Economy
Dutch companies invested about $34B in Türkiye since 2002: Envoy
Dutch firms have invested around $34 billion in Türkiye since 2002, accounting for about 17% of total foreign direct investments (FDIs) into the country, positioning the Netherlands at the place of the largest investor in the country, according to the Dutch ambassador to Ankara, Joep Wijnands, on Wednesday.
Wijnands stated that over 3,000 Dutch firms are registered in Türkiye due to the country’s strategic geographical location, making it a “two-way gateway from Europe to the Middle East and Central Asia,” while its skilled workforce and growing economy offer opportunities.
The Netherlands ranked first in FDIs into Türkiye last year with $2.8 billion, according to the Turkish Investment and Finance Office.
The foreign trade volume between the Netherlands and Türkiye reached $14 billion, according to the Turkish Statistical Institute (TurkStat).
Turkish exports to the Netherlands totaled $7.2 billion in 2025, making it the ninth-largest destination for Turkish exports, while the figure rose 7.4% year-over-year to $580 million in January 2026, according to the Türkiye Exporters Assembly (TIM).
Turkish offering
Wijnands suggested that while Dutch firms invest in Türkiye for the myriad opportunities the country offers, Turkish investors also view the Netherlands as a strategic gateway to Europe for international businesses, with the Turkish community of over half a million in the Netherlands playing key roles in these two-way investments.
He attributed the rise in FDIs into Türkiye, which stood at 12.2%, well above the global trend of 2% according to a 2025 report by the U.N. Conference on Trade and Development (UNCTAD), to the country’s “well-functioning market economy, highly aligned with the EU’s economic standards.”
He noted that the tight monetary policy in place since mid-2023 has been effective in lowering inflation expectations and stabilizing the Turkish lira, though inflation still remains above desired levels, while Türkiye’s removal from the Financial Action Task Force (FATF) gray list in 2024 boosted investor confidence, along with its resilience amid domestic and global challenges.
Wijnands also stated that the EU-Türkiye Customs Union played a positive and transformative role for the country in trade and economic development, while closer ties enhanced the Turkish economy’s rapid modernization, strengthening its competitiveness.
Leading sectors
He said Türkiye has established a position in the global economy as a market closely integrated with the EU, attracting many investors.
Dutch investors, for instance, are most interested in Turkish agriculture with concrete investments, especially in berries and seed improvement, but recent years have seen investor focus increasingly turn to health care and renewable energy, while the country’s textile sector is also attracting attention with cooperation opportunities and sustainable production methods.
Wijnands stated that most activity in these sectors is concentrated in manufacturing and services, but there remains untapped potential for further investments from the Netherlands, adding that Dutch and Turkish investors could synergize in green and digital transformation areas.
He noted that although the economic program in place since mid-2023 is beginning to bear fruit, Türkiye’s cost-based competitiveness poses challenges for potential and existing investors, and in this climate, “potential Dutch investors would like to see more structural reforms.”
Moreover, Wijnands mentioned that the Dutch government provides various support programs for Dutch firms to invest in Türkiye and for Turkish investors to invest in the Netherlands.
The Netherlands Innovation Network (NIN), actively represented since 2013, works to facilitate partnerships between universities, knowledge institutions, and public institutions in the two countries.
The Dutch Business Association (DBA) Türkiye also works to further strengthen economic cooperation between the two countries by cooperating with the Dutch Consulate General in Istanbul and the Embassy in Ankara to promote, develop, and support trade and investments.
The Netherlands Foreign Investment Agency (NFIA) aims to strengthen the innovation and tech ecosystems of the two countries and contribute to innovation capacity and sustainability.
Wijnands stated that the key Turkish export items with increasing volumes to the Netherlands in recent years have been textiles, chemicals and the automotive sector, while Dutch exports to Türkiye have mainly been iron and steel, especially iron waste and scrap, as well as machinery and mechanical appliances.
He noted that open dialogue and concrete cooperation are key to sustaining success in trade relations, such as the Joint Economic and Trade Commission (JETCO) meetings held annually between the two countries.
‘Made in Europe’ initiative
The European Commission unveiled the Industrial Accelerator Act (IAA) on March 4 to boost domestic manufacturing to 20% of the bloc’s gross domestic product (GDP) by 2035 while reducing dependence on China. The regulation also stipulates that a certain portion of production must be carried out in the EU for strategic purchases made with public funds.
The draft legislation recognizes the existing customs union between Türkiye and the EU, following months of negotiations, and Türkiye’s inclusion means that Turkish-made goods will be classified as having EU origin with the “Made in Europe” tag when competing for European public contracts and state subsidies.
Wijnands stated that the Netherlands is a “strong advocate of fair and open trade,” welcoming the recognition of the customs union framework between Türkiye and the EU in the Industrial Accelerator Act draft.
The ambassador added that the current geopolitical climate has created the need to reassess strategic priorities such as economic resilience in the EU, prompting the European Commission to submit various proposals to strengthen the bloc’s economic backbone.
Iran may allow a restricted number of oil tankers to pass through the Strait of Hormuz if shipments are traded in Chinese yuan, a senior Iranian official told CNN, according to a report Friday.
The official said the potential move is part of Tehran’s plan to manage the flow of oil tankers through the strategic waterway.
Global oil is predominantly traded in U.S. dollars, except for sanctioned Russian oil, which is priced in rubles or the yuan, said CNN, adding that China has sought for years to expand the use of yuan in oil transactions, but the dollar remains the world’s primary reserve currency.
Concerns about disruptions in the strait, a critical route for the world’s energy supply, have pushed oil prices to their highest since July 2022, following the start of the Russian-Ukrainian conflict that began earlier that year, it said.
The Strait of Hormuz carries about 20 million barrels of oil a day and roughly 20% of the global liquefied natural gas trade.
The U.N. warned on Friday that restrictions on shipping through the strait could have a “massive impact” on humanitarian operations in the region.
Tehran has effectively closed the Strait of Hormuz since March 1, following Israel and the U.S. launching joint attacks against Iran on Feb. 28, which have so far killed around 1,300 people, including then-Supreme Leader Ayatollah Ali Khamenei. Hostilities have since escalated.
Panama Canal Administrator Ricaurte Vásquez said Thursday that the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers adjust routes.
In an interview with The Associated Press (AP), Vásquez said that higher energy, fuel and navigation costs could make the Panama Canal a more attractive option for commercial traffic.
“When costs increase, in general when the price of marine fuel rises, the Panama Canal becomes a more attractive route,” Vásquez said.
Oil prices have risen amid the war in the Middle East, which has led to the temporary closure of the Strait of Hormuz by Iran in response to U.S. and Israeli attacks. About one-fifth of the world’s oil passes through the waterway at the mouth of the Persian Gulf.
If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, he said.
Vásquez said higher fuel costs are expected to affect container ships, bulk carriers and tankers transporting liquefied natural gas. If Middle Eastern supplies are disrupted, shipments may be replaced by other sources, including the United States, which could redirect some LNG cargo from Europe to Asia via Panama.
Gerardo Bósquez, an executive with the Panama Maritime Chamber, said a prolonged conflict could reshape global trade routes, with gas transport among the segments likely to benefit.
Vásquez cautioned that any changes will not be immediate and will depend on how long cargo operators expect the conflict and instability in the Gulf last.
Türkiye’s exports to Spain rose 4.1% year-on-year in the first two months of 2026, reaching $1.6 billion and marking the highest January-February performance on record.
Growing trade between the two countries comes at a time when uncertainty is rising in global commerce, partly driven by protectionist steps taken by the United States.
U.S. President Donald Trump’s country-specific tariff rates were ruled unlawful by the Supreme Court, prompting Washington to pursue alternative measures.
Trump later signed a decision under the Trade Act of 1974 introducing a 10% global tariff on imports from all countries. The U.S. president subsequently announced plans to increase the rate to 15%.
Amid these developments, Türkiye’s trade ties with nearby countries have drawn attention, with improving relations between Ankara and Madrid also reflected in stronger bilateral commerce.
According to data from the Turkish Exporters Assembly (TIM), Türkiye’s exports to Spain increased to $1.604 billion in January-February, up from $1.540 billion in the same period last year.
Spain ranked as Türkiye’s fifth-largest export market during the period, accounting for about 4% of the country’s total exports.
By sector, the automotive industry led exports to Spain with $566.7 million.
It was followed by ready-to-wear and apparel at $257.3 million, chemicals and chemical products at $208.9 million, electrical and electronics at $96.1 million, and iron and non-ferrous metals at $93.5 million.
The largest increases in export value were recorded in iron and non-ferrous metals with $29.4 million, followed by automotive with $25.4 million, ready-to-wear and apparel with $14.1 million, electrical and electronics with $8.8 million, and chemicals and chemical products with $6 million.
Türkiye’s current account balance logged a net deficit of $6.8 billion (TL 299.98 billion) in January, according to the official data released by the Central Bank of the Republic of Türkiye (CBRT) on Thursday.
The current account balance excluding gold and energy indicated a net deficit of $1.23 billion, the bank added.
Goods recorded a deficit of $6.98 billion while services saw a net surplus of $2.6 billion in January.
According to annualized data, the current account deficit recorded as $32.9 billion in January, while the goods deficit was at $71.2 billion, the CBRT also said.
Commenting on the data, Türkiye’s finance chief suggested the current account deficit in 2026 may exceed the government’s projections due to rising energy prices amid geopolitical tensions.
“We assess that this increase will be manageable, thanks to our strengthening macroeconomic fundamentals,” Treasury and Finance Minister Mehmet Şimşek said in a statement on X.
The U.S. announced new probes Wednesday into what it considers unfair trade practices by dozens of countries, including the European Union and China, opening the door to penalties and potentially more levies as U.S. President Donald Trump seeks to replace duties struck down by the Supreme Court.
The Trump administration is launching separate probes centered on overproduction and importing goods made with forced labor, U.S. Trade Representative Jamieson Greer told reporters.
The excess industrial capacity probe targets the European Union, China, Japan, India and others, and could inflame tensions with those trading partners.
Many of those targeted have struck tariff pacts with Washington, which Greer said are “independent” of the investigations.
He said Trump’s trade policy remains the same as it has been “for decades,” even if his tools may change.
“We need to protect American jobs, and we need to make sure we have fair trade with our trading partners,” he added. “If we need to impose tariffs to help solve this, we will.”
Others subject to the excess capacity probe initiated on Wednesday include Singapore, Switzerland, South Korea, Vietnam, Taiwan and Mexico.
The investigation “will focus on economies that we have evidence appear to exhibit structural excess capacity and production in various manufacturing sectors,” Greer said.
He did not specify if the eventual penalties would differ based on the country.
The second probe linked to forced labor will likely be launched “no earlier than tomorrow afternoon” and impact roughly 60 partners, he said.
“This is not about domestic conditions of particular countries,” Greer added.
“It is really about whether countries have implemented external-facing laws to prohibit the import of goods made with forced labor.”
More to come
The efforts come weeks after the high court struck down Trump’s global tariffs, saying he had exceeded his authority in tapping emergency economic powers to impose them on virtually all countries.
Trump swiftly slapped a new 10% duty on imports, to last until July 24, while officials work on more durable measures as they resurrect his trade agenda.
Greer expects other similar investigations “on a country-specific basis” to come.
He seeks to conclude the latest probes “as quickly as possible,” ideally before the temporary duties expire.
Both investigations unveiled on Wednesday are handled by the U.S. Trade Representative (USTR), falling under Section 301 of the Trade Act of 1974.
This is the same authority Trump tapped to impose tariffs on Chinese imports during his first presidency, and many of the resulting duties remain intact.
Trump’s sector-specific tariffs on goods like steel, aluminum and autos, however, remain unaffected by the Supreme Court’s ruling.
Greer said it is too early to say how any new penalties from the latest probes will overlap with the sectoral duties.
Asked how the new investigations could interact with deals that Trump has reached with partners like the EU and Japan, Greer maintained: “I think that we are able to take into account these agreements.”
While he did not go into detail on what future investigations could focus on, he noted that Washington has concerns on issues ranging from digital services taxes to pharmaceutical pricing.
The Trump administration’s latest move also comes ahead of an expected meeting between Trump and Chinese leader Xi Jinping in Beijing in April.
The Turkish central bank put its easing cycle on pause and left its key interest rate on hold at 37% on Thursday, taking a more cautious stance on monetary policy due to market fallout from the Iran war.
“As uncertainty heightened amid geopolitical developments, the global risk appetite deteriorated and energy prices increased,” the bank said, adding it acted to “contain the risks posed by these factors to the inflation outlook.”
The Central Bank of the Republic of Türkiye (CBRT) also left unchanged its band of overnight lending and borrowing rates at 40% and 35.5%, respectively. Last week, it responded to the volatility by taking liquidity measures that lifted overnight rates to around 40%, up 300 basis points from pre-war levels.
“The underlying trend of inflation was essentially flat in February. As uncertainty heightened amid geopolitical developments, global risk appetite deteriorated and energy prices increased. To contain the risks posed by these factors to the inflation outlook, decisions supporting tight monetary policy have been enacted alongside coordinated fiscal measures,” the bank said in a statement following its widely anticipated Monetary Policy Committee (MPC) meeting.
Most polls indicated that the bank was likely to keep rates steady in light of recent developments and escalating regional conflict.
“The effects of geopolitical developments on the inflation outlook through the cost channel and economic activity are being closely monitored,” the CBRT said.
Annual inflation rose slightly to 31.5% in February, while the monthly figure cooled to 2.96%, compared to the higher-than-expected 4.84% increase in January, official data revealed earlier this month.
Before the expanding regional conflict began shifting expectations, the central bank had been expected to continue a rate-cutting cycle that began in late 2024. A year ago, the bank temporarily reversed course and hiked rates, though it returned to rate cuts by mid-2025.
Since the U.S.-Israeli attack on Iran nearly two weeks ago, exports from major Gulf oil producers have largely halted, causing a sharp rise in energy prices and stoking inflation concerns worldwide.
The lira was flat at 44.114 against the U.S. dollar after the announcement.
The bank, meanwhile, also reiterated that a tight stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels.”
“The committee will determine the policy rate by taking into account realized and expected inflation and its underlying trend in a way to ensure the tightness required by the projected disinflation path in line with the interim targets,” it added. It also again emphasized that monetary policy decisions are made prudently on a meeting-by-meeting basis with a focus on the inflation outlook.
“In case of a significant and persistent deterioration in the inflation outlook, which can also be driven by the recent developments, the monetary policy stance will be tightened,” it suggested.
“In case of unanticipated developments in credit and deposit markets, the monetary transmission mechanism will be supported via additional macroprudential measures. Liquidity conditions will continue to be closely monitored, and liquidity management tools will continue to be used effectively.”
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