“We need a transformation agenda in accordance with the EU Green Deal”
10.03.2021 / Ankara
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) President and the Union of European Chambers of Commerce and Industry (EUROCHAMBRES) Vice President M. Rifat Hisarcıklıoğlu,speaking at the Turkey-EU High Level Economic Dialogue event organized by video conference of EUROCHAMBRES Turkey-EU Business Dialogue (TEBD), stated that they see the Green Deal and the green economy as a new model for Turkey's growth and transformation, “We need a transformation agenda in accordance with the European Union (EU) Green Deal. We believe it would be useful for the EU to provide financial assistance to support this process.”
Emphasizing that Turkey and the EU are partners and allies, Hisarcıklıoğlu said, “Both Turkey and the EU have achieved a lot in economic integration. As the business community, it is our duty to add more chapters to our long-standing partnership.”
Hisarcıklıoğlu said that in the past, the EU and the Customs Union have protected Turkey from South East Asian competition, helping it to provide employment and grow.
Pointing out that close economic contacts with the EU have transformed Turkey into a dynamic, industrial, functioning market economy, Hisarcıklıoğlu reported that about 50 percent of Turkey's exports go to the EU and that the Union's share of foreign direct investment in Turkey is 62 percent.
- Emphasis on “new model for Turkish economy”
Hisarcıklıoğlu noted that the EU is trying to renew its existing production capacity with new low-carbon technologies. “Turkey needs to make a similar move. I think it's time to talk about the Green Deal and the green economy. We see this as a new model for Turkey's economic growth and transformation”
Hisarcıklıoğlu stated that bilateral trade and direct investments, as well as European value chains, pass through Turkey, “Therefore, we need a transformation agenda in accordance with the EU Green Deal. It's an expensive process. We believe it would be useful for the EU to provide financial assistance to support this process. The EU will also benefit from this step. European value chains or potential ones operating in Turkey in the world after the Covid-19 pandemic will want to see a green transformation program in Turkey.”
Noting the scope of green transformation, Hisarcıklıoğlu said, “A green transformation program seems essential, including smart, sustainable cities that work with energy transition and efficiency, digital transformation and the EU's Green Deal. The continuation of Turkey's economic and social transformation is good for European security in general and energy security in particular.”
Hisarcıklıoğlu stated that a mutually beneficial green transformation agenda appears to be a new positive agenda item between the EU and Turkey, adding that Covid-19 has unexpectedly raised new hopes for a positive agenda between the EU and Turkey.
- EUROCHAMBRES President Christoph Leitl
Christoph Leitl, President of the Association of European Chambers of Commerce and Industry (EUROCHAMBRES), said that business dialogue is one of the rare bridges between Turkey and the EU, adding that it should be strengthened and awareness raised.
Leitl recalled that they carried out a similar program in Istanbul two years ago with the participation of ministers and EU Commission members, explaining that the project's budget has been increased, they will organize more programs and will play an important role in developing bridges between the two sides.
Stressing that Turkey is an economic member of the European family, Leitl said, “EUROCHAMBRES fully supports the updating of the Customs Union.”
Pointing out that the negotiations will be facilitated by setting aside political intentions and focusing on common values, Leitl stressed that the Customs Union update is, “in the best interest of both parties.”
Leitl reminded that imports and exports between Turkey and the EU amount to about $70 billion annually, explaining that European companies do not only make large investments in Turkey, but also small and medium-sized companies which provide innovation in the country.
Leitl added that Europe wants to improve relations with Turkey, and that TOBB and EUROCHAMBRES will contribute constructively by supporting EU-Turkey relations.
- Deputy Minister of Commerce Batur
Deputy Trade Minister Gonca Yılmaz Batur stressed that Turkey and the EU are key strategic partners and will continue to be so, adding that Turkey's strategic goal is full membership in the EU.
Batur pointed out that the trade volume between Turkey and the EU has more than increased more than 4 times since the Customs Union came into force, and that companies in Turkey and Europe have benefited greatly from free movement.
Stating that the EU has made much more comprehensive trade agreements with other countries, and countries around the world have signed much deeper regional trade agreements, Batur said that the Customs Union is an agreement consisting solely of trade in goods and should be updated.
Batur noted that cooperation in the field of the EU Green Deal is very important, and that this will increase the competitiveness of the sectors and ensure the development of value chains.
Stressing that the EU must implement very comprehensive policies, reforms and measures for the Green Deal, Batur explained that all these reforms require a huge transformation and investment.
- Deputy Minister of Foreign Affairs Kaymakcı
Deputy Minister of Foreign Affairs and Director for European Union (EU) Ambassador Faruk Kaymakcı said that internal dialogue meetings on high-level economy, transport and energy should be held, adding that some EU member states are exploiting their veto rights.
Stating that Turkey is a member of the European Economic Community, Kaymakcı stated that Turkey is held in an unfair position on sustainable financing and is unfairly included in the Annex 1 list when looking at the United Nations (UN) Climate Change Framework.
In this case, Turkey will not have access to Green Climate financing, Kaymakcı said, but reminded that Turkey is subject to high-level commitments on gas emissions.
Kaymakcı stressed that Turkey has a similar situation with the countries that have access to this financing and said that they expect a fair solution to this issue.
Kaymakcı stated that they are aware of how important Turkey is in terms of supply chain and that they consider updating the EU Customs Union would be a very good solution.
“Turkey and other European economies are interconnected. We should try to follow common policies as much as possible,” he said.
Kaymakcı stated that the issue of visas is still on the agenda when talking about the Customs Union, and stressed that Turkish business deserves free movement, despite the fact that there are 6 items left to be completed.
“We need to make it easier for business. So that they can trade freely,” he said.
- Head of the EU Delegation to Turkey Meyer-Landrut
Ambassador Nikolaus Meyer-Landrut, head of the European Union (EU) Delegation to Turkey, thanked those who contributed to the event for organizing such an event despite current conditions.
Meyer-Landrut reminded that International Women's Day is celebrated on March 8, saying it is extremely important to include women in decision-making in both the public and private sectors.
“It's very important for women to join the workforce,” Meyer-Landrut said, adding that otherwise would mean losing 50 percent of gross domestic product (GDP).
Meyer-Landrut said women will be at the forefront of combating climate change in the future.
Emphasizing that the business world and the private sector in Turkey have made a great contribution to the Green Deal, Meyer-Landrut said, “This makes me hopeful for the future.”
Meyer-Landrut said there is a very old history and close economic dependencies between Turkey and the EU, stressing that this makes both sides more connected.
“The EU Green Deal is not just about the environment. The Green Deal is our (EU's) biggest strategy,” he said. Meyer-Landrut noted that the EU is the largest trade partnership in the world and works with 74 countries.
“There is intense cooperation and organization between Turkey and the EU business community and its private sectors. When we say economic integration, there's a lot of work to be done together. Turkey should be part of the Customs Union and part of the EU's more sustainable green economy as an EU member candidate,” he said.
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