The UK and Turkey have agreed to relaunch negotiations for an upgraded free trade agreement aiming to deepen their economic partnership and boost bilateral trade.
Ministers from both nations met in London this month to confirm the first round of negotiations will begin by the end of July.
Turkey is UK’s 16th largest trading partner
The talks come as trade between the UK and Turkey reached approximately £28 billion in 2024, making Turkey the UK’s 16th largest trading partner. UK exports to Turkey – currently worth £9.3 billion – support over 57,000 jobs across the UK, with a significant majority in services. However, services made up only 34% of UK exports to Turkey in 2024, signalling clear room for growth.
Deal to lower the cost of trade
UK Business and Trade Secretary Jonathan Reynolds and Trade Policy Minister Douglas Alexander met with Turkish Trade Minister Ömer Bolat and Deputy Minister Mustafa Tuzcu to reaffirm their commitment to free trade and enhanced cooperation. They signed an updated Technical Barriers to Trade (TBT) chapter, aligning the UK-Turkey agreement more closely with the UK-EU Trade and Cooperation Agreement. This step is expected to lower costs and reduce complexity for businesses trading between the two countries.
Turkey set to become world’s fourth-largest economy
Turkey’s rapidly growing economy – currently the 17th largest globally and projected to become the fourth largest in Europe by 2050 – offers a major opportunity for UK exporters. The UK government is particularly interested in increasing the share of services in bilateral trade, leveraging the UK’s position as the second-largest exporter of services in the world.
The Turkish investment landscape is also expanding, with Eren Holding Group investing £1 billion in redeveloping Shotton Mill in Wales – an effort that will create over 200 jobs and has attracted additional UK and Welsh Government funding.
The upgraded trade relationship reflects mutual ambitions to foster long-term economic ties and support job creation in both countries.
