A Boost for Turkish-Belarusian Ties: Makey Visits Ankara

Belarusian Foreign Minister Vladimir Makey will visit Ankara on Oct. 30 to attend the eighth term meeting of the Turkish-Belarusian Joint Economic Commission (KEK).
 
Turkey was the first state to recognize Belarus when it declared its independence on Aug. 25, 1991. Belarusian President Alexander Lukashenko's 2010 visit to Turkey gave bilateral ties between the two countries a lift and, as a result, the two countries signed agreements for the prevention of double taxation and the protection of existing investments with the intention of reinforcing commercial ties. Moreover, parliamentary friendship groups were set up to further encourage bilateral relations.
 
On March 29, 2013, Turkish Foreign Minister Ahmet Davutoğlu paid a visit to Minsk to discuss the construction of a mosque and a friendship monument there in Minsk. Visa exemption and re-admission agreements were also signed. Furthermore, problems Turkish companies had been facing in Belarus were taken care of. Belarus does not allow the Kurdistan Workers' Party (PKK) to conduct activities in its territories and it adopts a balanced approach to the Cyprus issue.
 
There are plans to increase the volume of bilateral trade from its currently modest level ($455 million in 2012) to $1 billion. Between 2002 and 2012, no foreign direct investment came from Belarus to Turkey. The total of Turkish investments in Belarus is about $1.1 billion. Since the 1990s, when Turkish contractors entered Belarus, they have taken on more than 30 projects with a total value of $660 million. Thanks to Turkcell's investments in the country (LIFE Telecommunications Company), Turkey is among the three countries with the highest investment in Belarus. However, Turkcell/LIFE, being the largest Turkish investment in Belarus, faces challenges in market penetration and making a profit due to the anti-competition regulations. Indeed, the prohibition on making the full or partial payment for imported goods before the transaction is completed has been a real nuisance for Turkish importers.
 
The total volume of foreign trade between the two countries was $29.7 million in the early 2000s. This figure continually rose and became $110.3 million in 2006 and $175.8 million in 2007. The total foreign trade between Turkey and Belarus rose significantly in 2008, reaching $266.1 million --$145.5 million in exports and $120.7 million in imports. The two countries quickly recovered from the effects of the global crisis on the bilateral trade and the foreign trade volume rose to $341.1 million in 2010 after falling down to $202.9 million in 2009. Despite the foreign currency crisis in Belarus, the foreign trade between Turkey and Belarus was $415.8 million in 2011. This figure rose to $454.5 million in 2012. It is clear that the trend in trade volume between the two countries rose steadily after the global crisis.
 
Turkey's exports to Belarus mainly include knitted fabrics, nuts, raw hides, leathers, special textiles, boilers, machinery, household appliances, motor vehicles, plastics, electrical equipment, parts and accessories. Raw materials and intermediate goods account for the largest portion of Belarus' exports to Turkey, such as steel, mineral fuels, mineral oils and related products.
 
Turkey and Belarus generally enjoy good relations. Foreign investments in Belarus are low. High taxes and levies on imports and operations as well as ambiguities in Belarusian law hinder foreign capital inflow to the country. This suggests that Belarus has not been able to adapt fully to the free market economy and the transition process has not yet been completed. It will grow and become a more active country in the region only after its financial system and economic infrastructure have sufficiently matured. Recent positive developments indicate that the political and commercial ties between Turkey and Belarus will be further reinforced in the coming years.