The UK intends to establish a fresh trade agreement with Turkey, aiming to strengthen bilateral relations with the country.
Anticipated negotiations for an updated free trade agreement are scheduled to commence in 2024 following the joint announcement made by both nations on Tuesday, acknowledging the potential for enhancing the existing trade deal.
The present agreement, which was carried over post-Brexit, solely covers trade in goods. However, UK negotiators will seek to broaden the partnership to encompass digital trade and services, acknowledging the UK's status as a predominantly service-based economy.
Kemi Badenoch, the Business and Trade Secretary, expressed that Turkey holds significant importance as a trading partner for the UK. She cited this new deal as another example of the UK leveraging its independent trading status post-Brexit to negotiate agreements that align with the country's economic strengths.
Badenoch eagerly anticipates utilizing this deal to deepen the trading relationship between the UK and Turkey, fostering economic growth, and supporting businesses across the nation.
The specific objectives of UK negotiators have yet to be determined and will be established after a consultation expected to commence in autumn. However, it is likely that the focus will be on expanding UK services' access to the Turkish market.
Furthermore, the agreement may provide an opportunity to secure more affordable imports from Turkey, particularly Mediterranean fruits, vegetables, and products like olive oil.
In late July, Lord Offord, the exports minister, will visit Turkey to explore potential additional opportunities.
According to government figures, in 2022, the UK's trade with Turkey amounted to £23.5 billion. However, the balance heavily favoured Turkey, with the UK importing £6.5 billion more than it exported.