ASIA INCREASES ITS INFLUENCE ON THE WORLD ECONOMY

DEİK’s business diplomacy activities, which we have been conducting since 1992, carry Türkiye’s relations with the region to a higher level day by day

Murat Kolbaşı, elaborated on the economic relations between Türkiye and Asia-Pacific countries and DEİK’s Asia-Pacific activities for Business Diplomacy readers.

WHAT ARE YOUR THOUGHTS ON THE ASIAPACIFIC REGION? WHAT KIND OF A REGION IS ASIA-PACIFIC?

Asia-Pacific was one of the most economically important regions of the world before the 1800s. During this period, the region prospered thanks to agriculture and maritime trade. However, after the 1800s, with the Industrial Revolution, commercial activity in the East shifted to the West, especially the US and the UK. With the technological and industrial growth of the West, Asia’s economic influence declined. In the late 1980s, with the industrial and technology-oriented development moves of Japan, South Korea, and China, Asia began to rise again. Although the fall of the Berlin Wall in 1989 and the dissolution of Russia brought the West to the forefront, Asia, under China’s leadership, is emerging as a strong economic bloc. On the other hand, Türkiye is a strategic bridge between Asia and Europe. Throughout history, important trade routes such as the Silk Road passed through Türkiye, increasing its importance as a trade center. Today, our country maintains the same significance due to its location. Asia, on the other hand, is proliferating economically and increasing its influence in the world economy.

WHAT IS THE RELATIONSHIP BETWEEN TÜRKİYE AND ASIA PACIFIC COUNTRIES?

Türkiye is historically a Western-oriented country, with 50 percent of its exports going to European Union countries. Türkiye’s industry, agriculture, and tourism are integrated with the West, but this does not diminish interest in Asia. In recent years, Türkiye has been seeking diversification in global trade dynamics, and the Asia-Pacific region is becoming more important in this regard. The “Distant Countries Strategy”, a new step in Türkiye’s foreign trade policy, aims to improve trade relations with countries in the Asia-Pacific region. Under this strategy, the Ministry of Trade provides incentives for Turkish exporters to trade with 18 distant countries, 11 of which are located in the Asia-Pacific region. Turkish Airlines (THY), as the airline flying to the most destinations in the world, is strengthening Türkiye’s global trade links.

THY’s strong presence in Asia contributes significantly to Türkiye’s trade relations with this region. As DEİK, we also support Türkiye’s trade and diplomatic relations with Asia. The business diplomacy activities that we have been conducting since 1992 are carrying Türkiye’s relations with the region to a higher level day by day. Free trade agreements with countries such as Malaysia, Singapore, and South Korea are increasing Türkiye’s exports to this region. Especially with China, Japan, and South Korea, mutual investments and trade relations have strengthened.

HOW DO ASIA-PACIFIC COUNTRIES VIEW TÜRKİYE?

Asian countries’ interest and investments in Türkiye have increased in recent years. Asia’s 10 ASEAN countries and economic cooperation agreements such as the RCEP, which was established in 2022, offer opportunities for Türkiye to increase its trade with this region. However, Asia-Pacific countries look at Türkiye from different perspectives. Türkiye has strong historical and cultural ties with countries such as South Korea and Japan. Our trade relations with these countries are supported by deeper and long-term cooperation. On the other hand, relations with Malaysia, India, and China have also developed rapidly in recent years. According to 2023 data, our foreign trade deficit with the Asia-Pacific region is 77 billion dollars. This deficit shows that Türkiye needs to develop a more balanced trade strategy with the region. In addition, it should not be ignored that some products exported from Türkiye are not actually of Turkish origin, but are produced by international brands.

Therefore, we need to improve our trade relations in the region by better analyzing import and export processes. In addition, cultural differences and prejudices can be an obstacle to trade relations. Strengthening cultural and social ties between Türkiye and Asian countries will further economic cooperation. We should see Asia not only as a commercial market, but also as a region where cultural and artistic relations can flourish.

WHAT CAN YOU SAY ABOUT DEİK’S BUSINESS DIPLOMACY ACTIVITIES WITH ASIAN COUNTRIES?

The Foreign Economic Relations Board (DEİK) has an important role in Türkiye’s global trade policies, especially in the Asia-Pacific region. DEİK acts as a bridge between Türkiye and Asia-Pacific countries in business diplomacy activities. On the other hand, it plays a leading role in establishing long-term and sustainable business relations with countries. Turkish businesspeople who want to do business in Asia have the opportunity to meet with ambassadors and trade attachés in the region through DEİK. This increases Türkiye’s commercial presence in the region and boosts the competitiveness of the business world on a global scale. In sum, DEİK is one of the most effective institutions that strengthen Türkiye’s trade relations with Asia-Pacific. Thanks to DEİK’s guidance, the Turkish business community is better able to capitalize on opportunities in the region and achieve long-term success.