Impact of Sanctions on Turkey and Iran’s Commercial and Economic Relations

In the last 20 years, multilateral trade and economic relations between Turkey and Iran has shown a rapid development. Since 2000 until 2019, Turkey s trade with Iran by showing rising volume is reach to more than 135 billion USD. This essay is discussing and examining trading cooperation terms of both country, after discussing and examining commercial relations between Iran-Turkey, this essay analyzed the factors that hinder this cooperation and the point where nevertheless these obstacles in detail. In examined period by sectoral concentration of trading between Turkey and Iran, amount of disparity and deflecting impact of sanction has been analyzed. Sectoral international trading structure of Iran and Turkey were analyzed by yearly import and export datas and Intra-industry trade index for 2008-2018 period. The data which used in this study has been compiled from Statistical Institute of Turkey (TUIK), International Trade Center (ITC) and Turkey Exporters Assembly (TIM). According to the analysis, it was seen that Turkey s sectoral exports with Iran decreased and embargo has been shown a deflector impact but despite to applied sanctions, economic relations between two countries get strengthened. In addition, the level of investments between the two countries is going high.

Keywords:

Multilateral Trade , Concentration , Intra-Industry Trade , sanctions