The UK and Turkey have announced their intention to commence negotiations on an updated free trade agreement (FTA)
The existing UK-Turkey FTA, carried over from the UK’s departure from the European Union, does not encompass vital sectors of the UK economy such as services, digital, and data.
Recognising the significance of these sectors, both countries seek to establish a new trade deal that will foster increased trade, benefit UK businesses, and drive economic growth.
Negotiations set for British and Turkish trade relationship
Following a conversation between UK Business and Trade Secretary Kemi Badenoch and Turkish Minister for Trade Ömer Bolat last week, both nations have affirmed their commitment to deepening the trade relationship and pursuing a new trade deal.
The UK-Turkey Joint Committee, composed of the UK’s Chief Negotiator and officials from both sides, will convene in Ankara, the capital of Turkey, to finalise the review of the existing agreement and initiate negotiations for the Free Trade Agreement.
UK’s focus on independent trading relationships
Highlighting the importance of Turkey as a trading partner, Business and Trade Secretary Kemi Badenoch emphasised the UK’s post-Brexit status as an independent trading nation.
By leveraging this position, the UK aims to secure trade deals that align with its economic strengths. The new FTA with Turkey presents an opportunity to strengthen bilateral trade ties, stimulate economic growth, and provide support to businesses throughout the UK.
Unlocking opportunities in a thriving Turkish market
The UK sees tremendous potential in the Turkish market, which boasts a population of 85 million people. British companies already export to Turkey, and a new FTA would further enhance this thriving trading relationship.
With trade between the two countries reaching £23.5 billion in 2022, a growth of over 30% from the previous year, an updated FTA would facilitate increased trade, potentially leading to lower prices and a more comprehensive range of choices for UK consumers.
Additionally, the new agreement would be better suited to the modern economies of both nations, addressing crucial aspects such as digital trade and services.
Future steps and engagement for British and Turkish businesses
Minister for Exports Lord Offord is scheduled to visit Turkey later this month to engage with businesses and stakeholders, exploring investment and export opportunities.
The UK government intends to launch a call for input, inviting businesses, organisations, and individuals to contribute their insights and shape the UK’s negotiating objectives for the upcoming talks.
With the consultation process anticipated to conclude next year, renegotiations for the new FTA are expected to commence after that.
Solidifying UK-Turkey trade relations for mutual benefits
Turkey is a significant supplier of goods to the UK, including vehicles, clothing, and electrical machinery. In return, the UK stands as Turkey’s fourth-largest goods export market, with exports amounting to £6.4 billion, featuring items like power generators and metals.
The current agreement incorporates a review clause, prompting the UK and Turkey to evaluate and broaden their trade relationship.
The upcoming negotiations aim to create a modernised FTA that fosters greater competitiveness, offers business opportunities across various sectors, and strengthens the partnership between the two nations.
