The GCC, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, seeks to enhance its economic influence through strategic partnerships. For Turkey, the deal represents a pivotal move to strengthen economic relations with the Gulf nations, following a series of high-value business deals signed since President Recep Tayyip Erdogan’s reelection in 2023.
Both parties have expressed optimism about the potential impact of the agreement. Bolat emphasized the historic nature of the talks and the mutual benefits expected from the collaboration. The discussions are anticipated to cover various sectors, including agriculture, industrial goods, and investment protections.
However, the road to finalizing the agreement may face hurdles. As Turkey is part of the customs union with the European Union (EU), it cannot implement a separate free trade agreement with third countries without the EU concluding a similar pact with the GCC. Negotiations between the EU and GCC have been stalled for years due to political reasons, adding a layer of complexity to the Turkey-GCC talks.
Economic analysts highlight that the agreement could significantly boost Turkish exports, especially in sectors facing high tariff barriers in the GCC. Conversely, GCC countries are likely to prioritize establishing robust frameworks for foreign direct investment (FDI) protections, given their substantial investments in Turkey.
This development is part of a broader trend of increasing economic diplomacy in the region. The GCC has already signed free trade agreements with South Korea and Pakistan and is in the process of negotiating a deal with the United Kingdom. Turkey’s diplomatic efforts in the Gulf are seen as a strategic move to diversify its economic partnerships and mitigate past antagonisms linked to political differences.
As the negotiations progress, stakeholders from various industries will closely monitor the potential benefits and challenges that may arise. The successful conclusion of the talks could pave the way for enhanced economic integration and cooperation between Turkey and the GCC, fostering growth and stability in the region.
This free trade agreement initiative underscores the dynamic and evolving nature of international economic relations, with countries continually seeking to optimize their trade networks in an increasingly interconnected global economy.