Aegean Exporters Describe 2024 as "A Year of Hope"

Aegean Exporters Describe 2024 as "A Year of Hope" Speaking at a meeting evaluating 2023 export performance and outlining 2024 projections, Jak Eskinazi, Coordinator President of Aegean Exporters Unions, said: "Our target for 2024 will be to maintain current levels. However, maintaining current levels in 2024 will not be as easy as it was in 2023. The third and fourth quarters of 2024 will be a more hopeful period for exporters. 2024 will be 'A Year of Hope' for our exporters." Eskinazi, noting different expectations for each quarter in 2024, stated: "The first quarter will be difficult due to local elections, high inflation, economic stagnation in the global economy, and wars. In the first quarter, pressure on exchange rates, the inability to open credit lines, and the risk of foreign resources not arriving will continue. We expect movement in these parameters during the second quarter. Exchange rates and credit lines will begin to move. Import increases will continue due to pressure on exchange rates. In the second three-month period, we expect some relief in exchange rates and access to financing. Exporters will estimate prices with hope and quote accordingly. I view the third quarter of 2024 as a recovery period. In the fourth quarter, perhaps a slight profit-making period will begin. All of this is the optimistic picture we have drawn for 2024. I am not pessimistic. We saw from the start that 2023 would be such a year. We view 2024, as I have just described, as 'a year of hope.' We will both maintain current levels and hope. There is no other choice. Right now, everyone's concern is maintaining current levels. In 2024, exporters will gain some relief. The year will start pessimistically but end with relief. If Turkey regains the exchange rate advantage it lost, from 2025 onwards we can see the future more comfortably. We project that the export target of USD 302 billion at the end of the medium-term plan will be easily achieved. The economic picture may be poor. However, we do not lose hope," he said.

The Central Bank's task is difficult

Noting that "Our exporters carry the exhaustion of 2023. Our capital has decreased. Our energy is depleted," Eskinazi added: "It appears that a high-inflationary environment will continue in the first half of 2024. Following cost increases, we must offer our final products to our customers at higher prices. We entered 2024 with a wave of price increases. With the latest cost increases, there will be price increases of 25-30 percent in our final products. Of course, we cannot get every customer to accept this increase rate. We are likely to lose customers. In other words, 2024 will not be a very bright year. 2024 is a year in which we need to control inflation. For this, we need to take bitter medicine. While taking bitter medicine, it should not be lethal, and social balances should not be disrupted. 2024 is also an election year. Under these conditions, the Central Bank, which has the task of reducing inflation, faces a challenging process. The Central Bank's task is very difficult. Turkey needs to invest in 2024," he said.

Eskinazi continued by saying that Turkey needs to make investments in 2024 for it to be competitive:

"Capital suffered damage in 2022 and 2023. There is apprehension among those who will invest. New incentives need to be introduced for investors. New business sectors are emerging. New ways of doing business are emerging. New investments should be designed according to this direction. Our task is to guide exporters in this regard. For Turkey to be competitive, it must continue investing. For Turkey's export target of USD 267 billion determined for 2024, achieving USD 260 billion would be success. As a society, to escape the middle-income trap, we must achieve a minimum 10 percent increase in exports. Unfortunately, we are far from the economic climate that would enable us to achieve a 10 percent increase in exports." Noting that the earthquake that occurred in 2023, the recession in the European Union, our largest export market, the two-round elections held in Turkey, high inflation, and wars negatively affected exports, Eskinazi emphasized that despite all these negative factors, they continued to work hard like bees in 2023.

Our TURQUALITY Project became an example

Providing information that Aegean Exporters Unions organized National Participation in 13 International Fairs in 2023 with the support of the Ministry of Trade, Eskinazi stated: "We mediated the marketing of products by 329 of our companies with stands in the international arena. We continued our marketing activities with sectoral trade delegations and purchasing delegations in different sectors. With our ongoing 12 URGE Projects, we worked to strengthen our exporters' international competitiveness through clustering. Our TURQUALITY Project, which we have been conducting to increase the market share of Turkish food products in the United States, the world's largest food importer, progressed successfully. Through this project, such wonderful work was done that our Ministry began showing it as an example to other institutions. For instance, we hosted high-level American chefs in our country and had them cook meals together with local Turkish masters using Turkish products in their own kitchens, had them post on social media to demonstrate how different real Turkish flavors could be from the American palate, won the annual award from the American Chef Federation through our efforts, and in 2024 the Project will emphasize commercialization," he said.

President Eskinazi continued:

"We organized training programs, workshops, and international meetings. We are working intensively to meet the requirements of the European Union's Green Deal, our largest export market, and to avoid facing carbon taxes. With our Strategy and Sustainability Committee, which we established to more effectively manage our greenhouse gas emissions and adapt to the physical effects of climate change, we continued our work intensively in 2023. We prepared the EIB Sustainability Action Plan, published our 2022 EIB Sustainability Report and EIB Strategic Plan Report. We determined our 2024 targets. By monitoring the sustainability performance of Aegean Exporters Unions, we aim to publish our reports in 2024. In 2024, EIB will dedicate a significant portion of its efforts to the Carbon Border Adjustment Mechanism."

We generated USD 18.3 billion in foreign currency for our country

President Eskinazi stated: "As a result of all these efforts, we generated USD 18.3 billion in foreign currency for our country. While our Aegean Iron and Non-Ferrous Metals Exporters Union maintained its leading position with USD 2 billion 515 million in exports, our Aegean Aquatic Products and Animal Products Exporters Union came second with USD 1 billion 546 million. Aegean Ready-Made Garments and Confection Exporters Union generated USD 1 billion 340 million, and Aegean Fresh Fruits and Vegetables Exporters Union generated USD 1 billion 330 million in foreign currency for our country. Our Aegean Cereals, Legumes, Oilseeds and Products Exporters Union generated USD 1 billion 68 million, and our Aegean Mining Exporters Union with a performance of USD 1 billion 66 million were our other unions that exceeded the USD 1 billion threshold. The Chemical sector, not represented under our unions' umbrella, at USD 1 billion 693 million, and our automotive parts industry with USD 1 billion 46 million in export performance stood out as our other leading sectors," he said.