The following agreements have been replaced by the Eu-Turkey Customs Union: Article 16 of The Turkey-EC Association Council`s Decision 1/95 on the implementation of the final phase of the customs union provides that Turkey will take, among other things, the necessary measures and negotiate mutually beneficial agreements with the countries concerned. Trump`s move had shaken the Turkish pound. Since then, relations between the two countries have been strained over differences ranging from Ankara`s plan to buy a Russian missile system to divergent interests in Syria. “Following a free trade agreement between the United States and Turkey, Chinese dominance in the African market could be shattered if we increase our production capacity and diversify our products,” Vergil said. In the same speech, Graham referred to these two issues as obstacles to the establishment of a free trade agreement. “The way we do this is to overcome our differences. This cannot be done through the use of military force,” the senator said. Despite political conflicts, the two countries retain strong trade potential, particularly in the context of the U.S.-China trade war, where Washington is seeking new partners to prevent the expansion of China`s global economy. In 2018, Turkey was the 28th largest U.S. merchandise export market and the 33rd largest supplier of merchandise imports. Turkey is the world`s tenth largest buyer of LNG exports to the United States and an emerging regional energy centre. Major export categories from the United States to Turkey include aircraft, mineral fuels, iron and steel, machinery, cotton and agriculture.

Among the main categories of import from Turkey are machinery, vehicles, carpets and other textile coatings, iron and steel and their products, agriculture and stone, plaster, cement. Reported U.S. direct investment in Turkey is mentioned through production, wholesale trade, financing and insurance. In today`s world, countries tend to enter into bilateral and regional free trade agreements, as the World Trade Organization (WTO) has achieved a high level of liberalization, with insufficient WTO rules under current conditions and an inefficient multilateral trading system to allow better market access. As a result of this trend, some 400 free trade agreements are being notified to the WTO. This page lists the free trade agreements signed by Turkey. [1] In 1995, Turkey signed a customs union with the European Union for products other than agricultural products and services. Since 2018, the EU has been Turkey`s main trading partner, with 50% of its exports and 36% of its imports. [2] Finally, Lindsey Graham, a powerful Republican senator with strong influence over U.S. President Donald Trump, suggested that relations between Washington and Ankara could move to the next level if the two allies signed a free trade agreement. According to a WorldCity analysis of most updated data from the Census Bureau us, Turkey`s trade with the United States in the first four months of 2020 was $7.66 billion, an increase of nearly 17% over the same period of the previous year.

Without prejudice to WTO provisions, the Turkey-EU customs union is the most important legal basis for Turkey`s free trade agreements. Within the framework of the customs union, Turkey is adapting its trade policy to the EU`s common trade policy. This rapprochement concerns both autonomous regimes and preferential agreements with third countries. Turkey negotiates and concludes free trade agreements with third countries in parallel with the EU. Under the EU common tariff, preferential trade regimes are the most important part of trade policy towards third countries. The friendship between the United States and Turkey dates back to 1831, when the United States established diplomatic relations with the Ottoman Empire.