Italy-Türkiye summit poised to unlock new avenues for cooperation

Rome: As Turkish and Italian business circles await President Recep Tayyip Erdoğan’s visit to Italy on April 29, discussions to be held are expected to open new doors for cooperation in various sectors, including defense, aviation, cybersecurity, energy and automotive, according to a report on Sunday.

The 4th Türkiye-Italy Intergovernmental Summit will be held on April 29 under the leadership of President Erdoğan and Italian Prime Minister Giorgia Meloni. The summit, taking place in Rome, will address diplomatic and political relations as well as economic cooperation between the two countries.

An accompanying business forum will particularly focus on exploring opportunities in defense, aviation, cybersecurity, energy, automotive and infrastructure sectors. The talks, which will also evaluate the potential for cooperation in third countries, are expected to contribute to the trade goals of both nations.

Last year, Türkiye exported $12.9 billion (TL 495.80 billion) worth of goods to Italy, while its imports from Italy reached $19.3 billion. The $32 billion trade volume between the two countries reflects the positive course of economic relations, with increasing activity in the defense sector expected to drive further progress. At the same time, the upcoming visit of Erdoğan, accompanied by ministers and businesspeople, is seen as a gateway to new agreements and collaborations.

Lale Cander, the president of the Türkiye-Italy Business Council of the Foreign Economic Relations Board (DEIK), evaluating the commercial relations between the duo, said that Italy stands out as one of Türkiye’s top five export markets.

She highlighted that there is potential for cooperation in sectors such as automotive, machinery, textiles, chemicals, pharmaceuticals and energy, as well as in high-tech areas like defense, aviation and space.

“As of last year, 1,610 Italian companies are operating in Türkiye with $5 billion in investments. These investments are concentrated in sectors like automotive, energy, infrastructure, logistics, banking and food. Companies like Fiat, Pirelli, Eni and Barilla have been actively operating in Türkiye for many years,” Cander said.

“On the other hand, Turkish companies have started becoming more visible in Italy, particularly in the textile, food and automotive sub-industries. The rise in high-tech and R&D-focused investments shows that Turkish capital in Italy is also undergoing a transformation,” she added.

She also emphasized that the business council has been working on expanding cooperation in new-generation themes such as digital transformation, energy and the green economy, and they are leading the formation of consortia between Turkish and Italian firms in third markets like Africa and the Middle East.

Cander also noted that a total of 500 business representatives from both countries will attend the forum at the summit, which will serve as a platform for solidifying economic and commercial agreements.

Cander also discussed the joint venture agreement signed between Baykar, a leading Turkish drone manufacturer, and Leonardo, one of Europe’s largest defense firms, in the field of unmanned technologies. She said the agreement is significant for strengthening Türkiye’s position in the defense industry.

Highlighting that the partnership will boost the country’s presence in Europe’s rapidly growing drone market, she said: “Europe’s drone market is expected to reach $100 billion in the next 10 years. Plans are in place to establish joint production facilities both in Türkiye and Italy, which will encourage mutual technology transfer and supply chain integration.”

“This cooperation also creates new opportunities for other Turkish defense companies. Thanks to this partnership, local firms could gain the chance to manufacture at international standards.”

Valeria Giannotta, the scientific director of the Observatory in Türkiye by Rome-based think tank CeSPI said that trade between Türkiye and Italy is progressing well and maintaining a balanced path.

She highlighted the Baykar-Leonardo partnership agreement as a turning point for strategic partnerships expected to increase in the future.

Giannotta mentioned that both countries aim to reduce their strategic dependencies on other global actors and continued: “Türkiye and Italy share the need to develop supply chains in various sectors, especially in steel and chemicals, to enhance the industrial autonomy of Europe and the Mediterranean.”

“This partnership not only supports economic and trade complementarity but also seeks to enhance regional integration. When it comes to business and the economy, Italy and Türkiye are well-positioned to further integrate the regional system,” she maintained.

“Italy helps Türkiye access and integrate into the European system, while Türkiye opens the door to other markets and regions (such as the Middle East, Africa and Central Asia). I’d also like to point out that Italian companies in Türkiye consider the country a bridgehead for entering third-country markets due to its geographical and logistical advantages, and they are pleased to operate there. Italian investors also stand to benefit from Türkiye’s strengths in R&D and technological innovation,” she concluded.