High Iraqi demand aids Turkish exporters

Since 2003, Iraq has opened its gates to the world at a gradually increasing pace, and has launched a reconstruction drive to deal with the destruction caused by the war, said Şaban Baß, chairman of the Adana Chamber of Commerce, or ATO.
Development in the country, which obtains significant revenue from oil, is more rapid than in European countries, Baß said, adding that IraqÕs import figures are outpacing those of developed countries. As production is not widespread in Iraq, the country meets a substantial proportion of its needs by importing from other countries. Amid the recent economic crisis the Iraqi market has become almost a cure for exporters, Baß said.
ÒDue to the recent turmoil, EuropeÕs gates have started to close for Turkish businesspeople,Ó he said. ÒOur exports to Europe have declined by approximately 35 to 40 percent.Ó
But Turkey is also emerging as the prime gate for Iraqi imports due the chaos in Iran, the problems in many Arabic countries and the limited production in Iraq itself.
ÒDue to the lack of production in the country, there is deficit and significant demand in every sector,Ó Baß said. ÒIraqi businesspeople and state authorities prefer Turkey for business and imports because of the quality. This is cheering up Turkish exporters, who have faced losses in the European market.Ó
Citing the Turkey-Iraq trade volume data of the Turkish ExportersÕ Assembly, he added: ÒExports totaled $1.2 billion in the first five months of last year, but reached $2.1 billion during the corresponding period this year.
Exporters have revived business with Iraq, which is being reconstructed and imports everything due to its production problems.
The year-end export is expected to reach $5 billion, revealing the importance of the Iraqi market for exporters.Ó
The Iraqi market is deemed a Òbig pie,Ó from which almost every country from China to Indonesia and from Europe to the United States is competing to grab a bigger slice, said Baß. But TurkeyÕs experience gives it a big advantage he said, adding: ÒOur projects outpace world standards. We do not produce unqualified products like China does.Ó
Iraqi people prefer Turkish producers for the quality of their products, Baß said. ÒQuality is an issue for Iraqi people, who, like in many Arabic countries, are fond of luxury due to their oil revenues,Ó he added. ÒThis increases the attraction of Turkish products. Moreover, being at the closest location to this market also creates advantages.Ó