Turkey's President Recep Tayyip Erdogan during the opening session of this week's virtual global Leaders Summit on Climate. AP
Turkey's President Recep Tayyip Erdogan during the opening session of this week's virtual global Leaders Summit on Climate. AP
Turkey's President Recep Tayyip Erdogan during the opening session of this week's virtual global Leaders Summit on Climate. AP
Turkey's President Recep Tayyip Erdogan during the opening session of this week's virtual global Leaders Summit on Climate. AP

Biden holds phone call with Turkey’s Erdogan


Joyce Karam
  • English
  • Arabic

President Joe Biden called his Turkish counterpart Recep Tayyip Erdogan on Friday, a day before Biden becomes the first US leader to recognise the mass atrocities perpetrated against Armenians by the Ottoman Empire as genocide.

In a readout of the call, the White House said the two leaders will meet in June at the Nato summit in Brussels.

“President Biden spoke today with Turkish President Erdogan, conveying his interest in a constructive bilateral relationship with expanded areas of co-operation and effective management of disagreements,” the White House said.

“The leaders agreed to hold a bilateral meeting on the margins of the Nato Summit in June to discuss the full range of bilateral and regional issues.”

The call to Ankara, which came 93 days after Mr Biden took office, focused on a host of bilateral and regional issues as the two Nato allies continue to be engaged in an increasingly complex and contentious relationship.

Turkey has said that recognising the Armenian genocide would only worsen its fraught ties with the US.

On Wednesday, Washington notified Ankara it had been excluded from the new F-35 fighter multinational agreement, in line with actions the US has taken to penalise Turkey for acquiring the Russian S-400 anti-aircraft system.

Ryan Bohl, a Middle East expert at the intelligence analysis group Stratfor, saw Mr Biden’s call as an attempt to soften the blow of the US recognising the genocide.

"The call is an attempt by Mr Biden to keep ties from straining too much after the genocide recognition. Turkey will be outraged and many will want to see Mr Erdogan take a strong stand against the White House," Mr Bohl told The National.

The call provides Mr Edogan a subtext that “he stood up to Biden, which would be politically valuable, without changing much in overall US-Turkey ties".

Mr Bohl said both sides are motivated to move past the Armenian genocide recognition and focus on areas of co-operation including Afghanistan, Covid-19 vaccines and trade.

He added the call took some time to come because the White House is conducting a review of bilateral relations.

“Mr Biden held off on the call because the administration was still deciding on their approach to Turkey, ranging from the Armenian Genocide, to the S-400 acquisition, to Turkey's policies in Syria and beyond," Mr Bohl said.

“There didn't seem to be a good reason to call Ankara until the administration had at least signalled some of its positions."

Mr Biden's predecessor Donald Trump frequently called Mr Erdogan to discuss Syria and legal cases against Turkish bank Halkbank.

Mr Erdogan pleaded with Mr Trump personally to interfere and drop the Halkbank case in a call in 2019.

According to John Bolton's memoir The Room Where It Happened, Mr Trump told his Turkish counterpart he would intervene to dismantle the case.

Despite the delay in Mr Biden's call, US Secretary of State Antony Blinken met with his Turkish counterpart Mevlut Cavusoglu last month and US special representative to Afghanistan Zalmay Khalilzad has made at least one trip to Ankara.

The Biden administration is leaning on Turkey to help in the Afghanistan troop withdrawal set for September 11 and in peace talks with the Taliban.

Turkey is set to host an international peace conference for Afghanistan in mid-May.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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