Biden-Erdo?an First Meeting After Inauguration..."S-400 Withdrawal Not Possible"

Biden "Good Meeting"... Avoids Specific Remarks
Erdo?an "S-400 Withdrawal Impossible," Maintains Position
Expectations for US-Turkey Relations Decline... Turkish Lira Drops 1%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] U.S. President Joe Biden and Turkish President Recep Tayyip Erdogan held their first summit meeting since taking office. Although the leaders of both countries stated that constructive dialogue took place on the surface, it is reported that there was no significant progress in restoring bilateral relations, particularly regarding the core issue of Turkey's installation of the Russian-made S-400 missile defense system. As disappointment grew among investors hoping for improved relations with the U.S., Turkey's official currency, the lira, plunged more than 1% that day.

According to foreign media including the Associated Press on the 14th (local time), President Biden and President Erdogan held a separate summit meeting after the NATO summit held in Brussels, Belgium. The meeting between the two leaders lasted about 45 minutes and was conducted privately with only one interpreter present.

Immediately after the meeting, President Biden said at a press conference, "We had a very good meeting," and expressed confidence that there would be progress in restoring bilateral relations, but he avoided mentioning specific issues. President Erdogan also said at a press conference, "It was a beneficial and sincere meeting," and stated, "I believe there is no problem that cannot be resolved in Turkey-U.S. relations."

However, regarding the core issue of Turkey's S-400 installation, President Erdogan did not make any concessions, leading to a prevailing assessment that the meeting did not provide a breakthrough for advancing bilateral relations. President Erdogan said, "From Turkey's perspective, withdrawing the S-400 is impossible, and I conveyed this to President Biden," adding, "We also discussed the F-35 purchase issue and talked about possible joint measures to be taken in the future."

As a result, reflecting the disappointment of investors who had hoped for improved relations, Turkey's official currency, the lira, fell nearly 1%. Bloomberg reported, "The Turkish lira dropped 0.9% against the dollar immediately after President Erdogan announced that he maintained the existing stance on the S-400 during the meeting with President Biden, trading at 8.4655 lira per dollar," and added, "Expectations for the hard-won summit were high, but hopes that the core issues between the two countries would find a breakthrough were shattered all at once."

Previously, bilateral relations deteriorated significantly after Turkey purchased the Russian-made S-400 in 2019 during the administration of former President Donald Trump. The U.S. government imposed sanctions on Turkey and banned the sale of the F-35 fighter jets that Turkey had already ordered. The U.S. government expressed concerns that if Turkey operated the S-400 system and the F-35 simultaneously, the technology of the F-35 and NATO military secrets could be transferred to Russia through the S-400 system.