The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) Trade Centers-Target Market USA Summit was held at TOBB Twin Towers.
Speaking here, Bolat referred to Turkish Manufacturing Export Climate Index data from the Istanbul Chamber of Industry (ISO) and said the index, which stood at 51.7 in September, rose 0.7 points to 52.4 in October. Bolat noted that this figure was the highest in 17 months and said the data was an indication that the positive export climate was continuing.
Bolat stressed that during his term, exports increased monthly for 22 months and broke monthly records in 17 of the last 30 months, so the situation in exports of goods and services is improving. Bolat explained that the world is in a period where there are tariffs and trade wars and foreign demand is weak. Even in such a situation, the hard-earned products of industrialists and farmers would be exported to around 200 countries.
Referring to the industrial production index data for September, Bolat said: “In September there was a monthly increase of 2.9 percent compared to September a year ago and 30 percent in 2002. Now “We are making progress in electronics, defense industry, mechanical engineering and high-tech products.” This is reflected in our exports and production. In Turkey there is an industry growth of 5.1 percent. This has a positive effect on exports. The increase in exports also has a positive impact on industrial production and the industry is gradually strengthening its position as an export locomotive,” he said.
“Short-term buyer loans are also part of the scope of funding”
Bolat explained that with the presidential decree published in the Official Gazette, two support mechanisms for exports came into force, recalling that short-term buyer credit and medium and long-term credit are now included in the scope of support. Bolat explained that thus capital goods exported abroad under contract projects will be supported in financing costs, pointing out that in a second support, expenses related to the expenses of export consortia, rental of units abroad, installation and concept costs for architectural works and warehousing services are also included in the scope of the support, and export consortia for the target markets will be supported for five years.
Bolat mentioned that the daily rediscount credit limit was increased to 4.5 billion lira, saying that these financial supports would be provided with an amount equal to half of the commercial market costs, and that the daily limit of 1.5 billion lira was only allocated to labor-intensive sectors such as textile, clothing, leather and furniture. Bolat explained that Türk Eximbank's capital was increased to 88 billion lira with the recent increase, pointing out the importance of the US market. Bolat pointed out that the United States has become Türkiye's second largest export trading partner, pointing out that this country is the main player in imports. Bolat informed about the foreign trade deficit of the United States and recalled that after taking office, Donald Trump introduced some additional tariffs on aluminum, steel and automobiles to compensate for the deficit, and that on April 2 he drastically increased tariffs against the countries of the world.
Pointing out that between 2000 and 2019, the average growth in the world was about 4 percent and in world trade was 6 to 7 percent, Bolat said: “Here, China was the locomotive in exports and the United States in imports, but since the Covid-19 epidemic, the average growth rate in the world has fallen to 3.1 percent. The average growth rate of world trade has fallen to 2.9 percent per year. The locomotive of the Economic growth is no longer global trade.” That shows that things are getting hot.” “In the markets the bread is no longer in the lion's mouth but in its stomach, so you will take the bread from there. You will be fighting imports from all over the world at home, with your competitors from all over the world in your export markets.” he said.
Bolat pointed out that with the government's export-based growth strategy, the Turkish economy has grown by 5.4 percent in 22 years and the national income has reached a value of over $1.5 trillion. Pointing out that 60 percent of the ministry's budget is spent on efforts to increase exports, Bolat said: “Turkish Eximbank is providing $53 billion in export financing and export insurance support. Turkish Commercial Bank is providing 75 billion lira in export rediscount loans by the end of this year. Export Development Inc. (IGE) has provided nearly 190 billion lira in guarantee support so far.” gave his assessment.
“We will exceed $40 billion in our bilateral trade with the US next year”
Recalling that the common goal with President Recep Tayyip Erdoğan during the first term of US President Donald Trump between 2017 and 2021 was to achieve an annual mutual trade of $100 billion, Bolat explained that foreign trade between the two countries was $19 billion to $20 billion during the said period, and this figure increased to $38 billion due to rising energy prices due to the impact of the Russia-Ukraine war. Explaining that Türkiye is buying liquefied natural gas (LNG) from the US, Bolat said: “In this sense, our mutual trade exceeded $35 billion last year. This year's progress shows that it is currently about $37-38 billion, but with the new agreements in LNG trade, we will exceed $40 billion next year.” he said.
Bolat stated that Türkiye's exports to the US last year were $16.5 billion and imports were $18.8 billion, with a foreign trade deficit of about $2.5 billion. Pointing out that the figure in question was acceptable given the US's intensive energy and natural gas sales to Turkey, Bolat said: “As a country, we are heavily involved in the US market and export products such as jewelry, textiles, ready-made clothing, machinery, food, agriculture, iron and steel, automobile and sub-industries. Our imports from the US include LNG, scrap iron, machinery, organic chemicals, pharmaceutical products and passenger aircraft. The leaders of both countries have a goal fixed.” of $100 billion.” They are bound,” he said.
Bolat explained that they are moving towards this goal and that the increase in mutual trade will continue towards $60 billion after next year. He explained that since 2020, they have supported 24 foreign marketing activities related to the US under the International Competitiveness Development (UR-GE) framework and continued:
“177 companies operating in the United States benefited from unit rental assistance, 119 companies from advertising assistance, and 158 companies from TURQUALITY assistance. 42 advertising and marketing campaigns for 41 different sectors and product groups were supported. This year, 283 international trade fairs were included in the scope of support, including individual participation. General and sector trade delegation programs were organized in Los Angeles and New York. We continue our support for e-export The operational TOBB Trade Center in Chicago was founded in 2020 and has been supported as part of our Foreign Logistics Support Network (YLDA) projects since October 21, 2022.”
“More than 2,000 US companies produce in Turkey”
Bolat stated that in the services sector, 77 individual trade fair participations were supported, as well as 2 trade delegations and national participation organizations for the USA, and that the relations between Turkey and the USA are not only in the field of goods, services or trade, but also have impressive figures in the fields of energy and defense. Stating that there is about $15.7 billion in direct investment from the US to Turkey, Bolat said: “More than 2,000 US companies produce, export and provide jobs in Turkey. There is also $13.4 billion in direct investment from Turkey to the US. This is done by companies of larger scale. We will cease our trade, investment and energy cooperation with the US, which is within the framework of our remote and destination strategies expand higher numbers.” he said.
Bolat informed about the tariffs imposed on imports from Turkey as part of the measures taken by the US on April 2, saying:
“Compared to the tariffs applicable to Far Eastern countries, we considered the tariffs on Türkiye to be the best of the worst, but within this framework we are conducting discussions about protecting the rights and interests of our country. Given that the United States has a surplus in foreign trade with Türkiye, we have great expectations for the United States. In this period of increasing global economic fluctuations, we attach great importance to trade diplomacy. Since taking office, we have had meetings, meetings, meetings of the Joint Economic Commission and Meeting with the USA “With the agreements we have signed, we are pursuing a decisive policy to protect our country’s interests in foreign trade.”
At the end of the program, companies were presented with awards in various categories. In this context, the “Fastest Export Developing Member Award” was awarded to Nurus, the e-Export Achievement Award to Unox Valve and the Technology and Innovation Award to Intecro Robotics.
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