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Satterfield: Turkey Must Meet Debt Payments to US Pharmaceutical Firms

Satterfield: Turkey Must Meet Debt Payments to US Pharmaceutical Firms

Thursday, 24 September, 2020 - 07:15
FILE PHOTO: Acting US Assistant Secretary of State for Near Eastern Affairs, David Satterfield, prepares ahead of his address to the 11th Annual International Institute for National Security Studies (INSS) Conference in Tel Aviv, Israel January 31, 2018. REUTERS/Amir Cohen

US ambassador to Turkey David Satterfield said on Wednesday companies will consider abandoning Turkish market if it fails to fully meet debt payments to US pharmaceutical firms.

Addressing a trade conference streamed online, Satterfield said debts owed by government hospitals to pharmaceutical companies in the US and elsewhere had risen to around $2.3 billion from some $230 million a year ago.

Satterfield said US Commerce Secretary Wilbur Ross had raised the issue with Turkish President Tayyip Erdogan and Finance Minister Berat Albayrak a year ago and was assured that arrangements would be made for prompt payment.

A year later those companies were being asked to accept significant reductions in the amounts owed, Satterfield said, adding there will be consequences for non-payment of debt or reductions in payment, Reuters reported.

“Companies will consider departing the Turkish market or will reduce exposure to Turkish market. This is not a direction which serves the interests of Turkey,” he said.

Bilateral trade amounted to some $21 billion last year and the NATO allies have said they aim to lift that to $100 billion.

Yet there are hurdles including US tariffs on Turkish steel, and Ankara’s purchase of Russian missile defenses last year that prompted Washington to oust Turkey from a consortium producing F-35 jets.

At Tuesday’s conference hosted by the US-Turkey Business Council, Turkish Trade Minister Ruhsar Pekcan said the steel tariffs and the removal of Turkey from a US trade preference program have damaged efforts to reach the trade goal.

“Such policies by the US severely limit Turkish firms’ ability to enter the US market,” she said.

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