Published: Fri, August 17, 2018
Markets | By Erika Turner

Turkey has more to ‘lose’ in Apple boycott

Turkey has more to ‘lose’ in Apple boycott

While the Brunson dispute appeared far from being resolved, Turkish President Tayyip Erdogan got a shot in the arm from Qatar's Emir, who approved a package of economic projects, investments and deposits after the two met in Ankara. Brunson is now on trial and held on house arrest, with few indications that Turkish officials intend to comply with the demands - despite US sanctions that were leveled against them two weeks ago.

Qatar pledged to invest $15 billion in Turkish financial markets and banks amid the massive collapse of its currency.

"In response to deliberated and continued trade tensions, Turkey has again raised tariffs on key us imports", Turkish Trade Minister Ruhsar Pekcan said in a statement.

Although preference for Apple products is strong, their already high prices are curbing demand, Yavuz said adding that the boycott "is expected to reduce Apple's performance in the country in the upcoming quarters".

Treasury Secretary Steve Mnuchin on Thursday said that the United States would levy more sanctions on the troubled Turkish economy if Ankara does not release an American pastor.

There was also optimism about better relations with the European Union after a Turkish court released two Greek soldiers pending trial. That followed a string of urgent steps Erdogan has taken to protect Turkey's economy, which was already under strain before the latest US tariffs and sanctions were announced.

"European safeguard measures should be sufficient to dissuade a surge in imports, but within that quota, various countries such as Turkey, India, China and Russian Federation can compete for market share", said Rosenfeld.

"So anything other than weapons purchases. would not hurt the United States".

That hasn't prevented Turkish officials from continuing to press their perceived leverage in Brunson.

Image Zoom
Image Zoom

One Turkish court has rejected an American Christian pastor's appeal to be released from house arrest and for his travel ban to be lifted, but an upper court is yet to rule on the appeal, his lawyer told Reuters on Wednesday.

Also on the same day, White House spokesperson Sarah Sanders said that "Turkey and specifically President Erdogan have treated pastor Brunson. very unfairly, very badly".

Pence had warned before the sanctions that the United States would slap significant sanctions on Turkey unless it releases Brunson "immediately".

Turkish Foreign Minister Mevlut Cavusoglu struck a somewhat conciliatory note, saying Turkey was ready to discuss its issues with the United States as long as there are no threats.

Earlier in the day, the currency had shrugged off USA comments ruling out the removal of steel tariffs on Turkey even if it frees an American pastor who lies at the centre of the complex feud between Washington and Ankara.

Mr Brunson has denied charges of espionage, but faces up to 35 years in jail if found guilty.

Erdogan also moved to strengthen ties with Germany, Turkey's biggest economic partner by far, accounting for about 37 billion euros ($42 billion) in bilateral trade a year ago.

Erdogan's government insists the Turkish judicial system must be respected, and Brunson's fate now rests with a court in Ankara that is expected to rule on the American's legal appeal for release this week.

After cancellation of Abadi's Tehran visit, Iraqi government praises relations with Iran
Johnson wrote in his article that British businesses should cut all trade ties with Iran and help the U.S. form a "united front". US Ambassador to Britain Woody Johnson said Iran needed to make tangible and sustained changes to behave like a normal country.

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