The valuable businesspeople of Türkiye and Germany will hopefully reach the target of $60 billion in trade volume between the two countries in a couple of years, Trade Minister Ömer Bolat said on Saturday, highlighting the scope of ties and calling for a customs union update.
The minister was in Berlin to attend the 20th Anniversary Program of the Turkish-German Chamber of Commerce and Industry (TD IHK).
On the occasion, Bolat evaluated the Turkish-German business ties, shortly after the visit of German President Frank-Walter Steinmeier to Ankara and official contacts with President Recep Tayyip Erdoğan.
Erdoğan on Wednesday expressed hope Ankara and Berlin would not encounter obstacles and focus on discussing joint production projects, particularly in the defense sector.
He said Türkiye aims to expand bilateral trade volume with Germany, which has surpassed $50 billion, to $60 billion in a balanced manner. The president said that as NATO allies, Ankara and Berlin have multifaceted relations in various fields, from security to economy, and culture to science.
Bolat in a post on his social media account on X, formerly Twitter, recalled the establishment of TD-IHK in the German city of Cologne 20 years ago with the participation of President Erdoğan and Gerhard Schröder, the former Chancellor of Germany.
"Today, approximately 154 Chambers and Exchanges from Türkiye are represented among its total of 452 members. The other members consist of companies from both Türkiye and Germany," he noted.
"Turkish-German economic ties have been on a promising trajectory, with a bilateral trade volume of $50 billion in 2023. Germany stands as a significant foreign direct investor in Türkiye, with direct investments totaling $687 million in 2023. Moreover, the presence of over 8,000 German companies in Türkiye underscores the robust confidence in our bilateral economic relations," he added.
"People of Turkish origin and Turkish citizens in Germany play a pivotal role in our bilateral relations, with approximately 80,000 Turkish entrepreneurs generating an annual turnover of 80 billion euros and employing 500,000 individuals," said Bolat.
As part of his speech in Berlin, he recalled the robust growth of the Turkish economy of 4.5% in 2023 and the income per capita of $13,110, emphasizing that all of these were achieved in the midst of crises such as the troubles of the world economy and geopolitical tensions.
Evaluating Türkiye's position in a number of sectors such as the textile and apparel industry, in which the country ranks seventh globally, tourism industry in which it holds fourth place, and automotive where it ranks 13th, Bolat said that, "We have managed to become the No. 1 supplier in the white goods and electronics industry in Europe."
"While doing these, we received great support and contributions from international investors, especially Germany. We thank them very much," he noted.
"Türkiye has received $260 billion of international direct investment in the last 20 years. Germany's share in this is $25 billion. That is 8.5% of the total. Hopefully, this will increase further in the coming period," the minister said.
He also highlighted that the German-Turkish Chamber of Commerce and Industry constitutes an important bridge in this regard.
Moreover, Bolat stated that Turkish citizens who have been living and working in Germany since 1961 have formed the most important bond between the two countries with their "social bond," and noted that they have made a significant contribution to the German economy by providing 500,000 jobs with the businesses they established.
He said that the customs union between Türkiye and the EU has been in effect for 28 years and has been implemented successfully.
It has brought significant benefits to both sides, playing a major role in enhancing the competitiveness of the Turkish economy, industry, services sector and agriculture, according to the minister.
"As of last year, there was a total trade volume of $211 billion between the two sides, with $104.5 billion in exports from Türkiye to the EU and $105.5 billion in exports from the EU to Türkiye. Germany is the top exporter among EU countries and the EU is Türkiye's most important trading partner," he explained.
However, Bolat expressed that there have been some difficulties during the implementation process of the customs union.
"Especially when the EU makes free trade agreements with third countries without us at the table, it puts us at an economic disadvantage," he stated, adding that the free movement of Turkish citizens, which should have been a part of the agreements for a long time, has unfortunately not been realized to date.
He cited an example of visa issues Turkish citizens have been facing in recent years, enduring long times to receive an appointment and issues that truck drivers face, thus hindering the movement of goods.
Bolat indicated that Germany could play an important role in renewing the customs union between Türkiye and the EU.
"Our expectation from our German friends, the German government, and the German business community is that hopefully the shortcomings of this customs union regime, which has lasted for 28 years between Türkiye and the EU, will be resolved, the scope of the service sector and investments will be included, and negotiations for the modernization of the customs union will start as soon as possible," he concluded.
