Britain, Turkey to commence talks on new free trade deal in June

Britain and Turkey announced plans to initiate negotiations for a new Free Trade Agreement, aiming to encompass both goods and services within the deal.

Thursday March 14 2024 05:22 pm

Reuters

Britain and Turkey said on March 14 they will launch negotiations on a new Free Trade Agreement (FTA) with a view to including services as well as goods in the deal.

Britain already has an FTA with its fellow NATO ally Turkey, which was rolled over when Britain left the European Union in 2020, but a review by both sides last year concluded there was room for improvement.

"We already have a thriving trade relationship that will only get stronger with a new, modernized trade deal," British Trade Secretary Kemi Badenoch said in a statement.

She said a new deal could give Britain's services sector "a competitive edge in this growing market and has the potential to support jobs across the UK."

Turkey's trade ministry said the negotiations, which are set to begin on June 10 in London, would focus on expanding the deal to services, investments and additional agricultural incentives, while also including "comprehensive rules."

"With the updated FTA, a much stronger and more encompassing legal basis will be established for the business world in both countries," a ministry statement said, adding this would also contribute to economic cooperation and other areas.

In 2023, bilateral trade between Turkey and Britain stood at $19 billion, according to Turkish Trade Ministry data.

Any deal could increase access for British consumers to Turkish goods such as bulgur wheat and tomatoes, as well as provide opportunities for British firms to increase services industry exports.

Britain is currently in trade talks with the likes of India, the Gulf Cooperation Council (GCC) and South Korea. Talks on a new FTA with Canada were put on hold earlier this year after the two sides failed to agree on removing barriers for agriculture