Union of Chambers and Commodity Exchanges of Turkey

The TOBB President Hisarcıklıoğlu stated that, as representatives of the G-20 countries’ business worlds, they have suggestions to and requests from their governments.

Stating that their first request from the governments is that they focus on the roots of the issues of commodity markets, the TOBB President said, “We call on the G-20 governments to focus on the changing dynamics of the market and possible problems. We want to emphasize the importance of the reformation of the supply-demand balance.”

The second suggestion, Hisarcıklıoğlu said, is that transparency of markets be increased so that market players questions are addressed and that G-20 governments focus on the detailed studies on the pricing mechanisms of specific commodities.

- “Regulations to strengthen the link between actual trade and financial trade should be implemented”

Another important issue that needs to be addressed with policy implementation on a global scale is the creation of a regulatory framework to prevent the abuse of financial instruments; the TOBB President Hisarcıklıoğlu stressed and went on, “It is important that the link between actual trade and financial trade of certain commodities be strengthened. Our request is for the regulations to be implemented in global coordination and is enforceable.

- “Ensure level playing field for commodities”

The fifth issue of the previous day was the need for a level playing field in commodity markets for all participants and the facilitation of investments, Hisarcıklıoğlu said and went on, “A mechanism to ensure that everyone on the planet has equal access and equal share of commodities on the planet.”

Another point all the representatives agreed upon was the need for innovative solutions to address the issue of rapidly increasing demand. TOBB President Hisarcıklıoğlu said, “We must remember that all solutions discovered will help the world. In order for the private sector to invest to address the supply demand a foreseeable investment environment must be created. Some parts of the commodity markets are being too harshly regulated.

That the regulations vary among the countries that implement them and rapid changes is deterrent for investors. It is of the utmost importance that the G-20 governments enable physical investments and agree upon an enforceable framework that can be used globally.”

- “Supportive solutions regarding starving and destitute countries”

Emphasizing that the G-20 governments, while dealing with these issues must also produce solutions to help countries struggling against famine and poverty due to problems in the supply of food and energy, the TOBB President said, “Countries which need assistance for this issue, which exacerbates social tensions and is emotionally damaging, must be supported with low cost, derived instruments designed to cope with price hikes and supply problems.”

Hisarcıklıoğlu stated the need for the implementation of global solutions by moving collectively and that Turkey stands ready to provide whatever support needed during the next term to ensure consistency in commodity markets.
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