Turkish-Iraqi Business Council Issues Report On Iraq
ISTANBUL, AA - Turkish-Iraqi Business Council issued a report on Monday September 30 stating that the Gulf crisis cost Turkey 100 billion USD in 12 years including alternative costs and a possible U.S. operation against Iraq would have a cost of 150 million USD to Turkey.

The report indicates that Turkey's loss from the Gulf crisis was much higher than 44 billion 622 million USD, the amount so far calculated by adding up measurable items.

A possible U.S. operation against Iraq would cost Turkey 70 billion USD and this would reach to 150 billion USD including alternative costs in ten years.

The report states that Turkey's biggest loss caused by the Gulf War was in foreign trade. Turkey's loss of exports exceeded 17 billion USD in 12 years. After the Gulf War, Turkey lost the Iraqi market, its second largest market after Germany. Besides its losses in foreign trade, Turkey also faced losses in transportation, communication, oil pipe line, foreign contractor services and banking sectors because of the Gulf War.

Turkey suffered its biggest loss in tourism in 1991. The tourism sector's loss in 12 years was 6 billion 300 million USD.

The interruption of Kerkuk-Yumurtalik Oil Pipeline's operation and its low capacity operation in the following periods also cost Turkey 3.5 billion USD.

Transportation sector was also affected significantly and this sector lost about 4 billion USD of freight cost.

Revenues from live stock export, an important source of income for the region, dropped from 200 million USD to 10 million USD annually. Turkey's meat import also had to increase as a result of this situation. Foreign contractor services, which had an important place in Turkey's activities with Iraq, also suffered from the crisis.

The income expected to be obtained from these services was three billion 220 million USD less than it was estimated due to the shrinking in the Iraqi market.

According to the report, the Central Bank, Eximbank and the banking sector faced a loss of 2,54 billion dollars due to the closure of the Iraqi market, end of the trade and Iraq's losing its capacity of payment.

Noting that the Southeast Anatolian region was seriously affected from the Gulf Crisis, the report noted that Turkey lost 2.6 billion dollars in respect of regional trade and 2.5 billion dollars in respect of production.

Turkey's military expenses increased, money was spent for Iraqi refugees and the budget allocated to ensure the security due to increasing terrorist activities reached 1.8 billion dollars.

Besides the loss of production, employment and exports due to the investment that could not be taken because of imminent threat of war and escalating terrorism, is not clearly known.

The report pointed out that regional countries of Jordan, Egypt and Israel took significant aid as they were effected negatively from the Gulf crisis, stressing that the demands of Turkey were not met by the western countries.

The report stressed that Turkish economy would significantly suffer due to a possible intervention, adding that such an intervention can bring an additional burden of 15-20 billion dollars on Turkish economy in 2003.

The exports of Turkey to Iraq which exceeded one billion dollars annually can totally end and Turkey's exports to the Middle East countries which exceeded 3 billion dollars will also be negatively affected.

The oil prices which will tend to increase due to the war will significantly increase Turkey's oil costs. Turkey's crude oil cost will increase by 2.6 billion dollars.

Turkey's tourism incomes can decrease by 4-5 billion dollars, the investments and prosperity level will decrease and unemployment will increase.