Anasayfa / Reportage / TURKISH EXPORTERS’ ASSEMBLY (TEA) INTENDS TO MAKE 2017 A YEAR TO LEAP FORWARD

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TURKISH EXPORTERS’ ASSEMBLY (TEA) INTENDS TO MAKE 2017 A YEAR TO LEAP FORWARD

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We’re passing through a period in which the whole equilibrium in the world quake. The “Super Power” faces an unprecedented governing paradigm, whereas the European Union countries still struggling financially, one of the major forces of the union, United Kingdom decided to exit from the club. Besides, US Federal Bank (FED), by shifting the monetary policy executed since 2008, lure the investment capital to US, and the currencies of developing countries are eroding.

Under these rough circumstances Turkey started 2017 with good news from export transactions. Exports in January reached 10,528 USD million with a 15 percent increase. Thus, it topped the last 49 months. Turkish Exporters Assembly (TEA), with the hopes that this positive climate will extend to the whole year, assigned 2017 as the year to leap. Mehmet Büyükekşi commented on the ongoing period, Turkey’s export strategy and TEA’s roadmap designed to grow the export volume.

What sort of a process is Turkey passing through? In 2016 global commerce continued to decline in dollar terms. In terms of quantity 2016 has been the second worst year after 2009 with the slowest growth rate in the last 15 years. In this downfall, slowdown in the developing economies and the decrease of commodity prices played a key role. Along with all these occurrences, it is impossible to judge Turkish economy in isolation from the global episode.

According to the inputs published by World Trade Organization (WTO) while the global commerce narrowing down 4.1% in the first three quarters of 2016, the decrease of the exports by South Korea reached 8.5%, UK 12.3%, Russia 23.4%, China 8.2% and USA 5%. Frankly, despite everything, our country is performing well in comparison to other countries. We can observe the outstanding practice of our country in terms of export also from the obtained share of the global commerce.

Our export volume peaked up to 0.89 percent of the global trade that is the highest amount ever. Besides, our export volume breaks a new record by reaching a 1.28 percent share of the EU export volume. What do you expect about Turkey’s export performance in 2017?

Turkish Exporters Assembly, on the grounds of the executed reforms by the government in the second half of 2016, declared 2017 to be a year to leap forward. By means of these reforms we are aiming to shift the global and peripheral episodes into prospects. We also expect 2017 to be a more content year than 2016 globally.

Notwithstanding the expectations of three interest rate increases by FED in 2017, the expected growth rate of the US economy, the expected recuperation of the fuel exporter economies by the means of price raises on fuel and commodities, and the positive signs from the Chinese economy, altogether, refer to a stronger global growth in 2017.

We acknowledge the fact that the regulations of Patent Law which promotes the R&D and innovation ecosystem; crowdfunding; and restructuring of the development banking will be executed. We, Turkish Exporters Assembly, whole-heartedly believe that the consecutive reforms of our government will provide a great boost for Turkey in 2017. What sort of a mission TEA undertakes hereupon? On behalf of our 65 thousand exporters employing approximately 3 million people, we put a great deal of effort in order to contribute to the consistent and healthy growth of our economy, to improve the global competitiveness of the country and to expand our share in the global trade. Certainly, growing the production is one of our main priorities. However, the production of goods with high added value is even more fundamental.

Within this scope, we, the TEA, voice our four major parameters in every occasion that are R&D, innovation, design and brand building. We perform a myriad of activities in which the public, with all the youth and the elderly, can act significantly in order to bring our country to the welfare and development levels which it deserves. What actions you take in order to do that? To cultivate the innovation concept and to interact with our precious community in the process of creating a knowledge-based society in our country, we regularly organize annual innovation week events for five years.

Our latest “Turkey Innovation Week Event” organized at İstanbul in December was visited by a record number of 60 thousand visitors. Over the last two years, we extended our events throughout the Anatolian cities where our member exporters operate. Moreover, in this knowledge-based transformation process, we launch design and R&D project contests in many industries by the participation of students, manufacturers, scholars and entrepreneurs.

We reward the works of our dynamic youth designers and exhibit successful projects in the “Turkey Innovation Week Event” since five years. Additionally, we intend to make our recent Turkey Design Week event which took place on 19-21 October 2016 in an annual basis in consideration with the intensive interest and applause we received. We conduct projects in order to enhance the conditions of our exporters in the given markets and to help them explore new and alternative markets.

Within this scope, we build Turkish Trade Centers all over the global trade hubs to represent the strong image of Turkey within a 7-24 exposition mentality. Following the first center in Tehran, in the upcoming days we will launch our offices in Chicago, New York and Dubai as well.

Also we are working on alternative market options along with the existing ones. For this purpose, we leave no land not to be stepped on and traded goods. Specifically in 2015, we helped 723 businessman to visit 23 different countries within our trade delegations and conducted 4210 bilateral business meetings. In addition to that, by our hosting delegations we brought 439 foreign businessmen with various nationalities to Turkey and conducted 2160 bilateral business meetings.

Throughout narrowing export periods, market diversification becomes prominent. How do Turkish exporters take actions in this manner? Meanwhile the European Union remains our major market, we see that our exports to Africa reached 12.4 USD billion in 2015 with quintupling the 2.1 USD billion amount in 2003. Besides with our investments in Africa worth 6.2 USD billion, we also employ approximately 100k people.

Turkish Exporters Assembly aims to help our exporters to make them stronger and more competitive. For that matter we will focus more on the activities to penetrate new markets. In this manner we will continue to organize trade delegations with our businessmen to new target markets along with our existing ones. At this point, I should underline that we took crucial steps in terms of image and brand building.

Under the tutelage of Ministry of Economics and with the support of the Ministry of Culture and Tourism, we developed the new “Turkish Brand” concept with the slogan of “Turkey-Discover the Potential” in 2014. By extending this promotional activities representing the progress and the future vision of our country to a wider scope in the world we aim to strengthen our country image. The outcomes of the downturn of the demand in the world and the ongoing warfare around us are obvious. In spite of these, we declared 2017 as a year to leap forward to mobilize export.

Because it is a must for us in order to reinforce Turkey’s macroeconomic stability and gains, and to achieve a sustainable development.

THE ACTIONS TAKEN TO LEAD UP THE EXPORTERS

A NEW LAW ENCOMPASSING THE GREEN PASSPORTS FOR EXPORTERS AND STAMP TAX REGULATIONS WAS ENACTED.

NEW REGULATIONS WERE ADMINISTERED TO SUPPORT R&D, INNOVATION AND DESIGN ACTIVITIES, PROVIDING TAX EXCEPTIONS AND EMPLOYMENT INCENTIVES.

THE SUBVENTION BUDGET IN 2017 WAS INCREASED TO 3 BILLION TL FROM 1 BILLION TL.

RELATIONS WITH RUSSIA SHIFTED INTO A NORMALIZATION PROCESS AND THE IMPORT PROHIBITIONS ON AGRICULTURAL PRODUCTS WERE RELEASED.

PROJECT BASED SUPER INCENTIVE SYSTEM WAS LAUNCHED. THUS, INVESTMENTS HAVING R&D AND HIGH ADDED VALUE PROPERTIES WILL BE CLASSIFIED AS SUPER INVESTMENTS AND THEREFORE BENEFIT FROM THE EXTENSIVE INCENTIVES IN THE NEW MODEL.

MEDIUM-HIGH TECHNOLOGY INVESTMENTS IN THE 1ST, 2ND AND 3RD CATEGORY WERE INCORPORATED INTO THE 4TH CATEGORY.

THE MOVABLE ASSET PLEDGE LAW WHICH EASE THE REACH TO FINANCIAL INSTRUMENTS FOR COMPANIES AND ALLOWING THE MOVABLE ASSETS TO BE UTILIZED IN THIS PROCESS WAS ENACTED.

THE TREASURY SUPPORT FOR CREDIT ASSURANCE INSTITUTIONS WAS ENACTED. BY THE REGULATION, THE BENEFICIARY DEFINITION WAS UPDATED SO AS TO ALLOW ALL THE COMPANIES NOT INCLUDED IN THE SME CATEGORIZATION TO APPLY FOR THE CREDIT ASSURANCE FUND WARRANTY.

BREATH FUND, 5 BILLION TL IN TOTAL, WAS ANNOUNCED FOR THE SME’S WHICH ALLOW A LOAN TEN TIMES THE DEPOSIT AMOUNT WITH A 12 MONTHS FIXED TERM.

IN ORDER TO PROMOTE INVESTMENTS IN THE RELATIVELY UNDERDEVELOPED AREAS, BOOST EMPLOYMENT AND EXPORT, APPEAL CENTRE PROGRAMS HAD BEEN STARTED.

NEW MARKET ENTRY SUPPORTS AND EXPO SUPPORT BUDGETS OF THE MINISTRY OF ECONOMY DESIGNED TO HELP EXPORTERS TO LOCATE IN NEW MARKETS AND TO BUILD BRANDS WERE RAISED.