UK and Turkey agree to update trade agreement

The UK and Turkey are to begin negotiations to update their existing free trade agreement following the UK’s departure from the European Union.

The UK-Turkey FTA was rolled over after Brexit, however, it only applies to the import and export of goods, and not services, which comprise around 80% of the UK economy; the UK is the second largest exporter of services in the world after the USA.

The move to begin negotiations between the two countries follows a call between UK Business and Trade Secretary Kemi Badenoch and Turkish Minister for Trade Ömer Bolat, who both committed to deepening the trade relationship between the two countries. Representatives of both the UK and Turkey met on 18th July in Ankara to formalise the move towards renegotiations.

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, which makes it among the most populous countries in Europe. Turkey is also a major supplier of goods such as vehicles, clothing and electrical machinery to the UK, which is its fourth largest goods export market; a new free trade agreement could help reduce the price of Turkish-manufactured goods for UK consumers, as well as expanding on the £6.4 billion of UK goods exported with an agreement on services.

The move to begin talks with Turkey follows a recent deal signed this week with the 11 CPTPP counties around the Pacific Rim: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.