TURKEY'S 2006 "YEAR OF THE AMERICAS"

UNCLAS ANKARA 007658 SIPDIS DEPT PASS USTR FOR LISA ERRION USDOC FOR ITA/MAC/CRUSNAK SENSITIVE E.O. 12958: N/A TAGS: ETRD BEXP TU SUBJECT: TURKEY'S 2006 "YEAR OF THE AMERICAS" ¶1. (SBU) Summary. Based on the success of similar regional strategies the GOT has been implementing since 2003, Turkey's Foreign Trade Undersecretariat (FTU) will focus its 2006 trade promotion strategy on the United States. With a target of increasing the share of Turkish goods in U.S. imports, FTU has identified five U.S. states where the FTU will focus its marketing and promotion activities, working with professional consultants specialized in the U.S. market, as well as with public-private Turkish business organizations like the Turkish-U.S. Business Council. End Summary. ¶2. (SBU) In a recent meeting, FTU Deputy Director General for Agreements Osman Bekaroglu described FTU's 2006 strategy to promote trade and investment relations with North America, with a focus on the United States. Turkey has been implementing similar annual strategies with different world regions since 2003. Bekaroglu noted that strategies for neighboring countries, African and Asia-Pacific countries resulted in increases as high as 100 percent in Turkey's trade volume with these countries. He said the GOT decided to make "the Americas," and the United States in particular, the object of their 2006 strategy given the small share of Turkish goods in total U.S. imports. ¶3. (SBU) Bekaroglu said the U.S. market's competitive nature, variety, and extensive distribution network presented opportunities for Turkish exporters. Identifying a need to find "entry points" for Turkish firms, the FTU has identified five target states -- New York, Texas, California, Florida and Illinois -- in which the GOT efforts will be focused. Bekaroglu said this selection was made based on these states' contributions to U.S. GDP and their relative propensity to import from Turkey. According to data the GOT collected from the customs points in these states, 34 percent of Turkish exports go to New York, 11 percent to Texas, 8 percent to California, 6 percent to Florida and 3 percent to Illinois. Bekaroglu said they also selected certain product groups to focus on, including vegetables, edible oils, plastics and rubber products, leather apparel and travel goods, carpets, home textiles, processed marble, glassware, jewelry, and automobile parts as product groups with a potential market in the U.S. ¶4. (SBU) Elaborating on the GOT's plans, Bekaroglu said the 2006 strategy was only an initial step and that the GOT was considering some long-term policies to promote Turkish goods in the U.S. For example, Bekaroglu said the FTU would increase the number and capacity of its commercial offices in the U.S., and noted that a trade representative had been appointed to Los Angeles this November for the first time. Bekaroglu also said FTU planned to hire a consultant specialized in the U.S. market, and to conduct U.S. marketing and promotion strategies accordingly. The tools the FTU will use include trade and buyers missions, outsourcing missions, encouraging participation by Turkish companies in trade fairs, facilitating cooperation between business associations and chambers of commerce, and organizing seminars both in the U.S. on Turkish goods and in Turkey on the U.S. market characteristics. Bekaroglu emphasized the important role sectoral "promotion groups" could play in increasing Turkish products' share in the U.S. market. Although he didn't say how, Bekaroglu thought the upcoming Trade and Investment Framework Agreement (TIFA) meetings would give a good head start to their strategy. ¶5. (SBU) Comment: Turkish Treasury officials, who are responsible for investment, separately told us the strategy also had an investment leg, but that the precise modalities had not been identified. It is important to note that this is Turkey's strategy to increase its exports to the U.S. and to attract more U.S. investment, although some officials we met diplomatically described the strategy target as "improved bilateral economic relations." Wilson