NAVIGATING GLOBAL TRADE DYNAMICS

“Our aspiration is to emerge as key players in the new era of global trade, striving to secure a more significant share in the global market”

Nail Olpak, the President of DEİK, has shared his expectations for 2024 while assessing global-scale business diplomacy activities and the agenda with the readers of Business Diplomacy.

COULD YOU TELL US ABOUT YOUR VIEWS ON THE POSITION OF TÜRKİYE IN TERMS OF GLOBAL TRADE IN 2024?

In 2024, Türkiye is poised to achieve positive outcomes, even in the face of global challenges. We anticipate a decline in inflation due to the implementation of the disinflation program, and we expect contributions to growth through policies that promote production, investment, and exports. Anticipating increased attention from foreign investors leading up to the local elections, we expect a surge in both portfolio investments and direct investments, fostering heightened economic activity. This dual effect is poised to assist in alleviating our foreign exchange gap and enable effective management of inflation-related expectations.

DEİK CONCLUDES 2023, A YEAR MARKED BY NUMEROUS BUSINESS FORUMS AND EVENTS. COULD YOU FILL US IN ON YOUR ACTIVITIES IN THIS REGARD?

At the Foreign Economic Relations Board (DEİK), we maintain a keen awareness of global trade dynamics through our 152 country, region, and sector-based Business Councils strategically positioned worldwide. Throughout 2023, DEİK successfully organized approximately 1,500 business diplomacy events, attracting the participation of Presidents, Ministers, diplomatic mission representatives, and business professionals. Organizing a myriad of events, including Business Forums, Round Table Meetings, and B2B sessions, we have successfully facilitated connections for the Turkish private sector in global economic relations. Our efforts span the globe, fostering trade opportunities with key partners ranging from the USA and Africa to China, the UK, Japan, and Russia. We find ourselves on the brink of a new phase characterized by a modest decline in global economic growth, the persistent impact of global inflation, and notable transformations unfolding in both trade and investments.

As integral members of the Turkish business community, it is imperative for us to gain a comprehensive understanding of the current global landscape. Proactively adapting to ongoing transformations, exploring new markets with high-value products, and seizing opportunities through investments aligned with prevailing trends are essential aspects of our strategic approach At DEİK, we unlock the potential of the Turkish business world for the future by offering valuable insights through specialized reports focusing on processes of change and transformation, alongside our dedicated working groups. Indeed, we refuse to be mere spectators in the process of change. Contrarily, our aspiration is to emerge as key players in the new era of global trade, striving to secure a more significant share in the global market.

“EXPORTING $1 BILLION TO EACH STATE”

Today, when we refer to the USA, we acknowledge a nation comprising 50 states, each with distinct dynamics. It boasts a population of just 330 million but commands a formidable economy, reaching 27 trillion USD. Hence, we have crafted our US action plan with a state-centered approach, recognizing the diverse social and economic dynamics inherent in each state. To ensure effective representation for Turkish companies already present in the US market or seeking entry, we’ve established 8 state committees (California, Florida, Illinois, Massachusetts, New York, Tennessee, Texas, Virginia) under the umbrella of DEİK/Türkiye-US Business Council (TAİK). To enhance the effectiveness of our state committees, we intend to conduct various business diplomacy activities in three states in 2024, supplementing our annual conferences. This step-by-step approach to establishing a state structure is geared towards our ambitious goal of exporting a minimum of 1 billion USD to each state. Our objective is to swiftly achieve our bilateral trade target of 100 billion USD by fostering a sustainable relationship between Turkish business representatives and the prominent business and political leaders in each state.

“WE ARE COLLABORATIVELY ESTABLISHING NEW PLATFORMS FOR AFRICA IN PARTNERSHIP WITH THE THIRD COUNTRIES”

Our relations between Türkiye and Africa persist through a comprehensive strategic partnership grounded in ties of friendship and brotherhood. We hosted the Türkiye-Africa IV. Business and Economic Forum in Istanbul on October 12-13, 2023. During the Forum, a total of 9,800 business meetings and G2B sessions were conducted, leading to the signing of cooperation agreements with four organizations. We successfully secured new business partnerships totaling around 245 million USD, primarily in infrastructure and construction. Additionally, collaborations extended into diverse sectors such as food and agriculture, digital technologies, and manufacturing. In line with the President’s policy of engaging with Africa, we intend to undertake numerous activities with our African counterparts, fostering an atmosphere of equal partnership and mutual benefit. In this context, as DEİK, we are establishing platforms to cultivate collaboration projects with third countries, with a particular focus on Hungary, Japan, France, Germany, and the UK, within the African continent.

“RCEP AND THE BELT AND ROAD INITIATIVE ARE THE MAIN AGENDA OF DEİK IN THE ASIAPACIFIC REGION”

Our ASEAN Working Group diligently monitors the developments of the ASEAN Regional Comprehensive Economic Partnership Agreement (RCEP). Negotiations for Free Trade Agreements (FTA) and agreement initiatives with the region by major economic actors such as the US, EU, and China are advancing swiftly. Strategically aligning ourselves with forthcoming agreements, we aim to position Türkiye as a pivotal investment, production, and export hub bridging the gap between the US-EU and the Asia Pacific region. To achieve these goals, we engaged in this year’s ASEAN meetings held in China and Indonesia. We are drawing nearer to the region through the Ministry of Trade’s “Far Countries Strategy” and the Ministry of Foreign Affairs’ “Asia Again” initiative. At DEİK, we emphasize the significance of China’s “Belt and Road Initiative” and actively monitor its potential impact on the trade and economic relations between the two countries. We also closely examine the collaboration opportunities that may emerge within the framework of this project.

“WE AIM TO INCREASE THE NUMBER OF COMPANIES IN FORTUNE 500 WITH DIGITAL TECHNOLOGY LEVERAGE”

Through the Digital Technologies Business Council established in 2022, we are currently undertaking a comprehensive study on the digital economy. Our committees, spanning 10 diverse technology fields, are actively engaged in this initiative. Our efforts are aligned with the objectives of transforming Türkiye into a technology hub and bolstering the number of technology-driven companies in the Fortune 500. Through our Higher Education Business Council, we annually coordinate national participation branded as “Study in Türkiye” at major sector fairs in Europe and America, occurring twice a year. This year, our International Technical Consultancy Business Council, in collaboration with our PPP Committee and under the coordination of the Ministry of Trade, successfully hosted the 7th Istanbul PPP Week. The event carried the theme “PPP: Investing in People, Environment, and Economy”. Our Health, Foreign Investments, and Logistics Business Councils are actively pursuing business diplomacy initiatives worldwide, maintaining robust engagement and momentum. Furthermore, a significant highlight for the World Turkish Business Council (DTİK) in 2023 was the 10th Kurultai, convened on September 15-16, featuring the presence of Recep Tayyip Erdoğan, President of the Republic of Türkiye. The Kurultai witnessed the participation of nearly 5,000 members from the Turkish Diaspora and Turkish friends representing 131 countries. Moving forward, our focus includes transforming brain drain into brain power through the “Young DTİK” project. Additionally, with the “Friends of Türkiye” initiative, we aspire to broaden DTİK’s sphere of influence by establishing a platform that unites influential business figures supportive of Türkiye and with sway over decision-makers in their respective countries.

WHAT ARE YOUR PREDICTIONS FOR 2024? WHAT KIND OF A NEW ERA AWAITS DEİK?

At DEİK, our initial step involves crafting distinct roadmaps for each country and region within our purview. This tailored approach also encompasses addressing individual sectors with precision. In the context of Europe, despite the annual trade volume between Türkiye and the EU reaching 200 billion USD, there is a pressing need for the swift modernization of the Customs Union. Currently covering only industrial and processed agricultural products, updating the Customs Union is crucial to align with the contemporary demands of trade. At DEİK, we actively communicate and elaborate on this matter during JETCO and Round Table Meetings with state leaders and EU country ministers. Our efforts also extend to lobbying activities aimed at advocating for the Turkish business community. Regarding the Schengen visa matter, we have advocated for the establishment of a distinct procedure for the business community and urged the streamlining of the process to enhance facilitation.

Türkiye’s green transformation stands as a pivotal facet of the Türkiye-EU strategic partnership. With the goal of achieving 53 percent renewable energy-based electricity generation by 2023, Türkiye is aligning itself with the EU’s strides in green transformation, notably through the implementation of the Border Carbon Regulation Mechanism. Our commitment includes actively enlightening the Turkish private sector and industrialists to swiftly embrace the green economy and undergo green transformation, adhering to the principles outlined in the EU Green Deal.