Turkiye and GCC Strengthen Economic Ties with Free Trade Agreement Negotiations
In a significant move, Turkiye and the Gulf Cooperation Council have signed a deal to kickstart negotiations for a free trade agreement, signaling a boost in economic ties between the two sides.
Strengthening Partnership
Jassim Mohammed Al-Budaiwi, the secretary-general of the GCC, emphasized that the agreement signifies the deepening partnership between Turkiye and the countries in the region. He highlighted the regional and international recognition achieved by the GCC countries in various sectors such as trade, economics, and finance.
Diversifying Revenue Sources
Al-Budaiwi pointed out that the agreement is part of the joint efforts of the countries involved to diversify their revenue sources and strengthen their economies.
Boosting Economic Relationship
Omer Bolat, the minister of trade of Turkiye, expressed optimism about the FTA with GCC, stating that it will enhance the economic relationship between the two sides. He emphasized that the agreement will promote trade liberalization, facilitate investments, and increase trade between Turkiye and the region.
Historical Background
The institutional relations between Turkiye and GCC countries began with the signing of the “Framework Agreement for Economic Cooperation” in 2005. Since then, trade exchange between the two sides has seen significant growth, reaching $29.6 billion in 2022.
Foreign Direct Investment
GCC countries have played a crucial role in foreign direct investment in Turkiye, accounting for 7.1% of the total since 2020. Qatar stands out as the top investor with $9.9 billion, followed by the UAE and Saudi Arabia.
Expanding Trade Agreements
In addition to the FTA with GCC, Turkiye has also initiated negotiations with the UK for a new trade deal that includes services and goods. The UK, which previously had an FTA with Turkiye, aims to strengthen its trade relationship with the country through a modernized agreement.