Exporters Should Seize Post-Covid-19 Opportunities in the EU

  Turkish Exporters Assembly (TİM) continues to hold "TİM Export Talks" online panels. These panels, conducted with ambassadors aimed at charting the direction of trade during and after the Covid-19 process, are generating significant interest. Turkey's Permanent Representative to the EU, Ambassador Mehmet Kemal Bozay, and TİM President İsmail Gülle, held the fourth panel. Titled "What opportunities exist for exporters in the EU after Covid-19?", this panel was broadcast live on TİM's social media accounts. In the fourth panel, measures taken in the EU during the Covid-19 process, the state of the EU economy following the pandemic, developments in external trade between the EU and Turkey, and opportunities for the coming period were discussed. Gülle, noting that a new roadmap ensuring deeper cooperation on mutual investments, production, trade and finance is inevitable, emphasized that Turkey has the opportunity to push harder on exports to the EU but has limited room for maneuver. Gülle stated: "For this reason, during the normalization period following the pandemic, work must begin rapidly on revising the Customs Union Agreement between Turkey and the EU and expanding its scope." Ambassador Bozay, pointing out in the recent European Union business world report that the Customs Union needs to be updated, Turkey needs to align with EU acquis and participate in the supply chain, said: "The other side also has this demand. In July, Germany will assume the EU Presidency. In the coming period, updating the Customs Union and visa exemption issues will be on our agenda."

Turkey, Europe's most critical supplier

TİM President İsmail Gülle emphasized once again that Turkey had demonstrated itself to be Europe's most critical supplier by extending a helping hand to EU countries including Italy, Spain, Romania, Bulgaria, Hungary and France with medical equipment support in its fight against the virus. Recalling that Turkey and EU member states are being tested together against a historic crisis, a global viral pandemic, Gülle stressed that a new roadmap ensuring deeper cooperation on mutual investments, production, trade and finance is inevitable. Gülle said: "Turkey has the opportunity to push harder on exports to the EU but has limited room for maneuver. For this reason, during the normalization period following the pandemic, work must begin rapidly on revising the Customs Union Agreement between Turkey and the EU and expanding its scope. In light of the fundamental realities revealed by the global viral pandemic, this issue is now essential for the EU side as well."

Exporters must increase product diversification

Turkish Exporters Assembly (TİM) President İsmail Gülle stated that the EU is Turkey's largest export market at a level of around 50 percent and will maintain this status for a long time. Gülle continued: "In our exports to the EU, particularly our Automotive, Ready-made Clothing, Chemicals, Electrical Electronics and Steel sectors stand out. We have found that while our country has strong competitive capacity in many products in the Chemicals, Aquatic Products and Animal Products, Automotive and Cereals sectors, we do not gain sufficient market share in the EU market. Although Turkish export products have strong competitive capacity in a total of 43 products, we are unable to export to the EU; in 304 products, our market share in the EU is below 1 percent. The reason we are unable to export to the EU at the desired level in some of these products is the applied high tariffs and non-tariff barriers. However, among these products, the EU imports 11.7 billion dollars of bakery products, 8 billion dollars of surface active agents, 7.4 billion dollars of chocolates and cocoa products, 4.3 billion dollars of plastic bottles, and 3.3 billion dollars of passenger ships are notable. In order to reduce product concentration and be more effective in the EU market, our exporters need to increase product diversification in their exports to the EU," he continued.

Customs Union update and visa exemption issues should be on the agenda

Turkey's Permanent Representative to the European Union, Ambassador Mehmet Kemal Bozay, recalling that President Recep Tayyip Erdoğan also views updating the Customs Union as a necessity, stated: "In the recent business report in the European Union, emphasis was placed on updating the Customs Union, ensuring Turkey's alignment with EU acquis and participation in the supply chain. The other side also has this demand. In July, Germany will assume the EU Presidency. Followed by Portugal and Slovakia. In the coming period, updating the Customs Union and visa exemption issues will be on our agenda," he said. Bozay, noting that as Turkey we need to continuously work on this issue, also emphasized that contacts with businesspeople in the EU need to increase for this. Bozay said: "I believe TİM's contacts are extremely important in this respect. For the EU, the most important topics in trade going forward will be the Green Deal, supply chain formation and innovation. The EU will try to make room for itself in the tightness it experiences due to falling behind China and the US in innovation. Skill, innovation and creativity are essential for prosperity and stability. The EU will move forward on this formula, and we should do the same," he said. Innovative SMEs are Needed in Europe Bozay, underlining the need for innovative SMEs in Europe and the Western Balkans, said: "Our businesspeople should enter this market by partnering with these particularly struggling firms here. Besides this, we should open logistics offices in Brussels and major ports. We need to shift the supply chain concentrated in Istanbul to Anatolia. Turkey must create its own supply chain and belt route. To stand out in innovation, we need to turn to R&D and combined transport in the transport sector," he said.