TEPAV - Sak: “The new EU engagement process is very important” The “EU- Turkey High Level Economic Dialogue” and “Foreign Direct Investments and Investment Climate in Turkey Conference” was held in Istanbul.
ISTANBUL- Executive Director of TEPAV Güven Sak while pointing out the vitality of the new engagement process between the EU and Turkey said “For us Turks, the EU engagement process signifies the arrival of administrative reforms. At the moment, this is what we need.”
The “EU-Turkey Business Dialogue” as a part of “EU- Turkey High Level Economic Dialogue” meeting, held in Istanbul on Monday, April 25, in line with the decisions taken on November 29, 2015 by the Turkish Government and the Heads of State of EU members. And the “Foreign Direct Investments and Investment Climate in Turkey Conference” followed this Dialogue. Both of these events, was co-organized by Under- secretariat of Treasury, EU Delegation to Turkey and Ministry of EU Affairs in cooperation with the Union of Chambers and Commodity Exchanges in Turkey (TOBB) and Economic Policy Research Foundation of Turkey (TEPAV).
Foreign Direct Investments and Investment Climate in Turkey Conference
At the Conference TEPAV’s Executive Director Güven Sak gave a presentation titled “Turkish Economy and Investment Environment”. Describing in his presentation the development, both, Turkish and the EU economies went through, Sak also emphasized that the Customs Union agreement between Turkey and the EU became practically applicable starting from 2002. Related, Sak stated that despite the events that took place in the region, Turkey still continued to successfully implement the necessary structural reforms.
Moreover, Sak pointed out that Turkey is in need of FDI and therefore requires the improvement of its investment environment. He stated “I believe that the new EU engagement process is crucial. I think it is necessary for the sake of Turkey’s economy because the approach of the EU always mean for us Turks the coming of administrative reforms. At present, these reforms are what we need for Turkey’s economy.”
Member of European Commission for European Neighbourhood Policy & Enlargement Negotiations Johannes Hahn gave the opening speech for the “Foreign Direct Investments and Investment Climate Conference”. Stating that Turkey is an important country within the global supply chain, Hahn pointed out that there are over 20 thousand EU companies operating in Turkey. Touching upon the success stories of Turkish businesses in Europe, Hahn stated that “The Turkish companies operating in Europe employs approximately 600 thousand, which is a significant number”. Emphasizing that Turkey is a crucial internal element of the EU market, Hahn added “The EU has always been the main trade partner of Turkey, where our bilateral trade volume approached 140 billion euros in 2015. The EU is Turkey's main export market. And Turkey has become the EU's 5th trading partner in 2015, one step up compared to a year ago. This deep trade and economic integration was helped by the enabling role of the EU-Turkey Customs Union.”. Hahn further stated that they have been working on and doing impact assessments to find ways to modernize and widen the capacity of the Customs Union. Stating that the European companies represent the 44 percent of the foreign companies based in Turkey, Hahn stated that “Even after the 2008 crisis, on average, the EU provided more than two-thirds of foreign direct investments targeting Turkey every year. Three quarters of the overall FDI stock coming to Turkey originates from the EU, often targeting high value-added segments and financial services.”
After Sak’s presentation and Hahn’s speech, the Foreign Direct Investments and Investment Climate in Turkey Conference, with Professor İzak Atiyas’s moderating continued with the panel titled “Foreign Direct Investments in Turkey, untapped potential and problems”. The panelists in the Panel were CEO of Ericsson Turkey Ziya Erdem, CEO of DHL Express Turkey Markus Reckling, Secretary General of Automotive Industry Association and World Bank Country Director for Turkey Johannes Zutt. The participants assessed the Turkish economy from a foreign investor’s point of view. The panelists listed the changes they believe that are needed to be made in order for Turkey to attract more FDI. Touching upon the issue of ‘transparency’ within Turkey’s investment environment, at the same time emphasized the importance of the progress Turkey has made in the last 20 years. On the other hand, the World Bank Country Director for Turkey Johannes Zutt talked about the benefits FDI will provide on a country’s economy in the long run. Especially drawing attention to the transfer of technology and management aspects, Zutt stated that these investments will increase competitiveness among local firms.
The last panel of the Conference titled “Increasing Turkey’s FDI Attractiveness: Major Reform Areas and Improvement of Business Environment” was held and was moderated by the Economic Consultant of TÜRKONFED Pelin Yenigun Dilek. The panelists consisted of Deputy Director General for Ministry of Economy Murat Alıcı, from YASED Özlem Özyiğit, European Commission Deputy Director General of DG Research Wolfgang Burtscher and Managing Partner of Esin Attorney Partnership İsmail G. Esin. The participants to the Panel pointed out that Turkey by increasing its innovation and research capacity can attract more FDI. On the other hand, the panelists touched upon the vitality of the role ‘rule of law’ and ‘predictability’ as an extension of this norm, could play in attracting more FDI.
The Speeches given in the Conference as well as the Presentations could be reached from the links below:
Opening Speech by Commissioner Johannes Hahn
Markus Reckling's Presentation
EU- Turkey High Level Economic Dialogue (HLED)
EU-Turkey Business Dialogue as a part of EU- Turkey HLED was held with the participation of Deputy Prime Minister Mehmet Şimşek, Minister of Customs and Trade Bülent Tüfenkçi, Minister of EU Affairs Volkan Bozkır and Minister of Economy Mustafa Elitaş, as well as EU Commissioners, the representatives of the business and civil worlds and the multinational financial institutions.
“The business world wants to see the light at the end of the tunnel”
In his speech, the President of TOBB and the Vice- President of EUROCHAMBERS M. Rıfat Hisarcıklıoglu, pointed out that there are various different mechanisms where the representatives of the EU and Turkey to meet, and stated that there is a lack of a single mechanism bringing all the elements under one roof and continued by saying that as the umbrella organization for the Turkish business world, TOBB supports Turkey’s membership and all the work that has been put in.
Stating the importance TOBB gives to improving Turkey’s dialogue with the EU for the sake of enhancing the investment environment in Turkey, Hisarcıklıoglu stated “We are carrying out many projects with the financial support of the EU, aiming to build capacity as well as to improve dialogue between civil societies. With our entire local network, we are carrying out Project on the EU Information Centers all over Turkey. This Project is the most fundamental communications project carried out by the European Commission in Turkey. The accession negotiations of Turkey have been going on for more than 10 years, but the process is progressing in a slower pace than we would have hoped. We still are not able to see the light at the end of the tunnel. As the business world we would like to see that light.”
He continued by stating “The halt of the accession negotiations have been costly for both parties. Therefore we are pleased that the negotiations have once again gained momentum. We want all the chapters to be opened and closed with regards to membership negotiations. We, as the business world, are ready to do our part with regards to the closing of all chapters. Especially, the visa liberalization process is a priority in our agenda. The visa problem is one of the most fundamental problems standing in front of the cooperation between the EU and Turkish business worlds.”
He continued by saying “As TOBB, we have put a prioritized article in our agenda. Me, personally, drew the attention of my European colleagues to this article. Due to the visa problems we have not been able to take advantage of many opportunities.”
“The visa liberalization will lead to increased communication and cooperation among the EU and Turkish citizens. The delays due to the visa problems will come to an end and our trade relations will further strengthen. We are very happy of EU’s decision to talk about the visa liberalization by June 2016.”
Deputy Prime Minister Mehmet Şimşek: “the EU accession process is Turkey’s most comprehensive reform program”
While pointing out that EU is success story, Deputy Prime Minister Mehmet Şimşek stated “I believe that if and when Turkey upholds the notion of rule of law, further improves its democratic standards, increases the quality of its institutions and FDI inflow to Turkey sees an important increase. In that instance, Turkey’s risk premium decreases. On account of this, the EU accession process is Turkey’s most comprehensive reform program, the EU is a success story. This is very important for us as well. I hope Turkey will increase the quality of its institutions, deepen its stability and the notion of rule of law. Related, Turkey will successfully close the gap between itself and the EU.”
Mehmet Şimşek stated “One of the most important issues is the migrant crisis. On this matter, we are strictly complying to the agreement we have made with the EU. There lies a success story here as well. We have seen a decrease in the number migrants illegally passing from Turkey to the EU. This really is a success. We are doing everything we can on this matter. This migrant crisis is much bigger that Turkey or the EU, and it requires global approaches and global solutions.”
“We have existing cooperation on many matters. Tax evasion concerns all of us. It is beneficial to us to form partnerships with the EU in many subjects. We are trying to act as a team player in our relation with the EU since we need to succeed. With visa liberalization Turkey and the EU will be successful in many more things. The number of business opportunities will increase. I believe if EU approaches Turkey fairly with regards to unconditional membership, it will succeed in implementing the model a peace among Islam and other civilizations.”
President of TÜSİAD Cansen Başaran Symes, on the other hand, talked about the importance of membership to EU for Turkey. She stated that this goal will better democracy, increase development and competitiveness in Turkey.
“Business World has to Reveal Hidden Skills of Syrians”
Eurochambers Chief Executive Officer Arnaldo Abruzzini, indicated that Syrian refugees are carrying their hidden skills where ever they immigrate. He said “Refugee crisis may be a stand point to further improve our relations. Refugees are arriving with their hidden skills, as the business world we have to discover these abilities.”
European Commission Vice-President for Jobs, Growth, Investment and Competitiveness, Mr. Katainen, said “If Turkey fulfils all of the criteria, the EU is determined for visa liberalization. These criteria are not only necessary for Turkey, all countries has to implement them.”
Mr. Katainen underlining that, European Union (EU) is not just a free trade association, said “Member states agreed on to replace enforcement laws with rule of law, this is underlying reason of this initiative.”
It is still crucial to be a union with values. Rule of law is the only tool for securing freedom. There are no other ways than defending freedom of speech to protect the people and their freedom. We want to see Turkey more with us, we wish to cooperate more, and this is economically reasonable for us and also important for the stabilization of the region. We desire Turkey to; build transparent, strong and democratic institutions, respect on rule of law and human rights, improve its economy and progress modernization process.
Membership negations are very important for us. For sure EU is willing to be just to Turkey. If Turkey fulfills all of the criteria as a candidate state EU is eager to see Turkey as a member.
Beyrer: “We support Turkey’s EU membership”
CEO of BusinessEurope Markus Beyrer, while pointing out the existence of an accelerated dialogue between the EU and Turkey stated “It might have started for the wrong reasons but we have a very important opportunity in front of us. Turkey and the EU have very strong relations. Turkish friends sitting and being around the table with us has been a part of our lives and has been the reality.”
Beyrer, stating that Turkey is passing from a crucial point, emphasized that both parties will benefit from this accelerated negotiations and said “Providing shelter for refugees and greeting them is a very good thing. We welcome Turkey’s cooperation. For refugees who come legally, we see a willingness to integrate into labor force but we should not confuse some things. Having the refugee crisis on the one hand and the qualified labor force on the other, we are going to take these on from different lanes. We must think ahead of the refugee crisis. We support Turkey’s EU membership and the opening of articles is very important, the deepening of negotiations is vital. Related, the opening of the Article 17 is also very important.
