The US and Türkiye are in a new era of trade relations, said Mehmet Ali Yalçındağ, chairman of the Türkiye-US Business Council (TAIK).
Supply chain disruptions that have brought nearby markets and production bases to the forefront across the globe and post-pandemic pent-up demand that has led to a reshaping of trade routes have positively affected trade between the two countries, Yalçındağ said.
A 54% increase in trade volume between the US and Türkiye in the last three years shows that the trade target of $100 billion is not a distant goal, he said during a meeting titled "Looking to the Future in Türkiye-US Trade Relations" organized in cooperation with the American Chamber of Commerce (AmCham) Türkiye and TAIK.
"To reach the $100 billion trade volume target and strengthen bilateral trade relations, we need to adopt a state-based approach to the US, which represents a wide geography and a strong market," he noted.
He recalled that the bilateral trade volume between the US and Türkiye, which was below the $20 billion level in 2019, exceeded $32 billion last year.
"While US imports increased by 35% in 2022 compared to 2019, imports from Türkiye increased by more than 80%," he said.
Yalçındağ said that while the jewelry, energy and iron and steel sectors were the most demanded sectors by US companies during this period, Türkiye's automotive sales increased to over $1 billion in 2021.
The positive progress of the political relations between Türkiye and the US during the past summer period and the positive signals given for the upcoming period have reinforced the expectations that trade will also accelerate, he stressed.
"As representatives of the business world, we are trying to create a roadmap by recognizing that we are entering a new path.
"Our $100 billion trade volume target, which started with (US) President (Donald) Trump and (Turkish) President (Recep Tayyip) Erdogan, has turned into a policy that governments have also adopted," he added.
Yalçındağ said the Turkish business world welcomes the continuation of this policy by the Biden administration in the US.
"No matter what issues are experienced in the political arena, we see that our mutual trade continues to rise steadily without being affected by them," he added.
If the target of $100 billion is reached, Türkiye will be the 13th largest trade partner of the US, rising from 25th place, he said.
Yalçındağ also noted that Turkish contractors have been building some of the diplomatic missions of the US in the Middle East and Africa for many years, which shows its trust in Türkiye, adding that Türkiye may establish a diverse partnership with the US based on this confidence.
He said the military student exchange program between the US and Türkiye was terminated in 2017, but the program was revived in recent months and there have been developments in the field of military education between the two countries.
Reminding that the Agile Spirit 2023 exercise was held with the participation of the US in recent weeks, he said: "On the other hand, American Congress members visited Türkiye; these are all very important signals."
"I believe that the effect of this good atmosphere will contribute to trade in the near future," he said.
He also said that in these days when countries have gained momentum in bilateral relations, more positive news was shared by the US Department of Commerce.
"It was announced that the largest trade delegation of the US government, Trade Winds, will take place in Türkiye next May," he said.
He said around 50 US-based firms, ministers and officials are expected to visit Türkiye as part of the delegation.
Yalçındağ also said that TAIK will organize the Türkiye Investment Conference in New York from Sept. 19-20.
"I must say that this year, we have received much more interest than we expected, especially from US investors. More than 10 days before the registration for the meeting hosted by Goldman Sachs, where we brought together (Turkish Treasury and Finance Minister) Mehmet Simsek and investors, we have already filled the meeting room to capacity," he stressed.
"This means that the world's most important funds and portfolio managers want to listen to Türkiye. Immediately after this meeting, on Sept. 20, we are bringing our President (Recep Tayyip Erdogan) together with 20 Fortune 100 CEOs in a closed meeting with limited participation."
- Increasing investments from US firms
Tankut Turnaoglu, the chairman of AmCham Türkiye, said Türkiye and the US have a longstanding and strong relationship that is one of the most important and deep-rooted strategic relationships in the world.
Turnaoglu underlined that the increase in trade between the two countries in the last two years is very valuable.
"Currently, the US is the second main destination for Türkiye's exports after Germany," he noted.
He also stressed that his association represents 125 US-based companies and an investment portfolio worth $100 billion in Türkiye.
"Our first priority is to protect and increase US investments in Türkiye," he said.
Turnaoglu also noted that investments from the US-based companies in Türkiye have been increasing in recent years.
"For example, Mondelez International, one of our members, has invested $110 million in Türkiye in the last five years and exports to the US from here more than $60 million worth of products."
Kraft Heinz, another member, made another important investment of $100 million in Türkiye, he added.
"US companies generally make long-term investments, and we can foresee that this will increase even more as the Turkish economy stabilizes. Our second priority is to make Türkiye a regional hub for US companies," he underlined.
Especially after the Ukraine-Russia war, most of the US companies are shifting their structures to Türkiye, and this will probably continue to increase, Turnaoglu said.
"Currently, a quarter of our members are already managing a region from Türkiye, and we think this will increase even more," he said.
"We are working to ensure that the Turkish companies that member companies work with participate more in the global value chain. For example, as P&G Türkiye, 82 of our domestic suppliers export nearly $140 million worth of raw materials to P&G companies abroad.
"We want to actively support the integration of Türkiye's climate change, sustainability and digitalization programs," Turnaoglu said.
American companies' relationships with Türkiye are as much about social solidarity and sustainability as they are about trade, and this is another priority, he said.
"For example, DowAksa, a joint investment of our sustainability-focused member Dow and Aksa Holding, won the AmCham Investment Award for its carbon fiber investment to make wind blades more efficient and lighter, which is a project worth over $2 billion."
After the twin earthquakes in Türkiye in February, member companies contributed more than $100 million, he added.
