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The importance of trade relations between Turkiye and Germany in the European market

Updated: Jul 10

Turkiye and Germany in the European market

The importance of trade relations between Turkiye and Germany in the European market

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1. Turkish Exports to Germany in 2024: A Comprehensive Overview

The trade relations between Turkey and Germany are among the most robust and sustainable in Europe, owing to a long history of economic cooperation between the two countries. In this article, we will review the details of Turkey's exports to Germany in 2024, analyze the key sectors contributing to these exports, and discuss the factors influencing the trade relationship between the two nations.


2. Export Volume and Sectoral Distribution

In 2024, Turkish exports to Germany witnessed a significant increase compared to previous years. The value of Turkish exports to Germany reached approximately $20 billion, reflecting a growth of 10% compared to 2023. These exports were distributed across several key sectors:


  • Automotive Sector and Spare Parts: This sector is one of the major export sectors, with cars and automotive parts representing a significant portion of total exports. Many Turkish companies manufacture and supply automotive parts to major German companies.


  • Clothing and Textile Sector: Ready-made garments and textiles rank second in Turkey's exports to Germany. Turkish products are known for their high quality and competitive prices, making them a preferred choice in German markets.


  • Agricultural and Food Products:This sector includes fresh and dried fruits and vegetables, along with other agricultural products. Turkish products enjoy a good reputation in the German market due to their quality and compliance with health standards.


  • Electrical Machinery and Equipment: This sector also continues to grow, with Turkey exporting various types of electrical machinery and equipment to Germany, used in various German industries.


3. Factors Influencing Turkish Exports

Turkish exports to Germany are influenced by several economic and political factors, including:


  • Trade Policies:Trade policies between the two countries play a crucial role in determining the volume of trade. Trade agreements and applied tariffs directly impact product prices and competitiveness in the markets.


  • Exchange Rate: The exchange rate of the Turkish lira against the euro significantly affects export volumes. A favorable exchange rate for the lira may make Turkish products less costly for German importers, thereby boosting exports.


  • Product Quality: The high quality of Turkish products plays a major role in enhancing exports. Turkish companies ensure their products meet European standards, enhancing consumer confidence in German markets.


  • Political Relations: Stable political relations between Turkey and Germany contribute to enhancing trade exchanges. Any political tensions may negatively impact trade relations and lead to restrictions or sanctions.


4. Challenges and Future Opportunities

Despite the successes of Turkish exports to Germany, there are challenges that need to be addressed to further enhance these successes:


  • Logistical Challenges: Improving transportation and shipping infrastructure can reduce transportation costs and expedite export processes.


  • Competitiveness: Turkish companies need to improve the competitiveness of their products in terms of quality and price to face competition from other countries.


  • Technological Development: Investment in technology and innovation can open new avenues for Turkish exports and enhance their competitiveness.


5. Key Successes and Future Trends

In addition to the primary sectors mentioned, there are notable successes and future trends that play a significant role in boosting Turkish exports to Germany:


  • Investment in Green Technology:With increasing environmental awareness in Europe, investing in green technology and sustainable products is a significant opportunity for Turkish companies. These companies can focus on developing environmentally friendly products that meet stringent environmental requirements in Germany, thus enhancing their export opportunities.


  • Education and Training: Enhancing skills and training in the industrial and commercial sectors can improve the quality of Turkish products and make them more attractive to the German market. Collaborative programs between Turkish and German universities can contribute to this effort.


  • Expansion into Niche Markets: Focusing on niche markets (specialized markets) can give Turkish companies a competitive advantage. Markets requiring customized or high-quality products can be promising areas for export.


6. Impact of Geopolitical Changes

Geopolitical changes significantly impact Turkish exports to Germany. Political relations between the two countries remain a crucial factor in determining trade trends:


  • European Union and Trade Agreements: Turkey maintains strong relations with the European Union, particularly Germany. Trade agreements between Turkey and the EU facilitate the movement of goods between the two sides. However, any changes in these relations may lead to adjustments in export policies.


  • Regional Tensions:Regional tensions in the Middle East indirectly affect the Turkish economy. Stability in the region contributes to the Turkish economy's stability, thereby enhancing the country's export capacity.


7. Government Role and Supportive Policies

The Turkish government plays a vital role in supporting the export sector through:


  • Financial Support and Incentives: The Turkish government provides financial support and incentives to exporting companies, improving their competitiveness in international markets.


  • Promotional Policies:The government organizes trade fairs and promotional programs in Germany to showcase Turkish products and raise awareness among German consumers.


  • Negotiation of New Trade Agreements: The government continues to negotiate new trade agreements to enhance economic relations with Germany and other EU countries.

In conclusion, Turkish exports to Germany in 2024 reflect the strength of economic relations between the two countries, highlighting the importance of continuing to develop these relations to achieve sustainable growth. By focusing on innovation, improving product quality, and leveraging environmental and technological opportunities, Turkish companies can enhance their presence in the German market and outperform their competitors. Additionally, political and economic stability plays a crucial role in achieving these goals, necessitating efforts from both the Turkish and German governments to strengthen these factors for their mutual benefit.


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