Minister of Trade Ruhsar Pekcan made evaluations on the agenda at the Anadolu Agency (AA) Editorial Desk.
Stating that the new type of coronavirus (Covid-19) epidemic process deeply affected the economies of countries as well as public health all over the world, Pekcan said that Turkey also felt this since March.
Pekcan pointed out that exports fell 18.1 percent in March, 41.4 percent in April and 40.9 percent in May. Minister Pekcan reminded that Turkey ranked 8th among the 50 countries with the highest export growth last year.
Pointing out that Turkey was affected by the pandemic as the economy and foreign trade, Pekcan stated that they took all necessary measures to prevent exports from stopping in this process.
Pekcan stated that exports did not stop but decreased in May and said, “We saw a 10.8 percent recovery this month compared to April. It had already given us a recovery signal. We expected it to be better in June, because in April and May, it was even more affected by reasons such as the Ramadan Feast, May 1, May 19 and the restriction of curfews on weekends.”
“There is a 35 percent increase in exports compared to May this year, a really serious figure”
Stating that the news about foreign trade figures today is good, Pekcan gave the following information:
“Our exports increased by 15.8 percent compared to June last year and amounted to 13 billion 469 million dollars. There is a 35 percent increase in exports compared to May this year, a really serious figure. Imports also increased by 8.2 percent to 16 billion 305 million dollars. In June, the ratio of exports to imports was 82.6 percent. This figure was 77.2 percent in June 2019 and 74.5 percent last May. Looking at June excluding gold trade, the ratio of exports to imports is 92.8 percent.”
Pekcan thanked President Recep Tayyip Erdoğan, Minister of Treasury and Finance Berat Albayrak, TIM management, exporters’ associations, UND and members of the ministry for their support in this process, and said, “I think that with the selfless work of our exporters, industrialists and workers, we have given a strong exit signal by differentiating in the economic field as we differentiated in the field of health in the pandemic as Turkey.”
Regarding the sectors that recorded the highest increase in exports, Pekcan said, “As of June, there is a 24 percent increase in textiles, 20 percent in iron and steel, 18 percent in electronics, 17 percent in machinery, and 16 percent in ready-to-wear clothing. The automotive sector is still the most exported item, but although there is a decrease of 11 percent compared to June last year, we see an 80 percent increase in automotive exports compared to May.”
Stating that the highest increase in exports on the basis of countries was achieved in exports to the UK with 43 percent compared to June last year, Pekcan said:
“This is followed by Iran with 37 percent, Russia with 34 percent, China with 19.6 percent, Iraq with 17.8 percent and Germany with 12.5 percent. Countries with decreasing exports are Italy and France. Compared to June last year, exports to Italy and France decreased by 4.5 percent and 8.5 percent, respectively. However, there is an increase in these two countries compared to May. Exports increased by 55 percent to Italy and 45 percent to France. Exports to the UK increased by 80 percent in June compared to May, to Iran by 290 percent, to Russia by 56 percent and to Germany by 40 percent.”
Referring to the recovery in exports in June, Pekcan said, “As of the first 6 months of the year, we are 15 percent behind in exports and 3 percent behind in imports due to the rapid decline in March, April and May. From now on, we will continue this trend as an increase. Due to the Feast of Sacrifice, we may be slightly affected at the end of July, but then we will continue the recovery process.”
Pekcan stated that they aim to close 2020 without loss and said that there is nothing that cannot be done when they join hands with the business world.
Pointing out that while the Far East was in the process of recovery, a period in which the new type of coronavirus (Covid-19) epidemic was aggravated in western countries, Pekcan used the following statements:
“There was a problem in global supply chains in January-February, but as they started full treatment, there was a contraction in demand on this side. Supply security was ensured there, but there was a contraction in demand on this side, but our industrialists were not affected by this process. In this process, we were not affected because our suppliers are in scattered geographies.”
“We worked in full coordination”
Reminding that Foreign Minister Mevlüt Çavuşoğlu, Minister of Culture and Tourism Mehmet Nuri Ersoy and Deputy Minister of Health Emine Alp Meşe paid a visit to Germany today, Pekcan said, “When we consider the financial support within the European Union (EU) cluster, there may be a logic of ‘let the tourist go and spend there’ instead of cash aid.”
Pekcan also noted that they are working in full coordination as cabinet members in this process.
“There is a demand to update the Customs Union Agreement”
Touching on the issue of updating the Customs Union Agreement, Pekcan continued as follows:
“As a general custom, there is a demand for updating the Customs Union. The need to update it is expressed by the business world both on the European and Turkish sides. In this process, there were issues such as e-commerce, service sector, digital economy, agricultural products that were very much on the agenda. With the analyzes made by the business world both in Europe and Turkey, the need for updating this is expressed. We should continue on our way by separating politics on one side and trade and economy on the other. Whatever the processes within itself should work.”
“Turkey has sent aid to more than 125 countries”
Pekcan also spoke about Turkey’s assistance to other countries during the Covid-19 outbreak, saying that the number of countries to which aid was sent was over 125.
Explaining that they encourage contractors and business council presidents who are interested in Africa, Pekcan said:
“Go here, meet the needs in countries where you see spot potential. Do not expect everything from the state of Turkey, we are continuing such a work with our Minister of Foreign Affairs, our ministry and the business world so that you can help. They have provided very serious aid and we are receiving very positive feedback. I hope this will turn into trade. Our business people have been with them in their narrow days.”
“We have created a protection shield to protect producers and industrialists”
Stating that there was a global supply shortage due to the new type of coronavirus (Covid-19) outbreak and that there was a contraction in demand as the west was also affected by this process, Pekcan said that with the contraction in demand, new market searches and price decreases were seen in products originating in the Far East.
Pekcan stated that low-priced imports have started to enter new markets in this process, and that they have taken some measures in this direction:
“Thanks to the measures we have taken with additional customs duties, we have created a protection shield to protect producers and industrialists. We have done this to protect our domestic producers and to encourage domestic production. After some taxes, we saw that some companies started to come and do feasibility studies here. We come together with the sector, producers and users, sometimes bringing them together at the same table, and work on each product one by one. Of course, sometimes there may be some products under the same HS code. We will revise them again by coming together with the business world, our industrialists and producers. There is nothing that says we will abolish this on September 30, we can revise it. We are taking these steps to protect our producers, industrialists and exporters, and we are indeed receiving very positive reactions from industrialists.”
Appointment Virtual Queue System Project starts as a pilot at Kapıkule
While giving information about contactless trade applications at customs, Pekcan stated that she explained contactless trade at the G-20 meeting and that everyone was very interested.
Emphasizing that they have achieved good results from here, Pekcan said, “The Appointment Virtual Queue Project was also disrupted due to the pandemic, but it will start at the Kapıkule Border Gate as of this month as a pilot.”
Pekcan pointed out the importance of the project and made the following assessment:
“As an exporter, we give you the opportunity to carry out customs procedures at the domestic customs or even in your own facility if you are an authorized obliged party. When you do the customs procedures, you can enter the date and time you want to cross the border from your office, desk, mobile phone, website, and you will be able to cross with the appointment queue system. When they arrive, their turn will be announced on LED panels and a message will be sent to the driver’s cell phone. We were planning to implement this at all gates as of July, but since field applications were delayed due to Covid-19, we are starting to implement it as a pilot at Kapıkule. Then we will continue at Hamzabeyli Border Gate and spread it across Turkey. This month is the test month.”
Referring to the fight against unfair price increases, Pekcan said, “57 thousand complaints about 12 thousand companies came to our mobile applications and Alo 175 regarding unfair price increases. As the Ministry, we have completed the examination of 10 thousand companies, we have completed the examinations on 50 thousand products. We are currently taking the defense of 2 thousand 400 companies.”
Saying that they do not go to markets and markets like the police and impose fines, Pekcan gave the following information:
“Our auditors go and make on-site determinations and report these determinations to the Competition Board. We ask for defense from the companies. After this defense, the board imposes a fine. There are representatives from other ministries here. There are also representatives from the Union of Chambers and Commodity Exchanges of Turkey, the Confederation of Turkish Tradesmen and Craftsmen, producer, consumer and retailer associations. They examine the defense and impose the fine. Sometimes there are complaints such as ‘we have been treated unfairly’. Again, the same board examines it, and if it finds it unfair, it also makes corrections. They have made one or two corrections.”
“Our new Competition Law is compatible with the European Union”
Pekcan pointed out that there were many complaints about food, masks, colognes and cleaning products, and stated that they saw many deviations in their prices, especially that there were unstable increases throughout March.
Reminding that they set a ceiling price on the mask, Pekcan said, “Currently, sales are below the set prices. We closely monitor price increases. Everyone can find masks wherever they are looking for. We do not have such a problem at the moment, the important thing is that the public can obtain it cheaply.”
Pekcan also noted the following regarding the complaints about the price increases in housing and second-hand car sales following the recent credit campaigns:
“Especially after the credit campaign, we cannot go into the construction costs, but the Inspection Board of our Ministry and the inspectors of the Ministry of Treasury and Finance will carry out a study on second-hand car and housing sales. We have done a good thing regarding the Competition Law. It was a long-term work. It was passed by the Parliament and published in the Official Gazette. Our competition law had not changed since 1994. Our Competition Board had been working with that law since 1997. We now have a Competition Law that is in line with international and European Union standards. Here, we have introduced the mechanism of commitment and reconciliation for the business world, as well as the exemption rule. Previously, they had to apply to the Competition Authority. They will also be able to decide on their exemption. We have also introduced the ‘de-minimis’ rule, whereby the Competition Authority will be able to devote more of its time and energy to market-distorting activities through cartelization and monopolization by ignoring the effects on competition of undertakings whose turnover and market share are below a certain threshold. In addition, public resources will be used more efficiently. The amendments to the Competition Law have created legal predictability for Turkey for international investors. Our goal is to become a center of attraction for international investors and to be more present in their supply chains. Just in time, this law was published and entered into force.”
“We are working on blockchain applications”
Reminding that they have been in consultation and contact with the business world since they took office, Pekcan said that they have taken very important steps in digitalization, digitalization in customs, and reduced time loss and costs with applications such as on-site customs clearance and pre-arrival customs clearance.
Minister Pekcan reminded that as of January 1, they implemented 6 new digital projects as a ministry and said, “One of them was state support in exports. You can do the entire process of state support in exports from your computer and receive your support online. Apart from that, we are working on blockchain applications. We are the only public member of the Blockchain platform. We have joint work with Singapore and South Korea on the sharing of foreign trade documents.”
Referring to the consultant network system, Pekcan noted that thanks to this system, they instantly see the e-mail sent by a business person to the consultant from anywhere in the world, and that the consultants give reports on the country they work in. Emphasizing that the consultants work in parallel with the business world, Pekcan said, “What are the tax rates in that country, what is the competition in products, what are the market conditions, they can constantly consult. During the pandemic process, we started chat programs with the consultant.”
Providing information about the virtual trade academy, Pekcan said that trainings on domestic and foreign trade and customs are provided in this academy. Stating that the academy is a training portal that people of all education levels can benefit from, Pekcan said that they give certificates as a result of these trainings.
Stating that the Department of Women and Young Entrepreneurs was also established, Pekcan said that in this context, they visit 4 cities every month. Stating that they moved this platform to the virtual environment after the epidemic and that they are open to everyone, Pekcan reported that these online trainings reached 1000 people.
Minister Pekcan stated that they also moved foreign trade training seminars to the online platform and noted that they came together with 500 business people here.
Pointing out that they have commissioned the Electronic Trade Information System (ETBIS), Pekcan said, “There is also an information platform within this system. We provide e-commerce trainings to this platform. We especially encourage and support our tradesmen, SMEs and entrepreneurs to direct them to e-commerce.”
Pekcan underlined that they support membership to e-commerce sites and said that they follow the process with impact analyzes.
Virtual fairs and trade delegations continue at full speed
Trade Minister Pekcan also gave information about virtual trade delegations and virtual fairs. Reminding that virtual trade delegations were held with Uzbekistan, Kenya, Uruguay, Paraguay, Chile, Ecuador, Argentina, Mexico, Peru, Gulf countries, China and India, Pekcan emphasized that these will continue and that they provide up to 50 percent financial support to virtual trade delegations organized by the roof organizations of the business world.
Pointing out that they started virtual trade fairs, Pekcan stated that the first fair was held on the shoe industry and the second fair was held on agricultural and livestock machinery. Pekcan also stated that the agricultural and livestock machinery fair, which is made in 3D with the contribution of domestic and national software, is the first in the world in its sector.
Source: https://www.aa.com.tr/tr/ekonomi/bakan-pekcan-haziranda-ihracatimiz-gecen-yilin-ayni-ayina-gore-yuzde-15-8-artarak-13-milyar-469-milyon-dolara-cikti/1896989
