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26 November 2024

ETTIC Launches To Foster EU-Türkiye Economic Ties

New council set to advance trade, investments and sustainability through collaboration

The European Turkish Trade & Investment Council (ETTIC) has marked the beginning of a new chapter aimed at strengthening economic ties between the European Union and Türkiye. Founded as a non-profit organization, ETTIC's establishment under Belgian law, soon after receiving approval by Royal Decree, signals its commitment to promoting and modernizing the existing Customs Union framework. This venture aims not only to facilitate trade but also to bolster sustainable economic cooperation between these regions.

The genesis of ETTIC stems from the collaborative efforts of prominent European bilateral chambers of commerce operating within Türkiye. These organizations jointly recognize the vast potential for enhancing trade and investment relations. Their mission revolves around fostering economic growth, sustainability, and shared prosperity, confirming the strong desire for intertwined economic futures.

The newly launched council has ambitious objectives, emphasizing the expansion of economic partnerships. According to available data, bilateral chambers represent thousands of corporate members, facilitating trade surpassing EUR 200 billion annually and attracting foreign direct investments (FDI) of about EUR 200 billion from 2002 to 2023 between Türkiye and the EU. ETTIC intends to serve as the unified voice for European businesses engaged in Türkiye, advocating for their interests and ensuring they are represented during discussions on trade policy and investment reforms.

Dr. Markus C. Slevogt, the Chairperson of ETTIC, emphasized the organization’s commitment to transforming the economic landscapes of both parties. "Our mission is clear: to build bridges between Europe and Türkiye, unlocking new economic prospects through modernization of the Customs Union. This requires collaborative efforts from both European and Turkish stakeholders," he noted.

ETTIC already maintains strategic objectives including advocating for European businesses, promoting trade and investments, and fostering engagement with key stakeholders. The council seeks to tackle challenges related to market access and investment protection, guiding necessary legislative initiatives aligned with environmental and social governance standards to promote sustainable growth.

Notably, ETTIC is set to engage with European policymakers via its forthcoming visit to Brussels on 25–26 November 2024. This visit is pivotal for ensuring shared objectives are communicated effectively and to explore collaborative frameworks across key sectors including digital transformation, green energy, and sustainable development.

Simultaneously, Türkiye is positioning itself attractively on the global investment stage. According to KPMG, 2024 is promising for international investors as Türkiye has creatively implemented economic reforms aimed at inviting global capital. The country ranked as the 17th largest economy globally, boasting a Gross Domestic Product (GDP) of $1.024 trillion as of 2023, can be attributed partly to the foreign direct investment (FDI) of $7.67 billion recorded by September 2024 — reflecting stability and growth.

The Investment Guide to Türkiye 2024, published by KPMG Türkiye, presents pivotal insights for investors. It covers tax policies, company registration processes, and support programs targeted at foreign investors, showcasing the growing opportunities across key sectors and geographical regions. The guide ensures investors are equipped with information on work permits, R&D support, and trade policies, enhancing their navigational experience within Türkiye's investment climate.

The Turkish government is proactively addressing inflation, striving for economic stability amid global challenges. Vice President Cevdet Yılmaz announced the government aims for sustainable growth alongside inflation control, highlighting the recent increase of the Real Sector Confidence Index by 1.2 points to 103.4, indicating positive optimism among manufacturers.

The recent data from Turkey's Central Bank suggests the government’s tight monetary policies are yielding results as annual inflation declined from peaks earlier this year. The government forecasts continued economic growth, hoping to stabilize inflation rates down to 41.5% by the end of 2024.

Industrial decarbonization also takes priority as Türkiye collaborates with international financial institutions to establish the Türkiye Industrial Decarbonization Investment Platform (TIDIP). Launched on November 25, 2024, this ambitious initiative seeks to advance the transition of Türkiye's industrial sector from traditional fossil fuels to renewable sources. The platform, aiming to support Türkiye's climate goals, will promote investments across energy-intensive industries.

TIDIP will serve several key industrial sectors such as steel production and cement manufacturing, targeting pathways for decarbonization. Complementing these efforts, the government is committed to innovation and sustainable economic growth through productive collaboration with various stakeholders in the industrial domain.

On the international stage, Turkish investments are increasingly connecting with Saudi Arabia. Recent reports indicate Turkish companies are projected to contribute approximately $20 billion to Saudi Arabia’s Vision 2030 plan. The Türkiye-Saudi Arabia Business Council is witnessing heightened activity, with Turkish contractors securing substantial project contracts worth billions with their Saudi counterparts.

With over 200 Turkish firms already operating within the kingdom, significant contributions are being made to labor markets and economies of both countries. The initiative fosters energy cooperation, particularly around renewable sectors, offering pathways for mutually beneficial projects.

These developments reflect Türkiye’s strategic maneuvers in engaging with various markets and collaborative frameworks, setting the stage for increased foreign investments alongside sustainable growth trajectories across Europe, the Middle East, and within national borders. Moving forward, the commitment from ETTIC, coupled with the government’s backing of effective economic policies, augurs well for Türkiye’s economic aspirations.

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