By Billy Geibel (JTW)

Journal of Turkish Weekly conducted an exclusive interview with Dan Catarivas, Director of the Division of Foreign Trade and International Relations, Manufacturers’ Association of Israel. Here is the full-text of interview.

Q: What are the basic cooperation points between Israel and Turkey?

A: The relationship between the Israeli and Turkish economy is complementary. There are plenty of sectors, where there is the possibility of cooperation, either in joint ventures, in selling, buying and developing new products together. In the I.T. sector, in the medical equipment, agriculture and even in consumer goods, these are all areas that are all very important in Turkey. In Israel we have innovation capacities, we are not a major producer of products, because our workforce is very expensive. We try to specialize ourselves more in the area of research and development, and then we look for partners in developing those new products, and implementing new technologies, and Turkey is very close in proximity, you can fly here in the morning and come back in the evening as I am doing today, which makes it almost like a local market. There are also in the business culture, between Turkish businessmen and Israeli businessmen, many similarities, not so much formalistic like with the Americans. We are both Mediterranean, we behave in business very similarly, so I think there is a lot of ground for cooperation.

Q: What is your feeling on Turkey’s surging investment in the Middle East region?

A: I think it is very positive. The more the Middle East is developed economically, because unfortunately the Middle East, and the countries surrounding Israel are not at a very high level of economic development. If you look at the GDP per capita of Egypt, Jordan, Syria or Iraq, those countries need more investment, they need diversification, and they need to upgrade their economies. If Turkey can play a positive role in that, then at the end of the day I think it will be beneficial for the region, and if those countries are becoming more developed economically they can also trade with Israel in different ways than they do today. Today, unfortunately, trade between Israel and Egypt or Jordan is relatively limited due to the different economic structure of Israel and Egypt and Jordan. We export products that are not usually products that the Egyptians or Jordanians are consuming on a daily basis. We are very good in integrating systems, in I.T., and in medical equipment. This is the real potential, eventually, for Israel and Egypt and Israel and Jordan, but it is dependent on the advancement of those economies. If Turkey, by investing in those areas, is contributing to the economical development of those countries then we see it in a very positive manner.

Q: Why do you think the economic relationship between Turkey and Israel is such a neglected aspect of the two countries relations?

A: Well, maybe we shouldn’t talk about it. Business is business. Businessmen like confidentiality and sometimes they don’t like their competitor to know what they are doing. I don’t think that business is for the first page of the newspaper. It is something that is deep working and constant. If there are success stories sometimes they publicize, there are success stories that due find their ways. However, I think it is true that we need to change the perception of the majority of Turks and Israelis that even under dire political conditions the economy can continue to function and there is no reason why they shouldn’t develop even more political ties. So, I think this is the problem, to try and separate the politics and the economics. The fact that the economic relations between Israel and Turkey are not in the headlines, I think it is a relatively positive thing because it enables them (businessmen) to continue to work and function without being effected by the political ups and downs that we are facing now.

Q: Do you think that if there was more recognition, by the public, of the good economic relationship that exists between the two countries it might help enhance their positive political views?

A: It might, but we have to be realistic. We will never be a huge market like Russia, Iran or Iraq. We are only seven million in terms of volume, so the relations can be important, however, what is important is not the quantitative element of the relationship but the qualitative sense, meaning that we can have a good relation based on mutual interest, research and development, and development innovation. It is not necessarily going to be a big volume, it can go to four, five, six million dollars and there is room for expansion, but at the same time you must understand that the size is limited. Something that I have tried to explain is that if we work together with the Turks on certain markets then the size will be bigger, but then people won’t attribute it to the bilateral relations. If Israel and Turkey develop a new product where there is both Israeli and Turkish know-how, and it is manufactured in a third country, just because it is the Turks who are the shareholders, who then make the benefit, it will not be perceived as Israel-Turkish cooperation, even though it is. So, you see economics today is such a global thing that I believe people must understand it is a win-win situation between Israel and Turkey on the economic side, and eventually, the politics will improve.