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Introduction Definition of Key Terms Forum: Economic and Social Council Issue: Turkish-Arab Economic Relations Student Officers: Hana Ismail, Carol Tharwat, Nevine Ghazi Introduction Turkey is known to be one of many key non-Arab nations that play a major role in the Middle East and North Africa region (MENA). Turkey has recently been engaged in economic and social encounters with many countries in the region, including Egypt, Libya, Syria and Qatar. While Turkey's relationship with Arab countries dates back centuries - ever since the rise and fall of the Ottoman Empire - it has recently raised apprehension and increased tension in the region strongly due to the stances and actions of the Turkish government. Turkey has found itself in havoc with numerous MENA countries: Israel due to disagreements over the Gaza strip, Iraq due to cultural disagreements over establishing a Kurdish independent state and Syria due to territorial disputes in northern Syria. Undoubtedly, Turkey has seen more conflict and division among its enemies and supporters in the MENA region than it has ever before. On a global scale, Turkey’s political and security relations with countries beyond the MENA region have also been subject to increased agitation most importantly, their relations with the United States of America have become strained despite them being a key regional member of the North Atlantic Treaty Organisation (NATO). With a strong international focus on Turkey, it has been labelled as problematic, unethical and unsettled by some of their most valuable trading partners such as Saudi Arabia and the United Arab Emirates - the political turbulence has consistently caused a threat to their economic relationship. Despite this complex relationship, trade between Turkey and Arab countries has increased by approximately 250% in the last 10 years. It is the goal of this forum to find a resolution that will attempt to please all members and observers, to find solutions that are both sustainable and achievable, each adhering to their foreign policies. Definition of Key Terms Free Trade Area: A region in which a group of countries maintains little to no barriers, in terms of trade, in the form of tariffs or quotas (maximum allowed amount of imports of product) between each other. MENA: This is an abbreviation for the Middle East and North Africa region. Countries in the MENA region include Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates (UAE) and Yemen. Import: A good or service bought into one country that was produced in a different country. Export: A good or service that is produced in a country that is then sold to buyers in another country. Exclusive Economic Zone (EZZ): A concept derived from the United Nations Convention on the Law of the Sea which allows for a nation to have rights over a marine zone, its exploration and its resources. Focused Overview Turkish Exports and Imports Given that its economy is largely led by its industrial sector, Turkey is a major exporter, it is even the European Union’s fifth largest trading partner. It produces essential commodities primarily vehicle parts (in which they managed to export $26 billion worth of in 2019), mechanical and electrical appliances, plastic, iron and steel, precious stones and metals as well as textiles and knitted goods. In recent years, a wide variety of major companies such as Nike, Toyota, Hyundai, Hewlett-Packard (HP) and Zara have established factories in Turkey proving it to be an up and rising hotspot for product manufacturing. As a result, Turkish exports have grown exponentially and will continue to grow in the coming years. Turkey does however lack in natural resources, predominantly oil and gas for their energy requirements. As of September 2020, Turkey had imported 3.09 million tonnes of crude oil. In July 2020, it had imported 1.04 million tonnes of crude oil from Iraq. Turkish-Israeli Relations Turkey’s relations with Arab countries have been tense for decades, mostly as a result of prior tension with other nations most notably, Israel. Israeli-Turkish relations started to cause conflict in 2003 during the Iraq war. The war stirred conflict as Israel, who was the USA’s strongest ally in the Middle East, was in support of the Iraqi war which triggered Turkey as Israel was linked to Kurdish groups and were viewed as being heavily in support of the Kurdistan Workers’ Party (PKK). PKK terrorists have long caused tension in Turkey and this became a massive sign of aggression between the two nations. Tension continued to rise significantly in 2004 when Isreal planned an assassination of Sheikh Ahmad Yassin and Sheikh Abdulaziz al-Ranstisi, the spiritual leaders of Hamas. These events, coupled with the massive protests against Israel in Turkey, led to Prime Minister Erdoğan labelling Israel as a “terrorist state”. Despite the rising tension, relations between the two nations were somewhat maintained as Turkey played a role in amending the historically conflicted ties between Syria and Israel. Meanwhile, Israeli-Palestinian territorial disputes surrounding the Gaza strip were deteriorating. Considering their security relation with Turkey, Israeli prime minister Ehud Olmert, pledged to approach the situation in Gaza peacefully and with diplomacy; he also agreed to hold back their military forces in Gaza. Nonetheless, Isreal’s 2008 operation of the Gaza strip that resulted in over a thousand Palestinian deaths evoked a clash between Isreal and Turkey. Turkey took Israel’s offence of Gaza as betrayal and cut all security ties with them, no longer participating in amending the Syrian-Israeli ties. As a result of the ongoing and increasing fraught between Turkey and Israel, their ability to collaborate has been hindered. During the World Economic Forum at Davos, Switzerland in 2009, Erdogan labelled Israeli President Shimon Peres as “knowing how to kill children well” which triggered a continued strain between the two nations. Economic Ramifications The economic relations between Turkey and Israel have not been as bruised as their political relations. They have had a long trade history, in-fact, Turkey is Israel's 6th largest trade partner proving to be of value to both economies; in 2017, there was a 14% increase in Turkish exports to Israel worth $2.5 billion. In 2008, both nations bilaterally agreed on planning the Mediterranean Pipeline Project, Med Stream, a multi- billion dollar project benefiting both states. Nonetheless, despite their economic relations being steady, the political turbulence between the two nations has caused tension with other countries primarily the United Arab Emirates and Saudi Arabia. Both countries view Turkey as a threat especially after their newly improved ties with Israel. When the UAE recognized Israel as a state following their agreement with the USA, Turkey in retaliation threatened to break ties with the United Arab Emirates. Saudi Boycotting of Turkish Products Since 2019, Saudi Arabia and UAE have unofficially halted Turkish imports and have been advocating that more MENA countries do the same. Consequently, Turkey’s exports have dropped since January 2020, almost by 20%. In October 2020, Saudi Arabia and UAE joined forces in leading the boycott of Turkish manufactured products; a movement which has recently gained momentum among consumers and retail chains. Despite the boycott being informal, and there being no legal restrictions when importing Turkish goods, it has struck aggression and disapproval from Turkish businesses and the government. Turkish-Syrian Border Zone Despite their decade long bilateral relations, their relations were challenged after Turkey refused to collaborate with the Syrian government in 2003 in their invasion of Iraq. Nonetheless, in 2004, Erdoğan had signed a free trade agreement with Syria which had ameliorated their relations. Nevertheless, when the Syrian civil war broke out in 2011, Turkey had maintained a strong stance against the Syrian government. The Turkish government began by expressing its disapproval of the Syrian government and Bashar al-Assaad, the president of Syria, back in 2011 and has now intervened militarily. Turkey, who shares its longest border with Syria, has gone into a border dispute with the nation due to its difficult relations with Iran and Russia (after they shot down a Russian aircraft, claiming it intervened into their territory) and a tense relationship with the USA over Syria (where Turkey engaged in combats with the PKK). Turkey invaded Northern Syria in what they claimed to be a defensive measure against the PKK who allegedly controlled the border with Turkey, a group who they deem as a terrorist threat to their nation. As a result, Turkey’s support of Syrian opposition increased and they continued to control northern Syria. Turkish intervention started in 2014 when a vote in the Turkish parliament which would decide for or against the invasion of Syria (in order to show their disapproval of Islamic State of Iraq and the Levant, ISIL) was successful. This was the turning point as president Erdoğan affirmed that Turkey would continue to fight any terrorist groups with the aim of seeing Bashar al-Assad removed from power. Turkey had begun their intervention in 2015 when suspicions of a Kurdish state in northern Syria had been raised. This striked their military intervention which officially began on 24th August 2016 when they launched airstrikes in the region. Since then, there has been the Idlib operation in 2017 in partnership with Russia, the 2018 Afrin operation and the 2019 operation in north-eastern Syria. Turkey's interventions, which have led to thousands of deaths and have supported the ongoing conflict raised outrage among the global community as well as the MENA region. MENA countries interpreted them assuming power over Northern Syria as a ploy to expand their colonies and to expand Turkey geographically. Libyan Civil War and Turkish Intervention The second Libyan civil war of 2014 greatly involved Turkey after their one year military mandate to intervene after the orders from the Government of National Accord (GNA) of Libya.
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