Ambassador's Remarks and Public Events
Barack Obama: America's 44th President *
James F. Jeffrey
U.S. Ambassador
America will mark an historical transition on January 20 when Barack Obama places his hand on Abraham Lincoln's bible and takes the oath of office as America's 44th President. The significance of this transition was best described by Barack Obama himself on election night in Chicago: "If there is anyone out there who still doubts that America is a place where all things are possible, who still wonders if the dream of our founders is alive in our time, who still questions the power of our democracy, tonight is your answer."
In that same speech Barack Obama drew attention to the challenges ahead, saying: "For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime -- two wars, a planet in peril, the worst financial crisis in a century." These challenges that we face are not America’s alone, and America cannot overcome them alone. Turkey and the United States are already working together to respond to the global economic crisis. No one knows how long or severe this crisis will be, but our countries will confront it with a shared interest in maintaining the free flow of goods and credit.
The Turkish economy has come a long way since I last served here in 2001. Turkey is now on the path to EU accession and one of the 20 largest economies in the world. It has successfully completed an IMF program, attracted billions in foreign investment, and undertaken extensive structural reforms, including a major banking reform that created one of the soundest banking sectors among emerging market countries. This dynamism and commitment to reform has made Turkey immensely attractive to U.S. businesses and investors.
U.S.-Turkish trade is still relatively modest at $16.2 billion in 2008, but growing. My government encourages American companies to look at business opportunities in Turkey. One sector where there are many such opportunities is energy. Several U.S. companies have successful energy investments in Turkey and already are contributing to meeting Turkey’s growing energy needs. In addition to electricity generation investments, U.S. companies are involved in exploration. Toreador is conducting exploration activities in the Black Sea, and Exxon Mobil recently signed a deal with TPAO for exploration in the same area.
We want to find ways to do more. The U.S. is committed to helping Turkey strengthen its energy security and meet its needs by diversifying its energy mix with a particular focus on renewable energy sources. We want to establish more efficient and productive financing mechanisms to support Turkish energy projects, especially in light of the global financial crisis. The U.S. Export-Import Bank has financed $1.6 billion in projects in Turkey and the Overseas Private Investment Corporation has supported $500 million worth of projects here.
American companies are bullish about doing business in Turkey. 76% of U.S. companies responding to an American Business Forum in Turkey (ABFT) survey said their company’s initial decision to invest in Turkey was a good one. 73% said they would recommend investing in Turkey to others. 67% said they plan to invest further in Turkey. Those numbers represent a very strong vote of confidence in Turkish workers and the Turkish economy.
There are, however, areas of concern for U.S. companies and these are reflective, I believe, of the concerns of foreign investors in Turkey in general. Among the problems most often cited are the level of taxation and the compliance burden, and the inefficiency and lack of predictability in the legal system, particularly with regard to intellectual property rights (IPR). Turkey passed some significant tax and IPR reforms in 2008, but more remains to be done.
Barack Obama made change the hallmark of his campaign, but he also reaffirmed America's long-standing commitment to open markets, saying: "... we must build on the wealth that open markets have created, and share its benefits more equitably. Trade has been a cornerstone of our growth and global development. But we will not be able to sustain this growth if it favors the few, and not the many.” I am confident that America’s commitment to its long-standing economic partnership with Turkey will endure.
*Published in Businessweek Turkey - January 18, 2009