The Turkish government has worked with the Boston Consulting Group to secure a major bilateral trade agreement with the United States. The proposed deal is expected to help close the huge trade deficit left by the deteriorating relationship between the United States and China.
In the fall of 2019, the Turkish and US governments stepped up efforts to accelerate the achievement of a $ 100 billion trade target. A meeting in Washington brought together Turkish-American Business Council (TAÄ°K) President Mehmet Ali YalÃ§Ä±ndaÄ, President of the Turkish-American Council (ATC) General James Jones, and officials from the American Chamber of Commerce and the Boston Consulting Group (BCG).
A year later, TAIK claimed that Turkey’s export demand could help offset import potential blocked by the US imposition of tariffs on China. As tensions between China and the United States continued to grow, TAIK Chairman Mehmet Ali YalÃ§Ä±ndaÄ commented that alongside the current Covid-19 pandemic, Turkey is also expected to benefit from a major change in supply chains after the epidemic.
âWe believe that these changes will also create very positive opportunities for relations between Turkey and the United States. But we need to take action as soon as possible to take advantage of these opportunities, âhe said. âTo this end, we have launched a new in-depth study with BCG. In this study, we assess the opportunities that will arise from China’s loss of trade with the United States and determine the steps Turkey needs to take to replace China.
TAIK has previously worked with BCG to find ways to achieve a bilateral trade volume of $ 100 billion between the two countries. According to the study by world trade experts and research teams at BCG, the contraction of the trade corridor between the United States and China in 2019 represents a major opportunity to achieve this, especially since it is likely to happen. deepen in the years to come.
The United States reduced its imports from China from $ 91 billion to $ 472 billion in 2019, and still has a trade deficit with China of around $ 350 billion. Last year, the United States turned to importing from other countries like Vietnam, Mexico, and Taiwan. Its imports from these countries increased by $ 18 billion, $ 12 billion and $ 9 billion respectively.
Commenting on this, YalÃ§Ä±ndaÄ said: âTurkey, on the other hand, increased its exports to the United States by around $ 400 million in 2019 and did not get the slice of the pie as much as it wantedâ¦ By 2023, the trade corridor between the United States and China is expected to shrink further from $ 150 billion to $ 200 billion. This presents extremely important opportunities for other countries.