September Foreign Trade Figures Announced

Minister Muş stated that exports reached 30 billion dollars in September with an increase of 20,8 percent compared to the same month of the previous year and said, “For the first time in the history of our Republic, we have exceeded the threshold of 20 billion dollars on a monthly basis.” said.

Minister Muş announced the foreign trade figures for September at the press conference he held with the President of the Turkish Exporters Assembly (TİM) İsmail Gülle at the Conference Hall of the Ministry.

Noting that exports continue to be the locomotive of the country's economy, Muş said that the strong export performance demonstrated throughout 2021 continued in September as well.

Muş gave the following information on export figures:

“Our exports increased by 30 percent compared to September of last year and reached 20,8 billion dollars. In other words, for the first time in the history of our Republic, we have exceeded the threshold of 20 billion dollars on a monthly basis. In addition, our export value for the last 12 months has managed to break a new Republic record with $212,2 billion. With this value, we exceed our year-end Medium Term Program (MTP) target of $211 billion. This is a huge success in terms of exports. I fully believe that this success story will continue to increase and make growth permanent.”

Muş reported that in the January-September period, exports increased by 36 percent compared to the same period of the previous year and amounted to 161 billion dollars.

Minister Muş also said the following regarding import data:

“Our imports reached 12 billion dollars in September with an increase of 23,4 percent compared to the same month of the previous year. Our January-September period imports amounted to 2020 billion dollars with an increase of 24 percent compared to the same period of 193,4. I would like to underline with pleasure that the trade volume of 2021 billion dollars realized in September 44,2 is the highest monthly foreign trade volume.

Pointing out that the ratio of exports to imports, which is another important indicator, increased by 7,5 points to 83,3 percent in the January-September period compared to the previous year, Muş stated that this ratio was once around 50 percent.

Stating that in September, the ratio of exports to imports reached 12,2 percent with an increase of 88,9 points compared to the same month of the previous year, Muş said that the foreign trade deficit decreased by about 15 percent in the January-September period compared to the same period of the previous year and reached 32,4 billion dollars. pointed to a regression.

“Financing opportunities will be provided”

Minister Muş stated that they are aware of the devotion shown by the exporters while achieving important successes as the government.

Emphasizing that they are working hard to remove the obstacles in front of exporters, Muş said that they know that access to finance is one of the most important issues for exporters.

Stating that they had some consultations on facilitating steps at this point, Muş said:

“After all, we established the Export Promotion Fund, which our President gave the good news two weeks ago. With this fund, we will be offering a completely export-oriented financing opportunity that will only serve our exporters. The Export Promotion Fund will provide financing opportunities that will further raise the levels we have achieved in our exports. Thanks to this strong structure that will emerge with the cooperation of many different institutions, we will eliminate the problem of collateral in our exporters' access to finance. I once again wish this new fund, which we call IGF for short, good luck to our exporters. Similarly, we are planning to restructure Eximbank in order to provide financing diversity and improve financing quality for our exporters. This restructuring has been included in the MTP and the law amendment studies on this subject are currently on the agenda of our Parliament. With the restructuring of Eximbank, an institution with a stronger infrastructure and more competitive and qualified service will emerge.”

Pointing out that the strong momentum of the economy in 2021 continues, Muş said that Turkey's 2021 growth forecast was increased from 5,7 percent to 8,4 percent in the latest report of the OECD, and that an important credit rating agency also stated that the 2021 year growth forecast for Turkey has been increased. He reminded that he raised his economic growth forecast to 8,6 percent. Muş said that they don't look at growth only in terms of numbers and they also attach importance to the quality of growth.

Muş stated that the expectations regarding the global economy indicate that the positive momentum in the economic performance of the country and its progress towards the giants will continue, and pointed out that the leading indicators show that this positive momentum in the economy will continue in the coming period.

Inflation global problem

Reminding that factors such as the increase in demand in the global economy, increasing freight prices, problems in container supply and drought have pushed global input prices to high levels, Muş said, “After the record producer price index (PPI) announced in August in the USA, the PPI in the European Union also increased by 12 percent. rose to the highest level in 20 years. Oil prices reached the peak of the last three years and reached the level of 80 dollars. It is clear that in the coming months, Europe will experience a more severe natural gas problem than the oil crisis of the 70s. It is not possible for our country, which is integrated with the world economy, not to be affected by global developments. At this point, the increase in inflation stands before us as a global problem. he said.

Minister Muş stated that they cannot ignore the impact of these developments in the world on the recent price increases in Turkey, and reminded that the Ministry received some complaints about unfair price increases in the market.

“Businesses that do their job honestly are satisfied with the audit”

Noting that the Ministry did not remain indifferent to these applications from citizens and took immediate action, Muş said:

“In this context, we have tightened our routine inspections in our 81 provinces through our provincial trade directorates. By mobilizing all our inspection staff, we have examined the unfair and manipulative price increases that do not match the supply-demand balance, especially in food, vegetables and fruits. In addition, by activating our Guidance and Inspection Presidency, which is affiliated to our Ministry, we started investigations in the vegetable and fruit markets. In the first stage, we appointed inspectors to examine the case of 9 wholesalers in 10 metropolitan cities. In the next process, we started an investigation process by sending inspectors about 5 chain markets. We also took a step in another sector, the automotive industry. We have activated our inspection department regarding those who do not reflect the reductions due to the change in the SCT base to the prices with various irregularities. In this context, we have taken and continue to take the necessary measures against those who engage in market-distorting activities.”

Pointing out that they saw that businesses and tradesmen who obey the laws and do their job honestly, Muş said:

“Because, the inspections we conducted here have never been and will not interfere with free market conditions. In particular, we see that there are some malicious circles trying to present the audits we have carried out recently as 'They are trying to reduce prices with police measures'. Until today, unfair comments 'Why is there no audit?' Some opposition circles, who say, 'Why are you auditing?' making a fuss is of no value to us. Because the concern of these circles is not the vaccine, bread and welfare of our citizens, but their efforts to gain political profit. We have a hard time understanding this, who would be bothered by the public's use of its supervisory authority? The inspections are not an effort to reduce prices with police measures. It is the duty of the public to oversee. To ensure that commercial and economic activities are carried out in accordance with the law. As the Ministry of Commerce, we fulfill our inspection responsibility. This is both our duty and our responsibility. Our Ministry of Agriculture and Forestry will continue to do the necessary work at the point of agricultural production, and our Ministry of Treasury and Finance and the Central Bank in the fight against inflation, as they have done so far.”

“The ratification process of the Paris Climate Agreement will be completed”

Minister Muş stated that the regional distribution of global demand will be witnessed to a serious transformation in the coming years, and that the share of Africa and South Asia from the global income is expected to increase regularly.

Stating that two-thirds of exports are made to countries with an average distance of up to 2 thousand kilometers, Muş said, “With our Far Country Strategy, we take this change in the global economy into account and target markets with a 64% share from the world economy and an average distance of approximately 8 thousand kilometers.” said.

Muş stated that this does not mean moving away from Europe, Turkey's biggest trading partner.

Stating that as the Ministry, they have shaped their foreign trade policy by taking into account the expectations of 20-30 years, Muş said that they will quickly achieve the success shown in the EU market, by collaborating with the private sector in distant markets.

Muş stated that as a result of the change in global supply chains in the post-Kovid-19 period, world-famous brands have shifted their investments from the Far East to Turkey, and continued as follows:

“Recently, we had a very productive meeting with the French Minister of Foreign Trade and Investment on the occasion of the JETCO meeting in Istanbul. During this meeting, I learned that many French companies are preparing to invest in Turkey. Therefore, we are pleased to see that there is a serious investment appetite for Turkey.”

Muş pointed out that Turkey will continue to be a reliable partner for foreign investors and a safe harbor in global supply chains.

Stating that one of the most important agenda items in global trade is climate change and green transformation, which is gaining importance accordingly, Muş said that they are aware of their responsibilities as Turkey in order to leave a more livable world and a sustainable ecosystem to future generations.

Muş stated that the approval process of the Paris Climate Agreement will be completed before the Climate Change Summit to be held in Glasgow in November.

Reminding that they have recently prepared a comprehensive action plan for harmonization with the European Green Agreement, Muş said, “As a country, we are taking responsibility for a more sustainable world and we will continue to do so. Climate change policies have reflections in many areas. A serious structural transformation will be realized in various fields from production to export. Joining hands with our private sector as the government, we will transition to a more competitive economy that is more in line with changing global preferences and priorities.” made its assessment.

Minister Muş stated that they are of the opinion that the countries that cause the most damage to nature should shoulder the heaviest burden, and noted that their demand is to make a fair burden-sharing between the states in the fight against climate change.