It was announced this week that Turkey’s Economy Minister has proposed the upcoming creation of a working group for a US-Turkey Free Trade Agreement (FTA). This overlapped a visit to Washington by a Turkish delegation which included a US Chamber of Commerce hosted event in honor of Turkish Deputy Prime Minister Ali Babacan on Wednesday. The recurring theme in that event by seemingly all the speakers was the need to expand US-Turkish bilateral trade. Certain indicators albeit perhaps anecdotal can lead one to think that this relationship will only grow over time.
Most measures indicate that Turkey’s economy has been booming in the past decade. Indeed, it is now the world’s 17th largest. According to the US Trade Representative’s Office, US exports to Turkey increased 38% in 2012 alone, and the general figure is 292% from 2000. However, anybody who visits Turkey will likely notice that US commercial penetration is probably not where it should be and Turkey’s business footprint in the US is still somewhat faint. More can clearly be done.
As Turkey works to expand its economic influence throughout the globe, it is only natural that trade with the United States will increase. Furthermore, it is to be expected that US interest in Turkish trade will also expand as Turkey will become a more critical regional and global player. Given Turkey’s goal of becoming a top 10 economic power by 2023, Turkey and the US may find their economic ties increasingly indispensable and needing of expansion.