Turkey-Afghanistan Economic and Trade Relations

Afghan Economy

GDP (billion $)

19.5 (2017)

Inflation Rate (%)

1.9 (2017)

Real GDP Growth Rate

2.7 (2017)

Unemployment Rate (%)

35 (2017)

Population (million)

34.1 (2017 est.)

Exports (billion $)

0.59 (2016)

GDP Per Capita ($)

560 (2017)

Imports (billion $)

6.5 (2016)

Turkish Firms in the Country

127

Main Trade Partners: Iran, Pakistan, India, UAE, Russia, China, Turkmenistan, Kazakhstan

Main Export Items: Fruits, handmade carpets, gums and resins, oily seeds, coffee, tea and spice

Main Import Items: Mechanics and other products, mineral fuels and oils, food, lard and vegetable oil, iron and steel

Bilateral Economic and Commercial Relations

Bilateral Trade (million $)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019 / 3

Import

260

276

290

228

186.5

161,7

145.7

172.3

145.5

29.7

Export

5.1

4.8

6.5

10.7

16.5

11.8

9.3

8.8

11.6

2.3

Volume

265.1

280.8

296.5

238.7

203

173.5

155

181.1

157.1

32

Balance

254.9

271.2

283.5

217.3

170

150,9

136.4

163.5

133.9

27.4

References: TÜİK

Bilateral Cooperation Mechanisms:

Joint Economic Commission (JEC): The Second Meeting of JEC between Turkey and Afghanistan was held in Ankara on 9-10 May 2018. Turkish Minister of Interior and Afghan Minister of Trade and Industry are the co-chairmans of the JEC.

Business Council: The last meeting of the Business Council was held during the visit of President Ashraf Gani in Istanbul, in December 2015.

RECCA: The Regional Economic Cooperation Conference on Afghanistan (RECCA) is a regional cooperation platform launched in 2005 in order to contribute to the economic development of Afghanistan. Turkey has been attending RECCA meetings regularly, the last of which was the seventh meeting held in Ashgabat on 14 - 15 November 2017. Representatives of business circles, academicians and non-governmental organizations also participate in RECCA conferences.

The Lapis Lazuli Transit, Trade & Transport Route Agreement which aims to enhance economic cooperation and connectivity between Afganistan, Turkmenistan, Azerbaijan, Georgia and Turkey, was signed at the said Ministerial Meeting on 15 November 2017.

Turkish Investments and Contracting Services in Afghanistan:

The majority of the 127 Turkish companies operating in Afghanistan are working in the field of construction and contracting sectors. The above-mentioned companies have realized 627 projects between 2003 and 2016, amounting to approximately USD 6 billion. Companies with Turkish capital also operate in services (health, logistics, consultancy, etc.), energy and mining sectors.

Negotiation of the Afghanistan-Turkey Double Taxation Prevention Agreement:

The second round of negotiations was held in Ankara on 10-12 April 2019.