrop (Director, City of Paterson Urban Enterprise Zone), Jose Torres (Mayor of Paterson) and Kate Muldoon - Regional Director (William Paterson University Small Business Development Center).
Istanbul Gold Exchange Luncheon
February 3-6, 2010
NEW YORK - Turkish American Chamber of Commerce (TACCI) organized a business luncheon in honour of the President and the Vice President of Istanbul Gold Exchange, Mr. Osman Sarac and Mr. Yunus Oguzhan Aloglu at the Internationally known Turkish Cuisine "Dervish", located at the Times Square. President of TACCI, Ms. Sevil Ozisik introduced the two gentlemen and made a short speech about the Istanbul Gold Exchange. Then Mr. Osman Sarac greeted the guests and gave a speech about the current rise in the gold prices all over the World, and also introduced the Istanbul Gold Exchange, and talked about their visit to USA. Mr. Ahmet Canli, (Commercial Attaché Consulate General Republic of Turkey) also attended the event and had the chance to talk with the attendees. The attendees also asked questions to Mr. Sarac and Mr. Aloglu. The event gathered around 20 attendees, both Turkish and American, representing different businesses and state offices.