TURKPULSE No:69..........APRIL 22nd,  2002   

 

LACK OF CONFIDENCE IN U.S.-TURKISH TRADE TALKS

Turkish-American economic talks will be held on 25 April to discuss the frame agreement for duty free and quota free Turkish exports to the United States with QIZ (Qualified Industrial Zones) arrangements. The Americans have had these arrangements with Israel and Jordan since 1996 to dodge the economic sanctions to Iraq through indirect ways, while banning other countries, particularly Turkey, from trading with that country in the post-Gulf war period. Pulse has reason to believe that nothing will come out of these talks in the pipeline. For the reasons for this belief and the details of the distrust that reigns in Turkish-American relations please see the following article.             

It has been three weeks since Turkey announced “in principle” to take over from the UK for six months the command of ISAF (International Security Assistance Force), the 5000-strong multinational force to restore peace and security in Afghanistan. So far no concrete development has taken place in this regard despite the consensus worked out between Turkey and the Anglo-Americans on the highlights of the status and scope of command of this force. Ankara’s insistence on putting the agreed points in a contractual agreement and the other side’s hesitation or refusal to comply is instrumental in this precarious situation. The NSC announced after its March 29th session, “Turkey has, in principle, embraced the idea of taking over the command of ISAF in Afghanistan and stressed the importance and priority of answering certain conditions on this topic.” 

According to this decision, the special conditions concern putting under the Turkish commander’s order American cargo aircraft and logistics facilities, as well as technical infrastructure of the British headquarters in Kabul. If final agreement is reached Turkey will increase its forces in the 5000-strong ISAF from 261 to 1000 and command it under a Turkish general, (Maj.Gen, Akin Zorlu) between 22 June and 22 December 2002. Its mandate will not extend beyond Kabul. ( Breaking News, April 6th, 2002.)     

Apart from this arrangement with the Anglo-Americans, Turkey is already training over 600 Afghan soldiers to serve as presidential guards to be the nucleus of the national army to be established in that country and this work will go on as part of Turkey’s traditional cooperation with Afghanistan since Ataturk’s time, with or without a written agreement with the West.

Turkey’s reasons for pressing for a written agreement about ISAF

Turkey has had a number of bitter experiences in its dealings with especially Washington in the past. The most prominent was General Roger’s word of honour “as a soldier” to President Evren in the 12 September (1980) interregnum for Turkey’s lifting its veto on Greece’s return to NATO’s military side and non-observance of these points by the West even before General Rogers left the position of the NATO supreme commander.

Pulse’s guest writer Indian Ambassador Gajendra Singh (retired) occasionally quotes an unidentified Turkish Deputy Prime Minister as having told him that far from observing verbal commitments, Americans did not even observe written agreements when it suited them.

The latest example of this was seen only a couple of weeks ago over the 12 April military coup in Venezuela. Despite the Inter-American Democratic Charter signed by 34 countries of the Americas including the United States on September 11th, 2001, a few hours after the twin towers tragedy in New York, Washington turned a blind eye over the military coup against President Chavez of Venezuela, in a clear declaration: “The peoples of the Americas have a right to democracy and their governments have an obligation to promote and defend it.” It also ignored the Charter’s express provisions, which establish “a mechanism for collective action in the case of a sudden or irregular interruption of the democratic political institutional process or of the legitimate exercise of power by the democratically-elected government in any of the organisation’s member states, thereby fulfilling a long-standing aspiration of the Hemisphere to be able to respond rapidly and collectively in the defence of democracy.”

Now that President Chavez is back in office with a counter coup two days after his removal from office with American instigation, there is a very embarrassing situation for Washington in the Americas and the world in general.

These examples, which partially stem from the pluralist democratic structure of the United States, can naturally be increased. What is important at the moment is the reason why Turkish-American relations are moving forward so slowly and painfully, if not marking time.

Another American invention, QIZ, to further complicate economic relations

Within a few days, on April 25th, the Turkish-American talks for economic cooperation will be held on the basis of the principles reached during PM Ecevit’s official visit to Washington last January. High on the agenda is promoting Turkeys’ exports to the United States with an arrangement similar to the QIZs that exist between the USA and Israel, plus Jordan.

On the eve of these talks, the daily Milliyet wrote on Saturday (20th) that Turkey has not yet brought up a draft agreement with the American side for these zones, even though at the first round of these talks in February such a decision was taken. A high-ranking American Embassy spokesman told Turkish journalists in Ankara, “Less than two weeks is left, but there is still no proposal (from the Turkish side) about the location (of QIZs) and products (to be exported duty free to the United States). After we reach a consensus on them the bill will be presented to Congress. By-elections (in the United States) are in the autumn. The summer recess of Congress is approaching. A Congress in recess cannot make alterations in the legislation.” The same spokesman said that the American Under-Secretary of External Trade would lead the American delegation and significantly remarked, “We exerted special efforts for the right people to come to the negotiations,” concludes the Ankara datelined Milliyet dispatch.

Everything the American Embassy spokesman told the reputable Turkish daily is correct, but as usual dinted with incurable American disinformation.

It is true that at the contacts between the Turkish and American sides in preparation for the economic talks ahead it has not been possible to bridge any gap on the respective positions.

About the venue of QIZs, the Turkish side wanted Turkey’s free trade zones in Mersin, Antalya and other cities to serve as QIZ. The Americans insisted on the Southeast and other irrelevant places such as the Black Sea coast. They also wanted Turkey to use Israel’s QIZs to avoid the compulsion to pass a bill through Congress, but neither the Israel-Palestine confrontation nor Turkey’s impatience with PM Sharon’s atrocities were suitable for such an arrangement. That is where this thorny problem emerged about the tight schedule of Congress. But even if Ankara risked such a long procedure of passing through Congress it has still not been able to avoid the Israeli involvement, because under QIZ arrangements, “The product must be a substantially transformed good with at least 35 percent of its value added in Israel, a Jordanian QIZ or the West Bank/Gaza.”

As for the products that will enter within the scope of Turkish QIZs, the Americans insisted that labour intensive industries should be excluded from these arrangements. It meant excluding Turkey’s number one export items textiles and ready-made clothing from these tariff facilities. Instead the Americans insisted on having high-tech industries in these zones. An insider at these talks remarked to Pulse, “Who will make high-tech investments in the Southeast, say Sirnak, and how will he be able to run this costly investment in this underdeveloped region?”

Is excluding textiles and clothing industries from the QIZ treatment a common practice for Israel or Jordan? The answer is a categorical “No, not at all”. On the contrary, official American documents underline, “Generally speaking, U.S. tariffs on clothing and textile goods are relatively high, (they go up to 30 percent), which makes production of these goods in QIZs especially attractive.”  The American side has so far denied this attraction to Turkey. 

Finally, as for the American Embassy spokesman’s remark about the American wish to see proper Turkish officials at the 25 April negotiations, it concerns Washington’s demand to exclude the Under-Secretary of Foreign Trade, Kursad Tuzmen, from heading the Turkish delegation. Probably because Tuzmen has done such a magnificent job in promoting Turkish-Iraqi trade and economic relations that he must be in the Americans’ bad books. And now they are demanding his exclusion from the Turkish delegation in disregard of the fact that he is the most competent bureaucrat for foreign trade and that it is an unprecedented practice for a country to determine the composition of the other side’s delegation at the talks.

The optimistic outlook at US-Turkish trade, trebling American investments

On the eve of the Turkish-American economic talks to centre on QIZ, the Head of the U.S. Chamber of Commerce, Thomas Donohue, visited several Turkish cities and industrial centres and voiced views totally in contrast to the above pessimistic developments. He said after his meeting with PM Ecevit on Friday (19th) that he was returning home “with a constructive report about the Turkish economy.” Donohue said that there could be a three-fold increase in US investment in Turkey and in mutual trade if the economic reforms liberalising markets went on in this country. Ecevit answered that foreign investors would no longer “knock on 40 doors, but only one.” A new bill was underway for it, he promised.

Turkish-American trade, which stood at $7 billion last year, may surpass $20 billion if the American businessman’s optimism is true, but the preparatory talks for the April 25th negotiations were not justifying this optimism. One promising thing about the whole affair is that it is in line with the American tactics to create pessimism before important talks, but  to be more flexible at the conference table.  uras@ada.net.tr - April 22nd, 2002   

    

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