Kurdish-Turkish ties stronger than ever - Kurdish Globe

The Kurdish Globe No. 349, Monday, April 23, 2012 7Germany a highlight at international trade showGerman companies seek investments in health care, power and recyclingAmong a floodof cheap Chineseproducts, Germancompanies tryconvincing theKurdish marketthat their productsare superior.An international tradeshow in Erbil on April16-17 was attended by30 German companiesshowcasing their productsin construction, asphalt,roads and bridges, civildefense, communicationand automotive industries.Although the prices ofGerman products werequite higher than the restof the products showcasedat the fair, the quality attutracted local businessmenand Kurdistan RegionalGovernment officials.Kawa Ahmed, the ownerof a local Kurdish tradiuing company that specialiuizes in electrical products,believes that the demandfor good quality productsis on a gradual increasein the region. “Five yearsago, we were selling fivecontainers of Chineseproducts till a containerof Japanese products wassold,” explained Ahmedas he walked through theexhibitor booths in thefair. “But now demand ongood quality products ismuch higher.”Ahmed argues that expupensive products costless compared to cheapproducts because they canbe used 10 times longerthan low-quality products,which in turns means thatone pays less.“This is true for projectsas well,” added Ahmed.“A project is implementeued and completed. A fewmonths later it will berenovated and a year lateranother new project forthe same project is implemumented once again. Thegovernment allocated afew budgets for the sameproject instead of one budguget.”Tahir Abdulla, DeputyGovernor of Erbil, admitsthis reality and says thatmost of the time projectsfail due to their inferiorquality. “Companies compupeted for government tenduders based on price, andthe cheapest proposal isaccepted,” Abdulla toldthe Globe at the trade fair.“This has prevented theuse of good quality materurial in the projects.”Abdulla says that sincethe gate of Europeancountries is now open tothe region, they shouldturn their back on cheapChinese products, which--besides the durability--cost less than low-qualityproducts.Despite his position, Abdudulla argues that seekingbetter material is a decisuA car presenter at one of the booths of the Erbil International Auto Show.sion for higher-ranking offuficials in the government.“The decision should bedirected from top to bottutom of government institututions, and when preparingthe project design at thegovernment offices theyshould consider both priceand quality of materialand products used--andthey should allow tendereuers to use good material inthe project.”Although at the fair theGerman exhibitors onlyshowcased their products,Volker Wilner, head of theGerman trade relations,argues that some Germancompanies are willing toinvest their own capital inthe region and “in the nearfuture we will develop aGerman village in Kurdistutan with German productsand material.”Izabel Knauf, member ofthe board of directors ofKnauf Construction Compupany with 24,000 employeuees worldwide, says thatalthough Kurdistan Regugion is only a quarter ofIraq, half of the constructution work of Iraq is donethere, “something that hasattracted the attention ofGerman companies.”According to Wilner, altuthough the West still seesKurdistan as part of unsustable Iraq, those companunies that have understoodthe reality are planningto invest in health care,power and recycling in theregion.BackgroundThe German Exhibitionwas organized by the Germuman AGEF organizationinside their building inErbil. The German Consusulate was opened in Februruary 2009. Before that,the German Iraqi Chambuber of Commerce wasestablished in 2005. Nowanother German trade andbusiness center is openedin Kurdistan. The KRGBoard of Investment haslicensed $80,228,712 ininvestment by Germancompanies.PRESS PHOTOTurkish eggs outsell Kurdish eggsKurdistan Region currurently produces more eggsthan the local demandcalls for and exports someof its domestically produduced eggs to other partsof Iraq. Regardless, moreTurkish eggs are consusumed due to higher demumand by consumers andlower prices compared todomestic ones.Numerous shops andstreet vendors welcomebuyers with red and whiteeggs at Sheikhalla Bazaarin the downtown Erbilmarket. Most shop owneuers and egg vendors arguethat demand for whiteeggs from Turkey is 10times greater than for domumestic red eggs.Noori Saeed Kanabi, ashop owner selling eggssince 1991, says TurkishPRESS PHOTOThis file photo depicts white Turkish eggs in a warehouse in Kurdistan.egg prices are lower thanKurdish eggs, which “haskept the balance of priceues in the market.” “If anegg import from Turkeyis banned, domestic eggprices would immediatelydouble,” Kanabi told theGlobe.According to KRG Miniuistry of Agriculture andWater Resources statistics,there are 10 poultry plantsall around Kurdistan thatproduce 88,177,000 eggsper year. There are sevenegg production plantswith a yearly productioncapacity of 467,380,000eggs.Other plants producedifferent types of eggsfor various purposes. Intotal, Kurdistan produces684,808,180 eggs yearly.According to RamazanMohammed Karim, directutor of Animal Resourcesat the Ministry Kurdistanneeds 646 million eggsper year, which meansthat it produces moreeggs than it really needs.He said excess eggs areexported to Baghdad andother cities in the southeuern Iraq.According to Karim,lack of border control andthe export of eggs to othercities prevents them fromidentifying exact demandand supply levels.Although Parliamentdecreed a law in 2008to protect domestic produduction, government hasnot yet implemented thisplan, at least in regardsto egg production, sincealthough the region produduces more eggs thanthe domestic demand,the government still allulows massive amounts ofeggs to be imported fromabroad.Mohammed Abbas, Secruretary General of ErbilGovernorate’s Economumists’ Council, said lowerprices and consumer tastehas made Turkish eggssurvive in Kurdistan markukets, which is why goveuernment has not bannedegg imports from Turkey.