The Asia-Pacific region, which provides 60 percent of the growth in the world economy and where most of the global trade and energy transfer takes place, has a strategic importance for the Turkish economy and the Turkish exporter.
Food and natural stone are the prominent sectors in the region for exporters after changing the balance. The bilateral trade relations with China as well as in Asia-Pacific countries to distrust the star can shine some sectors, such as garments, hand the opinion of the judges will be translated in favor of Turkey.
Egeli exporters aim to expand their export range by developing their successful market strategy with new collaborations and partnerships in the Asia Pacific Region with Turquality, Ur-Ge projects, fairs and sectoral trade delegations.
At the online video conference organized by the Aegean Exporters' Associations, Tokyo Commercial Counselor Murat Yapıcı, Sydney Trade Attachment Selçuk Bozok, Melbourne Trade Attack Tayfun Kılıç, measures taken in the coronavirus process in Japan and Australia, the state of the country's economies after the epidemic, developments in the foreign trade of the countries and opportunities for the next period were on the table.
EIB's exports to Japan and Australia on the rise
Stating that the Asian-Pacific countries are gradually returning to normal, Ege Exporters' Associations Coordinator President Jak Eskinazi thinks that the developments in the Asia Pacific region, which has become a new center of gravity in terms of global production and trade, should be followed well by the Turkish exporter.
“Olives, olive oil, seafood, dried fruit, cereals, pulses and oilseeds are the sectors where Aegean Exporters' Associations are strong in the Asia-Pacific market. January-May period, exports to Turkey by 27 percent in Japan, down 163 million dollars, while exports to Australia amounted to $ 10 million, down 224 percent. Aegean Exporters' Associations, on the other hand, reached $ 5 million in Japan, with an increase of 3 percent in the last 40 months, and $ 1 million in Australia, with an increase of 47 percent. Japan and Australia how 80 percent of exports from Turkey is doing its shopping hinterland of European Union countries, making the Middle East and North African countries. We make the remaining 20 percent to remote geography. This new cooperation in Turkey's great potential and added value with high investment to accelerate our integration with the Asia-Pacific region, and we want to turn into sustainable partnerships. "
Export bar rises in Asia-Pacific
Jak Eskinazi added that they are working hard to open up new opportunity gates and get the results of their market entry efforts.
“As Aegean Exporters' Associations, we have been organizing national participation organizations for over 20 years at Foodex Japan Food Fair in Chiba, Japan. This year, we will also organize the national participation organization of the International Import Fair, which will be held for the third time on November 5-10 in Shanghai, China. We will introduce Turkish export products to importers from all over the world mainly from the Far East. Our natural stone sector, on the other hand, returned to Australia with important business contacts after the sectoral trade delegation it held to Australia last year. In order to increase the export of food products to the Far East market, we achieved a good momentum with the “Turquality Project for the Promotion of Turkish Food Products in the Japanese and South Korean Markets”. Asian Turkey's paramount importance to the role of exporters of a wide consultation opportunities will implement our Commercial Counselor offering ways to expand the range of exports to the Pacific region by transferring the developments in the region determining map. "
The recommendations for the Japanese market are as follows;
- Access ban to 111 countries continues in Japan. Among the countries where the flight ban will be lifted first are those mentioned; Australia, New Zealand, Vietnam and Thailand. The restriction is expected to continue for a while. Flow from Japan to abroad this year is not likely.
- In the first 4 months, Japan's imports decreased by -5,5 percent and exports by -9,2 percent. The IMF's forecast for Japan will shrink 2020 percent in 5,2.
- The amount of support provided to stimulate the economy and accelerate the exit from the crisis has reached $ 1,85 trillion. The economic measure package corresponds to 40 percent of Japan's gross national product.
- The world's largest investor country and fourth largest importer. It has 706 billion dollars export and 721 billion dollars import.
- It makes 70 percent of its trade and investments to countries in the region close to itself, Austria, New Zealand, China and Thailand. The other part is going to the American continent and 10 percent to Europe.
- Japanese consumers have an interest in quality, space-saving functional products, packaging and brand expectation, solid-fitting consumption habits. Japanese domestic producers, Western brands and cheap Asian countries are on the market.
- Imports of raw materials, mining, energy, medical products, automotive and sub-industry intensity.
Japan's exports to Turkey last 12 years 250 million dollars from 500 million dollars. Products exported to Japan include automotive, sub-industry, machinery, apparel, textiles, iron and steel, natural stone, food, basic agricultural products. In the first 4 months, items with increased imports in Japan are pharmaceutical products, durable food products, vehicles related to individual transportation (bicycles, mopeds etc.).
- Firms should set up their market entry strategies correctly. It is very important to establish local units, to participate in fairs abroad, to follow an active process with business delegations. Aegean Exporters' Unions of Turkey's first virtual exhibition of digital initiatives launched should continue with Shoedex2020, contacts should be increased by using technological facilities.
- Turkish companies should enter special and innovative products that distinguish themselves from Japanese brands. Studies for product promotion should be accelerated.
- The presence of major Japanese firms in Turkey. There are currently 248 Japanese companies investing and operating in Turkey. Japan's total foreign direct investment in Turkey reached $ 2,9 billion. Attracting investors is of great importance both in exporting to Japan and exporting to the world. There is a need for Free Trade Agreements. Negotiations made within the scope of Free Trade Agreements with Japan have come to an end.
Diplomatic relations of the two countries are at a good level. Turkey's agreement with the Japanese government's credibility in the trade mark.
- Potential products are concentrated in food. There is a 60 percent increase in demand for food products. Dried tomatoes, pasta, pizza etc. import continues. There is a trend towards ready-made food, catering services are increasing. Chicken meat, frozen vegetable-fruit, citrus, dried fruit, olive oil, pasta, dry food, fruit and vegetable, raw material purchase, textile, shoes, furniture, software are among the potential products. Dairy products from Turkey to Japan continues to export cheese.
- Ur-Ge projects, sectoral trade delegations, participation in fairs are important. The shift away from China can bring in certain sectors in Turkey. They expressed that Turkey can receive a share in the Clothing.
Recommendations for the Australian market are as follows;
- An economy of 1,4 trillion dollars. It has an economy based on 80 percent of services economy and 20 percent of production. There is mainly mining and 5,5 percent manufacturing industry in production. Agriculture, forestry, animal husbandry and fishery products are other items in production.
- has extensive mineral reserves by ten times the size of Turkey's geography. It ranks first in the world in iron ore, gold, lead, nickel.
- Around 900 thousand foreign students are studying. 30 billion dollars of income is generated annually from the education sector. There is a $ 12 billion loss resulting from the disruption of education. Finance, health and insurance are among other prominent sectors.
- Recently, there were drought-related shrinkage in the country. Forest fires affected the timber and agriculture sector.
- Currently, flights are made in one way. One of the biggest reasons for the fall of GYSH is the decrease in household consumption and one of the private sector investments.
- There is an increase in food, medical hygiene products, household goods electronic products, game consoles, sports equipment, construction materials for home renovations.
- In the January-April period, exports decreased by -7,4 percent and imports contracted by 12,1 percent. The unemployment rate is 6,2 percent. There is an annual income of 30 billion dollars from tourism. By 2021, all foreign investments will be subject to the permission of the Foreign Investigation Board of the Australian Federal Treasury.
- The Central Bank's June forecast is that there will be a serious contraction by around 8 percent at the end of the second quarter. Decline in exports and imports will continue. Imports are expected to contract by 1 percent and exports by 7 percent. As of June, imports are expected to decrease by 14 percent.
Australia's 2019 exports are $ 270,9 billion and imports are $ 213,7 billion.
- 74 percent of Australia's trade, namely 200 billion dollars of mine, is mining. There are 55 thousand exporters. 167 companies export 200 billion dollars. Agriculture, animal and food sectors make up 11 percent. Others are machinery equipment, medical products. The most exported ones are iron ore, hard coal, natural gas, gold, beef products.
- Australia's imports cover all kinds of products. Most manufacturing sectors are 5,5 percent of the economy, agriculture, animal husbandry and food fishing are above 2 percent.
Australia does not produce self-sufficient. A country that imports every product. The countries where they trade are countries in their hinterland both in exports and imports. It makes 40 percent of its exports to China, including Hong Kong. Japan, Korea, USA, England are the other countries with the highest export.
- A quarter of the imports are from China and 12 percent from the USA. Countries such as Japan and Thailand are the countries that they import the most. Turkey, exports of Australia # 32 of 36 imports. Turkey's exports to Australia in 2019 661 million dollars.
- Turkey is doing in each product group exports to Australia. This shows that the potential is high in every product we sell. Vegetable and fruit products make up one-sixth of our exports. Iron and steel, land transportation vehicles and parts, electrical machines, natural stone products, textiles, ready-to-wear, shoes, heavy industry construction machinery, construction materials, chemicals are the products we export the most.
- Customs tax varies between 0 and 5 percent. The time difference is disadvantage as it is within a day's flight distance. Australia's visa application is also in question. Electromagnetic mechanical devices cannot be sent due to the kilogram problem. Fresh fruit imports are limited.
- Turkish companies are trying to sell their products over the internet. After normalization, Turkish companies should go to Australia and meet the buyers one to one. Turkey's export potential in all items made available.
Australia has $ 500 million in dairy cheese imports. Half of it is from New Zealand and the USA, and the other is from EU countries. Banned from other countries due to biosafety issues.
- $ 8 million dried tomato imports in Turkey at number one. Pandemic process is an opportunity for Turkey in terms of food. There is a large ethnic market. Supermarket chain in Turkey, Middle East, Arab countries, Greece and the eastern Mediterranean are putting ethnic products from the market. During this period, Turkish products were placed on the shelves in the market, apart from the ethnic market. The demand for dried tomatoes, dried fruits, finished products and fruit juice continues.
- Demand for residential housing has decreased. There is an increase in public-led construction, office buildings and some hotel investments. It is not foreseen to start new construction right now, there is a delay. The construction sector may stall for at least 1 year in the coming period.