Turkiye’s exports across various sectors, from agriculture to high-tech industrial goods, are set to rise with the Turkiye-Gulf Cooperation Council Free Trade Agreement.
The recently completed first round of negotiations for the Free Trade Agreement (FTA) between Turkiye and the Gulf Cooperation Council (GCC) marks a significant step toward enhancing trade and investment ties between Turkiye and Gulf nations. The agreement, involving countries such as Bahrain, Qatar, Kuwait, Saudi Arabia, the United Arab Emirates, and Oman, aims to increase Turkiye’s exports across a wide range of sectors, including agriculture and technology-intensive industrial products.
The first round of negotiations, held in Ankara with representatives from the respective countries, was conducted under the framework of a joint declaration signed earlier this year in March by Turkish Trade Minister Ömer Bolat and GCC Secretary General Jasem Mohamed Al-Budaiwi. During these discussions, the parties outlined the agreement’s general framework and evaluated legal texts, focusing on each other’s demands and expectations at a technical level.
Key topics addressed in the negotiations included trade in goods, rules of origin, health and plant health measures, technical barriers to trade, customs procedures, trade facilitation, trade in services, intellectual property rights, investment facilitation, mobility of businesspeople, small and medium-sized enterprises, and digital trade.
Opportunities for the Private Sector
Turkiye’s GDP surpassed the $1 trillion mark for the first time in its history last year, reaching $1.118 trillion. Similarly, the GCC countries have made significant economic strides, with their combined GDP exceeding $2.4 trillion. Projections suggest this figure could rise to $6 trillion by 2050.
The FTA between Turkiye and the GCC is expected to create new opportunities for the private sector, offering a “win-win” scenario that goes beyond just goods trade. The agreement is poised to boost bilateral trade, particularly in sectors where Turkiye is competitive in the GCC market, such as agriculture and high-tech industrial products.
Additionally, Turkish companies that have established global brands in sectors like telecommunications, construction, and health tourism are expected to play a more active role in the Gulf countries. Turkiye’s construction industry has already completed 856 projects worth $77.5 billion in GCC member states.
Gulf countries, in return, are eyeing investments in Turkiye in sectors such as food, logistics, transportation, pharmaceuticals, and hospital management, alongside infrastructure and technology projects.
Source: AA / Prepared by Irem Yildiz