Showing posts with label Foreign relations of Turkey. Show all posts
Showing posts with label Foreign relations of Turkey. Show all posts

Friday, October 13, 2017

The Underlying Reasons For Turkey's Disengagement From The US

Authored by Dmitiry Minin via The Strategic Culture Foundation,


The Turkish media is reporting that a staffer at the American consulate general in Istanbul was recently arrested under the serious charge of attempting the “destruction of the constitutional order,” “espionage,” and seeking “to overthrow the government.”


To be specific, ties have been uncovered between the man under arrest and some prominent members of Fethullah Gülen’s movement (FETÖ), which is banned in Turkey. Previous accusations had been made against General Joseph Votel, the commander of US CENTCOM and an expert in covert operations, alleging that he had cooperated with the conspirators who attempted a military coup in Turkey in July 2016.


And this is only the tip of a very cold and growing iceberg that has gradually been disrupting the relationship between these formerly close allies - the US and Turkey. Not even President Erdo?an’s visit to the US this year could buck these trends.


Observing that relations between the two countries have been deteriorating for more than a decade, US columnists, for example - Tom Rogan of the Washington Examiner - reflexively sum it all up as evidence of the deleterious influence of Vladimir Putin. In his assessment of the most recent meeting between the Russian and Turkish presidents in Ankara, that journalist points to the fact that Recep Erdo?an called Vladimir Putin “my dear friend” and even “stroked his ego” by speaking to him - horror of horrors! - “in Russian,” as though that were a crime.



CNBC also notes that Recep Tayyip Erdo?an and Vladimir Putin “share a general suspicion and mistrust of the US.”


It seems, however, that the reasons for Turkey’s growing frustration with its efforts to cooperate with its Western partners, including the United States, run deeper.


 According to the Huffington Post, Ankara realized several years ago that neither the US nor influential NATO members such as Germany, France, and Britain take Turkey’s security concerns or economic interests seriously. As a result, Ankara decided to go it alone and began “wooing” Russia militarily and Iran economically.


The joint study produced not so long ago by the Turkish Foreign Ministry’s Center for Strategic Research and America’s CSIS, which reviews relations between Ankara and Washington, did not anticipate anything of this nature. The “Arab Spring” had just begun, and few people correctly surmised how that would unfold. Moreover, the study proclaimed that the two countries’ “partnership has recently been enhanced by overlapping perspectives on the unprecedented transformation sweeping the Middle East.” But nothing quite worked out that way.


At that time the foundations for the strategic alliance between the US and Turkey were seen as: close cooperation on issues related to the “Arab spring”; a Turkish role in the NATO mission in Afghanistan; Turkey’s decision to join the NATO missile-defense program; and American assistance with Turkey’s military operations against the Kurdistan Workers’ Party (PKK).


All these elements of their “bilateral rapport” have now turned into factors of their alienation. For example, the Turkish government considers the US government to be fully to blame for the failure of the “Arab spring,” a stance that it takes, apparently, in part in order to sidestep criticism from its own citizens. In any event, there is now no serious cooperation between Ankara and Washington to speak of. Each acts at its own risk and peril. Turkey’s presence in Afghanistan was long ago reduced to a purely symbolic role. And Turkey’s potential purchase of the Russian S-400 system is indicative of more than merely Ankara’s shift toward non-NATO weapons - it is a consequence of the country’s de facto refusal to participate in the NATO program to create a joint missile-defense shield. The S-400 is a missile interceptor that is quite powerful enough to allow Turkey to autonomously defend its own territory.


And there’s a good reason this deal is so irritating to Washington and Brussels. Due to the oscillations of American policy in Syria, the local branch of the PKK - the Kurdish Democratic Union Party (PYD) - has suddenly become the US administration’s main bedrock of support there. And this is perhaps the biggest irritant for the Turks. Suffice it to say that the Americans failed to meet their obligation to move the Kurds east of the Euphrates River and out of Manbij and Tabqa. The promise they made to Ankara to disarm the Kurds after the defeat of IS has also been unabashedly left hanging. The Turks deeply dislike being deceived. There is an ever-growing possibility that the US and Turkey, which are “NATO allies,” will become embroiled in an indirect armed conflict (!) through their “proxies” from the pro-Turkish FSA and the pro-American SDF.


Surveys conducted in Turkey by the American Pew Research Center show that 72% of Turks consider the US to be a threat to their country’s security. This is a world record, hands down. Few in Turkey were swayed by Washington’s refusal to formally support the referendum in Iraqi Kurdistan. They don’t think that the Iraqi Kurds would have risked a referendum at all without the Americans’ tacit consent. It is noteworthy that not only Erdo?an, but also pro-opposition Turkish nationalists are highly critical of the US Kurdish policy. They believe that by flirting with the Kurds, Washington is pursuing a long-term strategy to create a “second Israel” in the Middle East. They are particularly irritated by the inclusion of oil-rich Kirkuk - which they traditionally view as a Turkmen city - within the zone of the referendum.


One might ask: how enduring are these changes that have been seen in the relationship between the two countries and in the sentiments of the Turkish public? Might they be scrapped once the next generation of politicians gets into office? But it appears rather to be a manifestation of deep-seated patterns of behavior.


The post-war threats to Turkey’s security that at one time prompted its close integration with Western institutions, including NATO, simply do not exist today. And they are unlikely to reemerge.


The real dangers for Turkey all come from a completely different direction - the Middle East. And to a large extent those dangers can be blamed on the actions of Ankara’s Western allies, who, instead of providing security, have become agents of destabilization. Perhaps the discussion today should be more about finding protection from them, not about joint-defense operations with them.


In addition, by abandoning its dream once and for all of joining the European Union - and that issue can be seen as settled, once and for all, on both sides - Turkey must obviously give some thought to its dependence on NATO. Although there is not yet any talk of Ankara’s pulling out of that institution, it is clearly inevitable that Turkey will reject some of the restrictive commitments and rules mandated by the North Atlantic alliance. Those might chiefly involve decisions to use military force that is unsanctioned by NATO. Erdo?an set out to entirely eliminate Turkey’s dependence on defense imports - which includes the goal of launching his country’s own aircraft carrier - by 2023, when Turkey will celebrate the centennial of the founding of its republic.


It’s no secret to anyone that nowadays NATO positions itself as a kind of “introductory class” to prep countries on their path to EU membership. All of Eastern Europe, for example, was forced to pass through this purgatory. It’s no surprise that Austria, Finland, and Sweden, which were early joiners to the European Union, aren’t seriously contemplating becoming NATO members, despite the discussions on this topic that are constantly forced upon them. And as far as Turkey is concerned, without the prospect of joining the EU, that alliance has become too cumbersome and useless.


From the standpoint of Turkey’s real interests, gradual rapprochement with its regional neighbors - Iran, Iraq, Syria, and Russia, as well as with global unions such as the Shanghai Cooperation Organization - may be more promising. Although some might currently view this drift as a mere episode, it is in fact quite a logical development, based on objective criteria and which may well prove to be long-term.

Monday, October 9, 2017

Turkish Lira Crashes 4%, Biggest Drop Since "Failed Coup" Following Visa Suspension Drama

With tensions between Turkey and the US escalating dramatically and unexpectedly in the past few days, when first Turkish police on Wednesday arrested a local employee of the US embassy in Istanbul and charged him with espionage and an attempt to overthrow the government, which was following on Sunday afternoon by the US embassy in Turkey announcing that "effective immediately" it has
"suspended all non-immigrant visa services at all U.S. diplomatic facilities in Turkey"...



... only to see a identical Turkish tit to the US tat, when the Turkish embassy in Washington tweeted that it too suspended non-immigrant visa services for U.S. Citizens, echoing almost verbatim the US statement, to wit, "Recent events have forced Turkish Government to reassess the commitment of the Government of the United States to the security of Turkish Mission facilities and personnel. In order to minimize the number of visitors to our Embassy and Consulates while this assessment proceeds, effective immediately we have suspended all non-immigrant visa service at all Turkish diplomatic facilities in the U.S."



... the market got nervous, and in early - and illiquid - FX trading, the TRY has tumbled to as low as 3.8533 per dollar, a level last seen in January, a drop of as much as 4%, the biggest slide since the fake attempted coup attempt in the summer of 2016.



This is the currency seventh consecutive decline, after dropping 0.8% Friday amid concern Fed tightening would hurt EM currencies, and should it persist may finally have an adverse impact on other EM currencies, not to mention various other local Turkish asset classes when markets reopen in a few hours.

Tuesday, July 18, 2017

NATO Member Turkey Turns To Russia For Air Defense Cooperation

Authored by Peter Korzun via The Strategic Culture Foundation,


Turkey has agreed to pay $2.5 billion to acquire S-400 – the Russia-made most advanced long-range missile defense system in the world. Russian President Vladimir Putin has already said that Moscow is ready to sell it. According to Russian Presidential Adviser for Military and Technical Cooperation Vladimir Kozhin, Russia’s contract with Turkey has been agreed in general, with financial details still to be ironed out. The system is capable of intercepting all types of modern air weaponry, including fifth-generation warplanes, as well as ballistic and cruise missiles at a maximum range of nearly 250 miles.



According to the preliminary agreement, Ankara is to receive two S-400 missile batteries within the next year, and then produce another two inside Turkey, although the Turkish defense industry has no experience of producing such systems. Not yet.


Unlike NATO’s US-made Patriots temporarily deployed in Turkey some time ago, the Russian S-400 deal has no political strings attached, and could, potentially, boost Turkey’s defense industry bringing Russian-Turkish military cooperation to an unprecedented level. The two nations will work together for many years and the process is likely to encompass other areas of interaction.


Last year, Russia and Turkey signed a declaration on partnership in defense industry. The parties agreed to form a joint military and intelligence mechanism to coordinate their activities in the Middle East. Ankara also seeks procurement deals with Russia in electronic systems, ammunitions and missile technology.


In 2013, Turkey wanted to purchase the HQ-9 long-range air defense system from China but had to scupper the deal in 2015 due to political pressure from NATO allies. Not this time. The pressure is there but Turkey stands tall - it wants the best and the best is S-400. Today, the Turkish government is pursuing a more independent policy while its ties with NATO, the EU and the US are getting increasingly strained.


The deal is a clear shift of Turkey away from NATO and the West. The system won’t be compatible with the rest of the alliance for the purposes of integration. In March, 2017, Turkish President Recep Tayyip Erdogan said, «Being a NATO member does not mean we are not independent. We can have close ties with Russia while performing our responsibilities toward NATO. We find objections on this matter inappropriate».


Turkey has been angered by what it sees as lukewarm condemnation by its Western allies of the abortive July 2016 putsch against President Tayyip Erdogan. Ankara suspected that the West had a role to play. Russia was the first country to be visited by the Turkish president after the failed coup.


The idea of joining the EU has lost its attraction for Ankara as the union is facing a number of problems, including Brexit, the refugee crisis, the surge of far-right movements and the creation of blocs within the bloc while the concepts of «two-speed Europe» and «multi-speed Europe» are seriously considered as alternatives to the EU we know today.


The territorial dispute between Greece and Turkey in the Aegean Sea and Turkey’s support for Northern Cyprus has traditionally spoiled relations between Turkey and NATO. According to the NATO 2016 annual report, Turkey took part in only four of the 18 key NATO exercises held last year. Despite having the fourth-strongest military in the bloc and the second-highest number of military personnel, Turkey’s involvement in NATO"s deployments amounts to just 4 percent of the personnel in the mission to train the Afghan security forces, and 7 percent of the Kosovo force.


Turkey has recently blocked some rolling programs with NATO, including political events, civilian projects and military training, in an escalation of its diplomatic dispute with a number of European states. The action encompasses many more areas of NATO’s activities as the programs cover most of Europe, plus many countries in the Middle East and Asia. As its relations with the West sour, Turkey is looking for other partners.


Russia and Turkey lead the management crisis process in Syria. With the Islamic State (IS) retreating everywhere, the time draws nearer when Russia and Turkey will face the question about what to do next. It could be the start of forming a broader alliance.


If the coordination of efforts in Syria is successful, the lucrative prospect in bilateral trade, mutual investment, tourism and the Turkish Steam gas project will provide a powerful impetus to the development of relationship.


Turkish President Recep Tayyip Erdogan made the first statement about the possibility of Turkey’s accession to the Shanghai Cooperation Organization as far back as 2013. In 2016, he repeated it again, saying «Some may criticize me but I express my opinion. For example, I have said ‘why shouldn’t Turkey be in the Shanghai 5?» Turkey was granted dialogue partner status in the SCO in 2012. This year, Ankara chairs the Shanghai Cooperation Organization (SCO) Energy Club. The SCO’s clout is rapidly increasing in the world. The accession would bring economic benefits for Turkey.


Ankara is also showing increasing interest in the Eurasian Economic Union (EAEU). It was invited to join the organization in 2014. Many of the present and potential members of the EAEU are countries with whom Turkey already has close relations in many fields.


Ankara is also getting closer to Beijing. The two countries are closely cooperating to implement China’s the One Belt One Road project. Turkey is again taking the position as a key investment and cooperation partner that will help bridge the East and the West.


Turkey’s gradual shift from the West to Eurasia and other partners is part of a broader process as the West gets weakened, divided and less attractive. The very notion of «Western unity» is fading away. Unsurprisingly, as its relations with the West sour, Turkey is reaching out to other poles of power. The S-400 deal conforms to the trend.

Friday, July 14, 2017

Turkey Bars German Lawmakers From Visiting NATO's Incirlik Airbase

At the end of May, the first direct confrontation between Germany and Turkey over the future use of Incirlik airbase emerged, when Turkey"s foreign minister said it is not possible to allow German lawmakers to visit troops stationed at Turkey"s Incirlik air base now, although he said Ankara may reconsider if it sees "positive steps" from Berlin. "We see that Germany supports everything that is against Turkey," Mevlut Cavusoglu told a news conference in Ankara. "Under these circumstances it is not possible for us to open Incirlik to German lawmakers right now ... If they take positive steps in the future we can reconsider."



That particular refusal to let lawmakers visit German soldiers at Incirlik air base ultimately led to Berlin begin relocating its troops stationed in Turkey to Jordan.  As Reuters reported last Sunday, Germany began to pull its troops out of Incirlik, following an approval by the German parliament last month, marking the latest step in one of many bilateral disputes, ranging from a post-coup clampdown by Ankara to Turkish political campaigning in Germany.





German tornado jets were due to keep operating out of Incirlik at least until the end of July as part of a mission providing reconnaissance aircraft to support U.S.-led coalition operations against Islamic State in Iraq and Syria. In the meantime the necessary material was to be moved to a new air base in Jordan, where the planes are scheduled to be deployed by October.



A German air tanker refueller left Incirlik for the Jordan base on Sunday, the ministry spokesman told Reuters.



Seemingly displeased by the relocation, which Ankara thought would be mostly a bluff and Germany would not follow through, on Friday Turkey went full circle and once again refused German lawmakers permission to visit the soldiers serving at Incirlik, a party defence spokesman said quoted by Reuters, marking a new escalation in tensions between the two NATO allies.


"The government, especially Chancellor Angela Merkel, must now take the necessary steps to ensure lawmakers can soon visit the soldiers in Konya," said Rainer Arnold, defence spokesperson for the Social Democrats, the junior coalition party in the government.


It is unclear just what leverage Merkel will use in its increasingly bitter conflict with Erdogan, who as a reminder, still is the gatekeeper of European stability, as he is still withholding some 2 million mostly Syrian refugees who are just waiting for Turkey to reopen the proverbial door and Erdogan"s permission to resume the trek toward Europe using the now defunct Balkan route. This is known all too well by Merkel and Brussels.


Furthermore, in an ominous twist, Germany is said to have asked for NATO support in rescheduling the trip. As a reminder, both nations are NATO members.


Meanwhile, as reported overnight, Turkey further antagonized both Germany and NATO - as well as the US - when as Bloomberg reported on Thursday, Turkey agreed to pay $2.5 billion to acquire Russia’s most advanced missile defense system. The proposed deal which was first reported here back in November 2016, has been finalized and the preliminary agreement sees Turkey receiving two S-400 missile batteries from Russia within the next year, then producing another two inside Turkey.


Most concerning for NATO, however is that the systems delivered to Turkey would not have a friend-or-foe identification system, which means they could be deployed against any threat without restriction. As we discussed last night, news of the deal are likely to strain relations between Turkey and NATO to the point of breaking, if not beyond.


Disagreements between Turkey, which has the second-largest army by personnel numbers in NATO, and the U.S., the bloc’s biggest military, have also impacted business. No U.S. companies bid for a Turkish attack helicopter contract in 2006 after Turkey insisted on full access to specific software codes, which the U.S. refused to share, considering it a security risk. Turkey partnered with Italy instead in a $3 billion project to co-produce 50 attack helicopters for its army.


And now, very symbolically, it has picked the sworn enemy of NATO: Russia.


Thursday, March 23, 2017

Economics Of The Standoff Between Turkey And The Netherlands

Authored by Altay Atli via The Strategic Culture Foundation blog,



As the diplomatic squabble between Turkey and the Netherlands continues to fester, concerns are raised about whether — and to what extent — the tensions will harm bilateral relations, particularly in economics where the two countries have robust trade and investment connections.


For Turkey, the Netherlands offers a large and expanding export market. Trade between the two countries has roots in the 17th century when the Ottomans exported wool and cotton (later tobacco as well) to the Netherlands and imported clothes and linen in return. Commerce between the two countries remained strong into modern times; in 2016 the bilateral trade volume was US$6.6 billion.


The Netherlands is the 10th largest export destination for Turkey, and perhaps more importantly from the Turkish perspective, it is also a fast-growing market. Last year Turkish exports to the Dutch market amounted to $3.6 billion, against $3 billion in imports. And while the annual increase in imports was 3.4%, exports expanded much faster, at 13.8%. For the Turkish economy, which is suffering an acute current-account deficit, the increasing trade surplus with the Dutch is a precious commodity.



On the other side of the equation, Turkey is and has always been a favored destination for Dutch investment. A process that started in 1930 when the Dutch company Philips set up shop in the newly established Republic of Turkey has reached new levels since then, making the Netherlands by far the largest source of foreign direct investment in Turkey today. According to data by the Turkish Central Bank, Dutch investment stock in Turkey was $22 billion in 2016, compared with $11.2 billion in US investments in second place, and $9.8 billion from Austria in third place.



Turkey is home to 2,700 companies funded by Dutch capital. This figure includes those transnational companies registered in the Netherlands for legal and tax-related purposes. This sizeable Dutch involvement in the Turkish economy benefits both sides. For Dutch multinationals such as Unilever, ING Bank, Philips, Perfetti, Royal Dutch Shell and Philip Morris, Turkey is not only a favorable production base but also a lucrative market and a trading and logistics hub for access to the Middle East and North Africa, Balkans, Caucasus and Central Asia. More Dutch investment is set to come to Turkey, such as the recent purchase by Vitol Group of the Turkey-based fuel products distribution company Petrolofisi for $1.47 billion. Investment needs a stable political climate, and the diplomatic spat between Turkey and the Netherlands doesn’t help.


It is also worth nothing that while the amount of Turkish investment in the Netherlands is considerably smaller, there are several large Turkish firms that have set up subsidiaries enabling access to the larger EU market.


For the past week, Dutch pundits have been commenting that Turkey is more dependent on the Netherlands, so possible sanctions imposed by Ankara would only mean “shooting themselves in the foot.” Turkish authorities have imposed political sanctions over the Dutch government’s refusal to allow Turkish ministers to meet with members of the Turkish diaspora there, including halting high-level political discussions between the two countries and the closing of Turkish airspace to Dutch diplomats. But Ankara has carefully ruled out economic sanctions. Turkey’s economics minister, Nihat Zeybekçi said: “If we take these steps, both sides would be hurt.” Ömer Çelik, minister of EU affairs said the Dutch business community, which is “investing in Turkey, doing commerce and generating employment” is “certainly not a part of this crisis,” and “Dutch investment in Turkey is by no means under risk”.


Economic sanctions between Turkey and the Netherlands don’t seem likely at the moment, but longer-term threats remain.





First, even if no sanctions are imposed, the significant loss of confidence caused by recent events will take a toll on bilateral economic relations for some time.



Second, the sizeable Turkish diaspora in the Netherlands, as well as the relatively smaller Dutch community living in Turkey, will face uncertainty, and this will have an economic impact too. An estimated 400,000 Turks live in the Netherlands, according to a diaspora association, and there are 25,000 businesses with Turkish owners, most of them smaller enterprises. Many of these companies are doing business with Turkey, and they are negatively affected by the current dispute between the two governments. So is the much smaller Dutch community in Turkey. But it is equally active in the economy, especially in the tourism sector. Declining tourist numbers will hurt Turkish and Dutch operators alike, and it might take some time to recover to pre-crisis levels of business.



Third, the diplomatic spat is likely to have a negative effect on efforts to revise the Turkish-EU Customs Union. The union, which took effect in 1996, is outdated, failing to catch up with the requirements of today’s global trade. Ankara and Brussels had begun talks to improve the deal, but the current circumstance is likely to overshadow attempts based on economic rationality.



This week Turkish football team Be?ikta? played the Greek side Olympiakos in the European cup. The Turks won 4-1 helped by two goals from Ryan Babel, the Amsterdam-born Dutch striker. Turkey and the Netherlands have links that are closer than many realize, and it will benefit both to keep them intact.