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“Turkey: The Gateway to opportunities on the Silk

Road”

U. Kenan Ipek

CONSUL GENERAL OF THE REPUBLIC OF TURKEY

is the 17th largest economy of the world and 6th largest of the EU with GDP of $654 bn (2007)

with 70 million populationthe largest and the youngest of Europe

has reached 22 million internet users

in last three years (2007)

has 37 million credit card users

(2007)

has 62 million GSM users

(2007)

Turkey is the 8th largest shipbuilding country in the world (2006) -

Turkey is the 3rd largest mega yacht producer in the world (2006) –

VOLITAN IDA International Design Award 2007,New York

Over 1 million motor vehicles were produced in 2007,

for 17 global brands, making Turkey 16th largest producer worldwide

Turkish Airlines is the fastest growing airline company in Europe -

Total 62 million flight passengers in last 4 years -

Cumulative undertakings of construction and consulting engineering firms

have reached 105 billion Dollars in more than 65 countries

Turkey ranked as the 9th most visited holiday destination in the world with 23.3 million tourists

GENERATED REVENUE (INTERNATIONAL

TOURISM)

Country 2006*(bill $)

1. USA 85,7

2. Spain 51,1

3. France 42,9

4. Italy 38,1

5. China 33,9

6. United Kingdom

33,7

7. Germany 32,8

8. Australia 17,8

9. Turkey 16,9

10. Austria 16,7

Manufacturers in Turkey access to 1.2 billion consumers

LOCATION OF TURKEY

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TURKEY: A MAJOR ENERGY TRANSPORTATION HUB

Natural GasNatural Gas

A. ExistingA. Existing• Russia-Turkey (2 pipelines)• Iran-Turkey

B. Under constructionB. Under construction• South Caucasus• Turkey-Greece-Italy

C. ProjectedC. Projected• Trans-Caspian• Nabucco• Samsun-Ceyhan-Haifa• Iraq-Turkey

OilOil

A. ExistingA. Existing• Baku-Tbilisi-Ceyhan (BTC)• Kirkuk (Iraq)-Ceyhan

B. ProjectedB. Projected• Kazakh oil (BTC)• Samsun-Ceyhan

THE BTC AND THE BTE PROJECTS

NABUCCO PIPELINE

ARAB NATURAL GAS PIPELINE

MAJOR PIPELINE SYSTEM AND PROJECTS (1)

MAJOR PIPELINE SYSTEM AND PROJECTS (2)

NATURAL GAS PIPELINES

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Trans-CaspianTurkmen Gas

Egyptian GasArab Gas PL

IraqiGas

(ITGEP)

ShahDeniz

Nabucco

ITGI

Arab Gas PL

BlueStream

RussianGas-West

Nabucco

Trans-CaspianKazakh Gas

ITG

IranianGas

Bosnia Herzegovina

Austria

İzmir

Ceyhan LNG Liquifaction andExport Terminal

TURKEY: NOT ONLY A TRANSI T CORRI DOR BUT ALSO AN ENERGY HUB

THE CEYHAN TERMINAL

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TURKISH ECONOMY

1993-2003(Yearly

Average)

2004 2005

FDI INFLOW ($ bn)

2006

Source: Undersecretariat of the Prime Ministry for Treasury

2007

1.12.8

9

2022

21

TURKISH ECONOMY

2003

Source: Undersecretariat of the Prime Ministry for Foreign Trade

FOREIGN TRADE VOLUME ($ bn)

2004 2005 2007 2006

117

161

190

277220

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TURKISH EXPORTS TOTURKISH EXPORTS TO• Germany• UK • Italy• USA• France• Spain • RF• Iraq• Netherlands• Romania

TURKISH IMPORTS FROMTURKISH IMPORTS FROM• RF• Germany• China• Italy • France • USA• Iran• UK• Switzerland • Spain

TURKISH ECONOMY

MAIN FOREIGN TRADE PARTNERS

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AlbaniaBosniaCroatia

Algeria * EgyptIsrael

Jordan *Lebanon *

EFTA (Iceland, Norway, Switzerland and

Lichtenstein)MacedoniaMorocco

Palestinian Authority Syria

TunisiaGeorgia *

FREE TRADE AGREEMENTS

TURKEY’S FOREIGN TRADE POLICY

* Free Trade Agreement underway

Along with the Custom Union with the EU, Turkey has Free Trade Agreements with 11

countries

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TURKISH ECONOMY

Source: Undersecretariat of the Prime Ministry for Foreign Trade

2003 2004 2005 2007 2006

107

4763

7385

MERCHANDISE EXPORTS ($ bn)

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Mining Products3%

Agricultural Products

11%

Manufactures 86%

Manufacturing goods dominate a high percentage of exports

TURKISH ECONOMYBREAKDOWN OF TURKISH EXPORTS BY SECTORS BREAKDOWN OF TURKISH EXPORTS BY SECTORS

(2007)(2007)

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TURKISH ECONOMY

Source: Undersecretariat of the Prime Ministry for Foreign Trade

2003 2004 2005 2007 2006

6997

116135

170

MERCHANDISE IMPORTS ($ bn)

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Most of the intermediary goods are processed for exports

TURKISH ECONOMY

BREAKDOWN OF TURKISH IMPORTS BY BREAKDOWN OF TURKISH IMPORTS BY BROAD ECONOMIC CATEGORIES (2007)BROAD ECONOMIC CATEGORIES (2007)

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1996 2003

Customs

Union:

2005

2006

2004

TRADE WITH EU COUNTRIES ($ bn)

TURKEY’S FOREIGN TRADE POLICY

Source: Undersecretariat of the Prime Ministry for Foreign Trade

2007

35.660

8895

80

118

29

2000

Implementation year of

the Strategy

TRADE WITH NEIGHBOURING AND SURROUNDING COUNTRIES ($ bn)

TURKEY’S FOREIGN TRADE

Source: Undersecretariat of the Prime Ministry for Foreign Trade

2003

2005

2006

2004

2007

20 31

60

75

45

96

30

2000

NEIGHBOURING AND SURROUNDING COUNTRIES

TURKEY’S FOREIGN TRADE POLICY

Source: Undersecretariat of the Prime Ministry for Foreign Trade

Turkish Foreign Direct Investments($ bn / cumulative)

2007 12

7Implementation year of

the Strategy

31

2001 2002

2004

2006

2003

TRADE WITH THE USA ($ bn)

TURKEY’S FOREIGN TRADE POLICY

Source: Undersecretariat of the Prime Ministry for Foreign Trade

2005

2007

6.46.5

9.6

11

7.2

12.310.2

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POTENTIAL SECTORS AND PRODUCTS

- jewelry- copper and aluminum products, - pumps- air-conditioning equipment- machine tools - electrical equipment- home appliances- cables- agricultural products- auto spare parts

- automotive- processed foods- plastics- apparel, yarns - fabrics - home textiles- marble - ceramic tiles - sanitary ware- glassware

ALLIANCE OF CIVILIZATIONS

– TURKEY AND SPAIN UNDERTOOK THIS PROJECT UNDER THE AUSPICES OF FORMER UN SECRETARY GENERAL, KOFI ANNAN

– PURPOSE IS TO ADDRESS GROWING POLARIZATION

BETWEEN WEST AND ISLAMIC WORLD

– HIGH LEVEL GROUP ESTABLISHED BY UN SECR. GEN. SUBMITTED ITS FINAL REPORT IN 2007

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Thank You