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Developing ties gives boost to Turkey’s trade with neighbors
There was also a major surge in Turkey’s imports from its surrounding countries during this period, up by 77.7 percent to $3.8 billion, still resulting in a trade surplus for Turkey.
According to statistics from the Foreign Trade Undersecretariat, Turkey’s exports to surrounding countries accounted for only 0.5 percent of overall exports in 2000, while this figure rose to 13 percent last year. This upward trend is expected to continue in the coming years in line with the gravity model of trade, which predicts increased trade, a higher gross domestic product (GDP) and a reduced geophysical gap between countries.
By adopting a “regional and neighboring countries strategy” in 2000, Turkey managed to diversify its foreign trade partners, as well as improving its economic, social and cultural ties with these countries. Thanks to these developments, the Turkish economy exited the global financial crisis that shook 2009 to the core without any major damage. Exports to neighboring countries rose by 43 percent in the first five-year period following 2000, compared to the years 1995-2000.
In the past decade Turkey’s foreign trade volume has surged by 195 percent partly thanks to the improving commercial relations with bordering countries. During this period, Turkey’s exports to the neighboring countries of Azerbaijan-Nakhichevan, Georgia, Bulgaria, Iraq, Iran, Syria and Greece soared by 445 percent, far above the growth rate of the country’s overall foreign trade volume.
Turkey sold 9.6 percent more goods to its neighbors, to reach $4.7 billion, in the first four months of the year compared to the same period of last year. During this period it bought goods worth $3.8 billion from these countries, registering a 77.7 percent increase. In the January-April period, total trade volume was up by 32 percent year-on-year. Turkey’s exports to all surrounding countries increased during this period, with the exception of Georgia and Iraq, which purchased 15 and 0.5 percent less goods from Turkey, respectively.
Traded products
Turkey mostly sells finished and fabricated products to its neighbors in the Middle East and the Caucasus, while importing oil, natural gas and raw materials from Iraq, Iran and Azerbaijan. The majority of Turkish exports to Greece are in land vehicles, oil and iron and steel. The two main goods Turkey buys from Greece are cotton and plastic.
Even though trade with Bulgaria declined last year due to the global economic meltdown, exports to this country are expected to recover this year. Turkey mostly sells vegetable and plastic products to Bulgaria and buys copper and sunflower.
The major imported product from Iraq is crude oil, while exported goods are steel bar, cement and basic foodstuffs. Iran receives products from the Turkish iron and steel industry and forestry, while sending natural gas, plastics and copper to Turkey.
Turkey’s southeastern neighbor Syria mostly buys cement from Turkey and sells crude oil. The country’s main export to Azerbaijan-Nakhichevan is boilers, while importing natural gas. Georgia also buys land vehicles and sells iron and steel to Turkey.
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