Major outcomes of the Strategy are as follows:

Legal Ground
1. The number of the countries with which Turkey signed Trade and Economic Cooperation Agreementincreased to 39 in 2015 while it was 23 in 2003. This agreement establishes a bilateral regular follow-up mechanism where several subjects stretching from trade, investment and finance to SMEs, health and technology.
2. Free Trade Agreementswith 4 African countries are in force now when it was literally none in 2003.
3. Reciprocal Protection of Investment Agreementswith 19 countries have been signed so far, however, Turkey had this agreement with only 6 countries in 2003.
4. Prevention of Double Taxation Agreementswith 10 African countries are effective today in comparison with that it was only 4 in 2003.

Institutional Capacity
1. The number of Turkish Embassiesin Africa recorded as 39 African countries and Trade Counselor Offices in 26 countries while they are 7 and 4 respectively in 2003.
2. TIKA (Turkey’s Aid Agency) Officesin the continent are operating in 15 countries.
3. Foreign Economic Relations Board has established Business Councilswith African counterparts in 31 countries.
4. As of present,Turkish Airlines fly to 48 destinations in 31 countries in the continent. In 2003, it was merely flying to North Africa.

Trade and Investment Figures
1. Turkey’s trade volume with Africa totaled USD 19.5 billion in 2015, up 16% from 2008 and 258% from 2003. Turkey’s export in 2003-2015 increased almost six folded and import has more than doubled in the same period.
2. Turkey’s share of Africa’s trade volume rose to 2.3% in 2014and the share of Africa in Turkey’s trade volume was 7% in 2015. In 2003, they were 1% and 4.5% respectively.
3. Turkish FDI (stock) in Africa has exceeded USD 6 billion in 2015whereas it was less than USD 100 million in 2003.
4. Turkish contractors have continued to build Africa in 2015 and the volume of the projects undertaken by Turkish companies has grown to USD 55 billionso far since the early 1970s.

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Minister of Science, Industry and Technology of Turkey Dr. Faruk Özlü said new agreements between Turkish, Azeri and Georgian businessmen will establish strong partnerships between the countries. Turkish republic is ready to take every step to build stronger economic and commercial relations with Azerbaijan and Georgia since they hold a significant geostrategic position in South Caucasia.
Turkey is growing despite global adversity but also its macroeconomic indicators are in a positive trend. Turkish economy has been affected slightly from the neighboring countries and the world, nevertheless, Turkey is determined to do business with local currency. Relations with Azerbaijan and Georgia advance faster in comparison to those with other countries yet trade volume growth needs to be accelerated. Turkish construction companies bring investment along with their services; as a result, Turkish construction business should not be undermined. Trans Anatolian Natural Gas Pipeline Project (TANAP) is being conducted with Azerbaijan and Baku-Tbilisi-Kars railway will be completed in 2017. Efforts for the revival of mid corridor of Silk Trade Route still continue and businessmen play a key role to enhance relations.

Minister of Economy of Azerbaijan Şahin Mustafayev stated that Azerbaijan, Georgia are united with Europe thru Turkey. He highlighted Azerbaijan’s investment in Turkey since its worth is 9 billion USD. Turkey is Azerbaijan’s number 1 trade partner, furthermore, investment in Turkey will continue to increase. 330 Turkish companies operate in Azerbaijan and trade agreements between 3 countries increase trade volume tremendously.

Minister of Economy and Sustainable Development of Georgia Giorgi Gakhariaexpressed the existing collaboration between three countries should continue. Turkey and Azerbaijan are Georgia’s key trade partners and new regulations are enacted to facilitate investment and business operations in Georgia. Georgia ranks 23 in World Bank’s List of Ease of Doing Business and it holds Free Trade Agreements with Commonwealth of Independent States, European Union and Turkey thus have access to one third of global market.

Deputy Minister of Economy of Turkey Fatih Metin underlined the significance of this meeting that united business communities from three partner countries. Georgia, Azerbaijan and Turkey should remove every trade barrier in order to elevate trade volume to 20 billion USD. Three countries will meet the target in near future by uniting Turkey’s R&D and innovation infrastructure with Georgia’s rich natural resources and Azerbaijan’s strong energy infrastructure to develop joint projects.

DEİK Board Member Rona Yırcalı expressed that Turkey, Azerbaijan and Georgia are trying hard to build sustainability in the region. Economic and commercial relations between three countries lay a foundation for the triad partnership. In the previous Business Forum trade volume target has been set to 20 Billion USD yet current volume is 14 billion USD. As representatives from the business communities of three countries, our responsibility is to reach the target and make the trade volume grow. Key topics of the Business Forum will be regional business opportunities, mainly focusing on project finance models and how we can cooperate in the fields of transportation and logistics.

Turkey-Azerbaijan Trade Figures (Ministry of Economy- 2016)
Turkish Export to Azerbaijan: 1.278 Billion USD
Main Export items:Guns and ammunition, furniture, towel, iron and steel, construction materials
Turkish Import from Azerbaijan:278 Million USD
Main Import Items:Ethylene polymers, processed aluminum, electric energy, acyclic alcohols, petroleum oils
Trade Volume:1.568 Billion USD
Trade Balance: 1.008 Billion USD

Turkey-Georgia Trade Figures (Ministry of Economy- 2016)
Turkish Export to Georgia:1.177 Billion USD
Main Export Items:Plastic hoses, pipes and fittings, iron and steel, hygienic towels
Turkish Import to Georgia: 212 Million USD
Main Import Items: Meat, offal, marine animals, textile, iron, fish and marine mammals.
Trade Volume: 1.389 billion USD
Trade Balance: 965 million USD

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2. POPULATION
2.1- A population of 78.7 million (2015, TurkStat)
2.2- Largest youth population compared with the EU (Eurostat)
2.3- Half the population under the age of 31 (2015, TurkStat)
2.4- Young, dynamic, well-educated and multi-cultural population

3. QUALIFIED AND COMPETITIVE LABOR FORCE
3.1- Over 29.7 million young, well-educated and motivated professionals (2015, TurkStat)
3.2- Increasing labor productivity
3.3- Approximately 733,000 students graduate annually from over 193 universities (2015, CoHE)
3.4- More than 950,000 high school graduates with around half from vocational and technical high schools (2015, Ministry of National Education)

4. LIBERAL AND REFORMIST INVESTMENT CLIMATE
4.1- The 2nd biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2015)
4.2- Business-friendly environment with an average of 7.5 days to set up a company, while the average in OECD members is more than 15 days (World Bank Doing Business Report 2016)
4.3- Highly competitive investment conditions
4.4- Strong industrial and service culture
4.5- Equal treatment for all investors
4.6- Around 46,800 companies with international capital in 2015 (Ministry of Economy)
4.7- International arbitration
4.8- Guarantee of transfers

5. INFRASTRUCTURE
5.1- New and highly-developed technological infrastructure in transportation, telecommunications and energy
5.2- Well-developed and low-cost sea transport facilities
5.3- Railway transport advantage to Central and Eastern Europe
5.4- Well-established transportation routes and direct delivery mechanism to most of the EU countries

6. CENTRALLY LOCATED
6.1- A natural bridge between both East-West and North-South axes, thus creating an efficient and cost-effective outlet to major markets
6.2- Easy access to 1.6 billion customers in Europe, Eurasia, the Middle East and North Africa
6.3- Access to multiple markets worth USD 24 trillion of GDP

7. ENERGY CORRIDOR AND TERMINAL OF EUROPE
7.1- An important energy terminal and corridor in Europe connecting the East and the West
7.2- Located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region

8. LOW TAXES & INCENTIVES
8.1- Corporate Income Tax reduced from 33 percent to 20 percent
8.2- Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones, including total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation
8.3- R&D and Innovation Support Law
8.4- Incentives for strategic investments, large-scale investments and regional investments

9. CUSTOMS UNION WITH THE EU SINCE 1996
9.1- Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 27 countries (Ministry of Economy)
9.2- More FTAs underway
9.3- Accession negotiations with the EU

10. LARGE DOMESTIC MARKET
10.1- 48.6 million broadband internet subscribers in 2015, up from 0.1 million in 2002 (ICTA, TurkStat)
10.2- 73.6 million mobile phone subscribers in 2015, up from 23 million in 2002 (TurkStat)
10.3- 58 million credit card users in 2015, up from 16 million in 2002 (The Interbank Card Center of Turkey)
10.4- 181 million airline passengers in 2015, up from 33 million in 2002 (TurkStat)
10.5- 35.6 million international tourist arrivals in 2015, up from 13 million in 2002 (TurkStat)

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.