ECONOMIC RELATIONS BETWEEN ESTONIA AND TURKIYE ARE STEADILY PROGRESSING

Our relations with Estonia are founded upon the “Treaty of Friendship and Cooperation”, signed on December 1, 1924. Diplomatic relations between the two countries, celebrating their centenary this year, were further solidified with the signing of the Joint Declaration on October 2, 1991. Presently, political relations between Türkiye and Estonia are characterized by a positive trajectory. Türkiye’s endorsement of Estonia’s NATO membership and Estonia’s reciprocated support for Türkiye’s EU membership process have significantly bolstered cooperation between the two nations.

Conversely, Türkiye maintains a position as a net importer in its foreign trade dealings with Estonia. Türkiye’s exports to Estonia surged from USD 126 million in 2021 to USD 191 million in the twelve-month period, whereas Türkiye’s imports from Estonia declined from USD 230 million to USD 225 million during the same period. The foreign trade deficit narrowed to USD 34 million, marking a decrease, while the foreign trade volume surpassed USD 400 million for the first time since 2017.

The shipbuilding, machinery, and iron and steel sectors prominently feature in Türkiye’s exports to Estonia. Meanwhile, Türkiye sources a substantial portion of its imports from Estonia from the iron and steel sector. Estonian entrepreneurs are drawn to Türkiye’s size, strategic geographical location, and the abundant life opportunities it presents. On the flip side, Turkish businesspeople have recognized Estonia’s innovative economic landscape, its prowess in information technology, and the conducive environment it provides for those seeking to launch new ventures. In 2023, it was observed that all types of defence industry exports could be facilitated due to Estonia’s proximity as a neighbouring country amidst the Russia-Ukraine conflict that erupted in the same year.

Areas of collaboration centered around research and development as well as innovation involving Estonian scientists and universities are recognized as open markets ripe for development. Estonia boasts a wellestablished IT and start-up ecosystem, with opportunities in these domains emerging as attractive markets for both angel investors seeking to invest and start-ups seeking investment