Conexio consulting

THE STRATEGICAL PARTNERSHIP OF TURKEY AND US

The relations between Turkey and the USA have a history of more than 200 years. There is a strategical partnership between the two countries both in political and economical areas.

There are more than 500 American-origin companies in Turkey, a 5 billion $ investment and 600 employees in total. The trade volume between two countries is in a rising tendency since the visit of former president Barack Obama.

Exports of Turkey to USA doubles between 2010- 2016. There isn’t any agreement like Custom Union or Free Trade Agreement between Turkey and USA for the imported goods, the custom tax and additional custom taxes are issued according to the General Import Regime.

Looking from the point of international trade, USA has the supremacy in capital- intensive and technology-intensive commodity, and the main export items are consist of these goods.

Since 2002, Turkey attracts 174 billion $ direct foreign investment. All of the total USA has the share of 8%, second biggest investor in Turkey after Holland. The export numbers rise to 8 billion 64 million $ last year. There is a 90% increase comparing with the previous year.  The biggest contribution to these numbers are from iron-steel, automotive, defence, tobacco, ready-to-wear and outfits. Turkey jumps up to 29th place from 47th in the range of exporting countries to USA.

The decline in US export figures led to a surge in total trade volume between the two countries, spurred by $ 18-19 billion in spite of Turkey’s growing exports. There are stil steps to take in Turkey- USA economical relations.

In the scope of cooperation between Turkish Union of Chambers and Commodity Exchanges and USA Chamber of Commerce, until this day, regular high ranked officials have been visiting their counterparts, which supports the expansion of trade between the two countries. The activities are not restricted to Ankara and Istanbul, there are held all around Turkey. They will continue their studies in 2017 and the Chamber will visit American states and cities to inform about  the investment opportunities. In the same way, there will be activities in Turkey to define opportunities in USA.

Developing sectors like biotechnology, tourism, pharmacy, communication technologies and venture funds are also being promoted. The Trans-Atlantic Trade and Investment Agreement between the US and the EU is also being studied. There are studies also for Turkey to be the part of this agreement or to sign a free-trade agreement with USA. The strength of Turkey-US relations is very important for Turkey and the US as well, as for Europe and the Middle East.

Conexio is a consulting firm in Turkey based in Istanbul that can provide you services and support you in your activities in the region.

 

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