Historic opportunity to collaborate with the Gulf
Developments in the recent years have resulted in Gulf countries reviewing their relationship with European countries and the U.S.
In the beginning of the 2000s, few people would have believed that Europe and the U.S. would experience an out-of-control rise of Islamophobia in just 10 years, while extreme far-right political formations would seriously increase their votes. Unfortunately, these two fundamental political and social fractures have accelerated traumas that deeply affect world politics and the economy. Additionally, in the middle of all this, it should be stated that we have entered a process where we can seize opportunities for cooperation between first and second-generation neighboring countries. Turkey's inclusive role in its region puts forward new opportunities for collaboration in the economy and trade diplomacy fields with our first and second generation neighbor countries to the north, south, west, and east.
Developments in the last four or five years have resulted in Gulf countries reviewing their relationship with European countries and the U.S. Businessmen from Gulf countries face serious risks and problems regarding investments in the U.S. and Europe and asset acquisitions in these regions. It is getting increasingly harder for them to be accepted in these countries where they have invested billions of dollars to get civilized treatment and protect their legal rights regarding their investments. Turkey, on the other hand, as the rising star of the region, is positioned as a "safe harbor" for all the above in relation to Gulf countries' investments. This is why, just as the Russians are aware of the fact that a "yes" in the April 16 referendum means that Turkey's inclusive role will be clinched, investors from Gulf countries are sure that a "yes" in the referendum will strengthen Turkey's role as a "safe harbor."
Kuwait Emir al-Sabah's visit to Turkey following President Recep Tayyip Erdoğan's tour of the Gulf countries, including Bahrain, Saudi Arabia and Qatar, shows that we are on the edge of a historic opportunity to implement joint projects of over $100 billion between Gulf countries and Turkey, which inspires its region and shows strong leadership. The biggest hope for investors from Gulf countries is that this new process will enable them to stay for longer periods in Turkey where they are very happy to invest and live. In the short term, we will experience new cooperation and investment moves in various sectors, from energy to logistics, from transportation to tourism, from health to finance.
‘Trump' shadow over G20 AgendaAfter Turkey's successful G20 Term Presidency in 2015, discussions and disagreements in international political economy since China's term presidency in 2016 have evolved to hinder G20 meetings' detailed presence in the international media. As a matter of fact, it is difficult to say that the G20 meetings hosted by Germany are once again closely followed by the international media or are creating an agenda in 2017, when European countries are carrying out critical elections. Above all, U.S. President Donald Trump's determination to revise all international agreements and China's positioning as the defender of "globalization" and "free trade" are constraining G20 nations from creating a common agenda.
During the meeting in Baden-Baden, Germany, that brought together the finance and treasury ministers with presidents of central banks from G20 countries, naturally, the hot topic was the future of free trade deals. While some countries demanded a decision to continue free trade, the U.S. stated that it is not open to such a statement. U.S. Secretary of the Treasury Steven Munchin asserted that their goal is not to start a trade war but to revise some agreements where they believe there are disparities against the U.S., following reasonable procedures. On the other hand, OECD Secretary-General Angel Gurria, who continuously states that he is against protectionist measures in global trade, has emphasized that trade is the most important source of growth.
In addition to monetary policy, the stability of the financial world, and the conditions of competition, climate change was also addressed in the meeting. Trump's opposition to the Paris Agreement on climate change signed during the Obama period and to free trade deals is making it difficult for parties to settle on common terms. Because of the U.S.'s objection, an agreement could not be achieved on a joint statement on climate change after the finance ministers' meeting. The Trump administration, defending protectionist policies, believes the climate change agreement will create an obstacle to economic growth. The upcoming months can deepen disagreements in the G20.
Developments in the last four or five years have resulted in Gulf countries reviewing their relationship with European countries and the U.S. Businessmen from Gulf countries face serious risks and problems regarding investments in the U.S. and Europe and asset acquisitions in these regions. It is getting increasingly harder for them to be accepted in these countries where they have invested billions of dollars to get civilized treatment and protect their legal rights regarding their investments. Turkey, on the other hand, as the rising star of the region, is positioned as a "safe harbor" for all the above in relation to Gulf countries' investments. This is why, just as the Russians are aware of the fact that a "yes" in the April 16 referendum means that Turkey's inclusive role will be clinched, investors from Gulf countries are sure that a "yes" in the referendum will strengthen Turkey's role as a "safe harbor."
Kuwait Emir al-Sabah's visit to Turkey following President Recep Tayyip Erdoğan's tour of the Gulf countries, including Bahrain, Saudi Arabia and Qatar, shows that we are on the edge of a historic opportunity to implement joint projects of over $100 billion between Gulf countries and Turkey, which inspires its region and shows strong leadership. The biggest hope for investors from Gulf countries is that this new process will enable them to stay for longer periods in Turkey where they are very happy to invest and live. In the short term, we will experience new cooperation and investment moves in various sectors, from energy to logistics, from transportation to tourism, from health to finance.
‘Trump' shadow over G20 AgendaAfter Turkey's successful G20 Term Presidency in 2015, discussions and disagreements in international political economy since China's term presidency in 2016 have evolved to hinder G20 meetings' detailed presence in the international media. As a matter of fact, it is difficult to say that the G20 meetings hosted by Germany are once again closely followed by the international media or are creating an agenda in 2017, when European countries are carrying out critical elections. Above all, U.S. President Donald Trump's determination to revise all international agreements and China's positioning as the defender of "globalization" and "free trade" are constraining G20 nations from creating a common agenda.
During the meeting in Baden-Baden, Germany, that brought together the finance and treasury ministers with presidents of central banks from G20 countries, naturally, the hot topic was the future of free trade deals. While some countries demanded a decision to continue free trade, the U.S. stated that it is not open to such a statement. U.S. Secretary of the Treasury Steven Munchin asserted that their goal is not to start a trade war but to revise some agreements where they believe there are disparities against the U.S., following reasonable procedures. On the other hand, OECD Secretary-General Angel Gurria, who continuously states that he is against protectionist measures in global trade, has emphasized that trade is the most important source of growth.
In addition to monetary policy, the stability of the financial world, and the conditions of competition, climate change was also addressed in the meeting. Trump's opposition to the Paris Agreement on climate change signed during the Obama period and to free trade deals is making it difficult for parties to settle on common terms. Because of the U.S.'s objection, an agreement could not be achieved on a joint statement on climate change after the finance ministers' meeting. The Trump administration, defending protectionist policies, believes the climate change agreement will create an obstacle to economic growth. The upcoming months can deepen disagreements in the G20.