Turkey and Armenia Agree to Launch Direct Land Trade in Major Normalization Step
ANKARA/YEREVAN – Turkey and Armenia have reached a landmark agreement to launch direct land trade, marking a significant breakthrough in the economic normalization process between the two neighbors. According to a report by the Turkish outlet T24, the agreement will allow for the direct flow of goods between the two countries, streamlining a trade relationship that has long been hampered by diplomatic tensions and a closed land border.
The new arrangement is expected to fundamentally reshape the logistics of bilateral commerce. Currently, trade between Turkey and Armenia is conducted through Georgia, where goods are often subject to a “re-export” mechanism. Under the existing system, Turkish goods destined for Armenia are first processed by intermediary companies in Georgia and reclassified as separate exports. The new agreement will eliminate this requirement, allowing cargo to retain its original export status while transiting through Georgia.
This shift is projected to significantly reduce costs and bureaucratic hurdles for businesses on both sides. Noyan Soyak, the Deputy Chairman of the Turkey-Armenia Business Development Council, confirmed the development, stating that the decision was made “some time ago” and that technical work to implement the changes has already begun. Industry estimates suggest that abolishing the re-export mechanism could eliminate an additional 10 to 15 percent cost burden currently shouldered by Turkish and Armenian companies.
While the physical land border between the two nations—closed since 1993 due to the conflict over Nagorno-Karabakh—remains a sensitive political issue, this agreement represents a “de facto” direct trade relationship in terms of customs and logistics. It builds upon previous confidence-building measures, including the 2022 decision to allow direct air cargo trade and the appointment of special envoys, Serdar Kılıç and Ruben Rubinyan, who have been negotiating steps toward full normalization without preconditions.
The move comes as trade volumes between the two nations continue to grow despite the lack of official diplomatic ties. Bilateral trade reportedly exceeded $335 million in 2024, with Turkish exports accounting for the vast majority of that figure. The new direct trade framework is expected to further boost these numbers, with estimates suggesting total trade volume could reach approximately $400 million in the near term.
The agreement also signals a deepening of the “disaster diplomacy” that emerged following the devastating 2023 earthquakes in Turkey, when Armenia sent aid and rescue teams, temporarily utilizing the Margara bridge for the first time in decades. By facilitating direct commercial exchanges, Ankara and Yerevan are taking a concrete step toward integrating their economies and fostering regional stability in the South Caucasus.
* turkiyetoday.com
* caspianpost.com
* aljazeera.com
* dailysabah.com
* modern.az
* al-monitor.com
