Globaltraded.com — Turkey is actively enhancing its role in global trade through a strategic expansion of Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs). With a robust portfolio of 23 FTAs currently in force, Turkey is on a path to fortify its industrial competitiveness and boost market access for its exporters across various regions. These efforts are a testament to Turkey’s commitment to reinforcing its global trade footprint and securing favorable terms for its goods and services in international markets.
According to the Turkish Trade Ministry, the country is making significant strides in negotiating comprehensive FTAs that aim to provide Turkish industries with competitive advantages and open up new markets for exporters. The ongoing negotiations and implementation of these agreements are not only strategic but also crucial for Turkey’s economic resilience in the face of global uncertainties.
Turkey’s trade agreements span across multiple regions, with ongoing approval and negotiation processes in place for countries such as Ukraine, Qatar, Lebanon, and Sudan. These agreements are designed to liberalize trade in key sectors, from agriculture to technology, providing a mutual boost to the economies involved.
In addition to FTAs, Turkey is pursuing PTAs with key partners like Iran, Azerbaijan, Uzbekistan, and Pakistan. These agreements are sector-specific, offering mutual advantages that drive significant economic contributions. For instance, the PTA with Iran facilitates trade in energy and industrial goods, while the agreement with Pakistan enhances cooperation in textiles and agriculture.
Efforts to expand Turkey’s PTA network are ongoing, with negotiations to establish new agreements with countries like the Maldives and Algeria. These talks reflect Turkey’s proactive approach to securing bilateral trade benefits and tapping into new markets.
Key Partnerships and Economic Integration
One of the most significant agreements currently in the pipeline is the Turkey-Ukraine FTA, which was signed in Kyiv in February 2022. This agreement, which is awaiting approval by the Ukrainian Parliament, is expected to liberalize a large portion of agricultural and industrial products, offering Turkish exporters a substantial market advantage. Once in force, it will mark a new era of economic integration between the two nations.
Similarly, the Turkey-Qatar Trade and Economic Partnership Agreement (TEPA), signed in 2018, is under negotiation to further liberalize trade in services, particularly in the digital and telecommunications sectors. This agreement aims to create new opportunities for Turkish service providers, especially in e-commerce, and enhance market access for Turkish businesses in Qatar.
Turkey is also on the verge of finalizing FTAs with Lebanon and Sudan. The FTA with Lebanon is expected to eliminate customs duties on mutual industrial products, fostering closer economic ties between the two countries. Meanwhile, the agreement with Sudan aims to reduce existing customs duties and gradually eliminate them, which would significantly benefit Turkish agricultural and industrial exports.
In addition to tariff reductions, the Turkey-Sudan Trade and Economic Partnership Agreement includes provisions for capacity-building and technical support, indicating Turkey’s commitment to fostering sustainable development in its trade partners. The agreement also aims to increase the bilateral trade volume to $10 billion, highlighting the significant economic potential of this partnership.
Looking ahead, Turkey is actively pursuing new FTAs with major economies like Japan and Indonesia, as well as with regional blocs such as the Gulf Cooperation Council (GCC). The negotiations with Japan focus on establishing an Economic Partnership Agreement, which is expected to deepen trade ties and enhance economic cooperation in various sectors, including technology and manufacturing.
Similarly, the talks with Indonesia, which began in 2017, are aimed at finalizing a Comprehensive Economic Partnership Agreement (CEPA). Although the negotiations were delayed due to the COVID-19 pandemic, they are now back on track, with both sides eager to conclude an agreement that will bolster trade and investment flows between the two countries.
The Turkey-GCC FTA negotiations, which began in Ankara earlier this year, are particularly noteworthy. The agreement seeks to increase Turkey’s exports to the Gulf region, especially in sectors such as agriculture and technology-intensive industrial products. This initiative underscores Turkey’s strategic pivot towards the Gulf region as a key market for its exports.
Turkey’s comprehensive network of trade agreements positions it among the top 10 countries globally with the most FTAs. This extensive network not only enhances Turkey’s global competitiveness but also provides its industries with the necessary tools to navigate the complexities of international trade.
These agreements are expected to facilitate and strengthen bilateral trade, thereby contributing to an increase in trade volume. By securing favorable terms for its exporters and opening up new markets, Turkey is well-positioned to sustain its economic growth and expand its influence in the global trade arena. (GT)
