Libya a door to vast African market, minister says

In the Libyan capital of Tripoli on an official visit, Çağlayan attended a gathering on Thursday with Turkish contractors and representatives of Turkish construction companies who are doing business in the North African country. He talked with the Turkish businessmen about the problems they encounter while doing business in Libya and ensured them that he will speak with Libyan officials to overcome these obstacles.

Çağlayan said mutual relations between the two countries are improving steadily in terms of both politics and trade. The minister underlined the importance of signing a free trade agreement with Libya to increase the trade volume between the two countries and to achieve better and easier access to African markets. Çağlayan also asserted that the businessmen of both nations must look for ways to work together in third countries.

“There are good opportunities for cooperation, especially in the construction, contracting, energy, tourism and agriculture sectors. Striking partnerships with Libya to make this country a base of production and investment and exporting to other countries, especially ones in Africa, would be quite a rational option,” he said.

The minister noted that Libya occupies a significant position in Turkey's strategy to advance relations with the surrounding countries. “Turkey currently has free trade agreements with a number of African countries. As a result of negotiations, it also managed to conclude similar agreements with Libya, such as one to prevent double taxation, another to remove a number of quotas and tariffs and a deal to provide mutual incentives for investors.”

The trade volume between Turkey and Libya in 2008 was $1.4 billion, and this figure had already been achieved by August of this year. Based on the current rate of increase, the volume is likely to be $2 billion by the year's end. Turkey's exports to this country totaled $1.1 billion last year and soared in 2009, rising by more than 40 percent.

Turkish contractors are also very active in Libya, earning nearly $10 billion from a number of construction projects in the last four years.

Along with a team of bureaucrats, the president of the Turkish Exporters' Assembly (TİM), Mehmet Büyükekşi, and the president of the Turkish Contractors Association (TMB), Erdal Eren, accompanied the minister on the visit.