The contribution of Turkey-Iran preferred trade agreement to the trade volume between the two countries

Globalization has gradually changed the structure, direction and scale of foreign trade between countries and has paved the way for the economic integration of world financial markets. In line with the increasing integration initiatives in Turkey, the markets it entered began to diversify. One of the countries that Turkey is trying to increase its share in foreign trade is Iran. Another development affecting the volume and course of economic relations between Turkey and Iran is the "Preferential Trade Agreement between the Republic of Turkey and the Islamic Republic of Iran", which entered into force as of January 1, 2015. This study aims to examine the contribution of TTA signed between Turkey and Iran on the trade volume between the two countries. The research data was obtained from the United Nations Conference on Trade and Development website. In the study, the trade volume between the two countries was examined on a product basis for the years 2008-2022, covering seven years before and after the TTA. The obtained data was presented in graphical form and interpreted. The research results indicate that the TTA contributed to the mutual trade of both Turkey and Iran, with this contribution being more pronounced in the early years of the agreement for Turkey, while becoming more noticeable in the later years for Iran. This temporal difference is considered to reflect a transitional period implemented by Iran. Additionally, the research reveals that the contribution of TTA to Turkey and Iran differs across sectors. These findings suggest that the impact of TTA on trade between Turkey and Iran is complex and sector-specific. It is also considered that the effect of TTA on specific sectors of trade may vary over time and be more pronounced at the sectoral level rather than having a general impact. 0