Critical step for trade between Turkey and the UK

Turkey and the United Kingdom are preparing to update their Free Trade Agreement (FTA) to further develop their commercial relations. This process was initiated following meetings held by the trade ministers of the two countries in London.

According to a report by Mehmet Doğan Erdoğan from Ekonomim, the United Kingdom's departure from the European Union on January 31, 2020, created the necessity for a new trade agreement between Turkey and the UK. In this context, the first FTA covering industrial products was signed on December 29, 2020. The purpose of the agreement was to maintain commercial relations that were interrupted by the end of the EU-Turkey Customs Union.

WHY IS UPDATING THE TRADE AGREEMENT IMPORTANT?

In 2024, the trade volume between the two countries reached approximately 28 billion pounds. Turkey is the UK's 16th largest trading partner. British companies export 9.3 billion pounds worth of goods and services to Turkey's growing market. The UK ranks second globally in service sector exports, and this sector accounts for 34 percent of exports to Turkey.

With the update of the FTA, the goal is to remove technical barriers in strategic sectors that make up 33 percent of the trade between the two countries. Through this, it is planned to conduct trade in a faster, more transparent, and secure manner. As of the end of 2023, investments by British firms in Turkey reached 9 billion dollars, while investments by Turkish companies in the UK stood at 4.3 billion dollars. The contracting sector plays a significant role in this cooperation.

The modernization of the Free Trade Agreement and its expansion into new areas are seen as an important step that will further strengthen economic cooperation between the two countries.

News Source: 12punto