Canada unfreezes talks with Türkiye on export controls after NATO move - source

Canada has unfrozen talks with Türkiye on lifting export controls on drone parts after Ankara gave its nod for Sweden to join NATO, a person familiar with the talks said, a move seen as one of several concessions won in exchange for the Turkish blessing.

President Recep Tayyip Erdoğan's decision on Sweden, announced ahead of a North Atlantic Treaty Organization summit in Vilnius, was followed quickly by a statement from Washington that the United States would move ahead with a transfer of F-16 fighter jets in consultation with Congress.

In a potentially significant move for Türkiye's defence industry, NATO member Canada agreed to re-open talks on lifting export controls on drone parts including optical equipment, the person familiar with the talks said, declining to be identified because they were not authorised to discuss details with media.

Ahead of the NATO summit, Türkiye, already seeking assurances over the F-16s in talks with Washington, asked that Canada's export controls also be rolled in to the final discussion, the person familiar with the talks said.

Türkiye sought "a package deal", the person said.

Canada agreed to reopen talks on the matter that had been frozen since Türkiye initially objected to NATO membership bids by both Sweden and Finland last year as long as Türkiye pledged to ratify Sweden's bid at Vilnius, the person said.

At Vilnius, Canada outlined its position to Türkiye on rules regarding uses of any exported technologies, and was awaiting a response. This means the talks on export controls are no longer frozen, a move that helped play a role sealing Erdoğan's pledge over Sweden, the person said.

In response, a spokesperson for Canadian Foreign Minister Melanie Joly, said Canada and Türkiye "continue to engage in frank exchanges on our bilateral, economic and commercial relations" but noted export controls for Türkiye remained in place.

Asked whether Türkiye was in talks with Canada to lift export curbs, a Turkish defence ministry official said it was unacceptable for NATO allies to impose export restrictions on each other and "a certain progress has been made at the Vilnius Summit on that issue".

"But we will follow the results of the negotiations and decision taken at the Vilnius summit," the official said.

In an interview with Turkish media published on Thursday, Erdoğan said his country expects all NATO allies to lift sanctions and restrictions on its defence industry.

On Wednesday, Erdoğan said he was "more hopeful than ever" about the sale of the F-16 fighter jets, after meeting with U.S. President Joe Biden a day earlier. Türkiye had requested in October 2021 to buy $20 billion of F-16 fighters and nearly 80 modernisation kits for its existing warplanes.

Ankara's objections have been a major obstacle in the path of Sweden and Finland joining NATO after the Russian invasion of Ukraine. Türkiye's demands included a tougher line against the PKK, which is designated a terrorist group by Türkiye, the United States and the European Union.

Türkiye's parliament ratified Finland's membership in March, after Erdoğan said Helsinki had taken concrete steps to crack down on terrorist groups, and to free up defence exports.

Erdoğan said on Wednesday he would forward Sweden's ratification to parliament when it reopens in October, adding Stockholm would provide a roadmap to Türkiye regarding the steps it would take before the approval.

Erdoğan has also said he expects steps from the EU, including on updating a customs union and visa-free travel, before Türkiye begins "work on implementing the promises (it) has made."