Improved Türkiye-US relations expected to give boost to trade

BRUSSELS

The bilateral trade volume between Türkiye and the United States may increase from last year’s $30 billion to $35 billion thanks to positive developments in diplomatic relations, says Murat Özyeğin, the chairman of the Türkiye-U.S. Business Council (TAİK).

There has been growing interest from the U.S. in Türkiye over the past eight months, Özyeğin told daily Hürriyet, adding that many American portfolio investors have put Türkiye on their radar again after the May elections.

Warmer diplomatic ties between the two countries will give a boost to Türkiye-U.S. trade, according to Özyeğin.

“I believe that we can increase our trade volume, which was at $30 billion last year, to $35 billion again next year with the positive momentum achieved recently,” he said.

The data from the Trade Ministry showed that the U.S. was Türkiye’s second-largest export market in January after Germany. Exports to the U.S. stood at $1.22 billion, while Türkiye’s imports from the U.S. amounted to $1.8 billion.

The U.S. accounts for some 6 percent of Türkiye’s overall export revenues, Yeğin noted.

New Jersey, New York, Texas, Georgia, California and Florida are the main export destinations in the U.S., with shipments to each of those states exceeding $1 billion, according to Yeğin.

He recalled that the Trade Winds Forum, organized in cooperation between the U.S. Department of Commerce and the private sector, will occur in May.

“We will meet with more than 50 exporters and government officials from the U.S. at the event that focuses on exploring potential collaborations and boosting trade volume.”

Trade Winds is the largest U.S. government-led trade mission and business development forum. It will take place in Istanbul.

Some 135 American companies have invested $60 billion in Türkiye to date, employing 100,000 people, Özyeğin also said.

The U.S. is the second-largest foreign investor in Türkiye after the Netherlands.

“We believe we can have more American companies operating in Türkiye and more U.S. investments.”

Many financial investors have put Türkiye back on their radar after Türkiye changed its economic policies in the wake of the elections held in May last year, Özyeğin noted, voicing optimism that portfolio investments from the U.S. are expected to increase.

California-based Pimco, one of the world’s biggest bond fund managers, has been buying Türkiye’s lira-denominated debt since the second half of last year, prompted by President Recep Tayyip Erdoğan’s change of economic policy after his victory in the general election in 2023, the Financial Times reported last month.