Made In Turkey by İstmag Magazin Grubu

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S&P upgrades Turkey to investable

“The local-currency upgrade reflects our view of continuing improvements in Turkey’s financial sector and the deepening of local markets,” Frank Gill and Leila Butt, London-based analysts at S&P, wrote in a statement. “The Turkish banking system is adequately capitalized and we expect the state will reduce its holding of some public-sector commercial banks.” Page 5

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tandard & Poor’s raised its local-currency sovereign ratings on Turkey to BBB-/A-3, an “investable” level, just one day after it cut Italy’s rating due to the European country’s fiscal and political weaknesses. The rating agency kept the foreign-currency sovereign rating on Turkey at BB, two levels below investment grade.

October 2011 Year: 10 No: 109 Ihlas Medya Plaza, 29 Ekim Cad. No: 23 34197 Yenibosna-Istanbul/TURKEY Tel: +90.212. 454 25 00 Fax: +90.212. 454 25 98 http://www.img.com.tr E-mail: turkey@ihlas.net.tr

Turkish Government shifts its priority to sustainable growth Mehmet Büyükekşi TIM Chairman

Turkish Deputy Prime Minister Ali Babacan

Turkish firms return to Egypt even stronger, businessmen say

everal Turkish companies are returning to business in Egypt after a business mission to the turmoil-hit country. Turkish businessmen will also seek joint projects with Egyptians Turkish businessmen accompanying Prime Minister Recep Tayyip Erdoğan during his Middle East trip met with more than 1,200 Egyptian counterparts, according to Mehmet Büyükekşi, head of the Turkish Exporters’ Assembly, TİM. “We have made more than 2,000 business meetings with 100 companies,” Büşükekşi told the Anatolia news agency. “This is a record breaking figure.” Page 2

Turkey performs impressively during the economic crisis

T Environment and City Planning Minister Erdoğan Bayraktar

Asset sales open to all nations

emaining obstacles in property sales to foreigners will be eliminated totally, paving the way to almost unlimited access to Turkish real estate, Environment and City Planning Minister Erdoğan Bayraktar said in a meeting in the southeastern province of Kahramanmaraş. Page 5

he Union of Chambers and Commodity Exchanges of Turkey (TOBB) President and the Association of European Chambers of Commerce and Industry (EUROCHAMBRES) Vice President M. Rifat Hisarciklioglu stated that Turkey has performed impressively during the last economic crisis. EUROCHAMBRES Joint Members Committee Meeting held in Belek, Antalya. The meeting was attended by EUROCHAMBRES Vice President M. Rifat Hisarciklioglu, EUROCHAMBRES President Alessandro Barberis, EUROCHAMBRES Vice President Pierre Gramegna, Deputy President Andrezej Arendarski TOBB President M. Rifat and representatives of the Hisarciklioglu Union Chambers of Albania, Azerbaijan, Bosnia and Herzegovina, Belarus, Georgia, Croatia, Macedonia, Montenegro, Ser bia, the Russian Federation and Ukraine. Page 3

Minister Akdag: Turkey to attract more foreign patients

Europe digs ever deeper debt hole

urope is digging an ever-deeper hole as it vows to resolve the eurozone crisis, experts said as Greece prepares for a pivotal week of international debt diplomacy. Plagued by “parochialism, pettiness and procrastination,” according to Sony Kapoor, head of the Redefine think tank, “kill the messenger seems to be the new strategy,” he told AFP en route to New York and a frantic week at International Monetary Fund, World Bank and G20 gatherings. “The otherwise fractious EU leaders have united in their criticism of the markets, the IMF and now [US Treasury Secretary] Tim Geithner for being honest about the scale of problems facing the eurozone,” Kapoor said. Page 5

urkish Health Minister Recep Akdag said Turkey hosted virtually 500,000 foreign patients in 2010. In his statement Minister Akdag announced that they had achieved signi- Turkish Health Minister Recep Akdag ficant success in several areas within the scope of Transformation Project in Health sector. Page 11

New at Anuga 2011: The Anuga FoodService specialized trade show! Page 10

urkey is withdrawing from an aggressive economic growth strategy amid global recession concerns, according to statements made by Turkish Deputy Prime Minister Ali Babacan. “We have neither a goal nor an expectation of fast growth in the upcoming period,” Babacan said, speaking on broadcaster CNBC-e. “Stability is our priority.” “Turkish growth may stand at 6 or 7 percent” by the year’s end, Babacan said, adding that this was not a concrete estimation. “It is hard to guess the external effects on 2011

growth,” he said, referring to recent moves by the European Central Bank and U.S. Federal Reserve to address the financial crisis. The Turkish Government is signaling stabilization in the economy instead of robust growth, which stood at 11 percent in the first quarter of the year. “We will not allow the crisis psychology to hold us captive,” Prime Minister Recep Tayyip Erdoğan said while speaking to his party fellows in Ankara. He called on citizens to “avoid irresponsible spending” and favor investment in property over items such as new cars. “Don’t buy luxurious houses or cars,” he said. Addressing the state of the Turkish economy, Babacan said the country had a strong growth performance in the last six quarters, growing 9 percent in 2010, a rate that jumped to 10.2 percent in the first half of 2011. The Central Bank, the Treasury Undersecretariat, and the banking regulator had taken several measures to try and avert overheating concerns, curb excessive rise in debt ratios and solidify financial stability, he said. “If an earthquake happens to your neighbors, the shocks also affect you,”

Babacan noted. The statements came amid the Central Bank’s struggle to defend the Turkish Lira’s value with several tools including buying U.S. dollars. Repeating Erdoğan’s spending-cut call, Babacan said a comfortable and calm period would come if everyone spent in accordance with their earnings. The Deputy Prime minister also said some new measures may be taken to cut the country’s credit growth. Turkey’s top business boss made a similar call for a stable economy. “In order to increase Turkey’s competitiveness and resistance, the Turkish banking sector needs to be cared for and financial stability should be sustained into the next term ahead of us,” Ümit Boyner, Head of the Turkish Industry and Business Association, TÜSİAD, said at a meeting in Istanbul. The Turkish Industry and Technology Minister said the monthly slowdown in industrial production was a flat course and controlled growth in a sense, and that Turkey’s inner dynamics could eliminate any negative impact stemming from the global economic crisis. Page 2

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Made in Turkey Economic Newspaper, October 2011

Letter From

The Editor Mehmet Soztutan Editor-in-Chief

What has changed?

Turkish firms return to Egypt even stronger, businessmen say

urkish economy is witnessing a higher-thanexpected growth rate.

As known, Turkey was the only country among the Organization for Economic Cooperation and Development (OECD) members that didn't need to intervene radically in its financial markets due to the crisis in 2008 and 2009. Turkey's economic performance has been strong indeed. Rapid growth was accompanied until recently by recordhigh capital inflows, declining debt ratios. Turkey also showed a remarkable budget performance amid the crisis compared to other G-20 countries whose public debts skyrocketed due to the crisis. Now Turkey is a different country with its stronger position both in the economy and foreign policy. The rewards can be substantial, in terms of lower interest spreads and more foreign investment, for instance. What has changed? Competition appears from all corners of the globe. To respond, manufacturers are reducing costs and increasing responsiveness through outsourcing, sourcing globally and implementing demand-driven strategies such as pull-based inventory management. All these trends cause greater reliance on third parties to manage the manufacturing and delivery of products to customers. Supply chain management no longer involves arm's length transactions with traditional, serially managed supply chains. These game-changing trends have shifted the supply chain focus from inside the enterprise to outside, across a network of suppliers and service providers. Leading companies have evolved from traditional, serial supply chain management toward dynamic, agile, multicompany supply network management. Turkey's own emerging potential and its market attractiveness for an incremental share of world foreign direct investment (FDI) inflows have also been confirmed by major developed countries designating the country as one of the ten Big Emerging Markets along with China, India, Russia and Brazil, which are expected to offer the greatest commercial growth opportunities in the 21st century due to their high economic growth and rapidly growing population. Turkey is an attractive location for foreign investment because of its emerging role as a springboard for foreign companies to access the newly emerging markets of the Mideast and Central Asia via entering joint ventures with Turkish partners.

business.” Limak Contrsuction, a subsidiary of Turkey’s Limak Group, will start next month construction work at Cairo’s airport and its new terminal building, according to Vice Chairman Sezai Bacaksız. Limak won the tender for the construction but did not start the construction due to turmoil in the country. Bacaksız told Anatolia that Turkish companies were seeking joint projects in various parts of Africa with Egyptian firms. Elif Çoban, chief executive of Turkey’s Şölen Gıda, said Egypt should solve its problems at customs and cut tax rates to attract foreign investors. “Once we solve these problems, no one can stop Turkish companies there.” Working with distributors in Egypt for 12 years, Şölen products are sold everywhere in the country, she said. Egypt welcomed the Turkish businessmen, agreed Cemelattin Sarar, chairman of Sarar. The company, which has operated in the North African country for six years, is preparing to open three more stores there, he said. Meanwhile, Egyptian businessmen will visit Turkey’s southern province of Adana, said the Adana Chamber of Industry in a written statement. The Egyptian mission will mainly consist of representatives of companies active in agriculture, furniture, textiles, energy and machinery businesses, the chamber said.

Turkish Government shifts its priority to sustainable growth

Turkish Deputy Prime Minister Ali Babacan

Continued from Page 1 urkish Industry and Technology Minister Nihat Ergun said when the rise in industrial production is taken into consideration, it is possible to say that the growth rate of the Turkish economy can be more than 7 percent by the end of 2011, when commenting on the world’s economic

Continued From Page 1 long with the meetings, a panel forum was organized for construction, transportation and overall investments. Recalling that Turkey and Egypt had undersigned a free-trade zone agreement, Büyükekşi, said, “We want this agreement to be harmonized with the free-trade zone deal with the European Union in this new period in Egypt. This is what we ask for particularly in the food business.” Erdoğan set a $5 billion goal for mutual trade with Egypt in addition to another $5 million goal for Turkish investments in the country. “The Turkish investments in Egypt stand at $1.5 billion . The potential for mutual trade is $3.1 billion. Investments in this country would also contribute to a rise in exports,” Büyükekşi said. Egypt is expecting investments in the textiles, ready wear, energy, health, cleaning products, building equipment and construction sectors, he said. The Turkish businessmen in Erdoğan’s mission witnessed great interest in Egypt, according to Zuhal Mansfield, head of Egypt-Turkey Council at the Foreign Economic Relations Board, or DEİK. “Egypt is the right place to trade because some rules are set there. They love us and are ready for all kinds of cooperation.” The meeting in Egypt would reflect in exports and investment figures, said Mansfield. “This much enthusiasm will surely result in new

crisis on private TV channel. Turkey had the required inner dynamics that could eliminate the negative impact of recent economic developments, he said. Turkey grew 8.9 percent in 2010, and 11 percent in the first quarter of 2011. Turkey’s industrial production index increased 6.7 percent in June 2011; how-

ever when compared to June 2010, the figure falls below market expectations. TurkStat said that the industrial production index also rose 1.1 percent in May 2011, when compared to May 2010. In industrial subsectors, the mining sector decreased 2.2 percent and the manufacturing sector index increased 7.5 percent; while electricity, gas,

steam and air conditioning supply index increased 4 percent in June 2011, when compared with June 2010. The calendar-adjusted production index in June 2011 increased 6.9 percent when compared to June 2010, and the seasonally and calendar-adjusted industrial production index decreased 0.9 percent when compared to May 2011.

IMF revises Turkey’s growth to 7.5 pct in 2011

urkey’s economy will grow by 7.5 percent in 2011 and 2.5 percent in 2012, according to the IMF report on the global economic outlook. IMF has revised its previous prediction about growth of Turkey for 2011 and 2012. The IMF’s GDP estimation for Turkey in a previous revise was 6.6 percent for 2011 and it was 2.2

percent for 2012. The report said consumer prices would increase 6 percent this year and it would stand at 6.9 percent in 2012. IMF’s previous estimations for Turkey consumer price was 5.7

percent for 2011 and it was 6 percent for 2012. The report said current account balance/GDP ratio would increase to -10.3 percent in 2011 and it would drop to -7.4 percent in 2012. The previous re-

port estimated that the figure would stand at -8 percent for 2011 and at 8.2 percent for 2012. According to the IMF report, unemployment in Turkey was expected to stand at 10.5 percent this year and it would increase to 10.7 percent in 2012. Previously, the fund estimated that unemployment would be 11.4 percent in 2011 and it would be 11 percent in 2012.

Letters to the Editor

turkey@ihlas.net.tr

Capital flows

Financial linkages

Emerging economies are now so closely integrated with advanced economies that financial stress transmits rapidly and forcefully, with financial linkages a key channel of transmission, according to new IMF research. But the decline in capital flows to emerging economies following a crisis may be protracted, given the solvency problems faced by banks in the major industrialized economies that provide significant financing to emerging markets. M. peer/ Basel

As the subprime crisis unravelled, both goods and assets trade retreated, or at least relocated. It is an open question whether the change was a consequence of the crisis, or did actively contribute to its diffusion. World trade can fall as a result of the collapse in economic activity, and international capital can be withdrawn because recessions are a bad time to invest. Still, international financial linkages are often accused of having channelled the international diffusion of the shock. N. Struck/ Berlin

Eurozone in danger The European Union will not survive if it fails to overcome a debt crisis plaguing the euro single currency area, the bloc's president Herman Van Rompuy has said. Van Rompuy said that the EU and eurozone were in danger from alarm in the financial markets, just hours before finance ministers met in Brussels. "We all have to work together in order to survive with the eurozone, because if we don't survive with the eurozone we will not survive with the European Union," Van Rompuy said in a speech. He said he was "very confident" the EU would overcome the crisis, thanks to "courageous measures" taken by states "to reduce expenses at a time of populism, despite massive protests on the street and knowing they risk electoral defeat." M. Gear/ Paris

Financial openness Capital is repatriated as financial intermediaries "de-leverage" their balance sheets with the result of – perhaps – exporting the crisis to borrowing, developing economies. There is overwhelming evidence world cycles have become significantly more synchronised with the crisis, relative to the 1980's. I consider two conventional determinants of business cycle correlations, or particular relevance in the current context. I compute the intensity of bilateral trade, and a measure of mutual openness to financial flows. Both before and after the crisis, rich countries are synchronised, even more so if they are trade partners. Financial openness also drives synchronisation up, albeit less significantly. This happens both in rich countries, and (albeit more weakly) in developing economies. G. Bruce/ Basel

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Made in Turkey Economic Newspaper, October 2011

Turkey performs impressively during the economic crisis Continued From Page 1 peaking at the opening of the meeting, Hisarciklioglu stated that Turkey is rising in the global field as a more active actor and that Turkey is the 16th among the G20 countries as well as the 6th largest economy in Europe. Hisarciklioglu touched on the fact that Turkey has the strongest free market economy and private sector between Italy and China. Hisarciklioglu drew attention to the many important construction projects being implemented in the four corners of Turkey and that Turkish construction companies are listed as second only to China. Hisarciklioglu stated that the share of Turkish contractors in the World Bank bids has been steadily increasing. Stating that Turkey is an important logistics base, Hisarciklioglu reported that Turkey’s TIR fleet is the second largest land transportation fleet in the world. Hisarciklioglu said, “Additionally, Turkey, with its, cultural heritage and natural beauty is the world’s 7th largest tourism destination.” Hisarciklioglu stated that there are 26,000 foreign companies operating in Turkey and went on, “50,000 Turkish exporters are active in global commerce. The enterprises of the last 30 years have enabled the transition from rural economy to in-

dustrial. Our per capita income has increased to $14,741 from $2,063 in1980. Our exports have increased to 130 billion dollars. The share of industry in our exports has increased from 10% to 92%. Turkey’s EU membership Stating that Turkey’s largest commercial partner is Europe, Hisarciklioglu said that Turkey, which has been in partnership with Europe since 1963, started the membership process in 2005. Hisarciklioglu continued, “Although we could be happier with the progress of the admission negotiations, 13 chapters of the negotiations have been temporarily been concluded. That leaves 22 chapters to go. The negotiations have slowed down due to reasons unrelated to Turkey’s technical capabilities. The EU admission process has facilitated Turkey’s compliance to the Copenhagen Political Criteria. They have been a reference point for Turkey.” Expressing that the economic and social transformation started in the 80s has gained speed in the first half of the 2000s and moved Turkey forward, Hisarciklioglu emphasized that the driving force behind the economic progress has been the private sector’s investments. Hisarciklioglu stated that,

with every step taken towards a free market economy, the Turkish private sector has become more active and successful, both domestically and globally. Turkey has broken a record Stating that Turkey has become an important focus in the newly forming multiple-pole system, Rifat Hisarciklioglu said that in addition to Istanbul, many cities in Anatolia have joined the transformation process and have become centers of attractive modern city life in addition to their industrial enterprises. Hisarciklioglu said, “Turkey has performed impressively during the economic crisis” and he went on that even though Turkey had suffered a setback

TOBB President M. Rifat Hisarciklioglu

of 4.8, in 2010, with a growth of 8.9%, has overcome the effects of the crisis in regards to growth. Hisarciklioglu also stated that, “This crisis was, in a sense, a stress-test for our institutional structure. However our governmental institutions, banks and companies have passed this test successfully. The Turkish private sector has proved that it can adapt to harsh conditions. The growth performance is still going strong in 2011. Turkey has broken a record with 11% growth in the first quarter of 2011.” Relating that Turkey operates in the 10 trillion dollar economic volume area between Italy and China, Hisarciklioglu said that this displays the increasing capacity of the Turkish business world.

Mall Mania and Small Businesses

urkey has been undergoing radical changes in many fronts. Developments and transformations in the economic, political, cultural and intellectual fields are some of them. The economy, the people, the culture and the power relations are changing fast and a new world on these platforms is being constructed in the country and in its neighbor. Turkish economy has achieved a remarkable success after the financial crises at the early years of the century. Chronic inflation that persisted for almost five decades has been lowered drastically down to the single digits, and expenditures are up. Market figures and retail operations are good examples that signal the economic developments in the country. While economy is breaking records after record in growth rates retail business is booming with a growth rate of 12 percent last year. Turkey was the fastest growing country in the first half of the year 2011. At the second half it ranked at second after China. Actually, Turkey, among many others, is also famous with its bazaars, caravansaries of the past, and with shops and shopping malls of modern times. The world’s oldest and greatest market place, the Grand Bazaar has been serving since the fifteenth century in Istanbul and now it has been visited about half a million people daily. Millions of visitors of both domestic and foreign are eager to get in there to feel the power of the economy and the past of the retail business and also to buy articles. This proves the fact that it still keep deep interest of buyers. During the last two decades a shopping center furry has been observed. New buildings are constructed as shopping malls and living places for the cities’ populations. The people in all over the country and especially in larger cities have been spending more time and seeking growing buying experiences in modern shopping malls, located in almost all the larger cities of the country. People are seen that they love to shop in especially Istanbul, the commercial capital of Turkey. Turkey’s per capita growth of national product continuous to grow up seven percent in 2005 and over six percent in 2006. It runs now up more than ten thousand dollars. It is expected to double in the next five years. New spending power comes with a new age. In Istanbul there is no greater example of burgeoning

consumerism than the American style shopping mall in the city. Many of them have propped up across the country that utilizes all marketing tools as shopping centers of the twenty first century. With its designer shops, movie theaters, lavish food halls, the exponential rise of the state of the art malls the shopping centers are the proof of the fact that Turks want to spend cash in style and in quality. Malls combine the shopping and entertainment experiences that were enliven as in families or as individuals. Consumers shop their needs at hygienic and clean environments. There are approximately 30 large malls in Istanbul and more than hundred had scattered in the country and dozens more are planned nationally. Investors and mall developers rub their hands in anticipation of greater profits but there are two sides to every point. Mom and Pop shops, small business and local stores are not happy with the development. The small business owners association estimates that for every new mega mall some fifty local family run shops are forced to close in the surrounding area. There was a neighbourhood relationship between owners and customers of local shops. They were friends in need, that even payments might be postponed or aggregated. With the advancement of mall, the fabric of society may either is to be irrevocably torn or irrevocably strengthen. No one was sure. That’s true. Shopping mall offers a new way of life for the masses. And the advancement of shopping mall may seen a signal that whole society and country is developing. However, what about the aftermaths of closing local shops that were once the pillar of the both society and economy. Whatever the impact there is little debate that the mall mania is driven Turkey to the future by benefitting the nation’s Prof. Dr. İsmail Kaya long retail heritage.

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Made in Turkey Economic Newspaper, October 2011 GROUP CHAIRMAN: H. FERRUH IŞIK

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Globalization spurs global crisis

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n 2010, an optimistic atmosphere had in 2011, and further to 1.8 percent in 2012. appeared in the global economy, but “Countries under market pressure will continsomehow the crisis has seemingly ue to suffer from deeper fiscal austerity measreturned towards the back. The positive ures, sharper private-sector balance sheet breeze has steadily left its place to a gloomy deleveraging, and more severe structural unemployment, with Portugal and Greece weather. Last year, the global economy had begun to expected to remain in recession until middirect towards recovery from the global crisis 2012 and early 2013, respectively.” that hit the world economy in 2008, in 2011 as The IMF’s latest forecasts indicate that global growth is projected to slow to 4 percent this if the pointer indicates a new one. In recent months, across the world in both year and next. The advanced economies will manage only an anemic 1½ Europe and the USA 2 percent. Clearly, the demonstrators spilled on recovery of the global the streets to protest the economy remains disgovernments’ economy turbingly weak and uneven. policies for better manageMeanwhile, the IMF urges ment. the governments to take The latest crisis had broken bold steps to get rid of the out in the US regarding subcrisis. But these bold steps prime housing market would put the peoples of which is shown as the prithe related countries under mary reason behind the pressure. Because of ausglobal economic meltterity programs of the down. nations, so expenditures Now the world’s economy Ibrahim Kupeli would be cut off and lay is going to face a new criikupeli@img.com.tr off would be increased. sis. Yet the effects of the global economic crisis, These implementations would also urge peowhich broke out in 2008 regarding sub-prime ple to demonstrate more. housing market, a new one’s wind has begun There are also advices for the USA, the giant economy of the world, “The U.S. for example to blow in the world. Since the first half of 2011, the global eco- would have to end all its wars, close its 1,000 nomic activity has weakened and has per- global military bases and slash its military spending. It would also have to ask its people formed more uneven. When we look at the developments in 2011; not to borrow and spend money they don't some unexpected events could cause to have to buy foreign made goods they can't change the normal condition into unwanted afford but instead ask the cooperation of condition. In the early months of 2011, the China and other creditors to help America world was shaken by some surprising devel- reestablish U.S. production.” Unless, the rules of economy work according opments and events. One of harsh shocks was experienced in to its measures, crisis would be inevitable. Across the world economic crisis is being Japan. A devastating earthquake and tsunami in experienced for 3-4 years. Due to globalizaJapan, which is one of the leading economies tion, the world has diminished much, for these of the world, disrupted global manufacturing. reason interactions of the events have become Before it, the Arab spring has started and very quickly. The events as online reach every drove up oil prices, as well as production and point of the world; it is not possible to escape. consumption deepened. Financial strains and Economy is a system of production, distribusovereign debt markets deepened in the euro tion and consumption. So Much work falls on the shoulders of the world leaders, econoregion. Growth in the U.S. slowed sharply. According to the IMF’s Regional Economic mists, civil society organizations and NGO to Outlook, the growth for all of Europe to slow allow economies work confirming to the prindown from 2.4 percent in 2010 to 2.3 percent ciples.

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Made in Turkey Economic Newspaper, October 2011

Standard & Poor’s upgrades Turkey to investable Continued From Page 1 ill is scheduled to join a press meeting in Istanbul on the agency’s new presence in Turkey along with Yann Le Pallec, head of corporate and government ratings in Europe, Middle East and Asia. The higher rating for local-currency debt “says that they are less worried by public finances, but are still worried by the external financing position,” Timothy Ash, chief emerging-markets economist at Royal Bank of Scotland Group, said in an e-mailed statement. “Still welcome news.” “I was expecting such a decision but it is not enough,” said Turkish Economy Minister Zafer Çağlayan in a written statement after the decision. “Our foreign-currency investment rating should also be upgraded.” With its strong political and economic stability, Turkey deserves more, according to the minister. The upgrade will help boost foreign investment in the country, Çağlayan said, calling the $9.1 million foreign direct investments in the first seven months of the year an early indicator. The Istanbul Stock

G Environment and City Planning Minister Erdoğan Bayraktar

Asset sales open to all nations Continued From Page 1 draft was being prepared in the ministry that would allow foreign nationals to own property in Turkey regardless of the reciprocity principle that used to block nationals from 89 countries that did not allow Turkish citizens to own property in their countries. The new law will allow citizens from Russia, Central Asian republics and Gulf countries to own property in Turkey. Real estate experts assume a capital flow of $5 billion into Turkey in the first year the law goes into effect. Foreign country citizens will be able to buy apartments, houses, land, offices and summer homes in whichever province they want, Bayraktar said. The only limit would be those areas where military, security and national strategy restrictions exist, he said.

Exchange’s main ISE 100 index gained more than 4.5 percent on nearing 62,000. Vedat Akgiray, president of the Capital Boards Market, or SPK, said the S&P move was in point. “Personally, they could upgrade Turkey’s note to a higher degree. It’s not a surprise.” “The markets went crazy,” said Özgür Altuğ, chief economist at BGC Partners, in a note to investors. According to Altuğ, the upgrade may result in four things: the Turkish Treasury could issue longterm Turkish Lira denominated eurobonds from now on, the Turkish corporate could borrow via lira-denominated instruments from international capital markets, the cost of lira borrowing could decline, and the current account deficit financing quality could improve slightly because of longer-term lira borrowing. “We remember years ago Brazil doing its first 30year real-denominated eurobond issue and it was very successful,” he said. “Now might be the time for Turkey.” Botan Berker, general manager of Fitch Turkey, meanwhile, said his

Europe digs ever deeper debt hole Continued From Page 1 uropean Central Bank chief Jean-Claude Trichet was more upbeat of the 17-nation eurozone’s debt situation, insisting that “taken as a whole, it is probably better than other major advanced economies.” Facing demands from Geithner to up funding for eurozone rescue packages, Germany insisted that Washington would have to drop its opposition to a wished-for tax on financial transactions-although that suggestion drew short shrift. Trichet’s remark was seen as a pointed rebuttal to implied criticism by Geithner, who warned during talks with EU counterparts in Wroclaw, Poland that “governments and central banks need to take out the catastrophic risk to markets.” The European Union adopted its defiant stand towards Geithner after delaying a decision on when to release blocked bailout loans for Greece. Boston University’s Vivien Schmidt, a longstanding expert on EU affairs, wondered whether ministers were “leaving time for commercial lenders to offload some more of their toxic holdings to the European Central Bank.”

E Turkish Economy Minister Zafer Çağlayan

agency’s “wait and see” policy to raise Turkey to investable continued. Speaking to broadcaster CNBC-e, Berker said what was important for a country was the foreigncurrency sovereign rating. “We could raise the ratings on Turkey if, once the economy cools as we expect, it can reduce its current account deficit

and slow its domestic credit growth without too badly affecting its fiscal accounts or financial-sector stability,” the S&P statement said. “We could also raise the ratings if deeper reforms to social security resulted in a stronger fiscal performance that started to substantially reduce the government’s debt.

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Made in Turkey Economic Newspaper, October 2011

Tur no ver and prod uc ti on New regulations for more in construction heat insulation sector up in I Q2 mporting 73 percent of its energy, Turkey’s energy imports reached by 34 billion USD in 2010. In spite of this, Turkey does not use its own energy efficiently. In houses, 34 percent of the total energy is used in Turkey, 80 pct of this is used by heating purpose. There is also energy spend for cooling purpose in summer months. In other words, the biggest blackhole stems from heat insulation. The officials, who have perceived the time ‘to say stop to this condition’, are preparing to make crucial regulations via Energy Efficiency Strategy Certificate. Among these; there are serious administrative sanctions, encouraging activities via real-estate taxes, as well as various regulations for those which do not have Energy Identity Certificate and energy tag class on Energy Identity Certificate and the buildings that do not meet minimum limit value which have been identified for the new buildings would not be rented by public bodies. In Turkey, there are over 8,5 million licensed buildings, over 18 million licensed homes. 5.6 percent of these build-

ings, as for homes only 10 percent of them have been insulated conforming to the standards. However, heat insulation comes first, in particular to reduce needed energy in heating and cooling of buildings, raise efficiency and making up comfortable living areas. If heat insulation is made by true material and applications, heating and cooling expenses reduce averagely 50 percent. In addition to economic side, there is also ecologic side of the work. According to Greenhouse Gas National Inventory in 2007, 32 percent of the total 106 million tons of carbon dioxide emissi-

on, in other words 34 million tons stem from buildings. If the precaution will not be taken, the energy consumption of dwelling and service

T Turkey’s energy efficiency roadmap. The most im por tant regulations are in the he at insulation are a in Energy

sector would reach by 47,5 million TEP and carbon dioxide emission would double by 2020. E n e r g y Efficiency Strategy Certificate, which has been prepared by the partnership of many ministries, municipalities and organizations in the coordination of Energy and Natural Sources Ministry and Electric Affairs Study Administration, constitutes

Efficiency Strategy Cer ti fi ca te aiming to redu ce energy demands and carbon emis si on of buildings and buildings which use renewable energy resources, sustainable, environmentally friendly buildings. The Energy Iden tity Certificate will be compulsory for the current buildings from 2017. Dow Building Solutions Products Sale Manager Gokhan Kurt reminded Energy Identity Certificate which is into force since the beginning of 2011 to date and so heat insulation has become an obligation.

he Quarterly turnover and production in the construction sector increased 10.5 and 13.1 percent respectively in the second quarter of 2011 over the same quarter of the previous year The Quarterly Turnover Index in Construction with the base year 2005=100 and calculated according to the NACE Rev.2 classification increased by 10.5% in the second quarter of 2011 com-

pared to the same quarter of the previous year, according to the statement of Turkish Statistic Institute (TurkStat). Turnover Index in Building Construction reached from 113.5 to 126.7, increasing by 11.6%; turnover index in Civil Engineering reached from 133.5 to 145.5, increasing by 9.0% compared to the same quarter of the previous year. Production in the sector

inc reased by 13.1 percent As for the quarterly production index in the construction sector based on the year 2005=100 and calculated according to the NACE Rev.2 classification increased by 13.1% in the second quarter of 2011 compared to the same quarter of the previous year.

Produ c t i o n Index in Building Construction reached from 112.1 to 129.5, increasing by 15.5%; Production Index in Civil Engineering reached from 169.1 to 176.9, increasing by 4.6% compared to the same quarter of the previous year.

The 80th Izmir International Fair held

he 80th International Fair held in the western province of Iz-

mir. At the opening Cahit Kirac, governor of the province, said, “Izmir has a long history of fairs and trade shows. Now, Izmir is among candidates to host EXPO 2020. We call on everyone including politicians, nongovernmental organizations, press organs, businessmen, industrialists and citizens to support us in this process.” Meanwhile, Culture & Tourism Minister Ertugrul Gunay opened stand of Austria,

partner country of this year’s trade show. He thanked Austrian Minister for Economics, Family, & Youth Reinhold Mitterlehner for taking part in the event. Mitterlehner extended Austria’s support to Izmir’s candidacy to host EXPO 2020. A total of 1083 firms, (256 of them were from abroad) from 55 countries, 1 million 511 thousand people visited the fair. Izmir International fair The theme of this year’s trade show was “Environ-

ment and Environment Technologies”. The fair also held IEF Environment Summit on September 15 and 17. Austria has been the partner of Turkey’s first international trade show this year. As the partner country, Austria had a 600-square metre stand. The event brings together Turkish and Austrian investors at four different events about environment, urban planning, tourism and alter-

na ti ve architecture. A total of 1,083 companies including 256 foreign firms from Austria, People’s Republic of China, Germany, Romania, Kuwait, Indonesia, Ukraine, Poland, Iran, Iraq and Slovenia participated in the fair. The 80th IEF took place at Izmir Kulturpark International Fair Center.

Sector learns innovations of TS 11758-2 via BITUDER

ITUDER (Association for Bituminous Waterproof Producers), which has undertaken leading roles in waterproof sector to prepare standard and regulations in Turkey, participated in MEGABUILD Eurasia Building Materials Fair which is the meeting venue of construction and materials industry, featuring one of the locomotive sectors, on 811 September 2011. The association illuminated the sector about importance of waterproof, advantages of bituminous covers and TS 11758-2, the application standards. Issuing “Bituminous Covers’ Application Rule Standard of TS 11758-2 which was managed its preparation works together with IZODER, BITUDER informed about this new standard at the fair. At the fair where foreign countries’ ministers including Iraq, Macedonia and Ghana were hosted in Istanbul, targeted to gather all polymer bitumino-

us cover producers under a single roof, Meltem Yilmaz, the secretary general of BITUDER, announced about application rule of TS 11758-2 for bituminous covers which has been issued first time in Turkey. Secretary General of BITUDER Meltem Yilmaz stressed that water would be a risk for bearing systems and harm for the durability of buildings at the fair where they have found opportunity to introduce Turkish construction material industry’ innovation and development to the world. After this, the waterproof materials would be produced according to this standard’s rules, Yilmaz said that thanks to this the fittings of buildings to be protected much trustier against earthquake which might lose their bearing feature regarding corrosion. Illuminating his visitors about quality product and applications and CE Certificated products, Yilmaz

responded the questions about technical performance value of bituminous products against waterproof and suitable use areas. Yilmaz high-

Meltem Yilmaz Secretary General of BITUDER

lighted that BITUDER members operate their production conforming to the CE certificate and the EU criterions and high in quality products.

7 -iiff - bisan:7. sayfa 06/10/11 5:30 PM Page 1

Made in Turkey Economic Newspaper, October 2011

For pure fruit juices by fresh fruits from their branches: Emsan Multi Press

ow time is for p o megranates. In order to get very fresh pomegranate and orange juices like on their

branches, Emsan Multi-press is truly for you. Pure juices of fruits with their vitamin are transferred onto your tables via Em san Mul ti Press cit rus fruit press. No doubt, one of the most enjoyed fruits of fall is pomegranates. Being rich in terms of vitamin C, including potassium and ferro, pomegranates is one of the most natural solution to strengthen your immune and respiratory system in autumn. Emsan offers a very special product

to drink very fresh pomegranate juices in this fall. Featuring a practical design being able to provide every kind of citrus fruits such as orange, lemon and grapefruit as well as pomegranates, also having an improved special strainer Emsan Multi-press remains fewer residues. Adding nostalgia to the kitchens with its classic design, Emsan Multi Press also features ergonomic and stainless steel wide volume. Having fixed truly on ground with plastic sole which prevents sliding, it has utmost safe against kitchen accidents. In order to meet daily vitamin need for both you and

Maximum durability by Woolstretch Technology in Abdullah Kigili Suits fabrics provide maximum durability to the suits which are produced by Woolstretch technology and increase dynamism. Natural flexibility and durability are won to 100% wool fabric by WSF technology inspiring from the naturalness of wool’s stretch without reducing wool ingredient and without using elastin. Thanks to this, while the fabrics provide

eing distinctive with its high in quality line, Abdullah Kigili constitutes distinction due to producing its suits with smart fabric technology (Woolstretch) and solely weighing 250 gr. Without making concession from the quality, with its exclusive design line, the smart fabric technology ‘Woolstretch’ marks on the 2011-2012 Fall/Winter collection of Abdullah Kigili. 100% wool

maximum durability and movement ability, natural flexibility, comfortable use and care easiness as well as dynamism. On the contrary of elastin fabrics, Abdullah Kigili Suits, which are dressed by ‘Smart Fabric Technology’ are durable to dry cleaning and ironing, have been produced in different choices in 4 - 6 - 7 drops, ranging from 46 size to 62 size as checked, striped and micro designed. Only 250 gr Weighing only 250 gr, 100% Merinos Australian wool the smart suits offer use comfort in all seasons thanks to the features such as breathing and wrapping body up. The recommended sale price of Abdullah Kigili Woolstretch Suits is TL895.

your family, Emsan Multipress is preparing to take place at your kitchens with its attractive price option TL139. The fruit juices that you obtain easily by Emsan Multi press will be among the favorite drinks both you and your lovers.

Freedom for children in autumn via B&G Store

& G Store, which considers comfort of children, will mark on Fall-Winter season with its soft, flexible and comfortable products. B & G Store has prepared a collection with the brand of Riccione Basic for children which are composed of sports and comfortable models in the fall-winter season. These colorful products which address between 2-14 age groups are constituted knitted fabrics. In the collection that made of 100% cotton, there are tracksuits, polos, t-shirts and shirts as well as jean trousers and unisex jean jackets. The foremost brands of the world; Bikkembergs, Baby Graziella, Patrizia Pepe, Miss Sixty, Energie, Brooksfield child lines are included in its structure, B & G Store also offers its own brands; Riccione, Tyess, BG Baby, Riccione Basic, Riccione Firstline and Nebbati bb, in addition to chic and rich choices. A leading brand of child’s wear brand with its 49 stores in both home and abroad, B & G Store maintains its claim with its some 1000 models, preparing in every season. B & G Store enables children act free with its exclusive designs in its fall-winter season.

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Made in Turkey Economic Newspaper, October 2011

IMF: Weak and bumpy global recovery ahead G lobal growth forecast to moderate to 4 percent in 2011 and 2012, according to the survey of IMF. Advanced economies facing anemic growth of only 1.6 percent in 2011. Multiple shocks combined with insufficient rebalancing stalling recovery. The global economic recovery is slowing, with world growth projected at 4 percent in both 2011 and 2012, down from over 5 percent in 2010, the IMF said in its latest forecast. And even this lowered projection counts on a lot going well.

The IMF foresaw a slowdown this year after strong growth in 2010 as fiscal stimulus packages in response to the crisis wound down. But a barrage of economic shocks in 2011 combined with other factors for a worse than anticipated outcome. “The global economy is in a dan ge ro us new phas e. Glob al ac ti vity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing,” the IMF said in its September 2011 World Economic Outlook (WEO). The report, released in Washington on Septem-

ber 20, says strong and coordinated action is necessary to avert a decade of lost growth in the advanced economies. “Strong po li ci es are urgently needed to improve the outlook and to reduce the risks,” said IMF Chief Eco no mist Oli vi er Blanchard. “Only if governments move decisively on fiscal policy, financial repairs, and external rebalancing, can we hope for stronger and more robust recovery.” Uneven growth Real GDP is expected to grow by a fairly robust 6.4 percent in emerging and developing economi es but by only 1.6 percent in advanced economies in 2011. These WEO projections rest on a number of assumptions: that European policymakers will be able to contain the euro are a cris is to the socalled periphery countries, that U.S. policymakers strike a judicious balance between support for the eco nomy and medium-term fiscal consolidation, and that ups and downs in global finan ci al mar kets don’t get worse. If the as sumptions are not met, global growth will be much lower.

Turkey achieves 8.8 p.c. of growth in Q2 is ti cal instiu t e

ur key grew 8.8 percent in the second quarter of 2011, according to Turkey’s stat-

t (TurkStat). The second quarter gross domestic product in 2011 compared to the same quarter of previous year increased by 8.8% in constant prices. The second quarter gross

domestic product in 2011 increased by 19.2% and reached to 318,404 Million Turkish Liras in current prices. The second quarter gross domestic product in 2011 increased by 8.8% and reached to 27,910 Million Turkish Liras in constant prices.

Annual gross domestic product in 2010 increased by 15.9% and reached to 1,103,750 Million Turkish Liras in current prices, increased by 9.0% and reached to 105,739 Million Turkish Liras in constant prices. The per capita gross domestic product in 2010 is 15,119 Turkish Liras and

10,067 USA Dollar in current prices. Calendar adjusted gross domestic product in second quarter of 2011 increased by 8.3% compared to the same quarter of previous year, seasonal and calendar adjusted GDP increased by 1.3% compared to previous quarter.

Dervis: “Turkey, one of the most prosperous countries in 2023”

ice-President of Brookings Institute and a member of the Sabanci University Advisory Board, Kemal Dervis said that if Turkey’s dynamism continued, it could go much further in the next 10 years than it did in the past 10 years. In his announcement Dervis said that Turkey might be able to develop further and, as hoped, could become one of the most prosperous countries in the world in 2023, the year when the Republic of Turkey will celebrate the 100th anniversary of its foundation. Marking Turkey’s future is highly promising, Dervis Said, “There were serious problems in the world. The locked budgetary

talks in the United States, debts and expenses in former rich countries, the failure in Europe, Japan and the U.S. of the political mechanism to make decisions have caused serious problems for Europe and the U.S.” Surely the problem in the Euro zone is more special. It is hard for a monetary unity to take place unless there is political unity. As such, Europe has come to a point where it has to make a decision. Joint financial policies must be developed in the Euro zone or else the Euro will experience serious difficulties. At such a time of crisis, it is pleasing to see certain countries as Turkey developing rapidly, Dervis said. Turkey has a very dynamic society. Private entrep-

reneurs and the Turkish citizens work hard. Turkey is much appreciated. However, sooner or later, global economic problems will reflect on Turkey in the upcoming months. As many economic experts have said, Turkey’s current account deficit poses vulnerability for Turkey. Turkey needs to bring down its current account deficit, Dervis recorded. Turkey has come far in the last 10 years. National income rose significantly in Turkey. Nevertheless, we can not stay away from negative global developments. When the world entered a period of recession in 2009, we in Turkey were affected much. In a global world, any country exporting goods can not remain untouched by global developments, Der-

vis said. Answering a question on his arrival in Turkey after the crisis of 2001 and the impact of decisions taken then on the present situation, Dervis said that “as in personal lives, tough times for countries may lead to opportunities. Turkey overcame the difficulties posed by the 2011 crisis. Later on, economic policies supported growth. Such developments were pleasing to see. I believe that what shapes history is the citizen itself and the dynamism in a society. What is crucial in Turkey is for its society to act with common sense and deal with tough situations successfully. What is also important in Turkey is for its society to act with dynamism and flexibility in promoting the eco-

Kemal Dervis, Member of Sabanci University Advisory Board

nomy”. Dervis noted, if the dynamism continued, Turkey will grow more in the next 10 years than it did in the past 10 years. Following a long struggle, Turkey would join the families of most developed countries in 2023, the year when Turkey will celebrate the 100th anniversary of the establishment of its republic, Dervis concluded.

Gold provides highest monthly real profit Business progresses

n August 2011, maximum monthly real profit rate was realized in Gold (ingot) according to Consumer Price Index as well preceding month, according to the statement of Turkey’s Statistical Institute (TurkStat). In August 2011, Gold (ingot), one of the financial investment tools, yielded the highest monthly real profit with the rates 15.78% and 16.97% according to Producer Price Index and Consumer Price Index respectively. According to Producer Price Index, the monthly real profit rate of Euro and US Dollar were 4.54% and

4.13%, respectively. However, investors of Stock Exchange and Deposit Interest lost by 13.97% and -1.22%, respectively. According to Consumer Price Index, the monthly real profit rate of investors of Euro and US Dollar were 5.61% and 5.19%, while investors of Stock Exchange and Deposit Interest lost by 13.09% and -0.21%. Maximum real profit was gained by Gold (ingot) investors quarterly, bi-annually and annually according to PPI and CPI. Investors of Gold (ingot) achieved the highest real profit with the rates of

26.67% according to PPI and 30.33% according to CPI, quarterly. The real profit rate of Gold (ingot) was 35.80% according to PPI and 37.38% according to CPI bi-annually. In the same period, Investors of Stock Exchange made the highest loss with the rates of -18.25% and 17.30% according to PPI and CPI respectively. In August 2011, financial investment tools were listed in descending order with respect to their yearly real profit rates as follows: Gold (ingot), Euro, US Dollar, Deposit Interest and Stock Exchange. The real profit rates of Gold

between North of Iraq and Turkish investors

(ingot), Euro and US Dollar were 50.92%, 16.32% and 4,80% respectively, however in the same period Deposit Interest and Stock

N Exchange lost by -2.95% and 16.89% respectively, according to PPI. The real profit rates of Gold (ingot), Euro, US Dollar and Deposit Interest were 57.07%, 21.07%, 9.08%

and 1.01% res pec ti vely, however according to CPI in the same period Stock Exchange lost by -13.50% respectively.

Leaders of the sector meet in the biggest foundry fair

ONDÖKÜM 2011 Konya 2nd Foundry Technologies, Mould, Stainless, Steel and Metals Fair and Konya 4th Related Industries Fair organised by TUYAP Konya in cooperation with Konya Chamber of Commerce, Konya Chamber of Industry and KOSGEB will be organized between November 17 -20. 2011 at KTO - TUYAP International Fair Area, Konya, the central provin-

ce of Turkey. Tuyap, as a result of the qualified services it has provided since 32 years as a leading trademark in the sector aims to gather all interested professional parties under the same roof on the occasion of a fair with leader company and company representatives exhibiting and whose promotion activities are comprehensively done both domestically and on international basis. Both

fairs have hosted many international visitors at KTOTuyap International Fair Area. Konya Foundry Fair will be a big opportunity to show Anatolia’s Power of Foundry to Eurasia and to the world. Scope of the Konya Foundry Fair; Foundry Machinery and Equipment, Iron and Stell Technology, Non- Ferrous Metal Technology, Heat Treatment,

Melting Equipment, Refractory Materials, Surface Treatment and Coating Technology, Moulding, Modelling, Forming Technology, CAD/CAM/CAE, Raw Materials, Chemicals, Laboratory Equipment, Press. In the scope of the Konya 4th Related Industries Fair; following items will be taking place; Casting Chipless Metal Forming, Chipforming, Heat

Treatments Surface Treatments, Dies, Moulds & Patterns, Plastics Rubber, Electricity & Electronics, Glass products Industrial insulation products, Software, Automation systems Hydraulic, pneumatic systems, Raw materials, Industrial equipments Machine tools and equipments, Metal processing machines, equipments, Job safety equipments Quality and Certification Institutions.

TIKA builds hospital in Gaza

urkish agency to construct biggest hospital in Palestine. Turkish International Cooperation & Development Agency (TIKA) is constructing the biggest hospital in Gaza.

TIKA’s Palestine Program Coordinator Refik Cetinkaya said that the agency was building a hospital in Gaza being financed by Turkey. “When it is completed, it will be comprised of 150 beds,” Cetinkaya told.

Cetinkaya said the construction began in May, and Turkish companies were building it as there were no foreign investors in Gaza due to blockade. “Aker is the only foreign company in construction

business in Gaza,” he said. Cetinkaya recorded that the hospital would be a training and research hospital, and the biggest one in West Bank and Gaza. Aker Construction’s project director Mahmut Celepli

said the company had employed 170 Gazan people and this number would rise to 400-500 in the future. TIKA laid the foundation of the Palestine-Turkey Friendship Hospital in May.

orth of Iraq has become the center of attraction for Turkish businesses. North of Iraq has become the new site of investments by Turkish investors. Commercial investments of Turkish businesses in north of Iraq are on the rise after the war and security problems in that country. Turkey’s trade volume with Iraq was worth $940 million in 2003. This figure surged to $6 billion in 2009 and Iraq is now among Turkey’s partners to which Turkey sends most exports. According to the statement, more than half of over 2,000 foreign companies operating in north of Iraq are from Turkey. A huge number of Turkish companies present in north of Iraq are involved in the construc-

tion sector. Around 20,000 Turkish citizens work in north of Iraq. 75 percent of all products sold in north of Iraq were made in Turkey. Iraqis consider Turkish products as ones with high quality and prefer them over other products made in different countries. Daily flights from Istanbul to north of Iraq carry dozens of Turkish businesspeople to the region. Turkish businesspeople can also travel to Iraq in

buses from Diyarbakir, Cizre and Silopi. Dozens of Turkish companies attend fairs and exhibitions in north of Iraq, including in Irbil. Turkey’s Ziraat Bankasi, Is Bankasi and Vakifbank have each one opened a branch in Irbil. Shopping malls in Irbil employ many Turks. Kurds living in the region have great sympathy for Turkey and the Turks. Lots of new homes have been built in north of Iraq have stones and marbles that come from Turkey.

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Made in Turkey Economic Newspaper, October 2011

Zuchex attracts great interest both at home and abroad 600 participators from home and abroad met with the sector at 12 Halls covering the area of 98 thousand sq meters

aving held the 22nd International Zuchex Houseware & Gift Fair, Electrical Appliances fair brought together manufacturers, exporters, importers and distributors, store chains, wholesalers and retailers in the glassware and

kitchenware sector between 23-27 Sept. 2011. Zuchex 2011 has grown and expanded its exhibition at 12 Halls in order to serve better to its visitors this year. This year, the products and services were divided into 6 categories so

as to everybody being able to find easily what they look for and for which purpose. Glassware-PorcelainCeramic products were displayed at Hall2, Steel Kitchen Group at Hall 34-6, Plastic Group at Hall 4-5, Electric Appliances at Hall 7-8-9, Home Textile & Lighting at Hall 10, Gift& Imported products at Hall 11-12. Having held as nonstop since 1997, Zuchex has become meeting venue of the sector due to featuring 3rd in Europe and 4th in the world, as well as being the biggest fair of Turkey in the glassware sector. With every year its developing, changing and renovated structure, taking place as importer, exporter and producer and retailer in the sector besides being a fair everybody observes carefully, Zuchex marks a key point

between European and Mideast markets. Being able to reach directly the target markets of the sector, the fair continues to be an arena where demand and expectations being met of the participators whom exports and imports have potential increase. Zuchex gives opportunity for the development and trade of glassware, housewares, electric appliances, giftware via Turkey. While the sector undertakes a locomotive duty in terms of the sector, it also contributes worth some 2 billion dollars to the Turkey’s economy. Letting Turkey become one of the centers of the sector, Zuchex offers a unique ambiance to lots of world-famous brands to address themselves and guide their trade. Bringing together the giants of the sector once again, many producers

and importer firms exhibited their products such as dining table and kitchen goods, glassware, porcelains and ce-

ramics products, decorative products, giftware, plastic, electric appliances, decorative furniture,

bath & kitchen accessories, home textile, illuminating and chandelier at Zuchex. The participators find opportunity to see and examine the latest trends, fashionable colors, developments, new designs. Following up the trends of fairs abroad and fashion, making breakthrough; Life Media, as organizer of Zuchex, brings the innovations from across the world to the near by producers and distributors.

“Turkey ranks 6th in agriculture across the world”

griculture minister: Turkey world’s 6th in agricultural

product. Turkish Food, Agriculture & Stockbreeding Minister Mehdi Eker said that Turkey ranked the sixth across the world for the last three years in the aspect of agricultural product. We are also the first in Eu-

rope by leaving France, Italy and Spain behind, Eker told reporters. Noting that it was the developments in Turkey’s agriculture which frightened EU countries, Eker said that thus, EU countries put some obstacles in front of Turkey in its EU membership process. Eker said that last year Turkey sold its own seeds worth 90 million dollars to the world markets. He added that Turkey has not depended on Israel in its seed needs. Over a question about bio-

diesel, which the Energy Market Regulation Board (EPDK) made a decision that agricultural products must be used in biodiesel fuel from 2013 whether this would lead to a difficulty in the oily seed’s need or not, Minister Eker said, they, as the ministry, would discuss the issue with the Energy Market Regulation Board again. He said that the aforementioned implementation will be started between 2013 and 2015, adding that they would not expect a trouble related with ethanol, as for the biodiesel, the

trouble would be exceeded by the crops of which production is originally made to Turkey. “There are 3 years in front of us; meanwhile Turkey’s irrigation projects will enter into force. GAP, DAP, KOP projects will be in implementation. When these projects enter into force, Turkey will reach million hectares additional agricultural production lands. So both Turkey’s oily seed needs and supply of biofuel needs would be matched,” Minister Eker added.

New market opportunities for the food and beverage industry

Safe and high quality food producers to meet at the leading fair of Eurasia

OODist 2011, the 5th Istanbul Food and Beverage Fair,

which is the meeting point of the food and beverage industries in

Eurasia, will be held at TÜYAP Fair, Convention and Congress Center, İ s t a n b u l - Tu r k e y, December 8-11, 2011. Focusing on the global “safe and high-quality food” trend, 281 companies and company representatives from 15 countries had participated in FOODist 2010 Fair. 18,934 professionals from 53 countries had visited the fair. December 8-11, 2011 is already on the agendas of domestic and foreign

professionals who will take part in FOODist 2011, the 5th Istanbul Food and Beverage Fair at TÜYAP Fair, Convention and Congress Center İstanbul/Turkey, a solution platform for the industry to reach targets and expand to new markets.

BEVEX Beverage Trade Exhibition only in Turkey!

ecoming the most comprehensive and largest food fair in 18 years of Turkey Anfas Food Product Food Trade Fair has become a number one platform for business contacts and bilateral business meetings for hotels, restaurants, snack bars, bars, cafes, bakery chains, supermarkets, food wholesalers, food factories, universities, school canteens, Government Agencies, Hospitals, Housing, Officers' Club, Food Factories and all Food and Beverage Professionals all cities in Anatolia and the European and Middle Eastern countries. Anfas Fairs Chairman CALIK said that International Trade Fair for Beverages and Technologies BEVEX which will display alcoholic - soft beverages, tea - coffee, energy drinks, fruit juice, beverage packaging, concentrated drinks, cocktail sauce alone product groups, would be held on 2nd and 4th February 2012 in Antalya Expo Center, responding to increased demand. Expected 80% increase in four years With a wide assortment of production, the alcoholic and soft beverages sector has been increasing over the years. According to Business Monitor International beverage sales is predicted to increase by 80% in Turkey in 2014 when compared to the figures of 2010. Wine has taken the first place in the foreign trade of world alcoholic beverages and it has been followed by distilled spirits containing products such as whiskey, vodka and gin. A major part of total alcoholic beverages external trade has been existed in mainly the European Union countries and in developed countries, which are trading among themselves. In Turkey, the most important export item is beer. Anfas Bevex Fair has targeted in both the domestic as well as foreign buyers. Buyer delegation works are underway with 40 countries. Anfas Bevex Fair invited buyer delegations and carried out visitor programs addressing to countries such as Germany, Russia, Ukraine, Kazakhstan, Kyrgyzstan, Iran, Iraq, Azerbaijan, Georgia, Italy, Netherlands, Spain, Moldova, Greece and the Middle East and African countries in general. As the host for Turkey Bartenders Competition and Turkey Coffee Stars Competitions and many of show and the presentation, which will be about the soft drinks and fruit juices Anfas Bevex has the distinction of being the only drink fair of Turkey.

Turkish Export Products Exhibition inaugural ceremony in Bakü

Turkey’s Ambassador to Azerbaijan, Hulusi Kilic (L ) & Recep Arslantas of Turkey

Azerbaijan very important for Turkey

ulusi Kilic, Turkey’s Ambassador to Azerbaijan, said that relations between Turkey and Azerbaijan are very well. Stating that investments between the two countries would continue, Kilic said, “Azerbaijan plays a serious role in the formation of Turkic world consciousness.” Turkey’s Ambassador to Azerbaijan, Hulusi Kilic touched the relations between Turkey and Azerbaijan. Kilic said, “The relations with Azerbaijan are very distinctive. Here is also our motherland. It is not compared with any other state. So, we maintain our duty with this consciousness. Whoever comes to Baku, we are together with them. We transfer our knowledge and experiences.” Telling that they saw the problems of the firms in Azerbaijan as theirs, he stated that they are interested in Azerbaijani businessmen’s problems in Turkey, too. Kilic continued, “Those who live in Azerbaijan feel Turkey. They follow up all the developments in Turkey

closely. We are ready cooperation with Azerbaijan in every area and in fact we do very productive businesses in many areas.” Commercial relations good Reminding the things should be made between Turkey and Azerbaijan so as to develop economic, cultural and social elements, Kilic said, “Turkey Azerbaijan relations are good. There a trade volume of ours worth 2,5 billion dollars. In terms of economic, there are investments of the Turkish businessmen. Together with this, there are also investments of the Azerbaijani businessmen in Turkey. These investments are increasingly growing day by day. In order to strengthen the relations more Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA) can be signed.” Azerbaijani market grows Stating that the people of the two sister countries would be provided to be sustainable in the close relations by the Yunus Emre

Culture Center, Kilic said, “As much as we observe there is a swiftly growing market in the sister country Azerbaijan. Especially in the textile area, our firms have business place here. This is a process, as long as Azerbaijan gets development, direction towards here will be more. In resent years, Azerbaijan has entered a very great development progress. Turkish market share holds a very important place in the area of textile and construction.” Recording that Turkish businessmen would invest in every area which they see profitable for themselves, Kilic said, “For a healthily investment first the market should be inspected. Stating that there is need for human

beings who work, produce, act smartly and honestly in every area suitable to the system, Kilic said, “For example, agriculture is one of the most important of these. The areas such as tourism, health are also important for us.” Let’s everybody come to Azerbaijan Marking that he would wait for everybody to come to Azerbaijan, Kilic recorded, “We consider that being interested in Azerbaijan is important. Turkish businessmen should come here. This is very important in order to consolidate friendships. Azerbaijan has a remarkable role to constitute consciousness of the Turkic world.”

10 -ems:10. sayfa 06/10/11 6:07 PM Page 1

Made in Turkey Economic Newspaper, October 2011

New at Anuga 2011: The Anuga FoodService specialized trade show!

nuga will significantly strengthen its commitment to food service. The fair will thus in the future place even greater emphasis on the food service and catering market, which has been growing in importance for years. The proven Anuga concept “10 specialized trade shows under one roof” will continue, however the former specialized trade show Anuga CateringTec is now being restructured into the Anuga FoodService trade show. This means that in addition to technology and services for the food service segments, food and beverage suppliers will also be included. In addition, Anuga FoodService will be clearly positioned by means of special shows, an experts’ meeting place and concise, informative presentations. And Anuga FoodService gains a special appeal because the world’s largest, most important food fair is sponsoring the innovative Chef of the Year competition for professional chefs. With roughly 6,500 suppliers from about 100 countries, Anuga 2009 presented a compre-

hen si ve, international spectrum of products for the trade and the food service and catering market. Almost half of the exhibiting companies indicated that

they offer products for the food service and catering market. This means that Anuga remains not only clearly oriented to the food trade, but also the world’s leading trade fair for food service and catering. “This is the starting point for our concept expansion,” says Peter Grothues, Vice President Food, Technology & Environment at Koelnmesse, about the formation of the new

specialized trade show. “The former Anuga CateringTec has now become Anuga FoodService. The specialized trade show for the technical needs of the catering sector and related services is to be complemented by the presence of food and beverage suppliers. The aim here is to provide an ordering and information platform that is custom-tailored to the needs of the buyers from the catering sector.” Michael Gerling, Chief Executive of the Federal Association of the German Retail Grocery Trade (BVL), welcomes “Anuga 2011’s intensified concentration on product ranges for food service, the hotel trade and the entire food service and catering market. This will enable the world’s leading fair for the food industry to further strengthen its inter-

national market position and make the event even more attractive for visitors from these market segments.” The BVL is the founder organization and conceptual sponsor of Anuga. “The boundaries between the food trade and catering sector can no longer be so clearly defined today,” says Gerling. “The expansion of Anuga to include the FoodService segment is a consistent implementation of market developments at the world’s biggest food fair in Cologne. By offering a considerably expanded range of convenience products, the food trade has reacted to the shrinking time budget that the German consumer can devote to preparing meals. In the last ten years the range of fresh convenience products available in German supermarkets has increased fourfold. Hot food counters with fresh offerings for immediate consumption are a standard feature in every modern supermarket, and the “little bistro” also clearly belongs in every larger retail food establishment. It isn’t only the product range of the supermarkets that is changing here; products that belong to the classic equipment in the catering sector also are increasingly being used in the supermarkets. Anyone who cooks and heats up their own food must also have the needed equipment, and it definitely makes sense for the food trade that they are able to find these products at Anuga. Dr. Sabine Eichner Lisboa, Managing Director of the Federal Association of the German Food Industry (BVE), also believes the development of Anuga FoodService is the right step: “After the retail food trade, the food service and catering market is the second most important sales channel for the

food industry in Germany.” Dr. Eichner Lisboa added: “Anuga and Anuga FoodService are pres-

enting the product range of the food industry, which offers above all the chefs in institutional/com munal ca te ring and catering sector im por t a n t help f o r creating a varied but also affordable range of dishes. In addition to (top class) catering, which is in the spotlight, above all the market segments of fast food restaurants and canteens at schools, companies and social institutions are the most important suppliers for the customers’ everyday concerns and thus the decisive markets for the food industry. The food industry’s convenience products have become indispensable

in professional kitchens in the catering sector today. They ensure good variety, consistently high quality and attractive prices for the customer.” Supporting programme The new Anuga FoodService is even more important due to the integration of catering-specific special shows, which previously were placed in other food trade shows. These shows include the “Catering Marketplace” which is organized by the German Hotel and Restaurant Association (Dehoga), Berlin, and Dehoga Gastgewerbe NRW and specially oriented to the German catering scene and “Creative Kitchen” and “Visions of Cooking”. And the new Anuga FoodService is complemented by a presentation programme featuring renowned experts. Chef of the Year And Anuga FoodService is even more attractive because Anuga is sponsoring the innovative Chef of the Year competition for professional chefs, which is entirely new for Germany, Austria and Switzerland. The contestants in the “Chef of the Year” competition are exclusively experts and professionals - who will strive for the honours under the critical eyes of top chefs whose names and career achievements stand for quality, innovation and impressive performance. And the companies that are sponsoring the competition also uphold these standards with their products and services. The competition’s organizer is the Spanish publishing house Grupo Caterdata, which has been successfully presenting the “Cocinero del A§o” competition in Spain since 2004. Dieter Müller has agreed to serve as the chairman of the German jury, which also features well-known figures such as Bernhard Diers, Thomas Bühner, Martin Öxle, Thomas Kammeier, Marco Müller, Martina Kömpel, Jorg Sackmann, Fred Nowack, Stefan Steinheuer, Heinz Beck, Claudia Schröter, Jean Claude Bourgueil and

Martin Berasategui. The participants destined for the finale - which will take place at Anuga in Cologne - will be determined in four regional preliminary rounds. In terms of expertise and media coverage, Anuga offers the ideal setting and conditions for the event. Potential Approximately 34,000 food sector businesses are located within a 300 km radius of Cologne. With the new specialized trade show Anuga FoodService, Anuga is addressing in a targeted manner not only this potential but also the top buyers from internationally operating food service and catering companies, for which Anuga is the most important sourcing platform thanks to its incomparable range of food and beverage

products. Peter Grothues summarizes: “Our message is: Next year’s Anuga will be the most important destination for buyers in the food service sector. And for the exhibitors this is a great opportunity - in all ten of the Anuga specialized trade shows.”

11 -:SAYFA 11 06/10/11 6:08 PM Page 1

Made in Turkey Economic Newspaper, October 2011

Hazelnuts break record in exports Until this time exporting mostly up to 100 countries, in the last season the hazelnuts exporters exported to 108 countries

n the export season of 20102011, hazelnuts' exports accomplished 281 thousand 331 tons. According to Dursun Oguz, Coordinator of the Union of Black Sea Hazelnuts Exporters, all times' record was broken in the hazelnuts exports. According to the statement, starting September 2010, ending on 31 August 2011, 281 thousand 331 tons hazelnuts have been exported, so based on amount record was broken of all times in the season of 20102011.

Until this time they achieved the exports extremely up to 100 countries, this season the exporters sold hazelnuts to 108 countries, so the broke a new record. Gursoy continued, "When hazelnuts export figures are inspected based on groups of countries, the exports' ratio to the EU countries was 74.8 percent. "When taken into consideration the hazelnut exports which was realized in the rate of 82 percent for long years to the EU countries now have steadily decreased under 75 percent and

this is regarded as an indicator that the export market has been getting diversification from a single market to multiple. This result stems from the hazelnuts promotion group's activities being known also in the markets besides classical markets," Gursoy recorded. Gursoy added that exports had been raising in the targeted markets such as in the Far Eastern markets and overseas markets, adding that exports to these countries jumped 38 percent from 17 thousand 935 tons to 24 thousand 728 tons.

Lemon exporters in of target 500 thousand tons

eeting 60 percent of Turkey's lemon exports from the province of Mersin, this year the province aims 500 thousand tons exports of lemon. Ahmet Dursen Sahin, head of The Mersin Citrus Fruits Union (MERTUB) and Turkey's Citrus Fruit Producers' Union Platform said that Turkey's total citrus fruit products are nearly 3 million thousand tons. Sahin recorded 1 million 200 thousand tons of citrus fruits were lemon, 60 percent of those is supplied from the region of Mersin province. He added that harvest of Enterdonat and

Mayer types lemons has began in mid-Sept., noting that producers were hopeful from the exports. Sahin recorded that price per kilo of lemon was not enough, hoping the current price would raise some.

Regarding exports season has begun, and the producers were selling while the products are on the branch-

es, Sahin said, "The lemons of this region are exported predominantly to Russia, Ukraine and Iraq. Compared to the last year's harvest, this year it is expected products would fall 20 percent. We consider this condition would let demands to rise, so this will reflect to the price positively in terms of producers. The product quality is very well. There are no pesticide residues at all. We believe that we will enjoy a very well season. We also aim to exceed last year's 450 thousand tons of export figures to reach by 500 thousand tons."

Turkish Health Minister Recep Akdag

Minister Akdag: Turkey to attract more foreign patients Continued From Page 1 e emphasized that Turkey had an important place in the medical tourism sector in recent years. Akdag noted that Turkey attracted patients especially from the Middle East and Europe, stating that nearly 500,000 foreign tourists visited Turkey in 2010 to receive treatment in the country. Highlighting that the patients who come from abroad had a chance being able to get treatment in many health areas, such as prosthesis, eye, tooth, open hearth operation and robotic surgery applications in various branches. â&#x20AC;&#x153;There was need to increase the number of doctors, nurses and other health personnel to improve the medical tourism sector,â&#x20AC;? he recorded. Minister Recep Akdag noted that there were nearly 3000 students from abroad are educated in medicine faculties in Turkey.

H Turkey to export tea to China

aykur, the leading tea producer in Turkey, will export tea to China, the home country of tea. Caykur Director General Imdat Sutluoglu stated that Caykur attended the 1st ChinaEurasia Expo in Urumqi, the capital of Xinjiang Uygur Autonomous Region in China between September 1st and 5th. Turkish tea attracted a great interest in the fair which was visited by nearly 600,000 people in five days, he said. "Our stand that attracting a great attention,

made us very happy. Visitors liked Turkish tea and asked where they could buy it," he said. China could be a very important market for Turkey, he said. Sutluoglu noted that they would sell Turkish tea to China and they would conduct campaigns for promotion of Turkish tea in that country. Sutluoglu said that they, as Caykur, would also join an important fair to be held in China soon.

12 :sayfa 12 06/10/11 6:21 PM Page 1

Made in Turkey Economic Newspaper, October 2011

SMEs' exports account for 60.1% in total in 2010 T

he statistical figures about exports and imports that accomplished in 2010 were released by Turkey's Statistic Institute (TurkStat). According to the statement, there were 48,009 enterprises in exports, 55,119 in imports. For exports, the proportion of the Small and Medium Sized Enterprises (SME's) which had 0-249 employees was 60.1% and 42.1% for imports. In 2010, the rate of micro enterprises (0-9 employees) was 16.4%, small enterprises (10-49 employees) was 24.6%, medium-sized enterprises (50-249 employees) was 19.2% and large enterprises (250+) was 39.6% in exports. The rate of micro enterprises (0-9 employees) was 6.7%, small enterprises (10-49 employees) was 16.1%, medium-sized enterprises (50-249 employees) was 19.2% and large enterprises was 57.8% in imports. Industrial sector is forefront in external trade In 2010, 60.4% of exports and 54.5% of imports was performed by enterprises which took place in industry sector. Enterprises, whose main activity was trade, performed 34.9% of exports

and 32% of imports. The rate of 61.5% of industry sector's exports was exported by large enterprises. Small enterprises were at the top with the allocation of 44.6% in the trade sectors exports. Large enterprises, for imports performed by

the EU was active in industry and 32.5% of them were active in trade. Enterprises in industrial activities, imported from EU with the rate of 42.3%, Other Asian countries 19.3% and Other European Countries 13.7%. The top partner

and 33.7% of them were in active in trade. Industrial enterprises exported industrial products as a rate of 94.9% and 2.4% agricultural products. 52.3% of enterprises which imported industrial products, performed in industry as a main activity,

industry with the rate of 72.2% and for trade small enterprises rose the first place with the rate of 31.3% respectively. Half of trade of Industrial enterprises exported to EU In 2010, industrial enterprises exported to EU (50.1%), then Near and Middle Eastern (18.1%). 65.3% of exporting to

zone for trader enterprises imports was EU by 40.1%. EU was followed by Other Asian (31.7%) and Other European Countries (15.1%). 61.8% of industrial products exports was industrial enterprises 61.8% of enterprises which exported industrial products, performed in industry as a main activity

38.2% of them were in active in trade, 9.6% of them were in active in other sectors. Industrial enterprises imported industrial products as a rate of 75% and 13.6% mining products and 4.2% agricultural products. The rate of 48.4% in imports by top 50 enterprises In 2010, top 100 enter-

prises performed 47 percent of exports and top 50 enterprises performed 48.4 percent of imports. Top 5 enterprises performed 17% of exports and 22% of imports. Top 5 enterprises have a share of 18.5% in industry sector and %13.9 in trade sector in exports. In imports top 5 enterprises have a share of 20.2% in industry and 11.9% in trade. The proportion of enterprises imported from 1 partner country was 45.5% While 21 531 enterprises were exporting to 1 partner country, 8,057 enterprises exported to 2 partner countries and 8,968 enterprises exported to 35 partner countries in 2010. 1,943 enterprises exported to 20 or more partner countries and performed more than half (56.2%) of the exports. 1,105 enterprises imported to 20 or more partner countries. These enterprises have a share of 52.9% in total imports. In 2010, 25,102 enterprises (45.5% of total enterprises) imported from 1 partner country, 9,227 enterprises from 2 partner countries and 10,939 enterprises from 3-5 partner countries.

Chinese energy company to invest in Izmir

olat Mining which headquartered in the city of Konya and a Chinese energy company have signed a protocol to operate coal mine in the districts of Kinik and Soma and to install a thermic power plant. When the project which is projected in the two steps, com-

pleted an investment worth $1 billion would be accomplished. It is targeted that the project will be achieved within 5 years. Muzaffer Polat, President of the Board of Polat Mining, stressed that the project would the biggest direct investment of China in Turkey. He said that they had 3

coalmine licenses in the region of KinikSoma including a total of 2 thousand hectares. Polat said that they aimed to materialize 3 million tons of coalquarry per annum in the first step of the project. He added that the amount would be raised by 5 million tons per annum capacity in the future. "In the second step of the

project they would install a state-of-theart technological thermic power plant in 660 MW ultra super as sensible to the environment or two thermic power plants one each in 300 MW power," Polat said. The project will supply employment first for 2 thousand then 3 thousand peo-

ple. On behalf of the Chinese Zhejiang firm, Tong Yahui said, "We run in electric generation, coal production, and natural gas supply. Our experience is much more in these works. In our structure, 11 thousand people work. Trade between Turkey and China is increasing. Turkey's

economy is performing very well. In order to make this sustainability energy and natural resources must be used very effectively. We will achieve bigger works with Polat Mining. We will overcome together with the problems which we would meet. This project will contribute development both two countries."

OECD: Support to agriculture at historic lows

overnment support to the agriculture has increased only in Turkey among all OECD member countries. Government support to the agriculture has increased only in Turkey among all Organization for the Economic Cooperation & Development (OECD)-member countries. Paris-based OECD released its annual report “Agricultural Policy Monitoring and Evaluation 2010”. In Turkey, government support to agriculture rose to 27 percent in the period of 2008-2010 from 20 percent in the period of 19861988. As the world’s 7th biggest agriculture producer, Turkey’s most important commercial partners are the European Union member states, the United States and the Middle East countries. The rate of agricultural sector to the gross domestic product dropped to 8.5 percent in 2009 from 12 percent in 1995. Agricultural products accounted for 12 percent of Turkey’s exports and 5 percent of its imports in 2009. Government support to agriculture in OECD countries fell to 18% of total farm receipts in 2010, a record low linked to high com-

modity prices, according to a new OECD report. Support to producers stood at $227 billion (EUR 172 billion) in OECD countries in 2010, confirming a longstanding trend toward falling farm support. Agricultural Policy Monitoring and Evaluation 2011 points out that most government support is still given in ways that distort production and trade while doing relatively little to improve productivity and competitiveness, ensure sustainable resource use or help farmers cope with risk. “With tighter government budgets and farmers getting top prices for their crops, governments should begin to shift from payments that further support farm incomes and move to policies that have long-term benefits for the global food economy,” said OECD Director for Trade and Agriculture Ken Ash. “The time is ripe for reforming farm support.” Support levels vary enormously among OECD countries. Over the 2008-10 period, New Zealand had the lowest level of support to farm receipts (PSE%), at just 1% of farm income, followed by Australia (3%), and Chile (4%). The United States (9%), Israel and Mexico (12%),

and Canada (16%) were also below the OECD average. The European Union has reduced its level of support to 22% of farm income, but remains above the OECD average. At the other end of the scale, support to farmers remains relatively high in Korea (47%), Iceland (48%), Japan (49%), Switzerland (56%) and Norway (60%). Farm support in emerging countries is generally well below OECD levels, but also varies over time and across countries. For the first time, Agricultural Policy Monitoring and Evaluation 2011 reviews policy developments in emerging economies that are key players in world agricultural markets. Brazil, South Africa and Ukraine generally support agriculture at levels well below the OECD average, while support in China is approaching the OECD average. In Russia, farm support now exceeds the OECD average. The OECD says that growing global food demand, higher prices, more volatile markets and increasing resource pressures are arguments for moving beyond ‘status quo’ policies. Countries should focus on improving farm productivity, sustainability and long-term competitiveness, rat-

her than policies that distort markets. Farm policy should also offer greater support to research, innovation and education. With volatility expected to remain high and growing concerns about climate change, farmers will need comprehensive risk management systems that best address their specific needs. Governments should support the development of market-based tools while steering clear of actions that interfere with farmers’ management of normal business risk. While high farm prices generate opportunities for farmers, the OECD recognises that high and volatile food prices have particularly severe impacts on the poorest people on the planet, who spend a large proportion of their available income on food. For this group of consumers, improved safety nets can help with immediate needs, but policies that improve agricultural productivity and long-term resilience will provide the long-term solution. To this end, the OECD recognises the importance of ongoing efforts in the G20 and in other international fora to improve policy coherence and strengthen global governance of the food system.

Islamic Investment and Finance Forum to be held in Istanbul

STANBUL- As the global Islamic Finance industry continues to grow, new markets and new opportunities are starting to emerge. Islamic Investment and Finance Forum will be held in Istanbul on 24 - 26 October. The event is expected to arouse great interest from the global investors. As known, Turkey's 2011 Finance Bill included tax neutrality measures for sukuk leading to high expectations of a wave of Turkish corporate sukuk. Gulf Islamic banks have been investing in setting up Islamic financial institutions in the CIS countries and African nations are increasingly exploring sukuk as a means of financing essential infrastructure development. Islamic Investment and Finance Forum will particularly focus on the following major topics: -Is Turkey set to become an international financial centre, and if so, what does this mean for Istanbul as an emerging Islamic finance hub? -What is next for participation banking in Turkey? -What recent developments in

Turkey’s legislative framework will facilitate the growth of Islamic finance in turkey? -How fast is the participation banking sector growing in Turkey, and what will be the next steps in its development? -Why hasn’t the participation banking sector grown faster despite the majority muslim population? -How can the participation banks and the Central Bank work together to improve liquidity management options? -What ambitions does the Turkish government have to develop the Islamic asset management sector, and how open will the market be to international competition? The topics also include: -Catalysing Islamic finance in majority Muslim markets -Is Africa really the next big thing in Islamic finance? -The potential for Islamic finance in Egypt post regime change -The role of Kazakhstan in developing Islamic finance in the CIS -Maximising cross border portability for Islamic funds

The four platforms at Cebit Bilişim Eurasia

eBIT Bilişim Eurasia 2011 will bring together ICT suppliers and users in the context of four integrated platforms. This optimized concept will offer you plenty of benefits not to miss. The four platforms generate a strong user-oriented structure and ensure that you reach your target audiences more efficiently than ever before. * Clear concept that brings together ICT suppliers and users in the most efficient way possible. * Clear signposting for optimum navigation. *Special presentation formats that allow CeBIT Bilisim Eurasia exhibitors to achieve even greater impact. Cebit Synergy Summit CeBIT Synergy Summit is hosting business and ICT professionals from different industries, NGO's academics, politics and leaders of public enterprises. Onsite presentations about the follow-

ing topics during conferences, seminars and forums: * Telecommunication * Finance * eGovernment * Smart Living Concepts * eHealth Uniquely positioned to address the region's flourishing ICT market, CeBIT Bilisim Eurasia (6-9 October 2011) is the ideal platform from which to launch new products and services. CeBIT Bilisim Eurasia attracts a highly global audience year after year, generating unrivalled opportunities for everyone interested in expanding their business base and tapping into new markets. CeBIT Bilişim Eurasia, where the "application, product and information" triad comes together in a unique environment, will be the most effective promotional platform to share your own business solutions with the rest of the world.

Participation banks' assets gained 11 percent growth The Participation Banks Association of Turkey posted that "Participation banks gained 11 percent growth in terms of total assets in the first six months of 2011"

he participation banks have gained profit worth 358 million Turkish Lira, growing 11 percent in the first half of 2011, according to the statement of the Participation Banks Association of Turkey. The statement said that in the first half of 2011, the participation banks' total assets have reached by 48,3 billion lira, increasing 11 percent, as for the equities heightened 5,8 billion lira with 5.8 percent increase. In this period, while the funds became 35,9 billion, rising 6 percent, in these funds, the Turkish lira's share was 66, foreign share accounted for 34 percent.

Lending fund became 36,3 billion, rising 13 percent and the net profits of the participation banks reached by 358 million lira. Their branch number grew 6 percent rising by 642 units, as for the staff number raised by 13 thousand 49 people.

13 -:ana 03-orkde-tipotel-ĂśzgenĂ§ ki 06/10/11 6:23 PM Page 1

FAIRS & EXHIBITIONS

13 Made in Turkey Economic Newspaper, October 2011

Turkey's exports in August jump 32.2 pct

Domestic made cars considered as 3-4 models T

urkey's Science, Industry and Technology Minister Nihat Ergun informed about the domestic made car and said that the car to be made in Turkey to be 3-4 models. He added that the models would include various economic choices. Minister Ergun said that the models would be affordable for the middle-class. "In the first step, it will be truer to make the cars with the concept by taking into consideration the demands of the wide masses in terms of economic and sustainability," Ergun noted.

Indicating that Turkey owned a 50-year experience and accumulation in the sector, Ergun highlighted that Turkey has a strengthening automotive market. Reminding that in Turkey 510 thousand unit automobile sales were accomplished in 2010, Ergun said now in the domestic market the number has reached by 600 thousand unit sales, this would reach by 1 million units within a few years. Ergun also drew attention that cars' brand and models which are currently made in Turkey were not satisfied all the consumers, only 30 percent of 600 thou-

sand cars are manufactured in Turkey, as for 70 percent of the sold brands is imported. Recalling that they invite other brands to make cars in Turkey, Ergun invited automobile investors by saying, "Come to Turkey to invest. Turkey characterizes a crucial area as production, in addition featuring a growing market. This gives us opportunity to produce in Turkey, also a 50-year experience and accumulation it gives a possibility to take a step in the production issue. Those, who will take this step, to be beneficial. Turkey pos-

Technology Minister Nihat Ergun

sesses the ability and capacity as well as being a wide market. Turkish industrialist has the ability and capacity to achieve this project. He noted that the mechanisms, which would make very luxury cars for higher income groups, would enter into force later.

Exports expand 16.41 percent in September

urkey's exports reached $10.72 billion with an increase of 16.41 percent year-on-year in September 2011. Turkish Exporters' Assembly (TIM) announced the figures of exports in the province of Elazig, according to these figures, exports increased 21.71 percent to $99.45 billion in the first nine months of the year.

Mehmet Buyukeksi, chairman of TIM, posted the figures at a news conference at the Elazig Chamber of Commerce & Industry, he said that exports rose 18.83 percent to $131.62 billion year on year. In September, Turkey's automotive sector claimed the top spot to conduct the largest amount of exports with $1.66 billion, followed by chemical products with $1.3 billion, steel industry with

$1.27 billion and ready-wear sector with $1.11 billion. Exports of industrial goods, which accounted for 83.13 percent of the country's total exports in September 2011, were up 17.13 percent to $8.91 billion. Meanwhile, exports of agriculture sector, which had a 13.86 percent share in overall figures, increased by 13.28 percent to $1.48 billion, as exports of the mining sector rose 11.64 percent to $323 million with a share of 3.01 percent. Turkey to break record in exports In his announcement about exports achieved in September, Turkish Economy Minister Zafer Caglayan said that exports reached $10.72 billion with an increase of 16.4 percent in September 2011. He highlighted that exports increased to $99 billion since the beginning of the year. "Turkey has an export performance of $11 billion. We are going to break a new record in exports despite the serious eco-

World Tourism Day calls for engaging local communities in tourism development

s the world celebrates World Tourism Day on 27 September, experts in the field of tourism and culture have underscored the need for local community engagement in tourism devel-

become one of the most important components of nations, economically, socially and culturally, and this needs to be recognized". Events in Aswan included a High Level Think Tank on the 2011 theme, Tourism Linking Cultures, at which

opment at the official celebrations in Egypt (27 September, Aswan, Egypt). "The importance of this day cannot be underestimated," said the Minister of Tourism of Egypt, Mounir Fakhry Abdel Nour, opening the celebrations. "Tourism has

industry leaders, Ministers of Tourism and academics debated the role of tourism in mutual understanding, human enrichment, tolerance and peace. "Cultural heritage is ultimately an expression of the people," said United

Nations Educational, Scientific and Cultural O r g a n i z a t i o n (UNESCO) representative, Peter Debrine. "This expression is shared with tourists and it is this interaction which makes tourism such an important vehicle for promoting crosscultural understanding". During the debate, moder ated by CNN's A n i t a Mendiratta, the importance of involving and engaging with local communities in order to f a c i l i t a t e tourism's potential to link cultures was repeatedly highlighted

nomic crisis in the world and the crisis in Europe," he recorded, in his speech at a meeting of the All Industrialists' & Businessmen's Association (TUMSIAD). "Turkey has succeeded in ensuring political and economic stability. Turkey broke records by reaching growth rate of 11.6 percent in the first quarter of the year and 8.8 percent in the second quarter. Turkey grew by 10.2 percent in the first half of the year. We expect to reach a year-end growth rate of 8 percent," he said. He marked that their objective was to make Turkey one of the seven biggest economies of the world in 2023. "We need to boost our exports up to $500 billion and increase our national income up to $2 trillion. We will achieve our goal as Turkey has become a center of attraction in the world with its population of 74 million, its young labor force and geological and geo-political position," he concluded.

urkey's exports in August surged 32.2 percent over the same period previous year and were recorded as $11.2 billion, according to the Turkey's Statistical Institute, TurkStat. In August, Turkey's imports were up 26.3 percent when compared to the same term last year and were recorded as $19.4 billion. In August, Turkey's foreign trade deficit was up 19.1 percent when compared to the same period last year and was recorded as $8.2 billion. In the first eight months of 2011, Turkey's exports were up 21.9 percent when compared to the same period last year and were recorded as $88.7 billion. In the first eight months of 2011, Turkey's imports were up 39.3 percent when compared to the same term last year and were recorded as $160.1 billion. Turkey's foreign trade deficit in the first eight months of 2011 reached $71.3 billion.

Earthenware exports to the USA The Sorkun pots embellish dining tables in the USA and many European countries besides Turkey

he western province of Eskisehir exports earthenware pots and cooking pots and jugs to the USA. 350 people in the village of Sorkun from Mihaliccik district in the province manufacture the earthenware by making duty ranging from excavating the soil up to cooking on fire. After long and hard works, the Sorkun pots embellish dining tables in the USA and many European countries besides Turkey. The handicraft and eyestraining works of the pots go back to 700-800 years ago. The headman of the village, Sezai YanÄąk about production stage said, "We excavate the raw material of the pots from pasture of the village. We get two kinds of soils. We mix these two kinds then sieve. Later, we make compost, after relaxing for two days; we shape by hand to manufacture pot kinds. Once the products are ready to cook, the cooking process is applied. Yanik said that after a long and hard processes, the Sorkun Earthenware embellishes dining tables. "We exert much effort to not vanish the souvenir remained from our ancestors", he

added. Noting that in recent times the natural products have been preferred, human beings also prefer to cook in earthenware pots and this trend increased the demand to their products, Yanik continued, "There are not additive materials in our products. The products that find life via soil is

processed by human beings' work and eyestraining works and then offered to the service of people. Being natural, the products attract attention. How extinction of birds is important to save, the Sorkun pots are important as much as those. Yanik recorded that they would like to promote their products at the fair.

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Made in Turkey Economic Newspaper, October 2011

“Per Capita GDP surpasses $10,000”

PACE elects its Vice-Presidents

to $25,000 in 2023, Minister Hayati Yazici continued, “The rate of unemployment decreased to 9.2 percent this year from 10.5 percent in 2010. Inflation rate dropped to 6.7 percent. Turkey's exports accomplished $127.1 billion as of end-July while our national income boosted by $736 billion. Turkey became the second fastest growing country in the world behind China with a growth rate of 8.8 percent in the first quarter of 2011.” He also marked that Turkish economy turned the global financial crisis into an opportunity thanks to its dynamic private sector. “Our objective is to make Turkey one of the world's ten biggest economies in 2023 by achieving our exports up to $500 billion,"

urkish Customs & Trade Minister Hayati Yazici stated that gross domestic product (GDP) per capita exceeded $10,000. In an exclusive interview, Yazici said, "Our country has proved its economic, political and legal credibility to the entire world thanks to reforms have been achieved by the Justice & Development (AK) Party government." Minister Yazici highlighted that Turkey had become the 16th biggest economy in the world and the 6th biggest economy in Europe. About GDP per capita, Yazici said that the figure has exceeded $10,000. “ Reminding that they would aim to increase GDP figure per capita up

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Cilvegozu, Habur, Kapikule, Hamzabeyli and Sarp. “Restoration of other border crossings will continue," he concluded.

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dent of the PACE. General assembly meetings of the Parliamentary Assembly of Council of Europe (PACE) for the fall term began in Strasbourg on Monday 3 Oct. 2011. Prior to the general assembly meeting, an election took place for the four vice-presidents of PACE. A deputy of the ruling Justice and Development (AK) Party and chairperson of the Turkish delegation Nursuna Memecan was elected vicepresident of the PACE. Finnish Susanna Huovinen, Irish Joe O'Reilly, and Portuguese Joao Bosco Mota Amaral were other vice-presidents elected. AK Party deputy Mevlut Cavusoglu has been the PACE President for the past two years. Cavusoglu's term will end in January.

Turkish Customs & Trade Minister Hayati Yazic

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Yazici recorded. Minister Yazici also reminded that recently, they had renovated some of our border crossings including Gurbulak, Ipsala,

deputy of the ruling Justice and Development (AK) Party and chairperson of the Turkish delegation Nursuna Memecan was elected vice-president of the PACE. Finnish Susanna Huovinen, Irish Joe O'Reilly, and Portuguese Joao Bosco Mota Amaral were other vice-presidents elected At the opening of its Autumn plenary Session (3-7 October 2011), the Assembly elected its VicePresidents with respect to Finland (Susanna Huovinen), Ireland (Joe O'Reilly), Portugal (João Bosco Mota Amaral) and Turkey (Nursuna Memecan). A deputy of the ruling Justice and Development Party and chairperson of the Turkish delegation Nursuna Memecan was elected vice-presi-

Euro area inflation estimated at 3.0% in September

uro area1 annual inflation is expected to be 3.0% in September 2011 according to a flash estimate issued by Eurostat, the statistical office of the European Union. It was 2.5% in August. Euro area inflation is measured by the Monetary Union Index of Consumer Prices (MUICP). To compute the MUICP flash estimates, Eurostat uses early price information relating to the reference month from Member States

for which data are available as well as early information about energy prices. The flash estimation procedure for the MUICP combines historical information with partial information on price developments in the most recent months to give a total index for the euro area. No detailed breakdown is available. Experience has shown the procedure to be reliable (20 times exactly anticipating the inflation rate and 4 times differing by 0.1 over the last two years).

TurkStat postes annual inflation as 6.15 percent

T WTA held for three years in Istanbul

he WTA (Women's Tennis Association) Championships will be held in Istanbul, Turkey in 2011, 2012 and 2013, under the terms of the three-year agreement. The championship is being held by the organization of Turkey's Tennis Federation (TTF). It is expected that the tournament would contribute to the enable Istanbul to be a sport capital in 2012, as well as it will be reinforced the candidacy of Turkey to assume the 2020 Olympiads games. PTT General Manager Osman Tural, indicating that Youth and Sport General Directorate has contributed great for the organization, and said, "First contributions of the Ministry of Sport, we let WTA Championship hold in our country. During the year, while 4,9 million people watch the tournaments in its own arena, more than this figure would be watching the matches via TVs. "Turkey's Tennis Federation head Ayda Uluc said they wait support from all Turkey. WTA Championships will be hosted at the state of the art Sinan Erdem Arena in Istanbul, Turkey for three years.

urkStat posted annual inflation as 6.15 percent in CPI and 12.15 percent in CPI as of September. In the first nine months of 2011, CPI rose 4.53 percent and PPI increased 9.72 percent. Annual inflation on 12-month averages as of September was posted as 6 percent in CPI, and 10.03 percent in PPI. A rise in general index was realized in the 2003 based CPI on the previous month by 0.75 percent, on December of the previous year by 4.53 percent, on the same month of the previous year by 6.15 percent and on the twelve months moving averages basis by 6 percent in September 2011. The highest monthly increase was 2.78 percent in the index for miscellaneous goods and services by main expenditure groups. The indices rose

for transportation 1.92 percent, for education 1.79 percent, for hotels, cafes a n d restaurants

1.10 percent, for food and non-alcoholic beverages 0.99 percent, for furnishings and household equipment 0.92 percent, for housing 0.63 percent, for recreation and culture 0.43 percent, for communication 0.18 percent, for

alcoholic beverages and tobacco 0.11 percent, for health 0.03 percent, while the index declined for clothing and footwear 3.24 percent. The highest increase was 20.19 percent in the index f o r mis-

cellaneous goods and services compared with the same month of the previous year.

Transportation (14.10 percent), furnishings and household equipment (8.61 percent), hotels cafes and restaurants (8.36 percent), clothing and footwear (6.29 percent), education (6.24 percent) were the other indices where high increases realized. A rise in general index occurred in the 2003 based PPI on the previous month by 1.55 percent, on December of the previous year by 9.72 percent, on the same month of the previous year by 12.15 per-

c e n t and on the twelve months moving averages basis by 10.03 percent in September 2011. Monthly changes were 0.80 percent in the index of

agriculture and 1.69 percent in the index of industry. PPI of agriculture decreased 2.26 percent compared with December of the previous year, 2 percent compared with the same month of the previous year and increased 9.14 percent on the averages of twelve months basis. PPI of industry section increased 12.26 percent compared with December of the previous year, 15.23 percent compared with the same month of the previous year and 10.19 percent on the averages of twelve months basis. The highest monthly increase in the PPI of industrial activities was recorded 4.27 percent in the index for office accounting computing machinery. PPI increased 2.90 percent in the index for electricity, gas and water, 1.57 percent in the index for manufacturing industry, 1.42 percent in the index for mining and stone quarrying by sub-sections of industry. The high rates of monthly increase in PPI by sub divi-

sions were in the industrial price indices for office accounting computing machinery (4.27 percent), for communication equipment (3.68 percent), for electricity and gas (3.19 percent), for stone quarrying and other mining (2.89 percent), for wood products (2.55percent), for food products and beverages (2.37 percent), for motor vehicles (2.37 percent), for basic metal industry (2.08 percent), for coke and refined petroleum (1.97 percent), for furniture (1.83 percent), for crude petroleum and natural gas production (1.62 percent). On the other hand, in case of most decreased or increased minimum indices, non-metallic products decreased by 0.05 percent, chemicals increased by 0.13 percent and coal and lignite increased by 0.31 percent. In September 2011 within average prices of 785 items in the index, average prices of 151 items remained unchanged while average prices of 438 items increased and average prices of 196 items decreased.

Trakya Cam to invest worth $320 million

rakya Polatlı Cam Industry Inc., an affiliation of Trakya Cam, announced that a decision has been made to build two flat-glass lines worth $320 million on at the AnkaraPolatlı Organized Industrial Zone.

In the public announcement of Trakya Cam Industry Inc. it is said that "In the context of the company's growing strategy in order to increase competition power and to rise the capacitates to be able to respond to the demands of the market, a

decision made to build a two flat-glass line which will have totally 580 thousand tons capacity and 900 ton/day gross-glass pulling on the Ankara-Polatlı Organized Industrial Zone. According to the statement, the investment was planned

to be completed in a short time and to be opened grad-

ually to the operation from 2013.

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Made in Turkey Economic Newspaper, October 2011

Number of 124,363 vehicles registered in July 2011 As of the end of July, the total number of motor vehicles in Turkey reached by 15,724,940 units

ccording to the statement of the Turkish Statistic Institute (TurkStat), the 124,363 motor vehicles registered to the traffic in July 2011. Cars took in the first place with the ratio 48.5 % (60,302) and it was fallowed by motorcycles with the ratio 21.8 % (27,050), small trucks with the ratio 20.9 %

(25,975) and tractors with the ratio 3.8 % (4,672).Trucks, small buses, buses, and special purpose vehicles constituted the 5.1 % (6,364) ratio of the registered motor vehicles in July 2011. The number of registered motor vehicles increased with a ratio of 32 % in proportion to the previous

month In proportion to the previous month, the number of registered motor vehicles increased with a ratio 32 %. Cars, small buses, buses, small trucks, trucks, motorcycles decreased with a ratio 38.8 %, 10.7 %, 8.3 %, 57.6 %, 17.3 %, 22.5 %. Special purpose vehicles, tractors decreased with a ratio 5.2

%, 29.7 % respectively. The number of registered motor vehicles increased with a ratio of 67.9 % in comparison to the same period of the previous year According to the interim data in July 2011, the number of registered to the traffic motor vehicles increased with a ratio of 67.9% in comparison to the same month of the previous year. Cars, small buses, buses, small trucks , trucks, motorcycles, special purpose vehicles and tractors increased with a ratio 69.4 %, 93.2 %, 127.2 %, 60.4 %, 131.2 %, 56.4 %, 7.4 %, 124.3 %. In January - July 2011, total number of registered vehicles increased by 629,337 While 128,786 motor vehicles were withdrawn, 758,123 motor vehicles were registered in July of

2011. Hence the total number of motor vehicles in traffic is increased by 629 337. As of the end of July, the total number of motor vehicles in Turkey became 15,724,940. In the total number motor vehicles the ratio of cars, small trucks, motorcycles, tractors, trucks, small buses, buses and special purpose vehicles became 50.3%, 16.2 %, 15.7 %, 9.2 %, 4.6 %, 2.5 %, 1.4 % and 0.2 % respectively. Concerning the distribution of trademarks for the registered cars in July 2011 The distribution of the trademarks of the cars registered (60,302) in July 2011 is; Renault 15.6 %, Ford % 13.6, Opel 10.4 %, Tofaş-Fiat 10 %, Hyundai 7.6 %, Volkswagen % 6.9, Toyota 5.6 %, Chevrolet 3.5 %, Dacia 3 % and the other trademarks 23.7 %.

D -8 decides to encourage industrial and technical cooperation

he D -8 member countries completed the meeting. The D-8 Ministerial Meeting on Industry held in Istanbul on October 4-6. After the meeting a declaration was issued,

stated that the member countries to encourage industrial and technical cooperation, in a way that would include the production of D-8 model cars in the long term. In the declaration, member

states agreed to hold conferences, seminars, vocational courses, workshops and fairs to exchange know-how and experiences, to boost investments, and to support environment-friendly invest-

ments and projects for sustainable development. The declaration said member states aimed to end poverty by supporting dynamism and competitiveness of national economies and raising

employment. In the declaration, the states also agreed to increase joint researches on energy to raise use of renewable energy resources, lift technical obstacles before trade, and

increase share of D-8 countries in international markets. Meanwhile, Turkey's Science, Industry & Technology Ministry signed a cooperation protocol with Egyptian Ministry of Foreign

Trade & Industry. Known as Developing-8, D8 is an organization for development cooperation among the following countries: Bangladesh, Egypt, Indonesia, Iran, Malaysia,

Nigeria, Pakistan and Turkey. The establishment of D-8 was announced officially through the Istanbul Declaration of Summit of Heads of State/Government on June 15, 1997.

ACEA Economic Report 2010: Vehicle production on recovery path

ecovering from the very low levels of 2009, vehicle production in the EU progressed on a slow recovery path in 2010, growing by 11%. However, output was still 8% below levels reached in 2008. With the phasing out of stimulus measures, new passenger car registrations fell by 5.6% in 2010, compared to 2009. The demand for vehicles emitting less than 120 g CO2/km rose by 20%, up to a total of 3.9 million cars. This is 29% of the total demand

for new cars, according to the executive summary of the ACEA Economic Report 2010. Vehicle production Following 2009, which saw production drop across most segments throughout the year, 2010 marked the recovery of the automobile industry, although pre-crisis levels have not yet been attained. A total of 16.9 million motor vehicles were produced in the EU in the course of 2010, which is 11% more than in the previous year but 8% less

when compared to 2008 and 14% less than in the crisisfree year of 2007. Despite an 8% increase, new passenger car production reached, in absolute figures, the lowest level recorded since 1997, with the exception of 2009. The number of cars manufactured in the EU in 2010 amounted to 15.1 million units, or 8% more than in the preceding year but 6% less than in 2008. In absolute figures, Germany remained the largest car producer in the EU, with 5.6

million units in 2010, or 11.8% more than in the previous year. France and Spain performed similarly as both countries manufactured 1.9 million cars and increased their production by 5.7% and 5.6% respectively, compared to 2009. Among the biggest markets, the UK expanded the most in 2010 (+27.1%), with a total of 1.3 million cars. For the first time, the Czech Republic produced over one million cars, which is 9.5% more than in 2009. Production of vans and trucks increased by 41% and 50% respectively, but volumes remained well below the average level of past years. Globally, car production increased by 22.4% in 2010, after a 9.6% downturn in 2009. In total, 58.3 million cars were manufactured in 2010. The EU was the biggest producer, accounting for 26% of world car production. China, at 13.9 million units produced , saw its output growth four times higher than production growth in Europe, expanding by 33.8% compared to 8.3% growth in Europe in 2010. Japan, the world’s third largest producer, manufactured 21.1% more cars than in 2009, followed by South Korea (+22.4%), Brazil (+9.8%), India (+29.4%) and the US (+24.4%). Demand: passenger cars 2010 marked the end of the fleet renewal schemes implemented in a number of EU Member States. These had helped cushion the impact of the crisis. In absolute figures, in 2010, new car registrations

reached the lowest level recorded since 1997, with 13.3 million units, or 5.6% less than in 2009 and 14.1% less than in 2007, before the crisis. Looking beyond Europe, the EU accounts for 23.8% of all new passenger cars registered in the world in 2010, while 20.6% were recorded in the USA (incl. light trucks), and 20.1% were in China. Demand for cars emitting less than 120gCO2m up 20% Small cars (segments A and B) represented 43.4% of new registrations in 2010, while demand for cars emitting less than 120g CO 2km recorded a 20% increase, which is a rise of 631,000 on the segment total in 2009. In 2010, 3.9 million units, or 29% of all new cars were lower emission vehicles. The market share of diesel cars rose from 46.1% to 52.0% in 2010. Vehicles on the roads According to the latest data on motor vehicles in use in the EU for the year 2009 released by Eurostat (2011 edition), the EU fleet totalled 236.1 million passenger cars, or 1% more than in 2008. Cars accounted for 87.2% of the total motor vehicle fleet in the EU. While the average age of the EU car fleet is about 8.2 years, 35% of the cars on European roads are older than 10 years, according to the latest ANFAC (Spanish Automobile Association) report on motor vehicles in use in the EU (April 2011 edition).

EU takes important step towards cleaner fossil fuels

&E has welcomed a European Commission decision to promote cleaner sources of fossil fuels for transport. Article 7a of the Fuel Quality Directive adopted in 2009 set a binding target to cut CO2 emissions from transport fuel production by 6% by 2020. The Commission’s original plan to introduce a specific CO2 rating for fuels produced from polluting tar sands looked set to be dropped after an unprecedented lobbying campaign by the Canadian government and oil interests. However, the Commission has now reverted to its original plan and included individual values for different sources of fossil fuels, including tar sands, in a proposal outlining the detailed implementation of the law. The effect of the CO2 ratings will be to provide an incentive to dirty fossil fuel producers to clean up their act if they want to compete with cleaner sources on the European mar-

ket. Jos Dings, director of Transport & Environment, said: “With this decision the EU is sending a signal to the oil industry that dirty fuels should clean up or stay away. If member states give this proposal the green light, producers will have a real incentive to invest in cleaner technologies and to stop dirty habits such as flaring. The Commission, and in particular, the climate commissioner Connie Hedegaard should be applauded for not backing down in the face of huge pressure from Canada and the oil industry.” The proposal still needs to be approved by national governments in the coming months. The European Parliament has already pledged its support with a resolution earlier this year raising concerns about tar sands in the context of EU-Canada trade negotiations. A petition against tar sands, containing over 20,000 signatures, was presented to the Parliament in March 2011.

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