Türkiye-Taiwan Agricultural Trade Analysis and Future Prospect

Cheng-yi Lai, Pei-ju Liao and Fahri Yavuz

Eurasian Journal of Agricultural Economics, 2024, vol. 3, issue 2

Abstract: The distinct differences and complementarity between Taiwan and Türkiye offer collaboration opportunities, paving the way for trade and investments to reach mutual benefits in various aspects. This study specifically focuses on agricultural trade, given its direct impact on the daily lives of citizens in both nations and its symbolic role in trade development. This research examines public data from governments and international organizations, along with esteemed publications and credible news reports, to explore the potential for bilateral cooperation, identify existing obstacles, and bolster trade volumes between Taiwan and Türkiye. The findings underscore the significance of domestic political stability, the global business cycle, and diplomatic relations as the key influencers of overall trade volume. Furthermore, diplomatic ties and policies are crucial in shaping agricultural trade. While the total agricultural trade volume between both nations experienced a noteworthy threefold surge from 2012 to 2022, hitting its peak in 2020, the growth trend of agricultural trade doesn't consistently align with overall trade patterns. Numerous challenges hinder trade sustainability and prospects for future cooperation. These obstacles include high transportation expenses due to long-distance and cold chain logistics, limited market exposure, the absence of preferential tariff treatments, and Taiwan's diplomatic dilemma. No formal diplomatic relations essentially increase the difficulty in negotiating bilateral agreements. The research provides several viable recommendations. For instance, Taiwanese firms might seek direct investment and technology sharing with Türkiye with lower production costs. Correspondently, Türkiye can benefit from technological transfer, stimulating agricultural sector innovation. Additionally, both nations should prioritize trading lightweight, high-value products to overcome the current uneconomic shipment cost while gradually diversifying and increasing trade volume to achieve a scale economy. A significant trade volume could serve as leverage for future preferential tariff negotiations and tighten the relationship between these two countries to fulfill mutual interests in economics and geopolitics.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eurasj:382397

DOI: 10.22004/ag.econ.382397

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