Türkiye Eyes Gulf Trade

Türkiye-Gulf Trade Deal Set to Finalize by End of 2024

Türkiye aims to finalize a free trade agreement with the Gulf Cooperation Council (GCC) by the end of 2024. This significant step follows the first round of discussions hosted by Ankara this week, as confirmed by the Turkish Trade Ministry.

The negotiations covered several important areas:

• Trade in goods: Enhancing the exchange of goods between Türkiye and Gulf countries.
• Rules of origin: Establishing criteria to determine the national source of a product.
• Contracts: Improving contractual agreements to facilitate smoother trade.
• Tourism: Promoting travel and tourism between the regions.
• Health: Collaborating on healthcare initiatives and services.
• Service trade and investment: Evaluating ways to facilitate service trade and boost investments.

The parties have agreed to continue their discussions through online meetings and to meet in Riyadh later this year for a second round of negotiations.

This potential agreement is a milestone for both Türkiye and the Gulf countries. In 2023, Türkiye's trade volume with the Gulf region was $31.5 billion. A new trade pact is expected to significantly increase mutual investment and cooperation in various sectors such as infrastructure, technology, and energy.

Since normalizing ties with Gulf countries in 2020, Türkiye has signed multiple deals worth billions of dollars, particularly with Qatar. Additionally, Türkiye already has a comprehensive economic partnership agreement with the UAE, which has further strengthened economic relations in the region.

The Türkiye-GCC trade agreement could have broader implications for global trade dynamics. By creating a more integrated and cooperative trade environment in the Middle East, this pact could encourage other nations to pursue similar agreements. It may also attract international investors looking for stable and lucrative markets in the region.

Enhanced trade ties between Türkiye and the Gulf countries could lead to more competitive pricing, diversified product offerings, and improved supply chain efficiency. This would not only benefit the local economies but also contribute to global trade growth and stability.

With continued discussions and planned meetings, Türkiye and the GCC are on track to conclude the agreement by the end of 2024. This pact could pave the way for increased trade and investment opportunities, benefiting both Türkiye and the Gulf nations.

By fostering stronger economic connections, Türkiye aims to create a more dynamic and cooperative trade environment, not only in the Middle East but also on a global scale.