Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered remarks at the American Turkish Council’s Golden Horn Breakfast. Since 2009, bilateral trade between the United States and Turkey has nearly doubled and is on pace to reach nearly $17 billion this year. 

During his remarks, Deputy Secretary Andrews highlighted how important economic relations between the United States and Turkey are to ensuring economic prosperity for both nations. Turkish firms invested a record-high $1.2 billion in the United States in 2015, and more than 1,400 U.S. firms do business in Turkey. While also acknowledging the challenges Turkey has faced during the last year, the Deputy Secretary stressed the need for reform in Turkey to ensure it remains an attractive location for foreign direct investment. 

Remarks as Prepared for Delivery

Günaydın, everyone, and merhaba! Thank you, Howard, for your kind introduction and for helping to organize this conference. It is great to be back at this year’s Golden Horn Breakfast. At the Department of Commerce, we appreciate the pivotal role that the American Turkish Council plays in promoting a strong bilateral relationship between the United States and Turkey.
 
As some of you may know, Turkey holds a special place in my heart. My wife is Turkish. She grew up in Ankara and Istanbul. Her father was a professor at Middle East Technical University for a number of years. And while she immigrated to the United States when she was eleven years old, my wife’s grandmother and many of her relatives still live in Bilkent. We visit often with our daughters. Turkey has become one of my favorite places in the world because of my family and, of course, the food. My Turkish mother-in-law makes a mean manti.
 
Each of us knows these are trying times for Turkey. Over 2.7 million refugees have fled from the violence in Syria and settled in Turkey. That makes Turkey the largest host country of Syrian refugees. Your sacrifice does not go unnoticed by the United States. And of course in July, we watched as a coup tried to topple Turkey’s government. So allow me to reaffirm what President Obama and this Administration have said since July: we strongly support Turkey’s democratically-elected, civilian government, and democratic institutions. We are proud that America’s relationship with Turkey has spanned many decades. Our mutual security and economic interests run deep. 
 
As Deputy Secretary of Commerce, it has been an honor to work on strengthening U.S.-Turkish commercial ties. Under President Obama’s leadership, we have recognized that our shared economic and commercial interests are more important than ever. Building strong business-to-business relationships between our countries has been a top priority for this Administration. During his first year in office, President Obama worked with then-President Gul to elevate our trade and investment relationship in addition to our security cooperation.
 
We continue to build on these efforts today. Two-way trade between the United States and Turkey has nearly doubled since 2009. In fact, our bilateral trade is on pace to reach nearly $17 billion this year. Turkish firms invested a record-high $1.2 billion in the United States in 2015. And over 1,400 U.S. firms do business in Turkey. Nearly 60 American companies base their regional headquarters in your country.
 
There is good reason for that. For American companies, Turkey is an attractive market. You have a large population approaching 80 million citizens, a young and educated workforce and a central location near major markets throughout Europe, the Middle East, North Africa, and Central Asia.
 
Our commercial ties are strong, but of course, they can always be stronger. We must work together to address the challenges that hinder or limit the development of new trade and investment partnerships between our two countries from forming. There is no question that geopolitical problems persist in the region. While these economic and security challenges have created concerns for U.S. businesses – they have not scared off U.S. businesses. But in order to attract new American investment, the Turkish government must enact reforms.
 
Today, countries are in a fierce, global competition for capital. Companies can choose to invest anywhere; and Turkey must compete for this investment by putting its best foot forward. This means supporting the rule of law, reducing costly barriers to trade; and improving the ease of doing business.
 
As Deputy Assistant Secretary Michael Lally said yesterday, many companies are concerned about the current business climate in Turkey. For example, a lack of transparency in the public procurement process, an unpredictable judiciary, and complicated regulatory procedures, are slowing investment. This limits Turkey’s access to the cutting-edge technologies and services offered by U.S. and other multinational companies. It also forestalls investment that could create jobs for Turkey’s people. The continued state of emergency has amplified these challenges, as investors are uncertain about the rule of law.
 
As someone who wants to see Turkey succeed, it is troubling to me that uncertainty and instability have made Turkey a less attractive market – particularly at a time when capital is more mobile than ever. Let me be clear: we are ready to work with Turkey’s Government to implement meaningful reforms that will improve the country’s business climate. I know that by working together, we can overcome the obstacles that have caused investors to look elsewhere.
 
But to be successful, both countries must be committed to strengthening our economic ties – and this starts with listening to our private sector. Government alone cannot solve every challenge. The private sector must be part of the decision-making process. That is why we have turned to the U.S.-Turkey Business Council for insights into how to strengthen our bilateral trade and investment ties. I know that both our Department and the Turkish Ministry of Economy are looking forward to hearing their recommendations soon.
 
I want you all to know that the Department of Commerce is working hard to ensure that our commercial ties with Turkey continue to flourish. Led by Principal Deputy Assistant Secretary Holly Vineyard, the Department is organizing a Transportation Technology Trade Mission to Ankara, Istanbul, and Izmir in late March 2017.  There are numerous opportunities to strengthen Turkey’s transportation infrastructure, and American companies are excited about greater collaboration in this sector.
 
The U.S.-Turkish economic partnership spans decades, forming a vital foundation for our overall relationship. As Ataturk once said, “Economic development forms the backbone of the ideal of Turkey which is free, independent, ever stronger and more prosperous.” This is just as true today as it was then.
 
It has been a challenging year for Turkey. But I am confident that our relationship will endure and strengthen in the years ahead. We can, and we will, trade and invest more together. We will improve our shared prosperity. And – with all of your help – we will build a better tomorrow for both our countries. Thank you.