ECONOMY - Increasing trade with Muslim countries becomes Turkey’s economic ‘oxygen’

Turkish leadership has amassed enough credibility to be able to make Turkey the largest economy in the Muslim world, and now most Muslims nations are lauding and welcoming the country’s economic rebound and upsurge.

Turkey deserves credit for its virtuoso-like economic and political maneuvering among Muslim nations in a politically unstable and fragile region over the past few years, heralding a new era of Turkey’s prominence in the Muslim world. (source)

The increasingly growing trade and economic relations between Turkey and the Muslim world remains both a source of economic clout in the region and the cause of increasing diplomatic muscle. Enacting visa exemption deals, securing free-trade agreements, establishing economic zones, launching economic cooperation mechanisms and instituting high-level cooperation councils have provided Turkey an opportunity and environment in which to step up its trade volume and more easily facilitate transactions between its own businessmen and those of other Muslim nations. Turkish leadership has amassed enough credibility to be able to make Turkey the largest economy in the Muslim world, and now most Muslims nations, lauding and welcoming Turkey’s economic rebound and upsurge -- reminiscent of past Ottoman glory -- think Turkey may be able to lead Muslim nations out of their mire. In 2002 the European Union’s share of total exports from Turkey was 56.5 percent. This figure fell to 46.3 percent last year. Africa’s share, including some Muslim North African countries, was 4.7 percent in 2002, but reached 8.2 percent in 2010. Middle Eastern countries’ share rose from 9.6 percent in 2002 to 20.3 percent last year. According to data from the Turkish Statistics Institute (TurkStat), exports to 86 countries increased in 2009. The countries that increased the amount of goods they purchase from Turkey last year compared to 2008 included Egypt (83.6 percent), Libya (67.5 percent), Iraq (30.8 percent), Syria (27.8 percent), Algeria (10.4 percent), Senegal (6 percent) and Pakistan (5.2 percent). The evidence is compelling that with smooth sailing Turkey may soon enter the ranks of the top 10 largest economies in the world in 15 years, which will positively reinforce its trade and economic relations with Muslim countries. Turkey has signed a number of deals with Muslim countries in the past few years largely to establish mechanisms for economic cooperation that would facilitate trade and reciprocal economic activities in a bid to propel the country into the top echelon of the major economic powers of the world. A growing trade volume with Islamic countries bodes well for Turkey’s growing economic and political leverage in these countries. Turkey’s recent forays into the Middle East have greatly expanded its trade and influence. While insurmountable walls between Turkey and the European Union are multiplying, they are tumbling down with countries in the Middle East and North Africa. Turkey has worked persistently to make visa requirements a relic of the past with Muslim countries such as Syria, Lebanon, Libya, Albania, Tajikistan, Jordan, Qatar, Iran, Pakistan, Azerbaijan, Yemen, Sudan, Indonesia and Kosovo. It has also established high level cooperation councils with these countries, further facilitating trade and investment. Thanks to numerous business forums organized by private business associations, Turkey’s economic expansion into the Muslim world has become easier and more fast-tracked. The Turkish Confederation of Businessmen and Industrialists (TUSKON), one of the largest gatherings of business giants, has worked hard with Muslim countries to achieve this goal. TUSKON Chairman Rızanur Meral told Sunday’s Zaman that stability, economic initiatives and proactive diplomacy with neighboring countries have increased Turkey’s visibility in the region. In this process, Meral said, TUSKON and its member organizations engaged in intensive meetings in 2009 and 2010 through world trade bridges that have also brought many Muslim businessmen to Turkey. Recalling that TUSKON organized the “Turkey-Middle East Trade Bridge -- 3” in November of last year, Meral said they also hosted 80 businessmen from Morocco on Thursday and that a Turkish-Moroccan business forum convened yesterday to foster economic interaction and trade. Meral also added that they have sent businessmen to Egypt, Morocco, Algeria, Sudan, Yemen, Saudi Arabia, Kuwait, Qatar, Lebanon and Indonesia as they attach importance to economic ties with these countries and that such activities greatly contributed to increasing trade. He also said the removal of visa requirements and the signing of free trade agreements have also increased tourism and made it easier for foreign businessmen to visit Turkey. One of the secrets behind building trust and cooperation in the Middle East is the importance of being able to talk with every country and establish good ties. No single country in the world can win the entire Middle East. Turkey, as a pivotal player in trade and economy, is a trusted country across the Muslim world. Khalid Khalaileh, general manager of Canada International, which also has a regional office in Jordan, told Sunday’s Zaman that Turkey is a trusted Muslim country in business and has vested interests in engaging in trade and expanding economic activity with Jordan. Trade volume had quadrupled between Turkey and the Arab world, reaching $28.8 billion by the end of 2009 from only $7 billion in 2002. One-fourth of Turkey’s overall exports go to Arab countries. Turkey’s cultural affinity and geographical proximity also increase Muslim tourists. Over 2 million Arabs chose Turkey as their vacation destination last year. There are also over 2,000 Arab companies with investments in Turkey. The share of Middle Eastern countries in Turkish trade, for example, increased from 6 percent to 14 percent over the last eight years. Twenty provinces in Turkey had over $1 billion in foreign trade, while this number was nine in 2002. The trade volume between Iran and Turkey exceeded $10 billion for the first time last year, up from $5.5 billion in 2008, and both sides are eying $30 billion in trade in the coming decade. With economic sanctions imposed on Iran over its suspected nuclear program starting to bite its major trading partner, the United Arab Emirates (UAE), Tehran is turning to Turkey to replace its import routes in the Gulf. The foreign ministers of Turkey, Syria, Jordan and Lebanon decided in a meeting on June 10 of last year to set up a high-level quartet cooperation council to boost existing legal mechanisms in free trade and visa exemption deals to improve trade cooperation between these four countries. The cooperation council sought “to develop a long-term strategic partnership” and to “create a zone of free movement of goods and persons among our countries” during a meeting on the sidelines of a Turkey-Arab cooperation forum in İstanbul last June. Turkey and other countries will declare at a summit in January that the economic zone between these countries is in effect. Since last June Western observers have been accusing Turkey of trying to create its own union in the Middle East. Hüseyin Bağcı, a professor from Middle East Technical University (ODTÜ), told Sunday’s Zaman from Berlin that Turkey’s face is turned to the European Union. “We have the Economic Cooperation Organization, the Arab League and other platforms. But our place is in Europe, and there is no doubt about this,” Bağcı said. Citing persisting problems, animosities and protracted conflicts in the region, Bağcı said a variety of reasons make it impossible for Turkey to establish an institutionalized mechanism that would bring Middle Eastern countries together. “Turkey is good at bilateral relations, but it fails to bring nations together. It just does not work,” he added. TurkStat says trade volume between Turkey and Syria in 2009 was $1.75 billion, with Turkish exports to Syria reaching $1.42 billion. Turkey’s trade volume with Lebanon amounted to $795.25 million and with Jordan $476.28 million last year, with exports in 2009 totaling $686.54 million and $455.92 million, respectively. Turkey’s geographical closeness and shared historical background grant it more advantages in its trade with Muslim countries. “It is very natural for Turkey to expand its trade with Muslim countries,” Bağcı said, when asked if Turkey is trying to translate its growing economy into increasing diplomatic influence. Hasan Köni from Galatasaray University told Sunday’s Zaman that these developments are neither an axis shift nor a desire to distance itself from the West. “Similar to other countries, Turkey is also behaving in line with its national interests and trying to create an economic space for itself,” Köni said. Birol Akgün from Selçuk University told Sunday’s Zaman that Turkey’s attempt to create a free trade zone with Muslim countries is not an alternative to the EU but a natural process caused by globalization. Source : http://www.todayszaman.com/news-233904-increasing-trade-with-muslim-countries-becomes-turkeys-economic-oxygen.html - Jan 30, 2011