100 billion dollar target in Turkey-US trade

Minister of Treasury and Finance Mehmet Şimşek stated that economic and strategic relations between Turkey and the US need to be strengthened, adding that the 100 billion dollar target in bilateral trade is achievable.

Şimşek spoke at a celebration held at the US Embassy in Ankara to mark the 250th anniversary of the country's independence. Expressing that it was not only the Declaration of Independence published in 1776 that was decisive in the success of the US, but also the institutions built thereafter, Şimşek drew attention to the fact that the American Constitution has been in effect for over two centuries.

Stating that as an economist, the element that impresses him the most is this institutional continuity, Şimşek said, "Consistency and stability are among the rarest values a country can possess. You cannot buy them. You earn them over time."

Reminding that Turkey-US relations date back to the "Treaty of Commerce and Navigation" signed in 1830, Şimşek said that the first American diplomat arrived in Istanbul a year later. Şimşek remarked, "First came trade, then diplomacy. As a Minister of Treasury and Finance, I must say that I like this sequence."

Şimşek noted that before Turkey's NATO membership, Turkish and American soldiers fought side by side in Korea in 1950; Turkey later joined NATO and assumed responsibilities in Somalia, Afghanistan, and the Balkans.

Recalling that President Recep Tayyip Erdoğan and US President Donald Trump met in Ankara as part of the NATO Summit, Şimşek said that in a period where fragmentation and geopolitical uncertainties are increasing in the global economy, the two countries need each other more than ever.

POTENTIAL AREAS IN TRADE

Şimşek stated that Turkey and the US are working together on issues such as ensuring stability in Syria and strengthening regional peace and security. Saying that there are areas of cooperation beyond regional security, Şimşek reminded that the leaders have set a 100 billion dollar target for bilateral trade.

Stating that the current trade volume exceeds one-third of this target and remains largely balanced, Şimşek argued that while the 100 billion dollar target is ambitious, it is realistic. Şimşek said that last year, the US economy reached a size of 31 trillion dollars and the European Union economy reached 21 trillion dollars; during the same period, Turkey's trade volume with the EU was 232 billion dollars, while its trade volume with the US was 34 billion dollars.

Expressing that geographical proximity to the EU and the Customs Union explain part of the difference, Şimşek noted that the approximately 7-fold difference cannot be explained entirely by this. Minister Şimşek emphasized that he sees significant potential in energy, technology, the defense industry, and supply chains.

Reminding that more than 2,400 American companies operate in Turkey, Şimşek said that Turkey is the world's 11th largest economy by purchasing power parity and offers significant opportunities for investors with its dynamic market, qualified workforce, strong manufacturing infrastructure, and wide regional access.

Stating that the economic program aims to strengthen the environment of trust for investors, Şimşek noted that macro-financial stability has been increased, predictability and a rule-based framework have been reinforced, and the investment environment has been improved.