Turkey to increase its share of transit trade

February 7, 2022 5:45 p.m. (UTC+04:00)

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By Ibrahim Acar

Turkish Foreign Economic Relations Council (DEIK) Chairman Nail Olpak said the country aims to increase its share of the transit trade pie, Yeni Shafak newspaper reported.

“We have started collaborating with our Ministry of Commerce. We are continuing our negotiations to show Turkey as an address for transit trade companies,” Olpak said, adding that he met with the Ministry of Treasury and Finance in part of the process.

Olpak, explaining the importance of the issue, said Turkey is working to increase its attractiveness in transit trade, which is worth trillions of dollars globally.

Elaborating on the matter, the DEIK President drew attention to the details of the study.

“Let’s imagine that we buy a product abroad and sell it to another country. In other words, the product is sold from one country to another, with the organization of a Turkish company, without ever physically coming to Turkey,” Olpak said.

He went on to say that in many countries around the world, companies that do business in transit trade enjoy additional tax benefits, such as reduced corporate taxes.

Olpak stressed that similar measures should be implemented in Turkey in order to attract foreign investors and encourage them to establish businesses in the country.

“We see it as a critical step that will attract direct investors. This business model is used by a lot of people in our country. A person starts a business in another country and runs their business from there. We we believe that the steps that will be taken in this area will bring significant additional benefits to Turkey,” Olpak said.

He added that their organization will conduct specific studies to boost Turkey’s competitiveness and positively change the perception of Turkish business abroad through strategic lobbying.

“We have agreed with a key strategist to take our commercial diplomacy activities in Germany to the next level. We hope to collaborate with a group that will be extremely useful to us in terms of lobbying in England. A similar work objective is pursued by our French We will also focus on Russia, Japan and India, and similar studies for these three countries are an important objective,” he said.

Olpak said the organization is taking another step in the United States that will strengthen the Turkish business lobby globally.

DEIK’s president underlined the importance of regions (like Africa) where the Turkish bank is not present.

“Doing business in countries with a Turkish banking system is much more advantageous.” In this context, we will propose to the Ministry of Treasury and Finance that our Turkish banks open branches in the target countries and regions,” he added.

Olpak, who described inflation as a global problem, predicted that the country would end 2022 with an average inflation rate of around 30%. However, he ruled out any significant contraction in production and a corresponding drop in demand.

“It was very important not to disrupt the supply chain. Since we did not break the supply chain, we reached $225 billion in exports. We must do everything we can to ensure that the workings of production are not disrupted in any way. investment in machinery and equipment is extremely valuable and shows how high the demand is. We expect a significant increase in tourism,” Olpak said.

When it comes to interest rates and foreign currencies, Olpak thinks the main issue is uncertainty.

“In an uncertain environment, our main expectation is to be predictable. We believe there will be a significant shift towards currency-protected TL deposits in institutions. The flow of foreign currency into individual investments has ceased with the exchange-protected TL deposit model,” he concluded.

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