Bahattin Gönültaş,Furkan Naci Top
18 November 2015•Update: 19 November 2015
ANKARA
Trade and relations between Turkey and Greece are growing despite difficulties in the global economy and wrangles between the two nations.
A day after jointly attending a soccer friendly between Turkey and Greece in Istanbul, Greek Prime Minister Alexis Tsipras – on two-day official visit to Turkey – is to meet his Turkish counterpart Ahmet Davutoglu plus President Recep Tayyip Erdogan.
The leaders are expected to discuss mutual ties and ways to tackle the ongoing refugee crisis as well as ways to boost trade, energy and economic cooperation.
Trade volume between the two countries has substantially increased during recent years and reached $5.6 billion as of end-2014, up from around $3 billion in 2010 – an increase of 86 percent.
According to Turkey’s official statistics agency, TurkStat, in 2014 Turkish exports to the EU member stood at $1.5 billion. Turkey’s main exports include iron/steel, cotton, fabrics, metal products, fruit/vegetables, fish, clothing, machinery, leather, glass and ceramics.
Greece’s exports to Turkey were worth $4.5 billion last year – mainly mineral oil and other petroleum products, plus cotton.
During first nine months of 2015, more than half a million Greek tourists visited Turkey, an increase of 11 percent compared to the same period last year.
More than 600 Greek firms operate in Turkey, with total investments worth around $7 billion.
Experts say that bilateral trade volume between Turkey and Greece is not enough as the governments aimed to increase the current volume to $10 billion in middle term. They claim the potential of the two countries far exceeds this figure.
Energy cooperation
Energy and transportation sectors have emerged as fertile areas for economic cooperation between the two neighbors.
“Russia needs to strike deals with third countries such as Greece for other lines in the ‘Turkish stream’” Turkish Energy Minister Ali Riza Alaboyun said in Paris this week.
Turkish-Greek Business Council President Tevfik Bilgen told Anadolu Agency that despite the refugee crisis being the main agenda item during Tsipras’ visit, the leaders’ meeting will help both countries boost their trade and solve outstanding issues, such as Cyprus.
Bilgen said: "From now on the identities of the immigrants and their past will be questioned. Maybe for a while there will not be any cross-border transitions.
“Nevertheless, many issues can be opened in an official visit at the level of prime ministers of two neighboring countries which have a deep relationship."
Greece needs channels to increase exports in the framework of the reform package required by outside creditors, says Professor Muhsin Kar, head of economic programs at Turkey’s IST think-thank.
"In this regard it may be an important visit to Turkey for the good of Greece. If Greece aspires to attract more investors from Turkey, it should give signals which will bring down psychological barriers which come from historical disputes," Kar added.
