Armin Hohenadler

„Although this has not been the case in the past, Turkey and the United States could increase their trade volumes. The differences between the U.S. and China could create a good opportunity for Turkey to realize this,“ Vergil said. When it comes to the export and manufacturing sector, a free trade agreement with the United States will bring huge benefits to Turkey,“ Vergil told TRT World. Tariffs on Turkish steel products and Turkey`s removal from the Generalized System of Preferences for Trade were also seen by Ankara as restrictions, he noted. Despite the political conflicts, significant trade potential remains between the two countries, especially in the context of the US-China trade war, in which Washington is seeking new partners to prevent the global expansion of the Chinese economy. Turkey, as a contracting party to the WTO`s General Agreement on Tariffs and Trade (GATT), implements free trade agreements in accordance with Article XXIV of the GATT 1947. Under this Article, Turkey may grant, under certain conditions, favourable treatment to its trading partners within a customs union or free trade area, without extending this treatment to all WTO Members. „Whatever their point of view, they want to assess the prospects of this type of agreement, it is clear that it would benefit Turkey,“ said Hasan Vergil, professor of economics at Istanbul University. The $100 billion target set by the two countries for bilateral trade is not politically motivated, he added. In June 2019, Turkish President Recep Tayyip Erdogan and his US counterpart Donald Trump raised the bilateral trade target from $75 billion to $100 billion. Finally, Lindsey Graham, a powerful Republican senator who is said to have strong influence over U.S. President Donald Trump, suggested that relations between Washington and Ankara could take the next step if the two allies sign a free trade agreement.

„The volume of trade has increased by 3.5 percent per year in these exceptional times when countries are struggling to trade with their partners,“ Deputy Commerce Minister Riza Tuna Turagay said at a webinar on the future of Turkey-U.S. trade relations, organized by the Turkish Cultural Heritage Organization. In the same speech, Graham raised both of these issues as some obstacles to the implementation of a free trade agreement. „The way we do this is to overcome our differences. It cannot be by using military force,“ the senator said. WASHINGTON (Reuters) – The United States on Thursday ended Turkey`s preferential trade regime, which allowed some exports to enter the country duty-free, but halved its tariffs on Turkish steel imports to 25 percent.