Turkey’s Strategic Position in Global Trade
Turkey holds a unique geographical position that bridges Europe, Asia, and the Middle East, making it a strategic hub for global trade. With key logistical arteries such as the Bosphorus and Dardanelles Strait, the country enjoys significant advantages in transit trade and goods transportation. This potential has played a vital role in driving Turkey’s export performance in recent years.
As of 2023, Turkey’s total exports reached $254.2 billion, and this figure is expected to grow by 10% by 2025. So, which sectors stand out in Turkish exports, and how will the country shape its role in global trade in the future?
Turkey’s Leading Export Sectors
Turkey’s export strength lies in its diversified production capacity and competitive position on the global stage. Here are the key sectors driving the country’s growth:
1. Textiles and Apparel
Turkey is a global leader in the textile and apparel market. Particularly for Europe, Turkey is a reliable supplier due to its high-quality products, fast delivery times, and competitive prices. As the popularity of sustainable textile products increases globally, Turkey’s export potential in this area is also set to grow by 2025.
- 2024 Projections: The textile sector is expected to generate $30 billion in exports.
- Adapting to Emerging Trends: With the rising demand for sustainable and eco-friendly products, Turkey’s textile industry is focusing on innovative solutions.
2. Agriculture and Food Products
Turkey plays a leading role globally in the export of hazelnuts, olive oil, wheat-based products, and fresh fruits and vegetables. The country supplies 70% of the world’s hazelnut demand, while also leading in flour exports.
- Key Products: Hazelnuts, olive oil, flour, and dried fruits.
- Target Markets: Europe, the Middle East, and Asia play dominant roles in Turkey’s agricultural exports.
3. Defense and Technology Products
In recent years, Turkey has seen significant growth in its defense industry. Global interest in products such as drones—specifically the Bayraktar TB2 developed by BAYKAR—continues to rise. In 2024, defense industry exports surpassed $5.5 billion, marking a record achievement. This figure is expected to grow by 15% in 2025.
- Emerging Products: Unmanned aerial vehicles, armored vehicles, and electronics.
- Expanding Markets: North Africa, Asia-Pacific, and South America are the new hotspots for Turkey’s defense exports.
Challenges in Turkey’s Trade Landscape
While Turkey’s trade volume continues to grow, there are challenges it needs to address to ensure sustainable success in global markets. Overcoming these challenges requires strategic planning and focused actions.
Currency Fluctuations
The volatility of the Turkish Lira poses challenges for importers and exporters, particularly when calculating costs and margins. Fluctuating currency values can directly impact the competitiveness of Turkish products. Therefore, exporters must adopt forward-looking hedge strategies to mitigate risks.
Rising Logistics Costs
With increasing energy prices and transport costs, coupled with global supply chain disruptions, logistics expenses are becoming a burden for exporters. To address this, Turkey must strengthen its port infrastructure and develop more efficient rail transportation systems.
Turkey’s 2025 Trade Strategies and Opportunities
For Turkey to solidify its presence in the global trade market, it needs to focus on the following strategies:
1. Exploring New Markets
Diversifying export routes will enhance the country’s economic resilience. Growing economies in Africa, South America, and Southeast Asia offer significant potential for Turkish exporters to expand.
2. Investing in Branding
To achieve greater global recognition, Turkish companies should focus on branding their products. “Made in Türkiye” should become synonymous with high-quality and reliable goods in international markets.
3. Investing in Technology and Digitalization
To create more value in global trade, Turkey must actively utilize e-commerce platforms and digital export channels. Additionally, integrating technologies like artificial intelligence, automation, and blockchain in logistics and trade processes will future-proof the country’s competitiveness.
The Future of Turkey’s Foreign Trade
Turkey’s geographical advantages, competitive industrial sectors, and supportive trade policies continue to drive its foreign trade growth. However, achieving sustainable growth and strengthening its global position calls for innovative strategies and policy advancements.
The goal for 2025 and beyond is not only to increase export volume but also to focus on high-value-added products. By leveraging its logistical potential and embracing technological advancements, Turkey can further strengthen its role in global trade.
