Türkiye's Development Road Project with Iraq targets $20B in exports by 2030

Türkiye's Trade Minister Omer Bolat has revealed ambitious export goals ahead of President Recep Tayyip Erdogan's imminent visit to Iraq. Bolat announced that Türkiye aims to elevate its exports to Iraq from the current $15 billion target to $20 billion by 2030. 

Erdogan's visit to Iraq comes after 12 years

President Erdogan is set to make his first foreign visit since the March 31 Local Administration General Elections to Baghdad on April 22. The visit, anticipated after a 12-year hiatus, is expected to shape the economic and trade relations between the two countries, as well as political, diplomatic, and security matters.

Highlighting Iraq's consistent importance for Türkiye in terms of trade and economic relations, Minister Bolat emphasized that over the past decade, exports to Iraq have consistently accounted for over 5% of Türkiye's total exports.

He further noted that Türkiye exports goods from various sectors to Iraq, which ranked as the third-largest destination for Turkish exports last year.

Exports saw 24.5% increase in first 3 months of 2024

Bolat provided figures indicating that the bilateral trade volume between the two countries stood at $24.2 billion in 2022 and decreased slightly to $19.9 billion last year.

He added, "Despite a 7.2% decrease in exports to Iraq in 2023 compared to the previous year, amounting to $12.8 billion, our imports from Iraq decreased by 31.1% to approximately $7.2 billion. While our foreign trade balance remained in favor of our country, our trade surplus amounted to $5.6 billion last year."

Regarding the first three months of 2024, Bolat highlighted a 24.5% increase in exports compared to the same period last year, reaching $3.4 billion, while imports decreased by 46.2% to $835 million.

Minister Bolat projected that, with President Erdogan's visit to Iraq, Türkiye aims to reach $15 billion in exports in the near term and $20 billion in exports by 2030 upon the completion of the Development Road Project.

3 agreements to be signed

Bolat mentioned plans to sign three agreements during the visit, including the establishment of a Joint Economic and Trade Committee and protocols on Product Safety and Consultation and Cooperation Mechanisms in Technical Barriers to Trade.

He said, "The signing of the Bilateral Investment Promotion and Protection Agreement and the completion of the internal approval process for the Double Taxation Prevention Agreement signed in 2020, which was completed in our country, will increase investments between the two countries."

Regarding the Development Road Project, Bolat explained that it aims to facilitate trade, customs, visas, and transit procedures in transportation between the Gulf Region and Europe. He added that construction works are planned between 2025 and 2029, with railway and highway operations expected to commence in 2030.

Highlighting the potential positive impact of the project on exports and logistic capabilities to Iraq, Bolat emphasized its role in triggering exports to the Middle East and Gulf regions, as well as Southeast Asian countries.

Habur Gate insufficient to meet trade volume

Moreover, Bolat addressed ongoing efforts to open the Ovakoy Border Gate, stating, "It is clear that the Habur-Ibrahim Khalil border gates are insufficient to meet the trade volume between the two countries. In this context, negotiations continue with Iraqi authorities to open the Ovakoy-Fisabur border gates."

Source: Newsroom