Feb 26 2018

German exports to Turkey grow despite political tension

Exports to Turkey covered by a German government credit guarantee, called “Hermes”, increased by a third between 2016 and 2017, reaching nearly 1.5 billion euros, according to a report in Deutsche Welle.

The increase comes despite the German government capping the volume of trade with Turkey it guarantees under "Hermes" at 1.5 billion euros in September last year as political tensions increased between the two countries.

However, German Left Party MP Aleksander Neu said “Putting a limit on the “Hermes” credit guarantee is not a sanction. The coalition government does not want to see trade between Turkey and Germany harmed.”

In March last year Turkish President Recep Tayyip Erdoğan accused the German government of “Nazi practices” after they prevented politicians from Turkey’s ruling Justice and Development Party (AKP) from holding campaign rallies in Germany, which has a large Turkish population.

Turkey’s detention of Deniz Yücel, a German journalist on accusations of espionage, for more than year until his release on Feb. 16th, also contributed to strained relations.