Turkey-US Defense Cooperation Efforts and S-400 Strategy: CAATSA and F-35 Return

Deputy Minister Gümrükçü, speaking at an Atlantic Council conference in Washington, discussed the resolution process of CAATSA and F-35 disputes between Turkey and the US, and evaluated the S-400 defense systems as a one-time purchase. Gümrükçü stated that with the start of US President Donald Trump's term, a joint political and military working group was established, adding, 'This time we really feel closer.' Emphasizing full confidence in the US administration fulfilling the agreement's obligations, Gümrükçü noted that Turkey's return to the F-35 program goes beyond a military step, becoming part of a broader initiative for deeper defense industry cooperation between the two countries.

Defense Industry Cooperation Initiatives

■A 'much broader and comprehensive initiative' is being carried out in Turkey-US relations regarding CAATSA and F-35 issues.

■With the establishment of a joint working group, full confidence was expressed in the US administration fulfilling its legal and political obligations.

■Gümrükçü emphasized that they felt this level of trust for the first time in 10-15 years during an agreement.

■He stated that the S-400 systems were a one-time purchase and communicated this to allies, criticizing low-level comments from Greek-origin Congressional members and Greece.

Strategic Rationale Behind S-400 Acquisition

■Turkey purchased S-400s to 'fill an immediate gap' due to the inability to obtain alternative defense systems from allies.

■Gümrükçü noted that while they are pleased with allies strengthening their defense capabilities, no comments were made within the same alliance.

■The message that S-400s are a one-time acquisition signals flexibility in Turkey's defense policy.

From a market perspective, such defense industry cooperation signals can create positive reflections, especially for companies investing in defense spending and technology transfer. However, lifting legal barriers like CAATSA could increase liquidity in Turkey's global bond and public offering markets. I closely monitor the impact of political stability during the Trump era on the Turkish economy.