Georgia’s role in Turkish-Russian agriculture crisis

Of the 10 million tons of tomatoes it produces annually, Turkey exports 400,000 tons, with the Russian Federation being the top importer with 300,000 tons. In 2007 Turkey exported 34 percent of its fresh fruits and vegetables to the Russian Federation. Out of Turkey's fresh fruit and vegetable export revenue of $1.5 billion in 2007, $510 million was earned from imports to the Russian Federation while $600 million came from imports to European countries. In the first five months of 2008, Turkey's fresh fruit and vegetable imports to the Russian Federation amounted to $298 million.

The problem Turkey is having with the Russian Federation with respect to insecticide residue on products may rear its head in regards to the European Union starting in September 2008. Although the Turkish Ministry of Agriculture has repeatedly declared that the standards applied in Turkey with respect to using insecticides are in harmony with the EU codex, the EU countries do not currently implement a common standard. However, such a common standard will start to be implemented within the EU starting in September 2008. If the necessary measures are not taken, we may encounter problems with the EU. Turkey will start to export grapes in two months. If an expedient solution cannot be found, the grape exports may pose problems as well.

According to the demands of Russian officials, Turkey should be able to submit a product monitoring schedule to them that shows the origin of products and the wholesalers or other intermediaries involved in the sale of the products. This can be done only by implementing a bar-coding system among the producers. With a view to making Turkish fresh fruit and vegetables conform to exportability standards, the Turkish Ministry of Agriculture and Rural Affairs is intent on ensuring that producers keep records of where their products are produced and which agricultural chemicals are used. However, it is said this project may bear fruit only after six months.

A technical perspective is being employed in assessing the Turkish-Russian agriculture crisis. Viewed from such a perspective, there are some points the Russian Federation complains about with good reason. However, the political aspects of the crisis and the Kremlin's reflexes, too, should be taken into consideration. Indeed, the Kremlin has started to use its "economic interests" when it wants to voice the problems it is having with any country. We have witnessed how it used the natural gas factor against some countries -- Ukraine, Georgia, etc. Now, it may be using this agriculture factor in order to make Turkey hear its case with respect to certain issues. Indeed, given the fact that the Russian Federation imports the fresh fruits and vegetables produced by Turkish producers from Adana, Hatay and Gaziantep via Syria with special considerations made for them at customs, there may be political reasons rather than technical ones for raising its voice about imports from Turkey.

The free trade agreement signed between Turkey and Georgia on Nov. 21, 2007 during President Abdullah Gül's visit to this country may be disliked by the Kremlin, though it has yet to enter into force. This is because the Russian Federation has been trying to corner Georgia by not buying main export goods -- wine, mineral water, etc. -- from the latter. Under these circumstances, the free trade agreement will boost economic and commercial relations between Turkey and Georgia and at the same time save Georgia from being throttled by the Kremlin. Indeed, this agreement's scope is much more comprehensive than the one Turkey had concluded with Bosnia and Herzegovina. It contains some provisions that are against Turkey's interests in that it covers agricultural products and agriculture-based products such as wine and it is obvious that this will bring economic relief to Georgia.

Exports of fresh fruits and vegetables from Turkey to the Russian Federation are concentrated in the January-April period. In May, agricultural products produced in the fields rather than in greenhouses enter the market, and these products have fewer chemicals. This crisis has emerged at a time when lesser amounts of chemicals are used on agricultural products; and exports tend to slow seasonally. This may hint at the Russian Federation's attempt to block the Turkish Parliament's ratification of the free trade agreement between Turkey and Georgia.