Industry and Technology Minister Kacır: We see Türkiye as one of the central countries of global trade

The 15th edition of the International Economy Summit continues on its second day. The summit, held under the theme ‘The Great Transformation: The Compass for Transition to a Resilient and Sustainable Global System’, featured Kacır, who stated; “We observe that profound transformations are taking place in both the economic and political order worldwide. Many elements that have defined the global system for the past 80 years appear likely to lose their validity in the coming period. Globalization, free trade, and liberal economic approaches are giving way to protectionism, on-site production, localization, friend-shoring, and ultimately a new order. The background to this lies in the shifting balances of the global economy over the last 25 years. If we look back 25 years, China’s weight in the global economy was much more modest compared to today. However, by achieving an average annual growth of 8,5 percent, China has now surpassed the European Union economy on its own. The gap between the European Union and the United States has also widened, as the EU has grown by only 1,4 percent annually during this period. While 25 years ago the EU economy was only 17 percent smaller than the US economy, the gap has now widened to around 30 percent. These shifting balances have brought about new global searches.”

 

Kacır emphasized that protectionism became a trend worldwide, especially during the pandemic; “We see its first and fastest effects in trade protectionism. Although the pandemic is over, this approach has not been abandoned. Today, the entire world is discussing more localized production, customs barriers, and technical measures to restrict imports. Regionally, Asia’s share in global trade is rising, while Europe’s and North America’s shares are declining significantly. This shows that the center of gravity of the global economy is shifting much more from West to East. In this context, we see Türkiye as one of the central countries of global trade. The most important condition for seizing these opportunities is Türkiye’s journey toward becoming a country that can develop, produce, and competitively export critical technologies with its own capabilities—what we call the National Technology Initiative. Over the past 25 years, Türkiye has succeeded in becoming a country that crowns its production capabilities with research, development, and innovation, and develops more advanced technological products with its own means.”

 

‘TÜRKİYE HAS BECOME A COUNTRY THAT DEVELOPS WITH ITS OWN CAPABILITIES’

Kacır noted that Türkiye has become one of Europe’s and the world’s leading automotive production centers; “We have increased our share in global trade from 0,55 percent to 1,7 percent-doubling it-and our share in global manufacturing value added from 0,69 percent to 1,38 percent. In 2002, Türkiye could produce only 41 billion dollars in manufacturing value added. Last year, Turkish industry generated 246 billion dollars in value added. If we had merely kept pace with the world, we would have reached only 123 billion dollars. Thanks to our stronger performance, we doubled that figure. Today, Türkiye has competitive production and export capacity in advanced technology sectors, with 41,5 billion dollars in automotive exports, 32 billion dollars in chemicals, and 29 billion dollars in machinery. Turkish companies hold two-thirds of the global military unmanned aerial vehicle market. Türkiye is Europe’s largest producer of solar panels, white goods, and commercial vehicles. Compared to 2002, production across all major industries has multiplied several times. While 7 million white goods were produced in 2002, this figure reached 29 million last year, making Türkiye Europe’s number one and the world’s second-largest producer. Automotive production rose from 350,000 units in 2002 to 1,5 million vehicles last year. Türkiye has become one of the most important automotive production centers in Europe and the world.”

 

He added that Türkiye’s industrial production is now 31 percent higher than pre-pandemic levels, unlike many European countries; “We increased our exports from 36 billion dollars to 273,5 billion

dollars—an eightfold rise. More importantly, exports of medium-high and high-technology products increased even more, reaching 112 billion dollars last year.”

 

‘WE HAVE SIGNIFICANTLY EXPANDED OUR EXPORT VOLUME’

 

Kacır emphasized that Türkiye has rapidly strengthened its competitiveness across a broad geography extending from China to Europe; “In 2002, we allocated only 0,5 percent of our national income to R&D; today, this has risen to 1,5 percent. R&D spending has reached 20 billion dollars, with the private sector contributing nearly 14 billion dollars annually. The number of R&D personnel has increased from 29,000 to 311,000. While there were only 2 technoparks and 56 startups 23 years ago, today there are 114 technoparks hosting over 12,800 technology enterprises.”

 

Kacır also highlighted geopolitical challenges, including conflicts in the region, and stressed that Türkiye has prioritized defense industry development with a focus on domestic and original production.

 

SCHMIDT: WE SEE TARIFFS BEING USED AS AN ARBITRARY WEAPON

 

Former Danish Prime Minister Helle Thorning-Schmidt spoke at the opening of the second day of the summit. Schmidt stated that a fundamental transformation is taking place in the global trade order, noting that tariffs are increasingly being used as political and strategic tools.

 

Thorning-Schmidt emphasized that high customs tariffs have recently become not only an economic instrument but also a geopolitical pressure tool. She said, “We see tariffs being used as an arbitrary weapon. Of course, as a former Prime Minister of Denmark, I have seen this very clearly. Especially when Donald Trump wanted Greenland, he threatened to increase tariffs on countries supporting Denmark. This is a very typical example of how tariffs are used as a negotiation tool.”

 

Touching on developments in the Middle East, Schmidt noted that the recent ceasefire process with Iran is extremely fragile and expressed caution regarding the prospects for lasting peace. Thorning-Schmidt also stated that Israel’s unpredictable policies are increasing instability.

 

She stressed that conflicts do not only have political and military consequences but also create deep humanitarian and economic impacts, adding that wars have devastating effects on civilians and directly affect the lives of millions.

 

“TÜRKİYE IS ONE OF THE KEY ACTORS IN BUILDING THE NEW WORLD ORDER”

 

Highlighting Türkiye’s strategic position in the transformation of the global system, Thorning-Schmidt said; “When we look at the current environment, we see both challenges and opportunities. We can clearly say that Türkiye holds a very special position in this regard. Its critical geographical and geopolitical location, serving as a bridge between Europe, the Middle East, and Asia, makes Türkiye an important hub and a corridor between these regions. In addition to enabling production, energy, and trade connectivity, one of Türkiye’s most important functions is undertaking significant responsibilities for maintaining peace in the region as a NATO member. We have seen how critical this role is in Gulf and Middle Eastern crises, and we have observed it during the discussions. I hope that Türkiye will continue to maintain this position and importance. Because being a NATO member and acting as a bridge between regions makes its steps in this area even more significant.”

 

Stating that Türkiye will continue to serve as a bridge between Europe, the Middle East, and Gulf countries, Schmidt concluded her remarks as follows:

 

“From a systemic perspective, a new world system, a new world order is being built. There is not yet a clear framework for what kind of order this will be. However, it is evident that this transformation process has begun. In this process, we must act together. We cannot ignore the cooperation between the European Union, Türkiye, and NATO. Türkiye’s role as a bridge between Europe, the 

Middle East, and Gulf countries will always remain important. Considering all these factors, we cannot deny that Türkiye plays a key role.”

 

SARPYENER: A VISION OF A NEXT-GENERATION INVESTMENT BANK

 

Emir Münir Sarpyener, CEO of Tera Yatırım, stated in his opening speech on the second day of the summit that UEZ is one of the most powerful meeting points of Türkiye’s business world. Sarpyener said; “The ideas generated here do not remain within the hall. They shape company strategies, sectoral directions, and national policies. Being the main sponsor of this summit is a great honor for us as Tera. Because we are a group that believes in the strength of Türkiye’s economy and transforms this belief into investment. Tera is a finance-based investment platform scaled with technology. It is an ecosystem consisting of 3 holdings, 25 companies, 5 publicly traded firms, and approximately 1,600 people. We create value across a wide range of activities, from brokerage services to investment banking, portfolio management to factoring, insurance to technology, and extending to agriculture and real estate. In terms of figures, the assets we manage have exceeded 5 billion dollars. We serve nearly 200,000 investors. In IPOs, where we support companies by connecting them with capital markets, we have surpassed half a billion dollars in volume, placing us among the top three in this field. At the beginning of this year, we completed 4 IPOs worth 7,2 billion lira in 22 days, reaching 1,2 million individual investors. With our vision of a next-generation investment bank expanding from Türkiye to the world, Tera Bank’s total assets increased more than tenfold in just one year, reaching 28 billion lira.”

“TÜRKİYE HAS THE POWER TO ATTRACT GLOBAL CAPITAL”

Emir Münir Sarpyener stated that the world is going through one of the most severe geopolitical tests of the last forty years:

“The Iran war changed the equations of the global economy overnight. Airline routes shifted, logistics costs surged, and the spike in fertilizer prices threatens global agriculture. Every economy, from Europe to Asia, from Africa to America, is feeling this wave. Türkiye is among the few countries that can establish direct dialogue with both the United States and Iran. It is actively conducting mediation in ceasefire negotiations. The economic impact of this diplomatic weight is significant. Gulf capital is seeking new safe havens, and we know very well that Türkiye has the political will, infrastructure, human resources, and institutional framework to attract this capital. In post-war reconstruction processes, Türkiye’s capacity will stand out in sectors ranging from cement to steel, logistics to energy. As the business community, we know our responsibility in this process. We will continue to produce, invest, and tell Türkiye’s story to the world.”