Metal industry seeks FTAs with Latin America
With a decline in commodity prices hurting profits, companies operating in the metal industry are looking at the markets in Latin America, seeking free trade agreements (FTA) with the countries in this continent.
“That is correct. We have expensive goods in inventories to sell but the prices are on the decline, and this situation causes losses in profits,” said Çetin Tecdelioğlu, head of the Istanbul Ferrous and Non-ferrous Metals Exporters’ Association (İDDMİB).
However, he noted demand from the EU and other markets for local products is strong.
At a meeting last week at the Trade Ministry, they convened their demand to government officials for signing FTAs or similar deals with Mexico and Brazil.
“The decline in prices may well continue until the end of the year,” Tecdelioğlu added.
The local ferrous and non-ferrous metal industry’s export revenues target is $16 billion, and revenues from shipments to foreign markets already exceeded $8 billion in the first half of 2022, he said, noting that the current situation in the global markets may offer opportunities to Türkiye.
Tecdelioğlu recalled the meeting at the Trade Ministry, when the “distant countries strategy” for exports was unveiled. “Under this strategy, we also aim to increase our share from the global market.”
“The report on the new strategy provides details on how exports could be increased to the target countries. We are very excited about the Latin America [market]. Particularly, Mexico and Brazil have a large population, and their consumption is strong. With FTAs, we can also capture a larger share in Europe,” he said.
Türkiye is seeking to increase its exports to the world’s largest economies with a specially tailored “distant countries strategy.”
The targeted 18 countries in different continents, including the U.S., Canada, Mexico, Brazil, China, Japan, India, South Africa and Australia, account for more than half of the global economy.