Pedro Sánchez announces agreements in five key areas to intensify economic and trade cooperation with Turkey

Moncloa Palace, Madrid

The President of the Government of Spain, Pedro Sánchez, during his speech at the Spain-Turkey Business Meeting (Pool Moncloa/Fernando Calvo)

"Spain and Turkey enjoy magnificent relations in all areas," said the president during his opening speech at the business forum, which was attended by 200 representatives of 150 Turkish companies, especially highlighting the economic and commercial field. Sanchez explained that the importance of the "ties of friendship" that unite the two countries lies in the trust forged in "long-shared projects".

In 2022, Spain was the leading investor in Turkey according to Invest in Türkiye data, and this year trade between the two countries is expected to reach €20 billion, an increase of almost 50% from 2018. These data reflect the trust there is between "two friendly countries", the president said.

Spain's investment position in Turkey is particularly relevant in the banking services sector, as well as in areas such as the textile and fashion industry, insurance, the automotive auxiliary industry, construction materials, tourism, engineering, defence, transport, sustainability, water management and energy security. These are all areas in which the two economies "have committed to growing together" and have laid the foundations on which to continue strengthening economic ties.

In this regard, the president pointed to the potential offered by the fields of infrastructure, green transition and digital transformation to further strengthen these business ties, while ensuring a sustainable future for both countries.

Spain is Turkey's best ally in Europe, the president explained, and will continue to be committed to strengthening cooperation. In this respect, Sánchez called on Spanish and Turkish companies to forge alliances to work in third markets, such as Europe and the Middle East, and also in Africa and Latin America. "This summit is an opportunity to bring closer the future we aspire to," the president remarked.

Agreements in five key areas

During the meeting, a memorandum of understanding was signed to set up a Spanish-Turkish business committee, chaired by BBVA and Limak, the Turkish company with the largest number of investments in Spain. Furthermore, to reaffirm the intention of both countries to intensify cooperation, a series of agreements have been reached in five key areas.

First, work is underway to initiate the revision of the Reciprocal Protection and Promotion of Investments Agreement (APPRI).

Second, ICEX and the Turkish Presidency Investment Office will sign a memorandum of understanding to exchange information, promote investment and systematise collaboration for the benefit of both companies, considering new investments and those already in the pipeline.

Third, the Spanish development finance company COFIDES and the Turkish sovereign wealth fund will strengthen their collaboration with a view to mobilising finance for joint investments not only in Spain and Turkey, but also in third countries.

Fourth, the two export credit insurance agencies, CESCE and Eximbank, will sign an agreement that will result in increased coverage and security for trade and investment, both bilaterally and in third countries.

And fifth, the Directorate-General of Insurance and Pension Funds and its Turkish counterpart (SEDDK) will sign a memorandum of understanding for the promotion of cooperation and exchange of information.

These are five agreements, the president reaffirmed, which will undoubtedly help to strengthen the ties that already unite the productive fabrics of both countries.

Non official translation