On 3 January 2013, H.E. Mr. Rathakit Manathat, Ambassador of Thailand to the Republic of Turkey, had a bilateral meeting with H.E. Mr. Mustafa Sever, Deputy Minister of Economy of the Republic of Turkey, at the Ministry of Economy, to discuss bilateral economic relations. The two agreed on importance of high level visits to boost trade and investment ties.

Both H.E. the Ambassador and the H.E. the Deputy Minister agreed that Thailand and Turkey are both fast growing economies, contributing to economic stability to their regions and the world. Both serve as gateways to their respective regions.

However, the current bilateral trade and investment volume is under their real potential, both agreed. H.E. the Ambassador added that lack of communication and limited exchange of information is the core reason to the unsatisfactory business relations.

Therefore, H.E. the Ambassador stressed the importance of exchange of high level visits between Thailand and Turkey. “Thailand wishes for more exchange of high level visits to keep the economic momentum”, added H.E. the Ambassador.

It is expected that this year H.E. Ms. Yingluck Shinawatra, Prime Minister of Thailand will pay an official visit to the Republic of Turkey in the second half of the year, H.E. the Ambassador told H.E. Mr. Sever. He further added that H.E. Mr. Ahmet Davutoğlu, Turkish Foreign Minister, wishes to visit Thailand while H.E. Mr. Nattawut Saikuar, Deputy Minister of Commerce of Thailand, agreed in principle to visit Turkey.

H.E. Ambassador Manathat also took the opportunity to extend an invitation to  H.E. Mr. Zafer Çağlayan, Minister of Economy, and H.E. Mr. Sever to visit Thailand with a view to foster closer economic cooperation.

Moreover, both also agreed the urgency of holding the 4^th Joint Economic Commission (JC) as soon as possible. The last JC meeting was in 2003.

Exchange of business people and attending fairs in both countries can also reinforce the economic ties. H.E. the Ambassador emphasized that the existing mechanism of the Thai-Turkish and Turkish-Thai Business Councils already paved the solid way for closer business relations.

In 2012, trade volume between Thailand and Turkey accounted only for 1.4 billion dollars, in which 1.2 million dollars come from Thailand’s export to Turkey. H.E. the Deputy Minister of Commerce stressed the need for more balanced trade. H.E. the Ambassador agreed while pointing out that boosting trade volume should be focused. Certainly, the trade gap cannot be ignored but the gap should be looked at carefully since the gap could originate from Turkey’s import of intermediate goods or that of re-export purposed, he added.

Both also shared a similar view on vast investment opportunity both in Thailand and Turkey. Turkey can benefit from Thailand’s reduction of corporate income tax from 30 percent to 23 percent last year and further cut to 20 percent this year. On the other hand, Thailand can enjoy Turkey’s privilege of preferential treatment in the European market under the Customs Union Agreement.

Construction sector, Turkey as the second biggest in the world after China, offers a huge opportunity.

At present, CP, producing animal feed and chicken products, is the only Thai fully owned company in Turkey with the accumulated investment value of 25 million USD. Turkish investment in Turkey accounts for 22 million USD. Apart from the KordSA Global Company, a joint venture between Turkey and Indonesia in Thailand producing nylon and rubber cords for tires, most enterprises are small-medium scale investment in jewelry, tourism and food industries.

Moreover, H.E. the Ambassador raised the issue of anti-dumping (AD) measures Turkey enforces on 8 Thai products. He requested for the Turkish side’s assistance in providing an unofficial translation of AD documents to facilitate affected Thai entrepreneurs in the AD investigation process. He believes that most of affected entrepreneurs are innocent and that the technical nature of the AD investigation becomes obstacles for their cooperation with the Turkish authorities. He also thanked H.E. the Deputy Minister and the Ministry for their eagerness to work with the Royal Thai Embassy to solve this issue.

The Royal Thai Embassy attaches great importance to the AD issue and is seriously looking into forging cooperation with the Thai and Turkish relevant agencies, both public  and private sector, to reduce AD impacts on Thai entrepreneurs.

Later this week, the Embassy will once again meet with senior officials of the Ministry of Economy of Turkey in an attempt to forge cooperation with the Turkish side and seek the way to reduce negative economic impacts, both on current and future AD cases, if any.

Possibility of opening a Free Trade Agreement (FTA) and the issue on Thailand’s requirement on import license of cut marble was also discussed. H.E. the Ambassador said Thailand will consider the matters in a positive manner, and the Embassy will keep the Ministry informed of any progress made.