ISTANBUL - State Minister Kursad Tuzmen said on Thursday that it was difficult to compensate all losses in exports by the rise in foreign exchange rates.
Responding to questions of journalists after the panel discussion on ''increasing administrative capacity and e-customs'' in which EU member and candidate countries' representatives participated, Tuzmen said that ''we can only compensate part of the losses which had earlier taken place in exports due to low foreign exchange rates. All artificial things have to return to their essence some day. We must have a stable environment in which there are no high fluctuations in foreign exchange rates.''
Noting that Turkey was a developing country, Tuzmen said that the main issue in developing countries was to decrease the input costs. ''We have studies on this issue, but they take time,'' he said.
When asked about the criticisms saying that the rise in foreign exchange rate was not sound and it stemmed from external factors, Tuzmen stated that ''in fact, internal factors mainly caused the rise. The market advances to that balance. Certainly there will be fluctuations. Our exporters have an advantage as they know very well the market costs. We have the opportunity to serve Europe in a very short time and we try to use our advantage now.''
Upon a question on effect of increase in exchange rate to the target of exports, Tuzmen said that Turkey would exceed target of exports which were earlier determined as 40 billion U.S. dollars.
Tuzmen said that 2003 would pass with such rises and falls and stated that what was important was to also carry on rate of increase in exports in 2004.
Noting that exports from automotive industry and by-industry exceeded 6 billion U.S. dollars, Tuzmen said that textile and ready-to-wear clothing sectors continued their successes in exports.
Tuzmen said that the important thing was to carry on trend of increase and exceed 50 billion U.S. dollars in 2004.
Tuzmen noted that there would be 44-45 billion U.S. dollars of exports in 2003.
TUZMEN: ''TURKEY WOULD HAVE HAD REACHED 4 BILLION U.S. DOLLARS EXPORTS FIGURE IN IRAQ IF THERE WAS NOT WAR''

Tuzmen said that they wanted chaos atmosphere in Iraq to end soon, stressing that, ''in fact Turkey would have had reached four billion U.S. dollars exports figure in Iraq if there was not war.''
Tuzmen replied to questions of reporters.
Stating that chaos atmosphere in Iraq negatively effected increase in exports, Tuzmen said, ''we want chaos atmosphere in Iraq to end soon. Despite this, we have approximately 120 million U.S. dollars monthly exports. We target to reach one billion U.S. dollars figure. Those will be the best figures. In case a stable administration takes place there, there would be the most appropriate atmosphere for peace.''
When a journalist asked whether or not there was concern in exporters that would make investment in Iraq, Tuzmen said, ''Turkish exporters always preferred to be in risky atmospheres. This is behind our success in construction.''
Replying another question, Tuzmen said there would be a fair in Baghdad.
When a journalist recalled that there were criticisms in EU progress report that there were difficulties in practice, Tuzmen said, ''customs and foreign trade organizations were reported to be the most leading institutions in EU progress report.''
(AY-AÖ) 30.10.2003