The UK has today (14 March) launched talks on a “new, modernised” trade deal with Turkey, which the government hopes will further boost the UK’s trade in services.
Business and trade secretary Kemi Badenoch launched negotiations in London alongside Turkish trade minister Ömer Bolat.
The first round of negotiations is expected to take place in the summer.
The Department of Business and Trade (DBT) says it is looking to create a new trade deal to replace the current one, this time with a particular emphasis on services.
Services
The UK is the second largest exporter of services globally. In 2020, 68% of its exports to Turkey were services based.
Badenoch said:
“I’m delighted to be launching trade negotiations with Turkey – an important economic and strategic partner to the UK.
“An upgraded deal will give the UK’s world-leading services sector a competitive edge in this growing market and has the potential to support jobs across the UK.”
International managing director at TheCity Nicola Watkinson said that an enhanced deal with Turkey would “open up new trade and investment opportunities for financial and related professional services”.
Trains, grains and automotive
Sectors like rail, manufacturing and engineering are expected to benefit, as Turkey looks to step up its own decarbonisation efforts.
DBT hopes that the trade deal will also give British suppliers better access to imported Turkish goods, like nuts, bulgar wheat and tomatoes.
In 2022, UK goods exports to Turkey stood at £6.7bn, which included power generators and metals. Steel is a particularly strong Turkish export, and remains a pivotal part of the ferrous metals market.
Background
In 2020, the UK signed a continuity deal with Turkey, largely preserving the existing bilateral relationship following Brexit.
Since then, the government has sought to negotiate a new agreement, since the original terms were discussed in the 1990s and missed out key areas, such as digital trade.
In July 2023, DBT said it was seeking a new agreement, and in November 2023, it launched a consultation on the “modernised” trade deal, seeking industry input on the terms of any new agreement.