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The Spokesperson of the US Embassy in Ankara stated "USA companies see Turkey as a regional center". The spokesperson of the US Embassy in Ankara, Julie Eadeh, expressed her opinion on the position and perception of Turkey with this statement. In addition to being a regional center, Turkey is included in the list of the largest trading partners of the USA.

Eadeh mentioned that there was a strong economic relationship between Turkey and the USA. Moreover, she underlined that the previous year, the total trade volume between the USA and Turkey had increased by 32 percent. She added that it had reached approximately 28 billion dollars.

She emphasized that the US's trade with the rest of the world had increased by only 22 percent during the period in question. Eadeh commented on this data as follows. "Turkish goods are becoming more and more attractive in the US market.” She also concluded, "the USA was the No. 2 market for Turkish exports in 2021.” She also conveyed the information that the previous year, Turkey's exports to the USA had reached 16 billion dollars. This was an increase of approximately 45%. Moreover, with this increase, Turkey took its place among the countries with the highest rate of trade.

While Turkey ranks 4th among the five trading partners, it was mentioned that this progress could be further developed.

They Discussed the Details of the Strategic Mechanism Period

Eadeh stated that US companies in Turkey employed approximately 60,000 people in the country in 2019. Thanks to this employment rate, both business relations and individual relations have improved. Strategic relations between the USA and Turkey are also developing as a result of these employments.

Meetings were held in line with the mechanism decided to be established. It was planned during the meeting between President Recep Tayyip Erdoğan and US President Joe Biden in October 2021. The foreign ministries of Turkey and the United States issued a joint statement on April 4. The meeting was held in Ankara by Deputy Minister of Foreign Affairs Ambassador Sedat Önal and US Undersecretary of State for Political Affairs Victoria Nuland.

The foreign ministries of Turkey and the USA announced the start of the Strategic Mechanism period in bilateral relations, with a joint statement on April 4th. This Strategic Mechanism is also related to improving employment differences between the two countries. During the meeting between the Turkish-American delegations economic and defense cooperation were discussed. In addition, the fight against terrorism, and regional and global issues were discussed within the scope of mutual interests.

It was among the resources that the mechanism would create a framework in which all dimensions of relations would be addressed. It is stated that it was aimed to address the issues more holistically. This is possible by creating an environment where different institutions of both sides could exist together. The development of bilateral relations was discussed at the meeting. Moreover, the restoration process in Turkey's foreign policy leads to a further revival of the Ankara-Washington line. As a result, they mutually stated that they wanted this revival to continue. Thanks to the Strategic Mechanism, everything became clearer.

US Undersecretary of Commerce Marisa Lago Visited Ankara

All of these comments have been shaped by the general situation of Turkey and its development in trade. In addition, she made a written statement regarding the US-Turkey trade and economic relations. She also shared the details of the US Department of Commerce Undersecretary Marisa Lago's visit. During the visit, Lago held bilateral meetings with Deputy Minister of Energy and Natural Resources Alparslan Bayraktar and Deputy Minister of Commerce Mustafa Tuzcu. The aim of these meetings was to develop trade relations between countries and provide further incentives.

It is also thought that Eadeh touched upon improved energy communication during this visit by Lago. Eadeh commented, "We held our 4th energy-focused event jointly with Turkey in the last two years. We are working closely with Turkey on regional energy development."

Expected Partnership to Develop Renewable Energy

This situation was also discussed at the Eurasian Small Modular Reactor (SMR) Forum, which was held on April 5. The USA, Kazakhstan, Turkey, Turkmenistan and Uzbekistan participated in the forum. Referring to this forum, Eadeh said, "We are determined to partner with Turkey to develop clean and renewable energy generation sources."

It was stated that the USA was sensitive to more reliable energy cooperation. It is thought that Lago expressed her expectations from Turkey in terms of these collaborations during her visit.

As a result, the relations between the two countries are examined in all aspects and efforts are made to develop them. The interests of the two countries, especially the Strategic Mechanism, are shaped within the framework of innovations. Both the April 4 meeting and Marisa Lago's visit support these thoughts.

Turkey's gradual rise among its trading partners also suggests that the communication between the two countries will become more frequent in every respect. It was also emphasized that trade forums and meetings could be held several more times this year.

While securing Turkey's place in the export market, its continuous progress draws attention. Turkey, which experiences different developments and rises every month, drew a table of progress in the first quarter of 2022. The country exported 60 billion 288 million dollars in the January-March period. This was recorded as the "best first quarter export" performance. Moreover, 5.6 billion dollars of exports to neighboring countries were also among the data.

Retired Turkish Ambassador Adnan Başağa's comments on the definition of a neighboring country and the situation in Turkey on the Official Site of the Ministry of Foreign Affairs draw attention. According to Başağa’s definition, due to Turkey's physical location, border neighbors can be classified as "Turkey's land neighbors". However, the framework that comes to mind at first glance is insufficient for today's understanding of trade and the evolution of commercial ties. In conclusion, considering that Turkey is a regional country due to its geostrategic location, it would be more accurate to define them as "Turkey's close neighbor by land and sea".

Based on this statement, 5.6 billion dollars of exports were realized to its land neighbors.

How Much Did Turkey Export to Its Land Neighbors?

Turkey exported 5 billion 636 million dollars to Iran, Greece, Iraq, Georgia, Syria and Bulgaria in the first quarter. This amount was 4 billion 323 million dollars in the same period of the previous year. Thus, exports to these countries increased by 30.4 percent in the January-March period compared to the same month of the previous year. This increase created hope both in the country's economy and in the expectations of manufacturers.

In the first quarter, the highest export was made to Iraq with 2 billion 446 million 554 thousand dollars. This country was followed by Bulgaria with 1 billion 59 million 293 thousand dollars. While Greece was among the data with 790 million 940 thousand dollars, Iran followed it with 560 million 265 thousand dollars. Georgia with 396 million 177 thousand dollars and Syria with 383 million 267 thousand dollars are other neighboring countries at the end of the list.

What Did Turkey Export the Most to Neighboring Countries?

When the distribution of Turkey's 3-month exports to its neighbors by sectors is analyzed, it is seen that the "chemical substances and products" sector takes the first place. In the January-March period, 856 million 548 thousand dollars were exported from this sector to 6 neighboring countries. This sector was followed by "grains, pulses, oilseeds and products" with 807 million 448 thousand dollars. Finally, "steel" was among the most imported products from Turkey with 525 million 456 thousand dollars.

Having a similar data table last year, Turkey continues to break records every year. Turkey is defined as a regional center in foreign trade due to its geopolitical position. In the same period last year, chemicals and products were in the first place in exports to its land neighbors. At the same time, Nakhchivan and Armenia are also included in the category of land neighbors. Although the data on Nakhchivan is unknown, there is no trade with Armenia.

The Greatest March Exports in Turkey

Minister of Commerce Mehmet Muş held a press conference with İsmail Gülle, President of the Turkish Exporters Assembly (TİM), at the Conference Hall of the Ministry of Commerce. In the press conference, foreign trade data was evaluated in general. In addition, he announced the foreign trade figures for March at the press conference held.

Muş emphasized that the momentum gained in exports in 2021 continued this year as well. He continued his words as follows. "Our exports in March 2022 increased by 19.8 percent compared to March of last year and reached 22.7 billion dollars." And he added, "This figure is the greatest ultimate figure for March of all time.

Minister Muş said that the ratio of exports to imports was 73.4 percent in March. He pointed out that this ratio, excluding energy, increased by 4.5 points to 95 percent compared to the same period of the previous year. Mentioning the export effect of the increase in imports, Muş continued his words. "When we evaluate all these data, we can say that our country has displayed a very strong export performance compared to the same period of the previous year."

Negative effects such as inflation movements, wars and epidemics cause many disputes in foreign trade. However, in addition to reinforcing ties with neighboring countries, foreign trade with European countries is gaining momentum day by day.

An increase in exports reveals an increase in production. In this context, manufacturers also enter the export sector. Turkish Goods exports to Turkey's land neighbor countries by all means of transportation. Acting with the slogan "From Turkey to the World", it covers not only neighboring countries but also all countries. For this reason, you do not need to think about procurement stages or buyers.

Turkey has an important place in the production of seafood and animal derivatives in the world. Turkey is a country that is surrounded by seas on 3 sides and about 30% of it is covered with forests. Exporting to 142 countries in the world, Turkey has already reached its target of 2023 in recent years. The new target determined for 2023 by Turkey, which realizes exports of 3.5 billion dollars, is 4.2 billion dollars. Changing market conditions and the transportation sector have positively affected Turkey during the pandemic period. What does Turkey sell as seafood and animal products, which countries does it export to, and what awaits the sector in the future?

Aquaculture Production and Export in Turkey

Aquaculture production, which was mostly made at the level of hunting in the past, has been done with farms recently. The establishment of fish farms on open and deep seas and using new techniques cause an increase in production. When the export-import data for 2020 is analyzed, it is seen that the export amount is 112 thousand tons. Likewise, it is seen that it is worth 893 million dollars from imports. According to the TUIK data, Turkey showed the greatest increase in aquaculture production in 2020 compared to the last five years. At the same time, a decrease of 11.2% was recorded in imports in 2020.

The most produced seafood includes sea bass, sea bream, and trout. 1 billion 20 million dollars of aquaculture exports realized in 2020 were made to 96 countries. 75% of these countries were European Union countries. Moreover, production-based export growth continued in 2021. Exports shifted more to countries such as Russia and Iraq than to the European Union in 2021. The expansion of the market has enabled Turkey to reach the export target earlier and expanded its logistics network.

What is the Export Data?

In 2021, Italy, one of the European Union countries, became the country with the most imports from Turkey. Italy imported 164 million dollars in total. Another European Union country where import demand increased was Russia. Russia, which stands out with its demand for Turkish salmon, imported 259 million dollars of fisheries and animal products in 2021. In addition, Russia's imports increased by 84 percent in 2021. The country with the most imports was Iraq with $555 million in 2021. Turkey’s aquaculture sector made the biggest contribution in 2021 with a total export of 1 billion 436 million dollars. As the export data shows, there has been some increase in exports compared to 2020.

Animal Derivatives Production and Export in Turkey

Animal foods generally consist of poultry meat, eggs, honey, milk, and dairy products. Turkey, with its 7 regions, is extremely suitable for animal production. There are dairy products and honey that are especially famous around the world. The foreign currency inputs of these products, which have high added value, are also quite high.

The seafood industry was followed by the poultry meat and egg industry with an export of 1 billion 312 million dollars. While poultry meat exported 926 million dollars, egg exports increased to 386 million dollars. The poultry industry increased its exports to China and Japan, especially in 2021. State-of-the-art production facilities and the fact that Turkey is a transit country in logistics are among the factors that facilitate trade. The dairy products sector, which was revived with the export visa it received to China, showed an export performance of 486 million dollars. While the honey sector brought 33 million dollars to Turkey, 303 million dollars of foreign exchange was obtained from the export of other products.

Opening of Chinese Market Boosts Exports

The opening of the Chinese market in dairy products since the beginning of the year has greatly strengthened the export performance of the sector. With the opening of the Chinese market for dairy products, Turkey gained a rapid export momentum. We can see this in export figures as well. Turkey exported 6 thousand tons of dairy products to China in March and earned 8 million dollars. In the January-March period, it exported 16.3 thousand tons of products worth 17.4 million dollars. With these figures, the People's Republic of China became Turkey's largest market for dairy products exports. Especially opening to Asian and Middle Eastern markets increases sectoral investments and competition.

Investments in the Sector will Increase Day by Day

Turkey has increased its product trade with the momentum it has gained in recent years, especially in the field of logistics. Turkey has become a material distribution and sales base to Asian, European, and African countries. In this way, exports of value-added products are increasing gradually. Turkey has become the new address of countries that prefer reliable and short-distance transportation due to the Covid-19 pandemic. Turkey, which has already achieved its 2023 targets in the export of seafood and animal products, continues to work to export more.

Mediterranean Ready-Made Garment and Confection Exporters' Association announced its February export data. The Association reached $27.6 million in exports in February.

Gürkan Tekin, the chairman of the Association, made comments on the export's success. He stated that they sold 3 thousand 288 tons of products in international markets in February. Tekin also touched upon the distribution of exports based on countries. “In February, we reached $27.6 million of exports with an increase of 11.6 percent compared to the same month of the previous year. In this period, there were numerous countries where we reached the highest export values.

The Netherlands ranked first with an increase of 300 percent and $5.9 million. Spain came in second with a decrease of 3 percent and $5.3 million. On the other hand, Germany took third place with a 1 percent increase and $4.4 million.

The War Startled the Industry

Tekin stated that the Russia-Ukraine war caused great uneasiness in the sector. "Cancellations and delays have started in the orders of European brands. They have closed more than 800 stores in these two countries and other countries around them. The international fashion community Inditex, headquartered in Spain, has closed its stores in Russia. Due to the uneasiness, Inditex has closed its 800 stores, including its stores in Ukraine, Moldova, Georgia, and other countries in this region. The Swedish ready-to-wear brand H&M, French, and US-based brands are also exiting the Russian market.

“Laleli, Merter, and Osmanbey markets, which sell to tradesmen from Ukraine and Russia, were also seriously affected. Therefore, there are 20% cancellations in the agreements and orders received by Turkish ready-to-wear and apparel companies. We are worried that these rates will increase even more. In addition, Turkish brands have more than 1000 stores and sales points in these two countries. They have reduced or stopped their activities for March and the following months.”

He also stated that there was a slowdown in exports to countries in the region close to the hot conflict. He said they were concerned about the increase in order cancellations from Poland, Romania, and Moldova. Tekin wished the war that caused blood, tears, and destruction to end as soon as possible. He stated if the conflict environment didn't last long, they would be able to compensate for the negative reflections in exports within the year.

Striking Decline in EU Countries

Tekin stated that raw material, freight, and energy costs have increased exponentially around the world. In this period, the Turkish ready wear and apparel industry is showing great efforts. They try to make the best use of the opportunities that arise with the tendency to supply closely. The last period brought the export figures to higher levels. However, the sector was also adversely affected by the rising inflation in the European Union countries.

The Turkish ready-to-wear and apparel industry is the strongest solution partner of the European fashion industry. It does a great job of environmentally friendly sustainable production and sourcing of recycled products. Thus, it should make the right and timely investments in design and branding for sustainable production.

“There have been serious meltdowns in the working capital of our companies due to increased input costs and shrinking markets. To be more effective in the international arena, we need to increase the limits on support packages urgently and seriously.”

Women's and Men's Clothing at the Top

The Association mostly exported women's and men's outerwear and other ready-made goods. In women's outerwear, it reached $12.1 million with an increase of 23 percent. Exports increased by 42 percent in men's outerwear to $4.9 million. In other ready-made goods, it exported $4.5 million with an increase of 10 percent. The Netherlands ranked first in the list of countries with the highest export values ​​in this period, with an increase of 300 percent and an export value of $5.9 million.

The share of ready-made wear and apparel in Turkey's total exports in January was 9.85 percent. Last month, the province with the highest export was Istanbul with $1.1 billion. Compared to the same period of 2021, the megacity's exports increased by 7.5 percent. Bursa follows it with $137.1 million, İzmir with $132.8 million, and Denizli with $99.4 million. Düzce, Tekirdağ, Gaziantep, Kahramanmaraş, Ankara and Hatay were also among the top 10 cities.

EU countries ranked first in the sector with $1 billion 153 million in the country groups to which the highest exports were made in February. Other European countries ranked second with $219 million, and Middle Eastern countries ranked third with $146 million. The apparel industry has made a big leap forward after 7 years. It ended 2021 with $20.3 billion in exports.

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Gaziantep, Turkey's fifth-largest exporting province, achieved 4.8% of Turkey's exports in the first quarter of 2022. Gaziantep hit 2 billion 646 million 385 thousand dollars, with exports of 1 billion 19 million 822 thousand dollars in March.

Tuncay Yıldırım is the Chairman of the Board of the Gaziantep Chamber of Commerce. He commented on the Turkish Exporters Assembly March export results. He said, "Our efforts yield fruit, Gaziantep continues to expand. We had a tremendous month in March, exporting more than a billion dollars. I congratulate our exporter members and all of their staff on their success in overseas commerce."

GTO President Yıldırım stated that Gaziantep continued its successful performance in 2021 by turning it on its head in 2022. "Despite the difficult times, Gaziantep residents do not hesitate to produce, work, and add value to their city and country."

He continued on to say, “We managed to reach $2.6 billion in the first quarter of 2022 with our monthly exports. It increased by 16.81% compared to the same month of the previous year and exceeded 1 billion dollars. We achieved an increase of 15.79% compared to the same quarter of the previous year. With this success we achieved in the first quarter, our share in Turkey's exports was 4.8%.”

Projects for Foreign Trade Continue

He stated that the Gaziantep Chamber of Commerce added value to the city with the projects it had implemented. It had made significant contributions to Gaziantep's current export success. President Yıldırım spoke on the matter. “As GTO, we produce projects in all areas of commercial, social, and cultural fields, and we carry out countless studies and services together with our professional team. We are trying to add value to our members and our city with many services such as GTO MYM, GTO Academy, GETHAM, GTO Foreign Trade Intelligence Center.”

“With the awareness that our direction is always foreign trade, we are starting important projects in this field. As it is known, we will bring new foreign trade professionals to our city, provide foreign trade intelligence coaching to our businesses, and offer them new opportunities with B2B organizations, with our new project, which we held the opening meeting in the past few days. We know very well that these services will return to our city again. Our members, who have achieved countless successes with the service and support they receive from our chamber, will make us proud with their new success stories."

Turkey's First-Quarter Exports Set A New Record

The Turkish Exporters Assembly (TIM) revealed the March 2022 export data. The Turkish exporter set new records in March, as it did in the first two months of the year. According to the report, Turkey's exports climbed by 19.8 percent in March compared to the same month the previous year, reaching 22.7 billion dollars. With these data, Turkey achieved its best first-quarter performance and monthly export total in history.

The high level of company interest in exports was mirrored in the number of exporting enterprises in March as well. In March, 1,986 new businesses joined the export family by exporting for the first time. Turkish exporters increased their exports to 159 nations. In March, Turkey’s top three export destinations were Germany ($1.9 billion), the United States ($1.5 billion), and Italy ($1.2 billion). While 20 industries boosted their exports last month, the industries with the highest exports were chemicals and goods ($2.9 billion), the automobile industry ($2.7 billion), and the steel industry ($2.2 billion).

Turkey's Difference in Export

TIM President Ismail Gülle stated that the export family did exceptionally well in the first quarter of the year. He added, "We witnessed this again in our March results. To meet our aim of $250 billion in 2022, we needed to grow our exports by 2.1 billion dollars each month over the previous year. According to the most recent estimates, we are on track to reach $250 billion in the first quarter, with a surplus of $10 billion. It is critical that the current pace of the climb continues. We are moving forward with strong commitment and trust toward all of our objectives."

Gülle continued, "I congratulate each member of our export family and our esteemed Presidents who contributed to this great success. While export expectations in the world have decreased, uncertainties and risks have increased, Turkey differed positively from other countries in March and broke the export record in the history of the republic. At this time, our total exports for the first quarter of the year had surpassed $60 billion. These statistics are quite crucial in the present prediction on the route to our goals."

“We are on the road to 250 billion dollars in the first quarter, with an increase of 10 billion dollars”

Gülle said that they needed to increase their exports by 2.1 billion dollars every month compared to the previous year in order to reach the target they set for 2022, which is 250 billion dollars. “It is extremely important that the current momentum continues with the rise. We are walking towards all our goals with great determination and faith.”

Wheat and barley are strategically important products as two basic consumption materials. Especially with the Covid-19 epidemic process, countries started to produce agricultural products to meet the needs of their domestic market. Turkey produces and trades cereals to meet the needs of both the domestic and foreign markets. As one of the world's leading wheat and barley producers, Turkey also draws attention with its flour and pasta production. Although the Russia-Ukraine war affected the grain trade, Turkey has enough cultivation land and technology. Thus, what are the prominent points in Turkey's barley and wheat production?

Will the Russia-Ukraine War Affect the Sector?

Turkey makes 24% of its global wheat trade with Russia and Ukraine. The country exported about 7.5 million tons of wheat last year, with Russia importing 66 percent of that wheat and Ukraine 18 percent. Turkey exported 3 million tons of flour in 2021 and generated $1.1 billion in revenue. Although this war affects the world market, Turkey will not be affected much.

According to industry representatives, there are some reasons for this. It will coincide with the period when the effects of the war diminish, as it is 50 days before the grain season starts in Turkey. Another important development is the heavy rainfall this year. There will be no water shortage and drought, especially in irrigation and other needs. In light of this information, although there are minor exceptions in cereal markets, there is no need for export measures in Turkey.

Yield Amounts by Years

According to TUIK data, Turkey produced 19 million tons of wheat in 2019 and 20.5 million tons in 2020. Turkey produced 17.7 million tons of wheat in 2021. The yield is expected to be high this season due to the rains. Relatively, the late start of the grain season in Turkey may coincide with the possible solution between Russia and Ukraine. Therefore, there will be no reduction in production and no stocking in Turkey.

High Yield Expected in Wheat and Barley in 2022

Turkey can achieve very high yields this year, especially in terms of wheat and barley. Turkey aims to produce more than 20 million tons of grain, with a maximum of 3.5-4 million tons for pasta. This easily meets Turkey's needs. Both the transferred stocks and the stocks in the hands of the industrialists and traders are extremely sufficient. Therefore, Turkey will not experience any problems in the short and medium-term.

There is a Balance in the Markets

After the latest developments, the state started to take some measures to protect both producers and industrialists. The first of these is the support of industrialists. The Turkish Grain Board (TMO) has been subsidizing the system for months and providing affordable flour to industrialists. Despite the recent increase made by the Turkish Grain Board, flour prices are still well below the market. The real price in the market and the price announced by the Turkish Grain Board are still in favor of bakers and flour industrialists. There is a healthy pre-summer balance on the market. It is of great importance that the prices remain balanced in the last quarter of the year.

Some of the pulses needs in Turkey are met from local production in the country, and some of them are imported. Imported wheat is converted into flour and pasta and sold with high added value. After the COVID-19 epidemic, prices rise from time to time in connection with the position and climate of the producers in the world. Looking at the year in general, the season expectation is moving in a positive direction.

Producers and Private Sectors Cooperation Are Important

It is extremely important to produce quality grains for both producers and industrialists. In the improvement studies carried out with the support of the Ministry of Agriculture, there was a significant increase in the yield of wheat and barley. More efficient products are transformed into value-added products in the industry, making a serious contribution to the country's economy. Especially during the pandemic period, Turkey produced enough products for both domestic and foreign markets with stable production.

Turkey Uses Wheat and Barley in Value Added Products

Turkey uses imported wheat in value-added products. This generates more income. Turkey processes all of the imported wheat and exports them without presenting them to the domestic market. Since 2002, Turkey has increased 11 times in flour exports, 30 times in pasta exports, 15 times in bulgur exports, 5 times in semolina exports, and 4 times in biscuit exports. In the last 19 years, Turkey has exported 89 million tons of wheat and its products, worth 35 billion dollars and 79 million tons of wheat imports totaling 22 billion dollars.  While Turkey is the country that exports the most flour and bulgur in the world, it ranks second after Italy in pasta export.