Electing Donald Trump as the president suprisingly, the world’s greatest economical and political power, USA opened a door to an obscure era with advantages and disadvantages.
US people made their choices and elected Donald Trump as their 45th president. Trump will take over the duty from Barack Obama on January, 2017. Known as a famous estate agent, businessman and tv-show star, Trump had been using a very firm, discriminatory and populist language that was America-oriented throughout his election campaign. The specialists expected Obama era to continue in case Hillary Clinton is elected. However all the theories turned upside down with Trump’s becoming the president. An unknown, even unpredictable era is waiting not only for the USA but also the world!
Trump’s statements about reviewing many international agreements that discussed and signed in Obama’s presidency era, created a big concern in global markets. Agreements like; Trans Pacific Partnership(TPP) aiming to strengthen economical and commercial relations with Asian and Pacific countries, Transatlantic Trade and Investment Partnership(TTIP) aiming to develop collaboration with EU, and North American Free Trade Agreement(NAFTA)regulating the commercial relations between the USA-Canada and Mexico, are on target.
Focusing on reviving American economy, Trump is aiming at agreements that make export easier in order to uplift local manufacturing. Believing that things will get back on track with a developed real economy, Trump announced that he would review all the agreements made with Latin America and Europe and cancel if necessary. So, what could happen in the relations between the USA and Turkey, especially in the commercial side? Even if there is no clear politics announced, most of the predictions are positive. One of the reasons for that is, EU Transatlantic Trade and Investment Partnership(TTIP) that Obama attached great importance, started negotiations however didn’t have the time to sign. Trump is very cool towards this agreement that aims to make the USA and the EU commercially one market. Turkey would be left out of this market since it is not an EU member. Being a part of Customs Union, Turkey trades with EU tax-free however, there is no such agreement with the USA. If TTIP had been realized, the USA could have sold products Turkey without tax-paying, whereas Turkey would have traded in the USA with taxes. Long story short, a new unfair competition would have occured. Even the fact that an agreement which will affect Turkey negatively is stated to be reviewed again, increases the positive reactions towards Trump.
The USA Economy in Numbers and Turkish Trade
With a gross domestic product(GDP) approximately 19 trillion dollars, the USA is the greatest economy of the world. By numbers of 2015; the USA is the biggest importer with 2,5 trillion dollars of import, also the second biggest exporter after China with 1,5 trillion dollars of export. Last year the export of the USA fell down 7,1% compared to 2014 also its import regressed 1,6%. In 2015, the foreign trade deficit of the USA increased and became 8.4,1 billion dollars. Its total foreign trade volume was 3,813,3 billion $. In 2015, the USA made foreign trade from Canada, Mexico, China, Japan and United Kingdom at most. The top five countries in import were China, Canada, Mexico, Japan and Germany.
Turkey was ranked as the 27th of the USA’s export with 9,6 billion dollars, and the 33rd of import with 8,3 billion dollars. Whereas Turkey’s share of the USA’s total export was 0,6%, the share we took from the USA was only 0,4%.
Textile and Apparel Trade Has Growth Potential
In 465 billion dollars of total world apparel export, the USA is the biggest buyer with 104 billion dollars of greatness. The biggest apparel provider of the USA is China with 40,440 million dollars whereas Turkey is ranked as the 22nd with 719 million dollars. China is also the USA’s biggest partner in textile import with 3,502 million dollars as Turkey is ranked the 10th with 399 million dollars.
Making a slow and safe progress by years, Turkey-USA textile and apparel trade attracts interest with its growth potential. Specialists especially highlight that the USA’s new era which will begin with Trump can offer new opportunities.