‘EU failure to resolve visa issues, update customs union amounts to trade war’: DEİK

‘EU failure to resolve visa issues, update customs union amounts to trade war’: DEİK

ISTANBUL
‘EU failure to resolve visa issues, update customs union amounts to trade war’: DEİK

Nail Olpak, President of the Foreign Economic Relations Board (DEİK), has warned that the European Union's failure to resolve the visa problem for Turkish citizens and update the Customs Union represents an "attitude of a trade war."

Olpak met with journalists to evaluate the commercial outlook for the Turkish business world in 2024 and share his predictions for 2025. He noted that while interest rates and inflation were the main topics in 2024, the focus in 2025 will shift to trade wars, blocs and protectionism.

Expressing concern over developments in Europe, where Türkiye conducts 56 percent of its exports and 50 percent of its imports, Olpak stated that Türkiye must seek new areas to expand.

He noted a "state of fatigue and reluctance" among German companies, leading to a stagnation in business activities. Olpak also highlighted Germany's looming challenge of a three to five-year period in which nearly 6 million qualified workers are set to retire.

Addressing the Customs Union and visa issues with the EU, Olpak said the bloc has restarted High Level Economic Dialogue meetings, but Turkish businesses' expectations go beyond just dialogue.

"In a period when our businesspeople have visa problems and our trucks face transit quotas, dialogue alone will not be enough," he said.

Olpak described the visa problem and failure to update the Customs Union as a "kind of trade war," preventing Turkish contractors from operating in Europe due to protectionist policies.

The DEİK president warned that it would not be possible for Türkiye to maintain a 10 percent annual export growth rate due to both external and domestic conditions, emphasizing the need for innovative solutions. He drew attention to the financing challenges, with high costs, low capital and limited support.

He suggested that the re-election of Trump could bring about "a different process in global balances."

Olpak emphasized the growing competition between economic powerhouses China and India as another key factor shaping the new global dynamics.

The DEİK president also underscored the impact of the ongoing green transformation, which he described as "a new economic design beyond respect for nature."

Olpak said that this system, primarily driven by the EU, "will have serious effects on our foreign trade."

DEIK,