The UK and Turkey have begun talks on a post-Brexit free trade agreement covering the services sector of the economy.
The UK government says Turkey is one of the fastest growing economies in the Organization for Economic Co-operation and Development, with total trade between the two countries worth £26 billion, making exports to Turkey an attractive option for British businesses. He said there was a “huge opportunity”. 2022.
Ministers aimed to start trade talks with Turkey in July last year and then began months of consultations with businesses and industry groups on the UK’s priorities for a deal.
The government said British companies including Deloitte, Diageo and Vodafone had helped shape the negotiating targets through a public consultation ahead of the first round of detailed consultations scheduled for the summer.
The talks come after Turkey’s President Recep Tayyip Erdoğan, who has closer ties to Russia than other NATO members, put a hold on promoting Sweden’s membership until his government granted support in January. This took place at a time when relations with Western governments were delicate. .
UK Trade Secretary Kemi Badenoch said Turkey was an “important economic and strategic partner” and the trade deal could help boost Britain’s services exports.
Badenok began talks in London on Thursday with Turkey’s Omer Borat.
The deal could also give British consumers better choice and access to Turkish imports such as nuts, bulgur wheat and tomatoes, the government said.
Britain already has a trade deal with Turkey, which was rolled over in a continuity agreement to minimize disruption after Brexit. Before leaving the EU, the UK benefited from trade with Turkey through the EU-Turkey customs union.
Turkey began accession talks with the EU in 2005, but the accession process and efforts to expand customs agreements have since stalled amid concerns in EU capitals that democracy is slowly eroding under Erdogan. ing.
Turkey’s economy has grown rapidly during Erdogan’s 20 years in power, but it has also been rocked by a series of crises, including rapid inflation and the collapse of the Turkish lira triggered by Erdogan’s unconventional stance on economic policy.
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The UK government said Turkey offers significant opportunities for British companies in transport, engineering, financial services, manufacturing and technology, partly due to the country’s decarbonisation efforts and significant investment in rail.
The agreement focuses on Britain’s strength in services, which account for 80% of gross domestic product (GDP), with exports to Turkey creating 57,000 British jobs in 2020, with 68% of them He emphasized that it was a service industry.
Mr Badenoch said: “The upgraded agreement has the potential to give the UK’s world-leading services sector a competitive edge in this growing market and support jobs across the UK.”
