Turkey and Libya Start Talks on Free Trade Deal

Libya reaffirmed its commitment to strengthening relations with Türkiye by renewing previous agreements, finalizing a free trade agreement (FTA), and fostering investment ties. The announcement came during the Libya Energy and Economic Summit in Tripoli, as Libyan Economy and Trade Minister Mohamed Al-Hwej highlighted Türkiye’s role as a strategic partner in diversifying Libya’s oil-dependent economy.

Renewing Strategic Partnerships

Minister Al-Hwej emphasized Libya’s plans to collaborate with Türkiye in economic growth and sustainable development.

“We consider Türkiye a long-term strategic partner,” Al-Hwej stated, adding that Libya prioritizes the removal of trade barriers and the facilitation of private-sector partnerships.

The two nations aim to finalize an FTA and implement agreements, including a double taxation avoidance deal. Al-Hwej revealed progress in discussions with Türkiye’s trade ministry, noting that legal frameworks are being established to enhance bilateral trade and investments.

Energy at the Core of Economic Revival

Libya, with Africa’s largest hydrocarbon reserves, is positioning energy as the backbone of its economic recovery. Frequent blockades of oil facilities and political instability have historically hindered growth. However, Al-Hwej noted a renewed focus on stabilizing the energy sector:

“This summit is about energy because there is no economy without it. Energy is critical to transportation, industry, agriculture, and services.”

Türkiye’s Expanding Role in Libya

Türkiye has deepened ties with Libya in recent years through security and maritime agreements. The 2019 Eastern Mediterranean maritime pact and the 2022 energy exploration deal reflect a shared commitment to economic cooperation.

Libya’s minister also praised Türkiye’s successful economic model, expressing aspirations to replicate its approach in Libya. Turkish companies, he added, are encouraged to participate in both upstream and downstream sectors of the Libyan energy industry, including petrochemicals and refining.

TPAO: Rekindling Investment in Libya

The Turkish Petroleum Corporation (TPAO) outlined ambitious plans to invest in Libya’s energy sector. Speaking at the summit, TPAO General Manager Ahmet Türkoğlu cited Libya’s potential to increase oil production to 2 million barrels per day as a key driver for renewed interest.

“We are ready to invest billions of dollars in this great potential,” Türkoğlu stated, highlighting offshore energy as a promising area for development.

Türkoğlu noted TPAO’s past investments in Libya and its readiness to secure new exploration and development contracts. He stressed the need for transparency and competitive market access to attract broader foreign investment.

Building a Sustainable Future

Both nations view their partnership as pivotal to economic and energy progress. Libya’s government is actively working to enhance predictability and financial compliance in its markets, ensuring a favorable environment for investors.

Minister Al-Hwej concluded with optimism:

“Libya is undergoing a rapid transition toward sustainable economic growth. In this environment, we expect our growth rate to surpass that of other Mediterranean countries.”

With Türkiye’s involvement and Libya’s strategic energy initiatives, the collaboration promises to drive regional economic development and stability.

 

 

 

 

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