Turkey-US road map to raise trade volume to $100 bn
August 04, 2019 - Turkey
Despite the ongoing dispute over the S-400 missile system and the F-35 fighters, Turkey and the United States drew a road map to gradually increase bilateral trade volume to $100 billion—revised from the earlier target of $75 billion—during the bilateral meeting held between Presidents Recep Tayyip Erdogan and Donald Trump at the G20 summit last month.
A report commissioned by the Turkish business community and prepared by the Boston Consulting Group (BCG) on the new trade volume target identified eight sectors out of 38 in Turkey that have potential for exports to the United States.
The sectors identified were automotive, textile, aviation, white goods, jewellery, building materials, furniture and tourism, according to a Turkish newspaper.
The BCG report focuses on the recent stagnation in global trade, highlighting the sectors and issues that Turkey needs to concentrate on while stressing that the US-China trade war create a vital opportunity for Turkey.
There is a lot of potential in the US market for Turkish textiles and apparel. The fact that China will lose its competitiveness with customs duties implies a new share for many countries. It is difficult to compete with cost-effective countries such as Vietnam, Cambodia and Pakistan only on prices and costs.
However, it is possible to get more shares from the US market by succeeding over these countries with both design and quality competencies and social standards in production. For this, Turkish products come to the fore by focusing more on branding and promotion, according to the report.
A special project will be carried out to boost trade between the two nations. These titles include preparing a preferential trade agreement with business representatives and government officials from both sides to facilitate customs duties and regulations, conducting a holistic country-oriented promotion campaign using digital and alternative communication channels to promote Turkey in the United States, and launching a positive Turkey-specific campaign for American investors to invest more in Turkey and make joint ventures. (DS)