July 31, 2009
 CHICAGO - Turkish Commercial Attache Suleyman Sozeri spoke at the panel discussion "Doing Business in the Middle East" during the American Bar Association’s 2009 Annual Meeting on July 31, 2009 in Chicago.
Mr. Sozeri joined representatives from Egypt, Israel, Jordan, the Palestinian Authority and United Arab Emirates to speak about the increasing trade between the U.S. and Middle East. Mr. Sozeri explained how Turkey serves as a gateway for U.S. companies as they expand operations in the Middle East. Turkey, with its direct access to Middle Eastern markets and free trade agreements with countries including Israel, Syria, Egypt and Palestine has become a powerhouse in the region. Mr. Sozeri highlighted Turkey’s liberal legal framework as one of the reasons an increasing number of American companies are choosing to do business in Turkey. Foreign companies in Turkey receive the same rights and exemptions granted to domestic companies engaged in the same field of activity. Foreign investors can also freely control 100% of the shares of almost all types of companies.
Mr. Sozeri also touched upon the U.S. – Turkey trade relations noting that the bilateral trade between the two countries grew to 15 billion dollars in 2008 from 8 billion dollars in 2004 reflecting an increasing trend in bilateral volume. He added however, the growth rate of bilateral trade volume is far from reflecting the real potential of both countries considering the $160 billion dollar trade volume between Turkey and the EU. Mr. Sozeri concluded his remarks by providing key information about the projects Turkey undertakes to enhance trade and prosperity in the Middle East.
The "Doing Business in the Middle East" panel was sponsored by the ABA Section of International Law. The panel was one of over 250 Continuing Legal Education programs during the six day event, which drew over 10,000 legal professionals from across the country.
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July 27, 2009
Anatolia News Agency, ISTANBUL - According to 2008 figures, Turkey climbed one-step up in the global exporters league, ranking 32nd with exports worth $132 billion. In the global importers league, the country retreated one-step, ranking 20th with $202 billion in imports.
Turkey’s service exports totaled $34 billion last year, up 22 % from 2007, according to figures from the World Trade Organization. In this area, Turkey ranked 27th, as its service export performance grew faster than any other country except Russia.
Germany, whose exports were hard hit this year by the global crisis, was again at No. 1 in exports, increasing 2008 exports by 11 % to $1.465 trillion. China’s exports last year rose 17 % on an annual basis, to $1.428 billion. This year, China is expected to surpass Germany to be the world’s top exporter.
The United States, the world’s No. 1 importer, also improved its performance in exports last year, which rose 12 % to $1.3 billion.
Other countries in the top 10 in exports last year were Japan ($782 billion), the Netherlands ($634 billion), Italy ($540 billion), Belgium ($477 billion), Russia ($472 billion) and Britain ($458 billion).
If the European Union is accepted as a single trade bloc, Turkey would rank 22nd in exports, the WTO said.
In imports, the United States alone accounted for 13.2 % of all global imports. Last year, U.S. imports rose 7 % to $2.166 trillion. The U.S. was followed by Germany ($1.206 trillion) and China ($1.133 trillion).
If the European Union is accepted as a single trade bloc, Turkey would rank 13th in imports, the WTO said.
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TURKEY - Turkey's growing economic and political influence in the global arena led global news circles, such as the Economist and Financial Times, to give extensive coverage about Turkey's regional leverage. Turkey’s peaceful relations with neighboring countries, crucial role as an energy transit route into Europe, economic stabiliy, and geo-strategic position in its region has attracted worldwide attention.
According to The Economist, "The ease with which Turkey juggles different worlds, be they Arab or Jewish, Muslim or European, prompted Hillary Clinton to call it an 'emerging global power'... It was understandable that one of Barack Obama’s first presidential visits to a foreign country was to Turkey"*. Turkey’s foreign policy foresees an equal distance to European and Middle Eastern countries, which ensures peaceful relations among the neighboring countries. Its increasing influence witnessed by recent efforts to maintain stability in its region has helped reshape the prevalent view about Turkey favorably, considering it as a rising power in the world.
Turkey’s amicable relations with its neighbors have allowed it to serve as a mediator and bridge between worlds. Turkey is a crucial part of the energy transit route between Central Asia and Europe and has become a broker of peace and prosperity in the region.
* http://www.economist.com/world/europe/displayStory.cfm?story_id=14098427&source=most_commented
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July 22, 2009
TURKEY - Turkey has turned its sights to South America for exploration of oil and natural gas, expecting to explore parts of Brazil, Venezuela and Columbia by late 2010. Officials from Turkish Petroleum Company (TPAO), which was recently granted an overseas oil exploration license by Turkey’s Cabinet, met with the CEO of Brazilian oil giant Petrobras. TPAO has been drilling for oil in the Black Sea with Petrobras, and will now be concentrating on drilling on the South American continent. Besides exploring for oil and natural gas in Brazil, TPAO expects to explore oil options in Venezuela, Columbia and Chile. The meeting between TPAO and Petrobras came one week after TPAO signed an energy agreement with its counterpart in Chile. Officials from Turkey’s Energy Ministry believe the region has a huge natural resources potential. In recent years, Brazil has made huge leaps forward in the energy sector. The country, which used to import energy, is now able to produce more than two million barrels daily. Officials called this the main reason for the area’s importance in oil and natural gas drilling.
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July 21, 2009
TURKEY - Turkey will account for more than 10% of Central and Eastern European regional power generation by 2013, and remain a net exporter of electricity to neighboring countries. Between 2007 and 2018, Business Monitor International is forecasting an increase in Turkish electricity generation of 72.5%, which is near the top of the range for the Central and Eastern European region. Regional power generation is expected to be up 23.7% by 2013 and regional energy demand is forecasted to grow 22.84% over the same period. Turkey now shares fourth place with Russia in Business Monitor’s updated Power Business Environment Rating. The score reflects the substantial size of the country’s electricity market and infrastructure, a high proportion of renewable in the energy mix, above-average growth in primary energy demand and the region’s most rapid rate of population growth. Turkey’s power consumption is expected to increase from an estimated 147.8 TWh in 2007 to 176.7 TWh by the end of the forecasted period, while exports should rise from an estimated 43.1 TWh in 2007 to a forecasted 96.7 TWh in 2013, assuming 6.5% annual growth in electricity generation.
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TURKEY - Turkey has recently launched a new investment incentive scheme to attract more foreign direct investment to the country. The scheme provides customs, duties and corporate tax excemption, free land allotment, and interest payment support. Moreover, structural reforms further liberalized regulatory environment, making Turkey one of the most business friendly countries in the world.
Turkey’s regulatory environment allows a business to be established in a single day, irrespective of nationality or place of residence. Turkey also has one of the most liberal legal systems for FDI of all OECD countries. Domestic and foreign capital companies receive equal treatment, companies are allowed unrestricted foreign ownership, and no pre-entry or pre-establishment screenings are required.
Turkey offers various investment zones throughout the country. Currently, there are 31 Technology Development Zones (TDZs), 18 of which are operational and 13 have been under construction. TDZs are designed to support R&D activities and attract investments in high technology fields. Some of the advantages of TDZs include availability of offices and infrastructure facilities, exemption from income and corporate taxes until 2013 from profits derived from software and R&D activities, and exemption of value added tax until 2013 for deliveries of application software.
Turkey also has 20 free zones operating in the country. They offer 100% exemption from customs duties and other assorted duties, 100% exemption from corporate income tax for manufacturing companies, and 100% exemption from value added tax and special consumption taxes. Other special investment zones Turkey offers are organized industrial zones and industrial zones.
The recent figures show that Turkey’s investment incentives scheme have been quite successful. Accordingly, in 2008, the FDI inflow to Turkey reached $18 billion and the country was ranked world’s 13th most attractive country for FDI and ranked fifth among emerging markets.
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July 20, 2009
TURKEY - Turkey is on course to have its own "Silicon Valley." Work on creating a specialized zone for the studies and development of software, hardware and robotics in underway in the country. Planned to be the biggest such endeavor in Europe and the Middle East, the project is dubbed the "IT Valley." The project location is yet to be determined, with Istanbul being the most likely candidate over Ankara and Eskisehir. Istanbul is currently home to many IT companies, which favor the city as the project location. IT Valley is expected to be located near built-up areas and on major routes for easy transportation. The feasibility studies will begin on the project’s probable location near Sabiha Gokcen Airport on the Asian side of Istanbul after the final decision. After analyzing similar zones in India, the USA and the EU and taking measures such as providing special incentives to foreign investors, Turkey will work its way to becoming a major player in the IT industry.
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July 15, 2009
TURKEY - Hilton Hotels Corporations has entered into a Franchise License Agreement with Durmazlar Makina Sanayi ve Ticaret A.S. to open two new Hilton Family properties in Bursa. The 170-room upscale Hilton Bursa Convention Center & Spa and 106-room Hampton by Hilton Bursa will be located next to each other and will represent the first dual-branded development in the country by Hilton, as well as the Turkish debut of the company’s Hampton by Hilton brand. The alliance between Hilton and Durmazlar Makina Sanayi ve Ticaret A.S. brings Hiltons international recognition and strong brand and Durmazlar’s expertise and knowledge of operating in Bursa.
Hilton plans to grow its presence in Turkey with the introduction of 40 properties over the next five years. In June, the hotels giant opened its first resort property in Turkey, the Hilton Dalaman Golf Resort & Spa and is interested in other resort towns of Turkey including Bodrum, Cesme and Kusadasi on the Aegean coast and Antalya on the Mediterranean. Mike Collini, Hilton’s vice president of development, said Turkey was a priority for Hilton’s expansion in the future.
Turkey was ranked as the 8th most popular tourism destination in the world in 2008 with over 25 million international arrivals. Visitors to Turkey enjoy the rich cultural heritage, temperate Mediterranean climate and diverse recreational offerings of the country.
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July 14, 2009
CHILE - Turkish State Minister Zafer Caglayan and Chilean Foreign Minister Mariano Fernandez signed a free trade agreement between Turkey and Chile on July 14, 2009 in Santiago. This is Turkey’s 17th free trade agreement and first free trade agreement between Turkey and a Latin American country. The agreement will allow 98% of bilateral trade between Turkey and Chile to be duty free. Within the next six years, the agreement will apply to 100% of products. Turkish Minister Caglayan believes the agreement will boost Turkey’s trade volume with Chile to at least USD 1 billion within a couple of years from the current level of USD 474 million. Caglayan also said the free trade agreement would make significant contributions to the services sector, adding that contractors, engineers and consulting firms of the two countries will be able to work together. He noted that it was important for Turkey, which is strong in its region, to sign a free trade agreement with Chile, which is strong in Latin America. Chile can serve as a platform for Turkey to tap into other Latin American markets.
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July 13, 2009
ANKARA - The leaders of Turkey and four EU countries signed a landmark agreement on July 13, 2009 allowing the NABUCCO pipeline to cross their territory. Turkish Prime Minister Recep Tayyip Erdogan and his counterparts from Austria, Bulgaria, Hungary and Romania met in Ankara for the event. Prime Minister Erdogan hailed the deal as a "historic moment." The 3,300-kilometer-long pipeline will run from Turkey to Austria via Bulgaria, Romania and Hungary with the capacity to pump 31 billion cubic meters of gas, securing and diversifying Europe’s energy supplies. About 2,000 kilometers of the pipeline will run through Turkey. Possible suppliers to the pipeline are Azerbaijan, Iraq, Egypt, Syria, and Turkmenistan.
The signing of the NABUCCO gas pipeline deal signifies Turkey’s role as an energy hub in the region. Turkey is surrounded by over 70% of the world’s proven gas reserves making the country a crucial bridge between energy rich regions to the east and energy consuming countries to the west. With the completion of the pipeline, Turkey will transport 10% of global oil and gas supplies from its soil.
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June 26, 2009
USA - UPS bought a majority stake in its Turkish service agent to grow its business in the Middle East and Central Asia. UPS will take a majority stake in Unsped Paket Servisi San ve Ticaret AS, while Unsped’s current CEO Haluk Undeger will retain a minority stake and stay on as chief executive of the joint venture and will be responsible to manage the commercial agreements covering the expansion of UPS to 21 countries. Dan Brutto, president of UPS International said, "This joint venture will spearhead growth among our other services agents and operations in these countries…This part of the world has become a transportation bridge and ideal near-sourcing location for Europe, Russia and Asia."
The joint venture between UPS and its Turkish services agent confirms Turkey’s role as a business center in the region. Companies establishing regional headquarters in Turkey benefit from Turkey’s strategic location reaching large, diverse markets, a well-educated experienced workforce and expanding economy.
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