Turkey Us Trade Agreements

Turkey-US Trade Agreements: Opportunities and Challenges

Turkey and the United States have a long-standing economic relationship, which dates back to the early days of the Turkish Republic. Over the years, the two countries have signed several trade agreements, aimed at promoting bilateral trade and investment. In this article, we will discuss the current state of Turkey-US trade agreements, the opportunities they provide, and the challenges they present.

Current State of Turkey-US Trade Agreements

The most significant trade agreement between Turkey and the United States is the U.S.-Turkey Business Council, which was established in 1985. The council aims to promote bilateral trade and investment by facilitating business-to-business contacts, conducting research, and hosting events. Another crucial agreement is the U.S.-Turkey Customs Union, which was signed in 1996. This agreement eliminated most tariffs in bilateral trade and aligned Turkey`s commercial regulations with those of the European Union.

Turkey and the United States are also members of several multilateral trade agreements, such as the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD). These agreements provide a framework for fair and open trade practices and promote economic growth and development.

Opportunities in Turkey-US Trade Agreements

Turkey is the world`s 18th largest economy and a major producer of steel, textiles, and agricultural products. Its strategic location, between Europe and Asia, makes it an essential gateway for trade and investment. The United States, on the other hand, is the world`s largest economy and a leader in innovation and technology. The two countries together offer significant opportunities for bilateral trade and investment.

The U.S.-Turkey Business Council provides a platform for American and Turkish businesses to identify potential trade and investment opportunities. The council also provides support to businesses seeking to enter new markets or expand their existing operations in either country.

The U.S.-Turkey Customs Union has been instrumental in boosting bilateral trade, particularly in the manufacturing sector. The elimination of tariffs has made Turkish exports more competitive in the U.S. market, providing opportunities for Turkish businesses to grow and expand.

Challenges in Turkey-US Trade Agreements

The current state of Turkey-US trade agreements faces several challenges in the wake of recent political developments. The U.S. government has imposed sanctions on Turkey over its purchase of Russian-made S-400 missile defense systems, which have strained bilateral relations. Additionally, the COVID-19 pandemic has had a significant impact on global trade, leading to disruptions in supply chains and reduced demand for certain products.

The Turkish government has also faced criticism over its human rights record, which has led to calls for sanctions by the U.S. Congress and the European Union. These developments could potentially impact future trade agreements between the two countries.

Conclusion

Turkey-US trade agreements offer significant opportunities for bilateral trade and investment. The U.S.-Turkey Business Council provides a platform for American and Turkish businesses to identify potential opportunities and support their expansion. The U.S.-Turkey Customs Union has been instrumental in boosting bilateral trade, particularly in the manufacturing sector.

However, recent developments, including political tensions and the COVID-19 pandemic, have presented challenges to the trade relationship between the two countries. With ongoing negotiations and efforts to strengthen bilateral relations, both countries have the potential to overcome these challenges and continue to build a strong economic relationship.