Turkey-Afghanistan Economic and Trade Relations

Afghan Economy

GDP (billion $)

19.8

Inflation Rate (%)

-1.5

Real GDP Growth Rate

0.8

Unemployment Rate (%)

38

Population (million)

32.5

Exports (fob-billion $)

0.57

Population Growth Rate (%)

Imports (fob-billion $)

7.7

GDP Per Capita (USD)

654

Turkish Firms in the Country

127

References: Turkish Embassy in Kabul, Ministry of Economy, EIU, World Bank

Main Trade Partners: Pakistan, India, Tajikistan, the USA, the Russian Federation

Main Export Items: Fruits, dried fruits, handmade carpets, wool, animal skin, leather confectionary, semi finished jewelery

Main Import Items: Mechanics and other products, food, textiles, oil

Bilateral Economic and Commercial Relations

Bilateral Trade (2016 - million USD)

2010

2011

2012

2013

2014

2015

2016

Export

260

276

290

228

186.5

161,7

145.7

Import

5.1

4.8

6.5

10.7

16.5

11.8

9.3

Volume

265.1

280.8

296.5

238.7

203

173.5

155

Balance

254.9

271.2

283.5

217.3

170

150,9

136.4

References: TÜİK

Main Export Items of Turkey: Metal final products, electrical machines and tools, textile fiber and products

Main Import Items of Turkey: Leather, animal skin, leather products, handmade carpets.

Bilateral Cooperation Mechanisms:

Joint Economic Commission (JEC): The First Meeting of JEC between Turkey-Afghanistan was held in Ankara on 26-27 April 2005. Süleyman Soylu, Minister of Interior Affairs is the co-chairman of the JEC.

It is important the Double Taxation Prevention Agreement (DTPA) be signed between the two sides.

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. The sixth meeting of RECCA was held in Kabul on 3 - 4 September 2015 with the theme "Silk Road Over Afghanistan". Representatives of business circles, academicians and non-governmental organizations have participated in RECCA conferences. Turkey has been attending RECCA Meetings regularly.

The last RECCA Meeting was held between 1-2 March 2017, in Istanbul.

Various meetings were organized within the framework of RECCA I. Business Forum. Likewise, Afghan/Turkish businessmen and private sector representatives came together and realized bilateral meetings.

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. Turkish firms are in the first rank among foreign investors in the field of contracting. Companies with Turkish capital also operate in services (health, logistics, consultancy, etc.), energy and mining sectors.

Negotiation of the Afghanistan-Turkey DTPA:

The first round of negotiations was held in Ankara between 6-8 June 2016. We wish to hold the second round of the said negotiations.