ISTANBUL

The growing relations between Türkiye and Italy were reflected positively in Turkish exports to the EU country despite ongoing uncertainties in the global economy over trade protectionism and tensions in the Middle East.

The 4th Italy-Türkiye Intergovernmental Summit was held in Rome on April 29 with the participation of Turkish President Recep Tayyip Erdogan and Italian Prime Minister Giorgia Meloni, during Erdogan’s visit to Italy.

The Turkish president said at the summit that the two countries’ cooperation in the defense field has made significant progress, as they become strong allies.

Turkish exports to Italy rose 7.5% year-on-year in January-May to $5.3 billion, while exports in May climbed 8% on an annual basis to $1.1 billion, according to the Turkish Exporters’ Assembly (TIM).

Turkish exports to Italy accounted for 4.8% of the country’s total exports in the first six months of the year, while Türkiye’s total exports rose 3.5% year-on-year to $110.9 billion and 2.7% in May to $834.1 million.

The auto industry made up the largest portion of Turkish exports to Italy, accounting for $1.3 billion in January-May, followed by chemical products and chemical goods with $777 million, ferrous and non-ferrous metals with $472.5 million, steel with $456.1 million, and textiles and raw materials with $327 million.

Auto exports fell 5.6% and textiles and raw materials 1.8% during the same period, while chemical products and chemical goods rose 14.6%, ferrous and non-ferrous metals 37.4%, and steel 9.4%.

The highest exports from Türkiye to Italy originated from Istanbul, making up $1.8 billion, followed by the northwestern provinces of Kocaeli and Bursa with $727.4 million and $514.6 million, respectively, Izmir with $327.2 million, and Ankara with $208.2 million.

Not just numerical growth but structural transformation

Stefano Kaslowski, the president of the Italian Chamber of Commerce and Industry in Türkiye (CCIIST), told Anadolu that the export figures demonstrated the strength and the potential of trade relations between Türkiye and Italy, deeming it not just a numerical growth but a structural transformation.

Kaslowski said that the chamber has been bringing together Turkish and Italian business communities since 1885 and they have closely monitored the factors behind the success of the solid foundations built over many years between the two countries.

He highlighted that the trade ties between Türkiye and Italy strengthened via direct investments and joint ventures, with more than 1,500 Italian firms investing in Türkiye.

Kaslowski mentioned that Italy is Türkiye’s second-largest trading partner in the EU.

He said that the Türkiye-Italy trade volume has been growing over the years, having reached $28 billion in 2023 and is expected to total $40 billion in the coming years.

He said that 11 new deals were signed during the summit in April — a testament to the deepening cooperation, not only in the economic aspect, but also in key strategic areas, such as defense, energy, and innovation.

Kaslowski emphasized that the rise in the quality standards of Turkish companies, their increasing capacity to deliver special tailored products to the Italian market, and the improvements in the logistics infrastructure contributed to the rise in exports.

He said that Italy, as the third-largest economy in the EU, has strong machinery, automotive, pharmaceutical, food, and luxury goods sectors, and the country’s green and digital transformation efforts present great opportunities for Turkish investors, while Türkiye’s young population, production prowess, and strategic geographical location make up the attractive environment for Italian investors.

Kaslowski stated that the chamber organized an event to bring together industry experts and officials to discuss practical solutions to the risks and opportunities in the foreign trade between the two countries, where customs operations optimizations and cost reduction were discussed.

He noted that the current export volume can reach $12-13 billion by the end of the year if the current upward trend continues but the chamber aims to facilitate high-value-added, tech-intensive, and sustainable trade relations between the two countries, encouraging closer cooperation between the two countries’ business communities, the development of joint R&D projects, and supporting next-generation entrepreneurs.