PULSE of TURKEY No11

TURKISH-SPANISH COOPERATION; THE NUCLEUS OF A MUCH WIDER COOPERATION

New cooperation from China to Chile is given the go-ahead. Spain is keen on energy cooperation with Turkey, with an eye to larger cooperation with the Caspian oil countries. Turkey is bent on completing the necessary legal infrastructure for larger economic relations with the Spanish speaking world. Turkey and Spain sign “Joint Action Plan” against organized crime and terrorism.

About the Spanish PM Jose Maria Aznar’s official visit to Turkey between July 21^st and 23^rd, the media last week hailed “The new cooperation in the Mediterranean”, but it was, in fact, a much deeper cooperation than just the Mediterranean. It was part of a massive cooperation talked about by Foreign Minister Ismail Cem to make 1999 the year of booming relationships with Latin America.

And this is only the Turkish side of the cooperation. Apparently Spain also has similar extensive cooperation plans with the Central Asian Republics of the ex-USSR. While Turkey will play a constructive role in Spain’s intentions to open up to the Turkic republics, Spain will also help Turkey about its intentions to give a boost to its relations with Latin America as from next year.

1999 will be a year of cooperation with Latin America and Africa

During a televised interview on June 14^th Foreign Minister Cem said: “God willing, 1999 will be the year of Latin America and Africa in our foreign policy. We are making all the preparations to open up to these places. We have covered a serious distance in the case of Latin America. We are laying the political infrastructure with Latin America and on that foundation we will be able to elaborate upon economic relations of enormous dimensions, despite certain very high tariffs. We are working on it. Believe it or not, a giant such as Canada does not exist in Turkey’s foreign policy. It’s just non-existent. Now we are putting Canada in the circuit in 1999. In 1998 we managed to realize the China reality…”

Foreign Minister Cem had a working lunch with the Latin American ambassadors in Ankara on February 12^th this year to review the conditions of giving a boost to mutual relations. They agreed that Turkey’s political relations were at a satisfactory level with Latin America, but there was a lot to be done on trade and economy.

Within the resolutions taken at that meeting, Ambassador Başkut (Assistant Under-Secretary of the Ministry of Foreign Affairs) organised meetings between these ambassadors and Turkish business representatives. The two sides noted with satisfaction at these meetings that mutual trade had risen from $450 million in 1994 to $941 million in 1997. They decided to carry on with this growth which was more than 100% and to accelerate this process. To this end, they decided that

The necessary legal infrastructure will be completed in a short time to facilitate trade and economic relations between Turkey and Latin America. In this context, agreements will be concluded to prevent double taxation and to mutually encourage and protect investments.
The parties concerned will be regularly provided with information about each other’s economic performances.
Surveys will be carried out to seek the possibilies of trade and cooperation in certain selected sectors such as construction, electronics, agriculture, agro-industries and automotive side industries.
Possibilies will be sought for the establishment of a Business Council covering the entire Latin American countries within DEIK (The External Economic Relations Council).
Such consultative meetings will be held regularly and periodically (3-4 times a year) between the Latin American ambassadors in Ankara and Turkish business circles.

Spain will play an active role in Turkey’s expansion to Latin America

While these activities and preparations were going on with Latin American countries, PM Aznar paid an official visit to Ankara last week for a massive cooperation with Turkey. This cooperation will extend into the next century and the scope was not only for the two countries or their common area, the Mediterranean, but far wider, a world stretching from Chile to China.

PM Aznar has enjoyed special friendly relations with PM Mesut Yılmaz for the last eight years and this fact facilitated their working out the principles for this promising cooperation. In fact, President Demirel’s State visit to Madrid last March (between the 3^rd and 5^th) had already paved the way for these activities.

During this first State visit from Turkey to Spain, the following decisions were taken for mutual cooperation.

In the political field

To run close political consultations between the two countries, the two Foreign Ministers will meet once a year and their under-secretaries or bureaucrats of secretary-general or director-general level regularly.

Given their common interest in making the Mediterranean a sea of peace, security and cooperation, they will try to jointly make maximum contributions to international efforts in this direction.

Likewise they will encourage cooperation in judicial and interior affairs and contacts among parliamentarians.

They will encourage contacts among local government representatives.

In the economic field

It has been observed with satisfaction that the Highways Transport Agreement has been signed and the instruments of ratification for the Investments Encouragement Agreement have been exchanged.
It has been agreed to hold this year the Joint Economic Commission, the Economic and Industrial Cooperation Commission and the Turkish-Spanish Business Council.
An understanding has been reached about the conclusion of the Agreement for the Prevention of Double Taxation and putting it into force before April 1999.
Joint investments in third countries, primarily in Central Asia and Latin America will be encouraged especially in the contracting field.
Small- and medium-size enterprises, which play an important role in modern economies, will be included in this cooperation, and contacts and cooperation of such companies in Turkey and Spain will be encouraged.

President Demirel said on his return home, “Turkey is determined to cooperate with Spain for setting in motion the full potential of a vast area stretching from China to Chile for the sake of the welfare and stability of the Mediterranean basin and peace and security of Europe. I have established during this visit that the same understanding also exists on the Spanish side and that it is ready to translate this understanding into action with concrete examples.”

PM Aznar’s official visit last week was held on sound grounds that were already laid out for an extensive cooperation and enlarged upon further. It was decided that the two prime ministers should come together once a year, in addition to the two Foreign Ministers and the regular contacts between the top bureaucrats of the two countries.

In the judicial and interior affairs’ fields, priority will be given to fighting against organised crimes, drug trafficking, illegal immigration and terrorism, within a Joint Action Plan which was signed in Ankara on July 22^nd by the two Prime Ministers. The original plan was to have it signed at a lower level, but to show the importance attached to this agreement, the two Prime Ministers personally signed it.

The economic side of the plan expects mutual trade to exceed $2 billion this year with aims of increasing it in future years. There will be joint investments and coordinated work in especially Latin America, the Caucuses, Central Asia and the Mediterranean. In the cultural field, Spain will organise special festivities to mark the 75^th anniversary of the Turkish Republic and the 700^th anniversary of the Ottoman Empire. Cultural centres will be opened mutually in both countries.

PM Yılmaz told a press conference on July 22^nd that two work groups had been set up to promote economic relations and to coordinate joint investments in third countries. They would hold their meetings in Antalya in the second half of September. The Joint Economic Committee would convene in Madrid in October. “There are no political problems between the two countries, but there is an enormous potential for economic cooperation that has been hitherto neglected,” he stressed. “We reviewed certain investment projects and decided to give our support as prime ministers for their coming to life,” said Yılmaz, but he would not reveal what these projects were. He only said that they were mostly in the energy and communication sectors. It is expected that defence industry cooperation is also included in this cooperation. Turkey has already participated in joint ventures with Spain for the manufacture of transport aircraft, Casa.

PM Aznar said that Spain did not just have an ordinary relationship with Turkey. It was a very special one. “I believe that this relationship will develop further. This relationship is also reflected in the two countries’ relations with the European Union. We will sustain this relationship in our relations with the EU. The problems in Turkey’s relations with the EU should be solved. Turkey should enjoy the same conditions as the other candidate countries. We must work for the solution of these problems.”

State Minister Işın Çelebi said after the talks with the Spanish delegation that a new cooperation was emerging in the Mediterranean. “We will develop big projects and investments. We are also pleased about PM Aznar’s supporting us in the EU.”

Energy Minister Cumhur Ersümer said that they would make joint energy investments with Spain. A 700 MW powerplant was currently being built in Çanakkale as a joint venture with Spain. “We have now decided to work for new projects. Spain is closely interested in Turkey’s energy investments. We will provide all sorts of facilities to them,” he said.

Spain expressed interest in Turkey’s help for opening up to Central Asia. uras@ada.net.tr July 24^th 1998