TÜRKİYE AND AUSTRALIA: STRENGTHENING COOPERATION AND EXPANDING TRADE

Increasing foreign trade volume, developing transportation links, and sector-based cooperation are opening the door to a new era in Türkiye-Australia relations

Australia, the land of vibrant coral reefs, koalas, and kangaroos, is one of the most powerful and captivating regions in the Asia-Pacific, renowned for its natural beauty, Aboriginal culture, and cosmopolitan blend of traditional and modern lifestyles. It is home to world-renowned cultural, natural, and tourist attractions such as the Sydney Opera House, the Great Barrier Reef, Uluru (Ayers Rock), Bondi and Whitehaven beaches, Kakadu National Parks, and surfing and diving routes.

Australia also has a strong culture of innovation in fields such as medicine, science, technology, and mining. Numerous innovations have originated from this country, including Google Maps, ultrasound devices, the Wi-Fi technology developed by the Australian Science Agency, black box technology for aircraft, the Sirovision 3D imaging system for geotechnical analysis, and portable, lightweight handheld detectors and electronic heart rate regulators.

Australia offers a high quality of life, a good work-life balance, a transparent and stable innovation-focused business approach, and advanced infrastructure, providing a safe and profitable business environment. It is fully integrated with Asian markets. Australia, the star of the Southern Hemisphere, and Türkiye are two friendly countries with a long history of partnership. The words spoken by Mustafa Kemal Atatürk to the mothers of Anzac soldiers who lost their lives in the Battle of Çanakkale are inscribed on a monument in Hyde Park in the center of Sydney.

Australians come to Çanakkale every year to hold commemorative ceremonies.

A NEW ERA IN TRANSPORTATION

Turkish Airlines’ first flights to Melbourne in March 2024, followed by Sydney, were a significant achievement for both countries. With the increase in flight frequency in the coming period, we expect remarkable progress in trade, tourism, and cargo.

This agreement, which will cover all major cities in Australia and include daily flights, represents an important step in facilitating the development of bilateral relations and creating new opportunities. AUSTRALIA’S TRADE IN 2024 Two-thirds of Australia’s trade in goods and services takes place within the Asia-Pacific region. As of 2024, the country’s total trade volume has reached $639.4 billion. During this period, exports amounted to $345.9 billion, while imports reached $284.5 billion. China is both Australia’s largest export market and its most important supplier. Additionally, the country maintains strong economic ties with other Asia-Pacific nations such as Japan, India, the United States, the United Kingdom, the European Union, South Korea, and New Zealand.

The country’s exports consist mainly of minerals, energy resources, and agricultural products, while imports are concentrated in sectors such as high-value-added industrial products, machinery, electronic devices, and pharmaceuticals.

TÜRKİYE-AUSTRALIA BILATERAL TRADE AND INVESTMENT RELATIONS

DEİK/Türkiye-Australia Business Council has been bringing together business people from both countries since 2014 with the aim of developing trade and partnerships. The bilateral trade volume has increased from 1.7 billion dollars to 2.2 billion dollars. In 2024, the total trade volume reached 2.228 billion dollars, with exports increasing by 15% to 1.086 billion dollars and imports decreasing by 2% to 1.142 billion dollars.

Despite strong historical ties, the trade volume between Türkiye and Australia is well below the European Union-Australia levels. Türkiye’s trade relations with the Asia-Pacific region are limited, and the “Distant Countries Strategy” of the Ministry of Trade and the “Re-Asia Initiative” of the Ministry of Foreign Affairs aim to achieve comprehensive development in this area.

Free Trade Agreements and regional pacts create significant advantages by reducing investment risks between the two countries. More than 160,000 citizens of Turkish origin in Australia act as a bridge for increasing investments.

A good understanding of Australian business culture and close contact with Türkiye’s Trade Attaché offices in Sydney and Melbourne are essential for successful business relations. It is recommended to evaluate and visit the market on a state-by-state basis.

The automotive industry, machinery, ready-to-wear clothing, textiles, household goods, and food products are prominent in Türkiye’s exports, while gold, coal, mineral ores, wool, cotton, and meat products are prominent in imports. Australian companies are interested in the energy, mining, and infrastructure sectors in Türkiye. Turkish entrepreneurs are investing in Australia in areas such as restaurants, construction, textiles, and tourism. Developments are also being observed in the automotive supply chain.

TÜRKİYE-AUSTRALIA SECTORAL COOPERATION AND TRADE POTENTIAL

Australia aims to become a world leader in renewable energy with its critical minerals strategy in the energy and mining sectors. There are opportunities for cooperation with Türkiye in the field of rare elements and technology through knowledge sharing. Türkiye’s agricultural technologies, such as agricultural machinery and greenhouse systems, are attracting interest in the Australian market. The number of Australian tourists is increasing, and cooperation can be developed in the fields of culture, gastronomy, history, and health tourism. In the field of education, mutual student exchanges and R&D cooperation stand out.

Turkish brands are present in the Australian market in the textile and fashion sector, and natural textile products and Aboriginal designs are attracting interest. In the defense industry, Turkish UAV and SİHA technologies are being closely followed by Australia. Certification, compliance with standards, and reliable local business partners are of great importance when entering the market. In this regard, promotional activities through e-commerce platforms need to be increased.

Companies from both countries can create synergy by effectively utilizing their mutual geographical networks. In addition, mega projects such as the Brisbane 2032 Olympics offer new business opportunities.

Cooperation can also be developed in areas such as energy, green buildings, smart cities, technology transfer, R&D, and education. Given the impact of the EU’s Green Deal policies on Australia, Türkiye can provide significant support in this area. Overall, there is a vast untapped commercial potential between Türkiye and Australia and significant opportunities for business people.