Union of Chambers and Commodity Exchanges of Turkey

The economic summit that will bring together the Turkish business world with the Asian-Pacific market with its 3 billion population and 5 trillion USD volume, the 32^nd CACCI (Confederation of Asian Chambers of Commerce and Industry) Conference has begun in İstanbul at the Çırağan Palace. The two-day Conference aims to promote cooperation and trade between member states.

On the first day of the conference, TOBB President and CACCI Vice President M. Rifat Hisarcıklıoğlu held a press conference along with CACCI President Jemal Inaishvili and Samir Modi of India, who will assume the presidency of CACCI in the next term.

In his speech, Hisarcıklıoğlu pointed out that 60% of the growth in the world economy is driven by the Asia-Pacific countries, “The 2018 growth average is 5.6% and the expectation for 2019 is 5.4%.

Global growth for the same period is 4%. So it seems that Asia-Pacific will continue to grow faster than the rest of the world. Likewise, the share of the region in the global trade volume has increased from 28% 10 years ago to 30% today. They import 5.2 trillion USD a year. Our share of this is only 12 billion USD, just 0.024%. On the other hand, Asia Pacific countries are investing 470 billion USD internationally annually. We don’t even receive 1 billion USD a year.” Hisarcıklıoğlu pointed out that they can only attract only 7 billion USD FDI from these countries. “In effect, Asia-Pacific isn’t even on our radar and neither are on theirs. Here we want to change this outlook, expand our horizons. Currently, Turkey's exports range of about 2,900 kilometers. Mexico's export range is 4,000 km, Brazil's 5,000 km, even Israel's export range is 5,600 kilometers. So we have to expand our horizons and increase our range. We have a lot of ways to go.”

- New markets are needed

Pointing out that the Asia Pacific Region encompasses 40% of the world's population, 30% of the global trade and 23% of the world economic volume, Hisarcıklıoğlu stated that a World Bank report showed that the same companies in Turkey sell the same goods to the same markets, “Years have passed and the situation is still the same. We need to move into new markets. Here we want to change this outlook. To this end we cooperate with the Confederation Asia-Pacific CCI, largest business organization in Asia. CACCI represents about 3 million companies from 28 countries. We, as Turkey, with businessmen in the Asia-Pacific Region, want strong economic integration. We recognize the growing importance of the Asia-Pacific region for the global economy. We are working to bring about a synergy from which everyone will benefit. Trade and economic relations between Turkey and the countries of the region are not at the level we desire. Only 7% of our exports go to the Asia-Pacific, while they make 24% of our imports.

There is a similar situation in investments. For the 2000-2017 period, the last 17 years, Turkey received 150 billion USD in international investment. Asia-Pacific countries have a share of only 5%, 7 billion USD, in this figure.

As TOBB, we consider CACCI members as strategic partners.

Our vision is to provide a strong and lasting economic integration between the business world in the Asia-Pacific region and the Turkish business world. CACCI Conference being hosted by Turkey has made it possible to bring the business umbrella organizations and companies of the Asia - Pacific region countries with us. This will increase visibility of Turkey in the region. It will help us to get closer to the Asian countries where we have been unable to establish a strong economic relationship to the extent we want yet.”

- The center of gravity of the economy is changing

Hisarcıklıoğlu stated that the 21^st century is expected to be “the Pacific Century.” He said that the Mediterranean is the ocean of the old world, while the Atlantic is the ocean of today and the Pacific is the ocean of the future. Hisarcıklıoğlu stated that the center of gravity of the world economy is shifting to Far East Asia. On the one hand you have innovation and technology giants like Japan and Korea, on the other are emerging markets such as Pakistan, Indonesia, Vietnam, Philippines. A region where all kinds of products are produced at different qualities and scale. With over 3 billion consumers, the largest global market is here. Both economic growth and the increase in imports of goods and services are above the world average.

Therefore, the Asia Pacific region has a decisive power for the world economy. In this period of changing global balances, the Asian Pacific economic summit being held in Turkey is of great importance. Turkey provides 100 billion USD worth of goods, 43 billion USD of service exports. It is the country that has the largest industrial production capacity between Italy and China. It is the 6^th largest supplier to the European Union. We want to show the Asia-Pacific business Turkey's great potential. We aim to increase the trade and investments between us, to establish new cooperation and partnerships.

We are working together on 5 basic areas. First; Development of entrepreneurship for women and young people.

Because it is entrepreneurship that brings prosperity. Turkey was very successful in the last 10 years, especially in increasing woman entrepreneur numbers.

I would like to congratulate our Women and Young Entrepreneur Committees for their great efforts. The number of women entrepreneurs which was only 75,000 10 years ago increased to 110,000 today. Half of all woman entrepreneurs from Turkey emerged in the last 10 years.

The second issue is evaluating opportunities for cooperation in the sectors of health, education, tourism, information and communication technologies. Especially health, education and tourism are rapidly developing sectors of our country; we have great business potential here. Information-Communication is the technology that shaped the 21st century. There will be 2 types of countries in the future; those who produce technology and those who buy it. We want to be in the first group.

Third subject is cooperation in the fields of food, agriculture, water, energy and environment. All of this is critical to the continuation of life. Even in the future, they will become matters of national security.

Fourth issue is carrying out joint efforts to develop SMEs. Because SMEs are the mainstay of economies. Dynamism, innovation, competition in the market, always possible with SMEs. We will talk about cooperation and partnership between our SMEs.

Our fifth and last subject is the facilitation of trade. This will enable the detection of commercial barriers between us and their removal. Today, the biggest threat to global economy are protectionism and obstacles. The biggest loss is for developing countries like us. Increases trade, prosperity and development. Those busy with trade have no time for war. The development of trade between countries is the shortest route to global peace.”

- Wide participation

Hisarcıklıoğlu, reporting that around 400 businessmen, bankers and professional organization managers from 28 countries have convened, said that for the first time the Turkish business world met with the Asia-Pacific business world with such wide participation. Hisarcıklıoğlu mentioned that they provided an environment in which they could establish strategic partnerships with new business and investment opportunities and that successful entrepreneurs and chambers in the Asia-Pacific region would be selected and rewarded. He congratulated the finalist Zeynep Erkunt Armağan from Aegean Region Chamber of Industry and Erkunt Tractor.”

Hisarcıklıoğlu, Inaishvili and Modi answered the questions of the members of the press after the meeting. Asked whether there were any plans for ​​trading with national currencies, Hisarcıklıoğlu said, “This is not our decision, but of governments. Countries have been making efforts to trade with their own money. There are countries with which we have signed agreements as well. If this is developed trade could be facilitated. Everyone in the world wants to be rid of this pressure.”

- CACCI President Jemal Inaishvili

CACCI President Jemal Inaishvili stated that purpose of this conference is to draw the attention of the CACCI countries of the Far East to Turkey and went on:

“I see that Turkey has become even stronger. Every time I come I witness Turkey's economic empowerment. Today, Turkey is a leader in a much wider region. It plays a very important role. It plays an important role in the world economy, not just in its own region. We need more Asian-Pacific participation. There is a lot of potential in terms of trade and investment.

We see that countries with economic growth are Asian countries. The Turkish economy and the business world have very smart business people. Whatever the economic situation of the business world, a solution is found. Turkey needs to take advantage of opportunities. We believe that this conference is also taking on an important role to draw more attention to Turkey.”

Regarding the question of whether or not to trade with national currencies, Inaishvili replied, “In the future, we will see that agreements, contracts are made through national currencies.”

- CACCI Vice President Samir Modi

CACCI’s future president, CACCI Vice President Samir Modi stated that they foresee that, within a few years, direct investments of Asia-Pacific countries to Turkey will triple, “I'm a true lover Turkey.”

As a part of the summit, various panels were held on women entrepreneurs, information and communication technologies, tourism, health and education, food and agriculture, water, energy and environment.

Various companies promoted delicacies unique to Turkey at their booths during the summit which will continue on Saturday November 24 with various panels.