The ‘Traditional Embassy Reception,’ organized by the Ankara Chamber of Industry (ASO) to bring together the business community and foreign mission representatives, was held at the Ethnography Museum with the participation of Vice President Cevdet Yılmaz, foreign ambassadors, and representatives from the political and business worlds. ASO President Seyit Ardıç, who hosted the reception, emphasized that Ankara is making strong strides toward becoming the capital of industry and technology.
Ferhat Yüksel
NUMEROUS ambassadors, as well as figures from the business and political sectors, attended the reception hosted by ASO President Seyit Ardıç. In his opening speech, Ardıç stated that the world is passing through a period marked by concentrated geopolitical and political risks. He continued: “We are witnessing a period in which various critical issues in global economies are transforming into crises. We are going through a phase of global security concerns, political uncertainty, inflation, and high-interest rates. Although inflation has slowed in developed economies, interest rates remain high. The lack of a clear forecast that inflation will drop to desired levels prevents central banks from taking early steps. The delay in interest rate cuts continues to tighten global financial conditions. Ultimately, we are faced with a macroeconomic structure in global markets where long-term inflation is still relatively high, growth has weakened, and monetary tightening continues.”
POTENTIAL TO BECOME A PRODUCTION HUB
Ardıç noted that despite concerns about global recession and heightened risk perception, Türkiye has achieved significant export figures in 2023 thanks to its industrialists and exporters. “Our exports in the first eight months of the year reached $170.8 billion, and over the last 12 months, they surpassed $261 billion, marking the highest level in the history of the Republic. Türkiye, which exports to 220 countries, has increased its exports to 151 of them. As these figures show, Turkey has the potential to become a regional and global production hub” he said.
THE CAPITAL OF INDUSTRY AND TECHNOLOGY
While the country continues its economic development, Ankara is also making significant strides towards becoming the capital of industry and technology, emphasized Ardıç. “Our production is increasingly shifting towards manufacturing and related service sectors that create higher added value,” he stated. Ardıç highlighted that Ankara is one of the centers of Türkiye’s technology and research and development activities: “The technoparks in the capital host many domestic and foreign companies operating in high-tech sectors such as defense, information technology, biotechnology, and energy. Ankara’s R&D infrastructure makes it an attractive center for foreign investments in innovative projects and initiatives.”
Ardıç pointed out that Ankara ranks second in gross value-added production by province, and continued: “Ankara is the fifth-largest exporter among the provinces. More than 90% of its exports come from the industrial sector. In 2023, Ankara alone accounted for nearly 35% of the total defense industry exports. Our province also stands out with strong sectors such as machinery, medical, transportation, electrical-electronics, renewable energy, mining, and contracting.” ASO President Ardıç expressed his belief that Ankara, which has attracted significant investments in high and medium-high technology, will become Türkiye’s technological production and export hub in the coming years. He added, “With the ASO Ankara Technology Hub project, which we have started working on, we aim to raise the capital’s technology production and high-value-added levels to the highest level.”
“THE CUSTOMS UNION AGREEMENT SHOULD BE RECONSIDERED”
Ardıç noted that the Customs Union has been one of the most important tools for strengthening economic cooperation between Türkiye and the European Union (EU) since 1995. However, he said that changes in the global economy and the nature of trade necessitate a reevaluation of this agreement. Ardıç explained that as the only country to have signed the agreement without being an EU member, Türkiye has faced disadvantages. He stressed that the revision of the 1/95 Association Council Decision, which constitutes the Customs Union, is necessary. “In this context, Türkiye’ consultation procedures with the EU should be strengthened during the formation of EU trade policies, and an effective mechanism should be established to resolve disputes between the two parties. Additionally, issues such as Türkiye being excluded from the free trade agreements signed by the EU with third countries and the removal of quotas in road transportation need to be addressed” he said.
“OUR INDUSTRIALISTS CANNOT OBTAIN VISAS”
Ardıç also highlighted the visa issue as another problem related to the Customs Union. “Our businesspeople, who wish to travel to EU countries for business meetings, negotiations, or to attend trade fairs, continue to face visa barriers. This situation creates not only a financial burden but also a loss of time and a psychological barrier, negatively impacting the functioning of the Customs Union. In short, we sign agreements for the free movement of goods, and we allow goods to move freely, but our industrialists, who produce these goods, are left waiting at the border, unable to get visas and exhibit their products at trade fairs” he said.
A SIGNIFICANT SHARE IN EXPORTS
Vice President Cevdet Yılmaz also stated that Ankara plays a very important role in Türkiye’s high-value-added economy, production, and exports. Commenting on the economic developments, Yılmaz noted that the Medium-Term Program (OVP) strengthens predictability, thereby creating a healthy environment for investments.
MAIN GOAL: TO REDUCE INFLATION
Yılmaz emphasized that Türkiye’s economy and social welfare will improve to the extent that it can adapt quickly and effectively to green and digital transformation. He added: “While implementing this transformation, our primary goal is to reduce inflation. We must reduce inflation to create a more stable environment. Sometimes there are debates between growth and inflation. In the short term, this struggle certainly involves some challenges. However, we must be aware that in the medium and long term, there is no contradiction between growth and inflation. On the contrary, they are processes that support each other. In an environment where inflation is reduced, predictability increases, stability rises, the investment climate improves, and your growth continues steadily. Therefore, these should not be viewed as opposites.”
