TURKEY: AMBASSADOR JEFFREY DISCUSSES FSECC WITH

C O N F I D E N T I A L ANKARA 001817

SIPDIS

DEPARTMENT FOR E AND EEB/CBA
COMMERCE FOR U/S DESIGNATE SANCHEZ
COMMERCE FOR ITA/MAC/CRUSNAK/KNADJI
DEPARTMENT PASS TO USTR FOR CHRIS WILSON AND MARK MOWREY

E.O. 12958: DECL: 12/21/2019
TAGS: ETRD PREL TU
SUBJECT: TURKEY: AMBASSADOR JEFFREY DISCUSSES FSECC WITH
FOREIGN TRADE MINISTER CAGLAYAN

Classified By: charge d'affaires Doug Silliman for reasons 1.4 b,d


1. (C) Ambassador Jeffrey met with State Minister for
Foreign Trade Zafer Caglayan on December 18 to discuss the
new Framework for Strategic Economic and Commercial
Cooperation (FSECC). The Ambassador congratulated Caglayan
on being named as the GOT's FSECC co-chair, along with Deputy
Prime Minister Babacan. There are a few important first
steps, including the establishment of the FSECC Business
Council. The Ambassador noted that this will be complicated
on the USG side, due to US legal requirements, and it will
take a few months to complete. It will be up to the GOT to
decide how it selects the Turkish participants. The
Ambassador passed the Department of Commerce's Concept Paper
on the FSECC Business Council and a list of potential FSECC
deliverables to Caglayan. He noted that the key first step
is reaching agreement with the GOT on the Terms of Reference
for the Business Council. The USG is preparing a draft,
which we hope to present before the end of the year.


2. (C) Caglayan said the Prime Minister asked him and Babacan
to start working on the FSECC right away. He and Babacan
already agreed to meet during the first week of January to
set a calendar for the FSECC. FTU is preparing an FSECC
roadmap for this meeting. Several groups, including the
Turkish Union of Chambers of Commerce and Commodity Exchanges
(TOBB),the Turkish American Business Council (TAIK),the
Foreign Economic Relations Board (DEIK),the Turkish-American
Business Association (TABA) and the Turkish Manufacturers
Association (TIM) will be cooperating with the GOT on this
important initiative. We need to expand our economic
cooperation, particularly in energy, transport and defense
industries, Caglayan said, and the FSECC also should consider
meeting more often during the year. In the meantime, sectoral
sub-committees could be established and continue to meet.
Also, the two governments should consult during the selection
of companies for the Business Council.


3. (C) The Ambassador emphasized that the private sector is
best suited to identify commercial opportunities and
barriers. He noted a press report on Boeing sourcing a
significant amount of aircraft parts for its 787 planes in
Turkey. He said that this was the result not of government
action, but a business decision by Boeing due to the
advantages it saw in buying from Turkey. We hope the FSECC
and the Business Council will produce more such successes.


4. (C) Caglayan said our relations could expand to include
cooperation exports to third countries. The GOT already has
started a study on the US market and Caglayan plans to visit
a number of U.S. states in 2010 with a group of Turkish
businessmen. He said he would appreciate the Ambassador's
recommendations on which states to visit. This will be
separate from the FSECC. The Ambassador suggested Caglayan
visit Miami, the gateway for South American exports to the
United States and, in particular, look at the Brazilian
export center there that facilitates trade.

SILLIMAN

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