\nANKARA: Turkish President Recep Tayyip Erdogan has raised the stakes in a diplomatic stand-off between his country and the US with a call to boycott US electronic goods such as iPhone.<\/p>\n
\nThe call is in retaliation for recent sanctions imposed by Washington over the detention of an American pastor for almost two years.<\/p>\n
\n\u201cWhatever we buy from abroad we are going to produce here in better quality and export it. We are going to boycott US electronics,\u201d said Erdogan on Tuesday. \u201cIf they have iPhones, there is Samsung on the other side, and we have our own Venus, Vestel here,\u201d he said in a speech to members of his AK Party. The call resulted in a 5 percent increase in the share value of Turkish electronic company Vestel.<\/p>\n
\nHowever, Erdogan is known for his use of Apple products, with his famous appeal on the night of the July 2016 failed coup \u2014 calling on citizens to take to the streets \u2014 carried out through FaceTime, an iPhone app.<\/p>\n
\nSinan Ulgen, a former Turkish diplomat who chairs the Istanbul-based Center for Economics and Foreign Policy, said Erdogan\u2019s latest gamble was not the right way to tackle the country\u2019s economic challenges.<\/p>\n
\n\u201cAt this point what is needed is to reassure markets and investors that the government is aware of the difficulties and the structural problems of the Turkish economy,\u201d Ulgen told Arab News.<\/p>\n
\n\u201cThe president\u2019s combative remarks are more focused on maintaining the support of Turkish public opinion at a time of economic duress. But these remarks also nurture a perception abroad that Ankara is failing to evaluate the needs and essential steps to avoid a more severe economic downturn,\u201d he said.\u00a0<\/p>\n
\nTurkey\u2019s current account deficit, which has widened to 6.3 percent of GDP, is a chronic problem as the country imports more goods and services than it exports, forcing it to borrow foreign money to make up the difference.<\/p>\n
\nPaul Levin, director of Stockholm University Institute for Turkish Studies, said that any positive effects of patriotic action by tradesmen, retailers and ordinary Turks to defend the lira will be temporary.<\/p>\n
\n\u201cA sustainable response would entail monetary policy actions that convince the markets that Turkish policymakers can be trusted again. The nationalist rhetoric and talk of boycotts hurt more than it helps,\u201d Levin told Arab News. \u201cA cease-fire in the diplomatic spat with the US would be much better.\u201d\u00a0<\/p>\n
\nTurkey boycotted Italian products in 1998 after the leader of the Kurdistan Workers\u2019 Party (PKK), Abdullah Ocalan, fled from Syria to Italy, and the Turkish government\u2019s extradition request was rejected by the Italian government. The sanctions led to Turkish Airlines and Alitalia halting Istanbul-Rome flights for two months.<\/p>\n
\nNursin Atesoglu Guney, dean of the faculty of economics, administrative and social sciences at Bahcesehir Cyprus University, believes that the call for an electronics boycott has a symbolic meaning.<\/p>\n
\n\u201cTurkish people want to show their reaction against the measures that have recently been imposed against Turkey. Beyond its financial aspect, there is currently a psychological war between the two countries through high-level rhetoric,\u201d she told Arab News. It is not known if Turkish tech stores will be forbidden from selling iPhone models, a hugely popular device in the country.<\/p>\n
\nEbru Baki, an independent economist, underlines the need for structural reforms to address the current account deficit in the country rather than relying on boycotts.<\/p>\n
\n\u201cWe are dependent on imports. Even when exporting we need to import some intermediary products. Our exports are not high value added and thus lead to high current account deficit. We need to invest in technology and produce high value-added products,\u201d she said.<\/p>\n
\n\u201cSuch a boycott will not hurt Apple. But we have to rebuild ourselves. We need to identify niche sectors, which we can be known for, as South Korea has done in the past.<\/p>\n
\n\u201cWe also need an income distribution reform and to invest in agriculture to decrease the current account deficit. We are known for our agricultural diversity, yet are importing food. Now food prices will increase, leading to higher inflation,\u201d she said.<\/p>\n
\nAccording to Baki, it is not feasible to cut off Turkey\u2019s young population from US technology.<\/p>\n
\n\u201cFor this to happen, one should produce electronic goods of the same quality as Apple. This call has symbolic meaning, but it cannot be applied practically among young people, who would prefer high-quality technology,\u201d she said.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
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