Treasury and Finance Minister Mehmet Şimşek said Friday that Türkiye and Germany have significant potential to deepen cooperation in key industries and strengthen partnerships in third-country markets.

Şimşek's remarks came after he met with German Economy and Energy Minister Katherina Reiche in Ankara, where the two sides discussed bilateral economic ties, opportunities for closer cooperation and recent geopolitical developments.

Reiche arrived in the Turkish capital for two days to help foster new and deeper business activity in Türkiye. She was accompanied by representatives from the energy, tourism and technology sectors.

In a post on social media following the talks, Şimşek said Türkiye and Germany were "natural strategic partners" at a time when companies and governments worldwide are seeking to diversify supply chains and reduce vulnerabilities.

"There is tremendous scope to expand our cooperation in defense and aerospace, mobility, energy and digital transformation," he noted.

"There is also significant potential to strengthen our partnerships in third-country markets where both countries already maintain a strong presence," Şimşek added.

Germany is Türkiye's largest trading partner, with bilateral trade volume exceeding $52 billion, and is one of the leading sources of foreign direct investment in the country.

Reiche also met with Turkish Trade Minister Ömer Bolat as part of the Türkiye-Germany Joint Economic and Trade Commission, or JETCO, meeting.

Trade goal

During the meeting, officials signed a new economic cooperation protocol and reaffirmed their goal of increasing bilateral trade to $60 billion.

The talks covered trade, investments, industrial cooperation, energy transition, green and digital transformation, transportation, connectivity and potential cooperation in third countries, Bolat said.

He said the meeting underscored the strength of the economic partnership between the two countries, which he described as being built on deep-rooted ties, mutual trust and shared interests.

Turkish companies have invested nearly $3 billion in Germany, while German companies rank first among foreign investors in Türkiye, operating about 8,600 firms and holding $26.5 billion in direct investments, he noted.

Customs union, visas

Bolat said the protocol they signed records progress achieved by both sides and provides a roadmap for future cooperation.

The ministers also discussed the modernization of the Türkiye-EU Customs Union.

"As the EU shapes new trade, industrial and sustainability policies, including the 'Made in EU' framework, it is vital that these initiatives remain inclusive," Bolat said.

"These policies must strengthen the highly integrated supply chains built over decades," he added.

Visa facilitation was also on the agenda, particularly Germany's "cascade" visa system, which Bolat said has helped improve visa appointment and application procedures since July last year.

"Visa rejection rates have fallen from around 25% to 14%. At this point, the German side plans to accelerate the process regarding businesspeople, students, artists, NGO members and transporters," he said.

"We once again emphasized our justified demands for visa-free travel for Turkish citizens," he added.

Türkiye as reliable partner

Reiche said the two countries were operating in a challenging geopolitical environment, making stable and trust-based cooperation increasingly important.

She described Türkiye as a reliable partner for Germany and noted that it is the European Union's fifth-largest trading partner.

Germany's trade with Türkiye accounts for about one-quarter of the bloc's total trade with the country, she said.

Reiche said both countries share an interest in supporting economic growth, expanding joint investments and encouraging further German investment in Türkiye.

She added that investor confidence remains strong, with German companies maintaining their presence in Türkiye while expanding existing operations and launching new investments.

Energy

Later on Friday, Reiche was expected to attend the German-Turkish Energy Forum with Energy and Natural Resources Minister Alparslan Bayraktar.

Before departing for the Turkish capital, she said German companies should benefit in the coming years from the country's announced multibillion-euro investments.

They have the opportunity to tap into the Eurasian market thanks to highly qualified Turkish specialists, she added.

The economy minister described Türkiye as an energy hub between Europe, the Middle East and the Caucasus.

"Turkey is not only a reliable partner – it is clearly focused on growth in the energy sector," she said.