UK Seeking Enhanced Trade Agreement with Türkiye* (Turkey)

BY:

Tim Hiscock

11 January 2024

Secretary of State for Business and Trade Kemi Badenoch is visiting Türkiye (Turkey) ahead of talks to negotiate and upgrade the current trade agreement. Following Brexit, the UK is no longer part of the Customs Union between Türkiye and the European Union, enabling tariff-free trade on most goods. The two countries agreed on a free trade agreement in 2020. This agreement only covers trade in goods, and the UK is now seeking to extend its reach to include trade in services, and digital and data trade. Türkiye is one of the government’s target markets for new/enhanced trade agreements, along with Switzerland, South Korea and the Gulf States.

A government consultation with industry, seeking input on a future trade agreement, closed on 5th January, and a feedback report is expected soon.

Airbus is celebrating a record contract with Turkish Airlines (announced in December 2023), for 220 aircraft. The wings will be constructed in the UK, and some craft will be supplied with British-built Rolls-Royce engines.

With a population of 84 million (similar to Germany), Türkiye is the world’s 18th largest economy and the UK’s 22nd biggest export market. The Turkish economy grew by 3.9% in 2023. Although trade between the two countries has been increasing, UK exports to Türkiye in 2022 were considerably below the peak achieved in 2018, while imports from Türkiye have grown rapidly, leading to a widening trade deficit.

UK Exporters selling to Türkiye can benefit from preferential import duties, provided their goods meet specific origin requirements. Details can be obtained from the government website Check How to Export Goods using the product Tariff number(s).

* In 2022, The United Nations formally agreed to a request from the Turkish government to recognise the country’s name change to Türkiye. Most official correspondence has now adopted this spelling, although many Turkish companies continue using the old form in English.

If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP:

Focus On: Understanding Free Trade Agreements

With the UK developing new independent trade arrangements both to encourage the export and import of goods and services from affiliated markets, this session is a must. Some knowledge of customs regulations is recommended or attendance on courses introducing this topic. This course looks at the structure of new and old UK international trade agreements, the key rules of origin and how to understand the whole agreement covering goods, services and other trade issues.

Understanding Origin & Preference

What is the difference between origin and preferential origin? This interactive workshop explains this by using case studies and exercises to help the learner understand when they are important in both export and import scenarios. It examines the documents and statements used to declare origin and preference and how to verify if your goods meet preference rules across different trade agreements. With HMRC audits increasing, you and the business need to be comfortable with this complex area.

Export Essentials: An Introduction to Exporting

Following on from the Beginners Guide to Exporting / Importing this interactive session covers the key points of exporting goods. It covers essential details about the Incoterms Rules, export documentation and working with freight forwarders to ensure goods are correctly declared. Ideal for anyone whose job has an export connection, whether sales, contracts, finance, shipping or for a managerial overview.

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