‘Free trade deal with US could unlock $100B goal’: Turkish Exporters Assembly Chairman
Mustafa Gultepe, Chairman of the Turkish Exporters Assembly (TİM), delivers a speech at a TİM meeting in Trabzon, Türkiye, where January foreign trade figures were announced on Feb. 3, 2025. (AA Photo)
A potential free trade agreement with the United States could help achieve the long-standing goal of reaching $100 billion in bilateral trade between the two countries, Chairman of the Turkish Exporters Assembly (TIM) Mustafa Gultepe stated Tuesday.
“This could mark the beginning of a new era in Türkiye’s trade,” Gultepe said, adding that they are closely monitoring developments related to Syria and believe Türkiye will succeed in this regard.
Gultepe discussed the future of Turkish trade with the business-focused outlet ekoturk.com at the TIM event in Trabzon, where foreign trade data was presented on Monday.
He noted that exporters are facing severe financial difficulties, stating, “These disruptions must be addressed urgently. Profit margins in labor-intensive sectors are shrinking. Our primary expectation for 2025 is that inflation and exchange rates should move in parallel.” Gultepe also emphasized that Türkiye is becoming an increasingly expensive country, particularly in the service and production sectors, warning that rising costs are unsustainable.
‘A new approach is needed to combat inflation’
The TIM chairman also commented on the Central Bank of the Republic of Türkiye’s (CBRT) requirement for exporters to convert 30% of their foreign exchange earnings into Turkish lira.
Gultepe argued that “If the country is undergoing economic normalization and the central bank’s reserves are increasing, we should transition from a regulated economy to a free-market economy. The central bank should lift this requirement.”
He stressed that inflation cannot be tackled solely by suppressing the exchange rate or raising interest rates. “As producers and exporters, we provide substantial support, but inflation is not just about exchange rates; consumption-driven inflation is also a serious issue,” he said.
“A new approach should be adopted. Inflation control should not rely only on monetary policies but also on structural reforms to provide stronger economic support.”
