| SEBASTIÁN BRUGO MARCÓ | Ambassador of Argentina |
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The Exchanges Between Argentina And Turkey Are Far From Their Real Potentiality, So There Is A Vast Camp To Develop |
I arrived to Ankara as Ambassador of the Argentine Republic in January 2001, so just five years ago. But I had the chance of having started my diplomatic career in Ankara, spending here more than six years (from 1973 to 1979). This fact has certain advantages, since I am able to compare the situation of Turkey and the region between some thirty years ago and today. I consider myself fairly privileged in this aspect, because it makes my work as observer much easier. Do not forget that, in order to understand many questions of present day in a country, it is very useful to go back some decades ago. And that applies perfectly well to Turkey.
Other advantage of having served in Turkey before is the possibility that I had of learning enough Turkish language to move around more comfortably. Besides, the previous knowledge of the country was very helpful to fulfill my actual duties as Ambassador, when I am trying to improve our already excellent bilateral relations.
After my posting in Ankara, I served in the Ministry of Foreign Affaires in Buenos Aires for two years, since our system is rather similar to the Turkish Foreign Service in this aspect. At the beginning of 1981 I went to El Salvador, in Central America for two years and I was then transferred to our Embassy in Paris for four years. In 1987 I went back to Buenos Aires, where I stayed for five years, at my request; there, I worked at the Western Europe Directorate and later as Director for International Treaties. In 1992 I was designated Consul General in Madrid, where I stayed for five years before going back to the Legal Directorate General in Buenos Aires until my new assignment to Ankara.
I graduated in Law from the Catholic University of Buenos Aires and I made my postgraduate studies in International Relation at the Jesuit University. I followed also many courses at the National University of Buenos Aires and some other institutions. Unfortunately, I never ended my doctorate in International Law at the University of Buenos Aires. In any case, I was a lecturer in that field and became a professor in Diplomatic Law at the Faculty of Political Sciences of the Catholic University. In fact, I always enjoyed very much the academic life, because it keeps you updated and in contact with reality.
What is the economical situation of Argentina right now? Could you please compare to Turkey?
As it is well known, Argentina faced a very important economic and financial crisis that after four years of recession finally erupted in 2001, which resulted in a default and in a dramatic and very deep social crisis. Even if it is not possible to say that things are now perfect, we have good reasons to be optimistic. In the last four years the Argentinean economy has been growing at no less than 8 %, reaching and surpassing the level of production of 1998. That means that the country has not only recovered from the crisis, but it is also on the way of a sound and steady sustainable growth.
And one of the most inspiring developments of this process of recovery and expansion of the Argentinean economy, is the one related to the foreign trade. Today the foreign sector is not, as often in the past, a source of vulnerability, but an element that helps to consolidate and support the sustainable grow of the expansive process. Marking an important difference with the past, this time we are not facing the fact that, as soon as the country starts to recover, the trade balance and the current accounts present heavy deficits. We have completed four year of an 8% or higher growing rate, with a strong and positive commercial balance and a positive current account.
The Argentinean foreign trade appears very dynamic, with some 16% growth of exports in 2005 comparing with 2004, what supposes a difference of 50% comparing with 2002. The growth in exports today is not a result of something that can revert, like and increase in the prices of the exportable products; it is fundamentally produced by an increase in productivity, situation that allows bigger volumes of exports. The exports are then playing a much bigger part in the economic development life of the country. In this moment, the exports represent around two points of the economics’ growth, the highest in the recent decades.
But foreign trade does not mean only exports. In this moment of the Argentinean economy, it is impossible to grow at a rate of almost 9% and keep the pace of exports increasing if we don’t increase, at the same time, our purchases from the rest of the world. Therefore, the increase of our imports is another proof of the good health of the Argentinean economy. In particular the purchase of capital goods and intermediate goods, related to investments, which are growing more than the average global imports.
So, if we want to maintain the expansion of the economy, we must increase our imports, keeping at the same time the trade surplus, of course. And this is reflected in the ciphers of last year.
In 2005, the Argentinean exports reached a record mark of US$ 40.013 billons, while the imports where of US $ 28.692 billons. The trade balance was positive for US$ 11.322 billons, even if the imports grew 28 % comparing with the previous year, while the export improved a 16 %.
To compare the Argentineans and Turkish economies would be rather long and not very easy for someone that is not a specialist. A few years ago many commentator made a parallel because we were facing financial difficulties at the same time. But the decisions taken to overcome those crisis has being different, and I think in both cases, with rather positive results. In any case, we can say, for example, that in both of them the agricultural sector plays an important role in the life of each country, even if in Turkey it represents a mere 13% of the GDP. On the other hand, Turkey has a sound industry and is getting more and more implicated in the European Union due, in part, to the Costume Union, that opens the door to many industrial Turkish products.
How is the economical relation between Turkey and Argentina?
The bilateral trade, that has always been beneficial for Argentina, merits some attention. During the ’90s the mutual exchange had a steady increasing, with a maximum, en 1997 of 247 million dollars of Argentinean exports to Turkey and 21 million dollars of Turkish Exports to Argentina. The crisis in both of our countries affected seriously the bilateral trade, going down to a minimum of 50 million dollars of Argentinean products in 2001 to Turkey and only 2 million dollars of Turkish exports to Argentina in 2002. Since those years, the recovery has been important, reaching at the end of 2004 to 265 million dollars of exports and 19 million of imports from Turkey.
The last official data are for the nine first months of 2005, the Turkish exports to Argentina had a significant improvement, of some 27 million dollars, allowing us to evaluate a total of some 35 to 40 millions for this year, a growth that we expect will continue in the future. As for the Argentinean exports, the first nine months of 2005 shows, with 210 millions, a certain decrease that we think has been recovered on the last trimester to attain, at least, similar figures than 2004.
In any case, I really believe that we have to make an effort to increase both the volume of the products that we already trade, as well as the products that we exchange, since most of the trade is concentrated in a few products.
The 10 more sold products of Turkey: tobacco, textiles, plastics, olive oil, refrigerators, tires and other products of rubber, tools, and anilines made 85 % of the total of Turkish exports of 19 million in 2004. And a rather similar situation occurs in 2005.
From the Argentinean side the concentration is even worst, since the first 10 products of our exports to Turkey: soya and sunflower seeds, corn, wool, medicines, tobacco, wheat, cooking oil, paper, furs, made 87 % of the Argentinean exports of 265 million. The products, as in the Turkish case, are more or less the same for 2005.
One thing is for certain: that exchanges between Argentina and Turkey are far from their real potentiality, so there is a vast camp to develop. And we are trying to do that.
Regarding the relationships between these two countries, do you have any further comments?
First of all, I must emphasize the excellent political relations between our two countries for almost one century, since The Argentine Republic and the Ottoman Empire opened their respective Consulates General in Istanbul and Buenos Aires in 1910. In Ankara we established a Legation in 1940, that became an Embassy in 1956. During all this decades the relations had been cordial and cooperative, getting a big impulse in the last 15 years. In these sense, I think we have to praise the idea of the former Minister of Foreign Affairs Ismail CEM towards Latin America en 1998. The present Foreign Minister, Mr. Abdullah GÜL, following that trend and going beyond it, has declared 2006 as the Year of Latin America. I’m sure this vision will mark an important momentum in our relations.
In the case of Argentina, I can mention the official visit of the Foreign Minister Rafael BIELSA in march 2005, the 7th Political Consultations that took place in Buenos Aires last October, among other things. For this year we are preparing the Joint Commission for Tourism and the Economic Joint Commission in the next three months. In some moment of this year, we expect to receive the visit of the Turkish Foreign Minister, as well as a delegation of Turkish businessmen. Around October we plan to have the 8th Political Consultations meeting in Ankara.
Beside all these, I would like to mention the cultural aspects, specially the events of Tango that we expect will take place in Istanbul along the year, as well as a week of Argentinean cinema, beside the participation in various Festivals. And of course, we look forward to the 3rd Latin America And Caribbean Festival, organized by the Caribbean and Latin American Commercial Association that is already an important date in Istanbul, under the leadership of its dynamic President, Mr. Aykut EKEN.