Trade Relations between Turkey and Europe

Trade Relations between Turkey and Europe in Recent Years

Trade Relations between Turkey and Europe in Recent Years

Trade relations between Turkey and Europe are growing more and more, as the conditions and industrial development of Turkey, and the diversity of products, with easy shipping, are guided by more correlation and consolidation of trade relations to grow more.

The European Union is made up of 27 countries and is the largest political and economic organization in the world. Although the EU makes up nearly 6% of the world's population, it ranks among the world's largest economies and trade actors.

Turkey has the sixth largest economy in Europe, and has extensive trade and economic relations with the European Union, as the Union is Turkey's largest trade and investment partner ever.

Turkey's trade with EU member states accounts for 40% of its total trade. The EU is an important market for Turkey's trade exports, which we will tackle in the following article.

Trade Balance between Turkey and Europe in Numbers

First of all, a trade balance is defined as the difference between the value of a country's imports and exports. The trade balance is one of the important economic indicators. It is one of the inputs of the domestic product of countries, and its value lies in the analysis of its components and not in its absolute value

So, it is necessary to understand the quality of each of its components and structure, that is, the ratio of raw materials, semi-finished or manufactured materials to the total imports or exports.

Despite the fluctuation of the exchange rate of the Turkish lira against the dollar, the high rates of inflation and the negative developments taking place in the global economy; during April 2022, Turkey achieved $ 23.4 billion, bringing the increase to 24.6 % compared to the same month of the previous year, which is the highest monthly rate of commercial exports in its history.

Turkey's total trade exports amounted to about $ 225.4 billion in 2021, thus achieving a growth of 32.9% compared to the year before.

In a previous statement by Turkish Trade Minister Mehmet Mus, he pointed out that the increase in the country's imports in April was 35%, with an increase of about $29.5 billion.

It is important to clarify this in numbers through the following table, which shows the value of exports and imports during the past year 2021:

The value of Turkey's exports to EU countries	The value of Turkey's exports to European countries outside the EU	The total value of exports to all of Europe
93 052 537 000$	132 161 921 000$	225 214 458 000$
Value of imports from the EU to Turkey	Value of imports from European countries outside the EU	The total value of imports from the whole of Europe
85 383 160 000$	186 042 393 000 $	271 425 553 000 $

Accordingly, the trade balance between Turkey and Europe during 2021 is as follows:

The total value of exports to the whole of Europe	225 214 458 000 $
The total value of imports from the whole of Europe	$ 271 425 553 000
Trade balance	46 211 095 000 $

After subtracting the value of imports from the value of exports, we find the value of the deficit in the trade balance, which is equivalent to $46.2 billion.

Turkey's Most Important Exports to European Countries

According to the Turkish Ministry of Commerce, Turkey's most important exports to Europe are cars, ready-made clothing, chemicals, agricultural products, steel, iron metals and others, as well as raw materials, energy, and various consumer goods.

The Volume of Turkey's Exports to Europe

The European Union accounts for a 41.3$ share of Turkey's total exports, worth $93 billion in 2021.

Thus, Turkey's exports to Europe rank first in total Turkish exports.

You may also want to know about how to get eur.1 certificate for international trade.

The Future of Relations between Turkey and Europe

Turkey and Europe are bound by the Customs Union Agreement signed between them on September 12, 1963, which allows the free circulation of goods of States Parties within a single customs zone free of all kinds of customs taxes.

Based on this agreement, Europe and Turkey apply the same tariff rates and the same trade policies for imports. This agreement is a sophisticated model compared to free trade zones.

Major European companies with a long history in Europe are also constantly seeking to transfer their production or open additional production lines in Turkey, to take advantage of the following:

The state of stability of energy supply lines in Turkey, which is what all European countries are currently suffering from significantly.
Relatively cheap labour compared to the countries of Europe.
Freedom of trade and facilities by the Turkish government.

Villeroy & Boch tops all companies, which ranks among the most important brands in Germany and Europe as a whole, and which recently announced the layoff of all its workers and employees and the transfer of its entire production from Germany to Turkey, due to the turbulence of natural gas prices, doubling in Germany, in addition to the difficulty of obtaining the required labour in production lines.

It is also no secret that Turkey and the United Kingdom signed a free trade agreement following the latter's Brexit from the European Union. As a result, 2021 witnessed a growth in bilateral trade between the two countries by 20.2% compared to the previous year.

Many other indicators show the thirst of European countries for Turkish products, with a clear indication of a more dynamic future in the economic sector and trade exchange, especially by Turkey towards the European Union countries.

The Best Products to Import from Turkey to Europe

As we have already shown, cars, ready-made garments, chemicals, agricultural products, steel, raw materials and energy are among the most imported and sought-after materials from Turkey to Europe.

There is a high demand for Turkish electrical products (such as refrigerators, washing machines, etc.) which feature high quality and distinctive performance.

Not to mention, Turkish food products come in a high degree of importance due to their diversity and quality, as well as carpet products, textiles, furnishings, electronics of all kinds...

Import Services from Turkey to Europe by Tebadul Company

Tebadul Trading Company guarantees its customers offering the best import services from Turkey to Europe, finding the required goods from its sources directly, concluding deals, or agencies, with all other services until the arrival of products and goods, from Turkey to any European country.

It provides optimal packaging services, customs clearance, shipping and unloading facilities, and all other services that are indispensable in the import and export process from Turkey.

Edited by Tebadul International Trade

Sources: Daily Sabah + Al Jazeera

Did you like our topic? You can share it with your friends