From good to great: Fernandez says US-Turkish trade can grow

Even after a record 34 percent jump in bilateral trade volume last year, the US and Turkey still have room to expand dramatically their commercial ties, says US Assistant Secretary of State for Economic and Business Affairs José Fernandez. "The question is whether ties will be good or really good," said Fernandez, who also chairs the US-Turkey Economic Partnership Commission (EPC), a government-sponsored platform for strengthening the two countries' trade and investment ties. "Currently there are a number of areas where we cooperate very well, but now we're thinking about how we can help expand and improve bilateral ties," Fernandez told Today's Zaman in a recent interview.
The plan to expand those ties was first presented by US President Barack Obama and Prime Minister Recep Tayyip Erdogan during Obama's 2009 visit to Turkey, where the two agreed to find ways to create bridges and deepen investment between the two countries. Over the past three years, Fernandez said the original vision of the two leaders has developed into a number of specific proposals that demonstrate there is plenty of room to grow. "One of our chief projects has been helping Istanbul achieve its ambitions to become a major financial center. We're getting them in touch with members of the Securities and Exchange Commission, showing them the regulations, so they can see how it works," the secretary said. The EPC has also looked to help improve Turkey's energy sector. "Turkey's goal is to be a top 10 economy by 2023. Experts have said that Turkey will have to triple its electricity production if it wants to do so," Fernandez said. "What we've done is talked about efficiency -- you can raise production, but you can also work on efficiency." To that effect, the State Department helped set up a "Near zero zone" on the outskirts of the city of Izmir, where energy industry experts from the US will audit Turkish firms and make recommendations about how to raise efficiency. "It's designed to promote efficiency. It will also dramatically reduce the area's carbon footprint," Fernandez said. Just as Turkey might gain from American expertise, the secretary also emphasized the strong opportunities that US and Turkish firms might have if they seek more joint ventures. "We're specifically thinking about the construction sector here, specifically in the developing world, like Libya. How can we bring them together? There are things both sides could bring to the table." "Another growth area is pharmaceuticals. The number for drug research and development in Turkey is minimal, drug testing by Turkish pharmaceuticals is very low, given its potential. The US pharmaceutical industry says that Turkey could receive up to a billion in foreign investment a year, but they don't get anywhere near that." Fernandez suggested that there is a strong need for companies from both nations to develop deeper ties with their counterparts.