TURKISH TRADE NEWSLETTER
May 2010 - Issue 13
Change of helm at the Turkish Trade Mission in Chicago
June 1, 2010
CHICAGO - A new Commercial Attaché was assigned to the Turkish Trade Mission in Chicago. After serving a three-year term, Mr. Suleyman Sozeri, the very first Commercial Attaché of the Turkish Trade Office in Chicago is now getting ready to hand over his post to his successor, Ms. Sevtap Akguloglu.
Accordingly, Ms. Akguloglu is expected to officially start her term at the office on June 11, 2010, while Mr. Sozeri returns to Ankara to take new responsibilities in the Headquarters. Prior to this assignment, Ms. Akguloglu served in various levels in the Turkish Prime Ministry’s Undersecretariat for Foreign Trade and has extensive knowledge in import/export regulations.
During his three-year term, Mr. Sozeri acted as a pioneer in enhancing the economic relations between Turkey and the Midwest in numerous platforms stressing out the significance of close collaboration among the business communities of the respective regions. While in Chicago, Mr. Sozeri introduced new ways to reach out to public and private entities such as launching a comprehensive web platform to assist Turkish and U.S. companies in their business endeavors, sending our monthly newsletters to provide a snapshot of the latest developments in Turkish-U.S. economic relations and organizing business networking events in collaboration with U.S. business entities. His engagements in U.S. have significantly raised awareness about Turkey in the Midwest region, where Turkish companies and their products are relatively less known compared to the U.S. East and West Coasts.
At a discussion on June 1, 2010, Mr. Sozeri said: “Although future looks promising, the economic activity between Turkey and the Midwest U.S. is far from reflecting its real potential. In order to make the most of this potential, we should work side by side with entrepreneurs and business enterprises in both regions to assist them in their endeavors. Within this context, I believe the involvement of my office is crucial for the long-term interests of Turkish and Midwest economies.”
In his remarks, he also added: “I would like to thank all friends and colleagues, who made my tenure in Chicago a memorable one. Although, I will be returning home soon, part of me will always stay here”.
Minister of Trade Zafer Çağlayan visited U.S. to boost economic relations
May 22, 2010
Minister of Trade of Turkey H.E. Zafer Çağlayan paid a formal visit to the United States from May 18th through the 21st to boost economic and commercial relations. During his visit, Çağlayan initiated the process of establishing an exclusive Turkish-U.S. Business Council, designed to advance the countries’ economic relations. Subsequently, the minister debated ways to draw U.S. investments to Turkey, and raise bilateral trade between two countries, which was around USD 10.8 billion (2009).
On May 19 and 20, Çağlayan met Ron Kirk, the U.S. Trade Representative; Dennis Hightower, Deputy Secretary of Commerce; and other economy executives of the United States. Following were deliberations with think-tank and non-governmental organizations, as well as business professionals in Washington D.C. Minister Çağlayan also delivered speeches at a conference on Turkish-U.S. economic and commercial relations, organized by the Center for International and Strategic Studies (CSIS), and later met with executives from the U.S. Chamber of Commerce.
In his address to the reporters, Minister Çağlayan stated: “This visit has significant importance in that both sides will be showing their commitment to foster commercial ties. Despite a strategic partnership of more than 50 years, trade between the two countries is still below the desired levels. We will conduct meetings to encourage more US investments in Turkey,” The minister also noted that the next meeting would be held in July.
In 2009 Turkish Prime Minister Recep Tayyip Erdoğan's visit to the United States, where he discussed the framework of Turkish-U.S. economic performance and the next course of action, with U.S. president Barack Obama. The debate concluded with both agreeing that in order to achieve the desired level of partnership, the economic and commercial relations between the two countries must be cultivated. Consequently, Turkey appointed Deputy Prime Minister Ali Babacan and State Minister Zafer Çağlayan, in addition to the United States assigning Ron Kirk and Secretary of Commerce Gary Locke as coordinators of the framework.
Turkey is one of the United States' closest allies and is an increasingly important trading partner. Turkey is a rising economic power in its region and its companies are expanding their reach throughout the Middle East, Central Asia and the Caucuses, in addition to developing the country's close economic ties to the European Union. U.S. companies, though concerned with a number of barriers to entry into the Turkish market, are aware of the significant business potential in the country, especially as a gateway to neighboring regions.
Chicago Turkish Festival
May 23-26, 2010
CHICAGO - The eighth Annual Chicago Turkish Festival took place in Daley Plaza on May 23-26, offering visitors the opportunity to experience Turkish culture and heritage in Chicago. This year's Festival once again featured demonstrations of art, film, dance, music, and gourmet food, as well as included daily live performances of Turkish classical and folk music, cultural dances, Whirling Dervishes, and the Ottoman Military Marching Band.
The Festival also hosted a traditional fashion show. Visitors browsed over 50 booths to sample Turkish cuisine and coffee, watch artistic demonstrations, find travel information, and shop for Turkish handcrafted jewelry and souvenirs. Also, there were various booths on the festival ground where visitors had the opportunity to watch, learn, and enjoy live demonstrations of carpet weaving, calligraphy, paper marbling, ceramic art, and shadow theater.
Tens of thousands of visitors enjoyed the festival activities until its adjournment on Wednesday the 26th. This year’s festival received high remarks from the visitors and was broadcasted on a number of US and Turkish channels, introducing Turkey and its culture to more than 10 million American viewers.
“Turkish Contemporary Cuisine” at NRA Show 2010
May 22-25, 2010
CHICAGO – The National Restaurant Association (NRA)’s annual Restaurant &Hotel-Motel Show featured Hande Bozdoğan, founder and manager of Istanbul Culinary Institute in Turkey, at the World Culinary Showcase on May 22. With the joint organization of the Office of the Commercial Attaché at the Consulate General of Turkey in Chicago and Office of Tourism at the Consulate General of Turkey in New York, Ms. Bozdoğan performed cooking demonstrations highlighting contemporary Turkish cuisine.
In addition, four Turkish companies attended the show as exhibitors: Gural Porselen, Keskinoglu, Kutahya Porselen and Smart Juice, all featuring Turkish products.
The NRA Show is the largest single gathering of restaurant, food service, and lodging professionals in North and South America. As the industry's premier business venue, it offers both domestic and international attendees the best opportunities of the year for networking and exploring new trends, as well as industry insight on myriad key issues via seminars and special events.
Turkey launches new privatization tenders in key sectors
TURKEY - A new batch of privatization in key sectors have recently been announced by the Prime Ministry of Turkey’s Privatization Administration (PA), including offerings in Maritime Transportation, Food, Iron and Steel, Petrochemicals, Textiles, Transportation, Energy and Banking. With these late tender announcements, Turkey intends to further its efforts in optimizing the public sector via introducing new business opportunities for prospective investors.
Turkey’s booming economy keeps on attracting investors from all over the World, who are seeking expansion into the emerging markets. With its large domestic market, robust financial institutions and geostrategic location, which allow easy access to a population of over 1.3 billion and a GDP of USD 27 trillion, the country is seen by many as one of the most prominent markets in its region. Despite the current global financial crisis, which has a retarding effect on privatization, in the coming two years the PA envisages many privatization achievements, including the National Lottery; designated highways and bridges including two bridges of Istanbul – Bosphorus Bridge and Fatih Sultan Mehmet Bridge – spanning the Bosphorus strait and thus connecting Europe and Asia; ports; and the sale of remaining assets related to the tobacco product manufacturing business of Tütün, Tütün Mamulleri, Tuz ve Alkol İşletmeleri Anonim Şirketi ("TEKEL"), and Sigara Sanayii İşletmeleri ve Ticareti A.Ş. ("Sigara Sanayi"), an affiliate of TEKEL.
Several national and foreign companies are keeping a close eye on the long-awaited privatization tenders of Turkey's state-owned companies such as the National Lottery Administration with an annual turnover of USD 683 million and a net profit of USD 189 million. As the analysts’ tend to be increasingly more optimistic about the world economy and a dissipating trend is in progress over the current opacity in the world economy, these tenders are expected to be concluded as successfully as the one for Mersin Port, allowing Turkey to achieve its ultimate target of privatization, the establishment of a competitive economic environment, which promotes stability and prosperity not only for Turkey but also for its surrounding and neighboring countries.
Turkey has made remarkable strides in its privatization efforts during the last decade. Accordingly, since 1986, Turkey has generated USD 38,1 billion in income from privatization, and USD 6,3 billion of this accrued in 2008 alone. Turkey, which has recently gained USD 5.1 billion from distribution tenders, is expecting USD 10-15 billion revenue from the production privatizations to be carried out in 2010, PA officials said.
For further information on Turkish privatization efforts and ongoing tenders please see the following:
A Snapshot of Recent Privatization Opportunities in Turkey
Turkey growth forecast almost doubled by OECD
May 26, 2010
PARIS/TURKEY - Turkey’s economy may expand 6.8 percent this year, the Organization for Economic Cooperation and Development said, almost doubling its previous forecast after a rebound in exports.
The Paris-based OECD had predicted 3.7 percent growth in a November study. The strength of exports together with a revival in consumer spending have helped the economy revive “sharply” after a 4.9 percent contraction last year, the group said in a report published Wednesday.
Turkey slashed interest rates to a record low last year and offered tax breaks to consumers buying items such as cars and home appliances to pull the economy out of recession. Exporters have sought to diversify their markets, targeting Russia and oil-producing Middle East nations as demand in Turkey’s main European trading partners remained weak.
Exports rose 23 percent from a year earlier to $35.1 billion in the first four months of 2010, according to the Turkish Assembly of Exporters. It will be “crucial” for exporters to keep prices competitive as the Turkish Lira gains against the euro, the OECD said.
Consumer confidence rose to the highest for more than two years in April, official statistics show. The OECD forecast a 5.7 percent increase in private consumption this year. The benchmark stock index jumped 12 percent between January and April, before losing the gains this month as the European debt crisis worsened.
Turkey has great energy potential, says former NY governor
April 12, 2010
NEW YORK - Turkey possesses a significant potential in the renewable energy sector, according to George Pataki, former New York governor.
There are plans to invest $80 billion for electricity generation within the next 10 years in Turkey, said Pataki, who currently serves as consultant at Chadbourne & Parke, an international law firm.
“As Turkey’s population grows, its economy is also expanding and it is securing a more important place among countries. However, within this scope, electricity generation is among Turkey’s top problems,” he said in a recent interview with Anatolia news agency at the firm’s headquarters at Rockfeller Plaza in New York.
Pataki was the moderator of a meeting last week on Turkey’s energy and renewables sector held by the American-Turkish Society and sponsored by Chadbourne & Parke.
Commenting on Turkey’s solar, wind and geothermal energy resources, Pataki said, “I know that Western companies operating in the wind and solar energy sectors are highly keen on renewable energy opportunities in Turkey.”
Pataki drew attention to similarities in the energy sectors of the United States and Turkey. Turkey receives 70 percent of its energy from abroad and is dependent on Russia and Iran, especially for natural gas; the U.S., meanwhile, obtains roughly 60 percent of its oil from external resources, he said.
“In this respect, I regard renewable energy as a great opportunity also in terms of the economic, environmental and national security fields,” he said.
Not only Turkey, but also the U.S. and Central Europe have concerns regarding dependency on Russian natural gas, Pataki said.
“Turkey ranks second in terms of Europe’s best solar energy resource. It has incredibly strong wind resource and geothermal energy opportunities on the Aegean and Mediterranean coasts. Moreover, the government has announced that it will take action for hydropower projects,” he said.
“All these will help Turkey become more adaptable with its surroundings, grow its economy and become less dependent on foreign energy resources,” he said.
The preparations on a renewable energy law are ongoing in Turkey, Pataki said, who urged the adoption of incentives to attract investors to the sector. Pataki also said Turkey may become an important solar panel manufacturer.
Pataki’s practice focuses on energy, environmental and corporate matters. Prior to joining Chadbourne & Parke, he served three terms as the 53rd governor of New York from 1995 until 2006.
Microsoft CEO speaks highly of Turkey’s potential in IT
May 13, 2010
The Turkish market offers brilliant opportunities in information technology, Microsoft CEO Steve Ballmer has said, noting that with its predominantly young population and resilient economy, the country is of great importance to the technology giant.
Ballmer said Microsoft regards Turkey in the same category as countries like Brazil, Russia and China, noting that there exists great potential in the Turkish market, which has a young population eager to use new technology. Stating that they have 7,000 business partners in Turkey, he said that with a population of 72 million along with a growing economy, the country has major potential to develop both in its region and the world.
Ballmer was speaking yesterday at a meeting organized to introduce Microsoft Turkey’s recently appointed general manager, Tamer Özmen, to the press and the company’s business partners. Özmen, speaking at the event, drew attention to the need for larger investments in information technology in Turkey. The share of money spent on software and services in gross domestic product (GDP) in France, Germany and the UK is some 11 times more than in Turkey, he noted. “We need to develop further the information technologies sector in Turkey. Half of the population is under the age of 29 and more active compared to others. Currently Turkey ranks second in the number of Live Messenger users around the world, while it is the third country on the list of countries with the highest Hotmail members and the fourth in Facebook members. However, such use of [information technology] contributes almost nothing to the economy. Yet, European economies enjoy billions of dollars in contribution from entrepreneurial companies established in the past 10 years. We are aiming at creating an entrepreneurial economy in this field and to add to the economy.”
Turkey needs to innovate and increase its production potential in order to catch up with countries like Brazil, India and Mexico, Özmen said. He said the country needs to shift from investing more in hardware to software and services instead.