by Abdulkadir Emin Önen
TODAY'S ZAMAN
Energy cooperation agreements were signed between Turkey and China during President Abdullah Gül's six-day visit to China in June 2009. This transaction marked the beginning of a new period between the two countries.
The Memorandum of Understanding on Energy Cooperation signed between the National Energy Administration of China and the Ministry of Energy and Natural Resources of the Republic of Turkey in Beijing on June 25, 2009 is mainly a business agreement. It defined an energy-oriented road map and the scope of cooperation between the two countries.
According to the memorandum, the areas of cooperation include renewable energy, nuclear energy, energy conservation and efficiency, energy production systems manufacturing, modern technologies, boron technologies and hydrocarbon research and development.
The memorandum of understanding consists of six items. It foresees long-term mutual cooperation in the energy sector and is predicated on mutual interest and a win-win strategy. It also envisions two-dimensional cooperation, with one taking place at the international level and the other between private sectors. It also foresees increasing information and technology exchange and dialogue. On the other hand, the memorandum has a constructive quality and seeks to create opportunities for both sides.
When it comes to the significance of the agreement, it can be described as a turning point in Turkish foreign policy and in particular in the Asia policy Turkey has been observing since 2003. Under the Justice and Development Party (AK Party) government, Turkey reshaped its Asia policy to include an economy-energy-oriented strategy for the region. This is obvious from the 25 to 30 percent increase in the trade volume between Turkey and Asian countries between 2003 and 2009. Moreover, when we look at the number and nature of visits to Asia, we see that there has been an incomparable increase in Turkey's interest in the region. These visits not only increase diplomatic visibility but also yield substantial advantages, which is evident in the memorandum of understanding as well. This memorandum was signed during President Gül's visit to China on June 23-29, 2009. Gül's visit marked the first presidential visit to China since President Süleyman Demirel's in 1995.
When we look at Turkey's new energy policy created during the AK Party period, there are critical points that stand out. First and foremost, it should be known that Turkey is no longer an energy bridge. Instead it is adhering to a strategy to become an energy corridor and an energy terminal.
It is observing a multilateral policy on becoming an energy corridor not only between north and south but also between east and west. In this way, Turkey is seeking to become a global energy actor by taking part in major global and regional energy projects (e.g., Nabucco, Baku-Tbilisi-Ceyhan [BTC]).
China is Turkey's biggest trade partner in the Far East and Turkey's third-biggest export market in the world. When we examine bilateral trade relations, we see that despite the global financial crisis, the trade volume between the two countries increased by 40 percent in 2008 compared to the year before. Moreover, when we analyze data on trade volume between Turkey and China, we develop a better understanding of the improvement that has taken place under the AK Party government. According to the figures, while the trade volume between the two countries was $1.4 billion in 2002, it increased tenfold between 2002 and 2008. It is currently around $14 billion to $15 billion. In brief, this agreement is an outcome of the increasing business ties between Turkey and China and is in line with developing business relations.
It is evident that the agreement signed between Turkey and China will contribute to the development, diversification and consolidation of bilateral relations and facilitate the development of relations in the area of cooperation. The cooperation agreement is also significant because it will provide an opportunity for bilateral relations to advance to a more strategic level. We can especially see from Turkey-Russia relations that developing energy relations facilitates the development of political relations. Strategically, cooperation between China, which is one of the five permanent members of the UN Security Council with veto power and a candidate for the role of superpower, and Turkey in the field of energy could yield opportunities to develop cooperation in global and regional policy as well.
Another crucial point is that once China makes investments in Turkey in line with this agreement, the trade balance between the two countries, which is against Turkey, will improve in Turkey's favor. When we consider that Turkey has a trade deficit with China, which is one of the biggest markets in the world and is a global manufacturing center, encouraging Chinese capital to invest in Turkey will play a major role in closing the trade deficit.
On the other hand, when we consider the situation from China's perspective, developing energy cooperation with Turkey will give China the opportunity to use Turkey as a logistic hub for its Middle East initiative. Turkey's involvement in projects with a superpower candidate like China in the Middle East, which is the most strategic location for global energy, will provide major advantages for Turkey not only in the energy sector but also in global policy.
In the end, the energy cooperation document is a turning point in bilateral relations in general and especially in energy relations. With the assumption that the main actors of international energy policy will be the countries that can provide energy security, the memorandum of understanding is a strategic milestone in Turkey's ability to ensure energy security.
That is, China's investment in Turkey's energy sector will most likely help Turkey meet its energy demand and contribute to its energy security policy. China's investment in renewable energy and nuclear energy will enable Turkey to diversify its energy sources. In this way, energy is the most important field of cooperation between the two countries. On the other hand, Turkey believes it is a good strategy to develop energy cooperation with China to make its increasing energy demand sustainable, to diversify its sources and to make progress in the area of renewable energy. The energy cooperation Turkey has developed with China is based on mutual interests and a win-win strategy. Turkey is implementing the multilateral approach in its foreign policy in its energy policy as well.
In the final analysis, Turkey's development of cooperation in the energy field will have advantages for everyone from the state to the individual.
AK Party Sanliurfa deputy Abdulkadir Emin Önen is chairman of the Turkish group in the Asian Parliamentary Assembly and deputy chairman in charge of external affairs of the Justice and Development Party (AK Party).
