“Over the next 18 years, Turkey`s industrial and technological base expanded considerably. As a result, several sectors of the Turkish economy could now benefit from a bilateral trade agreement with the United States,” said Matthew Bryza, a former senior U.S. diplomat who was also assistant secretary of state for Europe and Eurasia. Turkey was one of 120 countries participating in the GSP, the oldest and largest trade preference program in the United States. The aim is to promote economic development in the beneficiary countries and territories by removing tariffs on thousands of products. Washington, Brussels and Ankara could reap many economic and strategic benefits from a bilateral free trade agreement between the United States and Turkey, but they must act quickly to ensure that their efforts are linked to the trade negotiations already underway between the United States and the EU. 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. Ata Akiner, a former research intern with the Washington Institute`s Turkish Research Program, is a trade policy analyst at Curtis, Mallet-Prevost, Colt and Mosle LLP. But Ankara had hoped that Washington would not advance the decision and said it would oppose the $75 billion target for mutual trade between President Donald Trump and Turkish President Tayyip Erdogan. “Trade relations have been negatively affected by U.S. taxes on Turkey`s steel exports and other trade barriers due to political disagreements, which has led to mistrust between the two countries,” Vergil said.
“In the export and manufacturing sector, a free trade agreement with the United States will bring enormous benefits to Turkey,” Vergil told TRT World. Washington and Ankara already have a draft free trade agreement: their recent trade agreements with Korea. Seoul`s separate free trade agreements with Turkey (which came into force in May of this year), the United States (March 2012) and the EU (July 2011) are considered “21st century agreements” containing the most modern themes and provisions, providing a strong framework and a common denominator that can serve as a precedent for the US-Turkish negotiations. 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. “If you ask me what the United States and Turkey could do to change relations for the better, it would be a free trade agreement – not only that more trade would reach $100 billion, but also to effectively integrate economies through a free trade agreement,” Graham said Wednesday at a conference hosted by the U.S. Economic Council and Turkey.