Portugal and Turkey Set USD 5 Billion Trade Target as JETCO Talks Open New Sectors

Officials from Portugal and Turkey met in Lisbon on April 8 for the fifth session of the Joint Economic and Trade Committee (JETCO), setting an ambitious target to lift bilateral trade from a record USD 3.7 billion last year to USD 5 billion within two years. The talks, co-chaired by trade officials from both governments and supported by Portugal's investment agency AICEP and Turkey's Foreign Economic Relations Board (DEIK), mark a deepening of economic ties between two countries that have historically traded below their potential.

What Was on the Table

More than 50 Turkish and Portuguese business representatives participated in sectoral roundtables covering logistics, information technology, engineering, shipbuilding, and manufacturing. The breadth of topics reflects a deliberate strategy to move the relationship beyond its traditional anchors — textiles and automotive components — into higher-value sectors where both countries see growth.

The most concrete discussions centred on Turkey's construction and engineering firms positioning themselves for Portugal's large-scale urban development pipeline, estimated at up to EUR 60 billion over the coming decade. Portugal's chronic housing shortage and ageing infrastructure require a construction surge that domestic capacity alone cannot deliver, and Turkish contractors — among the world's most active in international markets — see an opening.

Why Turkey, and Why Now

The timing is not accidental. With US tariffs disrupting transatlantic trade flows and the EU's response to Washington's reciprocal duties still taking shape, both Lisbon and Ankara have reason to diversify their export markets. Turkey sits outside the EU's customs union for services and many industrial goods, which paradoxically makes it a useful partner for Portuguese firms seeking supply chain alternatives that bypass the worst of the tariff crossfire.

For Turkey, Portugal offers a gateway to the EU single market and to the Portuguese-speaking world — a combined economic space of over 270 million people spanning Brazil, Angola, Mozambique, and several other nations where Portuguese business networks run deep. AICEP has been actively promoting this "lusophone bridge" proposition to non-EU partners, and Turkey appears to be the latest country to take the pitch seriously.

Trade Numbers in Context

Bilateral trade of USD 3.7 billion sounds significant, but it is modest relative to both countries' total trade volumes. Portugal's goods exports to Turkey were roughly EUR 900 million in 2025, concentrated in machinery, plastics, and paper products. Turkish exports to Portugal — dominated by vehicles, textiles, and steel — were larger, creating a trade imbalance that Lisbon would like to narrow.

The USD 5 billion target implies roughly 35 per cent growth in two years, which is aggressive but not implausible if Turkish firms begin winning contracts in Portugal's construction and infrastructure sectors. The planned high-speed rail link between Lisbon and Porto, the new Lisbon airport at Montijo, and the national housing programme all represent pipeline opportunities worth billions.

What Comes Next

Both sides agreed to establish working groups in logistics and digital services that will report back before the next JETCO session, tentatively scheduled for Ankara in late 2026. A memorandum of understanding on technical cooperation in shipbuilding — an industry where both countries have significant yards — is expected to be finalised in the coming weeks.

For Portuguese exporters navigating a world of rising tariffs and fragmenting supply chains, Turkey represents a market that is large, growing, and strategically positioned between Europe and Asia. Whether the USD 5 billion target proves realistic will depend on whether the political goodwill expressed in Lisbon translates into signed contracts — and on whether the broader trade environment gives both countries enough stability to plan beyond the next quarter.