Growing Turkey-US trade relations persist amidst worldwide economic hurdles
In the past decade, the trade relationship between Turkey and the United States has demonstrated remarkable resilience, growing steadily despite global economic turbulence and trade tensions. This upward trajectory is evident in the trade volume, which surged from a modest $20 billion in 2013 to an impressive $33 billion by the end of 2024.
Strategic advantages abound for American companies operating in Turkey. The country offers an attractive investment climate, as evidenced by the $11.3 billion in foreign direct investment it attracted in 2024, with the U.S. accounting for 10.3% of this total. This welcoming environment for U.S. capital and operations is further bolstered by the diversity of sectoral opportunities available. U.S. investments are primarily concentrated in high-growth sectors such as technology, e-commerce, digital economy, financial services, health and life sciences, advanced manufacturing, and logistics.
Turkey's strategic geographic positioning also offers significant benefits. As a potential trade intermediary between Europe, the Middle East, and Asia, it stands to gain from its location, particularly in the current global trade volatility triggered by tariff wars involving China, the EU, and the U.S. Turkey's stable, neutral trade stance and initiatives to upgrade infrastructure, such as port expansions and customs digitalization, position it as a next-generation logistics hub.
Long-term economic prospects also present themselves, particularly in the realm of regional reconstruction. The lifting of certain U.S. sanctions and Turkey's involvement in reconstruction efforts in neighboring Syria offer promising opportunities, especially for Turkish construction and banking sectors, which could also benefit partner companies.
Despite the complex geopolitical environment and tariffs impacting broader U.S. trade policy, commercial relations have endured various stress tests, preserving a foundation for mutually beneficial economic ties. Ambitious trade volume targets, such as $100 billion, agreed upon in previous administrations remain a priority for organisations like AmCham Turkey.
AmCham Turkey actively works to develop Turkish-American bilateral economic relations, organising events such as visits to the U.S., maintaining contacts with Congress, Senate members, and leading think tanks. Major international events, like the '1st AmChams Eurasia Economic Summit' held in Istanbul in October 2024, serve as prominent examples of AmCham Turkey's efforts.
The trade volume between Turkey and the United States is balanced, with Turkey being the second-largest export market and fifth-largest import market for the U.S. Major American brands, such as Netflix and Amazon Web Services, are among the numerous U.S.-based member companies contributing significantly to Turkey's economy, with nearly 150 companies investing $60 billion annually.
Looking ahead, the future of Turkey-U.S. trade ties seems promising, with recent mergers and acquisitions conducted by U.S. companies in Turkey demonstrating growth in various sectors, including technology, gaming, chemicals, health, media, and manufacturing. As both countries continue to navigate global economic challenges, the enduring trade relationship between Turkey and the United States remains a beacon of resilience and mutual benefit.
- The foreign direct investment in Turkey, which totaled $11.3 billion in 2024, shows a welcoming environment for American investments, particularly in sectors like technology, e-commerce, digital economy, financial services, health and life sciences, advanced manufacturing, and logistics.
- Turkey's strategic geographic positioning, as a potential trade intermediary between Europe, the Middle East, and Asia, offers benefits in the current global trade volatility, positioning it as a next-generation logistics hub.
- Long-term economic prospects, such as regional reconstruction, present opportunities for both Turkish and American companies, especially in sectors like construction and banking, with the lifting of certain U.S. sanctions and Turkey's involvement in reconstruction efforts in neighboring Syria.
- Despite tariffs and complex geopolitical environments, the trade relationship between Turkey and the United States has managed to endure various stress tests, with Turkey being the second-largest export market and fifth-largest import market for the U.S., with major American brands like Netflix and Amazon Web Services contributing significantly to Turkey's economy.
