Trkiye eyes $60 billion trade with Germany, calls for overhaul of customs union

Valuable businessmen from Trkiye and Germany will hopefully reach the target of $60 billion in trade volume between the two countries in a few years, Trade Minister Mer Bolat said on Saturday, highlighting the extent of links and calling for an update of the customs union.

The minister was in Berlin to attend the 20th anniversary program of the Turkish-German Chamber of Commerce and Industry (TD IHK).

On this occasion, Bolat assessed Turkish-German trade relations, shortly after the visit of German President Frank-Walter Steinmeier to Ankara and official contacts with President Recep Tayyip Erdoan.

Erdoan on Wednesday expressed hope that Ankara and Berlin will not encounter obstacles and will focus on discussions on joint production projects, especially in the defense sector.

He said Trkiye aims to increase the volume of bilateral trade with Germany, which exceeded $50 billion, to $60 billion in a balanced manner. The president said that as NATO allies, Ankara and Berlin enjoy multifaceted relations in various fields, from security to economy, culture and science.

Bolat, in a message published on his social network account German chancellor.

“Today, among its 452 members, about 154 chambers and exchanges from Trkiye are represented. The other members consist of companies from Trkiye and Germany,” he noted.

“German-Turkish economic relations are on a promising trajectory, with bilateral trade volume reaching $50 billion in 2023. Germany is a significant foreign direct investor in Trkiye, with direct investments totaling $687 million in 2023 Furthermore, the presence of more than 8,000 German companies in Trkiye underlines the strong confidence in our bilateral economic relations,” he added.

“People of Turkish origin and Turkish citizens in Germany play a central role in our bilateral relations, with around 80,000 Turkish entrepreneurs generating an annual turnover of 80 billion ($85.57 billion) euros and employing 500,000 people,” Bolat said.

As part of his speech in Berlin, he recalled the strong growth of the Turkish economy of 4.5% in 2023 and the per capita income of 13,110 dollars, emphasizing that all this was achieved amid crises such as the troubles of the global economy. and geopolitical tensions.

Evaluating Trkiye's position in a number of sectors such as the textile and clothing industry, in which the country ranks seventh in the world, the tourism industry in which it ranks fourth, and the automotive where it ranks 13th, Bolat said: “We have succeeded in becoming the No. 1 supplier to the household appliances and electronics industry in Europe.

“In doing so, we have received great support and contributions from international investors, especially Germany. We thank them very much,” he stressed.

“Trkiye has received $260 billion in international direct investment over the past 20 years. Germany's share of this amount is $25 billion. This represents 8.5% of the total. Let's hope this This figure will increase further in the coming period,” the minister said.

He also emphasized that the German-Turkish Chamber of Commerce and Industry constitutes an important bridge in this regard.

Customs number update

Furthermore, Bolat said that Turkish citizens who have lived and worked in Germany since 1961 constitute the most important link between the two countries through their “social bond”, and stressed that they have made a significant contribution to the German economy by providing 500,000 dollars. jobs in the companies they created.

He said that the customs union between Trkiye and the EU has been in force for 28 years and has been successfully implemented.

According to the minister, this has brought significant benefits to both sides, playing a major role in improving the competitiveness of Turkey's economy, industry, services and agriculture.

“Last year, the total trade volume between the two sides amounted to $211 billion, including $104.5 billion of Trkiye's exports to the EU and $105.5 billion of EU exports to Trkiye Germany is the leading exporter among EU countries and the EU is Trkiye's most important trading partner,” he explained.

However, Bolat expressed that there had been some difficulties during the process of implementing the customs union.

“In particular, when the EU concludes free trade agreements with third countries without us being at the table, this puts us at an economic disadvantage,” he said, adding that the free movement of Turkish citizens, who should have been part of the agreements for some time, a long time, has unfortunately not been realized to date.

He cited an example of the visa problems faced by Turkish citizens in recent years, who had to wait a long time to get an appointment, as well as the problems faced by truck drivers, thus hindering the movement of goods.

Bolat said Germany could play an important role in renewing the customs union between Trkiye and the EU.

“We expect from our German friends, the German government and the German business community that the shortcomings of this 28-year-old customs union regime between Trkiye and the EU will be resolved, the extent of the services sector and investments will be included, and negotiations for the modernization of the customs union will begin as soon as possible,” he concluded.

The Sabah Daily News Bulletin

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