September 13, 2026

Trade Negotiations Division (TCE)
Global Affairs Canada
111 Sussex Drive
Ottawa, Ontario K1N 1J1

Re: Public Consultations on a Potential Canada-Türkiye Free Trade Agreement — Submission from the Canada-Türkiye Business Council (CTBC)

Dear Trade Negotiations Division,

The Canada-Türkiye Business Council (CTBC) welcomes the opportunity to participate in public consultations regarding a potential Canada-Türkiye Free Trade Agreement (FTA).

As a longstanding bilateral business organization whose members include Canadian and Turkish corporate leaders, investors and SMEs, as well as public- and private-sector organizations, the CTBC draws on extensive knowledge and business networks in both markets, serving as a respected bridge and advocate for a stronger commercial relationship.

There is no better example of the CTBC’s bridge-building role than its work surrounding the creation of the Joint Economic and Trade Committee (JETCO) and the subsequent successful CTBC business program that complemented the JETCO’s inaugural meeting. Long before the Government of Canada formally established the JETCO in June 2019 through a bilateral MOU, the CTBC was a key advocate for its formation. Following the signing of the MOU, the CTBC issued a media release (Annex 1) to inform Canadian firms about the JETCO’s objectives and celebrate this milestone in bilateral commercial relations. Working with various partner organizations, the CTBC then recruited a 60-plus-member business delegation from priority sectors, including energy, healthcare, infrastructure and advanced technologies. The timing of the delegation’s program of conferences, B2B meetings and site visits coincided with the inaugural JETCO session, generating more than 300 B2B meetings in Istanbul and Ankara and over $20 million in new business.

Another example of our bridge-building role is the CTBC’s longstanding work to promote increased air connectivity between the two countries as a means of facilitating business travel and trade (Annex 2). Other instances of the CTBC’s work to advance bilateral commercial activity are highlighted later in this submission.

Based on consultations with our members and partners, the CTBC presents the following recommendations to help inform Canada’s FTA negotiating priorities with the Republic of Türkiye.

PART I: PRIORITY SECTORS FOR BILATERAL TRADE AND INVESTMENT

The CTBC has identified the following priority sectors where a reduction in tariffs and increased supply chain integration will generate benefits for firms in both countries.

1. Energy and Oil & Gas

Türkiye relies heavily on imported energy, spending nearly US$100 billion annually on energy imports to fuel its growing manufacturing sector. Canada is well positioned to help Türkiye secure and diversify its energy supply across the energy spectrum.

The potential for a mutually beneficial relationship became clear in 2024, when the CTBC partnered with the Government of Alberta on the province’s first energy mission to Türkiye in approximately ten years. The mission identified a number of potential projects and partnerships and led to a decision to organize a second Alberta business mission the following year.

The FTA should create a comprehensive energy framework that reduces trade and investment barriers across the energy sector. This should include long-term civil nuclear cooperation, including opportunities to integrate Canadian CANDU technology into Türkiye’s planned power plants, as well as improved access for Canadian renewable-energy components and technologies such as wind, solar and smart-grid systems.

The agreement should also support traditional oil and gas infrastructure by reducing barriers affecting specialized Canadian pipeline components, drilling technologies and oilfield engineering services.

As a global oil and gas hub, Canada has the potential to become a key investor in upstream and midstream oil and gas opportunities in Türkiye. While Türkiye’s existing legislation provides a supportive framework for foreign direct investment in the sector, further incentives could be introduced to reduce investment costs, streamline regulatory processes, and minimize bureaucracy. The CTBC is engaging with counterpart organizations in Türkiye to support these efforts and help create a more attractive environment for Canadian investment in Türkiye’s energy sector.

2. Mining and Critical Minerals

The CTBC co-hosts annual events at the PDAC mining convention in Toronto with a Turkish counterpart, featuring roundtable discussions and expert panels. PDAC 2026 was particularly notable, with the Turkish delegation led by the Minister of Energy and Natural Resources, including a well-attended roundtable with Canadian investors exploring opportunities in Türkiye. CTBC representatives have also participated in discussions on critical minerals and deepening bilateral cooperation.

Canadian-registered mining firms, many of them CTBC members, constitute the largest source of FDI in Türkiye’s mining sector. Several are recognized leaders in exploration, innovation and sustainable mining practices. The CTBC has also supported these firms’ efforts to advance ESG standards in Türkiye, including Canada’s Towards Sustainable Mining (TSM) program, adopted by the Miners’ Association of Türkiye in 2025.

As demand for critical minerals grows, supply chain security is a strategic priority for both countries. Türkiye’s diverse mineral endowment and expanding processing capacity position it to contribute to resilient supply chains. An FTA should, therefore, reduce barriers to trade in critical raw materials and processed rare-earth elements, strengthening integrated supply chains supporting aerospace, clean technology and defence manufacturing in both countries.

3. Aerospace, Defence and Space Systems

Türkiye boasts one of the fastest-growing and most sophisticated aerospace and defence ecosystems within the NATO alliance. Existing industrial partnerships demonstrate the potential for deeper Canada-Türkiye cooperation.

In line with Canada’s Defence Industrial Strategy, an FTA with Türkiye should eliminate tariffs on aerospace, space and defence goods and facilitate deeper integration of Canadian and Turkish supply chains.

The agreement should establish appropriate rules of origin for aerospace, space and defence products. Given the globally integrated nature of these industries, rules should accommodate globally sourced components and include appropriate provisions to facilitate Canadian and Turkish value-added.

The FTA should improve transparency and market access in government procurement, including civil space and non-sensitive defence-related tenders, while providing greater clarity regarding local-content and industrial-participation requirements.

The agreement should also facilitate the cross-border provision of engineering, systems integration, maintenance, repair and overhaul, and technical consulting services, as well as streamlined temporary entry for engineers, technical specialists and intra-company transferees.

The FTA should provide protection for intellectual property, proprietary technical data and software involved in joint programs. Local-content or industrial-cooperation requirements should not create unintended technology-transfer obligations for Canadian firms.

Lastly, Canada’s Defence, Security and Resilience Bank (DSRB) and other relevant programs should also be leveraged to encourage leading Turkish aerospace and defence companies to establish manufacturing, R&D and other operations in Canada.

Defence Trade and Export Controls

Aerospace and defence are increasingly important components of the Canada–Türkiye relationship, but past export restrictions and political uncertainties have disrupted commercial relationships.

The FTA should improve transparency and predictability around defence and dual-use trade, including by ensuring that export-control policies and assessment criteria remain responsive to the evolving international security environment, while preserving both countries’ sovereign authority over export-control decisions.

The agreement should also establish a bilateral mechanism to improve coordination and processing of non-sensitive export applications associated with approved commercial programs.

4. Agriculture and Agri-Food

Canadian and Turkish agricultural sectors are highly complementary. Canada is a global leader in grains and pulses, already exporting large quantities of lentils, chickpeas, wheat and soybeans to the Turkish market. Meanwhile, Türkiye is a global leader in processed foods and is a top-tier supplier of hazelnuts, dried apricots, figs and citrus.

The CTBC proposes the elimination of existing agricultural tariffs to facilitate the food supply chain.

The CTBC also notes the importance of addressing potential import sensitivities. While we support broad agricultural liberalization, negotiators should consider appropriate transition

periods or safeguard mechanisms for sensitive products, where necessary, to allow domestic industries to adjust.

5. Automotive Industry Integration

Canada and Türkiye possess highly developed and globally competitive automotive manufacturing sectors. Türkiye serves as an important manufacturing gateway to the European Union, while Canada remains a key part of the North American automotive and EV supply chain.

The CTBC has demonstrated the commercial potential of the bilateral relationship in this sector. Two years ago, we recruited and hosted a large delegation of Turkish vehicle-parts producers for an automotive parts event that brought together these companies and their Canadian counterparts. The significance of the event was underscored by the participation of the President of the Automotive Parts Manufacturers’ Association of Canada (APMA), who delivered the keynote address.

The FTA should establish clear rules of origin and eliminate tariffs on vehicles and automotive parts. This would accelerate cross-border partnerships and support joint ventures, particularly in EV component manufacturing.

6. Shipbuilding and Marine Engineering

The maritime relationship features a natural synergy in that Türkiye possesses highly efficient commercial and naval shipbuilding capacity, while Canada maintains world-class capabilities in marine engineering and advanced vessel design. Multiple Turkish shipyards already construct state-of-the-art vessels designed by Canadian firms for export to third-party nations.

The FTA should reduce tariff and other barriers affecting shipbuilding and marine equipment in order to facilitate greater Canadian-Turkish industrial cooperation and to support Canada’s fleet-renewal priorities.

7. Construction, Infrastructure and Material Diversification

Türkiye’s construction sector is among the largest in the world, with numerous Turkish contractors ranked among the world’s leading international builders. Türkiye is also a major global producer of competitively priced construction materials.

As Canada accelerates major transit, housing and other infrastructure projects, FTA negotiators should consider measures that would facilitate investment by experienced Turkish construction

companies, including through partnerships and joint ventures with Canadian firms. This could help mobilize additional international capital and expertise for major infrastructure projects.

Further, reducing tariffs on Turkish construction materials would provide Canada with additional competitive sources of supply while creating opportunities for increased Canadian exports of lumber and wood products to Türkiye.

8. Transportation and Air Connectivity

The CTBC has long supported increased air connectivity between the two countries. Annex 2 highlights the strategic importance of greater connectivity in supporting trade, investment and supply chains.

CTBC members welcomed the recent expansion of the Air Transport Agreement between Canada and Türkiye, which has contributed to improved connectivity and enabled Air Transat to expand its direct service between Canada and Istanbul, complementing the existing Turkish Airlines network.

Canadian negotiators should support further expansion of commercial and cargo flight capacity and connectivity to accommodate the growth in trade, investment and business travel that is expected to result from an FTA.

PART II: FTA-WIDE TRADE AND INVESTMENT PRIORITIES

In addition to the sector-specific opportunities identified above, the CTBC has identified a number of priorities that should apply across the economies of both countries.

1. Addressing Non-Tariff Barriers, Technical Barriers to Trade, and Sanitary and Phytosanitary Measures

Beyond tariff elimination, the FTA should address non-tariff barriers that impede bilateral trade. CTBC members have identified regulatory divergence, duplicative conformity assessment procedures, and lengthy customs clearance processes as obstacles to market access in both directions.

The agreement should include robust Technical Barriers to Trade (TBT) provisions that promote regulatory coherence, mutual recognition of conformity assessment, and transparent standard-setting processes. This is particularly important for sectors such as aerospace, automotive, and clean technology, where differing product standards can create significant compliance burdens.

Given the complementary nature of Canadian and Turkish agricultural trade, the FTA should establish a comprehensive Sanitary and Phytosanitary (SPS) chapter. This chapter should facilitate science-based decision-making, establish mechanisms for resolving SPS-related trade concerns, and promote equivalence arrangements that reduce unnecessary inspection and certification requirements while maintaining appropriate health and safety standards.

2. Trade in Services and Business Mobility

The CTBC supports comprehensive services market access provisions in the FTA. Canadian service providers possess world-class expertise in such sectors as engineering and architectural services, environmental consulting, financial services, education and training, and information and communications technology. The agreement should facilitate market access for Canadian firms in these sectors while ensuring reciprocal opportunities for Turkish service providers in Canada.

The FTA should address barriers to professional services, including the mutual recognition of professional qualifications and licensing requirements. It should also include a dedicated framework for the temporary entry of businesspersons, drawing on Canada’s approach under other FTAs. This framework should facilitate reciprocal temporary entry for business visitors, investors and traders, intra-company transferees, and qualified professionals, without labour market testing or numerical quotas. This is particularly relevant for engineers, architects and other regulated professionals who could contribute to major infrastructure and industrial projects in both countries.

Such a framework would promote two-way investment, enable Canadian and Turkish companies to deploy key personnel needed to establish and expand operations, support cross-border contracts, and enhance trade in professional, technical and other services.

3. Digital Trade, Data Governance and Innovation Cooperation

We recommend that the agreement include provisions on digital trade, data governance, and innovation cooperation, especially to support projects in such sectors as aerospace, nuclear energy, and infrastructure.

4. Investment and Investment Facilitation

The Canada-Türkiye Avoidance of Double Taxation Agreement (DTA) creates a competitive disadvantage for Canadian companies investing in Türkiye. Under the DTA, Türkiye may impose withholding tax of up to 15% on dividends paid to a Canadian company holding at least 10% of the voting power of the Turkish company.

Türkiye reduced its domestic dividend withholding tax rate to 10% in 2021 but restored it to 15% in 2024. Canadian investors, therefore, currently receive no preferential treatment under the DTA.

By comparison, Türkiye provides 5% dividend withholding rates for qualifying corporate investments from Spain, Ireland and Vietnam. Spain and Ireland provide the 5% rate for corporate holdings of at least 25%, while Vietnam provides it for holdings of at least 50% or investments exceeding US$10 million. The United States, like Canada, is subject to a 15% rate for comparable corporate investments.

The FTA should address the issue by including a commitment by both countries to review and amend the DTA, with the objective of reducing the dividend withholding tax rate to 5% for substantial corporate investments. This would bring Canadian investors more in line with counterparts from other countries and help create a more favourable environment for two-way investment.

5. Sustainable and Green Technologies

The CTBC supports an FTA that will provide incentives for sectors advancing global environmental sustainability. The agreement should contain provisions that eliminate tariff and non-tariff barriers for green technology exports and it should strive to support SMEs operating in such areas as clean-tech and low-voltage energy management, allowing smaller firms to more easily integrate into global supply chains.

6. Environment and Sustainable Development

The CTBC supports the inclusion of a robust Environment Chapter in the FTA, consistent with Canada’s approach in recent trade agreements. The chapter should include commitments to maintain high levels of environmental protection, ensure that environmental laws are not weakened to attract trade or investment, and promote cooperation on shared environmental challenges including climate change, biodiversity, and sustainable resource management.

As noted in our recommendations on sustainable and green technologies, the FTA should facilitate trade in environmental goods and services, supporting both countries’ climate objectives.

The agreement should also include mechanisms for environmental cooperation and public participation in environmental matters.

7. Inclusive Trade and SME Participation

The CTBC supports an FTA that promotes inclusive trade and ensures that its benefits are shared broadly. The agreement should include a dedicated chapter or provisions on trade and gender, such as commitments to promote women’s participation in international trade and investment and support women-owned businesses in accessing FTA opportunities, as well as measures to collect gender-disaggregated data to assess the agreement’s impact. The CTBC’s Women’s Network (CTBC WoN), established in 2024, provides a practical model for building business relationships between women entrepreneurs in both countries.

The FTA should also include provisions that recognize and support Indigenous Peoples’ participation in trade, including protections for traditional knowledge, support for Indigenous-owned enterprises seeking to access international markets, and provisions ensuring

that the agreement does not adversely affect Indigenous rights. The CTBC would welcome opportunities to collaborate with Indigenous business organizations to promote bilateral trade.

Consistent with this submission’s emphasis on SME participation, the agreement should include robust small and medium-sized enterprise provisions that reduce barriers for smaller firms, including women-owned and Indigenous-owned SMEs, to participate in bilateral trade.

8. Transparency, Anti-Corruption and Good Governance

The agreement should promote responsible business conduct by encouraging enterprises to adopt and implement internationally recognized standards such as the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. These standards are particularly relevant for sectors such as mining, energy, and infrastructure where Canadian and Turkish firms are increasingly active.

The CTBC supports the inclusion of comprehensive transparency and anti-corruption provisions in the FTA. Both Canada and Türkiye are parties to the United Nations Convention Against Corruption, and the agreement should reinforce these commitments. Specific provisions should address the criminalization of bribery of public officials, transparency in government procurement processes, and the maintenance of effective anti-corruption enforcement mechanisms.

The FTA should include provisions promoting good governance and the rule of law, which are foundational to a predictable and secure business environment. This includes transparent regulatory processes, access to fair and impartial dispute resolution mechanisms, and protection against arbitrary or discriminatory treatment.

PART III: STRATEGIC OPPORTUNITIES

1. Third-Country Market Cooperation

The CTBC supports the provision of 3rd country cooperation in the FTA. This would enhance, for example, Canadian and Turkish firms co-bidding on large-scale global infrastructure and energy projects.

PART IV: INSTITUTIONAL CAPACITY TO PROMOTE FDI INTO CANADA’S DEFENCE & AEROSPACE SECTOR

Maximizing the benefits of a Canada-Türkiye FTA will depend in large part on Canada’s capacity to promote and facilitate investment in Canadian industry.

The CTBC is currently organizing a bilateral webinar to inform Turkish enterprises about Canadian programs and incentives to invest in Canada’s defence and aerospace sector.

When we recently invited Invest in Canada (IC) to participate, we were advised that the agency “does not have the expertise to present on” this priority sector. While our IC contact made considerable efforts to connect us with other government officials who may be able to contribute, we respectfully submit that, particularly at this point in time, Canada’s national investment-attraction agency should be equipped to promote FDI in such a strategically important sector.

The broader issue extends well beyond the upcoming CTBC webinar. As Canada seeks to strengthen its domestic defence and aerospace capabilities, it will need an effective strategy to attract FDI.

CONCLUSION

A Canada-Türkiye Free Trade Agreement represents a significant opportunity to increase bilateral trade and investment and to strengthen commercial ties of this increasingly important strategic partnership.

In the words of the current Turkish Ambassador to Canada: “The time to act is now. The sky is the limit.”

The recommendations in this submission draw heavily on the extensive experience and expertise of CTBC board members, as well as other members active across a broad range of sectors in Canada and Türkiye, and we are happy to share this perspective with you.

We fully endorse the Ambassador’s position and trust that our input may be of some use to you in the lead-up to negotiations.

We are ready to provide clarification or additional information if requested.

Sincerely,

Mike Ward

Executive Director

Canada Türkiye Business Council

45 Spadina Road, Suite 11

Toronto M5R 2S9

matw52@gmail.com

613-806-6728

ANNEX 1

FOR IMMEDIATE RELEASE – June 10, 2019
Canada Turkey Business Council Congratulates the Governments of Canada and Turkey for Establishing Joint Economic and Trade Committee (JETCO)

The Canada Turkey Business Council (CTBC) congratulates the Governments of Canada and Turkey on their decision to establish a Joint Economic and Trade Committee (JETCO). Signed on June 8, 2019 at the G20 Trade Ministers Meeting by The Honorable Jim Carr, Canada’s Minister of International Trade Diversification and The Honorable Ruhsar Pekcan, Turkey’s Minister of Trade, the JETCO will serve to further expand trade and investment between the two countries with an emphasis on small and medium enterprises, strategic venture initiatives, and technical and scientific cooperation.

As the world’s 17th largest economy and the third most populous nation in Europe, Turkey offers tremendous commercial potential for Canadian firms. Given its strategic geographic location and trade agreements with other countries, it also offers unprecedented access to third country markets in Europe and the Middle East and North Africa (MENA) region, both through partnering with Turkish firms already established in other countries and through its position as a major regional hub.

Canada’s trade with Turkey is strong and growing. Between 2013 and 2018 Turkey moved from Canada’s 34th largest trading partner to its 23rd.  In the first quarter of 2019 Canadian exports were up a further 37% over the same period last year.

According to The Honorable Gar Knutson, CTBC chair, “We very much welcome this important development in the Canada/Turkey commercial relationship. With the active involvement of Canadian and Turkish Ministers, senior officials and business leaders, there is no question the JETCO will raise bilateral trade and investment between our two countries to new and unprecedented levels. With the JETCO now in place we are optimistic the two sides will move forward soon on formal negotiations for a bilateral Free Trade Agreement.”

Niche opportunities for trade and investment in Turkey exist across a broad range of sectors particularly in energy, information and communication technologies, mining, agriculture/agri-food, education and infrastructure. The CTBC encourages Canadian firms not yet active in Turkey to contact our office for information on market potential in the country and about upcoming events and trade missions.

About the Canada Turkey Business Council:
The Canada Turkey Business Council is a Canadian chartered, not-for-profit organization formed in 2001 in recognition of the importance of Turkey as a trade and investment partner for Canada. It is dedicated to a variety of activities to enhance commercial relations between Canada

and Turkey. Membership provides preferred access to events, timely information on niche sectors of interest, and analysis of regulatory and policy changes affecting members’ businesses.

For additional information please contact:

Mike Ward

Executive Director

Canada Turkey Business Council

matw52@gmail.com

613-806-6728

ANNEX 2

Increasing Air Connectivity Between Canada and Türkiye – A Small Business Perspective (revised August 2026)

Air connectivity between long-time partners and allies Canada and Türkiye, both members of the G20 and NATO, remains an important factor in strengthening bilateral trade, investment and business relationships.

Turkish Airlines has significantly expanded its direct service between Canada and Türkiye. In September 2026, the airline announced that its service would increase to 23 direct flights per week between the two countries. This represents a substantial improvement from the situation when this document was originally prepared in 2024.

The connectivity landscape has also improved with the entry of Air Transat into the Canada–Türkiye market. Air Transat launched year-round Toronto–Istanbul service in December 2025 and increased the service to three weekly flights in May 2026. It is also launching year-round Montréal–Istanbul service, with two flights per week beginning October 29, 2026. Together with Turkish Airlines’ expanded service, these developments represent a significant improvement in direct air connectivity between the two countries.

Air Transat and Turkish Airlines have also established interline and codeshare arrangements, providing travellers with greater access to destinations throughout Türkiye and to Turkish Airlines’ extensive network in Europe, Asia and the Middle East. These arrangements make it easier for Canadian travellers and businesses to reach destinations beyond Istanbul and enhance the commercial value of the expanding air links between the two countries.

Improved air connectivity is particularly important for small and medium-sized enterprises. Affordable and reliable direct air service facilitates participation in trade missions and conferences, meetings with prospective partners and customers, and the development of new commercial relationships. It also supports the business travel required to establish and maintain cross-border supply chains.

The establishment of the Joint Economic and Trade Committee (JETCO) in 2019 provided an important framework for strengthening bilateral commercial ties. Since then, Canadian and Turkish businesses have expanded their engagement in a number of complementary sectors.

As Canada and Türkiye move toward a comprehensive free trade agreement and seek to build more resilient and secure supply chains, continued improvements in air connectivity will be important to supporting this growing commercial relationship.

The CTBC therefore encourages the Government of Canada to continue working with Türkiye to facilitate further expansion of passenger and cargo air services between the two countries.

Greater connectivity will support trade, investment, tourism and people-to-people ties and help ensure that Canadian and Turkish businesses can take full advantage of the opportunities created by an FTA.

About the Canada Türkiye Business Council:
The Canada Türkiye Business Council is a Canadian chartered, not-for-profit organization formed in 2001 in recognition of the importance of Türkiye as a trade and investment partner for Canada. It is dedicated to a variety of activities to enhance commercial relations between Canada and Türkiye. Membership provides preferred access to events, timely information on niche sectors of interest, and analysis of regulatory and policy changes affecting members’ businesses.

For additional information please contact:

Mike Ward

Executive Director

Canada Türkiye Business Council

matw52@gmail.com

613-806-6728