Trade Agreement Between Turkey and the US: An Overview
Turkey and the United States have had a long history of trade relations, dating back to the signing of the 1830 Treaty of Peace and Friendship. However, in recent years, the trade relationship between the two countries has been strained due to various political and economic factors. In this article, we’ll take a closer look at the trade agreement between Turkey and the US, its impact on the economy of both countries, and the challenges that lie ahead.
The Trade Agreement with Turkey: What is it?
In 2020, Turkey and the United States signed a trade agreement, which was hailed as a major milestone in their economic relations. The agreement aims to increase bilateral trade between the two countries, eliminate trade barriers, and promote economic growth. The agreement covers a wide range of sectors such as agriculture, manufacturing, and services.
Impact on the Economy
The trade agreement is expected to have a positive impact on the economy of both countries. It will create new opportunities for businesses, increase exports, and boost economic growth. Turkey is the world`s 17th largest economy, with a population of over 80 million people, and the trade agreement will open up new markets for US businesses. The United States is Turkey’s fourth-largest trading partner, and the agreement will strengthen the economic relationship between the two countries.
Challenges Ahead
Despite the optimism surrounding the trade agreement, there are challenges that lie ahead. The Turkish economy faces several structural challenges, including high inflation, a large current account deficit, and a weak currency. These factors could hamper the benefits of the trade agreement. Furthermore, there are political tensions between the two countries over issues such as Turkey`s purchase of Russian missiles and its involvement in Syria, which could also impact the implementation of the trade agreement.
Conclusion
The trade agreement between Turkey and the United States is a significant step towards strengthening their economic relations. It will create new opportunities for businesses, increase exports, and boost economic growth. However, the implementation of the trade agreement will face several challenges, both economic and political. Nonetheless, the agreement marks a positive turn in the relationship between the two countries, and it is hoped that it will serve as a catalyst for greater economic cooperation in the future.
