First Round of Talks Focuses on Trade, Investment, and Service Sectors; Agreement Aims to Forge One of the World’s Largest Free Trade Areas
Turkiye and the Gulf Cooperation Council (GCC) have successfully concluded the first round of negotiations for a Free Trade Agreement (FTA). According to a statement from the Turkish Ministry of Trade, the initial discussions took place in Ankara, marking a significant step toward strengthening economic ties between Turkiye and the GCC member states.
The negotiations follow a joint declaration signed in March by Turkish Trade Minister Ömer Bolat and GCC Secretary-General Jasem Mohamed Al-Budaiwi. The first round of talks covered a wide range of topics, including trade in goods, rules of origin, contracting services, tourism, healthcare, and investment facilitation. These discussions are expected to lay the groundwork for a comprehensive agreement that will significantly enhance trade and investment flows between Turkiye and the GCC countries.
The negotiations will continue through online meetings, with the second round scheduled to take place in Riyadh, Saudi Arabia, in the last quarter of the year. Both sides aim to finalize the agreement by the end of the year, which would establish one of the world’s largest free trade areas.
The GCC member states, comprising Bahrain, Qatar, Kuwait, Saudi Arabia, the United Arab Emirates, and Oman, currently have a combined trade volume of $2.4 trillion with the rest of the world. The implementation of the FTA between Turkiye and the GCC is expected to create substantial economic opportunities by facilitating trade and investment across various sectors, including tourism, healthcare, education, logistics, and information technology.
The agreement is also poised to provide Turkish companies with significant business opportunities in the Gulf region. Following Turkish President Recep Tayyip Erdogan’s participation in the 44th GCC Summit in Doha, the FTA negotiations were prioritized on the GCC’s agenda. In 2023, Turkiye’s trade volume with the GCC member states reached $31.5 billion, highlighting the growing importance of these markets for Turkish businesses.
The FTA is expected to further boost Turkish exports and investments in the region, particularly in the contracting, logistics, and tourism sectors, where Gulf countries are increasingly offering lucrative opportunities to Turkish firms. The agreement is also anticipated to attract more GCC investments into Turkiye, contributing to the country’s economic growth and development.
Source: AA / Prepared by Irem Yildiz