US – Turkey Trade Relationship
Recent economic changes in Turkey have been dramatic and positive. Turkey is the fastest-growing country in Europe, which presents significant opportunities for U.S. companies to partner with Turkish companies in a wide variety of sectors, including energy, transportation, health care, and construction. U.S. exports to Turkey include intermediate goods, high-value manufactured items, and energy and farm commodities. Turkey’s growing market offers excellent prospects for an array of U.S. manufactured goods—from consumer products to construction and transport equipment.
Major US exports to Turkey include intermediate goods (scrap iron and steel, and chemicals); high-value manufactured goods (aircraft, aircraft parts, industrial machinery, and defense items); petroleum products and coal; and farm commodities (cotton, soybeans, and nuts). Turkey’s exports to the US include traditional, labor-intensive products (apparel, footwear, rugs, and linens); as well as food products (such as processed fruit) and building materials (especially building stone). The US – Turkey trade and investment relationship is strong and significant, but still fails to reflect the potential synergies of the world’s 1st and 17th largest economies.
The United States is considered an open market for Turkish exports, as approximately 70% of U.S imports from Turkey are duty free. Turkey’s traditional export items, however, such as tobacco, textile, fruits, vegetables, plants, and leather productsvi encounter relatively higher tariff rates. Turkish exporters are increasingly concerned with antidumping and counter countervailing duties implemented, especially towards the Turkish steel industry. The U.S. Generalized System of Preferences (GSP) program is an important, yet underutilized, vehicle for Turkish exports to enter the U.S. market duty free.
Turkey’s large and growing domestic market makes Turkey a particularly attractive destination for U.S. exporters and investors, and a key candidate for an FTA with the United States. Turkey’s economic growth will drive tremendous expansion in Turkey’s imports, which are forecast to grow by 9 percent annually through 2018. This growing trade has the potential to power tens of billions of dollars of additional U.S. exports to Turkey and to support tens of thousands of U.S. jobs—especially if America can use a comprehensive, mutually beneficial FTA to expand its share of trade with Turkey.
The U.S. business community is generally positive about long-term business opportunities in Turkey. The Turkish business community is also generally positive about long-term business opportunities in the United States, however there are concerns about a number of trade, regulatory, and practical barriers while entering the U.S market.
We at Mylo Trade, aim to promote the bilateral trade, expand the cooperation and investment between the United States and Turkey. We have industry experts in each country to enhance market access and increase trade and investment between the US exporters and Turkish traders and investors. To learn more about our services, please send us an email.