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CONTENTS:
      • Davutoglu Dismisses ‘Axis Shift’ for Turkey
      • Turkey Considers Downgrading its Representation in Israel
      • Turkey Set to Anchor Regional Trade Alliance
      • Kazakhstan, Turkey Mull 'Action Plan' for Kyrgyzstan
      • Turkey’s Foreign Policy Sparks Debates in EU
      • TUSIAD Highlights

Davutoglu Dismisses 'Axis Shift' for Turkey
 
Criticism against Turkey suggesting that it has been moving away from the Western world because of recent foreign policy moves is without merit, Foreign Minister Ahmet Davutoğlu has stated, underlining that principles are the backbone of Turkey's foreign policy. "If the ground of the world is changing, then we cannot stand fixed on that ground, but we will always stand firm on our principles," Davutoğlu was quoted as saying late on Thursday. He listed those principles as peace, stability, welfare, security, Turkey's policy of having "zero problems with neighbors" and its co-sponsorship of the UN-led Alliance of Civilizations initiative.

The minister's remarks on the current debates questioning the orientation of Turkey's foreign policy came at a ceremony held in Istanbul on Thursday evening where Davutoğllu received the Woodrow Wilson Award for Public Service for his efforts in "advocating strengthening relations with Turkey's hinterland and increasing its importance in the region and throughout the world." The public service award is given by the Washington-based Woodrow Wilson International Center for Scholars to individuals who have served with distinction in public life.

"We stand by whoever stands by global peace. We favor whoever stands by regional peace. We stand against whoever is taking steps that threaten peace. This is where we hold on in idealism," Davutoğlu said. "In the last seven years, neither the president [Abdullah Gül] nor the prime minister [Recep Tayyip Erdoğan] used irrational political language. Nobody can say we assumed an ideological or mono-cultural approach," he declared. "In this regard, those who believe today that we turned towards the East should not forget that the EU [membership] negotiation process has started and many comprehensive reforms have been carried out during this period. Those who think today, 'Where is our direction moving?' should not forget that Turkey has made the greatest contribution to NATO," the minister further stated. /Today's Zaman/

Turkey Considers Downgrading its Representation in Israel
 
Despite public expectations for a strong reaction, the Turkish government will be cautious in implementing measures against Israel if Tel Aviv fails to issue a formal apology over its deadly flotilla raid, diplomatic sources stated Wednesday. "It's always easy to ruin relations, and it's always difficult to repair them. We are at the moment analyzing the possible negative effects of the proposed measures."

A road map has been prepared that lists some measures that could be implemented - including downgrading Turkish representation in Tel Aviv to the level of chargé d'affair - if Israel does not respond positively to Ankara's expectations. These expectations include a formal apology, compensation for victims on the aid ship Mavi Marmara, the return of the three Turkish ships in the flotilla, the establishment of an impartial inquiry commission into the incident and the removal of the Gaza blockade. Turkish diplomats said, however, that the only one of these conditions Israel will readily accept is to return the ships after they are unloaded.

Further steps, potentially including the cancellation of military and defense agreements with Israel, the suspension of ongoing economic and energy projects and the cutting of diplomatic ties, appear on the horizon if Israel does not respond to Turkey's demands. "We are now assessing these steps legally and politically. Can we annul the signed agreements? If we do this - especially for defense and military deals, as they also concern the Turkish Armed Forces - would it also hurt our interests?" diplomatic sources mused at the meeting Wednesday. Turkey and Israel signed two important military deals in the mid-90s, one on defense industry cooperation and the other on military cooperation. Since then, military-defense ties have grown so much that Israel has nearly become Turkey's number-one arms supplier.

On the political field, the most obvious reaction to be taken against Israel would be reducing diplomatic representation to the level of chargé d'affair, which may not be upgraded for some time. Turkey did the same in the early 1980's in response to Israel's invasion of Lebanon, after which it took nearly a decade to appoint an ambassador to Tel Aviv. /Hurriyet/

Turkey Set to Anchor Regional Trade Alliance
 
Turkey's commercial ties with Arab countries, which have blossomed in the past few years, gained enormous momentum with a recently announced plan to build a regional trade alliance. This growing cooperation, however, has sparked different reactions throughout the world, with business circles from participant countries warmly welcoming the news while Turkey's traditional Western allies cited concerns that the country is turning towards the East.

"We want a vehicle to leave Turkey and be able to reach Morocco without stopping at any border gates," said Foreign Minister Ahmet Davutoğlu during a meeting last week, when he announced the free trade zone project between Turkey, Jordan, Lebanon and Syria, envisioning an EU-like community in the Middle East. The four countries signed a declaration last week to set up a free trade zone without visa restrictions and to establish a high-level cooperation council. The decision was received enthusiastically by the Turkish business community, who hope to benefit from Turkey's improved economic ties with regional countries, boost exports, and contribute to economic growth.
 
The combined gross domestic product (GDP) of the four countries is expected to total $1.13 trillion this year, according to International Monetary Fund (IMF) estimates. Turkey has the largest economy in this proposed alliance, with an expected GDP of $932.2 billion by the end of the year, which would make the country the 16th largest economy in the world. Trade volume between Turkey and the Arab world climbed to $28.8 billion by the end of 2009, from $7 billion in 2002, a more than fourfold increase. Currently more than one-fourth of the country's overall exports go to Arab countries. But, contrary to ongoing debates, European countries still play the greatest role in Turkey's foreign trade, though they purchased 50 percent less goods from Turkey last year due to still-ongoing economic troubles. /Today's Zaman/

Kazakhstan, Turkey Mull 'Action Plan' for Kyrgyzstan
 
Turkey and Kazakhstan discussed an 'action plan' of regional support for Kyrgyzstan after a key referendum is held in the turbulent country, Turkey's foreign minister said Monday. "Holding the June 27 constitutional referendum so that the current interim administration gains legitimacy from the people is very important for us," Ahmet Davutoğlu stated after talks with Kazakh President Nursultan Nazarbayev and Foreign Minister Kanat Saudabayev.

The talks focused on the diplomatic, economic, and security aspects of the support that regional countries may lend to Kyrgyzstan, he explained, adding that the issue would be discussed with "other friendly and brotherly countries." Davutoğlu said he and Saudabayev planned to visit Kyrgyzstan after the referendum "if the conditions permit" to "talk with the people directly to see what we can do and launch the action plan." Turkey and Kazakhstan discussed Kyrgyzstan's turmoil in their capacity as the current chairs respectively of the Conference on Interaction and Confidence Building Measures in Asia and the Organization for Security and Cooperation in Europe.

Ethnic violence in the south of the Central Asian country left hundreds dead and forced thousands from their homes this month following violent street protests that ousted President Kurmanbek Bakiyev in April. Kyrgyzstan's interim leader, Roza Otunbayeva, said earlier this month that a nationwide referendum planned for June 27 on constitutional reforms after Bakiyev's ousting would "take place at the scheduled time." /Hurriyet/

Turkey's Foreign Policy Sparks Debates in EU
 
Talk of Turkey's 'axis shift' away from the West has prompted European Union officials to reconsider their policies on Turkey's EU membership process. EU members have started to question whether they risk losing Turkey following the latter's vote against a US-backed UN Security Council resolution for tougher sanctions on Iran and its harsh reaction against the Israeli flotilla raid that left nine people dead.

The foreign ministerial meeting of the 27-nation bloc was joined by both EU foreign policy chief Catherine Ashton and Tony Blair, the Middle East envoy representing the quartet of international powers -- the United States, the European Union, the United Nations and Russia -- seeking Mideast peace. The meeting was to discuss a strategic perspective on Turkey, yet due to long debates on Gaza this discussion was shorter than planned.

Two approaches to Turkey's vote against the Iran sanctions emerged during the meeting, diplomatic sources stated. While one group, angry with Turkey's vote, argued that the process of Turkey's EU bid should be "frozen," another group argued that it was the EU's fault for leading Turkey to move away from the bloc due to its half-hearted approach toward the candidate country. The first group is not numerous, but their voices are "loud," diplomatic sources highlighted.
 
EU diplomats said that a longer debate was expected to be held on Turkey and its membership process during a foreign ministerial meeting next month. Last week Italian Foreign Minister Franco Frattini stated that there is a need to "reflect" on the errors made by Europe in relation to Turkey. One of them is "pushing the Turks away towards the East instead of trying to attract them towards us," Frattini said in an interview with the German daily Frankfurter Allgemeine Zeitung. /Today's Zaman/

TUSIAD Highlights
 
A delegation from TUSIAD Headquarters in Istanbul, including Chairwoman Ümit Boyner, Vice-Chair Tayfun Bayazit, Board Member Volkan Vural, and Soli Özel, advisor to the Chairwoman, arrived in Washington on Thursday for several high-level meetings. The busy day began with a working luncheon involving several policy experts and Turkey-watchers. This was followed by a panel discussion hosted by the Brookings Institution entitled "U.S.-Turkish Relations: A Perspective from the Private Sector" moderated by Ömer Taspınar and including speeches from Mrs. Boyner and Mr. Özel that focused on Turkey's new foreign policy and the recent crises in U.S.-Turkey relations. Mrs. Boyner stressed the need for effective communication between the two nations in addition to arguing against a Turkish 'axis-shift' away from the West.
          
Following a brief Q&A session the delegation, including TUSIAD US Representative Abdullah Akyuz, went to the State Department to meet with US Secretary of State Hillary Clinton and Philip Gordon, Assistant Secretary of State for European and Eurasian Affairs, among other State Department officials. The delegation held a press conference at the TUSIAD-US office before their return to Turkey.