Türkiye eyes $60B in bilateral trade with Germany

ANKARA

Türkiye aims to boost cooperation with Germany in various new fields, ranging from green transformation to supply chains, targeting $60 billion in bilateral trade volume.

Germany is one of the largest Turkish export recipients worldwide, as Germany received exports valued at $21.1 billion last year, while German exports to Türkiye reached $28.7 billion in the same period, adding up to approximately $50 billion in bilateral trade volume, according to data from the Turkish statistical bureau Turkstat compiled by Anadolu.

Türkiye and Germany discussed new cooperation opportunities during German President Frank-Walter Steinmeier’s visit to Türkiye in April.

President Recep Tayyip Erdogan once again underlined the $60 billion bilateral trade volume target during the German president’s visit, wishing to boost cooperation in the defense industry in particular.

In addition to Türkiye-Germany trade talks, President Erdogan met with Chancellor Olaf Scholz on Monday in New York at the 79th United Nations General Assembly.

Last week, Treasury and Finance Minister Mehmet Simsek attended the German think-tank Stern Stewart Institute’s 2024 summit in Germany, meeting with business executives from more than 50 German corporations, showcasing investment opportunities in Türkiye.

Meanwhile, Transportation and Infrastructure Minister Abdulkadir Uraloglu attended the world’s largest railway exhibition, the InnoTrans 2024 event in Berlin.

On Friday this week, Trade Minister Omer Bolat will co-chair the 5th Term Meeting of the Türkiye-Germany Joint Economic and Trade Commission (JETCO) in Berlin with German Vice-Chancellor and Economic Affairs Minister Robert Habeck, discussing bilateral trade relations and new cooperation opportunities.

About his last visit to Germany in April, Bolat said the business communities from the two countries “will definitely achieve the $60 billion trade target in a few years.”

‘Turkish people in Germany generate $55.7B in turnover’

Mehmet Ali Yalcindag, president of the Türkiye-Germany Business Council of the Foreign Economic Relations Board (DEIK), told Anadolu that the 3.5 million Turkish people living in Germany, who moved there due to political and economic reasons, have become substantial to the economy, as they generate over $55.7 billion in turnover via 100,000 enterprises.

Yalcindag stated that services and automotive exports from Türkiye to Germany have reached an important position, as well as engineering services and parts.

“Türkiye’s advantageous geographic position provides benefits for both Turkish and German firms, as Türkiye’s proximity to the European market and supply chains incentivize German auto companies to invest in Türkiye,” said Yalcindag.

German investments in Türkiye exceeded $12B in past 20 years

Yalcindag highlighted that areas such as supply chain, climate change, and energy, trends mentioned in the Foreign Direct Investment (FDI) Strategy for 2024-2028, offer strong partnership opportunities for the two countries, noting that Türkiye attracted 9.8% of FDIs in the last 20 years.

“German firms in Türkiye invested over $12 billion in the last two decades, while the investment volume of German companies in Türkiye reached $14.5 billion since 1980,” said Yalcindag.

“Turbine-makers Enercon and Nordex have production facilities in Türkiye, pointing to potential cooperation in renewable and green energy sectors, while the German car distributor Borusan, financing services company Allianz, and apparel firm Puma operate in Türkiye,” he added.

Yalcindag underlined that Turkish investments in Germany’s various sectors, such as tech, law, textile, and services, continue with the interest of Turkish investors and entrepreneurs.

*Writing by Emir Yildirim