ANKARA (Multibagger) - In a bid to enhance long-term bilateral trade targets, Turkish President Tayyip Erdogan has called for the lifting of U.S. sanctions that are impeding some defense purchases by his country. Erdogan emphasized the need to remove "unilateral" measures that are hindering the ability of NATO allies to reach their trade goals.
The strained relationship between Turkey and the United States has been marred by various policy disagreements, including issues in the eastern Mediterranean, Syria, and Gaza. Additionally, Turkey's purchase of Russian S-400 air defense systems led to U.S. sanctions and the country's exclusion from the F-35 fighter jet program in 2019.
Following these developments, Ankara sought to acquire 40 Block-70 F-16 fighter jets and 79 modernization kits from the U.S., a deal that was approved after Turkey supported Sweden's NATO bid. This move contributed to a thaw in relations between the two nations.
Erdogan and Washington aim to achieve $100 billion in bilateral trade, a significant increase from the $30 billion recorded in 2023. During his visit to New York for the U.N. General Assembly, Erdogan expressed confidence in meeting this target but highlighted the shortcomings in defense industry cooperation due to ongoing restrictions.
The Turkish President called for the abandonment of unilateral actions such as additional tariffs and probes in the iron, steel, and aluminum sectors, as well as the CAATSA sanctions. He emphasized the importance of lifting export restrictions in the defense industry to foster better collaboration.
Erdogan also underscored Turkey's role in supply chains, citing the cooperation on the production and procurement of 155mm ammunition as an example. Despite supporting Ukraine, Turkey opposes sanctions against Russia and asserts that they will not be bypassed on Turkish soil.
Aside from the F-16s, Turkey has shown interest in Eurofighter Typhoon jets from Germany, Britain, and Spain. However, Erdogan highlighted the lack of progress in negotiations with Germany over the acquisition of these jets.
During his meeting with German Chancellor Olaf Scholz in New York, Erdogan expressed Ankara's willingness to enhance cooperation across various sectors for mutual benefit.
Analysis: Turkish President Erdogan's call for the removal of U.S. sanctions and unilateral measures to boost trade relations signifies a pivotal moment in the diplomatic landscape between the two nations. The potential increase in bilateral trade from $30 billion to $100 billion could have far-reaching implications for both economies, opening up new opportunities for collaboration and growth. However, the lingering issues in defense industry cooperation and the challenges posed by sanctions highlight the complexities of international relations and the delicate balance of power in the global arena. As these negotiations unfold, global markets will closely monitor the developments and assess the potential impact on geopolitical dynamics and economic stability.