Cooperation between Turkey, US crucial

Speaking at a conference of the Foreign Economic Relations Board, or DEIK, in Istanbul, Nolan said the new United States administration has a major task ahead in repairing its image in the Middle East and Eurasia.

"What are we going to do in Iraq when the troops leave? The issue will not just go away but will still require our attention," he said. "Our involvement will not take place militarily, but economically. Turkey is the regional leader in this part of the world, and has a major opportunity to develop the economy of this part of the world together with the United States."

The Obama administration is likely to move toward a more unified foreign, economic and trade policy in the future. "Economy, foreign politics and trade used to be under separate headings in the U.S.," Nolan said. "But now there is a move toward convergence, which is a good development. This will be beneficial for Turkey."

New tariffs regime

Nolan, who has some 20-years of experience in international commercial transactions, disputes and arbitrations, said that in order to increase its trade volume with the United States, Turkey needs to prepare for a new regime for tariffs and duty-free access, as it will not be included in the generalized system of preference countries in the future.

The system of preferences is a program designed to promote economic growth in developing countries, providing preferential duty-free entry for more than 4,000 products from developing countries to the United States.

Turkey’s participation in the program is due to expire later this year. "The system of preferences is about to be reformed, which is not good news for Turkey as it means it will have to pay tariffs again. É Turkey should start planning a new separate system of trade with the United States sooner rather than later," Nolan said. The current global crisis is leading to increased protectionism and the emergence of so-called economic nationalism, Nolan said. "Countries are taking action to keep jobs at home.

Protectionism is becoming a way of life. For example, Russia recently introduced 28 measures to raise tariffs that try to limit foreign products coming in. É The crisis is leading to a rethink of globalization," he said. But the main concern for the Obama administration is now domestic affairs, Nolan said. "The domestic agenda will be the primary concern of the new administration for at least the next six to eight months. Trade will distinctively be a secondary issue, as no trade policy team has even yet been put in place," Nolan said.