Turkey and UK Advance Talks on Upgraded Free Trade Deal
Turkey and the United Kingdom are poised to enhance their economic partnership as they prepare to modernize their Free Trade Agreement (FTA) by the end of July. This initiative follows a joint review in 2023 that pinpointed areas for improvement, signaling a mutual commitment to bolster trade relations between the two NATO allies. The existing FTA, which was transitioned post-Brexit in 2020, is now under scrutiny for potential upgrades to accommodate the evolving trade landscape.
During a recent meeting in London, Turkish Trade Minister Omer Bolat and UK Secretary of State for Business and Trade Jonathan Reynolds made significant headway, particularly in sectors such as motor vehicles and chemicals. The signing of these sections marks a pivotal step towards the agreement's modernization. Both parties have expressed optimism about the progress and the future of their trade relationship, which currently stands at approximately £28 billion, with Turkey ranking as the UK's 16th largest trading partner.
The upcoming 8th session of the Türkiye-United Kingdom Joint Economic and Trade Committee (JETCO) in London later this year is expected to provide a comprehensive review of the bilateral trade relations. This forum will serve as a critical platform for both nations to evaluate their economic ties and explore further opportunities for collaboration. The ministers have also reaffirmed their dedication to defending free trade and pursuing increased trade and investment, underscoring the strategic importance of their partnership.
In a move to facilitate smoother trade, the UK and Turkey have signed an upgraded Technical Barriers to Trade (TBT) chapter, aligning it more closely with the UK-EU Trade and Cooperation Agreement. This amendment is anticipated to reduce costs and simplify trade processes for businesses, further enhancing the economic synergy between the two countries. With over 7,800 UK companies exporting goods to Turkey and the Turkish economy showing promising growth, the modernized FTA is set to unlock new potentials for both nations.
