100TH ANNIVERSARY IN TURKISH-JAPANESE RELATIONS: A TURNING POINT IN TRADE

“In 2024, we commemorated the 100th anniversary of Turkish-Japanese relations, marking a significant historical and strategic turning point for both nations” Dr. Mahmut Münir Güzel, President of the Turkish Chamber of Commerce and Industry in Japan, offered an evaluation of Japan and Asian culture for the readers of Business Diplomacy

WE HAVE MOVED BEYOND A CENTURY OF RELATIONS BETWEEN TÜRKİYE AND JAPAN. WHAT WOULD YOU SAY ABOUT THE HISTORY OF THE TWO COUNTRIES, ESPECIALLY THE BEGINNING OF TRADE?

In 2024, we commemorated the 100th anniversary of Turkish-Japanese relations, marking a significant historical and strategic turning point for both nations. The political, cultural, and commercial ties, evolved over the years, have been significantly reinforced in recent times, culminating in enhanced economic cooperation. The relationship between Türkiye and Japan was characterized by a notably intense year, particularly regarding trade. B2B (business-to-business) meetings, sectoral collaborations, and commercial agreements organized between the two countries have played a crucial role in reinforcing this relationship. The trade volume surpassed USD 6 billion, highlighting the depth of economic cooperation between the two nations. However, Türkiye’s imports hold greater dominance in this trade balance. Türkiye’s exports to Japan have yet to reach the desired level, despite the substantial imports from Japan. A range of business meetings and events were held in Japan to address this gap and boost exports. In particular, B2B activities were a key initiative aimed at enhancing export potential by showcasing opportunities in the Japanese market to Turkish companies.

TÜRKİYE-JAPAN TRADE RELATIONS KEEP GROWING WITH EACH PASSING PERIOD. IN WHICH AREAS IS THERE TRADE ACTIVITY BETWEEN THE TWO COUNTRIES AT THE MOMENT?

toward Turkish exports. After encountering export issues in the past with certain agricultural products, exports of items such as grapefruit, cherries, and lemons to Japan have now resumed. Turkish agricultural products are steadily establishing a presence in the Japanese market, with fresh food exports experiencing particularly significant growth. This progress has been made possible by Turkish products elevating their quality standards and aligning their offerings with Japan’s specific demands. Also, trout exports from the Black Sea Region have emerged as a notable success story in the Japanese market. Ten years ago, this product was not exported to Japan at all. Today, however, it has surpassed a volume of USD 10 million, and this figure is anticipated to continue growing steadily. Japanese consumers place great emphasis on quality, and Turkish fishermen have secured a strong position in Japan by meeting these expectations. Other Turkish products with high export potential to Japan include figs, apricots, grapes, and tuna. Besides the food sector, textiles also occupy a significant place in the Japanese market. With a population of 125 million, Japan presents significant opportunities in this market, and Turkish companies are taking patient, strategic steps to capitalize on them. Conducting business in Japan is a significant challenge for companies aspiring to achieve long-term success, and those who successfully navigate this challenge can establish a strong position on a global scale.

WHAT AREAS WOULD YOU RECOMMEND FOR THE TURKISH BUSINESS COMMUNITY TO EXPLORE IF THEY SEEK TO INVEST IN JAPAN? IN WHICH SECTORS DO YOU THINK THERE ARE OPPORTUNITIES IN JAPAN?

Turkish companies seeking to invest in Japan are presented with opportunities across a range of sectors. First and foremost, companies facing challenges in selling pallet-based products in the Japanese market are encouraged to seek assistance from importer companies that are members of local chambers of commerce. This approach minimizes import risks, facilitating a faster and safer entry into the Japanese market. There is a robust presence of Turkish companies operating in Japan, particularly in the construction sector. The strong demand for demolition and restoration projects in this sector has been driven by the quality-focused efforts of Turkish companies. With over 20 years of experience, Turkish construction firms have secured a lasting presence in Japan. Opportunities also exist in the food and textile sectors. Japanese consumers place a high value on quality food products, and Turkish food items have the potential to meet these expectations. Furniture, home appliances, and even floriculture are among the sectors that have potential for growth in Japan. Especially in the furniture sector, offering designs that align with Japanese culture can lead to capturing a substantial market share in this field. Given that Japan is a market that demands excellence, it is crucial for Turkish companies to provide innovative, high-quality, and sustainable solutions to succeed in this environment.

FOR MANY YEARS, WE HAVE OBSERVED JAPANESE TOURISTS’ ADMIRATION FOR TÜRKIYE, BUT RECENTLY, TURKISH TOURISTS HAVE ALSO EXPRESSED SIGNIFICANT INTEREST IN JAPAN. WHAT WOULD YOU SAY, PARTICULARLY REGARDING TOURISM?

Japanese tourists have been visiting Türkiye for many years, and with each visit, they are captivated by its rich cultural heritage. In 2013, the number of Japanese tourists travelling to Türkiye reached a peak of 198,000. However, for various reasons, this number began to decline afterwards. As Japanese tourists rediscover Türkiye, these numbers are anticipated to rise once again. Japan’s historical and cultural richness, combined with Türkiye’s renowned hospitality, are key factors that sustain tourism between the two countries. On the other hand, interest among Turkish tourists in Japan has also grown recently. One of the primary reasons for this shift is the depreciation of the Japanese Yen during the pandemic, which has made tourism in Japan more appealing. Additionally, the absence of a visa requirement for Turkish tourists makes Japan particularly attractive for group tours. Japan is among the countries that most effectively showcase Asian culture to its visitors. Japan’s cultural structure, natural beauty and technological development are among the factors that attract Turkish tourists. This cultural richness is poised to further enhance tourism relations between the two countries.