Türkiye-Taiwan Agricultural Trade Analysis and Future Prospect

Abstract

Taiwan and Türkiye are more than 8000 kilometers apart and relatively located at both ends of Asia. Ethnics, languages, industry structures, and so on are tremendously different between the two countries. It’s not common to make connections between the two countries. However, the essential differences between countries create possibilities for cooperation. For instance, different industry structure provides a chance for both countries to be better off by trading and investment, especially in agriculture sector.

We concluded that domestic political stability, global economic condition, and the diplomatic relationship between these two countries are the main factors that affect total trade volume. Yet, only diplomatic relationships significantly affect agricultural trade, and the amount has increased fivefold from USD 13.6 billion in 2009 to 71.4 billion in 2020. We can foresee that trade in the agricultural sector still has a large potential to expand in the future.

Based on our analysis, many obstacles still need to be tackled for deeper future cooperation. For instance, long transport distance, low publicity, no preferential tariff, and the most important problems of all, the political issues. Both of these two countries are facing both domestic and international political pressures as well as an unstable global political and economic situation.

However, there are also counter solutions to reach a win-win future. As a critical character for the Turk states and the Caucasus, Türkiye should show more supports to Taiwan, by which the western countries can have more confidence in Turkey’s determination to democracy and Taiwan can have more space to expand its business in the region. On the contrary, Taiwan should increase its direct investment or shift technology to Türkiye, where Taiwanese companies can enjoy a lower production cost and Türkiye can receive technological innovation in the agriculture and food sectors. Holding bilateral joint meetings is the most efficient and effective method to boost the trade volume for the time being. Increasing the trade volume can substantially decrease the trade cost per unit and increase customers’ willingness to purchase. It will also provide more bargains for future preferential tariff negotiation.