Noting that export growth was predicted to reach between 10 and 11 percent in 2012, Çağlayan said the revised expectation of 12 percent derives from monthly data provided by the Turkish Exporters Assembly (TİM). The minister stressed that the countries given high grades by leading credit rating agencies are in need of help, but Turkey has become a country that sets an example with its economy despite its lower rating. He feels there is a misunderstanding in society that if imported goods are not bought, then exports cannot be sent and added that imported goods are being used by all kinds of people in society. He also said the government wishes for the country to use high technology in all aspects of life.
Noting the importance of new incentives program that could cure the current account deficit (CAD), Çağlayan indicated that the fourth of four phases of incentives will promote strategic investments. “The government will provide incentives for businesses to invest in the products in Turkey that lack sufficient supply to meet demand,” he commented. He also stressed that the eastern and southeastern regions of the country need special incentives over those of past years in order to help heal the effects of terrorism in those regions. He added, “The needed investments will contribute in a major way to the fight against terrorism in these regions.” Çağlayan made note of the concerns of French businesses operating in Turkey due to Turkey’s strong reaction against a recent French bill that criminalizes denying that the World War I-era killings of Armenians constitute genocide. The Turkish public has reacted by boycotting French goods in Turkey in protest, feeling that their ancestors are being accused of genocide as well as for the sake of freedom of expression in France. In response to these concerns, he underlined that the bill was not approved by French businesses and said: “We will not betray or damage the trust of French businesses who invest in Turkey. We welcome all investors.”
Underlining that Turkey and France have no disputes in economic terms, Çağlayan stated, “Any conflict between our two countries would damage the Turkish economy if we look at the foreign trade figures of both countries.” France is Turkey’s fifth-largest market for exports with a total export volume of $6.9 billion in 2011. Trade between Turkey and France is slightly imbalanced, with the benefit going to France; the total value of goods sold by France to Turkey in 2011 was $8.6 billion. Still, an interruption to trade between the two countries would affect Turkey more than France given that Turkish exports to France account for 5 percent of Turkey’s exports, whereas Turkey provides less than 1 percent of France’s overseas imports. Likewise, France’s exports to Turkey make up just 1.5 percent of the total goods exported by France.
