Türkiye's foreign trade deficit widened by 11.2% from a year ago in January, Trade Minister Ömer Bolat said on Monday, as exports declined while imports remained flat.
Exports decreased by 3.9% year-over-year to $20.3 billion, while imports were almost unchanged at $28.7 billion, Bolat told an event in Ankara. This resulted in a 1.7% contraction in total trade volume to $49 billion.
The foreign trade deficit reached $8.4 billion last month, the data showed.
The 12-month rolling exports rose 3.7% to $272.53 billion, while imports increased 5.5% to $365.38 billion, lifting total trade volume 4.7% to $637.91 billion.
The annualized trade deficit reached $92.9 billion, up sharply from $83.6 billion recorded in January 2025.
The export-to-import coverage ratio declined by 2.9 percentage points to 70.9% in January. Excluding energy, the ratio fell 6.9 points to 82.3%. Excluding both energy and gold, it slipped 6.3 points to 87.3%.
Bolat said energy imports fell 20% year-over-year in January to $5.1 billion. However, he noted a sharp rise in the value of unprocessed gold imports, which climbed 12.6% to $1.7 billion, driven by a 79.5% increase in unit prices, despite a 37.3% drop in import volume.
"Compared with December 2025, gold imports fell by 17% month-over-month, despite higher prices," Bolat added.
Imports excluding energy and gold increased 5.3% year-over-year to $21.9 billion, marking a $1.1 billion rise, the data showed.
Türkiye's total goods exports reached a record $275.4 billion last year. The government targets $282 billion this year.
Bolat said Türkiye's share of global exports reached 1.05% on a rolling annual basis as of the third quarter of 2025, while total goods exports last year recorded a net increase of $11.7 billion.
Exports to the European Union, Türkiye's largest trading partner, reached $117 billion, generating a trade surplus of more than $1 billion with the bloc, the minister noted.
Türkiye also achieved exports exceeding $1 billion to 50 countries, while 41 markets recorded all-time export highs, Bolat said.
The share of medium-high and high-technology products in total exports rose to 43.5%, while defense industry exports hit a record $10 billion in 2025.
Bolat warned that the European Union's expanding free trade agreement (FTA) network is heightening structural risks for Türkiye under the current customs union framework.
"The asymmetry created by the EU's FTAs with more than 70 countries, our exclusion from decision-making processes, and chronic issues such as transport quotas have long made the modernization of the customs union a necessity," Bolat said.
He added that newer dynamics, such as the Green Deal and digital economy, alongside pending EU agreements with major manufacturing hubs, have pushed trade diversion risks to critical levels.
Türkiye has long voiced frustration over the lack of progress on the modernization of the customs union agreement. The deal was struck in 1995, before the European Commission formally proposed revamping the pact in 2016. But the Council of the EU never gave it a mandate to start negotiations amid a host of disagreements.
Turkish officials and businesses have long argued that the current agreement is outdated and no longer reflects global trade realities or the depth of today's economic relationship.
On the EU-India free trade deal, announced last week, Bolat said Türkiye is assessing the process carefully.
He warned that the South Asian country's cost advantages could intensify competition in labor-intensive sectors such as textiles and apparel. stressing that Türkiye's integration into EU supply chains remains a key advantage.
Before signing the deal with New Delhi, the EU agreed a contested pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico and Switzerland.
The vetting process in the EU region could be subject to some setbacks, as in the case with Mercosur. EU lawmakers have voted to challenge the EU-Mercosur agreement in the bloc's top court.
Bolat stressed that the free movement, alignment with technical legislation, and integration into EU supply chains that Türkiye enjoys thanks to the customs union are "extremely valuable and serve as a significant stabilizing factor."
"Within the framework of its rights and obligations under the customs union, Türkiye will continue to expand its mutually beneficial free trade agreements and preferential trade agreements in a manner that preserves the competitiveness of its exporters," Bolat said.
