The primary objective of the new deal is to enhance the already flourishing trade relationship between the two nations, valued at £23.5 billion in 2022. By expanding the scope of the agreement, both countries aspire to foster increased economic cooperation and capitalise on the potential for further growth in various sectors.

The deal would replace the existing UK-Turkey FTA, which was rolled over 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 the 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 21^st-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 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.”

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Understanding Origin & Preference

Understanding Free Trade Agreements

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