ANKARA: With the years-long Western sanctions against Tehran being lifted, the volume of Turkish exports to Iran is expected to rise between 8 and 10 percent year-on-year in 2016, according to the Turkish Exporters’ Assembly (TİM).
TİM Chairman Mehmet Büyükekşi said the end of embargoes against Iran will contribute to an 8 to 10 percent increase in Turkish exports to Iran in 2016 and even more in the future. The rise could be driven particularly by exporters in the automotive, ready-to-wear, textile, machinery and chemical industries, Büyükekşi added.
In a press meeting held to share exporters’ expectations and goals for 2016, Büyükekşi said on Wednesday that the total export volume is anticipated to increase from its 2015 level of $144 billion to $155.5 billion in 2016. Underlining that the main target market would be the EU, Büyükekşi said the expected visa liberalization for Turkish nationals visiting EU member states and negotiations to upgrade to the 20-year-old customs union between Turkey and the EU are expected to contribute to an increase in exports. According to official data, EU countries are responsible for 46 percent of Turkish exports.
Turkey’s overseas sales suffered an 8.7 percent decline year-on-year in 2015 because of, according to TİM, shrinking global trade volume. But political instability and multiple ongoing conflicts surrounding the countries in Turkey’s periphery also contributed to the decrease as Turkey’s exports to almost all its neighbors recorded drops last year.
“We just got through a pretty restless year and a number of difficulties. We hope 2016 will be better for our economy and exports,” Büyükekşi said, adding that Iran will play a big role in realizing this goal.
The US, EU and UN lifted most sanctions on Iran over the weekend in return for Tehran rolling back its nuclear program, a lucrative development that is expected to help Iran rejoin the global economy, providing optimism that new bilateral business opportunities will be created.
Büyükekşi also said TİM is considering opening a trade center in Tehran, through which Turkish businesses could expand business relations with their Iranian counterparts.
“We are poised to hire a three-story building at a popular spot in Tehran. We could use one floor for bilateral meetings, another floor to have representatives from Turkey’s automotive, ready-to-wear, chemical, machinery, furniture and domestic appliances sectors. … Another floor could be allocated for the use of Turkish Airlines [THY],” Büyükekşi added.
On the back of sanctions, Turkish exports to Iran totaled $9.9 billion in 2012, but fell to $4.1 billion in 2013, $3.8 billion in 2014 and $3.68 billion in 2015.
