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February 13, 2012
 
 
 
 
 
 

Ergün: Export problems stem from lack of relations, not quality or price

Minister of Trade and Industry Nihat Ergün is seen speaking at the 2010 Trade and Industry Roadmap organized by İŞHAD.
25 November 2009 / MEHMET ŞEFLEK, İSTANBUL
Minister of Trade and Industry Nihat Ergün has said business and diplomatic relations are key for bettering Turkey’s trade, adding that Turkey’s export problems are not due to low quality goods or uncompetitive prices.

Speaking at the 2010 Trade and Industry Roadmap breakfast organized by the Business Life Cooperation Association (İŞHAD), Ergün spoke about the importance of civil society organizations in bettering Turkey’s economic situation, especially noting that the private sector, civil society organizations and government ministries have an important part to play in creating stronger business relations between countries to open up new markets for Turkey.

Ergün, speaking about his ministry’s strategy of creating an economic and political environment with its neighbors that involved “zero problems, maximum business cooperation,” stressed that “[Turkish businessmen] need to analyze the outside market well. Hungary currently imports $107 billion and exports $107 billion, so it doesn’t have a trade deficit. On the other hand, Turkey has a trade deficit and only makes up $600 million of Hungary’s exports. Who are they buying from, and why are they buying it from there? We produce according to and meet European Union quality standards, have competitive prices and are a very nearby market. We produce just as well as any other country, but countries who are exporting to places like Hungary have better relations with them. It’s easy to see that good relations with firms, nongovernmental organizations and politicians will lead to better trade.”

Ergün also spoke about the importance of research and development for Turkey’s future and stated that “the development of knowledge and technology is the most important factor for improving the welfare of a nation.” He reminded the audience of the soon to be revealed Strategic Plan for Industry that his ministry is preparing, a plan that will aim to increase the production and exports of medium and high technology sectors as well as increase the share of goods with high value-added for low technology sectors.

In regards to supporting young technology entrepreneurs, Ergün noted that his ministry was providing TL 100,000 for youths who want to produce high technology products through the Technological Entrepreneurship Support program. “Many people ask me ‘What if these youths burn through all of this money?’ My answer is always, ‘If anybody is to lose our money, let it be our youth’,” Ergün said, adding that since April 2009, 159 applications have been submitted and 78 approved.

 
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