Kursat Tuzmen is undoubtedly one of Turkey's most popular ministers. His charisma and well-known passion for swimming make him a recognized figure far beyond his political career.
Convinced that there is still much to be done in his country, he also acknowledges the significant progress made in the last two decades, which has made Turkey a stable country and a beneficial destination for foreign investment.
– What measures will the Government take to continue increasing exports?
We are experiencing a steady increase in exports. We sell over 17.000 different items to approximately 50 countries.
The Ministry of Trade also handles customs matters and public works projects abroad. In this regard, we had to prepare staffing levels for a five-year period, from 1997 to 2002.
Knowing the country's weaknesses and strengths, the goal is to develop a sound policy. We focus on specific sectors and seek their development, such as automotive, textiles and clothing, electrical, electronics, and software.
On our side, we have the significant population of our neighboring countries. Within two hours of Ankara live 320 million people, and within four hours, 1.000 billion. Logistically, this is an advantage. The problem is the low per capita income of these countries, but by increasing trade with them, we can raise their income levels. We consider neighboring and surrounding countries to include states such as Algeria, Tunisia, Egypt, Sudan, the United Arab Emirates, Jordan, and Georgia, with whom we have done very important work. With them, we previously had 3% of our per capita foreign trade, and during my tenure at the Ministry, this figure reached 7%. Currently, it stands at 11%.
Trade between Spain and France is very important for the Spanish state. If we look at Germany, 80% of its foreign trade is with its neighbors. We should do the same and increase our trade with our closest countries.
Geographic location, shared language, and common history form a fundamental basis for the countries of the region. We must also remember that 63% of our exports go to the EU and 14% to the United States.
– Who are Turkey's main trading partners within the EU?
Germany is in first place, followed by Italy and France. Spain has done a very positive job and has significantly improved its foreign trade.
I inaugurated Expotecnia in 1999; it was fabulous, with great projects and great benefits, through the organization of trade missions and fairs, although we usually concentrate on the environment of the countries I mentioned earlier.
– In the field of investment, to what extent is attracting foreign capital crucial for the country's future economic development?
Turkey has endured a series of dictatorships that have prevented it from becoming a stable country. In the 80s, a restructuring took place, and a liberal policy was implemented, under which the Ministry focused on developing investment. Since 1989, Turkey has opened up to investment, and significant progress has been made during these years; however, foreign investors have not yet ventured into the country.
It was necessary to go through a transition period, to bring about change, and to establish a stable and powerful one-party government. Coalitions have never been very effective. Now, we have that one-party government, and the economy is stabilizing.
Promoting foreign trade is always positive for economic development. It creates an environment of trust, which in turn increases local, national, and domestic trade. When local businesses have confidence in their country, foreign businesses do too. We would like to see increased interest from foreign businesses in Turkey. Spain's investment in the country currently stands at 1,6%.
– Do you believe that the country currently offers a guarantee not only to the merchant, but also to the investor?
Türkiye is ideally positioned for foreign trade. The shares of the companies undergoing its privatization program are very cheap.
From 1984 to 2002 we made a lot of progress, but we also went through difficult days: earthquakes, the Russian crisis, the banking crisis and a costly process for joining the EU.
Forty-five years ago, we were a candidate country for EU membership, just like Spain, Portugal, and Greece. Per capita income in Turkey was higher than in Greece and Portugal and almost the same as in Spain.
After 45 years, we want to pursue the right policies. Turkey won the Eurovision Song Contest, and the current Miss World titleholder is Turkish. These achievements may reflect how Turkey is perceived from abroad…
– Do you think that the entry of the ten candidate countries into the EU in 2004 will undermine investment and trade opportunities for Turkey compared to the other member countries?
Of course there will be a movement towards those countries. It's effective for EU member states.
Türkiye has a foreign trade volume of $40 billion. This represents a 36% increase, as it was $35 billion last year.
Consumers want a quality product at a good price. Turkey has 70 million inhabitants, making it an attractive market for investors. Furthermore, a new law on foreign investment is currently being drafted. In provinces and regions with a per capita income below $1.500, we offer a range of incentives.
Türkiye has the ability to compete with factors such as skilled labor and a strong business strategy, through state intervention and influence.
If we take advantage of the factors that are in our favor, the EU will continue to trust us.
– Which sectors would you recommend to Spanish investors?
Textiles and clothing, electricity, electronics, chemicals, aviation, agriculture and the food sector.
Spain does a good job exporting fruits and vegetables. It would be interesting for Türkiye to learn from them.
– Not only to teach, but, as dictated by the CAP, to allocate all funds to the modernization of crops, soils and cultivation techniques.
Of course. We have the advantage that Türkiye is the ideal country for growing organic produce. We also have opportunities in the maritime sector, in the shipyards.
– What should this agricultural reform do to make the sector competitive and prevent rural exodus?
Until 1983, 76% of exports consisted of land for agricultural products and 16% of industrial products. Now, 12 or 14% of exports are agricultural products and 88 or 90% are industrial goods. We have therefore undergone a significant transformation.
– In short, what issues does Türkiye still need to address to comply with EU standards?
We have reduced inflation to 27% in a short time and that is fundamental.
Türkiye needs to do its homework very well to join the EU. If we can raise the standard of living of Turkish citizens to European levels, it will be very positive.
We need reforms in health, education, research and development, and that can only be achieved in an environment of peace with our neighbors, fostering trade relations.
– Do you think Türkiye will be in the EU within about 30 years?
I'll answer with a joke. Recently, we were at an orientation meeting and we were talking about our relationship with the EU. Our interest was palpable, but it was said that Turkey would join the EU after Australia, instead of Austria. I understood the phonetic mix-up and replied, "It's not a big deal."
It doesn't seem fair to us, but it's just a matter of time. It's true we have flaws, but the governments coming in now aren't perfect either. I believe 2004 will be a decisive year, one that will put our sincerity to the test.
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