The FINANCIAL — “The territorial integrity and sovereignty of Ukraine should be preserved and all problems should be solved through dialogue in line with international law. If we obey these principles then a solution can be achieved. If not, the problem could become of even greater concern and have a greater negative impact on the whole region. At this point in time, when we believe a diplomatic solution respecting Ukraine’s territorial integrity is still possible, the entire international community is at a critical crossroads,” newly appointed Ambassador of Turkey to Georgia, H.E. Zeki Levent Gümrükçü, told The FINANCIAL in an interview last week.
Mr. Zeki Levent Gümrükçü said that the developments in Ukraine are very fluid and it is difficult to make precise conclusions at this point in time. “We are following it very closely, and we have very clear principles as to how we approach this issue,” he said. While some political issues during the interview were avoided, the Ambassador did speak about the main challenges that Turkey and Georgia find in the region.
Q. What is the main threat facing our region?
A. I do not want to make a detailed assessment of the current security environment. But we all see that our region is going through a turbulent process where the main principles and rules of the international system are being tested. Particularly given what is happening in Ukraine, the inviolable principle of territorial integrity and political sovereignty of independent nations is in jeopardy. We have seen similar developments in 2008 in Georgia. And our main challenge now is to make sure that, in the 21st century, every state, without an exception, abide by international law and not attempt to take justice in their own hands. If we cannot establish an international order based on this fundamental principle, we will all suffer the consequences.
I joined the Foreign Service in 1990. I started at the cabinet of minister, as deputy chief of cabinet, which was very educational for a young diplomat at that time. I served three consecutive times at the policy planning departments. Lastly, I was the spokesperson for our Foreign Ministry. In terms of my external assignments, I started at Washington DC for three years and then rotated to Tehran. The first five years of my diplomatic experience was very teaching. Since then, I worked in our mission to NATO for four years, as Turkey’s political committee representative, and then four years in New York, in our mission to the UN first as a political counsellor and then as the political coordinator of our team in the security council.
Q. You were appointed to your post in Georgia almost two months ago. What have you found the most difficult challenge to be so far in Georgia?
A. The main challenge is that our relations are so excellent that as a new ambassador I find it rather challenging to further improve them. That said and joking aside, I know that there is still a big potential and I will do my best in order to realize that. Over the years, we have come a long way in improving our relations, in diversifying and deepening them. I am very glad that as two neighbours we have such a good relationship. And this is not only dependent on our governments. It is mainly because we have very strong people-to-people ties going back in history. Georgian and Turkish people share the same social and cultural fabric so that is why I think the two countries are enjoying such a good level of relations. My challenge is to take this even further and to realize the full potential of our countries. And I intend to do my best in this regard.
Another challenge is that our region is going through a turbulent time both geopolitically and geo-economically. This is a particular challenge for our countries. To address the situation in the best possible way and help evolve the geopolitical situation in a positive direction, we should strengthen our stability, increase our cooperation and offer a good example to the region at large.
In this regard, Turkish-Georgian relations are of a strategic nature, not just because of our bilateral interests, but also in a larger regional sense. Particularly what we have achieved between Turkey, Georgia and Azerbaijan — within the framework of the trilateral cooperation on areas like energy, transportation, economy and others — is truly strategic. These three countries are providing a bridge between Europe and Asia. For instance, what we have achieved with Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum oil and natural gas pipelines was quite historical. Currently, we are taking it even further with TANAP (Trans Anatolian Natural Gas Pipeline). Through this pipeline we will carry a very large gas reserve via Georgia and Turkey to Europe. That will thus provide an important new route for energy security.
The Baku-Tbilisi-Kars railway is yet another historical project. It the missing link of the modern Silk (Rail) Road. With the completion of this link, there will be an uninterrupted railway from Beijing to London. It is thus going to be an important contribution to Eurasian trade and commerce while also helping to mobilize capital, human beings and ideas across continents.
So the three countries show that cooperation is better than confrontation. Now, how to expand and diversify this positive regional perspective while making it a best practice for our region and beyond is yet another common challenge that I see for our countries. I am confident that with the help of our Georgian and Azeri counterparts we will be able to achieve our common goals and ideals.
“Turkey stands by Georgia with respect to its security and stability.”
Q. Georgian-Turkish political and economic relations have developed rapidly from the very first years of Georgia’s independence. Right now Turkey is the number one exporter in Georgia and the second largest importer of Georgian products. What is the share of Georgian export of Turkish goods worldwide?
A. Traditionally, EU countries make up the largest part of Turkey’s export. Russia is also a very important trading partner for Turkey. The US is also within the top ten. In particular, the Customs Union that we have with the EU since 1995, helped us not only to diversify but also increase our trade relations with the EU. Currently, 45% of our trade is with the EU countries.
That said, the share of neighbouring countries in our trade is also constantly increasing. For instance, in 2002 just 8% of our trade volume was made up by our neighbouring countries, now their share reaches 30%. We are dedicated to increasing trade with our neighbours and Georgia is no exception.
The total trade volume between Turkey and Georgia has amounted to USD 1.5 billion in 2013. A great deal of that volume, USD 1.3 billion, is our export to Georgia. Unfortunately we are still importing a small share from Georgia. Georgia makes up only 1% of Turkey’s export. But we are committed to increase that figure in both ways.
In other words, we want to increase not only the quantity of our trade volume but also the share of Georgia in terms of our country’s import. Georgia has lots of good export products and thus there will be a special focus on increasing the export of Georgian products to Turkey.
Q. Have Turkish businessmen expressed worry about a possible repeat of the Ukrainian scenario in Georgia in the run up to signing the AA?
A. I have not heard any specific worries from the Turkish business community that the Ukrainian scenario could be repeated in Georgia. They trust and believe in Georgia’s stability, peace and security. It should also be noted that Turkey stands by the Georgian people and government vis-a-vis its security and stability.
So there might always be parallels that could be drawn but I think that every country should be assessed on its own merits. In this regard, Georgia has come a long way over the recent years in terms of strengthening its stability and security based on its relations with its neighbours and with the Western countries. Georgia is also making important strides in consolidating its democracy. Therefore, we do not have concerns for Georgia’s future; on the contrary we believe in Georgia’s path to development, peace and prosperity.
On the other hand, for Turkish business community, a business and investment friendly environment is more important than anything else and they assess the possibilities of trade and investment in Georgia mainly on this basis.
Q. So, there are no external risks for Georgia?
A. Georgia is very wise in its foreign policy. What they are doing now is very constructive and very balanced. They are not shying away from their aspirations to integrate with Euro Atlantic institutions and they are really making important strides in that regard. But they are also trying to maintain a dialogue with Russia as well, despite what happened in 2008. They are trying to solve the issues through dialogue and cooperation not only in Geneva, but in other parallel tracks as well, since they started a new process of dialogue and consultations with Russia on commercial, cultural and social matters.
In a nutshell, we very much appreciate Georgia’s foreign policy vis-à-vis the West, vis-à-vis its neighbours and vis-à-vis Russia. Georgia’s foreign policy of peace and cooperation is an asset for our region. In this regard, it also carries similar traits with the Turkish foreign policy. Indeed, peace, stability, cooperation and development is exactly what we seek in our region. In fact, as two countries in an otherwise volatile region we have no other viable option than trying to solve problems, rather than freeze them and create a win-win mentality rather than a zero-sum-game understanding.
Q. Georgia is on its way to signing an Association Agreement with the EU which will bring many trade benefits and regulations into force. Will it increase Turkish investors’ interest in Georgia?
A. I am sure that signing the AA and accepting the DCFTA will open up new opportunities for Turkish companies and the business community to invest in Georgia. We are working on it, as to what sort of opportunities that this development might present for the Turkish business community and how the Turkish business community can be directed toward the necessary sectors in Georgia, to produce here and thus benefit from the DCFTA between Georgia and the EU. Since my arrival in Tbilisi one and a half month ago, I have been discussing this issue with all my counterparts.
But even as of now, Turkey is the third largest investor country in Georgia. Moreover, if we take out the single sector investments, Turkey becomes the main investor in Georgia present in almost all sectors. Indeed, you see Turkish investments not only in energy, transportation and construction, but also in tourism, health and others as well. And in the future they will increase even more.
Q. With over USD 75 million in 2013 Turkey is the third largest investor country in Georgia. Please can you underline the main advantages of Georgia that encourage Turkish investor interest in our country?
A. We know each other very well. We share the same understanding on many issues. In terms of people to people, business to business contact, we do not have any social or cultural barriers. That might sound very simplistic but it is very important. When you invest in a foreign country it usually takes time for such social barriers to be overcome and business to flourish. However, our two countries do not have such a barrier.
We do not have a geographical barrier either. We are neighbours and distance is no problem. But aside from our proximity, we do not have any visa or even passport requirements either. How many countries have that? Logistically this is very important. Moreover, through land, air and sea, travel between our countries is extremely easy. Turkish Airlines alone has four daily flights between İstanbul and Tbilisi. With private companies, the total of daily flights reaches to six.
The third advantage is that over time we have created such a good level of business relations that the Georgian Government knows what the Turkish business community offers. The Turkish companies operating in Georgia are all very well-respected and professional. As a result, they enjoy well-deserved credit and trust of the Georgian authorities. As a result, today there is a great interest on the part of Georgia to attract new Turkish investments, with an equally great enthusiasm on the Turkish side.
Finally, the Georgian economy is poised to make a big shift forward. I know that this is a big priority for Georgian Government and of course this opens up many new possibilities for Turkish companies to invest and make trade here.
Q. What is the expected volume of Turkish FDI in Georgia in 2014?
A. In 2013 the Turkish FDI to Georgia was USD 75 million. Since 1991 total Turkish FDI in Georgia amounted to almost USD 1 billion. This year we expect not less than USD 75 million. But I think it will be much more than that due to the ongoing building of hydroelectric power stations. Georgia has a very ambitious programme of building new hydroelectric power stations and 15 of them have already been assumed by Turkish companies. The total value of these investments will be more than USD 1 billion. So I do not know the exact figures of investment for 2014 but the overall share will definitely increase over the next few years.
Q. Audits of IATA are investigating TAV Georgia. We previously heard that Georgian officials might break their cooperation with TAV, which some experts have linked to political links during the previous government’s reign. How important is the future of TAV Georgia for other Turkish businesses?
A. I cannot comment on the intentions of the Georgian Government, but TAV is certainly committed to staying in Georgia, continuing their work and even extending their operations. So, I see that as a good sign on the part of TAV and our economic relations. Because, after all, TAV is a well-known, experienced multinational company and they are doing a very good job in Georgia. So I am hoping that their negotiations with the Georgian Government will soon produce a mutually satisfactory solution. For, it should be kept in mind that, when such a big company has such long held negotiations with a government, it is also followed very closely by other firms. They look at it with a view to understanding what the problems and prospects are. So, it will be better for all sides if these negotiations can be concluded sooner rather than later. This will certainly constitute a good example about the investment climate in Georgia.
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