TUZMEN OUTLINES GOT'S STRATEGY TO BOOST BILATERAL

UNCLAS ISTANBUL 000393

SIPDIS

SENSITIVE

TREASURY FOR INTERNATIONAL AFFAIRS - CPLANTIER

E.O. 12958: N/A
TAGS: ECON ETRD TU
SUBJECT: TUZMEN OUTLINES GOT'S STRATEGY TO BOOST BILATERAL
TRADE


Sensitive but unclassified. Not for internet distribution.
This message was coordinated with Embassy Ankara.


1. (SBU) Summary: Foreign Trade Minister Kursad Tuzmen
outlined the GOT's strategy to increase bilateral trade with
the United States in a luncheon address to the
Turkish-American Business Council (TAIK) on March 10.
Coopting the Foreign Ministry's "Year of the Americas"--
which some TAIK contacts note was originally intended to
focus on Latin America-- Tuzmen and his Ministry have
developed a detailed action plan targeting six key states.
Among the envisioned measures are trade delegations, enhanced
support for Turkish companies participating in U.S. trade
fairs, and a "Turquality" project in New York. Noting that
the Ministry had succeeded in raising Turkey's trade with its
neighbors (in the broadest sense) from 19 to 55 billion USD
over the last six years, Tuzmen set the ambitious goal of
achieving similar result with the U.S., citing Ahmet
Ertugen's advice to a youthful Ray Charles-- "if you go after
pennies you will get pennies; if you go after dollars, you
will get dollars." End Summary.


2. (SBU) More broadly, Tuzmen indicated that Turkey seeks to
realize 100 billion USD in exports by 2010, up from 73
billion last year. Noting Turkey's miniscule share of the
U.S. market (3/1000's of U.S. imports, by his calculations,
and less for some states like California),he argued that
Turkey has neglected the U.S. and needs a specific strategy
to make up ground. That strategy, he said, will include both
target states (New York, California, Texas, Illinois, Florida
and Georgia-- representing 15 of the top U.S. ports of entry)
and target sectors. Increasing the familiarity of U.S.
companies with Turkish products is a key Ministry objective.
To that end, the Ministry will help individual firms
participating in U.S. fairs by increasing its underwriting of
their participation from 50 to 60 percent of the total cost,
while it will also send national delegations to eight major
fairs. Tuzmen also announced special trade missions to New
York, Chicago, and San Francisco.


3. (SBU) In addition, Tuzman said Turkey will build on past
efforts to introduce particular products like Turkish
hazelnuts, marble or leather to the U.S. market, while it
will also initiate a "Turquality" Project in New York to
highlight the improving quality of Turkish goods. Tuzmen
stressed as well that the Ministry's initiative is not
limited to increasing trade, it also seeks increased U.S.
investment in Turkey to further cement the economic ties
between the two countries. To that end, investment seminars
are planned in cities ranging from Chicago to California.
Finally, Tuzmen noted that the Ministry will turn to
professional consulting firms to help its efforts, and he
also gave a plug for the recently concluded agreement between
the Turkish Union of Chambers (TOBB),USAID, and the U.S.
Chamber of Commerce, arguing that it too will help to make
clear "Turkey's weaknesses and weak points in the U.S. market
and provide an opportunity to correct them."


4. (SBU) Comment: TAIK provided a good venue for Tuzmen to
roll out his U.S. trade strategy. Some staffers there have
noted delicately, however, that the Trade Ministry's
enthusiasm and initiative has shifted the focus of what the
Foreign Ministry had originally intended to be the "Year of
the Americas to a more U.S.-centric vision. End Comment.
JONES