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The UK announced on Tuesday its plan to engage in discussions with Turkey to update their existing bilateral free trade agreement. The goal is to expand the scope of the future deal to encompass services and the digital sector.
The current free trade agreement (FTA) between the UK and Turkey was retained after the UK’s departure from the European Union. However, the trade ministry has deemed this agreement outdated.
Following a review of the agreement, both parties have identified potential areas for improvement. An updated deal could be on the horizon, but formal negotiations are not anticipated to start until next year.
The UK and Turkey had a trading relationship valued at £23.5 billion ($30.7 billion) in the previous year. Kemi Badenoch, the Secretary of State for Business and Trade, expressed the UK’s intention to leverage these discussions to fashion a new FTA that aligns with the UK’s economic strengths.
She conveyed her optimism about the potential of the deal to enhance the UK-Turkey trade ties, stimulate economic growth, and bolster businesses across the nation in an official statement.
The new deal may address matters related to goods, including existing quotas on Turkish goods like olive oil, and might also broaden its coverage to include services, and digital and data sectors.
Before initiating the discussions, the British government has expressed its intention to seek feedback from businesses regarding their priorities.
