Canada lifts freeze on trade talks with Turkey after NATO move

Canada has unfrozen talks with Turkey on lifting export controls on drone parts after Ankara's endorsement of Sweden's NATO membership, seen as a significant concession, Reuters reported on Friday, citing a person familiar with the talks. The move is seen as one of several concessions won in exchange for the Turkish blessing.

After Erdogan's announcement to support Sweden, the US declared that it would proceed with the transfer of F-16 fighter jets to Turkey in consultation with Congress.

In another significant move, Canada agreed to reopen discussions with Turkey regarding the export controls on drone parts, including optical equipment. However, the person familiar with the talks did not disclose their identity due to a lack of authorization to discuss details with the media.

In 2020, Canada had suspended the export of certain drone technology to Turkey after determining that the equipment had been used by Azerbaijan's forces during the conflict with Armenia in Nagorno-Karabakh. The Canadian Prime Minister's office stated that the export controls, which were imposed for valid reasons, remain in effect.

The statement from the Prime Minister's office confirmed that Justin Trudeau had discussed Sweden's accession to NATO with partners at the Vilnius summit, including President Erdogan. Canada reiterated its commitment to the principle of unrestricted defense trade and investments among NATO allies.

Prior to the NATO summit, Turkey had sought assurances from the United States regarding the F-16 fighter jets and requested that Canada's export controls be included in the final discussion. In response to Turkey's demands, Canada agreed to resume talks on the export controls that had been put on hold since Turkey objected to the NATO membership bids of both Sweden and Finland the previous year. The condition was that Turkey would endorse Sweden's bid at the Vilnius summit.

During the summit, Canada outlined its position on the rules governing the use of exported technologies to Turkey and awaited a response. This decision meant that the talks on export controls were no longer frozen, contributing to Erdogan's pledge to support Sweden's membership bid.

A Turkish defense ministry official commented that it was unacceptable for NATO allies to impose export restrictions on each other, and progress had been made on the issue during the Vilnius summit. However, the official added that Turkey would follow the negotiations and decisions made at the summit.

In an interview with Turkish media, Erdogan stated that his country expects all NATO allies to lift sanctions and restrictions on its defense industry. He expressed optimism about the sale of F-16 fighter jets after his meeting with U.S. President Joe Biden, and Turkey had previously requested to purchase $20 billion worth of F-16 fighters and modernization kits for its existing warplanes.

Turkey's objections had been a significant obstacle to Sweden and Finland's NATO membership aspirations following the Russian invasion of Ukraine. Turkey's demands included a tougher stance against the Kurdistan Workers Party (PKK), designated as a terrorist group by Turkey, the United States, and the European Union since its inception in 1984. Finland's membership was ratified by Turkey's parliament in March, following concrete steps taken by Helsinki to crack down on groups perceived as terrorists and to ease defense exports.

Erdogan confirmed that he would present Sweden's ratification to parliament when it reconvenes in October. He also mentioned that Stockholm would provide Turkey with a roadmap outlining the necessary steps to be taken before approval, Gercek News reported.

The leader of the Nationalist Movement Party (MHP), on which Erdogan's AKP relies for its parliamentary majority, stated that Sweden had not distanced itself from terrorism. However, the final decision on Sweden's membership bid would be made by Erdogan himself. Erdogan met with MHP leader Devlet Bahceli following the approval of Sweden's membership.

Erdogan emphasized that he expects the European Union to take steps, such as updating the customs union and granting visa-free travel, before Turkey begins implementing the promises it has made. A European diplomat suggested that Erdogan may have pushed the limits to maximize what he could gain from delaying Sweden's accession, highlighting his tendency to utilize his leverage in negotiations.

News Code 159135

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