Turkey presents significant export opportunities for British businesses, particularly in transport, engineering, financial services, manufacturing and tech, driven in part by Turkey’s decarbonisation efforts and investment in rail.
It’s the latest step in a UK trade strategy targeting trade pacts to the services industry exports – including ongoing negotiations with Mexico and South Korea, and MoUs with major US states including Florida and Texas.
Launching the talks alongside Turkish counterpart, Minister for Trade Ömer Bolat. UK Trade Secretary Kemi Badenoch said Turkey was an important economic and strategic partner to the UK.
“We already have a thriving trade relationship that will only get stronger with a new, modernised trade deal that is fit for the 21st Century,” she added.
According to the Department of Business and Trade, the UK is the second biggest services exporter in the world – behind only the US – but services only made up 27% of exports to Turkey in 2022.
Coleshill-based Davies Turner, who provide overland trailer services between Turkey and the UK, welcomed the news.
Director Alan Williams said: “There is no doubt that the tariff-free trading agreement signed in 2020, along with the problems in long distance supply chains, which have increasingly prompted traders to turn to Turkey as an alternative source of supply to countries in Asia, has had a major impact on the uptick in trading volumes between the two countries over the last two years.
“We welcome the news, as an enhanced Free Trade Agreement with Turkey that includes the services and digital sector should open up even more trade and investment opportunities, and assist with the development of strong bilateral relations.
He added: “Moves that help develop a frictionless trade environment will bring benefits to companies like ours that provide freight and logistics services, which underpin that trade.”
UK businesses including Deloitte, Diageo and Vodafone have helped to shape negotiation objectives through the public Call for Input, with the first round of negotiations due to take place in the summer.
In 2022 UK goods exports to Turkey stood at £6.7 billion which included power generators and metals. In 2022 goods were exported to Turkey from every UK nation and region, including £470 million from Wales, £530 million from the South West and £611 million from the East of England.
Turkey is a major supplier of goods such as vehicles, clothing and electrical machinery to the UK, its fourth largest goods export market.