UK and Turkey in talks for trade agreement: Are new investments on the way?

12PUNTO FOREIGN NEWS

The UK government has announced that it has begun negotiations with Turkey for a 'modernized' trade agreement, specifically targeting the services sector. It was also stated that the agreement aims to 'create new opportunities for UK companies in Turkey's growing market of 85 million people.'

Minister of Trade Ömer Bolat and UK Secretary of State for Business and Trade Kemi Badenoch began the talks in London on March 14.

The new trade agreement will replace the existing one, which was largely negotiated in the 1990s. According to UK government data, exports from the UK to Turkey supported 57,000 jobs in 2020; 68% of these were in the services sector.

In a statement released via the official UK public sector website Gov.uk, it was highlighted that there are significant opportunities for British businesses, particularly in the fields of transport, engineering, financial services, manufacturing, and technology, driven by Turkey's decarbonization efforts and major investments in railways.

Badenoch made a statement, saying:

“I am delighted to be launching trade negotiations with Turkey, an important economic and strategic partner for the UK. We already have a thriving trading relationship and this will only strengthen with a new, modernized trade deal fit for the 21st century. An upgraded deal will give the UK’s world-leading services sector a competitive advantage in this growing market and has the potential to support jobs across the UK.”

TRADE BETWEEN THE UK AND TURKEY MAY INCREASE

The new trade agreement could lead to a major increase in UK services exports to Turkey.

According to the British government's statement, the new agreement could also offer more choices to British consumers and provide better access to imported Turkish goods such as hazelnuts, bulgur wheat, and tomatoes. This means that Turkey could export more of these mentioned agricultural products to the UK thanks to the 'competitive advantage' under the renewed agreement.

Commenting on the matter, TheCityUK International Managing Director Nicola Watkinson said:

“Turkey is a strategic gateway between East and West, offering vast growth and innovation opportunities for businesses in the UK. An upgraded Free Trade Agreement with Turkey that includes services and digital will pave the way for new trade and investment opportunities for financial and related professional services, while also laying the foundations for stronger bilateral relations and a frictionless trading environment that benefits both countries.”

Burgess and Leigh Ltd Managing Director Jim Norman stated the following:

“Burleigh is in the early stages of its export story to Turkey, but we are already seeing strong demand opening up. A more open trade agreement will help smooth this growth by reducing paperwork and delays. Burleigh’s appeal comes from its provenance, heritage, and authenticity, which resonate with Turkey’s discerning consumers and are particularly important for gifting.”