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Consul General, |
TOBB-US Chamber of Commerce Conference
Strengthening US-Turkish Business Partnerships
U.S. Consul General Deborah K. Jones’ Remarks On Behalf of Ambassador Ross Wilson
Istanbul, September 15, 2006
First, let me say what an honor and a privilege it is for me to appear here on behalf of Ambassador Ross Wilson who wanted very much to be here, but abruptly last evening was called away on some very important and urgent business. As I reviewed his remarks last evening and was planning to adjust them for delivery by myself, I realized that the personal nature of his remarks was evidence of his personal interest in this program and the success of this program, therefore I chose to deliver them as he prepared them. So let me begin.
I am so pleased to be able to participate in this Istanbul session of an exciting new business and trade development initiative developed by the U.S. Chamber of Commerce and the Turkish Union of Chambers and Commodities Exchanges – TOBB. I am very pleased that the TOBB project has led to the U.S. Chamber deepening its relationships in Turkey. Specifically, I welcome the news that the U.S. Chamber and the Istanbul Chamber of Commerce have agreed to further workshops to assist Turkish small- and medium-sized businesses in doing business with the United States.
Every day, I meet with American and Turkish government people and bureaucrats, I read reports and I write reports, and I deal in abstract principles. It’s so refreshing to be here with business people who deal with reality – with supply and inventory, production, sales, profit and loss. Of course, the issues I deal with are reality, too, but your lives, businesses and futures have an immediacy that I find exciting. I greatly admire what you do.
We are here at the last of a series of workshops designed to educate leaders of small-and medium-sized Turkish businesses on how to develop trade and investment ties with that gigantic market known as the United States. I would like first to acknowledge with gratitude the critical roles played by TOBB, under the leadership of my friend Rifat Hisarciklioglu. Rifat Bey is a strong and effective leader on behalf of economic development and international engagement. Turkey and the Turkish business community should be very proud of his record of achievement. The U.S. Chamber of Commerce, represented today by former President John Bachmann, also helped us to develop this project. The U.S. Agency for International Development, which is represented by Deputy Assistant Administrator Woody Mefford, and the Carana Corporation also had an important role. My thanks to all these organizations and to the rest of our staff here in the mission on the ground, who are here to support you as you proceed in this endeavor.
My mission as ambassador here is to revive and modernize a US-Turkish partnership that has served the interests of our countries well for over fifty years. When Foreign Minister Gul visited the United States in July, he and Secretary Rice announced a Shared Vision and Structured Dialogue. Our countries pledged there to improve our cooperation on a wide range of issues. One of the most important of these issues is the PKK and terrorism. It is fitting that during the week in which America sadly commemorated the fifth anniversary of the September 11, 2001 terror attacks on the United States, Gen. Joseph Ralston, who is heading up a new American effort in support of Turkey to counter the PKK, held talks in Ankara on how we can achieve results together on this problem. The Shared Vision and Structured Dialogue also specifically called for cooperation to strengthen economic and commercial relations and investment. That is what this conference does, and that is why I am so excited to be here this morning. These workshops are designed to be practical, informative sessions to help small- and medium-sized businesses here figure out how to approach the American market and deal with the opportunities – and the challenges – it presents.
Of course, our market is big, it’s daunting and it’s far away. It is precisely because the American market is so large that Turkish companies need to be there. Our gross domestic product accounts for 27% of the world’s economy. At 3.6% average annual growth over the past ten years, the U.S. economy isn’t growing as rapidly as Turkey’s has over the last four years, but the sheer size of our economy means that the annual marginal GDP growth has been larger than the entire Turkish economy. We are happy about Turkey’s progress toward EU accession and we support it strongly. But connecting with and being part of America’s dynamic growth is a pretty good way to make a lot of money and to foster prosperity and growth here.
Of course, our giant market may not be the easiest to figure out. Today’s workshop aims to help business leaders like you to figure it out. Of course, we strongly support Turkey’s accession to the European Union and the business that represents, and we support the diversification of Turkey’s export markets. As prudent business people, you need to sell to customers in many countries to diversify your customer base and lower your risk profile.
Previous workshops have occurred in Ankara, Istanbul, Kayseri, Gaziantep and Izmir. We wanted to reach out, and we have. But Istanbul, of course, represents by far the largest regional economy of Turkey. Business connections with the United States already exist, but there is room for much more active trade and for many more investment ties between the Marmara region’s huge and vibrant community of small- and medium-sized businesses around the Straits and the Sea of Marmara and with the U.S. small and medium-sized enterprise sector that is the backbone of our own economy. The growth opportunities will not be found only in Levent and Besiktas, but in Avcilar, Kartal, Ikitelli, and beyond.
In business as in many things in life, successes follow success. Turkish firms looking at the U.S. market have some very good models. Mavi Jeans now boasts a well-established brand and $45 million in sales in the U.S. market last year. Yeni Raki is now widely available in the state of Texas. American banks are increasingly active here and these intermediaries are here because they see trade and investment growing, and they are a tool you can use to grow your U.S. business as well.
Fortunately, you will not be listening all day to an American ambassador whose last business-earned dollar came from delivering newspapers when I was a boy. Instead, experts will talk with you about practical issues, like visas, U.S. Customs, standards requirements, shipping and other service issues, and other items you will need to master to have the capacity to expand effectively your business in the United States.
I’ll let them talk to you about what they know best, but here I will offer a couple of observations on American customs– and that is customs with a small c. Americans are extremely practical, and our businessmen and women don’t always trouble themselves with interesting, but non-essential information. They want to make money, and what they will care about are price, quality, reliability and trustworthiness. These are not so different from the things that drive you. There is a common language- it’s the language of business and entrepreneurship. Through perseverance, competitive business can and will succeed in the United States.
It’s also important to research your market niche. The best prospects for new Turkish exports to the United States may not be in the sectors where Turkey has traditionally been strong. There may be unexploited niches for growth in the garment and textiles sectors, but the low-cost segment will probably be hard to grow without a Chinese or Indian partner. However, American consumers increasingly buy specialty foods, especially exotics and organics, which means opportunities for Turkey’s processed food businesses. At the Kayseri version of this seminar, for example, one Turkish entrepreneur spoke about the growing fruit juice sales to the United States. Pomegranate juice, for example, is now very popular as a major anti-oxidant and is widely marketed. Likewise, Turkey’s ceramics producers and construction materials companies may find attractive opportunities in our booming residential construction and renovation industries.
Let me also say a word about the pivotal role that sound economic policies play in providing the context in which companies do business – a stable and predictable currency, a sound banking system, open trade rules to foster an environment in which a dynamic private sector can lead.
From our perspective, Turkey has made immense strides since the 2001-02 financial crises, and this country’s government deserves great credit for legislating and implementing reforms that have opened up enormous new opportunities for Turkish business. We applaud these efforts and we look forward to their continuation so that our economic relationship can achieve its full potential.
In encouraging trade and investment, I also want to encourage two-way trade and investment. Companies from throughout the world have found that investments in the United States pull with them exports of their countries’ goods and services. They also benefit through purchases of American products in the many areas where we are competitive. Though the United States is the fifth largest supplier to the Turkish market, our exporters face significant barriers in some sectors. This stands in the way of the deepening and expanded economic ties that both our governments seek.
In particular, we have asked for a reexamination of the policies here regarding agricultural imports and intellectual property rights protection to ensure these policies are in line with Turkey’s international commitments, and that they add to the future competitiveness of this country’s producers. Protectionism raises input costs and artificially increases the price of staples and other goods needed by Turkey’s poorest citizens. If intellectual property protections were stronger, multinational companies would be more interested in expanding their operations here and in moving Turkey up the value added chain into higher paying production, exports and jobs.
The more Turkey has an open, liberalized trading system, the more business people like you will benefit – both here and in the increasingly competitive and interconnected global economy.
I encourage all of you to make this workshop as useful as possible. I wish you success in engaging with the U.S. market – whether as a buyer, seller, investor or partner here. This will be good for Turkey and its position in the world, it will be good for US-Turkish relations, and it will be good for you. Thank you very much.