Minister Kacır: Türkiye-Germany economic relations should deepen with industry and technology cooperation

Minister of Industry and Technology Mehmet Fatih Kacır said at the "German Unity Day" reception held at the German Embassy that Türkiye and Germany have old and deep diplomatic relations.

Stating that relations have exceeded two and a half centuries and evolved with radical transformations in the international system, Kacır emphasized that strong relations have manifested themselves with the frequent high-level visits and the intensified dialogue between parliaments in recent years.

Kacır noted that relations with North Rhine-Westphalia are of special importance among the German states, and pointed out that this state hosts the largest community of Turkish origin in Germany, with a population of over 1 million.

Stating that a significant part of the trade with Germany is carried out through North Rhine-Westphalia, Kacır stated that companies headquartered in this state have made significant investments in Türkiye.

"Türkiye IS CONSISTENTLY INCREASING ITS PRODUCTION CAPACITY"

Kacır pointed out that the bilateral trade volume between the countries reached 52.3 billion dollars last year and shared the information that today more than 8,600 companies with German capital operate in Türkiye. Noting that the existence of these companies is an indication of the confidence of German investors in Türkiye's dynamic market, qualified workforce and long-term industrial and technology vision, Kacır made the following evaluations:

"However, despite such a long history and the current size of our partnership, we believe that there is still a significant potential, especially in the development of new technologies and investing in the industries of the future. This investment partnership is of course not one-way. Turkish entrepreneurs and companies are also deepening the economic ties between our countries by making significant investments in Germany. We believe that the next period of Turkey-Germany economic relations should be shaped by a deeper industrial and technology cooperation. Such a partnership will benefit both countries by creating new opportunities for investment, innovation and sustainable growth."

Kacır emphasized that Türkiye has steadily increased its production capacity and strengthened its industrial infrastructure, and pointed out that Turkish companies today have strategic positions in the European industry in a wide range of sectors, from solar panels and commercial vehicles to white goods and iron and steel.

Stating that the new incentive system implemented in Türkiye provides suitable financing opportunities for high technology-oriented investments, Kacır also reminded that they have implemented HIT-30, the largest incentive program in the country's history for high technology projects.

Kacır continued his words as follows:

"We believe that this program offers an important opportunity for global investors, including our partners in Germany, to take part in Türkiye's new generation high-tech investments. We are also aware that the future of the industry will be shaped not only by the level of technological development, but also by the ability to make more sustainable, efficient and digital production."

"AN APPROACH THAT DISRUPTS SUPPLY CHAINS AFFECTS MANUFACTURERS"

Kacır noted that while building a Turkey in a leading position in science, industry and technology, they also aim to strengthen its position in global markets with new partnerships based on mutual benefit, complementarity and a truly win-win approach, and stated that Germany is one of the most natural partners in this goal.

Kacır pointed out that Türkiye, as a candidate country for the European Union (EU), sees its future as closely linked to the peace and prosperity of Europe.

Stating that Europe has not been able to achieve the desired momentum in some critical technologies despite its scientific infrastructure and industrial capabilities, Kacır said that Türkiye has significant contributions to this effort thanks to its young and dynamic population, competitive manufacturing infrastructure, growing technology ecosystem and strong engineering capabilities and deep integration with European production networks.

Kacır emphasized that Türkiye's position in the European industry is secured by the Customs Union with the EU, and this framework has enabled companies to establish integrated production networks, make cross-border investments and compete together in global markets for 30 years.

Explaining that the trade volume between Türkiye and the EU reaching 233 billion dollars reflects the depth of this economic integration, Kacır said:

"We believe that the Made in Europe initiative should fully reflect the Customs Union and Türkiye's role in European value chains. Turkish manufacturers are important partners of German industry. Investments of German companies in Türkiye also form an integral part of the same production networks. Therefore, any obstacle affecting production in Türkiye will also have consequences for German companies and our common competitiveness. An approach that disrupts established supply chains will affect manufacturers and suppliers on both sides."