Turkish exports to EU rise to $54.5B in H1 as supply chains realign
A general view of the Port of Haydarpaşa, Istanbul, Türkiye, April 9, 2024. (EPA Photo)


Türkiye’s exports to the European Union surged 4.7% to $54.5 billion (TL 2.56 trillion) in the January-June period as the bloc shifted its supply chains to more reliable and closer regions during the Middle East crisis, a head of a leading commercial chamber said.

The Turkish auto sector accounted for most of the exports to the EU in the first half of the year, with $15.57 billion, according to the Türkiye Exporters Assembly (TIM).

The auto industry was followed by chemicals and chemical products at $7.1 billion, ready-to-wear fashion and apparel at $4.7 billion, and ferrous and non-ferrous metals at $4.18 billion.

Germany was the recipient of the largest Turkish exports in January through June, with $10.1 billion, up 4.3%, followed by Italy with $6.8 billion, Spain with $5.6 billion, France with $5.3 billion, and Romania with $3.7 billion.

Exports from Istanbul, the largest source of exports in the first six months of the year, to Germany totaled $3.8 billion. While Germany received the most exports from Istanbul, the country was followed by Italy, Spain, France and the Netherlands, the data showed.

Romania continued to rank among the top five EU countries that were also the largest recipients of Turkish exports, while exports from Istanbul to the country reached $1.2 billion.

Türkiye and the EU’s economic relations have grown over the years, with mutual trade volume, investment flows and product integration.

The EU is Türkiye’s largest export market and a key market for Turkish manufacturers, especially those operating in sectors such as automotive, machinery, chemicals, textiles and home appliances.

The ongoing restructuring of global supply chains is further elevating Türkiye’s potential to become a reliable production and supply hub for Europe, while factors such as the green and digital transformation, the need to diversify supply chains, and the potential updating of the customs union could further deepen trade integration between Türkiye and the EU.

Şekib Avdagiç, president of the Istanbul Chamber of Commerce (ITO), told Anadolu Agency (AA) recently that European countries were shifting their supply chains to nearby, more reliable regions, making Türkiye "a natural hub for production and exports," as the world was going through a challenging and uncertain period.

'New global order'

"Türkiye-EU relations must be addressed with a new approach just as political and economic developments around the globe are shaping a new global order," he said.

Avdagiç said Europe was restructuring not only its military deterrence but also its industrial capacity, supply chain resilience, and technological independence in this climate, while the bloc’s security and economic infrastructure had become increasingly intertwined.

He said Europe aimed to reduce its foreign dependence on defense and advanced manufacturing technologies, which, Avdagiç said, some member states might not prefer to acknowledge, leading to more selective and controlled technology-sharing models with Türkiye.

"The energy security aspect of Türkiye’s relationship with Europe is also one of the most critical layers as Türkiye stands out as a sort of transit country and a regional energy distribution hub, facilitating energy flows," he said.

"The flow of energy from the Eastern Mediterranean, the Caspian Sea, and the Middle East to European markets has become a component of geopolitical stability, which has driven Türkiye-EU relations beyond the traditional foreign policy framework into a multilayered, strategic structure."

"This structure, through an evolving base of security, economic, and industrial policies, is shaped not only by short-term needs but also by a foundation of structural interdependence," he added.