In addition to the free trade agreement (FTA) negotiations, Türkiye aims to strengthen its bilateral trade exchange through preferential trade agreements (PTAs) that provide mutual advantages in specific sectors, according to a report on Saturday.
According to information obtained by Anadolu Agency (AA) from the Trade Ministry, Türkiye is on track to signing comprehensive FTAs to enhance the competitiveness of its industry and provide market advantages to exporters in other countries.
In this context, 23 FTAs that Türkiye has signed are currently in force. Additionally, the approval and negotiation processes for FTAs with some countries are ongoing.
Besides these, PTAs with Iran, Azerbaijan, Uzbekistan and Pakistan, which provide mutual advantages in specific sectors, are making significant contributions.
Moreover, efforts are underway to implement a new PTA with the Maldives. Discussions are also continuing for the initiation of negotiations to sign this agreement with Algeria.
Accordingly, with its extensive network of trade agreements, Türkiye is among the top 10 countries in the world with the most FTAs.
Investment opportunities
The domestic approval processes of FTAs that Türkiye is conducting with Ukraine, Qatar, Lebanon and Sudan are ongoing.
In this context, a new era began with the publication in the Official Gazette at the beginning of this month of the regulation concerning the Türkiye-Ukraine FTA, which was signed in Ukraine's capital Kyiv on Feb. 3, 2022.
The agreement, which is awaiting approval by the Ukrainian Parliament, will enter into force once the domestic approval process is completed.
The agreement aims to significantly liberalize a large portion of agricultural and industrial products originating from Ukraine.
Moreover, the Türkiye-Qatar Trade and Economic Partnership Agreement (TEPA) was signed in 2018. The agreement, which is currently being negotiated through diplomatic channels with Qatar, aims to liberalize trade in services between the two countries and mutually increase market entry and investment opportunities for service providers operating in electronic commerce.
The agreement, which also aims to strengthen cooperation in regulations related to e-commerce, is expected to provide various advantages to the Turkish business community in areas ranging from trade in goods to telecommunications services.
At the same time, the domestic approval process in Lebanon is awaiting for the FTA between Türkiye and Lebanon to enter into force. This agreement aims to abolish customs duties applied on mutual industrial products.
In addition, the domestic approval processes of the Türkiye-Sudan Trade and Economic Partnership Agreement are ongoing in Türkiye. With this agreement, it is expected that Sudan will initially reduce its existing customs duties to 30% and gradually eliminate them. It is also foreseen that Türkiye will benefit from more advantageous entry conditions for its agricultural and industrial products in the Sudanese market.
The agreement, which also covers capacity-building and technical support issues for Sudan, is expected to contribute to the continued increase of Turkish investments in Sudan. The agreement also aims to boost bilateral trade volume to $10 billion.
Agreements to facilitate bilateral trade
In line with the country's trade policy priorities, it is aimed to expand these networks of agreements. In this context, FTA negotiations with Japan, Indonesia and the Gulf Cooperation Council (GCC) are ongoing.
Technical-level talks continue regarding the Economic Partnership Agreement negotiations with Japan.
Technical discussions are also being held to resume the fifth round of the Türkiye-Indonesia Comprehensive Economic Partnership Agreement (CEPA) negotiations, which were initiated in Ankara in 2017 during the visit of Indonesian President Joko Widodo to Türkiye. The fourth round of these negotiations was completed but the fifth round was postponed due to the COVID-19 pandemic.
At the same time, the talks for the FTA between Türkiye and the Gulf Cooperation Council were initiated this year in Ankara with the participation of Trade Minister Ömer Bolat and GCC Secretary General Jasem Mohammed al-Budaiwi.
The first round of negotiations has been completed. The agreement aims to increase Türkiye's goods exports in many sectors, from agriculture to technology-intensive industrial products.
All these agreements are expected to facilitate and strengthen bilateral trade, thereby contributing to an increase in trade volume.