Britain has announced its intention to initiate discussions with Turkey regarding the revitalization of their bilateral free trade agreement, with a specific focus on incorporating services and the digital sector into any future accord. While Britain already has an existing free trade agreement (FTA) with Turkey that was rolled over when it left the European Union, the British trade ministry considers it outdated and aims to enhance it through a new deal.
Following a review of the current agreement, both countries have recognized the potential for improvement and have agreed to pursue negotiations for a new deal. However, formal talks are not expected to commence until the next year.
The trading relationship between Britain and Turkey amounted to £23.5 billion ($30.7 billion) in value last year. Kemi Badenoch, the Business and Trade Secretary, expressed her anticipation for utilizing the discussions to tailor a new FTA that aligns with Britain’s economic strengths. In a statement, she said, “I look forward to using the deal to deepen the UK-Turkey trading relationship, drive economic growth, and support businesses up and down the country.”
The prospective agreement has the potential to address various issues related to goods, including existing quotas on Turkish exports like olive oil, while also expanding to encompass services, digital trade, and data. The British government has stated its intention to seek input from businesses to ascertain their priorities prior to the commencement of negotiations.