In a press release, the UK government officially announced that a tariff-free trade agreement was signed between Turkey and the UK during a video call on Tuesday, December 29. The trade deal will function with the benefits UK and Turkish businesses had while trading with each other pre-Brexit.
The press release states, “The deal will secure existing preferential tariffs for the 7,600 UK businesses that exported goods to Turkey in 2019, ensuring the continued tariff-free flow of goods and protecting vital UK-Turkey supply chains in the automotive and manufacturing sectors.
Both countries have also committed to working towards a more ambitious free trade agreement in the future, which will go further than the existing deal and will be tailored to the UK economy.
Today’s agreement will ensure preferential trading terms for UK businesses that exported more than £1bn worth of machinery, and iron and steel exports worth £575m, to Turkey in 2019.”
The UK’s International Trade Secretary emphasized that the agreement “paves the way for a new, more ambitious deal with Turkey in the near future, and is part of our plan to put the UK at the centre of a network of modern agreements with dynamic economies.
During a speech at the signing ceremony, Turkey’s Trade Minister stated, “This is a historic day for Turkish-UK relations. We are taking the first step toward further deepening our ties while maintaining 25-year gains from the Customs Union.”
Bilateral trade between Turkey and the UK, Turkey’s second largest export market, was worth $25.25 billion in 2019.
The UK’s investments in Turkey are nearly $11.6 billion.