(1 month, 2 weeks ago)
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The Secretary of State for Business and Trade (Kemi Badenoch)
On Thursday 14 March 2024, the Department for Business and Trade launched negotiations for a new, upgraded free trade agreement with Turkey.
In line with our commitments to scrutiny and transparency, the Department for Business and Trade has published, and placed in the Library of both Houses, more information on these negotiations. This includes:
The United Kingdom’s strategic case for a UK-Turkey free trade agreement.
Our objectives for the negotiations.
A summary of the United Kingdom’s public consultation on trade with Turkey.
Scoping analysis, providing a preliminary economic assessment of the impact of the agreement.
The United Kingdom’s negotiating objectives for the upgraded agreement, published today, were informed by our call for input, which requested views from consumers, businesses and other interested stakeholders across the United Kingdom on their priorities for enhancing our existing trading relationship with Turkey.
These negotiations follow our signing of the UK-Turkey trade continuity agreement on 29 December 2020.
A new and enhanced trade agreement with Turkey is a key part of the United Kingdom’s strategy to secure advanced modern agreements with new international partners, and upgrade existing continuity agreements to better suit the UK economy.
The UK and Turkey are long-term strategic partners with deep economic links. Total trade in goods and services between the UK and Turkey was worth around £26 billion in 2022. Turkey is a dynamic economy with one of the fastest GDP growth rates among OECD members. An upgraded FTA with Turkey will aim to reduce and remove barriers in sectors of strategic importance to the UK such as services and digital trade, positioning British businesses advantageously for the opportunities of the future.
Our existing agreement, which forms the basis of our current trading relationship, is outdated and not designed for a digital age. While the existing agreement provides tariff-free access for 98.8% of UK goods exports by value to Turkey—based on 2021 figures—it contains only limited provision for the United Kingdom’s thriving services sector. We intend to change this by putting services at the heart of any new agreement, to benefit the UK economy. Upgrading our trade deal with Turkey will help to unlock a stronger, more advanced partnership. The new deal will play to our strengths, reflecting the realities of trading in the 21st century and allowing us to take advantage of future innovations.
Around 8,000 businesses from all parts of the United Kingdom exported goods to Turkey in 2022. Of those, 6,800 were small and medium-sized enterprises. The United Kingdom’s SMEs could be key winners from a new agreement with Turkey, as we seek to make it easier to do business and focus on trade barriers that may have deterred them from previously entering this exciting marketplace.
The Government are determined that any agreement must work for consumers, producers, investors and businesses alike. We remain committed to upholding our high environmental, labour, public health, food safety and animal welfare standards, alongside protecting the national health service. We will not negotiate a deal that undermines the UK’s points-based immigration system.
The Government will continue to update and engage with key stakeholders, including Parliament, the devolved Administrations and the Crown dependencies throughout our negotiations with Turkey.
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