Negotiations starting in September to update pact mark significant milestone for both economies, aiming to reduce trade barriers and facilitate exports, while boosting cooperation in other sectors
A free trade agreement between Türkiye and the UK will be expanded to a wide range of areas, meant to help reach a $30 billion bilateral trade volume, as Turkish Foreign Minister Hakan Fidan and British Foreign Secretary David Lammy met in London this week to discuss updating the bilateral deal.
The pact between Türkiye and the UK has been in force since 2021, though a review clause in the existing agreement post-Brexit led the two parties to reassess trade relations, which began in 2022 to expand and deepen trade relations between the two countries.
The renewed and expanded agreement will include investments and additional concessions for the agricultural sector, which is expected to form a stronger legal basis for businesspeople of the two countries.
Türkiye's exports to the UK in 2023 totaled $12.5 billion, and imports reached $6.5 billion, with a foreign trade surplus of $5.9 billion, according to data compiled by Anadolu, while the trade volume between the two countries amounted to $19 billion.
Türkiye exported products worth $11.2 billion to the UK in the first nine months of this year, while imports made up $5.1 billion, making for a bilateral trade volume of $16.3 billion and a trade surplus of $6.1 billion.
-Doubling trade volume, expanding into new areas
The renewed and expanded free trade pact aims to more than double the bilateral trade volume to $30 billion, and it is being hailed as an important strategic turning point for both the Turkish and the UK economies, according to a statement by the Turkish British Chamber of Commerce and Industry.
The existing pact focuses on industrial products but the new one will also involve services, investments, and agriculture with support for mutual growth in financial services, engineering, transportation, technology, and professional services.
The revamped pact will include regulations to strengthen digital trade, data flows, and protecting intellectual property rights.
Türkiye, with its population of 85 million, boasts a booming economic potential, with projects for infrastructure and investments in carbon reduction providing many opportunities for cooperation with the UK.
The pact aims to lower trade barriers and facilitate exports and digital trade, and Türkiye's position as a gateway between the East and West contributes to the potential of the agreement.
In addition to economic benefits, the new pact is expected to increase bilateral cooperation in security, cultural exchange, education, and tourism.
While negotiations started in September, regulatory adjustments and market access in sensitive sectors pose challenges, though efforts continue to renew and expand the pact, signaling that the two countries are committed to strategic cooperation.
