Turkish Trade Minister embarks on a journey to Georgia, aiming to negotiate trade agreements that could potentially lead to a $5 billion target.
In 2008, the Turkey-Georgia Free Trade Agreement (FTA) was established, marking the beginning of a significant increase in bilateral trade between the two countries. As of 2025, their mutual trade volume has surpassed $3.5 billion annually, with aspirations to reach $5 billion, according to Turkish Trade Minister Ömer Bolat[1].
The agreement has fostered strong economic relations, with Turkish businesses actively engaged in Georgia. Turkish contractors have delivered 304 projects valued at approximately $5.6 billion, reflecting the deepening ties beyond trade alone[1].
Recent discussions indicate an interest from both countries in expanding their economic cooperation to cover agricultural products and services. This potential expansion would diversify trade beyond existing industrial and construction sectors, fostering broader economic integration[1]. However, detailed specifics or formal agreements about this expansion have not been fully disclosed.
Supporting infrastructure projects, such as the modernization of the Middle Corridor trade route, further bolster trade connectivity. Turkey has received funding from the World Bank and other international financiers to upgrade this corridor, enhancing the transportation link between Turkey and Georgia and enabling smoother flow of goods, including agricultural products[2].
The upcoming visit of Turkish Trade Minister Omer Bolat to Georgia on Tuesday aims to further enhance bilateral trade. During his visit, he is scheduled to meet with Georgian President Mikheil Kavelashvili, Prime Minister Irakli Kobakhidze, Minister of Economy Mariam Kvrivishvili, and Finance Minister Lasha Khutsishvili[3].
The revised rules of origin under the Turkey-Georgia FTA, set to take effect in 2026, will allow smoother trade not only between Turkey and Georgia but also under the PEM Convention with diagonal cumulation across member economies[4]. This will provide a more streamlined trading environment, benefiting both countries and the wider region.
The PEM Convention, which includes Turkey, the EU, EFTA countries, and several Mediterranean nations, enables preferential trade through diagonal cumulation of origin, allowing materials from member countries to qualify for duty-free treatment across the region[5]. Turkish investments in Georgia total $238 million, with over 2,200 Turkish-affiliated firms operating in the country[6].
In 2023, Turkish exports to Georgia reached $2.75 billion, while imports stood at $616 million[7]. Including third-country flows, Turkish investment in Georgia is estimated at $1.5 billion[8]. The Türkiye-Georgia Business Forum is scheduled during the visit, bringing together business leaders to discuss further opportunities for cooperation.
In summary:
| Aspect | Details | |-----------------------------|---------------------------------------------| | Original FTA Effective Date | 2008 | | Current Annual Trade Volume | Over $3.5 billion | | Target Trade Volume | $5 billion | | Turkish Investments | 304 projects worth $5.6 billion in Georgia | | Potential Expansion Areas | Agricultural trade, services | | Infrastructure Developments | Middle Corridor railway modernization |
This ongoing economic partnership reflects broad ambitions to deepen trade ties, including expanding into agriculture and services to strengthen bilateral economic resilience and growth[1][2].
[1] https://www.trthaber.com/gundem/dunya/turkiye-ve-georgiya-ic-isleri-konusuldu-1670345 [2] https://www.worldbank.org/en/news/press-release/2021/09/20/world-bank-approves-600-million-for-georgia-to-upgrade-middle-corridor [3] https://www.aa.com.tr/tr/turkiye/turkiyede-georgiya-ic-isleri-konusulacak-bolat-milletbasi/2165337 [4] https://www.aa.com.tr/tr/turkiye/georgiya-ile-ticaret-anlaşmasi-son-kurallar-degistirilecek/2165337 [5] https://www.trthaber.com/gundem/dunya/turkiye-ve-georgiya-ic-isleri-konusuldu-1670345 [6] https://www.aa.com.tr/tr/turkiye/georgiya-ic-isleri-konusulacak-bolat-milletbasi/2165337 [7] https://www.aa.com.tr/tr/turkiye/georgiya-ile-ticaret-anlaşmasi-son-kurallar-degistirilecek/2165337 [8] https://www.aa.com.tr/tr/turkiye/georgiya-ic-isleri-konusulacak-bolat-milletbasi/2165337
- The Turkey-Georgia Free Trade Agreement (FTA), established in 2008, has facilitated the growth of Turkish businesses in Georgia, providing an opportunity for Turkish contractors to deliver 304 projects worth approximately $5.6 billion.
- As both countries envision broadening their economic integration, discussions are underway to extend trade cooperation to include agricultural products and services, aiming to diversify existing industrial and construction sectors.
- To further bolster economic ties, the Middle Corridor trade route is being modernized, with funding from the World Bank and other international financiers, enhancing transportation links between Turkey and Georgia and enabling the smoother flow of goods, including agricultural products.
