Union of Chambers and Commodity Exchanges of Turkey

Call to increase trade and investment volume with Czech Republic


03.09.2019 / Ankara



A business luncheon was held in honor of Czech Prime Minister Andrej Babiš at the Union of Chambers and Commodity Exchanges of Turkey (TOBB). TOBB President Hisarcıklıoğlu, noting that they even wanted to expand trade relations with the Czech Republic, said, “I believe that we can conduct increased trade and investment with the Czech Republic in the coming period. Presently we can increase our 3.7 billion USD trade volume easily to 5 billion USD. We await more Czech companies to Turkey in order to increase investments. We are ready to work together for more Turkish entrepreneurs to go to the Czech Republic, which has the best business and investment environment in Central Europe.”​

The opening speeches of the dinner held at the TOBB Reception Hall were delivered by the Prime Minister of the Czech Republic Andrej Babiš, the Minister of Commerce and Industry of the Czech Republic Karel Havlicek, Trade Minister Ruhsar Pekcan, the President of the Czech Republic Chamber of Commerce Vladimir Dlouhy and TOBB President M. Rifat Hisarcıklıoğlu who hosted the event.

During the dinner attended by Turkish and Czech business people, trade and investment relations between Turkey and the Czech Republic were discussed.

In his speech at the opening of the business luncheon, TOBB President Hisarcıklıoğlu reminded that TOBB is the umbrella organization of business in Turkey, “Small, medium and large companies, both domestic and foreign, are all our members. We have 1.5 million members. We represent all sectors of the economy such as trade, industry, agriculture, logistics, contracting and tourism.” Hisarcıklıoğlu, speaking in regards to TOBB's structure and Turkish-Czech trade relations, said, “We have a very extensive network abroad. We take part in the management of all business organizations in Europe, Asia-Pacific and Islamic regions. I am Vice-President of Eurochambers, the largest business organization in Europe, and the Islamic Chamber of Commerce, Industry and Agriculture. We work together with the Chamber of the Czech Republic on the bilateral level and within the Eurochambers.

My friend Vlademir, President of the Chamber of Commerce of the Czech Republic, makes significant contributions to the work of EUROCHAMBRES. He successfully chairs the EUROCHAMBRES Future of Europe Workgroup. We wish to further expand our business relations with the Czech Republic. The fact that we are here today with a large business delegation is a sign of this. The Turkish and Czech peoples are already two people who have always regarded each other positively.

We know the Czech Republic through its legendary city, Prague, which has always been a cultural, political center in Central Europe with a history of more than a thousand years, through Antonin Dvorak, Franz Kafka, Milan Kundera, Jan Neruda, Vaclav Havel and Milos Forman.

The Chair of Turcology, which began its research at Charles University in Prague in the 2009-2010 academic year, the oldest university in Central Europe, is one of our important common denominators.”

- Thanks to the Czech Republic

Stated that they have always appreciated the support of the Czech Republic to Turkey, Hisarcıklıoğlu said, “In the past, the Czech Republic has always supported our country’s EU process. Three years ago, on July 15, 2016, in the FETÖ coup against our democracy, the coup traitors attacked the Turkish Grand National Assembly. As a result, all the chandeliers made of Bohemian Crystals in the hall of honor were broken. Pavel Kafka, Ambassador of the Czech Republic to Ankara, visited the Turkish Grand National Assembly to support us. Seeing that the chandeliers were destroyed, he contacted his government. The same crystal chandeliers were rebuilt and presented as a gift to our Assembly. I would like to express my gratitude to Ambassador Pavel Kafka and the Government of the Czech Republic for this beautiful gesture of great importance for us during this difficult time.”

- “We can increase trade volume to 5 billion USD in a short time”

Emphasizing his belief that they can increase trade and investment with the Czech Republic in the upcoming period, TOBB President pointed out that Czech Prime Minister Andrej Babiš is a successful entrepreneur and investor who knows the business world. Hisarcıklıoğlu stated that Babiš is aware of their concerns and problems. “Presently we can increase our 3.7 billion USD trade volume easily to 5 billion USD. Czech investments in Turkey have almost reached 700 million USD. We await more Czech companies to Turkey in order to increase investments. Our investments in the Czech Republic are only 20 million USD. However, last year, the direct investments made by Turkish companies abroad reached 4 billion USD. We are ready to work together for more Turkish entrepreneurs to go to the Czech Republic, which has the best business and investment environment in Central Europe.” Hisarcıklıoğlu pointed out that Turkish contractors undertook 261 projects worth 19 billion USD abroad last year, pointing out that there are power plants, roads, tunnels and bridges among them.

- Quota problems of transporters

TOBB President Hisarcıklıoğlu emphasized that the Czech Republic is an important transit country in the transport of Turkish goods to EU countries and especially to Germany. “However we are only able to acquire a 10,000 annual transportation quota from the Czech Republic. This creates a bottleneck for our transit transportation. Slovakia, on a similar route, does not impose any restrictions on transit. Similarly, we wish that no restrictions be imposed on transports that will pass through the Czech Republic. We ask the Prime Minister and his delegation to help us with this. Czech Republic has always supported Turkey in its dealings with the European Union. Therefore, on behalf of the business community, I would like to thank all the Czech governments, especially Prime Minister Babiş. Turkey-EU relations needs more support from the Czech Republic. In particular, we look forward to the support of the Czech Government and the business community in the modernization of the Customs Union and visa liberalization.”

- Czech Republic Prime Minister Andrej Babiš

Czech Republic Prime Minister Andrej Babiš said in his speech, “We have a long-term investment plan. We want to complete the highway network and invest in high-speed trains. I am sure that we can cooperate on these issues."

Babiš, noting that Czech business people have accompanied him on his Turkey visit, said that there are promising areas of cooperation between the two countries.

Noting that both countries are not satisfied with the current trade volume, Babiš said that the Czech Republic exports 87% of the goods it produces to the European Union, but that the government supports entrepreneurs in opening up to new markets.

Babiš, stating that Czech companies are carrying out successful projects in Turkey such as smart cities, mining, energy and continued:

“The Czech Republic is a medium-sized country in the EU, but we have a long and successful tradition of industrial production. We are one of the countries where industry has the largest share in GDP. Czech Republic produces high quality products and has expert and qualified personnel. We are introducing a new innovation strategy and believe that the Czech Republic is the country of the future. We also have a long-term investment plan. We want to complete the highway network and invest in high-speed trains. I'm sure we can cooperate on these issues.”

Babiš also said that they will relay the Turkish demands in regards to transit transportation with the Minister of Transport.

- Minister of Commerce Ruhsar Pekcan

Trade Minister Ruhsar Pekcan said, “About 600 million USD of investment have been made from the Czech Republic to Turkey. We want to continue to increase these investments.”

Pekcan, in her speech at the business luncheon held at the Union of Chambers and Commodity Exchanges of Turkey (TOBB) attended by Czech Prime Minister Andrej Babiš with Czech Republic Commerce and Industry Minister Karel Havlicek, stated that the close and cooperative contact between the two countries has been ongoing on multiple levels for quite some time and that bilateral relations would continue to strengthen.

Reporting that, prior to the business luncheon, they held a meeting with Babiš, Havlicek and the delegation accompanying them, Pekcan stated that they’ve discussed increasing the bilateral trade volume between the two countries and diversification of trade relations.

Pekcan, noting that the Czech Republic focuses on the manufacture of high value-added, high-tech products like Turkey and said:

“Czech Republic has invested approximately 600 million USD in Turkey. We want to continue to increase these investments. We would be happy to see Turkish and Czech joint investment projects in tech investments in our free zones, which we are converting into technology greenhouses, as everywhere else in Turkey.”

Emphasized the need for the removal of trade barriers in order to increase the trade volume between the Czech Republic and Turkey, Pekcan stated that they are discussing many issues such as the steel quotas for Turkey and the modernization of the Customs Union.

- Minister of Trade and Industry of the Czech Republic Karel Havlicek

Czech Republic Trade and Industry Minister Karel Havlicek also stated that they appreciate Turkey's industrial and innovative development experience in the field of economics particularly in the last 10 years, that they would continue their cooperation.

Noting new cooperation opportunities between Turkey Havlicek said, “Cooperation can be improved in the energy, steel and pharmaceutical sectors; we understand your demands and needs. All positions should be analyzed and discussed.”

Havlicek stated that they will make the Czech Republic the country of the future and that they have invested in areas such as smart infrastructure, R&D and startups.

- Vladimir Dlouhy, President of the Chamber of Commerce of the Czech Republic

Czech Republic Chamber of Commerce President Vladimir Dlouhy stated that there are many avenues of cooperation open to improvement between Turkey and the Czech Republic ranging from energy to electricity, railway and highway construction to drug production and that they are in favor of the development of bilateral trade.

Stating that the basis of trade relations with Turkey is based on the establishment of the Republic, Dlouhy said, “There has been incredible development since I first visited Turkey in 1991 and then in 1993. Turkey is ahead of us in some parts of industrialization. We expect Turkish contractors to contribute to the planned highway and infrastructure projects in the new period.”

Dlouhy, also pointing to the importance of Czech Republic and Turkey cooperation at the EU level, stressed that the EU needs to leave more doors open in its trade relations with Turkey.

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