Union of Chambers and Commodity Exchanges of Turkey

“Trade Wars, Brexit and the Future of Multilateral Trading System" meeting was held in Feriye, İstanbul, hosted by Hisarcıklıoğlu with the participation of Minister of Commerce Ruhsar Pekcan and ICC Secretary General John Denton. Hisarcıklıoğlu, in his assessment, said Trade Minister Ruhsar Pekcan is directing an intense diplomatic process in order to prevent damage to Turkey in these difficult times.

Making assessments on Brexit, Hisarcıklıoğlu said:

“We don't know exactly how it will be solved, what process will be solved, or what will happen after the separation takes place. The process has turned into a mess. The third prime minister of this process, Boris Johnson, is unclear whether he will be able to resolve the issue, or whether Britain will go to a new election or referendum. As the business world, we are being dragged into even greater risks as uncertainty increases.”

Hisarcıklıoğlu stated that the process of trade wars will also be discussed within the scope of the meeting and the process which started as a commercial duel between the US and China, has gradually become a vortex which sucked in the European Union (EU), NAFTA, Japan and Korea.

- “Free trade means wealth; protectionism, misery”

M. Rifat Hisarcıklıoğlu stated that protectionist economic policies are closely related to all countries and threaten global growth seriously and made the following evaluations:

“In this context, the view of the private sector is clear. Free trade means wealth; protectionism is misery. In the long run, it is not possible for anyone to benefit from protectionism. This is based on three factors. First, we know very well that historically these kinds of trade wars are a de facto conflict, even war. Second, such protectionist policies will make the rich richer, the poor poorer, and the greater the risk of social upheaval as global inequalities increase. In short, there can be no winners to trade wars; we all lose. The private sector should raise its voice against protectionism and trade barriers and strengthen its persuasion efforts.”

Stating that ICC has an important role in this context, Hisarcıklıoğlu emphasized that ICC is the largest business organization representing the global business world before the United Nations and the World Trade Organization, working to increase trade and investments in the world.

“ICC now represents more than 45 million companies and more than 1 billion employees in more than 100 countries. Thus, ICC's guiding influence in international trade is increasing day by day.”

- Minister of Commerce Ruhsar Pekcan

In her speech, Minister of Commerce Ruhsar Pekcan said, “As the government, we regard 2019 as a year of restoring balances. In the coming period will continue to contribute to the growth of our net exports.”

Pekcan, stated that they support Turkey's every multilateral initiative, and will support all the work to be carried out with the ICC.

Stating that Turkey is a dynamic country with certain objectives, Pekcan said:

“Our goal is to Turkey into a high-income, prosperous, developed country. Committed to this goal, we are taking our steps in this direction. We, as the government, see 2019 as a year of stabilization. Conjunctural factors in the global and regional basis, will not change our main goal. As of the first 9 months, the ratio of exports to imports has increased from 71% to 86%.

- “We are facing many protective measures that adversely affect global trade”

Ruhsar Pekcan stated that trade wars have transitioned from rhetoric to acts causing actual damage.

Pekcan said that the protectionist measures taken by the USA, China and the European Union (EU) have put the global economy in a vice and said: “We see that 'trade wars' contradicts the economic conditions and realities of our age. The global economy has created global supply chains. The economies of firms are interconnected.”

Pekcan stated that innovations in information communication technologies and e-commerce take the place of conventional trade in many fields, emphasized that the phenomenon of "trade wars" should be discussed in an age when communication is so advanced.

Pekcan, "Today we live in a trade war, we see that this is a result of more and more countries’ conjunctural policy preferences, but with the future of this reality, we can predict, affecting global trade negatively We are facing many conservationist policies. We have relied on our international competitive strength Turkey, and will continue to do so. We have been in favor of fair competition conditions, the protection and development of the multilateral trade system and will continue to hold this view.”

Pekcan Trade Minister of Turkey, pointing the continued cooperation with EU countries in competition within the Customs Union, said they are in favor of further development of this cooperation.

- John Denton, Secretary General of ICC

ICC Secretary John Denton also expressed his views on Brexit and the trade wars. Denton stated that Brexit is in fact not a cause but a result. “Everything that is happening now is affected by the spirit of time. Time is flowing too fast now.”

Stating that ICC has a specific purpose, Denton said, “Our aim is to open the way for the private sector globally. We are a result oriented organization. Open economy is at our core. The seeds of peace and prosperity were sown in this way.”

Stating that the number of people living in extreme poverty is decreasing, Denton said, “Global poverty is decreasing and prosperity is increasing. This is about paving the way for the private sector.”