Union of Chambers and Commodity Exchanges of Turkey

Hisarcıklıoğlu stated that the economy, which revived with the increase in production, as well as reflected upon positively through the government’s employment support, “Lastly, as of the end of August, we provided 1.5 million additional jobs compared to the same period last year. The total number of people employed has reached 28.8 million and has reached the highest employment rate ever.” The TOBB President emphasized that exports also grew and noted that exports of industrial products in the first nine months increased by 10 billion USD compared to the first nine months of last year.

- Endeavors which have been effective in the growth of the industry

TOBB Chamber of Industry Council Meeting was held at TOBB Twin Towers with the participation of Science Technology and Industry Minister Faruk Özlü and hosted by Hisarcıklıoğlu. Speaking at the opening of the Council meeting, TOBB President M. Rifat Hisarcıklıoğlu said that recent important reforms have recently been passed in the economy and industry. Hisarcıklıoğlu said, “Many of the proposals we expressed in this Council were taken into consideration. For example, there was a disorganization in the management of the OIZs. These have been removed and a much more efficient structure has been established. Finally, the OIZs had a problem with the grass money. This was included in the latest legislative act thanks to the minister. As industrialists, the input costs on us were causing us a lot of trouble. We were under load of meaningless and useless fees, like the TRT share in the electricity. We have been saying this for years and we wanted it rescinded. We were able to have it reduced from 3.5% to 2%. This issue that has not been solved for years has finally been solved. A significant cost has been eliminated. There were stamp tax and estate tax payloads which were greatly reduced. Hisarcıklıoğlu noted that all these developments took place in the Production Reform Package prepared under the leadership of Minister Özlü. “With TRT share, real estate tax and stamp tax reductions, the financial burden of nearly 1 billion TRY was eliminated in 2017 from the backs of our industrialists. We thank the minister and his team for these historical steps that increase our industry's competitive power. One of the results of this is that, as of the first 9 months of this year, our industry grew by 5.6%. This rate was only 1.8% in the same period last year. Industry tripled its volume. The same is true for some of our core sectors. For example, in the first 10 months, home appliances sector grew by 8.2%. We increased production by 27% in the automotive sector.”

- Funds will return after the second half of January

Hisarcıklıoğlu emphasized the increasing turmoil in financial markets, both from domestically and internationally. Hisarcıklıoğlu, the US Central Bank, talked about the FED's interest rate increase, which is expected to take place in December and which is likely to continue. Trump's controversial tax reform is likely to become enforced by law, China's tight monetary policy, the economic collapse in Venezuela and the moratorium on external debt, the Saudi Arabia-Iran tensions in the Middle East, tensions with the EU and the US largest export market and funding source as well as closure of portfolio accounts for the end of the year as per usual, have all resulted in, Hisarcıklıoğlu stated, high exchange rates and difficulties for the real sector.

TOBB President Hisarcıklıoğlu said, “We think that the funds currently unavailable will return after the second half of January. In the meantime, we believe that the support that will enable us to survive the turbulent period with minimal damage will be given to our industry and the real sector. We, as the TOBB community, have always said Turkey is a big country. It is strong enough to overcome any problem. As long as we maintain our unity and our stability. Here, all the indicators, despite the turbulence in the world, show the strength of the Turkish economy, of our real sector. In the first month, our economy grew by 5%. Hopefully we will close the whole year with a growth of around 6%. The Turkish industry is maintaining a positive split on a global basis. But we will not fall into complacence. We will not ignore the risks. But we will not miss opportunities. By working together with the public and private sectors, we will bring the high growth rate back to our country.”

- Minister of Science, Industry and Technology

Faruk Özlü, the Minister of Science, Industry and Technology, said that the funds allocated to Turkey by the EU have been reduced by 105m euros for “deviating from European standards” and said, “What standards can the EU, playing deaf, mute and blind, talk to us about while we host three million refugees? What standards can the EU cite to us? When it’s themselves it is always protection and sanctions while it is priorities when it comes to us; that is no standard, but double standards.”

Explaining that they have detected 978 products in the first stage of domestic production of imported intermediate goods and industrial products and that this number will be increased up to 2,600 in time, Özlü encouraged the production in the chemical, pharmaceutical, electronics, machinery, equipment, food and motor vehicles sectors in Turkey.

TOBB Chamber of Industry Chairman Erdal Bahçvan also said that the council is one of the main platforms which bring production economy to the agenda.