You may or may not know that a brand new Turkish-German Chamber of Commerce opened in Cologne last week, with this considered by many to be the first decisive step towards Turkey becoming a future member state of the EU.
However, this also cements the long-standing socio-economic relationship between these two nations, with the new arrangement capable of driving billions of Euros in trade and creating numerous job opportunities in both Germany and Turkey.
But what’s the existing relationship between these two countries, and does it represent a viable opportunity for aspiring international entrepreneurs? Let’s find out!
Then and Now – The Relationship Between Germany and Turkey
The new chamber will serve as an official haven for the establishment and support of new business ventures, with Germany considered to be Turkey’s most important trading partner in the current climate.
Turkey currently ranks 18th on Germany’s list of most valuable trade partners, so while the relationship may seem a little uneven, there’s still a clear and tightly-woven connection between the two nations.
This is borne out by the most recent economic numbers, with German exports to Turkey rising by nearly one-fifth in 2019 despite the contraction of the German economy.
Overall, it’s more than half a century since the first guest workers’ arrived in Germany, with a thriving Turkish community having played a key role in the country’s subsequent economic success.
Make no mistake; the 50th anniversary of Germany’s guest worker agreement with Turkey is fast approaching, with this having resulted in numerous success stories and paved the way for growing volumes of international trade.
In total, the Turkish community is now thought to be 3.5-million strong in Germany, with this established as the largest ethnic minority in the country.
Which Markets are Viable and Can you Make a Profit in Germany?
If you are looking to establish a Turkish business in Germany, the key is to identify viable and profitable marketplaces.
One of the biggest markets exists in the restaurant and fast food markets, with Turkish immigrants particularly active in this space. There’s a good reason for this too; as many continue to enter the country as low-skilled workers who ply their trade in this industry before branching out on their own.
Textile industries are also capable of delivering significant profits in Germany, with Turkey one of the biggest manufacturers and retail suppliers in the world.
This was borne out during the coronavirus outbreak, when orders in Turkey increased by the tune of an estimated $2 billion after China outsourced production to the region.
How to Launch a Successful Venture in Germany?
Once you’ve selected a viable marketplace, the next consideration should focus on your currency holdings and the way in which you trade.
This is central to future profitability, particularly when you consider the continued inflation of the Turkish lira and the impact that this has on the demand for German and European imports.
Of course, this issue would be solved if Turkey was ultimately to be accepted into the EU and adopt the single currency, but for now it creates a challenge for entrepreneurs to overcome.
At the very least, it’s important to monitor the exchange rate between these two currencies in real-time while also understanding the underlying trends that impact on prices.