TİM President Gülle: Our target in exports this year is 190 billion dollars

President of the Turkish Exporters Assembly (TIM), Ismail Gülle, said that as exporters, they completed 2019 successfully and achieved a significant increase, especially in the last month of last year.

In line with this, as the 9th day of the year is left behind, Gülle stated that they increased exports by more than 5 percent in January compared to the same month of the previous year, and said, “It looks like we will continue these figures. I hope we will start January with a record above last year. Last year’s January “Our exports were around 14-15 billion dollars. Currently, there is a 5 percent increase compared to this.” he said.

Gülle informed that this year’s export targets are 190 billion dollars and said:

“We will work on the basis of an export target of 190 billion dollars this year, and we will produce to expand this record. We are going through a very difficult world trade, but despite this, it is important that our exports continue to increase. The effects of the decisions taken by countries to expand their trade will definitely be reflected in our trade, but life goes on. People in the world We continue to consume. We are not going to shrink. From now on, we will continue to export with more value-added, more fashionable design products and higher value products by taking the results of the policies and strategies we have made so far. In fact, we are talking about 200 billion dollars, not 190 billion dollars. “We also receive the support of our government. We need to switch to double figures as soon as possible.”

“We will close our exports with a record at the end of this year”

İsmail Gülle stated that 2018 was a significant setback for the Turkish economy, and that it took a process to recover the disturbed balances and put all the parameters in place.

Emphasizing that the contribution of the export family to growth and development in this process is extremely meaningful, Gülle said, “I can say with peace of mind that we will close our exports with a record at the end of this year. We have the parameters and studies to underline this. We see the result of these studies as a record. We also see the cyclical developments in the world.” “Unless something very abnormal happens, we will increase our exports.” made his evaluations.

Gülle pointed out that the share of high-tech products in exports has increased and that in some sectors, figures above the European average have been achieved in terms of value.

Explaining that exports are supported on the basis of policies, Gülle said, “We see that there are very serious incentives announced by our esteemed minister, both on the basis of IVME, that is, the investment of products not produced in Turkey, and on other investments and growth. The fact that these come into effect is an important indicator that underlines what we have said.” said.

Effect of exchange rate on exports

Stating that exports closed 2019 with an increase of over 2 percent, Gülle said, “The 2 percent increase is much higher in quantity, but it should not be underestimated in terms of value. In an environment where certain major economies of the world closed with very serious decreases, we can continue to achieve this with 2 percent.” Highly important.” said.

Touching on the effect of the exchange rate on exports, Gülle said, “Currently, its effect on our exports is at the level of 5 billion dollars. This is extremely important. It is a loss only because of a multiplication you use when making a calculation. On the other hand, in an environment where input costs are in dollars for sales to Europe on a natural cost basis, and euros for sales to Europe.” “We are also faced with the opposite situation. In particular, there is the decision taken by the USA regarding steel and the contraction in the European Union regarding automobiles. When you put these two items on top of each other, a trade loss of approximately 10 billion dollars emerges.” made his evaluations.

“Turkey is a role model for this geography”

İsmail Gülle also evaluated the reflection of the tension between the USA and Iran on regional exports.

Pointing out that Turkey is in a very difficult geographical location, Gülle said:

“It has always been like this throughout history. The people of this region have never been able to eat or use the riches, blessings, oil, energy and energy-related returns here. It is a very contradictory image. There are such valuable underground resources, but on top of it there is the poverty and underdevelopment of the people. From that point of view It seems that this process will continue at least as long as the energy is here. Despite this negative conjuncture, it is very important for this region that we preserve it both administratively and functionally as a monument of stability, in order for this region not to get worse. It’s a stance.”

Stating that Turkey is a role model for this geography, Gülle said, “Especially in recent years, there are moves, investments, growth, developments in the field of technology and the defense industry. We achieved this not with our underground resources, but with our above-ground human resources, investors and industrialists. In that respect, “We expect that such things will definitely bring us an advantage in our trade in the region where there is stability. We believe that we will see the positive effects of this in a short time, especially with some markets.” he said.

“It is nice to see an increase in the stock market in a short time, the stock market is like a barometer of stability”

On the question about the impact of the US-Iran tension in the region on exports, Gülle stated that a new event is encountered every day and said, “In 2019, both politics and trade did their part correctly. Everyone completed their duties well. The world needs the management of sensible leaders and sensible presidents. The world can easily “We see that the balance has deteriorated. The positive atmosphere announced by the two presidents has relieved both the region and the economies. It is good to see an increase in the stock market in a short time. The stock market is a barometer of stability. If there is an increase there, it means there is trust and peace.” he said.

Gülle pointed out that England was not successful in managing the Brexit process and said:

“We were affected by this process. Our automotive industry was affected the most. There was a decrease in our exports at the level of 500 million dollars. It is also important to continue our exports in an environment of such uncertainty. As TİM and the ministry, we have carried out informative studies for the sector and we continue to do so. There is now an agreement on Brexit.” It has become clear that there will be a separation. If it remains in the same position as we did, it is not a very problematic separation. Apart from that, if it comes with a different separation and stays out of the system, we may be affected by this if there is a situation where it will make trade agreements with all countries. But I do not think it will prefer this. Opportunities in Brexit “The decision that Britain will make will determine Turkey’s position. It is important for us to manage this well in terms of the Customs Union.”

“There was no reason why we should not export 190 billion dollars in 2019”

Pointing out that nothing was done in 2019 to update the Customs Union Agreement with the European Union (EU), Gülle noted that the most important factor in the limited export increase today is the contraction in Europe.

Stating that there was a serious interaction in both steel and automobiles, Gülle said, “The EU and the USA were effective in causing negative results in both our automotive and steel sectors. It turned out to be negative due to the interaction in these two markets. Can we export 190 billion dollars? Believe me, exports exceeding 190 billion dollars “There was no reason why we shouldn’t do it this year. Despite all these negativities, we are making a positive export profit. The work we had done has slipped away from us. But in general, politics has made politics and trade trade.” he said.

‘Interest and inflation balance must be kept in single digits’

Gülle congratulated the President of the Central Bank of the Republic of Turkey (CBRT), Murat Uysal, for the decisions he took to reduce interest rates last year and said that they would invite him to meet with exporters as soon as possible.

Gülle stated that his views and statements on the level of interest are very clear, and said: “It is a harmful indicator that is extremely effective in the development and growth of a country.” He described it as:

Explaining that high interest rates negatively affect investment decisions, costs, access to finance and exports, Gülle said:

“The period that Mr. President took courageously and reduced the interest rate by 1200 basis points in 4 meetings was important. We find it important that he increased the number of Monetary Policy Committee meetings from 8 to 12 for this year and spread them to every month, as it sent the message ‘We are monitoring the event and we will continue to monitor it.’ We predict that he will manage the next process more carefully, because the interest rate decisions he makes have a very serious impact on inflation, investment, investors and production. As an exporter, we want to ensure that the interest rate decisions taken here will ensure the stability of the exchange rate without creating pressure on the exchange rate. It is our important expectation that it will lead in this direction.

We do not expect a speculative exchange rate, but a balanced exchange rate. In the next period, we express our support and desire for interest rates to be reduced to single-digit rates, rather than as large as before. The single-digit interest rate period is extremely important for Turkey to overcome some things and achieve stable indicators. The interest and inflation balance must be kept in single digits. “This is extremely important for market and price stability.”

“It is not important that the incentives are numerous, but that they are encouraging and encouraging”

Regarding the effects of the exchange rate level on exports, İsmail Gülle said, “As exporters, we know that there is no such thing as a huge benefit from speculative increases in the exchange rate or ‘exchange rates have increased, exports will explode’. The impact of the exchange rate on exports is limited to 15 or 30-day effects. Afterwards, the side effects “As exporters, we want a stable and balanced exchange rate. This is important for exporters.” made his evaluations.

Emphasizing that they want an exchange rate that will not be crushed by inflation and that will go in parallel with inflation this year, Gülle said, “We do not want to see the exchange rate as a source of high profit or as an argument that will cause losses.” said.

Gülle pointed out the importance of the incentive mechanism for exporters and said:

“It is important that the incentives are encouraging and encouraging, not the abundance of them. What is the purpose of giving and diversifying the incentives? While the state is doing this job, I support it. I encourage you to grow and be permanent in this regard. In a way, this is one of the most important arguments for the exporter to feel the state is on its side.” “Incentives. Exporters find this extremely meaningful. These incentives have been rewarded and have returned to our state in the form of success, exports and records. In that respect, we can say with peace of mind that the incentives have achieved their purpose.”

Talking about the importance of facilitating the use and accessibility of incentives, Gülle stated that they also have important duties in this regard.

Gülle stated that incentives play an important role for exporters to be successful in the markets and continue their success, and said, “Our state also supports the exporters in this regard. We bring the return of the incentives given to the country in the form of exports and foreign currency. We do so in cooperation with the state and the industrialists. The encouraging nature of the incentives should never be abandoned.” “It is extremely important to further support, simplify and facilitate access to this system.” he said.

“In 2019, 17 thousand 544 of our companies said hello to export”

İsmail Gülle stated that the last quarter of 2018 and 2019 were an important period for exporters and that exporters always announced a record after the external economic intervention after taking office last year.

Stating that the stance and attitude of the exporter is extremely meaningful, Gülle said that in addition to announcing records every month, they also announce new companies that say hello to exports every month.

Emphasizing that these studies are important in order to spread exports to the base, Gülle said, “We had approximately 1500 companies every month. In 2019, 17 thousand 544 of our companies said hello to exports, exported for the first time and realized an export of approximately 4.5 billion dollars. 65 percent of our exports “Our first thousand companies carry out 100% of their exports. That’s why this work and this result are extremely important in terms of spreading exports to the base.” he said.

At this point, Gülle pointed out that 2019 was meaningful both in terms of the participation of small and medium-sized exporters in exports and in terms of the spread and development of this export awareness, and explained that, as TİM, they worked very intensively in many places, especially in Anatolia, in 2019.

“We will be on the field more this year”

Gülle stated that exporters will be on the field dynamically in terms of market diversity for 2020,

“We will be in the field more this year. There will be more country visits, more high-level contacts and more trade relations. We will work hard in the field ourselves. There is no country in the world where we do not sell products. We export to almost all countries and regions. This is in terms of market diversification. “Our exports to the EU dropped to the level of 47 percent. But both our export share in these Middle East and Gulf countries increased and our export share in Africa increased. It also increased in other regions, such as the Asia-Pacific, but it is relatively limited there.” said.

Emphasizing that the European Union is a very important market for Turkey, Gülle continued as follows:

“We have an established order. But we need to further develop this trade order rather than lowering it. The EU’s Customs Union regulation is very important for this. We definitely need to realize this. In other words, not to see if we can export 190 billion dollars, but to export 200 billion dollars.” We must ask why we are not doing it. When we make these agreements, we will definitely exceed these figures. We get a share of over 1-1.5 percent from Africa, which is worth 1 trillion dollars. We are working to become more positioned and take part there with logistics. We are in the field ourselves. “We need to establish more relations with our counterpart organizations there, state representatives, industrialists and exporters there and increase our exports.”

Gülle stated that the state offers them all kinds of solutions and support in terms of increasing exports, and added that in a system supported by so many states, exporters need to be in more fields and produce and export more.

“Exports will continue to be the locomotive of growth”

Gülle pointed out the importance of value-added product exports and said that high-technology product exports increased to approximately 4 percent and that the export news in the defense industry and medical fields made them very happy.

Emphasizing that Turkey is in the right direction and producing very right things, Gülle said, “UAVs, UCAVs, helicopters, ships, tanks… Especially to export the recently introduced Turkey’s Automobile, which we will see on the roads in 2022.” “On behalf of our exporters’ association, there is great excitement and expectation. It will be the greatest pride for us to realize its export and to introduce it to the world and sell it. We are very proud and happy to realize the export of this important project that Turkey has been longing for for a long time.” he said.

“There is nothing negative about Turkey in 2020”

Reminding that there was a negative growth in the first half of 2019 and that exports made a great contribution to turning this negative growth into positive, Gülle continued his words as follows:

“We expect the growth figures to be positive in the last quarter. It shows that we will finish 2019 with a growth slightly above zero on a yearly basis. Our growth expectations for 2020 are at the level of 5 percent, as stated in the New Economic Program. Some international evaluation organizations expect similar or slightly below We see that the rates support this growth figure. There is nothing negative about Turkey in 2020. Almost all indicators indicate that growth will be positive. The effects that harmed the economy in 2019 will be eliminated with growth in 2020. Exports will continue to be the locomotive of growth. “

Emphasizing that last year, for the first time in the history of the Republic, the number of exporters exceeded the number of importers, Gülle said, “There are 87 thousand exporters and 77 thousand importers. This was good for us. We are also making some important structural decisions in order to reduce the cost of exporters. We also abolished the entrance fee for our unions.” “The exporter will become a member once and pay a fee for the work he does on an annual basis, without paying any dues.” said.

“We have a great advantage in selling Turkey’s automobiles and delivering them to the market.”

Gülle pointed out the importance of automotive exports and stated that they were excitedly waiting for Turkey’s Automobile and that it was seen to be a work above expectations.

Stating that Turkey’s Automobile has created a national excitement and demand in the country, Gülle said, “In order to support this excitement, we have made a decision to convert the vehicles within our unions to domestic ones. Hopefully, we will have domestic cars in the exporters’ unions. Turkey has a very serious sub-industry power.” “This is an important strength of ours. We will work seriously on both the marketing and export of our car, which will provide great support to our automotive exports. We have a very advantageous advantage in selling this vehicle and delivering it to the market. I hope our biggest value-added export will come from the automotive industry.” he said.

Performance of Demir Grup Sivasspor

Gülle noted the following regarding the performance of Demir Grup Sivasspor, which finished the first half of the league as the leader:

“I am from Sivas. I wholeheartedly support both Sivas and Sivasspor. Hopefully, as a Fenerbahçe supporter, I wholeheartedly support Sivasspor becoming the champion. There are huge changes in Anatolia. In terms of exports, development and investments. If it crowns this in sports, our Sivasspor will become the champion.” We are proud of it. This is important as it shows how different the change in Turkey, the sports culture in Turkey and the understanding in Turkey has come. As a Sivas resident, we are proud of Sivasspor. I hope we can see it as champion at the end of the season in Turkey. “I believe everyone will be as happy as the people of Sivas.”

Source: https://www.aa.com.tr/tr/ekonomi/tim-baskani-gulle-bu-yil-ihracatta-hedefimiz-190-milyar-dolar/1697272

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