AMBASSADOR'S REMARKS AND PUBLIC EVENTS

Opening Remarks TOBB-US Chamber of Commerce Conference Strengthening US-Turkish Business Partnerships Ambassador Ross Wilson

Ankara, July 24, 2006

It is an honor and an unexpected pleasure for me to be able to participate at this signing ceremony and launch of an exciting new business and trade initiative developed by TOBB and the US Chamber of Commerce.

I say unexpected because I thought I would be in the United States this week.  My Deputy, Nancy McEldowney, who was to be here this morning, is working now in Mersin and at Turkey’s Incirlik Air Base to facilitate the evacuation of Americans from Lebanon through this country and back to the United States.  I have delayed my travel in order to coordinate these US efforts.  The United States government and the American people are very grateful to Turkey for its assistance during this dramatic and unfortunate time in the Middle East.  I am sure everyone here joins me in wishing for an early end to the violence there and for the people of Lebanon, Israel and the entire region to be able to leave in peace and security.  We appreciate Turkey’s efforts toward those ends.

This is the first of a series of conferences or workshops designed to support stronger US-Turkish business partnerships and expand our bilateral commercial ties.  I would like to acknowledge with gratitude the critical roles played by TOBB, under the leadership of Rifat Hisarciklioglu.  The US Chamber of Commerce, represented today by former President John Bachmann, helped us to develop this project.  The US Agency for International Development, represented by Deputy Assistant Administrator Woody Mefford, has provided the funding and helped us work through organizational and other issues to bring this initiative to life.

TOBB in particular has worked hard to make these workshops possible.  I am very grateful to TOBB and to Rifat Bey for demonstrating leadership on behalf of economic development and international engagement.  Of course, TOBB works hard on day-to-day business issues.  TOBB’s long-term vision is reflected in its encouragement of economic reform, its support of the Erez Industrial Zone in Gaza, and its active role in the OECD’s Middle East and North Africa investment initiative.  Turkey and the Turkish business community should be proud of this record of achievement.

My mission as ambassador here is to revive and modernize a US-Turkish partnership that has served the interests of our two countries well for over fifty years.  When Foreign Minister Gul visited the United States earlier this month, he and Secretary Rice announced a Shared Vision and Structured Dialogue.  In it, our countries pledge to cooperate on issues ranging from the PKK and terrorism – where I can assure you we are looking very hard right now at more effective ways to cooperate in reducing and eliminating the threat Turkey faces – to strengthening economic and commercial relations and investment.  So this conference is very timely, and I am pleased about that.

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 challenges – it presents.

Of course, our market is big, daunting and far away.  It is precisely because the American market is large that Turkish companies need to be there.  Our gross domestic product accounts for 27% of the world economy, and it is growing.  In fact, it has achieved 3.6% average annual growth for the past ten years, substantially more than most other mature, industrialized economies.  It is probably not the easiest market to figure out but once you do, the payoff can be huge:  just a little piece of if means real money.  Today’s workshop aims to help you figure it out.  Of course, we strongly support Turkey’s accession to the European Union and the business that represents, and the diversification of Turkey’s export markets over the past five years has been a good thing.  As prudent business people, you need to sell to customers in multiple countries to diversify your customer base and lower your risk profile.

Perhaps just because of the size of the U.S. market, the Turkish government’s “Year of the Americas” strategy has decided to target a few, key states.  Segmenting our market makes a lot of sense, and it still means big opportunities.  To illustrate this, I am originally from the state of Minnesota, which is not particularly large in population or economic importance.  Its GDP amounts to $210 billion, larger than the GDP of Israel or Iran.  Our top three states combined have a GDP of $3 trillion, larger than Germany or Japan.

Much as the Year of the Americas targeted multiple states in my country, these TOBB-US Chamber workshops are being held in 5 different locations across Turkey – Ankara, Istanbul, Kayseri, Gaziantep and Izmir – to ensure that we are reaching out to the vibrant small-and medium-sized enterprises of the “Anatolian Tiger” economy.

If you can figure out how to get started in the US market, the potential payoff can be huge.  And some Turkish companies have done just that.  Mavi Jeans, to pick one example among many, now boasts a well-established brand and $45 million in sales in the American market last year.  You may be surprised to hear that Yeni Raki is now widely available in parts of Texas.

Experts you’ll be meeting with here will talk with you about how to deal with US customs and other requirements.  But let me give you a few cultural tips on dealing with Americans, especially our business people.  I think you will find Americans to be friendly.  Contrary to what you might expect, no one will care what country you come from so long as you show yourself to be a reliable, honest and trustworthy business partner.  Don’t be offended if the person you are talking to barely knows where Turkey is or knows nothing of its history or place in the world.  Geography and international knowledge are perhaps not the strongest attributes of US business.  Americans are practical and will want to get right down to business without many of the courtesies and getting acquainted that are common in many countries.  Our business representatives get along fine, as both speak the language of entrepreneurship.

It’s also important to research your market niche.  The best prospects for new Turkish exports to the US may not be in the sectors where Turkish exporters have traditionally been strong.  For example, there may be unexploited niches within the textiles sector that has been a success for Turkey, but I doubt it will be a growth sector overall.  American consumers, on the other hand, are increasing their purchases of specialty foods, especially exotic and organic foods.  Turkey’s processed food businesses may find this area of particular interest.  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 crisis, 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 look forward to their continuation so that our economic relationship can achieve its full potential.

In encouraging trade and investment, I want also 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, and this stands in the way of the deepening economic ties that both our governments seek.  In particular, we have asked for a reexamination of policies here regarding agricultural imports and intellectual property rights protection to ensure they 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 inflates 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 up 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 you all to make this workshop as useful as possible.  I wish you success in engaging with the US market – whether as a buyer, seller, investor or partner here.  Not only will this be good for you and the American business partners you find – it will also be good for the improving relations between Turkey and the United States.