(MENAFN- AzerNews)
During a recent meeting with journalists in Kayseri, Minister of
Trade Ömer Bolat highlighted the ambitious goals outlined in the
2028 vision program, which was announced shortly after he took
office on June 3, 2023. The program aims for $375 billion in goods
exports and $200 billion in services exports over the next five
years, supported by various strategies and initiatives.
Bolat noted that in his 14 months in office, he has engaged with
nearly 1,300 delegations to address sectoral challenges and seek
solutions. He reported that while imports surged to $376 billion in
2022, they successfully reduced that figure to $362 billion last
year.
In light of the current turbulent global and domestic economic
environment, Bolat emphasized that a new period of balancing and
consolidation has begun, marked by concrete targets set in the new
Medium-Term Program (OVP). He stated:
“To protect Turkiye's domestic and national industry, we have
implemented legal measures against dumping, subsidized imports, and
imports attempting to bypass customs regulations. This means
enforcing the rules dictated by our customs regime and foreign
trade policy. We have conducted antidumping investigations and
difference-compensating tax assessments in response to identified
unfair practices. We are already witnessing tangible results, with
annualized imports declining to $343 billion, leading to an
increase in our foreign exchange reserves and stability in exchange
rates.”
He added that prices have stabilized over the past two to three
months, with the disinflation process beginning to impact the
economy positively since June.“We are strictly adhering to the
laws governing foreign trade. We support just and fair trade
practices and legal imports while opposing unfair practices. We see
growth in domestic production and employment across various
sectors, which is reflected in the overall increase in employment
figures.”
Bolat also stressed the government's commitment to reducing
input costs for exporters.
“We are dedicated to developing necessary support programs
within our budgetary constraints and standing firmly behind our
exporters. A new support program has been announced to further this
goal,” he explained.“We are coordinating with the Ministry of
Treasury and Finance and the Central Bank to facilitate access to
financing and reduce costs. After September and October, as we
expect inflation to fall below 50% annually, we anticipate a
corresponding decrease in credit costs. Market trends indicate that
this shift is already underway.”
Regarding recent trade developments, Bolat noted a significant
decline in exports to Israel due to government policy decisions,
which he fully supported. However, he expressed optimism about new
opportunities emerging in other markets.
“This gap is not a loss for us; it's an opportunity to send a
strong message to the world, particularly Israel's administration.
Turkiye has taken a leading role in this regard, and we aim to fill
the void created in other markets.”
In conclusion, Minister Bolat's remarks reflect a proactive
approach to addressing current economic challenges while fostering
a resilient trade environment in Turkiye.
Bolat emphasized that the government's decision had a
significant global impact, prompting a wave of support for
Palestine in many parts of the Western world, leading to official
recognition of the state of Palestine by several Western
nations.
He noted that tangible results are beginning to emerge from the
government's disinflationary policy, which aims to reduce
inflation. He continued:
"Throughout the pandemic, the earthquakes, and the
Russia-Ukraine war, our priority has been to prevent unemployment,
boost employment, maintain a stable supply of goods, and protect
the purchasing power of our citizens. We have provided financial
resources to both producers and exporters at favorable rates while
ensuring that wages for workers and retirees have increased above
the inflation rate. As a result, consumer spending has remained
strong, and tourism has thrived in 2022, 2023, and this year,
creating significant demand for producers and sellers. However, we
are now observing a slight decline in consumption due to tightened
credit availability and rising prices, prompting a reaction from
our citizens. Industrialists are bringing this trend to our
attention, leading to a decrease in the tendency to raise prices.
These decisions are not made lightly, but as inflation decreases,
we expect a corresponding increase in export activities. A
reduction in domestic demand will encourage our sellers and
producers to seek new export opportunities in international
markets. We anticipate seeing these effects in the coming
months."
Minister Bolat reminded attendees that the Medium-Term Program
(OVP) was announced on September 7 of last year. He highlighted
that the Strategy Budget Presidency developed the OVP, and no
updates have been made to the export targets so far.
Bolat added that they have remained committed to our target for
11 months, which is significant.
"Why is this important? Last year, global goods exports fell by
5 percent, and world trade decreased by 1.2 percent, while world
services exports rose by 10 percent. With seven months of 2024
behind us, we have yet to see the anticipated rebound in the global
economy and trade. However, reaching $261.5 billion in exports by
July indicates that we are performing better than expected. This
figure represents an increase from last year's $255.4 billion,
exceeding it by $6 billion. According to the OVP, we have $5.5
billion remaining to reach our target. We are committed to working
toward this goal, and we will assess the outcomes as the months
progress. At this point, we do not foresee a downward trend in
exports. Traditionally, autumn is a vibrant season for exports. The
critical factor is that we are on the right path. Whether the final
figure is $1 billion or $2 billion above or below expectations is
less important than the fact that we have exceeded last year's
performance and achieved over half of our target."
Regarding service exports, Bolat reported that their service
exports reached $101 billion, and the annualized figure currently
stands at $106.5 billion.
"Our year-end target is $110 billion, and we are optimistic
about achieving it. July, August, and September are peak months for
tourism, and autumn typically brings an increase in transportation
revenues. We are fully committed to meeting our targets."
Bolat highlighted the proactive measures taken to improve
financing conditions, stating, "With God's permission, as we see
inflation decrease in the fall, we will all witness improved
financing conditions in Turkiye."
He emphasized the government's commitment to enhancing access to
financing and developing new financial instruments. While
acknowledging that high inflation leads to increased input costs,
he noted that prices tend to rise more rapidly than costs.
Ömer Bolat stressed the importance of safeguarding employees'
purchasing power amidst rising inflation.
"We are working to stabilize input costs and create an economic
environment where financing costs, inflation, and exchange rates
are stable. The coordination of these efforts is overseen by
economic management, and we are making progress in achieving our
macroeconomic goals as outlined in the Medium-Term Program
(OVP)."
Bolat clarified that the government does not adhere to a fixed
exchange rate policy. He reported a significant increase in foreign
exchange reserves over the past year, with an inflow of over $85
billion in foreign exchange resources since the March 31 elections.
He noted that a small portion of this inflow comes from abroad,
while the majority results from citizens and companies converting
foreign currency into Turkish Lira.
Bolat explained that the exchange rate is a crucial tool in
managing input costs. He assured that input costs will stabilize as
inflation declines. "Moreover, the TL equivalent of imported inputs
used for exports helps prevent cost increases at the current
exchange rate. This provides a significant advantage. However, it's
important to recognize that when the exchange rate rises
uncontrollably and rapidly, prices can surge in less than 24 hours.
Our political leadership and economic management are acutely aware
of this high sensitivity to inflation. This presents risks not only
for exporters but for all industrialists as input costs have also
risen. Our priority is to carry out this work in a balanced manner,
which is what we are striving to achieve."
In response to inquiries about the influx of cheap products from
certain Chinese websites, Trade Minister Bolat assured that the
situation is being monitored closely.
"We have made the necessary decisions, and you will see the
results soon."
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