Turkey and Italy have significantly strengthened their trade and defense relations, reflecting a broader pattern of deepening cooperation amid global economic uncertainties. This progress was underscored by the Fourth Turkey-Italy Intergovernmental Summit held in April 2025 in Rome, chaired by President Recep Tayyip Erdoğan and Italian Prime Minister Giorgia Meloni. During the summit, the two nations signed a dozen agreements covering areas such as trade, industrial investments, space, culture, sports, social services, archives, transportation, and the defence industry.
Highlighting the importance of the defense sector, President Erdoğan spoke about the fruitful cooperation with Italy and indicated that this partnership would be further bolstered through new projects. This cooperation includes a notable joint venture between Turkey’s Baykar and Italy’s Leonardo to produce unmanned aerial vehicles (UAVs), aimed at addressing critical technology gaps in Europe’s defence capabilities. The UAV market in Europe is projected to be worth $100 billion over the next decade, and the venture will have production sites in both countries, reinforcing strategic defense industry ties.
Economic relations between the two countries have been robust. According to Turkish Exporters Assembly data, Turkey’s exports to Italy grew by 7.5% in the first five months of 2025, reaching $5.34 billion, making Italy the destination for 4.8% of Turkey’s total exports. Exports in May alone were $1.14 billion, an 8% year-on-year increase. Turkey’s total exports during this period were just under $111 billion, representing a 3.5% rise from the previous year.
The automotive industry remains the largest export sector to Italy, with $1.3 billion in exports, although there was a slight decline of 5.6% compared to the prior year. Other prominent export categories that showed healthy growth include chemical substances, iron and non-ferrous metals, and steel. Istanbul remains the largest export hub to Italy, followed by provinces such as Kocaeli, Bursa, Izmir, and Ankara.
Stefano Kaslowski, President of the Istanbul Italian Chamber of Commerce and Industry (CCIIST), described these developments as indicative of a structural transformation in the commercial relationship rather than just numerical increases. He emphasised that Italy’s position as Turkey’s second-largest EU trade partner demonstrates the enduring strategic importance of bilateral ties. Kaslowski noted more than 1,500 Italian companies operate in Turkey, evidencing strong Italian investments and joint ventures.
Kaslowski highlighted improvements in the quality standards of Turkish companies, their enhanced ability to meet Italian market demands, and logistics infrastructure upgrades as key factors driving export growth. He also pointed out Italy’s industrial strengths in machinery, automotive, pharmaceuticals, and luxury goods, alongside its commitment to digitalisation and green transformation, which present significant opportunities for Turkish investors.
Beyond trade, the two countries aim to deepen cooperation in defence, energy, and innovation. The summit agreed to pursue a new trade volume target of $40 billion annually, up from $28 billion in 2023 and $32 billion reached in some recent years. This ambition is backed by growing Italian business operations in Turkey and Turkish exports that complement Italy’s industrial ecosystem.
In the realm of defence, discussions between Turkish and Italian defence officials, including Turkish Defense Minister Yaşar Güler and his Italian counterpart Guido Crosetto, have addressed regional security challenges and cooperative strategies. According to statements made after the discussions, both countries view their partnership as a key component in addressing issues ranging from Ukraine to the Indo-Pacific and Middle East regions. This high-level engagement reflects the intertwined security posture that complements the economic ties.
Italian exports to Turkey have also surged, with a remarkable 34.6% increase noted in the first five months of 2024, making Turkey one of the top destinations for Italian goods. This bilateral trade momentum marks a period of sustained mutual benefit, with both countries seeking to advance sustainable, technology-driven, and high-value added commercial relations alongside robust political support.
Looking ahead, there is optimism that trade will continue its upward trajectory supported by ongoing partnerships, updated Customs Union agreements, and collaborative R&D initiatives. Both Turkish and Italian business communities are expected to focus on innovation, green technologies, and digital transformation to further cement this multifaceted alliance. The Istanbul Italian Chamber of Commerce affirmed its commitment to facilitating this development through various services, from trade matchmaking to seminars and networking events.
In sum, the multifarious agreements and projects recently undertaken between Turkey and Italy represent more than an uptick in trade figures; they point to a deepening strategic partnership that spans industry, defence, and culture, positioning both countries to navigate global uncertainties while fostering mutual growth and stability.
Source: Noah Wire Services
