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Türkiye and the UK to start talks on updating the FTA in July

Official negotiations to update the Free Trade Agreement (FTA) between Türkiye and the United Kingdom, which was signed at the end of 2020 and covers industrial products, are scheduled to start in Ankara in July. The updated agreement will be expanded to include services, e-commerce, investments and some agricultural products.

Türkiye and the UK to start talks on updating the FTA in July

Trade Minister Ömer Bolat emphasized that the economic relations between Türkiye and the UK are strengthening, and stated that the Free Trade Agreement (FTA) between the two countries, which is planned to be updated, could be signed soon. “We believe that we have enough ambition, motivation and driving force to sign the modernized free trade agreement soon,” Bolat stated.

Minister Bolat spoke at the opening of the Türkiye-UK Business Forum organized by the Foreign Economic Relations Board (DEIK) and the UK-based Institute of Directors (IOD) in London. Addressing business representatives and investors at the forum, Bolat stated that despite the uncertainties in the global trade environment, the Turkish economy continued its steady growth.

Türkiye has been growing for 18 quarters without interruption

Stating that global developments such as US-China trade tensions, Russia-Ukraine war and Israel's attacks on Gaza created uncertainty in the markets, Bolat noted that the Turkish economy remained resilient even in this challenging environment. He reminded that 3% growth was recorded in the last quarter of 2024 and growth continued for the 18th consecutive quarter. Türkiye's economic size has exceeded USD 1.3 trillion and per capita national income has exceeded USD 15,000.

Stating that exports are the driving force of this growth, Bolat stated that Türkiye realized USD 262 billion in exports in 2023, which reduced the foreign trade deficit by USD 24 billion.

UK is Türkiye's third largest export market

Commenting on Türkiye-UK relations, Minister Bolat stated that the UK is Türkiye's third largest export destination. Türkiye's exports to the UK reached USD 15.3 billion in 2023, while imports from the UK amounted to USD 6.9 billion in the same year.

Bolat stated that Türkiye has become a center for many international companies thanks to its high productivity-oriented investment incentives, safe business environment and wide free trade network. The investments of British companies operating in Türkiye reached USD 9 billion at the end of 2023. In contrast, Turkish companies' investments in the UK amounted to USD 4.3 billion.

Emphasis on new agreements and strong cooperation

Touching on the results of the technical talks with the UK, Bolat stated that important steps were taken for the trade of the two countries during the contacts with the UK Trade Secretary Jonathan Reynolds. He stated that within the scope of the talks, the “Technical Barriers to Trade Chapter” and the “Chemicals” and “Motor Vehicles” annexes to this chapter were signed. These steps are concrete indicators of the increasing cooperation between the two countries and the strong commitment to updating the FTA.

The UK Trade Representative to Türkiye Afzal Khan and DEIK President Nail Olpak also delivered speeches at the forum, emphasizing the need for further deepening of economic ties between the two countries. The agreement, which is targeted to be updated, will be expanded to include services, investments, e-commerce and certain agricultural products.

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