- UK launches talks with Turkey on a trade deal targeted at the
UK’s strengths as a services superpower
- Trade Secretary launched negotiations in
London today alongside Turkish Trade Minister
- UK negotiation objectives focused on creating new
opportunities for UK businesses in Turkey’s growing market of 85
million people
The UK today [Thursday 14 March] launches talks with Turkey on a
new, modernised trade deal targeting the services sector set to
benefit businesses across the country.
There are huge opportunities as Turkey has one of the fastest
growing economies in the OECD and is home to 85 million people.
The UK and Turkey have a strong economic relationship, with trade
between the two worth almost £26 billion in 2022.
The new trade deal will replace our current one, which was
largely negotiated in the 1990s. It will focus on the UK’s
strengths in services, which make up 80% of GDP. In 2020, 57,000
UK jobs were supported by exports to Turkey - 68% of which were
in services.
Turkey presents significant opportunities for British businesses,
particularly in transport, engineering, financial services,
manufacturing and tech, driven in part by Turkey’s
decarbonisation efforts and significant investment in rail.
It’s the latest step in a UK trade strategy targeting trade pacts
to boost our services industry exports – including ongoing
negotiations with Mexico and South Korea, and MoUs with major US
states including Florida and Texas.
The Trade Secretary launched the talks in London today alongside
her Turkish counterpart Minister for Trade Ömer Bolat.
Trade Secretary said:
I’m delighted to be launching trade negotiations with Turkey – 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.
An upgraded deal will give the UK’s world-leading services sector
a competitive edge in this growing market and has the potential
to support jobs across the UK.
The UK is the second biggest services exporter in the world –
behind only the US – but services only made up 27% of our exports
to Turkey in 2022. The new trade deal could see a huge boost in
UK services exports to Turkey.
It could also give British consumers improved choice and better
access to imported Turkish goods such as nuts, bulgar wheat and
tomatoes.
UK businesses such as 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.
Managing Director, International at TheCityUK Nicola
Watkinson said:
Turkey is a strategic gateway between the East and the West,
offering vast opportunities for growth and innovation that UK
businesses can leverage. An enhanced Free Trade Agreement with
Turkey that includes services and digital will open up new trade
and investment opportunities for financial and related
professional services, as well as laying the groundwork for more
robust bilateral relations and a frictionless trade environment
that benefits both nations.
Managing Director at Burgess and Leigh Ltd Jim Norman
said:
Burleigh is in the early chapters of its’ exporting story to
Turkey, but we’re already seeing strong demand opening up. A more
open trade deal is going to help smooth that growth by reducing
paperwork and delays. Burleigh’s appeal comes from it’s
provenance, heritage and authenticity which are appealing to
Turkey’s discerning consumers and particularly important in gift
giving.
Background
- UK businesses have been sharing what they want to see as part
of a deal to help shape negotiation objectives since the UK and
Turkey announced plans to negotiate a new trade deal in July
2023.
- The first round of negotiations is due to take place in the
summer.
- Turkey is a major supplier of goods such as vehicles,
clothing and electrical machinery to the UK, which is its 4th
largest goods export market.
- In 2022 UK goods exports to Turkey stood at £6.7 billion
which included power generators and metals.
- In 2022 tens of millions of goods were exported to Turkey
from every UK nation and region, including £470 million-worth
from Wales, £530 million from the South West and £611 million
from the East of England.
Statistics and data in this document have been sourced
from:
- ONS UK total trade: all countries, seasonally adjusted,
July-September 2023 edition
- ONS Trade in goods: country-by-commodity exports, December
2023 edition
- United Nations Conference on Trade and Development (UNCTAD)
Handbook of Statistics (2023)
- World Bank population data
- OECD (2021) Trade in employment database
- HMRC Regional Trade Statistics Q3 2023
