H. E. KURSAD TUZMEN State Minister of Foreign Trade, Turkey shares with us his views on India, Turkey and their blossoming relationship.

You have been the Turkish State Minister of Foreign Trade since 2002 and held supporting roles within the same department since 1993. What led you to a career of economics and global relations?
I began as a free zones expert dealing with free export processing zones as part of the state planning organization in 1984. Before 1984 I was involved with private companies. It was during this time that I realized the low per capita income of Turkey was hindering our progress, both democratically and economically. We had to upgrade our standards. That is why in the public works I always strive for synergy amongst private companies. From being an expert in free zones, I became head of the department in 1991; Deputy Director-General in 1993; Director-General in 1994; Deputy Under-Secretary in 1997; Under-Secretary of Foreign Trade in 1999; and finally in 2002, I became the Turkish State Minister of Foreign Trade. The Turk Exim Bank, foreign construction works of Turkey, export promotions and export revenues are included in my portfolio.

Turkey and India are in the midst of strengthening their trade relationship. What are the similarities and differences between the economies?
The underlying similarity is that both India and Turkey have at some point been one of the most powerful and richest countries in the world. Both countries share an appreciation of local currencies. Both countries have trade deficits. Both countries lack significant hydrocarbon resources. Both countries have high per capita income and growing economies. In the last 5 years, India and Turkey have had 8.5% and 7.5% growth rates respectively. In terms of differences, I do not see that many. We are both developing countries. The basic difference would be that Turkey has a population of about 70 million compared to India's 1.3 billion. India is in Asia and Turkey is in Europe. These differences however hold many possibilities. We have the Black Sea, the Caspian Sea and the Mediterranean Sea. India has access to the Indian Ocean. I want to connect the seas of Turkey to the oceans of India. I would like to exhibit India's potential to Turkish investors and at the same time I would like to attract Indian investors to benefit from Turkey. I have brought with me to India a delegate of 170 businessmen in keeping with this objective.

Presently Turkey's trade focus resides primarily in Western Europe and the United States. What is the status of Turkey's current trade and investment relationship with India and other emerging markets?
Turkey currently conducts 55% of its trade with countries of the European Union (EU). Our geographic location allows access to a viable market of over 350 million people. Our recent trade and investment program with the surrounding countries of Central Asia has been very successful. Such trade was representing only 3% of Turkey's total trade as of 2000. That figure has increased to 34% today. In Africa and India, I see a lot of similar investment potential and trade opportunities, which we are presently exploring. Turkey's current trade volume with India stands at $2.6 billion. I believe that in 5 years we can increase our volume of trade to more than $10 billion. It is not very difficult for me to envision this. It is actually not a very optimistic figure. We are quite capable of achieving this target. The Turkish Exporters Assembly's export target stands at $125 billion for 2008 and $200 billion for 2013. India will play a significant role in these figures.

What barriers must be overcome to further develop this relationship?
We currently lack the availability of shortcut mechanisms. A free trade agreement between our two nations would help matters tremendously. A well constructed free trade platform between India and Turkey would easily overcome most significant barriers to investment and trade.There are tariff barriers as well. Tariff rates are quite high in India. As a Customs Union member of the EU, Turkey enjoys a 3.5% tariff rate. Countries can sell their goods in Turkey without the burden of increasing tariffs. When I want to sell those same goods in India however, I am confronted with a daunting 40% to 50% tariff rate. This is unfair.

As the economic relationship between Turkey and India strengthens, in which sectors do you foresee significant growth?
I see significant growth taking place in the Automotive and supporting industries such as chemicals, plastics, sanitary equipment, pharmaceuticals, construction, steel, iron and metal. These are the leading sectors with great potential for growth. Turkey is eager to broaden their activities in the Indian market by investing in different potential sectors like food and food processing, textile, plastics, chemicals, machinery, construction material as well as taking part in infrastructure projects. Turkish businessmen are also keen on collaborating with their Indian counterparts in the areas of energy, mining, biotechnology, medicine, IT and railways.

How do you envision an optimum economic relationship between Turkey and India?
An optimum economic relationship between Turkey and India will be based on a well constructed free trade agreement. It will overcome all small bottlenecks and allow accessibility between the two nations. India could also consider utilizing Turkey as gateway to the European Union for enlarging its trade with the 27-nation bloc. We are striving towards a comprehensive economic relationship between our two countries.

Turkey is known globally for its machinery industry and advanced R&D. What role does the education sector have in producing and maintaining skilled labour?
We definitely have to upgrade skills as technology advances and we implement programmes within factories to suit this objective. Sixty percent of our population is under 30 years of age, so adapting to the evolution of technology is not difficult. This creates great potential for development. Our machines produced by our qualified labour force, who are trained in line with universal criteria, vie for the top place in many sub sectors. We unremittingly strive to maintain an efficient and cooperative university-research institution-industry relationship. The Turkish machinery industry founded only in the 1950s now has a total sales volume of $20 billion with 20000 manufacturers who serve the sector. The speed of our machinery sector's annual production growth is at the level of 20%. We produce 80% of the input we use in production ourselves.Research and development (R&D) is also a high priority for us. India is an IT giant with over US$40 billion in revenue from software, but I am certain there are still complementary areas that can benefit both nations.

Istanbul will be proclaimed as the European Cultural Capital in 2010. What significance would this achievement have for Commerce and Trade Relations of Turkey?
Istanbul being the European Capital of Culture in 2010 will allow us the opportunity to exhibit the real image of Turkey to the world. Along with exhibiting the real image of Turkey, we can also display the products and services of Turkey.

Which places and what activities would you recommend to a tourist visiting Turkey?
First and most definitely, I would recommend Istanbul. Without seeing Istanbul you will not know Turkey. Istanbul is part of the cultural heritage of the world, not only for Turkey. You will be able to see the crossroads of the continents; crossroads of religions; crossroads of transportation, energy and communication. You will see a real bridge between continents and cultures. Istanbul is a living record of all civilizations that have developed in Turkey. The unique landscape of Cappadocia is fascinating to experience. The Mediterranean and Aegean coasts of Turkey should not be missed either. Exploring everything Turkey has to offer is not easy. Words alone cannot prove that. Only a visit can. I encourage everyone to experience Turkey, and we invite you to explore our country.

Lastly, your message to the readers:
India and Turkey will be the shining stars of the 21st century. We have had ups and downs in the past but now we will strive to connect the seas of Turkey with the oceans of India and this will create a lasting synergy. I strongly recommend the people of India to work with Turkish companies and invest in Turkey. I encourage the people of Turkey to do the same in India. Both countries deserve better.