Business relations are not expected to be affected by the political tensions that hit Egyptian-Turkish relations recently. The tensions reached their peak this week when Egypt reduced its diplomatic representation in Turkey to chargé d'affaires level and transferred Egypt's ambassador to Turkey to the Foreign Ministry in Cairo. Turkey responded by expelling the Egyptian ambassador to Turkey, who had already been summoned to Cairo since 15 August for consultations. However, the decisions would have only a minor effect on the business relations between the two countries, according to Gamal Bayoumi, secretary-general of the Arab Investors Union. “Economic interests are not necessarily affected by political ups and downs,” he told Al-Ahram Weekly. Akilla Ataseven, chairman of the Egyptian-Turkish Business Association, said that businessmen separated political from economic matters. “Politics deals with daily events, while the economy focuses on the needs of people and society. We all agree that there should not be a link between the two,” he said. He also pointed to the historically strong relations between the two countries. Bayoumi also hailed the statement issued by the Egyptian Foreign Ministry, which had underlined the relationship between the two peoples. “We will not and cannot cut off relations with the Turkish people. In addition, [Turkish Prime Minister Recep Tayyip] Erdogan will not stay in office forever, but the relations between the two peoples will,” he commented. In a press conference in Cairo on Saturday, Foreign Ministry spokesman Badr Abdel-Atti stated that the people and government of Egypt expressed their appreciation of the Turkish people and blamed the Turkish government for the downturn in bilateral relations. The Egyptian government decided to expel the Turkish ambassador to Egypt, Huseyin Avni Botsali, on Saturday. The step was taken in response to Erdogan's renewed criticism of Egypt's leaders and his describing the situation in Egypt as “a humanitarian drama” last week. Abdel-Atti described Erdogan's statement as “a new episode in a string of instances and statements issued by them [Turkey] that reflects an unacceptable determination to challenge the will of the Egyptian people and a lack of respect for their legitimate choices and interference in the internal affairs of the country.” Turkey's ruling Justice and Development Party (AKP) had strongly backed the election of Mohamed Morsi as an example for the Arab world of a democratically elected Islamist leader. Since Egypt's 30 June Revolution, it has become one of the fiercest critics of Morsi's removal, calling it an “unacceptable coup” by the army. However, on the economic level, the situation between the two countries has been different. Following Morsi's ouster on 3 July, Egyptian and Turkish businessmen confirmed the importance of economic relations between the two countries in a conference organised by the Egyptian Businessmen's Association in collaboration with the Egyptian-Turkish Business Council and the Egyptian-Turkish Businessmen's Association. Turkish businessmen said at the conference that they wished to increase Turkish investment in Egypt to reach $5 billion by 2017. However, other projects have been slowed down due to the events following the 30 June Revolution, such as the deal the Egyptian and Turkish governments were working on to link the Egyptian stock market and the Borsa Istanbul. A memorandum of understanding had been signed in June this year to develop a framework for connections between the two markets. “The project was not cancelled. It was slowed down for technical reasons that have nothing to do with political developments,” Ataseven said. Total trade between the two countries amounted to $5.2 billion in 2012, of which imports from Turkey amounted to $3.6 billion and Egyptian exports amounted to $1.6 billion. Turkish investments in Egypt include about 300 factories and companies, mostly associated with the garment industry, employing 54,000 Egyptian workers. The Egyptian-Turkish relationship has been strong for many decades. The 2005 free trade agreement between the two countries, which came into effect in March 2007, also boosted economic cooperation. Trade volume in 2010 was $3.1 billion compared to $1.1 billion in 2006. After the fall of former president Hosni Mubarak, relations entered a new phase. Turkey was one of the first countries to congratulate Egypt for its achievements after the 25 January Revolution. After the election of Morsi as president in 2012, Egyptian-Turkish relations moved to a new level. Under Morsi's rule, Turkey signed 27 cooperation agreements with Egypt, notably during Erdogan's visit to Cairo last year. However, after the 30 June Revolution, Erdogan's statements and policies towards Egypt were widely regarded as interfering in Egypt's internal affairs. The Egyptian interim government regards Turkish efforts on the international stage, such as its attempt to convene a meeting of the UN Security Council to discuss Egypt, to be an effort to undermine Egypt's national security. This hostile stance towards the Egyptian people and the insults that have been directed towards the sheikh of Al-Azhar, the highest authority of moderate Islam in Egypt and the Muslim world, has had a negative impact on the relations between the two countries. Erdogan's hosting of the Muslim Brotherhood International Alliance in Istanbul has also been regarded as unacceptable by the Egyptian government and people. Amid the political tensions, hopes have nevertheless arisen of a breakthrough based on the historic relations between the two countries. Turkish President Abdullah Gul commented on the Egyptian decision to withdraw its ambassador to Ankara by saying that “I hope our relations will once again get back on track.” Bayoumi said that the Turkish ambassador to Egypt had been expelled before twice in 1954 under former president Gamal Abdel-Nasser and in 1961 after the dissolution of the unity between Egypt and Syria. “The two incidents, also the results of provocative Turkish stands, did not affect the relations between the two countries,” he said. Ataseven described the recent developments as a “summer cloud” that would soon pass. “The relations that bind the two countries together are too strong to be shaken by political events,” he concluded.
