- UK and Turkey announce intention to start talks on a new, modernised free trade agreement.
- New deal set to replace an existing outdated UK-Turkey deal which only covers goods.
- Deal designed to boost an already thriving trade relationship, worth £23.5 billion in 2022.
The UK and Turkey have today [18 July] announced plans to begin talks on an updated free trade agreement (FTA).
The deal would replace the existing UK-Turkey FTA, which was rolled over from when the UK left the European Union and doesn’t cover key areas of the UK economy like services, digital and data. The UK is the second biggest services exporter in the world – behind only the US, and the services sector contributes around 80% of the UK’s GDP.
A new deal could boost trade and help UK companies maximise opportunities in this area, driving economic growth – one of the Prime Minister’s priorities.
The announcement follows a call between UK Business and Trade Secretary Kemi Badenoch and Turkish Minister for Trade Ömer Bolat last week, where they committed to negotiating a new deal and deepening the trade relationship between the two countries.
The UK-Turkey Joint Committee consisting of the UK’s Chief Negotiator and officials from both sides – responsible for overseeing implementation of the current agreement – will meet today in Ankara, Turkey’s capital city to formally conclude the review of the current agreement and move towards renegotiation of the Free Trade Agreement.
Business and Trade Secretary Kemi Badenoch said:
Turkey is an important trading partner for the UK and this deal is the latest example of how we are using our status as an independent trading nation post-Brexit to negotiate deals that are tailored to the UK’s economic strengths.
I look forward to using the deal to deepen the UK-Turkey trading relationship, drive economic growth and support businesses up and down the country.
Turkey presents huge opportunities for British businesses, with UK companies already exporting to its growing market of 85 million people.
The new FTA is an opportunity to strike a 21st century deal that is better suited to the modern economies of both the UK and Turkey, covering areas such as digital trade and services.
It would build on an already thriving trading relationship which reached £23.5 billion in 2022 – up more than 30% from the previous year – and better support UK businesses exporting or looking to export to the country. A new FTA could also potentially lead to cheaper goods and more choice for UK consumers.
Later this month, Minister for Exports Lord Offord will be visiting Turkey where he will meet businesses and stakeholders to discuss with investment and export opportunities.
President of Airbus Türkiye, Simon Ward, said:
Airbus and Turkey have been long-term strategic partners for almost 40 years and Turkey is a partner on all Airbus aircraft programmes, including the prestigious A350.
Greater alignment on cross-border trade will improve competitiveness and provide opportunities for businesses across numerous sectors.
Notes to Editors
- Turkey is a major supplier of goods such as vehicles, clothing and electrical machinery and goods to the UK, which is its 4th largest goods export market, in return for £6.4 billion of UK goods exports including power generators and metals.
- The current agreement contains a review clause that committed the UK and Turkey to review the current relationship. This work began last year with both partners concluding there would be merit in broadening and deepening the trade relationship.
- The UK expect to launch a call for input, which will be an opportunity for businesses, organisations and individuals to help shape the UK’s negotiating aims ahead of the talks. Following consultation, the government expects to start renegotiations next year.
Link: UK and Turkey to negotiate new trade deal
Source: Assent Information Services