Ankara: US investment trends in Trkiye are shifting away from capital- and labor-intensive models and toward high-value and innovative sectors facilitating technology transfer, the chair of the American Chamber of Commerce (AmCham) in Trkiye told Anadolu.
According to Anadolu Agency,Emre Karter stated that Trkiye's advanced industrial base, skilled workforce, and access to European, Middle Eastern, and Central Asian markets continue to solidify its appeal to American investors, while tech takes on a leading role in bilateral relations.
Economic ties between Trkiye and the US accelerated in recent years amid a mutual push toward a joint bilateral trade volume target of $100 billion.
The trade volume between the two countries reached $38 billion last year and is projected to grow more than 10% to reach $42-43 billion by the end of this year.
The annual trade volume between Trkiye and the US is expected to reach $50 billion within the next two years if this current growth is maintained.
The rise in commercial activity is further supported by strong mutual investments, with direct US investments in Trkiye reaching around $16 billion in 2003-2025 through more than 2,300 American enterprises operating in the country, while direct investments by Turkish firms expanding into the American market reached around $14 billion over the same 22-year period.
'Further strengthening the investment environment is possible through better understanding the expectations of American firms investing in Trkiye's high-value-added sectors, such as healthcare, aviation, energy, technology, and chemicals,' Karter said.
Karter noted that maintaining the active status of the Trade and Investment Framework Agreement (TIFA) mechanism managed by the trade ministries of the two countries will be key to creating an environment conducive to sustainable growth.
'Trade, energy agreements, and mutual investments are complementary elements in reaching the $100 billion target, but increasing investments in high-value-added sectors and strengthening Turkish firms on a global scale will play a key role in achieving sustainable growth,' he said.
Karter stated that the US is Trkiye's second-largest export market and its fifth-largest import market, advising Turkish firms to achieve a more balanced and sustainable structure by focusing on scaling up their export capacities to meet the high volume and standards required to penetrate the American market in key sectors like aerospace, automotive supply, and life sciences.
'Trkiye's advanced industrial structure, flexible production infrastructure, supporting industries, strong producer ecosystem, and skilled workforce make up a solid foundation for Turkish firms to achieve this scale transformation and ensure a permanent place in global supply chains,' he noted.
He mentioned that Trkiye stands out as a key hub in global supply chains amid a period of reshaping supply chains and rapidly changing geopolitical dynamics, while AmCham views Trkiye as a multifaceted regional hub of management, production, and technology.
'From management to research and development (RandD) and from production to logistics, a significant portion of AmCham member companies position Trkiye as a regional hub for many critical operational functions, while one-third of our members conduct their operations in 80 countries from Trkiye,' he said.
'There's a significant potential for an increase in US investments in high-value-added fields like artificial intelligence (AI), cybersecurity, cloud computing, data centers, software, e-commerce, fintech, renewable energy, and health sciences in the coming period, so facilitating access to financing, strengthening macroeconomic stability, supporting a transparent and predictable regulatory environment, and enhancing consultation mechanisms between the public and private sectors will massively contribute to transforming this potential into new investments,' he added.
Karter noted that Trkiye's Investment and Finance Office has become a sort of 'one-stop shop' with regional center-focused incentives to bolster investor confidence, and that the agency has thus far paved the way for new investments.