WHAT IS THE TRADE BETWEEN TURKEY AND AUSTRALIA?

ABSTRACT

 

In the well-integrated world of international trade, countries around the globe engage in economic partnerships that facilitate the exchange of goods and services. One such relationship that may not immediately come to mind is that between Turkey and Australia. Despite their geographical distance, these two nations have developed a significant trade relationship that spans various sectors. In this blog, we will investigate the trade between Turkey and Australia, exploring the products, trends, and factors that drive this bilateral economic partnership.

 

The trade connection between Turkey and Australia goes back quite a few years, with conciliatory ties laid out in 1967. Over the long haul, the two countries have supported their financial collaboration, prompting a broadened trade portfolio that incorporates different ventures.

 

TURKEY AND AUSTRALIA BILATERAL TRADE TRENDS (2018-2022)
YEAR	TURKEY > AUSTRALIA	AUSTRALIA > TURKEY
2018	USD 687.10 million	USD 1.08 billion
2019	USD 661.15 million	USD 1.03 billion
2020	USD 726.89 million	USD 406.7 million
2021	USD 971.03 million	USD 1.12 billion
2022	USD 965.68 million	USD 1.63 billion

 

TRADE DYNAMICS AND KEY PRODUCTS

The trade between Turkey and Australia is characterized by the exchange of a wide range of goods. Both nations export and import products that cater to their respective economic needs and consumer demands.

 

Bilateral Trade by-products the main products exported from Turkey to Australia were raw iron bars ($90.5M), delivery trucks ($59.2M), and hot-rolled iron bars ($50.4M). During the last 26 years, the exports of Turkey to Australia have increased at an annualized rate of 11.9%, from $54.9M in 1995 to $1.01B in 2021. Based on Turkey Trade Data records of the past few years, the major traded items are:

 

• Agricultural products
• Minerals and resources
• Textiles and apparels
• Machinery and equipment

 

1. AGRICULTURAL PRODUCTS

Australia is prestigious for its agricultural items, including grains, meat, dairy, and wine. These excellent products track down their direction into the Turkish market, taking care of the requests of its shoppers. On the other hand, Turkey trades items like dried natural products, nuts, and vegetables to Australia, displaying the variety of its own farming area.

 

2. MINERALS AND RESOURCES

Australia is plentiful in mineral assets, like coal, iron metal, and gold. These assets are profoundly pursued by Turkey’s developing enterprises, adding to its energy, and assembling areas. Turkey, thus, sends out minerals like boron and marble to Australia, featuring its own mineral riches.

 

3. TEXTILES AND APPAREL

Turkey has a strong textile and apparel industry, producing textiles, clothing, and footwear. These products are well-received in the Australian market due to their quality and competitive pricing. Australia, on the other hand, exports wool and hides to Turkey, supporting its textile manufacturing sector.

 

4. MACHINERY AND EQUIPMENT

Machinery and equipment play a crucial role in the trade relationship between these two countries. Australia’s advanced manufacturing capabilities make it an attractive source of industrial machinery for Turkey. In return, Turkey exports products like electrical machinery and appliances to Australia.

 

TRADE TRENDS AND ECONOMIC IMPACT

The trade volume between Turkey and Australia has shown reliable development throughout the long term, although it might encounter changes because of worldwide monetary circumstances and changes popular. The two countries have effectively tried to grow their bilateral relations by taking part in exchange fairs, business assignments, and reciprocal arrangements.

 

Several factors contribute to the continued growth of trade between Turkey and Australia:

1. GEOGRAPHICAL COMPLEMENTARITY: While geographically distant, Turkey and Australia possess resources and industries that complement each other. This encourages the exchange of products that are not readily available domestically.

 

2. DIVERSIFICATION OF MARKETS: Both countries are actively seeking to diversify their trade partners to reduce reliance on a single market. This drive for diversification has prompted them to explore new opportunities in less traditional markets.

 

 

 

3. BILATERAL AGREEMENTS: The two nations have signed bilateral agreements and Memoranda of Understanding to strengthen their economic ties. These agreements facilitate trade and investment by addressing tariff barriers and other trade-related issues.

 

4. GLOBAL VALUE CHAINS: As global value chains continue to expand, both Turkey and Australia have found ways to integrate into these networks, benefiting from each other’s strengths and expertise.

 

 

CHALLENGES AND OPPORTUNITIES

Despite the positive trajectory of their trade relationship, Turkey and Australia face challenges that impact their trade dynamics. These challenges include differences in regulations, logistical complexities due to the distance, and competitive pressures from other trade partners. Additionally, global economic uncertainties and geopolitical developments can also influence their trade interactions.

 

However, these challenges also present opportunities for further collaboration:

 

1. ENHANCED COOPERATION: By addressing regulatory disparities and streamlining trade procedures, both countries can facilitate smoother trade flows and encourage more companies to explore cross-border partnerships.

 

2. INVESTMENT: Mutual investments can strengthen the trade relationship, allowing companies from both nations to establish a stronger presence in each other’s markets.

 

 

3. RESEARCH AND INNOVATION: Collaborative research and innovation projects can lead to the development of new products and technologies, boosting trade in high-value sectors.

 

CONCLUSION

The trade relationship between Turkey and Australia is a testament to the global nature of modern economies. Despite their geographical separation, these two nations have managed to create a mutually beneficial trade partnership that spans various industries. By capitalizing on their strengths, addressing challenges, and exploring new opportunities, Turkey and Australia can continue to nurture their trade ties and contribute to each other’s economic growth and prosperity.

 

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