Automotive Exports November 2021

Turkey earmarks
new generation
free trade
deals to rev up
exports
Turkey is building a new generation of
comprehensive free trade agreements
(FTAs) to lift exports, strengthen the
competitiveness of the industry and attract
foreign capital, according to the nation’s
trade minister.
“Comprehensive FTA negotiations are
currently ongoing with Japan, Thailand
and Indonesia in the Asia-Pacific region,”
Mehmet Muş told a closing session of
the 34th Foreign Economic Relations
Board (DEIK) Ordinary Financial General
Assembly.
These agreements will include services,
investments and public procurement, Muş
said.
“While negotiations with Georgia and
Moldova continue to expand the scope
of FTAs, we continue negotiations with
Ukraine, making efforts to reach a result,”
the minister added. On the other hand, he
added, in Latin America, opportunities for
pacts with Peru, Ecuador, Colombia and
Mexico have been continuing.
The government has also ramped up efforts
to further develop cooperation with the
U.S. and China.
Turkey’s 12-month rolling exports exceeded
the long-awaited threshold of $200 billion
for the first time in July, exceeding both
the 2021-end target of $184 billion and the
$198 billion target set for 2022.
The January-July sales came in at $121.4
billion, marking a 35% rise from a year ago
and a 16.4% increase from the sevenmonth
figure of 2019 before the pandemic
hit. The outbreak led to a 6.26% drop in
2020 exports as Turkey closed the year with
$169.5 billion in foreign sales.
Imports were up 4.3% to reach $219.4
billion. The foreign trade gap widened
by 69.12% to $49.9 billion. Muş said the
government has been preparing a strategy
to increase exports to faraway countries,
“in order to bring the geographies we
call distant closer and to evaluate the
commercial and economic potential of
these geographies.”
He said two-thirds of Turkey’s exports are
to countries with an average distance of up
to 2,000 kilometers (1,243 miles), adding
Turkey can only get a 0.26% share from
the $8.2 trillion worth of imports from 17
countries far from its soil.
“We will consult with our businesspeople
when it reaches a certain point, aiming to
quadruple our exports to 17 countries with
an average distance of 8,650 kilometers
(5,375 miles).”
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